Agenda 11 May 2015

NOTICE OF
OPERATIONS COMMITTEE MEETING
MEMBERSHIP
Chairperson – Cr Tony Mitchell
Mayor Sam Johnson
Cr Brett Benbow
Cr Phil Greagen OAM
Cr Ann Johnston
Cr Mark Myers
Cr Phillip Brown
Cr Colleen Hutchison
Cr Lisa Lumsden
Cr Fran Paynter
Notice is hereby given pursuant to Sections 87 and 88 of the Local Government Act 1999, that the
next OPERATIONS COMMITTEE MEETING will be held in the Council Chambers, 4 Mackay Street,
Port Augusta on MONDAY 11 MAY 2015 commencing at 6:00pm.
A copy of the Agenda for the above meeting is attached to this notice.
LEE HERON
ACTING CHIEF EXECUTIVE OFFICER
07/05/2015
AR15/16562
11/05/2015
Civic Centre: 4 Mackay Street
Port Augusta South Australia 5700
Telephone (08) 8641 9100
Facsimile (08) 8641 0357
Postal Address: PO Box 1704
Port Augusta South Australia 5700
[email protected]
www.portaugusta.sa.gov.au
AGENDA
1.
ELECTION OF CHAIRPERSON
n/a
2.
DECLARE MEETING OPEN
3.
APOLOGIES & LEAVE OF ABSENCE
4.
CONFLICT OF INTEREST
5.
CONFIRMATION OF PREVIOUS MINUTES (ATTACHED)
Recommendation
That the minutes of the previous Operations Committee Meeting (AR15/12823)
held on 13/04/2015 be adopted as a true and correct record of that meeting.
6.
PRESENTATION/DEPUTATION
Nil
7.
QUESTIONS ON NOTICE
Nil
8.
QUESTIONS WITHOUT NOTICE
9.
NOTICE OF MOTION
Nil
10.
PETITION
Nil
11.
CONFIDENTIAL ITEMS
Opportunity to discuss if any item within this agenda should be discussed under
Confidential provisions; or any confidential matter within the agenda that should
be debated in the open.
12.
REPORTS
12.1
AR15/12902 – Community Grant Application – Port Augusta Scout Group
12.2
AR15/15283 – Sale Process – Netball Courts Railway Parade, Port Augusta
12.3
AR15/16424 – Central Oval Precinct - Long Term Leases Port Augusta
Netball Association, Port Augusta Basketball Association, and Spencer Gulf
Football League
13.
CLOSURE OF THE MEETING TO THE PUBLIC
14.
CONFIDENTIAL REPORTS
Nil
15.
MEETING DECLARED CLOSED
AR15/16562
11/05/2015
MINUTES OF OPERATIONS COMMITTEE MEETING
HELD ON MONDAY 13 APRIL 2015
PRESENT
Mayor S Johnson, Deputy Mayor B Benbow, Crs P Brown, C Hutchison, A
Johnston, L Lumsden & M Myers.
OFFICERS
PRESENT
Chief Executive Officer Mr J Banks, Director Corporate Services Mr M
Dunemann, Director Infrastructure & Environment Mr H Hart, Director
City & Cultural Services Mrs L Heron, Director Community Services Mrs A
O’Reilly and Executive Assistant Ms M Jenkins.
GALLERY PRESENCE
Public 4 – Media 3
ELECTION OF
ACTING
CHAIRPERSON
In the absence of the Chairperson Cr Mitchell, the Chief Executive Officer
called for nominations for the position of Acting Chairperson
Crs Mayor Johnson/Cr Johnston nominated Cr Benbow.
No further nominations were received.
Cr Benbow accepted the position and assumed the Chair and declared the
meeting open at 6pm.
APOLOGIES
Crs Lumsden/Hutchison that the following apologies be received:
Cr T Mitchell (Chairperson)
Cr P Greagen OAM
Cr F Paynter
CARRIED
CONFLICT OF
INTEREST
Cr Brown declared a conflict of interest in relation to agenda item 12.7 –
Port Augusta Tennis Association Lighting Project, as he provided electrical
consultancy services to the Association. However he believed a conflict of
interest was not relevant to the presentation being provided on this item.
CONFIRMATION
OF PREVIOUS
MINUTES
Mayor Johnson/Cr Johnston that the minutes of the previous Operations
Committee Meeting (AR158235) held on 10/03/2015 be adopted as a
true and correct record of that meeting.
CARRIED
PRESENTATION
F10/543
Tennis Australia – Port Augusta Tennis Association Lighting
Proposal
Mr Michael Rowbottom, President of the Port Augusta Tennis Association
introduced Mr Lynton Franzi, Major Project Manager – Tennis Australia
and Mr Brett Hidson – Manager Community & Clubs – Tennis SA. He also
introduced representatives from the Port Augusta Tennis Association in
the gallery Mr Karl Martin and Mr Bruno Carcuro.
Mr Franzi provided a presentation on the Port Augusta Tennis Association
Lighting Proposal. (A copy of the power-point presentation is attached to
the minutes).
The presentation concluded at 6:21pm and the presenters and
Tennis Association representatives left the meeting.
Crs Johnston/Brown moved the resumption of proceedings (6:22pm)
CARRIED
AR15/12823
13/04/2015
-2-
QUESTION/S
WITHOUT NOTICE
Nil
BOER WAR PLAQUE
– GLADSTONE
SQUARE
AR15/11720
F10/611
Crs Benbow/Lumsden that Operations Committee recommends
Council supports the installation of a plaque in Gladstone Square
commemorating Port Augusta residents who served in the Boer War at an
estimated cost of $500 using funds from the Community Grants Budget.
REVIEW – ORDER
MAKING POLICY
1.1.13
AR15/11754
F10/20982
Crs Hutchison/Johnston that Operations Committee recommends
Council adopts the Order Making Policy 1.1.13, as amended.
REVIEW –
DISPOSAL OF LAND
& ASSETS POLICY
1.1.12
AR15/12997
F10/2082
Mayor Johnson/Cr Hutchison that Operations Committee recommends
Council adopts the Disposal of Land and Assets Policy 1.1.12, as
amended.
REGIONAL PUBLIC
HEALTH PLAN
2015-2020 – PORT
AUGUSTA –
ADOPTION
AR15/12164
F12/274
Crs Hutchison/Johnston that Operations Committee recommends
Council adopts the Regional Public Health Plan 2015-2020, as amended.
NOMINTION FOR
PORT AUGUSTA,
ROXBY DOWNS &
WOOMERA HEALTH
ADVISORY
COUNCIL
AR15/11539
F13/1077
Mayor Johnson/Cr Brown that Operations Committee recommends
Council supports a nomination being submitted by Cr Johnston
for a position on the Port Augusta, Roxby Downs and Woomera Health
Advisory Council.
APPOINTMENT OF
INDEPENDENT
MEMBERS TO AUDIT
COMMITTEE
AR15/12073
F10/67
Mayor Johnson/Cr Hutchison that Operations Committee recommends
Council:
CARRIED
CARRIED
CARRIED
CARRIED
CARRIED
1.
Appoints Mr John Ewen, Mr Chad McKnight and Mr Alan Morris to
the Audit Committee with the term of office expiring on 30
November 2018.
2.
Updates the Terms of Reference to reflect the appointments and
term of office.
CARRIED
AR15/12823
13/04/2015
-3-
SALE OF LAND –
HURCOMBE
CRESCENT, PORT
AUGUSTA WEST &
CHRISTOPHER
STREET, STIRLING
NORTH
AR15/12054
F10/622
Mayor Johnson/Cr Hutchison that Operations Committee recommends
Council:
1.
Maintains the current sale arrangements for the following
allotments:
56 Hurcombe Crescent, Port Augusta
58 Hurcombe Crescent, Port Augusta
60 Hurcombe Crescent, Port Augusta
9 Christopher Street, Stirling North –
2.
– First National Real Estate
– Elders Real Estate
– Raine & Horne Real Estate
Century 21 Real Estate
Be provided with a further report providing information in respect
of disposal for each of the allotments including a reduction in the
current reserve price and impact on rates.
Cr Lumsden/Mayor Johnson moved the suspension of proceedings to
enable discussion (6:34pm)
Crs Lumsden/Hutchison moved the resumption of proceedings (6:38pm)
Cr Brown sought leave to speak which was approved.
Crs Johnston/Brown moved the resumption of proceedings (6:41pm)
The motion was put and CARRIED
PORT AUGUSTA
TENNIS
ASSOCIATION –
LIGHTING PROJECT
AR15/12319
F10/543
Cr Brown declared a conflict of interest in relation to this matter, as he
provided electrical consultancy services to the Association, and vacated
the Chambers at 6:42pm.
Mayor Johnson/Cr Myers that Operations Committee recommends
Council:
1.
Receives and notes the report (AR15/12319) dated 07/04/2015
submitted by the Director Corporate Services, concerning “Port
Augusta Tennis Association – Lighting Project”.
2.
Provides “in principle” support for the Project, to enable the
Association to make further funding applications.
3.
Refers the request from the Port Augusta Tennis Association for a
contribution of $30,000 to the 2015/2016 Budget considerations.
CARRIED
Cr Brown re-entered the Chambers at 6:43pm.
BUDGET
COMPARISON TO
09/04/2015
AR15/12802
F10/96
AR15/12823
13/04/2015
Crs Brown/Hutchison that Operations Committee recommends
Council:
1.
Receives and notes the report (AR15/12802) dated 09/04/2015
submitted by the Director Corporate Services, concerning “Budget
Comparison to 09/04/2015”.
2.
Resolves to make the following re-allocations in the 2014/2015
Budget:
Waste Water Treatment Plant Capital
Waste Water Treatment Plant Maintenance
Jetties
Mayoral Statue
Civic Centre Solar Array
Evans Place Road Construction
Net Adjustment
CARRIED
The meeting was declared closed at 6:52pm.
AR15/12823
13/04/2015
$65,000
$85,000
$60,000
$140,000
-$200,000
-$43,000
$107,000
AR15/12823
13/04/2015
AR15/12823
13/04/2015
AR15/12823
13/04/2015
AR15/12823
13/04/2015
AR15/12823
13/04/2015
REPORT FOR:
Operations Committee
MEETING DATE:
11 May 2015
REPORT FROM:
Contracts & Events Officer
REPORT TITLE:
Community Grant Application – Port Augusta Scout Group
FILE NAME:
F15/396
RECORD NO:
AR15/12902
COMMUNITY VISION & STRATEGIC PLAN OBJECTIVE/S
5
We Celebrate
5.3 Celebrate together through a lively program of events, arts and activities.
PURPOSE
To seek Council approval to provide a Community Grant of $2000.00 (inc GST) to the Port
Augusta Scout Group for financial assistance to send 10 Scouts to the Sydney Jamboree and
5 scouts to the New Zealand Venture in January 2016.
RECOMMENDATION
Operations Committee recommends Council:
1.
Agrees to provide a Community Grant of $2000.00 (Inc GST) from the current
budget allocation (2014/2015) to the Port Augusta Scout Group for financial
assistance to send 10 Scouts to the Sydney Jamboree and 5 scouts to the New
Zealand Venture in January 2016. A condition of the grant is that a report giving full
results is received by Council within 60 days of the events taking place. If events are
not attended as above the grant is required to be paid back to council.
BACKGROUND
1.
A request for funding has been received from the Port Augusta Scout Group for
financial assistance to send 10 Scouts to the Sydney Jamboree and 5 scouts to the
New Zealand Venture in January 2016.
2.
The Port Augusta Scout Group has provided the youth of Port Augusta with a safe
and friendly environment in which to undertake a broad range of activities while
helping them develop personally for over 100 years.
3.
At a time when childhood and general community obesity has been identified as an
area of concern the Port Augusta Scout Group is enjoying a revival, allowing the club
to bring an active lifestyle choice to an increasing number of Port Augusta youth.
4.
The Port Augusta Scout group has developed a Strategic Plan to guide them through
the next five years. A copy is attached for further information.
-2–
DISCUSSION
1.
In January a group of 10 Scouts will travel to Sydney from 3rd – 14th for the 2016
Australian Jamboree and a smaller group of 5 Venturer Scouts will travel to New
Zealand for the 13 NZ Venture from 3rd – 16th January.
2.
The Scout Group acknowledge the financial support previously provided by Council
through rate relief and a community grant for $2500 in 2013 for upgrade to
infrastructure at the Scout hall however are seeking support to subsidise cost for the
15 young Scouts to expand their knowledge.
3.
The group has a number of goals they would like to achieve by participating in the
Jamboree and venture. Some of these are; to become more experienced as scouts;
to learn about different cultures; earn badges and to become better leaders.
4.
The current Port Augusta Scout Group has only recently been reformed and as a
result whilst all members possess great enthusiasm, they lack the scouting and
leadership experience that would be naturally present in longer established groups.
The Jamboree will give leaders of the group the opportunity to gain a vast amount of
scouting experience in a short space of time and will allow them to pass this
experience and enthusiasm on to other members of their troop and future recruits on
return. This will hopefully result in a strong foundation for the group, now and in the
future and allow Port Augusta Scouts to remain as a strong community minded youth
organisation.
5.
The cost to attend the Sydney Jamboree is approximately $1850 and the New
Zealand Venture $3500 per member a community grant of $2000 equates to just
$133 per child.
6.
The Scouts who are going are fundraising to subsidise their fees and the club is being
proactive in seeking other grants and therefore it is recommended that Council
support the Port Augusta Scout Group with a community grant of $2000 from the
current budget allocation (2014/2015).
7.
Approval of the grant from the 2014/2015 budget allocation does not set a precedent
for future application by the Scout Group.
RISK MANAGEMENT
1: Financial/Budget
$2000.00 (Inc GST) from the 2014/2015 Community Grants Budget Line.
2: Legal
n/a
3: Environment
n/a
4: Community
4.1
General
Attendance at the Sydney Jamboree and Venture New Zealand will be a great
opportunity for the Scouts to raise the profile of Port Augusta and the region
at a National and international event.
The Scouts are a group that is active in the community and participate in
Council Events such as Clean up Australia Day (had 2 clean up groups) and
the Augusta Markets by collecting cans and rubbish and cleaning the food
court area.
4.2
OPAL Program
Participating in outdoor activities with the scout groups promotes the healthy
active lifestyle of the OPAL program.
Brooke Mundy
27/04/2015
DATE
NAME
REQUESTED $
APPROVED $
PAID $
REPORT
RECEIVED
23/6/2014
Crossroads Music Festival
$1310
$1310
$1191
23/6/2014
Stirling North Ladies Badminton Club
$900
$900
$900
Y
23/6/2014
Tri State Games
$1600
$1600
$921.13
Y
28/7/2014
Daffodil Day
$1000
$1000
$1000
Y
28/7/2014
RSL Virtual War Memorial Project
$1589
$1589
$1589
N/A
11/8/2014
Port Augusta Secondary School
$100
$100
$100
N/A
13/8/2014
Caritas Collage
$100
$100
$100
N/A
25/8/2014
RFDS
$2000
$2000
$2000
Y
25/8/2014
Christmas Party for Special Children
$1540
$1540
$1540
Y
25/8/2014
Model Engineers Society
$3372.60
$3372.60
$3372.60
25/8/2014
Port Augusta Performing Arts – Blues in the
Barracks
$805
$805
$805
Y
25/8/2014
Police Charity Golf Day
$400
$400
$400
Y
3/9/2014
Blue Light Disco
$210
$210
$210
22/9/2014
Cirkids
$400
$400
$400
1/12/2014
Swimming Club Carnival & Open Water Swim
$400
$400
$400
1/12/2014
Quilters Guild – This goes with that revisited
$400
$400
$400
1/12/2014
Anti- Poverty Week – Uniting Care Wesley
$400
$400
$400
1/12/2014
Life without Barriers – Vegetable garden
$200
$200
$200
8/12/2014
Christmas Tree Festival
$850
$850
$850
8/12/2014
Barngarla Stories
$3500
$3500
$3500
23/12/2014
Academic Achiever Award
$500
$500
$500
16/3/2015
Community Awareness Project – Magnets
$400
$400
$400
31/3/2015
Port Augusta Masters Cricket - Shirts
$400
$400
$400
31/3/2015
Million Paws Walk Banners
$400
$400
$400
$22,777
$22,777
$21,979
Budget
Allocation
$35,000
BALANCE
$13,021
Available
REPORT FOR:
Operations Committee
MEETING DATE:
9 June 2015
REPORT FROM:
Director – City & Cultural Services
REPORT TITLE:
Sale Process – Netball Courts Railway Parade, Port Augusta
FILE NAME:
F10/622
RECORD NO:
AR15/15283
COMMUNITY VISION & STRATEGIC PLAN OUTCOMES
1
1.3
We Thrive
We use and manage our financial and physical resources in the best interests of our
community, now and for the future.
PURPOSE
The purpose of this report is to provide Elected Members with various options in relation
to the disposal process for the Netball land and to obtain a commitment from Council as
to their preferred option.
RECOMMENDATION
Operations Committee recommends Council:
1.
Approves commencing with the process outlined within Option 1, as detailed
within this report, as follows:
1.1
Option 1
A maximum sale price be sought, via an open market sale process, for the
land described within CT 5700/862, CT5467/396 and CT5823/693 and a
selective tender Expression of Interest process is undertaken to engage a
qualified Property Consultant/Real Estate Agent to facilitate the sale
process. The selected Property Consultant/Real Estate Agent to provide
Council with advice as to their recommended sale process based on
market projections.
2.
Supports notification being issued to the Port Augusta Netball Association giving
three months notice for the termination of the lease, as per the lease agreement
and issues a licence to occupy the site on a monthly basis, which will be
withdrawn once the property is sold.
BACKGROUND
Council has been in negotiations with the Port Augusta Netball Association in relation to
their relocation to the Central Oval Precinct as part of the sites redevelopment. Netball
will commence the 2015 Season at the newly constructed Netball Courts within the
Central Oval Precinct.
2
Currently Netball has a lease to occupy for the Railway Parade land from Council,
however with their relocation to Central Oval this lease will be terminated. As per the
lease agreement three months notice of termination of the lease is required and a letter
to this effect will be forwarded once Council has made a decision in relation to the future
of the land.
It should also be noted that Knights of the Southern Cross have an arrangement with the
Port Augusta Netball Association whereby they have access to the Netball Hall and hold
their Bingo Nights every Monday.
•
The property comprises 17 allotments in 3 titles (CT5700/862, CT5467/396 and
CT5823/693) and has been excluded from the classification as Community Land
under the provisions of the Local Government Act 1999.
•
There is an easement register to Council against CT 5700/862 and CT5823/693 for
effluent purposes, however Infrastructure Department have advised that although
the easement is registered, it is unknown as to whether any actual infrastructure is in
place within the easement area.
DISCUSSION
The relocation the Port Augusta Netball Association to the Central Oval precinct was an
important component of the redevelopment of this precinct and Central Oval now
supports Football, Basketball, Tennis and Netball, with further opportunities still being
investigated in relation to the future use of the Old Basketball stadium by other
community groups. Central Oval Precinct is also a community hub and will also support
community events and functions.
The financial strategy for the development of the new netball courts was based on,
Council funding the construction of the new netball courts at an estimated cost of
$800,000 and the profits from the sale of the Council Land on Railway Parade being used
to retire, if possible, all of this debt.
Subsequently, a valuation for the Railway Parade land has been sourced from a licensed
independent valuer based on unimproved land value of the land.
As indicated previously the land comprises 17 allotments as described within 3
Certificates of Title and the hall has been constructed, over four of the allotments, being
Allotments 95, 96, 97 and 98 (refer attached site plan – Appendix A).
If Council wished to retain the Hall for future community use, it would therefore be in
Council’s best interest to retain Allotments 95, 96, 97 and 98 in their entirety, as no
further sub-division costs would be applicable.
That would then result in a total of 13 Allotments being available for sale, however it is
noted that Allotment 105 could be further sub-divided by a developer which could
achieve and additional 3-4 allotments.
Considerations prior to Disposal of Land
Clause 6.1 of the Disposal of Land and Assets Policy requires Council to consider a
number of issues before proceeding with the sale of land or assets. The following
information has been prepared for consideration by Elected Members, in relating to each
of the issues required to be considered, as part of the decision making process:
3
1)
Usefulness of the Land or Asset
The Council land located on Railway Parade incorporates 12 bitumen netball
courts plus a hall which also included a canteen and adjacent car parking
facilities. With the construction of the new Netball Courts and the agreement of
the Port Augusta Netball Association, to relocate netball to the Central Oval
Precinct means that these netball courts are no longer required.
The Hall constructed on the Railway Parade land is in good condition and is used
on Monday evenings by Knights of the Southern Cross for bingo.
The Netball
Courts and Hall were constructed by Council in conjunction with the State
Government, when Netball was relocated from State Government land, required
for the TAFE SA expansion.
The asset itself (hall), being in good condition, and could possibly be used by
community groups, however this would result in another facility that Council
would then be required to operate and maintain. As community groups are not
generally charged by Council for their access to Council facilities, this would place
a further financial burden on Council.
The Knights of the Southern Cross, could
operate their bingo nights within the function space at Central Oval to ensure that
they can still provide this much needed fundraising opportunity that many
community groups support.
Depending on the type of development that occurs on this site, it may be that the
Hall could be retained by a developer to be used as part of a development on site,
however any such future use of the Hall would not be within the control of Council
once the land is sold.
2)
Current market value of the Land
Council has engaged an independent licensed valuer to provide Council with an up
to date unimproved site value for the entire area. The reason an unimproved
site value was obtained, is that it is unknown if the Hall would be retained as part
of any development proposal for the site. There are starting point had to be
determined in relation to the value of the site, which would be reduced
significantly if Council imposed caveats requiring the land or hall to be used for
specific purposes.
3)
Annual cost of Maintenance
The Port Augusta Netball Association has been responsible for the ongoing
maintenance and management of the Hall. However, when the facility is placed
under Council’s ownership, if the building was to be retained, then costs of water,
power, electricity, insurance, as well as ongoing maintenance costs would become
Council’s responsibility.
Annual maintenance costs for other similar Council
facilities, such as the Quilters Guild and Garden Club are in the vicinity of $3,500,
so therefore is could be estimated that to retain and maintain this Hall would cost
Council up to approximately $5,000 per year. At this stage, no inspection has
been undertaken to determine the life of the building as well as other
infrastructure such as roofing, gutters, air conditioning and so on.
4)
Any alternative future use of the Land
The subject land comprises 17 allotments as described within three Certificates of
Title.
From a Council perspective there is no proposed Council program or
activity that would require the use of this land. If sold, however the community
may achieve a larger type development on the land, or alternatively the
allotments could be sold individually for residential purposes. The land is zoned
‘residential’ within the Port Augusta Development Plan.
4
5)
Any duplication of the Land or Asset or the service provided by the land or asset
The new Netball Courts have been constructed at Central Oval and therefore the
netball courts on the subject land are no longer required for this purpose. Council
has buildings which are used by community groups, such as the Quilters Guild,
Garden Club, Port Augusta Harness Racing Club, which are provided at minimal
cost, and to take on the responsibility of another facility will place further financial
burden on the Council.
With the Old Basketball Stadium also becoming
available, following the Port Augusta Basketball Association’s relocation to the
new Central Oval complex, Council will be required to upgrading this facility for
community use. Due to its location, this is the referred facility to be retained by
Council.
6)
Any impact the disposal of the land or asset may have on the community
The sale of this land would have minimal impact on the community. The Port
Augusta Netball Association has been relocated to the Central Oval precinct and
has new offices, courts and access to the Central Oval Building, as required,
through a booking process with the Venue Manager. As stated previously the
Knights of the Southern Cross could also access Central Oval Community Space
to hold their Monday night bingo sessions or alternatively they may wish to
relocate to another site of their choice, such as the Parish Centre on Tassie
Street, if that was available.
7)
Any cultural or historical significance of the land
There is no cultural or historical significance that relates to the subject land that
needs to be taken into consideration.
8)
The positive and negative impacts the disposal of the land or asset may have on
the operations of the Council
The positive impacts the disposal of the land will have on Council would mainly be
around the ability to raise rate against the allotments, if sold individually.
However, if the land was sold in its entirety, for aged accommodation for
example, there may be rate rebate applicable under the Local Government Act
1999 that could apply, which may result in a decreased rate level against the
land.
9)
The long term financial plans and strategic direction of the Council
The approved strategic direction, as outlined within Council’s Strategic
Management Plan, for the Central Oval Precinct, was to redevelop this area to
create a multi-use facility supporting as many sporting groups as possible and
also includes general community spaces for the benefit of the whole community.
The long term financial plans are predicated on planned expenditure and revenue
outcomes over a 10 year period and the sale of the land would ensure that any
debt incurred to construct the new Netball Courts is able to be retired, if at all
possible, to ensure the Council’s ongoing financial sustainability.
10)
The remaining useful life, particularly of the Asset
The Hall is in good condition and could be used ongoing by the Community
however as stated previously retaining the hall would place greater financial
impost on the Council in relation to maintaining the facility.
11)
The benefit and risk analysis of the proposed disposal
Options have been included within this report outlining the benefit and risks
associated with the approved disposal process. Refer Option 1 and Option 2
below.
5
12)
The results of any community consultation process
No specific consultation has been undertaken in relation to the actual sale of the
Council land on Railway Parade, however general community consultation and
specific consultation with relevant sporting associations in relation to relocation to
the Central Oval Precinct has been undertaken since 2011. It has been widely
accepted by the community that the relocation of Netball would take place as part
of the Central Oval redevelopment.
13)
Any restrictions of the proposed disposal
There are no restrictions applicable to Council in relation to the sale of the Council
land on Railway Parade. The land was excluded from the classification as
Community Land, and there are no Trusts or Dedications that apply to the land.
14)
The content of any community land management plan
Not applicable as the land is not classified as community land.
15)
Any other relevant policies of the Council including Internal Financial Controls and
Prudential Management
A report was prepared and submitted by the Director Corporate Services, Mr
Michael Dunemann, to Council in February 2012 which provided a comprehensive
overview of the proposed Central Oval Redevelopment project and addressed the
prudential issue provisions outlined within Section 48(2) of the Local Government
Act 1999.
Council also has developed an Internal Financial Control policy 1.1.11 which
provides guidelines in relation to the management of Council financial accounting
practices.
Consideration must now be given as to what outcome Council would prefer to achieve
from the disposal of the Netball Land on Railway Parade. Is it a maximum sale price
return or a social outcome. The latter would be likely to reduce the revenue that Council
would achieve as part of the sale process?
Moving forward, it is important that Council consider the various options in relation to
the sale and/or development of the Council Land on Railway Parade. Two options have
been provided for Elected Members consideration, and a decision in relation to which is
the preferred option to proceed with, is now required.
Option 1 – Maximum Sale Price
To achieve a maximum sale price for the Netball Land, Council would need to undertake
an open market sale process, which is in line with the provisions of Council’s Disposal of
Land and Assets Policy 1.1.12.
As outlined within the valuation, the market for vacant land for residential development
over the last 3 years has resulted in only 22 sales. The market has slowed significantly
since early 2010 with a huge reduction in levels of demand from both owner occupiers
and investors. The valuer also adds that if all allotments of the subject land were
offered to the market with individual Titles, it is expected that a sale period of around 4
years is likely.
It may be in Council’s best interest, if an open market sale process is to be undertaken,
to consider the disposal of the land in its entirety, rather than individual allotments.
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Through engaging a Property Consultant/Real Estate Agent who also has experience in
the sale of larger holdings, Council may be able to achieve disposal of the land in the
short term, however this obviously will be subject to the market and advice from the
Property Consultant/Real Estate Agent as to the preferred sale process, in their opinion,
to achieve the best financial return for Council.
If Option 1 is preferred, it is recommended that Council seeks Expression of Interest
from Property Consultant/Real Estate Agents, both locally and from Adelaide, to enable
them the submit a proposal to Council for the sale of the land, whether that be
individually or as one large holding, and for them to provide advice to Council, based on
their skills and experience, as to the process that should be undertaken for the sale of
the land.
Option 2 – Social Outcome
If Council wishes to place caveats against the Titles requiring the land to be used for a
specific purpose (eg Aged Accommodation), which may or may not include retaining the
Hall for future use, the outcome of such a decision would more than likely result in a
significant reduction in the price paid for the land.
To achieve a social outcome for the community, negotiations would need to be
undertaken with developers who would be required to submit an Expression of Interest
outlining their proposal for the land. It is not unusual in such situations, for developers
to seek support from Council to acquire the land at a reduced value to ensure the project
is financially sustainable.
If this Option is preferred any Expression of Interest would also require that an offer is
made to Council in relation to the price for the land. This would then enable Council to
consider the community benefit of the proposed development as well as the value that is
offer for the land.
Options Summary
Based on the information provide above, a decision by Council is required as to which
Option is supported:
1)
Option 1 - a maximum sale price be sought, via an open market sale process, for
the land described within CT 5700/862, CT5467/396 and CT5823/693 and a
selective tender Expression of Interest process is undertaken to engage a
qualified Property Consultant/Real Estate Agent to facilitate the sale process. The
selected Property Consultant/Real Estate Agent to provide Council with advice as
to their recommended sale process based on market projections.
2)
Option 2 – an Expression of Interest be sought from interested developers to
construct a development on the site, and to provide Council an overview of the
proposed project including evidence of the benefits that such a development
would provide the community of Port Augusta. The Expression of Interest would
also include an offer for the land and project development timelines.
The Port Augusta Netball Association also has a lease over the land at the Railway
Parade site, and to enable the sale process of this land to proceed, it is recommended
that a letter be issued to the Port Augusta Netball Association giving three months notice
of the termination of the lease.
As Netball Clubs are still using the site for training and
storage of equipment, it is recommended that a licence to occupy the site be granted to
the Port Augusta Netball Association on a monthly basis, on the basis that the land is to
be vacated with one months notice, should the property sell.
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CONFIDENTIALITY PROVISIONS
Not applicable.
RISK MANAGEMENT
1: Financial/Budget
The cost of engaging a Property Consultant/Real Estate Agent to undertake a sale
process would be deducted from the sale price achieve for the land, with the profit being
used to retire debt, or as approved by Council.
The financial and budget implications in relation to retaining the land or a portion of the
land and the hall are outlined within the body of the report.
2: Legal/Policy
Council has developed policies in relation to the Disposal of Land and Assets, Internal
Financial Controls, Prudential Management for provide guidelines in relation to the
process that will be adhered to in relation to the sale of land and the management of its
financial resources.
Council also has a Long Term Financial Plan that provides Council with a 10 year financial
information based on it’s current and known future policies and strategies.
3: Environment/Planning
The subject land is zoned ‘residential’ so therefore any future development would be
required to meet the policies for residential land as outlined within the Port Augusta
Development Plan.
4: Community
4.1
General
The community have been aware that it was proposed to relocate netball
back to the Central Oval Precinct to ensure multi-use facilities are
achieved to assist the ongoing financial sustainability of the sporting
groups located in this location.
4.2
OPAL Program
Not applicable.
Lee Heron
01/05/2015
APPENDIX A
REPORT FOR:
Operations Committee
MEETING DATE:
11 May 2015
REPORT FROM:
Director – City & Cultural Services
REPORT TITLE:
Central Oval Precinct – Long Term Leases Port Augusta Netball
Association, Port Augusta Basketball Association, and Spencer
Gulf Football League
FILE NAME:
F15/428, F15/427 & F15/429
RECORD NO:
AR15/16424
COMMUNITY VISION & STRATEGIC PLAN OUTCOMES
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2.1
We Create
Provide facilities and programs that support creativity and excellence in recreation,
sport and the arts.
PURPOSE
The purpose of this report is to seek support from Council in relation to various leases
and licences to be issued to groups within the Central Oval Complex.
RECOMMENDATION
Operations Committee recommends Council:
1.
In accordance with Section 202 of the Local Government Act 1999, undertakes
community consultation to provide an opportunity for the community to comment
on the proposal to issue 21 year leases to Port Augusta Basketball Association,
Port Augusta Netball Association and Spencer Gulf League, within the Central
Oval Precinct.
BACKGROUND
The Port Augusta Basketball Association, Port Augusta Netball Association and Spencer
Gulf League will all occupy an area within the redeveloped Central Oval Stadium and
surrounds. The Central Oval Precinct is contained within Crown Record Volume 5421,
Folio 328.
The Central Oval Precinct is under Council’s care, control and management and
dedicated for parkland purposes pursuant to the Crown Lands Act 1929 – Government
Gazettal 13 February 1997. The land is also classified as community land under the
provisions of Section 193 of the Local Government Act 1999. Consent must be granted
for the issue of a lease over Crown Land by the Minister.
Ongoing discussions and negotiations have been ongoing with the various groups in
regarding to their relocation to or new location within the Central Oval precinct. This
came as a result of the Central Oval Redevelopment becoming a realistic and achievable
project.
2
The redevelopment of Central Oval was predicated on the Port Augusta Basketball
Association relocating from the old Basketball Stadium to a new three court and office
component within the Central Oval Complex.
The Port Augusta Netball Association’s
relocation from Railway Parade to occupy 11 newly constructed outdoor courts, three
indoor courts and office within the Central Oval Precinct/Complex.
The SGL has been provided a new League Room within the Central Oval Complex.
DISCUSSION
It is proposed that the occupation of the Port Augusta Basketball Association Inc, Port
Augusta Netball Association Inc and Spencer Gulf Football League Inc within the newly
redevelopment Central Oval Precinct be under a 21 year agreement for each entity. The
proposed area that will pertain to each entity is as outlined on the attached site plans
(refer Appendix A).
As the land is classified as Community Land, Council must undertake a consultation
process to provide the community with an opportunity to comment on a proposal to
alienate the Community Land by a lease or licence.
It is proposed that Council immediately commence the consultation process (refer Advert
AR15/16441 – refer Appendix B).
An application has been lodged with the Department of Environment, Water and Natural
Resources, along with the $391 application fee, for approval to issue long term leases to
the Port Augusta Tennis Association, Port Augusta South Football Club Inc, Port Augusta
Basketball Association Inc, Port Augusta Netball Association Inc and Spencer Gulf
Football League.
CONFIDENTIALITY PROVISIONS
Not applicable.
RISK MANAGEMENT
1: Financial/Budget
The financial return to Council for the use of the Central Oval Precinct by each group will
be based on entry fees charged by Council through the Oval Authority.
2: Legal/Policy
Section 202 of the Local Government Act 1999 outlines the provisions that must be
adhered to in relation to granting leases or licences for a period greater than 5 years.
Section 202(2) of the Local Government Act 1999 also provides that Council must
undertake the relevant steps as outlined within its Public Consultation & Engagement
Policy 1.1.08, to ensure the community has an opportunity to comment of the proposal.
3: Environment/Planning
Not applicable.
4: Community
4.1
General
Pursuant to Section 202(2) of the Local Government Act 1999, Council
must undertake community consultation before granting a lease or licence
relating to Community Land, which would exceed a term of 5 years does
not apply.
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4.2
Aboriginal Advisory Committee
The Aboriginal Advisory Committee will be forwarded information in
relation to the issue to ensure they are aware of their opportunity to
comment on the proposal to issue 21 year leases within the Central Oval
Complex.
4.3
OPAL Program
The Port Augusta Netball Association Inc, Port Augusta Basketball
Association Inc and Spencer Gulf Football League Inc supports the OPAL
Program mandate of providing physical activities and lifestyles for
members of the community.
Lee Heron
06/05/2015
APPENDIX A
5
6
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APPENDIX B
Feedback Sought from Community
Port Augusta City Council is proposing to enter into long term lease arrangements with
the Port Augusta Netball Association Inc, Port Augusta Basketball Association Inc and
Spencer Gulf Football League Inc in relation to areas within the newly developed Central
Oval Complex/Precinct, as described within Allotment 501 Crown Record Volume 5421,
Folio 328.
As the land is classified as Community Land, under the provisions of Section 202 of the
Local Government Act 1999, Council must before entering into a lease over land that is
classified as Community Land, seek comment from the community. The Port Augusta
Netball Association Inc, Port Augusta Basketball Association Inc and Spencer Gulf
Football League Inc require to secure a long lease period over the portion of the Central
Oval Complex/Precinct that they will occupy, as this security of tenure is required as part
of all of the Clubs’ relocation from current/previous premises.
Council at its meeting held on 25 May 2015, approved commencing a consultation
process with the community, to enable comments to be received and considered by
Council.
Council seeks the views of the community in relation to granting the Port Augusta
Netball Association Inc, Port Augusta Basketball Association Inc and Spencer Gulf
Football League 21 year leases over the area of the Community Land as described
within Crown Record 5421/328 (Central Oval Precinct) that relates to each individual
club, and written submissions should be forwarded to Council by 4pm on Tuesday 30
June 2015, addressed to Mrs L Heron, Director – City & Cultural Services, Port Augusta
City Council, PO Box 1704, Port Augusta SA 5700. For further information please call
86419100.
Please note that details of all submissions will be included within a public agenda to
Council for consideration.
John Banks
Chief Executive Officer
The Transcontinental Edition – Wednesday 3 June 2015
AR15/16441