Agenda of Policy Review Committee Meeting

UNCONFIRMED MINUTES

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

ON MONDAY 28 JULY 2008 AT 7:36PM

PRESENT

His Worship the Mayor Councillor Greg Davies, Councillors Jim Aitken OAM, Kaylene Allison, David Bradbury (arrived 7:38pm) , Lexie Cettolin, Kevin Crameri OAM, Mark Davies, Ross Fowler OAM, Jackie Greenow, Karen McKeown, Susan Page, Garry Rumble, Steve Simat and John Thain.

Councillor Steve Simat left the meeting, the time being 7:37pm.

APOLOGIES

PRC 53 RESOLVED on the MOTION of Councillor Jackie Greenow seconded Councillor Susan Page that apology be received and accepted from Councillor David Bradbury.

LEAVE OF ABSENCE

Leave of Absence was previously granted to Councillor Pat Sheehy AM for the period 2 July 2008 to 4 August 2008 inclusive.

CONFIRMATION OF MINUTES - Policy Review Committee Meeting - 7 July 2008

PRC 54 RESOLVED on the MOTION of Councillor Garry Rumble seconded Councillor Ross Fowler OAM that the minutes of the Policy Review Committee Meeting of 7 July 2008 be confirmed.

DECLARATIONS OF INTEREST

There were no declarations of interest.

SUSPENSION OF STANDING ORDERS

PRC 55 RESOLVED on the MOTION of Councillor Jackie Greenow seconded Councillor Mark Davies that Standing Orders be suspended to allow a member of the public to address the meeting, the time being 7:38 pm.

Councillor David Bradbury arrived at the meeting, the time being 7:38 pm.

Mr Geoff Brown

Item 2 - St Marys Release Area - Submission of the Western and Central Precinct Plans

Geoff Brown, representing Western Sydney Conservation Alliance spoke in opposition of the proposed exhibition of the draft Western and Central Precinct Plans. Mr Brown raised issues in regards to the public having appropriate time to be able to comment on these proposals, and also for Councillors to have the time and information to understand all the proposed approval processes occurring. Mr Brown requested that Council postpone the exhibition until such time that Council has resolved to approve the Development Application for Bushfire Hazard reduction works within the Western Precinct, the SREP 30 Amendment process has finished, Biodiversity Certification has been decided and that the DECC has gazetted the Regional Park Plan of Management. Mr Brown also asked Council to consider where the 100 hectare commitment from the Federal Government and Delfin Lend Lease to provide land for recreational purposes is and where the commitment of funding towards this is provided for. Mr Brown also asked Council to consider increasing the Regional Park in the area near Xavier College.

Councillor Steve Simat returned to the meeting, the time being 7:50 pm.

RESUMPTION OF STANDING ORDERS

PRC 56 RESOLVED on the MOTION of Councillor Ross Fowler OAM seconded Councillor Lexie Cettolin that Standing Orders be resumed, the time being 7:51 pm.

MASTER PROGRAM REPORTS

Leadership and Organisation

7 2008 Strategic Community Survey

Simon Pomfret - Executive Director, IRIS Research, gave a presentation on the results of the 2008 Strategic Community Survey. The information in the Survey detailed the methodology used for Penrith City Council, and the responses from residents about their aspirations and perceptions of the both the City as a whole and local neighbourhoods.

PRC 57 RESOLVED on the MOTION of Councillor Garry Rumble seconded Councillor Susan Page that the information contained in the report on the 2008 Strategic Community Survey be received.

Councillor Mark Davies left the meeting, the time being 8.00 pm.

Councillor Mark Davies returned to the meeting, the time being 8:05 pm.

Councillor Jim Aitken OAM left the meeting, the time being 8:25 pm.

Councillor Jim Aitken OAM returned to the meeting, the time being 8:29 pm.

The City in its Broader Context

1 Rationalisation of draft Local Environmental Plans applying to rural and industrial land

PRC 58 RESOLVED on the MOTION of Councillor Karen McKeown seconded Councillor Mark Davies

That:

1. The information contained in the report on Rationalisation of draft Local Environmental Plans applying to rural and industrial land be received.

2. Penrith Local Environmental Plan 201 (Rural Land) draft amendment No.4; Penrith Local Environmental Plan 201 (Rural Land) draft amendment No.7 and the Penrith Local Environmental Plan relating to Blaikie Road, as exhibited in 1990 be abandoned, effective from the first date that draft Penrith Local Environmental Plan 2008 is publicly exhibited.

3. Penrith Local Environmental Plan 1998 (Urban Land) draft amendment No. 10 North Penrith and draft Penrith Local Environmental Plan 1999 (Flora and Fauna Conservation) be abandoned only to the extent that they apply to land subject to draft Penrith Local Environmental Plan 2008, effective from the first date that draft Penrith Local Environmental Plan 2008 is publicly exhibited.

The City as a Social Place

2 St Marys Release Area - Submission of the Western and Central Precinct Plans

PRC 59 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Ross Fowler OAM

That:

1. The information contained in the report on St Marys Release Area - Submission of the Western and Central Precinct Plans be received.

2. Council publicly exhibit the draft Western and Central Precinct Plans in accordance with the provisions of Sydney Regional Environmental Plan No. 30 – St Marys.

3. Land owners in the vicinity of the Western and Central Precincts be advised of the exhibition details.

4. Blacktown City Council and relevant government agencies be advised of the proposed public exhibition of the draft Western and Central Precinct Plans.

5. A further report be submitted to Council outlining the proposed commitments to be included in the Planning Agreement for the delivery of community facilities and other infrastructure required for the development.

6. Council make urgent representations to the RTA and the Local State Members for Londonderry and Penrith regarding Sherringham Road signalisation works.

7. A further report be presented to Council considering forward funding options for the signalisation of the intersection at the Northern Road and Sherringham Road.

8. Council liaise with the Department of Planning to exhibit the SREP 30 Amendment along with the Draft Precinct Plan for a minimum period of 42 days.

Councillor Jim Aitken OAM left the meeting, the time being 8:38 pm.

Councillor Jim Aitken OAM returned to the meeting, the time being 8:40 pm.

Councillor Ross Fowler OAM left the meeting, the time being 8:56 pm.

Councillor Ross Fowler OAM returned to the meeting, the time being 8:58 pm.

3 South Werrington Urban Village - Public Exhibition of Draft Local Environmental Plan and Penrith Development Control Plan Amendment

PRC 60 RESOLVED on the MOTION of Councillor Karen McKeown seconded Councillor Ross Fowler OAM

That:

1. The information contained in the report on South Werrington Urban Village - Public Exhibition of Draft Local Environmental Plan and Penrith Development Control Plan Amendment be received.

2. Council adopt Penrith Local Environmental Plan 2008– South Werrington Urban Village, incorporating the amendments outlined in this report, and refer the Plan to the Department of Planning and the Minister for gazettal in accordance with the Environmental Planning and Assessment Act 1979 and Regulations 2000.

3. Council adopt Penrith Development Control Plan 2006 Amendment – South Werrington Urban Village, incorporating the amendments outlined in this report, in accordance with the Environmental Planning and Assessment Act 1979 and Regulations 2000.

4. The Penrith Development Control Plan 2006 Amendment – South Werrington Urban Village take effect upon gazettal of Penrith Local Environmental Plan 2008 – South Werrington Urban Village.

5. Those persons who made submissions to the exhibition of the draft Plans be advised of Council’s decision.

4 Youth Advisory Committees

PRC 61 RESOLVED on the MOTION of Councillor Susan Page seconded Councillor Jim Aitken OAM

That:

1. The information contained in the report on Youth Advisory Committees be received.

2. That Council endorse the holding of a Penrith Youth Summit in 2009, and reallocate funds in the 2008/2009 budget for the WSROC YWLP for this purpose.

5 Universal Design Playgrounds

PRC 62 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Jackie Greenow

1. That the information contained in the report on Universal Design Playgrounds be received.

2. A further report be presented to Council to advance the preferred choice of site for the universal design playground and the associated funding options.

6 Rowing Training and Development Facility - Weir Reserve

PRC 63 RESOLVED on the MOTION of Councillor Karen McKeown seconded Councillor Ross Fowler OAM

That:

1. The information contained in the report on Rowing Training and Development Facility - Weir Reserve be received.

2. Council endorse the progression of the proposal to develop the Rowing Development and Training Centre at Weir Reserve through the Rowing Development and Promotional Committee and the associated sub-committees as detailed in this report.

Leadership and Organisation

8 Constitutional Recognition for Local Government

PRC 64 RESOLVED on the MOTION of Councillor Kevin Crameri OAM seconded Councillor Jim Aitken OAM

That:

1. The information contained in the report on Constitutional Recognition for Local Government be received.

2. Council reaffirm its support for the constitutional recognition of local government.

3. Council respond to the ALGA questions and objectives in the terms outlined in this report.

4. The matter be referred to the next Executive Meeting of WSROC for discussion on ways in which WSROC might be able to assist in this campaign, including the possibility of conducting joint resident conversations on behalf of WSROC member councils.

5. Local State and Federal Members of Parliament be provided with a copy of Council’s submission to the Australian Local Government Association.

6. A further report be submitted to the first meeting of the “new Council” following the Local Government elections to be held on 13 September 2008, in regard to nomination of delegates to attend the Local Government Constitutional Summit to be held in Melbourne from 8-11 December 2008.

9 Revised Model Code of Conduct

PRC 65 RESOLVED on the MOTION of Councillor Jim Aitken OAM seconded Councillor Susan Page

That:

1. The information contained in the report on Revised Model Code of Conduct be received.

2. The Council adopts the Model Code of Conduct as the Council’s Code of Conduct, incorporating the suggested amendment contained within this Report.

QUESTIONS WITHOUT NOTICE

QWN 1 Status of proposals, for inclusion on the State Government’s
Metropolitan Development Program

Councillor Ross Fowler OAM requested a urgent memo reply regarding the status of the proposals, for inclusion on the State Government’s Metropolitan Development Program, of Fernhill and former Air Services Australia land at Cranebrook. Also, information regarding the biodiversity significance of the former Air Services Australia land at Cranebrook, and the potential for ‘listing’ the site to ensure its protection.

QWN 2 Tree Removal – 27 Panorama Avenue, Leonay

Councillor Karen McKeown requested an urgent report concerning the history of the tree removal application for 27 Panorama Avenue, Leonay and the information communicated to residents.

QWN 3 Drainage Line Issues – 61 Gascoigne Street, Kingswood

Councillor Kevin Crameri OAM requested a report on the drainage line issues at 61 Gascoigne Street, Kingswood, before the conclusion of the term of the current Council.

There being no further business the Chairperson declared the meeting closed the time being 9:32pm.

*Policy Review Committee Meeting*	*18 August 2008*
*Leadership and Organisation*

Leadership and Organisation

2007-2008 Management Plan - June Quarter and End-of-Year Review

Compiled by: Geraldine Brown, Budget Accountant

Ken Lim, Organisational Development Co-ordinator

Authorised by: Alan Stoneham, General Manager

Barry Husking, Chief Financial Officer

Strategic Program Term Achievement: Council's operating culture is flexible, efficient, integrated and aligned to Council's strategic objectives and program delivery.

Critical Action: Prepare, implement and review management plans and processes aligned to and consistent with Council’s Strategic Plan and Program.

Presenters: Alan Stoneham, General Manager and Barry Husking, Chief Financial Officer - Penrith City Council - 2007-2008 Management Plan June Review

Purpose:

To present the June Quarter and End-of-Year review of Council's 2007-2008 Management Plan. The report recommends that the review be adopted, including revised estimates and expenditures as detailed in the report. Due to the size of the review document, copies are provided to Council under separate cover.

Background

In accordance with the Local Government Act 1993, the 2007-08 Management Plan Performance Report, for the period ending 30 June 2008, is presented tonight for Council’s consideration.

This is the fourth and final quarterly progress review of Council’s 2007-08 Management Plan, which was the third year of Council’s program for its Strategic Plan for the City of Penrith 2005-2009, Penrith City – The Competitive Edge.

Managers have provided details of progress in accordance with their assigned accountabilities. This includes delivery of the ongoing requirements of services, progress of annual tasks and projects and performance against budget. Commentary has also been provided on key achievements for the year, as well as issues arising that have impacted on the delivery of the annual program.

The General Manager’s report on the 2007-08 year is included in the review document. As the report indicates, progress in the fourth quarter completed a year of achievements across all Services in the Management Plan which constitutes a solid outcome for 2007-08, as the third instalment of Council’s 2005-2009 Strategic Program.

The Financial Services Manager’s report is also contained within the review document, and includes information on budget performance, significant issues and proposed variances.

The opportunity is available for Council tonight to seek clarification or elaboration on particular matters in any area of the program.

Presentations by the General Manager and Chief Financial Officer

As Council has earlier agreed to receive a formal presentation at the mid-year and end of year reviews, the General Manager and the Chief Financial Officer will make a brief presentation which will not only provide detail of the key components of this review but will also provide a retrospective of the key achievements of the current Council over their term.

Financial Position

The 2007-08 Financial Statements are currently being completed and will be presented to Council in September and include a detailed explanation of Council’s financial position. An overview of some of the key draft figures and indicators will be included in the presentation to tonight’s meeting.

The quarterly review process focuses mainly on performance against budget. Details of significant variations are included in the review document. The status and final cost of all 2007-08 projects is also included, as well as a list of incomplete works that are recommended for revoting to the 2008-09 Management Plan. All actual figures are subject to end-of-year adjustment and audit.

During 2007-08 a number of revotes from general revenue totalling $790,000 were proposed and approved by Council as part of the quarterly review process. These revotes were scrutinised as part of that review process and identified as continuing high priority tasks. As part of the June review, these have again been reviewed, and no change in that previously identified high priority has occurred.

At this stage it is anticipated that the result will be a small surplus compared to budget of $47,899, but again this is subject to year end processing and checking. This predicted surplus is made up of a number of both positive and negative variances and is after allowing for works proposed for revote. This result follows substantial additional allocations of funds during the year to Ripples ($489,000 March Review), the Children Services Cooperative ($220,000 December Review), the Election and Legal Reserves ($100,000 and $60,000 respectively September Review).

Allocation of Surplus to Reserve

Long Term Financial Modelling indicates that continuing the current service levels and programs will result in a 2009-10 having an initial significant deficit. For this reason it is proposed to allocate $500,000 identified as surplus funds in the 2007-08 end of year review to Reserve. This reserve could then be used to fund projects in 2009-10 that would usually be funded by general revenue, thus reducing the predicted deficit for this year by $500,000.

The proposed year end budget position of a surplus of $47,899 is after a number of recommended allocations and assumes that the recommendations included in this report and in other reports to tonight’s meeting are endorsed. The $47,899 projected surplus is made up as follows:

$000’s

Original budget surplus......................................................................................................... 15.2

1st Quarter budget variations adopted by Council ................................................................ 49.7

2nd Quarter variations adopted by Council......................................................................... (39.9)

3^rd Quarter adjustments previously adopted by Council..................................................... (525.6)

June Review - proposed.................................................................................................... 548.5

Projected Budget Year End Surplus…………………………………................................. 47.9

Considering the pressures on this budget during the year caused by the decline in building and development activity and the additional allocations made during the year this is an excellent result. At the March quarterly review a deficit of $501,000 for 2007-08 was predicted with an indication that savings in operational areas still to be identified would be likely to eventuate to address this deficit at year end. The majority of the savings achieved in the last quarter of 2007-08 giving the year end surplus are in the areas of employee costs, including superannuation and workers compensation premiums, and additional grant funding. Further details of the savings and variations made in the June quarter are included in the review document. A further report to Council, in conjunction with the report on the Annual Financial Statements in September, will confirm the budget position.

The more significant variations (F – favourable, U- unfavourable) for the quarter include:

$000’s

Road Reconstruction ........................................................................................................ 341 F

Net Employee costs .......................................................................................................... 266 F

Debt Servicing................................................................................................................... 238 F

Insurance Excess-Outstanding Claims Liability.................................................................... 237 F

Fringe Benefits Tax............................................................................................................ 114 F

Transfer to Reserve for 2009-10 projects.......................................................................... 500 U

Interest on Investments...................................................................................................... 291 U

Development Related Income............................................................................................ 226 U

These together with minor variations and reallocations, are discussed in detail in the Financial Services Manager’s report in the summary review document. Commentary is provided below on the more significant issues in the review.

Employee Costs

Employee costs are the single biggest item of expenditure in the budget. A comparison of the final results for 2007-08 against budget estimates for these overall showed saving of $1.1m (1.7%) in employee costs from a total employee costs budget of $61.7m. Across any year there will also be occasions when there is a delay in filling vacancies and some savings originated from these occurrences. This area was again impacted by the resignation/retirement of a number of long serving employees. These payments were $1.7m above the budgeted amount. Obviously this is a difficult area to accurately predict however modelling of the available data suggests that this trend will continue for the next few years.

The financial year 2007-08 again saw an increase in costs relating to the resignation of a number of long serving employees. These costs were able to be met without the need for a transfer from the Employee Leave Entitlement Reserve. The reserve currently holds funds equivalent to 18.9% of entitlements and it is planned that this will increase to 20.3% in 2008-09. Council policy is to maintain an amount of 20%, averaged over three years, of leave entitlements (excluding annual leave) in the Employee Leave Entitlements Reserve. Analysis of employee leave entitlements, known and probable retirements resulted in the development of a strategy to bring the reserve back to the agreed 20% over the next two to three years that required a minimum $200,000 transfer to the reserve in 2007-08 (through salary savings), and the inclusion of an annual $200,000 transfer to the reserve in the 2008-09 and 2009-10 base budgets. In keeping with this strategy, a transfer of $237,600 salary savings to the ELE Reserve was made in 2007-08.

The premium for workers compensation insurance decreased in total by $560,636 compared to the original budget due to a combination of a change in the factors used by WorkCover to calculate the premium and recent claims history. The final notification of the additional premium was received at the end of June and the premium was subject to review until that time.

Superannuation costs for 2007-08 were $702,598 under budget. These savings have a direct correlation with the salary savings identified throughout the year. The reintroduction of full rates for members of the defined benefits scheme from 2008-09, and the increasing percentage of employees covered by the 9% superannuation guarantee levy is expected to increase the superannuation expense in future years.

Interest on Investments

The majority of this variance relates to the write-down of one of Council’s investments at year end. As reported to Council previously Standard & Poors revised the credit rating of the CLEAR CDO and downgraded it from B+ to B. This downgrade has significantly impacted the marketable or resale value of the CDO. The downgrade had taken affect for 30 June 2008 and the current market value of the CDO is $123,341. The impact of this write down on the general fund was $329,000.

To date this is a paper loss only and while that is not an assurance that it will not translate into a real loss in the future it is important to emphasise that currently no defaults have been experienced on the underlying investment and as it stands the whole $1,000,000 of the investment will be returned on maturity. In addition to this the quarterly interest payments on this investment continue to be made in full and on time.

Road Reconstruction Project

A late grant of unallocated funds from the RTA was received in June 2008 for $300k in relation to works in Forrester Road. This work had been completed during 2007-08 using general revenue funding and the receipt of the grant at the end of the year enabled the return to surplus of the $300k together with a minor saving of $41,494 from the project.

Insurance Excess – Outstanding Claims Liability

Each year the liability for outstanding insurance claims is estimated and the movement in 2007-08 reflects a decrease in this liability for Council.

Revotes

There are a number of significant projects totalling $6.96m recommended for revote in this final quarter of 2007-08. These revotes are in addition to the $14.8m revotes to March 2008 which have already been included in the original 2008-09 Budget. Further details of the larger proposed June revotes are provided below with full details of all proposed revotes being provided in Part B of the June Review document. The funding source for the relevant project is general revenue unless otherwise indicated.

· Caddens Road Upgrade and Culvert - $471,404 s94 funded

Design work was delayed due to the major water mains alignment issues. The Design section engaged a consultant to design the necessary work for water mains and the final design was completed in March 2008. The tender was awarded in April 2008 and service relocation work was commenced in June 2008. On completion of the service relocation work, culvert upgrade and roadworks will commence. The expected completion date is March/ April 2009.

· Yoorami CCC Capital Upgrade - $493,961 reserve funded

A Development Application has been lodged for the capital upgrade of Yoorami Children’s Centre. Works are scheduled to commence in October and the project is expected to be fully completed by June 2009.

· Penrith Valley Cultural Precinct – $232,522 reserve and general revenue funded

The project program has had delays associated with the tender and was unable to proceed until there was certainty about additional grant funding that was essential to the overall funding scenario. This delay has affected the project phasing however construction work is now in progress and is expected to be completed by April 2009.

· Civic Centre Extensions - $399,043 reserve funded

Works are now in progress. The revote reflects changes to the predicted phasing of the project and delays in claims being submitted by the contractor. Work is expected to be completed by December 2008.

· Londonderry NHC Additions and Alterations - $438,172 grant funded

Delays were experienced in the resolution of grant allocations for this project. This has affected the project phasing in 2007-08 and has resulted in a revote being required. The project is currently out to tender and the work is expected to be completed by February 2009.

· Rural Fire Services Equipment - $644,078 grant/asset sales funded

Grant funding provides for the receipt of fire fighting vehicles from the New South Wales Rural Fire Services. The supply of four RFS appliances included in the allocation for 2007-08 is wholly dependent on the RFS program of fit-out to specification and delivery. These vehicles are now due for delivery in the first quarter of 2008-09.

· Penrith Football Stadium Stage 2 - $2.36m grant funded

This project is grant funded and works are currently in progress and being managed by Panthers. A revote is required to reflect changes in original cash flow projections provided by Panthers. The project remains on schedule for completion in October 2008.

There are a number of other projects of a smaller magnitude that are nearing completion (or have been completed since 30 June) where the funds are required to be revoted. These are detailed in the review document.

Format of the Quarterly Review

The new Services-based reporting approach, which was introduced for 2007-08, aims to provide greater clarity and accountability to Council and the public on the annual delivery of Council’s program through its approved services and their required goals. This both reflects the service specifications in a highly practical way and how the strategy for the City which Council has set is being delivered by the organisation.

The quarterly Management Plan report to Council and the community is now clearly based on performance of the specified services through which Council’s operations are conducted, together with the usual financial statements and other required information.

The Quarterly Review provides a comprehensive performance report on all Council’s external and internal services (with the exception of the three controlled entities which have separate reporting requirements).

Reporting is based on the delivery of the annual program of activities, tasks and projects which was adopted by Council for each service through the Management Plan. The report contains:

· An ‘executive summary’ of the annual result with commentary provided by the General Manager and Financial Services Manager, together with key results and identification of any service areas not fully meeting requirements

· A report on the overall performance, key performance indicators, projects and tasks deliverable for each service, together with a formal budget statement for that service

· Capital and operating projects budget result (arranged to align with the services)

· Detailed financial statements and summaries.

The services performance report, which provides much of the basis of the review, details the performance of the ongoing and annual deliverables of that service. This now also includes details of the relevant capital budget projects and operating budget projects for which the service is responsible. This brings all reportable elements which contribute to the overall performance of the Service together to clarify the Managers’ assessment of performance and enhance full accountability.

Supplementing the projects information in the Services section of the document, a full financial progress report and reconciliation of Capital and Operating Projects and subprojects of works programs is provided in the financial statements section.

It is important to note that the simple expenditure budget ‘snapshot’ which is provided under services is supplemented for each service by a fully detailed budget which includes any proposed variations.

Performance Assessment

The review documents incorporate detailed reporting on the year to date performance of each of the services from several principal aspects. These form the basis of the Overall Performance assessment of that service for the year to date. To that is added a Budget Performance snapshot as explained above.

The normal expected overall service performance for the first half of the year is 50%. However, note that some services (such as in the Operations Directorate) are more dependent on the completion of particular projects or works programs, which will strongly influence the result. The model for service reporting is detailed in the review document.

The reportable elements of the Service from which its performance is assessed include:

· Key Performance Indicators (KPIs) for ongoing requirements of the Service

· Strategic Tasks which link Services to Council’s four year Strategic Program

· Service Improvements identified through means including ongoing Services Review

· Capital and Operating Projects funded in the annual program

(NB not all Services contain all of these elements)

In addition to the particular KPIs and annual targets which Council adopted in the Management Plan, additional measures have been added to ensure that all the important ongoing activities of service specifications are incorporated. These more generic KPIs for the service have a set target of 100% of ongoing requirements. This approach was initiated in the September review and has been further developed and refined with Managers.

All reporting is in terms of fulfilment of the annual requirements of Council’s program. Where actions have a life of more than one year, the report is on the performance for 2007-08 only.

Management Plan Performance

From the statements provided by the responsible Managers against the deliverables as explained above, the results for the year are as identified in the following table.

Table 1. Service Performance Summary 2007-08

SERVICE PERFORMANCE SUMMARY	Completed	GREEN	AMBER	RED	Totals
SERVICES OVERALL (Service Profile)		58 (98%)	1 (2%)	-	59
Key Performance Indicators (KPIs)		198 (93%)	12 (6%)	2 (1%)	212
Strategic Tasks (ST)	61 (83%)	9 (12%)	2 (3%)	1 (2%)	73
Service Improvements (SI)	33 (57%)	19 (33%)	4 (7%)	2 (3%)	58
Capital Projects *	103 (68%)	27 (18%)	12 (8%)	10 (6%)	152
Operating Projects *	75 (81%)	12 (132%)	-	6 (6%)	93

[ Note : * These figures do not include sub-projects or the specific components of works programs]

These results can also be diagrammatically shown in the following graph highlighting performance in all the deliverables. Note that the combined Completed and Green scores indicate that Council services achieved more than 85% of the total work requirement in all categories within the 2007-08 financial year.

Service Performance Summary 2007-08 Graph

The progress of Council’s program is expressed through the use of percentages and ‘traffic light’ indicators. These are based on the responsible Manager’s statement of the delivery of the annual requirements for that item.

Council has, for a number of years, used a traffic light rating scale for reporting on the performance of Management Plan deliverables. This is supplemented in the new report format by an appropriate rating scale for the expenditure budget performance of services, adapted from that used in the monthly Financial Health monitoring by the organisation. The rating scales are explained in the table below.

Table 2. Guidelines for ‘Traffic Light’ Status Indicators

[Green]

General Performance: Performance is satisfactory to meet annual requirements of the relevant action. Normally indicates completion of 90% of the scheduled requirements.

Budget Performance: Expenditure for the year is satisfactory, being under budget by no more than 15% or over budget by no more than 5%.

[Amber]

General Performance: Performance was marginal and extra attention is needed for ongoing items. Normally indicates completion of 75%-89% of the scheduled requirements and may be the subject of a proposed carry over/partial revote of works.

Budget Performance: Expenditure for the year was marginal, being under budget by more than 15% or over budget by 6-15%. The Manager’s comment should address specific issues.

[Red]

General Performance: Performance was not on target and the requirement has not been delivered. This is addressed by the Manager’s commentary. Delivery is normally rated as less than 75% of the scheduled requirements and/or is the subject of a proposed revote of works.

Budget Performance: Expenditure for the year is unsatisfactory, being over budget by 16% or more. Any such instances must be fully explained by the responsible Manager and will be addressed within the Financial Services Manager’s report.

Completed (usually applies to Capital & Operating Projects with defined target dates).

A detailed table of all items which are rated as not being fully delivered to the annual requirements in 2007-08 and the response which is made by the responsible Manager is provided in the ‘Executive Summary’ section of the document.

Alignment of the Organisation

During the first quarter of 2007-08, Council received two reports from the General Manager on alignment of the organisation and endorsed a number of changes to accountabilities and service and departmental arrangements. Those new arrangements were reflected in the previous Quarterly Reviews as far as possible. In some instances, more settled information is included in the present report.

The most significant impact of these changes was in regard to the City Operations directorate. The new departments of City Works, Public Domain Amenity and Safety and Recreation, and the service responsibilities of the relevant Managers, are incorporated in the report.

A new approach was taken to the management of certain major projects, as discussed with Council in the organisational alignment reports. This sees a number of projects (Penrith Valley Cultural Precinct, Londonderry Neighbourhood Centre, Penrith Football Stadium, Civic Centre Extensions) now being identified within the Project Management Service with delivery accountabilities assigned to the position of Major Projects Manager within the City Planning Directorate. That Manager is also responsible for the Design service. The Acting Design and Technical Advice Manager is responsible for the remainder of the services within this department.

Special Initiatives

The 10-year special initiative, Asset Renewal and Established Areas Strategy (AREAS), commenced on 1 July 2006. The AREAS funding, from additional rate revenue approved by the Minister for Local Government, is for additional infrastructure renewal and public domain maintenance (which includes roads, buildings, graffiti removal and street cleaning) as well as greater attention to the needs of our older neighbourhoods.

Council also continues to advance three 10-year special initiatives which commenced in 2002-2003, for which additional rate revenue was approved by the Minister. These are:

· Enhanced Environmental Program (EEP)

· Community Safety and Neighbourhood Renewal Program

· Economic Development and Tourism - support for Penrith Valley Economic Development Corporation (PVEDC)

As previously agreed by Council, specific reporting on the progress of each of these initiatives is presented to Council, the community and the Department of Local Government at six-monthly intervals, through the half-year and end-of-year Management Plan reviews and the Annual Report. In addition, more detailed reports on key aspects of the programs are provided to Council by the relevant Managers at appropriate intervals during each year.

A section of the review booklet accordingly details the progress of these programs and outcomes being achieved. Relevant elements of the progress of these programs is also reported within the normal services format.

Conclusion

The review indicates substantial achievement in meeting Council’s challenging annual program. The General Manager and Chief Financial Officer will make a brief presentation at this time on the performance of the 2007-08 Management Plan and also provide an opportunity to review the accomplishments of this Council during their term of office. The opportunity is also available for Council tonight to seek clarification or elaboration on particular matters in any section of the Progress Report.

The review document will be placed in full on Council’s website, as well as being made available to the public in hard copy and CD versions on request and through the Civic Centre, Queen St Centre, and all libraries.

RECOMMENDATION

That:

1. The information contained in the report on the 2007-2008 Management Plan - June Quarter and End-of-Year Review be received

2. The 2007-2008 Management Plan Review as at 30 June 2008 be adopted

3. The voting of funds and estimates of income for 2007-2008 be amended to reflect the revised estimates, expenditures and revotes as detailed in the Management Plan Review

4. Council revote the works as detailed in the Recommended Revoted Works Lists for inclusion in the 2008-2009 Management Plan.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

*Policy Review Committee Meeting*	*18 August 2008*
*The City in its Broader Context*

The City in its Broader Context

Penrith Local Plan - update on key projects

Compiled by: Tanya Jackson, Local Plan Team Leader

Allegra Zakis, Local Plan Team Leader

Authorised by: Ruth Goldsmith, Local Planning Manager

Strategic Program Term Achievement: Council's agreed strategies, where they relate to planning provisions, are implemented through the new Citywide Penrith Local Plan and Penrith Development Control Plan.

Critical Action: Develop the Citywide Penrith Local Plan and Development Control Plan by March 2009, as agreed with the Department of Planning.

Purpose:

To provide Council with an update on the status of preparation for the comprehensive Penrith Local Environmental Plan and Penrith Development Control Plan, including the Urban Study and Urban Strategy. The report recommends that the information in the report be received.

Executive Summary:	§ The State Government is implementing reforms to the planning system, to simplify both the process of making Local Environmental Plans (LEPs), and the range of planning controls. All councils are required to prepare a single LEP that conforms to a new standard Template for LEPs within 2, 3, or 5 years. § Council is preparing a consolidated Development Control Plan (DCP) to provide more detailed planning controls to support the new Citywide LEP.
	§ Penrith LEP 2008 and Penrith DCP 2008 (Stage 1) include the rural and industrial areas of the City, the St Marys Town Centre, and planning controls for Citywide and heritage matters. It is anticipated that the public exhibition for Stage 1 may commence early in October 2008.
	§ The Urban Study and Urban Strategy is the final major strategic analysis that is needed to inform the future policy directions of the new Penrith LEP and DCP. It will examine the role and future growth capacity of the City’s established residential areas and local centres. It is anticipated that public exhibition of the draft Urban Strategy will occur early in 2009.
	§ Penrith LEP 2009 and Penrith DCP 2009 (Stage 2) include the residential areas, release areas, and the retail, commercial and local centres of the City. It will also incorporate the gazetted ‘stand alone’ Penrith City Centre LEP and DCP. It is anticipated that public exhibition of draft Penrith LEP 2009 and Penrith DCP 2009 (Stage 2) will occur later in 2009.

Background

A program of research-based decision making has always underpinned Council’s strategic policy planning, meaning that the development of land use zones and other controls guiding future planning directions has been supported by specialist studies and strategies. A list of the studies and strategies that inform the preparation of the new comprehensive LEP and Development Control Plan (DCP) is appended (Appendix A) to this report.

The new Citywide LEP and DCP will be the result of Council’s long term program to simplify the myriad of Local Environmental Plans, Interim Development Orders, and other instruments that apply across the City, and to provide a contemporary guide for development of the next 10 to 15 years.

Given the scope of works required to deliver a comprehensive and integrated plan for the City the Department of Planning agreed that Council could prepare the LEP (Penrith LEP 2008) in two stages. The key elements of the stages, and their current timeframes, are detailed below:

1. Draft Penrith Local Environmental Plan 2008 and draft Penrith Development Control Plan 2008 (Stage 1)

Penrith LEP 2008 and Penrith DCP 2008 (Stage 1) include the rural and industrial areas of the City, the St Marys Town Centre, and planning controls for Citywide and heritage matters.

Draft Penrith Local Environmental Plan 2008 (Stage 1) was first submitted to the Department of Planning in October 2007, with a request that the Department issue a Section 65 certificate to allow the draft Local Environmental Plan (LEP) 2008 to be publicly exhibited.

The Department requested a number of changes, and a revised version of the draft LEP was submitted in December 2007. Since that time, there have been several legislative changes which have needed to be incorporated into the draft Penrith LEP 2008, including –

· the gazettal of Version 3 of the Standard Template

· the gazettal of State Environmental Planning Policy 2007 (Infrastructure)

· exhibition of a draft SEPP for the Western Sydney Employment Hub (WSEH) which includes Erskine Business Park.

Draft Penrith Local Environmental Plan 2008 (Stage 1) has now been amended and resubmitted to the Department on a number of occasions. These amendments have responded to policy and drafting issues raised by the Department and Parliamentary Counsel.

At the time of writing, Parliamentary Counsel (PC) had not yet issued a final version of the draft Penrith LEP for exhibition, however indications from both PC and the Department are that the process is nearing completion. It is anticipated that the Department of Planning will give Council approval to exhibit the draft LEP over the next few weeks. When the final version of the draft Penrith LEP 2008 has been received, the exhibition material, including the Plain English version of the draft LEP, letters to residents and fact sheets can also be finalised. It is anticipated that this will take about 4 weeks, and the public exhibition may commence early in October 2008.

Heritage

The Department of Planning also advised Council to prepare a separate draft LEP for the heritage items in Stage 2, as a stand alone amendment to Penrith Local Environmental Plan 1991 – Environmental Heritage. This approach was intended to ensure that the proposed heritage items and places, recommended to be listed in the Heritage Study, were protected. The Department has issued a Section 65 certificate to enable the public exhibition of this draft LEP, subject to conditions. It is intended that this exhibition will proceed concurrently with the exhibition of the draft Penrith Local Environmental Plan 2008 (Stage 1), and the exhibition material is therefore being prepared.

Exempt and Complying Development

Separately to the draft LEP process, the NSW Government released the draft NSW Housing and Commercial Building Codes for public comment. These codes define the circumstances under which various forms of development can be considered as either exempt, and therefore not need consent, or complying, and are therefore eligible for a complying development certificate instead of a Development Consent. Currently, Penrith DCP 2006 contains the standards for exempt and complying development in Penrith. Schedules 2 and 3 respectively of draft Penrith Local Environmental Plan 2008 (Stage 1) will replace these provisions for rural and industrial land.

The draft NSW Housing Code covers new single-storey homes, alterations and additions on lots 600 square metres and over; exempt development in all residential and rural zones; and internal alterations and additions for two-storey houses on any lots.

Council made a submission to the exhibition of the draft code, raising a number of concerns including the fact that in many cases the provisions are more restrictive than Council’s proposed draft planning controls, and will hamper Council’s ability to increase the proportion of development considered as exempt or complying. A response from the Department in relation to this submission has not been forthcoming. The draft codes potentially have significant implications for development in Penrith and Council will continue to liaise with the Department to reach a reasonable solution. Should the Code be adopted in its current form, substantial amendments will need to be made to draft Penrith Local Environmental Plan 2008 (Stage 1).

Draft Penrith Development Control Plan 2008 (Stage 1)

Penrith Development Control Plan (DCP) 2008 (Stage 1) is being developed concurrently with draft Penrith Local Environmental Plan 2008 (Stage 1). The preparation of draft DCP 2008 (Stage 1) has presented the opportunity for a complete review of the adopted, detailed DCP controls for rural development and industrial development, plus a number of Citywide issues including flooding, heritage, public domain and vegetation management. This review has focussed on reducing repetition, ensuring consistency in controls across the City and better implementing Council’s sustainability agenda.

Draft Penrith DCP 2008 (Stage 1) was presented to Council’s Policy Review Meeting of 28 April, where Council endorsed the draft DCP for exhibition. When the exhibition version of the draft Penrith Local Environmental Plan 2008 (Stage 1) has been received, the supporting exhibition material for draft Penrith DCP 2008 (Stage 1) can be finalised.

2. Urban Study and Urban Strategy

Council last undertook a major review of the City’s urban areas in 1997, with the resultant Residential Strategy informing the preparation of Penrith Local Environmental Plan 1998 (Urban Land). This LEP did not include the local and neighbourhood centres.

Work on the Urban Study and draft Urban Strategy commenced in February 2008. The Urban Study will primarily examine existing residential suburbs and neighbourhood centres, and will also include consideration of the quantum of dwellings proposed for the City’s release areas and rural lands. The Urban Study and Strategy are being developed to:

· Provide a strategic framework to manage future growth in the City’s existing and proposed urban areas, and meet the needs of a changing and diverse community

· Plan for future housing needs and the supporting business, social, community, physical, recreation facilities and services required to support diverse and sustainable communities in Penrith

· Respond to the housing targets, policy and planning directions set by the NSW State Government’s Metropolitan Strategy and draft North West Sub-Regional Strategy, and

· Guide and inform the preparation of planning controls for Stage 2 of the Penrith Local Environmental Plan and Penrith Development Control Plan.

The Urban Study will provide a ‘snap-shot’ of the City’s residential communities and neighbourhood centres. It will set the local context having regard to current state and local government planning policy directions, demographic profile and trends, housing trends, and sustainable development opportunities. Whilst the Urban Study and Strategy recognises the detailed planning work already completed for the Penrith City Centre and St Marys Town Centre, the focus is the remaining retail and commercial centres across the City.

The Urban Strategy is being developed using a centres-based model which focuses the majority of future housing growth in, and around, retail and commercial centres which have an appropriate level of infrastructure, services, accessibility and integration to support growth. This means that some centres will have the capacity to support significant growth, and others may only provide nominal growth opportunities. Detailed precinct plans will be developed for all centres with potential for residential growth, and this work will continue over the coming months.

As part of the Urban Study a survey of residents living in multi-unit residential development, and persons who made a submission to development applications, was carried out within the neighbourhoods of Oxley Park; Barker, Hall and Atchison Streets, St Marys; Werrington; and Mulgoa Road and Jamison Road, Penrith. Residents were asked about their dwellings, and whether the building and local area provides a quality environment in which to live. A total of 248 responses were received, which represented a very high return rate. The results of the survey will be analysed, with the information guiding the preparation of planning controls in the Penrith DCP Stage 2.

Three recent and significant projects have also informed the current review of the City’s residential areas and local / neighbourhood centres:

· The adoption of the ‘Interim Centres Hierarchy’ for Penrith on 26 March 2007, consistent with the ‘centres typology’ established under the NSW State Government’s Metropolitan Strategy (2005).

· The Dwelling Opportunities Analysis (2007) report which identified areas with potential capacity for additional dwellings, as an initial step in examining whether the dwelling targets nominated for Penrith in the draft North West Sub Regional Strategy could be achieved.

· The release of the North West Sub-Regional Strategy by the Department of Planning in December 2007, which set a target of 25,000 dwellings for Penrith over the next 25 years, of which 12,000 dwellings are expected to be accommodated in the existing urban areas, and 13,000 dwellings in new release areas.

The Urban Study and Urban Strategy are the final major strategic analysis that is needed to inform the future policy directions of the new Penrith LEP and DCP. It will examine the role and future growth capacity of the City’s established residential areas and local centres.

Councillors will be briefed on the emerging directions of the draft Urban Strategy over the next few months. It is anticipated that public exhibition of the draft Urban Strategy will occur early in 2009.

3. Draft Penrith Local Environmental Plan 2009 and draft Penrith Development Control Plan 2009 (Stage 2)

Penrith LEP 2009 and Penrith DCP 2009 (Stage 2) include the residential areas, release areas, and the retail, commercial and local centres of the City. It will also incorporate the gazetted ‘stand alone’ Penrith City Centre LEP and DCP.

Initial work has begun on the preparation of draft Penrith Local Environmental Plan 2009 and draft Penrith Development Control Plan 2009, which will incorporate the residential areas and local centres of the City, and reflect the outcomes of the Urban Strategy. Draft Penrith Local Environmental Plan 2009 and draft Penrith Development Control Plan 2009 (Stage 2) will also include areas that have involved separate planning processes, such as the release areas, and the Riverlink and Glossop Street Precinct Plans.

As significant elements of the draft LEP and draft DCP rely on the outcomes of the Urban Study and adopted Urban Strategy, the focus at present is on identifying the planning controls from DCP 2006 and Penrith Local Environmental Plan 1998 (Urban Land) that can be translated into the Standard Template. When the Urban Study and draft Urban Strategy are in a form that can be exhibited and adopted by Council, the policy directions arising from this work can be incorporated into the draft planning instruments. It is anticipated that a final draft LEP 2009 (Stage 2) will be presented to Council for referral to the Department of Planning in mid 2009, and that public exhibition of draft Penrith LEP 2009 and Penrith DCP 2009 (Stage 2) will occur later in 2009.

Conclusion

Council has undertaken a significant research program to provide a sound basis for determining the City’s capacity for future growth, and prepare new planning controls. Council’s adopted strategies have been translated into planning controls for draft Penrith Local Environmental Plan 2008 (Stage 1) and draft Penrith Development Control Plan 2008 (Stage 1).

When the Urban Study and draft Urban Strategy has been adopted, it will identify options for accommodating future growth in the existing residential areas and local centres, and provide policy direction for matters such as sustainability, affordable housing and housing diversity. This will underpin the preparation of draft Penrith Local Environmental Plan 2009 (Stage 2) and draft Penrith Development Control Plan 2009 (Stage 2).

It is unfortunate that the delay in receiving approval from the Department of Planning to exhibit Stage 1 of the draft Penrith LEP 2008 means that the comprehensive Penrith LEP cannot now be finalised by March 2009, however the project is still being advanced as expediently as possible.

RECOMMENDATION

That the information contained in the report on Penrith Local Plan - update on key projects be received.

ATTACHMENTS/APPENDICES

1. View

Studies and Strategies

1 Page

Appendix

*Policy Review Committee Meeting*	*18 August 2008*
*The City as a Social Place*

The City as a Social Place

Delivery of Local Open Space Plan projects

Compiled by: Hans Meijer, Acting Parks Construction and Maintenance Manager

Vicki O’Kelly, Financial Services Manager

Authorised by: Barry Husking, Chief Financial Officer

Requested By: Councillor Kaylene Allison

Strategic Program Term Achievement: The City’s recreation and leisure facilities and services meet its needs and are optimally used.

Critical Action: Ensure facilities and services reflect the City's diverse current and future recreation and leisure needs.

Purpose:

To respond to recent Council requests for additonal open space facilites to be considered in the current program and to provide information to Council on the priorities and capacity of the Local Open Space Contributions plan. The report recommends that the information be received and that Stage 3 of the works at Victoria Park be included in the 2008-09 program.

Background

The Penrith City Local Open Space Contribution Plan provides for a range of open space works and facilities across the city. The plan, adopted in June 2007, applies to all residential development within the City other than new release areas. The plan will provide a total of $10 million of works over 14 years ranging from playground equipment, park furniture, landscaping, pathways and sporting fields. A number of high priority projects are currently underway and some of the works are being undertaken in advance of receipt of the s94 contributions e.g. Cranebrook Skate Park. Significant inroads are being made into the plan.

The 2008-09 Management Plan budget currently has $732,080 of works. These works include:

Cranebrook skate park $353,000

Design costs for amenities building Rance Oval $10,000

Greygums Oval lighting $3,120

Leonay Oval fencing $40,000

Peppertree Rsve Erskine Park - junior rugby league $90,000

Cook Park, St Marys - floodlighting $65,000

Playground- Caloola Park Nth Penrith $57,500

Mazeepa/Hilliger Sth Penrith $57,500

Adelaide Street, Oxley Park $52,500

At the Ordinary Meeting 4 August an additional $75,000 was added to the program to seal courts and provide carparking facilities at the netball courts at St Clair. The total s94 Penrith Local Open Space plan works in 2008-09 are now $807,080 with a projected overdrawn closing balance at 30 June 2009 of ($222,279).

The Open Space Action Plan adopted by Council in June 2007 provides the framework for recreation open space delivery required to support the demands of future population growth in the City. The specific projects and the identified funding requirements have been incorporated in both the Local and District development contribution plans, also adopted by Council. The report acknowledges the challenges in providing an effective ongoing funding stream to implement these works.

Current identified priorities

Victoria Park

At its Ordinary Meeting on 19 May 2008, Council considered a report that provided a proposed schedule of works to implement the masterplan in Victoria Park and to provide details of the condition of the memorial bandstand and rotunda and proposed remedial works. The recommendations from this report were as follows:

“1. The information contained in the report on Landscape Improvements to Victoria Park be received.

2. Costs for the work on the rotunda be considered in the 2009-10 Management Plan.

3. A further report be presented to Council indicating whether it is possible to bring forward Stages 3, 4 and 5 of this project, so that they may be undertaken in 2008-2009.”

The tables below provide details of the proposed stages. Funding for stages 3, 4 and 5 are included in the Local Open Space Contribution plan.

Stage		Description	Estimated Cost		Funding
1		Memorial Precinct - Demolition and landscape around memorial	$50,000		Section 94 (old plan) COMPLETED 2006-07
2		Play precinct – Refurbish existing play equipment and relocate with rubber softfall. Purchase trees for advancing in Council’s nursery.	$50,000		Section 94 COMPLETED 2007-08
3		Play precinct (continued) – Paving, fencing and landscape of SE corner of park. Work to include concrete edging to plant areas, arris rail fencing, turfing and tree planting.	$106,000	Section 94
4	Play precinct (continued) – New picnic shelters, tables and associated paving.		$112,000	Section 94
5	Landscaping, fencing and entry treatments to NW, NE and SW corners of park. Work to include edging, planting, footpath paving (including pram ramps) and turfing.		$116,000	Section 94
6		Paving – 2.5m wide oval path in park, 2.5m wide paths linking oval path with corners of park, 1.5m wide footpaving around park.	$202,000		Unidentified
7		Lighting – Decorative/security lighting at regular intervals around park. Includes conduits, controls and meters.	$106,000		Unidentified
8		Park Planting and furniture – Jacaranda avenue, feature tree and mass planting, turfing, watering points, seating and interpretation stations around park.	$129,000		Unidentified
8			$129,000		Unidentified

Funds to allow completion of stage 3, the continuation of the play precinct including paving, fencing and landscaping of the south eastern corner park with associated concrete edging to plant areas, arris rail fencing, turfing and tree planting can be provided in the current budget and it is suggested that a further report discussing options for the remaining stages be brought back to the new Council.

The completion of the landscape improvements to Victoria Park is a significant project. Five of the eight stages are included in the Penrith Local Open Space Contribution Plan. Stages 1 and 2 have been completed and it is recommended that stage 3 be implemented in the current financial year with a further report prepared for the new Council to discuss funding options for the balance of the project which can then be considered in conjunction with other identified priorities.

Universal Designed Playground

Another consideration needs to be the impact of the potential provision of the universal designed playground at Rance Oval. Implementation of this particular project will have a significant impact on the Penrith Local Open Space s94 plan as this plan will make a contribution towards the playground establishment of $80,000 and the amenities block of $250,000.

The report to the Policy Review meeting 28 July 2008 presented some indicative costings and existing funding sources however identified a shortfall in funding of approximately $110,000, some of which may be able to be grant funded. A further report on a preferred site and funding options will also be made to the new council.

Walking track in Werrington County, Werrington Downs, Cambridge Park, Cambridge Gardens and Kingswood Park

Another project that needs to be considered in any review of the city’s total open space needs and priorities should include the request by Councillor Thain for the construction of a marked walking track to link parks in Werrington County, Werrington Downs, Cambridge Park, Cambridge Gardens and Kingswood Park. At the Ordinary Meeting 4 August Council requested further information about possible funding for such a track. A possible route has been identified with a total cost of $322,550. This cost is made up of $303,750 for an additional 2.7km of pathways ($112.50 per metre length) and a further $18,800 for bollard directional signage including distance markers (47 locations at $400 each). Total available funding that could be contributed to the project was identified through the adopted Section 94 Local and District Open Space Plans with this totalling $165,000 leaving a shortfall of $157,550. It would be prudent to delay the decision to commit funds to this project until Council has had an opportunity to have an in-depth discussion of the capacity of the local and district open space s94 contribution plans. In the meantime any opportunities to secure grant funding for the project will be pursued.

Delivery options for further consideration

There are a number of pressures and demands in the provision of both local and district open space facilities that dictate alternate or complementary funding sources. One of these which can be considered is the sale of identified surplus land within the city which could then be directed to funding the gap between the works contained in the two open space contribution plans and the community’s expectations (eg Gipps Street, Victoria Park). Some of these land parcels were previously identified as open space or road reserves but remain as vacant blocks requiring regular attention from Council’s parks’ crews. There are a number of processes that need to take place including re-classification and re-zoning of the identified land parcels and timing of this is dependent upon the completion of the Local Plan. This process could take as long as 18 months however may be able to be staged. Some of the land parcels will need the provision of infrastructure such as water and electricity to enable their sale as residential land. This time frame will allow for extensive community consultation. This proposed action was first reported to Council when the People’s Lifestyle Aspirations and Needs Study (PLANS ) outcomes were adopted by Council in August 2003. The discussion included a strategy and associated actions which recommended a process of rationalisation of those areas of open space which are either oversupplied or underutilised. It was suggested that the revenue gained from the potential sale of these assets be utilised to embellish other existing open space areas within that particular area. It is proposed that this option be further developed in parallel with the development of the new strategic plan and a further report on this option be made to the new Council.

Council at some stage may also wish to also consider appropriate the use of sponsorship or “adoption” of local open space facilities. For example, each of the bollards for the marked walking trail could be sponsored by a relevant business or association and thus provide some of the identified shortfall in funding for this particular project however further discussion of this option is required.

Conclusion

Projected development in the city assumes s94 contributions to this plan of $306,000, $334,800 and $465,000 over the next three years. With this rate of development and taking into consideration the projected deficit balance as at 30 June 2009 it is recommended that a reduced parks improvement program of $150,000 per annum be implemented for the following two years if the recommendation to include Stage 3 of the Victoria Park works in the 2008-09 program is adopted.

If these works are included the plan will have an expected deficit at the end of June 2009 of $(328,279). The deficit will gradually improve over the following two years until 2010-11 when a surplus balance is expected and an increased program can again be implemented from the following year. The reduced parks improvement program in 2009-10 and 2010-11 will allow delivery of approximately two playgrounds and some other minor works in each year and will reduce Council’s capacity to respond to emerging priorities or opportunities. A certain degree of responsiveness within the program allows matching grant funding to be provided if a grant opportunity arises and also an ability to respond to issues identified by either local residents or such programs as the Neighbourhood Renewal program. This responsiveness is compromised by a reduction in the annual parks improvement program.

As noted above the S94 plan will be in deficit until 2010-11. Any slowdown in the projected development rates, which appears likely as expected rates of development have not materialised to date, will result in the deficit position being extended. Funding of s94 plan deficits is drawn from other reserve balances and can have a negative impact on key financial ratios such as the Unrestricted Current Ratio. Conversely, it may be possible to bring forward the staged works if development contributions exceed projections.

Delivery of the open space facilities across the city is a considerable responsibility. The calls for funding of the additional projects are in excess of current capacity and there are also some identified shortfalls in funding for key projects. It would be appropriate for the new Council to be given an in depth briefing on the subject to enable them to continue to make well informed decisions regarding the delivery of the plans. This briefing would also provide the opportunity to update Council with regards to what the new developer contributions legislation contains in respect of what contributions can be sought for as there remains some uncertainty over the details of that as the regulations have not yet been published. All existing contributions plans are required to be repealed as at 31 March 2010, unless the plan is remade by the Minister prior to that date. The process for that re-approval is not yet known, nor the emphasis the Department of Planning will place on the issues that will need to be taken into account by Councils.

RECOMMENDATION

That:

1. The information contained in the report on Delivery of Local Open Space Plan projects be received.

2. Funding for Stage 3 of Victoria Park, $106,000, be provided from the Penrith Local Open Space Contribution Plan in 2008-09.

3. A further report discussing the capacity and priorities of both the local and district open space plans be made to a Councillor briefing.

4. Council give in principle support for the development of a strategy to dispose of surplus land parcels with a view to the funds realised being used for priority open space projects within the city.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

*Policy Review Committee Meeting*	*18 August 2008*
*The City as a Social Place*

The City as a Social Place

Proposed Amendment to Council's Procedure for the Assessment of Requests for the Closure of Pedestrian Laneways

Compiled by: Yvonne Perkins, Public Domain Amenity and Safety Manager

Authorised by: Yvonne Perkins, Public Domain Amenity and Safety Manager

Strategic Program Term Achievement: A community safety plan, building on a partnership with police, the community and other stakeholders is in place and supported by Council’s programs.

Critical Action: Contribute to improved real and perceived levels of public safety across the City by implementing enhanced public space maintenance and agreed physical treatments using Crime Prevention through Environmental Design principles.

Purpose:

To advise Council of a proposed amendment to Council's adopted procedure for the assessment of requests for the closure of pedestrian laneways. The report recommends that pedestrian laneways that are determined suitable for closure be physically closed with the use of appropriate fences and gates; the option for legal closure and sale to adjoining property owners be deleted from the procedure and the option of constructing low level side fences along the laneway boundary between the building frontage and the property boundary for those laneways determined to remain open be included in the adopted procedures.

Background

There are three hundred and twenty seven (327) laneways in the Penrith Local Government Area. The majority of these laneways resulted from the pedestrian focussed urban design in the 1970s and 1980s. Antisocial behaviour and/or inappropriate use in some of these laneways are a significant community safety issue and concern for adjacent property owners.

Council receives regular requests for the closure of pedestrian laneways from property owners adjacent to the laneways as a result of these behaviours.

Council at its meeting on 13^th December 2004, adopted a procedure to be implemented when investigating requests for closure of pedestrian laneways.

This procedure involves the gathering of a significant amount of data which includes:

· Total daytime pedestrian usage

· Age range of users including school age children

· Determination of peak usage times of laneway

· Measurement of the length of detour if the laneway was to be closed

· Determination of the presence of an overland drainage water flow path

· Presence of utility services, including lighting

· Direct consultation with adjoining property owners, including request to report all negative events to the local police

· Consultation with neighbourhood stakeholders including letter boxing, public notices in local newspapers to measure the level of support or otherwise for the closure of the laneway

· Consultation with the police to retrieve any relevant statistics concerning events associated with the laneways

At this meeting, Council also adopted the three options to be considered once investigations into the requests for closure had been completed.

The options are:

Legal Closure

Where it is determined that there is no impediment to the closure the laneway can be legally closed and offered for sale to the adjoining property owners. Council does not have the authority to legally close a laneway. If Council adopts a recommendation to legally close a laneway then an application is required to be submitted to the Department of Lands (DoL) for approval. This part of the process is dealt with by the Property Development Department. The work and timeframes involved with this process are detailed by the Property Development Manager later in this report.

Physical Closure

Where it is determined that a laneway can be closed, but the laneway operates as an overland water drainage flow path, Council has the authority to physically close the laneway using appropriately designed fences and gates. The DoL approval is not required for a physical closure.

Laneway Remains Open

Where it is determined that a laneway cannot be closed due to its day time usage and the length of detour involved if it was to be closed, generally greater than 400 metres, a range of community safety strategies will be explored in conjunction with all stakeholders in an attempt to minimise the impact on the neighbouring properties. This may involve lighting, bollards, signage, additional paving and regular enhanced maintenance. The bollards prevent vehicle access, minimise the riding of bikes through laneways and includes signage with the laneway name, Police and Council contact numbers.

Council at this meeting resolved that nine (9) laneways be legally closed, four (4) be physically closed and fourteen (14) remain open as a result of these twenty-seven (27) laneways being assessed in accordance with the above procedure.

Current Situation

The four (4) laneways approved to be physically closed are completed. Fences and gates have been installed and the laneways are maintained by Public Domain Maintenance Units as part of the regular Laneways Maintenance Program. Since the physical closure of these laneways, there have been no adverse reports to Council.

The laneways approved to remain open received treatments as listed above, although some are still awaiting lighting upgrades by Integral Energy. There are still issues associated with some of these laneways that are causing concern for adjacent property owners. In particular, they are concerned with pedestrians using their front gardens to access the laneway. Laneways are fenced along the boundary of the adjacent properties but only between the front building alignments. They are not fenced along the front gardens of properties. In some instances, this results in pedestrians and bikes “cutting across” the front lawns. It is recommended that to prevent this occurring Council, in consultation with the property owner, install a low level fence from the building alignment to the property boundary to clearly direct all laneway users from the footpath to the laneway and prevent access to the laneway from front gardens. This low level fence would be installed and maintained at Council’s cost as part of the laneway.

The laneways approved for legal closure is still in operation due to the lengthy procedure involved in getting the DoL approval to close laneways. These procedures are explained in the Property Development Manager’s comments below. These laneways are still the subject of representations from some property owners.

Property Development Manager Comments

Following Council’s approval of a proposed permanent laneway closure by resolution, action is commenced over investigations into the ownership of the laneway. If it is to vest in Crown then Council will re-direct the closure process back to the DoL to complete the closure process. Should the closure be vested in Council, then research into the creation of the laneway (as proof to DoL) by way of subdivision plans, deposited plans, book & volume in old systems titles, is undertaken to verify that is was dedicated as a laneway.

The procedure developed by the DoL through its Memorandum of Understanding whilst cumbersome is counter productive in relation to procedures. When initiated, it includes notifying authorities in respect to services, adjoining owners, affected landowners and title searchers of adjoining land owners.

On completion of this process, an application is lodged by Council to DoL with a proposed public advertisement in local newspapers (as agreed to in the MoU) notifying the public of the proposed laneway closure. DoL may edit this public advertisement if it is necessary to include additional information concerning the laneway closure. On approval from DoL, advertising should be commenced of the public notice in local newspapers as required under Section 16 of The Roads Act 1993.

Under this Section 16, the public is notified of the proposed permanent laneway closure and is allowed twenty-eight (28) days to submit objections. Should public objections be received, each one has to be dealt with by Council to arrive at an amicable resolution whereby the objections are withdrawn in writing by the initial author. Some objections to a proposed laneway closure may not be able to be resolved by Council and therefore must be forwarded with all documentation to DoL for final determination. DoL may disregard some objections forwarded to them because of the evidence supplied by Council in favour of the closure. In some cases the objections may be supported by DoL and the closure process will be terminated.

Once all submissions are resolved satisfactorily, a full application with all documentation to DoL is required for final approval. DoL will check all documentation and, if satisfactory, it will notify Council of their approval to permanently close the laneway.

At this point, surveys are arranged of the laneway to attain subdivision certificate and title derivation of plan. The proposed laneway land will be subdivided initially into one lot in Council’s name. This is necessary to finalise laneway closure through DoL and allows Council to commence sale negotiations with interested adjoining owners. This process can affect several adjoining owners and not all will be interested in purchasing part of the laneway adjoining their property. Once the adjoining owners have agreed to a sale price with Council, then further surveys would need to be carried out at their costs to subdivide the land accordingly.

Due to the lengthy process involved in gaining approval from the DoL and reaching agreements with adjacent owners, it is not unusual to have adjoining owners express an interest to purchase part of the closed laneway in the initial stages only to reject the purchase when the process is finalised 2-3 years later. In some cases, ownership of the adjoining properties may have changed during this process.

To date, twelve (12) laneway closures have been approved by DoL for closure. Some of these include laneways resolved to be closed by Council at its meeting on 20th December 2004. These laneways are in the final stages of the subdivision process referred to above.

Permanent laneway closures are an extremely long and arduous process requiring lengthy administrative procedures to be undertaken by Council with DoL. It is not unusual to have this process take over three (3) years to complete.

The costs of laneway closures have also escalated due to changes to the guidelines by DoL and other authorities such as Sydney Water, Integral Energy, Telstra and Agility. Cost estimates of laneway closures undertaken by Council have risen to approximately $12,000 to $15,000 per closure.

There is also no guarantee that the adjoining owners will purchase the laneway land when closed or whether Council will, in fact, recover their expenditure when a sale price is agreed to. If the laneway is not purchased, then Council will still be required to fence off the laneway in accordance with a physical closure.

Conclusion

Laneways resolved to remain open will continue to be treated with the appropriate Crime Prevention through Environmental Design (CPTED) initiatives via consultation with adjoining owners. In some cases owners have issues with users crossing their front gardens to access the laneway. For this reason, it is recommended that Council endorse the installation of low level fences on the laneway boundary with the adjacent properties from the building alignment to the front property boundary.

Those laneways recommended for either physical or legal closure after the implementation of the procedure to investigate a request for closure (as detailed earlier in this report) are those laneways that have very low daytime use, do not have a lengthy detour for users if closed and have little or no objections to a proposed closure.

Laneways recommended for closure but operate as an overland drainage flow path, are not able to be sold to adjoining property owners. These laneways are physically closed using gates and fences.

This type of closure results in the best results for Council and the local community as once approved by Council, it is quick to implement. The laneway is kept in good condition and amenity by Public Domain Units allocated for laneway maintenance. The laneway remains in Council ownership and hence is still available to be reopened as a pedestrian thoroughfare in the future if required e.g., demographics change or development that may require an investigation into its possible reopening.

Laneways that were determined to be physically closed in 2004 have not been subject to any representation from local communities since the installation of fences and gates to prevent access. However, those laneways that were resolved to be legally closed are still open pending the completion of the lengthy legal closure process as mentioned earlier. At the end of this process, there is no guarantee that the laneway will be sold in whole or part to the adjoining property owners.

In addition to the laneways reported to Council in 2004, a further thirty-five (35) pedestrian laneways are subject to representations to Council regarding misuse (subject to trail bike riding) or ongoing antisocial behaviour. Investigations in accordance with our adopted procedure were commenced, however they were deferred on advice that DoL was reviewing its guidelines for laneway closures.

Prior to the release of the draft guidelines, a meeting was held between Council officers and DoL to determine how the process of closure could be expedited. At this meeting, it was determined that legal closure could still be a lengthy process utilising DoL guidelines and would still require DoL approval. However, DoL had no objections to Council proceeding with temporary physical closures under the Roads Act.

It is therefore recommended that for all future laneway investigations that the option for legal closure and sale to adjoining property owners be deleted as an option for closing laneways due to antisocial behaviour or inappropriate use. It is also recommended that all laneways that are assessed to be able to be closed are physically closed with appropriate gates and fences and hence are available for reopening depending on future pedestrian demands.

RECOMMENDATION

That:

1. The information contained in the report on Proposed Amendment to Council's Procedure for the Assessment of Requests for the Closure of Pedestrian Laneways be received.

2. Pedestrian laneways that are determined suitable for closure be physically closed with the use of appropriate fences and gates.

3. The option for legal closure and sale to adjacent property owners be deleted from the procedure.

4. The option of constructing low level side fences along the laneway boundary between the building frontage and property boundary for those laneways determined to remain open be included in the procedure.

ATTACHMENTS/APPENDICES

1. View	Department of Lands Memorandum of Understanding - Proposal for Partnership Council Road Closings	2 Pages	Appendix
2. View	Department of Lands Guidelines for the Closure of Roads and Laneways	4 Pages	Appendix

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 2 - Department of Lands Guidelines for the Closure of Roads and Laneways*

SMO – 2

PROPOSED ROAD CLOSING AT …………………..

COUNCIL PUBLIC ROAD

COUNCIL ACTING AS AGENT FOR DEPT OF LANDS

CHECKLIST

(tick applicable boxes as action is completed)

This checklist is for the purposes dealing with the Department of Lands. Any other approvals required under the Local Government Act, 1993 are the responsibility of Council.

NB: Failure to adhere to the procedures detailed hereunder may delay or prevent final departmental approval.

□ 1. Carry out initial investigation of drainage and services (Council plans and / or dial before you dig).

□ 2. Carry out initial DP search / enquiry of road / lane to ascertain whether it is dedicated Council public road, a residue of a freehold title or Crown public road.

Note: If road is unformed and expenditure on road construction cannot be evidenced it will vest in the Crown on closing for disposal action (Section 38(2)c Roads Act, 1993).

□ 3. Organise a search into the creation of the road. Some roads created pre 1920 may not be public roads that can be closed under the Roads Act, 1993. If road is not dedicated, Council to consult with the Department prior to taking action for dedication of the road under the Roads Act, 1993

□ 4. Commence title derivation investigation to ascertain the title of the land from which the road was created (NB: The title derivation is to be noted on the plan of road to be lodged at Land and Property Information prior to gazettal of the road closing) (The services of a consultant surveyor or title searcher may be required in this instance).

□ 5. Obtain details of all relevant adjoining land ownership

□ 6. Councils must forward a copy of the draft advertisement together with the application form and fee of $657.70, a diagram, photographs and covering letter describing the road to be closed to the Sydney Metropolitan Office

for approval prior to commencement of advertising. Mail to the Roads Section, Sydney Metropolitan Office at PO Box 3935, Parramatta

NSW 2124.

Note: a. Advertisement should identify the land by description rather than by Lot/DP.

b. Advertisement to be in accord with minimum advertising requirements determined by the Department (see form SMO – 3). [The application commences in effect when Council exercises its delegation to advertise the closing of a particular road].

□ 7. Departmental Approval to advertise forwarded to Council together with a list of all authorities to be referenced for sending of notices. (These may include additional instrumentalities or authorities relevant to the site).

□ 8. Advice to Department of Lands:

· Published local newspaper…………………….

· Date of Advertisement…………………….

· Proof of advertisement from the publisher is essential. Obtain copy of newspaper advertisement when published

Note: Allow at least a week for the Department’s approval to advertise when planning the date of publication of the advertisement.

□ 9. If no submissions received, or submissions received only from government authorities requesting easements (go to step 14).

□ 10. Submissions/objections received.

In attempting to resolve objections, particularly in the consideration of laneway closures, matters may include:

a. Determine what additional distance needs to be traversed in the event that the laneway/road is to be closed. Is it less than 400metres? Is the terrain for the alternative route manageable for the population living in the area? i.e. do paths exist, consider steepness of terrain.

b. Pedestrian movement studies, particularly those of schoolchildren, and traffic to and from shops.

c. Consider potential of exposing children to dangerous traffic conditions. i.e. Would children be endangered by a high volume of traffic on the alternative route?

d. Impact on access to parks and playing fields.

e. Provide supporting reports from police and community user groups that are specific to that particular laneway/road.

f. Consider strategically broader access issues to public facilities. eg What network of roads and laneways need to remain open to provide for community access.

g. Socio- economic impacts. (i.e. Communities where residents do not have the benefit of private vehicle use, disabled access, etc.)

h. Access to Public Transport. i.e. location of bus stops and difficulty of accessing these if laneway/road is closed

Council should report on each of these matters where relevant

□ 11. Case proceeding! (Go to Step 14)

□ 12. Where objections for authorities withdrawn (go to step 14).

□ 13. If objections cannot be resolved – Forward to the Department of Lands for consideration with a report and recommended actions. Provide:

· All supporting evidence and documentation for road closing application (Including a report on all points outlined in Step 10)

· Proof of advertising (usually a copy of the advertisement)

· Copies of all titles and results of search

· Copies of letters sent to affected landowners and government authorities

· Originals of all submissions / objections received

□ 14. Forward to the Department of Lands:

· Submission / letter requesting approval of road closing

(Including a report on all points outlined in Step 10)

Should address issues such as:

P Council’s agreement to creation of any required easements in the plan of road closure

P Address any objections that Council may consider do not have merit

P Address resolution of objections

· Proof of advertising (usually a copy of the advertisement)

· Copies of all titles and results of search

· Copies of letters sent to affected landowners and government authorities

· Originals of all submissions / objections received

· Originals of letters or withdrawal of objection

□ 15 NOTE: PLEASE ALLOW A MINIMUM OF 8 WEEKS FOR DEPARTMENTAL DETERMINATION OF ITEMS 13 OR 14

GO TO EITHER 16 OR 17:

□ 16. FOR CONSTRUCTED COUNCIL PUBLIC ROADS

AFTER APPROVAL ACTION

□ 16.1 Department of Lands has provided advice of approval. Road has

been constructed in the past. Survey / plan compilation instruction

received from the Department of Lands. Request for further monies

owing may be made at this time by the Department of Lands.

□ 16.2.1 Arrange survey / plan compilation.

□ 16.2.2 Complete Subdivision Certificate and Title derivation on plan.

□ 16.2.3 Forward plan to Department of Lands for signature by approved

Officer.

□ 16.2.4 Signed plan received from Department of Lands.

□ 16.3 Plan forwarded to Land and Property Information NSW (LPI) for

Registration.

□ 16.4 Plan registered. Copy of registered plan forwarded to Department of

Lands to allow gazettal

□ 16.5 Advice received of gazettal of road closing and vesting in Council

Gazette…………………..…………….Folio………………………….

□ 16.6 Request form and copy of gazette notification forwarded to LPI

requesting issue of title and removal of “public road” notification from Second Schedule.

□ 16.7 Title received by Council.

□ 17. FOR UNCONSTRUCTED COUNCIL PUBLIC ROADS

AFTER APPROVAL ACTION

□ 17.1 Department of Lands has provided advice of approval of road

closing. Road is unconstructed. Land to vest in Crown on closure. No further action required by Council.

□ 17.2 Department of Lands has provided advice that road closure has been

gazetted and land has vested in the Crown

*Policy Review Committee Meeting*	*18 August 2008*
*The City as an Economy*

The City as an Economy

2008-09 Business Plans of the Town and Centre Associations

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 seek Council endorsement for funding the activities of the Town and City Centre Associations. The report recommends that funding be endorsed for the Penrith City Centre Association and the St Marys Town Centre Association in the amounts of $286,735 and $215,109 respectively.

Background

The Business Plans for the Penrith City Centre Association and the St Marys Town Centre Association are endorsed by Council at the beginning of each financial year. In considering the Business Plans for the 2006-07 financial year Council had requested that the plans for future years also incorporate a set of key performance indicators [KPIs]. This was welcomed by the Centre Associations and the business plans presented to Council include a range of KPIs covering such areas as vacancy rates; business networking; promotional campaigns; newsletters; board meetings and governance; liaison with property owners, retailers and Council. The KPIs have proved to be valuable tools used by the executive committees to evaluate the performance of the Associations’ in delivering the annual business plans and in assessing the priorities for the future.

Copies of the Business Plans for both Centre Associations are enclosed separately for the information of Councillors.

Business Plan for the Penrith City Centre Association [PCCA]

The Business Plan provides details of the focus and key activities for 2007-08; the representatives on the PCCA Committee; and the key programs, objectives, activities, key performance indicator and associated expenditure proposed for 2008-09.

The key focus and achievements listed for 2007-08 include the following:

· Associations focus for the year

§ Growing the Sunday High Street markets

§ Attract more businesses to participate in the Shoppers Reward Card program, provide shopper incentives and undertake more promotions of the program

§ Staging a week of activities in the CBD to compliment the Ulysses AGM being hosted in the City

§ Installing music speakers in High Street to help minimise malicious damage and anti-social behaviour

§ Working in partnership with Council on the review to establish a new economic development entity.

· Association’s highlights of the year:

§ Establishment and operation of the Sunday High Street markets

§ Establishment of the Shoppers Reward Card – a program that encourages local buying in the CBD

§ Staging the City Festival that attracted over 30,000 people

§ Up-grading the street numbering system in the retail precincts

§ Purchase of two new sets of flags for installation throughout the CBD.

The 2008-09 business sub-category rate allocation for the PCCA is $286,735 and the four broad areas of expenditure include the following:

Key Areas of Expenditure	Budget	% of Total
· Promotions and Marketing	$72,000	25%
· Business Development	$36,000	13%
· City Centre physical environment and services	$43,000	15%
· Service Operation such as employee costs	$135,735	47%
TOTAL	$286,735

The Association has a further $85,000 committed to five projects that commenced in 2007-08 as well as $20,000 set aside for special project funding to meet the costs of projects to be identified in the year. An amount of $20,000 is held in a contingency reserve fund. Details of each area of expenditure covering objectives, project activities, proposed budgets and the key performance indicators are provided in the attached copy of the Business Plan.

Ms Glays Reed, City Centre Manager will be present at the meeting to answer any questions on the PCCA Business Plan.

Business Plan for St Marys Town Centre Association [STMCA]

The STMCA Business Plan provides details of the key achievements of the Association for 2007-08; representatives on the Committee; and key programs and activities and key performance indicators for 2008-09 financial year

The key activities listed for 2007-08 include the following:

· Four surveys were conducted to determine shopping and spending habits of people visiting the Centre and origin of the customer base. The survey results showed that most people came for retail shopping and the customer base was largely confined to St Marys and Mt Druitt.

· Working with property owners to maintain a low vacancy of less than 5%. In 2007-08 shop front vacancies were at a low 3%.

· Promote the need for a more desirable mix of retail businesses in the Town Centre

· Liaising with leasing agents and property owners to inform them of developments in St Marys

· “Shop locally’ campaigns, including spin n wins, Easter bunny, Country Music weekend and a major promotional campaign at Christmas

· Provide support and assistance to the Spring Festival

· Finalise the shop front air brush campaign with funding support provided by the Office of the Minister of Western Sydney. With the funds provided five shop fronts were air brushed by a leading air brush artist.

· Liaise with Council in town centre maintenance programs and provide input in the development of the Town Centre plans

· Participate in and contribute to Council’s economic development review

The 2008-09 business sub-category rate allocation for the SMTCA is $215,109 and together with a retailer’s contribution of $22,000, collected for specific promotions conducted by the Association, the total income for the Association is $237,109. The key areas of expenditure proposed by the Association for 2008-09 include the following:

Key Areas of Expenditure	Budget	% of Total
· Management services such as salaries	$90,000	38%
· Promotion and Marketing	$95,000	41%
· Workshops and seminars	$20,000	8%
· Queen Street Enhancement	$27,000	11%
· General Maintenance	$5,109	2%
TOTAL	$237,109

The Association has also attracted an organic food market to be established in the Town Centre and is working closely with Council to secure the necessary approvals for the market to commence.

Peter Jackson Callaway, Town Centre Manager will be present at the meeting to answer any questions on the SMTCA Business Plan.

Economic Development Review

At its Policy Review Committee meeting of 3 March 2008 Council resolved to establish a new economic development entity that would combine the roles and functions of the Penrith Valley Economic Development Corporation and Council’s economic development department. At the meeting Council also resolved that the Penrith City Centre Association and the St Marys Town Centre Association be consulted regarding their existing and future role in economic development and their relationship with the new entity. Both Associations were consulted on this matter and the outcomes of these consultations and submissions from the Associations are provided in a separate report to Council- “Economic Development Review Steering Committee Report”.

Financial Services Manager’s comment

Council’s adopted 2008-09 Management Plan has provision for contributions to the Penrith City Centre Association and the St Marys Town Centre Association of $286,735 and $215,109 respectively. These amounts can be advanced according to the agreed quarterly schedule.

RECOMMENDATION

That:

1. The information contained in the report on 2008-09 Business Plans of the Town and Centre Associations be received.

2. Funding for the Penrith City Centre Association and the St Marys Town Centre Association in the amounts of $286,735 and $215,109 respectively be endorsed to be paid in four equal instalments at the beginning of each quarter.

ATTACHMENTS/APPENDICES

There are no attachments for this report

*Policy Review Committee Meeting*	*18 August 2008*
*The City as an Economy*

The City as an Economy

2008-09 Business Plan of the Penrith Valley Economic Development Corporation

Compiled by: Bijai Kumar, Local Economic Development Program Manager

Authorised by: Bijai Kumar, Local Economic Development Program Manager

Critical Action: Support PVEDC in the development of the City's enterprises.

Purpose:

To inform Council of the activities of the Penrith Valley Economic Development Corporation and seek endorsement for funding for the 2008-09 financial year. The report recommends that funding in the amount of $369,732 be endorsed.

Background

The Penrith Valley Economic Development Corporation has submitted its 2008-09 funding request in the amount $369,732 for its projects and activities for the next financial year. This amount requested represents the special citywide rate to be collected by Council in the current financial year to fund the activities of the PVEDC [$279,732] plus an additional $90,000 approved by Council, as part of its 2008-09 Management Plan, for the Corporation to undertake a range of projects.

As of 30 June 2006 the PVEDC had 17 members with 12 members, listed below, represented on the Board of the Corporation:

· John Bateman – Bateman Battersby Lawyers, Chair

· Steve Welsh – IMS Installations, vice-Chair

· Steve Willingale – Secretary and Acting CEO

· John Mullane – Mullane Planning Consultants

· Dr Paul Wakefield – Wakefield and Associates

· Peter Onus – Astinacorp Pty Ltd

· Clr Ross Fowler – representing Council

· Alan Stoneham – representing Council

· Dennis Rice – representing TAFE

· Dr Glenn Close – representing Sydney West Area Health Service

· Dr Kevin Daly – representing UWS

· John Todd – representing the BEC

The Corporation is assisted by the following three Task Groups in planning its projects and activities:

· Business growth and marketing

· International Business

· IT, Education and Training

Current Status

For the 2007-08 financial year the PVEDC has listed the following as its key achievements

Business Growth & Marketing Task Group

· The Western Sydney Innovation Advisory Centre (WSIAC) has been operating and achieving goals set as per contract with 203 interviews/visits and contacts. The WSIAC offers two locations for consultations, Penrith and Parramatta.
Reputation of the centre has grown enormously with clients utilising the Centre coming from an array of locations, as well as seminars/consultations being conducted in Central West NSW, most recent being Dubbo & Orange in April/May. Renewal of PVEDC’s contract for the facilitation of the WSIAC has been given by the Dept of State and Regional Development on a number of occasions.

· Two CEO Dinners were successfully held in October and March with full sponsorship received for each dinner from Glenmore Heritage Valley and Penrith City and Districts Business Advisory Service [BEC] respectively.

· 2008 Federal Budget Breakfast was successfully held on 14 May at Panthers World of Entertainment. The event attracted 320 attendees, 14 Gold sponsors, 2 Silver sponsors and 63 high school students.

· Buy Penrith Valley project, a joint venture with Penrith Valley Chamber of Commerce was officially launched by the Mayor with the aim of encouraging consumers and businesses to buy locally. After stage one which includes radio, print and poster/sticker promotion, the next stage involves developing a web-based system which allows consumers and businesses to easily identify what products and services are available from Penrith Valley businesses.

International Business Task Group

· The 2007 Business & Export Survey was completed and information disseminated. Results of the survey, which were presented to Council, shows only a .2% increase in number of businesses in Penrith Valley’s six industrial precincts with a modest 6% increase in the number of employees. As in 2005, employers stated that the skills shortage is a real problem, prompting PVEDC to embark on a project to identify, consult and address skills shortage problems identified.

Information Technology, Education and Training Task Group

· Moving Business on Line, a joint project with University of Western Sydney has now progressed to its final stages. PVEDC has provided 30 small to medium enterprises [SME] and eight IT providers the opportunity to participate in the project. SME skill levels have been identified, and a report supplied to them.

For the 2008-09 financial year the Corporation has proposed a operating budget of $611,220 comprising Council funding of $369,732 and other sources of income [functions, interest, membership fees etc] amounting to $81,250. As at 30^th June 2008, the Corporation held $179, 486 in cash.

Funds allocated to projects, outlined in the document “Projects of the PVEDC 2008-09” [Attachment III] amounting to $184,000 is shown against projects proposed for the 2007-08 financial year:

*Projects*	*2007-08*	*2008-09*
· 25 year recognition dinner	$11,000
· Moving business online	$10,000	$10,000
· Export and Business Survey	$22,000	$22,000
· Energy Conference	$52,000	$52,400
· Buy Penrith Campaign	$20,000	$20,000
· Research Software and Implementation	-	$35,000
· Skills Shortage Model	-	$45,000
TOTAL	$115,000	$184,400

A copy of the funding request and further details of the projects to be undertaken for the 2006-07 financial year is provided in Attachments I to IV.

Steve Willingale, Acting CEO of the PVEDC will be available to answer any questions relating to the funding request.

Comments by the Financial Services Manager

Funding for the PVEDC forms part of a 10 year special rate variation approved from 2002-03 for a ten year period. The funding provided under this rating variation in 2008-09 is $279,732. This, together with the additional $$90,000 provided in the Management Plan for projects, gives a total contribution from Council of $369,732.

Economic Development Review

The Corporation has fully supported and participated in Council’s economic development review process which culminated in Council resolving to create a new external economic development entity combining the roles and functions of the PVEDC and Council’s economic development department. A separate report has been provided to Council on the outcomes of the work of a Steering Committee subsequently established by Council in partnership with the PVEDC to provide recommendations on the role and functions of the new entity and on the structure and composition of its board.

RECOMMENDATION

That:

1. The information contained in the report on 2008-09 Business Plan of the Penrith Valley Economic Development Corporation be received

2. Funding in the amount of $369,732 be endorsed to be paid in two equal six monthly instalments in September 2008 and January 2009.

ATTACHMENTS/APPENDICES

1. View	Funding request for 2008-09	5 Pages	Appendix
2. View	2007-08 Budget and actual expenditure	1 Page	Appendix
3. View	Proposed projects for 2008-09	3 Pages	Appendix
4. View	Proposed budget for 2008-09	1 Page	Appendix

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 1 - Funding request for 2008-09*

Penrith Valley

Economic Development Corporation

Report and Funding Request

Penrith City Council

For the period

July 2008 to June 2009

31^st July 2008

1. Accounts

OPERATING BUDGET	Actual 2007/2008	Budget 2007/2008
Income	$466,184	$575,766
Expenditure	$345,469	$560,154

Surplus/(Deficit)	$120,715	$15,612

Income for the Corporation included Council Funds of $361,056, interest of $5,063 and function income $32,575 (Federal Budget Breakfast, 25 Year Business Recognition Dinner, CEO Dinners). Other income included funds received from contracts negotiated with the Dept of State & Regional Development for the facilitation of the Western Sydney Innovation Advisory Centre of $21,450. Also included in the income is a GST component of $41,930.

Staff salaries, wages, on costs, motor vehicle and FBT at $196,040 were the major expenses for the year. Other expenditure included function costs of $16,057, printing and stationery of $8,853, telephone $3,575, postage $699, website and computer of $6,130, insurance costs were $5,185, accounting, auditing and legal costs equalled $3,066, conference and training costs were $535. Project costs for the year were $46,506 which included Business & Export Survey costs of $15,600, 25 Year Business Recognition Dinner Award costs of $15,904, and WSIAC costs. Also included was GST paid of $23,968.

Attached as Appendix A is an “Operating Budget – Actual and Budget for 2007/2008”.

Attached as Appendix B is a Budget for 2008/09

2. Performance

Key Achievements, Activities and Highlights - July 2007 to June 2008

Business Growth & Marketing Task Group

· Western Sydney Innovation Advisory Centre(WSIAC) has been operating and achieving goals set as per contract with 203 interviews/visits and contacts. The WSIAC offers two locations for consultations, Penrith and Parramatta.
Reputation of the centre has grown enormously with clients utilising the Centre coming from an array of locations, as well as seminars/consultations being conducted in Central West NSW, most recent being Dubbo & Orange in April/May. Renewal of PVEDC’s contract for the facilitation of the WSIAC has been given by the Dept of State & Regional Development on a number of occasions.

· Two CEO Dinner’s successfully held (October and March) with full sponsorship received for each dinner from Glenmore Heritage Valley and Penrith City & Districts Business Advisory Service respectively.

· 2008 Federal Budget Breakfast successfully held on May 14 at Panthers World of Entertainment. The event attracted 320 attendees, 14 Gold sponsors, 2 Silver sponsors and 63 high school students.

· Buy Penrith Valley project, (a joint venture with Penrith Valley Chamber of Commerce), has been officially launched by the Mayor with the aim of encouraging consumers and businesses to buy locally. After stage 1 which includes radio, print and poster/sticker promotion, the next stage involves developing a web-based system which allows consumers and businesses to easily identify what products and services are available from Penrith Valley businesses.

International Business Task Group

· 2007 Business & Export Survey completed and information disseminated. Results show only a .2% increase in number of businesses in Penrith Valley’s six industrial precincts with a modest 6% increase in employees. As in 2005, employers stated that the skills shortage is a real problem, prompting PVEDC to embark on a project to identify, consult and address skills shortage problems identified.

Information Technology, Education and Training Task Group

· Moving Business on Line, a joint project with University of Western Sydney has now progressed to it’s final stages. PVEDC has provided 30 SME’s and 8 IT Providers to participate. SME skill levels have been identified, and a report supplied to them.

Website Report

From the period July 2007 to June 2008, the PVEDC website has received 102,552 visits totalling 993,544 hits. In comparison with the previous year, from July 2006 to June 2007, which recorded 73,237 visits and 879,070 hits the PVEDC website has experienced a 40% increase in visits and 13% increase in hits. The average number of daily visits in year ended 30 June 2007 was 201 which has increased by 39% to reach 280 in year ended 30 June 2008.

Media Report

Since July 2007, the PVEDC has featured in 113 media articles, including Dubbo and Mudgee newspapers, ABC Country Radio as well as regular weekly segments on 87.6 Kick FM.

This figure however, does not include media releases or articles which have been published from sources outside the Penrith Valley area.

The majority of media articles that were published have been a result of stories published on the PVEDC website, or media releases provided by the PVEDC.

Articles on the website are also being copied and distributed through other newsletters such as the Penrith Valley Home Based Business Network increasing the exposure of the PVEDC.

3. Membership

As at 30 June 2008, The Penrith Valley Economic Development Corporation has 17 members in total. Of these 17, twelve are board members, holding six as of right positions, the remaining six members are made up of local businesses.

Members:

Astinacorp Pty Ltd

Bateman Battersby Lawyers

Caribou Technology Pty Ltd

IMS Installations International Pty Ltd

L J Hooker Commercial

Mullane Planning Consultants Pty Ltd

Nepean Regional Security Pty Ltd

New Age International Export

Penrith City Council

Penrith City & District Business Advisory Centre

Ross Fowler & Co. Chartered Accountants (Representing Penrith City Council)

Sydney West Area Health Services

TAFE NSW – Western Sydney Institute

The Detail Devils Pty Ltd

University of Western Sydney

Vic’s Maxi Transport

Willingale & Co

Members of the Corporation take an active role in the Corporation’s activities including representation on PVEDC Task Groups and sponsorships of PVEDC Functions.

4. Directors

Members of the Board as at 30 June 2008 include:

John Bateman (Chair)

Managing Partner - Bateman Battersby Lawyers

Steve Welsh (Vice - Chair)

Managing Director - IMS Installations International Pty Ltd

Steve Willingale (Secretary), (Acting CEO)

Principal - Willingale & Co

John Mullane

Director - Mullane Planning Consultants Pty Ltd

Alan Stoneham

General Manager - Penrith City Council

Peter Onus

Managing Director – Astinacorp Pty Ltd

Dennis Rice

Director –TAFE NSW – Western Sydney Institute

Dr Glenn Close

Executive Director – Sydney West Area Health Service

Dr Kevin Daly

Senior Lecturer, School of Economics & Finance - University of Western Sydney

John Todd

Executive Officer - Penrith City & District Business Advisory Centre

Dr Paul Wakefield

Managing Director – Wakefield & Associates

Clr Ross Fowler

Principal – Ross Fowler & Co. Chartered Accountants

(Representing Penrith City Council)

Funding Request

The Board of the Penrith Valley Economic Development Corporation Ltd requests Penrith City Council to provide funding of $369,732 to the Penrith Valley Economic Development Corporation for the year July 2008 to June 2009.

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 3 - Proposed projects for 2008-09*

Penrith Valley

Economic Development Corporation

Report to

Penrith City Council

Projects of the PVEDC 2008/2009

31^st July 2008

Introduction

Further to our report to Penrith City Council, the Penrith Valley Economic Development Corporation (PVEDC) would like to provide a list of projects, together with their budgets (GST exclusive), of what the PVEDC has in its action plan for the 2008-2009 year.

Projects 2008/2009

Project

Budget

1. Moving Business on Line

In support of the findings of the 2005 Business & Export survey undertaken by the PVEDC, a specific program to assist local businesses to increase business capabilities from utilisation of the internet as an e-commerce tool is being developed.

This stage of the project capitalises on information extracted from SME’s IT capacity and enhance the UWS website software that will enable businesses to better utilise such in their business

$10,000

2. 2009 Business & Export Survey

Preliminary work to be done on the 2009 survey that will be conducted in July 2009. A more refined method of identifying data in relation to all businesses in Penrith Valley’s industrial precincts will be implemented.

$22,000

3. Research Software & Implementation

High powered and sophisticated Economic Analysis & Modelling Software System to be acquired and implemented along with office systems to support it.

$35,000

4. Energy Conference

An energy conference designed to encourage discussion and highlight current thinking of energy usage, and to enhance local industry and what opportunities are available for businesses in the Penrith Valley is being planned in the second half of the financial year.

$52,400

5. Buy Penrith Valley program

The Buy Penrith Valley Program stage 1 has been launched, incorporating print and radio media promotion.

Stage 2 of the project will require in-depth research, planning and software development, incorporating a sophisticated and user-friendly web based system that enables Penrith Valley consumers and businesses to identify what products and services are available from Penrith Valley businesses.

$20,000

6. Skills Shortage Model

A system of identifying the needs of all stakeholders involved in the skills shortage problem with a view to PVEDC being the one-stop shop for providing advice, assistance & guidance.

$45,000

TOTAL 2008/2009

$184,400

*Policy Review Committee Meeting*	*18 August 2008*
*The City as an Economy*

The City as an Economy

Economic Development Review Steering Committee Report

Compiled by: Bijai Kumar, Local Economic Development Program Manager

Authorised by: Bijai Kumar, Local Economic Development Program Manager

Critical Action: Work with appropriate economic partners on developing mutual understanding and support for a common agenda for action.

Purpose:

To inform Council of the recommendations of the joint Steering Committee established to advise Council on the functions, structure and the process for establishing the new economic development entity. The report recommends that the new entity be a company limited by guarantee with a twelve member board, mainly from industry and that the new entity be created by reconstituting the PVEDC and its constitution.

Background

At its Policy Review Committee meeting of 3 March 2008 Council resolved that:

1. A single external entity combining the roles of the Penrith Valley Economic Development Corporation and Council’s Economic Development Department be established to deliver Council’s economic development and employment services

2. The Board of the new entity comprise industry leaders representing key existing and future industries which will contribute to economic vitality and jobs growth in the City

3. The Penrith City Centre Association and the St Marys Town Centre Association be consulted regarding their existing and future role in economic development and their relationship with the new entity

4. A Steering Committee comprising Council officers nominated by the General Manager and Penrith Valley Economic Development Corporation representatives be established to develop a blueprint for implementing the outcomes of the review and that the Committee be guided by the principles adopted by the Working Party

5. A further report be presented to Council on the recommendations of the Steering Committee covering the issues identified by the Working Party, and including the outcomes of the consultations with the Town and Centre Associations.

The above resolutions adopted by Council on 3 March 2008 brought to conclusion the extensive work and consultations undertaken by the Working Party established by Council and led by the Mayor, Councillor Greg Davies to review Council’s economic development functions and a range of national and international models for delivering economic development and employment related services. The Working Party had recommended that Council consider the creation of a single external economic development entity that would combine the roles and functions of the PVEDC and Council’s Economic Development Department. The Working Party had further recommended that any structural change in the delivery of economic development be underpinned by the following key principles which emerged from its deliberations and in consultations:

· That job creation remains the key driver for economic development initiatives in the City;

· That future funding for economic development be linked to and be accountable through job creation programs and initiatives;

· That Council continues to have an ongoing role in providing leadership and strategic directions in economic development with the new entity having a key role in the provision of contemporary advice and input in this process; and

· That the board of the new entity comprise industry leaders representing key existing and future industries which will contribute to economic vitality and jobs growth in the City and the region.

The Working Party had considered at length the role of the Town and City Centre Associations in economic development given the focus of Council’s job creation efforts in the two centres and what potential synergies would arise from the proposed changes in delivering economic development services through a single entity. After consultations with the Associations’ representative the Working Party had recommended that the Associations be consulted further regarding their existing and future role in economic development and their relationship with the new entity.

The Working Party had consistently recognised the role and contribution of the business community and institutions in injecting a new dynamism and contemporariness in shaping the City’s economic future and attracting business investment. To this end, the Working Party had considered the value of having strong industry representation on the board of the proposed entity, both from industry sectors that dominate the local economic landscape, and also those industries which are likely to become major contributors in the future. The Working Party had recommended that the following industries and businesses be considered in the make up of the proposed new board:

· Manufacturing

· Retail

· Transport and Logistics

· Creative industries, arts and culture

· Construction and development

· Heath and well being, including rural industries and the environment

· Education, training and the trades

· Industries of the future- business, finance, insurance, information and communications technology etc

· Small and medium sized businesses ( to be represented for example by the Chamber of Commerce or the Business Enterprise Centre.)

The Working Party had further recommended that a Steering Committee, comprising Council officers nominated by the General Manager, together with representatives from the PVEDC, be established to develop a blueprint for implementing the outcomes of the review, covering the following issues:

· legal and governance;

· selection criteria for board members;

· staffing and recruitment;

· accommodation;

· level of funding and accountability for funding received from Council;

· the key functions of the new entity, including the reassignment of Council’s economic development functions and those conducted by the PVEDC;

· outcomes of the consultations with the City and Town Centre Associations; and

· a timeframe for implementation.

Current Situation

In accordance with Council resolution a Steering Committee comprising the following people from Council and the PVEDC was established to develop a blueprint for implementing the outcomes of the review:

Representing Council: Alan Stoneham, General Manager and former Director City Strategy; Stephen Britten, Legal Officer; Linden Barnett, Workforce Development Manager; Peter Browne, Internal Auditor and Bijai Kumar, Local Economic Development Manager

Representing the PVEDC: John Bateman, Chairman; Steve Willingale, Acting CEO and Board members John Mullane, Paul Wakefield, Kevin Daley and Peter Onus

The Steering Committee has met on six occasions with a view to finalising in the first instance the key elements of the constitution for the new entity and the structure of its board. These have been reviewed and endorsed by the Board of the PVEDC and are listed below for consideration by Council:

1. Status and Objectives of the New Entity

Legal Status

It is recommended that the new entity be a company limited by guarantee and not be a controlled entity of Council.

Mission

The entity would provide a central point for investment and business development for the City and the region.

Vision

The entity’s vision would be “to increase the quantum and quality of jobs in the city by promoting economic development and enhancing the economic culture and profile of the City and region.”

Objectives

The new entity’s key objectives would be to:

· Market and promote Penrith’s role as a regional business centre and its attractions for investment

· Represent and promote the interests of local businesses, commercial and industrial landowners and developers

· Develop and facilitate implementation of a range of programs to support the growth of local businesses, with a focus on the needs of small businesses

· Develop and implement a range of programs to service and attract investment into the City

· Facilitate an industry partnership program to leverage support for implementing business development and marketing programs

· Engender cooperation and collaboration between representative economic and business organisations in the City

· Facilitate partnerships with State and Commonwealth agencies, business and learning organisations and the like

· Seek support, including financial support, for business development and investment promotion programs

To achieve its objectives the new entity would need to work closely with Penrith City Council. It would need to:

· undertake research on business, industry and investment trends, challenges and opportunities and to contribute to and inform Council’s strategic directions on economic development and job creation

· develop and implement plans complementary to Council’s Strategic and Management Plans

2. Role and Structure of the Board

The central role of the Board of the new entity would be to set the strategic direction, appoint the CEO and oversee the management and business activities of the entity.

General criteria for selection of Board Members

It is important that the Board has a well-balanced composition with backgrounds, skills, and experience across key business, industry, and community areas as well as expertise in relevant areas. The Board members would be expected to have the following key attributes:

· A strong commitment to the Penrith community and its future growth and development

· High calibre individuals who are currently involved in business, industry or community leaders with the capacity to influence economic development outcomes

· Demonstrate an understanding of investment trends and/or industry trends, challenges and needs

· Be well networked (at the corporate and government levels) and partnership builders. This represents a key criterion and may be achieved through representation from an industry body.

General criteria for “as of right” position

The Steering Committee has proposed that Council should have as of right position on the Board. This is considered appropriate in view of its substantial ongoing funding contributions for the operational activities of the new entity and to enable Council to safeguard its interests in the organisation.

Where other organisations which are considered strategic partners of the new entity require representation this would be accommodated through sub-committees and project teams established by the new entity.

Membership

The Steering Committee has recommended that the Board has 10 members representing industry and two additional “community” positions making it a total of 12 members with the industry members drawn from the following industry sectors which are dominant in the city’s economic profile and provide significant scope for growth in the future, particularly in creating knowledge jobs:

*Industry Sector*	*Number*
· Government [Penrith City Council ]	1
· Manufacturing	1
· Housing and Construction	1
· Development Sector	1
· Transport and Logistics	1
· Arts, Culture and Communications	1
· Health and Well-being, including tourism, recreation, leisure and the environment	1
· Education, training and learning	1
· Business, Finance and Property Services	1
· Small business	1
*Community Representatives*	2
TOTAL BOARD	12

Outlines of each Industry Sector are provided in Attachment 2.

Process for the appointment of Board members

After Council accepts the recommendations of the Steering Committee the positions for the Board will be publicly advertised locally and in the Sydney Metro area and expressions of interest [EOI] requested based on the selection criteria and the industry sectors for which representation is sought. The advertisement will be set in the context of Council’s job creation aspirations. A brief background paper will be developed and made available to people who seek more information on the new entity and its role etc. The applications will be received by “The Selection Committee – New Economic Development Entity”, 601 High Street, Penrith.

Copies of the advertisement will also be forwarded to the heads of business organisations and other peak industry bodies identified against each sector and their assistance sought in identifying appropriate persons who meet the selection criteria for the board positions.

The Steering Committee recommended that a panel headed by the Mayor and comprising two other Councillors be established to review the EOIs received for board positions. The PVEDC board considered this recommendation and has suggested that the panel be expanded to include three independent members. The Board’s recommendation to include independent members on the selection panel is supported but not for three but two members. It is therefore recommended that the EOIs are received by a selection panel headed by the Mayor, and comprising two other Councillors and two independent members. The list of potential nominees will be provided to Council in a report and endorsed by Council.

The likely timetable for this to occur is as follows:

· Seek expressions of interest- August/September 2008

· Review and selection by panel- September/October 2008

· Report to Council- October 2008

· Nominees advised, consulted and Board appointed- October/November 2008.

· First Board meeting of the new entity- late November/early December 2008

Remuneration of Board Members

The Steering Committee has recommended that it would be appropriate to remunerate the members of the new board. This would be in the form of a small expense allowance reflecting the community nature of the function but recognising also the significant contribution the members will be making in shaping the City’s economic development agenda. It was noted that Council pays an expense allowance to its Audit Committee members. The rate of payment is $200 per sitting for each member and $400 for the Chair of the Committee.

3. Membership of the New Entity

The Steering Committee has recommended that the new entity should not be a membership based organisation, and that membership be restricted to the directors of the board.

4. Name of the New Entity

The Steering Committee has recommended the naming of the new entity is a matter for the new board.

Consultations with the Town and City Centre Associations and the Chamber of Commerce

Senior Council staff attended the committee meetings of the Town and City Centre Associations to inform them of the arrangements to establish the new entity and to seek their views on how they proposed to interact and work with the new entity given their role in economic development. The Associations were advised that they should clearly articulate their areas of responsibilities and functions in order to avoid any issues of duplication and overlap with the functions of the new entity. In a separate meeting with the Chamber of Commerce, the Chamber was also invited to make a submission on its view on the new entity.

The Associations and Chamber were also invited to meet and discuss their submissions with the Steering Committee at its meeting on 15^th July 2008. The board of the Business Enterprise Centre has also made a submission on its views on the new entity.

A summary of the submissions is provided below while the full submissions are provided in Attachments 3-6.

Organisation	Summary of submissions
Penrith Valley Chamber of Commerce	· Seeks active partnership in business attraction efforts and co-location with the new entity · Seeks position (1) on the Board as the representative of business
Business Enterprise Centre	· Highlights its role as representative of Penrith’s small business sector · Seeks position (1) on the Board
St Marys Town Centre Association	· Recognises its role in job creation in the Town Centre · Seeks position (1) on the Board of the new entity
Penrith City Centre Association	· Recognises its role in helping create 10,000 or 25% of all new jobs in the City Centre · Presents a case for how the centre is operating as a “Business Improvement District” or BID · Seeks positions on the Board (2)- one landowner and one employer in the City Centre

From these consultations it became evident that there is significant enthusiasm and commitment as well as expectation amongst the existing business organisations about the new entity and its role in bringing greater cohesion in promoting business development and investment in the City. The business organisations, while seeking as of right membership, recognised the position taken by the Steering Committee that the new entity would be better served by an industry sector based representation that accommodated as much as possible the City’s dispersed industrial-business concentrations and commercial centres, with some consideration given to the dominance of small businesses in the City’s economic landscape.

The Steering Committee noted that clear mechanisms, and not just channels of communications, will need to be developed to ensure that the business organisations and the centres are well integrated, with agreed protocols, in the planning and delivery of projects and programs that will impact on their constituencies and where synergies could be maximised with the new entity. This could be achieved in a number of ways, for example, through Business Plans developed for the centres jointly with the two Centre Associations that focus on the job challenges for the central business districts and memorandum of understanding with business organisations such as the Chamber and the Business Enterprise Centre which focus on identifying and resolving the key issues facing the City’s businesses.

The Management Agreement [outlined in the Section below] that will be developed between Council and the new entity would need to ensure that these mechanisms are considered and adopted by the new entity in planning its responses to those challenges that would benefit significantly from such collaboration and partnership with existing business entities. It would also need to ensure that as long as the spirit of the general criteria for the selection of board members is upheld, the nominees for the board are able to represent the economic and business interests of various geographical parts of the City.

The Committee agreed that with these arrangements in place, there was no reason to depart from the principle to have no other “as of right” members, besides Council, on the board of the new entity.

Management Agreement with the new Entity

In outlining the objectives of the new entity, which will form part of the constitution of the new entity, it is noted (on page 4 of the report) that “to achieve its objectives the new entity will need to work closely with Penrith City Council. It will need to develop and implement plans complementary to Council’s Strategic and Management Plans.”

This is both vital and necessary to ensure that Council’s aspirations for creating 40,000 jobs in the City are central to approaches taken by the new entity in shaping its programs and activities. The mechanism that will ensure that occurs will be the proposed Management Agreement that the new entity will sign with Council. The Agreement will cover the following key matters:

Context of the Agreement

The context will capture the essence on the “Jobs Challenge 2030” paper presented to Council as part of the economic development review process which outlines the challenges in creating 40,000 jobs in the city as well as outcomes of other studies such as the recently completed “Inward Investment Strategy” and the “Regional Employment Strategy” findings from which will be available later in this quarter.

Funding

The entity will receive its funding from Council from the following three areas:

· Recurrent funding for the PVEDC, including $90,000 additional funding provided by Council for projects ($369,732 for 2008-09)

· Recurrent funding for the Local Economic Development Department ($254,260 for 2008-09). The figure excludes funding for two recurrent projects- the Sir Ian Turbot lecture [$15,000] and gold sponsorship of Western Sydney Industry Awards- ($22,000)].

· Project funding received via a planning agreement with Glenmore Park Stage 2 development [GPS2] landowners which provides for total funding of $1.6 million with the first instalment of $200,000 to be provided at the latter date of 31 December 2008 or on the issue of the first sub-division certificate. The planning agreement is currently in the final stages of negotiation.

It is noted that Council funding for the PVEDC, raised from a citywide rate, will conclude in the financial year 2012-2013 while disbursements from GPS2 development, the timing of which will be influenced by the market demand for residential development, is also likely to be wrapped up within the same time frame. Consultation between Council and the new entity will need to occur prior to this date to address the issue of funding the operations of the new entity beyond 2012-13.

Accommodation

It is anticipated that the new entity will look for suitable accommodation elsewhere in the City to accommodate its larger operation and staff. Currently the PVEDC offices are located in Council premises in Allen Place which has been provided to the Corporation free of rent representing an in-kind contribution of $13,000 per annum. Further consultations with the new entity may need to occur about the extent of rental subsidy to be provided by Council if the entity moves to larger premises.

Comments by the Legal Officer

Process for establishing the new Entity

Presently the Penrith Valley Economic Development Corporation Limited (Corporation) is a company limited by guarantee not dissimilar in legal form to what is proposed. The difference proposed within the report is the form of the constitution of the resulting entity. We understand the Corporation is supportive of the content of this report and it is proposed that the Corporation pass a special resolution to amend their constitution to reflect what is in this report. This will require the agreement of at least 75% of the members of the Corporation to the changes.

The new constitution will need to be drafted and the finer details agreed with the Corporation. It is proposed that any discussion with the Corporation must be consistent with the content of this report. If for some reason the Corporation was not able to agree with Council Officers on a constitution or they were unable to get a resolution of the Corporation to make the relevant changes then Council would have to consider forming a new entity. This is not a preferred course as the Ministers consent may be required under the Local Government Act for this.

We have written to the Chairman of the PVEDC to seek the Board’s assistance to initiate the actions that would allow for this transformation to occur. The matter was discussed by the Board at its last meeting and a response has been provided by the Chairman which is attached at the rear of this report.

Comments by the Financial Services Manager

A ten year special rate variation including a component for economic development in the city was approved in 2002. This contribution is $279,732 in 2008-09 and will increase each year by the rate pegging percentage. Council has also approved an additional $90,000 for specific projects this year.

Funding for the Penrith Valley Economic Development Corporation together with the budget amount currently allocated to Council’s Local Economic Development team and the contribution from the landowners of the Glenmore Park Stage 2 development will provide a sound footing for the establishment of the new body.

Next Steps

If Council is agreeable to the recommendations contained in this report, expressions of interest for Board positions will be publicly advertised in Penrith and Sydney Metro newspapers. A number of peak industry bodies representing the industry sectors for which board positions are being sought will also be contacted to identify potential nominees for the Board. It is expected that this process will be concluded by the end of September or early October. By this time the selection panel would have been appointed in consultation with the Mayor and will meet in October to review the applications for Board positions.

Work will also commence on drafting the new constitution and seeking agreement with the PVEDC on the finer details of the proposed transformation, including arrangements for transition to the new economic development model.

RECOMMENDATION

That:

1. The information contained in the report on Economic Development Review Steering Committee report be received.

2. A new Economic Development Entity be created as a Company limited by guarantee, independent of Council and incorporating the roles and functions of the Penrith Valley Economic Development Corporation and Council’s Local Economic Development Department

3. The process for creating the new entity be via the way of reconstituting the PVEDC to reflect the new directions, role and structure of the new board

4. The vision, mission, goals and the board structure and its composition as provided in the report be incorporated in the constitution of the new entity

5. The Entity have a board comprising 12 members with nine members representing industry sectors identified in the report; one “as of right member” from Council; and two members representing the broad Penrith community

6. The board members for the new entity be selected by a panel headed by the Mayor and comprising two Councillors and two independent members

7. The board members of the new entity be remunerated through an expense allowance for each sitting to be determined by the Board

8. Annual funding as outlined in the report be provided by Council to the new entity.

9. Funding received by Council via the Planning Agreement between Council and Glenmore Park Stage 2 landowners for job creation programs, be provided to the new entity within a reasonable period after the funds are received by Council

10. A Management Agreement be prepared which clearly articulates Council’s job creation programs and economic challenges facing the City, mechanisms for the new entity working in collaboration with Council and the City’s business organisations and learning institutions and a set of appropriate key performance indicators that will demonstrate the new entity’s performance in job creation in the City.

ATTACHMENTS/APPENDICES

1. View	Letter from chair of PVEDC	1 Page	Appendix
2. View	Outline of industry sectors represented on the board	2 Pages	Appendix
3. View	Submission from the Chamber of Commerce	3 Pages	Appendix
4. View	Submission from the Business Enterprise Centre	1 Page	Appendix
5. View	Submission from the St Marys Town Centre Assn	1 Page	Appendix
6.	Submission from the Penrith City Centre Assn	1 Page	Appendix

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 3 - Submission from the Chamber of Commerce*

PENRITH VALLEY CHAMBER OF COMMERCE

SUBMISSION TO PENRITH CITY COUNCIL

ECONOMIC DEVELOPMENT RESTRUCTURE

The Chamber endorses the position of Penrith City Council (PCC) to consolidate the economic activity of Council’s Economic Development Unit and the Penrith Valley Economic Development Corporation (PVEDC). This review and planned restructure is an excellent opportunity to clearly define the purpose and direction for such an integral component of the business development for the region. We believe it is appropriate for the new entity, the Chamber, the Penrith Small Business Advisory Service, and the City Centre Associations to recognise each others strengths and focus on utilising their skill sets collaboratively moving forward.

Purpose

§ The Chamber has been invited by PCC to make a submission indicating our views for the new entity, and suggested make up of its new Board.

§ To be included in the initial consultation process for the blueprint of the new entity

§ To comment on what collaborative roles we see with the new entity and other economic groups, highlighting the necessity for clearly defined parameters.

§ To seek consultation and close involvement with future activities aimed at attracting sound economic investment and new business to this region.

§ To seek permanent, voting representation on the new Board [as of right position]

Chamber Strategies

1. Endorse the position taken by PCC to consolidate the economic activity of Council and PVEDC.

2. Strongly support a focus on attracting investment and new business to Penrith Valley.

3. Partner with other organisations and business groups to support the viability and prosperity of existing businesses in Penrith Valley.

4. Chamber's role is that of advocate for business and industry in Penrith Valley, promoting business success, prosperity and growth of jobs in the region.

5. Promote local economic growth through intra and inter-regional trade, incorporating initiatives such as:

§ Buy Penrith Valley and business expos, networking of businesses through relevant activities at all levels;

§ Business forums

§ Regional promotion;

§ Media representation on business issues;

§ Lobbying government at all levels on the issues impacting business success.

6. Chamber's sustainability commitment addresses the needs of the broader community:

§ employment (focused on skills and training relevant to the employment opportunities in the local area);

§ attraction and operation of business and industry with a commitment to enhanced environmental outcomes;

§ community engagement; and

§ support for disadvantaged people in the community.

7. Chamber brings broader capability and access to advocacy through the alliance with NSW Business Chamber and ACCI.

8. Chamber seeks a cooperative arrangement with the new entity and other

economic groups in Penrith Valley, including Penrith Business Advisory Centre, Penrith and St Marys

City Centres Associations, Penrith Valley Tourism. In moving forward we believe that clear parameters need to be established around the functions and activities. We would not endorse establishment of another member-based organisation representing business in Penrith Valley.

9. Chamber seeks to explore the potential co-location of economic organisations in one place as a signal that Penrith Valley endorses and welcomes business and investment. .

CHAMBER’S VIEW FOR THE NEW ENTITY

The new entity should be focussed on attracting key investment and new business to Penrith Valley, to support achievement of growth and diversity in local employment and an improved lifestyle for the community of Penrith Valley. The new entity needs to clearly identify and communicate its function and role.

§ The entity should work collaboratively with other key business organisations to deliver the best results for the growth of the region.

§ The entity should be identified as the destination for any investor considering the establishment or relocation, of their business operations in the region.

§ The entity should remain an independent body and must have the ability to constructively challenge Council process and decisions, especially where opportunities may require further consideration.

§ The entity should be led by a CEO with demonstrated business management and entrepreneurial skills. The CEO employed within corporate management contract guidelines and should have no vested business interest in the region.

§ The Board of the entity should be made up of 7-9 senior business people representative of, and qualified across a broad range of categories.

§ The entity should include an appropriately experienced Councillor as a member of the Board [as of right position].

§ The entity should include a Chamber of Commerce representative [as of right position] on the Board since the Chamber represents the largest business member based organisation in the region.

§ The entity must be non political.

It is our opinion any ‘as of right positions’ should not automatically include institutions or organisations, which as their primary role are not focussed solely on attracting economic investment and new business enterprise to this region eg TAFE, UWS and similar. However the Board and CEO must ensure that the significant organisations in the region are engaged as and when appropriate to contribute to the activities of the entity.

Board representation could be drawn from senior level operators in areas such as:

§ Retail sector eg DJ’s, Myers, Coles, Woolworths

§ Industry 3 eg manufacturing, construction, transport

§ Property specialist eg valuation background, industry association

§ Tourism service provider

§ Strategist in development

§ Large investment body eg superannuation funds

§ Hospitality industry

This Board needs to distance itself from vested interests of individual members and adhere to best practice principles of Governance.

THE ROLE OF THE CHAMBER

For 81 years the Chamber of Commerce has helped to build the businesses and community of Penrith Valley. We continually seek to work proactively with all key stakeholders in the region. We propose to participate in the following activities:

§ Business networking events ranging from micro through to large corporate

§ Luncheons, CEO Dinners, Small Business Support Group and similar

§ Sub Committees eg development sub committee, working parties on specific topics

§ Specific sector activities eg Dunheved/North St Mary’s Industrial, Emu Plains, Erskine Park, Home Based Business Network,

§ Business promotion eg Buy Penrith Valley

§ Business awards aimed at preparing local business for regional, state and national awards,

§ Partner other organisations in delivering business training and information sessions

CONCLUSION

In summary, the Chamber is asking Penrith City Council to consider our involvement in the new entity through:

§ Engagement in the consultation process for the blueprint of the new entity

§ A seat on the Board of the new entity as the representative of business

§ Consideration of co-location with the new entity and other business groups

§ Active partnering with the entity in new business attraction

§ Ability to apply for sponsorship to fund relevant programs and events

Together, we can work collaboratively to promote this region as a destination and encourage sustainable economic development, through an improved ability to share decision making across the community, develop strategies for employment opportunities and skills shortages, and offer an enhanced lobbying ability to other stakeholders and State and Federal Government.

We thank Council, both the elected representatives and officers for their support to date and for the invitation to make this submission.

Judith Field

President

Penrith Valley Chamber of Commerce and Industry

3 July, 2009

# Meetings at which the Management Plan ¼ly reviews are presented.	^ Election of Mayor/Deputy Mayor
#+ 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 2007/2008 Annual Statements are presented
* Meeting at which the Management Plan for 2008/2009 is adopted	Y Management Plan Councillor Briefings/Public Forum (May)

Area / Land Use	Study or Strategy	Prepared	Adopted / Gazetted	Staging LEP/DCP
Rural	Mulgoa and Wallacia Villages Study	June 1999	December 1999	Stage 1
	Rural Lands Study	June 2001
	Rural Lands Strategy		September 2003
Employment	Employment Lands Study (Stage 1) Employment Lands Study (Stage 2)	July 2003 April 2004		Stage 1
	Employment Planning Discussion Paper	June 2006
	Employment Planning Strategy		March 2007
Centres	Discussion Paper Vitality and Viability Review, Revisiting Our Centres – Penrith City Centre and St Marys Town Centre	December 2002
	Penrith City Centre Strategy		July 2006
	Penrith City Centre Local Environmental Plan 2008		February 2008	Stage 2
	Penrith City Centre Development Control Plan 2008	adopted 15 October 2007	February 2008	Stage 2
	St Marys Town Centre Strategy		July 2006	Stage 1
	Interim Policy Penrith ‘Centres’ Hierarchy		March 2007	Stage 2
Heritage	Heritage Study and Inventory	endorsed for exhibition December 2006		Stages 1 & 2
Recreation and open space	People’s Lifestyle, Aspirations and Needs Study (PLANS)	November 2002		Stages 1 & 2
	Recreation and Cultural Facilities Strategy		March 2004	Stages 1 & 2
	Open Space Action Plan		June 2007	Stages 1 & 2
Urban^{^[1]}	Urban Study and Urban Strategy	Currently being prepared		Stage 2
Key precincts	Riverlink Precinct Plan		May 2008	Stage 2
	Glossop Street Precinct Plan	currently being finalised		Stage 2

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 1 - Studies and Strategies*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 1 - Department of Lands Memorandum of Understanding - Proposal for Partnership Council Road Closings*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 2 - 2007-08 Budget and actual expenditure*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 4 - Proposed budget for 2008-09*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 1 - Letter from chair of PVEDC*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 2 - Outline of industry sectors represented on the board*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 4 - Submission from the Business Enterprise Centre*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 5 - Submission from the St Marys Town Centre Assn*

*Policy Review Committee Meeting*	*18 August 2008*
*Appendix 6 - Submission from the Penrith City Centre Assn*

*Policy Review Committee Meeting*	*18 August 2008*
*The City Supported by Infrastructure*