agenda - shellharbour council · 2018. 12. 11. · the 2015/16 operational plan as at 31 march...

SHELLHARBOUR CITY COUNCIL Ordinary Council Meeting – 17 May 2016 Business Paper

AGENDA 1. Acknowledgement to Country ......................................................................... 3

2. Confirmation of Minutes ................................................................................... 32.1 Ordinary Meeting 26 April 2016 .......................................................................................... 3 2.2 Extraordinary Meeting 19 April 2016 .................................................................................. 4 2.3 Committee of the Whole Extraordinary Meeting 19 April 2016 .......................................... 4

3. Apologies / Leave of Absence ......................................................................... 4

4. Confidential Business (Committee of the Whole) .......................................... 4

5. Declarations of Interest .................................................................................... 4

6. Condolences ...................................................................................................... 4

7. Mayor’s Statements / Reports / Presentations ............................................... 4

8. Mayoral Minutes ................................................................................................ 4

9. Councillors' Reports ......................................................................................... 4

10. Reports .............................................................................................................. 4

10.1 General Manager ............................................................................................... 4

10.1.1 Third Quarter Review of the Operational Plan 2015/16 (10705491) ................................. 5 10.1.2 Governance, Risk and Audit Committee - Chairperson Annual Report

(10703058) .......................................................................................................................18 10.1.3 Events Calendar 2016/17 (10706528) .............................................................................23 10.1.4 Local Government & Shires Association of New South Wales - Election of

Board of Directors (10710331) .........................................................................................41

10.2 City Outcomes Directorate ............................................................................. 50

10.2.1 Bass Point Interpretive Centre Feasibility Study & Business Case (10706000) .......................................................................................................................50

10.2.2 Establishment of an Alcohol-Free Zone & Prohibited Zone in Drysdale Reserve, Albion Park (10706003) ....................................................................................60

10.2.3 Provision of Child Care at Council Meetings (10706004) ................................................65

10.3 Corporate Policy Directorate .......................................................................... 67

10.3.1 Monthly Investment Report - March 2016 (10704638) ....................................................67 10.3.2 Trial of Alternative Operating Hours - Oak Flats Outdoor 25 metre Heated

Pool (10703816) ...............................................................................................................72 10.3.3 Illawarra Regional Airport - Illawarra Hangar Pty Ltd - Deed of Variation to

Lease (10700276) ............................................................................................................75

10.4 Shellharbour Enterprises Directorate ........................................................... 80

This is page of the Minutes of the Ordinary Meeting of the Council of the City of Shellharbour held 17 May 2016


11. Committee Recommendations ....................................................................... 8011.1 Recommendations from the Traffic Committee Meeting held 4 May 2016

recommended for adoption. ..............................................................................................80

12. Items for Information ...................................................................................... 80

13. Notices of Rescission/Alteration Motions..................................................... 80

14. Notices of Motion ............................................................................................ 80

15. Questions on Notice (must be submitted in writing) ................................... 8115.1 Questions on Notice submitted by Cr Peter Moran: Cafes in the Shellharbour

Local Government Area (10707346) ................................................................................81

16. Urgent Business .............................................................................................. 81

17. Committee of the Whole in Closed Session: Adjournment ......................... 82

18. Committee of the Whole: Consideration of Adoption ofDecisions Reached in Closed Session ........................................................ 82

19. Consideration of Motions to Declassify Reports Considered inClosed Session .............................................................................................. 82



1. Acknowledgement to Country

Shellharbour City Council acknowledges the Traditional Owners and Custodians of the Land on which we are meeting and pays its respects to Elders past and present. Webcasting and Emergency Plan Statement The public gallery should note that Council records and webcasts its Council Meetings live to enhance the accessibility of Council Meetings to the broader Shellharbour City Community and their image may be broadcast live and recorded. Council Meetings and the Addresses to Council Forum can now be viewed live via webcast, downloaded from Council's website for later viewing, or purchased from Council for viewing on a computer. It should be noted that the Addresses to Council Forum is held prior to the Council Meeting from 4.30pm to 5.30pm. Should Council need to consider confidential matters during a Council Meeting, invited members of the gallery may address the Council on the reasons why the meeting should not resolve into Committee of the Whole (Confidential Session). Members of the gallery who address Council at either the Addresses to Council Forum or at the Council Meeting should note that their image, comments or submissions will be broadcast live and recorded. Council accepts no responsibility for any defamatory or offensive statements. Members of the gallery should refer to the Public Gallery Conduct Standards, displayed in the Chamber, for appropriate standards of behaviour during Council Meetings. Please ensure that mobile phones and other electronic devices are turned off or are in silent mode for the duration of the meeting. In the event of an emergency, please evacuate the building using the nearest exit and follow the instructions given by the wardens. Do not use the lifts.

2. Confirmation of Minutes

2.1 Ordinary Meeting 26 April 2016

That the Minutes of the Ordinary Council Meeting held on 26 April 2016 as circulated be taken as read and confirmed as a correct record of proceedings.



2.2 Extraordinary Meeting 19 April 2016 That the Minutes of the Extraordinary Council Meeting held on 19 April 2016 as circulated be taken as read and confirmed as a correct record of proceedings. 2.3 Committee of the Whole Extraordinary Meeting 19 April 2016 That the Minutes of the Committee of the Whole Extraordinary Council Meeting held on 19 April 2016 as circulated be taken as read and confirmed as a correct record of proceedings.

3. Apologies / Leave of Absence

4. Confidential Business (Committee of the Whole)

Nil

5. Declarations of Interest

Note: Councillors and staff who declare an Interest at the Council Meeting are also required to complete a Declaration of Interest form.

6. Condolences

7. Mayor’s Statements / Reports / Presentations

8. Mayoral Minutes

Nil

9. Councillors' Reports

Nil

10. Reports

10.1 General Manager



10.1.1 Third Quarter Review of the Operational Plan 2015/16

(10705491) To the Mayor and Councillors Directorate: General Managers Department Department: Executive Services Manager: Carey McIntyre - General Manager Author: Terri Downton – Corporate Strategy Coordinator Paul Henderson – Manager Financial Services The purpose of this report is to provide an overview of Council’s third quarter progress towards the achievement of the Actions and key performance indicators of the 2015/16 Operational Plan as at 31 March 2016. This third quarter review details progress against 176 Actions, of which 86% are progressing in accordance with the agreed timeframes and the remaining 14% behind schedule. A detailed report of Council's performance against the 2015/16 Operational Plan is outlined in the quarterly review contained in Attachment 1. The Actions outlined in the Operational Plan are funded in accordance with Council’s 2015/16 budget, through the provision of income and expenditure estimates. This report also reviews the quarterly progress against these financial estimates. Detailed financial statements have also been prepared and are included in the attached Quarterly Review. The changes made this quarter regarding the financial forecast to 30 June, have continued the positive trends made since the budget was originally adopted back in June 2015. The key Fit for the Future financial indicator being the Operating Performance Ratio, has again improved with Council for the first time since this ratio has been used in the Local Government industry, expecting a surplus result. The ratio has improved from an original budget forecast of negative 5.48%, or in dollar terms a loss of $4.5 million, to a positive 3.06%, or $2.7 million. Council did not meet the benchmark for the Operating Performance Ratio in its original Fit for the submission lodged with IPART in June 2015, with 2019/20 being the first year where Council forecast a positive result for this ratio in any single year. To now achieve a surplus in 2015/16, along with forecast surpluses each year in the future, reflects the amount of work which has been performed in turning around Council’s financial position. The other key financial indicator is the movement in unrestricted (or available) cash during the budget year. When the budget was adopted in June 2015, Council’s forecast was an unrestricted cash surplus projection of $241,469. The revised unrestricted cash position forecast after incorporating the recommended adjustments for this quarterly review is now a surplus of $301,399. This is an improvement from the December Quarter Budget Review forecast of $47,970 surplus.



Background In accordance with the NSW Integrated Planning and Reporting (IP&R) framework requirements, Council must have an annual Operational Plan, which is a sub-plan of the Delivery Program. It identifies Actions that Council will undertake within the financial year towards addressing the Strategies in the Delivery Program. Council must have an annual Operational Plan before the beginning of each financial year, outlining the Actions to be undertaken in that year as a part of its Delivery Program. The progress of the Operational Plan is monitored and reported to Council within two months of the end of each quarter. This ensures that the community is updated on the achievement of the Actions outlined in the Operational Plan in a timely fashion. Link to Community Strategic Plan The review of both the Delivery Program and Operational Plan supports the following Objective and Strategies of the Community Strategic Plan: Objective: 4.2 Supported by a Council that is responsive, accountable and

financially viable Strategy: 4.2.1 Undertake Council activities within a clear framework of strategic

planning, policies, procedures and service standards Strategy: 4.2.3 Ensure Council’s long term financial sustainability through

effective short and long term financial management that is transparent and accountable

Achievement Highlights Significant progress has been made towards achieving the Actions in the current financial year. Some highlights in this quarter have been identified. These include: COMMUNITY Australia Day Celebrations The Australia Day Celebrations were held on Tuesday 26 January at Reddall Reserve, Lake Illawarra. The citizen ceremony pledged 11 new Australian Citizens, with the ambassador address by Donny Galella. The Citizen of the Year was awarded to Deborah Hamilton and Young Citizen awarded to Aaron Newton. The event had free activities which included face painting, animal farm, pony rides sand modelling, thong throwing, entertainment and much more.



The Australia Day breakfast was a huge success with more than 3,000 breakfasts sold on the day raising a total of $10,166.72. Teams of volunteers from Oak Flats Lions Club, Oak Flats Lioness Club, Dunmore Rural Fire Brigade, Shellharbour Rotary Club and Warilla/Barrack Point Surf Club prepared and served food on the day. All proceeds raised from the sale of breakfasts were given to local community groups from Shellharbour City. These include Oak Flats Lions Club, Oak Flats Lioness Club, Dunmore Rural Fire Brigade, Shellharbour Rotary Club, Warilla/Barrack Point Surf Club, St Vincent de Paul Society - Albion Park, Shellharbour City Arts Society Inc, Shellharbour City U3A, Australian Seabird Rescue, Albion Park Rail Physical Culture Club and Shellharbour Physie & Dance. Amp It Up was again conducted as part of the Australia Day event. Four youth bands performed on the day and the event was well received by the young people in attendance. This was a great opportunity to profile local young artists. Children's Literacy Programs On 15 February at Warilla Library Mayor Cr. Marianne Saliba successfully launched Paint Shellharbour REaD - a program that encourages all areas of the community to read, talk, sing and rhyme with children from birth, so that they will develop the literacy skills needed in preparation for school. This collaborative community program incorporates local organisations, government, non-government and individuals to help get the early literacy message out to the many families in Shellharbour City caring for pre-school aged children. Over 100 new books were donated by guests which will be used to create book boxes across the city. With the support of Mayor Cr. Marianne Saliba and Cr. Helen Stewart, Council’s libraries commenced the Paws ‘n’ Tales literacy program presented in partnership by PAWS Pet Therapy ‘dogs helping people’ program. The wonderful program supports young children in building confidence, self-esteem and reading skills by sharing and reading stories to a friendly four-legged friend. ENVIRONMENT Sustainable Shellharbour Program – Visit the Butterfly House A highlight of the Sustainable Shellharbour program this quarter was the 'Visit the Butterfly House' activity held at Warilla Library on 14 January and the Shellharbour Village Exhibition Space on 15 January. This activity was held in partnership with Shellharbour City Libraries, and engaged 214 children and families in a fun way to learn about butterflies and be inspired to care for the natural environment. Positive feedback was received from participants, with comments such as "The kids loved it! A bit of hands on education has given them a greater appreciation of the insect world." The event also received extremely positive media coverage, with six newspaper features.



Clean up Australia Day Clean Up Australia Day was held on Sunday 6 March across the City, with a total of 12 clean-up sites registered. Council provided waste collection services at the event and rewarded participants for their efforts through a lucky dip prize draw A total of 1.5 tonnes of waste was collected on the day. In addition to this Council held a staff Clean Up Australia Day activity on 18 February at Harrison Park. A total of 22 staff collected 170kg of rubbish, including 20 large bags of rubbish and recycling, three trolleys and an array of other hard rubbish items. Council received positive media coverage of the event, including a front page feature in the Advertiser/Lake Times and coverage in the Illawarra Mercury. Food Organics Green Organics (FOGO) On the 22 March Council commenced its education campaign on the roll out of the new FOGO collection service. Residents were invited to attend a free sausage sizzle provided by the Oak Flats Lions Club at various local community centres or local parks to learn about the new weekly food organics, garden organics (FOGO) collection service. A total of 28 BBQs will be held potentially reaching up to 1000 residents. Residents have been encouraged to come along and find out:

• When the service starts; • When their kitchen caddy and service collection brochure will be delivered;

and • What you can put in your FOGO bin.

A total of five sessions were held this quarter across the City, with a total of 148 residents attending. Staff also attended external workshops at Shell Cove Community Centre, local events at school fetes, local charities and clubs such as:

• Albion Park Men’s Shed; • Albion Park Community Garden Club; • Oak Flats Community Garden Club; • Blackbutt Flinders combined Probus Club; and • Oak Flats Lions Club.

It is hoped that these residents will become champions, spreading the word to family and friends. Council has secured funding under the NSW Environmental Trust for the delivery of a kitchen caddy to every household currently paying for a waste service. This will to assist with the recycling of food scraps. Flagstaff will commence delivery early in May and will be completed by mid-June ready for the commencement of FOGO collections. The new FOGO service means Shellharbour residents can place all their food waste, scraps, leftovers, take away and out of date food in their green lid bin together with



their regular garden material. This bin will change from a fortnightly collection to a weekly collection from 1 July. ECONOMY Special Rate Variation Update Approximately $894,000 of Special Rate Variation (SRV) funds were expended over this quarter. The following provides a breakdown of expenditure across main asset classes. Roads and Related Assets: Approximately $746,300 of SRV was expended in this class, largely due to delivery of 30 road renewal projects. Delivered projects include the renewal of Jason Avenue, Lendine Street, The Kingsway and Jones Avenue. Buildings: There was approximately $88,900 of SRV expenditure on buildings during the third quarter. This is largely attributed design phase costs for the Warilla Library Relocation project. Albion Park SES Building Refurbishment and Aerial Patrol Building Refurbishment also had significant expenditure. Open Spaces: Approximately $58,800 of SRV funds were spent this quarter. This is primarily from the final payment of design consultancy fees for Beverley Pool Pump Renewal, and to a lesser extent, the solar and gas hot water systems at Oak Flats Pool. The commencement of works at Shellharbour Village Boat Ramp also contributed The Ultimate Learner Log Book Run Experience On Sunday, 20 March 2016 Shellharbour, Wollongong and Kiama Councils collaboratively planned, developed and implemented the inaugural Ultimate Learner Log Book Run Experience; a by-product of the Learner Log Book Run which is in its 13th year of running in the Shellharbour and Kiama Areas. The intended outcomes of the Ultimate Learner Log Book Run Experience is to: increase awareness of skills, knowledge and attitudes of safe driving; create knowledge and understanding of the role of emergency services in road safety; increase awareness of the impact road trauma has on the community; provide practical road safety information; and provide a fun and appropriate activity that contributes to the required minimum 120hrs of supervised driving. Learners and their supervisors were involved in a briefing which included a talk from Highway Patrol, a personal story from a local victim of road trauma and individualised reverse parking tuition.



Once setting off on-route, the learners and their supervisors were exposed to a number of experiences - including fire rescue demonstrating the use of 'jaws-of-life' to open a car and simulating a rescue from a crash scene. They also heard from the Police Crash Investigation Unit about their role in road safety and up-to-date information was provided regarding Safer Vehicle Research delivered by the Centre for Road Safety. The day was well received by 80 participants and finished with a pizza meal, which was enjoyed by all. An initial assessment of the evaluations shows very positive feedback. Shell Cove Marina Open Day In March, the Shell Cove Project hosted a Marina Open Day of the harbour-site for the community with over 500 members of the community attended the event. The event provided the community with an opportunity to visit the construction site and gain information about this very unique project. LEADERSHIP Community Strategic Plan Video The Community Strategic Plan reflects the community's vision for the City. It sets the direction for the future and seeks to respond to community, environmental, economic and leadership challenges. It will help us get from where we are now to where we want to be. An animated video has been created to increase awareness and ownership of the Community Strategic Plan. It depicts what the Community Strategic Plan is and how we can achieve it.

This video will be released in early May 2016 and will be made available on Council’s website, Facebook page and the online survey program Peak Democracy. It will also feature at the 'Ideas Box' - a pop-up shop located on the lower ground floor of Council's administration building. Professional Development Programme Council focused on a program of training and change management that included in-house on resilience to help staff cope with the current environment Council also took advantage of a number of free training programs that were provided by TAFE. This enabled a number of staff (241 placements) to update core skills and undertake further training in a number of areas. These included Microsoft Word, Excel and Outlook, client services and First Aid. This training was a cost effective way of meeting staff needs.



Quarterly Budget Review Local Government legislation requires all councils to perform a review of income and expenditure estimates each quarter, in reference to the original set of estimates as contained in council's adopted Operational Plan. As part of that review, a number of financial statements are required to be produced which provide various information including expenditure and income details as at the end of the quarter being reviewed. The following statements are included in Attachment 1 of this report:

• Responsible Accounting Officer Statement - assessment on the Council's financial position indicating whether it is satisfactory or unsatisfactory. If the latter, recommendations for remedial action are included;

• The Income and Expenses Statements - details the cost of goods and services provided and the extent to which that cost was recovered from revenues, during the reporting period. A net operating result for the year is contained in the statement. This position incorporates all income and expenses but does not distinguish funding sources. The Income and Expenses Statements are reported in both type and activity format;

• Capital Budget Review Statement - details Council's capital works programs by asset class and whether it is new or renewal expenditure. The statement also identifies the funding sources associated with the various works programs;

• Cash and Investments Budget Review Statement - this statement details the movement between external and internal reserves/restrictions. It also identifies the projected unrestricted cash position, which is the main indicator used in our quarterly budget reporting, to assess how Council is travelling for the year. Unrestricted cash can be described as available reserves which are not tied to a specific purpose. To calculate the unrestricted cash figure, the totals of external and internal reserves have to first be determined;

• Key Performance Indicator Budget Review Statement - these indicators provide information for users to assess the performance of Council in various areas as at the reporting date; and

• Budget Review Contracts and Other Expenses - details any material contracts entered into during the quarter along with year to date expenses for legal and consultancy costs.

The Cash and Investments Statement provides information for one of the key indicators for the assessment of financial performance for each budget year. This will be in the form of an ‘unrestricted cash’ position. This amount is included in the column titled ‘Projected Year End Result’. This calculation separates out all income and expenditure which is funded by external and internal restrictions (eg. Section 94, domestic waste, unexpended grants, crown reserves), resulting in a projected movement, of Council's unrestricted or available cash position for the year. The other key financial indicator is the Operating Performance Ratio, which measures Council's achievement of containing operating expenditure within operating revenue. The result is determined from the income statement after excluding capital income, gains/losses from the disposal of assets and fair value



movements. The summary of this report discusses the significant improvements Council has made in regards to this key industry ratio. Operational Budget – adjustments that affect both the forecast unrestricted cash position and operating performance ratio The following are the main items that can be attributed to the movement in both the forecast unrestricted cash position and operating performance ratio. Figures in brackets are a positive or favourable movement. Consultants for Merger Advice $230,000 A budget of $230,000 is requested to cover consultant’s work in relation to proposed merger Local Roads Lighting Maintenance - Electricity ($232,381) A new supply contract was entered into this financial year and this has resulted in the lowering of street lighting electricity costs. Subdivision Fees ($120,000) Subdivision fees have been higher than expected, reflecting the current high level of development activity in the Council area, particularly in Tullimbar and Calderwood. Property and Recreation – Rental Income - Other ($96,935) Rental income has increased due to temporary licence agreements for use of Council land and reserves. Section 611 Income ($67,503) This income is generated from gas infrastructure located within Council land. The gas infrastructure owner must pay Council a percentage of their revenue received in our local government area. Shell Cove – Investigation and Promotion and Legal Expenses reduction ($70,000) Less investigation and promotion and legal expenses expected to be spent this financial year than originally estimated. Regulation and Compliance – Fines Income ($45,000) Council has received more income from fines than originally estimated as a result of more attention being paid to non-compliance around schools.



Lamerton House – Rental Income $54,459 It is anticipated that the rental income from Lamerton House will be less than originally budgeted. In this financial year, two tenants have surrendered their current leases within Lamerton House. Due to the potential sale, it is difficult to attract a suitable tenant for a short term lease. Operational Budget – adjustments that affect the operating performance ratio only The following are other major forecast revisions that impact the operating performance ratio but not the unrestricted cash position. Figures in brackets are a positive or favourable movement. Garbage - Materials ($1,111,163) It is proposed to reduce the annual budget forecast for materials related to the disposal of the city's domestic waste by $1,111,163 at this review. The original budget for this item included an allowance for unforeseen circumstances including storm events. As such incidents have not occurred to date, the forecast tonnages have been reduced, which has resulted in a reduction in income. This budget item is funded by the domestic waste restriction. Waste / Recycling Depot – Waste Management User Charges ($800,000) The high patronage of Council’s Waste Depot has continued this quarter. After reviewing the income expected over the last quarter for Waste Management User charges, it is proposed to increase the budget by $800,000. It is recommended that this go into the Waste Depot restriction. Remediation & Amortisation of Assets - Amortisation adjustment ($330,853) The unwinding of the Waste Depot/Sandmine remediation provision has been recalculated using a rate of 2%, not 6%, resulting in a reduced figure. This change has been confirmed by Council’s auditors. Interest on Investments ($165,000) Council’s interest return on its investment portfolio has continued to be above industry benchmarks this quarter. The expected average portfolio balance has been higher over the nine months to date due to delays in expenditure on some of the major capital projects being undertaken this year. As a result, an adjustment of $165,000 is required this quarter for interest on investments. It is recommended that this be put into Council’s internal Interest on Investment restriction.



Section 94 Interest on Investments ($370,796) The Section 94 component of Council’s investment portfolio is higher due to delays in expenditure on some major Section 94 capital projects being undertaken this year. Section 94 contributions received this year are also more than originally estimated. As a result, an adjustment of $370,796 is required. Southern Phones – Dividend Income ($132,613) The Southern Phone dividend for 2014/15 has been paid to Council. It was resolved at the Ordinary Council Meeting dated 4 February 2014 that the annual dividends from the Southern Phones Company be placed in the Council’s Capital Development and Investment Fund for allocation to agreed capital development and investment. Organics Collection System Grant ($333,779) Council has been successful in receiving a grant from the Environment Protection Authority for $333,779 for the Local Government Organics Collection system. This grant is expected to be received in May. Other notable adjustments made this quarter not affecting Council's unrestricted forecast or operating performance ratio include: S94 Plan – Capital Contributions – Developer Contributions (S94) ($820,527) As at the end of March 2016, Council has received $3.146 million in Section 94 developer contributions against an annual budget of $3.5 million. With three months of the financial year left, it is recommended that the budget be increased by $820,527. Capital Works Budget - the following capital adjustments have no impact on either the operating performance ratio or unrestricted cash position. Figures in brackets represent a reduction in expenditure. Dunmore Resource Recovery Centre Improvements ($7,405,799) There is a delay associated with the tender of the Food and Garden Organics (FOGO) Facilities. The preparation of the contract document, expression of interest document and short listing has occurred. The tender process will commence in the fourth quarter of this financial year. Civic Centre ($8,019,622) Budget has been reduced as a result of less expenditure than originally forecast. Works have commenced, however the bulk of expenditure is now forecast to occur in the 2016/17 financial year.



Waste & Recycling Depot Landfill Capping ($1,811,484) Final capping works were scheduled to occur this financial year across Cell 1 at the Dunmore Recycling and Waste Disposal Depot. These works have been delayed due to difficulty in securing materials. $1.0 million of these funds will be transferred to the Cell 5 Preparations project. Waste & Recycling Depot Cell 5 Preparations $1,000,000 Council recently engaged a consultant to prepare the design and tender specification documents for the construction of the next landfill cell (cell 5) at the Dunmore Recycling and Waste Disposal Depot. The following accommodation works need to be accelerated and completed prior to September 2016 to ensure cell 5 works can commence as planned: the design for the haul road over the landfill (this is currently underway), construction of the haul road and relocation of waste from the batter of Cell 1 to Cell 2 and Cell 3 (tenders will be released via Vendorpanel), and relocation of the manifolds for the gas extraction system. It is anticipated that $1.0 million worth of works will be completed this financial year. Funds can be transferred from the Landfill Capping project. Albion Park Showground Lighting ($237,500) This project is currently in the tendering phase. Works will not occur until July / August 2016. Wattle Road GPT ($218,618) This project is still in the design phase. This project is funded by a Voluntary Planning Agreement (VPA). It is requested that the budget be reduced and the funds restricted as they are not required until 2016/17. Warilla Library Relocation Project ($395,579) This project is still in the design phase. It is requested that the budget be reduced and the funds restricted as they are not required until 2016/17. Albion Park Cemetery – Road Extension ($206,847) This project will now be carried out in 2016/17. Old SES Building Refurbishment ($170,708) Currently awaiting Construction Certificate. This project will now be carried out in 2016/17. Links Business Plan – Redesign / Gaming, etc. $148,137 Additional funds are required to purchase poker machine entitlements which have increased because of the high demand for poker machines. This was considered



and endorsed at The Links Project Control Group meeting dated 23rd February 2016. It is recommended that this be borrowed from Council’s internal Interest on Investment restriction. Beach Huts at Shellharbour Beachside Tourist Park $342,524 The Tourist Park beach huts have been constructed by Illawarra TAFE. These have been funded from the Crown Reserve Restriction. Capital Works Budget - the following capital adjustment affects the unrestricted cash position only. Fleet and Major Plant Acquisitions ($212,000) Savings have been identified in Council’s fleet/plant replacement program this quarter.

Consultations Internal The quarterly review has been prepared following input and assistance from all Directorates and Groups of the organisation External Nil Political Donations Disclosure Not applicable

Recommendation 1. That Council receive and endorse the third Quarterly Review of the

Operational Plan 2015/16 for the quarter ended 31 March 2016.

2. That Council adopt the March 2016 Quarter Budget Review with all recommended adjustments as contained in this report and attachments

3. That the General Manager, or his nominated delegate, be directed to write

to the Office of Local Government, Department of Premier and Cabinet, the Parliamentary Secretary for the Illawarra Gareth Ward MP, the Minister for Local Government and the Premier on behalf of Shellharbour City Council to advise of the current performance of Council on meeting all Fit for the Future benchmark criteria.

End Section



Approved for Council's consideration:

Date of Meeting: 17 May 2016

Attachments 1. Quarterly Review of the Operational Plan 2015/16 – January to March 2016

(issued under separate cover - full copy available at end of business paper)



10.1.2 Governance, Risk and Audit Committee - Chairperson Annual

Report (10703058) To the Mayor and Councillors Directorate: General Manager's Department Department: Executive Services Manager: Flora Lepouras – Executive Manager/Public Officer Author: Kylie McRae – Independent Chairperson GRA Committee

Ian Smith – Manager Risk Management Services

Summary The purpose of this report is to provide an overview of the activities performed by the Governance Risk and Audit Committee for the calendar year 2015. The report has been prepared by the Committee's Independent Chairperson in accordance with the Committee Charter and it provides information on the role of the committee, the performance of the internal audit function and details regarding the approved Internal Audit Plan including the current status of each audit.

Background The Shellharbour City Council Governance, Risk & Audit Committee was established in 2010. The objective of the Governance, Risk and Audit Committee (Committee) is to provide independent scrutiny, assistance and formal advice to the Shellharbour City Council and its General Manager on: • Risk management; • Control; • Governance and • External accountability responsibilities. This report to Council covers the period January 2015 to December 2015.

1. Membership The Audit Committee (the Committee) has five (5) members, three independent members and two Councillors, they are: Independent Chair: Ms Kylie McRae EMBA, FCPA, CMIIA, CIA, GAICD, BCOM Independent Members: Ms Janelle Bond Mr Ian Reynolds



Councillor Members: Councillor Peter Moran Councillor John Murray All independent members have recent and relevant financial experience in addition to extensive experience in corporate governance. Councillor members have appropriate qualifications and experience to allow them to undertake their roles. The Mayor attends all meetings of the Committee but is not counted as a member unless one of the Councillor members is unable to attend.

2. Responsibilities The Committee has the following responsibilities:

2.1 Financial Reporting Advise Council whether the financial information reported by management reasonably portrays the Council’s financial position, results of operations and significant commitments. In fulfilling this responsibility throughout the year the Committee have:

• Reviewed the annual financial statements to ensure completeness, consistency with the Committee’s knowledge of operations and application of accounting policies and principles.

• Received briefings on significant accounting and legislative matters with the potential to affect the financial position of Council.

2.2 Internal and External Audit Oversight the work of both internal audit and external audit. In fulfilling this responsibility throughout the year the Committee have:

• Reviewed Council’s risk profile developed by the Internal Auditor and subsequently considered, approved and monitored the annual audit plan for internal audit activities.

• Ensured that all systems, processes, operations, functions, and activities of the Council were subject to internal audit evaluation at regular intervals based on risk assessment. To assist in this regard the Committee received regular briefings and updates on legislative and operational changes with the potential to affect Council’s risk profile.

• Monitored, through the results of internal and external audits, the adequacy and effectiveness of the Council’s internal control structure.

• Reviewed internal and external audit reports, the practicality of any recommendations and the adequacy of management responses. The Committee also monitored the implementation, by management, of recommendations arising from audit reports.



• Provided input and feedback on external audit coverage and performance.

• Reviewed the Audit Committee and Internal Audit Charters. Appendix A details the Internal Audits conducted by Internal Audit and overseen by the Committee during the period January 2015 to December 2015. All Internal Audits were undertaken as per the schedule adopted by the Governance Risk & Audit Committee.

2.3 Other Responsibilities The Committee is required, through the Chair, to provide assistance and advice to the Management should any matters related to ethics, conflict of interests, misconduct, or fraud come to its attention. No matters of this nature came to the attention of the Committee throughout the year. Financial Impact The operations of the Governance Risk & Audit Committee are financed within the budget of the Executive Services Group. Public/social impact The work performed by the Governance, Risk and Audit Committee can give Council and the community assurance of the existence and operation of policies, systems, procedures, checks and balances, which monitor operational activity and safeguard Council assets from corruption or fraudulent or wasteful application. Legal & Policy implications The Division of Local Government encourages all councils to appoint an Audit Committee, of similar makeup to that appointed by this Council. Link to Community Strategic Plan The Governance, Risk & Audit Committee supports the following objectives and strategies of the Community Strategic Plan: Objective: 4.2 Supported by a Council that is responsive, accountable and

financially viable. Strategy: 4.2.3 Ensure Council's long term financial sustainability through

effective short and long term financial management that is transparent and accountable.

Consultations Internal Nil



External Nil

Political Donations Disclosure Not Applicable

Recommendation That Council receive and note the report provided by the Independent Chairperson of Council's Governance, Risk and Audit committee.

End Section



Attachments 1. Appendix A: Internal Audits Conducted - 2015



Attachment 1 - Appendix A: Internal Audits Conducted - 2015

Scope Beachside Tourist Park Strategic management

Financial management including receipt of income Operational management Maintenance

Fleet Management Fleet strategy and policy Acquisition of vehicles Disposal of vehicles Fleet management including vehicle maintenance and servicing, fuel management, FBT and incident and accident reporting Private use arrangements including lease back, salary packaging and vehicle allowances

Illawarra Regional Airport

Strategic Planning for future Airport activities Financial management associated with the Airport’s operation Operational processes in place to meet CASA requirements Airport maintenance arrangements

Traffic Management Responding to and dealing with traffic management issues raised by members of the public or other stakeholders Management of black spot and road safety grant funding Enforcement of traffic regulations



10.1.3 Events Calendar 2016/17 (10706528) To the Mayor and Councillors Directorate: General Manager’s Department Department: Communications Manager: Flora Lepouras – Executive Manager / Public Officer Author: Katrina Owers – Events Officer

Summary The purpose of this report is to seek Council endorsement of the calendar of events for 2016/17. Council hosts a number of events throughout the year which include Australia Day, Carols by Candlelight, Reconciliation Walk and many more. A number of civic functions are also held and these include openings, launches, ministers' visits, Academy of Sport reception, OAM reception and other Mayoral (civic) functions.

Background Council provides its residents with opportunities to celebrate and commemorate events of significance in the Shellharbour City area. For many years Council events have been recognised as the pinnacle of the community's social calendar. Council offers residents the opportunity to connect and make contact with Council in a positive way. The list of regular events continues to grow in line with the needs of its community and the wishes of Council. The calendar of events for 2016/17 also includes a multicultural festival, Grandparents Picnic themed “teddy bears picnic” along with three outdoor family cinema events. Any additional, non-budgeted events after this report that are not categorised as a civic function that are proposed to be included in the calendar will need to be reported to Council individually for consideration. Any additions to the draft events calendar will have an impact on the draft 2016/17 operational plan. Financial/Resources Implications All events included in the attached events calendar are currently budgeted for in the draft 2016/17 operational plan. As noted in this report any additional events will have an impact on the budget as additional funds and resources will be required.



Legal & Policy Implications

Nil

Public/Social Implications

Council provides a number of free community events across the local government area. These events are in line with the Community Strategic Plan and community engagement undertaken as part of the Creative Art Strategy for Shellharbour City and various other opportunities.

Link to Community Strategic Plan

This report supports the following objectives and strategies of the Community Strategic Plan:

Objective: 1.1 Vibrant, safe and inclusive City

Strategy: 1.1.1 Encourage and support activities and events where communities can gather and celebrate.

Consultations Internal Community Connections Library Services Environmental Services Waste Services

External Nil


Recommendation That Council endorse the Calendar of Events attached for 2016/17 and that any additional, non-budgeted events that are not categorised as a civic function that are proposed to be included in the calendar will be reported to Council individually for consideration.

End Section




Date of Meeting: 17 May 2016 Attachments

1. Calendar of events 2016/17



Attachment 1 - Calendar of events 2016/17



10.1.4 Local Government & Shires Association of New South Wales -

Election of Board of Directors (10710331) To the Mayor and Councillors Division: General Manager's Department Department: Executive Services Manager: Carey McIntyre – General Manager Author: Flora Lepouras – Executive Manager / Public Officer

Summary The purpose of this report is for Council to determine the voting delegates for the election of the Board of Directors to the Local Government and Shires Association of New South Wales (the Association).

Background A copy of a letter received from the Association is attached which advises that the Association requested the Australian Electoral Commission (AEC) to seek an election inquiry immediately after the board election held at the 2015 Annual Conference because an error caused a voting irregularity. On 29 March 2016 the Federal Court of Australia made an order declaring that the election of the 13 persons on the Board of Directors of the Association declared on 16 October 2015 void and each such person not to have been elected. The offices of President and Treasurer were unaffected, and the Court determined that three other directors were not impacted by the irregularity because of the size of their respective votes. The Fair Work Commission has directed the AEC to conduct a fresh election for the affected positions which are to be conducted by secret postal ballot. The vacant positions are: • Vice President (Metropolitan/Urban council) • Vice President (Regional/Rural council) • Five (5) Directors (Metropolitan/Urban council) • Six (6) Directors (Regional/Rural council) Council is entitled to four voting delegates and at the 2015 Local Government Conference Council’s voting delegates were the Mayor, Deputy Mayor, Councillor Marsh and Councillor Stewart as resolved by Council on 14 July 2015. There are two options available to Council:



Option 1 Endorse the voting delegates who were nominated for the 2015 Annual

Conference as the voting delegates. Option 2 Propose four new voting delegates. Financial/Resources Implications Nil Legal & Policy Implications Council endorsement or election of voting delegates is required. Public/Social Impact Nil Link to Community Strategic Plan This report supports the following objectives and strategies of the Community Strategic Plan: Objective: 4.1 Led by a Council that effectively represents the community Strategy: 4.1.1 Mayor and Councillors are representative of the community and

provide strong, cohesive and visionary leadership

Consultations Internal Nil External Nil Political Donations Disclosure Nil

Recommendation That Council determine the voting delegates for the election of the Board of Directors of the Local Government and Shires Association of New South Wales. End Section





Attachments 1. Letter from Local Government NSW dated 15 April 2016.



Attachment 1 – Letter from Local Government NSW dated 15 April 2016



10.2 City Outcomes Directorate

10.2.1 Bass Point Interpretive Centre Feasibility Study & Business Case (10706000)

To the General Manager Directorate: City Outcomes Department: Community Connections

Manager: Toni Lindwall – Acting Manager Community & Cultural Life Author: Veronica Bird – Aboriginal Community Liaison Officer

Summary The purpose of this report is to seek Council’s endorsement of the Bass Point Aboriginal Interpretive Centre Feasibility Study prepared by Simon McArthur and Associates (Attachment 1) and to reaffirm Council’s commitment to prepare a Business Case for the Bass Point Interpretive Centre.

In doing so, it is requested that Council approve $50,000 funding from the existing Community Connections operational expenditure budget to engage an independent consultant to prepare a Business Case for the development of the Bass Point Aboriginal Interpretive Centre (the Centre) at the preferred location (Option 2), the midden site located at Bass Point, near the Shell Cove Waterfront development.

The Business Case will provide a rigorous and realistic plan about the economics of the proposed Aboriginal Interpretive Centre. Cultural motivations and profitability are important factors that need to be considered.

Background The proposal to build an Aboriginal Keeping Place has been a long-term objective of Council. The development of Shell Cove created a need for local Aboriginal artefacts to be protected, relocated and preserved. Since 2005 Council has been collaborating with the local Aboriginal community to investigate opportunities for the development of an Aboriginal Keeping Place and Interpretative Centre. Achieving this benefit was the principal motivator to prepare the Feasibility Study.

Council at its meeting on 11 May 2011 resolved:

1. That Council commit its financial support for the preparation of the BusinessCase which will underpin the Bass Point Aboriginal Interpretive Centre Project.

2. Further, that Council’s support be limited to the estimated cost of $30,000 andbe made available at the appropriate time and that the budget be variedaccordingly at that time.



The construction of the Centre would be substantial and, to secure funding for construction and consideration of potential operating costs, it is was important to develop a feasibility study first which would not only identify the ideal location of the Centre but the benefits to the local Aboriginal community and the broader Shellharbour community.

Development of the Feasibility Study

In April 2015 Council commissioned tourism consultant Simon McArthur and Associates to prepare a feasibility study for an Aboriginal interpretive centre within the Shellharbour area close to the Bass Point Reserve. The consultants were overseen by a Steering Committee comprising representation from Council staff and Council’s Aboriginal Advisory Committee (AAC).

The development of the Study was an integral step in the overall process in the development and ultimate construction of a sustainable and commercially viable Centre that will enrich the experience of those who visit and which will generate sustainable employment and genuine career opportunities for Aboriginal community members.

The Study was conducted over two distinct phases:

Phase 1 - Concept Development

This phase consisted of research into leading Aboriginal interpretation experiences and a Centre and governance model to service them. It also included consultation with the Aboriginal community and key stakeholders to develop options for a Centre.

Phase 2 – Feasibility

This phase consisted of further developing how feasible the options are by estimating development costs, operating forecasts, economic and social impacts. It also explored how the project could be funded.

Stakeholder Engagement

Stakeholder engagement was critical to the development of the Study. Stakeholder engagement was used to:

1. Inform stakeholders of the purpose and scope of the project.2. Seek ideas from stakeholders on what an optimal Aboriginal Interpretive Centre

might offer visitors3. Seek feedback from stakeholders on the emerging concept and feasibility for a

Centre to further optimise its potential success.

A series of community consultations were undertaken from July – October 2015 this included one-on-one interviews, stakeholder focus groups and facts sheets. These



were held with the AAC, local Aboriginal people particularly representatives with an interest in conserving and interpreting local artefacts, generating opportunities for employment and education and Aboriginal people involved in tourism or who are interested in tourism enterprises. Local tourism operators and relevant Council staff were also consulted.

The Steering Committee was a conduit for stakeholders to discuss the Study outside of engagement activities and also reviewed reports and ensured that stakeholders were heard.

Councillors were also consulted through a Councillor briefing as part of the development of the Study. As a result of the Councillor briefing further site options were explored and they have been included in the site considerations below.

Key themes that arose from the consultation, was to create a Centre and three ‘wow factor’ experiences as part of the Centre. These being:

1. Bush Tucker Tour linking middens, keeping place, cooking, eating andstorytelling

2. Night-time storytelling and cultural performance around a camp fire3. Overnight camping accommodation experience that includes traditional bush

tucker

These ‘wow factors’ were then taken into consideration when identifying options for the Centre location.

Economic opportunities identified by the local Aboriginal Community and Council’s AAC during consultations also included:

1. Employment, training and skills development for young people in the tourismand hospitality industries.

2. Stand-alone Aboriginal controlled cultural tourism enterprises3. Joint ventures between Aboriginal people and mainstream tourism

operators/enterprises.

Feasibility Study Site Options for an Aboriginal Interpretive Centre

Following stakeholder input a preliminary assessment of locations of the proposed Centre was made. This preliminary assessment included, Shellharbour Village, Bass Point Reserve and Killalea State Park.

Three sites were chosen for feasibility assessment, and were considered in the Feasibility Study. Table 1 identifies the three locations and highlights site considerations for each of these locations. (see Attachment 2)



Table 1 Site Options and Site Considerations –

Site Option Site Considerations Preferred Option

Option 1 – Gravel Loader Site

• Greenfield site adjacent to Shellharbour SouthBeach, between a gravel loading wharf andWaterfront, Shell Cove.

• The land is Crown Foreshore RE1, finishing25 metres to the west of the loader.

• It is cleared, has no current use, has noheritage classification, and is not classed asBush Fire Prone Land.

• This site was considered not to be feasiblebecause it is limited by an unacceptable highcosts associated with connection of services.

Not Feasible

Option 2 – The Midden Site

• Greenfield site, to the west of Option 1,sandwiched to the east of the proposed Shellharbour Marina entrance, and to the westof The Shallows Coastal Reserve car parkingarea.

• The land is Crown Foreshore RE1.• The site is relatively level and largely cleared,

with some dune vegetation. There isvegetated midden adjacent west.

• It is not classed as Bush Fire Prone Land.• Close proximity to the Waterfront

Development, Shell Cove.• The nearest services connection point is 90m

away.• The Midden Site is feasible to proceed to a

Business Case because the site is closer toexisting services and considerably reducesthe costs associated with service connection.

Feasible Recommended to go to Business Case phase

Option 3 - Beach Site

• The third option considered is located to thenorth west of Option 2.

• The site presents a narrow footprintproposition because it is hemmed in betweenBass Point Road and the dune system,

• The land is Crown Foreshore RE1.• The nearest services connection point is 500m

away in a direct line, and 700m allowing forfollowing the roadside verges.

• The Beach Site is not feasible, because thelocation is unlikely to attract and satisfyvisitors, and to avoid coastal hazard zoning,the site has insufficient space to functionproperly.

Not Feasible



Preferred Option – Option 2 - The Midden Site

There is strong support to locate the Centre at the Midden site because it is located near a significant Aboriginal cultural site, which is Registered and protected by the NSW Government Office of Environment and Heritage.

The preferred site provides an excellent educational resource in promoting and protecting Aboriginal heritage and adds to the security of the Midden site.

Development of the Centre and potential operating costs

The Study proposal regarding the Midden site has been costed at approximately $4.27M – $4.8M to construct, ($4.27 if development awaits residential development services connection). The operation has been forecast to require ongoing deficit funding of approximately $350,000 per annum.

The Business Case will provide a more accurate assessment of the capital costs of the preferred Option 2 and potential funding avenues to cover all the construction costs. The operational requirements need to be developed to meet the preferred directions of the Centre and it is expected that there would be staffing efficiencies through joint use of the Centre between the Tourism Operators and Cafe/Gallery and Gift Shop.

The next step - proceeding to a Business Case

The Business Case will provide a rigorous and realistic plan about the economics of the proposed Aboriginal Interpretive Centre. Cultural motivations and profitability are important factors that need to be considered.

The Study identified the following important issues which are integral to enterprise success and need to be explored within the Business Case:

1. Access to capital for enterprise establishment2. Marketing and promotion of cultural tourism products and destinations3. Training and skills development.

These factors need to be the subject of further investigation and represent challenges for Council, the local Aboriginal community and the broader community, and solutions need to be identified.

It is important the Business Case include:

• Exploration of potential business and social enterprise

• Governance models

• Business risks and sustainability



• Financial risks and funding streams

• Broader community and stakeholder consultation

It is imperative that there is a clearly articulated Business Case prepared for the Bass Point Aboriginal Interpretive Centre. The proposed Centre must make economic sense. This will not only bear upon the motivation and engagement of the market and other tourism operators with whom relationships are necessary, it will frequently bear upon the motivation and engagement of community members and Council.

Financial/Resource Implications

It is anticipated the costs to develop the Bass Point Aboriginal Interpretive Centre Business Case will be $50,000 based on initial pricing provided by the Feasibility Study Consultant.

It is proposed that Council commit financial support for the preparation of a Business Case to determine the financial viability for the possible development of an Aboriginal Interpretive Centre at Bass Point.

This will be funded from the existing operational expenditure budget within the Community Connections Group.

Council Decision Making During Merger Proposal Periods – Section 23A of the Local Government Act 1993

The Office of Local Government's document Council Decision Making During Merger Proposal Periods states:

• 'Councils the subject of merger proposals should not enter into a contractor undertaking involving the expenditure or receipt by the council of anamount equal to or greater than $250,000 or 1% of the council's revenuefrom rates in the preceding financial year (whichever is the larger), unless:

° the contract or undertaking is entered into as a result of a decision made or procurement process commence prior to the start of the merger proposal period; or

° entry into the contract or undertaking is reasonably necessary for the purpose of:

meeting the council's ongoing service delivery commitments to its community; or

to implement an action previously approved under a council's Delivery Program or the Operational Plan for the relevant year.'



In this case, the original decision to proceed with the Business Case was made prior to the start of the merger proposal period, and the reallocation of money is necessary for meeting Council's ongoing service delivery commitments to the community. Further, the advancement of a Business Case does not commit Council to build the facility.

In accordance with the above guidelines the recommendations of this report do not conflict with the Section 23A guidelines.

Legal and Policy Implications

Nil

Public & Social Impacts

The development of the Study and consideration of a Business Case further demonstrates Council’s commitment to recognising Aboriginal heritage.

The Centre would benefit the entire community, region and state by creating a new innovative Aboriginal cultural experience that will positively influence the local economy, environment, development, education and local aboriginal art and culture.

The short-term economic benefit of this Study would be employment and investment associated with the construction of the Centre and development of the proposed Wow Factor experiences. This will be calculated and documented in the Business Case.

With the changing nature of employment within the Illawarra it has long been thought that tourism may be one the future employment and entrepreneurial foci of the Region. This Centre may be a major player and has the potential to provide jobs both directly and indirectly. Whilst at the same time enhancing moves to protect and preserve the area unique, natural and cultural heritage values.

While there are many community venues where local Aboriginal people can meet, this Centre would offer them a greater sense of ownership to host and run meetings on local Aboriginal matters. This would further rebuild local pride, social and business relationships.

The experiences offered at the Centre could greatly increase the degree to which local Aboriginal heritage and culture is interpreted and shared with locals and visitors. These experiences will lead to a greater awareness and appreciation of local Aboriginal heritage and culture. Greater interpretation will flow on to establish a greater degree of value among local Aboriginal people.

There is considerable interest in the community in the concept of an Aboriginal Interpretive Centre at Bass Point. For the Aboriginal people of the Shellharbour local government area it is seen as an opportunity to enhance the preservation of what is currently known, to develop and systematically record knowledge and cultural history, to make available appropriate parts of this knowledge to the broader



community for educational purposes and to use knowledge as the basis for commercial ventures.

For other Aboriginal people in the area it is an opportunity for them to include their history and culture as part of the broader story of the region and to be able to preserve this knowledge and make it available as appropriate.

For non-Aboriginal people it is an opportunity for them to acknowledge the Aboriginal history, culture and knowledge of the local area and region, and to begin discussions about ways to share information and knowledge about the precious environment of the area and how to care for it.




Strategy: 1.1.4 Have accessible community and cultural facilities available for current and future community members

Objective: 2.3 A liveable City that is connected through places and spaces

Strategy: 2.3.5 Recognise, protect and celebrate our heritage

Objective: 4.1 Led by a Council that effectively represents the community

Strategy: 4.1.3 Acknowledge and respect the Aboriginal Community as the Traditional Custodians of the land

In addition to the above links to Council’s Community Strategic Plan (CSP) the following information is provided regarding Aboriginal Tourism.

Aboriginal Tourism will increase the region’s tourism product offering and is highlighted in both the Tourism Shellharbour Destination Management and Strategic Marketing Plan 2012 – 2017 and the South Coast NSW Destination Management Plan 2013 – 2020.

The South Coast NSW Destination Management Plan 2013 – 2020 recognises that growth in visitation is intrinsically linked with product and infrastructure development. The Plan states that the:

'The development of Aboriginal tourism products and experiences is in its infancy, with the potential to grow this sector. The most effective entry point for Aboriginal participation in the visitor economy is through involvement with delivering an Aboriginal experience. It is possible to introduce more Aboriginal products and experiences as a mechanism for providing social and economic benefits for local Aboriginal communities.'



The Tourism Shellharbour Destination Management and Strategic Marketing Plan 2012 – 2017 highlights Aboriginal product in the Illawarra region is very limited and as such there is a gap in the market.

Consultations Internal Aboriginal Advisory Committee Manager Assets & Projects Manager Finance Services

External Tourism Shellharbour – Tourism Manager Simon McArthur Associates – Tourism Consultant


Recommendation 1. That Council confirms its consideration of the guidelines issued by the

NSW Government in accordance with Section 23A of the LocalGovernment Act, 1993, in resolving on this matter.

2. That Council endorse the Bass Point Aboriginal Interpretive CentreFeasibility Study dated 21 December 2015 prepared by Simon McArthur &Associates.

3. That Council reaffirm its commitment to develop a Business Case andapprove the amount of $50,000 to engage a consultant to develop aBusiness Case for the preferred site Option 2 – The Midden Site BassPoint and the budget adjusted accordingly.

End Section



Attachments 1. Feasibility Report for a Coast Aboriginal Interpretive Centre in Shellharbour,

NSW prepared by Simon McArthur & Associates. (At end of business paper) 2. Site Options – Bass Point Aboriginal Interpretive Centre.



Attachment 2 – Site Options – Bass Point Aboriginal Interpretive Centre



10.2.2 Establishment of an Alcohol-Free Zone & Prohibited Zone in Drysdale Reserve, Albion Park (10706003)

To the General Manager Directorate: City Outcomes Department: Community Connections

Manager: Toni Lindwall – Acting Manager Community & Cultural Life Author: Meegan Martinez – Community Safety Officer

Summary The purpose of this report is to seek Council's endorsement to exhibit the establishment of a new Alcohol-Free Zone (AFZ) and Prohibited Zone (PZ) 24 hours a day for a period of four years in Drysdale Reserve, being Lot 361, DP 1032188, Drysdale Road, Albion Park. The exhibition would be for a period of 28 days.

The AFZ will include Windermere Avenue, Drysdale Road (stretch adjacent to the reserve), Mortlock Drive (from Ashburton Drive to Kalgan Way), Ellenbrook Way (from reserve to Kalgan Way), Kalgan Way (from Mortlock Drive to Ellenbrook Way) and all footpaths within Lot 361, DP 1032188 (as shown in Attachment 1).

The PZ will include all public land within Lot 361, DP 1032188 (as shown in Attachment 1).

The establishment of this AFZ/PZ is a result of ongoing problems with the public consumption of alcohol, anti-social behaviour and fears for community safety. Council has an obligation to ensure the safety of the community and the establishment of these zones is supported by NSW Police. It is expected that Council establishing an AFZ/PZ for four years will have a positive effect on alcohol-related crime, harm and allow NSW Police to regulate the area and enforce the prohibition.

Following the exhibition period, if no relevant objections are received, the proposed AFZ/PZ be established with a declaration of the establishment published in a local newspaper.

Background In 2013 Shellharbour City Council received several complaints concerning alcohol-related antisocial behaviour and malicious damage at Drysdale Reserve. A Community Safety Pop Up meeting was held with NSW Police and the GraffOff group. A Crime Prevention Through Environmental Design (CPTED) safety audit was conducted, as well as a site audit with relevant council officers with several actions being completed. As a result, issues subsided until recently when reports of antisocial behaviour and malicious damage are becoming common.



Over the summer period 2015/2016, there was a significant increase in antisocial behaviour issues in the park. Another Community Safety Pop Up meeting was held with NSW Police with many residents raising serious alcohol-related behaviour and safety concerns. Reported behaviours have included daily public consumption of alcohol by under-aged teenagers, drug taking, offensive language, intimidation of local residents, illegal dumping, violence, excessive music, parties in the park, car hooning, extensive malicious damage and broken glass bottles.

Residents and NSW Police agreed that an establishment of an AFZ/PZ would be the most appropriate course of action to deter such behaviour and regulate the area.

The public consumption of alcohol and the associated intoxication and antisocial behaviour can be intimidating to the general public and lead to criminal offences such as malicious damage to property. The prohibition of the public consumption of alcohol can assist in addressing such problems where they have been deemed to be an issue.

Council has an obligation to provide a safe environment for the community and the establishment of these zones is supported by NSW Police. It is proposed that Council establishing an AFZ/PZ for four years will have a positive effect on alcohol-related crime, harm and allow NSW Police to regulate the area and enforce the prohibition.

As a requirement of establishing a new AFZ/PZ, the proposal will be advertised in the Lake Times and placed on public exhibition for a period of 28 days. Following the exhibition period, if no relevant objections are received, the proposed AFZ/PZ be established with a declaration of the establishment published in a local newspaper. Signage will be designed, purchased and installed on site.

Financial/resources Implications

The cost of advertisements and new signage to identify the designated areas with dates will be incurred at a cost of $275 per sign with a total of four signs being installed. The cost of advertisements and signage will be funded from the existing Safer Communities Campaign. Ongoing maintenance of signs will be funded through existing parks maintenance budgets.

Legal & Policy Implications

Under the Local Government Act 1993, a Council may declare any public road, car park or footpath to be an Alcohol-Free Zone (Sections 642 - 649). Council may also declare public spaces to be Prohibited Zones and may impose prohibitions against a range of activities (including the public consumption of alcohol) in public spaces (Section 632). Council is empowered under the Local Government Act 1993 to establish or renew Alcohol-Free and Prohibited Zones for periods up to four years.

The proposed AFZ/PZ must be advertised and placed on public exhibition for a period of 28 days. Once established, the new AFZ/PZ has to be declared in a local newspaper.



Public/social impact implications

Police have stated that prohibiting the consumption of alcohol in the area would assist them to better manage the situation. The prohibition of alcohol in the area could also help to address the fear being experienced by the community.



Objective: 1.1 Vibrant, safe and inclusive city.

Strategy: 1.1.3 Make Shellharbour a friendly environment where people feel safe.

Consultations Internal General Manager Group Manager Parks, Aquatic, Landfill & Stadium Group Manager City Services Parks Manager Building Coordinator Manager Property and Recreation

External Lake Illawarra Local Area Command Housing NSW


Recommendation 1. That Council endorse to establish a new AFZ & PZ 24 hours a day for a

period of four years in Drysdale Reserve, being Lot 361, DP 1032188,Drysdale Road, Albion Park and adjacent roads as shown in Attachment1.

2. That Council place the proposal on public exhibition for a period of 28days. If no relevant submissions are received during the public exhibitionperiod, the establishment of the AFZ/PZ in Drysdale Reserve be adoptedwithout a further report to Council.

End Section





Attachments 1. Map of Proposed Alcohol-Free & Prohibited Zone in Drysdale Reserve, Albion

Park.



Attachment 1 – Map of Proposed Alcohol-Free & Prohibited Zone in Drysdale Reserve, Albion Park



10.2.3 Provision of Child Care at Council Meetings (10706004) To the General Manager Directorate: City Outcomes Department: Community Connections Manager: Kathryn Baget-Juleff – Group Manager Community Connections Author: Narelle Williams – Community Development Officer – Access & Participation

Summary The purpose of this report is to provide information on the provision of child care at Council meetings for the period 1 December 2015 to 26 April 2016. During this period no requests were made to access the service and no costs were incurred.

Background At its meeting of 15 September 2015 Council resolved that:

'1. Council continue the provision of child care at Council meetings and the use of Shellharbour/Kiama Family Day Care Scheme to provide this service.

2. That staff report to council quarterly on the cost implications of this

service.' Child care has been provided through Shellharbour/Kiama Family Day Care (SKFDC), for members of the community, Councillors and Council staff attending Ordinary and Extraordinary Council meetings since 2 June 2015. This has been promoted in the media, Council's website and through customer service. Since the meeting of 27 October 2015 primary care givers are required to contact Council prior to accessing the service. During the period 1 December 2015 to 26 April 2016, no requests were made to access the service and no costs were incurred. The cumulative cost of the provision of the service to date is $144.00. Financial/Resources Implications Whilst the cost to date has been minimal, there is currently no dedicated budget for this expenditure. The expenditure has been paid from Community Connections General Expenses.



Legal and Policy Implications

There is no legal requirement for Council to provide child care services for Council meetings. Notwithstanding, the Local Government Act 1993 – Section 8 – states that Council must 'promote and provide and plan for the needs of children', highlighting the needs of local children and families need to be considered and accounted for.

Public/Social Impact

Provision of child care to members of the community, Councillors and Council staff to attend Ordinary or Extraordinary meetings of Council makes the meetings more accessible for everyone.


The Consideration of child care at Council meetings supports the following strategy of the Community Strategic Plan:


Strategy 1.1.3 Make Shellharbour a friendly environment where people feel safe.

Consultations Internal Executive Services

External Nil


Recommendation That Council receive and note the report.



Attachments Nil



10.3 Corporate Policy Directorate

10.3.1 Monthly Investment Report - March 2016 (10704638) To the General Manager Directorate: Corporate Policy Department: Finance Manager: Rob Owens – Chief Financial Officer Author: Paul Henderson - Manager Financial Services

Summary The purpose of this report is to provide details to Council, of its current Investment Portfolio in terms of holdings and impacts of changes in market values since the last monthly report. The report also details investment performance against applicable benchmarks and confirms compliance of Council's investments with policy and legislative requirements. The current budget forecast for interest on investments to 30 June 2016 is $2.46 million. A total of $2,306,544 has been accrued for interest on investments up until the end of March 2016. Council remains ahead of the budget forecast for the first nine months of the year by approximately $460,000 ($2.46 million divided by 12 months and multiplied by 9 months = $1.85 million) An adjustment has therefore been made to the forecast budget for interest on investments as part of the March Quarter Budget Review, which is being considered by Council at this same meeting. The recommended forecast adjustment has been increased to an expected annual return of $2.99 million.

Background Financial Services staff monitor Council's cash flow on a daily basis, with surplus funds being invested in accordance with Council's Investment Policy, the Local Government Act, Local Government (General) Regulation and the Ministerial Investment Order. Subject to these constraints, Council's objective when investing funds, is to obtain the most favourable rate of interest, whilst taking into consideration the risks and security associated with the investment and ensuring that Council's liquidity requirements are also being met. To assist with this process, Council communicates with our independent investment advisors (CPG Research & Advisory) before any investment is made. Close attention is paid to Council's Investment Policy document. Section 212 of the Local Government (General) Regulation 2005, requires Council's Responsible Accounting Officer to provide a report to Council, detailing all investments held at the end of each month. The report must also indicate whether



the investments made, have been in accordance with the Act, the regulations and Council's adopted Investment Policy. Council invests its surplus funds on the best available advice, to maximise interest returns in accordance with Council's Investment Policy. Any additional interest income achieved through the placement of investments will result in extra funds being available for expenditure in our City. This report provides details on the month of March 2016. The monthly return for March was 0.34% or when annualised approximately 4.10%. This return compares favourably with the AusBond Bank Bill Index of 0.20% for the month. Favourable interest on investments returns compared to budget are "restricted" in good years, to insulate Council against years where investment income is less than anticipated e.g. Global Financial Crisis. This means that any extra earnings, up to a previously determined level of $1.7 million, are put aside as restricted monies and have no impact on the projected cash position for that particular year. The internal restriction for interest on investments as at 30 June 2015 was $1.52 million. A further $165,000 has been recommended to be placed into this restriction as part of the March Quarter Budget Review. This amount excludes any interest earned on Section 94 funds. It should be noted that the balance as at 30 June 2015 has been committed this financial year for internal borrowings for the Links Business Plan redevelopment works. A further internal borrowing amount has been proposed as part of the March Quarter Budget Review. Link to Community Strategic Plan The reporting of Council's Investments supports the following objectives and strategies of the Community Strategic Plan: Objective: 4.2 Supported by a Council that is responsive, accountable and

financially viable Strategy: 4.2.1 Undertake Council activities within a clear framework of strategic

planning, policies, procedures and service standards

4.2.3 Ensure Council's long term financial sustainability through effective short and long term financial management that is transparent and accountable

Consultations Internal Chief Financial Officer



External CPG Research & Advisory

Political Donations Disclosure Not applicable

Recommendation That Council receive and note the attached Investment Portfolio reports, as at 31 March 2016.

End Section



Attachments 1. Council's Investment Portfolio as at 31 March 2016

2. Investment Portfolio Graph as at 31 March 2016



Attachment 1 – Council's Investment Portfolio as at 31 March 2016



Attachment 2 – Investment Portfolio Graph as at 31 March 2016



10.3.2 Trial of Alternative Operating Hours - Oak Flats Outdoor 25

metre Heated Pool (10703816) To the General Manager Directorate: Corporate Policy Department: Infrastructure Services Manager: Donna Flanagan – Acting Group Manager Infrastructure Services Author: Emma Davis – Team Leader Recreation

Summary The purpose of this report is to seek Council approval to trial an alteration to the operating hours of the outdoor 25 metre heated pool at Oak Flats during the winter season.

Background The current operating hours during the winter season at Oak Flats outdoor 25 metre heated pool are Monday to Friday, 6am to 7pm and Saturday 6am to 1pm. For the purposes of the pool seasons the ‘winter’ season is defined as the start of May to the start of the NSW school holidays in September each year. Council staff at Oak Flats Pool have advised the Aquatics Coordinator that there is currently very limited pool patronage after 6.30pm in the winter months. However, on Saturdays the patronage is higher. It is proposed to trial an alteration to the current winter hours and to close the facility at 6.30pm and to extend the operating time on Saturdays to 1.30pm. This proposal is based on data collected by Council staff on the traditional patterns for use of the pool from previous seasons. The proposal of this trial has been at the suggestion of the current aquatics staff. The changes in this proposal are proposed to be implemented as a whole package. Further suggestions to alter the proposal as presented will result in adverse budget changes. Oak Flats Swimming Club currently have a licence agreement for the use of the heated pool from June to September each year until 2018. This proposal will not affect the operation of their licence agreement. An advertisement will be placed in The Lake Times and a site notice will be placed at the main office entrance to the pool during the exhibition period. Council will advertise the proposal for a period of 28 days.



Council staff will consult with the community at Oak Flats Swimming Pool and a report will be presented to Council should any submissions be received during the exhibition period.

Financial / Resources Implications There will be a savings to casual staff costings of approximately $3,000. As previously noted the changes in this proposal are to be implemented as a whole package otherwise adverse budget changes will result.

Legal & Policy Implications There are no legal or policy implications.

Public / Social Implications The proposed change in operating hours is not considered to have any adverse public or social implications. The proposed changes maintain the public and social benefits expected from the delivery of pool services. The public will benefit from extended operating hours on a Saturday when utilisation rates are high.



Objective: 1.1 Vibrant, Safe and Inclusive City

Strategy: 1.1.6 Meet the diverse needs of the community through the delivery of quality and accessible community services and programs

Objective: 1.2 Active and Healthy Community

Strategy: 1.2.1 Provide residents access to a range of services and facilities that are relevant and responsive to health and wellbeing

Objective: 3.1 Infrastructure is planned and managed in a way that meets the community’s needs

Strategy: 3.1.1 Provide the community with a broad range of quality infrastructure, assets

Consultations Internal Aquatic Co-ordinator Group Manager – Parks, Aquatics, Landfill and Stadium



External Oak Flats Swimming Club


Conclusion The proposal to trial the alterations to the operating hours of the pool during the winter season will result in a cost saving to Council. The proposed changes do not contribute to any adverse impacts on the delivery of pool services to the community. It will also provide a service to the community when the utilisation is higher on a Saturday. Following the trial, a further report to will be presented to Council outlining the results of the trial including the community consultation undertaken and any issues or complaints.

Recommendation 1. That Council approve the trial of the alteration to the ‘winter’ operating

times of the Oak Flats 25 metre heated pool for the current 2016 winterseason. Those operating times being 6am to 6.30pm Monday to Fridayand 6am to 1.30pm on Saturdays.

2. That the community be notified with a notice being placed in the localnewspaper and appropriate signage at the facility.

3. That Council staff consult with the community at Oak Flats SwimmingPool during the exhibition period.

4. That a further report be presented to Council at the end of the trialoutlining the results including the community consultation undertakenand any issues and complaints.



Attachments Nil



10.3.3 Illawarra Regional Airport - Illawarra Hangar Pty Ltd - Deed of

Variation to Lease (10700276) To the General Manager Directorate: Corporate Policy Department: Infrastructure Services Manager: Donna Flanagan – Acting Group Manager Infrastructure Services Author: Melissa Scozzafava – Team Leader Property

Summary The purpose of this report is to provide a response to a Question on Notice by Councillor Moran and to seek Council’s approval to enter into a Deed of Variation to the Lease with Illawarra Hangar Pty Limited to allow sub-leasing within the permitted use. There will be a provision in the proposed Lease of Variation whereby Illawarra Hangar Pty Limited is required to obtain Council consent for any future sub-leases and that 10% of any rent payable under the sub-leases over and above the rent payable under the head lease with Illawarra Hangar Pty Limited will be forwarded to Council.

Background At the Council Meeting of 12 May 2015, Councillor Moran asked if there was any consideration given to amending the lease with Illawarra Hangar Pty Limited now that Council Officers are aware that Skydive the Beach are paying $95,000 per annum for a facility for which Council receives a ground lease rental of $7,500 per annum. The General Manager took the Question on Notice from Councillor Moran. Council entered into a Public Private Partnership with Illawarra Hangar Pty Limited as per the approval from ‘Office of Local Government’ and Council resolution dated 9 November 2010. This was on the basis that council enter into a lease on the completion of the hangar for a term of 30 years with an annual commencement rental of $7,000 plus GST increased annually by CPI. Upon commencement of the lease, the asset was dedicated to Council. As advised by the Lessee, the cost of the construction of the facility was $700,000. The Business Paper of the Ordinary Council Meeting 9 November 2010 stated: “The rental was determined on a commercial basis having regard to the lease condition requiring reversion of the newly constructed hangar into Council ownership on completion of construction”.



Despite the asset reverting to Council’s ownership, maintenance of the hangar remains the responsibility of Illawarra Hangar Pty Limited for the term of the lease.

The permitted uses under the lease are aviation facility, hangar garage, skydiving related activities including training and all matters, office, aircraft maintenance, freight, flight check training and charter.

Following the Question on Notice, Council officers investigated and sought advice on this matter as the sub-leases had been entered into without the prior formal consent of Council. Under the terms of the lease, Council is presently able to withhold its consent to any sub-lease, however at law it must act reasonably when considering any such request made by the Lessee, particularly where the request to sub-lease does not involve a change of the permitted use of the premises under the head lease.

Copies of the sub-leases were provided and it appears that the lessee has structured their business operations in such a way that there is a sub-lease for the whole hangar to ‘Skydive Holdings Pty Limited’ with sub-sub-leases to ‘Aircraft Maintenance Centre Pty Limited’ for the hangar floor and offices and ‘Skydive the Beach and Beyond Wollongong Pty Limited’ for the waiting room and upstairs area of the hangar. The lessee has indicated to Council that this structure was put in place for risk protection in order to separate out each of the businesses should one of them fail. This type of arrangement is common in the business world and is legally able to be done. Further, Council is unable to withhold a reasonable request to sub-lease within their permitted use.

Proposed Sub-lease Arrangements To reflect the structure of the business operations, the Lessee has sought the consent of Council to an initial sub-lease between ‘Illawarra Hangar Pty Limited (as sub-lessor) and Skydive Holdings Pty Limited (as Sub-lessee)’, and two (2) sub-sub-leases between ‘Skydive Holdings Pty Limited (as sub-sub-lessor) and Aircraft Maintenance Centre Pty Limited (as sub-sub-lessee)’; and ‘Skydive Holdings Pty Limited (as sub-sub-lessor) and Skydive the Beach & Beyond Wollongong Pty Limited (as sub-sub-lessee)’.

The application for Council’s consent to those sub-leases includes an assurance that the rent payable under any the proposed sub-lease and sub-sub-leases will not exceed the rent from time to time payable under the head lease to Council.

Also, the head lease will be varied to ensure that if there are any further sub-leases and/or sub-sub-leases which result in the current annual rent received under all sub-leases exceeds the amount payable to Council under the head lease, then Illawarra Hangar Pty Limited will be required to pay Council a fee of 10% of the amount of that excess.

Financial/ resources implications Illawarra Hangar will be responsible for the costs associated with the preparation and registration of the Deed of Variation and endorsement of the subleases.



Legal & Policy Implications A draft Deed of Variation needs to be prepared to allow for sub-leasing as per the permitted use and inclusion of conditions including that 10% of any rent payable under any future sub-leases and sub-sub-leases over and above the rent payable under the head lease needs to be paid to Council and evidence of sub-lease and sub-sub-lease rental be provided to Council each financial year. Illawarra Hangar Pty Limited would then be required to submit proposed sub-lease and sub-sub-lease documents to Council for approval within the permitted use of the head-lease including rental amounts. Public/social impact There is no public or social impact on the Deed of Variation. Council Decision Making During Merger Proposal Periods – Section 23A of the Local Government Act 1993 The Office of Local Government’s document Council Decision Making During Merger Proposal Periods states:

• “Council’s the subject of merger proposals should not enter into a contract or undertaking involving the expenditure or receipt by the council of an amount equal to or greater than $250,000 or 1% of the Council’s revenue from rates in the preceding financial year (whichever is the larger), unless:

o The contract or undertaking is entered into as a result of a decision made or procurement process commence prior to the start of the merger proposal period; or

o entry into the contract or undertaking is reasonably necessary for the purposes of:

meeting the council’s ongoing service delivery commitments to

its community; or to implement an action previously approved under a council’s

Delivery Program or the Operational Plan for the relevant year. The proposed Deed of Variation to the Lease with Illawarra Hangar Pty Limited to allow sub-leasing within the permitted use is permissible under the above guidelines. Link to Community Strategic Plan This report supports the following objectives and strategies of the Community Strategic Plan: Objective: 3.1 Infrastructure is planned and managed in a way that meets the

community needs



Strategy: 3.1.1 Provide the community with a broad range of quality infrastructure,

assets and facilities delivered in a cost-effective and sustainable manner

Objective: 4.2 Supported by a Council that is responsive, accountable and

financially viable Strategy: 4.2.3 Ensure council’s long term financial sustainability through effective

short and long term financial management that is transparent and accountable

Consultations Internal Director Shellharbour Enterprises External Marsdens Law Group Illawarra Hangar Pty Limited Sky Dive Holdings Pty Limited Political Donations Disclosure Not Applicable

Recommendation That Council: 1. Enter into a Deed of Variation to the current lease with Illawarra Hangar

Pty Limited. 2. Endorse sub-leasing as per the permitted use within the head Lease with

‘Skydive Holdings Pty Limited’, ‘Aircraft Maintenance Centre Pty Limited’ and ‘Skydive the Beach and Beyond Wollongong Pty Limited’.

3. Endorse that a subsequent condition be included within the lease, that

10% of any rent payable under the sub-leases over and above the rent payable under the head lease with Illawarra Hangar Pty Limited will be forwarded to Council.

4. That Council stress that any future proposed sub-leases associated with

Illawarra Hangar Pty Limited and sub-sub-leases, must obtain prior consent from Council officers as per the lease agreement.



5. That the Mayor and General, or his nominated delegate, be authorised tosign any documentation associated with the Deed of Variation withIllawarra Hangar Pty under Council Seal.

End Section



Attachments Nil



10.4 Shellharbour Enterprises Directorate

Nil

11. Committee Recommendations

11.1 Recommendations from the Traffic Committee Meeting held 4 May 2016 recommended for adoption.

That the Recommendations from the Traffic Committee Meeting held of 4 May 2016 be adopted.

12. Items for Information

Nil

13. Notices of Rescission/Alteration Motions

Nil

14. Notices of Motion

Nil



15. Questions on Notice (must be submitted in writing)

15.1 Questions on Notice submitted by Cr Peter Moran: Cafes in the Shellharbour Local Government Area (10707346)

1. Does Council have a register of operating cafes in Shellharbour Local GovernmentArea?

2. Do cafes require a 'Food Registration Form' to operate?

3. Can a 'Food Registration Form' only be issued to a business operating in a buildingwhich has been issued with an Occupation Certificate?

4. Is Council aware that HARS operates a cafe at their facility?

5. Is the HARS cafe registered with Council and does it comply with all ShellharbourCity Council requirements for operating a food business or cafe?

___________________________ Cr Peter Moran




16. Urgent Business

17. Committee of the Whole in Closed Session: Adjournment

18. Committee of the Whole: Consideration of Adoption of Decisions Reached in Closed Session

19. Consideration of Motions to Declassify Reports Considered in Closed Session


Contents

What is a Quarterly Performance Report? 2

Guide to Reading the Quarterly Report 2

Operational Plan Performance Summary 3

Financial Summary 4Income & Expenses Budget Review Statement 5Capital Budget Review Statement 7Cash & Investments Budget Review Statement 8Key Performance Indicators Budget Review Statement 9Contracts Budget Review Statement 10Consultancy & Legal Expenses Budget Review Statement 10

Operational Plan Performance Detail 11City Outcomes 11Corporate Policy 48Shellharbour Enterprise 76Executive Services 84

2

What is a Quarterly Performance Report? Quarterly Performance Reports are provided to the community as a performance measurement tool for the 2015/16 Operational Plan. It is a legislative requirement as part of the Local Government Act 1993, Integrated Planning and Reporting Framework and provides a structure to enable Council internally to monitor and report against performance and provides Councilors' with a comprehensive overview of the progress and status of Council’s performance. This report provides the legislatively required quarterly budget review statement, highlighting key achievements, as well as the progress and status of the Operational Plan Actions performance for the third quarter for 2015/16 (as at March 2016).

Guide to Reading the Quarterly Report The following information explains how to read and understand this report.

Term Definition

Actions: Each Action spells out the individual activities that will be undertaken in a financial year to achieve those Strategies in the Delivery Program

Green Traffic Light: Performance status (timeframe/scope) for the quarter is on track in terms of deliverables, scope, and timeframe.

Amber Traffic Light: The Action is off track and is in danger of not finishing on time. Remedial action needs to be taken.

Red Traffic Light : The Action will not be delivered in time.

Completed: The Action was completed in a previous period.

Key Performance Indicator:

Details of each key performance indicator (performance measures) for services.

Year to Date: This figure is cumulative total for this and previous quarter(s) for the financial year.

Quarter 3 Target: This figure is the target for the current quarter

3

Operational Plan Performance Summary

The quarterly review details progress against 176 activities (projects and services) of which 86% are progressing in accordance with the agreed timeframes and only 14% are behind schedule, this is represented below:

Directorate Green Traffic Light

Amber Traffic Light

Red Traffic Light Total

City Outcomes 64 8 0 72

Corporate Policy 54 11 1 66

Shellharbour Enterprises 19 3 0 22

General Manager’s Office 15 1 0 16

4

Financial Summary Report by Responsible Accounting Officer The following statement is made in accordance with Clause 203(2) of the Local Government (General) Regulations 2005: It is my opinion that the Quarterly Budget Review Statement for Shellharbour City Council for the quarter ended 31/03/16 indicates that Council’s projected financial position at 30/06/16 will be satisfactory at year end, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.

Signed:

Carey McIntyre Responsible Accounting Officer

Date: 11/05/2016

5

Income & Expenses Budget Review Statement

Income & Expenses Budget Review Statement (by Quadruple Bottom Line)

Original Revised Variations Projected Actual

($000's) Budget Carry Other than Sep Dec Mar Budget for this Year End YTD2015/16 Forwards by QBRS QBRS QBRS QBRS 2015/16 Mar Qtr Result figures

IncomeCommunity 5,369 - 40 (40) 5,369 123 5,492 3,914 Environment 38,321 - (2,289) 4,196 40,228 1,521 3,11 41,749 31,174 Economy 16,343 - 239 2,595 19,177 897 2,7 20,074 16,688 Leadership 45,124 619 20 - 45,763 325 8,10 46,088 44,321 Total Income from Continuing Operations 105,157 619 - (1,990) 6,751 - 110,537 2,866 113,403 96,097

ExpensesCommunity 16,952 156 63 (121) 17,050 92 17,142 13,144 Environment 26,693 348 107 3,697 30,845 (1,324) 1,4,5,9 29,521 19,807 Economy 23,185 32 231 (3,586) 19,862 (81) 19,781 14,814 Leadership 18,960 78 (236) (807) 17,995 304 6 18,299 12,820 Total Expenses from Continuing Operations 85,790 614 - 165 (817) - 85,752 (1,009) 84,743 60,585

Net Operating Result from Continuing Operations 19,367 5 - (2,155) 7,568 - 24,785 3,875 28,660 35,512

Discontinued Operations - Surplus/(Deficit) - -

Net Operating Result from All Operations 19,367 5 - (2,155) 7,568 - 24,785 3,875 28,660 35,512

Approved ChangesNotes

Income & Expenses Budget Review Statement (Financial Statements)

Original Revised Variations Projected Actual

($000's) Budget Carry Other than Sep Dec Mar Budget for this Year End YTD2015/16 Forwards by QBRS QBRS QBRS QBRS 2015/16 Mar Qtr Result figures

IncomeRates and Annual Charges 49,338 - - 173 49,511 67 49,578 49,638 User Charges and Fees 19,117 - 40 4,009 23,166 907 11 24,073 18,677 Interest and Investment Revenues 2,596 - 34 (65) 2,565 536 7,8 3,101 2,410 Other Revenues 2,908 - - (337) 2,571 220 10 2,791 1,653 Grants & Contributions - Operating 8,001 - 51 129 8,181 318 3 8,499 6,616 Grants & Contributions - Capital 12,846 619 (2,115) 3,313 14,663 1,020 2 15,683 13,070 Net gain from disposal of assets 10,351 - - (471) 9,880 (202) 9,678 4,033 Total Income from Continuing Operations 105,157 619 - (1,990) 6,751 - 110,537 2,866 113,403 96,097

ExpensesEmployee Costs 31,702 15 210 (3) 31,924 111 32,035 23,008 Borrowing Costs 809 - - - 809 (331) 4 478 321 Materials & Contracts 21,476 565 (84) 119 22,076 (581) 1,6,9 21,495 14,704 Depreciation 16,470 - - (3,000) 13,470 - 13,470 9,903 Other Expenses 15,333 34 39 2,067 17,473 (208) 5 17,265 12,649 Total Expenses from Continuing Operations 85,790 614 - 165 (817) - 85,752 (1,009) 84,743 60,585

Net Operating Result from Continuing Operations 19,367 5 - (2,155) 7,568 - 24,785 3,875 28,660 35,512

Discontinued Operations - Surplus/(Deficit) - -

Net Operating Result from All Operations 19,367 5 - (2,155) 7,568 - 24,785 3,875 28,660 35,512

Net Operating Result before Capital Items 6,521 (614) - (40) 4,255 - 10,122 2,855 12,977 22,442

NotesApproved Changes

6

Recommended changes to revised budget forecast Budget Variations being recommended include the following material items: Notes Details

1 Garbage - Materials -$1,111,163

2 S94 Plan - Capital Contributions - Developer Contributions (S94) -$820,527

3 Organics Collection System Grant - Operating Grant-Environmental -$333,779

4 Remediation & Amortisation of Assets -$330,853

5 Local Roads Lighting Maintenance - Electricity -$232,381

6 Consultants for Merger Advice $230,000

7 S94 - Interest -$370,796

8 Finance - Interest on Investments -$165,000

9 Organics Collection System Grant - Contractors $150,000

10 Southern Phones - Dividend Income -$132,613

11 Waste Management User Charges -$800,000

7

Capital Budget Review Statement

Original Revised Variations Projected Actual($000's) Budget Carry Other than Sep Dec Mar Budget for this Year End YTD

2015/16 Forwards by QBRS QBRS QBRS QBRS 2015/16 Mar Qtr Result figuresCapital ExpenditureNew Assets- Plant & Equipment 357 - 43 - 400 - 400 299 - Land & Buildings 20,820 460 95 (7,658) 13,717 (5,708) 2,4,10 8,009 5,113 - Roads, Bridges, Footpaths 628 25 467 (100) 1,020 (255) 8 765 423 - Drainage 862 51 (86) - 827 (543) 6 284 151 - Other Infrastructure - - - - - - - - - Other 12,184 786 189 (2,939) 10,220 (5,544) 1,3,5 4,676 2,253 Renewal Assets (Replacement)- Plant & Equipment 2,550 - - (300) 2,250 (596) 1,654 679 - Land & Buildings 9,228 152 322 (2,555) 7,147 (3,049) 2,7,9 4,098 2,890 - Roads, Bridges, Footpaths 4,985 219 44 (441) 4,807 206 5,013 2,634 - Drainage 744 76 100 (85) 835 (137) 698 144 - Other Infrastructure 86 33 - - 119 1,019 11 1,138 5 - Other 8,802 413 86 (2,424) 6,877 (3,895) 1 2,982 819 Total Capital Expenditure 61,246 2,215 - 1,260 (16,502) - 48,219 (18,502) 29,717 15,410

- - - - - - Capital Funding

Internal Reserves 17,694 1,015 325 (11,150) 7,884 (266)

2,3,4,7,10,11 7,618 3,395

Asset Improvement Program 1,471 76 (4) 47 1,590 (342) 8 1,248 698 SRV 5,637 345 262 (173) 6,071 (16) 9 6,055 3,154 Loans 600 - - (588) 12 (12) - 13 Section 94 16,834 141 144 (644) 16,475 (7,876) 2,5,6 8,599 5,262 Grants 5,002 60 184 (3,705) 1,541 (218) 1,323 175 Contributions 584 150 20 100 854 (100) 9 754 772 Domestic Waste 8,524 377 - - 8,901 (8,156) 1,3,11 745 328 Stormwater Service Charge 710 51 329 (82) 1,008 (436) 572 144 General Revenue 4,190 - - (307) 3,883 (1,080) 3 2,803 1,469 Total Capital Funding 61,246 2,215 - 1,260 (16,502) - 48,219 (18,502) 29,717 15,410

Net Capital Funding - Surplus/(Deficit) - - - - - - - - - -


Recommended changes to revised budget forecast Budget Variations being recommended include the following material items: Notes Details

1 Dunmore Resource Recovery Centre Improvements -$7,405,799

2 Civic Centre -$8,019,622

3 Waste & Recycling Depot Landfill Capping -$1,811,484

4 Cabins at Shellharbour Beachside Tourist Park $342,524

5 Albion Park Showground Lighting -$237,500

6 Wattle Road GPT -$218,618

7 Warilla Library Relocation Project -$395,579

8 Albion Park Cemetery – Road Extension -$206,847

9 Old SES Building Refurbishment -$170,708

10 Links Business Plan – Redesign / Gaming, etc. $148,137

11 Waste / Recycling Depot Cell 5 Preparations $1,000,000

8

Cash & Investments Budget Review Statement

Original Revised Variations Projected Actual($000's) Budget Carry Other than Sep Dec Mar Budget for this Year End YTD

2015/16 Forwards by QBRS QBRS QBRS QBRS 2015/16 Mar Qtr Result figuresExternally Restricted (1)

Developer contributions (S 94) 23,825 (141) 1,023 669 25,376 9,022 34,398 36,357 Specific purpose unexpended grants 3,720 (461) (1,051) 3,709 5,917 313 6,230 3,218 Domestic waste management 6,014 (377) 1,049 874 7,560 10,068 17,628 19,151 Stormwater management 379 (51) 68 - 396 476 872 1,021 Other contributions 400 460 144 (100) 904 100 1,004 675 Total Externally Restricted 34,338 (570) - 1,233 5,152 - 40,153 19,979 60,132 60,422 (1) Funds that must be spent for a specif ic purpose

Internally Restricted (2)

Employee leave entitlements 3,328 - (93) - 3,235 - 3,235 3,329 Capital works carry overs 899 (832) 786 1,749 2,602 111 2,713 1,771 Operational carry overs 871 (261) 344 - 954 - 954 605 Asset Improvement Reserve 214 (85) 364 (100) 393 341 734 1,023 SRV 608 (345) 193 173 629 16 645 3,061 Capital Development and Investment Fund 161 - 33 (127) 67 133 200 361 Section 94 funds - council 1,070 (81) 84 41 1,114 619 1,733 1,947 Community Transport 250 - 60 320 630 51 681 425 Sand mine 324 - 3 - 327 - 327 416 Crown Reserve 654 - 70 - 724 (205) 519 424 Road land acquisitions / roadworks 293 (36) (206) 85 136 38 174 475 Interest on investments 263 - 10 (222) 51 17 68 738 Carbon Price 521 - (411) 257 367 - 367 1,868 Asset Sales 10,727 - 997 10,316 22,040 613 22,653 7,671 Airport Building 1,218 - - - 1,218 - 1,218 1,218 Other 1,727 - (145) 732 2,314 12 2,326 1,505 Total Internally Restricted 23,128 (1,640) - 2,089 13,224 - 36,801 1,746 38,547 26,837 (2) Funds that Council has earmarked for a specific purpose

Unrestricted (ie. available after the above Restrictions) 3,958 - - (127) (67) - 3,764 253 4,017 4,687

Total Cash & Investments 61,424 (2,210) 3,195 18,309 80,718 21,978 102,696 91,946


Comment on Cash & Investments Position Not Applicable Investments Investments have been invested in accordance with Council's Investment Policy. Reconciliation Status

The YTD Cash & Investment figure reconciles to the actual balances held as follows: $ 000's

Cash at Bank (as per bank statements) 2,131

Investments on Hand 90,117

less: Unpresented Cheques (Timing Difference) (357)

add: Undeposited Funds (Timing Difference) 55

Reconciled Cash at Bank & Investments 91,946

Balance as per Review Statement 91,946

Difference: -

9

Key Performance Indicators Budget Review Statement

Revised Projected Year End Result

Original (CSP)

Projected Year End

Result Actual Result Prior Periods

(000’s) 15/16 15/16 14/15 13/14 12/13

The Council monitors the following Key Performance Indicators:

1. Operating Performance Ratio

Operating Revenue (excludes Capital) – Operating Expenses 2,673

3.06% -5.48% -6.85% -13.96% -14.30% Operating Revenue

(excludes Capital Grants & Contributions) 87,416

This ratio measures Council’s achievement of containing operating expenditure within operating revenue.

2. Own Source Operating Revenue

Operating Revenue (excludes all Grants & Contributions) 79,437

77.05% 77.34% 67.15% 71.34% 76.16% Total Operating Revenue

(includes Capital Grants & Contributions) 103,099

This ratio measures fiscal flexibility. It is the degree of reliance on external funding sources such as operating grants and contributions.

3. Debt Service Ratio

Cost of debt service (interest expenses & principle repayments) 594

0.68% 0.73% 0.54% 0.57% 0.24% Operating Revenue

(excludes Capital Grants & Contributions ) 87,416

This ratio assesses the impact of loan principle and interest repayments on the discretionary revenue of council.

4. Building, Infrastructure & Other Structures Renewals Ratio

Asset Renewals (Building, Infrastructure & Other Structures) 12,619 134.88% 166.00% 40.03% 29.53% 32.06%

Depreciation, Amortisation & Impairment 9,356

To assess the rate at which these assets are being renewed relative to the rate at which they are depreciating.

CIT

Y O

UT

CO

ME

S

10

1. Operating Performance Ratio 2. Own Source Operating Ratio

-14.30 % -13.96 %

-6.85 %-5.48 %

3.06 %

-16 %

-14 %

-12 %

-10 %

-8 %

-6 %

-4 %

-2 %

0 %

2 %

4 %

2012/13 2013/14 2014/15 2015/16 (O) 2015/16 (R)

Rat

io %

76.16 %71.34 %

67.15 %

77.34 % 77.05 %

0 %

20 %

40 %

60 %

80 %

100 %

2012/13 2013/14 2014/15 2015/16 (O) 2015/16 (R)

Rat

io %

3. Debt Service Ratio 4. Building, Infrastructure & Other Structures Renewals Ratio

`

0.24 %

0.57 %0.54 %

0.73 %0.68 %

0.00 %

0.10 %

0.20 %

0.30 %

0.40 %

0.50 %

0.60 %

0.70 %

0.80 %

2012/13 2013/14 2014/15 2015/16 (O) 2015/16 (R)

Ra

tio %

32.06 % 29.53 %40.03 %

166.00 %

134.88 %

0 %

20 %

40 %

60 %

80 %

100 %

120 %

140 %

160 %

180 %

200 %

2012/13 2013/14 2014/15 2015/16 (O) 2015/16 (R)

Rat

io %

Contracts Budget Review Statement Part A - Contracts Listing - There were no contracts entered into this quarter

Consultancy & Legal Expenses Budget Review Statement Consultancy & Legal Expenses Overview

YTD Expenditure (Actual Dollars)

Budgeted Y / N

Expense

Consultancies 1,763,780 Y

Legal Fees 427,838 Y

Definition of a consultant: A consultant is a person or organisation engaged under contract on a temporary basis to provide recommendations or high level specialist or professional advice to assist decision making by management. Generally, it is the advisory nature of the work that differentiates a consultant from other contractors.

12

City Outcomes

4.2.1.11 Lead and manage the City Outcomes Directorate in order to meet the objectives of the Community Strategic Plan

The focus for the City Outcomes directorate this period has been guiding and keeping staff informed of the merger proposal and the process from here. Staff across the directorate have been encouraged to contribute to the Don't Guess Ask campaign; to continue to read the Facts Sheets developed by Organisational Development; and to read the General Manager's weekly blog. Senior staff in City Outcomes participated in a workshop on Preparing for change - a senior leaders’ programs. The focus of the workshop was preparing the organisation for change, what leadership is needed or expected in change and who is looking after you as a senior manager. The workshop was well received and identified that change is a personal process and we are the leader of our team needs. Also this period Group Managers developed their groups 2016/17 Business Plans (stage 1) in consultation with their teams which included identifying the strengths, challenges and opportunities for their groups, key priorities for the coming 12 months and risks to achieving these priorities as well as training requirements. Group Managers were provided the opportunity to present their Business Plans at the Senior Management Team (SMT) meeting. It provided a great opportunity to understand the priorities and synergies between groups and it allowed senior managers to identify how we can make improvements and work more collaboratively across the organisation.

Community Connections

1.1.5.02 Promote, manage and develop diverse and innovative creative programs at the Shellharbour Village Exhibition Space

Exhibitions and events hosted in the Shellharbour Village Exhibition Space (SVES) this quarter included the first solo exhibition by an emerging artist, exhibitions of work by local painters and a butterfly house event facilitated by Council's library and environment teams. The butterfly house was a success and saw 78 adults and 30 children visit the SVES over a period of four hours. The event received very positive feedback and media coverage, which also provided additional promotion for the space itself. The exhibition space also hosted a show by an emerging artist which displayed multimedia and installation artworks alongside drawings, photography and sculpture. Ochre and Ink was a exhibition by photographer Barrie Voorwinden, printmaker Elizabeth Muntz and printmaker Mary Louise Wyatt. Other exhibitions included an exhibition of work by two very different artists displaying abstract paintings and appropriated classic artworks. An exhibition titled ‘The Female Entrepreneur’ featured portrait and abstract artwork in a variety of mediums including watercolour, ink and acrylics in a celebration of women and beauty. Exhibitions and events are promoted in Council's seasonal calendar and the Shellharbour Village Exhibition Space Facebook page (https://www.facebook.com/SVESart/ ). In response to the SVES not being fully utilised investigations have begun into new marketing strategies and potential business models to help improve usage of this space. During the next quarter expressions of interest will be sought for exhibitions and events to utilise the space during the next financial year.

Key Performance Indicator Quarterly Target

Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of days the space is utilised in the quarter 70 26 32 24 82

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1.1.7.02 Provide diverse library programs and foster partnerships with the community

This quarter had a real focus on the young people of Shellharbour City. Young people participated in the many activities held during the school holidays. The annual Summer Reading Club program saw 1510 books read throughout the duration of the 6 week program. This state wide literacy program is supported by the NSW State Library and not only focuses on improving and increasing literacy, but also on raising the profile of public libraries and their positive impact on the joy that can be gained through recreational reading. The annual library ‘food for fines’ amnesty was once again well supported by the local community. Over 470 individual food items were donated to local charity the Denny Foundation as a part of the program, supporting local people in need. The Albion Park Library open day successfully saw 500 people participating in the events and activities held on the day. The collaborative event was held in partnership with various Council departments and community groups all working together to activate the space, while at the same time raising awareness of Albion Park Library – its services, programs and collections.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of library programs and activities presented 110 141 138 85 364

Number of people participating in library programs and activities

1,400 1,832 2,008 1,931 5,771

PAWS ‘N’ TALES

With the support of Mayor Cr. Marianne Saliba and Cr. Helen Stewart, Council’s libraries commenced the Paws ‘n’ Tales literacy program presented in partnership by PAWS Pet Therapy ‘dogs helping people’ program.

The wonderful program supports young children in building confidence, self-esteem and reading skills by sharing and reading stories to a friendly four-legged friend.

.

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1.1.1.02 Support and facilitate a range of place based initiatives and events that celebrate local people and places

This was an exciting quarter with many opportunities to celebrate the Shellharbour ‘community’. This year Council partnered with the Lake Illawarra PCYC to celebrate International Women’s Day, the theme of the event was ‘Celebrating Shellharbour’s Women in Sport’. The event attracted over 100 people attending the event and was also supported by a number of volunteers. ‘Celebrating Shellharbour’s Women in Sport’ hosted a number of guest speakers from the local community including; Shellharbour City Mayor, local female athletes, trainers and local female Police Officers.

PAINT SHELLHARBOUR ReAD

On 15 February at Warilla Library Mayor Cr. Marianne Saliba successfully launched Paint Shellharbour REaD - a program that encourages all areas of the community to read, talk, sing and rhyme with children from birth, so that they will develop the literacy skills needed in preparation for school. This collaborative community program incorporates local organisations, government, non-government and individuals to help get the early literacy message out to the many families in Shellharbour City caring for pre-school aged children. Over 100 new books were donated by guests which will be used to create book boxes across the city.

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A social media campaign was used to promote the event with historical images of local women in sport, this was shared by Council’s social media channels and also the PCYC. The Mayor promoted awareness of the national campaign for International Women’s Day through social media, #pledgeforparity (https://www.internationalwomensday.com/Resources). The community gardens at both Barrack Heights and Albion Park continue to provide opportunity as social venues. Council support the volunteers and residents who continue to build a sense of community and belonging at the garden. This quarter the two gardens had the opportunity to showcase the gardens at the Albion Park Library Open Day, it provided a platform to engage and educate a wide variety of members of the community. Unfortunately, this quarter the Barrack Heights Community Garden was subject to a number of vandalism attacks. Council coordinated repairs and collaborated with volunteers to improve passive surveillance to the area. The Good Neighbour program focused this year on ‘Play’. This theme was used to actively promote and enhance awareness of the good neighbour program through the use of old school games. Council hosted a number of pop up stalls at local markets, with people attracted by the opportunity of playing with the giant games including jenga, connect 4, hula hoops, skipping ropes and other activities. In addition to this, Council hosted a free Movies Under the Stars event at Barrack Point, hundreds of residents attended to watch the animated feature film ‘Home’. 37 nominations were received. Sponsorship of prizes and planning is underway for the Good Neighbour Awards. The annual Seniors Week program of activities and events, were again well supported by the community. The nation campaign ‘Grow Young’ was the focus of this year’s program. Council hosted the Official Opening, which grows bigger each year and registrations exceeded 150 people for 2016. The opening included a Civic Welcome from Councillor Murray and was guest’s speakers and entertainment from 'No Such Thing' a bush band. Council supported other events and activities in a full ten-day program, which included sports activities, arts and crafts, education programs and social activities.

1.1.1.03 Develop and deliver a range of responsive and innovative youth services programs that support and encourage active participation by young people

The Youth Services Team (YST) continues to provide a range of services and activities that engage and involve young people in worthwhile positive programs that promote young people as valued members of our community. The Albion Park Outreach program is conducted every Wednesday and Friday four hours a week. This service conducts activities in partnership with Albion Park library and Albion Park Youth and Community Care. They have held craft workshops that focus on recycle, repurpose and reinvent. It also conducted tunes and tricks, provided music, drop In -Toast and Milk shakes programs. A large number of regulars attend the Youth space, they use the courtyard to play basketball, play giant Connect Four game and regularly use the Library Wi Fi. They are currently restoring two donated wooden tables and a number of chairs that stay in the Youth Space foyer, with a chalk paint. The Albion Park Rail 'Milkshake & Toast' Outreach program is conducted every Tuesday and Thursday four hours a week. The milkshake and toast is used as an engagement tool during the outreach program with a view to establish and foster relationships between Youth Services and the young people attending the service. Youth workers have identified the importance of providing healthier and nutritious food options to young people offering fruit smoothies and fresh fruit options. The young people who engage with this program are offered support and guidance on a range of issues that are raised informally in a safe and secure setting. The Youth Worker in school program operates out of the four public high schools and recently has started meeting with two private schools to establish engagement programs with the young people at those schools. Some of the highlights of the service this quarter were a "Bonding and transition Day", Rock & Water programs, porcelain dolls art project, Love Bites workshop which is a Domestic Violence and Sexual Assault education program, creating artworks for the Youth Week Art Exhibition, mental health programs, plans for the Shellharbour Civic Centre youth public artwork, involvement in a IT expo and a

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wide range of art and recreational activities. Plus the YST have made referrals to other youth services, provided young people and staff with information about youth issues. At the Blackbutt Youth Centre the Team have provided programs in art, circus, guitar, drama and drop in on a weekly basis. The young people involved have produced art works for the art exhibition, developed skills in circus performance and the drama group is developing a youth production to staged later this year. The Shellharbour Youth Council is being established with all eight high schools in the Shellharbour Local Government Area being invited to participate. Southern Youth and Family Services (SYFS) and Shellharbour Aboriginal Community Youth Association (SACYA) were sent invitations seeking a representative for the youth council from their organisations. Nominations for the community representative positions were also called for. To date we have had responses from 3 school representatives, 1 SYFS representative, 1 SACYA representative and 6 community nominations.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of activities or programs that have been conducted 27 63 49 56 168

Number of occasions young people participate in an activity or program

910 1,640 1,002 2,511 5,153

1.1.2.02 Facilitate and foster community partnerships that build community capacity, attract resources and promote local community initiatives

A focus this quarter for the Illawarra Interagency was to promote and build relationships within the community. The interagency is a partnership program with Kiama Council and conducts regular meetings to develop the clear goals and purpose, investigate opportunities for training and host guest speakers and to develop agendas for meetings and events. During this quarter two Steering meetings were held to confirm guest speakers, plan details of the training held in March and review past events. Information continued to be shared between service providers via email newsletter and through the Interagency Blog (http://illawarrainteragency.com). The February meeting attracted 30 members and guest speakers included representatives from Regional Development Australia, Illawarra Forum and the Asset Based Community Development Network who presented on the Illawarra Soup program. The March meeting was a highlight for the Interagency with a community training workshop run by the ‘Grants Guy’ (thegrantsguy.com.au). The workshop was successfully booked out and feedback from attendance was well regarded. 55 participants from various community organisations including Children services, Disability services, Multicultural services, Drug and Alcohol services and Rotary. A report was compiled from the feedback forms which revealed that the course was a success with attendees. It included comments about the course being very relevant, worthwhile attending, gaining valuable knowledge to be able to implement. The Shellharbour Connect website (www.shellharbourconnect.com.au) holds information for over 520 community groups, organisations and individuals that provide services in the Shellharbour Local Government Area (LGA). During the quarter, a total of 8,886 people visited the site with 72.1% of these being new visitors and 27.9% returning visitors. There were 20,404 page views and 22 new event/news items uploaded. We increased our social media presence by posting articles and events to Facebook on a regular basis. The Facebook page currently has 440 likes and we have 291 following us on Twitter. An ALNSW (Ability Links NSW) Community Advisory group was formed by Council to meet the needs of the Southern Region. ALNSW is a new way to support people with disability, their families and carers as part of the ongoing reforms of the disability services system in NSW. It provides people with a locally based first point of contact to support people to access supports and services in their local communities. The group will meet quarterly to inform and strengthen the Ability Links program. The group is seeking a

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local government representative for this Committee. Enquiries are being made with regards to the purpose and commitment required to support this group to help inform whether this is an appropriate role for Council. During this quarter, the Community Care Collective was attended and information was distributed about the CLUBS grants program, Seniors Week, International Women's Day and Harmony Day events. The Health and Well Being Expo at the University of Wollongong was also attended to promote the health and well-being initiatives of Council. Information regarding aged services continued to be distributed to the community via Shellharbour Connect and the Healthy Ageing Newsletter. During February a ClubGRANTS sub-committee was held to set local priorities for the 2016 Shellharbour ClubGRANTS round, a new Family and Community Services representative was appointed and a ClubGRANTS Local Committee Meeting was held. At this meeting, the 2016 Local Priorities were reviewed and adopted and items were discussed including the 2015 acquittals, the application process and the planning of the upcoming Public Information Session. The 2016 Shellharbour ClubGRANTS round officially opened for applications on the 7th March. Also during March, a Shellharbour ClubGRANTS public Information Session was held at the Shellharbour Club. Representatives from local clubs were in attendance along with approximately 30 members from the community and various organisations. The session outlined the application process, local priorities, eligibility criteria, types of previously successful applicants and acquittal processes. Fact Sheets were distributed to all attendees.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of Illawarra Interagency meetings facilitated by Council

1 1 2 2 5

Number of page views on Shellharbour Connect website 12,000 17,139 19,232 20,404 56,775

1.1.2.04 Promote opportunities for volunteering and promote posit ive benefits of volunteering

Libraries and Museum volunteers assisted with preparation and delivery of the Albion Park Library Open Day. The event included library on the lawn, community garden stalls, an animal farm, acrobatics, and youth activities. They also gave a tour to the 'Green Army' team who are currently based at Killalea State Park, as part of a Federal government initiative to increase skills and provide opportunities for unemployed youth in the community. The group tour focussed on Aboriginal history of the Shellharbour area, and Aboriginal and European history of Killalea State Park. Libraries and Museum volunteers assisted Library staff with the installation of heritage boards in the libraries and museum, to assist the 'Shellharbour Worth Fighting For' community information campaign and the restoration of a beautiful panorama framed photograph of 'The Farm' (Killalea State Park), dating from about 1910. The photograph is a snapshot of the area from over 100 years ago and features the Victorian farmhouse 'Seaview', dairy and outbuildings and dry stone walls. It is an important piece of our history and is now preserved for future generations. Volunteers continue to register donations on the museum database – Mosaic. One of our volunteers is working on compiling a history of all parks and reserves in the Shellharbour City area. This will be a useful document for the museum and Geographic Information Services staff who regularly inquire about local parks and who they are named after. Two volunteers from the Barrack Heights Community Garden were sponsored to attend the Grant Writing Workshop, which will help them with future funding applications. Two volunteers from the 2528 at Crew Park Project also attended the workshop.

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Discussions where held with volunteers from the Shell Cove Community Centre to facilitate their assistance at the grandparent’s picnic planned for May.

1.1.3.01 Implement a range of community safety initiatives in line with Council's Crime Prevention Plan, Community Safety Strategy and Graffiti Management Plan

Council has recently become Neighbour Day's newest Very Neighbourly Organisation (VNO). This status is a result of the work Council does with the ‘Good Neighbour’ program, that celebrates good neighbours and good relationships to promote and encourage social connection within local communities. There are 20 other organisations within Australia that are VNOs through Relationships Australia and Neighbour Day. Collaboration and consultation on the proposed Community Safety Strategy has continued with stakeholders invited to participate in an online survey or invited to participate in focus groups. Feedback and valuable ideas are being collected to inform the shape of the proposed strategy. It is endeavoured that the strategy will be complete next quarter. Three Community Safety Pop Up Meetings were held this quarter with NSW Police and residents that dealt with issues of illegal use of motorbikes and antisocial behaviour in reserves. Residents raised concerns over underage drinking, parties in the park and malicious damage in Drysdale Reserve and Shell Cove. The illegal motorbike flyer was distributed to over 100 residents. The 2016 Good Neighbour Awards was launched at the Shell Cove Christmas Party, marking the 14th year of the Good Neighbour Program. The Good Neighbour Program had a pop up Good Neighbour stall with giant traditional games such as connect four, giant Jenga, croquet and ring toss at community events. A movie under the stars event was held at Barrack Point with hundreds of people attending to watch the animated feature film ‘Home’. The Good Neighbour Awards nominations closed in March, with 36 nominations being received. The Good Neighbour Awards sponsors include Bunnings Shellharbour, Kmart Shellharbour, the Shellharbour Club, Central Hotel and Stockland Shellharbour.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of graffiti reports received and removed by Council 30 30 70 22 122

Number of Crime Prevention through Environmental Design (CPTED) assessments

9 24 16 14 54

1.1.4.02 Continue to improve the accessibility of the City for people with a disability

The Disability Access Committee met in March. A decision was made at the meeting to become a RECHARGE Scheme partner. The scheme aims to provide a more accessible environment for people who use electric mobility wheelchairs and scooters through the provision of designated power points for people to recharge their scooter or wheelchair battery throughout the City. Accessible parking spaces at Oak Flats and the City Centre were also discussed. Following a subcommittee meeting the provision of additional accessible car parking spaces at Oak Flats and the relocation of accessible car parking spaces in the lower car park at the City Centre from Burra Place to Remembrance Lane were recommended. Work has been completed on the provision of a bench seat at Ash Avenue, the provision of four accessible picnic tables at Shellharbour Village Foreshores and improving the signage and provision of MLAK (Master Locksmith Association Key) locks at relevant amenities blocks, The bus stop improvement schedule continues to be progressed with costing being sort on three additional bus stops.

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Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of actions from Disability Access Committee progressed

3 16 4 26 46

1.1.5.01 Develop, implement and support a range of arts and creative programs, ev ents and initiatives in line with Council's Art and Cultural Development Strategy

This quarter has seen the exciting commissioning of a new artwork for the Lake Illawarra Art Trail. Local Illawarra artists; Lizzie Buckmaster-Dove and Robert Nancarrow have been engaged to create the piece. Their work will be a collaboration with locals, to create a series of sculptural totem poles designed to engage people with the environment and history of Lake Illawarra. Titled Ghost Trees for Spirit of Place, the artwork will examine the lake and its surroundings as a site of archaeology, and the completed vertical structures will incorporate objects collected from the area. The artists presented designs to Council staff earlier this month and will be engaging the community in a series of “collection” walks in May. Community members will be asked participate in the collection of objects to be included in the artwork, or contribute objects from home which tell a story of the lake’s past. Development of the Shellharbour and Kiama Online Artists directory continued this quarter. Following input from local artists and potential directory users, the website is now titled ‘Weave: Creative Artists Directory’. Web designers have been engaged for the project and functionality requirements have been determined. A concept for branding and identity is currently under development. Artists listed on the website will be able to update and maintain their own profile to ensure that all details remain current. The project will also include initial training sessions with artists, as well as ongoing technical and administrative support by both Shellharbour and Kiama Councils. Council continues to build and strengthen collaborative relationships to implement a number of strategies outlined in the Arts and Cultural Development Strategy including arts and cultural events, artist support, information sharing and public art projects.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of cultural programs, events and initiatives implemented and/or supported

1 6 6 7 19

1.1.5.03 Provide strategic advice and develop plans to enhance cultural initiatives across the City

The process of reviewing the Public Art Policy was continued this quarter in line with available public art policy and planning toolkits and best practice examples from other local government areas. The review has begun expanding the current policy to include more specific objectives, expanding the principles and initiated discussions around the inclusion of a process and procedure toolkit. Advice and input was provided during a review of Council’s Development Control Plan, including a redefinition of the term ‘public art’ to include a broader range of artistic and creative activities which are presented or experienced in public space. A similar definition will be included in the reviewed Public Art Policy to ensure consistency across Council policies. Several public art projects were also progressed this quarter, including the entry feature for the Waterfront, Shell Cove and several artworks for the Shellharbour Civic Centre.

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1.1.6.01 Lead and motivate the Community Connections Group to deliver effective services and programs to meet the needs of the community

Community Connections have been working closely with the community to provide a wide range of services, activities and programs. The Managers group of Community Connections have reviewed and further refined the previous business plan to include a fresher direction. This included the purpose of Community Connections and what we do, our priorities and what strengths, challenges and opportunities we face. The management team looked at the risks and challenges of our direction. This proved to be a very beneficial approach getting the team on the one page. One of the highlights for Community Connections for the quarter was the Group Manager business plan meeting identifying Community Connections as a key group to collaborate with. The teams in Community Connections have been meeting on a regular basis with their respective Managers to discuss their tasks, budget situation and staffing issues. The outcomes of these meetings have been communicated back to the Group Manager at fortnightly catch ups. The establishment of the Shellharbour Youth Council is well under way with invitations being sent to local high schools, youth services and recruiting representatives from the general community. To date we have 10 young people interested in being part of this new initiative who will represent young people. Programs for young people continue to actively engage and involve them in innovative, creative and positive programs that promote young people as valued members of our community. A Councillors briefing was held to inform Councillors of the projected costs of acquiring land in Shell Cove for the library and community centre and to inform Councillors of costs associated with construction of a new branch library and community centre. Our Library and Museum service have had some great results. The staff have extensively promoted the design plans for the new Warilla Library and engaged with the Oak Flats community about the renovation work due to commence in April. Our Community Connection team coordinated a grants writing workshop for services with 55 individuals involved. The Libraries are still working in the provision of up to date material, electronic options and programs that engage and improve users connections with the libraries. The Museum was able to secure some great historical items and also conducted an open day that attracted over 500 to the area who participated in great activities. The new art work for the Art Trail has been decided after 12 entries were examined. This vibrant new art work is due to start in the next quarter. A meeting was held with an Associate Professor from the University of Wollongong and the public art consultant about public art for the Shellharbour Civic Centre. Following discussions around the process for the approval of public art concepts, this meeting was held to gain a professional, independent opinion and sign off for the concept of the artwork for the customer service area to proceed to design development. Our Shellharbour Kids Website continues to promote information and advice to its users. This has resulted in a higher than normal use of the site which is attributed to promotion of school activities in January. The Team have also worked hard in the quarter on paint the town REaD initiative, We Love Shellharbour event and giving information to the community about the proposed merge. Our Aboriginal Advisory Committee (AAC) have endorsed a feasibility study conducted by external consultants which will now be presented to Council. Giving the AAC an opportunity to present their views to Council on this important direction. Our continued involvement in Aboriginal services in the community endeavours to improve the relationship with our Aboriginal residents and provide services for our communities of young, old and children. A number of workshops, meetings and training days have given staff opportunities to improve their skills. Plus some staff have been given the opportunity work at higher positions including management and group management positions.

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1.1.6.03 Undertake and support initiatives that contribute to Shellharbour City being a child-friendly city

During this quarter a considerable effort was focused on ensuring that community groups and service providers were informed of the merger proposal and the process. Community groups were encouraged and supported to participate in Council’s Love Your City events at Reddall Reserve and Albion Park, KidsFest Shellharbour and 2528 @ Crew Park both participated. Council continues to support the newly incorporated 2528 Project, staff are included in committee meetings. The annual KidsFest Shellharbour program is currently underway, with Council working with event organisers to develop an exciting and engaging program of activities. A highlight on the program will be the Grandparent’s Picnic, at The Lightrail Museum this event will be hosted by Council. Planning is underway for this event. The number of ‘hits’ on Shellharbour Kids (http://shellharbourkids.com.au ) has had a spike this quarter, with visitors seeking information on School holiday activities. Content on the Shellharbour Kids website is regularly updated, Council's events were promoted on Shellharbour Kids website and Facebook. A number of community groups and organisations updated their details on the website.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of unique (non-reoccurring) visitors on the Shellharbour Kids website

2,800 5,961 3,766 7,508 17,235

1.1.6.05 Provide a flexible, innovative and responsive Community Transport service for people who are frail, aged, younger people with disabilities and their carers until 31 October 2015 and effectively transition service to an alternate provider

Council exited out the of provision of community transport services on 9 October 2015 with Wollongong City Council assuming responsibility for service delivery form 10 October 2015. Wollongong City Council continues to operate from an office at Centenary Hall and utilise the bus depot.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of groups provided services 50 115 0 0 115

Number of general passenger trips provided 2,000 238 0 0 238

Number of HACC designated passenger trips provided 4,880 5,368 0 0 5,368

Number of Community Transport designated passenger trips provided

1,800 1,004 0 0 1,004

Number of service requests not provided 1 5 0 0 5

1.1.6.06 Provide a flexible, innovative and respo nsive range of Community Care Services and programs for people who are frail, aged, younger people with disabilities and their carers until 31 October 2015 and effectively transition service to an alternate provider

The novation of State funded Community Care Support Programs (formerly known as Home and Community Care) was completed on 30 September 2015 with services transferred to The Disability Trust.

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The novation of Commonwealth Home Support Program services formally known as (HACC and National Respite for Carers Program) was completed on 31 October 2015 with services transferred to Warrigal. Warrigal and The Disability Trust continue to provide services from the Albion Park HACC Centre.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of hours in Home Respite - funded by HACC 0 269 0 0 269

Number of hours in Social Support - funded by HACC 0 1,920.5 0 0 1,920.5

Number of hours Centre Based Respite - funded by HACC 0 1,153.5 0 0 1,153.5

Number of hours Community Access - funded by National Respite Carers Program

0 2,567.75 0 0 2,567.75

1.1.6.08 Collaborate with government authorities and representatives from the community to improve young people’s access to public space, services and facilities relevant to their needs

During this quarter the Youth Services Team worked in partnership with the Illawarra Youth Art Association, Albion Youth & Community Care (APYCC), Warilla Neighbourhood Centre, Albion Park Library, Shellharbour City Stadium, the HARP Team (HIV/AIDS Related Program) and Council's Communications Team. These programs involved conducting recreational and art activities, and education to young people about sexual health. The Illawarra Arts Project have worked closely with the Youth Services Team to engage young people who live locally in opportunities for creative productions and performance. These partnerships help the Team provide a broader range of service for young people and develops relationships with other youth services in the local area. The Youth Services Team are also in the process of examining and evaluating the Blue Sky Planning outcomes2015, the Illawarra Forum Report 2014, the youth Services review consultation conducted by the Youth Services Team, results of the Youth Survey and transition survey and the Community Strategic Plan 2013 - 2023. Each member of the Team has taken on responsibility for a report and will develop and prioritise with the Manager. This will then act as a basis of what we do, why we do it, how we do it and with whom we work. It is envisaged that this will help the Youth Services Team provide a service that meets the needs of young people and youth services in the Shellharbour are.

1.1.6.09 Facilitate and/or participate in a range of yo uth networks and training to ensure information for young people is accurate and reliable and service delivery is responsive to changes

In this quarter a Shellharbour Youth Network meeting was conducted at Warilla High School. This is a meeting that is held six times a year and convened by council. It brings together government and non-government services that work with young people in the Shellharbour area. At the February meeting 20 people were in attendance. Council's Community Safety Officer conducted a presentation and consultation with those members present regarding safety in the community and its impact on young people. In addition, Mayor Cr. Marianne Saliba gave a briefing of the impact of the proposed merger between Wollongong and Shellharbour Councils this was in response to questions that had been raised with the Youth Services team from other youth services and young people. This meeting creates a great opportunity for the Youth Services Team to update on information from those services present and be able to promote our services to them. One service from health was able to provide the Team with valuable information and contacts to engage with the local Private schools. This has assisted with the Youth Services Team making contact with the private schools and created opportunities for engagement with those young people who attend those schools.

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In addition, a group of youth services from the Illawarra has started organising a seminar for May which will address some of the issues of youth workers and services dealing with management of stress and burnout in the sector. This training and networking opportunity will be made available to youth services form Wollongong, Shellharbour, Kiama and Shoalhaven Councils.

1.1.6.10 Implement and support a range of community initiatives that meet the needs of the culturally and linguistically diverse

Harmony Day was celebrated during this quarter, this year Council planned to hosted two activities, unfortunately due to wet weather the outdoor event was cancelled. A highlight was the success of a photo booth in Stocklands, this activity was hosted by Council in partnership with Stockland. Staff focussed on the message of inclusiveness, respect and a sense of belonging for everyone. This activity

was well supported by the community, participants embraced the theme of cultural diversity and

utilised the chalk board props to capture personalised messages. Council staff have facilitated and participated in various meetings with organisations and key stakeholders in the community in order to enhance the regions services for multicultural members of the community. Some of these have included IMS (Illawarra Multicultural Services), IRIF (Illawarra Refugee Issues Forum), MCCI (Multicultural Communities Council of Illawarra), a Syrian Refugees Forum at the State Library Sydney and meetings with Stockland Shellharbour and LeEvents. One of the programs worked on during this quarter included discussions with Stockland Shellharbour and Multicultural Communities Council of Illawarra to investigate options surrounding youth unemployment, the possibility of a common 'Prayer Room' in the shopping centre and multicultural training for Stockland Centre staff. Another program included the planning of a public screening of a refugee documentary later in the year.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of culturally and linguistically diverse programs started, completed and/or supported by Council

1 2 1 2 5

1.1.7.01 Provide a choice of relevant and responsive library locations, hours and collections to meet the needs of the community

Young people’s programs were the focus for this quarter and well attended across the network of branches. Weekly literacy programs such as Lapsit and Kidstime were well received as these popular programs commenced for the new calendar year. These programs not only support the young people in attendance, but also creates opportunities for parents and carers to connect and engage with each other. Regular adult educational and social programs in the libraries included book groups in all branches, family history sessions, scrabble nights, and crochet and knitting groups. As a result of the high demand and popularity of the family history sessions, library volunteers have offered more of their time to provide more one-on-one assistance to those undertaking their family history research. Library staff continued to maintain careful selection and collection development standards to ensure that we continue to deliver high quality recreational and information collections relevant to our communities. This process is done in accordance with the Collections & Access Strategy, to ensure we maintain a high level of standard when it comes to library collections. Council’s libraries currently offer their eBook and eAudio service as a part of a joint collaborative project with the South East Zone libraries, which incorporates several neighbouring Council libraries.

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To further our collaborative approach to eLibrary services, the zone has currently agreed to a corporative approach to Zinio eMagazines. While Shellharbour City Libraries already offers this service, a collaborative approach will indeed expand the diversity and range of material available through the platform across all the zone libraries – giving customers more choice! During the Libraries & Museum Strategy 2024 consultation, Albion Park Library users asked for the open hours to be reviewed. As a result of further engagement, the library commenced new operating hours from 4 January 2016 for a six month trial. Usage and effectiveness will be analysed after the trial period. The new Warilla Library concept design were on exhibition online and in our libraries in February and March 2016. The proposed design, based on extensive community consultation, has a relaxed family friendly feel, and provides spaces for peace and quiet, activities and classes, indoor play, and content creation through clever technology. The library design is light, breezy and ambient, and uses natural materials that echo tones of the sand, sea and sky. A fact sheet is available to answer questions our customers may have regarding the new library and plans are available to view on the library website http://libraries.shellharbour.nsw.gov.au/page/warilla-library. Shellharbour City Libraries & Museum Strategy 2024 also identified the need to refurbish Oak Flats Library to improve access and flexibility, and help provide spaces for activities, programs and technology. The renovation and modernisation of the outdated, and largely inaccessible branch is an integral part of this strategy. Stage one renovation works have been planned for April/May 2016 and include raising the central sunken floor area of the library to improve access to, and functionality of the space.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of people visiting libraries 40,000 46,090 39,739 45,129 130,958

Number of hits on the library web-pages 25,000 38,469 33,685 35,465 107,619

Number of registered members as a percentage of the total population

35 37.34 37.9 38.26 37.83

1.1.7.03 Provide the community with access to clever technology through our libraries

Staff continued to provide refresher training for digital services, to ensure awareness of online content, eBooks, eMagazines, eMusic and databases to better assist customers. A number of tech-help sessions have been planned as a part of the Seniors Festival program. Since the implementation of the new library website, there has been a 74% increase in activity and use of the libraries and museum website. Customer feedback about the site has been very supportive. Visitors are finding it easier to find information about new releases, library events and eLibrary services. One customer mentioned that the website reminded them of an online store, which was part of our strategy to give the website a more retail shop-front feel - showcasing what’s new at Council's libraries. We are currently developing an online membership model which will allow members of the community to join as a full library member or digital member only.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of technology programs and activities 50 49 43 44 136

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1.2.1.01 Implement and support a range of healthy ageing initiatives in line with Council's Healthy Ageing Strategy

During the quarter, a range of community wellbeing programs and strategies supporting healthy ageing have been implemented. The 'big ideas' action plan from Shellharbour's Healthy Ageing Strategy was reviewed and work is currently underway in planning for which short, medium and long term goals are achievable during 2016. The autumn edition of the Healthy Ageing newsletter was provided to over 250 Shellharbour residents. Council has partnered with Healthy Cities Illawarra in order to facilitate a six-week Social Inclusion program aimed at bringing over 50's together to cook and share a meal, ‘Cook, Chill Chat’. This program is due to be launched in April. Following the six-week program, the group will be supported by Council to continue to meet socially through a range of activities. Work is underway to look at ways to involve other departments such as the nursery, environment, waste and the libraries in the continuation of the program. Work continues on the extension of the outdoor exercise equipment trail with new equipment planned at Strong Reserve, Warilla. The provision of the outdoor equipment will provide an opportunity to improve physical activity and social interactions in the area. A tender process has been undertaken, with a contract now being awarded to supply and install an outdoor exercise equipment station at the site which includes a seated leg press (lower body), chest press (upper body), cross-trainer (cardio) and stretch station. The project is funded from Section 94 Developer Contributions and is due to be delivered by June 2016. Once installed a launch and ‘come and try’ program will be implemented which is currently being worked on by Community Connections staff. The Healthy Ageing Strategy and bucket list were promoted at the International Women’s Day and University of Wollongong Health and Wellbeing Expo events throughout March with good response and community engagement.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of healthy ageing initiatives implemented, underway and/or supported by Council

1 9 6 8 23

2.3.1.04 Plan and implement initiatives to encourage community use of and ownership of the Shellharbour Civic Centre

Several art works are being developed for the Civic Centre. The Youth Art component invited students from local high schools to have input into ideas that they thought could represent young people. Their ideas were innovative and creative, and some of their ideas will be displayed in the annual Youth Week Art exhibition. Workshops with school students on this project will continue throughout the year. In addition, initial meetings have been conducted with the Illawarra Youth Arts Project to see if their members would like to be involved in the process of the youth art component for the Civic Centre. An excursion is planned for later in the year to look at existing civic art works in other local government areas.

2.3.4.07 Provide advice and advocate on the changing needs and demographics of the Shellharbour community

Council continues to provide social impact comments on relevant development applications, plans, strategies, policies and designs to ensure healthy outcomes for the community through effective urban planning and design.

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This quarter, comments were provided for the first review of the Shellharbour Development Control Plan 2013 in relation to the Social Impact Assessment chapter and related appendices. Comments were prepared in line with the draft Social Impact Assessment Policy. The Community Planning Officer also reviewed social impact comments on the Shellharbour Tourist Park – Camp Kitchen and Warilla Bowls and Recreation Club Outdoor Gaming Area were revised and addressed as per requests made from the City Development – Planning team. Council has undertaken a revision on the Social Impact Assessment Policy. Significant stakeholder engagement was undertaken on the revised policy and data sources; an infographic was developed that highlighted key points of the policy. Feedback from this engagement will be incorporated in a council report on the proposed policy and presented at the 26 April Council meeting. Council continued to produce demographic snapshot reports for various stakeholders on request. In January this included providing population and housing statistics on households in the Shellharbour Local Government Area to Waste Services as well as providing information and updated statistics on general demographics in the Shellharbour Local Government Area in preparation for the proposed merger submission. In February, demographic snapshots included providing population and economy statistics on residents in the Shellharbour Local Government Area to Finance in relation to a review of comparative data from The Office of Local Government. Council also assisted in providing information and statistics to the Health Promotion Service in relation to a proposed program for the Shellharbour Local Government Area. In March, demographics were provided on population and economy statistics for residents in the Shellharbour Local Government Area to the Economic Development Manager for inclusion in a National Stronger Regions Fund application. Council also assisted in providing information and statistics to the Integrated Planning and Reporting team for inclusion in the updated Operational Plan. Assistance was also provided to a university student in souring statistics on the local area for assessment purposes.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Social impact comments made on relevant Development Applications, plans, policies or strategies completed within the required timeframes

100 100 100 0 200

Number of demographics enquiries received and responded 3 8 7 7 22

2.3.5.01 Deliver programs and services that preserve, share and celebrate the city's heritage and community memory

Tongarra Museum acquired some fantastic new donations which will feature in the new City Museum! Generous donations from our community including artefacts, information and shared memories contribute greatly to the museum which aims to keep the history of Shellharbour alive for future generations. One item, a 130-year-old walnut and glass display case, houses a diorama of 22 taxidermy birds from the Illawarra, dating from the 19th century. The birds were initially owned by local pioneer John Brown of Brownsville, and have been in the family ever since. The birds will be spruced up before being placed on exhibition in 2017, and are a great and rare sample of the birds living in our region at that time. The second item, a panorama photograph of 'Seaview' farm (Killalea State Park), dates from the 1920's. The landscape scene is a wonderful record of the area at that time, featuring the old Victorian farm house, dairy buildings, beach, lagoon and dry stone walls. Our volunteers did a marvellous job, as always, this quarter. Our digitisation program continues with four volunteer staff dedicated to the task of cataloguing the entire collection on our software management system Mosaic. Once complete, the database will be available online and prove a valuable community resource. Volunteers also restored the Museum's Wawn's Medical Kit which was in poor condition.

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The medical kit, complete with entire contents, dates from the 1930's, and will be on exhibition in the City Museum from 2017. The Museum opened its doors for the Albion Park Open Day which promoted Council services to the local community and activated the precinct space. This collaborative event was a great success, attracting an estimated 500 people to the area who participated in museum, library and community activities. Museum staff and volunteers helped celebrate Shellharbour's women in sport during International Women's Day events held at the Lake Illawarra Police Citizens Youth Club (PCYC) in May. Historic photographs of local sports women through the ages were featured as part of the event on social media and are now on permanent exhibition at the Lake Illawarra PCYC.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of people visiting the museum 300 578 416 590 1,584

Number of hits on Museum website and social media sites. 3,000 7,301 7,756 7,975 23,032

Number of heritage information requests completed for customers

10 56 63 60 179

Number of programs delivered 2 5 1 3 9

2.3.5.02 Ensure Aboriginal culture and heritage is considered in current and future land use planning and management

In this quarter Council's Aboriginal Community Liaison Officer (ACLO) received 10 requests to provide comments on Aboriginal Culture & Heritage. These requests ranged from Development Application(DA) referrals to the provision of advice on community engagement with the local Aboriginal community during the exhibition period on the draft Development Control Plan (DCP) which includes an Aboriginal Culture & Heritage Chapter. Shellharbour City Council's Aboriginal Advisory Committee are regularly updated on the current Council application for an Aboriginal Heritage Impact Permit (AHIP) currently being undertaken by the Office of Environment Heritage (OEH) for the proposed site for the new Warilla Library in particular the community consultation process with registered Aboriginal stakeholders. A draft of the Aboriginal Archaeological Assessment prepared by Austral Archaeology was provided to Council’s ACLO in March 2016 however, no recommendations can be made until the final Assessment has been completed. The ACLO is currently awaiting responses from the local Aboriginal registered stakeholders who participated in the consultation process regarding the AHIP before making comments.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of Aboriginal and Cultural heritage comments made on Development Applications, plans and policies completed within required timeframes

100 12 13 10 35

4.1.3.01 Implement a range of community events that celebrate and support the local Aboriginal community

This year Council is the host for the Regional NAIDOC Awards in July. Planning for this event is a collaborative partnership between; Shoalhaven, Kiama, Wollongong and Shellharbour City Councils. This event will bring together over 500 local community members, the awards dinner celebrates the achievement and contributions of Aboriginal people in the local community.

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As the host Council of this event significant planning is underway. Marketing material has been designed in line with the nation theme ‘Songlines’ (http://www.naidoc.org.au/ ), nomination forms and sponsorship packages have been designed and developed for distribution. Venue options for the Shellharbour area were limited with the only venue that could accommodate the numbers (The Shellharbour Club) not available due to renovations, this has meant that the venue is located in Wollongong at the Win Entertainment Centre. Headline act; Archie Roach has been booked to perform alongside local cultural performers and musicians. Planning for the annual Reconciliation School Walk is underway with invitations sent to all local schools. This annual event continues to grow with nearly 100 students participating in a range of cultural activities including; performances by the Illawarra Flame Trees and cultural activities (storytelling and Aboriginal art workshops) conducted by Koomurri Productions and a major component of the Event is the exchange of Flags between local students to Elders, Civic Leaders, Aboriginal Advisory Committee members and community representatives in the spirit of Reconciliation. This year Reconciliation Event will also host an activity with Elders and the Koori Women’s Group to design and make the table centrepieces for the NAIDOC Awards dinner at the WIN Entertainment Centre.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of Aboriginal initiatives and events implemented, under way and/or supported by Council

1 0 0 0 0

4.1.3.02 Continue to facilitate, support and participate in a range of networks and initiatives that target Aboriginal services and community

Shellharbour City Council's Aboriginal Advisory Committee (AAC) continues to encourage the recognition of Aboriginal history, culture and people. One meeting was held in this quarter. The meeting discussed the merger proposal, Bass Point Feasibility Study, update on Warilla Library Aboriginal Heritage Impact Permit and Naidoc Awards Dinner. Council continues to support Shellharbour Aboriginal Community Youth Association (SACYA significant outcomes have been achieved within six months with 429 Aboriginal and Torres Strait Islander youth participating in SACYA’s Breakfast Program, Homework Centre, Alternate Learning Centre, In-School support, E-Learning. School Holiday Program and the One Mob program for parents. Some of the success of the program is reportedly the increased primary school attendance. Council’s ACLO was invited to attend and to speak at the presentation of a 12,000 strong Petition from the Illawarra Branch of the Reclaim the Night campaign on strategies to prevent violence against women to Federal Parliament. The presentation of the Petition was hosted by Sharon Bird Federal Member for Cunningham and Stephen Jones Federal Member for Throsby at Parliament House Canberra to the Parliamentarians against Family Violence Friendship Group and its co-convenors Tim Watts Federal Parliament for Gellibrand, Victoria and Ken Wyatt Federal Member for Hasluck Western Australia. Ms Sharon Bird presented the Petition to Parliament and the document has now been referred to the Standing Committee on Petitions for consideration.

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City Development

1.1.3.06 Promote and maintain prescribed building standards within the city

Council's inspections have increased in this reporting quarter and are on track with forecast inspection numbers. Council's Fire Safety Program is on track with respect to inspections conducted and the percentage of Fire Statements submitted has improved from the previous report period and is on track.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of building inspections conducted 250 228 188 243 659

Percentage of Annual Fire Safety Statements from Council's register submitted

75% 75% 52% 78% 68.33%

1.1.3.08 Promote and maintai n healthy standards for skin and hairdressing premises

The Compliance team has started the 2016 inspections and have completed approximately 60% of inspections. The remaining premises will be inspected by end of May.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Ensure all premises are inspected during the year to ensure compliance with the Public Health Act

50 0 0 70 70

2.1.1.04 Develop Environmental Management Plans for Wetlands

An annual review of the Myimbarr Wetland Plan of Management was completed this quarter. The planned review of Flinders Wetland has been rescheduled to 2016/17


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of Wetland Management Plans developed/reviewed

2 2 1 1 4

2.2.3.01 Monitor and implement actions to reduce water consumption

Financial year to date water consumption represents 79.77% of the corrected 2014/2015 consumption total. Please note consumption figures may not be truly representative of financial year consumption due to the varied billing cycles of the various accounts. Total consumption will be corrected once all invoices for the 2015/2016 financial year have been received. Water usage was recorded at significantly higher levels compared to the same quarter the previous year at Lamerton House, Croom Regional Sporting Complex, Myimbarr Community Park and Keith Bond Oval. This increased usage may in part be attributed to unusually hot and dry weather conditions experienced this quarter, as well as high visitation levels. However, further investigations are currently being undertaken to ensure there are no ongoing issues.

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The smartmeter installations at Oak Flats Pool and Shell Cove Links Golf Course were repaired in February and therefore monthly data analysis at these sites was not able to be completed for the first two months of this quarter. Monitoring of water usage at Oak Flats Pool identified a leak in the circulating systems in both pools. Staff will resolve this issue during the annual maintenance period.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Water use (total kilolitres consumed) 18,750 6,273 21,499 29,111 56,883

Percentage reduction (compared to last year's results) in the amount of kilolitres consumed

1.25% -12% -7% -20% -20%

2.2.3.02 Monitor and implement actions to reduce energy consumption

Comprehensive energy use data for all Council sites is still unable to be accessed. However, a system has been developed which allows for raw electronic data to be downloaded directly into a spreadsheet and analysed for small tariff sites (Power Direct Accounts) for this financial year. A total of 3,769 gigajoules of power has been used across Council's small tariff sites this financial year to date. Discussions are continuing with other energy suppliers to obtain raw electronic data on Council's large tariff sites.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Tonnes of carbon dioxide equivalent (tCO2è) generated per year

814 0 0 0 0

Energy used (total Gigajoules consumed) 3,525 0 0 0 0

Percentage reduction (compared to last year's results) in the amount of gigajoules consumed

0.5% 0% 0% 0% 0%

Percentage reduction (compared to last year's result) in the amount of carbon dioxide equivalent generated

0.25% 0% 0% 0% 0%

2.3.4.01 Assess and determine applications within legislative requirements and timeframes

The City Development Group went live on 1 July 2015 with the new applications processing platform called TechnologyOne. As is not unusual with the implementation of such systems "Go-live" has exposed a number of key configuration issues that require staff innovation to work around. Steady progress on this process improvement initiative continues, including staff training in December to better manage "stop the clock" days in the new system. A total of 75 development applications as well as 18 applications to modify were determined in the third quarter. Application processing time frames have been affected by the resourcing and systems implications, and staff continue to absorb significant workload pressure to maintain reasonable delivery of timely outcomes, with the average time taken on applications improving by 47% in the quarter from 87 days in Quarter 1, 58 days in Quarter 2, 46 days in Quarter 3 regarding the 30-day target.

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Of the 93 applications determined, 60 (65%) of them were determined within legislative time frames (40 days). The average time for processing all development applications was 46 days.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of development applications assessed and determined within Legislative timeframes

75% 60% 60% 60% 60%

Average time taken for all development applications to be less than 30 days

30 87 58 46 63.67

1.1.3.04 Implement the requirements of the Companion Animals Act

Regulation performed tasks within their area of control with an emphasis on patrols at areas of concern reported by the public. Animals re-homed remains positive with 50% returned to their owners. This is considered high from a regional perspective for other local Councils. All efforts are made to return animals to their owners prior to impounding with the RSPCA. City Regulation Officers provide educational advice when returning dogs to their owners whenever possible.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of identified animals reunited to their owner 60% 46% 53% 50% 49.67%

Total number of Companion Animal related complaints 240 183 213 280 676

Increase in the number of animals microchipped 0 0 31 0 31

Number of Companion Animals seized 90 59 62 65 186

1.1.3.05 Promote and maintain prescribed food standards within the city

An appropriate work flow method was established that enabled the recording of inspections for this quarter. It is difficult to extract inspection numbers and details from the Technology One Property and Rating software.

Key Performance Indicator Quarterly

Target Q1

Result Q2

Result Q3

Result Year To Date

Number of confirmed cases of food borne illness or food poisoning originating from the Shellharbour area

0 0 0 0 0

Percentage of retail food premises considered satisfactory after initial inspection. (no re inspection required)

90% 96.5% 100% 96% 97.5%

1.1.3.07 Ensure that local swimming pools comply with prescribed health and safety guidelines

Forty-five swimming pool fencing inspections were undertaken for the report period, of which, 11 compliance certificates were issued. The NSW Government sale or lease provisions is due to commence in the next reporting quarter and it is

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envisaged that there will be a significant increase in compliance certificates issued.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of swimming pool fences inspected 25 23 21 45 89

Percentage of pools inspected that received a compliance certificate

20% 35% 29% 25% 25%

1.1.3.09 Investigate all complaints received by Customer Service relating to breaches of relevant legislation

Compliance and Regulation staff have attended to complaints within the resource limits available. Responses to community concerns are being addressed in a timelier manner due to the addition of a new team member within the Compliance section. Positive progress in addressing more complex concerns is also contributing to the improved response times. Other complaints have been able to be resolved reasonably quickly which has contributed to the improved completion rate as well.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of complaints investigated to completion 60% 41% 65% 89% 65%

1.1.3.10 Identify, educate and respond to incidents of illegal dumping

All identified illegal dumping incidents have been investigated and reported to the Environmental Protection Agency. Illegal dumping numbers are up on last quarter due to proactive reporting.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of complaints investigated to completion 100% 100% 100% 100% 100%

Percentage of complaints registered on the Environmental Protection Authority (EPA) website

100% 100% 100% 100% 100%

1.1.3.11 Regularly inspect and monitor parking around school zones, accessible parking and identified hot spots

No School safety patrols in January due to schools being on holidays. Certain areas are demonstrating high numbers of infringements issued. These areas, along with parking hot spots, are being given a higher priority for the safety of children and motorists.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of inspections undertaken 450 465 450 440 1,355

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2.1.1.01 Develop, implement and measure environmental management programs for waterway health

Water quality sampling was conducted for 10 sites across the Local Government Area (LGA) on 9 February 2016. The sampling sites are located along major waterways and water bodies including Elliott Lake, Bensons Creek, Tongarra Creek, Flinders, Horsley Creek, Oakey Creek and Macquarie Rivulet. Water quality results have been received and assessed against the Australian and New Zealand Guidelines for Fresh and Marine Water Quality (ANZECC). Results indicate a 28%, 100% and 80% compliance for nutrients, bacteriological and physiochemical parameters respectively. The majority of water quality results are typical of baseline data trends for the individual sampling sites. However, the lower compliance for nutrients is a result of nutrient levels being slightly elevated for some sites against the ANZECC guidelines. Nutrient and chlorophyll a concentrations are often higher after rainfall and during the summer months when water temperatures and light levels are higher. Substantial rain fell across the Illawarra prior to the water sampling event which would have influenced nutrient levels within the waterways sampled. Two environmental assessments were finalised during the reporting. The business assessed required no remedial works to improve their environmental performance.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of assessments of commercial and industrial premises

2 0 0 2 2

Percentage of compliance with national water quality guideline criteria - bacteriological

80% 100% 100% 100% 66.67%

Percentage of compliance with national water quality guideline criteria - nutrient

80% 60% 60% 32% 29.33%

Percentage of compliance with national water quality guideline criteria - physiochemical

80% 83% 83% 72.5% 54.33%

Number of bacteriological samples taken 10 10 10 10 30

Number of nutrient samples taken 10 10 10 10 30

Number of physiochemical samples taken 10 10 10 10 30

2.1.1.02 Monitor and report on the health of our city’s beaches

The recreational suitability of the City's swimming locations has been assessed using NSW Beachwatch (bacteriological) data. The data received for Shellharbour North Beach, Warilla Beach and the Lake Illawarra Entrance lagoon has been assessed against the NSW Beachwatch program star rating system. All three swimming locations have been assessed as has having a 4 star rating. This rating is the highest rating and indicates that a swimming location is suitable for swimming.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Warilla Beach - Beachwatch Star Rating 4 4 4 4 4

Shellharbour Beach - Beachwatch Star Rating 4 4 4 4 4

Lake Illawarra Swimming Area - Beachwatch Star Rating 3 4 4 4 4

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Number of inspections across all locations 36 45 45 39 129

2.1.2.01 Develop Environmental Managemen t Plans and Programs aimed at protecting and managing natural areas across the city

Annual reviews were completed this quarter for the Stoney Range Ecological and Bushfire Plan of Management and the Dune Management Strategy. A survey was conducted at Windang Island to locate the threatened Rice Flower, Pimelea spicata prior to commencement of bush regeneration works. The species was unable to be detected and it is likely no longer present due to significant grass growth since the original sighting in 1993. Follow up surveys will be conducted periodically.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of Ecological Management Plans developed/reviewed

1 5 3 1 9

2.1.3.01 Facilitate the Environmenta l Leadership Program across the organisation and city

Environmental Leadership continues to be rolled out across Council. The implementation of a number of Environmental Leadership tasks progressed during the quarter. These tasks included the promotion and education of staff about carpooling opportunities, drafting an educational poster about ways for staff to run more sustainable events and the continued distribution of sustainable serving ware for Council events including the Australia Day Breakfast where more than 3,000 compostable plates, cups, bowls and cutlery were used. Environment Officers promoted participation in Earth Hour and attended the Library Open Day event in January at Albion Park to provide information on environmental issues and sustainability and promote the Sustainable Shellharbour newsletter. Assistance was also provided at community events including a rock platform walk at Bass Point and a Butterfly House event at Warilla Library. Planning continues for future staff workshops, investigation of a sustainable food program and development of a short film competition for staff to promote green work tips.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of active Environmental Leadership Tasks commenced and progressing

75% 100% 100% 100% 100%

Percentage of active Environmental Leadership Tasks completed within the agreed timeframe

75% 100% 100% 100% 100%

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2.1.4.02 Provide support and education to assist community groups t o care for our natural environment

Progress reports for all five projects funded by Council’s Small Environmental Project Fund were all received prior to the 30 March 2016 deadline. Site visits have also been conducted of three of the schools to view their current progress. Pelican Preschool has completed all works, submitted their final report and the remaining 40% of funding has been provided. Projects being completed at Warilla Baptist Preschool, Peterborough School and Shellharbour Kiama Family Day Centre are all progressing well. The second instalment of 20% of funding has been released to assist with the completion of the final stages of their projects. Warilla Child Care Centre is still awaiting approval for the installation of a water tank as part of their Small Environmental Project. When this approval is received an additional 20% of funding will be released. Council’s support and funding assistance of these projects has been promoted in school newsletters and on social media sites.

CLEAN UP AUSTRLAIA DAY Clean Up Australia Day was held on Sunday 6 March across the City, with a total of 12 clean-up sites registered. Council provided waste collection services at the event and rewarded participants for their efforts through a lucky dip prize draw A total of 1.5 tonnes of waste was collected on the day. In addition to this Council held a staff Clean Up Australia Day activity on 18 February at Harrison Park. A total of 22 staff collected 170kg of rubbish, including 20 large bags of rubbish and recycling, three trolleys and an array of other hard rubbish items. Council received positive media coverage of the event, including a front page feature in the Advertiser/Lake Times and coverage in the Illawarra Mercury.

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2.2.1.02 Develop and implement community sustainability and climate change education programs

Sustainable Shellharbour is a vibrant sustainability education program that actively engages local residents in achieving the Shellharbour City Community Strategic Plan 2013 – 2023 environment objective 'Practices sustainable living.' A notable milestone for the Sustainable Shellharbour program was achieved this quarter with the distribution of the 50th edition of the Sustainable Shellharbour e-newsletter. The monthly e-newsletter has grown to a subscription list of over 800 people since commencing in 2011. Positive feedback received about the e-newsletter milestone included "I really like your newsletter, and have enjoyed some of the activities you have had on too. Great work!" and "Congratulations to all on a job well done – I’ve done some of your activities and found them to be excellent – keep up the good work." A guided rock pool ramble at Bass Point was also held this quarter, with all surveyed participants commenting that the walk increased their knowledge and appreciation of the local environment. Positive feedback included "Very informative and fun! Made us have a greater respect for the Shellharbour beaches and rock pools." The Environment team also had information stalls at Council's Australia Day Breakfast by the Lake celebrations and the Albion Park library open day, engaging with over 200 people about the Sustainable Shellharbour program.

Key Performance Indicator

Quart erly Target

Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of programs developed 3 4 10 6 20

VISIT THE BUTTERFLY HOUSE

A highlight of the Sustainable Shellharbour program this quarter was the 'Visit the Butterfly House' activity held at Warilla Library on 14 January and the Shellharbour Village Exhibition Space on 15 January. This activity was held in partnership with Shellharbour City Libraries, and engaged 214 children and families in a fun way to learn about butterflies and be inspired to care for the natural environment. Positive feedback was received from participants, with comments such as "The kids loved it! A bit of hands on education has given them a greater appreciation of the insect world." The event also received extremely positive media coverage, with six newspaper features.

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2.2.2.02 Implement the Regional and Shellharbour Littering & Illegal Dumping Strategies

The review of the Littering and Illegal Dumping Strategy is carried out when required to reflect the Southern Council's Regional Illegal Dumping Program strategy. Southern Councils Group have indicated that the strategy will not be reviewed at this time and therefore no modification is required.

2.3.2.05 The appropriate implementation of climate change adaptation and mitigation initiatives

A review of the NSW Government Stage 2 Coastal Management reforms was completed and comments submitted to the Office of Environment and Heritage for consideration. A review of the key reform documents including a draft Coastal Management Bill, an Explanation of Intended Effect for the proposed new Coastal Management State Environmental Planning Policy (SEPP), and a draft coastal management manual enabled Council to assess how the reforms will influence coastal management for the City. The tendering process for the Lake Illawarra Coastal Zone Management Plan project has progressed. It is anticipated that the successful tenderer will be appointed during April and commence work on the project in early May.

2.3.4.04 Provide development related advice including formal pre -lodgement meetings

The City Development Group experienced a 130% spike in pre-lodgement meetings in the third quarter above the target of 10 meetings per quarter. There were 23 formal pre-lodgement meetings on a wide range of development proposals. This is a 65% increase from the 14 meetings held in the first quarter, and a slight decrease from the 25 meetings held in the second quarter. All indications are that the development industry remains buoyant, with development interest remaining high.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of pre-lodgement meetings 10 14 25 23 62

2.3.4.05 Assist with policy and procedural reviews with Council, including compliance with Quality Management System

Procedural review of Swimming Pool Inspections was completed this quarter. Procedural reviews for Fire Safety, Food Shops, Skin Penetration and Building Certificates relating to the Property & Rating software roll out was also undertaken. There was a focus on reviewing and updating of numerous Customer Request Management categories, events and processes. Development application process continued to be refined.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of policy and procedural reviews undertaken 5 3 4 5 12

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2.3.4.08 Provide effective leadership and management to the City Development Team

City Development Group have maintained a strong focus on customer service outcomes associated with the delivery of all functions with the exception of Development Applications. A very strong development industry sector coupled with resource issues has created a backlog of applications. This backlog will be addressed in the immediate future through the recruiting of relevant staff. Further refinement in the Property & Rating system continues and the benefits are slowly presenting themselves in function efficiencies. Maintenance of one on one weekly meetings with the Team Leaders to deal with operational matters and Team Leader Group meetings to discuss issues emanating from Manex meetings and Director City Outcomes directions, provide a platform of awareness of issues relevant to maintaining effective management for the Group

4.2.6.02 Develop and review Bushfire Management Plans for public reserves to reduce fire risk to the natural and built environment

An annual review of the Stoney Range Plan of Management was undertaken as scheduled this quarter. The review of the draft Bushfire Prone Land Mapping is continuing. Work includes cross checking areas of grassland to include as Vegetation Category 3 as per the NSW Rural Fire Service revised Bushfire Prone Land Mapping Guidelines.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of Bushfire Management Plans developed/reviewed

0 5 4 1 10

City Strategy

2.3.2.01 Implement, monitor and review the Shellharbour Local Environmental Plan

Shellharbour Local Environmental Plan (LEP) 2013 is the Council document that contains the zoning and planning controls that sets out where and how development such as single houses, townhouses, shops and industrial buildings can be built. A Planning Proposal is the document that is prepared to review the zones and planning controls in Shellharbour LEP 2013. The process required to be undertaken when a Planning Proposal is prepared and assessed are outlined by the NSW State Government’s Department of Planning & Environment (DPE) and there are a number of steps in that process that require Council approval. The preparation and assessment of a number of Planning Proposals occurred this quarter. Two Planning Proposals have been placed on public exhibition. One is to consider changing our LEP to permit short term rental accommodation (holiday rentals) in our Council area and the other is to consider rezoning Rural land to Residential to permit about 100 residential lots at Tullimbar. The DPE have issued approval to place another two Planning Proposals on public exhibition. One is to consider allowing a residential flat building at 22 Queen Street Lake Illawarra. This Proposal has not been exhibited as the applicant needs to provide a contamination report for public exhibition. The other is to consider changing the zoning of some of the land at Albion Park Bowling Club from Private Open Space to Residential to allow residential development. This Proposal will be exhibited in the next quarter.

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One Planning Proposal has been finalised by the DPE. This Planning Proposal was for land between the Princes Highway and the East-West Link Road, Albion Park Rail. The lands were rezoned land from SP2 Infrastructure (Classified Road) to IN2 Light Industry, relevant planning controls such as floor space ratio, building height and minimum lot size were introduced and the road reservation that applied to the lands was also removed. This rezoning has made available about 1.15 hectares of Industrial zoned land to our community. Another two Planning Proposals have been adopted by Council to prepare but have not progressed any further this quarter. One is to consider whether Industrial zoning is appropriate for land in Croome Lane, Albion Park Rail. Discussions continued with other Council officers regarding the timing of the Illawarra Regional Airport Master Plan and the Albion Pass By-pass plans. The Proposal will be affected by the proposed Albion Park Rail By-pass including the resulting effects of flood mitigation works by the Roads & Maritime Services. A meeting was held with the applicant to discuss the delays that this Proposal can’t progress until the issues are resolved. The applicant has verbally agreed that the delays are required. The other Proposal that hasn’t progressed is to consider rezoning Rural land to Residential at Tullimbar to permit about 45 lots. This Proposal hasn’t progressed as investigations are underway to see if intersection and road works are required as part of this Proposal. Until this information is provided and these issues resolved, the Proposal won’t be referred to the DPE for approval to place it on public exhibition. When Shellharbour LEP 2013 was introduced in April 2013 there was about 1060 hectares of deferred lands. These lands were deferred for a number of reasons and Planning Proposals have been prepared and adopted by Council to bring those lands into Shellharbour LEP 2013. There is still about 660 hectares of deferred land in Shellharbour LEP 2013. Planning Proposals will be required to be prepared to consider bringing those lands into Shellharbour LEP 2013.

2.3.2.02 Monitor and review the Shellharbour Comprehensive Development Control Plan

A Development Control Plan (DCP) is a land use planning policy document used to provide guidance on preparing and assessing development applications. The Shellharbour DCP came into effect in June 2013 and is the product of rationalising over 40 now repealed DCPs and other land use policies into one DCP. Feedback from users of the DCP has formed a large part of the basis for the first review resulting in completing a draft revised DCP. A Councillor briefing session was held on 8 March 2016 at which the amendments and their rationale were presented. Valuable feedback was received. Subsequently Council at its meeting of 15 March 2016 endorsed the draft amended DCP going on public exhibition for 28 days and sought a report after the exhibition making recommendations in relation to adoption of an amended DCP. Exhibition documents including a newly created fact sheet specific to this amendment process were prepared in anticipation of the exhibition period between Wednesday 6 April and Thursday 5 May 2016. Work progressed on assessing the planning policy provisions of the endorsed town centre plans to inform a Development Control Plan (DCP)/Shellharbour Local Environmental Plan (LEP) review.

2.3.2.03 Prepare and implement town centre plans for select urban centres across the city

Good town centres provide a community heart by catering for essential activities related to employment, business, shopping and entertainment and are therefore important in supporting local economies and social fabric.

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Work progressed on assessing the planning policy provisions of the endorsed town centre plans to inform a future Development Control Plan and Shellharbour Local Environment Plan review. Stemming from initiatives of the 15 December 2015 Council endorsed Warilla Town Centres Plan, Warilla Grove owners have consulted with Council staff about their improvement plans for the east side of Warilla Grove which include integrating their design with the new Warilla library design across the road on the corner of Woolworths Avenue and Commerce Drive.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of Town Centre Plans prepared 15% 65% 76% 0% 0%

2.3.2.04 Participate and advocate for Shellharbour in state and regional planning matters

During the period two submissions were made to the NSW State Government. The first submission was to the Department of Planning & Environment (DPE) on the Options for Low Rise Medium Density Housing as Complying Development. These options propose to allow certain development between 2 and 10 dwellings to be complying development. That is, not a development application and able to be approved by a private certifier or a Council. Council’s submission focussed on adverse neighbourhood character and amenity impacts from over development that may result and that no community consultation would be required on individual proposals. The other submission was on the Coastal Management Reforms and the extensive legislative changes that they propose. Council attended meetings with the Roads & Maritime Services regarding the Albion Park Rail By-pass. These provided updates on the project and helped to identify any impacts to the Croom Sporting Complex. Council officers two workshops one on the proposed Draft Coastal Management State Environment Planning Policy and associated mapping and one on the management of the Hawkesbury Shelf Marine Estate.

2.3.2.06 Develop and implement the coastal zone management plan for the city

Shellharbour has about 7 kilometres of coastline and most of that is fringed by urban development, such as car parks, public reserves and housing. Coastal processes such as waves can affect this land. To assist us plan how this important strip of land is used, we are investigating the coastal process and how that may affect the land. The first part of this process has been completed and was the preparation of a coastal hazard study to gain an understanding of the coastal processes and hazards that affect our coastline and specifically define what areas are at risk from coastal hazards. We are now in the process of preparing the Coastal Zone Management Plan (the Plan). The primary aim of the Plan is to document practical actions to be carried out to address the risks from coastal hazards and risks to the health of estuaries. A consultant, BMT WBM, has been engaged to prepare the Plan. Comments on the draft plan from Council staff have been sent to the consultant. The final draft of the Plan, incorporating the Council staff comments is yet to be received from the consultant. When the final draft plan is received a report will be prepared for Council. This report will recommend that the draft plan be placed on public exhibition to seek community input.

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2.3.2.07 Provide effective lea dership and management to the City Strategy Group

Effective leadership and management were provided to the City Strategy Group throughout this quarter. Individual meetings with staff continued to occur weekly as well as weekly meetings of the Group as a whole. Individual and group work plans were discussed including factors impacting on those plans. The team has continued to work well and individual projects are progressing as planned.

2.3.5.03 Implement the recommendations of the adopted Shell harbour Heritage Strategy

Council continued to deal with a wide range of Development Application referrals and general enquiries relating to heritage issues during this quarter. This reflects the diversity of the Local Government Area in terms of history and settlement patterns. Following a request from a member of the public and subsequent Council resolution, an Interim Heritage Order was prepared and Gazetted over private properties located on the Northern Border of the Shellharbour City Council Local Government Area. This is a unique situation where a historical boundary has been considered to be under imminent threat, therefore warranting the protections afforded to it by an Interim Heritage Order. A number of Heritage Conservation Management Plans for Council owned properties continued to progress. An information package was prepared on the implications for management imposed by the State Heritage Listing of Bass Point Reserve.

3.1.1.02 Review and maintain Council's Developer Contributions Program

Council's Development Contributions Programs include Section 94 Contributions Plan, Works in Kind Agreements and Planning Agreements (also known as Voluntary Planning Agreements or VPA's) made under the Environmental Planning and Assessment Act 1979. The purpose of these contributions programs is to collect money, land or works from a development to provide infrastructure to meet the needs of the community, for example a park or a road upgrade. Section 94 Contributions Plan Review: The Draft 8th Review scope and proposed changes of the Section 94 Contributions Plan were reported to the Senior Management Team for endorsement on 24 February 2016. It is anticipated that the 8th Review will be reported to a Council meeting by mid-2016. The Drainage Review is progressing with a progress meeting held with the consultant and additional information provided to assist the review. A consultant was engaged to undertake a Traffic Study on Yellow Rock Road, the results of which may inform a future Section 94 Plan review. Works in Kind Policy Review: A consultant has been engaged to review and provide comment on the Draft Works in Kind Policy. It is anticipated that the 8th Review will be reported to a Council meeting by mid-2016. On 24 February 2016 Council entered into a Works in Kind Agreement with a developer at Albion Park under which the developer will construct drainage works and receive a credit for the Benefit Area contribution. Negotiations continued to further define and clarify the offer from a developer to enter into a Planning Agreement. The outcome of these negotiations were reported to MANEX on 22 March 2016 and negotiations will continue on this basis outlined in this report.

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3.1.1.03 Monitor and facilitate developer contributions tow ard the provision of community infrastructure

Council's Development Contributions Programs include Section 94 Contributions Plan, Works in Kind Agreements and Planning Agreements (also known as Voluntary Planning Agreements or VPA's) made under the Environmental Planning and Assessment Act 1979. The purpose of these contributions programs is to collect money, land or works from a development to provide infrastructure to meet the needs of the community, for example a park or a road upgrade. A total of 109 Section 94 contributions were levied in this quarter. The types of developments that were levied included residential subdivisions and multi-dwelling housing developments. Non-cash contributions toward land dedication and embellishment for public open space were also levied. Ongoing meetings were held between Council and Lend Lease regarding implementing aspects of the Calderwood Planning Agreement (VPA) through the development and subdivision applications. The 6 monthly tracking meeting as required by the VPA was held on 16 March 2016. At this stage there are no completed dwellings. Referral advice on the Stage 2B Development Application was completed. Southern Councils Section 94 Group meeting occurred this quarter, where current Section 94, Works in Kind and Planning Agreement issued were discussed.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Contributions levied - commercial & residential 75 100 144 109 353

Corporate Strategy

3.2.2.01 Facilitate opportunities for local enterprises to learn, network and receive information about business related issues

Meetings of the Shellharbour City Business Network were held during the period, twice. Francine Bishop presented on Trends and Developments in Social Media. In addition, Steve Dixon presented at the network meeting for March on the importance of innovation and leadership in business. The formal evaluations of the February and March events showed satisfaction levels of either a 4/5 or 5/5 satisfaction level for each question asked of 98% and 88% respectively. Multiple emails were sent to the Shellharbour City Business Network database promoting these events and they were also promoted on Council' website through its social media presence and via media releases. The NSW Trade and Investment e-newsletter was also used to promote Council's business development events.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of meetings of Shellharbour City Business Network 2 2 2 2 6

Number of business support initiatives delivered by other government and non-government agencies and facilitated by Council

1 4 5 3 12

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Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of attendees at Business Network meetings 60 49 75 97 221

Number of participants annually in Economic Gardening programs

0 27 27 27 81

Participant satisfaction with Council facilitated business events - evaluation resulting in greater than 3 out of 5

70% 89% 90% 93% 85.5%

Number of community communications regarding economic development activities

15 16 17 16 49

3.2.3.01 Engage with other Government agencies and regional stakeholders to achieve economic development outcomes

During this quarter several meetings were attended with government agency representatives and other economic development stakeholders to achieve economic development outcomes for the city. A partnership with Solar100 resulted in an information session being hosted by Council for local businesses and organisations to find out more about the potential to overcome the barriers to going solar, including options for community financing.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of meetings attended with Government agencies and regional stakeholder groups regarding economic development issues

10 13 12 13 38

Number of economic development issues receiving support from Government agencies and regional stakeholder groups

5 13 12 10 35

3.2.3.02 Deliver the Economic Development Strategy to facilitate the devel opment of the local economy

Education and employment opportunities for local young people were pursued through the Illawarra-Shoalhaven Youth Employment Committee workshop and Calderwood Valley Workforce Development Committee. Planning of a promotional video regarding Council's economic development activities continued. Implementation of the Economic Development Strategy was also progressed through the planning and delivery of the Economic Gardening program and the provision of opportunities for local businesses to improve their business knowledge and expertise. Monthly newsletters were disseminated providing businesses with access to a range of services and opportunities for business development. Facilitated attendance of local businesses at BizConnect sponsored marketing workshop. Coordinated the submission of grant applications under the National Stronger Regions Program.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of economic development iniatives, implemented, underway and/or supported by Council

6 15 16 12 43

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3.3.1.01 Deliver information and services to visitors through the Shellharbour Visitor Information Centre

The Shellharbour Visitor Information Centre has had a successful third quarter with 4,109 enquiries received at the Centre for accommodation, events and other things to see and do in and around Shellharbour (this is a 16.33% increase from the previous quarter). The tourism website (www.visitshellharbour.com.au) received over 32,854 visits during this quarter an increase of 8.9% from the previous quarter. Over 145 bookings were taken through the online reservation system (an increase of 6.6% from the previous quarter), which resulted in 271 nights’ accommodation nights (an increase of 3.04% increase from the previous quarter). The Visitor Information Centre continues to receive positive feedback for its high level of customer service and assistance provided by staff and volunteers.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of enquiries received at Visitor Information Centre 4,000 2,870 3,532 4,109 10,511

Number of visitors to website 29,000 19,846 30,165 32,854 82,865

Number of accommodation bookings 110 112 1,360 145 1,617

3.3.1.02 Market Shellharbour as a tourist destination to our key markets

Tourism Shellharbour to partnered with the South Coast Regional Tourism Organisation and Destination NSW to deliver the South Coast 'Unspoilt’ marketing campaign. As there were some remaining funds from the campaign, it was agreed to extend the campaign so that we have an 'Always On' approach until the new 2016 campaign began. This extension campaign began on 8 February and will continue through till early April. The objective is to maintain the momentum of the 'Unspoilt' campaign with consistent market presence to capitalise on travel behaviour of the target audience through late Summer/Autumn shoulder season. It will also continue to drive cost efficient visits to visitnsw.com/south-coast pages and deliver cost-efficient leads to the South Coast tourism industry through high-converting digital media. The target audience continues to be couples and families, with the primary markets being Sydney, ACT, and regional NSW. The campaign was recognised as a finalist at the Australian Tourism Awards that were held in Melbourne in early February. Summer and Autumn seasonal 'Hot Deals' were showcased on the tourism website during this quarter that saw an 8.9% increase in visits from the previous quarter. Tourism also attended the Illawarra Caravan and Camping Show from 19-21 February 2016. This show attracts visitors from the far South Coast, Shoalhaven and Southern Highlands and is used to promote awareness of Shellharbour and its attractions and events. Tourism continued their regular promotion using both social media and traditional media. Our regular monthly advertising and promotion in the NRMA Open Road Magazine and South Coast Leisure Times, continued and Shellharbour was also promoted in the Caravanning Australia Magazine. Tourism Shellharbour provided support to major and regular events during this quarter. Major events included the Australian Surfer Rowers League, Shellharbour City Festival of Sport, Shellharbour Game Fishing Tournament and World Bowls Cup.


Q1 Result Q2 Result Q3

Result Year To

Date

Number of marketing activities undertaken 3 1 2 3 6

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3.3.2.01 Support industry partners in tourism activities and tr aining needs

Tourism Shellharbour continued to communicate and engage with our industry partners during this quarter. Monthly E-Newsletters were circulated during this quarter in January, February and March - highlighting events, deals, news, statistics and more In January, a special newsletter on the proposed Council merger was circulated to members providing them with details on the proposed merger and on information sessions conducted by Council. Details were circulated to tourism partners on the Illawarra Caravan and Camping Show that Tourism Shellharbour attended. Invitations were also circulated to tourism partners on the Destination NSW Inbound Strategy Workshop that was held on 24 February. An email was also circulated to all tourism partners to be involved in Tourism's Autumn Hot Deals.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of activities and training opportunities delivered/provided

0 1 2 2 5

3.3.2.02 Implement actions from Tou rism Shellharbour’s Destination Management & Strategic Marketing Plan

Tourism Shellharbour continued to implement actions from the tourism annual action plan that have been extracted from the Destination Management & Strategic Marketing Plan during this quarter. During the last quarter Tourism continued to cooperate and partner in the South Coast Unspoilt Marketing Campaign with Destination NSW and the South Coast Regional Tourism Organisation. This award winning marketing campaign continues to deliver results in building awareness and driving leads to our industry. The campaign continues to exceed KPI’s for Shellharbour and the South Coast through the Destination NSW consumer site www.visitnsw.com Tourism continued to build brand awareness through the tourism website www.visitshellharbour.com and our regular advertising and marketing activities such as the NRMA Open Road and South Coast Leisure Times as well as through social media including Facebook, Twitter and Instagram. Other activities that we undertook during this quarter included attending the Illawarra Caravan and Camping Show in February that provided visitors with details on Shellharbour’s experiences, activities and events as well as other regional information. Tourism also continued to communicate to the community through our fortnightly Lake Times/Advertiser Tourism column and the new Wave FM 'Wave Weekender' promoting Shellharbour events weekly on air on Saturday mornings. Tourism also continued to communicate with our industry partners in monthly E-Newsletters and other communication such as face to face meetings. Event support also continued including supporting major and regular events such as the Tongarra TrainFest, i98fm Camp Quality Convoy, as well as regular events such as Farmer's Markets and HARS Open Days.

4.1.2.01 Conduct community engagement activities to inform the review and ongoing development of Integrated Planning and Reporting components

To increase knowledge of the Integrated Planning and Reporting framework a video has been developed which aims to raise community awareness and ownership of the Community Strategic Plan, whilst still reflecting Shellharbour's identity.

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Since the announcement of the proposed merger with Wollongong Council, active community engagement around the Community Strategic Plan has been reduced. The outcome of the merger proposal could impact on the nature and frequency of future community engagement regarding the Community Strategic Plan.

4.2.1.01 Fulfil statutory Integrated Planning & Reporting requirements and provide status updates to the community

The community was updated this quarter through the statutory reporting on both the second quarter review of the Operational Plan and biannual review of the Delivery Program. Both of these documents were reported to the community and endorsed by Council at the 23 February 2016 Council meeting. Some of this highlights reported for the quarter included: Graffiti Removal Day, Carols by Candlelight, Fair Food Week, Warilla Town Centres Plan, Special Rate Variation Update, NSW Tourism Awards, Ideas Box, and Fit For the Future Update. The preparation of the 2016/17 Operational Plan continued this period. A Councillor briefing was held on 22 March 2016, which provided Councillors an update on the Operational Plan and Long Term Financial Plan. The presentation also included an update on the changes made to the documents based on their previous feedback. Both of these documents will be reported to Council at the 5 April 2016 meeting, prior to public exhibition. During this period, Stage 1 of the 2016/17 Business Plans were also completed. For the first time the Senior Management Team participated in a full-day session, which provided each manager the opportunity to present their Group's Business Plan and receive feedback from their peers. The day was successful, with many of the managers finding common priorities across teams and also attaining a greater understanding of the work of other teams across the organisation and what they are aiming to achieve next year. Stage 2 will occur next month.

4.2.1.08 Deliver leadership and management support to the Corporate Strategy Group

Implementation of the Corporate Strategy Staff Development Action Plan continued with staff being involved in development opportunities with other units and also making contributions to cross-organisational projects. The Quality Management System (QMS) for the Corporate Strategy Group continued, with new processes being prepared and existing processes being reviewed as a continual improvement exercise. Discussions were conducted during Team Meetings of possible medium and long term impacts on Council and staff of the merger proposal between Shellharbour and Wollongong councils. The Business Plan for 2016-17 was also completed, with input from the team.

4.2.2.01 Coordinate effective integrated planning and reporting processes across Council

This period a key focus was the coordination of effective integrated planning and reporting processes across Council. This included providing Group Managers the opportunity to present to senior management on how their Group has performed over the period, as well as any deviations from plans that occurred. Workshops were also held to improve reporting quality across Council. Over 35 staff attended the sessions, with positive feedback subsequently received. A new dashboard was also developed and implemented. This dashboard aims to increase staff awareness and understanding of the Integrated Planning and Reporting Framework as well as how the documents relate to each other and other reporting requirements.

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To increase knowledge of the Integrated Planning and Reporting framework, a video has been developed which aims to raise community awareness and ownership of the Community Strategic Plan, whilst still reflecting Shellharbour's identity.

4.2.2.02 Coordinate the delivery of a formal service review process for Counc il operations

During this period service reviews commenced on Amenities (Halls and Community Centres) and the Development Application Process. It is anticipated that both of these reviews will be completed by the end of May. The reviews on the Waste Facility and City Wide Planning will commence mid to late May. Work continued on the installation of mobile technology in maintenance trucks. The operation of these tablets is continually improving, with 28 tablets operating in the field. The testing phase for the use of mobile technology for the collection of information through electronic time sheets continued and is due for completion in early April. As a result of exploration into other treatments of road resurfacing, the road renewal program in 2016/2017 will include the resurfacing of a number of asphaltic concrete (AC) seals being overlaid with two coat flush seals. This is in lieu of full replacement of AC seals and will be significantly cheaper. However, the useful life will be somewhat shorter and their performance will be monitored. Road Asset Types have been renamed to allow better control over useful lives and depreciation. Negotiations commenced for the purchase of financial modelling software.

Community Strategic Plan Video The Community Strategic Plan reflects the communities vision for the City. It sets the direction for the future and seeks to respond to community, environmental, economic and leadership challenges. It will help us get from where we are now to where we want to be. An animated video has been created to increase awareness and ownership of the Community Strategic Plan. It depicts what the Community Strategic Plan is and how we can achieve it.

This video will be released in early May 2016 and will be made available on Council’s website, Facebook page and the online survey program Peak Democracy. It will also feature at the 'Ideas Box' - a pop-up shop located on the lower ground floor of Council's administration building.

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Corporate Policy

4.2.1.10 Lead and Manage the Corporate Policy Directorate staff in order to meet the Community Strategic Plan

The main business for the Directorate over this period has been the Fit for the Future Program and associated work. Council officers have prepared a report for Manex on how the organization will reach the Fit for the Future targets. This targeted a number of areas of council being employment costs, vehicles, depreciation and procurement. Work has begun in earnest on the vehicles as well as depreciation. This is likely to see significant cost savings in these two areas in the short term. The government has indicated that it wishes to examine a merger proposal between Wollongong and Shellharbour Councils. Council officers have engaged with the community on a number of issues. Sports groups have met with Council officers over a number of projects which will be undertaken in the new year. The Albion Park Rail By-Pass project has also seen significant consultation and engagement with stakeholders especially those affected by the reconfiguration of the Croom Regional Sporting complex. This consultation has gone well with the Roads and Maritime Services being attentive to the needs of the groups and also of Council. This will result in some groups receiving new facilities prior to the commencement of the project in order to minimise disruption.

4.2.3.06 Comply with statutory and audit requirements

All statutory and audit requirements have been complied with for 2014/15 financial year and will be met in the current year.

Infrastructure Services

3.1.1.11 Project delivery of capital works

During this quarter progress was made on the 15/16 Capital Works Program. This included investigation, design and construction phase of various projects.

Major projects that are progressing and funded from the Special Rate Variation (SRV) comprised of the completion of 21 road re-sheeting projects these included Jason Ave, Lendine Street, The Kingsway at Barrack Heights. There were various building improvement and roof replacement projects construction undertaken. The Warilla Library redevelopment is currently in design development phase and also the Beverley Whitfield Pool Pump upgrade and the State Emergency Services (SES) Building Albion Park. The Oak Flats pool pump was replaced and the Aerial Patrol building at the Illawarra Regional Airport had minor building works undertaken.

Other capital works projects identified and funded from grant, restriction, levy or other funding sources included the continuation of the construction of the Shellharbour Civic Centre, Oak Flats Library Stage 1 works raising floor pit and the Shellharbour Boat Ramp construction commenced.

Also this quarter various Road Bank Stabilisation works designs were finalised and the Stormwater pit

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and pipe renewals contractor was engaged. An artist was engaged for the Lake Illawarra art trail and the design phase for the demolition of the Oak Flats Baby Health Centre was finalised. Re-tendering for the Shellharbour Beachside Tourist Park new amenities building was completed.

The Links Golf Course Redevelopment including land subdivision, gaming entitlements and golf course reconfiguration were undertaken.

Projects in relation to the Dunmore Resource Recovery Redevelopment including the tendering for the Transfer Station and development of the Organics Processing Contract tender were commenced.

Over the past quarter a number of projects in design phase included the Shellharbour Beachside Tourist Park cottage developments, Albion Park Cemetery Stage 1 development works, Storm water Upgrade at Bensons Creek and Beverley Whitfield Pool Lifeguard Facilities.

A number of projects entered the define phase (that is projects that are being scoped and estimated), these projects included Tripoli Way Stage 1, Oak Flats Library Stage 2 and various sport field amenities projects such as Howard Fowles Oval amenities block upgrade, Geoff Shaw Oval amenities block upgrade and Warilla Lifeguard Tower.

A program covering all capital projects has been developed and will be tracked to the end of the financial year.

The Capital Works Program in quarter three is not on track for various reasons including building works being behind schedules, further site investigation requirements and refining scope of works on projects to align with budgets.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of Capital Works program completed 25% 25% 20% 25% 23.33%

1.1.4.05 Management of all agreements for C ouncil's community land and facilities

The following licence agreements were finalised and entered into Warrigal Care, the Italian Social Welfare Organisation Wollongong and the Australian Latin American Social and Sport Association for the use Home and Community Care facility at Albion Park. A further licence agreement with Warrigal Care for the section of unused road in Albion Park. A temporary licence agreement was issued for the use of Pioneer Park for the Summer Carnival which included amusement rides. A further three temporary licences for events on Public land were issued. Two licence agreement were terminated due to one ceasing operations and the other failing to achieve a full management committee. Negotiations commenced with the Schuetzenklub Illawarra Limited to enter into a new lease agreement. Street Stall approval was issued to the Oak Flats Red Cross Society for their 2016 calendar program. Council staff assisted with the inspection of various community centres and halls with potential hirers, this has resulted in various bookings for events and three groups becoming regular hirers. Requests for maintenance and repairs were received during the period and have been actioned. These requests included the cleaning of air conditioning units and the replacement of light bulbs, relocation of furniture and the spraying of insects. Regular hirers continued to utilise all Community Centres.

Key Performance Indicator Quarterly Target Q1 Result Q2

Result Q3

Result Year To

Date

Number of matters reported to Council relating to leases/licences and other agreements associated with

3 4 6 1 11

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community land and/or groups

Percentage of community leasable properties that are available

5% 100% 99% 1% 66.33%

Total number of bookings processed 995 957 961 886 2,804

Number of hours occupied by standard bookings 818 1,714.75 1,540 1,278.5 4,533.25

Number of hours occupied by non-profit bookings 995 1,504 1,333 1,431.25 4,268.25

1.2.2.01 Manage and improve sportsgrounds, parks, reserves, picnic faci lities and playgrounds throughout the city

Council completed work on the upgrade of canteens at Centenary Field in the Croom Regional Sporting Complex, Terry Reserve at Albion Park and Cec Glenholmes Oval at Warilla. The amenities block refurbishments at Tom (Scout) Willoughby Oval Shellharbour was also completed. These projects were all funded under the Special Rate Variation In the reporting period there were a number of meetings held to discuss capital works projects, Sportsfields improvements and concerns with passive open space and playgrounds these included:

• Sportsfield and lighting requests for improvements at King Mickey Park - Warilla • Playground and park maintenance issues - Keith Barnes Oval Church Street Albion Park • Restoration and maintenance issues with the playing surface at Terry Reserve Albion Park • Facility improvements at Cec Glenholmes Oval - Warilla • Ground and amenities improvements - Pony Club at Terry Reserve Albion Park • Use of amenities building at Des King Oval – Albion Park Showground • Maintenance issues - Albion Oval & Croom Cricket Oval – Albion Park

A total of 74 applications were received and processed for the use of sportsfields by various sporting groups and schools bookings. The sportsfields were used a total of 1,854 times and of this the pre-dominant users were sporting clubs (95%) schools (4%) and associations (1%). Due to a wet start early on the reporting period sportsfield closures occurred for 18 days (20%) in category one, category two for 14 days (15%) and category three for five days (5%). Council received 49 requests for maintenance and repairs for sportsfields and reserves in the reporting period. At the end of the period fourteen of these requests remain outstanding and will be completed early in the next quarter. The drainage works for Terry Reserve sportsfield was undertaken this quarter. The new drainage works will cover the eastern half of the playing surface, which will equal approximately 3800m² to match the existing drainage on the western half of the field. Council called for applications for funding under the Section 94 - Active Open Space - City East – to all eligible sporting groups. Five applications were received. These applications have been assessed against the criteria and a presentation was prepared for the Sport & Recreation Working Party meeting for discussion and recommendations. These will then be reported to Council. Fencing of Flinders Field at Flinders commenced. This project is being funded by the Stingrays Football Club including grant money received by the club.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of sportsfields bookings processed 3 53 33 67 153

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2.1.3.03 Pursue funding opportunities under the NSW government "Waste Less Recycle More" program and deliver on projects where successful

A number of programs have been delivered this quarter under the NSW Environment Protection Authority Better Waste Recycling Fund. Shellharbour Village "Living Plastic Free" is a program aimed at reducing the number of single use plastic bags used within Shellharbour Village. During this quarter, Council has assisted shopkeepers with the provision of 20,400 paper bags as an alternative to plastic bags. Two new recycling banks were delivered to provide recycling options for problem household waste. One of the stations is located on Level 1 of Councils Administration Building. This station accepts household batteries, CD, DVDs and mobile phones. The second station has been installed at the Resource Recovery Centre at the Dunmore Recycling & Waste Disposal Depot. This station accepts household batteries, CD, DVDs, fluorescent tubes and printer cartridges. The Dunmore Recycling & Waste Disposal Depot education model is nearing completion. This model provides an aerial view of the facility, and will be used as an educational tool for residents.

2.2.1.01 Provide educational programs to promote and support waste avoidance and resource recovery and the proper use of the waste management system

During this quarter a total of four education sessions were delivered, with a total of 91 residents attending. These education courses included Council's Earthworks course, Council's "Choose the right bin don't just throw it in" course and Council's Worm Farming course. In addition to these courses, Council commenced its education campaign on the roll out of the new Food Organics Garden Organics collection service. This service is due to commence on 1 July 2016, which will result in the weekly collection of the green-lidded organics bin. A total of five sessions have been held across the Local Government Area with a total of 148 residents attending. These information sessions will continue over the coming months. During the quarter a total of 554 new and replacement bins were delivered. This included 253 garbage bins, 137 recycling bins and 164 garden organics bins. Five kerbside audits were conducted this quarter, including two recycling bin audits and three garden organics bin audits, 73% of those households who had their recycling bin audited were awarded with an Awesome Recycling Tag, whilst 80% of those households who had their garden organics bin audited received an Awesome Recycling Tag. Residents are requested to complete the contact details on the Awesome Recycling Tag and return to Council to go into the draw to win a compost bin, worm farm or Bokashi bucket.


Q1 Result

Q2 Result Q3 Result Year To

Date

Number of participants 30 269 1,934 249 2,452

Number of activities conducted 3 26 24 9 59

Number of participants that implemented waste avoidance and resource recovery initiatives following education program

10 8 0 0 8

Percentage of contamination in recycled waste bins 10% 6.65% 7% 6.7% 6.78%

Percentage of kerbside resource recovery 66% 45% 62% 55% 54%

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2.3.1.01 Manage the design and construction of the Shellharbour Civic Centre

Majority of the design has been completed. Public art and signage design is progressing well. Construction is under way with bulk excavation nearing completion. Works have commenced on solider/foundation piles, headwalls and rock drains. The first two Construction Certificates have been approved. The third Construction Certificate will be finalised and issued once an outcome of the Section 96 application has been assessed. The outcome of this will be known in the near future. The sale of properties identified to fund the complex is following due process.

2.3.3.02 Investigate and respond to roa d safety, street lighting and traffic management issues

All traffic management issues and street lighting requests were investigated within 20 days. During the reporting period the one Public Lighting Design Brief was submitted and approved. Three street lighting faults were reported to Council and referred to Endeavour Energy for repair. No Street Lighting Management Plan meetings were scheduled during the reporting period.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of traffic investigations undertaken within 20 days

90% 100% 100% 100% 100%

Percentage of requests for street light management and investigated and determined within 10 working days

85% 100% 100% 100% 100%

2.3.6.04 Effectively manage Council's property dealings and portfolios

The settlement of Stage 1 of Lot 522 Tullimbar occurred on the 19 January 2016. This property was one that was highlighted to be disposed of to assist with the funding of the Civic Centre. Two leases were entered including Air Force Cadet’s facility at the Illawarra Regional Airport and Hearsol Pty Ltd for the shop 134b of Lamerton House. The licence agreement with Bright’s Pty Ltd for the use of the Illawarra Regional Airport for 'Wings Over Illawarra Event' was entered. Council engaged the services of a registered surveyor to prepare the 'Plan of Acquisition' in relation to the Tripoli Way project. The following road closure applications were received to close a portion of road at Ashton Close Albion Park and various sections of North Macquarie Road Calderwood. Each matter will be reported to a future Council meeting. The plan for the dedication of land from the rear of 145,147 and 149 Tongarra Road Albion Park was forwarded to Land and Property Information for registration. Upon registration the section of land will be dedicated as Public road and finalise the Destination Albion Park Land Acquisitions. Dedication of land from the rear of 145,147 and 149 Tongarra Road Albion Park was forwarded to Land and Property Information for registration. Upon registration the section of land will be dedicated as Public road and finalise the Destination Albion Park Land Acquisitions.

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Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of matters reported to Council relating to leases/licences and other agreements associated with operational land and commercial matters

3 6 8 0 14

Percentage of commercial leaseable properties that are available

5% 2% 2% 2% 1.33%

3.1.2.04 Manage the Asset Improvement Program including income from the Special Rate Variation

Projects included in the program primarily involve asset renewal. During the third quarter significant maintenance has been planned and scoped for the Illawarra Airport. Currently reviewing the Operational Plan for the quarterly budget review, and continually updating the Long Term Financial Plan. Many sports facility refurbishments have been completed over this period. The contract for asphalt resurfacing is well under way, we have completed 21 major roadwork's projects on our calendar to date. The Special Rate Variation program in quarter three is not on track due to further refining of the scope of works for some projects needed to be undertaken.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of the program completed 25% 25% 25% 25% 25%

3.1.2.07 Update and implement Asset Management Plans

Asset Management Plans (AMPs) for roads and stormwater are planned to be completed during the financial year. Currently Council has an over-arching Asset Management Plan encompassing roads, buildings and storm water asset classes. The intention is to the separate the plan into individual asset classes, to improve the ability to assess the level of service, renewal and upgrade needs for similar types of assets. An Asset Management Improvement Plan that was prepared last financial year along with Council's Fit for the Future strategy, will be used to inform the development of the new plans. Condition assessment will continue in the interim to improve the accuracy and reliability of the plans to be updated.

4.2.1.07 Provide leadership and management oversight by coordinating, monitoring and reviewing the performance of the Infrastructure Services Group

Infrastructure Services' Business Plan, which underpins the Operational Plan, Delivery Plan, Long Term Financial Plan and Community Strategic Plan, is available and is monitored and reviewed on a quarterly basis. The performance of staff is managed in accordance with established policies and procedures and includes the formal performance review, training needs analyses and the development of team and individual work plans. The proposed Council merger has had an impact on staff morale, which is

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understandable. To minimise angst, the current status of the proposal is communicated to staff. Staff achievements are recognised via the Reward and Recognition Program and awards are celebrated at a quarterly event. Staff are being regularly informed of the organisation's objective and progress to achieve these objective through formal team meetings. The development of staff skills is provided via on the job training and supervision, in-house training and specialist training on a needs basis. The loss of key resources in the Asset Management team has created opportunities for others to act in new roles and expand their skills and knowledge. Continuous improvement is being achieved by way of reviewing various Business Processes within the Group. This has included IT, Asset Management, Subdivision, Property, Service Level and Roles and Responsibilities related issues. The Fit for the Future activities continue to inform and guide asset management and financial management and has highlighted the need for whole of life considerations in relation to the provision of new assets. This has had an impact on Fit for the Future ratios. This work will continue into 2016. Internal Service Level Agreements continue to be refined in order to achieve improved efficiencies and to respond to Fit for Future objectives.

1.1.3.12 Develop and implement Road Safety Programs

During the January, February and March quarter, Council complied with the prepared three-year Road Safety Action Plan 2014-2017 in accordance with the Local Government Road Safety Program Guidelines. The plan is in its second year and includes funded and non-funded activities for the Road Safety Officer to undertake over the three-year period. The Plan focuses on speeding drivers, motorcyclists, pedestrians, young drivers and older road users. There were 33 meetings attended where partnerships with stakeholders continue to strengthen, 20 of these were internal and 13 were external. A Regional Road Safety Officer and Roads and Maritime Services quarterly meeting was also attended. Internal meetings were held to address a number of issues including coordination of road safety activities across Council Directorates. External meetings involved engaging key stakeholders and the general community in activities to address road safety at a grass roots level. This quarter saw a number of programs developed including learner driver initiatives targeting young drivers and a specific program targeting young drivers from our local Aboriginal community and an On the Road 65 Plus presentation to address senior road safety was also delivered to U3A Shellharbour.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of road safety projects undertaken 3 5 3 3 11

1.1.4.04 Coordinate Plans of Management for community land and Council's heritage assets

In relation to the draft Plan. Thirty of those submissions supported the changes to the revised draft plan of management. Those submissions that supported the Plan of Management were in support of the categorisations of Parkland and Natural Area – Foreshore. The draft plan of management was adopted at the Ordinary Council Meeting of 23 February 2016.

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The Plan of Management for Sophia Park was updated by an independent consultant to include an additional categorisation. This is currently being reviewed by Council staff.

1.2.1.02 Explore opportunities to increase the variety of recreational facilities availabl e within the city

Council is always exploring opportunities to increase the variety of recreational facilities within the city. The proposed upgrade to the amenities at Howard Fowles Oval at Lake Illawarra and Geoff Shaw Oval at Oak Flats are progressing. Both are being revised due to extensive scope and costings. A contract has been awarded to replace the fencing at the Croom hockey fields. The Albion Park Showground lighting project has been scoped and will now proceed to tender. Following on from the community engagement on the outdoor exercise equipment selection the tenders for the project in Strong Reserve Warilla have been received and are being assessed. The first meeting of the Passive Open Space Working Party was held on 9 March 2016 and was a great success. Discussions included the extent of community land in the Local Government Area, the role of plans of management for community land and Council’s Open Space Recreation & Community Facilities Needs Study.

1.2.2.02 Efficiently maintai n all parklands, open spaces and recreational facilities

January and February grass growth rates have been very high this year. Over this quarter works have been effectively planned and carried out, with levels of service exceeding previous years. Due to the hotter weather, maintenance has focused on high profile areas, including the City Centre and other town centres. During the quarter mulch has been spread over large areas of Council land to reduce mowing and maintenance costs.

1.2.2.03 Eff iciently maintain all sportsfields

During the past quarter we have experienced considerable wet weather conditions. Despite this, levels of service relating to mowing were met through the use of the tractor with low impact tyres. A number of local events, including the Shell Cove Fun Run and the Festival of Sport, were held during this quarter which required a strong focus on customer service.

2.1.1.03 Manage and implement the Stormwater Management Service Charge Program

Terry Reserve drainage blocked with wet cut grass required drain clearing in that area, the drains have been inspected and we have engaged a company to make the necessary repairs to get this system working again. Other major drainage maintenance has been carried out on the old library site. This line has been blocked for many years, causing flooding in Antrim Ave, Warilla. No localised flooding has occurred since the work was completed. Council awarded the contract for re-lining of storm water pipes, and projects will commence shortly.


Target Q1

Result Q2

Result Q3

Result Year To

Date

Percentage of the Stormwater Management Program completed

75% 25% 30% 0% 18.33%

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The Ultimate Learner Log Book Run Experience On Sunday, 20 March 2016 Shellharbour, Wollongong and Kiama Councils collaboratively planned, developed and implemented the inaugural Ultimate Learner Log Book Run Experience; a by-product of the Learner Log Book Run which is in its 13th year of running in the Shellharbour and Kiama Areas. The intended outcomes of the Ultimate Learner Log Book Run Experience is to: increase awareness of skills, knowledge and attitudes of safe driving; create knowledge and understanding of the role of emergency services in road safety; increase awareness of the impact road trauma has on the community; provide practical road safety information; and provide a fun and appropriate activity that contributes to the required minimum 120hrs of supervised driving. Learners and their supervisors were involved in a briefing which included a talk from Highway Patrol, a personal story from a local victim of road trauma and individualised reverse parking tuition. Once setting off on-route, the learners and their supervisors were exposed to a number of experiences - including fire rescue demonstrating the use of 'jaws-of-life' to open a car and simulating a rescue from a crash scene. They also heard from the Police Crash Investigation Unit about their role in road safety and up-to-date information was provided regarding Safer Vehicle Research delivered by the Centre for Road Safety. The day was well received by 80 participants and finished with a pizza meal, which was enjoyed by all. An initial assessment of the evaluations shows very positive feedback.

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2.1.1.05 Maintain and manage wetlan ds in accordance with management plans

Maintenance works have been carried out as per management plans at Myimbarr Wetland. Passive surveillance activities whilst on routine maintenance has been taking place, this is to help early identification and intervention of any aquatic weed outbreak. Funding from Local Land Services is underway, with grant funding received for Pelican View Reserve, Picnic Island and Elliott Lake. Works at Pelican View Reserve carrying out secondary weeding are continuing on from last financial year's work with the Green Army.

2.1.2.03 Implement Environmental Management Plans for Public Reserves

The last quarter has been very wet, hindering Council's ability to achieve mowing requirements for the city. Despite the inclement weather, the level of mowing achieved is adequate. The new mower/tractor combination has proven successful on the cricket fields and has already attracted positive feedback from ratepayers and sports clubs alike. The issues with the irrigation systems at Terry No 1 and Myimbarr have been rectified.

2.1.3.02 Implement the Corporate Waste Minimisation Policy

Jacobs Australia Pty Ltd are currently reviewing Council's Waste Management Strategy. It is proposed that the Corporate Waste Minimisation Policy will be incorporated into the revised Waste Management Strategy. During this quarter, two workshops were held with the consultant. The first workshop was a planning workshop which reviewed the objectives of the current Waste Management Strategy, and discussed opportunities for expanding these objectives. The second workshop was a presentation of the Background Report, which details the driving factors behind the objectives and actions of the Waste Management Strategy. The consultants also presented the draft table of contents for the revised Waste Management Strategy. The existing Corporate Waste Minimisation Policy is continuing to be implemented with the purchase of sustainable serving ware for Council held events (with over 30 people attending). Council is continuing to support resource recovery within Council's Administration Building with the provision of food organics recovery, soft plastics recovery, comingled recyclables recovery and paper recycling on all floors within the building.

2.1.4.01 Coordinate and encourage participation of residents, schools and community groups in national and local events, such as Clean Up Australia Day & National Recycling Week

Clean Up Australia Day was held on Sunday 6 March 2016. A total of 12 clean-up sites were registered across the Local Government Area. Council assisted the event by providing waste collection services and rewarding participants for the efforts through coordinating a lucky dip prize draw. A total of 1.5 tonnes of waste was collected on the day.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of events 1 0 2 1 3

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2.1.4.03 Manage Parkcare, Bushcare and Landcare groups

Koona Bay Bushland Group are a newly established Bushland Group and they have commenced operations with admirable outcomes. Council officers are in the process of co-ordinating the recognition of the works undertaken by Bushland Groups to date with a view of formally recognising their hard work.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of approved of groups supported 5 21 22 24 67

Number of trees donated 400 2,500 200 0 2,700

2.2.2.01 Provide waste collection and management services to the comm unity

A total of 8,422.59 tonnes of material was collected at the kerbside during this quarter. Of this, 4,609.01 tonnes of material was recovered and reprocessed. This resulted in a resource recovery rate of 55%. During this quarter 253 garbage bins, 137 recycling bins and 164 garden organics bins were delivered across the Local Government Area. There were two kerbside recycling audits conducted this quarter, with the following results:

• on average the bins were 66% full • 81 % of properties audited presented their bin for collection • 8.9% of bins presented were considered contaminated • 26% of properties received an education letter regarding what can and cannot be placed in the

recycling bin • 73% of properties received an Awesome Recycling Tag for doing the right thing

There were three kerbside organics audits conducted this quarter, with the following results:

• on average the bins were 75% full • 63% of properties audited presented their bin for collection • 0.5% of bins presented were considered contaminated • 6.0% of properties received an education letter regarding what can and cannot be placed in the

garden organics bin • 80% of properties received an Awesome Recycling Tag for doing the right thing

2.2.2.03 Manage and operate the Dunmore Recycling & Wa ste Disposal Depot in accordance with Environmental Protection licence conditions, the Site Management Plan and Procedures Manual

During this quarter design work for the construction of the next landfill cell commenced. This included a number of test pits to locate the liners of the surrounding landfill cells. Over the past 12 months Council has been trialling the use of an alternative cover material at the Dunmore Recycling & Waste Disposal Depot. It is a requirement of our operating licence that the active landfill cell is cover at the end of each day. Our licence requires the use of soil to achieve this, however the Environment Protection Authority has allowed Council to trial an alternative. During this quarter Council provided a report to the Environment Protection Authority on the outcome of the trial period, with the aim of including the use of the alternative cover on the operating licence for the site. The outcome of this report will be known next quarter.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Monthly audits to be undertaken 3 3 0 3 6

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2.2.2.04 Investigate, design and deliver the redevelopment of the resource recovery facilities at Dunmore, including the provision of a new transfer station and a processing facility for food and garden organics

During this quarter Council assessed the submission received for the Expressions of Interest for the Food Organics Garden Organics (FOGO) operation. From the submissions received, 4 companies were short-listed. The tender documents have been prepared and will be release next quarter. The tender submissions for the design and construction of the Transfer Station and ancillary works were assessed and the outcome of the assessment will be presented to Council on 26 April 2016 for consideration. Council will be meeting with the Environment Protection Authority next month to discuss the progression of the overall redevelopment of the site and to seek advice on the long term management of leachate at the site.

2.2.2.07 Develop and implement a waste management plan for public places

Following the installation of new waste and recycling bin in Shellharbour Village a number of original enclosures have been removed. These enclosures have been earmarked to be relocated into local parks and other isolated areas as they control the misuse of the bin and associated illegal dumping through the restricted opening. Youth Services have commenced an art program with Year 10 students from Oak Flats High School, who will be painting murals on a number of the enclosure prior to installation across the Local Government Area.

2.2.3.04 Investigate the feasibility of installing power generation at the Dunmore Recycling & Waste Disposal Depot based on the performance of the gas extraction system

The tender documents for the operation and maintenance of the existing gas network at the Dunmore Recycling & Waste Disposal Depot are being prepared. It is anticipated that these documents will be released next quarter.

2.3.3.03 Implement the shared use path strategy

There has been recent meetings of the Active Transport Working Party, however, there are still no funding opportunities identified at this stage. Council has applied for funding under the Stronger Communities Fund for a footpath at Tullimbar. The outcome of this application is unknown at this stage.

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FOGO – Food Organics Green Organics On 22 March Council commenced its education campaign on the roll out of the new FOGO collection service. Residents were invited to attend a free sausage sizzle provided by the Oak Flats Lions Club at various local community centres or local parks to learn about the new weekly food organics, garden organics (FOGO) collection service. A total of 28 BBQs will be held potentially reaching up to 1000 residents. Residents have been encouraged to come along and find out:

• When the service starts; • When their kitchen caddy and service collection brochure will be delivered; and • What you can put in your FOGO bin.

A total of five sessions were held this quarter across the City, with a total of 148 residents attending. Staff also attended external workshops at Shell Cove Community Centre, local events at school fetes, local charities and clubs such as:

• Albion Park Men’s Shed; • Albion Park Community Garden Club; • Blackbutt Flinders combined Probus Club; and • Oak Flats Lions Club.

It is hoped that these residents will become champions, spreading the word to family and friends. Council has secured funding under the NSW Environmental Trust for the delivery of a kitchen caddy to every household currently paying for a waste service. This will assist with the recycling of food scraps. Flagstaff will commence delivery early in May and will be completed by mid-June ready for commencement of the FOGO collections. The new FOGO service means Shellharbour residents can place all their food waste, scraps, leftovers, take away and out of date food in their green lid bin together with their regular garden material. This bin will change from a fortnightly collection to a weekly collection from 1 July.

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2.3.4.03 Assess and determine Construction Certificates and Torrens Titl e Subdivision Applications

All Construction Certificate and Torrens Title Subdivision Applications determined within 21 days, excluding those where stop the clock provisions applied. Applications of note include the Calderwood access bridge across Macquarie Rivulet. The bridge spans 145m and has a 9m deck with a 3m separated shared use pathway. The total cost of the bridge is $5.6 million.


Target Q1

Result Q2

Result Q3

Result Year To

Date

Percentage of all Construction Certificates determined within 21 days

85% 100% 100% 100% 100%

2.3.4.06 Provide engineering and landscaping advice for the development assessment process

A total of 76 Engineering referrals received, with 68 determined within 21 days and three are awaiting further advice from the applicant. A total of 36 Landscape referrals received and 24 determined within 21 days. Engineering referrals and Landscape referrals increased by a total of 15 and 10 respectively compared to the last reporting period.


Target Q1

Result Q2

Result Q3

Result Year To

Date

Percentage of all referrals determined within 21 days 85% 76% 95% 85% 85.33%

2.3.6.03 Identify and plan future maintenance, renewal and upgrades for Cou ncils buildings and facilities

The Rural Fire Station peripheral works have been completed, which marks the end of this project. No building inspections were carried out this quarter. The current condition of the Building Assets will be determined during inspections. Buildings will be re-valued in 2016/17. At the completion of the Buildings Asset Management Plan (AMP) in May 2016 a detailed program of inspections will be created. This will provide the program for building inspections moving forward.

2.3.6.05 Operate Council’s cemetery facilities responsive to the needs of the community

In this reporting period, Council completed 7 burials and 5 placements of cremated remains at Shellharbour Cemetery. Council received and processed 9 applications for plaques. Residents made 6 reservations at Shellharbour Cemetery for future placements of cremated remains. Eleven burials were completed at Albion Park Cemetery along with one placement of cremated remains. One plaque was placed and an additional 3 ordered. Residents made 7 reservations for burial plots. The implementation of the Albion Park Cemetery Masterplan is continuing. The Development Application and associated Construction Certificate for the construction of Granite Walls of Niches have been approved and tenders sought for the construction of these assets. Planning is underway for the construction of three additional concrete beams which will create additional burial plots in the Catholic and Independent (Macedonian) sections. The focus for landscaping has been on the creation of a formal

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seating area in the centre of the cemetery. Council staff have continued with the audit of Shellharbour Cemetery, focusing on Lawn 7 which is now up-to-date to 1999.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of requests for cemetery related matters actioned within 3 working days.

100% 100% 100% 100% 100%

3.1.1.10 Provide engineering design services and investigations for Council projec ts

Most of the 44 requested engineering design services and investigations were undertaken. The design section undertook 42 (equivalent to 96%) tasks for the time period which resulted in greater than the anticipated target of 80%. The types of tasks undertaken, comprised of construction folders; detail and conceptual designs and estimates; detail surveys along with set-outs. These tasks were highlighted by providing design services and co-operation in relation to projects associated with, Contracts and Projects, Property and Recreation, Waste Management, as well as Road Safety and Asset Management sections.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of requests undertaken and completed within 20 days

80% 97% 96% 96% 64.33%

3.1.2.01 Ensure all legislative requirements for existing and future prescribed detention basins/dams are met

No reporting was required to be undertaken in January, February and March 2016.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of detention basins/dams that meet all legislative requirements

100% 100% 100% 100% 100%

3.1.2.02 Ensure all new detention basins and dams are constructed to the safety requirements of the NSW Dams Safety Committee

No new dams assessed during the reporting period.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of Dams approved in accordance with the Dam Safety Committee Guidelines

100% 100% 100% 100% 100%

3.1.2.03 Inspect dams and carry out maintenance in accordance with the requirements of the NSW Dams Safety Committee

Dams have continued to be inspected in accordance with the requirements of the NSW Dams Safety Committee and Act.

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A number of piezometres, which are devices that measure water pressure head, have been damaged and will require replacement.

3.1.2.06 Efficiently maintain all roads and associated assets

During this quarter both routine and planned road works have occurred, including road, bridge and kerb and gutter maintenance. Specific maintenance including asphalt repairs at roundabouts and extensions to a carpark in Flinders has also been carried out this quarter. Kerb and gutter replacements have been carried out ahead of some major roadwork's. A program of works under the Roads to Recovery Program has been determined for the year and has been approved by Council. Specifications for these projects have been finalised and the work has commenced, Council's contractor, Roadworx, will complete all the planned sealing of Rural Roads before the end of next month.

4.2.6.01 Progress Floodplain Management Program to identify priority flood mitigation measures

A Councillor Briefing was held on 8 March where Council's specialist consultants presented the findings of the Draft Elliot Lake - Little Lake Floodplain Risk Management Study and Plan. A Council Report was prepared recommending the draft reports be placed on public exhibition. Comments on the draft Horsley Creek Floodplain Risk Management Study and Plan were received from NSW Office of Environment & Heritage in late December 2015. Consolidated comments were provided to the consultant in January. A revised draft Horsley Creek Floodplain Risk Management Study and Plan was received on 21 March. The draft reports were subsequently forwarded to NSW Office of Environment and Heritage and NSW State Emergency Services for Comment. Council consolidated comments from the NSW Office of Environment & Heritage on the draft Macquarie Rivulet Flood Study Report and forwarded those comments to the consultant for consideration in January. A revised draft Flood Study report was received on 31 March. The report was subsequently forwarded to NSW Office of Environment and Heritage and NSW State Emergency Service for comment. Council's consultants preparing the Lake Illawarra Mt Warrigal & Oak Flats Flood Study continued work on building the hydrodynamic flood model in January, February and March. A Community Consultation Summary Report was provided to Council officers in January.

4.2.6.03 Protect Council’s assets from Bushfires

Actions from the bushland management plans have been ongoing during the 3 quarter with mowing and slashing being carried out. Slashing has also taken place to reduce fuel loads. Fire trails have been maintained from Rural Fire Service funded including Glenview Fire Trail and Abercrombie Reserve. The actions completed aim to reduce the potential impact of brushfires on Council assets by maintaining asset protection zones.

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Organisational Development

Special Rates Variation

Approximately $894,000 of Special Rate Variation (SRV) funds were expended over this quarter. The following provides a breakdown of expenditure across main asset classes.

Roads and Related Assets: Approximately $746,300 of SRV was expended in this class, largely due to delivery of 30 road renewal projects. Delivered projects include the renewal of Jason Avenue, Lendine Street, The Kingsway and Jones Avenue. Buildings: There was approximately $88,900 of SRV expenditure on buildings during the third quarter. This is largely attributed design phase costs for the Warilla Library Relocation project. Albion Park SES Building Refurbishment and Aerial Patrol Building Refurbishment also had significant expenditure. Open Spaces: Approximately $58,800 of SRV funds were spent this quarter. This is primarily from the final payment of design consultancy fees for Beverley Pool Pump Renewal, and to a lesser extent, the solar and gas hot water systems at Oak Flats Pool. The commencement of works at Shellharbour Village Boat Ramp also contributed

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Organisational Development

2.3.1.03 Plan and implement the transition to the new facilities provided by the Shellharbour Civic Centre

Plans have been developed for the transition to the new facility and we are awaiting further instruction before proceeding.

3.2.4.01 Liaise with learning institutions, the community and other agencies t o provide work experience for students and disadvantaged groups.

Several work experience requests have been received for this quarter. Of which, nine of these requests have been placed in the areas of Parks, Aquatics, Landfill and Stadium (PALS), Libraries and Museum and Information Services. With one request was not accepted as that area did not have the resources available at the time of the enquiry due to already having students placed at that time. The remaining two enquiries will be finalised next quarter due to further information required.

3.2.4.03 Implement Council’s Aboriginal Employment Strategy to increase employment opportunities for the Aboriginal community

Organisational Development is waiting on the outcome of the review of the Aboriginal Employment Strategy currently being conducted by the Aboriginal Advisory Committee. In the meantime, we have been in contact with Warrigal Employment to see if it is appropriate for Council to attend Warrigal's forum which is planned for later this year.

4.2.1.04 Monitor trends in recruitment, remuneration and retention to ensure that Council remains competitive in the market place and able to deliver planned outcomes for the community

Research on developing a new and contemporary recruitment web page for Council was delayed due to changing Organisational Development work priorities. This is now continuing and involved researching other organisation's web sites to identify best practice examples. Consultation with internal clients will be arranged prior to finalising the new page. The Local Government NSW Human Resource Metrics Survey was released in February 2016. Organisational Development are currently reviewing the results of this survey and the comparisons between our council and other NSW local government councils. Organisational Development are waiting on the release of the following surveys which Council participated in 2015: Local Government Operational Effectiveness Survey; Local Government Remuneration Survey and McArthur 2015/2016 Local Government National Remuneration Survey. The review of the performance management system is continuing with the establishment of a Performance Management Project Group. This Group is a representation of staff from all areas of Council. The Group will review, research and present options for the future direction of performance management within Council.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of job evaluation requests received and evaluated within 30 days

80% 100% 100% 75% 91.67%

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4.2.2.05 Assist managers in maintaining an industrial environment that supports Council in providing services to the community

For the second period running there were no grievances or disputes lodged. There were some matters that required intervention, however, these were addressed early and did not develop into formal grievances or disputes. The structure in Parks and Gardens is now settled and this has reduced tensions that were present during the restructure resulting in less grievances and disputes. Again Organisational Development has been working with managers and supervisors to assist them in their approach to any matters that have arisen with the aim of stopping them from escalating.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of industrial disputes and grievances actioned within 2 weeks

80% 80% 100% 100% 93.33%

4.2.2.07 Administer the recruitment function for staff

During the quarter January to March 2016 there were 20 positions advertised, 8 of these positions were advertised externally (casual employment and/or occupation specific roles). Calculations were required to determine a percentage of vacancies that were filled within 7 weeks from time of advertising. This quarter showed 50% of recommendations received were received within 7 weeks from advertising. However, At the close of March quarter reporting period, there were 21 open recruitment actions all at various stages of the recruitment process. The open recruitment actions are not a direct result of the merger proposals.



Result Year To

Date

Percentage of staff turnover 5% 2.55% 3.23% 1.87% 1.92%

Percentage of vacancies filled within 7 weeks from time of advertising

75% 28.93% 41.6% 50% 40.17%

4.2.2.08 Provide training and professional development for staff through the annual training needs analysis

During this period a number of training and development courses have been conducted based on the Training Needs Analysis information. To address key skill development areas a number of courses were conducted by TAFE as part of the fee free training courses currently being offered by TAFE. These courses were tailored to meet the needs of Council staff and included Microsoft applications, client services and First Aid. Corporate courses are currently being planned for the April to June period, including Project Management, Report Writing and Induction.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of corporate training courses offered 1 1 1 11 13

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4.2.2.09 Develop and implement programs that reinforce councils values and contribute towards a motivated, harmonious and engaged workforce to make Shellharbour City Council an employer of choice

Organisational Development staff are working with committees to develop new policies and review existing policies. The most prominent being the Performance Review Process. The Rewards and Recognition Committee are planning the end of year award night which will be held in June this year. The awards night is an opportunity to reward and recognise the achievements of council employees over the preceding 12 months.

4.2.2.11 Provide leadership and management for the staff and activities performed within the Organisational Development unit

Work Plans have been developed for all staff in Organisational Development. Projects contained within the Work Plans are monitored and updated fortnightly.

Professional Development Program Council focused on a program of training and change management that included in-house on resilience to help staff cope with the current environment. Council also took advantage of a number of free training programs that were provided by TAFE. This enabled a number of staff (241 placements) to update core skills and undertake further training in a number of areas. These included Microsoft Word, Excel and Outlook, client services and First Aid. This training was a cost effective way of meeting staff needs.

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Information & Customer Services

4.2.2.03 Respond to customer enquiries and provide services efficiently, effectively and in a timely manner to ensure customer satisfaction

The Customer Service Unit has continued to work with new integrated systems which were implemented in July 2015. eServices went live in March 2016 allowing customers the option to lodge Applications and Requests and make payments online. The unit continues to review and make improvements to their procedures and processes. The Knowledge Base project is now complete. The Trainer role has been filled in the unit and a Training Agenda has been prepared and an approach discussed for populating the knowledge database. The Knowledge Base will have a considerable impact on the Customer Service Centre helping to improve the efficiency, quality and consistency of information delivered to the customer and helping to reduce our call times, wait times and abandoned calls. The unit is also continuing to work with stakeholders to review and make improvements to the Customer Request Management System Categories, workgroups, workflows and improve the overall efficiency of the system. Call abandonment rate was high ion January due to staff shortages but has improved in subsequent months


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of Development Applications registered within 2 days

95% 100% 100% 100% 100%

Percentage of customer enquiries resolved at customer services counter or call centre

85% 93.3% 89% 93.7% 92%

Percentage calls abandoned at call centre 5% 9% 8% 8% 8.33%

4.2.2.04 Ensure the delivery of information and customer services acro ss the enterprise

The Group continues to deliver the business plan objectives and improvement initiatives. In the Information Technology (IT) area, the Office 2016 upgrade and migration of emails to Microsoft cloud was completed successfully. These were high risk and business critical projects which were completed on time and with minimal disruption to the business. The team is also developing a detailed approach for the IT related projects in the Civic centre. This includes design and delivery on new network, data centre and telephony solution. In the business applications area, the on line services in Technology One went live in the middle of March and the Community can now submit a range of applications, payments and customer requests via the Corporate website. The business intelligence dashboards for Finance, Payroll, Assets, Performance Planning and Procurement were also built in the last quarter and demonstrated to Senior Managers. This will go live at the start of May. The mobility and time sheet migration to CiAnywhere solution was also completed and tested. This will be presented to the project steering committee for approval to go live in mid-April. The Geographic information services area has successfully managed the transition to the new on line services for S149 certificates. The team is also managing the new spatial data changes and road naming proposals from the Calderwood development.

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Customer services operations were impacted by resource availability issues in January but was able to clear the backlog towards the end of January. The team has also successfully transitioned to on line services for customer requests and lodgement of Development Applications. The customer services team has also finalised the design of the new knowledge base and will start developing content for this in the next quarter. The changes to customer request system has almost been finalised and key staff are undertaking a review of the customer request system and cash receipting systems in April. An improvement plan will be established and initiated after this. The Records area has continued with finalising the on demand scanning options with Hunter Records Repository. A final specification and process has been agreed as part of the pilot and the project will commence once this has been agreed by the vendor. The team has also focused on developing a collaboration solution to manage the documents which are currently stored in the share drives. Initial focus has been the integration of subject and other key meta data values between the corporate document management system (ECM) and the SharePoint based collaboration platform. Once deployed the collaboration solution will enforce the use of corporate templates and ensure documents are categorised and stored in a compliant fashion.



Result Year To

Date

Percentage of approved projects completed on time, within scope and on budget

85% 80% 85% 90% 85%

4.2.4.01 Develop and implement an enterprise wi de Information Management framework which provides the right information in the right place in the right format

The Records department have continued to work with the new Document Management System ECM 4.03 and continued to provide training and support to new and existing users throughout the organisation. Quarterly Key User meetings are also being scheduled. These meeting encourage users to share knowledge and user tips, discuss issues and concerns and learn about system updates. The Records department continue to work consistently to review and streamline their information management processes in consultation with key users and stakeholders. Key User meetings have continued to provide a forum for key users to resolve day to day Records Management issues and provide prompt resolutions for users. Backlog digitisation of hardcopy files is continuing. The Records department completed the Hardcopy Scanning Pilot with Hunter Records Repository. The latest lot of recruitment in the Records department was completed in preparation for the hardcopy file relocation project prior to the move to the Civic Centre. Records has successfully ensured 95% of their document management and mail services are processed within the standard business day.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of incoming hard copy and electronic mail received by Records are distributed within one business day

95% 100% 95% 95% 96.67%

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4.2.4.02 Provide the organisatio n with information and communication systems which caters adequately for the needs of the users

The percentage of information technology (IT) support calls resolved within the service level agreements (SLA) were 86.10%. This was down on the previous quarter, where it was 94.83%, however it was still above the target of 85%. The reason for this decline was due to a higher demand than usual through January while staff numbers in IT were low due to leave. The lower SLA's were also impacted when the Microsoft Office 365 email to the cloud migration and Microsoft Office 2016 upgrade was occurring. There was an increase in questions, issues and troubleshooting through this period. This is expected during these kind of projects. The availability of IT systems during business hours was 95.95%. There was one significant outage that effected Council's email system. This issue was resolved within 24 hours. The Microsoft Office 365 email in the cloud project was successfully completed within time and budget, the effort to deliver this project from the IT was exceptional. The network upgrade project has recommenced with the a review of the requirements and design taking place.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of support calls are resolved with Service Level Agreements

85% 95.33% 94.83% 86.1% 92.09%

Percentage availability during business hours for core business systems, email, citrix and telephony

95% 99.19% 96.23% 95.95% 97.12%

4.2.4.03 Opti mise and enhance business efficiency through the use of the right technology

The Technology One eServices project for the Property and Rating system went live 15 March 2016. The eServices project now delivers more services to the external customer including payment rates and applications, lodgement of applications such as Development applications, 149 certificates, flooding certificates and vegetation removal just to name a few. Finalisation of the Dashboard in preparation for presenting to senior management in April is continuing. Work has progressed on the development of a data warehouse, with half of the statistics now built into the warehouse. This had significantly improved the speed of the Dashboard. Work on the data warehouse will continue over the next few months. It is anticipated that it will be released for staff use soon after. The Timesheet/Mobility project is reaching final stages of a proposed solution to be delivered to management for approval after extensive testing has been carried out in three areas of Technology One (T1). The areas tested were ciAnywhere, Resource capture within the Mobility solution or a new project Crew Management. Discussions are underway for the next T1 upgrade to occur in the second quarter of 2016.

4.2.4.04 Ensure the continued development and refinement of an integrated geographical information system for the provision and management of Council assets and land information

Integration of data from Assets to corporate spatial application is the subject of ongoing discussions with the Assets team. Systems and processes were built and deployed but adoption has dropped due to changes in staff in the Assets area.

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Land data layer in the geographic information system (GIS) is accurate and up to date. The team is also continually educating staff on the use and embedding of mapping into councils business processes.

4.2.4.05 Manage the accuracy of the Councils Land Information

Subdivision, Section 149 (S149) and Planning Proposals have been delivered within agreed time frames this quarter. The team has successfully tested and transitioned to the new on line service for S149 certificates and the electronic delivery. All land data elements have been processed accurately and verified via the spatial systems. The team has also been involved in the planning for improving accuracy of the name and address data.


Q1 Result


Date

Percentage of Section 149 Certificates delivered within statutory timeframes

90% 100% 100% 100% 100%

Finance

4.2.3.07 Implement Council’s sustainable financial strategy

There are a number of activities which have been undertaken with regard to Service Level Agreements (SLA). There is an increased the need for ongoing monitoring of SLA budgets and an adjustment to the SLA budget structure to improve visibility of funding available for planned work. This includes separating contractor activities such as stormwater quality maintenance from work performed by day labour. Further consultation with Councillors, as a part of the budget process, is also planned to inform about the risks associated with service level adjustments and to gauge the desired level of service on behalf of the community. This task has been recorded as amber as the implementation of the SLA’s has had some with difficulties. These include the work undertaken in the field is not being compared and reported against the prescribed levels of service in the SLAs; the implementation of the tablets is incomplete, the structure of the general and project ledgers needs to be reviewed. Complicating these issues is the loss of key personnel in the Asset Management team. No work has been undertaken on a Business Plan for SLAs as the focus has been on obtaining information on work completed versus planned work. It is unlikely with the shift in priorities a Business Plan will be developed this financial year. Benchmarking of costs attributed to the internal service level agreements is subject to more accurate apportionment of organisational overheads to operations and maintenance. Further work is planned later in the financial year to benchmark time and quality of maintenance undertaken by Shellharbour Enterprises. It is proposed that benchmarking be pursued for more services later in the financial year before the implementation of 2016/2017 Service Level Agreements. A specification is being developed to assist with the automation of monthly reports for Shellharbour Enterprises to update and submit to Infrastructure Services to understand the nature and quantum of the work being undertaken. This enables the assets team to have a greater understanding of the work which is being undertaken and whether or not there is sufficient correlation between the prescribed levels of service and the work performed. A reporting tool for mowing is currently being developed. Reporting on other service areas will remain outstanding. Schedules have been developed for operations and maintenance activities for the 2015/2016 financial

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year. Better alignment between budgets and respective activities is proposed to inform the budget limitations for planned work and potential adjustments to service levels delivered by Shellharbour Enterprises. Further benchmarking will be pursued later in the year.

1.1.2.01 Provide financial assistance in accordance with council's Financial Assistance, Sponsorship Policies and the Local Government Act

Meeting held in the last quarter and monies allocated as per policy by the committee.

1.2.3.02 Undertake actions to implement the agreed business and project plan for The Links

Following completion of the internal refurbishments, approval has now been given to replace some of the furniture in the area to further enhance the customer experience and thus generate further revenue. Council is continuing to procure the remaining three gaming entitlements. The machines installed prior to Christmas have been operating successfully. As part of the overall move to reduce costs and become more sustainable Links staff have been working with procurement and assets and projects staff to look at installing solar energy at facility. This will help reduce overall running costs for the Links. Work is continuing on other aspects for the business plan such as water storage and the subdivision. The subdivision Development Application will be lodged in the coming months.

4.2.2.12 Undertake actions to implement the agreed business plan for Project Octopus.

The Fit for the Future Workgroups were placed on hold during the first part of the quarter whilst a number of the staff involved in these groups were assisting with the preparation of the Council's submission to the Delegate. Now that this has been lodged, the workgroups have been re-activated and now continue to work towards financial sustainability.

4.2.3.01 Ensure the Long Term Financial Plan is provided in accordance with Statutory requirements

The preparation of Council's Long Term Financial Plan continued this quarter with the input of Council's capital works program, the refining of the Civic Centre model, and the calculation of borrowings being some of the more manual tasks carried out. Council's Operational Plan and Long Term Financial Plan were finalised in March. This included 10-year income statements, balance sheets and cashflow statements. A briefing was held with Councillors on 22 March to take them through the draft documents. The council report seeking Council's adoption of the Draft Operational Plan 2016/2017 and Draft Long Term Financial Plan 2016/2017-2025/2026, for the purposes of public exhibition was prepared for the ordinary Council Meeting dated 5 April 2016.

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4.2.3.02 To provide relevant financial information to Counci l

The 2016/2017 Operational Plan (including budget) was finalised this quarter with draft documents distributed at a Councillor briefing in March. The two stage budget process met its objective of ensuring the budget we prepared had a positive Operating Performance Ratio. Unfortunately, the two stage process didn't address the unrestricted cash position which was a substantial deficit after the first draft. Stage 3 was introduced to rectify this position. The December Quarter Budget Review was considered by Council in February while the March Review was commenced in late March. Staff were assisted with their budgets on an ongoing basis during the quarter. Monthly reporting was back up and running again for the month of January after a period where no reports were produced due to shortages in staff and high workloads. Council continues to invest surplus monies in accordance with the adopted investment policy. The returns for the quarter were above benchmarks along with Council's budget estimate, with an adjustment to the forecast to be made at the March Quarter Budget Review. Day to day processes in the areas of Accounts Payable, Accounts Receivable, Bank Reconciliation's and Taxation were carried out as per Council procedures and policies with any statutory deadlines being met.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of quarterly budget reviews reported to Council within 8 week legislative timeframe

1 1 1 1 3

4.2.3.04 The accurate and time ly production and collection of Council’s rate levy in accordance with legislative requirements and Council policy

The collection of outstanding rate debts has been carried out as per Council's Rates policy. The total percentage outstanding from the original levy has reduced from 46.82% at the beginning of January to 25.2% at the end of March. Supplementary rate valuations have been processed when received during the quarter except for those dated after 5 December 2016. As at the end of March there were 9 Supplementary notices outstanding. The processing of Supplementary notices will be up to date by the end of the next quarter. Section 603 certificates and property transfers continue to be processed in an efficient manner. During the third quarter, 328 Section 603 certificates and 492 property transfers were processed.

4.2.3.05 Provide strategic financial information to Council and community

All statutory accounts were lodged on time. The results of the Audit were presented to Council and Audit, Risk and Governance Committee. There were no material matters arising from the audit which was pleasing. The government has signalled changes to the audit regime for local government with the audits coming under the control of the Auditor General. It is likely that Council's will still contract out the audits to private providers however the Auditor General is likely to have closer oversight and will also give direction on the auditing of special areas of interest. Council's financial sustainability plan and its implementation has commenced through the Project Octopus group. There have been a number of work streams set up to look at activities such as asset

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management, depreciation and in particular useful lives, employment costs, accounting treatments and the like. This is a cross organisational group and work will continue throughout the year. There was a disruption to the work groups early in the quarter whilst a number of key staff were engaged in working on the submission for the Council to remain standalone was prepared and lodged with the Delelgate. This was a significant piece of work, with a strong case being argued against the proposed merger. The work groups have now recommenced. As a result of Fit for the Future Council has changed its approach to the preparation of the annual budget. Groups have been given a budget bottom line to work through. The bottom line is aligned to Council's Fit for the Future bottom line and means that Council will be in a position to meet the financial sustainability ratios. The 2016/2017 Budget/Operational Plan/ Long Term Financial Plan have now all been completed and will go to in April Council and put on Public Exhibition.

4.2.3.08 Manage purchasing and supply functi ons to ensure best value procurement of goods and services supplied to Council

Procurement is continuing to progress the Roadmap objectives. The fleet management review was completed during the quarter with final report to Manex expected in April. Implementation of category codes to enhance reporting is one step closer with the Stores’ review of new numbering, descriptions and categorisation of stock items complete. Targeting implementation across the remainder of the organisation during the next quarter. The new indoor corporate uniform procedure was implemented during the quarter with over 60 staff requesting orders thus far. Apart from low stock at the supplier’s warehouse initially the feedback received has been very positive. The process of how new vendors are added into Technology One to become active suppliers is under review. Tighter controls are required which will include a documented procedure outlining the process of adding or amending supplier banking details. Current regional procurement initiatives (IPJO), include the Tree services tender which was released during the quarter. Services include tree management, pruning, felling and stump grinding. Tender closes April 4 with evaluations progressing thereafter. Security services and cash management tender to be released during next quarter. Other joint tender priorities being scoped include processing and disposal of waste materials, cleanout of gross pollutant traps, line marking, plant hire and traffic control, sanitary services and pool chemicals. Formal meetings attended during the quarter included the Illawarra Pilot Joint Organisation procurement officer's network meetings.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of Actions completed from Council's procurement Roadmap

1 2 1 1 4

Number of policies/procedures reviewed/created 1 1 1 2 4

Percentage of regional procurement initiatives that Shellharbour Council participates in

75% 100% 100% 100% 100%

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Shellharbour Enterprises

4.2.1.12 Lead and manage the Shellha rbour Enterprises Directorate in order to meet the Objectives of the Community Strategic Plan

Council’s Parks Aquatics Landfill and Stadium group (PALS) and City Services team have implemented 13 of the 18 actions from the Efficiency Improvement Program which is on-track to complete 17 of the 18 actions by end of the financial year. The action that is not planned to complete is introduction of the 7-day roster for the waste depot due to the announcement of the proposed Council merger proposal and adherence to the Section 23A guidelines.

4.2.6.05 Support the emergency services through participation in the Local Emergency Management Committee and participation in planning, development and review of Emergency Management Plans for Shellharbour City as part of the Illawarra Region

This quarter Council officers have supported the Illawarra Local Emergency Management Committee with active attendance at the 2 March quarterly meeting where there were a number of regional issues discussed with Committee with actions for Committee members for the next meeting in July.

4.2.6.06 Provide financial assistance and resourcing requirements, as necessary, to enable emergency service agencies to effectively perform their responsibilities in our city

Council officers have met with Rural Fire Service (RFS) representatives on the draft 2016-2017 financial budget for the emergency services. The 2016-2017 RFS budget has now been finalised and has been included in the Council's overall 2016-17 draft budget.

PALS

1.2.1.03 Ensure that our local pools and beaches are kept safe, clean and well maintained throughout the year

This quarter has seen councils aquatic and lifeguard services move from the busy mid-summer period into the winding up of our lifeguarding operations. All operations have witnessed a good period with the community and visitors enjoying the aquatic facilities we have on offer. In this period, we offered the community, open days at Albion Park and Oak Flats Pools, Intensive Learn To Swim program and squads, women's swimming group, aqua aerobics classes, pool parties and we also continued the weekly routine of our inflatable pool toy across all pools. February is a busy time with school swimming carnivals and all school carnivals were successfully completed. Albion Park Swimming Club hosted their own very competitive South Eastern Swimming Association (SESA) time trial carnival which enables swimmers from all areas the opportunity to qualify for NSW Country and NSW State Carnivals. NSW health conducted random cleanliness and water quality checks. All checks were positive and clear. This period also saw the Shellharbour City Council beach lifeguard service operating to peak times of the season. The patrolling found mixed weather and beach conditions during this period. The beaches have been run effectively and with no major incidents to report.

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Presently, Oak Flats and the Beverly Whitfield pool remain open and our beach lifeguard service will continue until the end of the April school holidays.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of visitations to the City's pools 50,000 10,403 59,197 70,520 140,120

Percentage of hours the pools were open compared to pool opening hours

95% 100% 97% 100% 99%

1.2.2.04 Lead and motivate the Parks and Sporting Facilities Group to deliver efficient services to the community

The Business Plans for the Nursery and Stadium have commenced into implementation phase. In addition, all areas within the Parks Aquatics Landfill and Stadium group (PALS) are reviewing expenditure including employee costs and other expenditure at the end of Quarter 3 budgeting cycle. Seasonal activities have shifted to winter works programs and winter operating times.

1.2.3.03 Manage and promote the use of the Stadium for a range of sporting, community and exhibition activities to ensure maximum use of the facilities and increased financial return

The stadium has finalised its Business and Marketing Plan. The plan was developed in consultation with and endorsed by the Business Unit Advisory Board and Council's executive management team. The stadium has seen increased patronage with birthday parties and other non-sporting events. Sporting events and regular sports competition continue to be a strong focus. Focus is on sourcing tenants for the empty office spaces within the stadium to offset some of the overall cost of the running of the stadium business.


Q1 Result


Date

Number of hours the Stadium was utilised 250 250 250 250 750

Achieve budgeted income 70 76 70 75 73.67

2.1.2.02 Manage noxious and environmental weed infestation within the Council area

Council has worked closely with the Noxious Weeds Authority this quarter. Council has assisted the authority with grant applications for works which will occur within our Local Government Area if the grant is successful. Council has provided staff contracted to the authority to assist with weed management. This has helped to speed up some noxious weed spraying programs.

3.1.1.04 Operate a profitable, sustainable Nursery that provides quality service

The nursery has finalised its Business and Marketing Plan. The plan has been developed in consultation with and endorsed by the Business Unit Advisory Board and Council's executive management team. Actions from within this plan have commenced.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Achieve budgeted income 80 75 75 75 75

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3.1.1.05 Operate the Sandmine as a business until such time as the accessible sand resource is depleted

Business activities are limited to rehabilitation of the sand mine. There is no longer product available for sale. Council is progressing action for the possible extension of sand mining at the facility.

4.2.6.07 Implement actions from the Bushfire Management Plans for Public Reserves

This quarter staff have focused on annual weeds maintenance within Council's Asset Protection Zones as per the Plans of Management. Planning and on-ground preparation work has taken place in Blackbutt Reserve in preparation for the prescribed burn to be carried out by the NSW Rural Fire Service (RFS). RFS have also provided grant funding to carry out additional Asset Protection Zone works in several locations across the city. This work has also tied into works prescribed in the Plans of Management.

The Links

1.2.3.01 Operate and maintain a qua lity golf course and hotel facility whilst delivering Business Plan actions to improve the business viability and service delivery of The Links Business

Golf round numbers have dropped below target in the last quarter due to the course renovations currently in progress and the impact that is having on players. Management sees this as a natural impact of the construction work and a high level of comfort exists that golf rounds will rebound once the course is fully operationally in late 2016. The sports bar trade has been strong and reflects the positive impact the recent building upgrades to this area is having. Overall business trade should improve further once the lounge area receives its new furniture along with its new decor theme upgrade which is planned over the next quarter.

Key Performance Indicator Quarterly Target Q1 Result Q2 Result Q3 Result Year To

Date

Number of full paying members 0 0 0 0 0

Number of pay to play members 0 0 0 0 0

Number of golf rounds 8,500 7,348 7,995 7,312 22,655

Gross bar revenue 260,000 272,941.62 355,577 286,293 914,811.62

Green fee and membership revenue 210,000 198,106 242,021 169,018 609,145

City Services

3.1.1.07 Supply and maintain Council's plant and equipment fleet to assist in the provision of efficient services to the community

City Services continued to deliver the plant replacement program with funds available in the 2015/2016 capital works program. Replacement plant were initially reviewed at the start of the year with 11 plant prioritised in order of need and age including one additional to addressing increasing maintenance requirements in open spaces.

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Of the 11 items prioritised, six have been delivered including five mowers and a trailer. Orders have been placed for a replacement street sweeper, crane truck and two other trucks. These are due in late April/May With car and utility purchases on-hold, Council officers are utilising the available funds to procure other high priority plant, these include replacement of a wheel loader for the Waste Depot operations, three lifeguard vehicles, four tractor attachments, two out front mowers, wood chipper, stump grinder, cemetery mower, skidsteer loader and reach mower. Council is utilising the Local Government Procurement process to gain quotes for these items. This process is minimising the impact of the backlog of plant replacement. To complement the replacement program an assertive maintenance program continues to be implemented with the majority of the work being proactive to provide the best availability of plant and equipment to staff to assist in the provision of delivery of efficient services to our community.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of plant and equipment procured that have completed needs evaluation

100% 100% 70% 100% 90%

Percentage of work plant and equipment that is proactive 50% 70% 70% 70% 70%

3.1.1.08 Supply and maintain Council’s vehicle fleet to assist in the provision of efficient services to the community

The fleet replacement program for the 2015/2016 budget has been established but put on-hold until the Fleet Review has been completed in April 2016. Options from the review are currently being assessed with supplier through Council's Finance Group. No vehicles have been purchased in this quarter until results of the fleet review process has been completed and approved by Council executive group.

Key Performance Indicator Quarterly Target Q1 Result Q2

Result Q3

Result

Year To

Date

Percentage of vehicles procured that have completed needs evaluation

100% 100% 100% 100% 100%

Percentage of work on vehicles that is proactive 50% 70% 100% 50% 50%

2.2.3.03 Provide and maintain a fleet of vehicles, plant and equipment that contribute to lessening the environmental harm

City Services continued to implement the actions of the last quarter including the consideration of environmental impacts in our decisions around our Vehicle Policy and our Purchasing Policy. The key items that are considered are, type of fuel, fuel consumption, CO2 emissions, noise, vibration and recycle ability of the Plant Replacement Budget. An example of actions in-line with strategy is the recent heavy duty loader purchase for the replacement of existing loader. The newly purchased heavy duty loader has a cleaner, and more fuel efficient engine The car and commercial vehicle budgets are currently on-hold and no cars or utilities have been purchased in the quarter awaiting the outcome of Council's Fleet review process. The vehicle review is considering the key items in their assessment of suitable suppliers for our fleet.

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3.1.1.09 Carry out quality, cost effective private works as required on a fee per service basis

Large volume of restoration works was completed over the period. Extra works have been requested under the agreement with Wollongong City Council for the maintenance of the community service buses. Road Maintenance Contract with Roads and Maritime Service (RMS) continued over the period with additional works approved through the variation process including pedestrian fencing and reseal. Discussions held with RMS for opportunities under works planned for Croome complex as part of the Albion Park Highway Bypass Project.

3.1.1.12 Ensure the City Services Section delivers efficient and effective services to Council and the community

Strong performance in the delivery of the internal Service Level Agreement (SLA) continued along with delivery to budget in the capital works program. The delivery of these services was achieved through strong collaboration and communication with external organisations, the community and other internal groups including attendance at Environmental Protection Authority's civil works information days and the welcoming of a new group of apprentices into the City Services team.

Illawarra Airport

2.3.6.01 Maintain Illawarra Regional Airport in compliance with Civil Aviation Safety Authority and Aviation Transport Security regulations

Works continued this quarter on the implementation of the action plan coming out of the endorsed Strategic and Business Plan including the advertisement of the Airport Managers position, Regional Public Transport Review continued and seeking of external funding. All works are progressing well, however the establishment of a Temporary Cafe has slowed. Works commenced on the internally funded priority works program with the resealing of the western end of runway 08/26 (east/west) has been complete with future works programmed for next financial year. Works continued on addressing the airport's corrective action list which includes items raised by Civil Aviation Service Authority and through Council inspections with over 80 items of various priority levels on the list. A major review of the aerodrome manual has commenced and is due to be completed next quarter which will allow the removal of several items on this list.



Result Year To

Date

Ensure compliance with CASA Regulations 100% 88% 88% 88% 88%

Percentage of programmed strategies implemented 100% 75% 75% 80% 80%

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2.3.6.02 Provide support to the Business Unit Advisory Board.

Ongoing support has been provided to the Business Unit Advisory Board which enabled the Board members to receive and review business improvement data across the Council's business units, at its recent meeting in March. The Board also received draft information outlining the steps taking place related to the Shell Cove Waterfront area's business activities.

3.2.2.02 Implement and encourage business development of both existing and new tenants at the airport

The Council approved airport business plan continues to be implemented with the end aim being additional hangar spaces and employment within the precinct. A number of key actions are taking place related to this plan such as the following:

• A concept plan has been received setting out details of new jet and helicopter precincts • The recruitment of a new airport manager is under way. • 3) A catchment survey has also been commissioned but not yet finalised to determine if a

demand does exist for a regional passenger transport service out of the airport.

Tourist Park

3.1.1.06 Ensure the Shell harbour Beachside Tourist Park attracts patrons and is efficiently managed and operated as a quality and profitable business

All occupancy and financial results were solid in the March quarter. The financial result year to date is more than 10% ahead of budget as a result of excellent visitation and good cost control. During the quarter, visitors were able to enjoy the new camp kitchen and the eight new beach huts now in use. These changes have attracted excellent feedback and assist in Councils' aim of operating a modern Park with a variety of accommodation types.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage occupational rate for cottages/cabins 67% 62% 57% 75% 64.67%

Percentage occupational rate for tourist sites 88% 67% 89% 80% 78.67%

Profit/loss percentage return compared to budget forecast 100 105 137 94 112

Shell Cove

3.2.1.02 Facilitate the construction of the Boat Harbour and establishment of the marina

Construction during the quarter was generally in accordance with the program, being assisted by long periods of dry weather. Excavation of the inner harbour has been completed, with efforts focussed on the outer harbour. An estimated 81% of the harbour has been completed. The relocation of acid sulphate soils into the bottom of the inner harbour continued. Meantime, the placement of surcharge mounds on the lands surrounding the eastern harbour edge

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continued, with positive compaction testing of the existing mounds recorded. Visually, the key activity is the construction of the harbour edge treatments, with a total to date of 315 timber piles and 49 concrete piles. This infrastructure is for the boardwalk and main wharf. Benching and rock treatment continued on the revetment walls. The marina layout was reviewed, following consultation with a panel of marina operators. It is undergoing a preliminary engineering re-design in order to assist the next phase.

3.2.1.03 Facilitate the development of The Waterfront pr ecinct, including the town centre, tourism facilities and residential land

The draft Town Centre Master Plan reached a point of general agreement over the spatial layout and its main component types. The following progress occurred on each item of The Waterfront:

1. Residential - Subdivisional works continued on program to deliver the lands for the first sales in Precinct B1/C1. To date, 53 lots (off-the-plan) were sold on debut. The planning of Precinct E continued.

2. Harbour Boulevard (Stage1) - Roadworks progressed, especially given the very favourable dry weather conditions.

3. Retail Stage 1 - The DA was lodged for the supermarket and shops, and Council commenced its assessment. Council agreed for the site to be sold to Australand to develop in accordance with the agreed concept plans.

4. Hotel - A consultant was appointed to report on hotel uses that will inform the carparking requirements of the concept design, as well as for advice on its sale methodology. The results will inform the next phase.

5. Library/Community Centre/Visitor Information Centre - Council continued to investigate this in order to inform the next review of the Section 94 Contributions Plan. The method of delivery of it is being considered.

6. Marine Precinct - An investigation commenced on the alternatives, and includes preparation of design concepts. These are based on the recent input from industry and best practice.

Council sought a consultant in order to assist in the evaluation of investment and business opportunities, as a result of the directional guidelines from its Senior Executive Group and Business Unit Advisory Board.

Shell Cove Marina Open Day

In March, the Shell Cove Project hosted a Marina Open Day of the harbour-site for the community with over 500 members of the community attended the event. The event provided the community with an opportunity to visit the construction site and gain information about this very unique project.

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Executive Services

4.2.1.09 Effectively manage the organisation to ensure the community’s and Coun cils goals are met

Manex Meetings commenced on 27 January 2016 and continue to take place weekly. The General Manager has now established a Senior Management Team (SMT) meeting which includes Manex and Group Managers. The first SMT meeting was held on 8 February 2016 and the group will continue to meet every three weeks following each Council Meeting. The General Manager's briefings were held on 9 March 2016 and 21 April 2016. The General Manager spoke on the merger proposal and there were presentations on Finance, Shell Cove, Warilla Library and regular updates by the Media Officer, Group Manager Organisational Development and IT. The General Manager published his blog weekly with the main focus for January and February being to provide updates to staff on the merger proposal. The blog also outlined details of various staff projects and activities such as Office 365 and the Performance Management System Working Group. The General Manager also met with indoor and outdoor staff in January in relation to the merger proposal.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number MANEX meetings 12 15 13 11 39

Number of General Manager briefings 1 3 3 2 8

Number of General Manager Blogs 10 13 12 12 37

Number Staff meetings/information sessions 9 8 3 2 13

1.1.1.01 Co-ordinate a diverse range of community and civic events

There were eight major events held in the January – March quarter, these events included:

• Pool Open Days - There were two pool open days in January, Albion Park on 8 January and Oak Flats on 15 January. Albion Park Pool Open day attracted more than 500 people, while Oak Flats had a wet day and the crowd was much smaller. The events included Library by the Lawn, Youth Services, pool inflatable, and a free sausage sizzle.

• Shellharbour Super Slide Day - The slide day was held on Saturday 9 January at Reddall Reserve, the event was heavily promoted by WAVE FM and the weather was perfect. The event attracted a large crowd with more than 1500 people attending.

• Good Neighbour Movie Night - A movie night was held on Saturday 6 February at Dawes Park Barrack Heights. The event included backyard games such as giant jenga, connect 4 and croquet, along with showing the movie 'HOME’

• Feel the Love, Free Family Fun Day - As an extension to the community rally held on Sunday 14 February, council held a free community event from 12.30pm - 2pm at Reddall Reserve. The event included local entertainment, stalls, free rides, free face painting and a free animal farm.

• 2527 Love your City - An event was held on Saturday 20 February, which included a community rally at Mood Park Albion Park from 12 - 2pm. The event included local entertainment, stalls, free rides and free face painting.

Key Performance Indicator Quarterly Target Q1 Result Q2 Result Q3

Result Year To

Date

Number of community and civic events held 4 4 6 5 15

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Australia Day Ce lebrations The Australia Day Celebrations were held on Tuesday 26 January at Reddall Reserve, Lake Illawarra. The citizen ceremony pledged 11 new Australian Citizens, with the ambassador address by Donny Galella. The Citizen of the Year was awarded to Deborah Hamilton and Young Citizen awarded to Aaron Newton. The event had free activities which included face painting, animal farm, pony rides sand modelling, thong throwing, entertainment and much more. The Australia Day breakfast was a huge success with more than 3,000 breakfasts sold on the day raising a total of $10,166.72. Teams of volunteers from Oak Flats Lions Club, Oak Flats Lioness Club, Dunmore Rural Fire Brigade, Shellharbour Rotary Club and Warilla/Barrack Point Surf Club prepared and served food on the day. All proceeds raised from the sale of breakfasts were given to local community groups from Shellharbour City.

These include Oak Flats Lions Club, Oak Flats Lioness Club, Dunmore Rural Fire Brigade, Shellharbour Rotary Club,

Warilla/Barrack Point Surf Club, St Vincent de Paul Society - Albion Park, Shellharbour City Arts Society Inc,

Shellharbour City U3A, Australian Seabird Rescue and Albion Park Rail Physical Culture Club, Shellharbour Physie &

Dance.

Amp It Up was again conducted as part of the Australia Day event. Four youth bands performed on the day and the event was well received by the young people in attendance. This was a great opportunity to profile local young artists.

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2.3.1.05 Engage with stakeholders and the community throughout the delivery of the Shellharbour Civic Centre

During January a media release was issued as an update to the construction of the civic centre and its rightful continued construction during the State Government's council merger proposal process. The construction company, ADCO, is providing the neighbouring residents with an update of the site activities with a newsletter delivered to each home, once a month. The images taken by the automatic camera and computer system is being uploaded to the website as a visual update of the construction. Public art and signage are still under design phase with internal stakeholders and is ongoing.

4.1.1.01 Provide necessary resources to enable the Mayor and Councillors to undertake their statutory role

During the quarter, 12 briefings were held to discuss proposed Domestic Waste Management Charges for 2016/2017 relating to the transitioning to the weekly Food Organics Garden Organics collection, amendments to the Local Government Act, The Links, Social Impact Assessment Policy, Shell Cove Feasibility Report, workshop on rate modelling on impact of land revaluation, Elliot Lake Floodplain Risk Management Study, Shellharbour Development Control Plan Housekeeping Amendment 1, Nursery and Stadium Business Plans, cost and design of Shell Cove Library and Community Centre, Tourism, Operational Plan and Long Term Financial Plan, Croome Sporting Complex Masterplan, Shell Cove Project, Community Safety Strategy and Domestic Violence Strategy. Mayor Cr Marianne Saliba attended the South East Australian Transport Strategy Inc. meeting in Victoria from 18-19 February 2016 and the Australia Local Government Women’s Association State Conference in Gunnedah from 10-13 March 2016. During the quarter the Mayor attended meetings with the Lake Illawarra Estuary Management Committee and Illawarra Pilot Joint Organisation. Cr John Murray attended a meeting with the United Independent Pools on behalf of the Mayor. A total of six newsletters were forwarded to Councillors providing them with information of interest such as the Shellharbour Civic Centre updates, pool open days, Warilla Library, Shellharbour boat ramp, Shellharbour pools, The Waterfront, The Links, Waste Depot, Traffic issues with the City and sportsfields. For this quarter, there were three Ordinary Council Meetings held and the business papers and minutes were prepared and published on Council's website. There were two Extraordinary Council Meetings held in January dealing with matters relating to the proposed merger of Shellharbour City Council with Wollongong City Council.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of ordinary council meetings held 4 4 5 3 12

Councillors attendance at training/development 1 4 14 14 32

Number of meetings held with Ministers and Members of Parliament (MP’s)

1 3 1 3 7

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4.1.2.02 Provide dynamic and engaging website for customers

The focus of the website in the beginning of the quarter was to provide information to the community on the proposed merger with Wollongong City Council. Mid quarter saw a review of several sections including Events, News and further updates to merger information. A review of the sites statistics for the previous quarter highlighted an anomaly in the reporting of information and it is noted that customer visits, that is a single visit including any number of page views or actions performed by a specific user during one session, for the Oct-Dec 2015 quarter was in the order of 47,000, improving the following quarter to 49,301. Approximately 40% of our users are using mobile devices to access our site which is encouraging as our new website is geared to accommodate mobile access. Our Facebook account is yielding traffic to our website and our top five pages for the quarter were: Home; Current Vacancies; Jobs at Council; Development Applications and Contact Us.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of customer visits to the Shellharbour City Council website

60,000 66,304 68,000 49,301 183,605

4.1.2.03 Provide opportunities for genuine and representative Community engagement in decision making

This quarter the Communications Department has focused on the coordination of activities and materials to support the Councillors in the merger information campaign. A number of activities have been undertaken with the broader community and staff engagement including the ‘Share the Love’ event held at Reddall Reserve. Additionally, this month saw a transition between staff members allocated to this task and as such, minimal community engagement activities were conducted during the transitional period. However, this month, engagement did still occur with various departments of Community Connections, this included assisting in the planning of Harmony Day activities. The Communications Department has coordinated activities and materials to support the Councillors in the merger information campaign, this has included various E-updates on Council’s website and Facebook page. Additionally, within the quarter, web engagement maintained via Council’s homepage and the engagement portals, ‘Have Your Say’ and ‘Peak Democracy’. Working in collaboration with Council's Web Content Officer there has been on-going development of Council’s web page engagement this includes adding information related to 'Harmony Day’, 'Paws Pet Therapy' and 'Junior Coastal Tours'. Staff were continually encouraged to utilise the Communications Department in early planning for Community Engagement activities. As a result, a total of three different departments – Community Connections, Waste Management and Engineering Services approached the Communications Department seeking advice and information regarding strategies of community engagement and consultation. A highlight of the quarter included the public engagement conducted in partnership with Waste Management’s ‘FOGO' (Food Organics Garden Organics) pubic engagement sessions. The community engagement officer advised and assisted the Waste Management department in the implementation of public engagement strategies, that were effectively employed by the Waste Management department via information dissemination to the public during the department’s FOGO barbeques. Council endeavours to provide all Council Reports in Open Council, however, there are occasions when the Councillors must be provided with confidential information. During this quarter, there was one report considered in confidential session relating to the sale of Shell Cove Retail Land Stage 1 to Australand. There were 25 Addresses to Council with the main item of interest relating to the proposed merger between Shellharbour City Council and Wollongong City Council.

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Addresses to Council is one way in which the Council is able to hear the views of members of the public regarding an item of business scheduled to be considered at the Council Meeting. The Council encourages the public to participate in this forum.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of confidential reports 5 2 3 1 6

Number of public addresses to Council 12 13 15 25 53

4.1.2.04 Communicate and promote a positive image of Council through marketing, media and advertising

For the three months between January and March 2016, there were 158 graphic design jobs completed and 47 media releases. Major tasks this quarter included significant design work relating to the merger awareness campaign, including a logo, branding, newsletter, flyer, campaign merchandise, posters, web graphics and signage. More than half the media releases issued during February related to the merger proposal of Shellharbour and Wollongong city councils. These included the consideration and then Council's decision to implement a Interim Heritage Order on the city's borders, the promotion of the 2527 - Love your City event, the IRIS results and the GIPA request results. We supplied information and images for a 'Save Shellharbour' website, wrote several letters to the editor in response to editorial pieces published in the Illawarra Mercury and produced a four-page newsletter providing information to the community about some of the forecast financial impacts to the city and its residents of the merger proposal, as put forward by Morrison Low Consultants. We organised delivery with community groups, residents and staff (in their own time). We also produced a full page letter of thanks from Council to the community, outlining its position and actions that could be taken after the date of submissions had closed and produced four columns for Lake Times/Advertiser that focused on the possible implications of a merger proposal and action that could be taken by the community. Media releases were also issued to advise the community of the Food Organic Garden Organic (FOGO) collection information sessions, burning planned for Blackbutt Reserve by the Rural Fire Service, Warilla library design going on display, the new E-Services online payment and form lodgement system and the launch of Paws n' Tales children reading program. Council events, including Seniors Week, Harmony Day, International Women's Day were also promoted, as well as the Learner Log Book Run, chook keeping workshop and the Stormwater Coaches program. Speeches were written for the Sports Star of the Year Awards for the General Manager and the Mayor, the Rotary Club Golden Jubilee, International Women's Day event at the PCYC, the Big Move event for Cr John Murray and the opening of the Seniors Week event, Mayor at the Paint the Town Read (x3) and the UDIA luncheon.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of ads placed 20 83 85 69 237

Number of media releases 45 45 40 47 132

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4.2.1.05 Ensure compliance with relevant legislation through policies, pro cedures and frameworks

The percentage of reviewing policies within 12 months of their proposed review date has not increased this quarter due to staff redirecting their efforts towards the Boundaries Commission report on the proposed merger with Wollongong City Council. The Draft Strategic Acquisition of Land Policy was reported to Council on 3 February and subsequently placed on public exhibition calling for submissions. The total number of gifts and benefits declarations submitted was 16, of these 3 were accepted and 13 were declined. The number of Secondary Employment declarations received and approved this quarter was 10.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Percentage of complaints acknowledged within 10 working days of receipt

85% 95% 87% 100% 94%

Percentage of policies reviewed within 12 months of proposed review date

80% 31.7% 55% 55% 47.2%

4.2.1.06 Make information readily available and comply with the Government Information Public Access Act (GIPAA)

All new development applications and associated documents submitted to Council this quarter have been made available to the public on Council's website, with the exception of residential floor plans, copyrighted material, personal or confidential information. The new e-services application on Council's website makes it easier for the public to view details of developments within the City. This application has advanced searching capabilities, applications can be searched by a date range, type of application, suburb and street. Seven new Formal Applications for Access to information under the Government Information Public Access Act (GIPAA) were received this quarter. Two decisions were made to release the information requested in full. Two were dealt with informally as they were related to development application information. Two decisions were made that the information requested was not held by Shellharbour City Council. One application was declared invalid as they did not provide enough information to enable us to clearly identify the information sought. Council continues to make government information publicly available on its website and either free of charge or at the lowest reasonable cost.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of applications for information dealt with Formally 10 3 3 7 13

Number of requests for information dealt with informally 150 86 85 153 324

Number of documents made available to the public under Council's Proactive Release Program

1 9 9 9 27

Percentage of formal access to information applications processed within statutory timeframes

85% 100% 100% 100% 100%

Number of formal access to information applications refused in full

2 0 0 0 0

Number of reviews requested of formal request for information decisions

2 0 0 0 0

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4.2.4.06 Use available technology to effectively communicate with the community

Social media has been used to promote matters relating to safety, Council initiatives, activities and events during the quarter. Posts were made about the work of the cleaners at the area's local parks and facilities during the summer break, nursery plants for sale, illegal dumping and Council's position on the merge proposal. Safety warnings were made about rock fishing, wasp nests in a car park and beach closures due to large seas. Event promotions included Movies under the Stars, Australia day, Warilla pool inflatable fun, the Butterfly House, pool open days, Albion Park library open day, International Women's Day, Stormwater Coaches environmental program, Earth Hour, Harmony Day, Seniors Festival, Chook keeping workshops and snake safety. The Food Organics Garden Organics (FOGO) community information sessions have been promoted, as well as new positions vacant, learner log book run and the launch of the Paws n' Tales reading program. The new website continues to be run with relevant staff updating information and edits made before approvals made by the Communications Department. Regular updates include the sports field closures, mowing schedules, news stories and the merger proposal and civic centre pages. A new E-Services portal has been launched and added to the website, altering some need for other pages that will continue to be modified.


Q1 Result

Q2 Result

Q3 Result

Year To Date

Number of friends on Facebook 30 282 533 349 1,164

Number of followers on Twitter 30 160 70 67 297

Number of social media updates on Council's main Facebook and Twitter sites.

30 133 175 136 444

4.2.5.02 Implement the Business Continuity Plan (BCP)

This Business Continuity Management Plan has been developed to assist Shellharbour City Council staff to restore business operations in the event of an unscheduled business disruption or catastrophic event such as the total loss of Councils administration building. The plan covers all mission critical business functions and mission critical IT systems and applications. The Business Continuity Management Plan was reviewed and updated in December 2015. A desktop exercise of the Business Continuity Plan was scheduled to occur in February 2016. Management have agreed to postpone the exercise until there is more certainty regarding the proposed merger of Shellharbour and Wollongong Councils.

4.2.5.03 Implement the Enterprise Risk Management Framework (ERM)

Council's enterprise risk management framework provides a disciplined and structured process that integrates risk mitigation strategies and risk controls to improve organisational resilience. The framework provides a systematic application of risk management to maximise community outcomes and to help manage any uncertainty associated with Council achieving its corporate objectives. Development of the new system for recording and reporting on risk management activities continued

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during the quarter. The project has been delayed by 3 months due to limited availability of the contractor. We anticipate Initial user testing to commence in June 2016. The Manager Risk Management Services provided an update report to the March Governance Risk and Audit Committee meeting on the current status of Council's enterprise risk management framework.

4.2.5.04 Manage Council’s insurance portfolio to the maximum advanta ge of the Council

Council's insurance portfolio provides protection and assurance for the organisation against unforeseen financial losses arising from its activities, including but not limited to: public liability, property damage, motor vehicle damage, workers compensation and Councillors and Officers liability. There were no insurance policies renewed during this reporting period. The risk management team have been collating the information requested by our Insurance Brokers - Willis to ensure proposal forms are completed in a timely manner and insurance policies are renewed prior to expiry.

4.2.5.05 Provide workplace health and safety systems and information for Council staff regarding relevant legislation

All open workers’ compensation claims have been reviewed with StateCover, our insurer. During the quarter there were seven new claims and six claims finalised. The Work Health and Safety Policy and the Smoke free workplace Policy have both been reviewed and adopted by MANEX. Safety audit forms for vehicles, personal protective equipment and work sites have all been reviewed. The Safe Work NSW monthly newsletter, safety alerts, links to webinars and reviewed codes of practice have been emailed to all managers for distribution to relevant staff.

4.2.5.06 Manage programs targeted at risk minimisation and source appropriate insurance arrangements for residual risks

Council's risk management framework outlines a number of programs targeted at risk minimisation. These include but are not limited to: Council's internal audit plan, monthly risk management update reports to Manex, reports prepared for the Governance Risk and Audit Committee on strategic and emerging risks, outstanding audit recommendations, control self-assessments and risk improvement strategies. The Manager Risk Management Services commenced a strategic and emerging risk review with senior management during the reporting period. The results of the review will be tabled at upcoming Manex and Governance, Risk and Audit Committee meetings. Monthly risk management reports have also been provided to Manex and Council's Governance Risk and Audit Committee regarding Council's insurance arrangements and claims experience.

4.2.6.04 Implement the Emergenc y Management Arrangements

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The combined Illawarra Local Emergency Management Committee (LEMC) is supported by representatives from Shellharbour, Kiama and Wollongong Councils. The Committee meets three times per year and it provides information, systems and support for multiple combat agencies such as the Rural Fire Service, State Emergency Service, Police and NSW Fire and Rescue. The Alternate Local Emergency Management Officer (LEMO) for Shellharbour City Council attended The Local Emergency Management Committee Meeting held at the Emergency Operations Centre in Albion Park on 2 March 2016.

Simon McArthur and Associa tes | 112 Cleary St , Hamilton NSW 2303 | 0427 240 664 | s [email protected] | www.smcarthur.com

Feasibility Report

Supporting a Feasibility Study for an

Interpretation Centre at Bass Point, NSW

Issued 9 November 2015

FEASIBILITY REPORT, SUPPORTING A FEASIBILITY STUDY FOR AN INTERPRETATION CENTRE AT BASS POINT, NSW 2

A u t h o r s h i p Prepared by:

Simon McArthur and Associates Pty Ltd

112 Cleary Street, Hamilton, 2303 (NSW)

Tel.: 61 427240664, Email: [email protected], www.smcarthur.com

M o r e i n f o r m a t i o n

Title: Feasibility Report supporting a Feasibility Study for Interpretation Centre at Bass Point, NSW

Prepared for Shellharbour City Council

For more information contact:

Shellharbour City Council

Locked Bag 155, Shellharbour City Centre, NSW 2529

Telephone: (02) 4221 6093, Website: www.shellharbour.nsw.gov.au

C o p y r i g h t

All rights reserved. This publication may not be reproduced in whole or part for education or non-profit

purposes without the special permission from the copyright holder. Acknowledgement of the source must be

made and Simon McArthur and Associates would appreciate receiving a copy of any such application.

Copyright 2015 Simon McArthur and Associates Pty Ltd

T a b l e o f C o n t e n t s

EXECUTIVE SUMMARY 3

1. INTRODUCTION 5

2. THE PROPOSAL 7

3. FEASIBILITY ASSESSMENT 17

4. SOCIAL AND ECONOMIC BENEFITS 30

5. CONCLUSION 31

A t t a c h m e n t s

A Artefact requirements for storage, care and display

B Models used at existing Aboriginal Cultural Centres across Australia

C Identification and assessment of alternative experiences

D Alternative locations for Interpretation Centre

E Alternative governance models

F Tourism NSW segmentation system


E x e c u t i v e S u m m a r y

P r o j e c t o b j e c t i v e s

The objectives of this project are to:

1. Identify options for a Keeping Place, leading Aboriginal interpretation experiences and a

Centre and governance model to service them

2. Choose the most superior option(s) for the core Aboriginal interpretation experience(s),

location of a Centre and governance model to service them

3. Determine the feasibility of the selected option

4. If reasonably feasible, prepare a Business Case for pursuing future funding, construction

and operation

This Report addresses the third objective of the Proposal – the feasibility of the selected option.

T h e P r o p o s a l

The consultants proposed the most cost effective location that minimised he previous Options

Report resulted in three ‘Wow Factor’ experiences being proposed:

1. Bush Tucker Tour linking middens, keeping place, Killalea and Bass Point and Aboriginal seafood collection, cooking, eating & storytelling

2. Night-time storytelling & cultural performance around camp fire 3. Overnight camping accommodation experience that includes some traditional food and

storytelling around camp fire

An interpretation centre (building) is proposed to be located at a ‘greenfield’ site adjacent to

Shellharbour South Beach, between a loading wharf and proposed marina. It would operate as

the arrival point and the centrepiece of the operation. The building would include:

1. Orientation display space 2. Keeping Place 3. Modest sized retail and ticketing space 4. Education room 5. General purpose meeting room 6. Kiosk / basic kitchen and indoor seating area 7. Modest office space 8. Storage space 9. Outdoor fire pit and horseshoe seating around it

The camping experience could be operated at the Bass Point Interpretation Centre building or

at Killalea, but has been assessed at the proposed Bass Point greenfield site.

It is proposed to run the Centre and associated tourism businesses using a Not for profit

organisation, limited by guarantee. Later, if it was evident that additional commercial growth

was likely with more independence, the model could transition to a company limited by

guarantee.

F o r e c a s t v i s i t a t i o n

It was forecast that by Year 3, the proposed Interpretation Centre could attract up to 70,000

visitors, made up of:

20,000 Centre browsers (unique visitors coming specifically to the Centre rather than Bass Point, Reserve but not purchasing a Wow factor experience);

30,000 Bass Point Reserve browsers (visitors on their way to Bass Point, choosing to stop at the Bass Point Interpretation Centre but not purchasing a Wow Factor experience); and

15-20,000 commercial visitors purchasing a WOW factor experience.

O p e r a t i n g f o r e c a s t s

The proposed businesses have been forecast to generate an annual Gross Operating Loss of

approximately $100,000 per annum. The Indirect Costs have been estimated at approximately

$250,000 per annum, resulting in an annual EBIDA (earnings Before Interest, Depreciation and

Amortisation) loss of approximately $350,000 per annum pre gst. This estimate excludes the

cost of debt servicing and repayment, and the cost of new asset depreciation.

D e v e l o p m e n t c o s t s

To gain an indicative construction cost, the Riders Digest was used to benchmark the proposed

780m2 building against a three star hotel built in in Canberra or Brisbane (outside CBD). This

results in a construction cost of between $2.1M – $3M pre gst. This cost excludes any

sustainability measures, interpretation fitout, outdoor areas / parking.

A detailed breakdown of the estimated development costs for the Proposal was then

undertaken, which suggested the Proposal could cost approximately $4.2M to bring to

operational status. The major costs are:

$1.5M (37)% for building construction $0.7M (16%) for building extra overs (local services connection and sustainability);


$0.9M (21%) for building fitout to operate as an Interpretation Centre; $0.4M (10%) for outdoor areas (parking, landscaping, campground and interpretation) $0.4M (10%) for below the line costs (Project Management, consultants and contingency)

This cost estimate excludes costs to bring services (power, water and sewer) to the roadside

adjacent to the Centre building, though an allowance has been made to bring the services

from the road edge to building.

S e r v i c e s c o n n e c t i o n c o s t s

Some years ago, Council staff were given an initial cost estimate to connect water, sewer,

storm water and power for a distance of 1.5km to the proposed site, estimated at $4.2M.

After drafting the feasibility assessment report and presenting it to stakeholders, Council’s

Assets Division recalculated the connection cost to $11.54M.

F i n a n c i n g o p t i o n s f o r d e v e l o p m e n t c o s t s

Supporting this Proposal, as a development and new operating entity, would require land,

money and political support at multiple levels. A not for profit organisation and detailed

governance arrangements would need to be developed. The proposed crown land would need

to be surveyed and marked out, and a lease prepared for the new entity to rent the land and

future building at a peppercorn rent (the first major gift of local government).

Seed funding would need to be generated at the local level to lever funding from State and

Commonwealth governments. The normal expectation of State and Commonwealth

development funding is a dollar for dollar match. So regardless of where the funding is sourced,

local financial support from local government and perhaps a Foundation, would need to source

approximately $2.5M, in order to pursue external funding. Shellharbour City Council Financial

Management Officers report that Council would probably need to borrow these funds.

A d d r e s s i n g t h e s e r v i c e s c o n n e c t i o n c o s t

The significant cost of services connection of $11.54M is almost three times the total cost of the

rest of the development, and presents as a stopper to the project. Four options to address the

issue for Council to consider are:

1. Re-classify cost as part of a connection to proposed Shell Cove Business Park

2. Re-scope and re-cost building to be totally self sufficient in services

• Scope technology costs for water, sewer and energy

• Scope potential funding sources to support sustainability initiatives

3. Conclude project at proposed site is unfeasible & either:

a) Shut down tourism part of proposal and scope proposition for Keeping Place in an adapted

/ existing building

b) Revisit putting proposal at Killaleah State Park via partnership

S o c i a l , c u l t u r a l a n d e c o n o m i c b e n e f i t s

This project is not a significant economic driver, but it does offer significant social benefit to the

local Aboriginal community. For local Aboriginal people, this Proposal represents an opportunity

to heal, to share what is important about their heritage and culture, to increase skills and

employment; to build relationships; and to build pride and confidence to move forward. Local

Aboriginal people want to use this Proposal as a focal point and catalyst, and Shellharbour City

Council are keen to play a pivotal role in helping them make the project a reality.

F e a s i b i l i t y

Aboriginal Interpretation Centres have a chequered history of success – not attracting many

visitors, being expected to cover their own costs and struggling to do so. The Similar Centres

have demonstrated poor historic performance in attracting many visitors and operating on a

break even basis – those that have, needed almost a decade to get there. The region’s tourism

market does not reflect many visitors naturally interested in Aboriginal tourism experiences. The

proposal is therefore heavily reliant on securing group education markets – a niche market

This Feasibility assessment has identified a number of significant limitations, but the top three

that must be addressed, for this project to be feasible, are:

1. How to address the very high services connection cost

2. Is Council prepared to source $2.5M seed funding for the Project, and if using a debt

facility, how would this be paid back?

(the operation lacks the capability to repay debt)

3. Is Council prepared to indefinitely fund the forecast operating deficit of $350,000, plus the

insurance and depreciation cost of a new built asset?

If these three issues can now be addressed, then a Business Case can be built to incorporate

the solutions.


1 . I n t r o d u c t i o n

1 . 1 B a c k g r o u n d

Australand Corporation (NSW) Pty Ltd (Australand) and Shellharbour City Council (SCC) are

jointly developing the Shell Cove development. Residential development within Shell Cove and

its marina created a need for Aboriginal artefacts to be relocated and conserved.

A b o r i g i n a l A r t e f a c t s – S h e l l C o v e

The Aboriginal culture heritage within the Shell Cove Project area has been recorded and

studied by a number of consultant archaeologists over a period of more than 25 years. During

this time the Aboriginal community has been consulted extensively, in particular in preparing

two Archaeological and Cultural Heritage Protection Plans and an application by Australand for

a National Parks and Wildlife Act (2974) ss87/90 permit/consent (No. 2534) for the Shell Cove

Boat Harbour/Marina Project area. During the consultation process with Traditional Owners

(ranging from two to one hundred people) a Keeping Place was requested for the purpose of

accommodating Aboriginal artefacts salvaged during the course of the Shell Cove Project

development.

A total of 41 lithic items (most identified as Aboriginal stone artefacts) were recovered and

recorded during the archaeological monitoring and salvage operations at Shell Cove. The 41

Aboriginal objects retrieved from all salvage localities (AHIM registered sites 52-5-436, 52-5-

437 and 52-5-438) were identified, recorded and bagged consistent with the requirements of

the ss87/90 combined permit/consent and the collection deposition requirements of the

Australian Museum.

The Aboriginal artefacts salvaged in accordance with combined permit/consent No. 2534 are

currently being held by the Australian Museum. A separate consultation process will need to be

undertaken to that currently being undertaken for this project to determine whether the local

Aboriginal community would like those artefacts returned and deposited in a Keeping Place,

and where these should be located.

A b o r i g i n a l A r t e f a c t s – T o n g a r r a M u s e u m

Shellharbour City Council houses two collections of artefacts at Tongarra Museum. All artefacts

are lithic and include axes, grinding stones, cores and points.

The first collection includes approximately 50 items donated to the museum in 1987. Not all of

these items are significant to Shellharbour.

The second group includes an estimated 10,000 artefacts. These items are currently being

analysed and a report on the collection will be prepared. It is estimated 80-90% of these items

are significant to the Illawarra region, including Shellharbour. The potential of the collection is

such that once professionally assessed, will contribute greatly to the known archaeological

record of Aboriginal cultural heritage in the Illawarra.

Considering the potential regional significance of this collection, adequate steps should be

taken to ensure the care of the cultural material for future generations. Further detail about the

care, storage and display of the artefacts can be found in Attachment A.

R e s p o n s e t o c o n s e r v a t i o n a n d p r e s e n t a t i o n o f t h e a r t e f a c t s

As long ago as 2005, Shellharbour City Council (Council) stated to local Aboriginal community

that it was prepared to allocate land for the development of a Keeping Place, so that the objects

could be conserved, made accessible and perhaps interpreted to others. This led to a thought

that perhaps the concept could be broadened to become an Aboriginal Interpretive Centre.

Council believed that an Interpretation Centre could simultaneously provide a Keeping Place for

local Aboriginal artefacts, an Aboriginal Art Gallery, a base for local guided Indigenous and

ecotours, a conference/educational room, restaurant and gift shop. It was felt that these

activities could generate additional employment for local Aboriginal people. Council also

proposed a potential location for a Centre – a ‘greenfield’ site adjacent to Shellharbour South

Beach, between a loading wharf and proposed marina, loosely called Bass Point.


1 . 2 P r o j e c t o b j e c t i v e s

Council prepared a Brief to prepare a feasibility study and business case for an Aboriginal

Interpretive Centre at Bass Point, and awarded the project to Simon McArthur and Associates. The objectives of this project are to:

1. Identify options for a Keeping Place, leading Aboriginal interpretation experiences and a

Centre and governance model to service them

2. Choose the most superior option(s) for the core Aboriginal interpretation experience(s),

location of a Centre and governance model to service them

3. Determine the feasibility of the selected option

4. If reasonably feasible, prepare a Business Case for pursuing future funding, construction

and operation

This Report has been prepared to address the third objective.

1 . 3 P r o j e c t a p p r o a c h

The Feasibility Study is being run over two phases.

P h a s e O n e – c o n c e p t d e v e l o p m e n t

1. Research and consultation to develop options for a Centre – some stakeholders were interviewed and some invited to workshops (see Attachment B for result of research into existing Cultural Centres across Australia)

2. Steering Committee chooses the best option

3. Competitor analysis to further improve the concept

4. Prepare governance options (who and how the Centre could be managed)

5. Produce an Options Report

P h a s e T w o – F e a s i b i l i t y

1. Work out how feasible the concept is, by estimating development costs, operating forecasts, economic and social impacts

2. Determine how the project could be funded

3. Produce a Feasibility Report

4. Consultation to get feedback on the Feasibility Report

5. Assuming the proposal is feasible, prepare a Business Case that further details how it could operate

6. Finalisation of the Business Case

This Report has been produced to complete the third task in Phase Two. The Feasibility Report

is therefore an interim and organic report that leads to a Business Case. Only the Business

Case will have an ongoing life.

1 . 4 S t a k e h o l d e r e n g a g e m e n t

Stakeholder engagement is being used to:

1. Inform stakeholders of the purpose and scope of the project, and how they can input and

be involved

2. Seek ideas from stakeholders on what an optimal Aboriginal Cultural Centre might offer

visitors

3. Seek feedback from stakeholders on the emerging concept and feasibility for a Centre, to

further optimise its potential success

A Plan was prepared that explained in detail how stakeholders would be engaged in the project.

Consultation is targeting:

1. The local Aboriginal population, particularly representatives with an interest in conserving

and interpreting local artefacts,

generating opportunities for education about Aboriginal culture, generating employable

skills and employment for local Aboriginal people, and generating investment and growth

into viable Aboriginal business

2. The local tourism sector, particularly representatives with an interest in developing

Aboriginal tourism in the local area

3. Potential funders / investors that might support a feasible project proposal

4. Relevant local government staff involved with the above sectors

5. Shellharbour City Councillors

6. Potential visitor markets with an interest in Aboriginal tourism experiences in the local area


The main opportunities for engagement have been:

Meetings between the consultants and some stakeholders, held on 14th and 15th July

Workshop on 16th July to explore experience ideas for an Aboriginal Interpretation Centre

(but not governance options)

Special Meeting with Council’s Aboriginal Advisory Committee on August 18 to select

options to expand on

Workshop on the 8th October and Councillor Briefing on the 10th October to:

Present the Feasibility Report, with an emphasis on the findings and

recommendations

Seek feedback on the findings and recommendations

Seek suggestions to make the project more feasible so as to prepare a Business

Case

2 . T h e P r o p o s a l

2 . 1 W o w F a c t o r e x p e r i e n c e s

The Options Report identified that the first and most critical competitive advantage needed to

support the proposal is a WOW factor experience – an experience that is particularly distinctive

and unusual enough to be noticed in a crowded market place. Consequently, stakeholder

consultation concentrated on identifying potential ‘WOW factor’ experiences.

The Steering Committee has chosen the following three WOW Factor experiences.

Attachment C provides the full list of experiences considered and assessed.

B u s h T u c k e r t o u r

A Bush Tucker Tour would link local middens, keeping place, Killalea and Bass Point. The

guided walking tour could include storytelling Aboriginal seafood collection, and perhaps

cooking and eating (see Figure 1.1). The tour would feature a local Aboriginal guide, run with

groups up to 15, and take approximately two hours.

N i g h t - t i m e p e r f o r m a n c e

A night-time performance could start with a welcome supper, then storytelling with a local

Aboriginal storyteller / MC around a campfire, and then finish with a cultural performance. To

maximise impact, the performers could arrive by boat holding fire sticks (see Figure 2.2). The

90 minute experience would be offered to up to 50 people per show.

O v e r n i g h t t r a d i t i o n a l a c c o m m o d a t i o n e x p e r i e n c e

For a more immersive experience at Bass Point, visitors would be offered an overnight

package. The experience would start with the Bush Tucker Tour, then a dinner including local

Aboriginal elements, then the Night-time performance, then some additional storytelling / ghost

stories, then camping with local Aboriginal guides, and finally next morning a breakfast

including Indigenous elements (see Figure 2.3). The meals would be served on the deck of the

Interpretation Centre. Food would be largely pre prepared or cooked on the Centre’s campfire.


Figure 2.1 Coastal Bush Tucker tour

Figure 2.2 Night-time storytelling and cultural performance, arriving by canoe

Figure 2.3 Overnight traditional accommodation experience

The camping could be run alongside the proposed Interpretation Centre building, or at Killalea

State Park. The maximum group size (including guide and assistant staying overnight) would

be 30 pax. A collection of two and four person tents could be erected onto wooden platforms for

the seasons when camping is offered, and then packed away into the store for outside the

operating periods. Each platform would have a short deck at its front with fold out chairs. Inside

each tent would be mattresses and a hanging battery powered light. Guests would use

bathrooms in the Centre (no shower). The camping experience would be packaged with the

Bushtucker Tour and Performance (buy either or both). After the performance other visitors

would leave and campers would continue to enjoy the fire and storytelling. A lead and assistant

guide would deliver the storytelling, prepare meals and stay in a tent overnight with the group.

All of the Wow Factor experiences should be designed to reflect the school curricula (see

Section 3.1) and should work closely with the Illawarra Environmental Education Centre to

share visiting schools across their respective programs. For instance, classes of a whole year

could be split and rotate between education programs and interpretive experiences programs

run by Killalea and Bass Point – this could include camping overnight.


2 . 2 I n t e r p r e t a t i o n C e n t r e

An interpretation centre building is proposed to be located at a ‘greenfield’ site adjacent to

Shellharbour South Beach, between a loading wharf and proposed marina. Attachment D

presents the assessment of this and alternative locations. Figures 2.4 and 2.5 present the

location, showing Bass Point to the east and Killaleah Ste Park to the south-west. Figure 2.6

shows the land is Crown Foreshore1 RE1, finishing 25 metres to the west of the loader. The site

is relatively level, with a slight decline from the road to mean high tide mark. It is cleared, has

no current use, has no heritage classification, no acid sulphate soils and is not classed as Bush

Fire Prone Land. However, it is bisected between the road and mean high tide mark by a

forecast sea level line that limits building development below it. Figure 2.7 presents a view of

the site from Bass Point Tourist Road.

Figure 2.4 Proposed location of Interpretation Centre

1 Zone DM, LOT: 8032 DP: 1072187, Land ID 29678, Property ID 185645, Keith Hockey Oval and Residue Lot

Figure 2.5 Proposed site and its proximity to Bass Point

Figure 2.6 Zoning of site and sea level rise building limit running through it

Site BassPointReserve

Killaleah State Park

Site

Site


Figure 2.7 View of the proposed site from Bass Point Tourist Road, looking north


B u i l d i n g f u n c t i o n

The Interpretation Centre would operate as the arrival point and the centrepiece of an

integrated tourism operation that actively utilises the immediate foreshore as an outdoor

performance space, and adjacent foreshore to the west for tours to visit an Aboriginal midden,

and the neighbouring Bass Point to the east for tours to visit and explore additional Aboriginal

heritage. The building could operate almost every day of the year, but we forecast it is open for

approximately 290 days per annum, as during school term weekdays it might be more cost

effective to open only when group bookings are secured.

A r r i v a l

Visitors would park to the west of the building and walk approximately 150 metres east along a

trail, past outdoor local Aboriginal sculptures set in local natural landscaping. This walk would

help ‘decompress’ visitors in preparation for entering the Centre. The trail would become a

ramp that led to the north facing building entrance. Adjacent to the entrance would be a large

decking area, where visitors could rest, have a coffee and enjoy the views.

O r i e n t a t i o n a n d i n t e r p r e t a t i o n

As visitors entered the building they would immediately face in front of them the indoor feature

a large sunken excavation in the floor that presents the majority of the artefacts, perhaps

scattered across the sand / soil, as an archaeological site or assembled to together visually

depict an artistic symbol. The structure would be covered by a floor of toughened glass so that

people could see the artefacts and walk over the top to maximise access. Interpretation text

could be printed on the glass floor.

On the walls surrounding the sunken display would be an aerial photograph / map, orientation

displays that introduce the area, and promotional displays that introduce the experiences

offered by the Centre.

R e t a i l a n d t i c k e t i n g

Immediately alongside the orientation space would be a modest sized retail to display and sell

locally made Aboriginal artworks, and souvenirs consistent with the interpretive activities

undertaken by the Centre. This space would also provide ticketing for performances and tours

at the same register.

K i o s k

A kiosk would operate to provide refreshments and coffee, snacks and light meals prepared off-

site)2 – minimal onsite cooking. During operating days the operation would be staffed with an

F&B contractor. The Wow Factor operations would also use the kitchen preparation and wash

up space to support their activities. Indoor seating would be provided for 30 people, and

additional 30 seats of seating on the decking in front of the indoor dining.

E d u c a t i o n

An education room for up to 30 students would feature stools and benches that offer interactive

technology and equipment that assists to interpret the local natural and cultural environment.

The dividing walls would be retractable and have picture hanging tracking on them.

M u l t i - p u r p o s e s p a c e

A multi-purpose space would form the largest space in the building. The space would be set up

as a meeting room for up to 100 people in theatre style, but also function as a training space

and lecture / presentation room and gallery. The dividing walls would be retractable and have

picture-hanging tracking on them. Inside the room would be a data projector with

communication cabling connecting it to a floor trapdoor, as well as a whiteboard. The room

could be blacked out to very low light as required.

O f f i c e a n d s a f e k e e p i n g p l a c e

A small office for staff at the rear of the building would be made available for supporting several

local guided Indigenous and ecotour businesses operating in the immediate local surrounding

area. The office area would also include a small safe room for the most significant part of the

Collection to be secure, and while not publicly displayed, available for access on request.

S t o r a g e

At the back of the building would be a store for seating and equipment needed for retail stock,

performances, education programs and tours.

2 This element is scoped if a site at Bass Point is chosen. If the Killalea site is chosen, the facility could be a simple kitchen for tea and coffee service, so it didn’t duplicate with the existing kiosk


D e c k i n g a n d p e r f o r m a n c e s p a c e

The decking would be the main place that people relax and socialise. The decking could have a

retractable shade structure to provide shade and reduce heat into the building during hot

periods. At the front of the building, between the deck area and the high tide mark, would be the

outdoor performance space. This would feature north facing wooden bench seating for 50

people. In centre front of the seating would be an outdoor fire pit. The

B a t h r o o m s

A modest set of bathrooms is proposed, comprising female (two cubicles), male (I cubicle and

urinal) and one disabled toilet with baby changing facility. Ideally the bathrooms would be

accessible from the outside of the building, so that campers could access them during the night

without needing to enter the Centre.

D e s i g n f e a t u r e s a n d f i t o u t

It is proposed to construct a ground level light-weight building that sits gently on the land and

fits into the landscape (but still stands out – no absolutely neutral colour tones, just earthy and

marine inspired). The road side of the building could feature a large Aboriginal mural. Detailed

design requires a Masterplan that is informed by geotech assessment and surveying. The

potential positioning of the parking, building and campsite footprints are presented on Figure 2.8. A potential layout of the building is presented in Figure 2.9, which suggests the building

shape could be shaped similar to an Aboriginal stone tool.

Inside the building would be ceiling fans and outside there would be ample doors and windows

to facilitate fresh air circulation. For particularly hot and cold days the building would include a

reverse cycle air conditioner plant on the roof of the building. Sustainability initiatives could

include: insulation in the wall cavities as well as ceiling, nature loo or equivalent composting

toilets, waterless urinal, solar panels and solar hot water heating on the north facing roof;

retractable shade structure on the northern side of the building; low energy consuming lighting

and kitchen appliances; water tanks and reuse for bathrooms; and paint that is non-toxic and

free of volatile organic compounds (VOCs).

Outside the building in a screened area would be a waste collection area. Also outside could be

a clay pit, for the baking of pottery associated with education programs.

Figure 2.10 provides an example of a light-weight timber building developed for the Jellurgal

Aboriginal Centre at Burleigh Heads, Queensland. Building costs for Jellurgal are not available.

F o o t p r i n t c a l c u l a t i o n

To fulfil this scope requires approximately 600m2 for the internal component, with an additional

200m2 for external decking. This footprint is equivalent to two basketball courts. The similar mix

of operations at the Quinkan Cultural Centre (Laura Queensland) has a footprint of 800m2. The

breakup of approximate scaling (for development costing) is provided in Table 2.1.

Table 2.1 Approximate scaling of building spaces and supporting infrastructure

Parking Scope Area (m2)

Centre specific (excludes additional 36 existing spaces to the west and 24 spaces further west at The Shallows

Light sealed for 10 cars@30m2 / vehicle

Light sealed 2 Disabled spaces @30m2 / vehicle

1 coach heavy seal

500

50

300

Total Parking 12 cars & 1 coach 850

Outdoor building spaces Scope Area (m2)

Outdoor decking 50 pax 200

Outdoor camping 4*4 pax tents and 5*2pax tents 300

Indoor building spaces Scope Area (m2)

Retail Counter, display shelving & cases, specialised lighting

50

Orientation Features Aboriginal artefacts displayed under toughened glass floor, specialised lighting

100

Education 30 pax, benches and seats, specialised lighting 50

Multi purpose space 100 pax in theatre style seating, audio visual, specialised lighting

200

Kiosk indoor dining 30 seats 30

Kitchen Includes dry store and cool room 40

Office 4 workstations and safe keeping place 30

Bathrooms 2 female, 1 male & 1 urinal, 1 disabled 30

Store Indoor and outdoor activities 50

TOTAL indoor building space 580


Figure 2.8 Proposed footprint of the Bass Point Interpretation Centre in situ


Figure 2.9 Proposed layout of the Bass Point Interpretation Centre


Figure 2.10 Light-weight build of the Jellurgal Aboriginal Centre at Burleigh Heads, with a footprint of approximately 375m2


S e r v i c e s a n d c o n n e c t i o n s

While the building could have a number of sustainability features that reduce its dependence

on external service connections for energy, water and sewer, it has been assumed that service

connections would still be required – particularly to support the food and beverage operation.

The location from which to make a services connection is approximately 1.3km from the

proposed interpretation centre building, as shown in Figure 2.11.

2 . 3 B r o a d e r t r a i n i n g a n d s e r v i c i n g

Local Aboriginal stakeholders also expressed a desire for the operation, once established, to

perform relevant training to strengthen and expand the number of local Aboriginal guides,

educators, performers and perhaps artists. The Bass Point operation could then contract these

people and offer them to provide services for other operations. For example, trained local

Aboriginal tour guides could offer an Aboriginal perspective on an existing attraction, providing

the attraction’s operator an additional product and flexible human resources. The Bass Point

operation could then become the regional distributor of this service; making it easier for other

attractions to reliably source Aboriginal guides and deliver Aboriginal experiences, and in doing

so, increasing the strength of the region’s tourism product offering. Concurrently the venture

would increase employment, social and economic benefits to the local Aboriginal people. A

notional commission (eg. 50%) could be charged on top of the guide’s hourly rate to cover

guide management by the Centre Coordinator.

2 . 4 G o v e r n a n c e m o d e l

Attachment E presents the alternative governance models considered. It is proposed to

establish a Not for Profit organisation limited by guarantee. This governance model is a mid

way point between an entirely local government operation (offering lowest risk and return) and

an entirely independent company model (offering highest risk and return). Some of the

characteristics of this governance model could include:

Local Government is sole shareholder (simplifying the capital investment and depreciation

treatment of fixed assets like the building)

Board of Directors (ideally skills based and including representation from local

government, local Aboriginal tourism and the local tourism / business environment)

Centre Coordinator oversees the operation, accountable and reporting to the Board, but

accessing any day to day support from a local government manager – the position would

be hands on, delivering some of the product

Human resources (including Centre Coordinator) employed under contract

Not for Profit organisation operates the Centre and provides the day to day operations

Local Government administers the land that the Centre is located on, builds, owns,

insures and depreciates the building and associated assets

A Foundation could be established to generate capital and assist in funding – the

Foundation is separate to local government

An organisational structure is presented in Figure 2.12. Further detail on the governance

model can be built into the Business Case.

Figure 2.12 Potential organisational structure for the Bass Point Interpretation Centre

Bass Point Interpretation Centre BoardSkills based

Assistant Centre Coordinator

Contractor PT

Guides

Contractor Casual

PerformersContractor Casual

Kiosk attendantContractor Casual

BPIC CoordinatorContractor FT


Figure 2.11 Approximate location for services connection (Source: Shellharbour City Council, Assets Division)


3 . F e a s i b i l i t y a s s e s s m e n t

3 . 1 M a r k e t c o m p e t i t i v e n e s s

There are a number of factors limiting the competitiveness and subsequent feasibility of this

proposal.

L i m i t e d d o m e s t i c F I T m a r k e t

Domestic tourism from the Free Independent Traveller (FIT) market makes up the large

majority of tourism in Australia3. Unfortunately, the capture rate of the domestic tourism FIT

market is likely to be very low.4

This market is attracted to cultural tourism attractions based on cultural heritage structures –

particularly World Heritage sites and especially those in other countries. However, Indigenous

tourism is not particularly attractive to this tourism market, as continuously proven by data

collected by Australia’s National Visitors Survey. In 2009, 3 million visitors participated in

Indigenous tourism in Australia. While almost three quarters of these visitors (71%) were

domestic overnight visitors, proportionally more international visitors participated in Indigenous

tourism activities (17%) than domestic visitors (3%). The low participation of domestic visitors

in Indigenous tourism activities results from their expectations of relaxation, recharging,

breaking the routine and indulging themselves, and the perception that these requirements

were not able to be met by an Indigenous tourism experience5.

Further constraining domestic tourism market potential, is that the majority of this market visit

the region in school holiday periods, and even during these periods, their choice to come and

their length of stay is influenced by weather conditions. Therefore, it is reasonable to conclude

that the domestic market is limited to approximately 10 weeks of the year, with the main period

being the four to five week summer school holiday period. While visitation is possible at other

times, it will be quite limited and should be viewed as a value add and not central to the

feasibility of the business.

3 National Visitors Survey (2015) 4 Indigenous tourism in Australia: Profiling the domestic market (2010) 5 Tourism Research Australia (2007); Tourism Australia (2009a)

L i m i t e d i n t e r n a t i o n a l m a r k e t

The marketing and promotion being undertaken by the South Coast Regional Tourism

Organisation is focusing on the domestic market6, particularly Baby Boomers and Generation

X segments.

Indigenous tourism is attractive to several of Australia’s international tourism markets.

However, the region does not have ready access to any significant international markets – just

1.1% of visitation is from international markets7. The 104,000 international visitors that come to

the South Coast are primarily from Western countries (mainly the United Kingdom, North

America and New Zealand.

For international visitors, while participating in Indigenous tourism is important, it is not

regarded as a primary motivator to visit Australia. While there is widespread interest in

Indigenous culture, it is not viewed as a ‘must see’ attraction, with visitors often participating in

only one Indigenous activity while in Australia8.

There is no existing iconic attraction or touring route to lever these international markets off.

Further, most of these international markets are gaining their Aboriginal experiences in other

regions where international market presence is already strong, such as Uluru, Cairns and the

Blue Mountains. These markets would generally visit at least one of these regions before

reaching the South Coast of NSW, so they may well have had their need for Aboriginal tourism

met. The only way to claw back competitiveness is to introduce highly differentiated product

operated by a highly experienced operator.

R e l i a n c e o n g r o u p e d u c a t i o n m a r k e t s

While a range of visitors might come to the Centre, we believe that the main market available

to the Wow Factor experiences is the group market – particularly schools in school terms and

some special interest groups in school holidays. Critical to attracting the school market are

programs linked to the school syllabus; particularly:

Human Society and Its Environment

6 South Coast Destination Management Plan 2013-2020 7 Destination NSW Regional Profile – South Coast, YE Dec 2012, and Time Series, YE Dec 2000-2012 8 Neilsen, et al. (2008) Indigenous tourism involvement in Queensland, CRC for Sustainable Tourism, Australia.


ENS1.5 Compares and contrasts natural and built features in their local area and the ways

in which people interact with these features.

ENS1.6 Demonstrate an understanding of the relationship between people and the

environment.

Learning Across the Curriculum

Sustainability Education “...provides authentic contexts for exploring, investigating and

understanding systems in the natural and made environments.”

The proposed Wow Factor experiences must design their product to reflect the curricula

above.

It must be noted that there is an established school program addressing local Aboriginal

culture already operating in the local area. The Killalea Trust through the Illawarra

Environmental Education Centre provides a 10am – 2.30pm program for schools, as well as

several other environmental programs. Therefore, for the Proposal to move into this market, it

will need to work in cooperation with the Trust and share the market.

N e e d f o r e x c l u s i v i t y

The research conducted for this proposal (see Attachment B) also identified that the

Aboriginal tourism centres that were more feasible were based on a tour model to strongly

visual sites, such as cave paintings. The local area does not have any strongly visual

Aboriginal sites.

The same research also identified that another key success factor was exclusive access to

Aboriginal sites for the businesses tours to use. Bass Point, as a public reserve, does not have

this competitive advantage.

The same research (see Attachment B) also identified that another aspect that made

Aboriginal Tourism Centres more feasible was sole or joint management by the tour operator

over the site(s) that they took visitors to. This characteristic provides the opportunity to

enhance competitive advantage through a clear and simple decision making environment, and

L o c a t i o n

Visitor Centres maximise their visitation when they are close to significant visitor markets. This

can be achieved by either locating the Centre on a major thoroughfare or within an existing

built area / major attraction. Centres that are not located like this (such as the Armidale Art

Gallery and Museum) report low visitation that is insufficient to make the business viable. We

do not believe that the attraction of visiting Bass Point Reserve will generate significant

visitation to the proposed location.

H i s t o r i c p e r f o r m a n c e o f s i m i l a r c e n t r e s

The research into similar Aboriginal Centres across Australia (see Attachment B) identified

that Aboriginal tourism businesses largely built around a Centre-based building were not

successful in the market place, because they present as a relatively static experience. The

market is generally not prepared to pay entrance fees for these products. To raise additional

revenue, some Centres have added cafes and conference / function facilities. The research

(see Attachment B) indicated that these additional businesses, at best, cover their costs, but

have not yielded any significant additional profit to subsidise losses from other parts of the

business, let alone to generate investment funds for critical repairs and renewal.

D e v e l o p m e n t o f a n e w c e n t r e v e r s u s p a r t n e r s h i p w i t h a n e x i s t i n g o n e

The Killaleah State Park receives approximately 380,000 visitors per annum. Approximately

32,000 of these visitors come as overnight campers (21,000 adults and 11,000 children). An

additional 10,000 visitors come to the Park as students with an education group.

Approximately 2,000 of these students stay overnight in the campground. Demand for the

camping is growing and plans are in place to expand the facility to add an additional 30

campsites to the existing 53, including the upgrading of sewer services to manage increased

demand.

Earlier it was acknowledged that the Killaleah State Park, through the Illawarra Environmental

Education Centre, has established a successful education program covering Aboriginal and

environmental content. The Park has existing infrastructure and facilities that could be further

enhanced at a lower cost than the development of a greenfield site like Bass Point. The

operation is being restructured to take a stronger tourism and marketing role, and grow market


share. Trust staff have expressed enthusiasm to base the new Bass Point Proposal at Killalea,

or at least partner with a new business (concurrently acknowledging that this was a Board

decision not theirs). Staff working for the Killaleah State Reserve Trust has an excellent

relationship with local Aboriginal people, as reported by both sectors.

It is almost always more feasible to add to an existing, growing business, than it is to establish

a new business with new infrastructure and facilities, and potentially compete with an

established similar business.

3 . 2 F o r e c a s t v i s i t a t i o n

T a r g e t m a r k e t s

Acknowledging the constraints identified in Section 3.1, the target markets for the Proposal

are:

During school terms: 70-80% Upper primary and lower secondary school groups from a one hour drive

surrounding catchment; 10 – 15% from organised groups, such as Probus; 10 – 15% from the Destination NSW FIT target market segment known as True

Travellers; and 5 – 10% from the Destination NSW FIT target market segment known as

Wanderers. During school holidays:

80-90% from the Destination NSW FIT target market segment known as Compatriots; and

10-20% from the Destination NSW FIT target market segment known as True Travellers.

Attachment F provides a detailed outline of all the Destination NSW FIT market segments.

We forecast that during school terms, 70-80% of visitors will be from within the region or day

visitors from outside the region, and 20-30% will come from outside the region as intrastate,

interstate and international origins. Nonetheless, we do not believe that the Proposal would

attract any more than 5-10% of its visitors from outside the region, visiting the local area and

staying overnight specifically for one of the experiences proposed.

We forecast that during school holidays the splits would be the reverse, with 70-80% of visitors

sourced from outside the region, but no more than 10% of these visiting from outside the

region, visiting the local area and staying overnight specifically for one of the experiences

proposed.

It is not possible to split the split of intrastate, interstate and international source markets

without any market testing.

A s s u m p t i o n s s u p p o r t i n g f o r e c a s t v i s i t a t i o n

To prepare visitation forecasts, we made a number of assumptions that included:

Bass Point Reserve receives approximately 77,000 visitors per annum9; The Centre is closed to the FIT market in school terms Monday to Friday, as well as Good

Friday and Christmas Day There is no entry charge to the Centre Group sizes are: Performance 10 min and 50 max; Bushtucker Tour min 1 and max 15;

and Aboriginal Camping min 10 and maximum 30 The Aboriginal camping experience starts in second year of operation, after the Centre

and other Wow Factor experiences are consolidated There may be some additional visitation through hiring of the multi use space, but this will

not be included in the visitation or financial forecasts, as there is no basis to generate reliable numbers

F o r e c a s t v i s i t a t i o n

Acknowledging the constraints identified in Section 3.1, we forecast quite low visitation for the

first three years of the operation. Table 3.1 suggests that by Year 3, the proposed

Interpretation Centre could attract approximately 70,000 visitors, made up of:

20,000 browsers (unique visitors coming specifically to the Centre rather than Bass Point,

Reserve but not purchasing a Wow factor experience);

30,000 Bass Point Reserve browsers (visitors on their way to Bass Point, choosing to

stop at the Bass Point Interpretation Centre but not purchasing a Wow Factor

experience); and

15-20,000 unique visitors purchasing a WOW factor experience.

This forecast compares with annual visitation of 5,000 (Quinkan Regional Cultural Centre in

northern Queensland), 5,000 at Jellurgal Cultural Centre and 9,300 at Armidale Cultural Centre

and 10,000 at the Illawarra Environmental Education Centre at Killalea State Park.

9 Without any reliable visitation data to Bass Point Reserve, or any visitor profile data, it is difficult to forecast the leverage that the Reserve could provide for a new Interpretation Centre that is along the route to the Reserve


Table 3.1 Forecast visitation to proposed Bass Point Interpretation Centre

Centre visitation not taking Wow Factor experience

Potential operation

days

No BPIC operation

days Visitation

BPR Capture rate of visitors to BPR

Captured visitors to

BPR

Unique visitation to Centre Yr 1

Total Visitation Yr

1

Unique visitation to Centre

Yr 2

Total Visitation

Yr 2

Unique visitation to Centre

Yr 3

Total visitation

Yr 3

School term weekdays 228 228 22,800 38% 8,664 4,560 13,224 5,700 14,364 6,555 15,219

School term weekends (no Good Fr) 72 71 21,600 30% 6,480 3,550 10,030 4,438 10,918 5,103 11,583

School holidays (no Xmas Day) 65 64 32,500 45% 14,625 6,400 21,025 8,000 22,625 9,200 23,825

Total / average 365 363 76,900 38% 29,769 14,510 44,279 18,138 47,907 20,858 50,627

Bushtucker tour

Potential operation

days

No operation

days Pax / Tour Tours / day Pax / day Occupancy Yr 1 Visitation Yr

1 Occupancy

Yr 2 Visitation

Yr 2 Occupan

cy Yr 3 Visitation

Yr 3

School term weekdays 228 150 15 3 45 90% 6,075 90% 6,075 90% 6,075

School term weekends 72 36 15 1 15 25% 135 30% 162 35% 189

School holidays 65 64 15 2 30 50% 960 55% 1,056 60% 1,152

Total / average 365 250 15 2.0 30.0 55% 7,170 58% 7,293 62% 7,416

Aboriginal performance

Potential operation

days

No operation

days Pax / show Shows / day Pax / day Occupancy Yr 1

Visitation Yr 1

Occupancy Yr 2

Visitation Yr 2

Occupancy Yr 3

Visitation Yr 3



School holidays 65 64 50 2 100 50% 3,200 55% 3,520 60% 3,840

Total / average 365 250 150 1.3 66.7 55% 10,400 58% 10,810 62% 11,220

Aboriginal camping

Potential operation

days

No operation

days Pax /

program Pax / night Pax / day Occupancy Yr 1 Visitation Yr

1 Occupancy

Yr 2 Visitation

Yr 2 Occupan

cy Yr 3 Visitation

Yr 3



School holidays 65 64 30 30 30 40% 768 42% 806 45% 864

Total / average 365 250 30 30 30 52% 5,088 53% 5,148 55% 5,238


Visitation by the schools market equates to securing approximately two groups of 90 per

school week between the third and third last week of each school term.

The capture rate from visitors to Bass Point Reserve is highest from the school holiday market

(when there are proportionately the most first time or outside of area visitors) and lowest on

weekends inside school terms (when there are proportionately the least first time or outside of

area visitors).

The forecasts for each of the Wow Factor experiences is likely to reflect some double counting,

as some visitors would probably do more than one experience. For example, the Aboriginal

Camping would package the Bushtucker Tour and Performance.

3 . 3 D e v e l o p m e n t c o s t s

A s s u m p t i o n s s u p p o r t i n g d e v e l o p m e n t c o s t s

A number of assumptions were used to inform development costs for the Proposal:

construction will occur in 2017 and be finished within 12 months;

there are no significant geotech issues, acid sulphate soil treatment, cultural heritage,

endangered species, storm and sea level rise protective measures required;

water, sewer and power service connections are from within 100m of the building –

costing connection from Shell Cove to this point is a outside the scope of this project;

10% architect, project manager and associated consultants (geotech, engineer etc);

modest additional costs set up for preopening marketing and to establish cash in bank to

pay any immediate costs; and

5% contingency on all costs.

Development costs were estimated in one of two ways. Most construction costs (carparks,

building and landscaping) were estimated using a cost per square metre rate provided by

Riders Digest 43rd Edition (Rider Levett Bucknall 2015). The Riders Digest identifies

Wollongong as having comparative costs to a capital city. Fitout costs were determined with

reference to similar previous projects associated with visitor centres, museums and galleries.

Unusual costs such as product development were estimated through direct investigation with

a suitable supplier. Our cost estimates are broad and indicative, and must not be relied upon

to formulate tenders. Detailed specifications and a Quantity Surveyor must be engaged to

form a more reliable set of costings. Ideally, a Life Cycle Analysis should also be concurrently

undertaken10. At any rate, we estimate that the Centre will require:

its Wow Factor experiences, displays and interpretive fitout to receive capital for

reinvigoration in 5 – 10 years after commencement;

its other fitout to receive a refurbishment between 10 and 15 years

its building and landscape to receive relifing11 between 15 – 20 years.

Without relifing, the building is likely to have a total life of approximately 40 years.

I n d i c a t i v e d e v e l o p m e n t c o s t s

To gain an indicative construction cost, we first used the Riders Digest to benchmark the

proposed 780m2 building against a three star hotel built in in Canberra or Brisbane (outside

CBD). This results in a construction cost of between $2.1M – $3M. This cost excludes any

sustainability measures, interpretation fitout, outdoor areas / parking.

D e t a i l e d d e v e l o p m e n t c o s t s

Table 3.2 presents a breakdown of the estimated development costs for the Proposal. Table 3.2 suggests that the Proposal will cost approximately $4.2M to bring to operational status.

The major costs are:

$1.5M (37)% for building construction

$0.7M (16%) for building extra overs (services connection and sustainability measures);

$0.9M (21%) for building fitout to operate as an Interpretation Centre;

$0.4M (10%) for outdoor areas (parking, landscaping, campground and interpretation

features)

$0.4M (10%) for below the line costs (Project Management, consultants and

contingency)

10 Life Cycle Studies recognise that every ‘whole’ asset consists of many component parts, each with its own life expectancy, interrelationships, resulting quality and maintenance issues. However, in addition to physical obsolescence, useful life expectancy is also dependent on the influence of economic, functional, technological, social and legal obsolescence. 11 Relifing is the reinvigoration of an experience and the refurbishment of its supporting infrastructure and equipment


Table 3.2 Breakdown of development costs to make Proposal operational

Building construction & fixed fitout Area (m2)

Cost / m Cost Prop’n of Budget

Retail 50 $2,700 $135,000 Orientation area 100 $3,000 $300,000 Multi Purpose space 200 $2,000 $400,000 Education Room 50 $3,000 $150,000 Kiosk indoor dining 30 $2,800 $84,000 Kitchen 40 $3,000 $120,000 Office 30 $2,000 $60,000 Bathrooms 30 $2,500 $75,000 Store 50 $1,500 $75,000 Roofed decking and retractable shading 200 $800 $160,000 Sub-total 780 $1,559,000 37%

Building extra overs Area (m2)


Water & sewer connections across road 100 $150,000 Energy connections across road 100 $70,000 Services - air conditioning plant 580 $300 $174,000 Services - electrical and data & fire 580 $250 $145,000 Sustainable energy initiatives $150,000 Sustainable waste initiatives $75,000 Sustainable water initiatives $100,000 Services - security monitoring and alarm systems $50,000 Total Extra overs $694,000 16%

Internal building fitout costs Area (m2)


Retail display cases and shelving 50 $1,000 $50,000 Pre-purchase of retail stock for sale $10,000 Retail point of sale $50,000 Orientation keeping place display in floor $200,000 Orientation displays $100,000 Education equipment & technology $200,000 Kitchen $30,000 Indoor dining area $12,000 Furniture for 50 seat outdoor dining $10,000 Multi purpose space seating & audio visual $30,000 Office workstations 4 $5,000 $20,000 Design of education programs & training $75,000 Design of interpretive tour & guide training $75,000 Design of performance & training $100,000 Equipment & props for tour & performance $50,000 Total Internal fitout $902,000 21%

Outdoor areas Scope Cost / m Cost Prop’n of Budget

Car parking (light seal) 12

vehicles $1,300/V $15,600

Coach parking (heavy seal) 7

vehicles $2,000/V $14,000 Unsealed trail connecting parking to building 500 $150 $37,000 Outdoor Aboriginal sculptures along entry walk $70,000 Fire pit and seating $25,000 Unsealed gravel trail to camping sites 150 $150 $11,250 Timber platforms for tents $20,000 Tents for 30 pax (2 and 4 pax capacity) $75,000 Landscaping to carpark and building 700m2 $115 $80,500 Aboriginal mural on outside of building $25,000 Clay pit $25,000 Signage leading to and at the site $10,000 Outdoor lighting $30,000 Total outdoor areas $438,850 10%

Below the line costs Area (m2)


Project Manager, Architect and consultants 10% 359,385 Preopening / launch marketing $75,000 Opening cash in bank for wages etc $20,000 Subtotal below the line costs $434,385 10% Subtotal all costs $4,028,235 Contingency 5% 201,412

Total costs 4,229,647

The detailed cost is marginally higher than the indicative cost, if sustainability measures,

interpretation fitout, outdoor areas / parking are excluded.


Figure 2.10 suggests that construction costs are forecast to rise significantly over the next

coming few years, so the later this project is realised, the more it would cost – delay of two

years could increase costs by 8-10%.

Figure 2.10 Historic and forecast change in construction costs

S e r v i c e c o n n e c t i o n c o s t s

Some years ago, Council staff were given an initial cost estimate to connect water, sewer,

storm water and power to the proposed site, estimated at $4.2M (initially calculated by WT

Partnerships and subsequently massaged by Council).

After drafting the feasibility assessment report and presenting it to stakeholders, Council’s

Assets Division reviewed the services connection capability, and confirmed that currently no

sewer runs from main (it's assumed this will run from Waterfront). Council then recalculated

the connection cost for a distance of 1.5km and lifted the cost to $11.54M. This quote was

made based on the building and services as described, and is not a quote to support a

residential or industrial development.

3 . 4 O p e r a t i n g f o r e c a s t s

A s s u m p t i o n s s u p p o r t i n g o p e r a t i n g c o s t s

Table 3.3 presents the assumptions used to generate the three year forecasts. Some of the

assumptions worth highlighting are:

there is no entry fee to the Centre, revenue is all use fees (for tours, education programs,

camping and commission from export of tour guides);

all guides and performers are on contracts and paid a casual rate of $25 / hour;

contractors are prepared to staff the retail / ticket booth when needed;

there are two permanent positions – a Coordinator (Full Time) Assistant Coordinator (Part

Time), and both would have tour guiding and / or performance skills and both would cover

weekends as part of their contract;

pricing for Aboriginal experiences outside of major tourism destinations is typically low;

pricing locally at the Illawarra Environmental Education Centre next door at Killalea State

Park is very low ($350 for 30 students);

Killalea State Park prices its camping very low at $5 per night per site, to capture lower

socio economic markets within the region – this will set up pricing pressure for Bass Point

To simplify revenue calculations, revenue from school term weekdays was set at the child

/ student rate, while revenue from school term weekends and school holiday periods was

generated by multiplying number of tours / performances / camp nights by a price point

half way between adult and child

Though marketing of the camping experience will package with Bushtucker Tours and

Performance, the revenue has been kept separated to keep the model simple to

understand

O p e r a t i n g f o r e c a s t b y b u s i n e s s u n i t

Table 3.4 presents the forecast Profit and Loss for each business product, and reveals that:

The Bushtucker Tour would make a small profit of $9,000 to $10,000 per annum with a

GoP of approximately 12% of revenue;


The Aboriginal Performance would make a modest loss of approximately $43,000 per

annum (greater number of contractors) with a Gross Operating Loss of approximately

-35% of revenue;

The Aboriginal Camping experience would start with a small loss of approximately

$10,000 per annum and then break even by Year 3;

The contracted guide service could generate approximately 100 guide hire outs in its first

year (Year 3) and operate cost neutral;

The retail outlet could make a small profit of approximately $70,000 per annum with a

GoP of approximately 50% of revenue; and

The kiosk would break even with a GoP of approximately 20% of revenue.

Table 3.5 presents a Profit and Loss forecast for the Bass Point Interpretation Centre,

combining the business forecasts from Table 3.4 with Indirect Costs. The proposed

businesses generate an annual Gross Operating Loss of approximately $100,000 per annum.

The Indirect Costs have been estimated at approximately $250,000 per annum, resulting in an

annual EBIDA (earnings Before Interest, Depreciation and Amortisation) of approximately

$350,000 per annum. There is no allowance for debt coverage or depreciation.


Table 3.3 Assumptions used to form three year forecasting

Bushtucker assumptions Year 1 Year 2 Year 3

Family rate (2 adults, 2 children) $50 $50 $55

Adult rate $18 $18 $19

Child / student rate $10 $10 $11

Guide hours (Guide 2.5 hours per tour) 2.5 2.5 2.5

Guide rate per hour $25 $27 $29

Total guide costs / tour $63 $68 $73

Bushtucker food costs / tour $5 $5 $5

Performance assumptions Year 1 Year 2 Year 3




Staff costs per night (1 storyteller * 2 hours @ $25/hour) $50 $52 $53

Staff costs per night (3 performers * 2 tours@$25/hour) $150 $155 $159

Staff costs per night (1 retail / usher * 3 hours@$25/hour) $75 $77 $80

Total staff costs $275 $283 $292

Supper cost per person $2 $2 $2

Camping assumptions Year 1 Year 2 Year 3




Guide hours (Guide and Assistant @8 hours each) 16 16 16

Guide & Assistant rate per hour $25 $27 $29

Total guide costs / night $400 $432 $464

Dinner cost per person $10 $10 $11

Breakfast cost per person $5 $5 $5

Total food costs per person $15 $15 $16

Guide contracting assumptions Year 1 Year 2 Year 3

Number of hire outs per annum 100

Charge out rate per hour $40 $42 $44

Guide cost per hour $25 $27 $29

Retail assumptions Year 1 Year 2 Year 3

Average spend per visitor School Term weekdays $5 $5 $5

Capture rate School Term weekdays 12% 15% 18% Average spend per visitor School Term weekends & School holidays $15 $15 $16

Capture rate School Term weekends & School holidays 20% 21% 22%

Cost of goods sold 50% 50% 50%

Kiosk assumptions Year 1 Year 2 Year 3

Average spend per visitor School Term weekdays $4 $4 $4

Capture rate School Term weekdays 15% 18% 22% Average spend per visitor School Term weekends & School holidays $6 $6 $6

Capture rate School Term weekends & School holidays 35% 35% 35%

Cost of goods sold (food and staffing) 80% 80% 80%


Table 3.4 Forecast Profit and Loss for individual products / business services

Bushtucker Tour Year 1 Year 2 Year 3 Yr 3 % Rev Revenue School term weekday $60,750 $60,750 $66,825 78% School term weekends $1,890 $2,268 $2,646 3% School holidays $13,440 $14,784 $16,128 19% Total revenue $76,080 $77,802 $85,599 100%

Direct expenses Guide contractor payments $31,250 $33,750 $36,250 42%

Food costs $35,850 $37,559 $39,338 46%

Total direct expenses $67,100 $71,309 $75,588 88% Gross Operating Profit $8,980 $6,493 $10,011 12%

Aboriginal Performance Year 1 Year 2 Year 3 Yr 3 % Rev

Revenue School term weekday $67,500 $67,500 $67,500 54%

School term weekends $3,780 $4,082 $4,536 4%

School holidays $44,800 $49,280 $53,760 43%

Total revenue $116,080 $120,862 $125,796 100%

Direct expenses Guide contractor payments $137,500 $141,625 $145,874 116%

Food costs $20,800 $22,269 $23,807 19%

Total direct expenses $158,300 $163,894 $169,680 135% Gross Operating Profit -$42,220 -$43,031 -$43,884 -35%

Aboriginal camping tour Year 1 Year 2 Year 3 Yr 3 % Rev

Revenue School term weekday $101,250 $109,350 $121,500 77% School term weekends $8,100 $8,748 $9,720 6% School holidays $23,040 $24,192 $25,920 16%

Total revenue $132,390 $142,290 $157,140 100%

Direct expenses Guide contractor payments $68,750 $70,813 $72,937 46% Food costs $76,320 $79,537 $83,355 53%

Total direct expenses $145,070 $150,349 $156,292 99%

Gross Operating Profit -$12,680 -$8,059 $848 1%

Guide contracting service Year 1 Year 2 Year 3 Yr 3 % Rev

Revenue $4,400 100%

Direct expenses $2,900 66%

Gross Operating Profit $1,500 34%

Retail Year 1 Year 2 Year 3 Yr 3 % Rev

Revenue Sales School Term weekdays $7,934 $11,096 $14,531 10% Sales School Term weekends and School holidays $93,165 $108,829 $123,963 90%

Total Revenue $101,099 $119,925 $138,494

Direct expenses Cost of goods sold $50,550 $59,962.42 $69,247 50%

Gross Operating Profit $50,550 $59,962 $69,247 50%

Kiosk Year 1 Year 2 Year 3 Yr 3 % Rev Revenue

Sales School Term weekdays $7,934 $10,652 $14,208 15% Sales School Term weekends and School holidays $65,216 $72,552 $78,885 85%

Total Revenue $73,150 $83,205 $93,094

Direct expenses Cost of goods sold $6,348 $8,522 $11,367 80%

Gross Operating Profit $1,587 $2,130 $2,842 20%


Table 3.5 Forecast Profit and Loss for overall Bass Point Interpretation Centre Years 1 – 3

Revenue Year 1 Year 2 Year 3 Yr 3 % Rev Bushtucker Tour $76,080 $77,802 $85,599 21%

Aboriginal Performance $116,080 $120,862 $125,796 31%

Aboriginal Camping $132,390 $142,290 $157,140 39%

Guide contracting $4,400 1%

Retail $7,934 $11,096 $14,531 4%

Kiosk $7,934 $10,652 $14,208 4%

Total Direct Revenue $340,419 $362,703 $401,675

Direct expenses Year 1 Year 2 Year 3 Yr 3 % Rev

Bushtucker Tour $67,100 $71,309 $75,588 19%

Aboriginal Performance $158,300 $163,894 $169,680 42%

Aboriginal Camping $145,070 $150,349 $156,292 39%

Guide contracting $2,900 1%

Retail $50,550 $59,962 $69,247 17%

Kiosk $6,348 $8,522 $11,367 3% Credit card fees on sales (0.03%) $10,213 $10,881 $12,050 3%

Total direct expenses $437,580 $464,917 $497,124 124% Gross Operating Profit / Loss -$97,161 -$102,214 -$95,450 -24%

Indirect Costs Year 1 Year 2 Year 3 Yr 3 % Rev

Centre Coordinator (FT) $65,000 $66,950 $68,959 17% Centre Assistant Coordinator (PT) $40,000 $41,200 $42,436 11%

Sales and Marketing $27,234 $29,016 $32,134 8%

Training $20,000 $20,600 $21,218 5%

Utilities (energy, water, gas) $20,000 $20,600 $21,218 5% Fire services, pest control and security $15,000 $15,450 $15,914 4%

Repairs and maintenance $10,000 $10,300 $10,609 3%

Cleaning for Centre $20,000 $20,600 $21,218 5%

FF&E Reserve $17,021 $18,135 $20,084 5%

Total indirect expenses $234,254 $242,851 $253,789 63%

EBITA -$331,415 -$345,065 -$349,238 -87%

Most Aboriginal Cultural Centres benchmarked for this project were found to make a loss for 7

– 9 years before breaking even – and most never did. Only a few Centres were found to make

any significant profit capable of being used to reinvest into the business.

Bass Point does not have the strategic competitive advantages of these sites / businesses (as

documented in Attachment B), and faces a number of strategic disadvantages as identified in

Section 3.1.

Consequently, we do not believe that this model can ever break even. The forecasts indicate

that:

Revenue grows by just $40,000 per annum;

Direct costs grow by $30,000 per annum;

Indirect costs increase by $10,000 per annum; and

Consequently, EBITA is likely to stay around a loss of $350,000 per annum.

3 . 5 F i n a n c i n g o p t i o n s

T h e b i g p i c t u r e

Supporting this Proposal, as a development and new operating entity, would require land,

money and political support at multiple levels.

A not for profit organisation and detailed governance arrangements would need to be

developed – this is normally covered in a Business Case, following feedback on the Feasibility

Report.

The proposed crown land would need to be surveyed and marked out, and a lease prepared

for the new entity to rent the land and building at a peppercorn rent (the first major gift of local

government).

Seed funding would need to be generated at the local level to lever funding from State and

Commonwealth governments. The normal expectation of State and Commonwealth

development funding is a dollar for dollar match. So regardless of were the funding is sourced,

local financial support from local government and perhaps a Foundation, would need to source

approximately $2.5M before pursuing external funding.


L o c a l f u n d i n g

The major source for local funding would need to be Shellharbour City Council. Most local

governments would need to borrow these funds. Shellharbour City Council’s financial

management officers report that borrowing facilities are normally set at 10 years, with an

interest rate of 3% for Crown Land and 4% for other tenure managed by Council. The

forecasts for this Proposal report no capability for the operation to repay debt. Therefore,

Council need to make an early decision as to how they would source seed funding for the

Project.

One option investigated was for Council to leverage external funding with land gift value. In

October 2015 Council had the 830m2 land area valued at $1.25M if Freehold Value and

$250,000 Open Space Value (current zoning). The subsequent rental projection was just

$12,500 per annum. Our view is that this valuation is too small to provide significant leverage

of external funds.

A ‘top up’ local source of funding could be through the establishment of a Foundation. The

Foundation could be established as a not for profit organisation separate to the proposed

operation or local government, and registered for tax effective status for gifts. The Foundation

could source funds from donations and fund raising activities. People could bequest cash, land

and other assets for realisation into the Foundation. Funding from this kind of source is looked

on favourably by administrators of State and Federal grant programs.

A l t e r n a t i v e e x t e r n a l f u n d i n g

Approximately 20 external funding programs were researched as potential external funding

sources for the development costs associated with this Proposal. Of these there were

approximately five sources that offered reasonable amounts of funding (above $20,000) that in

turn justified further examination.

The most promising opportunity is the Commonwealth government’s National Stronger

Regions Fund (NSRF). Features of this program are:

Grants are available for amounts between $20,000 and $10 million

Local government and incorporated not-for-profit organisations are eligible to apply

Grant funding must be matched in cash on at least a dollar for dollar basis

All partner funding must be confirmed

NSRF funding will be provided for capital projects that involve the construction of new

infrastructure, or the upgrade or an extension of existing infrastructure

The project must deliver an economic benefit to the region beyond the period of

construction. Projects should support disadvantaged regions or areas of disadvantage

within a region.

The NSRF funded component of the project must be completed on or before

31 December 2019

The second most promising opportunity is the IAS Indigenous Advancement Strategy.

Applications may be submitted at any time for demand-driven opportunities and will be

assessed on a value for money basis against the selection criteria set out in the IAS

Guidelines and Application Kit.

The Indigenous Business Australia’s Enterprise Program is a major initiator of similar projects,

several of which are profiled in Attachment B. However, the Program only supports 50% or

more Indigenous owned enterprises. So Council would need to set up a governance model

with it as minority shareholder. This is probably an untenable prospect, given the substantial

financial investment required by Council and the limited profitability of the venture.

The Indigenous Heritage Programme (IHP) is an ongoing competitive annual grants

programme that seeks to deliver strong heritage outcomes and broader social, health and

economic benefits for Indigenous communities. The programme supports projects that provide

Indigenous people with education, training, employment and business opportunities, and which

foster Indigenous peoples' aspirations to care for and reconnect with country and maintain

their cultural traditions.

The former Regional Industry Investment Fund (RIIF) now called Jobs for NSW supports

economic growth in regional NSW as well as enhancing the attractiveness of regional areas.

Funding is available to support various projects including: business investment, local

infrastructure and economic development. In some instances, financial support may be

provided for projects under RIIF that:

help fill gaps left by the market system;

promote economic and employment growth in regional NSW;


help regional communities capitalise on their strengths and broaden and reposition their

industry base;

assist with the development of regional and local solutions that will enable business

development; and

support the regional economy, including economic infrastructure and capacity building

projects

All projects must be linked to the creation of significant new jobs and investment and have the

potential to benefit more than one firm.

TQUAL Grants is a highly competitive funding program that seeks to stimulate sustainable

growth in the Australian tourism industry by supporting initiatives that:

develop innovative product, services or systems within the tourism industry;

contribute directly to long-term economic development in the host region; and

develop or support high quality visitor services and experiences.

F u n d i n g f o r o p e r a t i o n a l s u p p o r t

Funding the forecast operational deficit is likely to rest with local government. Senior local

government staff have signalled that a funding stream might be able to be established using

interest earnt from the investment account where the proceeds of the Shell Cove development

are placed. If this possibility is indeed supported by Council, then it could be further outlined to

the consultant for inclusion in the Business Case.

Another potential source of support is the Employing Indigenous Austraslians Program. As an

employer an organisation can access a wage subsidy of up to $6,500 (GST inclusive) over 12

months if they employ an eligible Indigenous job seeker who has completed six months in

employment services. This wage subsidy is available through the local jobactive provider.

Employers who want to offer work placements and ongoing employment to Aboriginal and

Torres Strait Islander tertiary students can get financial help through the Indigenous Cadetship

Support program.

4 . S o c i a l a n d e c o n o m i c b e n e f i t s

4 . 1 S o c i a l b e n e f i t s

The main benefits of this Proposal are social, and these are outlined below.

A b o r i g i n a l K e e p i n g P l a c e

The local Aboriginal artefacts recovered from the Shell Cove development would have a

permanent keeping place. They would be conserved, displayed and interpreted in a safe

environment, surrounded by a wider range of interpretation experiences that further increase

their value. Achieving this benefit was the principal motivator to create the Proposal. The

Proposal should therefore help to heal the emotional and social impact that the removal

created among Aboriginal and non-Aboriginal people.

L o c a l A b o r i g i n a l m e e t i n g p l a c e

While there are many community venues places where local Aboriginal people can meet, this

Centre would offer them a greater sense of ownership to host and run meetings on local

Aboriginal matters. This would further rebuild local pride, social and business relationships.

E x p a n d e d r a n g e o f s k i l l s a m o n g l o c a l A b o r i g i n a l p e o p l e

This project would train local Aboriginal people to become tour guides, storytellers, dancers

and related tourism and business skills. These skills would help these people be more

employable and could lead some of them to set themselves up as small businesses. A good

example of this flow on effect would be the guide contracting operation, whereby the Centre

marketed trained team members to other attractions and tourism operations, so that they could

offer a local Aboriginal version of the existing product.

E x p a n d e d i n t e r p r e t a t i o n o f l o c a l A b o r i g i n a l h e r i t a g e a n d c u l t u r e

The Interpretation Centre and three Wow Factor experiences would greatly increase the

degree to which local Aboriginal heritage and culture is interpreted and shared with locals and

visitors. The presentation of an archaeological site in the floor of the building would represent a

high degree of innovation in Aboriginal interpretation. The Wow factor experiences would bring


local Aboriginal people close no non-Aboriginal people into highly interactive interpretation

environments, and these have proven extremely powerful at stimulating discussions. These

experiences should lead to a greater awareness and appreciation of local Aboriginal heritage

and culture.

The expanded interpretation should flow on to establish a greater degree of value among local

Aboriginal people.

4 . 2 E c o n o m i c b e n e f i t s

4 . 1 D i r e c t b e n e f i t s

C o n s t r u c t i o n p h a s e

The short-term economic benefit of this Proposal would be employment and investment

associated with the construction of the Centre and development of the proposed Wow Factor

experiences. This can be calculated and documented in the Business Case, once feedback

from this Feasibility Study confirms the business model and forecasts.

O p e r a t i o n a l p h a s e

The medium and longer-term economic benefit of this proposal would be the addition of

innovative experiences into the local and regional tourism product mix. This will strengthen the

competitiveness of the region. The Proposal should attract additional visitation from outside the

area, as well as increased length of stay. This can be calculated and documented in the

Business Case, once feedback from this Feasibility Study confirms the business model and

forecasts.

4 . 2 I n d i r e c t b e n e f i t s

The Proposal would generate a number of indirect medium to long term benefits. One of these

would be business partnerships between the Centre and other local businesses, such as the

Illawarra Environmental Education Centre, existing local Aboriginal tourism businesses, and

local non-Aboriginal businesses contracting guides or forming other business relationships.

5 . C o n c l u s i o n

For local Aboriginal people, this Proposal represents an opportunity to heal, to share what is

important about their heritage and culture, to increase skills and employment; to build

relationships; and to build pride and confidence to move forward.

Local Aboriginal people want to use this Proposal as a focal point and catalyst, and

Shellharbour City Council are keen to play a pivotal role in helping them make the project a

reality, including financial support.

This report generates three critical feasibility issues for Council to now address:

1. How to address the very high services connection cost

2. Is Council prepared to source $2.5M seed funding for the Project, and if using a debt

facility, how would this be paid back? This is a key question because that the operating

forecasts for this Proposal indicates no capability for the operation to repay debt.

3. Is Council prepared to indefinitely fund the forecast operating deficit of $350,000, plus the

insurance and depreciation cost of a new built asset?

S e r v i c e s c o n n e c t i o n c o s t

The recently forecast cost to bring services to the proposed site of $11.54M is a project

stopper. It is a highly disproportionate cost to the $4.3M development cost for the rest the

project. The cost cannot be justified for this project on its own.

C o u n c i l s e e d f u n d i n g

Setting the services cost aside, for fund the $4.3M development cost, would mean even with

strong success in attracting external funding from State and Commonwealth grants, Council

would still probably need to find at least $2.5M to lever external matching funding – a standard

expectation from State and Commonwealth governments. In addition, a financial guarantee /

sinking fund would also need to be established to support a new not for profit governance

model.


C o u n c i l u n d e r w r i t i n g o f o p e r a t i n g d e f i c i t

The ongoing feasibility issue is funding an operational deficit of approximately $350,000 per

annum. This amount excludes the cost of repayment of debt to support the capital cost, and

the depreciation cost of a new built asset – so technically the deficit could be higher still.

Finally, the $350,000+ annual deficit represents a long-term opportunity cost to competing

community needs – made all the more difficult when other services are wound back based on

fiscal arguments relating to non-core business.

O t h e r i s s u e s

There will be other issues for the project to face. Council’s Assets Division has identified that

there may be heritage issues with the adjacent road.

We also believe that there will be a challenge to develop the business in a way that is

collaborative and integrated with the Killalea operation, to avoid unnecessary duplication and /

or competition.

N e x t s t e p s

If these three issues can now be addressed, then a Business Case can be built to incorporate

the solutions.


A t t a c h m e n t A – A r t e f a c t r e q u i r e m e n t s f o r s t o r a g e , c a r e a n d d i s p l a y

The following information was provided by Shellharbour City Council.

Basic care and consideration of collection

Display and storage of cultural material should be according to Aboriginal cultural

requirements and with respect to culturally sensitive material.

Handling of cultural material is performed in a manner that protects individual items and is

in accordance with Aboriginal cultural protocols.

Environmentally controlled environment for relevant 'organic' material is essential.

Centre staff should be trained in artefact management.

Display artefact requirements

High level of security.

Should be displayed in relevant collection groups to retain significance.

Cultural sensitive material should not be displayed.

'Organic' material should be stored in an environmentally controlled environment

(currently 1-3 objects).

Expertise in interpreting Aboriginal cultural material. Artefact display should not be static

but tell the story & significance of Aboriginal heritage in Shellharbour.

Stored requirements for artefacts

High level of security.

Clean, dust free environment.

Catalogued, stored and photographed according to museum minimum standards.

Individually boxed, labelled and itemised in storage, and on museum collections

management software MOSAIC.

Storage number should correspond with museum collections management software

MOSAIC.

Current space requirements approx. 4 square metres.

Ensure ease of access

Acid free paper

Cushioning material

Enclosures

Folders

Gloves

Packing material

Protecting enclosure – boxes, crates, bubble wrap, foam etc.

Object support systems for moving or transfer

Preventative pest management

O p t i o n s t o p r e s e n t l o c a l A b o r i g i n a l a r t e f a c t s

Consultation associated with this project suggested that the collection need not be treated as

one inseparable batch, and that a representative sample of the artefacts could be placed in a

highly secure environment and the majority placed into an environment that was generally

secure but more accessible and visually interesting to the broader public. Given that there

were many of the same kind of items, there was a groundswell interest to present the items as

a mass artistic installation, perhaps in the larger form depicting a shape of a sea animal. The

consultation identified three potential options for the majority to be presented and interpreted:

1. To maximise access and visibility, create an outdoor exhibit behind glass that could also

be illuminated at night. In this option, it was proposed to make the installation a place-

making project for Shell Cove – Waterfront Town Centre.

2. To emphasise how the objects had been found, create a large sunken excavation with the

items scattered across the sand / soil, and cover with toughened glass so that people

could walk over the top. In this option, it was proposed to make the installation a feature

of an interpretation centre, new library, refurbished Theatre or new restaurant / hotel.

3. To emphasise how widespread the artefacts had been found, create perhaps 50 – 100

mini versions of the second option, and spread them across Shell Cove residential and

town centre areas, with perhaps a few larger ones at the proposed library, visitor

information centre and an Aboriginal Centre.


A t t a c h m e n t B - M o d e l s u s e d a t e x i s t i n g A b o r i g i n a l C u l t u r a l C e n t r e s a c r o s s A u s t r a l i a

The consultants researched 12 Aboriginal Interpretation Centres across Australia to explore

what they offered, and what their competitive strengths and apparent limitations were. The

Centres researched and profiled were:

Muru Mittigar Aboriginal Cultural & Education Centre (Penrith NSW)

Armidale & Region Aboriginal Cultural Centre & Keeping Place (NSW)

Waradah Aboriginal Centre (Blue Mountains, NSW)

Tjapukai Aboriginal Cultural Park Centre (Cairns Qld)

Dreamtime Cultural Centre (Rockhampton, Qld)

Quinkan & Regional Cultural Centre (Laura Qld)

Warradjan Cultural Centre (Kakadu, NT)

Mosman Gorge Centre (FN Qld)

Jellurgal Aboriginal Cultural Centre (Gold Coast, Qld)

Worimi Murrok Cultural Centre (Newcastle, NSW)

Brambuk the National Park and Cultural Centre (Grampians, Vic)

Yarrawarra Aboriginal Cultural Centre (Corindi Beach, NSW)

Table B.1 summarises the activities provided by each of the 12 centres, and Table B.2

presents the competitive advantages that each centre appears to have. The research revealed

that none of the Cultural Centres drive their visitor experience with a Keeping Place. Most

Centres do not to have a Keeping Place as part of their Centre, because visitors were not

particularly interested in it or due to the cultural sensitivities of the artefacts' and their

significance to local Aboriginal people.

The research also revealed that there are at least seven models operating in Australia:

1. The Social Enterprise Model, where a visitor experience is a much lower priority and emphasis, with priority going to employment generating industries and financial services specifically tuned to the needs of local Aboriginal people

2. The Conventional Gallery / Museum / Retail / Café Model, which is generally not built anymore because it is no longer of much interest to visitors, and is thus not competitive or profitable enough to cover its direct costs, let alone its indirect costs

3. The Dance Performance Model, which concentrates on providing entertaining traditional dance, is located within ready access to international tourism markets, and is generally covering its costs

4. Indoor / Outdoor Museum, which involves significant capital to create interesting displays inside and outside, within a decade dates and becomes over mature in the marketplace, and then requires significant capital for refurbishment to buy itself another decade of modest visitation

5. School Education Camp, which pre-programs its activities and costs to operate more efficiently, but still requires subsidisation to operate

6. Tour Gateway Model, and Attraction & Tour Gateway Model, which appear to have been the most successful at attracting visitors, generating economic and cultural opportunities for Aboriginal people and operating on a viable basis, and can break even if: – they have a WOW factor, eg Aboriginal art, signature wildlife species, adventure, story – there is already access to international tourism markets – there is exclusive access to sites for tours to use – the site has sole or joint management by the tour operator

7. The Accommodation, Conference and Function Model, which require significantly more capital than the Tour Gateway / Attraction Model, but can break even they: – are situated in front of / surrounded by a WOW factor – are financed by a major Aboriginal tourism investment organisation – are operated by a major tourism operator, in partnership – have major partnerships and support with the tourism sector


Table B.1 Activities / experiences being offered at the 12 cultural centres

Centre Operating Model focus Retail Gallery Cafe Demos Static Displays

Dance Self G Walk Guided tour

Conferencing Accommodation

TOTAL REPRESENTATION 10 8 5 8 5 3 2 6 5 2

Muru Mittigar (Penrith, NSW) Social Enterprise

Armidale (NSW) Art Gallery Museum

Waradah (Blue Mountains, NSW) Dance Performance

Tjabaki Aboriginal Cultural Park (Far North Qld)

Dance Performance

Dreamtime (Rockhampton, QLD) Indoor/Outdoor Museum

Quinkan (Laura QLD) Tour Gateway

Warradjan (Kakadu, NT) Tour Gateway

Mosman Gorge (Far North QLD) Attraction & Tour Gateway

Jellurgal (Gold Coast, QLD) Attraction & Tour Gateway

Worimi Murrok (Newcastle, NSW) School Education Camp

Brambuk (Grampians, VIC) Activities accommodation, conference & function

Yarrawarra (Corindi Beach, NSW) Activities accommodation, conference & function


Table B.2 Strategic competitive advantages of the 12 cultural centres

Centre Model Competitive strengths Comments

Muru Mittigar (Penrith, NSW)

Social Enterprise Proximity to major population to source customers and partners Established period of operation (17 years) Financial expertise & access to finance

Cultural tourism is only a small part of the model

Armidale (NSW)

Art Gallery Museum

Changing exhibitions Clear & professional structure for Board & Director Strategic partnership with Powerhouse Museum

Building based operation – not much use of external environment

Waradah (Blue Mountains, NSW)

Dance Performance

Close proximity to capital city provides major market opportunities International export ready & highly engaging Stick to core business & well regarded for it Programmed every day Very well organised education packages tied to curriculum

Operation profiles key staff on website suggesting business stability, pride, low employee turnover

Tjabaki (FN Qld) Dance Performance

Located within a major international tourism region providing leverage and international markets International export ready & highly engaging Stick to core business & well regarded for it Programmed every day Access to significant capital

Dreamtime (Rockhampton, QLD)

Indoor/ Outdoor Museum

Sourced significant external funding for significant infrastructure and facility development Well equipped and locally supported convention centre

Only open Mon-Fri. Doesn’t financially break even

Quinkan (Laura QLD)

Tour Gateway Achieved financial break even through the tour revenue & low costs Operates as a VIC which brings additional visitors (including non-cultural visitors) to the tours

Connection to local Aboriginal rock art tours is not particularly clear at the Centre

Warradjan (Kakadu, NT)

Tour Gateway Located in Kakadu National Park Linked to strong Aboriginal guided tours that hold high level certifications Same organisation that owns centre and tours owns nearby accommodation properties, and all are marketed in an integrated way Strategic partnership with Indigenous Business Australia and Charles Darwin University Accommodation is managed by Accor Accommodation Group Operate a success Indigenous employment program

Open daily

Mosman Gorge (QLD)

Attraction & Tour Gateway

Located within a major international tourism region providing leverage and international markets Controlled access provides exclusivity through shuttle bus and Aboriginal sites located on Aboriginal land adjacent to the Gorge International export ready Strategic Partnerships with Voyagers Indigenous Tourism Australia (wholly owned subsidiary of Indigenous Land Corporation) Successful Indigenous training program with strong local tourism support

Open daily

Jellurgal (Gold Coast, QLD)

Attraction & Tour Gateway

Proximity to regional jet airport Located within major tourism area Package with related tourism attractions using Indigenous guide to visit these attractions

No admission fee, Centre is located separately to the tour destination, requiring bus transfer

Worimi Murrok (Newcastle, NSW)

School Education Camp

Located on private land with environment that supports Aboriginal activities without the constraints of public land management The Worimi Land Council also offer a adventure tourism based Quad bike Tour, which operates on land managed by the Worimi Land Council, ensuring exclusivity and a relatively high level of control of the product

Brambuk (Grampians, VIC)

Activities accommodation,

conference & function

Integration of activities accommodation and conferencing to maximising yield from visitation Located within the Grampians National Park, ensuring a very natural operating environment

Operating 25 years (since 1990) Open daily – but Winter season is a challenge for regional trade

Yarrawarra (Corindi Beach, NSW)

Activities accommodation,

conference & function

Offers a wide range of distinctive tours and activities for accommodation guests Bush tucker plantation

Operating 20 years (since 1995) All scheduled, café closed


M u r u M i t t i g a r A b o r i g i n a l C u l t u r a l & E d u c a t i o n C e n t r e

Operating since December 1998, open Monday to Friday, activities available on

weekends by arrangement

Situated in Penrith NSW

Social Enterprise Model

Commercial activities run for reinvestment into disadvantaged sectors

Offer cultural talks, bush tucker tours & boomerang workshops, didgeridoo workshops,

school programs, early childhood programs and travellers programs

Ngarra Aboriginal Knowledge Centre (keeping place, interactive educational

experience and cultural renewal)

Meeting Place is available for hire (up to 30 pax)

Outdoor amphitheatre for hire (up to 200 pax)

Retail shop and Art gallery

Function catering

A not for profit organisation seeking to improve the economic and social capacity of

Aboriginal people and empower meaningful participation. It operates as a social

enterprise, providing employment and training opportunities to people from

disadvantaged backgrounds utilising funds derived from commercial operations to

subsidise the community program

Finance Hub includes: financial counselling, financial literacy education and no interest

loans

A wholesale and retail nursery specialises in growing indigenous native provenance

stock and delivers professional Horticultural Consultation

Training and employment in Natural Resource Management

Mine and broad acre rehabilitation

Cultural renewal

Financial counselling and interest free loans through Community Finance Hub.

A r m i d a l e & R e g i o n A b o r i g i n a l C u l t u r a l C e n t r e & K e e p i n g P l a c e I n c


Located northern NSW Tablelands

Operating since 1988, open Monday to Saturday, closed Sundays & Public Holidays

Art Gallery / Museum Model

Displays feature a local heroes display, a lifestyles hallway, an historical room, a

research room, an archaeological section, and a movie area

Interactive corner for children

Café & function catering. The business has operated for five years but has not covered

its costs, so is closing down

Cultural tours and cultural activity workshops for all school ages (school term and

holiday programs) as well as for adults groups. These programs include a tour of the

Centre, Aboriginal painting, boomerang throwing, face painting using ochre, objects

making with Aboriginal tools, jewellery, bush tucker walk and Aboriginal dreamtime

story

Gift shop retailing gifts that can be customised.

Small venue hire of part or whole of the Centre for private functions and conferences,

catering available

Publicly available Constitution and Board structure

Provide specialised business consulting, mentoring and small business plans

Funded by annual grants from Armidale Dumaresq Council, NSW Trade and

Investment and Australia Government, NSW Trade & Investment Arts NSW. These are

competitive grants and securing funding is not a given.

Corporate Partners with University of New England, Jobs Australia, Roberts & Morrow,

The Community Mutual Group

ACCKP is a regional partner with Powerhouse Museum

Member of Armidale Coalition of Aboriginal Peak Organisations (ACAPO)


W a r a d a h A b o r i g i n a l C e n t r e

Located in the Blue Mountains, NSW

Operates 7 days a week 9am to 5pm 365 days in a year - never closed!

Dance Performance Model

Target international and domestic visitors, and school groups

Centrepiece are live performances held throughout the day, cost $18 per adult, run

regularly throughout the day, ranging from five minutes to fifteen minutes in length.

Audience members are able to witness Aboriginal Dance and Didgeridoo

performances, with brief explanations of the stories that accompany each dance

Interactive didgeridoo show

The Corroboree (dance) showcases four to five authentic dances; performed by

Aboriginal dancers in traditional paint and costume.

Art gallery and gift shop

Online art gallery and shop

Very organised domestic educational packages in line with the current NSW

Educational Aboriginal Studies curriculum, downloadable from website

Lectures at the Centre provide an introduction to Australian Aboriginal Culture,

including the story of the Three Sisters and an explanation of a traditional tool kit

permanently on display.

Sponsored by SnakeCharmer Choppers and The Fairmont Resort, Blue Mountains.


T j a p u k a i A b o r i g i n a l C u l t u r a l P a r k C e n t r e

Located northern Cairns, far north Qld, on 25 acres

Operating for 25 years (since 1990, making it the oldest Aboriginal Centre in Australia),

7 days / week

Dance Performance Model

Started as a play, then five years later incorporated interactive demonstrations and

performances, a cultural village, restaurants and retail. The point of difference for the

performances was to combine holographic images and live actors

In 2002 Tjapukai added Tjapukai By Night, an evening dinner show that provides guest

with the opportunity to become a part of an ancient corroboree ritual, which climaxes in

the ceremonial making of fire – this is now the signature experience

General day admission includes: Torres Strait Islander Dance Performance; Tjapukai

Dance Performance; Didgeridoo Show; Bush Foods & Medicine Demonstration; Art of

my people Talk; Boomerang & Spear Throwing; and Hunting & Weapons

Demonstration

Tjapukai By Night is priced at $120 adult (includes dinner)

In 2013 investors accessed $12M to revamp / reinvigorate and rebrand the attraction

Target international and domestic visitors to Cairns, very tourism savvy

The operation packages full day experiences with other attractions such as Cairns

Tropical Zoo, Kuranda Railway and Skyrail

The operation offers transfers from Cairns and its northern beaches

The majority shareholders are represented by Aboriginal tribal councils

D r e a m t i m e C u l t u r a l C e n t r e

Located at on the northern outskirts of Rockhampton, Qld, within 12 hectares of

landscaped gardens that feature native plants, trees and a large waterfall


Operating since 1998, with two renovations / expansions since then

Open 9am to 3.30pm Monday to Friday. To open on a weekend requires groups of 25

or more

Indoor / Outdoor Museum Model

The Centre features: fully secured storage area for valuable and sacred material,

museum / gallery, outdoor traditional areas, Convention Centre; retail outlet to

purchase authentic Aboriginal & Torres Strait Islander artefacts and souvenirs; Board

room and Staff Training area; Centre’s Administration

The museum gallery currently contains the VANISHING CULTURE OF THE

SANDSTONE BELT DISPLAY which displays the traditional people of the Central Qld

Sandstone Belt and their culture – via 34 metres of reconstructed sandstone caves.

The interpretation addresses the early days of the Aboriginal mythology, and the

significance of Kenniff’s cave, being both the history of Aboriginal occupation in

Australia and the early history of cattle-duffing in the region

A mens traditional dance group performs during the school holiday period and at

requested times. Didgeridoo playing and boomerang throwing is also offered.

The outdoor Aboriginal traditional area features replica burial site, rock art, gunyahs

and traditional ceremonial sites of the Darambal people

The Torres Strait Islander’s Village includes huts, the giant dugong and plants

particular to the Torres Strait. A guided tour guide explains the Islanders traditional

lifestyle and beliefs, then takes the visitors through a giant Dugong complex which

displays artefacts and building materials of the Torres Straight Islander People

A self-guided Native Plant Tour interprets Aboriginal and Torres Straight Islander uses

of plants for food and medicines, hunting and material uses

The Convention Centre provides two meeting spaces and 80 seat capacity theatre

equipped with the latest audio-visual equipment to comfortably handle any conference.

Attracts approximately 15,000 visitors per year

Business operation does not break even. Operating revenue is only sufficient to cover

other expenses. Yearly grants are needed to fund the wages, and these are contested

so not ensured.


Q u i n k a n & R e g i o n a l C u l t u r a l C e n t r e

Located at Laura, far north Queensland

Open 7 days May to Oct. Closed Dec through March due to wet season.

Tour Gateway Model

QRCC contains static interpretation displays on all aspects of Quinkan Country

including, Aboriginal and non-Aboriginal heritage, and the natural environment.

Retail sells regional Aboriginal arts and crafts and a variety of books, maps, souvenirs

Also operates as a visitor information centre for attractions, accommodation, travelling

conditions within Quinkan Country and throughout the Cape York Peninsula

Centrepiece of revenue is four guided tours to Aboriginal rock art sites (such as Split

Rock, Mushroom Rock & Giant Horse Gallery and The Quinkan Galleries). The QRCC

is the only distribution point to book the tours through and guides are contractors.

Mostly pre-bookings, few walk-ins from June to end August.

Operates at break even through the tour revenue.

Seasonal trade, business has taken time to build, but getting busier in the last 3 years

QRCC is owned and operated by the local town and region. It was established with

support of the State and Commonwealth funding (Queensland Heritage Trails

Network) and many north Queensland organisations, businesses and individuals.


W a r r a d j a n C u l t u r a l C e n t r e

Located at Kakadu National Park, NT

Open daily from 9am to 5pm

Tour Gateway Model

Displays and exhibitions addressing hunting techniques by the clans over different

seasons, the recent history of the park, blood lines and marriage rights, tribal elder

stories and the effects of white settlement in the Top End.

Offers a gallery of arts and crafts from Kakadu, Arnhem Land and Katherine regions,

displayed for sale. The majority of artworks are produced by local artists

The Cultural Centre is one component of an indigenous owned collection of Kakadu

wetland cruises, 4WD Kakadu tours, cultural experiences and Kakadu

accommodation. It is the largest collection of facilities catering to tourism in

Kakadu and is focused on positive indigenous outcomes. Cooinda Lodge, Kakadu,

Spirit of Kakadu Adventure Tours, Yellow Water Cruises and Warradjan Cultural

Centre hold ECO Certification III on an Ecotourism level.

The collection of businesses are operated by Kakadu Tourism, which is owned by the

traditional owners of Kakadu. Principle stakeholders include the Federal Governments

Indigenous Business Australia (IBA), the traditional owners are represented through

Kakadu Tourism and the facilities are managed and staffed by Accor Hotel Group.

As part of the charter for the operation of Kakadu Tourism, an Indigenous Employment

Program (IEP) is in place to create opportunities for local Bininj to train and interact

with the tourism industry. Part of Kakadu National Parks charter is to only develop

tourism at a pace that is comfortable and set by the traditional owners of Kakadu. The

program has been supported and co-developed by Charles Darwin University and the

Department of Education, Employment and Workplace Relations.

The IEP trainees are encouraged to reach their potential and some are selected to

undergo further training to reach leadership roles within Kakadu Tourism


M o s m a n G o r g e C e n t r e

Located at Mosman Gorge, far north Queensland

Open 8am – 6pm 7 days a week

Attraction & Tour Gateway Model

The Centre is a visitor node to explore Mosman Gorge, built to remove visitor traffic

from the congested road and use a shuttle bus to reach the Gorge (every 15 minutes)

An Art Gallery presents traditional and contemporary media and themes in paint,

prints, fabrics, wood and paper.

A gift shop offers jewellery, small artefacts and clothing, designed by Indigenous artists

A café features predominantly locally sourced produce infused with Indigenous bush

ingredients applied to light snacks, refreshments and meals

Mosman Gorge offers a number of self guided walks through and swimming is popular.

Dreamtime Gorge Walk starts with a traditional ‘smoking’ ceremony, a walk through

rainforest past traditional huts or humpies, then traditional plant use, bush food

sources, making bush soaps, ochre painting and an interpretation of Aboriginal

relationships with the tropical environment, finishing with a traditional bush tea and

damper. The 1.5 hour tour uses easy access private trails, is operated five times a day

and costs $60 adult.

Mosman Gorge and the Centre is operated by Voyages Indigenous Tourism Australia

(VITA), and 90% staffed by Indigenous people. VITA is a wholly-owned subsidiary of

the Indigenous Land Corporation (ILC) and manages tourism and resorts on its behalf.

Each year VITA provides up to 6 Traineeships for local community members as an

entry into the workforce. A twelve month structured training program provides a career

pathway for students leaving high school and for community members who need

additional support and training to achieve their employment goals.

In addition, the residential Training Centre provides up to 30 Indigenous traineeship

places each year for students from remote and regional communities around Australia.

Team training was supported by the local industry, who provided ILC funded

traineeship opportunities to the pre-opening team – trainees continue to be placed

each year in the areas leading hotels and resorts.

The Indigenous Land Corporation (ILC) is a Corporate Commonwealth entity, which

assists Indigenous Australians with land acquisition and land management to achieve

economic, environmental, social and cultural benefits. The ILC funded and constructed

the Mossman Gorge Centre complex to provide sustainable economic development,

employment and training opportunities for Indigenous people in the area

J e l l u r g a l A b o r i g i n a l C u l t u r a l C e n t r e

Located at Burleigh Heads, southern Queensland, open Mon – Friday 8.30am – 2pm

Attraction & Tour Gateway Model

Exhibition of Aboriginal artefacts such as dilly bags, shields, tools, boomerangs, nulla

nullas, message sticks, didgeridoos

Static displays address traditional bush foods, fishing, hunting and ecological practices


Traditional Aboriginal artwork being made by artists and on display

Retail outlet for artwork

Offer IPads as a “Languager” Elders have loaded language onto iPad for people to

learn their language.

Café serves bush tucker

Offer a library of Aboriginal books, reference material and historical documents

No admission fee

Centre is a launching point for a half day Jellurgal Dreaming Tour, which starts in

Centre’s Dreaming Amphitheatre with an audio visual of local Aboriginal history, then a

corroboree and traditional fire starting demonstration, then to Burleigh Cove Beach for

a 60 minute smoking ceremony and ochre anointment, visit to a midden and other

Aboriginal sites.Operator reports it is not a problem to bus people to other attractions.

The Jellurgal Dreaming Tour can be converted to a day tour that adds a visit to Fleays

Wildlife Park via a bus and guide

Also offers a Welcome to Country half day tour for small groups to an ancient burial

ground, midden, initiation / ceremonial ring and other sites, and finishes with Aboriginal

themed lunch back at Centre

Operation also offers Welcome to Country ceremonies, entertainment for events /

functions, and cultural awareness training

Jellurgal is fully owned and operated by the local Aboriginal community, through the

Gold Coast based Kalwun Development Corporation, which also provides services

such as housing, health, aged care and child protection.


W o r i m i M u r r o k C u l t u r a l C e n t r e

Located at Williamtown, north of Newcastle, NSW

Open Mon – Friday 8am – 4pm

School Education Camp Model

Emphasis is on the use of native gardens and wetlands, not building.

Aboriginal people teach various groups, from schools (pre, primary, secondary and

uni/tafe), to community, business & government groups and international visitors.

Groups can interact with Aboriginal Guides and have hands on experiences such as:

learning about the ‘Yidaki’ (didgeridoo) and trying to circular breath, see, hear and

touch Aboriginal relics (artifacts); try starting a ‘Watha’ (fire); learning the traditional

method of throwing a ‘Gamay’ (spear) using a ‘Barra-mirr’ (throwing stick), learning

how to throw and return a ‘Barrgan’ (boomerang); learning Aboriginal Traditional

Dance styles and meanings (all the while having a laugh at each other while they walk

like an ‘Mituki’ (emu) or jump & scratch like a ‘Wambuyn’ (kangaroo); and hear about

and taste Australia’s natural ‘Buwatja’ (bush foods) – (subject to seasonal fruit and

supply etc).

School Education Workshops are offered (10.00am-2.00pm) for primary and

secondary school students. Activities include boomerang and spear throwing,

didereedoo workshop, bush food and medicine, artifacts, art, weaving, dreamtime

stories, food collection, freshwater search, and midden workshop. Each workshop runs

for 45min as appropriate size groups rotate through their chosen activities. Lunch

(bbq) can be provided and Bush Tucker tasting can be requested (includes Emu,

Kangaroo, fish, crab, oyster, lobster, damper, bush cakes all cooked with our very own

herbs and spices from the bush).

School Education Camps are also offered for tented camping on Murrook’s fresh water

lake with close access to Aboriginal sites and large Coastal Sand Dune System.

Campers have access to showers and toilets, kitchen and dining area.

Tours are pre-scheduled for groups of 7 or more, mostly with accom groups Bush

Tucker Medicine Walk most popular. Indigenous groups like to know more about

history. Gallery open everyday. Cate not open but still provide lunch & MT for groups

The operation is owned and operated by the Woromi Land Council.

The WLC also own and operate Quad Bike Tours Port Stephens, and use their

reserved land to offer quad biking, 4WD Hummer tours and sand boarding – they

employ 11 people (three times more than the cultural centre) and turn over 10 times

more revenue. Tours available 9am – 4pm everyday (except for some public holidays)


B r a m b u k t h e N a t i o n a l P a r k a n d C u l t u r a l C e n t r e

Located in the Grampians, Victoria

Opened in 1990, open daily

Activities Accommodation, Conference & Function Model Cultural and educational activities include aboriginal arts, bush food discovery walks;

didgeridoo workshops, painting & throwing boomerangs

Café and gift shop

Scheduled School holiday activities include boomerang throwing, tasting bush tucker,

didgeridoo, cultural talk, art activities, dreamtime theatre

Multiday school camp program features abseiling, rock climbing and canoeing

Backpacker accommodation for (dormitories, doubles and twin rooms)

Conference facilities for up to 150 people. Equipment includes lecterns, laptops, data

& digital projectors and whiteboards

Provides Grampians National Park Information services on behalf of Parks Victoria


Y a r r a w a r r a A b o r i g i n a l C u l t u r a l C e n t r e

Located at Corindi Beach NSW (between Coffs Harbour & Grafton), surrounded by

bushland, beaches and wildlife

Opened mid 1990’s, Gallery open everyday, other activities through prescheduled

group bookings of 7 or more (mainly associated with accommodation)

Started as an Art gallery (home of the Annual Saltwater Freshwater Indigenous Art

Award)

Activities Accommodation, Conference & Function Model

The Centre offers several distinctive guided tours, but all are for prescheduled groups.

These include: History Tour, Women’s Site Tour (both approx. $49 adult), Fish Traps

Tour, Bush Tucker and Medicine Walk, Red Ochre Site Tour (approx. $18). Bush

Tucker and Medicine Walk most popular

The Centre offers a wide and distinctive range of cultural programs, but all are for

prescheduled groups for groups (priced $12 - $28). These include traditional basket

weaving classes, screen printing workshops, Gumbaynggirr story sessions, clay

modeling classes, Gumbaynggirr dance shows and Instruction, Aboriginal art classes,

Gumbaynggirr lingo classes, music workshop, Indigenous fibrework, Creation stories,

dance workshop, (approx. $12-18), some require booking

A café was established to offer contemporary Indigenous cuisine including kangaroo,

crocodile, emu, and native fruit, vegetables and herbs. The cafe served breakfast,

lunch and snacks as well as gourmet coffees, fresh juices, homemade cakes and

native breads. The café could not generate enough business to stay open, but the

kitchen is used to feed groups.

A retail outlet for art also sells a range of native teas, spices and jams

The Centre offers facilities for functions and meetings with catering facilities for up to

150 people

The Centre offers simple accommodation for up to 70 pax

The Centre operates a monthly produce market on site, and promotes other events

designed to raise profile, but these have not been updated for many years

Offsite there is a bush tucker plantation to provide food for the café, and an art shed.

Cultural Heritage Research unit conducts cultural research, heritage surveys and

training, advises local land and sea managers, and houses important history

recordings and archives

The website News pages haven’t been updated since April 2014 and there is a

shortage of images representing the diverse tours and cultural activities


A t t a c h m e n t C – I d e n t i f i c a t i o n a n d a s s e s s m e n t o f a l t e r n a t i v e e x p e r i e n c e s

Stakeholders shortlisted the following WOW Factor experiences:

Overnight traditional accommodation experience in Bass Point (includes storytelling

around camp fire, ghost stories, traditional food & remote access)

Bush Tucker tour linking middens, keeping place, Killalea and Bass Point and

Aboriginal seafood collection, cooking, eating & storytelling

Night-time storytelling & cultural performance around camp fire

Zorb Ball Adventure Tour on water with a cultural marine interpretation in Bushrangers

Bay

Black Markets, profiling indigenous art, crafts, produce, and nursery

Making traditional tools & boats (canoes) for hunting & cooking & demonstration /

learning how to use them eg. spear fishing

Indigenous themed marine snorkelling / scuba diving tour

Stakeholders also listed the following supporting experiences for further consideration:

Artists in residence program demonstrating traditional and contemporary indigenous art

Aboriginal guided Segway tour through Bass Point and Killalea

Indigenous led surfing, paddle boarding, fishing, whale watching

Indigenous led boat tour to Five Island / seal colonies

Indigenous led tour to Mount Keira

Elders Hall of Fame

Minority sample of artefacts on display at the Keeping Place

Majority of artefacts in an outdoor artistic display

Majority of artefacts on artistic display within restaurant / hotel / new library / theatre

Stakeholders also identified the following ancillary / value-add opportunities:

Integration of environmental & indigenous education programs with Killalea

Partnering aboriginal guides with other attractions / tour operators in the region

Cultural awareness program targeting local workplace and schools

Tour / tourism training programs for local Aboriginal people

Walkway connecting Bass Point, Killalea and Minnamurra beach

Adaptive reuse of the shipping gravel loader near Bass Point to operate as a marine

attraction (access to an underwater observatory)12

Café

Art Gallery

Retail for indigenous products

Nursery sales

The Project Steering Committee agreed that the most objective way to determine which

WOW Factor experience(s) to concentrate the feasibility on would be those that performed

against a weighted set of objectives, with weighting being a score out of 5 – the larger the

weighting number, the more important the criteria. They derived the following criteria and

weighting for assessment:

5 Offers a centrepiece experience that can be considered a WOW factor (stand out

iconic marketing capability)

5 Is immersive, hands on / interactive

4 Focuses on interpreting Aboriginal culture/stories of the South Coast and especially

the Illawarra region

4 Most domestic and international visitors will not already have done it somewhere else

in Australia (great idea but been there done that)

3 Reveals how Aboriginal people traditionally lived

3 Provides contemporary interpretation of Aboriginal people of today

3 Integrates relevant parts of the surrounding natural and cultural environment

The result of this assessment was the following top four WOW Factor experiences:

1. Overnight traditional accommodation experience in Bass Point (includes storytelling

around camp fire, ghost stories, traditional food & remote access)

12 We understand that the operator has future plans to reactivate the loader facility, so its inclusion in this report as a potential WOW factor support and influence on considering an ideal location site for the building was discounted


2. Bush Tucker tour linking middens, keeping place, Killalea and Bass Point and

Aboriginal seafood collection, cooking, eating & storytelling

3. Night-time storytelling & cultural performance around camp fire – in this case

performers arrive by boat

4. Zorb Ball Adventure Tour on water with a cultural marine interpretation – perhaps at

Bushrangers Bay

Afterwards, the consultant assessed the remainder of the shortlist, which resulted in the

discovery that making Aboriginal tools and boats, and then using them, also had significant

WOW Factor potential. Table C.1 presents the results of the assessments.


Table C.1 Assessment of top four WOW experiences From Options Report)

Criteria Weight Traditional accommodation#

Making tools & boats^

Bush Tucker / Seafood Tour#

Storytelling & performance#

Zorb Ball Marine# Black markets^ Snorkelling tours^

Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted

Offers a centrepiece experience that can be considered a WOW factor (stand out iconic marketing capability)

5 3 15 3 15 3 15 3 15 3 15 2 10 1 5

Is immersive, hands on / interactive

5 3 15 3 15 3 15 2 10 3 15 1 5 2 10

Focuses on interpreting Aboriginal culture/stories of the South Coast and especially the Illawarra region

4 3 12 3 12 3 12 3 12 1 4 1 4 1 4

Most domestic and international visitors will not already have done it somewhere else in Australia (great idea but been there done that)

4 3 12 3 12 2 8 2 8 3 12 3 12 3 12

Reveals how Aboriginal people traditionally lived

3 3 9 3 12 3 9 3 9 1 3 1 3 1 3

Provides contemporary interpretation of Aboriginal people of today

3 2 6 1 3 2 6 2 6 1 3 3 9 1 3

Integrates relevant parts of the surrounding natural and cultural environment

3 3 9 3 9 3 9 2 6 2 6 2 6 2 6

TOTAL 78 78 74 66 58 48 43

RANKING 1 1 2 3 4 5 6


A t t a c h m e n t D – A l t e r n a t i v e l o c a t i o n s f o r I n t e r p r e t a t i o n C e n t r e

Stakeholders proposed five sites for a hub / starting point / Centre:

Within Bass Point Reserve, in the carpark vicinity

Proposed Bass Point Site (a ‘greenfield’ site adjacent to Shellharbour South Beach,

between a loading wharf and proposed marina, loosely called Bass Point)

Killalea State Park, as an extension to an existing building or a new building

New Shell Cove Waterfront Town Centre precinct, VIC / library

Shellharbour Village, as part of a refurbished theatre (assuming the model chosen was

a performance)

The location of the five potential sites are shown on Figure D.1.

Table D.1 presents the strengths and limitations presented by each site.

Consultation indicated that the most popular site was Killalea State Park (Site 3).

The Steering Committee chose Site 2, adjacent to Shellharbour South Beach to conduct the

Feasibility Study.

Figure D.1 Location of potential sites for an Interpretation Centre

2 1

3

4

5


Table D.1 Assessment of alternative sites for an Aboriginal Interpretation Centre

Potential site Strengths Limitations

1. Within Bass Point

Reserve

Strong sense of place for local Aboriginal people – Bass Point is one of the oldest known occupation sites along

Australia’s east coast sites

Capitalise on surrounding natural and cultural environment

Maximises use of Bass Point Reserve, simplifying access and minimising waste travel time

Maximum capture of visitors to Bass Point

Northerly aspect good for Winter activities (sun trap and avoids southerly winds)

Uncertainty of gaining an approval for building within the

Reserve

Limited cleared land for building footprint, probably

requiring multi-level structure to minimise land clearing

Limited services (power, water and sewer)

Isolated site for security management

2. Proposed Bass Point

Site

Second closest to Bass Point for taking groups into reserve

Second best capture of visitors to Bass Point

High visibility from Shellharbour

Northerly aspect good for Winter activities (sun trap and avoids southerly winds)

Ownership is assumed to be Council but yet to be

confirmed

Requires vehicle to transport visitors to Bass Point

Limited services (power, water and sewer)

Isolated site for security management

3. Killalea State Park Capitalise on established markets already visiting for similar purposes, giving the business a significant head

start

Shared use of infrastructure (car parks) and services connections (water, power and sewer), which reduces

development and operating costs

Capitalise on an excellent relationship that local Aboriginal people have with the operational land managers

Could stimulate a joint management approach between Killalea and Bass Point

Uncertainty of gaining Trust and State government

support to approve partnership

Challenge for tripartite long term investment and

cooperative relationship (State government, local

government and Aboriginal community)


4. New Shell Cove

Waterfront Town

Centre Precinct

Maximises profile and the number of customers from local residents and visitors (high potential to attract

additional customers from non Reserve visitors)

Limited land / footprint still available


Less perceived independent operating environment for

local Aboriginal people

5. Shellharbour Village Use existing purpose built infrastructure (theatre performance in existing theatre) Assumes partnership with theatre performance is

possible



A t t a c h m e n t E – A l t e r n a t i v e g o v e r n a n c e m o d e l s

Three macro scaled options for governance are proposed for consideration:

Local or State government owns and operates, separate Foundation to raise additional

funding

Establish a Not for profit limited by guarantee

Establish a company limited by guarantee

The following sections further explain the potential characteristics of these options, and

identify some of the advantages and disadvantages of each. There are many micro

variations of these models that can be further considered after the macro scale choice is

made.

L o c a l o r S t a t e g o v e r n m e n t o w n s a n d o p e r a t e s

The first option is for Local or State government (government) to own and operate, employ

local Aboriginal people wherever possible, and establish a separate Foundation to raise

additional funding. Some of the characteristics of this model could include:

Government is the owner and operator of the operation

General Manager reports to nominated government representative

All staff employed by government

Government insures the collection on behalf of local ratepayers

Separate incorporated Local Aboriginal Foundation to raise funds for the business

Support groups

GDR status.

N o t f o r p r o f i t l i m i t e d b y g u a r a n t e e

The second option is to establish a Not for profit limited by guarantee. Some of the

characteristics of this model could include:

Government is sole shareholder

Board of Directors

All staff employed by government

General Manager reports to both the Board and government representative

Government operates facility

Government owns their collection and anything donated and responsible for all

insurance

A Foundation is structured to generate capital and assist in funding – the Foundation is

separate to government

DGR Status

C o m p a n y l i m i t e d b y g u a r a n t e e

The third option is to establish a Company limited by guarantee. Some of the characteristics

of this model could include:

Non-profit organisation

Operation funded by a mix of revenue generated, fixed allocation from Council (CPI

adjusted and/or performance based) and Foundation investment portfolio earnings and

income earned through company’s incentives, retail, events and Federal & State Govt.

grants.

Board of Directors in charge of managing the company

Art Museum Director appointed by Company Board who he/she reports to

Art Museum Director works with Board Sub-committees

Company has several sub-committees to assist with management and operations

Council owns its collection

Company owns & insures donated acquisitions offered to it

Government leases land and building to company at peppercorn rent

DGR status

Non-representational skills based board

Government nominates two board positions

Table E.1 identifies some of the potential advantages and disadvantages of these three

options.

The Steering Committee selected Option 2 with a view to evolving into Option Three if

commercial opportunities warrant growth.


Table E.1 Assessment of alternative governance models

Option Strengths Limitations

Local or State

government

governance with

a Foundation to

support fund

raising

Some cost savings through centralised services and buying power of government Public can theoretically access information about how operation is run through

requests to staff, Councillors and Freedom of Information

Financial burden to operate entirely rests with ratepayers / taxpayers, volatile net operating loss of the operation exposes government to financial risk

Some cost burdens of government support for the operation are buried in common cost accounting within government

Some cost inefficiencies in government operational requirements and Awards History of restructuring can destabilise operation and staff morale Some artefact owners may not want to donate to government Private sector reluctant to continuously financially support operation Operating Aboriginal tourism business is not government core business

Company Limited

by Guarantee

with local or State

government as

sole shareholder

Government retains control Only a modest change from the government model, so those not keen on change may

support Limits liability for government in event of windup

Requires clear and thorough lease to ensure operator is responsible and their activities integrated with government objectives and activities

Government still required to continue funding operation and exposed to uncertain operating losses

Less attractive for gaining donations from outside the government for building or new products

Some cost burdens of government support for the operation are buried in common cost accounting within government

Senior government staff still need to allocate time and focus to assist manage the operation

Some cost inefficiencies in government operational requirements and Awards

Publicly owned

company limited

by guarantee

Raising funding for capital and acquisitions from private sector easier and offers more potential

Divests government of operating budget risk Increases potential for innovation as management of the operation in hands of a Board

with more appropriate skills and solely focused on this task Greater funds potentially available for capital from private sector and easier access to

external funding Frees up time of senior government staff on their core activities Increases job security for professional staff Increases chances of attracting the best staff applicants to the operation and focuses

staff recruitment in an organisation focused solely on the operation Distances government from any controversial decisions by the operation Government contribution capped to fixed annual rate + CPI (and or performance

based on KPIs) Government gets credit for developing the operation and for the benefits that this will

bring to the local area Government gets credit for promoting the local area nationally and internationally Option that offers the greatest potential economic benefit to the local area

Requires clear and thorough lease to ensure operator is responsible and their activities integrated with government objectives and activities

Government relinquishes some control of operation


A t t a c h m e n t F – T o u r i s m N S W s e g m e n t a t i o n s y s t e m

Tourism NSW uses a series of Traveller Types (otherwise known as 'target markets') in its

marketing strategies. These are based on two research projects. In 2000, See Australia

conducted a study into 'holiday mindsets' ie, Traveller Types, based on a 'state of mind'

rather than a specific demographics alone.

From this research, five holiday mindsets were derived:

Pampadours, Compatriots, Wanderers, True Travellers and Groupies.

In 2004 Roy Morgan produced a segmentation which was designed to match the See

Australia segments. The Roy Morgan holiday mindsets were called the Australian Travel

Segments. Different names were given to each mindset in order to distinguish them from the

See Australia mindsets.

From this research, the segment names were:

Luxury Travellers, Family Travellers, Touring Travellers, Adventure Travellers and

Peer Group Travellers.

A description of each Traveller Type and Holiday Mindset is shown below:

Compatriots - Family Travellers

2000 See Australia description of the Compatriots/Family Travellers: Quintessentially middle market, female skew, wanting DFY (do-it-for you) but forced to compromise, family-focused, role-driven, good shoulder market, activities focused, budget conscious, like resorts and don’t like camping, favour 3-star, but aspire to 5-star, self-contained an advantage.

Holiday Mindset of the Compatriots/Family Travellers (Roy Morgan, 2004): "I holiday with my children. Holidays are the time when we can be a family again without work, school and other commitments getting in the way. Holidays are about going to a place to relax without hassles - if the children have a good time on holiday, then I can too. I believe you should see your own country first before exploring others. Overseas travel seems too much hassle. Although I’d appreciate a bit of luxury, self-contained accommodation offers the best value for us."

Wanderers - Touring Travellers 2000 See Australia description of the Wanderers/Touring Travellers: Marked older skew, adult couples, empty nesters, frequent tourists, DIY, great off-peak market, keen observers, widest range of preferences in transport mode, favour difference, continue their ‘Darby & Joan’ lifestyle when traveling, like to potter.

Holiday Mindset of the Wanderers/Touring Travellers (Roy Morgan, 2004): "Holidays are a time to explore and discover new things. I’m not interested in veging out on my holidays – I’d rather have interesting things to see and do. I enjoy looking at things at my own pace. I don’t mind being active on holidays, but I’m not looking for excessive physical activity or extreme adventure. I enjoy staying in a small B&B or a self-catered cottage in a scenic place, where we can explore the region at our own pace. "

True Travellers - Adventure Travellers

2000 See Australia description of the True Travelers Adventure Travellers: Experimental, adventurous, trail-blazing, immersion travelers who want to experience a single destination in depth, active, physical, overseas orientation, seeking difference and challenge, opinion-leaders, white collar skew, male skew, take longer holidays, will spend more getting there than being there, definitely DIY.

Holiday Mindset of the True Travelers/Adventure Travellers (Roy Morgan, 2004): "When I travel I like to truly experience the place. Holiday and adventure go hand in hand for me. I’m comfortable about taking some risks when I travel – I want some depth to my travel experience. It’s important for me to have plenty of physical activity when I’m on holidays. I’m definitely not interested in packaged holidays – I prefer to find my own accommodation and make my own arrangements. I’m OK with travelling on my own. I don’t mind a bit of discomfort. Staying in luxury hotels can obscure the real experience of the place. I prefer to mix with the locals, immerse myself in the local flavour. "


Groupies - Peer Group Travellers

2000 See Australia description of the Groupies/ Peer Group Travellers: Younger male skew, student skew, DIY except for cooking, travel in peer groups, travel in peak periods, strong repeat visitation, fairly physical, want party time, strong on shared activities and reunions, limited budgets, share accommodation, share transport, want bright lights, clubs, pubs etc.

Holiday Mindset of the Groupies/Peer Group Travellers (Roy Morgan, 2004): "I like to have fun with other people when I’m on holidays – I enjoy the social atmosphere. It’s great to holiday with friends, enjoying things together, sharing experiences. I’m not interested in holidaying by myself. I like to be physically active. I enjoy excitement and adventure on my holidays. I don’t like to be bored or go places where there is not enough to do. I rarely stay in luxury hotels, especially as they are so expensive. Budget is an important factor. As and when I have the money, I prefer to travel overseas - it seems more interesting than holidaying in Australia."

Pampadours - Luxury Travellers 2000 See Australia description of the Pampadour/Luxury Traveller:Up-market, DFY (do-it-for-you), indulgent, female skew,

white collar and professional skew, using an overseas travel frame of

reference, fashion-conscious, traveling in adult couples, 5-star product

preference, avoid young children/family destinations.

Holiday Mindset of the Pampadour/Luxury Traveller

(Roy Morgan, 2004):

"I like luxury and a bit of pampering on holiday. I’m not interested in

slumming it when I’m on holidays, or being less comfortable than I am at

home. Good quality is so much nicer.

I like to veg-out, de-stress, relax and recharge.

I prefer overseas holidays to travelling within Australia.

I’m not into family-holiday-type places – I prefer to go places where there are

no children around. "

agenda - shellharbour council · 2018. 12. 11. · the 2015/16 operational plan as at 31 march...

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