7 March 2007

 

Dear Councillor,

In pursuance of the provisions of the Local Government Act, 1993 and the Regulations thereunder, notice is hereby given that a POLICY REVIEW COMMITTEE MEETING of Penrith City Council is to be held in the Passadena Room, Civic Centre, 601 High Street, Penrith on Monday 12 March 2007 at 7:30pm.

Attention is directed to the statement accompanying this notice of the business proposed to be transacted at the meeting.

Yours Faithfully

 

 

Alan Travers

General Manager

 

BUSINESS

 

1.           APOLOGIES

 

2.           LEAVE OF ABSENCE

 

3.           CONFIRMATION OF MINUTES

Policy Review Committee Meeting - 19 February 2007.

 

4.           DECLARATIONS OF INTEREST

Pecuniary Interest (The Act requires Councillors who declare a pecuniary interest in an item to leave the meeting during discussion of that item)

Non-Pecuniary Interest

 

5.           ADDRESSING THE MEETING

 

6.           MAYORAL MINUTES

 

7.           NOTICES OF MOTION

 

8.           ADOPTION OF REPORTS AND RECOMMENDATION OF COMMITTEES

 

9.           MASTER PROGRAM REPORTS

 

10.         URGENT REPORTS (to be dealt with in the master program to which the item relates)

 

11.         QUESTIONS WITHOUT NOTICE

 

12.         COMMITTEE OF THE WHOLE


POLICY REVIEW COMMITTEE MEETING

 

Monday 12 March 2007

 

table of contents

 

 

 

 

 

 

meeting calendar

 

 

confirmation of minutes

 

 

master program reports

 


 

 

 

 

 

 

 

MEETING CALENDAR

February 2007 - December 2007

 

 

TIME

FEB

MAR

APRIL

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

Mon

Mon

Mon

Mon

Mon

Mon

Mon

Mon

Mon

Mon

Mon

Ordinary Meetings

7.30 pm

12

5

 

 

 

2

 

3ü

 

 

 

 

26

23

14v

18*

23

13

24^

29

19

10

Policy Review Committee

7.30 pm

 

12

2@

 

4

9

 

10

 

 

3

19#+

 

30

21#

 

30

20#+

 

8@

5#

 

 

#    Meetings at which the Management Plan ¼ly  reviews are presented.

^     Election of Mayor/Deputy Mayor [only business]

#+  General Manager’s presentation – half year and end of year review

@   Strategic Program progress reports [only business]

v   Meeting at which the Draft Management Plan is adopted for exhibition

ü    Meeting at which the 2006/2007 Annual Statements are presented

*     Meeting at which the Management Plan for 2007/2008 is adopted

 

 

-                 Council’s Ordinary Meetings are held on a three-week cycle where practicable.

-                 Extraordinary Meetings are held as required.

-                 Policy Review Meetings are held on a three-week cycle where practicable.

-                 Members of the public are invited to observe meetings of the Council (Ordinary and Policy Review Committee).  All meetings start at 7:30pm.

-                 Should you wish to address Council, please contact the Public Officer, Glenn McCarthy on 47327649


 

 

 

 

 

 

 

 


UNCONFIRMED MINUTES

 OF THE POLICY REVIEW COMMITTEE MEETING OF PENRITH CITY COUNCIL HELD IN THE PASSADENA ROOM, PENRITH

ON MONDAY 19 FEBRUARY 2007 AT 7:37PM

PRESENT

His Worship the Mayor Councillor Pat Sheehy AM, Councillors Jim Aitken OAM, Kaylene Allison, David Bradbury (arrived 7:54pm), Lexie Cettolin, Kevin Crameri OAM, Greg Davies (arrived 7:39pm), Ross Fowler, Jackie Greenow, Karen McKeown, Steve Simat (arrived 7:46pm), and John Thain.

 

APOLOGIES

PRC 1  RESOLVED on the MOTION of Councillor Jackie Greenow seconded Councillor Karen McKeown that apologies be accepted for Councillors David Bradbury, Greg Davies, Mark Davies, Susan Page and Steve Simat.

 

LEAVE OF ABSENCE

Leave of Absence was previously granted to Councillor Garry Rumble for the period 15 February 2007 to 23 February 2007 inclusive.

CONFIRMATION OF MINUTES - Policy Review Committee Meeting - 13 November 2006

PRC 2  RESOLVED on the MOTION of Councillor Ross Fowler seconded Councillor Kaylene Allison that the minutes of the Policy Review Committee Meeting of 13 November 2006 be confirmed.

 

DECLARATIONS OF INTEREST

There were no declarations of interest.

  

MASTER PROGRAM REPORTS

 

Leadership and Organisation

 

Councillor Greg Davies arrived at the meeting, the time being 7:39pm.

 

Councillor Steve Simat arrived at the meeting, the time being 7:46pm.

 

Councillor David Bradbury arrived at the meeting, the time being 7:54pm.

 

Councillor Jim Aitken left the meeting, the time being 8:27pm.

 

Councillor Kevin Crameri left the meeting, the time being 8:36pm.

 

Councillor Jim Aitken returned to the meeting, the time being 8:38pm.

 

Councillor Kevin Crameri returned to the meeting, the time being 8:42pm.

 

Councillor Greg Davies left the meeting, the time being 8:56pm.

 

1        2006-2007 Management Plan - December Quarter Review                                            

PRC 3  RESOLVED on the MOTION of Councillor Kevin Crameri OAM seconded Councillor Steve Simat

That:

1.     The information contained in the report on 2006-2007 Management Plan - December Quarter Review be received

2.     The 2006-2007 Management Plan Review as at 31 December 2006, including the revised estimates identified in the recommended budget, be adopted

3.     The proposed budget reallocations and amendments to tasks detailed in the report be adopted.

 

 

The City as a Social Place

 

Councillor Steve Simat left the meeting, the time being 9:00pm.

 

Councillor Greg Davies returned to the meeting, the time being 9:02pm.

 

Councillor Steve Simat returned to the meeting, the time being 9:18pm.

 

Councillor Jim Aitken left the meeting, the time being 9:23pm.

 

Councillor Jim Aitken returned to the meeting, the time being 9:24pm.

 

2        University of Western Sydney - Contemporary Arts and Performance Programs and Broader Issues                                                                                                                                  

PRC 4  RESOLVED on the MOTION of Councillor Greg Davies seconded Councillor Karen McKeown

That:

1.      The information contained in the report on University of Western Sydney - Contemporary Arts and Performance Programs and Broader Issues be received

2.      An investigation be carried out into the formation of a Working Party of local Arts representatives and related organisations to determine the needs of the local area and appropriate lobbying actions.

 

3        Urban Release Areas - Status Report                                                                              

PRC 5  RESOLVED on the MOTION of Councillor Ross Fowler seconded Councillor Greg Davies

That:

1.       The information contained in the report on Urban Release Areas - Status Report be received

2.       Council agree to participate in the National Growth Area Alliance and that a contribution of $10,000 be made available from existing allocated funds for the project.

 

Councillor John Thain left the meeting, the time being 9:34pm.

 

Councillor John Thain returned to the meeting, the time being 9:36pm.

 

The City In Its Environment

 

Councillor David Bradbury left the meeting, the time being 9:39pm.

 

4        Creation of an Urban Design Review Panel                                                                     

PRC 6  RESOLVED on the MOTION of Councillor Ross Fowler seconded Councillor Jim Aitken OAM

That:

1.     The information contained in the report on Creation of an Urban Design Review Panel be received

2.     A further report be brought to the Development Regulation Working Party containing more detail on this matter.

 

 

Leadership and Organisation

 

Councillor David Bradbury returned to the meeting, the time being 9:49pm.

 

5        Local Government Directions Papers                                                                               

PRC 7  RESOLVED on the MOTION of Councillor Greg Davies seconded Councillor Ross Fowler

That:

1.     The information contained in the report on Local Government Directions Papers  be received

2.     A submission be made on these papers in the terms discussed in the report.

 

6        Service Specification Program                                                                                           

PRC 8  RESOLVED on the MOTION of Councillor Greg Davies seconded Councillor Ross Fowler

That:

1.     The information contained in the report on the Service Specification Program be received.

2.     The specification for the Planning Places Service be adopted.

3.     The specification for the Release Area Planning Service be adopted.

4.     The specification for the Planning Policy Service be adopted.

5.     The specification for the Metropolitan and Regional Planning and Advocacy Service be adopted.

 

7        Draft Policy on the Payment of Expenses and Provision of Facilities to Mayor, Deputy Mayor and Councillors                                                                                                       

PRC 9  RESOLVED on the MOTION of Councillor Ross Fowler seconded Councillor Steve Simat

That:

1.     The information contained in the report on Draft Policy on the Payment of Expenses and Provision of Facilities to Mayor, Deputy Mayor and Councillors be received

2.     The Draft Policy on the Payment of Expenses and Provision of Facilities to Mayor, Deputy Mayor and Councillors be adopted and submitted to the Department of Local Government.

 

8        2007 Local Government Remuneration Tribunal Review                                                

PRC 10  RESOLVED on the MOTION of Councillor Ross Fowler seconded Councillor Kaylene Allison

That:

1.     The information contained in the report on 2007 Local Government Remuneration Tribunal Review be received

2.     A submission be made to the Local Government Remuneration Tribunal supporting the Local Government and Shires Association of NSW submission on the review of fees payable to Mayors and Councillors.

 

There being no further business the Chairperson declared the meeting closed the time being 9:53pm.

    


 

Item                                                                                                                                       Page

 

 

The City as a Social Place

 

1        Joan Sutherland Performing Arts Centre (JSPAC) - 2006/07 Operating Subsidy

  

The City as an Economy

 

2        Penrith Valley Economic Development Corporation Six Monthly Report - July 2006 to December 2006

  

Leadership and Organisation

 

3        Investment Policy

 

4        Salary Packaging

 

5        Service Specification Program 

 

 


 

 

 

 

THIS PAGE HAS BEEN LEFT BLANK  INTENTIONALLY


 

 

The City in its Broader Context

 

 

There were no reports under this Master Program when the Business Paper was compiled


 

 

 

 

THIS PAGE HAS BEEN LEFT BLANK  INTENTIONALLY


The City as a Social Place

 

Item                                                                                                                                       Page

 

1        Joan Sutherland Performing Arts Centre (JSPAC) - 2006/07 Operating Subsidy

 

 



Policy Review Committee Meeting

12 March 2007

The City as a Social Place

 

 

The City as a Social Place

 

 

1

Joan Sutherland Performing Arts Centre (JSPAC) - 2006/07 Operating Subsidy   

 

Compiled by:                Gary Dean, Facilities Operations Manager

Authorised by:             Steve Hackett, Director - City Services; Barry Husking, Chief Financial Officer 

Strategic Program Term Achievement: The cultural assets of the City have been integrated to establish its reputation as a creative place.

Critical Action: Further integrate the City’s principal cultural facilities to maximise community benefit.

     

Purpose:

To advise Council of the request from the Joan Sutherland Performing Arts Centre for the payment of an additional $200,000 Operating Subsidy from Council's 2006/07 budget.  The report recommends that the funds be released to the Centre.

 

Background

Since the JSPAC was opened in 1990, Council has been providing an annual operating subsidy to the Centre.  Initially, this subsidy was $100,000, and continued at that amount until the Centre took over the venue management responsibilities of the Q Theatre (Belmore Street, Penrith) six (6) years ago, when that subsidy was increased to $300,000 per annum.

 

As part of the JSPAC Extensions Project, Council engaged ‘Positive Solutions’, a consultancy group with considerable knowledge and experience in the operations of performing arts centres, to prepare a Business Plan that would reflect the expanded Centre operations over some years.  The Plan covered both the interim (transition period) and longer term phases of the expanded JSPAC operations.  The work that was undertaken by the consultant was supervised and reviewed by the Council/JSPAC Change Management Committee.

 

One of the specific aims of that Business Plan was to identify the level of subsidy that would need to be provided by Council to the expanded facility over time.  The subsidy that the Business Plan recommended was considerably higher than that which Council was providing.  What was clear from that Business Plan was that the level of Council’s financial support ultimately becomes an investment for a particular cultural outcome for the region.  This can be demonstrated in the case of Council’s longstanding support to the Penrith Regional Gallery and Lewers Bequest.

 

The outcomes of the work undertaken by ‘Positive  Solutions’ were advised to Council prior to Council proceeding to the tender phase of the Joan Sutherland Extensions Project.  Council accepted that an increase in its subsidy was required as a consequence of the expansion of the JSPAC.

 

Council’s 2004/05 budget made provision for the ‘transition’ year – an additional $200,000 being set aside in the budget to be paid to the JSPAC upon evidence of additional costs during the ‘start-up’ year.

 

In early 2005, the Chairman of the JSPAC Board wrote to Council seeking payment of that additional subsidy.  That request was supported by evidence justifying that additional subsidy.  Council subsequently agreed to the payment of that $200,000 to the JSPAC.

 

Council’s 2005/06 budget included a notional $500,000 subsidy.  This comprised the “accepted” base of  $300,000, together with an “additional” $200,000, which was set aside and payable upon submission of a satisfactory business case and the approval of Council.

 

Earlier last year, the Chief Executive Officer at the JSPAC wrote to Council seeking the additional subsidy.  The request was supported by the Centre’s Business Plan, which had been endorsed by the Board.

 

Council considered that request at its meeting on 3 April 2006, and resolved to provide the JSPAC with an additional $200,000, such funds being set aside in the 2005/06 Council budget.

 

The JSPAC Business Plans for 2004/05 and 2005/06 demonstrated what the ‘base-line’ annual subsidy would be.

 

The development of Council’s 2006/07 Management Plan followed the normal practice of Councillor Briefings and Workshops.  Council officers alerted Councillors at those meetings to the likelihood of a request from the JSPAC Board for an ‘additional’ $200,000.  A comprehensive Business Plan was being prepared by the JSPAC and, following review by Council officers, a further report would be provided to Council.  At the April Management Plan Workshop, it was recommended that provision be made in the 2006/07 budget for an additional $200,000 operating subsidy for the JSPAC.

 

Council’s 2006/07 budget includes that ‘additional’ $200,000.

 

Current Situation

·    Operating Subsidy

The 2006/07 Operating Subsidy of $500,000 was provided to the JSPAC in the early part of the current management plan year.

 

The following letter (as part of a detailed submission) was received from the Chief Executive Officer at the JSPAC late last year.

 

“… this correspondence acts as a formal request on behalf of the Board of Management of  the Joan Sutherland Performing Arts Centre to Penrith City Council to increase the Centre’s 2006–07 Annual Subsidy to $700,000.

 

This request is premised on the completion of the 2006-07 Business Plan (see attached) that includes a range of new strategic initiatives (see attached) which will underpin the further development of the Centre (with particular focus on audience development and related income generation).  It should be noted that both the Business Plan and New Initiatives as proposed have been approved by the Board.

 

Therefore, it is the Board’s request that following consideration of the attached Business Plan that Council releases the $700,000 of subsidy monies to the Centre for the upcoming financial year, such subsidy having been included in Council’s 2006-07 budget…”.

 

·   JSPAC Extensions Project

 

Council will be aware that the major extensions to the Centre were jointly funded by the NSW Government and Council.  The JSPAC Board also set aside a contribution which formed part of the extensions funding model – that amount being $304,000 (excluding GST).

 

Following the completion of the extensions, discussions have been held with the JSPAC Board Chairman regarding payment of those funds.  Initially it was intended to seek Council’s support to those funds being directed to further agreed capital improvements at the Centre.  More recently, in discussions with those same representatives it has been agreed that those funds be paid to Council at nominated times.  It is proposed that an amount of $154,000 (excluding GST) be paid by 30 April 2007 with the balance on 30 September 2007.

 

Financial Services Manager’s Comment

 

Council’s 2006-07 Management Plan contains an amount of $700,000 as an operating subsidy for the JSPAC.   As indicated earlier in this report $200,000 of this subsidy is being held pending receipt of a business plan from the JSPAC. This business plan has now been received and identifies a number of strategic initiatives necessary for the development of the centre; it also requests the release of the additional $200,000.  The request is supported by the work done by ‘Positive Solutions’ when the recent extensions to the JSPAC were being considered.

 

A number of organisations utilise facilities at the JSPAC at a discounted rate because of the ‘community’ nature of the organisation. JSPAC is effectively providing a community service subsidy by not charging these organisations a commercial rate.  The value of this subsidy for the 2006-07 financial year is estimated as $109,000.  Were JSPAC not to provide this discounted utilisation one of two things would likely occur.  Either the organisations would not use the facility or they would request Council provide a direct subsidy to enable them to continue their use.

 

The business plan submitted by Penrith Performing and Visual Arts Ltd (PPVA) which includes both the JSPAC and Penrith Regional Gallery & Lewers Bequest substantiated the need for a subsidy of $700,000 especially in light of the ‘community service subsidies’.  The business plan, a financial summary of which is attached to this report, shows the JSPAC with an anticipated deficit after ‘community service subsidy’ in 2006-2007 and small surpluses for 2007-2008 to 2009-2010 and presents some of the key performance indicators for the centre for the same period.  The combining of both centres under one administration should provide an opportunity for economies of scale in future years. 

 

Council’s Chief Financial Officer and General Manager met with the Chief Executive Officer, Chairman of the Finance Committee and Chairman of the PPVA to discuss the request together with a number of long standing financial issues discussed elsewhere in this report.  Agreement has been reached for the PPVA to repay Council $304,000 (excluding GST) outstanding from the building extensions project over a staged repayment schedule and it was agreed to recommend that Council release the additional $200,000 setting the ‘baseline subsidy at $700,000 and index Council’s subsidy each year by the Consumer Price Index.  The PPVA business plan has been prepared and submitted in line with this agreement. Councils draft 2007-2008 Budget has also been prepared with this agreement.

 

Conclusion

Council has, since the opening of the JSPAC, been providing financial support to the Centre by way of an annual operating subsidy.  The initial subsidy in 1990 has increased over time as circumstances have changed.  The major extensions completed last year have resulted in increased operating costs, a situation acknowledged by Council before the extensions commenced.  The extent by which the Council subsidy would increase initially was demonstrated by the specialist report commissioned by Council prior to the extensions project. 

 

The Financial Services Manager refers to the ‘community services subsidy’ being provided by the JSPAC to a range of community groups.  The ‘shortfall’ in charges to those community groups is being met through Council’s subsidy to the JSPAC.  As a further element that Council’s annual subsidy is providing a ‘community service’ it has been agreed between Council’s Chief Financial Officer and General Manager and the Chief Executive Officer of the JSPAC and two Board members, that Council would receive allocation of tickets to events at the Centre, which would be distributed by Council to community organisations etc across our LGA as an audience development initiative.  In addition, Council would be provided with ‘free’ agreed access to meeting space within the Centre for Council’s (or community) use.  Details of these arrangements need to be developed with the Centre’s management.

 

The JSPAC 2006/07 Business Plan identifies the need for an increased subsidy from Council, in order for the Centre to implement a range of new initiatives that are outlined in that Business Plan.

 

Council officers are satisfied that the Business Plan presented by the JSPAC supports the request for the additional subsidy from Council.

 

Notwithstanding Council’s recent decision to merge the existing Boards (and functions) of the JSPAC and Gallery, the level of financial support requested from Council remains.  Through the ‘transition’ period of the merger, Council officers have been working with the management of both the cultural facilities to identify preferred organisational structures and any efficiencies that arise from that action.

 

What this submission from the JSPAC, and Council’s review of that documentation demonstrates, is that the ‘baseline’ subsidy for the Centre is $700,000.  Council’s draft 2007/08 budget includes this level of funding, plus an estimated CPI increase taking the total draft budget subsidy to $721,000. 

 

Commencing with next year’s budget, it is intended that the subsidy be paid in two instalments namely July and January.  Also, it will be necessary that the JSPAC submit six monthly financial reports for review by Council, the timing of which should align with Council’s budget and end of year reporting program.

 

 

RECOMMENDATION

That:

1.     The information contained in the report on Joan Sutherland Performing Arts Centre (JSPAC) - 2006/07 Operating Subsidy be received.

2.     Council agree to provide the Joan Sutherland Performing Arts Centre an additional $200,000, such funds being set aside in the 2006/07 budget.

3.     The annual subsidy of $700,000 (2006/07) be increased by CPI in future years.

4.     The subsidy be paid in two instalments (July and January) and that six monthly financial reports be submitted to Council for review.

 

 

ATTACHMENTS/APPENDICES

1. View

JSPAC Finance Dept Summary of Business Plan Proposal

1 Page

Appendix

2. View

JSPAC Finance KPI

1 Page

Appendix

 


Policy Review Committee Meeting

12 March 2007

Appendix 1 - JSPAC Finance Dept Summary of Business Plan Proposal

 

 

 

 


Policy Review Committee Meeting

12 March 2007

Appendix 2 - JSPAC Finance KPI

 

 

 

 

 


 

 

 

 

THIS PAGE HAS BEEN LEFT BLANK  INTENTIONALLY


 

 

The City In Its Environment

 

 

There were no reports under this Master Program when the Business Paper was compiled


 

 

 

 

THIS PAGE HAS BEEN LEFT BLANK  INTENTIONALLY


The City as an Economy

 

Item                                                                                                                                       Page

 

2        Penrith Valley Economic Development Corporation Six Monthly Report - July 2006 to December 2006

 

 



Policy Review Committee Meeting

12 March 2007

The City as an Economy

 

 

The City as an Economy

 

 

2

Penrith Valley Economic Development Corporation Six Monthly Report - July 2006 to December 2006   

 

Compiled by:                Bijai Kumar, Local Economic Development Program Manager

Authorised by:             Bijai Kumar, Local Economic Development Program Manager   

Strategic Program Term Achievement: The City’s business community, learning institutions and training institutions are working in an integrated way to strengthen and develop the City’s local economic base.

Critical Action: Support PVEDC in the development of the City's enterprises and self-supporting business networks

 

Presenters:                   Jane Holdsworth - PVEDC - Six monthly report    

Purpose:

To inform Council of the activities of the Penrith Valley Economic Development Corporation for the period July 2006 - December 2006.  The report recommends that the information be received.

 

Background

The Penrith Valley Economic Development Corporation [PVEDC] has provided its six monthly report to December 2006 and a full copy of the report has been provided as an Attachment. It also contains a copy of the Corporation’s financial report for the year ended to 30 June 2006.

 

While the Corporation’s CEO will provide a brief outline of the achievements of the PVEDC and its future strategic direction and programs, some of the key highlights are provided below:

 

·    Three “Exporters- Tricks of the Trade” workshops were held in October and a similar program is being planned for importers

·    A Western Sydney IT STARGATE workshop was organised to address the needs of local businesses in the area of technology

·    Joint venture between TAFE and Telstra Countrywide to secure 400 free E-business courses through federal funding for local businesses

·    Three CEOs dinners and a  Federal budget breakfast were organised

·    The new Visitors Information Centre was officially launched in September

·    Facilitation of the Western Sydney Advisory Services with consultants now providing services beyond Penrith

·    Continued support provided to the “Smart City Transport” concept designed to develop a dedicated local transport system

 

Some key activities for the next six months to June 2007 are also listed below:

 

·    Progress the “Moving business Online” project jointly with UWS

·    A further two CEO dinners and Federal budget breakfast will be organised

·    A 25 year recognition dinner will be organised

·    Two “Importers- Tricks of the Trade” workshops are planned

·    Facilitation of the Western Sydney Advisory Services will continue

 

Current Situation

 

Council has endorsed funding for the Corporation in the amount of $260,622 for the 2006-07 financial year, with an additional $22,500 approved as part of the September 2006 financial review to fund a number of priority projects for which PVEDC had sought further funding. The projects were as follows:

 

·    PVEDC website maintenance and development            $  2,500

·    Moving Business Online                                                        $10,000

·    Satellite Surveys                                                          $10,000

Total                     $22,500

 

The Corporation was also requested to provide a detailed submission supporting additional recurrent funding to be considered as part of Council’s 2007-08 budget process and that the submission include plans for generating external sources of income. Such a submission has been received and is being considered as part of the 2007-08 budget process and in further consultation with the Corporation.

 

 

RECOMMENDATION

That the information contained in the report on Penrith Valley Economic Development Corporation Six Monthly Report - July 2006 to December 2006 be received.

 

ATTACHMENTS/APPENDICES

1.  

Penrith Valley Economic Development Corporation Progress Report for the six months July 2006 to December 2006

11 Pages

Attachment

2.  

Penrith Valley Economic Development Corporation Annual Report and Audit Report 1 July 2005 to 30 June 2006

34 Pages

Attachment

  


 

 

The City Supported by Infrastructure

 

 

There were no reports under this Master Program when the Business Paper was compiled


 

 

 

 

THIS PAGE HAS BEEN LEFT BLANK  INTENTIONALLY


Leadership and Organisation

 

Item                                                                                                                                       Page

 

3        Investment Policy

 

4        Salary Packaging

 

5        Service Specification Program 

 

 



Policy Review Committee Meeting

12 March 2007

Leadership and Organisation

 

 

Leadership and Organisation

 

 

3

Investment Policy   

 

Compiled by:                Pauline Johnston, Expenditure Accountant

Authorised by:             Vicki O’Kelly, Financial Services Manager   

Strategic Program Term Achievement: Council provides adequate resources to deliver its program and has introduced measures to increase its capacity.

Critical Action: Maximise funding opportunities to deliver Council’s program.

 

Presenters:                   Erik Gates and Brian Lamarre - Oakvale Capital - Investment Products    

Purpose:

To advise Council that it is recommended that a minor amendment be made to the current Council Investment Policy adopted in June 2005.  It is considered appropriate to amend one table to specify an additional asset class in which Council's surplus funds may be invested.  The report recommends the inclusion of a small portion of collateralised debt obligations (CDOs) in Council’s Investment Portfolio.  The underlying structure of CDOs will be explained in a brief presentation by representatives of Oakvale Capital.

 

Background

Council’s Investment Policy allows surplus funds to be invested in a wide range of securities and contains specific parameters to ensure a balanced and diversified portfolio.  Diversification reduces risk by spreading investments across the multiple financial institutions and asset classes which comply with the Policy’s credit-rating requirements.

 

Council’s investment advisors, Oakvale Capital regularly seek out and recommend new investment opportunities within the parameters of the Policy, which can maximise earnings on Council’s portfolio. On their advice, half the portfolio is held in Floating Rate Notes (FRNs), mortgage-backed securities and various managed funds.  The balance remains in traditional bank bills and term deposits.

 

Among other relatively new-style securities released on to the markets in recent years are Collateralised Debt Obligations (CDOs). A typical CDO consists of a pool of assets repackaged into a single, fixed term, high yield security.  Although these securities are quite complex, each issue is given a credit rating by Standard and Poors. Most managed funds incorporate a small investment in CDOs and many Councils, including Wollongong and Liverpool, have included them in their portfolios for the past few years.

 

Council has not, to date, invested directly in a CDO although they are within Policy parameters and the margin earned on CDOs is usually higher than other investments. Incorporating a small portion of CDOs in the portfolio will improve its earning potential, whilst maintaining low risk.

Current situation

In accordance with the current investment strategy, Oakvale have recommended an allocation, to a maximum of 15% of the portfolio, into highly rated (‘A’ or better) and well subordinated CDOs.  They will continue to monitor the market and advise when a CDO suiting Council’s risk parameters is released.

 

It is proposed to update table 13 of the current Investment Policy to include the CDO asset class before Council acts on Oakvale’s recommendation.

 

This matter was discussed at the Finance Working Party on 26 February 2007, and the following amendment was recommended.

Existing Policy                                                                      

 

Portfolio mix

Direct

Managed Funds

 

Institutions

Australian Cash & Fixed Interest

Max % with a single issuer

Max % of a single Managed Fund

S & P Rated AA- (very strong capacity to pay) or better

100

25

25

S & P Rated A+ and A (strong capacity to pay)

100

20

20

LGFS (S&P Rated A  long term, A-1 short term) LGFS Ethical Facility

20

20

20

Building Societies (holding S&P Investment grade rating as a minimum)

20

20

20

Variations to existing policy

It is proposed to replace the table in section 13 titled Investment Portfolio Parameters -Diversification/Credit Risk- (above) with the following table.

                                                                                     

 

Portfolio mix

Direct

Managed Funds

CDOs *

 

Institutions

Australian Cash & Fixed Interest

Max % with a single issuer

Max % of a single Managed Fund

Max % as a total of the portfolio *

S & P Rated AA- (very strong capacity to pay) or better

100

25

25

15*

S & P Rated A+ and A (strong capacity to pay)

100

20

20

15*

LGFS (S&P Rated A  long term, A-1 short term) LGFS Ethical Facility

20

20

20

N/A*

Building Societies (holding S&P Investment grade rating as a minimum)

20

20

20

N/A*

*  Proposed changes


 

RECOMMENDATION

That:

1.     The information contained in the report on Investment Policy be received

2.     Council adopt the proposed changes to the Investment Policy.

 

 

ATTACHMENTS/APPENDICES

There are no attachments for this report.


Policy Review Committee Meeting

12 March 2007

Leadership and Organisation

 

 

Leadership and Organisation

 

4

Salary Packaging   

 

Compiled by:                Andrew Moore, Financial Accountant

Authorised by:             Vicki O’Kelly, Financial Services Manager   

Strategic Program Term Achievement: Council values its staff and its workforce culture is adaptable, harmonious, flexible and conducive to high levels of innovation, empowerment, motivation and productivity.

Critical Action: Develop policies and industrial instruments to enable Council’s workforce and workplace strategy to be implemented.

      

Purpose:

To advise Council  that it is considered appropriate to update the current Salary Packaging Policy which was adopted in February 2006.  The report recommends updating the list of benefits offered to allow for the inclusion of new benefits as they become available.

 

Background

Council implemented a new Salary Packaging Policy and program from 1 April 2006.  Both the new policy and program have been very successful and are currently being used as a basis for other Councils looking to implement innovative programs.    Since the programs introduction nearly 12 months ago 87 employees have begun packaging a total of 115 benefits.  These include 41 laptops, which excluding Superannuation (44) has been the most popular benefit, through to a novated lease and a membership to RIPPLES. 

 

Currently Council’s Salary Packaging Policy contains a defined list of benefits that can be offered to employees through Salary Packaging.  It is proposed that the Policy be amended to enable Council to offer new benefits as soon as they become available or are identified.

Current situation

Section 5 of the policy, which identifies those benefits that can be offered, currently states:

 

Penrith City Council will offer Salary Packaging arrangements for the following benefits:

·    Childcare at Council provided Centres;

·    Additional superannuation;

·    Professional memberships;

·    Laptop (Notebook) computer / personal digital assistant (PDA);

·    Additional salary to be paid at retirement;

·    Additional payments for maternity / study leave;

·    Memberships and annual fees at Ripples, Penrith Swimming Centre, WhiteWater Stadium and Joan Sutherland Performing Arts Centre;

·    Independent Financial advice;

·    Council Motor Vehicle;

·    Novated vehicle lease; and

 

It is proposed that this section be updated as below to include other benefits as they become available.

Penrith City Council will offer Salary Packaging arrangements for the following benefits:

·    Childcare at Council provided Centres;

·    Additional superannuation;

·    Professional memberships;

·    Laptop (Notebook) computer / personal digital assistant (PDA);

·    Additional salary to be paid at retirement;

·    Additional payments for maternity / study leave;

·    Memberships and annual fees at Ripples, Penrith Swimming Centre, WhiteWater Stadium and Joan Sutherland Performing Arts Centre;

·    Independent Financial advice;

·    Council Motor Vehicle;

·    Novated vehicle lease; and

·    Other benefits as they become available

 

The amendment of the policy in this way will enable Council to immediately offer and or trial new benefits to Council employees as they are identified and become available.

 

Currently the Salary Packaging Team is investigating the possibility of implementing sustenance as a benefit.  This is a benefit that is being offered throughout the public and private sectors and has even spawned a new industry aimed at providing this benefit in compliance with Fringe Benefits Tax legislation.  Sustenance, as a benefit, may be able to be offered to employees allowing them to salary package items including lunch and morning tea when consumed on any of Council’s business premises and purchased through Council’s catering provider.

 

It is proposed that as items are implemented on a permanent basis that the policy would be updated to have the benefit listed in the policy.

Conclusion

Salary Packaging is increasingly becoming an indicator of an employer of choice.  It allows employees to structure remuneration in the way that best suits their needs and personal circumstances.

 

The recruitment and retention of skilled staff is a challenge that Penrith City Council is currently facing and will continue to face in the future.  The continuous enhancement of a comprehensive and innovative salary packaging program is an essential tool in distinguishing Penrith City Council in the employment marketplace as it makes claim as an employer of choice.

 

RECOMMENDATION

That:

1.     The information contained in the report on Salary Packaging be received

2.     Council adopt the proposed changes to the Salary Packaging Policy

 

ATTACHMENTS/APPENDICES

1. View

Proposed amended Salary Packaging Policy

6 Pages

Appendix

 


Policy Review Committee Meeting

12 March 2007

Appendix 1 - Proposed amended Salary Packaging Policy

 

 

 






 


Policy Review Committee Meeting

12 March 2007

Leadership and Organisation

 

 

Leadership and Organisation

 

 

5

Service Specification Program   

 

Compiled by:                Michael Rudd, Services Development Officer

Authorised by:             Ross Kingsley, Corporate Development Manager   

Strategic Program Term Achievement: Services and programs that Council provides are determined based on equity, customer requirements, community benefits and best value.

Critical Action: All services are provided to adopted service levels.

     

Purpose:

To provide Council with the draft Community Development Service Specification (Community Development Manager) for consideration. The report recommends that this service specification be adopted.

Given the size of this document,  a copy has been provided separately to Councillors. Additional copies of  this document can be obtained on request.

 

Background

Council established the Service Specification Program in 2002-03 in order to:

1.   Comprehensively analyse and document all services and the present level of service provided (stage 1 of the Program)

2.   Enable Council in a fully informed manner to review and where appropriate adjust service levels to better meet the needs of the community and align to Council’s strategy (stage 2).

 

Documentation of Council’s external and internal services began four years ago, with significant benefits to the efficient and effective management of the organisation. To date, 53 Service Specifications have been formally adopted, with an additional specification presented tonight for Council’s consideration. A further body of specifications will be progressively reported to Council, in coming months, in order to complete the stage 1 program within the current year.

 

Stage 2 of the program, Review and Adjustment of Service Levels, has already been undertaken by Council in selected key areas.  Important decisions have been taken by Council, flowing on from these reviews, which have been reflected in the 2005-2006 and 2006-2007 Management Plans.  A more comprehensive review of all service levels has now commenced, and further information on this will be brought to Council shortly, in the context of the next Management Plan and alignment of the organisation.

Assessment of Draft Service Specification

Prior to their reporting to Council, all draft specifications undergo a rigorous process of validation and assessment, leading to approval by the Corporate Management Team. The aim is to ensure that each specification accurately communicates the existing levels of service and activities that the service provides, in terms of quantity, quality and cost to Council.  Once adopted by Council, the specification will be used as the basis for testing service performance and for service review, including any changes to services levels, calls for additional resourcing, or for changes in priority setting within an existing service.

Summary of Key Information

Service Specifications are very detailed documents. By policy, full documentation is provided, under separate cover, to all Councillors, and is available to the public on request. To assist in Council’s consideration of the draft specification submitted tonight, an executive summary is provided as an appendix to this report.

This summary contains:

1.   Service Description

2.   Link to Strategic Program

3.   Service Objectives

4.   Scope of Work

5.   Key Performance Indicators

6.   Service Funding

7.   Service Summary Chart.

 

 

RECOMMENDATION

That:

1.     The information contained in the report on the Service Specification Program be received

2.     The specification for the Community Development Service be adopted.

 

ATTACHMENTS/APPENDICES

1. View

Executive Summary Community Development

4 Pages

Appendix

 


Policy Review Committee Meeting

12 March 2007

Appendix 1 - Executive Summary Community Development

 

 

 

Appendix 1 – Executive Summary for the Community Development Service

 

Summary of the Community Development Service

1. Service Description

 

The Community Development service identifies the City’s priority social issues and needs, and with its government and community partners develops strategies to respond to these issues and needs, according to Council’s strategic objectives.

 

It provides key community development and social planning research, analysis and advice to Council’s decision makers and other levels of government. This service is responsible for providing leadership to Council and City in facilitating access and equity outcomes for its residents.

 

The Community Development service delivers a range of programs and activities that support cohesive and sustainable communities.

 

 

Issues

Term Achievements

Critical Actions

 

2. Link to Strategic Program

Issue 5:

Access to and Equity of Services

TA 5.1 -  A plan as a component of Council’s overarching agreement with Government is in place supporting Council’s claim for service equity for the City.

CA 5.1A - Benchmarks have been established, identifying acceptable levels of equity for City residents around selected social characteristics and acceptable levels of provision in nominated services

CA 5.1B - Develop strategies as a component of Council’s over-arching agreement with Government to support advocacy for service equity

Issue 7:

Community Well Being and Social Justice

TA 7.1 -  Effective responses are made to the social impacts of growth, redevelopment and change.

CA 7.1A Assess the social impacts of urban change in both new release and established areas and develop planned responses.

CA 7.1B - Lead social planning partnerships with others to effectively respond to the social needs of the City’s diverse communities.

TA 7.2 -  Strategies are in place to respond to the social and health needs of the community.

CA 7.2B - Implement social planning, health planning and community development strategies through the Social Planning Framework.

CA 7.2C - Support community organisations and programs to meet identified community needs.

CA 7.2D - Address the differing needs and preferences of the various age groups through Council’s policy responses, programs and advocacy.

TA 7.3 -  Council continues to offer leadership in developing a better understanding of and cooperation with Aboriginal and Torres Strait Islander organisations and people.

CA 7.3A - Undertake joint initiatives with Aboriginal & Torres Strait Islander organisations & people to increase understanding & cooperation.

TA 7.4 -  Access has increased for communities that face barriers to using social services and facilities.

CA 7.4A - Support and encourage fairness of access to Council & other social facilities & services.

2. Link to Strategic Program

Issue 7:

Community Well Being and Social Justice

TA 7.4 -  Access has increased for communities that face barriers to using social services and facilities.

CA 7.4B - Coordinate & implement strategies across all areas of Council’s responsibility to improve access for people with a disability.

Issue 8:

Cultural Development

TA 8.1 - The City is widely recognised as a centre of cultural diversity, excellence and access.

CA 8.1A - Integrate and implement the strategies of the City-wide cultural planning framework.

CA 8.1B - Build on and develop partnerships and projects with cultural organisations and connect where appropriate with the cultural plans and cultural development of other Councils and WSROC, to enhance the cultural vitality of the City.

Issue 12:

Magnetic Places

TA 12.1 - Penrith City Centre and St Marys Town Centre are appealing places to people seeking satisfying social and cultural experiences.

CA12.1A.-.Develop and implement the social and cultural elements of the City Centres Review Strategies.

Issue 14:

Managing Redevelopment

TA 14.2 - Redevelopment of existing areas contributes to safe, sustainable, affordable and satisfying living environments and cohesive communities.

CA 14.2B -.Formulate and implement social and cultural strategies for redeveloping established areas that support cohesive communities.

Issue 15:

New Release Areas

TA 15.1 - Cohesive communities are formed based on sustainable, safe & satisfying living and working environments.

CA 15.1B - Formulate & implement social & cultural strategies for new release areas that support cohesive communities

3. Service Objectives

 

The Community Development  service is responsible for the facilitation and delivery of the following key objectives for the City:

Strategy and Planning

·      Developing and implementing strategies that respond to the social needs of the City and support wellbeing

·      Responding effectively to the social impacts resulting from growth, redevelopment and change in the City

Leadership

·      With partners establish communities in the City that are safe, sustainable, cohesive and satisfying to live and work

·      Providing leadership for the City in developing better understanding and co-operation with Aboriginal and Torres Strait Islander organisations and people

·      Together with partners providing opportunities for residents and communities to contribute to the City’s cultural vitality and diversity.

Access and Equity

·      Increasing access for the community to social services and facilities

·      Implementing together with partners initiatives that address socio-economic disadvantage in local communities.

 

 


 

4. Scope of Work

 

Examples of Community Development Projects.

 

Strategy and Planning

 

§ Development of Neighbourhood Renewal Policy Framework - AREA Strategy

§ City Centres Social and Community Organisation
Accommodation Needs Study

§ Planning for an Ageing Community - Scoping Study 

 

Leadership

 

       Supporting a cohesive community

o  Harmony Day 2006

o  International Women’s Day 2006

o  Youth Anti-Racism Photo Project

o  Seniors Week

o  Promoting services and access for people of diverse sexuality

§ Access to information - Youth Website

§ Support to community partners - Submission Writing Workshops

 

Access and Equity

 

       Achieving Statutory Social Planning Reporting Requirements

       First Disability Action Plan – 3 years of co-ordinating
implementation

       Penrith City Centre and St Marys Town Centre Access Maps

       Opening of North St Marys Neighbourhood Centre

 

 

5. Key
Performance Indicators (KPI’s)

Key Performance Indicators

2006-2007
Target

% of Social Impact Assessments reviewed and responded to within 21 days

100%

% of Residents satisfied with the provision of services and facilities for older people (with medium to high rating in citywide survey)

75%

% of Residents satisfied with the provision of services and facilities for young people (with medium to high rating in citywide survey)

75%

 

 

 

 

 

6.      Summary of Service Costs

The annual budget allocation for the Community Development service is $ 1,269,540 for 2006-07 budget period.  This amount includes all operating costs and does not include capital costs.

 

Service Elements

2006-2007 Budget

Social Needs Identification & Planning

$194,108

Community Projects and Programs

$540,881

Youth Program

$ 177,939

Liaison with Aboriginal & Torres Strait Islander communities

$ 145,769

Multicultural Access Policy & Planning

$124,803

Disability Access Policy & Planning

$113,799

Aged Services Development & Planning

$87,705

Total Service Cost

$1,385,004

Less : Income

Subsidies

($112,965)

Grants

($2,500)

Net Service Cost

$1,269,539

 

7.      Service Summary Chart

 

 

 

 

 

 

 



 

ATTACHMENTS   

 

 

Date of Meeting:          Monday 12 March 2007

Master Program:          The City as an Economy

Issue:                            Partnering for Economic Growth

Report Title:                Penrith Valley Economic Development Corporation Six Monthly Report - July 2006 to December 2006

Attachments:                Penrith Valley Economic Development Corporation Progress Report for the six months July 2006 to December 2006

                                      Penrith Valley Economic Development Corporation Annual Report and Audit Report 1 July 2005 to 30 June 2006



Policy Review Committee Meeting

12 March 2007

Attachment 1 - Penrith Valley Economic Development Corporation Progress Report for the six months July 2006 to December 2006

 

 

 











 


Policy Review Committee Meeting

12 March 2007

Attachment 2 - Penrith Valley Economic Development Corporation Annual Report and Audit Report 1 July 2005 to 30 June 2006