Minutes of Council Meeting - Monday, 23 October 2023

Council Meeting Minutes 23 October 2023

10.1 Open Space Naming Report - 21 Wattle Valley Rd, Mitcham, Heatherdale Reserve Pavilion and Mirrabooka Reserve South Oval

Department

Leisure and Recreation Services

Director Community Services

Attachment

SUMMARY

The purpose of this report is to finalise proposals received by Council from community and sporting organisations to officially register a name for the park at 21 Wattle Valley Road, Mitcham, and rename Heatherdale Reserve Pavilion and Mirrabooka Reserve South Oval.

Community engagement undertaken in April 2022 and February and March of 2023 indicated that there are varied opinions on the three proposals. Except for officially registering the name 21 Wattle Valley Road, Mitcham, as Wattle Valley Park, any decision may result in significant portions of the community being dissatisfied with the outcome.

The recommendation takes community feedback into consideration and is made in accordance with the Naming Principles (extracted from the Naming rules for places in Victoria 2022 - Statutory requirements for naming roads, features and localities) at Attachment 1.

MOTION

Moved by Cr Skilbeck, Seconded by Cr Liu

That Council:

1. Formally names 21 Wattle Valley Road, Mitcham as Wattle Valley Park

2. Lodges the proposal to Geographic Names Victoria (GNV) to register the name of 21 Wattle Valley Road, Mitcham, as Wattle Valley Park

3. Retains the status quo of the following names:

a) Heatherdale Reserve Pavilion

b) Mirrabooka Reserve South Oval.

Cr Davenport proposed an amendment as follows:

motion

Moved by Cr Davenport, Seconded by Cr Stennett

That Council:

1. Formally names:

a) 21 Wattle Valley Road, Mitcham Wattle Valley Park

b) The pavilion known as Heatherdale Reserve Pavilion to Ray Woolridge Pavilion

2. Lodges the proposals to Geographic Names Victoria (GNV) to register the names of:

a) 21 Wattle Valley Road, Mitcham, as Wattle Valley Park

b) The Pavilion known as Heatherdale Reserve Pavilion (currently not registered) to Ray Woolridge Pavilion

3. Retains the status quo for Mirrabooka Reserve South Oval.

LOST

For: Cr Carr, Cr Davenport (2)

Against: Cr Stennett, Cr Massoud, Cr Munroe, Cr Liu, Cr McNeill, Cr Cutts, Cr Barker, Cr Skilbeck, Cr Lane (9)

Cr Stennett proposed an amendment as follows:

motion

Moved by Cr Stennett, Seconded by Cr Cutts

That Council:

1. Formally names 21 Wattle Valley Road, Mitcham with dual names being:

a) Wattle Valley Park

b) Garrong dun ngorrm Park (the Woi-wurrung language for “Wattle Valley Park”)

2. Lodges the proposal to Geographic Names Victoria (GNV) to register the name of 21 Wattle Valley Road, Mitcham, as Wattle Valley Park and Garrong dun ngorrm Park

3. Retains the status quo of the following names:

a) Heatherdale Reserve Pavilion

b) Mirrabooka Reserve South Oval.

LOST

For: Cr Stennett, Cr Massoud, Cr Munroe, Cr McNeill, Cr Cutts (5)

Against: Cr Carr, Cr Davenport, Cr Liu, Cr Barker, Cr Skilbeck, Cr Lane (6)

The original motion was put and became the resolution as follows:

Council Resolution

Moved by Cr Skilbeck, Seconded by Cr Liu

That Council:

1. Formally names 21 Wattle Valley Road, Mitcham as Wattle Valley Park

2. Lodges the proposal to Geographic Names Victoria (GNV) to register the name of 21 Wattle Valley Road, Mitcham, as Wattle Valley Park

3. Retains the status quo of the following names:

a) Heatherdale Reserve Pavilion

b) Mirrabooka Reserve South Oval.

Carried

For: Cr Carr, Cr Stennett, Cr Massoud, Cr Munroe, Cr Liu, Cr McNeill, Cr Cutts, Cr Barker, Cr Skilbeck, Cr Lane (10)

Against:, Cr Davenport (1)

Key Matters

Council received proposals from:

· The Antonio Park Advisory Committee to name 21 Wattle Valley Road, Mitcham, “Les Smith Park” in recognition of Les Smith OAM;

· Heatherdale Community Action Group to officially name the new pavilion at Heatherdale Reserve, “Ray Woolridge Pavilion” in recognition of Ray Woolridge;

· The Blackburn South Cricket Club to officially name Mirrabooka Reserve South Oval, “Fyfe Oval” in recognition of Ron and Ian Fyfe.

Community engagement results indicate that there are varied opinions on the three naming proposals With the exception of renaming 21 Wattle Valley Road, Mitcham, as Wattle Valley Park, any decision may result in significant portions of the community being dissatisfied with the outcome.

It is recommended that Council supports officially registering the name of 21 Wattle Valley Road, Mitcham, as Wattle Valley Park and maintains the status quo with the names of Heatherdale Reserve Pavilion and Mirrabooka Reserve South Oval.

Strategic Alignment

This report aligns with the strategic priority of, An Empowered Collaborative Community. It provides opportunities for the community to be engaged in decision making processes and share the outcomes with them.

Policy

The following resources have been taken into consideration in the assessment of the renaming proposals:

· Whitehorse City Council’s Criteria & procedures for naming Council facilities after individuals (Attachment 2).

· The Geographic Place Names Act 1998 which makes provision for naming of places and the registration of place names.

· The Naming rules for places in Victoria 2022 - Statutory requirements for naming roads, features and localities (GNV).

background

· 21 Wattle Valley Road, Mitcham

Council received a proposal from the Antonio Park Advisory Committee for the park at 21 Wattle Valley Road, Mitcham to be officially named “Les Smith Park” in recognition of Les Smith OAM who was a notable Victorian environmentalist and prominent figure of the Antonio Park/Yarran Dheran precinct and wider Whitehorse community.

Officers conducted an initial round of community consultation to determine the community’s level of support for formally naming the site and invited naming proposals from the wider community.

Based on majority support for officially naming the park, a second round of community engagement was conducted in March 2023 to invite the community to support their preferred naming outcome from the list below:

1. Les Smith Park

2. Wattle Valley Park

3. Garrong dun ngorrm Park (Translates to “Wattle Valley Park” in Woi-wurrung Language*)

4. No name change

A total of 308 survey responses were received. The results showed diverse preferences on the four options presented.

The level of response to each proposed name was as follows:

1. Les Smith Park 142 in favour

2. Wattle Valley Park 61 in favour

3. Garrong dun ngorrm Park (translates to “Wattle Valley Park” in Woi-wurrung language*) 95 in favour

4. No name change 6 in favour

Given the support for Wattle Valley Park in the combination of items 2 and 3 above officers agree that it is the appropriate name and to formally name the reserve Wattle Valley Park. This is also in line with the Naming Principles, particularly Principle A – Ensuring Public Safety and Principle C – Linking the name to place.

*Where Woi wurrung language is proposed it is protocol to engage with Traditional Owners to seek permission to use their language words and seek guidance about what language words might be appropriate for use in these instances. A cost applies each time Council seeks permission to use Woi wurrung language.

· Heatherdale Reserve Pavilion

Council has received a proposal from the Heatherdale Community Action Group to formally name the new pavilion at Heatherdale Reserve “The Ray Woolridge Pavilion”, in recognition of the contribution by Ray Woolridge to community sport and the Heatherdale Junior Football Club.

During February to March 2023, community engagement was conducted to determine the community’s level of support for formally naming the Heatherdale Reserve pavilion and to invite naming proposals from the wider community.

A total of 208 survey responses were received. There were highly diverse views on naming the pavilion after an individual.

The number of responses in favour of the proposed name The Ray Woolridge Pavilion was 59 responses and the number opposed was 75 responses.

Whilst the numbers above are quite similar applying Principle A – Ensuring Public Safety and Principle C – Linking the name to place set out in the ‘Naming rules for places in Victoria 2022 - Statutory requirements for naming roads, features and localities’, officers have recommended to maintain the name of the pavilion as Heatherdale Reserve Pavilion.

· Mirrabooka Reserve South Oval

At the 22 November 2021 Council meeting, Council resolved:

That:

1. Council Investigate the suggestion to name the south oval at Mirrabooka Reserve, Blackburn South.

2. Consideration be given to those who have made contributions to the local area and/or local schools and sporting clubs.

3. Council note that the proposal will be assessed against Council’s ‘Criteria and Procedures for Naming Council Facilities After Individuals Policy’ and ‘Geographic Place Names Guidelines’

4. Should the proposal meet the criteria of the Policy and Guidelines, that community consultation will be undertaken to seek community feedback on the proposal.

5. Following consultation, the proposal will be referred to Council for consideration.

Council resolved the motion following a proposal from the Blackburn South Cricket Club to formally name the Mirrabooka Reserve south oval “Fyfe Oval” in recognition of key club members Ron and Ian Fyfe.

In line with the motion, Council officers undertook community engagement in April 2022 to determine the community’s level of support for formally naming the Mirrabooka Reserve south oval. Outcomes of the community consultation were presented at the 12 December 2022 Council meeting.

At the 12 December 2022 Council meeting, Council resolved:

That Council:

1. Note the outcome of community consultation regarding the proposed naming of Mirrabooka Reserve South Oval.

2. Investigate “Fyffe (sic) Oval” as an appropriate name for the Mirrabooka Reserve South Oval, including dialogue with the original proponents of that name

3. Conduct further community consultation on “Fyffe (sic) Oval” if considered appropriate in accordance with the geographic place names legislation and guidelines and report back to Council.

Based on majority support for officially naming the park, a second round of community engagement was conducted in March 2023 to invite the community to support their preferred naming outcome.

A total of 188 submissions were received for the second round of engagement and showed varied preferences. Those who did not support the formal naming cited the following reasons:

o Need to name more place names after females

o Preference for recognising traditional land owners

The number of responses in favour of the proposed name “Fyfe Oval” was 138 responses and the number opposed was 49 responses.

Taking into consideration the comments made in the consultation process and applying Naming Principle A – Ensuring public safety, Naming Principle E - Recognition and use of Traditional Owner languages and Naming Principle G - Gender equality officers have recommended to maintain the name of Mirrabooka Reserve South Oval.

Discussion and Options

Council could name 21 Wattle Valley Road, Mitcham, Heatherdale Reserve Pavilion and Mirrabooka Reserve South Oval after the proposed individuals. However, this may cause concern with some members of the community.

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

The following legislative obligations have been considered in the naming opportunities:

· The Geographic Place Names Act 1998 makes provision for naming of places and the registration of place names.

· GNV oversees the naming and registration of roads, features, and localities in Victoria. Registration of a chosen name through GNV ensures obligations under the Act are met. GNV also provides the Naming rules for places in Victoria, Statutory requirements for naming road, features and localities – 2022.

Equity, Inclusion, and Human Rights Considerations

In developing this report to Council, the subject matter has been considered in accordance with the requirements of the Charter of Human Rights and Responsibilities Act 2006.

It is considered that the subject matter does not raise any human rights issues.

Community Engagement

· 21 Wattle Valley Road, Mitcham

Round 1 Engagement - April 2022

Round 2 Engagement – February – March 2023

· Heatherdale Reserve Pavilion

Round 1 Engagement - February – March 2023

Round 2 Engagement was not recommended due to the diverse views from the initial engagement

· Mirrabooka Reserve South Oval

Round 1 Engagement - April 2022

Round 2 Engagement – March 2023

Financial and Resource Implications

If the name of 21 Wattle Valley Road, Mitcham is officially registered as Wattle Valley Park, signage will be required at a cost up to $3,800 for the purchase and installation of a park sign. Signage must be erected within 30 days of the name being gazetted or within 30 days of Council being notified by GNV.

If Woi wurrung language (name) was to be used a one-off fee of $3,500 would be payable to the Wurundjeri Woi Wurrung Cultural Heritage Aboriginal Corporation Council.

Innovation and Continuous Improvement

There are no Innovation and Continuous Improvement matters arising from the recommendation contained in this report.

Collaboration

Information and clarification on process and cost was sought from GNV.

Conflict of Interest

Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

The recommendation offers the most amicable and appropriate outcome and conclusion to the process undertaken.

Attachment

1 Naming Principles (extract of GNV Naming Rules)

2 Criteria & procedures for naming Council facilities after individuals

Council Meeting Minutes 23 October 2023

10.2 East Burwood Reserve Masterplan Endorsement

Department

Leisure and Recreation Services

Director Community Services

Attachment

SUMMARY

The East Burwood Reserve Master Plan (Attachment 1) has been developed to inform Council’s future strategic approach to managing the reserve for maximum value to the Whitehorse community.

This report seeks Council’s endorsement on the final draft master plan.

East Burwood Reserve has high community use across a wide variety of activities. The master plan has been developed considering the current use of facilities and the existing condition.

To ensure the reserve meets the community’s needs for years to come, improvements and enhancement of existing qualities are recommended.

The master plan identifies future infrastructure projects to support current and future community activities with the following key outcomes proposed:

· Combine buildings for best community use and investment.

· Improve and increase structured and unstructured social and recreation opportunities.

· Enhance the identity and visibility of the reserve along Burwood Highway.

· Improve access and circulation for walking, cycling and vehicles including carpark provision.

· Embed environmental initiatives in line with Council’s Urban Forest, Integrated Water Management and Sustainability strategies.

Endorsing the East Burwood Reserve Master Plan does not directly commit Whitehorse City Council to a responsibility for funding and implementing the recommended projects, which will be subject to availability of reserve balances at the time. The Master Plan will provide guidance for prioritising Council’s future investments on open space and recreation improvements, to be considered in conjunction with other relevant strategic documents.

The endorsed master plan will also provide strong support in advocacy with external funding partners and inform the future Development Contribution Plan.

Council Resolution

Moved by Cr Carr, Seconded by Cr Cutts

That Council endorses the final draft East Burwood Reserve Master Plan.

Carried Unanimously

Key Matters

East Burwood Reserve supports the most diverse range of sporting activities in the City of Whitehorse. The reserve includes an indoor basketball stadium, an athletic track, a velodrome, two ovals and nine tennis courts. It is also the home of the Whitehorse Club and the heritage listed East Burwood Hall. The reserve is 16 hectares in size and provides open space for a large range of informal social and recreation facilities.

The master plan acknowledges that existing buildings and facilities at the reserve are ageing. They no longer meet modern standards for organised sporting competition and the needs of current users. They are generally single purpose and do not support diverse community usage.

It is also recognised that facilities for organised sport are more extensive than those for informal or passive open space activities. The infrastructure supports sporting activities at the municipal and regional levels while passive components are generally attractive to local users only.

The master plan responds to the above by identifying projects prioritised over fifteen years and beyond. These projects will improve the experience of the local community users for both organised sport and informal activities. There are significant financial implications for Council associated with the priorities of the master plan. These are costed at a high-level within the document however are subject to change following more detailed planning.

Strategic Alignment

The master plan aligns with the Whitehorse City Council Plan 2021-2025 Strategic Direction 4: Our Built Environment; Movement, and Public Places, particularly Objective 4.1, 4.2 and 4.3 to provide a range of high quality, flexible and accessible facilities and spaces that build connection in the built natural, heritage and social environments for the community.

Similar priorities for Council are contained within Theme 2 – Movement and Public Spaces of the Whitehorse 2040 Community Vision. The document also responds to Theme 5 – Sustainable Climate and Environmental Care.

The master plan informs Council’s future approach to managing the reserve and aligns with themes and actions of the Whitehorse Recreation Strategy 2015-2024, namely Theme 1 – Active Communities and Theme 3 – Flexible Facilities.

The upgrade of existing Council indoor sporting facilities is a recommendation of the Whitehorse Indoor Sports Facility Feasibility Study with Nunawading Basketball Stadium identified as a priority across the municipality. The preparation of a master plan for East Burwood Reserve is also a key recommendation of the document.

Background

East Burwood Reserve is classified as Municipal level open space and is 16 hectares in area. The first parcel of land was acquired in 1925. It has developed since then to become an important place for the community, community groups and sporting clubs.

The site supports a diverse range of active and passive recreation activities in the municipality. The reserve includes the below facilities:

Club Based Sports Facilities

Nunawading Basketball Centre

· Council-managed through a lease to the Nunawading Amateur Basketball Association (NABA), including Melbourne East Basketball Association (MEBA).

o Organisation was formed in 1963 after the establishment of member clubs in the 1950s.

· The centre contains five courts and supporting amenities.

o Originally two courts built in 1969.

o Additional two courts were built in 1983 with a fifth court added in 1989.

o NABA completed an extensive renovation to the front of the centre in 1996 worth approximately $1.5 million.

· The stadium is used seven days a week year-round for competition, training and other programs, including:

o 839 junior, 422 senior domestic teams (1,261 total) with an estimated 11,000 players in 2023.

o This number has now surpassed the pre-pandemic levels of 745 junior teams.

o In addition to Nunawading Basketball Centre, another twenty-six courts across nine venues are utilised to accommodate NABA junior competitions.

o All NABA venues are at full capacity from 4pm-11pm weekdays and 8am-9pm Saturday & 8am-11pm Sunday.

o Home to MEBA and its highly successful representative teams - the Nunawading Spectres.

o The Centre and the Nunawading Spectres host a highly successful tournament run over King’s Birthday Weekend with:

§ 815 teams in 2023 and 9357 players, including 297 interstate and 4 international teams.

§ Use of 69 courts for 2110 games.

o Hosts school competitions, clinics and community events.

o SEDA College use the centre for their education programs.

East Burwood Reserve North and South Ovals

· Council-managed by a seasonal licence allocation.

· Two ovals for football and cricket each with a supporting pavilion and three-lane cricket practice nets (situated adjacent to the southern oval).

o Both pavilions are aging and are at or approaching end of life.

o The southern pavilion is used extensively and does not meet Disability Discrimination Act (DDA) standards.

· The two ovals cater primarily for the East Burwood Football Netball Club and the East Burwood Cricket Club as well as several secondary/overflow user groups.

o East Burwood Football Netball Club currently has two men’s and one women’s senior football teams as well as 285 junior members from Auskick through to under 16s, playing within the Eastern Football Netball League (EFNL). The club also has seven open age netball teams.

§ During the season the club uses the sports fields and the reserve often hosts EFNL finals matches.

o East Burwood Football Netball Club was formed in 1911 and has a proud history having won 19 senior premierships including the 2022 Women’s Division Three premiership.

o In season 1993, the new upstairs social and change rooms spaces along with a new ground at the south end of the complex were opened.

o East Burwood Cricket Club was formed in 1886 and merged with the Bennettswood Cricket Club in 1993. The clubs had been running a joint junior program for the previous two seasons, and with both clubs having declining senior player numbers and the new facilities at East Burwood Reserve it was a decision that made sense for both clubs. In August 2013 the members of the club voted to drop Bennettswood from the club’s name. The reasons for this were to:

§ simplify the name

§ align the club with the East Burwood FC and especially its junior program

§ align the club with the local East Burwood community to better attract new players and sponsors.

o The Club play in the Box Hill Reporter District Cricket Association and has recently won the McIntosh Shield in 2020-21 and 2016-17. It has been based at East Burwood Reserve for more than 100 years. The club has seen some recent decline in team numbers.

§ The club uses the ovals and cricket training nets for training and competition throughout the week.

o While the two clubs use both ovals in their seasons, there is overflow use for other local football and cricket clubs to maximise the use of the facilities.

Bill Sewart Athletics Track

· Council-managed through a lease with Bill Sewart Track Association.

· Contains a 10 lane synthetic athletics track with a 12 lane front straight and electronic timing gates.

· Associated field discipline facilities include throwing cages, jump pits, pole vault runway and high jump area.

· The infield also has a soccer pitch in the infield.

· The sporting infrastructure is supported by floodlighting, spectator terracing and pavilion, originally built in the early 1980s.

o The athletics track was upgraded to a synthetic surface in 1996/1997 and Council upgraded the floodlighting in 2020.

· The facility hosts club training, club competition and school use year-round including:

o Nunawading Athletics Club has 80 members from juniors (under 14’s) to seniors (+ 50 years) with equal representation across men and women.

o Little Athletics Nunawading has 200 members (U7 to U16) with equal participation between boys and girls. Club competitions are run on Saturday morning during Summer (October – April) with a Winter Cross Country season running from April – July.

o Victorian Masters Athletics - East Burwood host weekly events every Thursday evening averaging 30 to 70 participants with equal representation across both men and women with the median age between 50-60 years.

o Nunawading Triathlon Club started in 1990 and offer Adult, Student, Junior (15-17) and social memberships The Club utilises the track on Wednesday evenings for training.

o The track is used for training Monday to Friday and competition Saturday and Sunday.

o The infield soccer pitch is used by various clubs as an overflow venue.

o 87 schools and 12 district athletics competitions estimated to total of 50,000 school students per annum.

Velodrome and sports pavilion

· Council-managed through a lease with Blackburn Cycling Club.

· The velodrome is the only velodrome in South-East Melbourne (next competition track is Warragul).

· The Blackburn Cycling Club is 76 years old and has been based at East Burwood Reserve for 74 years.

· The Blackburn Cycling Club has 280 members (75% male/ 25% female; 40% adult/ 60% juniors) and has seen growth in the past 4 years, led by junior growth.

· Blackburn Cycling Club offers track, road (criterion) and cyclo-cross cycling disciplines throughout the week.

· The concrete velodrome was built in the 1950s and supporting pavilion built in 1987, recently:

o $700,000 has been secured by the club to extend the pavilion.

o $200,000 has been secured by the club to install floodlighting.

· The pavilion is not able to meet existing training activity demand.

· The velodrome complies with intra club racing standards but can only accommodate one pursuit rider at a time.

· The club also use the Darebin Indoor Sports Centre to meet their participation requirements.

Tennis Courts and Clubrooms

· Council-managed through a lease to East Burwood Tennis Club.

· Nine en-tout-cas and synthetic courts and supporting clubrooms.

o Two en-tout-cas courts are not used and have become overgrown.

· East Burwood Tennis Club was formed in 1923, the original courts consisted of 2 asphalt courts which are now the current courts 8 & 9 and the clubhouse was a wooden shed with a tin roof.

· In 1966 with funding from membership contribution an additional five courts were added. The East Burwood Tennis Club continued to experience strong membership growth so an additional two clay courts were added along with an upgrade to the Clubhouse. The renovation was mainly carried out and completed mostly by volunteer club members.

· Since the late 1990s a number of court renewals and upgrades have been undertaken with the assistance of funding from Council and the State Government.

· The club is a multi-cultural and community diverse club with an estimated 200 members using the courts every day of the week for practice and competition. The club has historically been a large club but prior to the pandemic participation had been in decline.

Community Facilities

Burwood Hall (Heritage listed)

· Managed by Council’s Arts and Cultural Services department.

· The hall seats up to 100 people and has kitchen facilities, polished timber floors and can be divided into two spaces, it also has disability access.

· The hall is used by community and commercial groups for activities such as dance classes, church services, yoga sessions, seniors programs, private functions, training workshops and seminars.

· The building and land within the surrounding two metres is subject to Heritage overlay controls.

Whitehorse Club

· Council-managed through a lease to The Whitehorse Club.

· The Whitehorse Club building has spaces for functions and convertible to sporting activity.

· The Whitehorse Club is a members based Social club.

· The club currently provides weekly member events on Tuesday evenings and Thursday lunches.

· Whitehorse Club Social functions are a mixture of social, sporting, musical, regional and religious nature. Some are in celebration of Italian history and tradition.

· The Whitehorse Club has a senior’s group known as the ‘Circolo Anziani’ who hold luncheons with live music numerous times of the year.

· The Whitehorse Club was formed in 1985 as The Eastern Suburbs Italian Club, and was situated in Blackburn. The club relocated to East Burwood Reserve in 1988 and constructed a building on land leased from Council for 25 years.

o The building was extended in the 1990s, funded by a loan taken by the club. The loan has been serviced by revenue raised from commercial bookings for events and other commercial arrangements with organisations such as the Manhattan 8ball Pool Club, Blacklords Fencing Club, Wendon Dance Studio, Boxing Victoria and Battle Championship Wrestling.

· At its peak the club was home to over 700 members and currently has an estimated 300 members.

· The building has been maintained by dedicated volunteers and now the structural elements of the building are in poor condition and are approaching end of life.

The lease for the building has been in over holding for 4-5 years and membership of the club has been in decline.

Public Open Space and Amenities

· Two play spaces – north and south

· Pedestrian paths

· Informal open space

· Informal mountain bike track

· Car parking

· Public Toilets

The reserve is immediately adjacent to Tally Ho Business Park where significant change and growth is anticipated in the next 15 to 25 years.

Discussion and Options

Community needs – Stakeholders (Structured sporting facilities)

A key theme identified through stakeholder consultation was that many of the existing sports pavilions and assets are aging and may no longer meet modern standards for organised sports competition and current user needs. Additionally, the location and design of the buildings do not promote joint or community use and impact the layout of the open space of the reserve.

The master plan provides the following commentary and recommendations regarding the facilities of the current sport and recreation and community stakeholders of the reserve. The recommendations have received strong community support in general during the second round of community engagement on the draft master plan.

Nunawading Basketball Centre

The stadium is well used but ageing, no longer meeting modern building standards or compliance with state sporting association standards. The master plan has identified its redevelopment as a high priority. To meet current and future demand the redevelopment of the stadium is proposed to have up to eleven indoor courts. A redevelopment of this size will have significant financial implications. A detailed business case will need to be developed in the near future to determine the feasibility of the proposed redevelopment.

Second round of community engagement on the draft masterplan has demonstrated significant community support for both preparing the business case and redeveloping the Basketball stadium to meet current and future needs.

East Burwood Reserve North and South Ovals

The two ovals are serviced by separate pavilions. The northern oval pavilion had previously been decommissioned but has been maintained to be able to be allocated to sports clubs to support ongoing participation. Likewise, the southern pavilion is ageing and does not meet Disability Discrimination Act (DDA) standards.

The master plan has identified the replacement of the two pavilions with one new pavilion as a high priority. A nominal future budget allocation has been apportioned for design and construction in Council’s future capital works program. Both primary sporting clubs have expressed that their preferred pavilion location would be on the wing of the southern sports field for best spectator and participant viewing.

Following the second round of stakeholder and community engagement, the master plan adjusted the proposed building location and concept floorplan. It now facilitates equal and safe access to both ovals while prioritising viewing opportunity towards the south oval on the first level from the multipurpose social room. The existing terraced spectator zone on the western wing of the south oval will be upgraded to further support viewing experience towards the south oval. The pavilion design will continue as part of the building redevelopment project once the master plan has been endorsed. It will follow the process of finalising concept design, detailed design, funding advocacy and delivery.

The sports field floodlighting on the northern oval does not meet the required Australian Standards and association guidelines. The master plan identifies the upgrade of floodlighting as a high priority. 100 lux metal halide lighting is currently being provided on the southern oval, meeting the Australian Standards and AFL Victoria facility guidelines for community level football. Council will explore the opportunity to replace the metal halide lighting with an LED alternative as part of the northern oval lighting upgrade in line with sustainability objectives, subject to funding availability.

The East Burwood Cricket Club would like a new location for the cricket training nets to be considered due to concerns about the trees located on the west creating shade when used in the afternoons. The master plan identifies relocation as a high priority and also considers the opportunity to develop a multiuse training facility that caters for cricket, netball and other sporting activities.

Bill Sewart Athletics Track

The athletics track requires resurfacing and the sub-surface structure needs rectification while drainage and irrigation would improve the condition of the infield. Track works are identified as a high priority in the master plan.

The pavilion is aging and does not meet contemporary building and DDA standards. Access and inclusion to the track has been identified as a high priority.

In addition to these works a number of other assets have been identified to improve the overall precinct including the redevelopment of the associated sporting pavilion.

Blackburn Cycling Club

In addition to the cycling pavilion extension which will be undertaken through funding sourced by the club, the master plan identifies a space for the club to meet their activity needs in the proposed community pavilion located nearby between the two ovals.

The track needs re-surfacing and this is identified as a high priority in the master plan. The club has advocated for a new competition-compliant velodrome as the existing facility only complies with intra club racing standards. However, this redevelopment would require a longer straight and wider track and is not feasible due to the physical constraints of the site.

East Burwood Tennis Club

The pavilion is ageing and needs an electrical and amenity upgrade. The master plan report identifies redevelopment of the pavilion as a low priority based on declining participation numbers.

Whitehorse Club

The Whitehorse Club has a long history with Whitehorse and East Burwood Reserve. Its activities are valued by the community and members. Due to the condition of the building, rising upkeep costs and the Whitehorse Club’s financial pressure of operating and maintaining the facilities, the master plan recommends the decommissioning of the Whitehorse Club building. Following working closely with the Whitehorse Club representatives, the master plan project revised the design of the Athletic pavilion to provide an alternative venue that would continue to support the core club activities on site. The revised design utilises the existing level difference to enable autonomous use of the lower and upper levels of the building by Bill Sewart Athletic Association and Whitehorse Club respectively. Contemporary design with weather protected balcony area will greatly enhance the user experience of the building. The large multi-purpose rooms and high-quality amenities provided in the building will also support diverse community uses in addition to the current uses.

The timeframe for the decommissioning of the Whitehorse Club building is likely to be aligned with the redevelopment of the Basketball stadium and improvement of East Burwood Reserve frontage.

East Burwood Hall

Opportunities identified in the master plan include developing the landscape around the hall to create a ‘sense of place’. To achieve this, it is recommended to include a covered connection and shared courtyard space with the East Burwood Tennis Club pavilion. These projects have been identified as a low priority. The master plan also calls for further investment in promoting and highlighting the heritage value of the hall.

Key open space outcomes to support community needs (Unstructured social and recreation amenities)

The broader community and sporting users raised a number of issues regarding the functionality of the whole reserve. This included issues regarding paths of travel, limited car parking when the reserve hosts multiple large events and the need to improve general site amenity and assets.

Five key outcomes have been highlighted in the master plan to address sporting club infrastructure needs and ensure that the development of the East Burwood Reserve precinct caters for the whole community. These outcomes will ensure East Burwood Reserve maximises its potential to provide social and environmental benefits in a financially sustainable way, for the growing local community and others who use the site.

Combine buildings for efficient use and financial sustainability

The master plan recommends consolidating the two sporting oval pavilions into one centrally located community pavilion. It also recommends consolidation of the athletic sporting pavilion and Whitehorse Club building into one Multipurpose Community Building. These options were informed by assessment of the site’s space, functionality considerations and stakeholder feedback.

Improve and increase unstructured social and recreation opportunities as appropriate for a reserve with a municipal designation

East Burwood Reserve provides significant areas for both active and passive uses of open space. However, existing facilities provided in the reserve cater for organised sport more than informal usage. The infrastructure supports sporting activities at the municipal and regional levels while passive components are mostly attractive to local users only.

This could be attributed to:

· lack of barbecue facilities

· lack of a permanent public toilet

· no defined ‘gathering space’ for users to socialise at

· disconnected footpath network around the reserve

· two ageing local-level playgrounds

· designated mountain bike area has minimal bicycle facilities.

The community strongly supports the recommendation to develop unstructured social and recreation amenities to a level on par with the active open space offerings of the reserve appropriate to its municipal designation.

Identified projects in the master plan include:

· round-reserve walking/cycling circuit track.

· upgrade the existing northern play space to a municipal level with communal space.

· replace the southern play space with a district level active recreation space including pump track, skating area and multi-lined hard court space.

While it is not ideal to provide two disjointed social recreation areas within the one reserve, the space at the north will not be able to accommodate all activities when taking into account the current provision of the area. As a long-term aspiration, it is possible to enhance the Newhaven Road entrance of the reserve to open up and include vehicle access. This would create a dual access frontage which is typically associated with municipal level open spaces.

The proposed dog park in the draft master plan has been removed in response to objections from local residents in regard to noise and amenity concerns.

Enhance the identity and visibility of the reserve along Burwood Highway

The visual presence of the reserve along Burwood Highway is limited despite a 300-metre long road frontage. The first round of community consultation indicated the reserve is mostly known to residents who live close by and the members and families of the sports clubs. The recommendation of opening up view lines from the Burwood Highway into the green space received strong support from the community during the second round of the engagement. This outcome will be achieved by:

· the removal of the Whitehorse Club building.

· repositioning the Nunawading Basketball Centre.

· considering the number of tennis courts required in the short term with long term provision guided by future tennis strategic planning.

· improve landscape and feature treatments to the reserve frontage.

· upgrade the northern play space to act as a visual clue that invites broader community uses.

Improve access and circulation for walking, cycling and vehicles including carpark provision

Both drivers and pedestrians using East Burwood Reserve have reported unsafe and inconvenient circulation. Not all areas of the reserve have direct connections, there are a few loop paths and there is a limited amount of safe crossing points. Many pathways are not separated or off-road, making them undesirable for users.

The master plan included traffic analysis to help re-establish a well-organised movement network that can service the various destinations/facilities in the reserve by walking, cycling and driving.

The traffic study undertaken ascertained traffic volume as well as peak and off-peak car parking requirements. The proposed network outlined in the master plan comprises a clearly defined vehicle circulation route with temporary exit route for large events. The pedestrian/cycling circuit track is separated from the vehicle route. A pedestrian precinct is introduced between the athletic track and the northern oval to provide safe movement space for large school events. Existing secondary entry of athletic track at the north end of the spectator area is identified to be improved as a main entrance to enable direct access from bus bays and universal access into the area.

An undercroft carpark would be explored as part of the stadium redevelopment project to provide adequate carpark to the current and future uses of the reserve.

Embed environmental initiatives in line with Council’s Urban Forest, Integrated Water Management and Sustainability strategies

The reserve is home to significant trees and vegetation, including an area covered by a Significant Landscape Overlay. The master plan proposes a range of environmental initiatives including a mini arboretum to test climate resilient tree species. Water Sensitive Urban Design elements would be considered in the carpark with the potential to connect with the drainage reserve in the neighbouring Tally Ho Business Park. Building redevelopments will incorporate Environmental Sustainable Design Guidelines and Council will continue to work with Yarra Valley Water to explore opportunities to use recycled water as available.

Endorsing the final draft master plan

The development of the master plan identifies and prioritises a number of projects that complement and impact each other. For these to be delivered successfully over time, careful planning and coordination by Council is required. A long-term vision for the site will assist Council and stakeholders to advocate for funding.

Officers are seeking endorsement of the final master plan, informed by two rounds of community engagement. Once endorsed, it will be used to plan and prepare detailed design documents, facilitate advocacy for the external funding required to deliver on the priorities and inform the Development Contribution Plan review in three to four years’ time.

The endorsement of this Master Plan helps guide the approach to the future development and management of East Burwood Reserve for the community and does not commit Council to the delivery of any project(s) identified within it.

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

There are no legal or risk implications arising from the recommendation contained in this report.

Equity, Inclusion, and Human Rights Considerations

In developing this report to Council, the subject matter has been considered in accordance with the requirements of the Charter of Human Rights and Responsibilities Act 2006.

It is considered that the subject matter does not raise any human rights issues.

Community Engagement

Stakeholder and community engagement occurred during two different phases of the project:

· 1st round consultation (July – August 2022): information gathering, assessment of the adequacy of existing facilities and outdoor spaces, suggestions for improvements

· 2nd round consultation (May – June 2023): review and feedback of the draft East Burwood Reserve Masterplan

The master plan has been informed by input from East Burwood Reserve user groups, local residents, the broader Whitehorse community, Councillors, Council staff and other stakeholders.

Community awareness of the surveys was achieved by a combination of letterbox drops to local residents, signs erected in East Burwood Reserve, and social media post during the survey periods.

Consultation included one-on-one meetings (stakeholders), ‘Your Say’ surveys (community), two community drop-in sessions (residents) and a stakeholder workshop.

A total of 2521 survey responses were received from the community through Council’s ‘Your Say’ page. Six email submissions were received during second round of the community engagement, including a signed petition by 148 residents objecting to the proposed fenced dog park.

Further details regarding stakeholder and community engagement activities and outcomes are provided in the Engagement Report as appendix to the Masterplan Report.

Financial and Resource Implications

The master plan contains high, medium and low priority projects that if implemented will impact on Council’s Capital and Recurrent budgets.

· High priority projects are proposed from years 1-7 (2023/24-2029/30)

· Medium priority projects are proposed from year 8-12 (2030/31-2034/35)

· Long term projects are proposed for beyond 13 years (2035/36-onwards).

Indicative costs for high priority projects are estimated around $130 million. Over $100 million of this is attributed to the design and construction of the Basketball stadium which will require significant funding contribution from external funding partners. The proposed approach to implementation is for Council’s contribution to be capped at $35 million. Over $9 million is attributed to the design and construction of a consolidated community pavilion between the two sport fields, out of which $5 million is currently identified in Council’s 10 year capital works program with the balance requiring external funding contribution. These cost estimates are preliminary only and are subject to a detailed feasibility and design process which will identify what the cost for each component.

In order to deliver on the Master Plan objectives and works, it is anticipated that all identified projects will require a combination of funding sources, including Council contributions from rates and open space and development reserves and external funding contributions by the sports clubs, user groups and other levels of government.

A proposed targeted funding mix is proposed to indicate the potential funding sources and the proposed percentage. The percentage are developed based on the Principles for Application of Financial Reserves for Capital Improvement Projects which is adopted by Council as part of the Council Budget FY23/24 (Table 1), potential user group contributions were discussed with club and user group stakeholders during masterplan engagement process. All identified projects will be subject to availability of reserve balances and require a combination of funding sources.

Table 1: Recommended application of funding split for Reserve funded Capital improvement projects. Exact funding split will be assessed and applied for each individual project based on scope and alignment to the reserve principles. Relevant project categories are highlighted in green.

Project Type	Funding Split
Project Type	Open Space Reserve	Development Reserve	Rates / External Funding
Open Space Acquisition	100%	0%	0%
Open Space Improvements	100%	0%	0%
Open Space Planning	50%	0%	50%
Major Project (Recreation)	25%	50%	25%
Major Project (Municipal)	0%	75%	25%
Recreation Infrastructure Project	25%	25%	50%

Further details regarding cost estimates of different projects are provided in the master plan report.

Innovation and Continuous Improvement

There are no Innovation and Continuous Improvement matters arising from the recommendation contained in this report.

Collaboration

The project managers of the Recreation and Open Space Development team have collaborated with officers in the below departments:

· Project Delivery and Assets

· Parks and Natural Environment

· Community Engagement and Strategic Communications

· Transport Engineering

· Arts and Cultural Services

· Leisure and Recreation Services

· Strategic Planning

· Finance

· Property and Leasing

Conflict of Interest

Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

The East Burwood Reserve Master Plan has been developed in consultation with the community and other key stakeholders and provides a long-term approach for planning for the benefit for the local and broader community.

The endorsed master plan will be used to plan and prepare detailed design documents, facilitate advocacy for the external funding required to deliver on the priorities and inform the Development Contribution Plan review in three to four years’ time.

Attachment

1 East Burwood Reserve FINAL Masterplan Report - October 2023

Council Meeting Minutes 23 October 2023

10.3 Second Agreement Variation 517-521 Station Street, Box Hill

Department

Property and Leasing

Director City Development

SUMMARY

· Golden Age have requested a second variation to the agreement between them and Council made in accordance with Section 173 of the Planning and Environment Act 1987.

· Golden Age are seeking variations that would enable them to secure a Build to Rent operator.

· Variations relate to extending the substantial commencement date and Council’s repurchase rights.

· Council and Golden Age have negotiated that the second variation be conditional on the inclusion of an interim milestone date of 8 August 2025 for substantial commencement which is secured by an additional bank guarantee of five hundred thousand dollars ($500,000).

· The agreement between Golden Age and Council made in accordance with Section 173 of the Planning and Environment Act 1987 will be secured by two bank guarantees totalling two million five hundred thousand dollars ($2,500,000).

· The first bank guarantee is security for substantial commencement on 8 August 2025; while the second bank guarantee is security for completion on 8 October 2027.

Council Resolution

Moved by Cr Liu, Seconded by Cr Barker

That Council:

1. Resolves to amend the executed agreement between Council and Golden Age Station Street Box Hill Development Pty Ltd as trustee for the Golden Age Station Street Box Hill Unit Trust, made under Section 173 of the Planning and Environment Act 1987, to extend the substantial commencement date to 8 August 2025.

2. Resolves that the amendment to the executed agreement contained in resolution 1 be secured by an additional bank guarantee of five hundred thousand dollars ($500,000).

3. Authorises the Director of City Development or delegate to instruct Council’s legal representative, Maddocks Lawyers, to prepare all documents relating to this matter in accordance with resolutions 1 and 2.

4. Authorises the Director of City Development or delegate to instruct Council’s legal representative, Maddocks Lawyers, to obtain from Golden Age Station Street Box Hill Development Pty Ltd as trustee for the Golden Age Station Street Box Hill Unit Trust the additional bank guarantee referred to in resolution 2.

5. Authorises the Chief Executive Officer to sign all documents relating this matter.

Carried Unanimously

Key Matters

· In July 2016 Council sold 517-521 Station Street, Box Hill to Golden Age.

· Settlement occurred on 8 October 2018.

· The Contract included a condition that required an agreement under Section 173 of the Planning and Environment Act 1987 (S173 Agreement) which required substantial commencement within three (3) years of settlement.

· The original S173 Agreement also included an “adverse market conditions” clause which extended the project’s delivery by two (2) years.

· On 22 November 2021 Council granted the extension.

· The completion date of 8 October 2027 is secured by a two million dollar ($2,000,000) bank guarantee.

· Golden Age are considering a Build to Rent option and have sought variations to the existing S173 Agreement, which extend the substantial commencement date.

· Golden Age have agreed to provide an additional security via an additional five hundred thousand dollar ($500,000) bank guarantee.

Strategic Alignment

The proposed development associated with the S173 Agreement aligns with Strategic Direction 4 of the Council Plan: Our Built Environment; Movement, and Public Places, with Objective 4.1.1: Plan, build, renew and maintain community assets and facilities to meet current and future service needs in an environmentally, financially and socially sustainable way.

Policy

There are no policy implications arising from the recommendation contained in this report.

background

Council, in its corporate capacity, at a Special Meeting of Council on 25 July 2016 resolved to enter into a contract of sale (the Contract) with Golden Age Station Street Box Hill Development Pty Ltd as trustee for the Golden Age Station Street Box Hill Unit Trust (Golden Age) for the then Council owned property known as 517-521 Station Street, Box Hill; with a sale price of Fifty One Million Eight Hundred Thousand Dollars ($51,800,000) excluding GST. Settlement occurred on 8 October 2018.

The Contract included a condition that required a S173 Agreement which required substantial commencement within three (3) years of settlement.

The definition of substantial commencement included both the completion of the basement carpark for the whole development and the fit-out for the proposed Childcare facility.

Golden Age did not reach the required substantial completion date of 8 October 2021.

However, the original S173 Agreement also included an “adverse market conditions” clause which enabled Golden Age the opportunity to seek a time extension from Council.

Golden Age formally applied for a time extension on 14 August 2021, citing that there had been adverse market conditions over the previous eighteen (18) months.

Council at its meeting dated 22 November 2021 resolved the following:

“That Council:

1. Resolve to grant a two (2) year extension to the executed agreement between Council and Golden Age Station Street Box Hill Development Pty Ltd as trustee for the Golden Age Station Street Box Hill Unit Trust, made under Section 173 of the Planning and Environment Act 1987.

2. Resolve that the two (2) year extension contained within resolution 1 be conditional upon the inclusion of an interim milestone date of February 2023 for the completion of excavation.

3. Authorise the Manager Property and Leasing to instruct Council’s legal representative, Maddocks Lawyers, to prepare all documents relating to this matter in accordance resolutions 1 and 2.

4. Authorise the Chief Executive Officer to all sign all documents relating this matter.”

Golden Age completed excavation after February 2023 and 517-521 Station Street, Box Hill currently remains an excavated site with surrounding hoarding.

The amended executed agreement between Council and Golden Age is secured by a two million dollar ($2,000,000) bank guarantee which Council could call up if Golden Age failed to complete the development by 8 October 2027 or failed to deliver the required 80 place childcare centre within the development. Maddocks Lawyers, Council’s lawyers, are currently holding the bank guarantee.

In November 2022 Golden Age advised that given the “…continually changing property and economic landscape and the recent growing interest from the Build to Rent (BTR) sector…”, that they were in discussions with several key Build to Rent operators regarding 517-521 Station Street, Box Hill.

However, as part of their due diligence process the Build to Rent operators had concerns regarding the executed agreement from the 22 November 2021 Council resolution. In particular, the key milestone dates and certain definitions.

In a letter dated 12 January 2023 addressed to Golden Age, the preferred Build to Rent operator made the following comment regarding the existing S173 Agreement:

“… is aware of the Section 173 Agreement on title granting Council the right to repurchase the land if key project milestones are not met. Accordingly, and as a condition of our acquisition, … require that Golden Age procure the necessary variations to the Section 173 or consents from Council that would confirm a sufficient and reasonable timeframe for the completion of these project milestones, in line with the current development program.”

Discussions regarding variations to the existing section 173 Agreement between Council and Golden Age have been ongoing during 2023.

Discussion and Options

The concerns regarding certain definitions related to substantial commencement and Council’s repurchase rights relating to 517-521 Station Street, Box Hill.

While the concerns relating to the key milestone dates related to the following:

· Completion of the excavation by October 2023 which was an extension from February 2023. Please note that 517-521 Station Street, Box Hill was fully excavated prior to 31 July 2023; thereby making this amendment redundant.

· Substantially commence the development by 8 August 2025 which is an extension from the current milestone of 8 October 2023; the extension allows Golden Age to finalise their negotiations with their preferred Build to Rent operator.

With substantial commencement being determined by a qualified independent consultant jointly appointed by both parties. Please note that this variation allows Golden Age to facilitate a fully integrated construction timetable. The original drafting assumed a staged construction timetable with the basement being subject to separate construction stage and separate approval process.

· Complete the development by the original date of 8 October 2027 which represents no change. The original contract obligates Golden Age to complete the development within nine (9) years of the 8 October 2018 settlement date. The completion date of 8 October 2027 is secured by the two million dollar ($2,000,000) bank guarantee.

However, the definition of “substantially commence” was challenged and Council Officers negotiated that in return for an amendment and extension of time, that Golden Age should provide an additional bank guarantee that Council would be able to call up if Golden Age failed to meet the 8 August 2025 “substantially commence” deadline mentioned above.

On 6 April 2023 it was agreed that seven hundred and fifty thousand dollars ($750,000) would be provided as additional security.

However, on 5 September 2023 Golden Age requested that Council waive additional security requirement, citing an increase in construction costs associated with the development. Council Officers rejected this request.

Golden Age then offered three hundred and fifty thousand dollars ($350,000). This offer was subsequently increased to five hundred thousand dollars ($500,000) which is now the agreed and recommended additional security.

In summary, if Council resolves to vary the existing S173 Agreement Council will be in possession of two bank guarantees as security with a combined total of two million five hundred thousand dollars ($2,500,000).

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

There are no legal or risk implications arising from the recommendation contained in this report. The two bank guarantees being held by Council as security mitigate the risk to Council.

Equity, Inclusion, and Human Rights Considerations

In developing this report to Council, the subject matter has been considered in accordance with the requirements of the Charter of Human Rights and Responsibilities Act 2006.

It is considered that the subject matter does not raise any human rights issues.

Community Engagement

No community engagement was required for this report.

Financial and Resource Implications

There are no resource implications arising from the recommendation contained in this report.

However, if Council resolves to grant the variation sought by Golden Age, Council will hold the two bank guarantees mentioned above as security.

Innovation and Continuous Improvement

There are no Innovation and Continuous Improvement matters arising from the recommendation contained in this report.

Collaboration

No collaboration was required for this report.

Conflict of Interest

Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

It is recommended that Council resolve to approve this matter, thereby enabling Golden Age to commence construction in a timely and effective manner.

If Council resolve to vary the S173 Agreement, Council’s legal representative, Maddocks Lawyers, will prepare all documents relating to this matter and on behalf of Council will obtain the additional bank guarantee.

Council Meeting Minutes 23 October 2023

10.4 Suburban Rail Loop - Precinct Discussion Paper

Department

Engineering and Investment

Director City Development

Attachment

SUMMARY

Suburban Rail Loop Authority (SRLA) has commenced the Precinct Structure Planning process for neighbourhoods in the vicinity of each of the six new Suburban Rail Loop (SRL) train stations, including Box Hill and Burwood. The outcomes will have a significant impact on the future of these and surrounding suburbs and it is therefore essential that Council plays a key role in advocating for the best possible community outcomes.

The process has commenced with SRLA recently releasing the ‘SRL Precincts Discussion Paper’ (see Attachment 1) for community comment. The Paper provides draft ambition statements and proposed priority outcomes for each of the Box Hill and Burwood precincts. The draft ambition statements and priority outcomes are very high level and convey SRLA’s broad direction for the precincts to 2050.

Council officers have considered the Discussion Paper and drafted a submission (see Attachment 2) for Council’s consideration. The submission advocates for SRLA to prepare the Precinct Structure Plans (PSP) in accordance with the values and themes contained in the Community Vision, Council Plan, draft Box Hill Structure Plan and other relevant Council strategies, as these documents are based on robust community engagement. The submission calls for SRLA to enter into a partnership agreement with Council to develop the Precinct Structure Plans, rather than Council merely being a stakeholder.

There will be further opportunities for community engagement during the PSP process.

Council Resolution

Moved by Cr Liu, Seconded by Cr Barker

That Council:

1. Notes the ‘SRL Precincts Discussion Paper’ released by Suburban Rail Loop Authority.

2. Endorses the submission (as attached) to the Suburban Rail Loop Authority regarding the ‘SRL Precincts Discussion Paper’.

3. Seeks commitment from Suburban Rail Loop Authority to enter into a partnership agreement with Council to develop the Precinct Structure Plans for Box Hill and Burwood. The agreement should outline:

a. How Suburban Rail Loop Authority will actively seek Council’s views on precinct planning (in addition to broader community consultation and engagement) and demonstrate how these views will be incorporated into the Precinct Structure Plans;

b. The ongoing support that Suburban Rail Loop Authority will provide to Council (resource funding) to undertake tasks related to the Precinct Structure Planning process; and

c. The roles, responsibilities and authority of Council and SRLA in developing and implementing the Precinct Structure Plans including future resourcing.

4. Requests that Suburban Rail Loop Authority provides Council a report detailing the outcomes of the community engagement relating to the SRL Precincts Discussion Paper, and that this report is received ahead of or with the release of the draft Precinct Vision statements.

Carried Unanimously

Key Matters

SRL is an orbital underground rail line around the middle suburbs of Melbourne. SRL East is the first stage of the project to be constructed and includes six new train stations between Box Hill and Cheltenham. In addition to development by the SRLA of the new stations, precincts of up to 1.6km radius around each of the stations will be planned by the SRLA.

SRL stations provide opportunities to enhance the surrounding neighbourhoods (or precincts), to increase the number and diversity of housing, employment, public spaces and other social infrastructure and services. SRLA’s aim is for people to be able to access most of their daily needs within a close walk, bike or public transport ride from their home.

To plan for these precincts, SRLA will develop a Precinct Structure Plan for each of the six precincts across the SRL East area and prepare the associated planning scheme amendments. The Precinct Structure Plans will set out the preferred location of land use, growth and infrastructure to guide development and improvements of an area over time.

The ‘SRL Precincts Discussion Paper’ outlines draft ambition statements and draft priority outcomes for the Box Hill and Burwood precincts; and provide the community the early opportunity to have input into the future of the neighbourhoods / suburbs around each SRL station. This is the beginning of SRLA’s process to develop the Precinct Structure Plans, with the process anticipated to be completed in 2026.

Council’s submission outlines the areas for support as well as suggestions for change to the draft ambition statements and draft priority outcomes. The suggestions are aligned with Council’s existing strategic position contained in the Community Vision and Council Plan, as well as the extensive work undertaken to prepare the draft Box Hill Structure Plan and other relevant Council strategies.

The submission supports growth that is sustainable, responsible, logical and clearly justified. This balanced approach recognises the anticipated growth and opportunities driven by the SRL project, while respecting the existing valued characteristics of the Box Hill and Burwood areas and the people who live, work and visit the impacted suburbs.

In addition to providing commentary about the draft ambition statements and outcomes, the submission also seeks further information from SRLA regarding:

· The roles, responsibilities and authority of Council

· How the boundaries of each precinct will be determined

· Clarification of the expectations for growth and change within the boundaries

· Technical information about the impact of increased population and workforce on existing environmental, social and infrastructure matters.

Strategic Alignment

There are a number of actions within the Council Plan that call for advocacy for improvements to transport, health, environmental, economic, social and wellbeing issues within Whitehorse. Preparing a submission regarding the SRL Precincts Discussion Paper contributes towards these advocacy actions. The submission also directly addresses the themes outlined in the Whitehorse Community Vision.

There are a number of structure plans already within the Whitehorse Planning Scheme, including the Box Hill Structure Plan (2007). In November 2021, Council resolved to seek authorisation from the Minister for Planning to prepare an amendment to the Whitehorse Planning Scheme relating to a revised Box Hill Structure Plan and a new Urban Design Framework. The request was not authorised, largely due to the future Precinct Structure Planning to be undertaken by SRLA.

The proposed submission regarding the SRL Discussion Paper advocates for all relevant adopted Council strategic documents to be considered by SRLA during the preparation of the Precinct Structure Plans. The Council strategies are based on robust community engagement and should be regarded by SRLA as a reflection of community views.

background

SRL is being planned as more than just a transport project. By combining the construction of the rail infrastructure with broad land use planning, the Victorian Government is aiming to reshape how the suburbs around each SRL station grows and influence where and how people live, work and socialise.

The Victorian Government made the decision to separate the precinct planning from the approval process associated with the SRL rail infrastructure. Council opposed this decision and advocated for a holistic approach that would see planning, design and approval of the rail infrastructure concurrently with the Precinct Structure Planning approvals.

Project approval for the rail infrastructure was authorised by the Minister for Environment and Climate Action in 2022 following the Environmental Effects Statement process. Since this time, planning has continued for the tunnels, stations and other infrastructure in the immediate vicinity of the stations. Early construction works have commenced to prepare the land in Box Hill and Burwood prior to the commencement of the main works.

Discussion and Options

The SRL Precinct Discussion Paper outlines SRLAs ambitions for how each precinct will grow to cater for additional residents and employees.

The following ambition statement and priority outcomes for the Box Hill precinct are outlined in the Discussion Paper:

Ambition statement:

“Box Hill will be a significant Metropolitan Activity Centre (MAC) and strategic multi modal hub for Melbourne’s east. It will see growth in health and public sector jobs, anchored by Eastern Health, Box Hill Institute and government offices. This will be balanced by a leafy and permeable central area with mixed use development, providing a multicultural hub and community infrastructure for its diverse population”.

Priority outcomes:

· Access to distinctive and high-quality environments

· Capacity for future employment and industry

· More diverse high-value jobs

· Increased cycling and walking connections

· Greater public transport

The proposed Council submission provides comments that suggest the ambition statement and priorities for Box Hill need to focus on:

· Integrated and connected multi-modal transport, including encouraging active, sustainable and safe transport options

· Balanced growth in population and employment, including affordable, accessible and social housing

· Services, spaces and infrastructure that sustainably meet the needs of the diverse population

· High quality/ high amenity public realm, e.g., shadow, wind, tree canopy and excellent design

The Discussion Paper outlines the following ambition statements and priority outcomes for the Burwood precinct.

Ambition statement:

“Burwood will be a thriving centre of activity and be a major education precinct for Victoria, anchored by Deakin University’s strengths as a leader in technology and commerce. Well designed public spaces with shops, restaurants and cafes along the Burwood Highway corridor will support more jobs and residents and access to Gardiners Creek will be supported by convenient walking and cycling links”.

Council’s submission recommends changes to the ambition statement for Burwood.

Priority outcomes:

· Diverse housing options

· Enhanced environment and biodiversity

· Capacity for future employment and industry

· More diverse, high-value jobs

· Increased cycling and walking connections

The proposed Council submission provides comments that suggest the ambition statement and priorities for Burwood need to focus on:

· New and enhanced open spaces that will enrich biodiversity

· Revitalise industrial land to magnify productivity

· Improved transport corridors and connectivity, including walking, cycling and public transport

· Promoting higher density housing along arterial roads while protecting low and medium density housing in other locations

· Respect and celebrate the indigenous culture that is important to Traditional Owners, particularly in the vicinity of Gardiners Creek

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

The Suburban Rail Loop Act (2021) provides authority for an area to be declared as a SRL planning area for the purposes of precinct planning; and for SRLA to have the power to manage precinct planning activities.

Once a planning area is declared, SRLA will become a Planning Authority for that area. It is unclear at this stage to what extent the SRLA might exercise this power with future planning scheme amendments. It is anticipated that this may have implications on Council’s existing responsibilities and involvement as a Planning Authority. Council has regularly requested information from SRLA about these implications however this has not been received at this time.

Council officers recommend seeking SRLA enter into a partnership agreement with Council to develop the Precinct Structure Plans. The aim would be to ensure Council is more than a stakeholder and have influence and responsibility.

Equity, Inclusion, and Human Rights Considerations

In developing this report to Council, the subject matter has been considered in accordance with the requirements of the Charter of Human Rights and Responsibilities Act 2006.

It is considered that the subject matter does not raise any human rights issues.

Community Engagement

SRLA has advertised the following opportunities for participation in community engagement activities:

· Online surveys

· Drop-in sessions at Box Hill and Burwood

· Formation of a Community Panel for each precinct

· Formation of a Youth Panel

Council’s proposed submission is based on engagement with internal stakeholders and the significant community engagement completed as part of the development of the Community Vision, Council Plan, draft Box Hill Structure Plan and draft Urban Design Framework (2021) and other relevant strategic documents.

Financial and Resource Implications

It is anticipated that there will be significant officer and consultant resources needed for Council to participate in the PSP process.

Council officers recommend seeking a commitment from Suburban Rail Loop Authority to provide funding to Council to undertake the tasks relating to development of the Precinct Structure Plans.

Innovation and Continuous Improvement

There are no Innovation and Continuous Improvement matters arising from the recommendation contained in this report.

Collaboration

SRLA has identified local governments as key stakeholders in the development of each structure plan and it is Council’s expectation that officers and Councillors will be kept fully informed and engaged throughout every stage of the process.

There is ongoing internal collaboration as officers from an extensive range of departments continue to identify and advocate for the best possible community outcomes. Collaboration between Whitehorse, Monash and Kingston Councils also continues.

Conflict of Interest

Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

SRLA has commenced the dialogue with the community regarding precinct planning with the release of the ‘SRL Precincts Discussion Paper’. Council’s proposed response to the Discussion Paper is contained in Attachment 2. The submission provides support for growth around each SRL station that is sustainable, responsible, logical and justified.

The Discussion Paper outlines SRLA’s timelines for the precinct planning process:

Submissions close regarding the SRL Precincts Discussion Paper	24 October 2023
Develop draft Precinct Visions	Late 2023
Draft Precinct Structure Plans	Early – mid 2024
Public exhibition of draft Precinct Structure Plans and draft Planning Scheme Amendments	Late 2024
Advisory Committee hearing	2025
Final Precinct Structure Plans	2025
Adoption of Precinct Structure Plans and gazettal of Planning Scheme Amendments	2026

Attachment

1 SRL Precincts Discussion Paper

2 Whitehorse City Council submission regarding 'SRL Precincts Discussion Paper'

The Mayor called a five minute recess at 8.55pm as the meeting was approaching two hours in length, the meeting resumed at 9.00pm.

10.5 Contract 30347 - Provision of Electricity for Council Operations

Department

City Services

Director Infrastructure

Attachment

SUMMARY

There are currently three main electricity contracts for Council, which are:

· Victorian Energy Collaboration (VECO) contract LGV038 (Council Contract 30347) - with Red Energy - to procure 100 per cent renewable electricity for six Council and community buildings – ends 31 December 2030 with an option for an additional two (2) years.

· Procurement Australia (PA) fixed rate energy contract electricity for small and large market sites (Council Contract 30453 and 30454) – with AGL and Shell Energy - ends 30 June 2024.

· Procurement Australia (PA) power purchase agreement (PPA) contract for streetlighting (Council Contract 30261) - with Alinta Energy – ends 30 June 2030.

The electricity that is purchased from the two Procurement Australia (PA) contracts is not 100 per cent renewably sourced, as Council opted out of such contract arrangement at the time. Therefore, there is a need to purchase carbon offsets for the emissions as part of Council being carbon neutral. There are no carbon offsets required for the VECO contract, as it sources 100 per cent renewable electricity. Council can add unlimited sites into the VECO contract.

It is proposed to move the small market and remaining large market sites from the PA fixed contract (with AGL and Shell Energy) to the VECO contract at the end of the contract term on 30 June 2024. This means that Council will avoid the significant electricity cost increases anticipated, along with the benefit of the electricity generated from local renewable sources and it emitting zero greenhouse gas emissions in its production.

In addition, it is proposed to move the purchase of electricity for streetlighting from the Procurement Australia PPA contract (with Alinta Energy) to the VECO contract on 31 December 2023, or from the date when Council exits the current contract. This is a negotiated early exit to the current contract at year three of a ten year contract.

Council Resolution

Moved by Cr Skilbeck, Seconded by Cr McNeill

That Council approves adding additional sites to the current Victorian Energy Collaboration (VECO) Contract LGV038 with Red Energy (Council Contract 30347), including:

1. Electricity for all small market and remaining large market sites from 1 July 2024, upon expiry of the current Procurement Australia fixed rate contract with AGL and Shell Energy on 30 June 2024; and

2. Electricity for streetlighting from 1 January 2024 or from the date when Council exits the current Procurement Australia power purchase agreement with Alinta Energy

Carried Unanimously

Key Matters

Carbon neutral status for Council operations

On 17 April 2023, Council endorsed the purchase of carbon offsets and certification under Climate Active to meet its 2022 carbon neutral status target for Council operations.

Based on 2021/22 data, electricity consumption contributes to 43 per cent of Council’s greenhouse gas emissions, where the breakdown is as follows:

· 17% - electricity for streetlighting – Procurement Australia (PA) power purchase agreement (PPA) contract

· 16% - electricity for large market sites – PA fixed contract

· 10% - electricity for small market sites – PA fixed contract

· 57% - all other corporate emissions

If the purchase of all electricity is changed to 100 per cent renewable, there will be a 43 per cent reduction in Council’s annual emissions. Based on 2021/22 data this will be from 12,545 tonnes of carbon dioxide equivalent (CO2-e) to 7,193 tonnes of CO2-e.

Council’s current electricity contracts

There are currently three main electricity contracts for Council. These are:

· Procurement Australia (PA) fixed rate energy contract electricity for small and large market sites (Council Contract 30453 and 30454) – with AGL and Shell Energy - ends 30 June 2024.

· Procurement Australia (PA) power purchase agreement (PPA) contract for street lighting (Council Contract 30261) - with Alinta Energy – ends 30 June 2030.

The annual total electricity consumed for 2022/23 was 7,791MWh. This equates to the total expenditure for electricity of $1.73M.

VECO is a collaboration of 51 councils to purchase 100 per cent renewable electricity via a long-term power purchase agreement. Council approved being part of this contract on 21 April 2021. The sites that are currently part of the VECO contract are:

· Whitehorse Civic Centre

· Nunawading Community Hub

· Box Hill Town Hall and Hub

· Operations Centre

· Sportlink

· Aqualink Box Hill

Part of the resolution of the meeting on 21 April 2021 was that “Council considers rolling in Council’s small market sites (minor buildings and community leased buildings) and remaining large market sites into the VECO Renewable Electricity Service Agreement (RESA) on expiry of their current electricity contracts.”

Proposed Changes to Council’s electricity contracts

It is proposed to move the small market and remaining large market sites from the PA fixed contract to the VECO contract at the end of the Procurement Australia contract term on 30 June 2024. This means that the cost of electricity will decrease, along with the benefit of the electricity being 100 per cent renewable.

In addition, it is proposed to move the purchase of electricity for streetlighting from the Procurement Australia PPA contract to the VECO contract on 31 December 2023 or when Council exits the current contract. This is a negotiated exit from the contract and the contract includes provisions for a fee to be paid to exit the contract early. There will be savings in electricity costs and not needing to purchase carbon offsets for this electricity. Overall, this is a more cost-effective option for Council.

Strategic Alignment

Whitehorse 2040 Community Vision and Council Plan

This strategy aligns with the Whitehorse 2040 Community Vision and Strategic Direction 5 in the Council Plan 2021-2025, sustainable climate and environmental care with the following:

· Objective: Council will take a leadership role in addressing climate change and ensure we protect and enhance our natural environment.

· Strategic Actions: Lead on climate change and build the resilience of our community, and the natural and built environment through implementation of the Sustainability Strategy 2023 Taking Climate Action.

Policy

Current lead documents to guide Council and to help the community to become more sustainable and respond to climate change impacts are the Whitehorse Sustainability Strategy 2016-2022 and the Interim Climate Response Plan 2020-2022.

Council resolved to be carbon neutral at the Council meeting on 17 April 2023.

Discussion and Options

Moving the purchase of electricity from the PA contracts to the VECO contract provides the best value for Council as shown in the confidential attachment.

The current contracts with PA for small market and remaining large market sites can transition to the VECO contract on 1 July 2024. If Council does not move this purchase into the VECO contract then Council would need to seek inclusion with another PA contract or seek its own prices, both of which would not offer the cost avoidance and environmental benefits of the VECO contract.

The current streetlighting contract with PA requires an early exit from the contract. If Council does not exit the contract early, the option is to stay with the existing contract with a marginally higher peak/off-peak rate for electricity and continue to pay carbon offsets on an annual basis.

On 9 October 2023, Council resolved under item 9.1, amongst other things, to:

3. Seek a report from officers, the report to include:

a) Reconsideration of Council's decision (of 25 July 2022 and 17 April 2023) to purchase carbon offsets and seek certification under Climate Active to be carbon neutral, rather elects to pursue self-accreditation.

b) An investigation into reducing Council's purchase of carbon offsets for future years by an amount equivalent to the methane saved by diverting food waste from landfill through the FOGO service and these savings go towards reducing the charge to residents for having a lime green-lid food and garden organics (FOGO) bin.

This resolution does not impact the emissions and offset arrangements discussed in this report. Offsets for the purchase and consumption of electricity would be required for any self-accreditation scheme and are not related to methane or the FOGO service.

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

There are no legislative implications for this report. The financial risks and commercial risks have been considered as outlined in the confidential attachment.

Equity, Inclusion, and Human Rights Considerations

In developing this report to Council, the subject matter has been considered in accordance with the requirements of the Charter of Human Rights and Responsibilities Act 2006.

It is considered that the subject matter does not raise any human rights issues.

Community Engagement

No community engagement was required for this report.

Financial and Resource Implications

There are no resource implications.

The financial implications are presented in Confidential Attachment 1 – Financial Implications for Electricity Contracts.

Innovation and Continuous Improvement

There are no Innovation and Continuous Improvement matters arising from the recommendation contained in this report.

Collaboration

Both the VECO contract and the Procurement Australia contracts are collaborative procurement arrangements.

Conflict of Interest

Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

It is recommended that Council approves to add additional sites to the current Victorian Energy Collaboration (VECO) Contract LGV038 with Red Energy (Council Contract 30347), including electricity for all small market and remaining large market sites and electricity for streetlighting.

This will ensure Council meets its carbon neutral obligations and continue to reduce its greenhouse gas emissions in a financially responsible manner.

Attachment

1 Confidential Attachment - Financial Implications for Electricity Contracts

Whitehorse City Council designates this attachment and the information contained in it as CONFIDENTIAL INFORMATION pursuant to Section 3 (1) (g) and (g(ii)) of the Local Government Act 2020. This ground applies because the matter concerns private commercial information that if released would unreasonable expose Council to disadvantage.

Council Meeting Minutes 23 October 2023

10.6 Contract 30478 - Provision of Tree Management Services

Department

Parks and Natural Environment

Director Infrastructure

Attachment

SUMMARY

Council manages approximately 73,000 street trees, over 150,000 park trees and is committed to preserving and enhancing the urban forest. Managing trees includes managing risk as far as reasonably practical and complying with all relevant regulatory requirements to ensure public safety.

Council undertakes proactive and reactive tree programs to manage its tree population. A large percentage of services are contracted due to the skills and training required to manage the inherent risk associated with the type of work, the significant number of resources and staff required to undertake the works and the capacity of the market to provide competitive tenders.

Street tree management is undergoing a transformation as Council adjusts to the implications of aging tree populations and increased rigour in regulatory compliance on vegetation clearance distances around overhead power lines. The pace of change in Whitehorse has been accelerated following power line clearance compliance audits by Energy Safe Victoria (ESV) and the energy distribution business United Energy Powercor to clear street tree vegetation away from power line infrastructure. Both ESV and United Energy Powercor have powers to compel Council to act and provision to impose financial penalties for failure to act.

The current contracts relating to tree maintenance is concluding and this report is to consider tenders received for the future provision of Tree Management Services and to recommend the acceptance of the tenders received from a panel of service providers, as set out below, for each of four different services on a Lump Sum basis for Category One (Cyclic Tree Services) services and a Schedule of Rates basis for all other categories (General Tree Services, Supply of Tree Stock, Tree Planting and Maintenance Services and Arboriculture Consultancy Services), for a period of seven years nominally commencing 1 November 2023 with no option for a further extension; and to consider the estimated expenditure over the life of the contract for the amount of up to $60M, excluding GST. Council’s future budgets will be prepared in recognition of the required expenditure under this contract.

Council Resolution

Moved by Cr Massoud, Seconded by Cr Cutts

That Council:

1. Accepts the tender and signs the formal contract document for Contract 30478 Tree Management Services received from:

Category One – Cyclic Tree Services

· TreeServe Pty Ltd (ABN 87 169 334 712) of 55 Zenith Road Dandenong South VIC 3175

Category Two – General Tree Services

· Arbor Solutions Pty Ltd (60 138 962 026) of 1/6 Jersey Rd Bayswater VIC 3153

· Aspect Tree Management Pty Ltd (ABN 72 605 641 576) of 75 Glenfern Rd Ferntree Gully VIC 3156

· City Wide Service Solutions Pty Ltd (ABN 94 066 960 085) of 294 Arden Street, North Melbourne VIC 3051

· Heritage Tree Professionals (ABN 11 318 125 425) of 2068 Wellington Rd Clematis VIC 3782

· Lucas and Co Pty Ltd t/a Lucas Tree Services (ABN 50 611 315 452) of 120 Brysons Road Warrandyte South VIC 3134

· Steven's Specialist Tree Services Pty Ltd (ABN 82 099 910 853) of 9 Nevin Dve Thomastown VIC 3087

· The Tree Company Arboricultural Services Pty Ltd (ABN 97 120 997 239) of 467 Canterbury Road Surrey Hills VIC 3127

· TreeServe Pty Ltd (ABN 87 169 334 712) of 55 Zenith Road Dandenong South VIC 3175

Category Three – Supply of Tree Stock, Tree Planting and Maintenance Services (Excluding tree stock due to limited submissions)

· Arbor Solutions Pty Ltd (60 138 962 026) of 1/6 Jersey Rd Bayswater VIC 3153

· Arborspray Pty Ltd (ABN 66 076 529 747) of 21 Albert Rd Drouin VIC 3818

· Aspect Tree Management Pty Ltd (ABN 72 605 641 576) of 75 Glenfern Rd Ferntree Gully VIC 3156

· City Wide Service Solutions Pty Ltd (ABN 94 066 960 085) of 294 Arden Street, North Melbourne VIC 3051

· Dianabelle Pty Ltd t/a Rootcontrollers & Hydrox Australia (ABN 32 065 581 133) of 103 Maffra Street Coolaroo VIC 3048

· Joeys Tree Services (ABN 12 036 913 604) of 7 Wyangala Crt Lysterfield VIC 3156

· Lucas and Co Pty Ltd t/a Lucas Tree Services (ABN 50 611 315 452) of 120 Brysons Road Warrandyte South VIC 3134

· Sevron Environmental Contractors Pty Ltd (ABN 41 165 444 011) of U3, 1401 Burke Road Kew East VIC 3102

· The Tree Company Arboricultural Services Pty Ltd (ABN 97 120 997 239) of 467 Canterbury Road Surrey Hills VIC 3127

Category Four - Arboriculture Consultancy Services

· Aspect Tree Management Pty Ltd (ABN 72 605 641 576) of 75 Glenfern Rd Ferntree Gully VIC 3156

· C&R Ryder Consulting Pty Ltd ATF C&R Ryder Family Trust t/a C & R Ryder Consulting Pty Ltd (ABN 47 376 684 521) of U12/8 Sigma Drive Croydon South VIC 3136

· Enspec Pty Ltd (ABN 92 062 909 255) of U2-13 Viewtech Place Rowville VIC 3178

· The Trustee for Ben and Rachael Kenyon Family Trust t/a Homewood Consulting Pty Ltd (ABN 39 531 880 706) of U10, 350 Settlement Rd Thomastown VIC 3074

· Lucas and Co Pty Ltd t/a Lucas Tree Services (ABN 50 611 315 452) of 120 Brysons Road Warrandyte South VIC 3134

· Peter Bourke t/a The Project Arborist (ABN 41 292 315 347) of 22 Blackburn Road Mooroolbark VIC 3138

· R. Greenwood Consulting Pty Ltd t/a The Roger Greenwood Family Trust (ABN 54 170 171 876) of 172 Ridge Road Mount Dandenong VIC 3767

· The Tree Company Arboricultural Services Pty Ltd (ABN 97 120 997 239) of 467 Canterbury Road Surrey Hills VIC 3127

· Urban Amenity Tree Management (ABN 82 167 818 245) of 11 Sims Street Pascoe Vale VIC 3044

· Xylem Tree Care Pty Ltd (ABN 13 640 958 532) of U303a, 22 St Kilda Rd St Kilda VIC 3182

2. Authorises the Director Infrastructure via the Chief Executive Officer’s Instrument of Sub- Delegation to determine changes to the number and type of services allocated to the panel members for Contract 30478 Tree Management Services, subject to supplier performance and capacity for the duration of the contract.

3. Notes that the proposed expenditure for Contract 30478 Tree Management Services is within the 2023/24 Budget allocations and future expenditure will be in accordance with future years’ Budget allocations.

Carried Unanimously

Key Matters

A new contract specification and contract tender documentation was prepared, aimed at:

· maximising competition,

· enabling opportunities for Council to receive discounted rates for tendered prices where tenderers receive multiple components of the contract, and

· providing contractual means to manage contractor performance through a default point system linked to six KPIs – service delivery, quality of service, administration, customer service, emergency response, and defaults.

An increase in Council expenditure for Tree Management Services was anticipated as being likely as part of this tendering process to meet the changed needs of regulatory compliance and the ongoing safe management and renewal of tree assets and the revision of the contract specification and contract was aimed at mitigating this outcome.

The implications of this were previously reported to Council on 15 March 2021 (Item 6.2.1). Council resolved:

In addition to the contractual revisions, to ensure tenderers had a sound understanding of the workload requirements, particularly for power line clearance, Council undertook a municipal wide street tree data collection in 2021 and implemented a tree management software system. This will help inform and efficiently manage ongoing requirements and appropriately manage risk and regulatory compliance. The data collected via this mechanism was used as a basis for those submitting tenders to provide detailed costings on each of the categories for tender.

Furthermore, the Tree Management Services tender sought to provide Council with the required resources to manage all regulatory pruning, cyclic and reactive pruning, storm response services, street tree planting and renewal programs, arboriculture consultancy and all other associated tree services required to manage the entire tree population.

The tender for Tree Management Services was divided into four categories to attract a broader section of respondents and gain best value for the resulting contract. The categories included:

1. Cyclic Tree Pruning for power line clearance and for trees not under power lines (including pricing options on different pruning frequencies for trees under power lines and trees not under power lines)

2. General Tree Services

3. Supply of Tree Stock, Tree Planting and Maintenance Services

4. Arboriculture Consultancy Services

Pre-tender benchmarking within the industry showed that some councils’ cyclic pruning contract costs have materially increased since the previous contracts five to seven years prior. Power line clearance compliance within the current regulations has resulted in an increase in pruning requirements, vegetation removal and processing, and ongoing regrowth removal. This takes additional time, resources, plant and equipment, and fuel. The tender for this contract sought to mitigate against cost increases.

The tender documents for this contract were developed with the assistance of industry professionals and contract lawyers to ensure the required tender was structured to achieve best value for Council while appropriately managing all associated risks. The contract specification was written to enable opportunities for contractors to tender discounted rates if multiple components of the contract were awarded to the contractor. The tender documents also provided a range of tender options designed to make the service available to a greater range of contractors, not just the few larger contractors, to ensure the most competition possible and best value for Council.

Within the arboriculture field there is a current skills shortage which is impacting on resource costs. The work is specialised and requires a high degree of skill and training to ensure community safety.

Costs associated with the extensive plant and equipment required to undertake these works have also increased significantly over recent years. Trucks, towers, and chippers have increased in complexity to better manage OHS risks, are expensive to procure and maintain, and fuel price increases also have an impact.

As anticipated the costs for providing Tree Management Services has increased across the board which is consistent with other councils’ experience. However, through the tender specification structure and by offering the security of a seven-year contract Whitehorse has been able to secure competitive pricing on some of its categories – most significantly the Cyclic Tree Pruning.

This contract will assist Council in achieving power line clearance compliance within the current regulations and mitigate the risk of future ESV noncompliance fines.

The Tender Evaluation Panel is not recommending accepting a tender for the plant stock component of the contract. This was due to a limited number of suppliers submitting for this component of the tender. This component will be retendered.

Endorsement of the tender recommendation will enable Council to maintain a continuation of services to manage risks and maintain the urban forest in line with Council strategy.

Details of the tender evaluation are provided in Confidential Attachments 1 and 2.

Strategic Alignment

This report is consistent with Council’s procurement policy and aligns with Council’s commitment to social and environmental sustainability and support to local business. It also aligns with:

· Whitehorse Open Space Strategy

· Whitehorse Urban Forest Strategy

· Whitehorse Integrated Water Management Strategy

Policy

The Tree Management Services tender helps support Council’s Urban Forest Strategy. Council manages approximately 73,000 street trees and over 150,000 park trees and is committed to preserving and enhancing the urban forest while balancing the competing demands of complying with all relevant regulatory requirements. Council must continually manage tree health and mitigate all risks associated with tree populations as far as reasonably practicable to ensure public safety.

· Benchmarking and investigation into other industry professionals as well as contract specifications and requirements at other councils has been undertaken, including through Council Arboriculture Victoria.

· Council’s Procurement team has been consulted extensively to ensure that the procurement is compliant with the Procurement Policy.

Background

· Tenders closed on 6 September 2023. Thirty tender submissions were received some of which tendered for multiple services across the four areas covered in the specification. All submissions were compliant. Nineteen Submissions were considered best value and have been recommended for the panel across the four categories. In particular, the nominated contractors demonstrated a superior understanding of the Tree Management service standards and requirements, including access to numbers of appropriately qualified and experienced staff, resources and equipment as well as understanding Council’s desire to engage with contractors that have strong social procurement values.

The tenders were evaluated against the following criteria:

· The Tender Offer (40%).

· Capability (30%).

· Credibility (20%).

· Social and Environmental sustainability (5%).

· Local Contents (5%), and

· Occupational Health & Safety and Equal Opportunity (Pass/Fail).

The scoring matrix has been provided in Confidential Attachment 1 to this report.

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

There are no legal or risk implications arising from the approval for this tender evaluation, notwithstanding the significant legal and risk environment that this contract is seeking to mitigate.

All of the recommended tenderers meet all Occupational Health and Safety requirements and provided evidence including risk plans, insurances, training schedules, quality assurance and environmental plans. The reference checks substantiated the outcome of the evaluation panel and the contractors’ staff nominated in the tender responses have the relevant licences in place including, but not limited to, current working at heights, police and working with children’s checks where required.

Legal advice has informed the enhanced performance management clauses within the contract.

Consultation

Council’s Procurement team has been consulted extensively to ensure that the procurement is compliant with the Procurement Policy. Consultation also occurred with the Eastern Regional Procurement Network, Council’s Strategic Planning staff and broad representation across the Infrastructure Directorate.

As part of the on-ground activities associated with this contract, a range of community consultation activities will be necessary to keep the community informed of works and to seek input where the community has an opportunity to influence works.

Collaboration

Regional collaboration was investigated however due to the size and complexity of the tender, and the need for resources to be dedicated and available to Council in the event of storm or other urgent responses, it was assessed that the aggregation of work would not present a better pricing offer or lead to enhanced contractor availability.

Financial and Resource Implications

The contract for Tree Management Services is based on a hybrid financial structure with a Lump Sum for Cyclic Pruning Services and a Schedule of Rates for the remaining portions of the contract. The rates are subject to a CPI adjustment on each anniversary of the contract. Contract rate adjustment mechanisms were assessed, and it was concluded that CPI was the most suitable measure and that any alternate arrangement would lead to tender submissions pricing in risk associated with a different adjustment index.

· Expenditure under the current contracts has been assessed along with current industry pressures and pricing to determine estimated future spend. The total spend under existing contracts for the past four year plus two year extension period (six years) has been in excess of $36 million and includes a number of storm events.

· The current budgeted expenditure on contracted arboriculture services for the 2023/24 financial year is approximately $5.6 million.

· The costs incurred under this contract will be charged to the relevant endorsed recurrent budgets within Parks and Natural Environment Department.

· The above includes a range of Schedule of Rates components. While there were workload indicators provided in the tender documentation, there is no minimum amount of work required to be offered to any contractor. This gives Council flexibility in managing the workload across the contractors appointed to this contactor panel based on the best cost outcome. It also provides Council with the ability to compare the cost outcome with Council’s in-house service team.

· The financial implications and detailed assessment of the Tender are outlined in Confidential Attachment 2 to this report. The recommendations to accept tenders for this contract are in line with the forward budget provisions.

Discussion and Options

The Evaluation Panel examined all of the responses in detail in order to assess the respondents’ level of acceptability against each criterion as well as performance referee checks which generally supported the conclusions of the Evaluation Panel.

The recommended contractors provide a high level of expertise as well as excellent knowledge of the changes in the regulatory requirements for Tree Management. They each demonstrated Best Value through the combination of price and quality criteria. Particular attention was paid to the qualifications, licences and experience of the contractors that will be undertaking the services in this contract. With the changes to the regulations and standards for Tree Management Services there is a requirement across a range of the services for staff to hold a minimum of a Level 3 and in some cases a Level 5 Certification in Arboriculture as well as extensive experience. Some of the respondent’s did not meet this level of certification.

Given the volatility of the market, sourcing issues and infrastructure constraints the panel considered the resources of the contractors (staff, equipment and vehicles), their response times, capability to adhere to the regulations, standards and to deliver within the timeframes required.

To reduce undue exposure to financial and service provision risk and in the event that a Service Provider fails for any reason, the proposed panel has a number of contractors who can provide the broad mix of Tree Management Services that Council requires. Some are more specialised than others such as Tree Root control and Elm Leaf Beetle control where there are very few contractors in the market, but the vast majority of preferred contractors can provide a solid service across all categories at a competitive price.

This will also allow Council in the event of a severe storm or unforeseen environmental factor to access additional teams of staff and will mitigate the risk of business disruption and Council’s ability to keep its community safe. Furthermore, it enables Council staff to cross check and stimulate performance standards which will be monitored and measured over the course of the contract. A demerit system has been introduced for the first time to assist in the compliance of service standards and expectations.

Council chose to tender for a seven-year contract to optimise tendering attractiveness and pricing efficiencies consistent with risk management in the event that a contractor withdraws from service provision, the capability of the contract manager to monitor KPIs in a complex service delivery contract and to benchmark performance between contractors over the life of the contract. The proposed contractors reflected the level of credibility sought, pricing that is consistent across the open market and demonstrated capability to deliver the contract services at a standard commensurate to the regulations and expectations of Council and the Whitehorse community as a whole.

The Tender Evaluation Panel also considered financial sustainability and each of the preferred respondents committed to a discounted price if offered a range of services across all categories.

Moreover, the recommended contractors have invested in making a Social and Environmental impact including but not limited to:

· Partnerships with WISE Employment and Apprenticeships Matter to attract women into the industry and provide flexible working arrangements.

· Partnership with MAS - Aus Apprenticeship Support Network – Indigenous

· Established partnership with Goal Indigenous Services and Brotherhood of St Laurence for traineeships and reception staff.

· Engage ‘Go Traffic’ - Indigenous supplier as sub-contractor.

· Engage Elisha Care - recovering drug & Alcohol dependence for grounds maintenance and vehicle cleaning.

· Engage Social Enterprises such as Bayside Letterbox Deliveries for letter drops. Open pathways for disadvantaged youth - working with VicLLENs. Partnership with Supply Nation, Partnerships with Brotherhood St Laurence and Good Cycles. Other arrangements with Aboriginal Employment Strategy and Bamstone

· Source materials and products from social enterprises, First Nation suppliers and Indigenous Employment Partners including successfully partnering with ASRC and the Axis Program for socially and economically disadvantaged people.

· Long term sponsorship of social enterprises and sustainability organisations

· Partnerships with Wallara, NGIV, At Work, Asylum Seekers - job readiness programs. Job Fairs for disadvantaged youth - in partnership with schools. Promotional material developed by "position' Indigenous supplier.

· Donations and sponsorship to TreeProject a volunteer organisation that is leading the way in sustainable re-vegetation of indigenous seedlings for rural and regional revegetation.

· 100% of suppliers have policies and or written commitment statements on Social and Environmental Sustainability

Conflict of Interest

Council officers involved in the preparation of this report have no pecuniary or conflict of interest in this matter.

Conclusion

It is recommended that Council appoints nominated contractors for this contract as outlined in this report. It is nominally intended that the contract commence from 1 November 2023.

Attachment

1 Contract 30478 Tree Management Services C04 Weighted Attribute Evaluation Form Attachment One

2 Contract 30478 Tree Management Services Tender Evaluation Financial Impact and Detailed Assessment Attachment Two

Council Meeting Minutes 23 October 2023

10.7 Contract 30315 and Contract 30320 Extension - Provision of Landfill Services

Department

City Services

Director Infrastructure

Attachment

SUMMARY

This report proposes the extension of Provision of Landfill Services which is a collective procurement arrangement originally administered by Metropolitan Waste and Resource Recovery Group (MWRRG), now Department of Environment Energy and Climate Action (DEECA). The DEECA reference for the arrangement is No. 2020-23. The Council reference is Contract 30315 for disposal of kerbside garbage, and Contract 30320 for disposal of waste from the Whitehorse Recycling and Waste Centre.

The initial term for both contracts under the arrangement is 1 April 2021 to 31 March 2025, with options to extend for two further terms of two years.

Under the terms of the arrangement, DEECA must advise contractors prior to 31 December 2023 that the participating councils are agreeable to extending the arrangement and agree to the revised rates. The term of the proposed extension is two years from 1 April 2025 to 31 March 2027. The option for a further two-year extension to 2029 will be considered in two year’s time.

Council Resolution

Moved by Cr Massoud, Seconded by Cr Munroe

That Council approves the extension of Provision of Landfill Services which is a collective procurement arrangement administered by Department of Environment Energy and Climate Action (DEECA), DEECA reference No. 2020-23, for the period from 1 April 2025 to 31 March 2027, including the following services:

1. For disposal of kerbside garbage with Cleanaway Pty Ltd and Veolia Recycling and Recovery Pty Ltd using a common gate fee to be administered by DEECA (Council Contract 30315).

2. For disposal of waste from the Whitehorse Recycling and Waste Centre with Hanson Landfill Services Limited and Cleanaway Pty Ltd (Council Contract 30320).

Carried Unanimously

Key Matters

The Provision of Landfill Services is a collective procurement arrangement originally administered by Metropolitan Waste and Resource Recovery Group (MWRRG), now Department of Environment Energy and Climate Action (DEECA). The DEECA reference for the arrangement is No. 2020-23. The Council reference is Contract 30315 for disposal of kerbside garbage, and Contract 30320 for disposal of waste from the Whitehorse Recycling and Waste Centre.

The current contractors are:

· For disposal of kerbside garbage there is a Common Gate Fee administered by DEECA (Council Contract 30315) for:

o Cleanaway Pty Ltd; and

o Veolia Recycling and Recovery Pty Ltd.

· For disposal of waste from the Whitehorse Recycling and Waste Centre:

o Hanson Landfill Services Limited (Council Contract 30320/1); and

o Cleanaway Pty Ltd (Council Contract 30320/2).

All contractors have agreed to continue to provide landfill services and provided revised pricing subject to Council’s endorsement.

Strategic Alignment

These contracts align with the Council Plan 2021–25, Strategic Direction 5: Sustainable climate and environmental care: Objective: Council will take a leadership role in addressing climate change and ensure we protect and enhance our natural environment.

Policy

The relevant Council strategy is the Whitehorse Waste Management Strategy 2018-2028. The Strategy, while promoting increased landfill diversion rates, recognises that landfilling will still be required for a number of years.

Council is part of the South East Metropolitan Advanced Waste Processing project and the evaluation process for this project is continuing. An alternative to landfilling is unlikely to be available under this arrangement before 2027.

Background

In 2021, the former Metropolitan Waste and Resource Recovery Group (MWRRG) conducted a collective procurement process for landfill services on behalf of 26 metropolitan councils. As a result of legislative changes, the contracts are now administered by Department of Environment Energy and Climate Action (DEECA).

The objective of the procurement was to enable metropolitan councils to access cost effective services for the disposal and transfer of waste that cannot be recovered or reused through other means.

On 15 March 2021, Council approved Provision of Landfill Services collective procurement. The DEECA reference for the arrangement is No. 2020-23. The initial term of the arrangement is from 1 April 2021 to 31 March 2025, with options to extend for two further terms of two years. The contracts that were awarded are:

· For disposal of kerbside garbage with Cleanaway Pty Ltd and Suez Recycling and Recovery Pty Ltd using a common gate fee to be administered by DEECA (Council Contract 30315).

· For disposal of waste from the Whitehorse Recycling and Waste Centre with Hanson Landfill Services Limited (Council Contract 30320/1) and Cleanaway Pty Ltd (Council Contract 30320/2).

Note that on 19 January 2022, Suez Recycling and Recovery Pty Ltd became part of Veolia Recycling and Recovery Pty Ltd. Suez Recycling was the original contractor under the agreement.

In 2021, Whitehorse and eleven other councils agreed to enter a Common Gate Fee arrangement for kerbside garbage where waste would be distributed between Cleanaway South East Melbourne Transfer Centre (SEMTS) in Dandenong South, and the Veolia Hampton Park Landfill, in the most efficient manner and the costs apportioned between councils on an equitable basis. Cleanaway transports the waste from SEMTS to Cleanaway Melbourne Regional Landfill (MRL) in Ravenhall.

The Common Gate Fee is administered by DEECA with the objectives to minimise the gate fee for participating councils and where possible ensure that waste is transported to the most convenient location.

The landfill waste from the Whitehorse Recycling and Waste Centre is taken directly to either the Hanson’s Wollert Landfill, or the Cleanaway’s Melbourne Regional Landfill (MRL) in Ravenhall. The decision as to what landfill is used is based on best value for money considering traffic conditions, wait times at the facilities and the time taken for a return trip.

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

The objective of these contracts is to provide a waste disposal service, in line with the State Government’s Recycling Victoria Policy that is compliant with the relevant EPA requirements.

Consultation

Council’s Procurement team has been consulted to ensure that the contract extension is compliant with the Procurement Policy. The scoping of the services and evaluation was undertaken with input from the relevant officers within Council.

Community consultation is not relevant to this contract extension consideration.

Collaboration

This is a collaborative procurement arrangement administered by Department of Environment Energy and Climate Action (DEECA). Whitehorse and eleven other councils participate in the arrangements.

Financial and Resource Implications

The revised pricing is provided in Confidential Attachment 1: Contract Extension Pricing.

The estimated total expenditure under both the proposed arrangements depends on estimating the total volumes of waste disposed to landfill and an estimate of CPI.

Table 1 – Estimated totals to 31 March 2025, first term (4 years)

	Tonnes to landfill	Contract Charges	Landfill Levy	Total Charges Plus Landfill Levy
Kerbside collection	104,199	$6,933,442	$12,459,691	$19,393,133
Whitehorse Recycling and Waste Centre	160,439	$7,069,888	$20,092,518	$27,162,406
Total	264,638	$14,003,330	$32,552,209	$46,555,538

Table 2 – Estimated totals to 31 March 2027, including first two-year extension (6 years)

	Tonnes	Contract Charges	Landfill Levy	Total Charges Plus Landfill Levy
Kerbside collection	160,030	$11,239,392	$20,572,351	$31,811,742
Whitehorse Recycling and Waste Centre	246,939	$11,418,424	$33,621,295	$45,039,719
Total	406,968	$22,657,815	$54,193,646	$76,851,461

Discussion and Options

Participating in this joint procurement arrangement remains the best option for Council. All contractors under this agreement have consistently met the performance standards around site availability, site access and minimising turnaround times. All landfill sites meet the relevant EPA licencing requirements.

Council could conduct its own procurement for landfill services but would not achieve the volumes of waste required for discounted pricing and therefore be subject to higher rates as all providers of landfill services provide lower rates for higher disposal tonnages.

Transporting waste to landfill remains Council’s only option until an alternative treatment such as waste-to-energy is provided within a reasonable distance to transport the waste to.

It is expected that landfill diversion rates will increase as FOGO and recycling options are maximised, however until an advanced waste processing option is available, landfilling will continue to be necessary.

Conflict of Interest

Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

It is recommended that Council approve the extension of Provision of Landfill Services administered by Department of Environment Energy and Climate Action (DEECA), DEECA reference No. 2020-23, for the period from 1 April 2025 to 31 March 2027. This includes services for both disposal of kerbside garbage (Council Contract 30315), and disposal of waste from the Whitehorse Recycling and Waste Centre (Council Contract 30320).

Attachment

1 Confidential Attachment - Contract Extension Pricing

Council Meeting Minutes 23 October 2023

10.8 Financial Sustainability - Contract Management

Department

Transformation

Director Corporate Services

SUMMARY

Council’s Financial Plan 2021-31 notes that there are significant cost challenges facing Whitehorse City Council (Council) over the coming years. To ensure continuation of financial sustainability and quality community service delivery Council implemented a range of disciplined cost management and continuous improvement initiatives.

Following the Covid pandemic, the macro-economic environment in Australia has presented challenges for most businesses and individuals. This has exacerbated financial sustainability as a strategic risk within the Victorian local government sector.

Council is operating in an environment whereby: -

· Inflation is significantly higher than the rate cap (set under the Fair Go Rates System) thereby applying pressure on Council’s ability to manage costs - now and compounding into the future.

· Disrupted supply and logistics chains are delaying works.

· Reduced market competitors and competitiveness.

· Increased supplier risk being passed through as increased cost to Council.

· Cost-of-living crisis putting pressure on small and local suppliers.

· Increase in demand for Council to provide financial support to its community, suppliers and employees

Council has recognised the need to identify and develop a more dynamic, community-minded and strategic procurement approach to optimise its financial sustainability.

This report proposes the option to invest in a new temporary function to address and mitigate these inflationary and risk impacts on Council’s largest expenditure category which is ‘supplier expenditure under contract management’.

To deliver services and infrastructure Council relies on two main resources: employees and suppliers. Suppliers are typically engaged through contracts governed by Council’s Procurement Policy. Council’s annual expenditure on goods and services across its operational and capital expenditure programs is over $120M per annum which is a key exposure to inflationary pressure. Council’s average contract is four years in duration this means that Council’s exposure is multi-year in nature and there is limited timeline to reduce inflationary impact.

It is proposed to establish a new temporary function to target financial opportunities and mitigate cost pressure in procurement and contract management over the next three years to ensure financial sustainability longevity.

This new function would comprise 3.0 temporary full-time equivalent (FTE) of resources with a community minded and commercial acumen to target procurement sourcing, contract negotiation and management and expenditure category management. This function will be funded entirely through improvements to cash management. The benefits achieved will be reported back to Council and community via the existing quarterly Continuous Improvement reporting.

Council Resolution

Moved by Cr Barker, Seconded by Cr Davenport

That Council:

1. Endorses the proposal to establish a temporary three-year function to target financial opportunities in procurement sourcing, contract negotiation and management and expenditure category management as proposed in this report.

2. Approves an increase to organisational headcount of three full-time equivalent (FTE) represented as:
a) Average 1.5 FTE in 2023/24
b) Average 3.0 FTE in 2024/25 and 2025/26
c) Average 1.5 FTE in 2026/27

3. Approves a fully funded increase to operating expenditure budget of:
a) $300,000 in 2023/24
b) $550,000 in 2024/25
c) $500,000 in 2025/26
d) $250,000 in 2026/27

4. Notes that there is no net impact on budgeted surpluses.

Carried Unanimously

Key Matters

Council relies on two main resources to deliver services and infrastructure, being employees and suppliers. Suppliers are typically engaged via contracts which are entered into under its Procurement Policy. Council spends over $120M of expenditure per annum on goods and services across its operational and capital expenditure programs. This expenditure is impacted directly by inflation with most expenditure subjected to CPI. The anticipated inflationary pressures during 2023/24 on these costs could broadly be represented as:

· Approximately 4.6% increase to Contractual Spend

· Approximately 4.6% increase to Non-Contractual Spend

· Approximately 15% increase to Utilities (under contract)

· Approximately 15% increase to Insurance (under contract)

These increases significantly exceed the rate cap and therefore will result in an ongoing detrimental impact on Council’s financial sustainability. Unless a more dynamic, community-minded and strategic procurement approach is employed this will compel a change in Council’s operations, services and cost management approach.

Council’s average contract is four years in duration with most contracts having up to a two year extension option. This provides Council a limited window of time to address some of this financial challenge.

Contract costs are made up labour, equipment, plant and materials. To simply require contractors to reduce these costs is not practical as contractors experience the same financial climate as Council. The current financial climate requires Council to employ a more innovative and strategic approach including adjusting its risk allocation as contractors build in risk to their pricing to cover off on the varied requirements under the contracts. It may require a change in contracting methodology where Council takes on more risk, meaning that contracting pricing may fluctuate through variations should risks materialise.

The Macro-economic environment

There are several macro-economic factors which are currently negatively impacting on Council’s financial sustainability:

Covid-19 pandemic induced inflation

The COVID-19 pandemic and Australia’s ‘lockdown’ measures resulted in unexpected disruption to Council’s supply chains. These supply chains coordinate the distribution of goods and services which enable Council’s provision of services and infrastructure.

Inflation due to the Ukraine War

The Ukraine-Russia war has triggered a massive global economic shock particularly impacting on energy and food markets^{^[1]}. Russia was a major supplier of oil, gas and metal with both Russia and Ukraine supplying high amounts of wheat and corn^{^[2]}. This has seen the supply decrease and price rises to unprecedented levels. This has impacted Council through increases to its energy costs and flow-on supply chain cost impact (pushed to Council from its suppliers).

Foreign Exchange (AUD Devaluation)

The Australian dollar has devalued significantly relative to the American (US) dollar in 2023. When the US dollar is appreciating the cost of imports to Australia increases. A strong US dollar means the prices of certain goods are more expensive for Australians but is dependent on whether the goods are bought and sold in US dollars. This impacts on the costs of Council’s goods, services and income from its investments.

Queensland Floods

The 2022 floods in Queensland caused devastation to the local community and economy. An independent Deloitte Report into the Queensland floods revealed an estimated total cost of $7.7 billion to Queensland^{^[3]}. This has also resulted in supply chain induced impact to inflation. This disrupted exports from Queensland from key industries (particularly agriculture). Suppliers and Insurers have subsequently factored risk into their respective prices.

Rate Capping

The Fair Go Rates system was introduced in 2016 to ease cost of living pressures on Victorians and encourage sound financial management by local governments. In the decade before the system was introduced, council rates consistently exceeded inflation.

The decision on the rate cap is guided by independent advice from the Essential Services Commission (ESC). The Victorian State Government set the rate cap for FY2023/24 of 0.5 per cent below the ESC’s recommendation, taking into account cost of living pressures facing rate payers. This has compounded Council’s ability to align its capped income with increasing expenditure.

Supply Induced Inflation – Housing Market

Inflation influences the Australian housing market through cost-of-living pressures where the subsequent rising interest rates compound into an impact on consumer confidence. This means household budgets tighten, savings decrease and borrowing capacity decreases which results in lower housing demand and increase in rental demand. The inflationary impact on construction means the cost to build increases which impacts on rental costs. Although this does not directly impact on Council’s financial sustainability, it is a consideration for Council’s rate payers, residents, businesses and visitors.

All these factors have compounded to further impact on Council’s financial sustainability.

Targeted intervention

A targeted intervention approach provides Council the option to establish a new function which will target financial opportunities and mitigate risk in procurement and contract management over the next three years. This is an opportunity for Council to prioritise and strategically focus on mitigating inflationary impacts, whilst exploring strategic procurement opportunities, to ensure financial sustainability.

The proposed function would comprise 3.0 FTE of resources with a community-minded commercial acumen to target procurement sourcing, contract negotiation and contract management and expenditure category management.

The proposed new function will introduce a new discipline into Council’s procurement processes and target:

· High value contracts

· Opportunities where escalation factors are impacting

· Contractual partnerships that balance inflationary loads against Rate Cap and more specific cost escalation factors

· Collaboration opportunities

· Efficiency, volume and cost reduction returns

· Focused expenditure category management

· Cost and vendor aggregation

This function will work with key subject matter experts to target approach to market, procurement strategy and contract negotiation. The function will also work within the organisation to improve contract management practice.

It is proposed to balance risks and costs to derive an overall financial benefit to Council over its portfolio of contracts. At this time, a financial payback on the resource injections associated with this project cannot be calculated. The benefits will be calculated annually after a detailed analysis of the contract pipeline by the new resources. Due to the ability for this detailed information to impact on Council’s financial outcome, this information will be released as part of annual benefits reporting.

Organic intervention

It is possible to address these strategic procurement, contract management and expenditure category management attributes through an ‘organic’ approach with no targeted function to intervene. This would require process, policy, cultural and behavioural change coupled with significant skill development without any centralised support.

Due to the multi-year timeframes associated with Council’s contract landscape benefit realisation, and associated risk mitigation, this would not transpire to any material extent until the end of the decade at which time financial sustainability would have been detrimentally impacted.

Strategic Alignment

The community vision 2040 is achieved though the actions of Council, community, and its partners, to participate in this Council needs to have financial resources to deliver.

The Whitehorse Council Plan 2023 (Year 3) sets out its strategic direction. Strategic Direction 1 - An innovative Council that is well led and governed has a focus on long term financial sustainability through responsible financial decisions. This is critical to ensure Council can continue to meet community expectations, needs and service demand.

Financial management and long-term sustainability is core to good governance. This work is reflective of Council’s Financial Plan 2021-31. This can be found on Council’s website via this link: Financial Plan 2021-2031.

background

Council’s Financial Plan 2021-2031 sets out a long-term view of the future resources and funding sources to deliver Council’s services, initiatives and capital works projects over the next 10 years. The financial projections are based on a set of assumptions, decisions, strategies and other influencing factors and will be reviewed each year. The financial projections are based on a set of assumptions, decisions, strategies and other influencing factors and will be reviewed each year.

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

There are no legal or risk implications arising from the recommendation contained in this report.

Equity, Inclusion, and Human Rights Considerations

In developing this report to Council, the subject matter has been considered in accordance with the requirements of the Charter of Human Rights and Responsibilities Act 2006. It is considered that the subject matter does not raise any human rights issues.

Community Engagement

No community engagement was required for this report.

Financial and Resource Implications

The financial implication is outlined in the table below. This is associated with a 3.0FTE increase to organisational headcount and a small amount for system improvements. These staff resources would be engaged on three contracts from January 2024 to December 2026.

FY2324	FY2425	FY2526	FY2627	Total
$300,000	$550,000	$500,000	$250,000	$1,600,000

Council has identified a funding source through improved cash management to offset this cost. The net cost to Council will be zero.

Innovation and Continuous Improvement

This is a continuous improvement initiative and benefits resulting from this initiative will be captured and reported through our existing quarterly and annual reporting channels. The new function will be supported by policy, process and cultural change.

Collaboration

No collaboration was required for this report.

Conflict of Interest

The Local Government Act 2020 requires members of Council staff, and persons engaged under contract to provide advice to Council, to disclose any direct or indirect interest in a matter to which the advice relates. Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

Council has a time-limited opportunity to invest in a new capability to limit the impact of inflation and the macro-economic climate on its operations. This would target the contractual undertakings of Council. The option proposed has been self-funded and benefits would be reported to the community quarterly.

Council Meeting Minutes 23 October 2023

10.9 2022/23 Annual Report

Department

Corporate Planning and Performance

Director Community Services

Attachment

SUMMARY

Council’s Annual Report is to be considered at the Council meeting on Monday 23 October 2023 in accordance with the Local Government Act 2020.

Council Resolution

Moved by Cr Stennett, Seconded by Cr Skilbeck

That Council endorses the 2022/23 Annual Report.

Carried Unanimously

Key Matters

The Annual Report is a whole-of-Council legislated publication, as defined in the Act, and an opportunity for Whitehorse City Council to share with the community its achievements and challenges of the past financial year. These include progress updates on the Council Plan strategic indicators and actions alongside the financial statements for the period.

Key highlights:

· The format of the Annual Report has been enhanced this year, taking on a more community focused look and feel to showcase Council’s achievements.

· The creation of this Annual Report has been a cross-organisational collaboration effort, engaging multiple departments to ensure data integrity and that our community is well represented.

· The key community highlights have been moved to the front of the document, including more imagery of, and narrative about, our community.

· All compliance and financial detail have been included in the second half of the document.

· The section labelled ‘Our Performance’ consolidates all updates for the Council Plan 2021-2025 progress including strategic indicators, and the Local Government Performance Reporting Framework (LGPRF).

Strategic Alignment

The Annual Report aligns to both the Council Plan 2021-2025 and Community Vision 2040.

The report supports Strategic Direction 8: Governance and Leadership. In particular, it supports the following objectives:

· Objective 8.2: Provide responsible financial management and business planning.

· Objective 8.3: Good Governance and Integrity.

background

Section 98 of the Local Government Act 2020 requires a Council to prepare an annual report in respect of each financial year.

An annual report must contain the following—

(a) report of operations of the Council;

(b) an audited performance statement;

(d) a copy of the auditor's report on the performance statement;

(e) a copy of the auditor's report on the financial statements under Part 3 of the Audit Act 1994;

(f) any other matters prescribed by the regulations.

Council, at its meeting on Monday 9 October 2023, approved in principle the year-end financial statements and the performance statement in advance of the Auditor-General’s consideration.

Final signed audit reports on the financial statements and performance statement are scheduled to be received from the Auditor-General by mid-October 2023.

In addition to fulfilling statutory obligations, the report of operations provides an opportunity to report to the Whitehorse community about Council’s initiatives during the year. The Act requires Council to report progress toward Council Plan. The progress for Council Plan 2021-2025 for year two, 2022/23, has been detailed by strategic direction and progress reported was accurate as at the end of the 2022/23 financial year.

Discussion and Options

The Financial and Performance Statements have previously been presented to and considered by the Audit and Risk Committee, and endorsed by Council prior to lodgement with the Victorian Auditor-General. Council has received an unqualified audit report from the Auditor-General which has been included in the Annual Report.

The structure of the 'Our Performance' section of the Annual Report is aligned with the Community Vision 2040, Council Plan 2021-2025 and the Budget 2022/23. This section outlines the eight strategic directions and related objectives and strategies Council will work towards over the life of the four year plan to achieve the Whitehorse 2040 Community Vision.

Of the 63 actions listed for year two 2022/23 of the Council Plan 2021-2025, over 87% (55) were either completed or on track, and the remaining 13% (8) of actions were either closed or are being closely monitored. For actions that were reported as closed, this work has been redefined to meet current conditions or reallocated under another initiative and will be monitored through the department planning process.

SUPPORTING REPORT DETAILS

Legislative and Risk Implications

There is no longer a requirement under Act for Council to provide the community with 14 days’ notice that the Annual Report 2022/23 will be considered at a Council meeting.

Section 100 of the Local Government Act 2020 requires the Mayor to report on the implementation of the Council Plan by presenting the Annual Report at a meeting of Council open to Whitehorse community within 4 months of the financial year.

Equity, Inclusion, and Human Rights Considerations

In developing this report to Council, the subject matter has been considered in accordance with the requirements of the Charter of Human Rights and Responsibilities Act 2006.

It is considered that the subject matter does not raise any human rights issues.

Community Engagement

No community engagement was required for this report.

Financial and Resource Implications

An overview of Council’s financial performance is presented in the Annual Report 2022/23 in addition to Council’s audited financial statements for the year. There is a guide for the reader on how to understand the detailed financial report which includes audited financial statements. The financial position of Council is strong and the audit has been passed without qualification by the Victorian Auditor-General’s office.

Innovation and Continuous Improvement

The format of the Annual Report has undergone a continuous improvement review and has now been enhanced to provide a more community focused look and feel, including better arrangement of information within the document.

Collaboration

This report has been a cross-organisational collaboration effort, engaging multiple departments to ensure data integrity and that our community is well represented.

Conflict of Interest

Council officers involved in the preparation of this report have no conflict of interest in this matter.

Conclusion

The Annual Report fairly represents Council’s operations, financial position and the Council Plan 2021-2025 performance in respect of the 2022/23 financial year. The information presented satisfies all legislative requirements.

Upon endorsement, the Annual Report 2022/23 will be made available for viewing on Council’s website and Council’s customer service centres and libraries.

Attachment

1 2022/23 Annual Report

[1] Source: The Effect of the War in Ukraine on Global Activity and Inflation. May 27, 2022. Dario Caldara, Sarah Conlisk, Matteo Iacoviello, and Maddie Penn.

[2] Source: Rising inflation and macro-economic balance by Dinty Mather, Economic Policy for Parliament of Australia.

[3] The social, financial and economic costs of the 2022 South East Queensland Rainfall and Flooding Event. Queensland Reconstruction Authority, June 2022. Deloitte Access Economics.

Pre-Council Meeting Briefing 9 October 2023 – 6.30pm – 6.53pm
Matter/s Discussed: · Public Presentations · Public Questions · Council Agenda Items – 9 October 2023	Councillors Present	Officers Present
	Cr Lane (Mayor & Chair)	S McMillan
	Cr Barker	S Cann
	Cr Carr	S White
	Cr Davenport	J Green
	Cr Liu	V Ferlaino
	Cr Massoud	K Woods
	Cr McNeill	G Petrakis
	Cr Munroe	T Jenvey
	Cr Skilbeck	I Wang
	Cr Stennett
	Apology
	Cr Cutts (Deputy Mayor)
Others Present N/A
Disclosures of Conflict of Interest N/A
Councillor /Officer attendance following disclosure N/A

Councillor Briefing 16 October 2023 – 6.30pm – 10.15pm
Transformation Expo at The Round Matter/s Discussed: 1. Suburban Rail Loop – Precincts Discussion paper 2. Whitehorse Manningham Library Corporation – update on future governance model exploration 3. Harrow Street & Watts Street Car Parks 4. Draft Council Agenda – 23 October 2023	Councillors Present	Officers Present
	Cr Lane	S McMillan	L Morris
	Cr Lane	S Cann	S Day
	Cr Cutts	J Green
	Cr Cutts	L Letic
	Cr Barker	S Sullivan
	Cr Carr	S White
	Cr Davenport	V Ferlaino
	Cr Liu	K Woods
	Cr Massoud	T Peak
	Cr McNeill	I Kostopoulos
	Cr Munroe	A DaCampo
	Cr Skilbeck	A Egan
	Cr Stennett	L McGuinness
Others Present Item 2: Craig Kenny and Cameron McKern, Mach2 Consultants
Disclosures of Conflict of Interest N/A
Councillor /Officer attendance following disclosure N/A

Councillor	Item scheduled	Date
Cr Barker	No report
Cr Carr	· The Round – opening night · Spring Festival	13 October 2023 15 October 2023
Cr Cutts	· Eastern Region Group of Councils	20 October 2023
Cr Davenport	· Whitehorse Manningham Regional Library Corp	18 October 2023
Cr Lane	· Eastern Region Group of Councils – pre meeting · Victorian Senior of the year awards · 2023 Sports Awards presentation evening · Municipal Association of Victoria – Annual Conference & Dinner · The Round – opening night · Spring Festival · Gambling Harm Awareness Week Reform – webinar · Eastern Region Group of Councils	10 October 2023 11 October 2023 11 October 2023 12 October 2023 13 October 2023 15 October 2023 18 October 2023 20 October 2023
Cr Liu	· Municipal Association of Victoria, Annual Dinner including Councillor Service Awards	12 October 2023

Cr Massoud	· Municipal Association of Victoria, Conference & Dinner · Kooyongkoot Alliance AGM · Gambling Harm Awareness Week reform – webinar · VLGA Tackling Victoria’s Housing Crisis – webinar · Wandinong Sanctuary 50^th Anniversary	12 October 2023 17 October 2023 18 October 2023 20 October 2023 21 October 2023
Cr McNeill	· Gambling Harm Awareness week reform - webinar · VLGA Tackling Victoria’s Housing Crisis – webinar	18 October 2023 20 October 2023
Cr Munroe	· Municipal Association of Victoria, State Council Meeting · Gambling Harm Awareness week reform - webinar · Wandinong Sanctuary 50^th Anniversary	13 October 2023 18 October 2023 21 October 2023
Cr Skilbeck	· Whitehorse Manningham Regional Library Corp	18 October 2023
Cr Stennett	No report