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 12 NOVEMBER 2012 AT 7:04PM

PRESENT

His Worship the Mayor, Councillor Mark Davies, Deputy Mayor, Councillor Ross Fowler OAM and Councillors Jim Aitken OAM, Bernard Bratusa, Prue Car, Marcus Cornish, Greg Davies, Maurice Girotto, Ben Goldfinch, Jackie Greenow, Tricia Hitchen, Karen McKeown, John Thain and Michelle Tormey.

LEAVE OF ABSENCE

Leave of Absence was previously granted to Councillor Kevin Crameri OAM for the period 9 November 2012 to 17 November 2012 inclusive.

APOLOGIES

There were no apologies.

CONFIRMATION OF MINUTES - Policy Review Committee Meeting - 8 October 2012

PRC 81 RESOLVED on the MOTION of Councillor Jim Aitken OAM seconded Councillor Marcus Cornish that the minutes of the Policy Review Committee Meeting of 8 October 2012 be confirmed.

DECLARATIONS OF INTEREST

His Worship the Mayor, Councillor Mark Davies declared a Pecuniary Interest in Item 5 - Public Exhibition of Environmental Assessment for Concept Plan for Mixed-Use Development Proposal and Stage 1 Project Application for Masters Home Improvement Store at Parkview Site, 164 Station Street, Penrith as he has a commercial agreement with the Masters organisation. The Mayor indicated he would leave the room and vacate the chair for consideration of this item.

Councillor Jim Aitken OAM declared a Non-Pecuniary Conflict of Interest – Less than Significant in Item 3 - Planning Proposal for Penrith City-wide Local Environmental Plan as he owns properties in the vicinity of the area subject to the report.

Councillor Ross Fowler OAM declared a Non-Pecuniary Conflict of Interest – Less than Significant in Item 3 - Planning Proposal for Penrith City-wide Local Environmental Plan as he is a Director, Auditor or Accountant of some properties in the area subject to the report.

ADDRESSING THE MEETING

Ms Caroline Volkiene

Item 7 - Options to Provide Suitable Cover for Housing Council's Bennett Wagons

Ms Volkiene, Interested Citizen and President of the St Marys & District Historical Society Inc addressed Council outlining the important history of St Marys and the historical significance of the Bennett Wagons. Ms Volkiene indicated that she would only support the placement of the Bennett Wagons at South Creek Park.

Mrs Norma Thorburn

Item 7 - Options to Provide Suitable Cover for Housing Council's Bennett Wagons

Mrs Norma Thorburn, Interested Citizen representing the St Marys & District Historical Society Inc addressed Council and raised concerns surrounding the proposed location for display of the Bennett Wagons, Mrs Thorburn acknowledged that her preferred site of South Creek Park has some passive surveillance issues, however stated these could be addressed by the reduction of the introduced trees and that she is not aware of any vandalism occurring in the past.

Mrs Thorburn claimed that she has never seen the South Creek Park site flood, and that she believes the Mamre site is too far away for tours that she runs and that access to the site would only be when the Mamre site is open to the public. Mrs Thorburn concluded by raising concerns the effect of moving the Wagons will have on the St Marys Spring festival and was also disappointed that the Historical Society had not been contacted concerning this matter.

DELIVERY PROGRAM REPORTS

A Liveable City

7 Options to Provide Suitable Cover for Housing Council's Bennett Wagons

PRC 82 RESOLVED on the MOTION of Councillor Ross Fowler OAM seconded Councillor Jackie Greenow

That:

1. The information contained in the report on Options to Provide Suitable Cover for Housing Council's Bennett Wagons be received.

2. A report revisiting the proposal for a Historical Park as noted in the appendix to the report be prepared.

3. The Bennett Wagons be housed in the South Creek Park in an enclosure in sympathy to the current structure.

4. A funding solution be formulated and if necessary using Voted Works.

5. Investigations be made into addressing the surveillance concerns in relation to the density of the trees and shrubs on site.

6. The St Marys District Historical Society be thanked for their address to Council and in maintaining and promoting the heritage of St Marys.

A City of Opportunities

4 Access Committee - End of Term Highlights 2010-12

Councillor Jackie Greenow introduced the report and invited Denise Heath, Community Member of the Access Committee to give a presentation.

          His Worship the Mayor, Councillor Mark Davies presented awards to the
          community members of the Access Committee recognising their efforts,
          contributions and achievements over the Committee’s last term.

PRC 83 RESOLVED on the MOTION of Councillor Jackie Greenow seconded Councillor Prue Car

That:

1. The information contained in the report on Access Committee - End of Term Highlights 2010-12 be received.

2. The community members of the Access Committee be thanked for their contributions to these achievements.

5 Public Exhibition of Environmental Assessment for Concept Plan for Mixed-Use Development Proposal and Stage 1 Project Application for Masters Home Improvement Store at Parkview Site, 164 Station Street, Penrith

Having previously declared a Pecuniary Interest in this item, His Worship the Mayor Councillor, Mark Davies, vacated the chair and left the room the time being 7:45pm.

The Deputy Mayor, Councillor Ross Fowler OAM took the chair the time being 7:45pm.

Development Services Manager, Paul Lemm introduced the report and gave a presentation.

PRC 84 RESOLVED on the MOTION of Councillor Jim Aitken OAM seconded Councillor Greg Davies

That:

1. The information contained in the report on Public Exhibition of Environmental Assessment for Concept Plan for Mixed-Use Development Proposal and Stage 1 Project Application for Masters Home Improvement Store at Parkview Site, 164 Station Street, Penrith be received.

2. Council make a submission to the Department of Planning strongly objecting to the Concept Plan and Stage 1 Project applications for the reasons outlined in this report.

3. Council objects to the proposal being dealt with under the former Part 3A of the Environmental Planning and Assessment Act as it does not fit the criteria required.

4. Council write to the Local Members advising them of the outcome of the Council meeting.

In accordance with Section 375A of the Local Government Act 1993, a DIVISION was then called with the following result:

For	Against
Councillor Prue Car
Councillor Greg Davies
Councillor John Thain
Councillor Karen McKeown
Councillor Michelle Tormey
Councillor Jackie Greenow
Councillor Maurice Girotto
Councillor Jim Aitken OAM
Councillor Ross Fowler OAM
Councillor Ben Goldfinch
Councillor Tricia Hitchen
Councillor Bernard Bratusa
Councillor Marcus Cornish

His Worship the Mayor, Councillor Mark Davies returned to the room and took the chair, the time being 8:17pm.

A Leading City

1 National Growth Areas Alliance - Status Report

Craig Butler, Director introduced the report and gave a brief overview.

PRC 85 RESOLVED on the MOTION of Councillor Ben Goldfinch seconded Councillor Karen McKeown

That:

1. The information contained in the report on National Growth Areas Alliance - Status Report be received.

2. Council continue to engage with and seek the support of local Members of Parliament, at both the Federal and the State level, for the outcomes the NGAA is seeking for growth area councils.

2 Council Forums and Working Parties

PRC 86 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Bernard Bratusa

That:

1. The information contained in the report on Council Forums and Working Parties be received.

2. The content of the information in the report be the basis for the development of the Council’s 2013 meeting calendar.

3. The Committee representatives to the four working parties be:

a) The Finance Working Party:

Councillors Ross Fowler OAM, John Thain and Jim Aitken OAM

b) Stadium Precinct Working Party:

Councillors Greg Davies, Ben Goldfinch, Ross Fowler OAM, Jim Aitken OAM

c) Recreation Working Party:

All available Councillors

d) Economic Opportunities Working Party:

The Mayor, Councillor Mark Davies and Councillors John Thain, Jim Aitken OAM, Ross Fowler OAM, Greg Davies and Bernard Bratusa

4. The Advertising Working Party not be disbanded and meetings of the Working Party be held at least bi annually.

5. All meetings to commence at 7.30pm.

3 Planning Proposal for Penrith City-wide Local Environmental Plan

PRC 87 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Marcus Cornish

That:

1. The information contained in the report on Planning Proposal for Penrith City-wide Local Environmental Plan (LEP) be received.

2. The report be submitted to the next Ordinary Council meeting.

In accordance with Section 375A of the Local Government Act 1993, a DIVISION was then called with the following result:

For	Against
Councillor Prue Car
Councillor Greg Davies
Councillor John Thain
Councillor Karen McKeown
Councillor Michelle Tormey
Councillor Jackie Greenow
Councillor Maurice Girotto
Councillor Jim Aitken OAM
Councillor Ross Fowler OAM
Councillor Ben Goldfinch
Councillor Tricia Hitchen
Councillor Bernard Bratusa
Councillor Marcus Cornish
Councillor Mark Davies

A Green City

6 Penrith Managed Aquifer Recharge (MAR) Project

Group Manager - City Infrastructure, Wayne Mitchell introduced the report.

PRC 88 RESOLVED on the MOTION of Councillor Jim Aitken OAM seconded Councillor Marcus Cornish

That:

1. The information contained in the report on Penrith Managed Aquifer Recharge (MAR) Project be received.

2. Council not proceed with the Managed Aquifer Recharge project at this time.

3. The government funding authorities be thanked for their interest in the project and any unspent funds be returned to them.

4. The MAR project be reviewed on an annual basis and Council Officers be thanked for their efforts on this project.

5. That all Local Federal and State Members be advised of the reasons for Council’s decision.

REQUESTS FOR REPORTS AND MEMORANDUMS

RR 1 Update on Pathways - Cranebrook

Councillor Greg Davies requested a memo update on the previously discussed pathway links between Cranebrook and St Marys.

There being no further business the Chairperson declared the meeting closed the time being 9:00pm.

Policy Review Committee Meeting 3 December 2012

A Leading City

Local Infrastructure Renewal Scheme (LIRS)

Compiled by: Michael Jackson, Major Projects Manager

Andrew Moore, Financial Services Manager

Authorised by: Wayne Mitchell, Group Manager - City Infrastructure

Objective	We demonstrate accountability, transparency and ethical conduct
Community Outcome	A Council that manages its finances, services and assets effectively (4)
Strategic Response	Deliver services for the City and its communities, and maintain our long term financial sustainability (4.1)

Executive Summary

The NSW Government in its 2011-12 budget announced $70M over five years for the implementation of the local infrastructure backlog policy and in its 2012-13 budget provided a further $30M. The funding was to support an interest rate subsidy for loan borrowings by Local Government that address identified infrastructure backlogs.

Council submitted two existing projects funded by borrowings to be considered for round one of the scheme in early 2012 - Asset Renewal and Established Areas Strategy (AREAS) for $913,000, and City Centres Upgrade and Renewal Program (Penrith and St Marys) for $1.6M. Council was successful obtaining the subsidy for the AREAS project.

Applications are now open for the second round of the scheme and Council can submit up to two applications.

Council officers have reviewed Council’s existing infrastructure renewal programs, and with consideration to the assessment criteria, identified two applications that have established and sustainable funding sources with the 2012-13 Operational Plan and the Long Term Financial Plan.

This report recommends that Council lodge applications to Round 2 of the LIRS for the general revenue funded borrowings for AREAS ($913,000) and an accelerated City Centre Renewal Program ($4.2M). Applications to Round 2 close on 31 December 2012.

Background

The NSW Government in its 2011-12 budget provided a total of $70M over five years for the implementation of the local infrastructure backlog policy. The Local Infrastructure Renewal Scheme (LIRS), which provides an interest subsidy to fund council infrastructure backlog borrowing, is a key component of this policy.

Round one of the Scheme saw a variety of projects approved, ranging from buildings and road renewals, over bridge replacements and swimming pool rejuvenation to major airport reconstruction works. Overall, the scheme recommended 84 projects put forward by 64 Councils and adding up to a total cost of $439 million to go ahead subject to TCorp approval.

Council submitted two projects to be considered for round one of the scheme - Asset Renewal and Established Areas Strategy (AREAS) for $913,000, and City Centres Upgrade and Renewal Program (Penrith and St Marys) for $1.6M. Council was successful obtaining the subsidy for the AREAS project.

The interest subsidy of 4% on the $913,000 loan is worth $214,870 in total and will be paid in six monthly instalments, each June and November, for the 10 year term of the loan.

The agreement has been signed and returned to the DLG by the 30 November 2012 deadline.

Applications are now open for the second round of the scheme with applications closing on 31 December 2012.

Second Round of the Scheme

The NSW Government committed an additional $30M to the scheme in its 2012-13 Budget to support a second round. As a result, $63.5M is now available to support both backlog infrastructure projects as well as projects providing enabling infrastructure for new housing development. The second round of the scheme will provide a 3% interest subsidy on loans taken out to undertake these projects.

Applications are now open for the second round of the scheme, closing 31 December 2012.

Any local council in NSW which meets the eligibility requirements and agrees to the conditions of LIRS assistance is eligible to apply. A council may submit an application (and may be eligible to receive a LIRS subsidy) for a maximum of two separate projects/programs. The projects/programs for which a council proposes to incur borrowings to be subsidised under the LIRS should be identified as part of Council’s infrastructure backlog or should enable the provision of new housing.

In announcing the guidelines for Round 2, the DLG has advised that preference will be given to projects/programs or groups of projects/programs with a total cost of at least $1 million. Applicants must provide evidence that project/program construction will commence within 12 months after the date of signing of the LIRS Agreement.

In considering projects for Round 2, it is noted that borrowing must be for identified infrastructure backlogs and that while the interest rate subsidy is a significant attractor, a funding source for the repayment of the loan principal and the remaining interest not covered by the subsidy would need to be identified with Council’s existing capacity.

Projects Identified for Round Two of the Scheme

The projects shown in the table below have been flagged for consideration in Round 2 of the program. Each project has planned borrowing within the 2012-13 Operational Plan and a sustainable funding source for the borrowings proposed.

Project	2012-13 Planned Borrowings	Additional Borrowings	Other Funding	Total Project Cost
City Centre Renewal & Improvement Program (including Stage 1 of Civic Arts Precinct (Mondo) redevelopment)	$1.6M	$2.6M	$500,000	$4.7M
General Revenue Component of AREAS	$913,000	-	-	$913,000

City Centre Renewal & Improvement Program (including Stage 1 of Civic Arts Precinct (Mondo) redevelopment)

The recent SRV funded a $1.6M annual program to commence City Centre Renewal & Improvements across Penrith and St Marys. The first project commenced was the renewal of Memory Park, Penrith. The second project is the refurbishment of Coachmans Park, St Marys in 2012-13. The funding strategy for these projects (first 2 years of the program) has been loan borrowing repaid by the SRV. It is proposed that the 2012-13 borrowing of $1.6M be combined with additional borrowing of $2.6M ($4.2M in total) to accelerate the program including streetscape works proposed for Station and High Streets, Penrith in 2013-14 and Stage 1 of the Civic Arts Precinct (Mondo) redevelopment in line with the recent development approval (fund $1M from the borrowing and $500,000 from Council’s property development reserve).

The loan repayments would be funded by the annual City Centre Renewal & Improvement Program and would allow for an accelerated delivery of the infrastructure. The commencement of the Civic Arts Precinct (Mondo) development will allow other funding partners to continue to be investigated including State and Federal grants, and other landowners and interested parties for future stages.

General Revenue Component of AREAS

In 2006-07 Council gained approval from the community and the DLG for an SRV to implement the Asset Renewal and Established Areas Strategy. The SRV built on contributions from Council programs and established an additional contribution from general revenue of $293K in the first year and $913K per annum thereafter to fully fund the strategy. Each year since the implementation of the program Council has borrowed the General Revenue component. It is proposed that the $913K borrowing included in the 2012-13 Operational Plan for this program be submitted as the second application to Round 2 of the LIRS.

Conclusion

Round 2 of the LIRS is now open. The scheme will provide an interest rate subsidy of 3% to approved applications for loan borrowing to address the identified infrastructure backlog.

Council has a number of funded infrastructure renewal programs.. This report identifies two current programs that meet the assessment criteria and have established sustainable funding sources to support loan borrowing. It is recommended that Council endorse the applications to the LIRS for the City Centres Renewal & Improvement Program and General Revenue Component of AREAS outlined in this report. Applications to Round 2 of the LIRS close on 31 December 2012.

RECOMMENDATION

That:

1. The information contained in the report on Local Infrastructure Renewal Scheme (LIRS) be received.

2. Council lodge an application for Round 2 of the LIRS for the City Centres Renewal & Improvement Program, in the amount of $4.2M as outlined in the report.

3. Council lodge an application for Round 2 of the LIRS for the General Revenue Component of AREAS, in the amount of $913,000 as outlined in the report.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Policy Review Committee Meeting 3 December 2012

A City of Opportunities

Affordable Housing

Compiled by: Teresa Luk-Leung, Social Planning Co-ordinator

Authorised by: Erich Weller, Community and Cultural Development Manager

Objective	We have access to what we need
Community Outcome	A City with equitable access to services and facilities (7)
Strategic Response	Base the provision of services and facilities on principles of social justice and equity (7.1)

Executive Summary

Council has identified the importance of the affordability of housing in contributing to a diverse and sustainable community. This includes both housing for purchase as well as for rental. To support the delivery of affordable housing Council has required major new urban release areas to have a range of dwellings, including smaller dwellings on compact lots. These smaller dwellings are more likely to be affordable for first home buyers.

Council has also sought to ensure the delivery of additional affordable rental housing stock in the City through contributions to Council by major new urban release area developers under voluntary planning agreements.

It is proposed that the affordable rental housing be delivered through a partnership with the Centre for Affordable Housing in the NSW Department of Family and Community Services – Housing NSW.

In December 2007 Council entered into a partnership with the Centre for Affordable Housing to progress affordable rental housing outcomes in the City. This partnership is also covered by Council’s Memorandum of Understanding (MOU) with Housing NSW, signed in June 2005, and which includes the objective to work together to deliver affordable housing outcomes in Penrith City.

Since then, a number of voluntary planning agreements have been signed between Council and respective landowners and developers who have made or agreed to make financial contributions towards the delivery of affordable rental housing in the Penrith Local Government Area. The timing of these contributions has largely determined the presentation of this report to Council.

Further recent discussions with the Centre for Affordable Housing confirm that a partnership between Council and the Centre is the most efficient and effective means for Council to meet its affordable housing commitments under the three voluntary planning agreements. Council is expected to receive over $1.6 million (subject to indexation) from these agreements.

The report recommends that the information in the report be received and that Council enter into an agreement with Housing NSW (the Centre for Affordable Housing) to deliver long term affordable rental housing in Penrith City.

Background

In contributing to building a sustainable community, Council has identified the affordability of housing in the City as an issue that requires action. Council acknowledges that the Federal and State Governments have principal responsibility for the delivery of affordable housing outcomes. However Council is well positioned to take a facilitation role and exercise leverage through partnerships to achieve affordable housing outcomes for the City.

In June 2005, Council adopted the “Sustainability Blueprint for Urban Release Areas”. The Blueprint is a policy document and a guide for Council, developers and relevant stakeholders involved in the planning and development of new release areas within the City of Penrith. The Blueprint states that “a minimum of 3% of all residential allotments to be provided for the purpose of affordable housing.” Alternatively, an appropriate monetary contribution to provide affordable housing units elsewhere within the City of Penrith is possible. This policy can only be implemented through a negotiated voluntary planning agreement between Council and urban release area landowners or developers.

Since then, Council has negotiated agreements with a number of landowners and developers of new release areas to secure their financial contribution towards the delivery of affordable rental housing in the City of Penrith. Further detail on these new release areas and their contributions to affordable rental housing is provided on pages 5 and 6 of this report.

Council signed a Memorandum of Understanding (MOU) with the then NSW Department of Housing in June 2005. The Memorandum identified a number of priority projects and matters that the two organisations agreed to focus on. One of these matters is affordable housing and the MOU makes specific reference to Council and the Department working together to “retain and develop new affordable housing opportunities.” The MOU makes reference to the support the Centre for Affordable Housing can provide to Council in identifying and developing affordable housing opportunities.

At the Policy Review Committee of 10 December 2007, Council endorsed the formation of a partnership between Council and the Centre for Affordable Housing in Housing NSW to advance the delivery of affordable rental housing in the City.

Partnership with the Centre for Affordable Housing

The Centre for Affordable Housing is a business unit of Housing NSW. The Centre works with federal, state and local government, non profit organisations and private companies to increase the supply of affordable housing. There are a number of services the Centre offers to organisations to help them deliver affordable housing as part of a financially viable project. They include brokerage, initial assessment, technical and investment advice, feasibility analysis, and financial assistance.

Over the years, the Centre has developed expertise and systems in delivering affordable housing in NSW with reference to financial modelling, leveraging equity contributions and facilitating partnerships. The Centre has coordinated and administered a number of tender processes on behalf of the NSW and Federal Governments that have resulted in the construction of numerous affordable housing dwellings in NSW. The Centre is also the State Government unit that has the responsibility to deliver the National Rental Affordability Scheme (NRAS) in NSW.

By partnering with the NSW Centre for Affordable Housing, Council can access the essential expertise necessary to maximise the delivery of affordable rental housing for low and very low income households.

Since the signing of the MOU between Council and Housing NSW in 2005, Council staff have been in regular contact with the Centre for Affordable Housing to monitor opportunities to advance the delivery of affordable housing in Penrith.

National Rental Affordability Scheme

The Commonwealth financial contribution to the construction of additional affordable rental housing stock in NSW is through the National Rental Affordability Scheme (NRAS). The NRAS is a Federal Government initiative to increase the supply of affordable rental dwellings for very low to medium income households because of the lack of affordable rental stock in the marketplace. The Scheme has been in place since 2008.

Under NRAS, successful applicants will be eligible to receive a rental incentive for each approved dwelling, on condition that they are rented to eligible low to moderate income households at 20 per cent below market rates and meet other legislative requirements.

The NRAS incentive comprises a Commonwealth Government incentive of $6,855 in the form of a tax offset or payment, and a $2,285 State Government incentive in the form of cash and/or other in kind support. The NRAS incentive payments are provided for 10 years and indexed annually with the rental component of the Consumer Price Index.

All State and Territory Governments including the NSW Government have agreed to contribute towards the Scheme. The NSW State contribution is offered in two forms:

· NRAS A – available for non-profit registered housing providers, providing the State contribution as an upfront capital contribution to the project;

· NRAS B – available for all eligible organisations including the private sector, providing a State Government contribution of $2,285 per year for 10 years.

There are four mandatory conditions for organisations applying for NRAS A. They are:

· Registration as a community housing provider in NSW – the applicant and owner of the dwellings constructed using funds from NRAS must be a community housing provider registered under the NSW Housing Act 2001.

· Delivering dwellings within the project for households eligible for public housing – the number of units in the project targeted to these households will be proportional to Housing NSW’s contribution to the project.

· Contribution to the Project Costs – preference will be given to applications where the registered housing provider’s total contribution to the project is at least 30 per cent of the total project costs.

· Offering security that the properties will be used for affordable housing in perpetuity - registered community housing providers must give Housing NSW security that the properties will continue to be used for affordable rental housing in perpetuity. If the organisation expects that any dwellings may need to be sold following the cessation of the Commonwealth annual incentive, the organisation must give Housing NSW security that the grant contribution from NRAS A will result in properties that will continue to be used for social housing in perpetuity.

NRAS A is the preferred option for affordable rental housing projects as it provides a greater financial contribution from the Federal and NSW State Governments and maximum leverage in the investment in projects by eligible registered community housing providers. Only Class 1 and Class 2 registered community housing associations (an explanation of Class 1 and 2 associations is provided in the next section of this report) are eligible to apply for NRAS A funds. The community housing association selects the eligible tenants based on their income and other criteria (e.g. single parent, people with disability) including the existing waiting list. It also manages the affordable rental dwellings and tenants. The life cycle maintenance costs of the dwellings are also built into the financial modelling for projects to ensure their sustainability.

Community Housing Associations

Community housing associations are not-for-profit housing organisations that offer secure, affordable, long term rental housing for people on very low to moderate income with a housing need. To build the capacity and market confidence in the community housing sector, the State Government has established a Registrar of Community Housing under the NSW Housing Act 2001. The Registrar of Community Housing is responsible for the registration and regulation of community housing associations in NSW and has been in place since 2007.

In 2009, the NSW Government introduced the NSW Housing Regulation after extensive consultation with the community housing sector. The Regulation provides a Regulatory Code for community housing associations that they must comply with in order to receive assistance from Housing NSW. The Regulatory Code focuses on tenancy management, asset management, housing project development expertise and ensures that community housing providers have the knowledge and skills commensurate to the scale of their business. This regulatory framework is important as the NSW Government has transferred the management of thousands of public housing dwellings and the resident tenants to community housing associations. This public policy direction has occurred across all State jurisdictions in Australia and is expected to continue into the future.

Under the Regulatory Code, NSW community housing associations are grouped into 4 classes: Class 1 - Growth Providers; Class 2- Housing Providers; Class 3- Housing Managers and Class 4- Small Housing Managers. The Regulatory Code is applicable to all 4 classes with each class proportionate to the scale of operation and the level of risk to which associations are exposed.

According to Housing NSW, there are 391 community housing providers registered with the Registrar. There are three Class1 and one Class 2 community housing associations operational currently in Penrith City. They are Affordable Community Housing Ltd (Class 1); Mission Australia Housing (NSW) Ltd (Class 1); BlueCHP Ltd (Class 1) and Wentworth Community Housing Ltd (Class 2). Please note that Affordable Community Housing Ltd has recently changed its name to Evolve Housing Ltd.

Class 1 are known as Growth Providers and this refers to organisations managing a large portfolio of properties (400 or more) and undertaking community housing development projects utilising private sector funds and investment. Organisations registered in this Class are subject to the highest level of regulatory requirements which reflects the greater level of resources committed by government to these providers and the increased level of risk involved in borrowing from financial institutions and delivering community housing development projects.

Class 2 are known as Housing Providers and this refers to organisations managing a large portfolio of properties (200 or more) and undertaking small scale projects to develop community housing. Organisations registered in this Class are subject to a medium to high level of regulatory requirements dependent on the scale of their community housing operations and their level of borrowing from financial institutions and investment in community housing development projects.

It is worthwhile to note that Affordable Community Housing Ltd. has a property portfolio of approximately 2,220 dwellings and Wentworth Community Housing has a portfolio of approximately 1,900 properties. These organisations do not have title to the majority of these properties but manage the properties and tenants on behalf of Housing NSW.

Affordable Housing in Penrith Urban Release Areas

Council has identified the importance of the affordability of housing in contributing to a diverse and sustainable community. This objective was incorporated in Council’s “Sustainability Blueprint for Urban Release Areas” and adopted by Council in June 2005. The Blueprint states that a “minimum of 3% of all residential allotments to be provided for the purpose of affordable housing”. Alternatively an appropriate monetary contribution to provide affordable housing units elsewhere within the City of Penrith is possible.

In negotiating voluntary planning agreements with major new urban release developers, Council recognised that affordable housing for purchase could to some extent be achieved by providing a range of lots including for smaller dwellings and in some cases medium density in close proximity to the release area retail and neighbourhood centre.

Council negotiated voluntary planning agreements that included affordable rental housing contributions with the following new urban area landowners/developers:

· Glenmore Park Stage 2 $1 million
(multiple landowners)

· Landcom/Caddens $337,000
(WELL Precinct)

· University of Western Sydney/ $265,000
South Werrington Urban
Village (WELL Precinct)

Note: These contributions are indexed so final amounts received will change.

Council has so far received $265,000 from Glenmore Park Stage 2 and $265,000 from the University of Western Sydney. A further $265,000 is expected to be received from Glenmore Park Stage 2 in the first half of 2013, with Landcom’s contribution of $337,000 also expected in mid-2013. The remaining contributions from Glenmore Park will be paid over the last seven years of the development. Thus there is up to approximately $1.13 million of contributions available for the proposed partnership between Council and the Centre for Affordable Housing.

Affordable Housing - St Marys Development

Lend Lease has affordable housing commitments under the State Planning Agreement with the NSW Government. This agreement requires Lend Lease to provide 3% of lots in the St Marys development (Ropes Crossing, Jordan Springs and the Central Precinct) for affordable rental housing. This will deliver up to 160 lots for affordable rental housing that will be owned and managed by a community housing provider. The Centre for Affordable Housing continues to provide advice to Lend Lease on the delivery of the commitment.

Affordable Housing – North Penrith

Landcom has an affordable rental housing commitment on the North Penrith site. These commitments are incorporated in the North Penrith Concept Plan approved by the NSW Department of Planning and Infrastructure in November 2011. These commitments were required as part of the contract of sale of the North Penrith site by the Commonwealth to Landcom.

The Concept Plan includes the provision by Landcom of 44 affordable/social housing dwellings. These will be for rental to households on low incomes.

The Way Forward

Information from the NSW Centre for Affordable Housing indicates it is expected that the next round of the NRAS will open in early 2013. To gain maximum leverage from the affordable housing contributions that Council has collected (and is expected to collect in 2013), it is recommended that Council participate in the coming NRAS funding round administered by the Centre. Council would allocate its affordable housing contributions on the basis that the funds will be used for a project to deliver affordable rental dwellings in the City of Penrith. These dwellings would be owned by the successful tenderer who would be responsible for managing the tenancies and maintenance for eligible very low and low income households in Penrith City. The Centre for Affordable Housing has, based on previous experience, advised that Council’s affordable housing contribution would most likely result in up to nine dwellings being delivered for long term affordable rental housing.

There are a number of advantages to Council by participating in the next NRAS funding round. Not only would Council be able to increase the number of affordable rental dwellings delivered in Penrith, Council will be able to access a range of quality legal and financial services rendered by the Centre. These include the preparation of legal tender documents, calling of the tender, project assessment, project selection and project monitoring. Given the expertise of the Centre in running the NRAS and the legislative requirements associated with it, Council can be assured of the openness and transparency of the process and the quality of the outcome delivered.

In addition, by working with the NSW Centre for Affordable Housing and using its proven systems, Council can save the extensive legal, management and administrative costs required if it was to coordinate its own tender process. Also, a Council tender process would not have access to the additional leverage provided through access to NRAS funds.

To take advantage of the coming NRAS funding round, it is proposed that Council enter into an agreement with Housing NSW to utilise the contributions collected for the delivery of affordable rental housing in the City.

This approach will protect the interests of Council and ensure that long term affordable rental housing will be made available targeting low and very low income households in Penrith City.

Conclusion

The collaboration between Council and the Centre for Affordable Housing provides an efficient and effective approach for Council to progress its affordable housing agenda. It provides an opportunity for Council to access the Centre’s affordable housing project development expertise and potential leverage to add value to Council’s available funds. An agreement between Council and Housing NSW will protect Council’s interest and ensure the affordable housing contributions made by Council will be used targeting low and very low income families in the City of Penrith.

This approach to delivering long term affordable rental housing utilising the affordable housing contributions to Council from developers under voluntary planning agreements is consistent with the in-principle policy decision endorsed by Council in December 2007.

RECOMMENDATION

That:

1. The information contained in the report on Affordable Housing be received.

2. Council enter into an agreement with Housing NSW (the Centre for Affordable Housing) to deliver long term affordable rental housing in Penrith City.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Policy Review Committee Meeting 3 December 2012

A City of Opportunities

Neighbourhood Renewal Program - Colyton and Penrith Neighbourhood Action Plans

Compiled by: Heather Chaffey, Acting Coordinator Neighbourhood Renewal Program

Jeni Pollard, Place Manager

Authorised by: Roger Nethercote, Group Manager - People and Places

Objective	We have access to what we need
Community Outcome	A City with equitable access to services and facilities (7)
Strategic Response	Base the provision of services and facilities on principles of social justice and equity (7.1)

Presenters Jeni Pollard, Place Manager

Heather Chaffey, Acting Coordinator Neighbourhood Renewal Program

Executive Summary

This report provides Council with a general overview of the Neighbourhood Renewal Program and a brief description of the community engagement processes undertaken in Colyton and the suburb of Penrith in 2011-12. This report is accompanied by Neighbourhood Action Plans for these suburbs. They are Appendix 1 and Appendix 2.

The Neighbourhood Renewal Program provides an integrated model of community engagement, cultural development and employment and enterprise development across identified disadvantaged neighbourhoods in Penrith City. The program responds to Council’s increasing emphasis on resourcing older established neighbourhoods and operates within a strengths based framework.

The program melds place making and creative community engagement with community cultural development practice and invests in the development of local enterprise and employment initiatives.

Colyton is a quiet family orientated neighbourhood, and many residents have lived there for a number of decades. Eleven engagement activities were conducted in Colyton and a total of 196 residents and businesses in Colyton were interviewed during this process. It is estimated a further 150-200 children and adults took part in small events but did not participate in an interview.

Penrith is quite a different neighbourhood; it has a much greater percentage of medium and high density housing, as well as many single people and older residents. A total of 158 residents and businesses were interviewed during the community engagement process. It is estimated a further 150-200 children and adults took part in small events but did not participate in an interview. A total of 12 community engagement activities took place in Penrith.

Bennett Rd Mural Project participants painting the mural and the finished work

A community planning session was held in both neighbourhoods. These sessions allow residents who have been involved in one or more previous activity to come together, hear the preliminary results of the engagement process and set some priorities for Council’s Neighbourhood Renewal team to consider in developing the Neighbourhood Action Plan with other Council staff.

Community priorities for each neighbourhood, generated during the community planning sessions, are discussed in more detail in the body of this report. These priorities are then incorporated in the Neighbourhood Action Plans for implementation over the period 2013 – 17. Some information regarding how these plans are negotiated across Council is also provided.

The report also provides an update on action to date in both Colyton and Penrith. It provides an update on other activities of the Neighbourhood Renewal Program including work in neighbourhoods which have endorsed Neighbourhood Action Plans, the Magnetic Places Neighbourhood Renewal Community and Cultural Grants Program, the Artist and Community Toolkit Workshop Series and various employment initiatives.

The report recommends that Council support the adoption of the Colyton and Penrith Neighbourhood Action Plans (Appendix 1 and Appendix 2) as its policy for the renewal of these suburbs.

Background to the Neighbourhood Renewal Program

Over recent years, Council has placed increasing emphasis on balancing the resources directed towards planning and implementation in new release areas to that of older established areas of the City. In 2006 Council endorsed a Neighbourhood Renewal Program to revitalise and enhance selected neighbourhoods, both urban and rural with an approach that integrates community and cultural development as well as supporting opportunities for local employment and training. The program is funded for 10 years through the Asset Renewal and Established Areas Strategy (AREAS) special rates initiative.

In 2011 Council was able to secure additional funding through a Special Rates Variation for the implementation of actions identified in Neighbourhood Action Plans.

The Penrith Neighbourhood Renewal Program is focussed on particular suburbs and rural localities which are considered to be relatively disadvantaged. The instrument used to determine this is the Australian Bureau of Statistics SEIFA Index of Relative Disadvantage which measures disadvantage across suburbs and regions. SEIFA is an abbreviation of Socio-Economic Index for Areas.

The program melds place making and creative community engagement with community cultural development practice and invests in the development of local enterprise and employment in priority neighbourhoods. Place making refers to collaborative community processes which create or revitalise gathering places. For the context of this report community engagement refers to the practice of consulting or involving residents in the work of Council in planning the renewal of their neighbourhood. Broadly community cultural development refers to the practice of actively engaging community members in the development of arts and creative or cultural projects based in their local community and reflecting the issues, strengths or ideas generated by those residents.

The Penrith LGA has 12 suburbs or rural localities considered to be of relative disadvantage compared to the NSW average, as calculated by the Australian Bureau of Statistics. These areas are (in alphabetical order) Cambridge Park, Colyton, Cranebrook, Kingswood, Llandilo, Londonderry, North Penrith (including the locality of Kingswood Park), North St Marys, Oxley Park, Penrith suburb, St Marys and Werrington.

To date Neighbourhood Action Plans have been developed and endorsed by Council for Kingswood Park (North Penrith), Londonderry, Oxley Park, Kingswood, St Marys, and Llandilo. This report summarises community engagement work in Colyton and the suburb of Penrith and presents proposed Neighbourhood Action Plans for these suburbs. Community Engagement work has commenced in North St Marys and Werrington.

These priority neighbourhoods may change when the SEIFA Index is updated with 2011 Census data.

A report was endorsed by Council in 2008 that outlined a planned approach for implementing the Neighbourhood Renewal Program across these identified areas. The adopted program for 2011-12 included Colyton and Penrith suburb. These neighbourhoods are the subject of this report and the Colyton Neighbourhood Action Plan 2012 and Penrith Neighbourhood Action Plan 2012 are provided as Appendix 1 and Appendix 2 of this report.

The agreed approach to Neighbourhood Renewal is to undertake extensive community engagement, both Council driven and in partnership with key stakeholders to develop a Neighbourhood Action Plan for each identified neighbourhood. Each plan is expected to be implemented over a period of approximately four years.

Neighbourhood Action Plans (NAPs) support a planned and coordinated approach to addressing the complex interplay of social disadvantage, access to economic and cultural participation, older physical infrastructure and generally poorer public amenity as well as reduced civic engagement. NAPs incorporate specific responses by Council that are required to address identified community issues and needs. Actions for implementation that are included in the NAP are reported to Council through the Operational Plan reporting process. Furthermore, the NAP and progress on implementation are also reported to the community through local activities and via local community newsletters.

It is envisaged that in the first instance the NAPs for Colyton and Penrith suburb will be implemented over four years. Some actions, such as those actions where Council agrees to further investigate a resident request, may not progress to implementation unless opportunities arise through external funding sources.

Some concerns residents have raised have not translated into actions which Council can take on board. Some of these are discussed later in this report.

This report will outline the methods of community engagement undertaken in Colyton and Penrith suburb and the results of this engagement process including resident priorities. The proposed Neighbourhood Action Plans are provided in draft as attachments to this report. The report recommends Council endorse these plans for implementation in Colyton and Penrith.

All statistical information included in the report is based on the 2011 ABS Census information.

Community Engagement

Engaging residents in planning is essential to the sustainability of any work aimed at improving the socio economic and cultural outcomes, as well as the physical environment of a neighbourhood. The engagement process aims to identify and build on the positive aspects of a neighbourhood as well as addressing issues raised by local residents.

Engagement creates opportunities for residents to influence decisions and planning which directly affects their lives. It can empower residents to take ownership of plans and completed works in their community. The engagement of local residents by Council is critical to the success of Neighbourhood Action Plans.

Importantly, many of the engagement activities undertaken build positive relationships between Council and residents in some of the more disadvantaged communities. Community engagement builds an understanding of civic decision making and facilitates an informed decision making process by Council and partner organisations.

Colyton

Colyton is an established area with a small industrial area along Roper Road. It is bounded by the Great Western Highway in the north, Ropes Creek in the east, the Western Motorway in the south and Marsden Road in the west. In 2011 there were about 7919 people living in Colyton. A map is included in Appendix 3.

The Aboriginal and Torres Strait Islander community makes up about 3.8% of the population in Colyton which is slightly above the Penrith average of 3%, and much higher than the NSW average of 2.5%.

Penrith City has a relatively young age profile, and the population of Colyton reflects this with the largest age groups all falling in the under 40 year age groups. However, Colyton does have a higher proportion of people in the post retirement age bracket 60 to 69 years, with 10.5% of the population falling into this ‘empty nester’ category compared to an average of 8.8% for Penrith City.

Like Penrith, most of the families living in Colyton are couples with children, with over 1000 households being of this type. Colyton has around 460 single parent families, or 17.2% of households which is higher compared with the Penrith City average of 14.3%.

The ancestry of residents in Colyton is quite typical with Australian, English and Irish the largest cultural groups. Even though they are small percentages, Colyton does have significant numbers of people from Philippine, Fijian and Lebanese background compared to Penrith City.

Nearly 20% of people in Colyton come from countries where English is not the first language. The most popular languages spoken at homes in Colyton include Arabic, Hindi, and Filipino/Tagalong.

As with Penrith, Colyton residents mostly identified with the Christian traditions of Roman Catholicism (34.5%) and Anglicanism (20.4) as their Religion. There are a growing number of people identifying with Islam which has risen from 1.9% to 3.7% since the 2006 census.

Incomes in Colyton are generally lower than incomes across Penrith City. The median weekly household income of Colyton is $1180, which is over $200 less than the average weekly income of Penrith residents ($1396). The number of households on Colyton on very low incomes (less than $600 a week) is 21.6% compared with 18.9 % for Penrith City.

“Colyton is quiet and the people are friendly. There is lots of noise and activity when the kids come and go from school which is great. We have lived here for 31 years. We love it”.

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Young people at Colyton and Penrith Family Fun Day activities

Community engagement activities in Colyton

Eleven community engagement activities were undertaken in Colyton. These included 3 special projects designed to engage less visible groups and the community planning session.

A total of 196 residents, and some business operators, were interviewed or took part in an activity or project. Each of these engagement activities is briefly summarised below.

- Bennett Rd School Fete 2011 – officers attended the event and interviewed families

- Resident Postcard – a reply paid postcard was delivered to 500 homes allowing residents to register their interest in participating in engagement activities

- Business Interviews – businesses on Carpenter St and Jensen St were interviewed

- Bennett Rd Mural project – children with intellectual disability and/or behavioural difficulties created a mural reflecting their aspirations for Colyton and their families

- Seniors Consultation – students from Colyton Trade High School served lunch to a group of seniors while Council officers recorded their experiences of life in Colyton

- Youth Skill and Employment Readiness Program – Hands On Colyton High – a group of disengaged students were supported to explore their employment and training options through a partnership between Council, TAFE NSW, and St Clair Youth and Neighbourhood Team.

- Street Survey – residents were interviewed outside local shopping strips

- The (re) Presenting Colyton project – women worked in partnership with a range of professional artists to further develop their skills, social connections and explore different art forms while reflecting on their neighbourhood and its public spaces

- Family Fun Days - two family fun days were held in Kevin Maley Park at which many local children and parents were interviewed

- Afghan Students at Colyton High School – a group of Afghan Students met with Council representatives to discuss settlement experience and education in Colyton

week 1

Hands on Colyton High project participants engaged in a number of workshops focussed on areas of employment including landscaping and metal work

The community engagement activities described above have been dependent on positive partnerships which have developed between the Neighbourhood Renewal Program team, artists and community organisations including; St Clair Youth and Neighbourhood Team, St Marys Area Community Development Project, Wirriimbi Designs Inc. Artists Chris Edwards and Fabri Blacklock, Bennett Rd Public School, Colyton Trade High School, TAFE NSW Western Sydney Institute, and the Ropes Crossing Skilling and Employment.

Community Planning Session

A community planning session was held at Colyton Neighbourhood Centre on Monday June 4 2012. Twenty-one local residents attended the session, sharing a meal and providing valuable local insight into the priorities of local residents for the neighbourhood.

Council Officers reported back in some detail the many stories and issues residents shared through the engagement activities about living in Colyton. The information was broken down into four themes including;

- Neighbourhood Strengths

- Social, Cultural and Economic

- Places and Parks and,

- Traffic, Transport and Footpaths

After the feedback residents were invited to set some priorities on the many resident requests made in each theme. The meaningful conversation that emerged as part of this activity allowed residents and Council Officers to get an understanding of priorities for the neighbourhood as a whole. This is particularly important as many engagement activities target a specific group within the community; the prioritisation dialogue creates broader understanding of issues across the neighbourhood.

A few key priorities set by residents are briefly discussed below. Greater detail is included in the Colyton Neighbourhood Action Plan (Appendix 1).

Community Priorities - Colyton

A community hub: residents identified the need for a community hub which would deliver some support services and social programs for residents. Particularly residents requested support for people who are socially isolated including older residents, and families living on low and very low incomes.

Residents participating in the Community Planning Session were very keen on intergenerational activities which they felt might address antisocial behaviour through role modelling and increasing connections between older residents and young residents.

Safety on roads and footpaths: Residents made many requests relating to footpaths, traffic management and pedestrian safety. This was a clear priority.

A ‘stand out’ park in Colyton: Residents requested that at least one of the local parks be upgraded to be more of a ‘stand out’ park including a BBQ area, nice walking paths and play equipment for children. Generally, Colyton residents requested more frequent maintenance of existing parks.

Advocacy around an upgrade to local shopping strips: residents are quite concerned about the amenity of local shopping strips, especially the Jensen St shops. They envisage a shopping area which looks nice and is alcohol free.

Public transport: Residents feel that local bus services are insufficient. They would like to see more frequent bus services and suggested smaller buses such as the ‘nipper’ bus service.

Carpenter St shopping strip

Issues raised by residents which require no further action - Colyton

Residents in Colyton were concerned about potholes and dips in roads. Several sites were reported to Council during the engagement process. In negotiation with the City Works Manager it has been identified that many of these issues had been resolved in the year the engagement process took place.

There may be some ‘dips’ on some streets as a result of concrete dish drains at intersections. There are no current plans to upgrade drainage in this area and hence some of these dips will remain.

Colyton – Action to date

Council’s Children’s Services Department and Parks Department are working together to consult local residents, specifically children, on a number parks which are scheduled for play equipment upgrades this financial year. The Neighbourhood Renewal Program is negotiating adding value to the proposed play equipment upgrade in Colyton at Kevin Maley Park by contributing additional resources to support the development of a ‘stand out’ park.

The Neighbourhood Renewal Program has also provided assistance to St Clair Youth and Neighbourhood Team (SCYNT) in launching their youth outreach service in Colyton and in an application for Community Builders funding for a community development worker to be based in Colyton.

Penrith suburb

Residents and small business within the residential area of Penrith was the focus of the Neighbourhood Renewal Programs work in the neighbourhood. Boundaries for this target neighbourhood included Station St, High St, Parker St and Jamison Rd. A map is included in Appendix 3.

In Penrith in the 2011 Census there were 11,803 people living in 5,690 dwellings with an average household size of 2.2. The population of Penrith has increased by 413 people since 2006.

The suburb of Penrith is quite a different neighbourhood to Colyton. While it is also a quiet area and had many families engage with the Neighbourhood Renewal Team during the course of our work there, it is unique in that it has a much higher percentage of medium and high density housing. Across Penrith City, about 80% of dwellings are separate houses, but in Penrith Suburb this housing type makes up less than half of the stock.

Like Colyton, Penrith suburb has a relatively high percentage of Aboriginal and Torres Strait Islander residents with 4% compared to Penrith City which is 3%.

Increasingly Penrith suburb is culturally diverse. The proportion of residents speaking a language other than English at home has risen in Penrith since 2006 by 333 residents taking it from 11.5% to 13.9% in 2011. Compared to Penrith City (14.6%) however this percentage is slightly lower.

The prominence of high density dwelling like units and apartments (17.7%) and medium density dwellings like townhouses (34.1%) is because of Penrith Suburbs proximity to the town centre, employment centres and public transport nodes such as the train station. The types of housing available in Penrith means it is attractive to smaller households, like retirees who have downsized their home, or young people entering the workforce.

There are over 1900 lone person households living in Penrith suburb, which is 37% compared to the Penrith city average of 18.6%. There are 450 people over the age of 85 years living in Penrith which is nearly 4% of the population compared to an average of 1% in this age bracket for Penrith City. This ‘frail aged’ category has increased by 70 people since the 2006 census. Another increase in Penrith was single parent families which increased from 665 to 726 households between the 2006 and 2011 Census.

Another impact of the higher density housing in Penrith suburb is on tenure, with 46.8% of people renting their residence compared to 26% in Penrith generally. High rates of renting in an area can indicate a more transient type population, which can lead to the area feeling less ‘settled’ than other suburbs in Penrith City.

Community engagement activities in Penrith

Twelve community engagement activities and projects were undertaken in Penrith, including the community planning session. This created opportunities for the Neighbourhood Renewal Team to discuss the strengths and needs of the neighbourhood with a range of stakeholders. Events like family fun days and consultations facilitate a relationship between Council and the residents and allow for frank and open discussion at a local level.

A total of 158 residents, and some business operators, were interviewed or took part in these exciting projects. It is estimated a further 150-200 children and adults participated in events and projects but were not formally interviewed. Each of these engagement activities is briefly outlined below.

family fun 1 penrith 001 family fun 1 penrith 025

Residents enjoying the Penrith Family Fun Day in November 2011

- Resident Postcard - a reply paid postcard was delivered to 500 homes allowing residents to register their interest in participating in various engagement activities

- Street Surveys - residents were interviewed outside local shopping strips

- Business Interviews– businesses on Stafford St were interviewed

- Family Fun Days- two family fun days were held in Spence Park at which many local children and parents were interviewed

- Penrith Playgroup – several parents were interviewed regarding their family experiences in Penrith

- P&C Penrith Public School – a focus group was held with the P&C group which focussed predominantly on pedestrian safety around the school

- Torton Place interviews – a small group of residents living in social housing in Torton Place were interviewed, these residents were members of the Torton Place Action Group

- Young People – a youth consultation was held at PCYC Penrith, numbers were reduced by the cancellation of a youth event at which the team had hoped to promote the consultation

- Artist and Community Toolkit Walk Around – this session was led by the Cultural Development Officer Local and brought together a range of planning professionals and residents to walk around Penrith suburb and reflect on its assets and the interplay between its built environment and the cultural and social life of the neighbourhood

- Seniors Consultation –10 older residents attended a lunch at Penrith RSL Club

- Disability Consultation – 4 residents living with disability attended a lunch at Penrith RSL Club

Penrith Disability consultation participants “Penrith, on the whole, in the CBD is very accessible. When I first came here 35 years ago, there was no access. Now the CBD and Jamison Rd are excellent.”

Community Planning Session

A Community Planning Session was held at Penrith RSL Club on Wednesday July 4, 2012. 14 residents participated in the dinner and shared their ideas for building on local strengths and setting priorities for local improvements.

Council Officers reported back in some detail the many stories and concerns residents shared during engagement activities regarding living in Penrith. The information was broken down into four themes including;

- Neighbourhood Strengths

- Social Cultural and Economic

- Places and Parks and,

- Traffic, Transport and Footpaths

Residents were invited to set some priorities after they received feedback on the many requests made in each theme. The grass roots conversation that emerged as part of this activity allowed residents and Council Officers to get a sense of priorities for the neighbourhood as a whole. This is particularly important as many engagement activities target a specific group within the community; the prioritisation dialogue creates broader understanding of issues across the neighbourhood.

A few key priorities set by residents are briefly discussed below. Greater detail is included in the Penrith Neighbourhood Action Plan (Appendix 2).

Community Priorities - Penrith

Community programs: residents agreed that programs for families, young people, older people and residents with disability are a priority. Where programs exist residents felt they could be better promoted.

Public safety and amenity: residents were generally concerned about public safety at Penrith Railway Station and along High St. Many residents spoke about graffiti at the Stafford St shops. Residents are also concerned about dumping and the accumulation of junk mail outside rental properties.

Economic development: many residents spoke about a desire to be able to eat and socialise in Penrith City Centre in the evening. This was linked to being an attractive place for young adults to live and work.

Children enjoying the Penrith Family Fun Day in April 2012

Issues raised by residents which require no further action - Penrith

Not all resident requests are actionable. The following issues are recorded as some residents felt strongly about them, but in negotiation across Council it has become evident that these issues require no further action.

As indicated above the Penrith Public School P&C was concerned about traffic management around the school and requested that Council investigate. Council has investigated this matter and has been working in partnership with RMS to address some of the issues of concern. The school is encouraged to continue to work with its families to encourage safe driver behaviour.

Residents of Mountain View Retirement Village presented a number of concerns regarding the land behind the retirement village and the management of weeds along Showground Creek. It is important to note that this strip of land is currently owned by the Panthers Group and Council continues to advocate to the landowner on this issue. The Panthers Group maintains a buffer zone between the Retirement Village and the creek.

Some residents requested a footpath on Barber St, and this work has recently been completed on the southern side.

A number of barriers to wheelchair access were identified by residents who have a disability. These barriers have been further investigated and will continue to be negotiated to pursue a positive outcome. Site constraints present significant barriers to the resolution of many of these requests.

Penrith – Actions to date

The Neighbourhood Renewal Team has provided information and support to the Church Of Christ located in Penrith regarding sourcing funding and support for social programs they would like to coordinate in the neighbourhood.

Torton Place has been assessed for road resurfacing and negotiations continue.

Council’s Community and Cultural Development Department continues to provide support to the Torton Place Action Group and is assisting them with planning for a clean up day in 2013.

Pedestrian safety surrounding Penrith Public School has been further assessed. Pedestrian safety surrounding Centro Nepean has also been reassessed and negotiations continue.

Developing Neighbourhood Action Plans

The Neighbourhood Action Plans for Colyton (Appendix 1) and Penrith (Appendix 2) were negotiated by the Neighbourhood Renewal Coordinator and Place Manager in partnership with relevant officers, coordinators and managers across Council.

All actions listed in the plans have been discussed and drafted in collaboration with relevant staff. Many of the actions require minimal funding and can be achieved within existing budgets. Some actions will require resources to be allocated from within the funds Neighbourhood Renewal secured as part of the Special Rates Initiative in 2011.

Generally, Neighbourhood Action Plans are expected to be complete within four years.

Highlights on the implementation of existing Neighbourhood Action Plans

Along with current engagement activities, and cultural and employment related programs, the Neighbourhood Renewal Program also supports the implementation of a number of actions and activities identified in previous Neighbourhood Action Plans (NAPs). These NAPs cover Kingswood Park, Londonderry, Oxley Park, Kingswood, St Marys and Llandilo.

Many services across Council contribute to the delivery of identified actions and priorities in these communities. Some of the implementation highlights for the past 12 months include:

Red Cross Park Kingswood

The Neighbourhood Renewal Program worked closely with the Public Domain Amenity and Safety Department to deliver enhancements in Red Cross Park in Kingswood. Artist Henryk Topolnicki delivered seating with a design which reflects links to the local community, as well as the history of the park and its close proximity to the hospital. Park enhancements also included bollards and lighting.

The park was launched on the morning of 1^st December, 2011 by former Mayor, Clr Greg Davies. The launch was attended by a diverse range of local residents, Red Cross Society committee members, Council staff, and residents.

Kingswood Park Neighbourhood Action Plan

The Kingswood Park NAP which was the first developed under this model was reviewed this year in partnership with the Kingswood Park Action Group. The review determined that all actions listed within the plan have now been completed.

Highlights have included the redevelopment of a pocket park in Kingswood Park and the continuing work of the Kingswood Park Action Network in providing coordinated family support and activities and programs.

Other activities of the Neighbourhood Renewal Program

In addition to the engagement activities held in Colyton and Penrith a range of other projects have been supported by the Neighbourhood Renewal Program over the previous 12 months.

The Magnetic Places Neighbourhood Renewal Community and Cultural Grants Program

Twelve local projects were funded through the Magnetic Places Program in 2011-12. Programs receive support from Council officers in the application process and also during the life of the project. Applications received included community organisations, churches, cultural organisations, artists and local residents with a focus on community engagement and place making across the LGA.

Council will receive a report on this program by the end of 2012.

Artist and Community Toolkit Workshop Series

The Artist and Community Toolkit is a series of workshops for the professional development of artists, community workers and cultural practitioners working in community cultural development in Penrith. In 2011-12 workshops included:

Workshops included presentations on; grant sources and writing, contracts and business structures, online communities, and perceiving place.

Supporting Job Service Australia Providers

A Professional Development Training series for local Job Service Australia Providers was implemented in 2012. Sessions included:

· Motivational Interviewing with facilitator Alison Bell

· Communicating with People with Mental Health or Emotional Issues with facilitator Lane Blume

· Respecting Diversity with facilitator Grace Leotta

Two Employment, Training and Enterprise Networking breakfast events were also provided for JSA providers. A broad range of local employment, education, training and community service providers attended. These events provided an opportunity for services to connect with one another and share information as well as presentations from professionals in the industry. The sessions assist the JSA providers to enhance their service delivery to unemployed people in Penrith City.

Conversations about Work – an initiative exploring barriers to employment for the Southern Sudanese Community of Penrith

The Conversations about Work report was launched in June by the former Mayor, Clr Greg Davies. The report includes detailed information about the Southern Sudanese community’s experiences looking for work and associated challenges including transport, housing, childcare and English proficiency.

Community Engagement Training

In order to support the Strategic Planning Department with the community engagement work involved in developing the Community Strategic Plan the Community Engagement Officer led the development of three workshops and facilitated the first of these. The first of these workshops provided an introduction to community engagement skills, and the two following workshops facilitated by Grace Leotta provided strategies and information on inclusive engagement and managing difficult behaviours in community engagement.

North St Marys and Werrington

Community engagement work has commenced in both North St Marys and Werrington for the year 2012-13 to prepare NAPs for these suburbs. Major stakeholder meetings have been held and the Information and Cultural Exchange have been contracted to deliver an innovative and exciting Hip Hop and digital stories engagement program across both areas with children and young people. Workshops have commenced with young people at Chifley College Dunheved Campus in North St Marys and at Werrington Youth Centre.

A BBQ was held in partnership with North St Marys Neighbourhood Centre as a first step in engaging with Aboriginal families in North St Marys. Activities targeting Aboriginal families will continue in 2013.

A Family Fun Day was held in North St Marys, also in partnership with North St Marys neighbourhood Centre. This was a highly successful local event with around 100 children, young people and families attending. Similar events will be held next year.

A community breakfast has been held at Rance Oval in Werrington. Many families attended this engagement activity, approximately 120 children and adults.

Preliminary results in both communities suggest residents are proud of their neighbourhoods but have concerns particularly regarding alcohol and other drug use in public spaces surrounding local small business strips.

Conclusion

The Neighbourhood Renewal Program provides an integrated model of community engagement, cultural and employment and enterprise development in older established neighbourhoods. All activities seek to build on the strengths and potential within each community.

The Penrith Neighbourhood Renewal Program is focussed on suburbs considered to be of relative disadvantage as measured through the ABS SEIFA Index, including Colyton and Penrith.

The engagement process in Colyton and Penrith utilised a range of creative methods, including arts based programs, place based workshops, meeting with existing community groups, small local family events, listening posts and surveys. There was also a specific strategy to meet with specific subgroups of residents such as residents with disability in Penrith and young people from Afghanistan in Colyton.

Community Planning Sessions were held in both neighbourhoods and contributed to the final documentation of the resident priorities and concerns. These sessions supported the development of the Colyton Neighbourhood Action Plan and Penrith Neighbourhood Action Plan. These plans are provided as Appendix 1 and Appendix 2 to this report. All actions within these plans have been carefully negotiated with the relevant Council officers. Some actions are already underway.

Substantial work is continuing in other Neighbourhood Renewal areas and projects are delivering positive outcomes for the community. Progress is being made on the actions identified in the plans already endorsed by Council in previous years for these areas and the Neighbourhood Renewal Program continues to actively engage with local communities to build capacity and contribute to wellbeing.

RECOMMENDATION

That:

1. The information contained in the report on Neighbourhood Renewal Program - Colyton and Penrith Neighbourhood Action Plans be received.

2. Council endorse the Colyton Neighbourhood Action Plan 2012 and Penrith Neighbourhood Action Plan 2012 as provided in Appendix 1 and Appendix 2 to this report.

ATTACHMENTS/APPENDICES

1.	Colyton Neighbourhood Action Plan 2012	7 Pages	Appendix
2.	Penrith Neighbourhood Action Plan 2012	10 Pages	Appendix
3.	MAPs Colyton and Penrith	1 Page	Appendix

Policy Review Committee Meeting 3 December 2012

A City of Opportunities

Penrith City Children's Services Cooperative Ltd

Compiled by: Janet Keegan, Children's Services Manager Operations

Marlene Cauchi, Management Accountant - Children's Services

Authorised by: Stephen Britten, Acting Director

Objective	We have access to what we need
Community Outcome	A City with equitable access to services and facilities (7)
Strategic Response	Base the provision of services and facilities on principles of social justice and equity (7.1)

Presenter: Max Friend, Chairperson, Penrith City Children’s Services Cooperative Ltd

Executive Summary

This report provides information on the operations of the children’s services auspiced by Council and managed by the Penrith City Children’s Services Cooperative (PCCSC) for the period July 2011 to June 2012. The report includes information on the financial operations of the services managed by the Cooperative. The report recommends that the information be received and that Council underwrite the operations of the PCCSC for a further period of 12 months.

Background

The PCCSC became effective from 1 January 2003 and was created to manage a number of children’s services on Council’s behalf including long day care, preschool, before and after school and vacation care. In 2008, the Board also took on the management of St Marys Occasional Children’s Centre following its co-location with St Marys Children’s Centre. The structure of the Cooperative is a Board of 15 Directors including seven parent representatives, three Councillors, one staff representative, three community representatives and a representative of the General Manager. The Board meets on a bi-monthly basis and operates under Council delegation as a non-trading entity. The Board looks at broad policy matters, sets the direction for children’s services and makes major decisions that affect the provision of children’s services. Parent Advisory Committees, elected annually at each site, provide valuable input into the operational aspects of individual services.

On Council’s behalf, the Board manages 26 facilities encompassing 17 long day care, five preschools, nine before and after school care services, six vacation care and one occasional care service. (Cooinda Children’s Centre closed in December 2011.) Approximately 4,000 children aged 0-12 years attend the services annually with approximately 300 staff employed in centre-based service delivery including permanent, temporary and casual employees working in full-time and part-time capacities.

Children’s Services has a broad activity in Council’s Strategic Plan for the City, to deliver high quality children’s services that are affordable, accessible and viable. Linked to this activity are the four major goals in the Board’s Strategic Plan (2009-2012) – being a leader in quality, sound financial management, enabling a skilled workforce and being known and respected as a provider of high quality not-for-profit services. It is pleasing that a number of key strategies within these goals have been implemented during the period of review. Following the previous year’s favourable operational financial outcome, this year Children’s Services has focussed on consolidating service delivery to the high levels expected by the community. In an effort to address some of the challenges faced during the year, the Board, along with the leadership and management team, have focussed attention on a variety of initiatives, a snapshot of which are highlighted in this report. The following comments provide information on some of the operational aspects of the children’s services managed by the Cooperative, as well as a summary of the financial reports for the period July 2011 to June 2012.

The Children’s Services Program

The Children’s Services program is focused on delivering high quality children’s services that are affordable, accessible and viable. There were approximately 4,000 children who utilised the services during the year with an increase of new families, indicating rising popularity. For the cumulative period for the year July 2011 to June 2012, of the six components of children’s services, two achieved better than projected utilisation targets (preschool and vacation care) , one was on target (long day care) and three achieved utilisation below target (occasional care and before and after school care). During the previous reporting period, a comprehensive marketing and promotions plan was completed with significant strategies which were implemented during this current reporting cycle.

Annual Customer Survey

The children’s services annual customer satisfaction survey was undertaken in September/October 2011, the results of which have been analysed. Parents were asked to identify their satisfaction and perception in a number of key areas including rating their centre in 26 areas, rating the quality and their confidence in the service. Parents were also invited to make suggestions for improvement. Where issues were identified at particular sites, the matters were addressed with services individually. In summary, services were rated excellent to good with particular feedback made about the high quality of the centre staff. There are always opportunities to improve the way in which services are delivered and the Children’s Services Coordination Unit is working with the staff to identify strategies to continue to support and develop our number one resource, the staff. In addition, work is being progressed on ways to improve communications between parents, staff and children.

Building and Playground Upgrades

Children’s Services continuously strives to maintain services as aesthetically pleasing and safe environments for children, families and staff. To this end a significant number of building and playground upgrades have been completed during the financial year being reported on. The Board is making more provision than ever for building and playground upgrades to meet the ongoing challenge of ageing buildings.

Enrolment of Children from an Aboriginal Background and Children with Disabilities

Of particular note during this reporting period is the increased and sustained enrolment of children from an Aboriginal background across Children’s Services with the support of significantly reduced preschool fees for Aboriginal families and the support of the SAACS (supporting Aboriginal access to children’s services) project. The SAACS worker is the first point of contact for Children’s Services for Aboriginal parents which is then followed up with assistance through the enrolment process and liaison with the family some weeks after enrolment. The SAACS worker has been working with centres to build their capacity to include families from an Aboriginal background. In addition, in 2012, Children’s Services embarked on a partnership with NGROO Education to increase the enrolments of Aboriginal children specifically in preschool services. These enrolments have increased 55% in the last 12 months.

Support to improve access for children with ongoing high support needs has been provided by the commonwealth funded Inclusion Support Subsidy (ISS). This program builds the capacity of services through the development of service support plans to include children with ongoing high support needs into mainstream services. ISS funding enables services to engage an additional staff member but there is a significant shortfall in the funding received and the cost of employing additional staff which needs to be met by services. It is this gap in funding that is provided by Council to the Cooperative’s operations. With the assistance of external funding (including ISS funding), Council’s children’s services enrolled approximately 90 children with ongoing high support needs and disabilities during this reporting period across the services managed by the Cooperative.

Curriculum Implementation

Curriculum implementation is a critical indicator of the high quality of service delivery across the children’s services sector. During this reporting period, the Children’s Services Curriculum Renewal Group has continued to provide ongoing training and support to services to understand the principles and practices of the Early Years Learning and My Time Our Place Frameworks and how these relates to their everyday practice. In addition, one of our early childhood educators has provided tailored support to each service which has substantially escalated the engagement and understanding of staff teams in the new curriculum. Our staff teams have made a great deal of progress in their understanding of the new framework and are now confident, not only in using it in their work with children but in articulating it to others. It has placed our children’s services in a position of strength as they begin to engage with the requirements of the National Regulations and Quality Standards which came into effect in 2012.

There are a number of other ways that children’s centres have added value to the curriculum and program provided for children. Synergising with Munch and Move for the younger age group is the Active After School (AAS) initiative for children of school age attending children’s services. This initiative aims to enhance the physical level of Australian primary school children and operated at all of our school age care services during this reporting period for two afternoons a week. Activities are chosen by the children and have included circus skills, oztag and soccer. It is funded by the Australian Sports Commission.

The Paint Penrith REaD (PPR) project, supported by Council and the Board, and led locally by Mission Australia, has substantially increased its profile during this reporting period. The focus of the project is on promoting the importance of reading to children from birth as research clearly shows this has positive literacy outcomes for later life. All of Council’s children’s centres and libraries again participated in National Simultaneous Storytime in May this year and Council’s centres are ‘thinking smarter’ about literacy initiatives at each site and branding activities under PPR.

Workforce Professional Development

Children’s Services concluded a project with FAMS (NSW Family Services Inc.) during this period, on a federally funded project aimed at improving collaboration and referral between early childhood and family support services. This is particularly important given changes to the child protection (Keep Them Safe) legislation where there is increasing onus on childcare centres to support families who fall under the threshold for risk of significant harm. For our staff, outcomes have been in increased confidence in supporting vulnerable families, knowing when to offer help, knowledge of family support services and staff ability to make effective referrals. Other professional development and training for the cohort of children’s services staff has continued, building the capacity of the services to be responsive and meet the needs of customers. Of particular note is the high number of children’s services staff accessing Council’s Educational Assistance program and the Board’s Tertiary Bonus Scheme for tertiary training. Other training accessed by staff has included child protection, asthma and anaphylaxis management and the National Quality Framework.

Funding for Child Care Links

Federal funding for the Child Care Links (CCL) program has been extended to June 2014. It is now funded under the Family Support Program umbrella and the outcomes changed to focus on service delivery to the most vulnerable sections of the community including a strong focus on Aboriginal families as part of the Federal Government’s commitment to the Closing the Gap initiative. Through CCL funding, a supported playgroup has been developed in St Clair Primary School, co-facilitated by staff from Stepping Stones Early Learning Centre, building relationships with local families and the school. This dovetails with the significant work being undertaken annually across all of Council’s children’s centres with transition to school and high school. The Links project has also worked with other service providers in St Marys in developing a therapeutic playgroup for children experiencing speech delays as this was identified as a high need in the St Marys area. This initiative was accompanied by training workshops for early childhood and school staff in identifying and supporting children with speech delays in those environments and information on activities and teaching strategies.

Children’s Services Business Approach

During the year, children’s services has strengthened its business model approach to the management of centres. The appointment of a Business Coordinator dedicated to Children’s Services has further strengthened and streamlined business practices across all services managed by the Cooperative. Significant attention has been paid to the issue of fee payment and billing and management of debt and there is still work to be done and improvement to be made in this area. Productivity initiatives have included upgrades to the software for the management of children’s enrolments, attendance and family fees as well as efficiencies from centralised financial systems and global contracts for cleaning and garden maintenance.

Financial Results

The services managed by the Cooperative reported an operating surplus from ordinary activities of $50,000 for the 2011-12 year. This surplus was achieved from revenues of $17,282,000 with expenses for the same period being $15,746,000. This surplus result is after a contribution from Council of $181,000 as well as transfers from Cooperative services to a number of operational reserves of $1,667,000. These reserves include provision for playground/building upgrades, bus replacement, centre equipment, advertising and marketing.

Income derived from the provision of childcare, as represented by child care fees and child care benefit (CCB) was $14,600,000 which is an increase of 4.5%. The attainment of this income is essentially attributed to the favourable utilisation rates achieved by the Cooperative’s various service types. Grant funding of $2,592,000 was provided by both the State and Federal Governments. This increase of 33.4% demonstrates the Cooperative’s strong commitment to lobbying for additional grant funding and the achievement of some very tangible results in the reporting year.

Employee costs for 2011-12 were $13,570,000 which is an increase of 4.0%. Reflective of the industry within which the Cooperative operates, employee costs account for the largest category of expenditure and comprise 77.9% of the total cost of the Cooperative’s operations. Expenditure on materials, contracts and other expenses were $2,176,000 which is an increase of 13.9% upon last year’s result. This was largely the result of playground and building upgrades undertaken at a number of Children’s Centres.

Council is committed to financially supporting the initiatives undertaken by the Cooperative which is reflected by the subsidy provided to the Cooperative of $181,000 (2010-11 $220,000). This subsidy provides essential funding for the Inclusion Support Program and St Marys Occasional Care. Council makes significant other financial contributions to children’s services overall which is outlined through the annual Operational Plan. The financial outcome for the services managed by the Cooperative for the financial year 2011-12 is considered a good result and is testament to the strong financial management of the Cooperative’s services. For the children’s services managed by the Cooperative, the maintenance of utilisation levels is critical to their financial viability and the external grant funding is of high importance to be able to sustain service delivery at current high levels.

Conclusion

The establishment of the Penrith City Children’s Services Cooperative in 2003, has proved to be an effective management model for the children’s services sponsored by Council. The favourable outcome for the 2011-12 financial year is an excellent achievement given the current financial environment, and provides some necessary equity to better position the services for the coming years. The Board of Directors is well aware of the complexities of the operation of children’s services and the challenges that this brings and maintaining a balance between services that are viable, accessible and affordable is high on the Board’s agenda. Sustaining the quality of service provision for which Council’s services are known is a key driver.

The Penrith City Children’s Services Cooperative is strongly committed to the provision of quality not-for-profit services for children. Affordability continues to be the driving factor for utilisation levels across all service types and balancing this with viability is a key priority. Lobbying and advocacy continue in an attempt to ensure that issues related to children’s services, and particularly issues related to the not-for-profit sector, are raised and have a high profile. Continued compliance with the new National Law and Regulations is testament to the skill, motivation and dedication of the children’s services staff and the support provided by the Internal Coordination Unit.

The Board is under no illusion that the year ahead will hold many challenges in its quest to ensure the children’s services remain viable within a climate of increased competition, legislation and regulation requirements and the challenge to maintain a skilled workforce. Some of the known challenges for children’s services for the year ahead include the National Quality Framework, possible changes to external funding, maintaining ageing assets, marketing and promotions and maintaining utilisation. Children’s services and the Board will need to keep abreast of emerging issues so that sound change management practices are adopted and the high quality of service provision is sustained.

During the financial year 2011-2012, there were no significant changes in the state of affairs of the Cooperative. The Annual General Meeting of the Cooperative was held in October 2012. The Council’s representatives on the Board are Councillors Michelle Tormey, Prue Car and Ross Fowler OAM. The General Manager’s representative and Company Secretary on the Board is Group Manager – Finance Vicki O’Kelly.

RECOMMENDATION

That:

1. The information contained in the report on Penrith City Children's Services Cooperative Ltd be received.

2. Council agree to underwrite the operation of Penrith City Children’s Services Cooperative Ltd until the presentation to Council of the Penrith City Children’s Services Cooperative Ltd Annual Report for 2012/13.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Policy Review Committee Meeting 3 December 2012

A Liveable City

City of Penrith Regional Indoor Aquatic and Recreation Centre Ltd - Annual Report and Board of Directors

Compiled by: Greg Crawford, General Manager - City of Penrith Regional Indoor Aquatic & Recreation Centre Ltd

Authorised by: Wayne Mitchell, Group Manager - City Infrastructure

Objective	Our public spaces encourage safe and healthy communities
Community Outcome	A City with active and healthy communities (19)
Strategic Response	Provide community facilities, and recreation and leisure programs, that encourage healthy activity (19.1)

Presenters: Alan Brown - Penrith Regional Indoor Aquatic & Recreation Centre Ltd - Chairperson's Report

Greg Crawford - General Manager - "Ripples" City of Penrith Regional Indoor Aquatic & Recreation Centre Ltd

Executive Summary

The report to the Council details the performance of the City of Penrith Regional Indoor Aquatic and Recreation Centre Ltd for the financial year 1 July 2011 - 30 June 2012.

Financially the company had a net deficit of $61,323 which was $19,498 more than budget (-$41,825). When compared to total revenue, this represented a 1.35% variance to budget.

Both income and visitations were adversely affected by a wet, cool year and renovation works.

Total visitations to the centre decreased by 14% compared to the previous year but revenue only decreased by 3.77% and expenses decreased by 0.54%.

Hydrotherapy increased revenue by 8.4% on the previous year while decreasing expenses by 1.2%.

Ripples invested $126,326 into repairs and maintenance of Council’s asset.

The swim club moved from 9^th to 8^th in the state club rankings.

The report recommends that the information be received and the Council agree to underwrite the Company for a further period of 24 months from 1 July 2012, with the condition that the presentation of the Penrith Regional Aquatic and Recreation Centre Ltd Annual Report for 2012/13 be provided within 6 months of the end of the financial year.

Background

This report to Council follows the eighteenth Annual General Meeting of the Company held on 14 November 2012 for the financial period 1 July 2011 to 30 June 2012.

The Chairperson of the Board, Alan Brown and the General Manager, Greg Crawford will be in attendance tonight to make a short presentation. Extracts from the company’s most recent annual report are provided below. These give an overview of key aspects of the business during the period July 11 – June 12.

Chairman’s Report

“I am pleased to present the Chairman’s Report for the 18th Annual General Meeting of the City of Penrith Regional Indoor Aquatic and Recreation Centre Limited.

I wish to thank Penrith City Council in particular the Recreation, Maintenance, HR and Finance departments for their continued support and assistance of the Ripples.

I would also like to thank my Voluntary Board Members who freely give their time and expertise to help the Management and Staff of Ripples.

We have a highly skilled and enthusiastic workforce, their attitude and hard work is recognised by the board and is one of the major reasons Ripples remains the leading choice for recreation in Penrith.

The roof restoration and ancillary building makeover work is progressing slowly whilst the financial impact of these works have been mitigated by Council’s financial support and the restructuring of staff working hours the disruption to Learn to Swim programs and many other services will take some time to recover and return income back to normal levels. The Management team are working hard on a marketing campaign to win back the loyal customer base the centre had.

CEO Greg Crawford continues to effectively lead the team and is focusing his efforts in finalising the Enterprise Agreement with the Staff and Unions, preparing business plans to continue the improvement to the facility and reviewing strategies that will help meet the objectives of the Centres major stakeholders, the Community, Penrith City Council and the Centre’s Staff.

Operating figures for the Company are detailed elsewhere in the business paper for Directors information. I note that the Company remains financially viable through the continued subsidies gratefully provided by Penrith City Council.

As a community representative on the board and recently appointed Chairman I look forward to working with Council, the Ripples Board and Staff.

Alan Brown

Chairman Ripples.”

General Manager’s Report

“Our purpose is:

To provide leisure, medical and educational activities to the Western Sydney region which upholds the centre’s primary purpose of being first in fun and fitness every time.

We are doing this by:

· Working with Penrith City Council to develop and maintain high quality facilities

· Ensuring safe, healthy, secure and environmentally sustainable conditions for our staff and all users, and high levels of customer service

· Managing limited resources sustainably

· Providing facilities and programs that focus support for:

- the provision of leisure, medical and educational outlets for the wider St Marys area

- the provision of low cost recreational services

- the health and fitness needs of the local community

- community engagement

- the development of lifelong practices that will improve people’s wellbeing

- fun and enjoyment as a recreational activity

In 2011-2012 Ripples St Marys Leisure and Hydrotherapy Centres:

· attracted 423,471 visitors to the Centres, a reduction of 14% to the previous year

· started a major refurbishment of the indoor pool complex

· had a reduction in total revenue of 3.77% and a reduction in expenses of 0.54%

· had 170,000 individual Learn to Swim lessons

· taught over 800 school children to swim in the school physical education program

· had 73,000 entries to the fitness area

· conducted over 2,800 group exercise classes

· moved from 9^th in the state to 8^th in overall swimming rankings and are still ranked the best swim squad in the region

· increased total membership income by 7% (as of May before the renovation works)

· Increase revenue for Hydrotherapy by 8.4% while decreasing expenses by 1.2%

Ripples St Marys Leisure and Hydrotherapy Centres contributed to Penrith City Council’s vision by:

1. A Leading City

We contribute by

· Offering high quality sport, leisure and recreational facilities

· The delivery of programs and services that exceed industry expectations and requirements

2011-2012 Outcomes

· Corporate membership with industry bodies including Austswim, Swim Australia, Fitness Australia and the Australian Leisure Facilities Association

· Upgrades to fitness equipment and the introduction of small group fitness sessions

· Initiated efficiency programs to establish best practice

· Development of a strategic plan outlining where we want to be in 4 years

2. City of Opportunities

We contributed by

· Building ties with local business to foster opportunities through partnerships

· Providing employment opportunities for the wider community

· Providing opportunities for people to take charge of their lives through healthy initiatives

· Providing avenues to pursue personal goals

2011-2012 Outcomes

· Raising approximately $4,000 for the Samuel Morris Foundation

· Provided sponsorship to two local sporting teams and the Ripples Swim Club

· Providing support for people in financial difficulty (via reduction in fees etc)

· Business partnerships with Sydney West Integrative Clinical Health

· Fostered relationship with the St Marys Band Club allowing access to their membership data base

· 423,471 visits to the centres

· Several gold medals at state swimming meet and now ranked 8^th in state

· Employment of approximately 110 staff from the wider community

· $35,000 spend on staff training and welfare

3. A Green City

We contributed by

· Installation of a solar thermal and solar PV system at the Hydrotherapy Centre

· Reductions in total utilities use of energy

· Consultation with Council to develop alternative energy strategy

2011-2012 Outcomes

· Reduced energy consumption by 6.6% compared to previous year

· Water consumption increased by 14% compared to previous year

· Investment into energy saving technology

4. A Liveable City

We contributed by

· Providing safe, affordable and attractive recreational facilities and activities for the wider community

· Offered a range of facilities and services that enhance people’s lives

2011-2012 Outcomes

· Attracted 423,471 visit to centres

· Conducted 170,000 individual swim lessons

· Invested $126K in repair and maintenance to maintain council’s asset

5. A Vibrant City

We contributed by

· Providing not only a outlet for physical and recreational activities but social ones as well

· Create opportunities for people from minority or disadvantaged groups to integrate and associate within the wider community

· Help foster community spirit through community engagement and integration

2011-2012 Outcomes

· Helped raise over $4000 for the Samuel Morris Foundation

· Provided numerous prizes for local schools, charities and community groups

· Sponsored two local junior sports teams

· Conducted member nights out, social events such as the City to Surf race, dinners, shopping days and promotional activities

· Conducted fun “Open days” and participated at school fete’s, community days and festivals

Challenges

The 2011-2012 year was one of constant challenges. Uncertainty regarding the renovations and the actual renovations themselves combined with the wettest summer in 50 years and coldest in 20 had a significant effect on patronage. Increased competition with the opening of two budget style gyms within 3km of Ripples in the year slowed the growth trend in memberships and made it difficult to raise prices in line with CPI. That said, the bottom line results show that while income was stifled, costs were contained and with a hot summer, some capital investment and effective marketing, a strong result is possible.

Appreciation

I would like to acknowledge our appreciation of the following in their support for Ripples in 2011-2012.

· The Ripples Board of Directors

· Penrith City Council and their staff

· The Samuel Morris Foundation

· St Marys Band Club

· Staff that have moved on to other opportunities

I would also like to thank my management team and all Ripples staff for their valuable contribution in 2011-2012. In challenging times their efforts and commitment is certainly welcomed.

Gregory Crawford

General Manager”

Financial Services Manager’s Comment

The City of Penrith Regional Indoor Aquatic and Recreation Centre Ltd achieved, during the 2011-12 financial year, a deficit before Council’s subsidy of $771,323. After Council’s subsidy to the company of $710,000, there was a deficit for the year of $61,323. This result is down on the 2010-11 financial year, which saw a surplus of $63,961 taking into account Council’s subsidy of $660,000.

The 2011-12 financial year saw less favourable results when compared to the previous year resulting from decreased income of 6.10% from $3,204,938 in 2010-11 to $3,009,286 (excludes Council’s subsidy) and decreased expenditure of 0.54% from $3,800,977 in 2010-11 to $3,780,609. As mentioned by Ripples General Manager’s Report, the centre experienced overall decreased patronage of 14% in 2011-12, having increased by 2% in 2010-11. Overall performance was partly impacted by the planned shutdown for capital works and the result of a wet/cool year.

During the recent audit of the Ripples financial accounts for the 2011-12 year, the Ripples Auditor raised a concern that if the Council did not agree to underwrite the Company’s operations until the presentation of their Annual Report for 2012-13 then they would not be comfortable with presenting the accounts and company as a going concern.

To ensure that this situation does not occur next year, a recommendation has been included in the Report whereby the Council will continue to underwrite the operations of Ripples for a period of 24 months from 1 July 2012, pending the presentation of their 2012-13 result within 6 months of the end of the financial year.

Board of Directors

The Constitution of the Company provide, in part, that:

1. To provide continuity the members of the Board shall resign on a rotating basis. At the First Annual General Meeting, three (3) Directors (including one (1) Councillor) shall resign. At the Second Annual General Meeting, three (3) members shall resign (including one (1) Councillor). Thereafter, the members of the Board, except the Council officer, shall resign after they have served on the Board for three (3) years after appointment or re-appointment to the Board.

2. All retiring Directors shall be eligible for re-appointment.

The Constitution of the Board caters for continuity and refreshment by requiring that Directors resign after they have served on the Board for three years. Retiring Directors are eligible for re-election.

This process was followed at the recent AGM. The Directors nominated for re-election and that was approved by the Board.

On 24 September 2012 the Council appointed Councillors Ross Fowler OAM, Greg Davies and Tricia Hitchen as Directors on the Board. Councillor Ben Goldfinch and former Councillor Marko Malkoc resigned from the Board after the September Local Government Election.

Council’s representative on the Board changed in 2011-2012 with Mr Craig Butler resigning from the Board and Mr Wayne Mitchell appointed as Council’s General Manager’s representative and Company Secretary.

Total attendance for the year

Total Income to Total Staff Expenses Ratios:

2011-2012 = $1:$0.69

2010-2011 = $1:$0.68

2009-2010 = $1:$0.74

The Year Ahead

· Roof replacement and refurbishment of Indoor main pool complex was completed in late November 2012

· Learn to Swim program affected by late reopening of indoor complex

· Renovated facilities to be heavily promoted to reaffirm market position

· Investment in technologies that drive efficiencies (staff, operations)

· Investigation of business and capital improvements to drive income and visitation growth

· Development of business cases that provide economic and social outcomes

RECOMMENDATION

That:

1. The information contained in the report on City of Penrith Regional Indoor Aquatic and Recreation Centre Ltd - Annual Report and Board of Directors be received.

2. Council agree to underwrite the operations of the City of Penrith Regional Indoor Aquatic and Recreation Centre Ltd for 24 months from 1 July 2012, pending the presentation to the Council of the City of Penrith Regional Indoor Aquatic and Recreation Centre Ltd Annual Report for 2012/13 within 6 months of the end of the financial year.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

v	Meeting at which the Draft Operational Plan for 2012-2013 is endorsed for exhibition
*	Meeting at which the Operational Plan for 2012-2013 is adopted
#	Meetings at which the Operational Plan quarterly reviews are presented
@	Delivery Program progress reports
^	Election of Mayor/Deputy Mayor
ü	Meeting at which the 2011-2012 Annual Statements are presented
∞	Meeting at which any comments on the 2011-2012 Annual Statements are presented
\	The opportunity may be taken to move this meeting to the 17 September 2012, should the election result be declared early
	The Ordinary Council Election will be held on 8 September 2012