director corporate and community services report … corporate and community services report council...

Director Corporate and Community Services Report Council Meeting 25 July 2012

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INDEX

ITEM NO. ITEM PAGE NO.

1. Section 355 Committee Nominations ..............................................CO-02 Attachment A...................................................................................CO-04

2. Review of Yass Valley Council’s Information Guide.....................CO-06

3. Investment Report............................................................................CO-18

4. June 2012 Stocktake Results............................................................CO-21

5. Council Policy for Determination....................................................CO-22

Attachment A...................................................................................CO-23

6. Rates Arrears....................................................................................CO-26


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1. Section 355 Committee Nominations Reporting Officer – Cathy Campbell FILE: C.02.00.00

PURPOSE OF REPORT

To advise Council of the nomination process for the appointment of community members to Council’s Section 355 Committees for the next Council term.

REPORT

Background

Volunteers and community groups play an important part in assisting Council to provide community services and facilities though a number of Section 355 Committees, which are constituted under the provisions contained in the Local Government Act 1993 (NSW). Section 355 of the Act provides rules in relation to Council’s functions while Section 377 provides rules in relation to the delegation of Council power to Committees of Council. The two extracts are reproduced in Attachment A.

Yass Valley Council has 21 Section 355 Committees as follows, demonstrating its strong commitment to community participation.

• Audit Committee • Public Art Committee • Traffic Development Committee • Wee Jasper Community Association • Yass Rural Lands Planning Committee • Yass Sustainable Communities Committee • Yass Valley Aboriginal Advisory Committee • Yass Valley Community Access Committee • Yass Valley Development Corporation • Yass Valley Home Living Support Services Advisory Committee • Yass Valley Health Services Advisory Committee • Yass Valley Saleyards Committee • Yass Valley Sports Council • Yass Valley Youth Council • Binalong Pool Committee • Murrumbateman Old School Grounds And Library Committee • Murrumbateman Recreation Reserve And Grounds Committee • Sutton Hall Precinct Committee • The Mullion Recreation Grounds Committee • Yass Community Centre Management Committee • Yass Soldiers’ Memorial Hall Committee


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2012 Nomination Process To align the timing of the appointment of community members to Section 355 Committees with the term of Council the following timeframes are proposed. Date Action

1 August 2012 Letter to be sent to the Chairs of the community based Committees advising them that Council intends to commence the nomination procedure and advising them of the timeframe for scheduled events. Copies of promotional material will be provided.

9 August 2012 • Letter sent to all existing Section 355 Advisory Committee representatives thanking them for their contributions and inviting them to renominate.

• Nominations open

9 August to 3 Sept 2012

• Advertisements placed in the Yass Tribune

• Notices in village newsletters, school newsletters, Community Service Announcement – Yass FM 100.3

• Information on Councils website including advertisement, nomination forms and Draft Section 355 Committee Manual

3 September 2012 Nominations close

26 September 2012 Report to Council seeking endorsement to appoint community members, seek Councillor delegates and approval of the Section 355 Committee structure.

Training

Although a Section 355 Committee Procedures Manual was distributed to Committee members in 2009 anecdotal evidence suggests that it was not widely read or understood. It is probable that some Section 355 Committee members are unaware of their obligations in relation to the setting of fees, delegations and limitations of power that are vested to them by Council.

The Manual is currently being reviewed and will form of Section 355 Committee governance training which is planned for November/December 2012.

BUDGET AND MANAGEMENT PLAN IMPLICATIONS

Funds to facilitate governance training for Section 355 Advisory Committee members have been included in Council’s 2012/13 budget.

POLICY/ENVIRONMENTAL/RISK CONSIDERATIONS

Nil

RECOMMENDATION

That the nomination process for Section 355 Committees be noted.


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Attachment A

LOCAL GOVERNMENT ACT 1993 - SECTION 355 355 How does a council exercise its functions? A function of a council may, subject to this Chapter, be exercised:

(a) by the council by means of the councillors or employees, by its agents or contractors, by financial provision, by the provision of goods, equipment, services, amenities or facilities or by any other means, or

(b) by a committee of the council, or (c) partly or jointly by the council and another person or persons, or (d) jointly by the council and another council or councils (including by means of a

Voluntary Regional Organisation of Councils of which the councils concerned are members), or

(e) by a delegate of the council (which may, for example, be a Voluntary Regional Organisation of Councils of which the council is a member).

_______________ LOCAL GOVERNMENT ACT 1993 – SECTION 377 377 General power of the council to delegate (1) A council may, by resolution, delegate to the general manager or any other person or

body (not including another employee of the council) any of the functions of the council, other than the following:

(a) the appointment of a general manager, (b) the making of a rate, (c) a determination under section 549 as to the levying of a rate, (d) the making of a charge, (e) the fixing of a fee, (f) the borrowing of money, (g) the voting of money for expenditure on its works, services or operations, (h) the compulsory acquisition, purchase, sale, exchange or surrender of any land or

other property (but not including the sale of items of plant or equipment), (i) the acceptance of tenders which are required under this Act to be invited by the

council, (j) the adoption of an operational plan under section 405, (k) the adoption of a financial statement included in an annual financial report, (l) a decision to classify or reclassify public land under Division 1 of Part 2 of

Chapter 6, (m) the fixing of an amount or rate for the carrying out by the council of work on

private land, (n) the decision to carry out work on private land for an amount that is less than the

amount or rate fixed by the council for the carrying out of any such work,


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(o) the review of a determination made by the council, and not by a delegate of the

council, of an application for approval or an application that may be reviewed under section 82A of the Environmental Planning and Assessment Act 1979,

(p) the power of the council to authorise the use of reasonable force for the purpose of gaining entry to premises under section 194,

(q) a decision under section 356 to contribute money or otherwise grant financial assistance to persons,

(r) a decision under section 234 to grant leave of absence to the holder of a civic office,

(s) the making of an application, or the giving of a notice, to the Governor or Minister,

(t) this power of delegation, (u) any function under this or any other Act that is expressly required to be

exercised by resolution of the council.

(2) A council may, by resolution, sub-delegate to the general manager or any other person or body (not including another employee of the council) any function delegated to the council by the Director-General except as provided by the instrument of delegation to the council.


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2. Review of Yass Valley Council’s Information Guide Reporting Officer – Julie Buckley FILE: F.02.00.00

PURPOSE OF REPORT

To review Yass Valley Council’s Information Guide – Guidelines to Accessing Council Information (previously named “Publication Guide”) as required by the Office of Information Commissioner.

REPORT

The Office of Information Commissioner approved Yass Valley Council’s current Publication Guide on 19 November 2010 and Council adopted the Publication Guide on 15 December 2010.

The Information Commissioner has directed that all agencies review and adopt their Information Guides by 31 July 2012.

Changes have been made to the Information Guide as follows:

• point 3.1 to reflect election being held on 8 September 2012

• point 3.2 to include Council’s two new section 355 committees, namely Yass Sustainable Communities Committee, Yass Rural Lands Committee and one new regional committee, namely South East Australian Transport Strategy Group (SEATS)

• point 4.1.2 – updated link to Council’s policy documents on website

• point 4.2.1 to include Community Strategic Plan, Resourcing Strategy, Delivery Program and Operational Plan


Nil


Nil

RECOMMENDATION

That the Yass Valley Council Information Guide – Guidelines to Accessing Council Information be adopted as follows:


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3. Investment Report Reporting Officer – Sarah Donnelly FILE:F.01.04.04

PURPOSE OF REPORT

Submitting Investment Report as at 30 June 2012

REPORT

Introduction

In accordance with the Local Government (General) Regulation 2005 (NSW) Section 212, attached is a summary of Council's investments as at 30 June 2012. In accordance with Section (1)(b), it can be certified that the Investments listed have been made in accordance with the Act, the appropriate Regulations and Council's Investment Policy.

Short Term Deposits

Since Council’s decision of 26 March 2008 all securities have been converted to short term cash equivalents when the opportunity has arisen. Cash and cash equivalents held in term deposits which are longer than three months are required to be classified as long term deposits. This in no way impacts their liquidity and is merely a matter of classification. Longer term investments within the timeline needs of Council’s project funding requirements are currently not returning sufficient interest to justify the resultant liquidity reduction.

General

Tables 1, 2 and 3 below reflect Council’s current investments and detail compliance with current Council policy. Investments with both IMB and NAB exceeded policy limitations during June. This is detailed further in policy/environmental/risk considerations below.

Table 1 – Exposure by Credit Rating Type as at 30 June 2012 Short Term Investments Long Term Investments

S&P Rating (or equivalent)

Actual as at 30 June 2012

Maximum % of Total

Investments per Policy

S&P Rating (or equivalent)

Actual as at 30 June 12

Maximum % of Total

Investments per Policy

A1+ 32.35% 100% AAA Nil 100%

A1 3.80% 90% AA 24.81% 90%

A2 24.41% 70% A 9.32% 70%

A3 4.38% 10% in total BBB Nil 10% in total

Table 2 – Exposure to Single Institutions (Short Term Investments) at 30 June 2012

Institution

S&P Rating (or

equivalent) Exposure

Maximum Exposure to

Single Institution per Policy

NAB A1+ 49.81% 40%

ING- A1 5.86% 30%

IMB A2 37.59% See Note 1

25%

DefCredit A3 4.72% 10% in total

Note 1 - From time to time our exposure to individual institutions may fluctuate above the maximum exposure allowed under the Policy as other investments mature and/or are revalued, thereby affecting the balance of the portfolio. It would not be prudent to realise a term deposit prior to maturity as a result of these short term fluctuations.


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Table 3 – Exposure to Single Institutions (Long Term Investments) at 30 June 2012

Institution

S&P Rating (or

equivalent) Exposure

Maximum Exposure to

Single Institution per Policy

ANZ AAA Nil Note 2

ANZ AA 17.09% Note 2

Longreach A 9.32% Note 2

FIIG AA 1.64% Note 2

Westpac AA 6.08% Note 2

Westpac CCC 0.77% Note 2

ex Lehman Unrated 0.17% Note 2

Note 2 - All long term investments were purchased prior to the adoption of the current Investment Policy and Ministerial Order governing local government investments. The ratings of many of these investments are outside the current policy, however are grandfathered by the Ministerial Order to ensure that we are still compliant. Any new investment must comply with the current Policy.

Attachment 1 shows Council’s investment position as at 30 June 2012. Investments held as cash and cash equivalents are now all held as short term deposits and equate to 64.9% of the current market value of investments. Please note also that interest revenue for short term investments accounts for 87.4% of total interest income for 2011/12 to date.

The Omega Henley security (ex Lehman) matured on 22 June 2012 and the full face value of Council’s investment was received at this time. Additionally, all interest payments due on this security were paid to Council during June.

The interest payment due to Council for the Corsair Torquay (ex Lehman) security was not received during June. It appears unlikely that any further interest payments will be received for this security.

Calculation of Interest

Many of Council’s investments have complex factors involved in the calculation of interest (excluding term deposits and cash accounts). The information shown in Table 1, below forms only part of the interest calculation, and should be taken as an indication of the interest rate only. Further information, including any contingencies, is held in the Finance Section and can be made available on request


Nil


Single institution holding thresholds were exceeded for both NAB and IMB during June. The IMB holding will be adjusted at the next maturity date (July). NAB holdings are expected to fluctuate above the single institution limits on occasion during June, July and August as loan funding is received by Council.

RECOMMENDATION

That the Investment Report as at 30 June 2012 be received and it be noted that the summary has been prepared in accordance with the Act, the Regulations and Council’s Investment Policy.


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Attachment 1 - Investment Reconciliation (Cash Accounting) as at 30 June 2012

Interest 11/12Security Par Value $ Market Value $ Maturity Rate To Date $

Cash/Cash EquivalentsNAB Working Account 1,000.00 1,000.00 n/a n/a 37.62 NAB 11am Call Account 4,030,062.66 4,030,062.66 n/a 3.50% 149,946.10

4,031,062.66 4,031,062.66 149,983.72 Short Term DepositsIMB: 29876 2,241,200.14 2,241,200.14 29/08/2012 5.15% 122,463.93 IMB: 29877 1,668,161.88 1,668,161.88 16/07/2012 5.80% 79,451.88 IMB: 23588 2,510,238.72 2,510,238.72 6/09/2012 5.10% 139,771.88 NAB 175581310 2,362,922.78 2,362,922.78 20/08/2012 5.04% 122,866.13 NAB 199548128 2,111,244.09 2,111,244.09 20/08/2012 5.04% 111,244.09 Defcredit 171520996 1,151,168.19 1,151,168.19 11/08/2012 5.20% 72,397.54 ING Bank Australia Ltd 1,000,000.00 1,000,000.00 27/07/2012 4.74% 14,252.02 Interest - Recalled Funds 9,418.91

13,044,935.80 13,044,935.80 671,866.38 Total Short Term Investments 17,075,998.46 17,075,998.46 821,850.10

Other SecuritiesANZ: ZCTP Bond (P) 2,035,753.94 1,595,176.07 1/06/2017 Nil - ANZ: Averon II FRN (P) 500,000.00 422,900.00 20/06/2014 Nil - ANZ: Asprit (P) 2,500,000.00 2,476,787.50 30/03/2013 Nil - Longreach Series 26 (P) 500,000.00 471,100.00 7/06/2014 Nil - Longreach Series 30(P) 2,000,000.00 1,979,200.00 11/12/2012 Nil - FIIG: Dresdner Emu 500,000.00 430,450.00 30/10/2015 Nil - Westpac: Hickory Trust 1,000,000.00 201,560.00 20/06/2016 5.7400 63,961.23 Westpac: Dandelion (P) 1,700,000.00 1,597,490.00 21/12/2012 Nil - Aphex Glenelg 200,000.00 31,960.00 22/12/2014 5.8900% 12,756.23 Corsair: Torquay 300,000.00 n/a 20/06/2013 5.8400% 2,744.89 Corsair: Kakadu 100,000.00 12,430.00 20/03/2014 5.6400% 5,686.01 Helium Scarborough Defaulted - 23/06/2014 6.0733% 3,323.79 Lehman Global PN 200,000.00 - 15/06/2009 Nil - Magnolia Flinders - - 20/03/2012 5.7400% 9,327.54 MSMA Parkes IIA 500,000.00 n/a 20/06/2015 6.2900% 9,781.72 Omega Henley - - 22/06/2012 4.9900% 10,951.31 Start Blue Gum 100,000.00 n/a 22/06/2013 5.6400%Zircon Coolangatta 200,000.00 n/a 20/09/2014 Nil - Zircon Miami 50,000.00 n/a 20/03/2017 Nil - Zircon Merimbula 100,000.00 n/a 20/06/2013 Nil - Total Other Securities 12,485,753.94 9,219,053.57 118,532.72

Total Investments 29,561,752.40 26,295,052.03 940,382.82

P=Principal ProtectedSecurity Defaulted - $300,000 initial investmentMatured 20 March 2012 Matured 22 June 2012


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4. June 2012 Stocktake Results Reporting Officer – Sarah Donnelly FILE:F.01.03.00

PURPOSE OF REPORT

To report on the June stocktake at various Council locations

REPORT

Annual stocktakes were undertaken at the Council Depot, Council Workshop and Visitor Information Centre during June. Outcomes are detailed below for all areas.

Council Store

Stocktake was conducted on 25 June 2012. A discrepancy of $2,149.47 (cost value) on a total stock holding of $170,808.00 was recorded at this time. This amount equated to a total variation of 1.24% of the total stock held (December 2011 variation 9.1%). In the twelve months to June 2012 the percentage variation at stocktake has been reduced from 12.6% to its current 1.24%. This marked improvement is a testament to the hard work and skill of the Stores Officer.

Council Workshop

Stocktake was conducted on 28 June 2012. A discrepancy of $722.99 (cost value) on a total stock holding of $27,679.76 was recorded at this time. This amount equated to a total variation of 2.61% of the total stock held (December 2011 variation 2.4%). Again it should be noted that the calculation of the holdings of the various oils stocked at the workshop may result in variations due primarily to the method of storage and the need to rely to a small extent on quantity estimations.

The Council Workshop also maintains a small store of items for RFS repairs. Given its size, this stocktake is ordinarily combined with the larger workshop reporting. In this instance a separate notation is provided to record a zero discrepancy result (total stock held $6,407.36)

Visitor Information Centre

Stocktake was conducted on 22 June 2012. A discrepancy of $36.53 (cost value) on a total stock holding of $23,129.70 was recorded at this time. This amount equated to a total variation of 0.15%. (December 2011 variation 3.4%).Given the nature of the stock held at this location, this is an excellent stocktake result.


Nil


Nil

RECOMMENDATION

That the information be received


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5. Council Policy for Determination Reporting Officer – Sarah Donnelly FILE: P.05.00.00

PURPOSE OF REPORT

To seek Council’s determination on FS-POL-1 Procurement Policy.

REPORT

FS-POL-1 Procurement Policy is an existing policy which is due for review prior to August 2012. The amended policy with ‘tracked’ changes is provided at Attachment A.

There has been one substantive change proposed to the existing policy (see Clause 4.5). Council’s has a comprehensive list of suppliers which is being compiled by way of open tender to ensure transparency and fairness.

In many instances, Council staff are having difficulty sourcing the required written quotations for work which is marginally in excess of the current $3,000 threshold. Amending the policy as suggested in Clause 4.5 will allow some scope for variation, while still ensuring an acceptable level of accountability.


Nil


FS-POL-1 Procurement Policy

RECOMMENDATION

That FS-POL-1 Procurement Policy be adopted as amended:


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Attachment A


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6. Rates Arrears Reporting Officer – Darryl Gold FILE: R.02.00.06

PURPOSE OF REPORT To update Council on rates arrears REPORT Table 1 – Arrears as at 30 June 2012

Rates and Charges Levied

2011/2012 (includes interest)

Paid 1 July 2011 to 30 June 2012

Balance outstanding 30 June 2012

% Paid 1 July 2011 to 30 June 2012

$ $ $ Arrears at 30/6/2011 $648,126.03 $491,128.47 $156,997.56 75.78% Current Year Rates and Charges billed 1 July 2011 to 30 June 2012 $11,229,142.72 $10,658,111.28 $571,031.44 94.91% TOTAL $11,877,268.75 $11,149,239.75 $728,029.00 93.87%

Table 2 - Summary of Prior Year’s Outstanding Balance as at 30 June 2012

Year No of

Assessments Amount $

2004/2005 1 201.52

2005/2006 1 309.09

2006/2007 2 1,454.27

2007/2008 5 3,794.39

2008/2009 21 19,069.05

2009/2010 36 44,188.76

2010/2011 112 87,980.48

2011/2012 930 571,031.44

728,029.00 BUDGET AND MANAGEMENT PLAN IMPLICATIONS Nil POLICY/ENVIRONMENTAL/RISK CONSIDERATIONS Nil RECOMMENDATION That the information be noted.

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