4 July 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,
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
Leave of absence
has been granted to:
Councillor Jim Aitken OAM - 3 July 2007 to 10 July 2007 inclusive.
Councillor Mark Davies - 2 July 2007 to 16 July 2007 inclusive.
3. CONFIRMATION OF MINUTES
Policy Review
Committee Meeting - 4 June 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
Monday 9 July 2007
table of contents
meeting calendar
confirmation of minutes
master program reports
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MEETING CALENDAR
February 2007 - December 2007
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TIME |
FEB |
MAR |
APRIL |
MAY |
JUNE |
JULY |
AUG |
SEPT |
OCT |
NOV |
DEC |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
Mon |
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Ordinary Meetings |
7.30 pm |
12 |
5 |
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7v |
25* |
2 |
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3ü |
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26 |
23 |
28 |
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23 |
13 |
24^ |
29 |
19 |
10 |
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Policy Review Committee |
7.30 pm |
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12 |
2@ |
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4 |
9 |
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10 |
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3 |
19#+ |
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30 |
21# |
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30 |
20#+ |
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8@ |
5# |
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# 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 |
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Council’s
Ordinary Meetings are held on a three-week cycle where practicable.
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Extraordinary
Meetings are held as required.
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Policy
Review Meetings are held on a three-week cycle where practicable.
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Members
of the public are invited to observe meetings of the Council (Ordinary and
Policy Review Committee). All meetings
start at 7:30pm.
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Should
you wish to address Council, please contact the Public Officer, Glenn McCarthy
on 47327649
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OF THE POLICY
REVIEW COMMITTEE MEETING OF
ON MONDAY 4 JUNE 2007 AT 7:36PM
PRESENT
His Worship the Mayor Councillor Pat Sheehy AM, Councillors Jim Aitken OAM, David Bradbury, Kevin Crameri OAM (arrived 7:37pm), Greg Davies (arrived 7:38pm), Mark Davies, Jackie Greenow, Garry Rumble, Steve Simat and John Thain.
APOLOGIES |
PRC 46 RESOLVED on the MOTION of Councillor Jackie Greenow seconded Councillor Garry Rumble that apologies be accepted from Councillor Susan Page. |
LEAVE OF ABSENCE
Leave of Absence was previously granted to
Councillor Lexie Cettolin for the period 21 May 2007 to 25 June 2007 inclusive.
Leave of Absence was previously granted to
Councillor Karen McKeown for the period 25 May 2007 to 26 June 2007 inclusive.
Leave of Absence was previously granted to
Councillor Kaylene Allison for the period 26 May 2007 to 1 July 2007 inclusive.
Leave of Absence was previously granted to
Councillor Ross Fowler for the period 2 June 2007 to 17 June 2007 inclusive.
Councillor
Kevin Crameri OAM arrived, the time being 7:37pm.
CONFIRMATION OF MINUTES - Policy Review Committee Meeting - 21 May 2007 |
PRC 47 RESOLVED on the MOTION of Councillor Garry Rumble seconded Councillor Mark Davies that the minutes of the Policy Review Committee Meeting of 21 May 2007 be confirmed. |
DECLARATIONS OF INTEREST
There were no declarations of interest.
MASTER PROGRAM REPORTS
The City in its
Broader Context
Councillor
Greg Davies arrived, the time being 7:38pm.
1 Status of National Growth Area |
PRC 48
RESOLVED on the MOTION of Councillor Greg Davies seconded Councillor
Jackie Greenow That: 1. The information contained in the report
on Status of
National Growth Area Alliance be received. 2. The
Mayor represent Council in discussions with the Mayors of the other National
Growth Area Alliance Councils in 3. A further report outlining proposed regional and local communication strategies be presented to the next available Policy Review meeting. |
The
2 Penrith Open Space Action Plan and |
PRC 49
RESOLVED on the MOTION of Councillor Greg Davies seconded Councillor
Kevin Crameri OAM That: 1. The information contained in the report
on Penrith Open
Space Action Plan and Penrith City Local Open Space Development Contributions
Plan be received. 2. Council endorse the Penrith Open Space Action Plan as attached to this report. 3. Council approve the Penrith City Local Open Space Development Contributions Plan as attached to this report, and repeal the existing Development Contributions Plan for Open Space in Existing Residential Areas (1997). 4. The balance of Section 94 funds at the end of the 2006/07 financial year relating to the Development Contributions Plan for Open Space in Existing Residential Areas (1997) be transferred to the Penrith City Local Open Space Development Contributions Plan. 5. Public notice of Council’s decision be placed in a local newspaper. 6. Those persons who made submissions be advised of Council’s decision. 7. Council seek Government grant opportunities under the NSW Sport and Recreation Capital Assistance Program (CAP) and the Regional Sports Facility Program (RSFP) for improving open space areas in the City. |
The City In Its
Environment
3 Review of Council's On-site Sewage
Management Strategy |
PRC 50
RESOLVED on the MOTION of Councillor Jim Aitken OAM seconded
Councillor Garry Rumble That: 1. The information contained in the report
on the Review of
Council's On-site Sewage Management Strategy be received. 2. The amended “On-site Wastewater
Management Policy” be adopted by Council. 3. The name of the Policy be re-considered
with the aim to focus more on water re-use management rather than
‘wastewater’ management. |
Leadership and
Organisation
4 Council Scholarship - |
PRC 51
RESOLVED on the MOTION of Councillor Jim Aitken OAM seconded
Councillor Steve Simat That: 1. The information contained in the report
on Council
Scholarship - 2. The
revised selection criteria and amount of the scholarship offered through the 3. Council congratulate Miss Alicia Parata on her receipt of the scholarship, and mention be given of this in the Mayoral Message column in the local media. |
There being no further business the Chairperson declared the meeting closed the time being 8:17pm.
Item Page
The
City in its Broader Context
URGENT
9 Status of National Growth Area
The
1 UWS
2 Food Safety Program
The
City In Its Environment
3 Western Sydney Regional Illegal Dumping
Squad
The
City as an Economy
4 Framework for a review of options for
delivering Economic Development and Employment services in the City
Leadership
and Organisation
5
6 Asset Management Planning For NSW Local
Government
7 Local Government Revenue Raising
Capacity
8 Service Specification Program
THIS
PAGE HAS BEEN LEFT BLANK INTENTIONALLY
The
City in its Broader Context
Item Page
URGENT
9 Status of National Growth Area
THIS
PAGE HAS BEEN LEFT BLANK INTENTIONALLY
The
Item Page
1 UWS
2 Food Safety Program
9 July 2007 |
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The City as a
Social Place |
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The City as a
1 |
UWS |
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Compiled by: Natasha Baker, Senior Environmental Planner
Authorised by: Roger Nethercote, Environmental Planning Manager
Strategic Program Term
Achievement: Cohesive communities are formed based on
sustainable, safe and satisfying living and working environments.
Critical Action: Prepare and implement plans (based on Council's Sustainability Blueprint
for new Release Areas) for each new release area that deliver quality, sustainable
living and working environments..
Presenters: Rhonda
Hawkins - Deputy Vice Chancellor Corporate Services -
Professor
Kevin Sproats - Pro-Vice Chancellor Campus Development -
Purpose:
To introduce a
presentation to the Council of the UWS Nepean Campus Masterplan process which
will be provided by the University Representatives, and provide information
about the relationship of the adopted WELL Precinct strategy and Concept Plan
to the University Campus. The report
recommends that the information be received.
Background
The
Werrington Enterprise Living and Learning (WELL) Precinct is an area of
approximately 645 hectares, bounded by the Western Railway and the Victoria
Street/ Shaw Park precinct to the north, French Street/ O’Connell Street, the
UWS Kingswood Campus and Kingswood residential area to the west,
The
Precinct is of strategic importance within both
With the University of Western Sydney (UWS) being the major landowner, and one of the project partners in the planning and future development within the WELL precinct, it is prudent that any future plans intended for the University educational sites are consistent with the principles and objectives of the WELL Precinct Strategy and the adopted refined Concept Plan. The University is developing a masterplan for its Nepean Campus, which identifies a preferred approach to the future development of its sites within the WELL Precinct. University representatives will be making a presentation on this process at the meeting.
WELL
Precinct Strategy
The planning for the Werrington Enterprise Living and Learning (WELL) Precinct has been underway since 2002, encompassing the development of a WELL Precinct Strategy. Council, at its meeting of 1 November 2004, adopted the principles of the WELL Precinct Strategy and endorsed it as the principal policy basis for advancing the planning and landuse decision making for the Precinct, including the sub-precincts and future development of the University landholdings.
The WELL Precinct Strategy outlines a clear framework within which the area’s potential can evolve into realisable quality, and sustainable urban outcomes for our City and the Region. It provides specific instruction and guidance for Council, landowners and Government agencies as the basis for future landuse planning and development decisions within the Precinct and establishes the principal arrangements, which need to be embodied in those proposals. The Strategy initiative provides an important blueprint for the realisation of future opportunities and synergies between the various activities.
The WELL Precinct Strategy identified key objectives for the planning of the Precinct which includes:
· Seeking creation of quality working, living and learning environments, delivering a viable, vital community, energised by the interactions and synergies of adjacent education, living and employment opportunities.
· Incorporating principles of sustainability into the Precinct Strategy, and incorporating principles of sustainability into the planning and design of the Precinct’s built environment
· Encouraging the development of innovative housing to support the needs of the facilities and the local community, ass to the viability of public transport systems, and contribute to the vibrancy and safety of the area
· Ensuring high quality public transport access to these facilities an the surrounding areas, aimed at reducing growth in car use.
· Identification and establishment of a Precinct Centre conveniently located to optimise synergies between existing and proposed communities, education and enterprise activities. The Centre will provide shopping, entertainment and social services to the surrounding community.
The University is the central element to the WELL Precinct, and the WELL Strategy recognises this by identifying key precinct opportunities relating to the University lands which include:
· the presence of the University within the precinct, representing prestige value in the attraction of businesses to the Precinct;
· University resources presenting opportunity to spark and foster new enterprise and employment opportunities,
· provisions for community and commercial art space, studio facilities and business support by co-locating a Creative Enterprise Precinct within its South Werrington Campus, which will provide excellent opportunities for creative industries, businesses and enterprise, and the learning and teaching disciplines, to collaborate on commercial and community arts based projects,
· co-locate expanded campus sports facilities, with those demanded by new urban development and create a quality sporting sub-precinct;
· increasing opportunities to create synergies through greater integration with the larger teaching and learning community;
· develop opportunities for shared use Campus facilities by local communities in their Campus planning; and
· opportunities for housing choice and affordability for students of the University.
The WELL Strategy includes an Implementation Strategy which
provides strategies for exploring the above opportunities, and pursuing
objectives and identified key outcomes and actions for the Precinct. The WELL
Precinct Strategy seeks to bring together a range of partners, in order to
combine a series of independent actions, occurring or potentially occurring
under independent charters, at different times and paces. Some of these
activities include UWS involved in the master panning of their campus, Landcom
wishing to advance planning of the Caddens Release Area and TAFE exploring
their opportunities available from inclusion in the WELL Precinct.
The WELL Precinct Strategy is now in the implementation
phase of the Strategy with the Precinct-wide Studies outcomes enabling land use
activities within the WELL Precinct to be more clearly defined and
integrated. This process has generated,
as contemplated by the adopted WELL Precinct Strategy, the opportunity for
further evolution and refinements to the endorsed WELL Concept Plan. Further implementation of the WELL Strategy
has seen Council resolving to move forward with the detailed planning to
support the rezoning of Caddens including the Precinct Centre and
The other strategies for pursuing the WELL project
objectives is the UWS developing a masterplan for its Nepean Campus, which is
consistent with the principles of the WELL Strategy and the adopted WELL
Concept Plan. The other element to mention is that the rezoning of the lands in
the WELL Precinct, including UWS, are intended to be subject of subsequent
planning phases which would be included in relevant chapters of the Citywide
Local Plan.
WELL
Concept Plan
The recently completed Precinct-wide Studies provides
detailed information on likely housing and population yields, areas available
for employment and economic development, and clear definition of areas for
riparian and conservation corridors as well as active open space areas,
enabling further evolution of the adopted WELL Concept Plan.
As a result, a Refined Concept Plan for the WELL Precinct
has been prepared which more clearly delineates the land use activities within,
and connectivity across, the Precinct.
The Refined Concept Plan is consistent with the identification of the
major land use precincts in the adopted WELL Strategy, and their general
spatial distribution in the Precinct.
The refined Concept Plan builds on the version adopted by
Council with the WELL Precinct Strategy and in effect retains the same general
disposition of land use arrangements originally contemplated and provides
greater definition to the areas and edges of each of those principal land uses
identified.
The Refined WELL Concept Plan was adopted by Council in
October 2006 (attached to this report), and informs appropriate land use
directions, and provides the basis for the preparation of draft LEPs and DCPs
for the sub-precincts which are now well underway for the Caddens/Precinct Centre Release Area (listed on the State
Government’s Metropolitan Development Program) and the South Werrington Urban
Village, both of which were identified in the WELL Precinct Strategy as having
urban development potential.
The WELL Concept plan as adopted by Council has identified
potential landuse opportunities on each of the UWS Nepean campuses, which
include:
· Kingswood Campus –
predominately education space with small opportunity for residential land uses
to integrate the campus with the
· South Werrington Campus – educational space with the opportunity for employment uses focussing on Creative Arts, with opportunity for residential land uses to integrate the campus with the Claremont Meadows community and the Caddens Release Area;
· North Werrington
Campus - employment potential due to its significant address for higher order
employment in
The WELL Concept Plan is not intended to be a
zoning plan. Rather, it provides the
basis upon which the sub-precinct draft LEPs, DCPs and other future development
in the Precinct are to be prepared, and is also intended to provide a more
specific level of understanding for the community, in terms of the extent and
nature of development intended to be established within the WELL Precinct over
time.
Implicit in the advancement of the LEPs and
DCPs, and any other future land development in the Precinct, is that they
conform to the principles of the adopted WELL Precinct Strategy and the refined
WELL Concept Plan.
UWS Masterplan
Extending from the adopted WELL Strategy 2004, the key outcomes to precinct-wide urban structure was that the UWS Campus planning be informed by the principles of the Strategy and the adopted Concept Plan.
Council officers have been afforded an
opportunity to participate with UWS in its development of a masterplan for the
The
1. To locate and organise academic programs and research activities across the campus network to assure the quality of the student experience and the engagement and impact of research and to respond to student demand and the changing demography of the Region in the most effective and cost-efficient way; and
2. To develop campus land assets to provide resources for the strategic development of the University with the intention that the income derived will be directed towards its strategic investment plans and capital development priorities.
As part of the campus strategy the University has prepared a masterplan for the Penrith campus. The University engaged the services of consultants with significant experience in planning and design of university campuses and educational facilities.
The masterplanning process involved identification of a desirable campus footprint with sufficient capacity for significant student growth and future academic needs. The campus footprint is large enough to accommodate more than three times the current campus student population.
Shaped through consultation with University staff and students and in concert with the WELL Precinct planning process, the campus masterplan is a strategic framework for the future growth of the campus and will guide planning for new infrastructure for the benefit of students and the community.
The key diagrams of the campus masterplan will be available for viewing on the University’s website in the coming weeks. The master plan has been developed in consultation with Council officers. The Board of Trustees have recently endorsed the plan as a UWS strategic structure. Manidis Roberts Pty Ltd has been engaged by the University to manage ongoing community consultation.
Next Steps
The next steps in implementing the WELL Strategy:
1. Report to Council the draft WELL wide Section 94 plan for public exhibition, this will be reported shortly to Council.
2. Continue to work with the University to consider opportunities on its campuses, particularly those which would see the advancement of additional employment creation.
3. Continue to engage with the University with its Masterplan process.
4. Report back to Council when the draft LEP, DCP and Section 94 plan
for Caddens release and
5. Continue to inform the community as planning advances in the WELL Precinct such as keeping up-to-date information on Council’s website and further consulting with the community by way of a public exhibition when draft plans come forward for the release areas within WELL.
Conclusion
The University is fundamental to the WELL Precinct, as it
aims to be an established, internationally recognised centre for education,
learning and research. Changing approaches to education recognise that learning
is a life long process that no longer needs to occur solely in the traditional,
institutionalised classroom environment. This opens up opportunities for
teaching and learning environments to become better integrated with the whole
community, with existing and new businesses and development opportunities. The
UWS Nepean Campus offers excellent opportunities to begin realising this
vision.
The
adopted WELL Precinct Strategy and Concept Plan have outlined a clear framework
within which the area’s potential can evolve into
quality, sustainable urban outcomes for our City and the Region. The UWS has
advanced the WELL Strategy by developing a masterplan that conforms to the
principles of the Strategy and adopted Concept Plan.
That
the information
contained in the report on UWS Nepean Campus Masterplan be received. |
1. View |
Adopted WELL Concept Plan 2006 |
1 Page |
Appendix |
9 July 2007 |
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The City as a
Social Place |
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The City as a
2 |
Food Safety Program |
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Compiled by: Graham Pares, Environmental Health Coordinator
Authorised by: Wayne Mitchell, Environmental Health Manager
Strategic Program Term
Achievement: Strategies are in place to respond to the
social and health needs of the community.
Critical Action: Develop and implement a healthy strategy for the City that will guide
planning and strategies that embrace healthy outcomes.
Purpose:
To provide an
update on Council's Food Safety Program and the proposed enhanced program for
2007-08. The report recommends that the
information be received and that a further report be prepared upon commencement
of the Food Regulation Partnership, committing to the provision of the
nominated Category C service level
Background
Traditionally, local government has played a key role in protecting health and promoting hygienic conditions and standards within the community, including a key focus on regulating and promoting food safety. Until a change in legislation in 1989, local government had the ability, through the Local Government Act, to register food premises and to effectively regulate the conditions within these premises. With the removal of that ability, the mandate for the role of local government in the regulation of food safety was unclear, and the degree to which councils undertook this role differed significantly. In addition, the legislative basis of food safety enforcement differed across the States, presenting a problem for food businesses that operated on a national scale.
In
1995, State and Territory health ministers requested the Australia New Zealand
Food Authority develop national and uniform food safety standards for
Council considered a report in May 2005, outlining the proposed direction that the NSW Food Authority was pursuing, in defining a role for local government in the regulation of food safety. This role was being prepared as part of the NSW Food Regulation Partnership, a process of defining the partnership role between the NSW Food Authority and local government in securing a safe food supply. Three options were available to Council for the service level that they could provide in a food safety program, as outlined in the following table.
Proposed Partnership Service Level – Local
Government
Category A · Food premises approvals · Emergency response · Urgent food recalls |
Category B · Category A, plus · For retail food service
businesses (excepting those businesses for which a Food Safety Scheme
applies) · Premises inspections (to
determine compliance with Food Safety Standards 3.1.1, 3.2.2 and 3.2.3 and
basic Food Standards matters, in addition to taking samples as appropriate) · Investigation of complaints
(including single cases of food borne illness) · Enforcement action (including serving notices, orders and taking court action) |
Category C Category A & B, plus · Any other role negotiated
directly between councils and the NSW Food Authority, for example (but not
limited to): · Premises inspections of
manufacturers |
Category A was proposed to be the base minimum role for all councils. Accompanying this role was the introduction of appropriate funding measures to sufficiently resource the service level provided.
From the release of this proposed partnership in 2005, the Food Authority has undertaken extensive consultation with local government to outline the service obligations commensurate with commitment to the particular service levels. The purpose of this consultation was to enable Council to determine the service level it would be capable of delivering prior to the introduction of the legislation necessary to formalise the partnership process. The legislation would include provisions for:
· The nomination by Council of an appropriate service level
· The range of fees and charges that would be available to effectively fund a food safety program at that service level
· A standard schedule of inspection frequencies
· Standard protocols for investigation and annual reporting on the program
Council’s
Preparation for the Partnership
The
Food Safety Program is delivered as a significant component of Council’s
adopted specification for Health Services.
Given the recognition of Penrith as a
This review of the program included the introduction of a new ‘evidence-based’ inspection tool that was closely aligned to the Food Safety Standards, which could be utilised to both improve the assessment of premises, and to better inform food business proprietors as to the areas of non-compliance. The Australian Food Safety and Assessment (AFSA) inspection system was tested and determined to be the best tool. This inspection system was developed by the Australia Institute of Environmental Health and is considered to be ‘best-practice’. Alterations were also made to the database used for recording inspection results, allowing greater analysis to guide areas of food operations to focus in on the following program period.
The decision to utilise this tool has increased the time spent within a food premises, as it requires a greater understanding of the workflow within the business. It also provides a greater protection level for food safety by identifying areas of serious non-compliance. The enforcement process for Council officers has been amended to adjust to the new tool, with the identification of serious non-compliance as the trigger for the commencement of a range of actions should the circumstances warrant it.
There are 519 different food premises presently registered as operating within the City, with the following table detailing the breakdown by type of outlet:
Type |
No |
Type |
No |
Type |
No |
Bakery |
39 |
Bistro |
26 |
Cafe |
46 |
Canteen |
4 |
Mixed Business |
45 |
Fish |
11 |
Restaurant |
76 |
Service Station |
30 |
Supermarket |
36 |
Takeaway |
131 |
Specialist Low risk |
44 |
Mobile Food vehicles |
31 |
In addition to these premises, periodic surveillance is carried out at festivals and promotion and marketing events where food is handled for sale. All premises registered at the commencement of the program have been inspected in the 2006/07 year.
Inspection Component of Food
Safety
The major component of the Food Safety program is the annual inspection that is conducted at each premises. The purpose of the inspection is to assess compliance with the operating requirements of the Food Safety Standards. The Food Safety Standards define the manner in which food premises are permitted to be maintained or operated so as to minimise the potential for the sale of unfit or unsafe food. These Standards are adopted under the provisions of the Food Act 2003 and apply to all food premises operating within the State.
During the course of the inspection, the condition of the premises and the food handling practices are observed or information is collected through conversations with the food business proprietor. Compliance is recorded in 9 key areas of the business operation:
· Food receival
· Storage
· Processing
· Display
· Packaging
· Transportation and Distribution
· Recalls/Food Disposal
· Health, Hygiene and Knowledge
· Premises and Hygiene
Inspection results are classified as Pass or Fail, based upon the identification of areas of non-compliance during the inspection. One hundred and eighty six (186) premises (36%) were identified as failing to comply with all relevant safe food handling practices at the first inspection. The following table indicates the areas in which the non-compliances were detected.
Area of non compliance |
No of premises |
Food receival |
11 |
Storage |
35 |
Processing |
14 |
Display |
25 |
Packaging |
1 |
Transportation and Distribution |
0 |
Recalls/ Food Disposal |
0 |
Health, Hygiene and Knowledge |
54 |
Premises and Hygiene |
86 |
If non-compliance is determined to be serious then an enforcement process is undertaken as outlined below. All other premises where non-compliance is recorded are addressed through a process of reinspection after a designated period of time to determine if the matter has been rectified of the 156 premises with an initial inspection result of non-compliance have upon reinspection required no further enforcement.
A rating of serious non-compliance is applied when the particular matter is such that the production of safe food is at risk. Of the 186 failed premises, 30 were deemed to have serious non-compliances relating to cleanliness or construction of the premises. An Improvement Notice, under Section 58 of the Food Act, is issued when premises are considered to be in an unclean or unsanitary condition. The Improvement Notice is a pre-cursor to the service of a Prohibition Notice. A Prohibition Notice may be served if an Improvement Notice is not complied with, within the defined time period, and may require the cessation of food production on the premises. Improvement Notices have been issued to 30 food businesses during this program period for unclean premises, where the evidence indicates a decline in previous standards of cleanliness, not long-term poor practices. In some cases, food premises voluntary ceased trading to ensure that the necessary improvements were achieved within the time period provided. Inspections of these premises after the service of the Improvement Notice indicated the required works were completed satisfactorily.
A Penalty Notice is issued when food is handled in a manner that is not compliant with the requirements of the Food Safety Standards, and the matter has been previously brought to the attention of the food business proprietor. They may be served in conjunction with an Improvement Notice, or separately in respect of a food handling practice, and involve penalties of $330 or $660 for individuals and $660 or $1100 for corporations, depending upon the individual offence. Twenty (20) penalty notices have been issued during the period for the offences of not complying with the Food Safety Standards, handling food in a manner likely to render it unsafe and handling food in a manner likely to render it unsuitable for consumption.
Prosecutions under the Food Act 2003 will be commenced, when sufficient evidence exists that the condition of the premises and/or the food handling practices of the business have placed the community at significant risk, or if the proprietor has previously been notified of the same serious non-compliance matter. No proceedings for a prosecution have been commenced in the 2006/07 program period, however with the consistency in the food safety program established through the use of the AFSA tool this year, any second breaches detected for a food premises will result in the collection of evidence to support the commencement of legal proceedings under the Food Act 2003.
Overall, there has been a noted response from food proprietors during this period, indicating that they better understand their obligations under the Food Safety Standards. To assist in increasing awareness of food safety obligations, the information available to the general community, and specifically the food businesses, through Council’s website, has been upgraded, and the first in a series of regular newsletters for food businesses are being printed to be sent out with a food training package “I’m Alert”, a copy of which has been provided to Councillors. There is a commitment to increasing the range of support material that is available for food businesses, to assist them in improving their food safety handling techniques, the end benefit of which will be a safer food supply in Penrith.
The summary of inspection results provided in this report is being further analysed to better focus the education initiatives undertaken in the 2007-08 program and a report will be sent to the NSW Food Authority to bring to their attention the findings of the 2006-07 program.
Discussion
- Food Regulation Partnership
As mentioned previously, it was anticipated the formal introduction of the Food Regulation Partnership through introduction of the relevant legislation was to occur in time for the commencement of the 2007-08 program. The legislation was not introduced and its commencement has subsequently been delayed, with information indicating that it is not likely until later in the year. Upon formal commencement of the Partnership, it is expected that Council will be required to formally commit to a Memorandum of Understanding detailing the service level that it is intending to provide. A further report will be tendered to Council at that time, proposing a commitment to the Category C level, the highest service level available.
The NSW Food Authority has provided draft documentation, outlining the general requirements for councils to consider when they commit to a particular service level, and mandatory protocols needing to be followed for matters such as single-case food borne illness and food safety emergency response. The information outlines draft reporting protocols required to be submitted annually, detailing the outcomes of the food safety program conducted and the enhanced service that may be provided. It also details a recommended inspection schedule for food businesses, and a maximum fee structure including administration and inspection fees becoming available within the proposed legislation.
Preparation for the 2007-08 Food Safety program has included a revamp of practices and processes to enable a transition to the top service level (Category C) at the time of the Partnership introduction. It has included consideration of additional resources and an extension of the skill base of existing staff to undertake additional work such as food sampling. We will be participating in a food sampling survey of bakery products to be coordinated by the NSW Food Authority in September to determine the bacterial quality of some of the products sold within the City. Skill development within this area will enable us to undertake periodic independent sampling surveys of both bacterial quality and food composition of food products produced in the City. The resource commitment necessary to deliver the enhanced program was considered, during the recent service review, and is included in the budget and management plan for 07/08. Preparation for this enhanced program has commenced, and includes the provision of targeted food handler training and regular food quality sampling surveys.
Committing to the highest service level (Category C) will require a greater resource commitment than previously provided, however early changes that have been gradually introduced to the program have offset the impact. The steady building of a professional relationship with food business proprietors will enable additional tasks such as food sampling to be undertaken with their support, and will enable proprietors to better understand the potential impact that they may have through poor food handling practice. An anticipated flow-on effect of undertaking the highest service level will be the placement of Council as a preferred place of employment for environmental health professional staff offering them a range of experiences.
The Food Authority provides a high level of support, which is expected to continue throughout the introduction and implementation of the new Partnership.
Conclusion
As a recognised
That: 1. That the information contained in the report on Food Safety Program be received. 2. A further report be prepared for Council upon commencement of the Food Regulation Partnership legislation. |
There are no attachments for
this report.
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The City In Its Environment
Item Page
3 Western Sydney Regional Illegal Dumping
Squad
9 July 2007 |
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The City in
its Environment |
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The City in its
Environment
3 |
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Compiled by: Barry Ryan, Waste and Community Protection Manager
Authorised by: Barry Ryan, Waste and Community Protection Manager
Strategic Program Term
Achievement: Waste to landfill and indiscriminate dumping
are significantly reduced and resource recovery is optimised.
Critical Action: Develop and progressively implement a waste strategy that complements
the State Government’s Waste Avoidance and Resource Recovery Strategy.
Presenters: Barry Ryan, Laurie Cafarella,
Stephen Gillis - Penrith City Council -
Purpose:
To provide
Councillors with an update and background on recent activities undertaken by
the
Background
The Western Sydney Regional Illegal Dumping (RID) Squad consists of officers employed by one Council to provide a deterrent to illegal dumping across a number of Local Government areas (LGA’s).
The
Western Sydney RID Squad was formed in 1999, as a response to the growing
problem of the illegal dumping of waste.
Current members of the Strategic Alliance include
The Department of Environment and Climate Change is a significant partner in the project providing $45,000 in funding per Council per annum.
Penrith City Council is the current Project Manager of the Western Sydney RID Squad.
Current
Situation
The Western Sydney RID Squad is unique in that staff employed by one council operate across the six local government areas, providing a service that would otherwise not be able to be afforded by a single local community.
Project staff can operate individually, in pairs, or as a team, to tackle specific waste dumping issues in an area, thereby providing a service to the community that otherwise would not be able to be provided by an individual council.
In mid 2006, the Western Sydney Regional Illegal Dumping Squad was highly commended in the efficiency improvement category at the National Awards for Local Government, run by the Australian Government’s Department of Transport and Regional Services.
This category was chosen, as it best
reflects the contribution of the Squad to reducing the cost of providing
regulatory services to project member councils in
The
Western Sydney RID Squad is a deterrent program, utilising an autonomous team
of specialised investigation officers, targeting the illegal disposal of waste
throughout
Significant outcomes of the RID Squad project include:
· It has provided member councils with a significant resource without all the inherent costs;
· Each council is provided with the ability (which occurs during specific operations) to target a specific area or /issue with all staff of the Squad;
· The community has benefited from the reduction of illegal dumping;
· The community has also benefited through cost savings derived from the sharing of RID project and staff resources;
· Illegally dumped waste that has been successfully tracked to a responsible person or company is required to be removed by that person or company, thereby saving the community the costs of removal and disposal of the waste;
· The RID Squad have issued a total of over $1,000,000 in fines since the commencement of operation.
The nature of illegally dumped waste in the Penrith Local Government Area has changed considerably over the past 5 years. Whilst there are fewer incidents of the illegal dumping of significant amounts of waste, there are still a considerable number of incidents on a minor scale, i.e. 0.5-5 tonnes of waste, particularly in bushland areas.
Some strategies have further reduced this level of dumping, including the placement of gates on fire trails, fencing of some areas, and increased enforcement.
Various strategies are used by the staff of the RID squad, including aerial surveillance using helicopters.
A presentation will be made to provide Council with an overview of the RID Squad, and recent incidents investigated, including results from aerial surveillance in March 2007.
That
the information
contained in the report on the Western Sydney Regional Illegal Dumping Squad be received. |
There are no attachments for
this report.
The City as an Economy
Item Page
4 Framework for a review of options for
delivering Economic Development and Employment services in the City
9 July 2007 |
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The City as an
Economy |
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The City as an
Economy
4 |
Framework for a review of options for delivering Economic Development
and Employment services in the City |
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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: Work with appropriate economic partners on developing mutual
understanding and support for a common agenda for action.
Purpose:
To suggest to
Council a framework for the review of options available in the delivery of
economic development and employment services.The report recommends the
establishment of a Councillor Working Party to conduct such a review and that
representatives of the PVEDC be invited to join the working party in an
advisory capacity. The report further
recommends that Council consider the merits of including the two Centre
Associations as part of the review.
Background
At the Policy Review Committee meeting of 30 April, Council requested a report outlining an approach to further investigating the options available to Council for delivering its economic and employment development services.
Over
the past nine months Council has had the opportunity through Briefings and
Policy Review Committee meetings to consider the outcomes of the research and
investigations undertaken by the Glenmore Park Stage 2 landowners group (LOG)
in preparing an Employment Development Strategy. As a result Council agreed at
its Policy Review Committee meeting of 30 April to accept an offer of $1.6
million from the LOG, to be formalised via a planning agreement, to develop
initiatives to create jobs not able to be delivered by the development itself.
The offer for a financial contribution from the LOG is underpinned by a
sectoral based investment strategy developed by Professor Ed Blakely and the
Policy Research Centre (PRC) at
At this stage any approach to conducting a review would have, in the main, considered Council’s internal economic development functions and the role and functions of the Penrith Valley Economic Development Corporation. The Board of the PVEDC has been consulted on the directions proposed by Council and has advised that while there are concerns with regards to the proposal the Board is supportive of further investigations. The Corporation’s CEO has recently resigned and the Board has taken a decision to appoint an acting CEO who is also a Board member, pending the outcomes of the review.
Current
Situation
I: Framework
for Delivering Economic and Employment Services
In his investigations, Professor Blakely took the opportunity to explore the mechanisms which would suit a city like Penrith to maximise the outcomes from this new stream of funding in combination with the resources Council currently invests in economic development activities. His findings suggested that the City would benefit significantly from further rationalisation of the current structure, with a strong recommendation for the creation of a single entity that could act like any company, have significant entrepreneurial flair and be accountable to Council through a performance agreement targeting job creation.
The PRC
objective in evaluating a new structure was to create institutional frameworks
that are entrepreneurial and self contained as well as accountable. Their
recommended approach was to develop a new company which will act like any
company with the right to bid on business to seek and attract jobs in Penrith
and any other areas prescribed by its charter such as Blue Mountains and
The
delivery of economic development and employment services has increasingly
become a core business for local governments in
The most appropriate framework for conducting the review is through a working party of Council with representatives of the PVEDC invited to join the working party in an advisory capacity. The first meeting of the working party would need to consider and agree on both a terms of reference and the timeframe for the review.
II: The City
and Town Centre Associations
At Council’s Policy Review Committee meeting of 28 May 2007 a report was requested concerning opportunities which exist for a rationalisation of the economic development activities of Council with those of the funded organisations such as the PVEDC, Penrith City Centre Association, and the St Marys equivalent. As a decision was taken by Council to consider this matter, it was felt prudent that the Associations be advised and consulted on the suggested approach by Council and to obtain their responses as with the PVEDC.
The Associations have discussed the matter with their respective Committees and Council staff and have provided written submissions, on their views on the proposal to include them in the review. Both Associations welcome and are fully supportive of the review involving the PVEDC and Council’s EDD and are cognisant of the ancillary roles they play in economic development efforts for the City. However, the Associations do not consider that their role in economic development and employment is as prevalent as those of the PVEDC and EDD and while they would welcome the opportunity to participate in any consultation process, they submit that the review should in the first instance cover the roles and functions of the PVEDC and EDD.
The Associations have since their inception become a key part of the business districts’ urban fabric, responsible for a number of innovative programs to support retail trade and complement Council in its efforts to create more vibrant, safe and supportive town and city centres. The strength of the Associations come with the diversity of its membership and the commitment made largely by a number of volunteers to how well the city and town centres perform. The activities of the Associations are funded through a special sub-category rate on the businesses in the two centres, raising $324,508 for the Penrith City Centre and $208,439 for the St Marys Town Centre for the 2007-08 financial year.
Research
on how various city authorities in the
A BID is defined as a public/private partnership in which property and business owners elect to make a collective contribution to the maintenance, development and promotion of their commercial district and is modelled on the shared maintenance program of many suburban shopping centres. BIDs deliver a range of supplemental services in coordination with municipal services and invest in the long term economic development of their business districts. The range of services that come under the broad definition of “supplemental or improvement” include the following:
· maintenance (cleaning and graffiti management)
· public safety and hospitality ( public safety officers and visitor assistance)
· business development (business mix improvement and vacancy reduction)
· marketing (special events, holiday decorations, district public relations)
· capital improvements (improved streetlights, directional street signage, custom trash receptacles)
· landscaping (planting trees/flowers)
· community services (fundraising, charitable events, homeless and youth services).
Research work undertaken to evaluate the performance of BIDs in the US has demonstrated some tangible benefits that include cleaner, safer and more attractive business districts; steady and reliable funding sources for supplemental services and programs; the ability to respond quickly to changing needs of the business community; the potential to increase property values, improve sales and decrease commercial vacancy rates; vastly improved night time economies and attendant benefits to safety and security; and districts that are better able to compete with nearby retail and business centres.
BIDs provide a new, more contemporary model for local authorities to partner with property owners and businesses to create vibrant local economies and meet the objectives of job creation and business growth in the city with special focus on the creation and strengthening of night economies which in itself presents a major challenge for both Penrith and St Marys. The Penrith City Cultural Development Action Plan has made reference for the need to “strengthen the City’s night time economy and enhance the cosmopolitan feel of St Marys and Penrith CBD” and research is proposed to further explore this subject.
Penrith’s regional city status and vision for Penrith City Centre and St Marys Town Centre (as articulated in the Penrith City Centre Plan and the St Marys Town Centre Strategy) will create new challenges, such as the creation of 10,000 jobs in the Penrith City Centre, for Council and its partners, including the City and Town Centre Associations. The concept of BID provides Council with an opportunity, as part of this review process, to assess the merits of the concept in the context of Penrith’s business districts and to explore a fresh approach in the delivery of essential city services.
While there is some validity in considering an approach that includes the Associations in the review the concerns expressed by the Centre Associations and their special relationships with their constituencies in delivering town and city centre programs can not be disregarded and merits consideration by Council. While we believe that the timing for a wider review may be appropriate it would be more expedient and less complex to commence the review by looking at the functions and roles of the PVEDC and Council’s own economic development functions.
Conclusion
The investigations undertaken by Professor Ed Blakely in developing an employment development strategy to meet the jobs shortfall in Glenmore Park Stage 2 development has presented Council with a major opportunity to review how it delivers its economic development and employment services. Prof Blakely has demonstrated that the current structure in the form of Council’s own Economic Development Department (EDD) and the independent PVEDC has shortcomings and needs streamlining. It has resulted in some duplication of effort and our inability to clearly communicate to businesses and our partners on the roles and functions of the two entities. This in the long term can be counterproductive and adversely affect our efforts in attracting investment and growing the City’s businesses. The current structure has also limited funding at levels which preclude funding for major projects and ongoing programs critical to the meaningful delivery of Council’s economic program.
The recurrent funding commitment to the PVEDC and EDD, approximately $710,000, and the stream of funding forming part of the GPS2 Employment Development Strategy ($1.6 million) will provide the critical mass so vital for the delivery of Council’s economic and employment development programs. The mechanism through which these funds will be invested to achieve the best outcome for Council and the community will need to consider the strengths and weaknesses of the current structure and the merits of a number of models outlined in the report as well as a range of local conditions and challenges we face as a regional City.
As part of this challenge the appeal of the popular Business Improvement District model to meet the future “place” needs for City and Town Centres has merit and provides Council with the opportunity to explore a fresh approach in planning and delivering essential city services. Any step in this direction would need to recognise the views and concerns of the Centre Associations and the important role their members play in implementing a range of initiatives to keep the Centres attractive and the retail businesses viable as well as the complexity of involving the Associations as part of review with the PVEDC and the EDD.
The report confirms that the review should at this stage consider the roles and functions of Council’s Economic Development Department and the PVEDC given their primary focus on economic development and job creation with the Centre Associations participating in an advisory capacity.
That: 1. The information contained in the report
on the Framework
for a review of options for delivering Economic Development and Employment
services in the City be received. 2. A Working Party comprising all interested and available Councillors be established to undertake a review of options available to Council to deliver citywide economic development and employment services covering the roles and functions of Council’s Economic Development Department and the PVEDC. 3. Council invite representatives of the PVEDC to join the Councillor working party in an advisory capacity. 4. Council invite representatives of the Centre Associations to participate in the review in an advisory capacity. |
There are no attachments for
this report.
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The City Supported by Infrastructure
There were no reports under this
Master Program when the Business Paper was compiled
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Leadership and Organisation
Item Page
5
6 Asset Management Planning For NSW Local
Government
7 Local Government Revenue Raising
Capacity
8 Service Specification Program
9 July 2007 |
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Leadership and
Organisation |
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Leadership and
Organisation
5 |
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Compiled by: Ken Muir, Risk Management Co-ordinator
Authorised by: Barry Husking, Chief Financial Officer
Strategic Program Term
Achievement: A contemporary system of risk management and
internal control is operating.
Critical Action: Develop and implement an enterprise risk management policy and plan
including integrated risk management, compliance and internal control systems
that identify, assess, monitor and manage risks throughout the organisation.
Presenters: Ken Muir - Penrith City
Council -
Purpose:
To provide Council
with an update on the status and planned development of enterprise risk
management activities and policy. The report recommends that an enterprise risk
management policy be adopted.
Background
Risk Management
Risk management is defined as “processes and structures that are directed towards the effective management of potential opportunities and adverse affects”[1]. “Risk management is recognised as an integral part of good management practice. To be most effective, risk management should become part of an organisation’s philosophy, practices and business plans rather than be viewed as a separate program. When this is achieved, risk management becomes the responsibility of everyone in the organisation.”[2]
Risk management is a process consisting of well defined steps which, taken in sequence, support better decision making by contributing a greater insight into risks and their impacts.
The basic objectives of a risk management program within an organisation are to:
· Provide appropriate protection of its people, assets, financial/commercial position and business operations in order to maintain the business and its net worth;
· Contribute to satisfactory legal compliance, corporate governance and due diligence;
· Assist with quality improvement of services;
· Protect the reputation, credibility and status of the organisation;
· Enhance public and credit confidence in the organisation.
Integrated risk management is where risk management processes are used in planning, coordinating, implementing and monitoring activities in all services to achieve service and corporate goals. No activities of any service area should undermine the stability and/or potential growth of the whole organisation.
Risk Management
Guidance
Australian Standard AS/NZS 4360 acts a guide to managing risks[3]. AS/NZ 4360 sets out how risk management involves managing to achieve an appropriate balance between realising opportunities for gains while minimising adverse impacts. It is an integral part of good management practice. It is an iterative process that promotes and supports continuous improvement in decision-making and performance. Risk management involves establishing an appropriate infrastructure and culture that systematically applies a management process, and communicates the risks associated with activities that enable organisations to minimise losses and maximise gains.
Other
contemporary and authoritative sources[4]
for implementing risk management and governance include the Australian Stock
Exchange (ASX), the Committee of Sponsoring Organisations (COSO) of the
Treadway Commission (UK) and the Public Company Accounting Reform &
Investor Protection Act 2002
The ASX guidelines have been written for public companies but are equally applicable to government organisations ,and have been recognised by the NSW Treasury, NSW Audit Office and the Department of Local Government.
The ASX Corporate Governance Council developed a set of practice principles to promote and restore investor confidence. The principles are based on international best practice, and Principle 7 specifically refers to the recognition and management of risk.
The ASX Group 100, representing the “top” 100 companies publicly listed on the ASX, has published plain English guides for the ASX principles. A table outlining key issues and guidance notes is attached as Appendix 1.
Risk Management
Framework
Managing risks is a discipline of living with
risk, and of finding the most pragmatic ways of coping with risks across the
whole of the organisation, including its controlled entities. The fundamental objectives of risk management
are:
· reducing fear of the unknown and the unexpected;
· minimising the pain of adversity;
· creating confidence in the future.
To achieve this, an organisation needs a framework for risk management and reinforcement of a culture where there is a formal, systematic approach to identifying, managing and monitoring risk. The framework and culture acknowledges that the management of risk involves making decisions that comply with statutory requirements and are consistent with the community’s values and ethics. The underlying principles for establishing a risk management framework are in general [5] that:
· Risk management should not be restricted to insurance[6] or auditable risks;
· Risk management needs to address whole-of-business risk;
· Risk management systems must report the emergence of new risks and the impact on existing risks of changing business conditions;
· The entire management team needs to take responsibility for the identification and assessment of risk rather than delegating it to a risk manager or internal audit;
· Acceptable levels of risk need to be defined – some activities will be more tolerable to risk-taking than others;
· Risk management systems need to be capable of reporting risks that fall outside acceptable criteria;
· Risk management policies should be developed and communicated throughout the organisation;
· Effective risk analysis needs appropriate staff participation to be tailored to the specific requirements of each activity.
Strategic Alliances
Council
has demonstrated its commitment to achieving best practice risk management, and
since 1989 has operated in a strategic alliance known as Westpool comprising of
the Councils of Blacktown, Blue Mountains,
· Promote best practice enterprise risk management;
· Reduce the impact of risk exposures and;
· Maximise resources available to support the core services provided by member councils to their constituents.
Westpool’s approach to enterprise risk management is:
· explicit in its strategic plan
· exemplified by reduced risk exposure through a reduction in claims and
· exemplified by its financial strategy which has ensured that all liabilities are funded with a prudential margin of 20% and the Pool now has an equity growing in excess of $5 million.
In June 2007 Westpool sent a study tour group to the
Council’s enterprise risk management plan is iterative and has been evolving since 2001. The focus of Council’s risk management has been to embed risk management practices and culture across all services and has therefore not been restricted to insurance. The underlying principles and guidelines are outlined in the risk management manual. They provide insight into the background of the Council’s risk management framework and are in keeping with risk management guidance. The objective of the plan is to provide assurance that a sound system of risk management is operating at all levels, including controlled entities, and in all service areas.
Key elements of the ERM plan have been the development of a risk management framework and culture through the:
· identification, assessment and improvement of controls on risks,
· recognition and enhancement of existing knowledge and systems,
· improvement of communication relating to risk
· monitoring of improvements
Current
Situation
Council has been developing enterprise risk management within its existing activities by improving on its risk management framework and culture to improve its decision making processes. Council’s ERM policy reflects contemporary practice with a framework based on:
1. Risk profiling;
2. Service Risk assessments;
3. Major capital works risk assessments;
4. Business continuity planning;
5. Risk Transfer and Insurance;
6. Internal audit;
7. External risk review and benchmarking.
An enterprise risk management policy is appended to this report, and is recommended for adoption.
1. Risk Profiling
Program (measuring and continuously
improving “how we deliver services”)
Risk profiling was introduced in 2001 and is used as a tool for identifying gaps, benchmarking and measuring knowledge and currency of Council’s major operational systems. Profiling provides assurance that operational risks have been identified, evaluated and minimised through the implementation of pragmatic controls and reviewed.
Profiling aims at measuring key aspects of risk control systems, identifying key aspects of best practice systems and identifying gaps. Gaps in internal controls affect performance in a variety of ways, primarily because of their potential positive or negative impact on Council’s objectives. There are a number of risks:
· Operational and project system risks are issues affecting the “on site/face to face” actual provision of service. Examples include site safety and contract specifications.
· Departmental or service area system risks are issues that affect a more generic delivery of services. Examples include road reserve maintenance and development assessments.
· Corporate system risks are issues that affect the achievement of, or decision making related to, whole of organisation objectives. Examples include intranet, project planning, strategic planning, business continuity planning, and the scope and priorities of internal infrastructure support.
The level of risk is escalated depending on the need to co-ordinate management activities and risk controls.
The first profile became the platform for further analysis, evaluation and the development of risk controls based on the prioritisation of risks according to the context of each service delivery manager, departmental manager and the organisation. Managers developed Risk Control Improvement Plans (RCIPs) for systematic improvement of their internal controls, as appropriate to their need and capacity, to improve the management of their activities. Cross-departmental issues are referred to the Governance Unit for consideration. The profile assessments are repeated to measure the progress of risk management improvements and update assurance as to the strengths of operational risk control systems.
Occupational Health, Safety and Injury Management (OHSIM) were excluded from the profile program because OHSIM systems were being updated. The tools and methods used for profiling will be used in assessing the currency of the OHSIM system with the conversion to a self insurance model.
There is a common council-wide profile, focusing on internal controls, Operational Risk Profile 1 (ORP1), which sets out a route for the efficient risk management of council. ORP1 is applicable to all service areas, and managers are able demonstrate that:
· processes are documented, logical and systematic;
· processes are current and according to current standards;
· there are systems to support the efficient delivery of service ;and
· staff are trained to deliver the services they provide.
The ORP1 is combined with specific activity profiles that focus on individual services.
The profile program was repeated and expanded in 2004 and managers continue to develop and implement improvements.
The outcome of the profile program is to provide a platform for managers to review the systems used to deliver services and provide assurance that they are as efficient as possible. Specific areas of potential high risk are identified and these are project managed.
2. Service Risk
Assessment Program (SRA) (risk ranking the services provided)
The profile program focuses on the risks associated with internal control system and does not attempt to assess the risk associated with what is done. Particular aspects of the internal control profile raised the issues relating to cost benefit analysis of service delivery. The evolution of the profiling program alluded to services areas that may have low risk activities but have highly developed internal control systems. Further improvement on those service risk controls may need to be discretionary only as the risks do not materially affect Council’s viability or strategic or management plans.
It is
important that Council’s strategic goals are being met by services that are
delivered efficiently, effectively and within Councils appetite for risk taking
and practical management of risks. It is therefore important to determine how
much risk council is prepared to accept and self manage as part of its normal operations. Or what is Council’s appetite for risk?
Council
has developed a program that assesses the risks associated with activities
identified through service specifications.
Each risk associated with service specification activities is measured
in terms of likelihood and consequence to derive two categories: enterprise
risk rate and controlled risk rate.
The outcomes of the SRA are:
1. activities can be ranked according to risks within
a. service areas
b. departments ( where services are grouped)
c. across Council
2. activities are ranked according to uncontrolled risks to determine critical activities
3. activities are ranked according to controlled risks to determine adequacy of current controls
4. Council can determine its risk appetite
5. the creation of a risk register and platform for regular review of activities and risks
The process and results of risk ranking adds value to overall service reviews and the annual allocation of resources to minimise risks in line with agreed levels of service.
OHSIM implications for employees were exclude from the first SRA because:
· of the impending changes that will result from the conversion to a self insurance model and
· inclusion would have made the initial assessment unwieldy. The SRA process can be incorporated into OHSIM self insurance systems.
3. Major Capital Works
Project Management
The
model to be used for managing risks associated with major capital works
projects is based on the NSW Total Asset Management System and incorporates
features of the Victorian Government’s “Partnerships for
It was noted on the Westpool study tour in June 2006 that a number of UK Local Authorities have integrated risk assessments into annual project funding plans.
4. Business Continuity
Organisations need a plan to ensure that they can ride out the impact of a major disruption to their services. This plan is often referred to as a disaster recovery plan or business recovery plan but a business continuity plan (BCP) is a more appropriate description of such a plan as it manages the risks associated with disruptive events. For a BCP to be effective it must be communicated to key personnel and reviewed and tested to ensure that the plan is current and adequate. A viable BCP helps reduce insurance exposures.
The BCP outlines service responses to major disruptions to Council’s major assets and provision of services. The BCP is separate to but complementary to local and regional disaster plans and is subject to regular review.
5. Insurance Programs
Insurance
programs are a method of obtaining financial support when and if there are
adverse events. While 80% of an organisation’s risks are not insurable it is
essential that the 20% gap is adequately covered. Insurance is reviewed
regularly to ensure that cover is both adequate and cost effective. Alternate
methods of risk transfer are used wherever possible and Council continues,
through
· claims are managed effectively and efficiently
· Claims analysis and benchmarking are used to identify the frequency and consequences of adverse events in order to invest in defusing emerging risks and to support the application of the Service Risk Assessment program.
The Risk Management Co-ordinator is:
· pursuing the possibility of benchmarking Council’s full cost of insurable risk within NSW Local Government and similar sized organisations and
· involved in the conversion of OHSIM systems to a self insurance model so as to compare the benefits from the general works compensation general fund with the benefits of self insurance.
6. Internal Audit
The role of Risk Managers is complemented by
the Internal Auditors who are seen by leading practice organisations as having
the role of:
· focusing on financial control and compliance areas, and on control activities and monitoring of these areas. Internal audit makes an attempt to focus on the key areas of the organisation
· acting on behalf of senior management in reviewing the system of governance and also focusing on operational areas including risk assessment with particular focus on the organisation's critical success factors.
· focusing on key risk areas with regards to strategic objectives
· adopting a "facilitating" approach to customer service and thereby sharing information on best practice, assisting with development of self-assessment programs, assisting where conflicts of interest arise in self assessments and soliciting and responding to customer feedback.
As part of the Internal Audit Program, internal audits verify that the information provided through the risk profile self assessment program is accurate and that there is compliance and focus on efficiency and effectiveness of operations.
7. External Review
& Benchmarking
External reviews and systems audits complement the overall risk management strategy and can be used as benchmarks.
External reviews and audits are conducted to assess the condition of particular services and risks. These reviews may be used to verify compliance with standards and legislation and may be annual or ad hoc. Some recent external risk reviews examples include the risk assessment of council’s IT structure, workers compensation premium discount assessment, the condition of playground equipment, the efficiency of the development application system and the purchasing system.
An in-house program has been developed, based on ASX principle 7, to assess the status of our risk management programs. This program has been promoted in risk management magazines and through the NSW Risk Management Institute of Australasia. The program has been made available for use by other organisations through the Westpool website. The program has received positive feedback from risk management practitioners in the Queensland Department of Public Works and NT Gas.
MetroPool has developed a risk management benchmarking tool based on elements of the 2001 profile. Westpool is trialling an accreditation program to be use as a risk management benchmarking tool.
These
tools and external assessments complement our profiling program and can be used
to benchmark our risk management system and culture.
Summary
Council’s enterprise risk management framework and culture continues to evolve at all levels in all services. The framework is dependent on the interaction, efficiency and effectiveness of information, service delivery, communication and training. These elements are supported through the continuous improvement cycle that is generated through Risk Profiling and Risk Control Improvement Plans and the service risk priorities identified through the Service Risk Assessments. Simultaneously, Council has been improving its occupational health & safety and injury management systems, business continuity plans, and its insurance programs.
Council is integrating risk management into all services and activities and does not focus on insurable risk alone.
Council’s risk management framework supports strategic, financial and operational levels with continuous buy-in by CMT, managers and staff.
The
adoption of the enterprise risk management policy will support the evolution of
the risk management framework and culture.
By continued implementation of this plan, Council will have assurance that it has a sound and robust system of enterprise risk management and internal control that is integrated into its systems and culture.
That: 1. The information contained in the report
on Enterprise Risk
Management be received 2. The
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1. View |
Key issues for implementing ASX Principle 7 |
1 Page |
Appendix |
2. View |
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2 Pages |
Appendix |
9 July 2007 |
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Appendix 1 -
Key issues for implementing ASX Principle 7 |
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Key issues identified in
implementing
ASX Principle 7
“recognising and managing risk”
Key Issues |
ASX Group 100 Guidance Notes |
Formal framework for managing risk |
Have your own framework but The Committee of Sponsoring Organizations of the Treadway Commission COSO model is a broadly accepted example on which to base a model |
Breadth of control |
Oversight of risk management policies should encompass operational, financial reporting and compliance risks. The CEO/CFO certification should focus on financial reporting risks and controls and such other risks and controls specified by the Board |
Layers of control |
All layers should be included in a way that is appropriate to the circumstances of the company |
Level of assurance |
A reasonable level of assurance should be obtained from testing. Examples include external auditor statements and improvements in operational risk profiles particularly in identified key areas |
Period of coverage |
Include the entire reporting period up to and including the date of signing the annual report. |
Corporate reach |
Include entities such as subsidiaries, associates and joint ventures, in the scope of Principle 7 compliance activities |
Operating efficiently & effectively |
“operating efficiently and effectively” should focus on design and operating effectiveness and does not require a specific cost-benefit assessment. |
Reporting templates |
Samples are provided and include “the company is required to
disclose in its annual report the extent of its compliance with the
Principles. The directors have implemented internal control processes for identifying, evaluating, and managing significant risks to the achievement of objectives. These internal control processes cover financial, operational and compliance risks.” |
9 July 2007 |
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Appendix 2 - |
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POLICY DOCUMENT
POLICY NAME: |
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Policy No: |
Adopted
by Council: |
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Minute
No: |
Review: |
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File
No: |
Relevant
Legislation: (if applicable) |
|
Responsible
Department: Financial
Services |
Policy Statement:
This policy seeks to highlight
the commitment shown by the Penrith City Council and its Corporate Management
Team to a risk managed culture, by ensuring that every member and employee of
the Council has regard for the management of risks in the decision making
process and everyday work situations.
The Council provides a diverse
range of services to the community and visitors to the area. It is essential
that council protects and sustains its ability to continue to provide these
services by ensuring that its staff and assets, both tangible and intangible,
are protected against loss and damage. The very nature of the services provided
presents a vast potential for loss or opportunity that, if not controlled, will
greatly affect Council’s ability to discharge its responsibilities to the
community and its employees.
It is the responsibility of all
members and employees to have regard for risk in the carrying out of their
duties, recognising that such risk, if uncontrolled, can result in a drain on
resources that could better be directed to front line service provision, and to
the meeting of the Council’s objectives.
It is the responsibility of
every department and service delivery area to implement a sound risk management
strategy. Managers have the responsibility and accountability for managing the
risks to which their area is exposed.
Council supports the philosophy
that recognises that any reduction in injury, illness, loss or damage benefits
the whole community.
Council acknowledges the
Australian Standard AS/NZS 4360 and the introduction of the ASX Corporate
Governance Council’s “Principles of Good Corporate Governance and Best Practice
Recommendations” , which includes Principle 7: “Recognise and Manage Risk”, as
guides and important elements in establishing good corporate governance
practices in Australia.
Council recognises that Risk
Management is essential for the efficient delivery of its services to the
community ensuring safe and accessible public facilities to minimise injuries
and losses to the community. Council acknowledges the implementation and
coordination of risk management programs is more effective when risk management
programs are integrated into existing systems and processes and are not treated
as add on programs, and consequently adopts a strategy of enterprise risk
management where risk management programs are implemented at all levels within
Council.
To maintain this culture,
Council will ensure there is a sound, robust and integrated system of risk
management and internal control in all services that:
• strives for best practice
• is designed in the context of the council environment and
council’s culture
• manages risks to a level that is as low as reasonably
practical and
• is an integral part of Council’s ongoing management and
governance process.
This policy is supported by the
Council’s guidelines and practices for managing risks.
9 July 2007 |
|
Leadership and
Organisation |
|
Leadership and
Organisation
6 |
Asset Management Planning For NSW Local Government |
|
Compiled by: Mark Andrews, Strategic & Management Planning Coordinator
Andrew Moore,
Financial Accountant
Authorised by: Ross Kingsley, Corporate Development Manager
Vicki O’Kelly,
Financial Services Manager
Strategic Program Term
Achievement: A commonly shared long-term vision for the
City underpins strategic collaboration and community engagement.
Critical Action: Prepare, implement and review Strategic Plans and processes.
Purpose:
To provide an
overview of the Asset Management Planning for NSW Local Government position
paper recently issued by the Department of Local Government. The report recommends that a submission be
made to the Department of Local Government in the terms outlined in the report.
Background
The Asset Management Planning for NSW Local Government position paper was released for public comment in May 2007, and submissions close on 13 July 2007. A copy of the Position paper is included in the attachments to tonight’s business paper. A copy of the joint media release from local government peak industry organisations welcoming the position paper is also included in the attachments.
The paper is the third in a series of papers released by the Department of Local Government (DLG) since late 2006, designed to promote a new direction for local government focussed on developing a strong sustainable local government sector. Council considered a report on the first two papers, at the Policy Review Committee meeting on 19 February 2007. They were:
· A New Direction for Local Government Position Paper. The paper sets out a context for ongoing reform by the local government sector. It sets out a direction of connectedness and innovation and invites comments on specific proposals to further advance this direction.
· Planning a Sustainable Future, an options paper on integrated planning and reporting for NSW local councils. The paper proposes a more strategic direction for councils, through the preparation of ‘community strategic plans’ and delivery programs (this model is very much in keeping with this Council’s well-established approach to strategic management).
Asset
Management Planning for NSW Local Government builds
on a proposal contained in the first of these discussion papers (A New Direction for Local Government – A
Position Paper), and has been structured to integrate with option 3,
contained in the second discussion paper Planning
a Sustainable Future - Integrated Planning and Reporting for NSW Local Councils.
Option 3 was generally supported by Council. The model contains the following key elements:
1. 10 year (minimum) Community Strategic Plan + financial strategy
~ requiring key sustainability principles as a foundation
(adopted with community support, reviewed by each new Council)
2. 4 year Delivery Program + detailed budget program
(adopted by a Council for its term)
3. Annual Operational Plan + authorised budget
At this point in time we understand that the DLG proposes to continue consultation and refinement of proposed changes until January 2008. Amendments to legislation would occur in the 2008 budget session of Parliament, with implementation staged during the 2008-2012 council term. Council will be advised of the Department’s formal advice when it is received.
The Asset Management paper explores the development of a new asset management framework for NSW councils. It promotes a planning process intended to assist local government with the sustainable management of community assets. It considers current asset management practices in NSW, and other jurisdictions, and their possible application in NSW. It is also consistent with the National Framework for Local Government Financial Sustainability.
Response
to the Position Paper Recommendations
The recommendations and proposed Council comments are as follows:
1. Strategic long term
asset management and financial plans be included as essential components of an
integrated planning and reporting framework across NSW local government.
Comment
The model being proposed at figure 1 of the Position paper is not fundamentally unlike Council’s current process with more formalisation and expansion. It proposes the introduction of a 10 year “Community Strategic Plan” that is supported by a Long Term Financial Plan (LTFP) and an Asset Management Strategy. Penrith City Council currently maintains a ten year LTFP that is reported and updated through the quarterly review process. The introduction of the asset renewal component of the AREAS program provides a ten year complement to existing Asset Management Strategies. Therefore while Council has in place many of the elements recommended an industry wide approach to an integrated planning and reporting framework is welcomed.
2. Legislative amendments
requiring long-term strategic asset management planning be introduced into the
Local Government Act 1993.
Comment
As mentioned above Council is already actively involved in long term strategic asset management planning, including the consideration of whole of life costing. What is being proposed is in part a requirement of Council’s Special Rate variation of 2006.
3. Councils adopt asset
management planning systems and practices that are consistent with the Local
Government Financial Sustainability Frameworks and, where applicable and
practical, the International Infrastructure Management Manual.
Comment
The recommendation requires Council to demonstrate how its Asset Portfolio will meet the service delivery needs of the community into the future. It is proposed that this would be demonstrated through:
An Asset Management policy that would be developed from a State developed Asset Management Policy. The policy would establish the objectives for service delivery, integrate asset management planning with Corporate and Financial Planning, assign accountability for service delivery and consider whole of life costing, service levels and financing options.
Asset Management Strategies that support the implementation of the Asset Management Policy and ensure future service delivery to the community.
An Asset Management Delivery Plan that is integrated with Council’s 4 year delivery program. This plan should be modelled on the approach advocated in the International Infrastructure Management Manual. The manual advocates the concept of Total Asset Management, as an integrated part of all organisational activities, and Lifecycle Asset Management where decisions are made based on costs associated with all stages of an asset’s life.
The mandating of a uniform industry wide framework for strategic asset management planning is supported.
4. A basic (core) approach
to asset management planning be the agreed minimum level for all NSW councils.
Comment
The report recommends for a first step that all Councils implement a basic or core approach to asset management planning. This would require the collection of the best available information and random condition/performance sampling, a simple risk assessment to identify critical assets, identifying existing service levels, and an assessment of future asset maintenance cashflows required to meet current service delivery (whole of life costing).
It should be acknowledged that this recommendation is aimed at ensuring that all Councils across NSW have a minimum approach to Asset Management. Council’s current approach to Asset Management surpasses this recommendation but future identified improvement opportunities will be implemented.
5. An asset management
improvement program be implemented to progressively raise asset management
planning to a level appropriate for each council.
Comment
Penrith City Council has over recent years, and most recently through the Asset Renewal Component of the AREAS program shown, an increased commitment to asset management. This increased commitment is seen as a strength by Standard and Poors during their rating review.
6. Legislative amendments
requiring ten year financial planning be introduced into the Local Government
Act 1993.
Comment
As mentioned above Council has already established the practice of 10 year LTFP and reporting through the Management Plan process. The expansion of this as a mandatory and uniform industry approach would be welcome. It should be noted that ten year financial projections are currently required to be published in the Financial Statements. While DLG states that the position paper is consistent with the State Plan, it will be important for any legislative amendments to link with the State Plan and budgetary processes.
7. An industry wide
capacity building program, including a range of training, tools, templates and
guidelines, be introduced.
Comment
The first steps in this area have already begun with the introduction of additional asset management indicators into the 2006-07 Financial Statements. The new indicators include a measure of asset renewal that has been voluntarily included in the appendix to Penrith City Council’s financial statements for the past 4 years. The industry wide capacity building program, including a range of training, tools, templates and guidelines is aimed to be achieved through the NSW Infrastructure Task Force.
As was stated in council’s submissions to the two previous papers in the reform process, commitment from the State Government to resourcing the intended programs to build the strategic and asset management capacity of local government will be vital to the success of these reforms.
Conclusion
Overall the position paper for Asset Management Planning for NSW Local Government provides, through the papers recommended actions and the NSW Infrastructure Task Force, a clear way forward for an industry wide approach to future asset management. The aim is to provide a clear framework for a uniform industry wide approach to asset management planning that will result in future long term improvements. A further report will be provided following the outcome of the consultation process. A copy of the submission will be provided to the Local Government and Shires Association and WSROC.
That: 1. The information contained in the report
on Asset Management
Planning For NSW Local Government be received. 2. A submission be made to the NSW Department of Local Government based on the commentary in the report supporting the recommendations of the Asset Management Planning for NSW Local Government position paper. |
Asset Management Planning for NSW Local
Government |
27 Pages |
Attachment |
|
Joint Media Release - Asset Management
Planning |
1 Page |
Attachment |
9 July 2007 |
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Leadership and
Organisation |
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Leadership and
Organisation
7 |
Local Government Revenue Raising Capacity |
|
Compiled by: Vicki O’Kelly, Financial Services Manager
Stuart Benzie, Rates
Administration Officer
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: Develop annual and longer-term resource plans aligned to the Strategic
Program and service specifications.
Purpose:
To advise Council
of a submission made to the Productivity Commission's inquiry into local
government revenue raising capacity. The
report recommends that the submission to the Productivity Commission's
inquiry into Local Government Revenue
Raising Capacity be endorsed.
Background
The Productivity Commission has been asked to assess local government revenue raising capacity. The Terms of Reference are included below. A copy of the Issues paper was circulated to all Councillors on 31 May 2007. The closing date for submissions was 6 July 2007 and a submission has been lodged subject to Council approval.
Scope
of the Inquiry
The terms of reference and some information about the scope of the exercise are reproduced below. The Inquiry will limit its assessment to local governments “own-source revenues”. The commission considers own-source revenue to include revenue from council rates sales of goods and services, interest income and other income. It does not include “grants and subsidies”. Nor will the commission investigate the scope for local governments to borrow.
Terms of Reference
The Productivity Commission is requested to undertake
a research study assessing local government revenue.
In undertaking the study the Commission is to examine
the capacity of local government to raise revenue including:
· The capacity of different types of councils (e.g. capital city,
metropolitan, regional, rural, remote and indigenous) to raise revenue and the
factors contributing to capacity and variability in capacity over time.
· The impacts on individuals, organisations and businesses of the
various taxes, user charges and other revenue sources available to local
government, and
· The impact of any State regulatory limits on the revenue raising
capacity of councils.
In undertaking the study the Commission is not to investigate
the scope for local governments to borrow.
The Commission is required to provide both a draft and
a final report, with the final report due within twelve months of receipt of
this reference.
The Issues paper states that “The terms of reference for the study, in essence, require the commission to assess the capacity of local governments to raise revenue from the various sources available to them; to examine the impact of State Government regulatory limits on the ability of local governments to fully utilise some of their revenue sources; and to assess the impact on various sections of these communities of the use by local governments of the various revenue raising instruments available to them.”
The Commission has identified that
“Local governments draw on a variety of revenue sources to finance their
activities. The major revenue components for local governments across
· council rates (37.3 per cent of local government revenue)
· sales of goods and services, which include fees and charges imposed
on services (28.9 per cent)
· other income, which includes developer contributions and fines (19.0
per cent)
· grants and subsidies from other tiers of government(12.1 per cent)
· interest income (2.7 per cent).”
According to the Australian Bureau of Statistics (ABS), total revenue for the sector increased from $13.4 billion to $23.9 billion between 1996-97 and 2005-06, representing an average annual growth rate of 6.6 per cent. Over the same period, expenditure rose from $11.0 billion to $20.4 billion, representing an average annual growth rate of about 7.0 per cent (figure 1).
Local governments are facing the issue of balancing the available funds with the increasing expectations of the community and aging infrastructure.
Issues and questions identified in the Issues paper are:
Revenue
· trends in local government revenue
· capacity to raise own-source revenues
State and government
regulatory constraints
· Land rating and valuation methods
· Rate pegging
· Concessions and exemptions
· Setting fees and charges
Impacts on individuals, organisations
and businesses
· Council rates
· Sales of goods and services
· Developer charges and contributions
· Fines and other pecuniary penalties
· Interest income
Factors influencing
expenditure and revenue raising
· Operational efficiency of local governments
· Service levels and pricing
· Financial and asset management skills
Both the Australian Local Government Association (ALGA) and the Local Government and Shires Association (LGSA) will be making submissions. The submission from the LGSA draws heavily on the findings of the Independent Inquiry into the Financial Sustainability of Local Government (Percy Allan Inquiry). We believe that the submission from the ALGA will give a national perspective and will focus on the levels of the Financial Assistance Grants and other grants.
After discussions with Shaun McBride of the LGSA it was decided to focus our submission on some of the more specific issues that aren’t addressed in the submissions made by the ALGA and the LGSA.
Penrith
City Council’s Submission
The substance of the submission made to the Inquiry is made up as follows:
Rating
Rate
Pegging
The revenue raising capacities of NSW councils are significantly restricted by the current rate pegging system. NSW is the only state in which rate pegging is imposed and its effects are being felt by many councils.
Under the current legislative framework the NSW State Government sets a limit on the total amount of income a council can raise from rates. A council must not make rates and charges for a year that produces general income above the notional general income of the council from the previous year, plus the percentage variation allowed by the Minister for Local Government. The notional general income is the amount that would have been derived if the same rates and charges used in the previous year were applied to council’s new rating base the following year.
The notional yield calculation is a complex process that fails to correlate rate income variations with rising costs faced by councils. Council’s operating expenses, service costs and infrastructure maintenance costs should be considered when setting rate pegging limits. For example, award wage increases over the past three years have seen wages rise by 4% (2004-05), 3.5% (2005-06) and 3% (2006-07) while Ministerial rate increases have been set at 3.5%, 3.5% and 3.6% respectively. While it may be argued that these rate increases were commensurate with wage rises, they did not compensate for other factors such as the rising costs of infrastructure maintenance. To fund such works or projects, councils are reliant on special rate increases that may only be applied following a successful application to the Minister for Local Government.
It is also worth noting that the NSW Local Government Act 1993 requires councils to include a 3 year budget in the Management Plan however under the current rate-pegging system rate variations are announced on an annual basis making preparation of the management plan difficult. As stated in Council’s submission to the NSW Department of Local Government recent reform papers, the current system is not well adapted to the need for effective and integrated long term financial planning.
Differential
Rates
In regard to the application of NSW rating legislation, councils are unreasonably restricted in their ability to apply differential rating methods. The NSW Local Government Act 1993 sets out the conditions under which properties are to be categorised for rating purposes. Properties are to be categorised as Residential, Farmland, Business or Mining. A Council may determine a sub-category for one or more of these categories under the following criteria:
(a) For the category “farmland” – according to intensity of land use, the irrigability of the land or economic factors affecting the land.
(b) For the category “residential” – according to whether the land is rural residential land or is within a centre of population.
(c) For the category of “mining” – according to the kind of mining involved.
(d) For the category “business” – according to a centre of activity.
Should a council wish to make a separate rate for certain types of properties that better reflects their demand on council resources or allows for greater flexibility in the application of rating principles, the options available are limited. For example, it is very difficult for councils to rate commercial and industrial properties separately as the legislation only allows business sub-categories to be created according to “centre of activity”.
Pension
Rebates
Another issue of concern is council’s limited capacity to assist eligible pensioners. The maximum pension rebate amount for rates and charges is currently $250. Councils receive reimbursements of 50% from the State Government and 5% from the Federal Government, leaving the balance of 45% to be funded by council.
The total rebate amount of $250 has been fixed for many years. Penrith City Council is finding that many pensioners are struggling to pay their rates and domestic waste charges as the cost of living continues to increase. Penrith City Council is concerned that pensioners are not receiving increased benefits in line with the cost of living. Councils do not have the financial capacity to provide further assistance to pensioners. Penrith City Council’s position is that pensioner rebates should be increased and full funding of the subsidy should come from Federal and State Governments. Perhaps a system that adjusts the mandatory rebate according to CPI changes or more appropriately, rate increases, would be more suitable.
Developer Contributions
The Inquiry raises a number of questions regarding the extent that developer contributions are employed, the legislated constraints and the most appropriate way to recover the costs of new and upgraded assets. An excerpt from a submission made by Penrith City Council to the New South Wales Department of Infrastructure, Planning and Natural Resources Section 94 Contributions and Development Levies Taskforce in 2003 is below.
While the role of Section 94 is to provide
funding of infrastructure for new development, it is not permitted to
contribute toward recurrent costs, including the maintenance of these assets.
Therefore Council is required to meet the maintenance costs of an increasing
asset base via rates revenue. Additional rate income from new properties in
developing areas assists in meeting these costs.
A number of NSW Councils have experienced
problems maintaining realistic values in their contributions plans over time.
This is particularly relevant for Councils with new release areas in
While methods such as CPI are utilised to
moderate the impacts of inflation, it is clear the issue of land cost has such
an impact as to make this method ineffective as a comprehensive application …
Other mechanisms which might be of advantage to
consider include:
· Exploring opportunities for inter-section 94 fund borrowings to
respond to pressing infrastructure priorities over time within an LGA;
· Special government loan borrowing programs to assist early delivery
of infrastructure, particularly to kick-start new urban areas;
· To separately deal with
major land transfers related to negotiated biodiversity conservation outcomes
and other environmental imperatives as a precursor to the rezoning process.
Penrith
City Council is a rapidly growing council and has been identified by the
Council advocates the use of Developer Agreements as an option to deliver required public facilities and services in developing areas where there is a single ownership/developer interest as it enables development contributions to be obtained from planning (developer) agreements without limiting Section 94. The contributions so sought may be used for, or applied towards, any public purpose, including the funding of recurrent expenditure and monitoring the impacts of development.
While there have been recent reforms in Section 94 legislation there is still no legislative ability to capture the increased value of land that results form rezoning to allow new development. Council sees “value capture” as an equitable and practical method of funding, paid by the major beneficiary of the rezoning that can be directed to construction of new infrastructure.
The LGSA submission will include
reference to a number of research papers on the topic of developer
contributions produced for the Percy Allan Inquiry including the paper prepared
by Professor Brian Dollery from the
Infrastructure Backlog
The Percy Allan inquiry identified an infrastructure funding backlog of $6.3 billion across the State. Penrith City Council has identified the problem of maintaining infrastructure to satisfactory standards and has made a commitment to provide increased levels of funding for asset renewal over a number of years. In 2006 Council was successful in an application for a Special Rate Variation of 5.2% above the allowable Ministerial rate rise to fund, in part, asset renewal. To provide adequate funding for infrastructure renewal without such an increase would mean a wholesale review of, and cuts to services that the community relies on council to provide.
Ability to reduce unit costs of operations
Limits on the capacity to raise “own- source” revenues can be offset by more efficient operations and the Productivity Commission has raised questions regarding local governments ability to reduce the unit costs of operations.
Council’s comprehensive service specification program actively assists in identifying and reviewing the unit costs of operations. Opportunities for resource sharing with other local government authorities are considered and Council has had considerable success with joint tenders achieving significantly lower costs for some major expense items including telecommunications along with significant savings expected as a result of the recent asphalt tender.
Ability to adequately plan for the future
A greater commitment is needed from the State Government to a longer term funding arrangement for Council programs. Council’s management spends an inordinate amount of time lobbying for the continuation of funding for various programs and projects (roads, community services etc); time which could be better spent on planning and delivering those same programs in a more structured way if the certainty of future funding was present. Similarly, State Government commitment to approval for Council’s longer-term borrowings would provide more certainty about Council’s capacity to deliver programs. Any guidelines that the State Government may wish to set to enable this to happen could be dependent upon Council’s meeting certain financial benchmarks, a strong credit rating for example.
Financial and Asset management skills
An area
of concern raised in the issues paper was the need to identify the extent of
difficulties in attracting and retaining suitably qualified experts in
financial and asset management. There
are increasing difficulties in attracting high calibre staff. As a regional
city Penrith has the advantage of a large pool of suitably qualified people to
draw upon but the proximity to
Conclusion
The Inquiry has specific terms of reference and has received a number of submissions from local governments associations, local government authorities and individuals. The draft report will be released in October 2007 and the final report is scheduled for April 2008. Further reports will be made to Council following the release of the reports.
That: 1. The information contained in the report
on Local Government
Revenue Raising Capacity be received 2. The submission to the Local Government Revenue Raising Capacity inquiry
be endorsed. |
There are no attachments for
this report.
9 July 2007 |
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Leadership and
Organisation |
|
Leadership and
Organisation
8 |
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 Development Engineering Service Specification (Environmental Planning Manager) for
consideration. The report recommends
that this service be adopted.
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, 54 consolidated 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.
Council has approved the inclusion of key information from the service specifications in its 2007-08 Management Plan.
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 2005-06 and 2006-07 Management Plans.
A more comprehensive review of all service levels has now commenced, with the initial results being brought to Council in the context of the 2007-08 Management Plan and budget development. The service review process also identifies areas of service improvement which should be made within existing means and a number of such improvements have been included in the 2007-08 Management Plan.
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, this 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
The draft service specification is included in the attachment to tonight’s business paper.
As previously agreed, it is intended to make specifications for all services in Council’s 2007-08 Management Plan available for the public through Council’s website as linked documents. This approach is currently being developed.
To assist in Council’s consideration of the draft specification submitted tonight, an executive summary is provided as part of 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.
Summary of the Development Engineering
Service |
||||||
1. Service Description |
The Development Engineering service provides a certification,
compliance and advice service for engineering works and civil infrastructure
in the Penrith Local Government Area. |
|||||
2. Link to Strategic Program |
Issue 15 New Release Areas |
TA 15.4 – Timely
delivery of services to new release areas is being secured |
CA 15.4A.-.Prepare and
implement services and infrastructure delivery plans for each new release
area that ensures that the early establishment of services and facilities
match community needs |
|||
Issue: 26
Civil Infrastructure Management |
TA 26.1 - An asset
management strategy is in operation for civil infrastructure that optimises
its use and maintains it agreed standards fit for its contemporary purpose. |
CA 26.1A - An Asset
Management Strategy for Civil Assets is developed, maintained and
implemented. CA 26.1B - New drainage
infrastructure is designed and constructed to meet agreed capacity standards. |
||||
3. Service Objectives |
· Provide Engineering advice and input into Policy Development and
Release Area Planning to support the timely delivery of release areas. · Coordinate, monitor and review Section 94 developer contributions
plans, meeting Council's statutory obligations. · Ensure that Development Engineering inputs into the development
approvals and planning policy meeting legislative requirements, minimising
Council’s exposure to risk. · Ensure compliance with Council’s adopted engineering standards and
specifications and conditions of consent prior to issue of Subdivision
Certificates, Occupation Certificates and Construction Certificates. · Review contemporary engineering standards to ensure civil
infrastructure meets agreed Council standards and fit for contemporary purpose.
|
|||||
4. Scope of Work |
Key activities include: § Engineering
Construction Certificate (CC) Assessment. 115 pa § Engineering
Referrals Assessment – 550 pa § Post
Development Application Determination
700 inspections pa § Occupation
and Subdivision Certificate Referrals - 100 pa § Developer
Contributions Coordination - 15 Plans monitored § Input
to Release Area Planning - 10 release areas. § Engineering
Standards and Policy Review and Development Recent projects include: - - - These
release areas are planned to deliver over 13,500 new dwellings over the next
15 years and will play a significant role in providing housing and employment
lands across Penrith. |
|||||
5. KPI’s Key Performance Indicators |
Key Performance Indicators |
2004-05 Actual |
2005-06 Actual |
2006-07 Target |
||
% of Construction Certificates issued in 28 days |
87% |
95% |
90% |
|||
6. Service Funding
The
2006 – 2007 budget for
the Development Engineering Service is $
372,694. This amount includes all operating costs. This amount does not include capital costs
unless otherwise noted.
Service |
2006-2007
Budget |
Employee Costs |
$290,061 |
Materials |
$9,459 |
Vehicle Costs |
$30,332 |
Consultancy (ie section
94) |
$42,842 |
Net Cost
of the Service |
$ 372,694 |
7. Service Summary Chart
That: 1. The information contained in the report
on Service
Specification Program be received 2. The specification for the Development Engineering Service be adopted |
Draft Development Engineering Service
Specification |
35 Pages |
Attachment |
Urgent Reports
MASTER
PROGRAM REPORTS
CONTENTS
Item Page
9 Status of National Growth Area
9 July 2007 |
|
The City in
its Broader Context |
|
The City in its
Broader Context
9 |
Status of National Growth Area |
|
Compiled by: Paul Battersby, Senior Environmental Planner
Authorised by: Roger Nethercote, Environmental Planning Manager
Strategic Program Term
Achievement: Agreement has been reached with State
Government agencies to provide mutually agreed services and facilities to the
City consistent with its growing requirements.
Critical Action: Determine and prioritise the services and facilities needed to allow the
City to perform its metropolitan and regional roles.
Purpose:
To inform Council
of the status of the National Growth Area
Background
Council resolved at the Policy Review Committee meeting of 19 February 2007 to participate in the National Growth Area Alliance.
The
National Growth Areas Alliance has been formed to represent the interests of
more than thirty fast growing metropolitan fringe councils across
SGS
Economic and Planning Consultants and Australian Social and Recreation Research
Pty Ltd have been engaged to undertake national research and prepare a
cornerstone advocacy document for the
The quantitative component of the research has been completed and the key results are:
·
· 55% of
· 50% of all future growth in population over the next 15 years will be accommodated in Alliance LGAs;
· In 2001,
· A lower ratio of community service / education / health jobs per capita of 1:20 in Alliance LGAs, when compared to the national average of 1:14;
· Lower levels of Commonwealth spending in Alliance LGAs, when compared to the National average, e.g. despite our current population proportion of 22.6%, Alliance LGAs receive only
- 12.3% Financial Assistance Grants funding
- 16.9% Stronger Families and Communities Strategy funding
- 10.9% Roads to Recovery funding
- 14.9% Strategic Regional Program funding.
It
should be noted that these statistics are aggregated from the thirty councils
across
The qualitative element of the research is being finalised, involving Australian Social and Recreational Research Pty Ltd (ASR) in conjunction with SGS Economics. They are interviewing a number of General Managers from Growth Area Alliance Councils from each State, to provide further insight into the quantitative research highlighted above.
Current
Status
The
In this regard, Council, at the Policy Review Committee meeting of 4 June 2007, resolved that:
“1. The information
contained in the report on Status of National Growth Area
2. The
Mayor represent Council in discussions with the Mayors of the other National
Growth Area Alliance Councils in Western Sydney to consider infrastructure
priorities to support urban growth and their advocacy to Government.
3. A
further report outlining proposed regional and local communication strategies
be presented to the next available Policy Review meeting.”
The
Mayor, General Manager, and Director City Strategy attended a meeting of
Western Sydney and South Western Sydney Growth Councils (namely Baulkham Hills,
Commentary
The
2006 Census indicates that the population of the six Western Sydney councils
(Baulkham Hills,
Council
has raised on a
number of occasions to State Government issues such as the need for expanded
swimming pool facilities, commercial and commuter car parking, Regional and State
road improvements, community service assistance, children’s services support,
district level recreation facilities, and environmental improvements to the
Nepean River. The future growth slated
for Penrith in the State Government’s Metropolitan Strategy including the
established areas and commercial centres will place further demands on these
and other facilities in the City.
It is
reasonable to expect funding support as a consequence of Penrith accommodating
its share of the nation’s population growth.
.
To facilitate a media campaign, the Alliance has requested member Council’s to identify infrastructure delivery issues and difficulties being experienced and likely to be experienced in coming years as urban growth continues in response to the nation’s population growth.
In this regard, we are advancing the
development of a Penrith Regional City Infrastructure Strategy which will
highlight existing backlog areas and identify major new infrastructure,
including civil, social, community and environmental requirements to support
Penrith’s growth as a major centre in outer
It is proposed that the Alliance Secretariat, Whittlesea Council in Victoria, with the Consultants CPR and SGS facilitate approaches to the Federal Government at a national level and this is expected to commence in late July/early August. Further details of this are expected shortly.
It is
also suggested
that each council determine its own approach to the candidates in the
forthcoming Federal election to highlight individual LGA issues of
relevance. There is also the option for
Councils to pursue other local initiatives including public meetings,
distribution of material to community groups and other local interests. The extent to which this is taken up would depend
upon the reaction of the local candidates to the issues outlined above.
To date the Director ~ City Strategy has
had the opportunity to discuss the
The Director ~ City Strategy has also
held discussions with representatives of the Urban Development Institute of
Australia and the Penrith Chamber of Commerce about the Alliance’s agenda. These organisations have expressed a
willingness to work with Council to assist in conveying an appropriate message
to the Federal Government and Federal Opposition.
Conclusion
There is merit in Council continuing to participate in the National Growth Area Alliance ‘Fund the Gap’ campaign. The campaign advocates for increased Federal and State Government support to equitably address the infrastructure needs of past and expected population growth in the City. The Federal Government should play a greater role than it historically has in funding the infrastructure requirements of urban development, particularly in areas where current State Budgets and developer funding mechanisms have proven to be inadequate.
It is
suggested that the Mayor be authorised to represent Council in implementing the
That: 1. The information contained in the report
on Status of
National Growth Area Alliance be received 2. Council continue to participate in the National Growth Area Alliance 3. The Mayor be authorised to represent Council in implementing the National Growth Area Alliance initiatives 4. Council
inform the other Western Sydney Councils involved in the |
There are no attachments for
this report.
ATTACHMENTS
Date of Meeting: Monday 9 July 2007
Master Program: Leadership and Organisation
Issue: Leadership
Report Title: Asset
Management Planning For NSW Local Government
Attachments: Asset Management Planning for
NSW Local Government
Joint Media Release - Asset
Management Planning
9 July 2007 |
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Attachment 1 -
Asset Management Planning for NSW Local Government |
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|
9 July 2007 |
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Attachment 2 -
Joint Media Release - Asset Management Planning |
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ATTACHMENTS
Date of Meeting: Monday 9 July 2007
Master Program: Leadership and Organisation
Issue: Program
Selection and Delivery
Report Title: Service
Specification Program
Attachments: Draft Development Engineering
Service Specification
9 July 2007 |
|
Attachment 1 -
Draft Development Engineering Service Specification |
|
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|
[1] Ref AS/NZS 4360
[2] CPA Australia members handbook 2004
[3] A new international standard for risk management (ISO31000) is to be released, as a draft, in July-August 2007. The draft ISO31000 is based on AS/NZ4360.
[4] The
TP[5]PT Barrett, Pat, (Auditor-General of
[6] 80% of risks faced by organisations are NOT insurable – “Chanceor Choice”, SOLACE