Agenda of Ordinary Meeting - Monday, 29 May 2023

UNCONFIRMED MINUTES OF THE ORDINARY MEETING OF PENRITH CITY COUNCIL HELD REMOTELY USING AUDIO VISUAL LINKS, AUDIO STREAMED ON THE COUNCIL WEBSITE AND IN THE COUNCIL CHAMBERS
ON MONDAY 1 MAY 2023 AT 7:00PM

NATIONAL ANTHEM

The meeting opened with the National Anthem.

WEBCASTING STATEMENT

Her Worship the Mayor, Councillor Tricia Hitchen read a statement advising that Council Meetings are recorded and webcast.

STATEMENT OF RECOGNITION

Her Worship the Mayor, Councillor Tricia Hitchen read a statement of recognition of Penrith City’s Aboriginal and Torres Strait Islander Cultural Heritage.

PRAYER

The Council Prayer was read by the Rev Christine Bayliss-Kelly.

PRESENT – IN PERSON

Her Worship the Mayor, Councillor Tricia Hitchen, Deputy Mayor Councillor Todd Carney and Mark Davies, Sue Day, Mark Rusev, Marlene Shipley

PRESENT – ATTENDED REMOTELY

Bernard Bratusa, Robin Cook, Kevin Crameri OAM, Ross Fowler OAM, Glenn Gardiner, Karen McKeown OAM, Johnathan Pullen, John Thain

LEAVE OF ABSENCE

Leave of Absence was previously granted to Councillor Jim Aitken OAM.

APOLOGIES

There were no apologies.

CONFIRMATION OF MINUTES - Ordinary Meeting - 20 March 2023

73 RESOLVED on the MOTION of Councillor Todd Carney seconded Councillor Marlene Shipley that the minutes of the Ordinary Meeting of 20 March 2023 be confirmed.

CONFIRMATION OF MINUTES - Extraordinary Council Meeting - 5 April 2023

74 RESOLVED on the MOTION of Councillor Mark Rusev seconded Councillor Sue Day that the minutes of the Extraordinary Council Meeting of 5 April 2023 be confirmed.

DECLARATIONS OF INTEREST

Councillor Mark Rusev declared a Non-pecuniary Conflict of Interest – Significant in Item 3 – Request For Major Event Sponsorship – Penrith CBD Corporation Limited as he is a Director on the Penrith CBD Board as Council’s representative. Councillor Mark Rusev stated that he would leave the meeting during the discussion of, and voting on, this item.

Councillor Karen McKeown OAM declared a Pecuniary Interest in Item 5 – Amendment to Draft Voluntary Planning Agreement for 16 Chapman Street, Werrington as she is a Director of LG Super with potential investments in companies that may be affected by the decision. Councillor McKeown OAM stated that she would leave the meeting during the discussion of, and voting on, this item.

Councillor Karen McKeown OAM declared a Pecuniary Interest in Item 7 – Amendment to Penrith Development Control Plan 2014 – Glenmore Park Stage 3 as she is a Director of LG Super with potential investments in companies that may be affected by the decision. Councillor McKeown OAM stated that she would leave the meeting during the discussion of, and voting on, this item.

Councillor Bernard Bratusa declared a Non-pecuniary Conflict of Interest – Less than Significant in Item 10 – RFT22-23-31 Jordan Springs Village Lake Decking Replacement as members of his family are residents in the area. Bernard Bratusa stated he will not participate or vote on, this item.

Councillor Mark Rusev declared a Non-pecuniary Conflict of Interest – Less than Significant in Item 11 – Exhibition of Draft 2023-24 Operational Plan and Draft 2023-24 Fees & Charges as he is a Director on the CBD Board as Council’s representative. Councillor Mark Rusev stated that he would not participate or vote on, this item.

Mayoral Minutes

1 The 30th Anniversary of Penrith Zonta

75 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Todd Carney that the Mayoral Minute on The 30th Anniversary of Penrith Zonta be received.

2 Council honours sporting champion and ambassador of the City Jessica Fox OAM

76 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Todd Carney that the Mayoral Minute on Council honours sporting champion and ambassador of the City Jessica Fox OAM be received.

3 Recruitment of General Manager

77 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Todd Carney that the Mayoral Minute on Recruitment of General Manager be received.

Notices of Motion

1 Jolly Street

A Motion was MOVED by Councillor Kevin Crameri OAM seconded Councillor Sue Day that $60,000 be added to the budget for Jolly Street to rectify flooding issues.

The MOTION was PUT

The MOTION was LOST

Questions on Notice

1 Repainting of Centre Lines on Bridge

Councillor Kevin Crameri OAM ASKED:

On 11 March I asked that we urgently repaint the centre lines on Eighth Avenue bridge cause of the fatality.

I have had no response since then Can I have an update?

Can I be told why I can’t get a response in that time?

Note: A response was included in the Business Paper. In addition to a Memo being issued to all Councillors.

Reports of Committees

1 Report and Recommendations of the Local Traffic Committee Meeting held on 3 April 2023

78 RESOLVED on the MOTION of Councillor Karen McKeown OAM seconded Councillor Mark Davies that the recommendations contained in the Report and Recommendations of the Local Traffic Committee meeting held on 3 April, 2023 be adopted.

2 Report and Recommendations of the Policy Review Committee Meeting held on 17 April 2023

79 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Mark Rusev that the recommendations contained in the Report and Recommendations of the Policy Review Committee meeting held on 17 April, 2023 be adopted.

DELIVERY PROGRAM REPORTS

Outcome 1 - We protect and enhance an ecologically sustainable environment

Procedural Motion

80 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Sue Day that this item be considered after Committee of the Whole.

2 Acceptance of Biodiversity Offset Funding – Transport for NSW

81 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Marlene Shipley

That:

1. The information contained in the report on Acceptance of Biodiversity Offset Funding – Transport for NSW be received

2. Council accept the offer of offset funding of $452,456 from Transport for NSW for weed control across 8 Council reserves.

3. Council write to relevant State Members thanking them for their significant offset contribution towards the preservation of our natural bushland areas and threatened species habitat.

4. The General Manager be authorised to sign all necessary legal documents in relation to this matter.

Outcome 2 - We are welcoming, healthy, happy and connected

Having previously declared a Pecuniary Conflict of Interest – Significant in Items 3, Councillor Mark Rusev left the meeting, the being 7:35pm.

3 Request For Major Event Sponsorship - Penrith CBD Corporation Limited

82 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Todd Carney

That:

1. The information contained in the report on Request For Major Event Sponsorship - Penrith CBD Corporation Limited be received

2. Council endorse sponsorship funding of $5,000 (ex GST) to Penrith CBD Corporation Limited in support of the 2023 Twilight Penrith Festival Event.

3. A total of $5,000 be contributed as sponsorship for the 2023 Twilight Penrith Festival Event to be shared equally from each Ward’s Voted Works.

Councillor Mark Rusev returned to the meeting at 7:43pm.

4 Children's Services Grant Funded Programs

83 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Sue Day

That:

1. The information contained in the report on Children’s Services Grant Funded Programs be received.

2. Penrith City Council approve the Children and Parenting Support (CaPS) funding amount of $375,485 for the next 3 years up to 2026 to implement specialised programs to help improve children’s wellbeing and development.

3. Penrith City Council delegates future funding obligations and approvals to the Penrith City Council Children’s Services Cooperative Board for grant funding above $250k.

4. That Children’s Services Cooperative Board provide an annual report to Council on the funding amounts received for the financial year and that modifications be made to FS 001 Grant Applications Policy to reflect Council’s resolution delegating approval of funding grants to Penrith City Council Children’s Services Cooperative Board.

Outcome 3 - We plan and shape our growing City

Having previously declared a Pecuniary Conflict of Interest – Significant in Items 5 and 7, Councillor Karen McKeown OAM left the meeting, the being 7:45pm.

5 Amendment to Draft Voluntary Planning Agreement for 16 Chapman Street, Werrington

84 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Sue Day

That:

1. The information contained in the report on Amendment to Draft Voluntary Planning Agreement for 16 Chapman Street, Werrington be received

2. Council endorse the amended draft Voluntary Planning Agreement for 16 Chapman St, Werrington, provided as a separate enclosure to this report.

3. The draft Voluntary Planning Agreement be publicly notified in accordance with the requirements of Environmental Planning and Assessment Regulation 2000 and Penrith Developer Infrastructure Agreements Policy.

4. A further report be prepared for Council following the notification of the draft Voluntary Planning Agreement, if submissions are received and amendments to the draft Voluntary Planning Agreement are proposed.

5. Council endorse the Voluntary Planning Agreement for 16 Chapman Street, Werrington, for execution, where no submissions are received during the notification and no amendments are proposed.

6. If the Voluntary Planning Agreement is to be executed, Council authorise the General Manager to finalise and sign the Voluntary Planning Agreement and make any minor amendments where necessary to ensure its legality (e.g., typographic errors, dates, etc.).

7. The Common Seal of the Council of the City of Penrith be affixed to all documents as required, and the General Manager be authorised to sign all necessary legal documents in relation to this matter.

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

For	Against
Councillor Robin Cook
Councillor Todd Carney
Councillor Ross Fowler OAM
Councillor Mark Davies
Councillor Jonathan Pullen
Councillor John Thain
Councillor Kevin Crameri OAM
Councillor Sue Day
Councillor Marlene Shipley
Councillor Glenn Gardiner
Councillor Bernard Bratusa
Councillor Mark Rusev
Councillor Tricia Hitchen

7 Amendment to Penrith Development Control Plan 2014 - Glenmore Park Stage 3

85 RESOLVED on the MOTION of Councillor Marlene Shipley seconded Councillor Ross Fowler OAM

That:

1. The information contained in the report received

2. The draft amendment to the endorsed GP3 chapter of Penrith Development Control Plan 2014 be placed on public exhibition and relevant stakeholders be notified.

3. The General Manager be granted delegation to make any minor changes to the draft amendment to the endorsed GP3 chapter of Penrith Development Control Plan 2014 prior to exhibition in accordance with Council’s endorsed policy.

4. The draft amendment to the endorsed GP3 chapter of Penrith Development Control Plan 2014 be publicly exhibited, in accordance with the relevant provisions of the Environmental Planning and Assessment Act, 1979 and associated Regulations and Councils Community Participation Plan.

5. A further report be presented to Council following the public exhibition.

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

For	Against
Councillor Robin Cook
Councillor Todd Carney
Councillor Mark Davies
Councillor Jonathan Pullen
Councillor John Thain
Councillor Ross Fowler OAM
Councillor Kevin Crameri OAM
Councillor Sue Day
Councillor Marlene Shipley
Councillor Glenn Gardiner
Councillor Bernard Bratusa
Councillor Mark Rusev
Councillor Tricia Hitchen

Councillor Karen McKeown OAM returned to the meeting, the being 7:46pm.

6 Reporting on Determined Clause 4.6 Variations to Development Standards

86 RESOLVED on the MOTION of Councillor Bernard Bratusa seconded Councillor Mark Davies that the information contained in the report on Reporting on Determined Clause 4.6 Variations to Development Standards be received.

Outcome 4 - We manage and improve our built environment

8 RFT 22/23-02 Parker Street Athletics Amenities, Penrith

87 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Ross Fowler OAM

That:

1. The information contained in the report on RFT 22/23-02 Parker Street Athletics Amenities, Penrith be received.

2. Council decline to accept any tenders received for RFT 22/23-02 Parker Street Athletics Amenities and cancel the current proposal as detailed in the tender documentation.

9 Grant Acceptance - Essential Community Sport Assets Program

88 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Ross Fowler OAM

That:

1. The information contained in the report on Grant Acceptance - Essential Community Sport Assets Program be received

2. Council endorse acceptance of the grant awards for The Kingsway Sporting Precinct ($955,999) and Andrews Road Baseball Facility ($343,842)

3. The General Manager be authorised to sign all necessary legal documents in relation to this matter.

4. Letters of appreciation be issued to the NSW Government, local State Members and Penrith Baseball Club.

10 RFT22/23-31 Jordan Springs Village Lake Decking Replacement

89 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Ross Fowler OAM

That:

1. The information contained in the report on RFT22/23-31 Jordan Springs Village Lake Decking Replacement be received

2. The tender from Wardrope & Carroll Engineering, for the amount of $165,610.00 (excluding GST) be accepted for RFT22/23-31 Jordan Springs Village Lake Decking Replacement. Any potential variations will be assessed and approved from the contingency within the budget.

3. The General Manager be authorised to sign all necessary legal documents in relation to this matter.

Outcome 5 - We have open and collaborative leadership

11 Exhibition of Draft 2023-24 Operational Plan and Draft 2023-24 Fees & Charges

90 RESOLVED on the MOTION of Councillor Karen McKeown OAM seconded Councillor John Thain

That:

1. The information contained in the report on Exhibition of Draft 2023-24 Operational Plan and Draft 2023-24 Fees & Charges be received.

2. In accordance with the Local Government Act 1993 and Local Government (General) Regulation 2005, the Draft 2023-24 Operational Plan and Draft 2023-24 Fees and Charges be placed on Public Exhibition for 28 days commencing on Friday 5 May 2023 and closing on Thursday 1 June 2023 (inclusive).

3. The Public Exhibition arrangements are implemented as detailed in this report, and submissions from the community are invited.

12 Debt Write Off Report

91 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Mark Rusev

That:

1. The information in this report on Debt Write Off be received.

2. The one sundry debt totalling $4,107 outlined above be written off as irrecoverable.

13 Acceptance of Grant Funding - Regional and Local Roads Repair Program

92 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Mark Rusev

That:

1. The information contained in the report on Acceptance of Grant Funding - Regional and Local Roads Repair Program be received.

2. Council endorse acceptance of the grant award for $13,136,680 (excl. gst).

3. The General Manager be authorised to sign all necessary legal documents in relation to this matter

4. A letter of appreciation be issued to relevant Ministers, the NSW Government and Local Members.

14 Summary of Investments & Banking for the period 1 March 2023 to 31 March 2023

93 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Mark Rusev

That:

1. The information contained in the report on Summary of Investments & Banking for the period 1 March 2023 to 31 March 2023 be received.

2. The certificate of the Responsible Accounting Officer and Summary of Investments and Performance for the period 1 March 2023 to 31 March 2023 be noted and accepted.

3. The graphical Investment Analysis as at 31 March 2023 be noted.

15 Extend Existing Contracts for HRIS Systems

94 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Marlene Shipley

That:

1. The information contained in the report on Extend Existing Contracts for HRIS Systems be received.

2. In accordance with section 55(3)(i) of the Local Government Act 1993 NSW, Council resolve that a satisfactory result would not be achieved by inviting tenders due to extenuating circumstances as a result of the ERP project causing a timing issue that would mean entering into a new contract for HRIS systems now would place it out of sync with the corporate ERP review.

3. Council award the contract extensions to Fusion5 Software Pty Ltd, PageUp People Limited and Elmo Software Limited for a period of two years with a possible one year extension.

4. The General Manager be authorised to sign all necessary legal documents in relation to this matter.

URGENT BUSINESS

Her Worship the Mayor, Councillor Tricia Hitchen left the chair, the time being 7:54pm.

Deputy Mayor, Councillor Todd Carney took the chair, the time being 7:54pm.

UB 1 Royce's Big Walk

Her Worship the Mayor requested that the amount of $1000 be donated from each Ward for the dementia walk.

95 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Marlene Shipley that the matter be brought forward and dealt with as a matter of urgency.

Deputy Mayor Todd Carney ruled that the matter was urgent and should be delt with at the meeting.

96 RESOLVED on the MOTION of Councillor Mark Davies seconded Councillor Marlene Shipley that the amount of $1000 be donated from each Ward for the dementia walk.

Her Worship the Mayor, Councillor Tricia Hitchen returned to the chair, the time being 7:56pm.

UB 2 Police Officer of the Year Awards

Councillor Marlene Shipley requested Council to consider a $1000 from each Ward to contribute to the running expenses of the Police Officer of the Year Awards. Any funds donated go to the Police Legacy.

97 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Mark Davies

Her Worship the Mayor, Councillor Tricia Hitchen ruled that the matter was urgent and should be delt with at the meeting.

98 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Mark Davies that the amount of $1000 be donated from each Ward for the Police Officer of the Year Awards.

UB 3 Leave of Absence

Councillor Johnathan Pullen requested a Leave of Absence from 10 May 2023 to 19 May 2023.

99 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Mark Davies

Her Worship the Mayor, Councillor Tricia Hitchen ruled that the matter was urgent and should be delt with at the meeting.

100 RESOLVED on the MOTION of Councillor Tricia Hitchen seconded Councillor Mark Davies that Councillor Johnathan Pullen be granted Leave of Absence from 10 May 2023 to 19 May 2023.

Committee of the Whole

101 RESOLVED on the MOTION of Councillor Todd Carney seconded Councillor John Thain that the meeting adjourn to the Committee of the Whole to deal with the following matters, the time being 7:59pm.

1 Presence of the Public

CW1 RESOLVED on the motion of Councillor Councillor Todd Carney seconded Councillor Councillor John Thain that the press and public be excluded from Committee of the Whole to deal with the following matters:

Outcome 5

2 Council Property - Site Compound Licence Renewal - Edwards Place Carpark

This item has been referred to Committee of the Whole as the report refers to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

3 114-116 Henry Street Penrith - Insurance Claim

This item has been referred to Committee of the Whole as the report refers to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

4 Lease Agreement with Nepean Blue Mountains Local Health District (NBMLHD)

This item has been referred to Committee of the Whole as the report refers to commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

Outcome 3

5 Compliance Action

This item has been referred to Committee of the Whole as the report refers to personnel matters concerning particular individuals and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

6 Planning Notations

Outcome 1

7 Recyclables Processing Contract

This item has been referred to Committee of the Whole as the report refers to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business; AND commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

Outcome 5

8 Detailed Business Case - 158-164 Old Bathurst Road, Emu Plains

This item has been referred to Committee of the Whole as the report refers to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business and discussion of the matter in open meeting would be, on balance, contrary to the public interest.

The meeting resumed at 8:15pm and the Acting Governance Manager reported that the Committee of the Whole met at 7:59pm on Monday, 1 May 2023, the following being present:

Her Worship the Mayor, Councillor Tricia Hitchen, Deputy Mayor Councillor Todd Carney and Councillors Bernard Bratusa, Robin Cook, Kevin Crameri OAM, Mark Davies, Sue Day, Ross Fowler OAM, Glenn Gardiner, Karen McKeown OAM, Jonathan Pullen, Mark Rusev, Marlene Shipley and John Thain.

and the Committee of the Whole excluded the press and public from the meeting for the reasons set out in CW1 and that the Committee of the Whole submitted the following recommendations to Council.

CONFIDENTIAL BUSINESS

2 Council Property - Site Compound Licence Renewal - Edwards Place Carpark

RECOMMENDED on the MOTION of Councillor John Thain seconded Councillor Bernard Bratusa

CW2 That:

1. The information contained in the report on Council Property - Site Compound Licence Renewal - Edwards Place Carpark be received.

2. Council approve the proposed new licence agreement under the terms and conditions listed within the report.

3. The common seal of the Council of the City of Penrith be affixed to all documents as required, and the General Manager (or their delegate) be authorised to sign all necessary legal documents in relation to this matter.

3 114-116 Henry Street Penrith - Insurance Claim

RECOMMENDED on the MOTION of Councillor Jonathan Pullen seconded Councillor Todd Carney

CW3 That:

1. The information contained in the report on 114-116 Henry Street Penrith - Insurance Claim be received.

2. That Council authorise the General Manager to finalise negotiations for the preferred Insurance claim option in accordance with terms of this report.

3. The Common Seal of the Council of the City of Penrith be affixed to all documents as required, and the General Manager be authorised to sign all necessary documents in relation to this matter.

4. That a further report be bought back to a briefing of Council to advise Council of the outcome of the insurance claim, and to further consider the short and long term options for the site.

4 Lease Agreement with Nepean Blue Mountains Local Health District (NBMLHD)

RECOMMENDED on the MOTION of Councillor John Thain seconded Councillor Karen McKeown OAM

CW4 That:

1. The information contained in the report on Lease Agreement with Nepean Blue Mountains Local Health District (NBMLHD) be received.

2. Penrith City Council grant a 5-year lease agreement to Penrith City Council Children’s Services (with the opportunity to further extend the lease for three (3) additional terms of 5 years at the conclusion of the initial period) to operate Somerset Children’s Centre on behalf of NBMLHD and NSW Health.

5 Compliance Action

RECOMMENDED on the MOTION of Councillor Todd Carney seconded Councillor Sue Day

CW5 That:

1. The information contained in the report on Compliance Action be received.

2. Council agrees that no further resources be devoted to aspects of this matter that occurred before December 2021.

3. Council agrees that, unless there is further illegal activity, the focus of officers will be solely on enforcing the compliance action that is currently on foot with 12-18 Judd Street, Berkshire Park.

6 Planning Notations

102 RESOLVED on the MOTION of Councillor Ross Fowler OAM seconded Councillor Bernard Bratusa

CW6 That:

1. The information contained in the report on Planning Notations be received.

2. Notations be applied to planning certificates pursuant to section 10.7(5) of the Environmental Planning and Assessment Act 1979 in the manner identified in this report.

3. The General Manager be authorised to add, amend, vary or revoke notations on planning certificates, including the geographical extent, should advice be received from Council’s geotechnical or legal consultant’s advising the amendment, variation or revocation of notations on planning certificates.

4. Letters be sent to owners of the relevant properties to advise them that a notation will be applied to planning certificates for their property pursuant to section 10.7(5) of the Environmental Planning and Assessment Act 1979.

5. Where a person applies for a planning certificate pursuant to section 10.7(2) of the EPA Act for a property that has the above notation, then the information pursuant to section 10.7(5) is to be included on the certificate when issued to that person.

7 Recyclables Processing Contract

RECOMMENDED on the MOTION of Councillor Mark Davies seconded Councillor Glenn Gardiner

CW7 That:

1. The information contained in the report on Recyclables Processing Contract be received.

2. In accordance with section 55(3)(i) of the Local Government Act 1993 NSW, Council resolve that a satisfactory result would not be achieved by inviting tenders due to extenuating circumstances where the Alternative Destination Clause in the Waste and Resource Collection Services Contract will not allow the ability for fair competition through an open market process.

3. The General Manager be authorised to sign all necessary legal documents in relation to this matter and enter into a 6 year contract with Visy Paper Pty Ltd ending 30 June 2029 with the details provided in this report.

8 Detailed Business Case - 158-164 Old Bathurst Road, Emu Plains

RECOMMENDED on the MOTION of Councillor Mark Davies seconded Councillor Todd Carney

CW8 That:

1. The information contained in the report on Detailed Business Case - 158-164 Old Bathurst Road, Emu Plains be received

2. The Council adopt the recommendations referred to in the body of the report.

1 Recyclables Processing Contract

103 RESOLVED on the MOTION of Councillor John Thain seconded Councillor Jonathan Pullen

That:

1. The information contained in the report on Recyclables Processing Contract be received.

2. In accordance with section 55(3)(i) of the Local Government Act 1993 NSW, Council resolve that a satisfactory result would not be achieved by inviting tenders due to extenuating circumstances where the Alternative Destination Clause in the Waste and Resource Collection Services Contract will not allow the ability for fair competition through an open market process.

ADOPTION OF Committee of the Whole

104 RESOLVED on the MOTION of Councillor Todd Carney seconded Councillor John Thain that the recommendation contained in the Committee of the Whole and shown as CW2, CW3, CW4, CW5, CW6, CW7 and CW8 be adopted.

There being no further business the Chairperson declared the meeting closed the time being 8:21pm.

Ordinary Meeting 29 May 2023

REPORT AND RECOMMENDATIONS OF THE
Local Traffic Committee MEETING

HELD ON 1 May, 2023

(Note: The Local Traffic Committee Business Paper and reports were referred to members and a formal meeting held via on-line Microsoft Teams platform).

PRESENT

Mayor Tricia Hitchen (Representative for the Member of Penrith), Councillor Karen McKeown OAM (Council Representative), Councillor Robin Cook (Representative for the Member of Londonderry), Angela Maltese (Representative for the Member of Badgerys Creek) and Ken Hind – Transport for NSW (TfNSW).

IN ATTENDANCE

Michael Alderton – Acting Engineering Services Manager (Chair), Kablan Mowad – Senior Traffic Engineer, Caitlin Bailey - Senior Traffic Engineer, Philip Saverimuttu – Senior Traffic Engineer, Lalaine Malaluan – Traffic Engineer, Adeeb Ali – Trainee Engineer, Wendy Read – Road Safety Officer, Mia Ecob – Engineering Services Secretary, Kylie Thornley – Traffic Administration Officer, Laura Bretschneider - Business Administration Trainee (Engineering), Ben Cantor – Busways and Paul Bottomley - CDC.

APOLOGIES

Adam Wilkinson – Engineering Services Manager, Joshua Hull – Traffic Engineering Coordinator and Senior Constable Bill Pearson - Nepean Police Area Command (PAC).

CONFIRMATION OF MINUTES - Local Traffic Committee Meeting - 3 April 2023

LTC 42 that the minutes of the Local Traffic Committee Meeting of 3 April 2023 be confirmed.

LEAVE OF ABSENCE

Raymond Tran – Transport for NSW (TfNSW).

DECLARATIONS OF INTEREST

Nil.

DELIVERY PROGRAM REPORTS

Outcome 4 - We manage and improve our built environment

1 Camelot Drive, Cranebrook - Proposed Give Way Intersection Treatment

RECOMMENDED

That:

1. The information contained in the report on Camelot Drive, Cranebrook - Proposed Give Way Intersection Treatment be received.

2. Notification be provided to affected properties regarding the proposed installation of ‘Give Way’ intersection treatments on Camelot Drive at its intersections with Laycock Street and both ends of Cascade Road, Cranebrook, as shown in Appendix 1.

3. Following notification to affected properties, the ‘Give Way’ intersection treatments be implemented on Camelot Drive at its intersections with Laycock Street and both ends of Cascade Road, Cranebrook, as shown in Appendix 1.

4. The resident who raised this matter be advised of Council’s resolution.

2 Judges Place Car Park – Proposed Changes to Ground Floor Parking Spaces

Michael Alderton – Acting Engineering Services Manager (Chair) advised that prior to the meeting information was received from Councils Architect Lead, advising that the project was being reviewed and that the need for and /or location of the parking spaces might change and subsequently the matter be deferred.

RECOMMENDED

That:

1. The matter be deferred subject to further review from Council’s Design & Projects Team.

3 Lakeside Parade and Jubilee Drive, Jordan Springs - Proposed 'No Stopping' Signage

RECOMMENDED

That:

1. The information contained in the report on Lakeside Parade and Jubilee Drive, Jordan Springs - Proposed 'No Stopping' Signage be received.

2. The proposed ‘No Stopping’ signage be installed on Lakeside Parade and Jubilee Drive, as shown in Appendix 1.

3. Council’s Ranger Services Department and the residents who raised the concerns be advised of Council’s resolution.

4 Lethbridge Street, Penrith - Provision of 'No Parking - Waste Collection and Removalist Vehicles Excepted' Zone

RECOMMENDED

That:

1. The information contained in the report on Lethbridge Street, Penrith - Provision of 'No Parking - Waste Collection and Removalist Vehicles Excepted' Zone be received.

2. The signage plan by NY Civil Engineering (Job Reference E220387, Drawing Number D4, Issue E, dated 04/04/2023) for the installation of ‘No Parking – Waste Collection and Removalist Vehicles Excepted’ signage on Lethbridge Street, Penrith, be endorsed for installation as shown in Appendix 1.

3. All works associated with the implementation of the signposting shall be undertaken by the applicant in accordance with Section 8 of Council’s Engineering Construction Specification for Civil Works and Council standard drawings SD1006/1 and SD1006/2 and be at no cost to Council.

4. The applicant and Council Ranger Services Department be advised of Council’s resolution.

5 Whitcroft Place, Oxley Park - Proposed 'No Parking' Restrictions

RECOMMENDED

That:

1. The information contained in the report on Whitcroft Place, Oxley Park - Proposed 'No Parking' Restrictions be received.

2. Notification be provided to nearby properties regarding the proposed installation of ‘No Parking’ restrictions on Whitcroft Place, Oxley Park, as shown in Appendix 1.

3. Following notification to nearby properties, the ‘No Parking’ restrictions be implemented on Whitcroft Place, Oxley Park, as shown in Appendix 1.

4. Waste Services be advised of Council’s resolution.

6 Jamison Road, Evan Street and Darling Street, Penrith – Proposed Changes to Existing ‘No Stopping’ and ‘No Parking’ Signs and Installation of New ‘No Stopping’ Signs

RECOMMENDED

That:

1. The information contained in the report on Jamison Road, Evan Street and Darling Street, Penrith – Proposed Changes to Existing ‘No Stopping’ and ‘No Parking’ Signs and Installation of New ‘No Stopping’ Signs be received.

2. Consultation be undertaken with affected properties and Penrith South Public School regarding the proposed signage on Jamison Road, Evan Street and Darling Street, Penrith, as shown in Appendix 1.

3. Subject to no substantial objections being received, the proposed signs be installed on Jamison Road, Evan Street and Darling Street, Penrith as illustrated in Appendix 1.

4. Council’s Ranger Services Department be advised of Council’s resolution.

7 Mulgoa Road and The Straight Road, Mulgoa - Proposed Regulatory Signage

Ken Hind – Transport for NSW (TfNSW) requested the wording of recommendation 2 be amended to state the plan needs to be forwarded to TfNSW for separate approval.

RECOMMENDED

That:

1. The information contained in the report on Mulgoa Road and The Straight Road, Mulgoa - Proposed Regulatory Signage be received.

2. The proposed regulatory signage, as shown in Appendix 1, be endorsed for installation, subject to plan being forwarded to Transport for NSW for separate approval for the proposed signage on Mulgoa Road.

3. Council’s Project Team be advised of Council’s resolution and separate approval from Transport for NSW.

8 Cullen Avenue, Jordan Springs - Proposed Changes to Double Barrier Line Marking

RECOMMENDED

That:

1. The information contained in the report on Cullen Avenue, Jordan Springs - Proposed Changes to Double Barrier Line Marking be received.

2. The proposed changes to the double barrier line marking on Cullen Avenue, Jordan Springs, be endorsed for implementation, as shown in Appendix 1.

3. The resident who raised the matter be advised of Council’s resolution.

GENERAL BUSINESS

GB 1 Alston Street, Glenmore Park

Angela Maltese (Representative for the Member of Badgerys Creek) previously raised concerns from residents via a letter, regarding speeding vehicles on Alston Street, Glenmore Park and would like an update.

Philip Saverimuttu – Senior Traffic Engineer advised speed counts have been done at this location and correspondence is being prepared.

RECOMMENDED

LTC 51 That Council’s Traffic Engineering Officers provide correspondence to the Member for Badgerys Creek to advise of the outcome of the investigation.

GB 2 Water Street, Wallacia

Angela Maltese (Representative for the Member of Badgerys Creek) advised there has been numerous concerns raised by parents and the school principal from Wallacia Public School that parents are using Water Street to perform U-turns and are being verbally abused by the owner of the adjacent property.

Michael Alderton – Acting Engineering Services Manager (Chair) advised Council Officers will investigate this further and provide a response.

Ken Hind – Transport for NSW (TfNSW) advised this has been raised previously and Police are aware of the situation. Road boundaries were investigated previously and determined that Water Street at the intersection of Mulgoa Road is a public road.

RECOMMENDED

LTC 52 That the matter be investigated and the results of the investigation be forwarded to The Member for Badgerys Creek.

GB 3 Thornton Estate

Councillor Karen McKeown OAM (Council Representative) would like Council to look at delineated parking in Thorton Estate especially around Lord Sheffield Circuit and near the station. A residents dog has recently been killed whilst crossing the road as cars are parked right up against the kerb especially late afternoons and early evenings as they can no longer park in the commuter car park. Concerns were also previously raised about speeding vehicles and pedestrian safety.

Michael Alderton – Acting Engineering Services Manager (Chair) advised Council is investigating the Park and Ride for the commuter car park and a letter is being drafted to send out. Council is also looking at obtaining funding for the implementation of a 40km/hr HPAA scheme to be introduced in Thornton Estate.

RECOMMENDED

LTC 53 That Council’s Traffic Engineering Officers investigate the matter and provide advice to Councillor Karen McKeown OAM (Council Representative).

GB 4 Bennett Road, Colyton

Ben Cantor – Busways raised concerns about buses that are travelling on the Great Western Highway and turning into Bennett Road. Cars are banking up on Bennett Road to turn into the Service Station (7/11) and blocking the through movement of buses. Could Council look at providing ‘Keep Clear’ on the road or look at ‘No Parking’ signage in Bennett Road.

RECOMMENDED

LTC 54 That the matter be investigated.

GB 5 Intersection of High Street & Evan Street and Evan Street & Henry Street, Penrith

Mayor Tricia Hitchen (Representative for the Member of Penrith) previously raised concerns about this location with regard to traffic congestion on Evan Street between High and Henry Streets. Traffic in the afternoons is significantly delayed as cars are queuing up.

Michael Alderton – Acting Engineering Services Manager (Chair) advised we will investigate this further and provide a response.

Ken Hind – Transport for NSW (TfNSW) noted the Lemongrove bridge is only 1 lane so there are some restrictions at this location that will need to be considered.

RECOMMENDED

LTC 55 That Council’s Traffic Engineering Officers to investigate and provide advice to Mayor Tricia Hitchen (Representative for the Member of Penrith).

There being no further business the Chairperson declared the meeting closed the time being 9:50am.

RECOMMENDATION

That the recommendations contained in the Report and Recommendations of the Local Traffic Committee meeting held on 1 May, 2023 be adopted.

Ordinary Meeting 29 May 2023

RFT22/23-029 Bush Regeneration Services and Associated Works

Compiled by: Tim Gowing, Senior Water Management Officer

Justine Vella, Bushland Management Coordinator

Murray Halls, Acting City Presentation Manager

Authorised by: John Gordon, Director - City Services

Outcome	We protect and enhance an ecologically sustainable environment
Strategy	Green the landscape, provide more shade and protect biodiversity
Principal Activity	Improve our natural areas, parks and public spaces

Executive Summary

A tender for the “Panel of Approved Contractors” for Bush Regeneration and Associated Services was advertised on 24 January 2023 on Apet360 and e-tendering websites and closed on 1 March 2023.

The report advises Council on the outcome of the tender process and recommends that Council accepts tenders from the companies listed in this report to form a “Panel of Approved Contractors” for the provision of Bush Regeneration and Associated Services for an initial period of three (3) years, with an option to extend for a further two (2) x one (1) year periods by mutual agreement, and subject to satisfactory performance.

Background

Penrith has approximately 450 hectares of bushland across over 70 bushland reserves under the care, control and management of Penrith City Council. Our bushland management program aims to restore and maintain an ecosystem in which natural regeneration can occur. This is done by using bush regeneration methods, such as weeding strategically, stabilising drainage lines, environmental burns, raising public awareness, reducing erosion, maintaining habitat and wildlife corridors.

In addition to natural area management in a bushland setting Council also supports Water Sensitive Urban Design throughout our City. An increasing number of bioretention systems and other stormwater treatment measures such as constructed wetlands are being built within both new and infill development. In many cases such as residential subdivisions, Council takes ownership of the assets following their construction and establishment.

Council is required to upkeep these systems to a functioning standard to ensure stormwater improvements are being met. As such, this RFT is seeking the services of suitably qualified contractors to undertake the routine maintenance activities.

In 2019 Council engaged a panel of Contractors for similar services following an RFQ process. The contract is due to expire in late 2023. As such, the tender has been called to ensure the services can continue to be provided.

Tenderers were required to submit their tender through the Apet360 Portal, which clearly identified the required responses against each of the evaluation criteria. Tenderers were also required to complete a price schedule, setting out the unit rates for Bush Regeneration and Associated Services as well as for the maintenance of vegetated stormwater treatment assets.

It was specified in the tender documents that Council would reserve the right upon evaluation of the tender submissions, to appoint a panel of suppliers for bush regeneration services. The aim is to appoint a suitably qualified panel to share the workload to ensure that sufficient capacity is available to complete the expected service requirements.

If a singular project was to exceed the $250,000 tender threshold, Council would then request the selected panel to submit detailed quotations based on the scope of the works required.

Tender Evaluation Panel

The Tender Evaluation Committee consisted of Justine Vella, Bushland Management Coordinator, Tim Gowing, Senior Water Management Officer, Michael Middleton, Environmental Health Coordinator, Murray Halls, Business Development Coordinator and was chaired by John Gordon - City Presentation Manager. Allyce Langton from Council’s Procurement team performed the role of tender administration and probity officer.

Tender Evaluation Criteria

Tenderers were required to submit their tender using the Apet360 tendering software, which clearly defined the response required against each of the evaluation criteria.

The tenders we received were assessed using the advertised evaluation criteria of:

· Methodology

· Capacity to Perform the Works and Demonstrated ability

· Conformance, Acceptance and Declaration

· Response Time

· Financial capability

· Local Business Preference

· Employment Policies

· Quality Assurance Systems

· Environmental Management Systems

· Work Health and Safety

Evaluation Process

The process for the evaluation of tenders was as follows:

1. Initial review of tenders to determine compliance with the evaluation criteria including the ability to provide the full range of services specified.

2. Assessment of costs based on the unit rates tendered and the capacity of the company to perform the services;

3. Determination of a short-list based on the best rankings from 1 and 2 above;

4. Further evaluation of the short-listed companies through:

- Independent Financial Risk Analysis

- Independent Referee Checks

Summary of Tenders Received

A total of 14 submissions were received in response to the advertised tender. All tenders, as listed in alphabetical order, were included in the initial evaluation:

Company	Tendered Price (annual costs)	Company Location	Directors
Australian Facility Landscapes Pty Ltd	$413,631.00	2 Jindalee Place Riverwood NSW 2210	Peter McDonnell Director Guy Considine Director
Blue Tongue Eco-systems Pty Ltd	$289,627.75	182 Upper Colo Rd Colo New South Wales 2756	Kirsty Reynolds Director
Bunya Native Nursery	$277,662.50	4 Railway Avenue Eastwood NSW 2122	Frank Gasparre Director
Bushy Landscapes	$400,750.00	28 Wheatleigh Street Naremburn NSW 2065	Erryn Blacklock CEO
Constance Conservation	$291,975.00	12 McCallum Link Harrington Park NSW 2567	Cameron Constance Managing Director
Earthbuilt Environmental Pty Ltd	$320,600.00	16 Ashford Avenue Castle Hill NSW 2154	David Griffith Managing Director
Ecohort Pty Ltd	$343,500.00	40 Bannerman Road Glenhaven New South Wales 2156	Edgar Freimanis Director
Nace Civil Engineering Pty. Limited	price not submitted	90 Jedda Road Prestons NSW 2170	George Kypreos Director
National Trust Of Australia (NSW)	$320,600.00	GPO Box 518 Sydney NSW 2001	Debbie Mills CEO Mark Fellows Regional Manager
Summit Open Space Services	$420,157.75	23 Sterling Road Minchinbury NSW 2770	Brad Howell General Manager
Cumberland Plain Regeneration	$286,250.00	58 Tennyson Road Tennyson NSW 2754	Adrian O’Hara Director
The Bush Doctor (NSW) Pty Ltd	$314,875.00	18A Lalor Drive Springwood NSW 2777	Shane Grundy Director
Toolijooa Bush Regeneration	$363,537.50	Unit 1/26-30 Tepko Road Terrey Hills NSW 1660	Steve Anstey Managing Director
Total Earth Care	$286,250.00	Unit 51 Vuko Place Warriewood NSW 2102	Andrew McGahey Director

Evaluation of Tenders

Further clarification were sought from a number of applicants who initially failed to provide adequate information in respect of their capacity to perform the works requested.

All tenderers were assessed against the selection criteria. The following companies did not demonstrate that they could fulfill the requirements of the tender in one or more of the areas of demonstrated ability, response times, quality assurance and environmental systems. They were subsequently not considered for further tender assessment.

· Bushy Landscapes

· Total Earth Care

· Constance Conservation

· Earth Built Environmental

· Australian Facility Landscapes Pty Ltd

· Nace Civil Engineering Pty Ltd

Short-Listed Tenderers

The following 8 companies met the minimum requirements of the evaluation criteria and were further assessed based on their price schedules:

· Toolijooa Bush Regeneration

· Ecohort Pty Ltd

· The Bush Doctor

· Cumberland Plain Regeneration

· Blue Tongue Eco-systems Pty Ltd

· Bunya Native Nursery

· National Trust of Australia (NSW)

· Summit Open Space Services

These short-listed Tenderer’s were assessed using a formula applied to attain the probable costs from the actual bush regeneration service costs from the last financial year.

The average bush regeneration service costs expenditure was determined and calculated to reflect projected expenditure for the services associated with this tender. This formulation was then divided by the hourly rate provided in the tender of each contractor for similar services based on their schedule of rates. This approximate annual hour count was then multiplied by the average hourly rate submitted by the Tenderers proposed scheduled maintenance costs to determine the expected annual cost to Council.

Evaluation of Preferred Tenderers

All companies recommended within this report were selected based on their level of compliance with the tender documents, demonstrated ability to meet Council’s requirements, competitive hourly and schedule of rates for the services offered and independent financial/risk assessment advice.

Three (3) of the four (4) selected tenderers have performed in the role of primary contractors for the existing Bush Regeneration Services and Associated Works contract for the last 4 years with no issues

Following the assessment of the tenders, the preferred tenderers to be included on the panel are as follows:

· Cumberland Plain Regeneration

· Bunya Native Nursery

· Blue Tongue Eco-systems Pty Ltd

· The Bush Doctor (NSW) Pty Ltd

This will provide Council with a group of four (4) approved bush regeneration services contractors that can be utilised for bush regeneration and associated services including the maintenance of Council's vegetated stormwater treatment assets.

The panel took the view that the selection of four (4) companies would have the capacity to meet services requirements associated with the tender criteria.

Financial Implications

Included in the assessment of tenders was the commissioning of independent reference checks, financial analysis, and performance analysis on the panel of preferred tenderers. These checks were completed by Equifax Australasia Credit Ratings Pty Ltd. Financial Services have reviewed the financial information provided by the tenderer and have not identified any reason why the contract should not be awarded.

Funding for the provision of Bush Regeneration Services and Associated Works is included under annual operational and grant funded program allocations.

Tender Advisory Group (TAG) Comment

The Tender Advisory Group’s objective is to support the Council to achieve fair and equitable tender processes. The TAG, consisting of the Director City Transformational Projects, Brian Steffen, Financial Services Manager, Neil Farquharson, and Governance Manager, Adam Beggs, met to consider the report and recommendations in relation to the tender for Building Maintenance and Construction. The TAG reviewed the evaluation process outlined within the report and is satisfied that the selection criteria have been correctly applied in making the recommendations.

Risk Implications

The provision of effective Bush Regeneration Services and Associated Works ensures that Council’s natural areas and vegetated stormwater treatment assets meet community and operational needs. The selection of appropriately skilled contractors is essential to maintain the integrity and ecological health of Council’s natural assets.

The tender process outlined in this report includes controls regarding probity and ensuring value for Council, overseen by the Tender Advisory Group.

Conclusion

Based on the detailed evaluation, analysis of staffing, location, and capacity to undertake the work including relevant past and current experience, price submitted, and financial analysis and referee checks, the Tender Evaluation Committee recommends the companies listed below be accepted as a Panel of Approved Contractors for the provision of Bush Regeneration Services and Associated Works (in no particular order):

The panel is to include the following contractors.

· Cumberland Plain Regeneration

· Bunya Native Nursery

· Blue Tongue Eco-systems Pty Ltd

· The Bush Doctor (NSW) Pty Ltd

RECOMMENDATION

That:

1. The information contained in the report on RFT22/23-029 Bush Regeneration Services and Associated Works be received.

2. The four (4) companies Cumberland Plain Regeneration, Bunya Native Nursery, Blue Tongue Eco-systems Pty Ltd, and The Bush Doctor (NSW) Pty Ltd be accepted as a Panel of Approved Contractors for the provision of Bush Regeneration and Associated Services

3. Variations and amendments that do not materially alter the original scope of the contract be managed under the existing Penrith City Council financial delegations within the approved budget.

4. The General Manager be authorised to sign all necessary legal documents in relation to this matter.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Ordinary Meeting 29 May 2023

Request for Major Event Sponsorship - TRL Australia Ltd

Compiled by: Shelley Lee, Activation and Event Development Officer

Beau Reid, Place and Activations Program Manager

Authorised by: Megan Whittaker, City Activation, Community and Place Manager

Jeni Pollard, Manager - City Resilience

Kylie Powell, Director - City Futures

Outcome	We are welcoming, healthy, happy, creative and connected
Strategy	Support and provide opportunities to participate in activities and events that celebrate our diversity, culture and creativity
Principal Activity	Conduct and support events that include all members of our community

Executive Summary

The purpose of this report is to present to Council an event sponsorship proposal received from Sports Marketing Australia Pty Ltd on behalf of TRL Australia Ltd seeking sponsorship of the 2023 TRL Sydney Cash Cup.

This report provides Council with details of the sponsorship proposal received, including the proposed benefits and an assessment of the proposal.

TRL Australia is the governing body for the new and rapidly emerging code of touch (non-tackle) football, known as Touch Rugby League (TRL).

Sports Marketing Australia Pty Ltd (SMA) has submitted a proposal on behalf of TRL Australia Ltd (the event organiser) for sponsorship from Council for the 2023 TRL Sydney Cash Cup to be held for the first time in NSW at the Kingsway, St Marys on 5 September 2023.

TRL Australia Ltd has sought a sponsorship investment from Council of $3,328 (ex GST). In addition, a placement fee of $2,200 (ex GST) is payable to Sports Marketing Australia Pty Ltd. Council officers have estimated the event could deliver a modest return of approximately $93,596 in local economic benefit. This sponsorship represents a new event acquisition opportunity for Council as well as an opportunity to build a strategic relationship with TRL Australia Ltd who are the peak body for a rapidly growing sport with potential events growth.

This report recommends that Council provides sponsorship of $3,328 (ex GST) to TRL Australia Ltd and pays a $2,200 (ex GST) placement fee to Sports Marketing Australia Pty Ltd in support of the 2023 TRL Sydney Cash Cup, representing a total investment from Council of $5,528 (ex GST).

Background

Council was approached on 26 April 2023 by Sports Marketing Australia Pty Ltd (SMA) on behalf of TRL Australia Ltd to consider sponsorship of the 2023 TRL Sydney Cash Cup to be held at the Kingsway, St Marys on 5 September 2023.

Council endorsed the Think Penrith, Think Events – Penrith Events Strategy 2020-2024 on 22 June 2020, which provides for up to $200,000 annually to support the attraction and retention of major events in the Penrith Local Government Area. There is currently $109,470 available in the 2022 - 23 budget.

Current Situation

The initial proposal presented to Council sought sponsorship of a 2-day event with a request for $5,000 (ex GST). The proposal was revised by the organiser and the event is now intended to be delivered as a condensed 1-day event, to be held on 5 September 2023 at The Kingsway, St Marys.

On receiving notification of the revised event format, Council staff engaged with SMA to negotiate the proposed sponsorship level to $3,328, which is considered more appropriate in the context of the lower overnight stays anticipated to be generated from the event in a 1-day format.

The current sponsorship application for Council’s consideration seeks sponsorship of $3,328 (ex GST) to assist with the planning, marketing, logistical and operational expenses, including $328 field hire fee, associated with running the event, and a service fee of $2,200 (ex GST) payable by the sponsor directly to SMA to negotiate sponsorship agreements on the event organiser’s behalf.

For a flat fee of $2,200 (ex GST), Sports Marketing Australia works to match organisations seeking to host events with sponsors. In the case of this sponsorship request, the SMA fee represents a significant proportion of the sponsorship value requested of Council. However, it is considered that the opportunity to attract this event into Penrith would not have occurred without the involvement of SMA. This is the first time the event has run in NSW.

Council officers are engaging with Sports Marketing Australia to flag our intention to pursue events with opportunities for more significant economic and community benefit.

Further details on the event are provided below:

2023 TRL Sydney Cash Cup

TRL Australia is the governing body for the new and rapidly emerging code of touch (non-tackle) football, known as Touch Rugby League (TRL). TRL Australia coordinates local competitions in Queensland and oversees the operations of TRL competitions in other states across Australia.

The 2023 TRL Sydney Cash Cup will be an invitational event open to all social TRL teams throughout the country to come to Sydney to compete for a cash prize money pool. This is the first time this event has been held in New South Wales.

Based on information provided by the applicant, it is anticipated that 120 participants will be drawn from Greater Sydney, 90 from other areas of NSW and 90 from Interstate (a total of 300 participants). It is anticipated that 60% of attendees will be from outside of the Penrith Local Government Area, staying between 1 - 2 nights.

Previous sponsorship to TRL Australia

TRL Australia has not previously sought sponsorship from Council.

Proposed Sponsorship Benefits

The sponsorship opportunities for the 2023 TRL Sydney Cash Cup event would provide Council and the community of Penrith City with several benefits including:

· Logo recognition on all marketing collateral, communication, website, social media, etc

· Prominent signage positioning at the event (supplied by Council)

· Opportunity for joint media releases promoting the event

· Invitation for the Mayor (or delegate) to provide a welcome speech or event presentations

· Opportunities to distribute Visitor Guides and other tourism collateral to all participants

Assessment of sponsorship proposal

The sponsorship proposal has been assessed against Council’s Events Sponsorship Policy criteria for Major Event Sponsorship.

The event encourages community involvement with local clubs, overnight visitation to the Penrith Local Government Area and has positive economic benefits to the local Penrith economy that exceed the total cost of running each event. Council officers have estimated the event could deliver approximately $93,596 in local economic benefit.

This estimate is calculated by using projected attendance information provided by the applicant, along with set daily spend rates based on the type of event published by Tourism Research Australia, which are loaded into an Economic Event Impact Calculator.

While the overall local economic benefit of this event is modest, this sponsorship presents an event acquisition opportunity for Council and an opportunity to build a strategic relationship with TRL Australia Ltd with the view to encouraging and hosting further TRL events in Penrith into the future.

Sponsorship value of $3,328 (ex GST) is considered appropriate to support this 1-day event, assisting with marketing, logistical and operational expenses associated with undertaking the event, including $328 to cover the hire of the fields. This level of funding reflects the nature of the proposed sponsorship benefits to Council and enables further engagement with the event organisers on future opportunities.

Should Council endorse sponsorship of the 2023 TRL Sydney Cash Cup, a placement fee of $2,200 (ex GST) becomes payable by Council to Sports Marketing Australia Pty Ltd due to TRL Australia’s engagement of SMA as its agent to negotiate sponsorship with Council for this event and working exclusively with Council to place the event in Penrith.

It is recommended that sponsorship in the form of $3,328 (ex GST) be endorsed, with the addition of the placement fee of $2,200 (ex GST). This would represent an overall sponsorship investment by Council of $5,528 (ex GST) for this event. This level of funding reflects the nature of the proposed sponsorship benefits to Council, the estimated economic benefits and enables Council with an opportunity to build a strategic relationship with TRL Australia Ltd to encourage further TRL events in Penrith into the future.

Financial Implications

Major Event Sponsorship funding to support the delivery of the 2023 TRL Sydney Cash Cup is available within the existing City Activation, Community and Place budget included in Council’s 2022-23 Operational Plan.

To date for this financial year, Council has endorsed a total of $90,530 major and community event sponsorships leaving $109,470 available from the 2022-23 Penrith Events Partnership Program.

Three Major Event Sponsorship requests totalling $17,728 are tabled for consideration by Council in tonight’s meeting, should all three proposals progress as recommended the resulting funds available in the sponsorship budget would be $91,742.

Risk Implications

If the sponsorship is endorsed, Council will enter into a sponsorship agreement with TRL Australia to detail the expected sponsorship benefits to be delivered to Council and the community in exchange for Council’s investment.

Conclusion

A request for sponsorship has been received from Sports Marketing Australia on behalf of TRL Australia Ltd to support the 2023 TRL Sydney Cash Cup to be held at the Kingsway, St Marys on the 2 September 2023.

The request seeks a total of $5,528 (ex GST), which consists of $3,328 (ex GST) to TRL Australia and $2,200 to Sports Marketing Australia Pty Ltd as a placement fee.

It is estimated that the return to the community of Penrith City from the event could be in the order of $93,596 in economic benefit.

Whilst the estimated economic return is modest, this sponsorship presents an event acquisition opportunity for Council and an opportunity to build a strategic relationship with TRL Australia Ltd to host further TRL events in Penrith into the future.

It is recommended that Council provide a total sponsorship of $5,528 (ex GST) in support of the 2023 TRL Sydney Cash cup, consisting of $3,328 (ex GST) to TRL Australia Ltd and $2,200 (ex GST) to Sports Marketing Australia Pty Ltd as a placement fee.

Should Council resolve to endorse the sponsorship proposal, Council will enter into a sponsorship agreement with TRL Australia Ltd detailing the expected sponsorship benefits to be delivered to Council in exchange for its investment.

RECOMMENDATION

That:

1. The information contained in the report on Request for Major Event Sponsorship - TRL Australia Ltd be received

2. Council provide sponsorship of $5,528 (ex GST) in support of the 2023 Sydney Cash Cup, consisting of $3,328 to TRL Australia Ltd and $2,200 (ex GST) to Sports Marketing Australia Pty Ltd.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Ordinary Meeting 29 May 2023

Request for Major Event Sponsorship - USM Events Pty Ltd

Compiled by: Shelley Lee, Activation and Event Development Officer

Beau Reid, Place and Activations Program Manager

Authorised by: Megan Whittaker, City Activation, Community and Place Manager

Jeni Pollard, Manager - City Resilience

Kylie Powell, Director - City Futures

Outcome	We are welcoming, healthy, happy, creative and connected
Strategy	Enhance community wellbeing, safety and neighbourhood amenity
Principal Activity	Work with partners to develop and integrate strategies that strengthen our community

Executive Summary

The purpose of this report is to present to Council an event sponsorship proposal received from USM Events Pty Ltd (t/a IRONMAN Australia) to support the delivery of the IRONMAN 70.3 Western Sydney event on 24 September 2023. The event is to be held at the Sydney International Regatta Centre (SIRC).

This report provides Council with details of the sponsorship proposal received, including the proposed sponsorship benefits and an assessment of the proposal.

USM Events Pty Ltd has sought Council sponsorship of $20,000 (plus GST). The event proposal has been assessed and it is estimated that is could deliver approximately $1,199,323 in local economic benefit.

The IRONMAN event is well established within the Penrith LGA, having been held annually since 2014 (except for 2020 and 2021 due to COVID-19). Council provides in kind support for the event, estimated at approximately $1,200, for marketing as well as site presentation works including street sweeping and grass slashing.

This report recommends that Council provides sponsorship of $5,000 (ex GST) for the 2023 IRONMAN 70.3 Western Sydney event to be held on 24 September 2023. This level of funding reflects the nature of the proposed sponsorship benefits to Council and is also consistent with Council’s approach to levels of sponsorship for events with comparable benefit returns.

Background

Penrith City Council (Council) was approached by USM Events Pty Ltd (t/a IRONMAN Australia) on 28 March 2023 to consider a sponsorship proposal for the 2023 IRONMAN 70.3 Western Sydney event to be held on 24 September 2023 at SIRC.

Council endorsed the Events Sponsorship Policy (‘the Policy’) in June 2020. The Policy includes criteria for Major Event Sponsorship.

Council endorsed the Think Penrith, Think Events – Penrith Events Strategy 2020-2024 on 22 June 2020. The Events Strategy provides for up to $200,000 annually to support the attraction and retention of major events in the Penrith Local Government Area. There is currently $109,470 available in the 2022 - 23 budget.

Current Situation

The sponsorship proposal received from USM Events Pty Ltd for the 2023 IRONMAN 70.3 Western Sydney event requests Council funds of $20,000 (plus GST) to assist with operating costs associated with running the event, including a shuttle service from Penrith Station to SIRC and a marketing campaign.

While not part of their application, the organisers have indicated that they will once again seek in-kind assistance with site presentation. Council’s site presentation works are estimated at a minimum value of $1,200 for the event.

Further details on the event are provided below:

2023 IRONMAN 70.3 Western Sydney

IRONMAN 70.3 Western Sydney is part of the global IRONMAN 70.3 series of 95 marathon events which together attract over 120,000 athletes each year. Each of the events offer qualifying positions to take part in the IRONMAN 70.3 World Championships which rotates destinations throughout the world each year. IRONMAN events have taken place in Australia for over 30 years. The 2023 IRONMAN 70.3 Western Sydney will include a 1.9km swim, 90km bike ride and 21km run for individuals or teams at the SIRC.

The event is estimated to attract approximately 5,506 attendees, including:

· 1,556 participants (155 local, 1011 other NSW, 312 interstate, and 78 international)

· 3,950 volunteers, spectators and staff

It is anticipated that a majority (80%) of participants will stay within the Penrith Local Government Area (LGA) for approximately 2 nights.

Previous Council Sponsorship provided to USM Events Pty Ltd

Previous iterations of the IRONMAN event have been held in Penrith since 2014. Council has supported this event yearly (except for 2020 and 2021 which were cancelled due to COVID-19) through in-kind marketing and tourism support, traffic management and site presentation works.

The first time that the event organisers requested financial support was in 2022 and sponsorship to the value of $20,000 was endorsed, in addition to the in-kind support provided. This level of sponsorship assisted the event with a successful return for the first time following restrictions due to the COVID-19 pandemic.

Assessment of sponsorship proposal

The sponsorship proposal has been assessed against Council’s Events Sponsorship Policy criteria for Major Event Sponsorship. The event is eligible for funding from Council.

The event encourages community involvement and partnership, overnight visitation and well as providing positive economic benefits to the local Penrith economy that exceed the total cost of running the event.

Based on the projected event visitation, Council officers have estimated the economic benefit of the scheduled event to the local economy is approximately $1,199,323.

The applicant has applied for $20,000 (ex GST) of sponsorship from Council in support of the event. Council officers have considered the proposed benefits and the strategic benefit to Council in sponsoring the event. As a return event long held in Penrith, sponsorship of the event does not present a new event acquisition opportunity. The event is not contingent on Council’s sponsorship to be economically viable or to be hosted in Penrith.

Sponsorship of $5,000 (ex GST) is considered appropriate to support this event, assisting to provide a shuttle service from Penrith Station to the Sydney International Regatta Centre as well as marketing expenses. This level of funding reflects the nature of the proposed sponsorship benefits to Council, including the opportunity to promote Penrith as a destination to over 5,500 attendees. This level of funding is also consistent with Council’s approach to levels of sponsorship for events with comparable benefit returns, as estimated using the Destination NSW “Economic value of Tourism and Events” calculator.

It is recommended that sponsorship of $5,000 (ex GST) to USM Events Pty Ltd be endorsed. This level of funding reflects the nature of the proposed sponsorship benefits to Council, and the estimated economic benefits. As for previous years, Council will continue to support the event through works in kind for site presentation which have been estimated at a minimum value of $1,200 based on previous held IRONMAN events.

Proposed Sponsorship Benefits

The sponsorship opportunities presented by USM for the 2023 event would provide Council and the community of Penrith City with several benefits including:

· Council recognised publicly as an Event Partner

· 20m of race-side mesh with Council branding (provided by USM Events)

· Logo placements on event website and in digital Athlete Information Guides (with backlink to Visit Penrith)

· 4 x MC announcements acknowledging Council as an event sponsor

· 6 x signage opportunities through event site (signage provided by Council)

Financial Implications

Major Event Sponsorship funding to support the delivery of the 2023 IRONMAN 70.3 Western Sydney event is available within the existing City Activation, Community and Place budget included in Council’s 2022-23 Operational Plan.

To date for this financial year, Council has endorsed a total of $90,530 major and community event sponsorships leaving $109,470 available from the 2022-23 Penrith Events Partnership Program.

Risk Implications

If the sponsorship is endorsed, Council will enter into a sponsorship agreement with USM Events Pty Ltd (t/a IRONMAN Australia) to detail the expected sponsorship benefits to be delivered to Council and the community in exchange for Council’s investment.

Conclusion

A request for sponsorship has been received from USM Events Pty Ltd (t/a IRONMAN Australia). The request seeks a total of $20,000 (ex GST) for the 2023 IRONMAN 70.3 Western Sydney event at the Sydney International Regatta Centre.

The IRONMAN event is well established within Penrith LGA, having been run here since 2014 (except for 2020 and 2021). It is estimated that the return to the community of Penrith from the event could be in the order of $1,119,323 in economic benefit.

Council officers have assessed the proposal against the Events Sponsorship Policy. A total sponsorship value of $5,000 (ex GST) is considered appropriate as a contribution to event expenses. This level of funding reflects the nature of the proposed sponsorship benefits to Council, and the estimated economic benefits.

As for previous years, Council will continue to support the event through works in kind, which based on previous events have been estimated at a minimum value of $1,200 for site presentation works.

Should Council resolve to endorse the sponsorship proposal, Council will enter into a sponsorship agreement with USM Events Pty Ltd (t/a IRONMAN Australia) detailing the expected sponsorship benefits to be delivered to Council in exchange for its investment.

RECOMMENDATION

That:

1. The information contained in the report on Request for Major Event Sponsorship - USM Events Pty Ltd be received

2. Council endorse sponsorship funding of $5,000 (ex GST) to USM Events Pty Ltd (t/a IRONMAN Australia) in support of the 2023 IRONMAN 70.3 Western Sydney event.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Ordinary Meeting 29 May 2023

Request For Major Event Sponsorship - New South Wales Basketball Association Incorporated

Compiled by: Shelley Lee, Activation and Event Development Officer

Beau Reid, Place and Activations Program Manager

Authorised by: Megan Whittaker, City Activation, Community and Place Manager

Jeni Pollard, Manager - City Resilience

Kylie Powell, Director - City Futures

Outcome	We are welcoming, healthy, happy, creative and connected
Strategy	Support and provide opportunities to participate in activities and events that celebrate our diversity, culture and creativity
Principal Activity	Conduct and support events that include all members of our community

Executive Summary

The purpose of this report is to present to Council an event sponsorship proposal received from Sports Marketing Australia, on behalf of the New South Wales Basketball Association Incorporated (t/a Basketball NSW) seeking sponsorship of the 2024 Waratah Senior League Finals.

This report provides Council with details of the sponsorship proposal received, including the proposed benefits and an assessment of the proposal.

Sports Marketing Australia Pty Ltd (SMA) has submitted a proposal on behalf of Basketball NSW (BNSW), the event organiser, for sponsorship from Council for the 2024 Waratah Senior League Finals to be held at the Penrith Valley Sports Stadium from 24 – 25 August 2024.

BNSW has sought a total sponsorship investment from Council of $7,200 (ex GST) in the form of sponsorship of $5,000 (ex GST) to Basketball NSW and a $2,200 (ex GST) placement fee to Sports Marketing Australia Pty Ltd. Council officers have estimated the event could deliver approximately $465,106 in local economic benefit.

This sponsorship presents a new event acquisition for Council as well as an opportunity to build a strategic relationship with Basketball NSW with the view to encouraging and hosting further events in Penrith into the future.

This report recommends that Council provides sponsorship of $5,000 (ex GST) to Basketball NSW and pays a $2,200 (ex GST) placement fee to Sports Marketing Australia Pty Ltd in support of the 2024 Waratah Senior League Finals, representing a total investment from Council of $7,200 (ex GST).

Background

Council was approached on 6 April 2023 by Sports Marketing Australia Pty Ltd (SMA) on behalf of Basketball NSW to consider sponsorship of the 2024 Waratah Senior League Finals to be held at the Penrith Valley Sports Stadium (PVSS) from 24 to 25 August 2024.

Council endorsed the Events Sponsorship Policy (‘the Policy’) in June 2020. The Policy includes criteria for Major Event Sponsorship.

Current Situation

The sponsorship proposal received from Basketball NSW for the 2024 Waratah Senior League Finals seeks a total Council investment of $7,200 (ex GST). This is in the form of sponsorship of $5,000 (ex GST) to assist with operating and hire costs associated with running the event, and a service fee of $2,200 (ex GST) payable by the sponsor directly to SMA to negotiate sponsorship agreements on the event organiser’s behalf.

Council officers are engaging with Sports Marketing Australia to flag our intention to pursue events with opportunities for more significant economic and community benefit.

Further details on the event are provided below:

2024 Waratah Senior League Finals

Basketball NSW is the peak body for the administration of basketball competitions, events and representative teams in NSW. The Waratah Senior League Finals are a combined finals event where all 7 divisions (men’s and women’s, youth men’s and women’s and wheelchair basketball) of senior level basketball complete for their respective divisional championship title.

The organisers of the 2024 Waratah Senior League are anticipating that there will be approximately 420 participants plus 120 referees, match officials and event staff.

Based on information provided by the applicant, it is anticipated that 81 participants will be drawn from the Greater Sydney area, and 459 from other areas of NSW. It is anticipated that 85% of attendees will be from outside of the Penrith Local Government Area staying overnight between 1 - 2 nights.

Previous sponsorship to New South Wales Basketball Association Incorporated

New South Wales Basketball Association Incorporated (t/a Basketball NSW) has not previously sought sponsorship from Council.

Proposed Sponsorship Benefits

The sponsorship opportunities for the 2024 Waratah Senior League Finals event would provide Council and the community of Penrith with several benefits including:

· Logo recognition on all marketing collateral produced in promotion of the event, including the BNSW website, social media, communication, website, social media, etc

· Opportunity to display branded signage at the event (supplied by Council)

· Opportunity to issue joint media releases with BNSW related to Council’s sponsorship of this event

· Invitation to Mayor or delegate to provide welcome speech and/or make award presentations

· Opportunity to provide Visitor Guides to participants

Assessment of sponsorship proposal

The sponsorship proposal has been assessed against Council’s Events Sponsorship Policy criteria for Major Event Sponsorship.

Sponsorship of $5,000 (ex GST) is considered appropriate to support this event, assisting to cover venue hire. This level of funding reflects the nature of the proposed sponsorship benefits to Council. This level of funding is also consistent with Council’s approach to levels of sponsorship for events with comparable benefit returns, as estimated using the Destination NSW “Economic value of Tourism and Events” calculator.

This sponsorship presents an event acquisition opportunity for Council and an opportunity to build a strategic relationship with Basketball NSW with the view to encouraging and hosting further events in Penrith into the future.

Should Council endorse a sponsorship of the 2024 Waratah Senior League Finals, a placement fee of $2,200 (ex GST) is payable by Council to Sports Marketing Australia Pty Ltd due to Basketball NSW’s engagement of SMA as its agent to place the event and negotiate a sponsorship arrangement on their behalf.

It is recommended that sponsorship in the form of $5,000 (ex GST) to Basketball NSW be endorsed, with the addition of the placement fee of $2,200 (ex GST). This would represent an overall sponsorship investment by Council of $7,200 (ex GST) for this event. This level of funding reflects the nature of the proposed sponsorship benefits to Council, and the estimated economic benefits.

Financial Implications

Major Event Sponsorship funding to support the delivery of the 2024 Waratah Senior League Finals is available within the existing City Activation, Community and Place budget included in Council’s 2022-23 Operational Plan.

To date for this financial year, Council has endorsed a total of $90,530 major and community event sponsorships leaving $109,470 available from the 2022-23 Penrith Events Partnership Program.

Risk Implications

If the sponsorship is endorsed, Council will enter into a sponsorship agreement with Basketball NSW to detail the expected sponsorship benefits to be delivered to Council and the community in exchange for Council’s investment.

Conclusion

A request for sponsorship has been received from Sports Marketing Australia on behalf of Basketball NSW to support the 2024 Waratah Senior League Finals to be held at the Penrith Valley Sports Stadium (PVSS) from 24 – 25 August 2024.

The request seeks a total of $7,200 (ex GST), which consists of $5,000 (ex GST) to Basketball NSW and $2,200 to Sports Marketing Australia as a placement fee. It is estimated that the return to the community of Penrith City from the event could be in the order of $465,106 in economic benefit.

This sponsorship presents an event acquisition opportunity for Council.

Council officers have assessed the proposal against the Events Sponsorship Policy. It is recommended that Council support a total sponsorship of $5,000 (ex GST) in support of the 2024 Waratah Senior League Finals, consisting of $5,000 (ex GST) to Basketball NSW and $2,200 (ex GST) to Sports Marketing Australia Pty Ltd as a placement fee. This level of funding reflects the nature of the proposed sponsorship benefits to Council, and the estimated economic benefits.

Should Council resolve to endorse the sponsorship proposal, Council will enter into a sponsorship agreement with Basketball NSW detailing the expected sponsorship benefits to be delivered to Council in exchange for its investment.

RECOMMENDATION

That:

1. The information contained in the report on Request For Major Event Sponsorship - New South Wales Basketball Association Incorporated be received

2. Council provide sponsorship of $7,200 (ex GST) in support of the 2024 Waratah Senior League Finals, consisting of $5,000 (ex GST) to Basketball NSW and $2,200 (ex GST) to Sports Marketing Australia Pty Ltd.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Ordinary Meeting 29 May 2023

NSW Reconstruction Authority Regulatory Impact Statement Submission

Compiled by: Andrew Hewson, Sustainability Education Officer

Belinda Atkins, Sustainability and Resilience Lead

Authorised by: Jeni Pollard, Manager - City Resilience

Kylie Powell, Director - City Futures

Outcome	We are welcoming, healthy, happy, creative and connected
Strategy	Build and support community resilience to adapt to changing circumstances
Principal Activity	Engage with our community on resource efficiency and to improve resilience

Executive Summary

The purpose of this report is to seek Council’s endorsement of a submission to the NSW Reconstruction Authority on the Regulatory Impact Statement for the NSW Reconstruction Authority Regulation. This Regulation provides increased powers for the State Government in undertaking work to both mitigate potential disaster impacts, as well as streamline actions which may be undertaken in the recovery phase.

The Regulatory Impact Statement was put on exhibition for feedback with a limited timeframe from 14 April to 15 May. To meet the timeframe, the submission found in Attachment 1 has been forwarded by Council officers. However, if Council is not supportive of the submission it will be withdrawn.

The report recommends that Council endorse the submission to the NSW Reconstruction Authority on the Regulatory Impact Statement for the NSW Reconstruction Authority Regulation.

Background

2022 saw numerous major disaster events experienced in NSW, including the major flooding in the Northern Rivers and Central NSW, as well as multiple flood events here in the Nepean Hawkesbury region. In some of these events, there were significant challenges in the preparedness of communities and regions, and the subsequent emergency management and recovery response.

After critically reviewing the response to these flood events, the NSW Government established the NSW Reconstruction Authority Act 2022 (RA Act), which received assent in late November 2022. In December the NSW Reconstruction Authority was formally established, replacing and evolving the scope of the former Resilience NSW. In February 2023 the NSW Reconstruction Authority Regulation 2023 commenced under the RA Act.

With the projections around our changing climate events, and vulnerability to natural hazards like storms, flooding, bushfires, and extreme heat, investing in and planning for more resilient cities and townships is highly needed.

Current Situation

Recently Council was notified by the NSW Reconstruction Authority of the NSW Reconstruction Authority Regulation Impact Statement being placed on exhibition for feedback from key stakeholders. Importantly this is a retrospective exhibition process, noting that the Act and Regulation are both already in place. Council connected with NSW Reconstruction Authority staff and coordinated a briefing to better understand the Act and potential implications for Council.

The primary objective of the RA Regulation is to provide standing arrangements that can be relied upon to boost the State's responsiveness to disaster events and increase government's ability to act quickly, decisively, and effectively in relation to disaster preparedness and recovery. In simple terms it streamlines the regulatory and approval process to undertake works, with approval only required from the relevant Minister and the NSW Reconstruction Authority to undertake work, effectively bypassing normal planning approval processes and the need to consult with key stakeholders including the community and local government.

This applies to undertaking mitigation measures to reduce to risk to community and create more resilient infrastructure, and in the recovery phase to quickly rebuild infrastructure and assets following a disaster event. Notably the powers are open ended and broadly unlimited in nature, which creates flexibility for their use but also creates a potential risk of how they might be applied in the future.

The RA Act was closely modelled on the Queensland Reconstruction Authority Act 2011, and their states’ experience with disaster management. The notable difference is that the NSW RA Act is broader in nature, and specifically includes strategic actions for mitigating the impacts of disasters in its scope as well as in the recovery phase. In practice, Council has been informed that the Queensland Act has only been utilised in a small number of actions, including:

· Works to repair a damaged water pipeline in Toowoomba following floods.

· A landswap deal undertaken in partnership with Lockyer Valley Council to build 100 new homes for flood affected residents in Grantham.

· The stabilisation and removal of a floating restaurant which had washed up on Council owned land.

The examples of how this legislation has been leveraged in Queensland have been limited and in themselves and are practical in nature. However, considering the open-ended power of the legislation and the broader scope adopted in NSW, Council officers identified the following key risks which formed the basis of the submission found in Attachment 1:

Streamlined approval process

Whilst noting some safety measures are outlined in the Regulatory Impact Statement, it is important that appropriate process is not shortcut too far in this process, and that suitable consultation with key stakeholders is still undertaken. This includes that critical components such as Environmental Impact Statements are made available for review as part of this process to stakeholders such as Council, but also the broader community for full transparency.

It is recognised that in the event of a disaster, there can be a critical need to promptly restore essential services and infrastructure that may have been damaged. In doing so, Council understands that streamlining the associated approval processes will provide benefits for impacted residents, businesses and services and their recovery from the disaster event. In such scenarios, it is strongly recommended that any planned actions are again undertaken in consultation with relevant authorities, including Council, to ensure that any potential impacts be they environmental or social, be considered and the work undertaken in a way that minimises those risks, but also meeting the needs of community recovery.

Build back better

As we face an increasingly challenging climate events and increased risk from natural hazards, it is critical that all branches of government work together to create more resilient infrastructure and services to meet the needs of our communities. While acknowledging that a prompt recovery is essential for community wellbeing, consideration should be given to future proofing for long term suitability and ‘building back better’, so infrastructure and communities are less likely to be impacted in the future.

Again, Council recognises that this principle was included within the NSW Reconstruction Authority Regulation. However, with the overwhelming intent of streamlining approval processes for recovery efforts after an event, there is a risk that opportunities to build back better may be lost. Even within this streamlined process, appropriate planning and funding to enable building back better needs to be included.

Conclusion

The emergency preparedness and response space is challenging and complex for all parties. The effects of recent floods and bushfires across NSW have demonstrated the need for improved actions to reduce the impact of these events and to streamline recovery efforts.

The establishment of the NSW Reconstruction Authority and associated Act and Regulation provide important changes to this space, with the aim of creating more resilient and safe communities. Council’s submission to the NSW Reconstruction Authority reflects our commitment to ensuring any actions undertaken under this this new legislation include appropriate engagement with key stakeholders, including Council as well as creating the optimum benefits for our region.

RECOMMENDATION

That:

1. The information contained in the report on NSW Reconstruction Authority Regulatory Impact Statement Submission be received

2. Council endorse the submission at attached to the NSW Reconstruction Authority on the Regulatory Impact Statement for the NSW Reconstruction Authority Regulation.

ATTACHMENTS/APPENDICES

1. ⇩

Letter of Submission to NSW Reconstruction Authority

2 Pages

Attachments Included

Ordinary Meeting 29 May 2023

Endorsement of Advocacy Strategy 2023

Compiled by: Marianna Kucic, Strategic Policy and Partnerships Manager

Authorised by: Carlie Ryan, City Strategy Manager

Kylie Powell, Director - City Futures

Outcome	We plan and shape our growing City
Strategy	Undertake strategic planning that will ensure balanced growth and liveability
Principal Activity	Ensure our strategic framework and vision are contemporary and informs our land use planning and advocacy

Executive Summary

Penrith is going through a period of significant growth with unprecedented investment in infrastructure projects that will transform Penrith and the Western Parkland City. The community is passionate about improving access to, and the quality of, services and facilities – and expects Council to advocate on its behalf to maximise the benefits of regional growth while minimising adverse impacts on amenity.

Council’s current Advocacy Strategy was developed in 2018. The Strategy identified several infrastructure projects that would unlock economic opportunities and improve connectivity. Council’s advocacy program and infrastructure priorities have since evolved, necessitating a revised and updated Advocacy Strategy. This report seeks Council’s endorsement of a new Advocacy Strategy (Attachment 1).

Council’s Advocacy Program in 2023 includes:

1. Advocacy Strategy (for endorsement) – Providing Council’s overarching, strategic approach to advocacy.

2. Advocacy Priorities List – Providing a more comprehensive list of the infrastructure projects that would have city-shaping potential and enduring community benefits.

Implementing a strategic approach to advocacy through these documents will support proactive campaigns and the delivery of priority infrastructure. Importantly, the Advocacy Program outlines areas of focus, but in no way precludes or prevents opportunities to advocate on more local based projects or new opportunities for other projects.

The new Advocacy Strategy provides a high-level view of our advocacy program for 2023 and beyond. The Strategy’s project priorities are evidence-based and founded on what our community has told us through extensive consultation and engagement across a number of projects such as the Community Strategic Plan (CSP). Many of these priorities are also supported by Council’s endorsed strategies such as the Local Strategic Planning Statement (LSPS), the Sport and Recreation Strategy, the St Marys Town Centre Structure Plan and the Green Grid Strategy.

Ahead of the State Government election, an Advocacy Priorities List was developed. The intention of the Priorities List is to highlight critical projects to decision-makers and policy influencers to ensure our voice is heard. The Priorities List was distributed ahead of the State Government election to election candidates. A further iteration of the Advocacy Priorities List (Attachment 2) has been distributed post-election to select Ministers, Members of Parliament and senior officials of Government agencies. The list will continue as a regularly-revised, “living” document. The projects outlined in the list were updated in early April 2023 and represent that one point in time. The estimated project costs are subject to detailed work being undertaken to determine an accurate cost, such as quantity surveying work.

Councillors were briefed on the Advocacy Strategy and Advocacy Priorities List at the 22 May 2023 Councillor Briefing. Together, the revised Advocacy Strategy 2023 (Attachment 1) and Advocacy Priorities List (Attachment 2) outline the transformational projects that if accomplished will deliver enduring benefits to our community. These advocacy documents focus on top-tier projects which would have City-shaping impacts, but are no way an exhaustive list of all Council’s advocacy projects. Council continues to advocate on many other issues. Advocacy must be embedded in Council’s activities and interactions at all levels and this Strategy will assist to develop such a culture. Strong, consistent messaging and awareness of community aspirations support Council’s reputation as a reliable advocate for our community.

Background

In April 2018, Council adopted its first Advocacy Strategy with three flagship priorities: A Connected City, Our River and Creating the New West. That first Strategy identified some projects which have been partially committed to and progressed, such as the North South Rail Link, and other projects which continue to be Council priorities, like Castlereagh Connection, Penrith Lakes and Rapid Bus.

Council’s advocacy program and infrastructure priorities have evolved over time. Council’s advocacy work has been reviewed at appropriate opportunities. An Advocacy Priorities document was produced in 2019, followed by separate advocacy documents relating to the Castlereagh Connection and Werrington Arterial Stage 2 in 2021.

Councillors were provided memos in March 2022 and December 2022 outlining the development of Council’s latest advocacy priorities list and program approach, including the draft Advocacy Strategy (December 2022 memo). In the lead-up to the 2023 State Government election, the Advocacy Priorities List was distributed to candidates. A further iteration of the Advocacy Priorities List has been distributed post-election to select Ministers, Members of Parliament and senior officials of Government agencies as outlined in the Councillor Memos of 17 March and 26 April 2023. Councillors were briefed on the Advocacy Strategy and Advocacy Priorities List at the 22 May 2023 Councillor Briefing.

Current Situation

A Revised Advocacy Strategy

A new Advocacy Strategy (Attachment 1) has been prepared to reflect the evolution of Council’s advocacy program and priorities. This report seeks Council’s endorsement of the Advocacy Strategy 2023. If endorsed, the document will be made available on Council’s website.

The purpose of the revised Advocacy Strategy and accompanying Advocacy Priorities List is to articulate our vision for the Penrith LGA and how the delivery of specific projects will help us achieve that vision sooner. These documents will be used for when we engage with Members of Parliament, State and Federal candidates or senior officials from various Government agencies. It will express our advocacy platform in a succinct manner with clear asks on the changes we need.

Endorsing and implementing a strategic approach to advocacy will support proactive campaigns. The new Advocacy Strategy establishes our objectives and outlines areas of focus. Importantly, the Advocacy Strategy in no way precludes or prevents opportunities to advocate on more local based projects or new opportunities for other projects.

The revised Advocacy Strategy builds on the vision of the Community Strategic Plan (CSP), which was developed through extensive consultation and engagement and is endorsed by the Elected Council. Our CSP is a ‘big picture’ plan based around the five Outcomes our community has told us will make Penrith a better place to live, work and visit. In addition, to deliver on the vision of the CSP, this latest iteration of the Advocacy Strategy builds on the four strategic focus areas from the LSPS – ensuring that we deliver a Connected, Healthy, Innovative and Balanced City. These are long term goals and Council cannot deliver them alone – we need to work with Federal and State Government, businesses, other organisations and our community to achieve these together.

The Advocacy Strategy sets out how Council will work with other levels of Government to represent the community’s needs and aspirations. Council will use a variety of methods and techniques to pursue Penrith’s advocacy priorities. This will include opportunistic and programmed activities such as making submissions, attending delegations, face to face meetings, correspondence, media activities and public campaigns.

Advocacy Priorities List

Ahead of the State Government election, an Advocacy Priorities List was developed. The Advocacy Priorities List sets out specific infrastructure projects with city-shaping impact. The Priorities List is intended to be a document that can be handed to, or distributed to, decision-makers and policy influencers which highlights critical projects and explains why these projects are important to our community.

Ahead of the 2023 State Government Election, the Advocacy Priorities List was distributed to the candidates. The Priorities List was updated post-election such that it could be distributed to key Government decision-makers and policy influencers. The list will continue as a regularly-revised, “living” document. The projects outlined in the list were updated in April 2023 and represent that one point in time. The estimated project costs are subject to detailed work being undertaken to determine an accurate cost, such as quantity surveying work.

These advocacy documents focus on top-tier projects which would have City-shaping impacts, but are no way an exhaustive list of all Council’s advocacy projects. Council continues to advocate on many other issues.

Implementation

Implementation of the Advocacy Strategy will involve progressing a series of actions and promotion of our advocacy priorities through various advocacy channels. At the Councillor Strategic Planning Workshop in February 2023, it was suggested that a Post-Election Advocacy Action Plan be developed to guide Council’s advocacy activities in the period after the election.

The Action Plan has been outlined in Councillor Memos dated 17 March and 26 April 2023 which describe which Government decision-makers would be contacted, by what method, and on the topic of what advocacy priorities/projects. This Action Plan, together with the actions in the Advocacy Strategy, will continue to be implemented and will be revisited over time to ensure Council’s voice is heard.

Financial Implications

Implementation of the Advocacy Strategy will come from within the existing Advocacy project funds available in the Operational and Delivery Program for 2022-2023.

Risk Implications

There are no risk implications associated with this report. The absence of an updated Advocacy Strategy and failing to have a strategic approach to advocacy could mean that our community misses out on critical city-shaping infrastructure or has to wait longer for its delivery.

Conclusion

Advocacy must be embedded in Council’s activities and interactions at all levels and this new Advocacy Strategy will assist to develop such a culture. Strong, consistent messaging and awareness of community aspirations support Council’s reputation as a reliable advocate for our community.

The purpose of the new Advocacy Strategy and associated Advocacy Priorities List is to articulate our vision for Penrith LGA and how the delivery of specific projects will help us achieve that vision sooner. These evidence-based documents will be used when we engage with Members of Parliament, State and Federal Ministers or senior officials from various Government agencies. The Advocacy Strategy will express our advocacy platform in a succinct manner with clear asks on the changes we need.

It is recommended that Council endorse the new Advocacy Strategy. Implementing a strategic approach to advocacy will support proactive campaigns and the delivery of priority infrastructure. The Advocacy Strategy establishes our objectives and outlines areas of focus, which have been developed to support outcomes identified in the CSP and LSPS. While the associated Advocacy Priorities List will be a “living” document and periodically revised to reflect our community’s needs.

Through implementation of the Strategy, we will strengthen the capacity of our organisation and our community to advocate successfully for the needs of our growing population – maximising the benefits of our regional growth, while minimising adverse impacts on amenity.

RECOMMENDATION

That:

1. The information contained in the report on Endorsement of Advocacy Strategy 2023 be received

2. Council endorse the Advocacy Strategy 2023 at Attachment 1.

3. The Advocacy Strategy and Advocacy Priorities List be made available on Council’s website.

ATTACHMENTS/APPENDICES

1. ⇩	Advocacy Strategy 2023	24 Pages	Attachments Included
2. ⇩	Advocacy Priorities	28 Pages	Attachments Included

Ordinary Meeting 29 May 2023

Westfield Penrith Planning Proposal (569-595 High Street, Penrith)

Compiled by: Elizabeth Hanlon, Senior Planner

Authorised by: Natasha Williams, City Planning Manager

Kylie Powell, Director - City Futures

Outcome	We plan and shape our growing City
Strategy	Undertake strategic planning that will ensure balanced growth and liveability
Principal Activity	Facilitate appropriate land use outcomes for our city that are consistent with our Local Strategic Planning Statement

Previous Items: Westfield Penrith Planning Proposal (569-595 High Street, Penrith)- Councillor Briefing - 06 Sep 2021

Westfield Penrith Planning Proposal (569-595 High Street, Penrith)- Councillor Briefing- 21 Mar 2022

Procedural note: Section 375A of the Local Government Act 1993 requires that a division be called in relation to this matter.

Proponent / Consultant: Scentre Group / Urbis

Subject Land: 569-595 High Street, Penrith (Lot 1 DP 1137699)

Landowner: Scentre Group and GTP Group

Executive Summary

The purpose of this report is to present a Planning Proposal for 569-595 High Street, Penrith, currently occupied by Westfield Penrith. The Planning Proposal seeks to amend the building height and floor space controls in the Penrith Local Environmental Plan 2010 to facilitate the development of the eastern portion of the land to enable a commercial and hotel development comprising two towers above a podium. A range of employment activities including entertainment and leisure, commercial offices, visitor accommodation and retail are proposed, all of which are currently permissible with consent.

Councillors have received the following memorandums and briefings on this Planning Proposal:

· 28 May 2021 – Memorandum notifying lodgement and introducing the Planning Proposal;

· 6 September 2021 – Councillor Briefing on the Planning Proposal and key issues following an initial assessment;

· 17 September 2021 – Memorandum providing additional information requested at the Councillor Briefing on economic benefits and timeframes; and

· 21 March 2022 – Councillor Briefing on the progress of the Planning Proposal and outstanding issues prior to referring the proposal to the Local Planning Panel.

While the Planning Proposal, originally submitted in May 2021, was considered to demonstrate strategic merit, several key issues were identified including the site’s suitability for the proposed towers, the character and function of Riley Street and traffic impacts. The Planning Proposal has now been updated to propose more suitable floor space and building height controls and respond to issues relating to Riley Street and traffic impacts.

In relation to traffic impacts, the proponent intends to submit a Letter of Offer to enter into a Voluntary Planning Agreement (VPA) for the provision of a monetary contribution towards traffic improvements to address increased congestion on the surrounding road network from the proposed development. The Letter of Offer is also intended to provide a monetary contribution towards car parking, community facilities, drainage and open space in accordance with the Penrith Civic Improvement Development Contributions Plan.

Once submitted, the Letter of Offer will be reviewed and considered by Council’s Local Infrastructure Contributions Working Group, before being reported to Council for endorsement. Subject to Council’s endorsement of the Planning Proposal, it is proposed that the Letter of Offer be exhibited with the Planning Proposal.

An assessment of the Planning Proposal has been completed, including the advice of the Local Planning Panel. The updated Planning Proposal is considered to be worthy of in-principle support to progress through the next steps of the Gateway process. The report recommends that Council endorse the updated Planning Proposal for submission to the Department of Planning and Environment (DPE) with a request for a Gateway Determination to enable public exhibition and agency consultation, subject to the receipt of a satisfactory Letter of Offer.

Background

On 17 May 2021, Council received a Planning Proposal seeking to amend the Floor Space Ratio (FSR) and Height of Buildings (HoB) controls prescribed by the Penrith Local Environmental Plan 2010 (LEP 2010) on part of the land at 569 – 595 High Street, Penrith. The land is currently occupied by Westfield Penrith shopping centre and is approximately 90,325m² with frontages to High Street, Henry Street, Riley Street, Jane Street, Belmore Street and Station Street.

Following an initial assessment by Council officers, the Planning Proposal was considered to demonstrate strategic merit as it aligns with the vision of the Penrith City Centre being a key employment centre in the Western Parkland City. However, several issues were identified that required resolution to determine site suitability. These issues related to the FSR and HoB controls for two proposed towers on the eastern portion of the land, the character and function of Riley Street, traffic and access, and environmentally sustainable design. On 6 September 2021, Councillors were briefed on the initial assessment of the Planning Proposal.

Attachment 1 provides a location map of the land and identifies the two proposed tower sites where changes to the FSR and HoB controls are sought (shown as Block A and Block B).

In November 2021, the proponent submitted an amended Planning Proposal in response to the issues raised in the initial assessment. In February 2022, following further assessment, Council officers requested some further changes to enable the Planning Proposal to be considered by the Local Planning Panel. On 21 March 2022, Councillors were briefed on the progress of the Planning Proposal, including the requested changes, which related to the FSR and HoB controls, Riley Street and traffic matters.

In June and August 2022, the proponent submitted further amendments to the Planning Proposal which responded to most but not all the requested changes. Following ongoing discussions with the proponent, the latest Planning Proposal was submitted, which responds to all requested changes and the advice of the Local Planning Panel, discussed later in this report. A copy of the latest Planning Proposal has been provided to Councillors as an enclosure to this report.

Current Planning Controls under Penrith LEP 2010

Under LEP 2010, the land is zoned E2 Commercial Centre (previously B3 Commercial Core before the DPE’s Employment Zones Reform), which provides for a wide range of retail, business, office, entertainment, community and other suitable land uses that serve the needs of the local and wider community.

The land is currently subject to a maximum 1.5:1 FSR control and a maximum 20m HoB control. The land is also subject to the Penrith City Centre provisions in Part 8 of LEP 2010, which include provisions relating to sun access to public open spaces and building design excellence.

Planning Proposal

The Planning Proposal seeks to amend the floor space and building height controls in two specific locations on the land, one on the corner of Riley and Belmore Streets (referred to as Block A – The Hub) and the other on the corner of Henry and Station Streets (referred to as Block B – Borec House), as shown in Attachment 1.

The amendments sought in the Planning Proposal aim to facilitate the development of the eastern portion of the land to enable a commercial and hotel development comprising two towers above a podium, accommodating a range of employment activities including entertainment and leisure, commercial offices, visitor accommodation and retail.

The envisaged development proposes to provide more than 35,000m² of floor space including:

· Approx. 20,300m² of A-grade commercial office space;

· Approx. 6,000m² of expanded retail space; and

· Approx. 7,500m² for a 152-room hotel.

The envisaged development is forecast to create 78 direct jobs and 118 indirect jobs over its 3.5 year construction phase (and $108.6 million in Gross Value Add). Once in operation, the development is forecast to create 1,360 direct jobs and 784 indirect jobs (and $319 million in Gross Value Add per year).

To help understand how the Planning Proposal has evolved, the following table outlines the amendments sought to the LEP controls in the original Planning Proposal submitted in May 2021 compared with those in the latest updated Planning Proposal.

LEP 2010 control

Original Planning Proposal

Latest Updated Planning Proposal

Height of buildings

Increase maximum height to:

· 99m (approx. 27 storeys) for Block A; and

· 56m (approx. 15 storeys) for Block B.

Increase maximum height to:

· 84m (approx. 22 storeys) for Block A; and

· 47m (approx. 11 storeys) for Block B.

LEP 2010 control

Original Planning Proposal

Latest Updated Planning Proposal

Floor space

Increase maximum FSR to 1.91:1 across the entire Westfield site.

Retain existing maximum FSR control of 1.5:1 across the entire Westfield site but allow a maximum gross floor area of up to:

· 24,000m² for Block A; and

· 14,000m² for Block B;

through a new site-specific clause in LEP 2010.

Attachment 2 shows the current floor space and building height controls. It also shows the proposed building height controls. The HoB map will also be used to identify the locations for the proposed maximum gross floor areas (outlined in blue) specified in the new LEP clause.

Attachment 3 includes some perspectives of the proposed towers from the concept scheme accompanying the Planning Proposal. It should be noted that, if the Planning Proposal proceeds, any future development on Block A and Block B will be subject to a development application process including an architectural design competition to achieve building design excellence.

Planning considerations

Strategic Merit

The Planning Proposal is considered to demonstrate strategic merit. The envisaged development aligns with the vision of the Penrith City Centre being a key employment centre in the Western Parkland City underpinned by office, retail and tourist uses, as outlined in the following plans and strategies:

· Western City District Plan (2018);

· Penrith Local Strategic Planning Statement (2020);

· East-West Corridor Interim Centres Strategy (2020);

· Penrith Progression (2015); and

· Penrith Economic Development Strategy (2017).

Zoning

The proposed commercial, hotel and retail uses are permissible with consent in the E2 Commercial Centre zone. The proposal is consistent with and meets the objectives of this zone.

Height of Buildings

Council has been unable to undertake a City Centre Review to create a built form framework for the Penrith CBD, including building heights, as the State Government is yet to resolve regional flood evacuation issues. Without this guidance, an assessment has been made based on the concept scheme in the Urban Design Report that accompanied the Planning Proposal and contextual matters including the land’s location, overshadowing and the requirements of Clause 8.2 Sun Access of LEP 2010, heritage and transition to surrounding buildings.

Clause 8.2 of the LEP is a key determinant of the maximum height for the towers on the land. This clause requires that “development consent may not be granted to development … if that development would result in overshadowing of public open space to a greater degree than would result from adherence to the controls … on the Height of Buildings Map” (currently 20m).

For Block A, the maximum height to ensure compliance with Clause 8.2 is 99m. However, this would produce a highly chamfered building which would reduce the useability of upper-level floor space and make it more of an ‘architectural feature’. The concept scheme proposes a height to 84m which is understood to be the functional height limit within the solar access plane. Although the upper levels will have some type of chamfer or step on the southern side of the building to prevent overshadowing, the upper levels are still likely to be usable. Reducing the maximum building height for Block A to 84m will also mean the envisaged development shown in the concept scheme will not overshadow the future City Park in any circumstances, ensuring greater sun access than that allowed under Clause 8.2.

For Block B, the maximum height to ensure compliance with Clause 8.2 is 56m. However, this would similarly produce a highly chamfered and stepped building. The concept scheme proposes a height of 47m taken to be the maximum functional height. Given the proximity of City Park and the intention to prevent overshadowing, only the rear section of the building will be able to achieve this height with the remainder of the building having a stepped configuration that reduces in height as the building moves towards the Park. This reduced maximum building height of 47m and stepped configuration will similarly mean greater sun access to City Park than that allowed under Clause 8.2.

Maximum building heights have also been informed by the contextual height analysis provided in the Urban Design Report. Attachment 4 shows the height of the proposed towers relative to the future built form of the City Centre. The Urban Design Report indicates that the height of the tower for Block A will be more to scale with the current 80m maximum height control for buildings along Belmore Street and consistent with heights determined in other Planning Proposals or development applications on key sites in the City Centre. The Report also notes Block A is close to key sites identified in Clause 8.7 of LEP 2010, which allows maximum heights to be exceeded in certain circumstances, suggesting that building heights for key sites between Station Street and Lawson Street could potentially be similar to those for key sites east of Lawson Street. In relation to Block B, the Urban Design Report indicates the tower, with its stepped configuration, is more to scale with maximum building heights along Henry Street.

Given the envisaged development can fit within the lower heights of 84m for Block A and 47m for Block B and these heights are more to scale with those in the City Centre and ensure no overshadowing of City Park, the updated Planning Proposal now reflects these heights for the two tower sites. While the concept scheme indicates these heights can accommodate any necessary services and lift overruns, in the event of additional flexibility being needed, the design excellence clause (Subclause 8.4 (5) of LEP 2010) provides some flexibility.

Views to the Mountains

Clause 8.4 of LEP 2010 requires consideration of built form and view corridors during the design competition and development application stage. In addition, Penrith Development Control Plan (DCP) 2014 includes controls relating to built form and maintaining views of the Blue Mountains escarpment, particularly those along High Street. While the two tower locations are to the north of High Street, mid-range views of the mountains along Henry Street will be maintained as a stepped tower configuration will be required on Block B to prevent overshadowing of City Park. For Block A, mid-range views of the mountains will be partially affected by any proposed tower. It is noted, however, that when development occurs on land on the southern side of Belmore Street to the current allowable maximum height of 80m, a proposed tower on Block A and views of the mountains will likely be obscured when viewed from the east.

Floor Space

The original Planning Proposal proposed to increase the maximum FSR to 1.91:1 across all the land containing the Westfield Penrith shopping centre. However, to ensure greater certainty over future development outcomes, the approach proposed in the updated Planning Proposal is to apply a maximum gross floor area to each of the tower locations.

This approach, together with the proposed height of building and sun access controls, the design excellence process and the relevant controls in Penrith DCP 2014, should ensure there is sufficient certainty to control the scale, density and built form of the towers, while still providing scope to achieve a high-quality design outcome.

Riley Street Form and Function

The original Planning Proposal included a proposed formal shared zone in Riley Street, which would remove all parking and bus routes from Riley Street, limit the speed for vehicles to 10km/h and allow the street to function as a ‘pedestrian prioritised’ street where car and pedestrian movement are mixed. It also proposed an expansion of the public domain areas to add landscaping, street furniture and outdoor dining.

Riley Street forms part of the City Centre gateways that facilitate south to north vehicle movement into Jane Street (Great Western Highway) and in and out of the City Centre. The buses perform an important role in moving people around the City Centre with a critical bus service operating within Riley Street. Taxis and commercial vehicles also compete for the limited street space. It is considered that the use of street space must be prioritised and allocated for public transport, general traffic, taxis, emergency service and commercial service vehicles to manage congestion so the City Centre functions effectively and supports its role as a major commercial centre. Further, a formal shared zone would require approval from Transport for NSW.

Given the key role of Riley Street, Council officers advised the proponent that a formal shared zone as proposed is not supported. However, pedestrian elements and public domain embellishments that improve the place function and amenity of Riley Street can be built into the proposal. To guide any redesign or future configuration of Riley Street, a set of design principles and standards were provided to the proponent. They are included in Attachment 5 and essentially require maintaining the existing traffic arrangements in Riley Street.

The updated Planning Proposal and supporting Traffic and Transport Report no longer refer to a ‘shared zone’ and note Council’s intention to use the design principles and standards as a basis for future discussions on the design of Riley Street.

Traffic and Access

Council officers raised a number of issues in the Traffic and Transport Report for the original Planning Proposal, including in relation to the use of certain modelling assumptions. The proponent has undertaken further traffic analysis to assess the impact of the envisaged development on the surrounding road network to determine the need for any mitigation measures. The analysis indicates that, while local intersections will generally operate at levels that do not require mitigation measures, the development will have a cumulative impact on congestion across the surrounding network.

To address this cumulative impact, a monetary contribution towards future intersection improvement works is considered necessary. In this regard, the proponent intends to submit a Letter of Offer to enter into a Voluntary Planning Agreement (VPA) for the provision of a monetary contribution towards traffic improvement works to address increased congestion on the surrounding network. Once submitted, the Letter of Offer will be reviewed and considered by Council’s Local Infrastructure Contributions Working Group, before being reported to Council for endorsement. Subject to Council’s endorsement of the Planning Proposal, it is proposed that the Letter of Offer be exhibited with the Planning Proposal.

Flooding

The accompanying Flood Management Report indicates that:

· Based on the 2020 Penrith CBD Floodplain Risk Management Study and Plan, the land proposed for development is not affected by localised flooding up to and including the 0.5% Annual Exceedance Probability (AEP) flood event but is affected by the Probable Maximum Flood (PMF) event. This means the localised PMF event will inundate the basement and be a relatively short event (60-90 minutes) with little warning. The Report recommends a strategy to essentially remain in place and wait for waters to recede before safely evacuating.

· Based on the 2019 Hawkesbury-Nepean River Regional Flood Study, the land proposed for development is not affected by regional flooding up to and including the 1% AEP flood event but is affected by the PMF event. The regional PMF is slower rising and higher than the localised PMF event, potentially inundating the first floor. The Report recommends a strategy to evacuate people in advance of flood waters to higher ground given there will be additional time to prepare.

While flooding is an important consideration, particularly in the context of the recent Independent Flood Inquiry, the DPE’s advice has been that “Council (is) to continue considering and making planning decisions including submitting planning proposals to the Department for Gateway determination as appropriate based on the existing suite of flood planning advice”. That flood planning advice, referred to as the ‘Adaptive Flood Risk Management Framework for Residential Development in the Penrith City Centre’, is focused on managing sensitive land uses such as residential development, seniors housing, hospitals and child care centres in flood affected areas in the City Centre located below the PMF, particularly to ensure safe evacuation. The Framework places staged caps on the number of additional dwellings that can be considered in the City Centre based on factors such as infrastructure and emergency services capabilities. While the land is affected by the localised and regional PMF events, the envisaged development does not propose to include residential development or other sensitive land uses. Therefore, based this advice, the assessment of the Planning Proposal proceeded.

Since that advice, the DPE has provided further advice that “Council will continue to consult with DPE at the time enquiries come in for Planning Proposals for those areas that are below the PMF (and) this consultation is to be undertaken early in the rezoning process”. Given this Planning Proposal was originally submitted in May 2021, clarification was sought from the DPE. The DPE has advised that the Planning Proposal can be reported to Council for its consideration. However, should Council support the Planning Proposal, the DPE will seek advice from relevant agencies on flooding ahead of issuing any Gateway determination.

Heritage

The proposed towers will be near the Red Cow Hotel complex, located on the south west corner of Jane and Station Streets. The Red Cow Hotel is listed as a heritage item in Schedule 5 of LEP 2010. Council’s Heritage Advisor notes the envisaged development appears to respect the proximity of the heritage item, however, advises that detailed analysis will be needed on how development, particularly on Block A, respects the heritage item in terms of its detailing, site lines and materials, and ensures the safety of the heritage item during construction. Heritage issues and streetscape constraints are matters for consideration in Clause 8.4 Design excellence of LEP 2010 which will be part of the assessment of any future development application on the land.

Other matters

Council officers raised some further matters in response to the original Planning Proposal which have been addressed in the updated Planning Proposal. These matters included:

· An intention to prepare a site-specific Development Control Plan (DCP): A site-specific DCP is no longer proposed. The updated Planning Proposal provides an assessment of the concept scheme against current DCP controls for the Penrith City Centre, identifying a small number of departures relating to the floor plate size, maximum building depth and distance to source of daylight. While the supporting Urban Design Report provides justification for these departures, it should be noted that, any decision to progress the Planning Proposal does not mean Council endorsement or support of the concept scheme or the departures. Assessment of detailed design considerations for the towers will be subject to the more appropriate processes of a design competition and development application.

· Upgrades to the public domain and landscaping: The updated Planning Proposal provides further details as a basis for future discussions with Council anticipated to take place at the design competition and development application stage. These discussions will also need to have regard to the Penrith Civic Improvement Development Contributions Plan (CIP), which identifies several public domain projects within the Penrith City Centre. As part of the Letter of Offer, the proponent intends to provide a monetary contribution towards these projects in accordance with the CIP.

· Environmentally sustainable design: The updated Planning Proposal provides further details in the form of a Green Star Pathway Report, noting that this matter will also be subject to a design competition and development application.

Local Planning Panel Advice

In accordance with the requirements of Section 2.19 of the Environmental Planning and Assessment Act 1979, the Planning Proposal was referred to the Local Planning Panel on 26 October 2022 for advice. Advice provided by the Panel is to be taken into consideration in Council’s assessment and preparation of the Planning Proposal.

The Local Planning Panel’s advice and Council officer responses are provided below.

1. The Planning Proposal is considered to have strategic merit as the envisaged development aligns with the vision of Penrith City Centre as being a key employment centre in the Western Parkland City underpinned by office, retail and tourist uses, as outlined in the Western City District Plan, Penrith Local Strategic Planning Statement, Penrith Progression, East-West Corridor Interim Centres Strategy and Penrith Economic Development Strategy.

Council officer response:

Agreed.

2. Despite this, the site is sensitive and assessment of the Proposal should proceed with caution to avoid prejudicing the resolution of several significant issues. Chief amongst these are flooding and stormwater management, visual impacts and views towards the west, and potential overshadowing, while design excellence is crucial for this important central and prominent site.

The flooding considerations particularly warrant a narrow application of permitted uses, such that only employment and hotel uses should be subject to the additional height and floor space ratio. Other permitted uses (such as serviced apartments) are not considered suitable for additional floor space and height, despite currently being permissible.

Council officer response:

Flooding and stormwater management

It is acknowledged that flooding and stormwater management are significant issues and, although the envisaged development is not captured by the DPE’s ‘Adaptive Flood Risk Management Framework for Residential Development in the Penrith City Centre’, the DPE has agreed that the Planning Proposal can be reported to Council for its consideration. Should Council support the Planning Proposal, the DPE will seek advice from relevant agencies on flooding ahead of issuing any Gateway determination.

In terms of flooding considerations and permitted uses, the E2 Commercial Centre zone currently prohibits residential accommodation (including shop top housing) and permits serviced apartments (a type of tourist and visitor accommodation) consistent with the objectives of the zone and the vision for the Penrith City Centre.

It is understood the Panel’s concern relates, in part, to the conversion of serviced apartments to residential flat buildings or shop top housing under State Environmental Planning Policy (Housing) 2021 (Housing SEPP). However, serviced apartments cannot be converted to these uses under the Housing SEPP as they are prohibited in the E2 zone.

While the Panel has not identified other permitted uses (besides serviced apartments) that are not suitable for additional floor space and height due to flooding considerations, it is important to note that any development application for a permissible use, such as child care facilities, educational establishments or for commercial and hotel uses as envisaged on the site, will still be subject to a merit assessment. The DPE will also be seeking advice from relevant agencies on flooding ahead of issuing any Gateway determination.

It is further noted that currently housing for seniors or people with a disability and build-to-rent housing is permitted with consent in the E2 zone under the Housing SEPP. Build-to-rent housing is large scale (at least 50 dwellings) purpose-built rental housing that is held in single ownership (on the same lot) and professionally managed. The Housing SEPP prevails over LEP 2010.

Visual impacts and views towards the west

Visual impacts and views towards the mountains are acknowledged as significant issues and are proposed to be considered and managed through existing provisions in Clause 8.4 Design excellence of LEP 2010 and controls in DCP 2014 for the Penrith City Centre. A new site-specific clause for the land is also proposed which will include additional considerations to ensure any development positively contributes to the skyline and development on Block B respects views of the mountains when viewed along Henry Street.

Potential overshadowing

It is intended that the envisaged development will not overshadow City Park, ensuring the Park has greater sun access than that required by Clause 8.2 of LEP 2010. The requirement for no overshadowing is proposed to be included in the site-specific clause for the land.

Design excellence

Any development on the land that is greater than 24m or 6 storeys in height will be subject to Clause 8.4 of the LEP and an architectural design competition to ensure future development exhibits design excellence. In addition, it is proposed that the site-specific clause also require any development to appropriately interface and connect to adjacent public spaces to contribute to a positive pedestrian experience and provide a high-quality architectural response given the land’s proximity to the Penrith Railway Station, a key arrival point to the City Centre.

3. The considerations for the site warrant an approach which is site-specific and only allows the additional floor space ratio and height subject to achieving certain outcomes in terms of design excellence, sustainability, and no additional overshadowing to open space to the south-east. In turn, the LEP clause(s) should be worded so they are not applicable to the site to the west (across Riley Street) nor able to be varied under Clause 4.6. In turn, this also favours wording to allow some tower location/shape flexibility, as opposed to the very narrow and specific footprint in draft controls seen by the Panel.

Council officer response:

The Planning Proposal proposes a new site-specific clause to:

· Identify building envelopes for Block A and Block B on the HoB Map;

· Limit gross floor areas to up to 24,000 square metres for Block A and 14,000 square metres for Block B (based on the concept scheme);

· Set maximum building heights to 84m for Block A and 47m on Block B to be shown on the HoB Map;

· Ensure development on Block A and Block B will not result in the overshadowing of public open space; i.e. City Park; and

· Include additional considerations to those in Clause 8.4 (discussed in item 2 above) relating to visual impacts and views to the mountains, connections to adjacent public spaces and the land’s proximity to the Penrith Railway Station.

The site-specific clause is proposed to only allow the additional heights and gross floor areas subject to the consent authority being satisfied the development exhibits design excellence and environmental sustainability and does not overshadow City Park.

In addition, any future development on the land greater than 24m or 6 storeys in height will also be subject to Clause 8.4 of the LEP, which includes matters that must be considered in deciding whether the development exhibits design excellence. Those matters relate to:

· the standard of architectural design, materials and detailing;

· the form and external appearance and whether they improve the quality and amenity of the public domain;

· the impact on view corridors;

· land suitability; existing and proposed uses and the mix of uses;

· heritage issues and streetscape constraints;

· relationship with other buildings in terms of separation, setbacks, amenity and urban form;

· bulk, massing and modulation of buildings;

· street frontage heights;

· environmental impacts including sustainable design, overshadowing, wind and reflectivity;

· achievement of the principles of ecologically sustainable development;

· pedestrian, cycle, vehicular and service requirements; and

· impacts on and improvements to the public domain.

The site-specific clause will only apply to the building envelopes identified for Block A and Block B, and therefore will not apply to land west of Riley Street.

It is intended that the site-specific clause be exempt from Clause 4.6 so any development standards cannot be varied using Clause 4.6. This exemption will be addressed through an amendment to Clause 4.6.

This will not, however, remove the opportunity for some additional flexibility in maximum building heights (up to 10%) being considered under subclause 8.4 (5) provided the development is the result of an architectural design competition.

The Panel’s advice suggests the very narrow and specific footprint identified by the building envelopes for Block A and Block B do not allow some tower location/shape flexibility. However, the intention of the building envelopes is to provide greater certainty over future development outcomes, particularly in the absence of the Penrith City Centre Review.

Further, increasing maximum building heights and floor space provisions over the land bounded by Riley, Belmore, Station and Henry Streets would require more detailed DCP controls to be prepared, as suggested by the Panel in item 6. However, it is considered these detailed controls should be informed by the City Centre Review, once it is completed.

4. The site-specific controls should incorporate objectives which are formulated to create the foundation for the future design competition. These objectives should address the issues identified in these comments, particularly in respect of design excellence. Future buildings will be visually prominent from public open space in the immediate vicinity, from surrounding streets including potential axial vistas, and from elevated positions within the broader district.

Council officer response:

It is proposed that the new site-specific clause include objectives to ensure any proposed development:

· Integrates tower forms with podium levels and land uses on the land;

· Enhances the architectural quality and sustainable built form of Westfield Penrith;

· Provides a high-quality architectural response given the land’s proximity to Penrith Railway Station;

· Enhances the interface to and connections with adjacent public spaces;

· Positively contributes to the skyline and respects views of the mountains for development on Block B; and

· Does not overshadow City Park.

The objectives will be reflected in specific requirements, as previously discussed, which the consent authority must be satisfied with before granting consent.

Clause 8.4 Design excellence will also apply to development greater than 24m or 6 storeys in height.

5. The public domain upgrades should be for the entire block defined by Henry, Riley, Jane (Belmore) and Station Streets. The Panel was not persuaded by the wider public benefits of the schematic proposed works, which seem to be limited to drawing pedestrians into the shopping centre, rather than wider improvements. Similarly, there are a number of adverse existing public domain elements such as long ramps in the roadways, pedestrian bridges, loading areas and inactive frontages. Any mechanisms to improve these poor public domain interfaces should be fully explored prior to gazettal, through appropriate means.

Council officer response:

While the Planning Proposal includes an intention to provide public domain upgrades to key interfaces along Henry, Riley, Jane and Station Streets, the indicative map of proposed works, particularly in Riley Street, are not supported. Council officers have provided a set of design principles and standards to the proponent (Attachment 5) to guide any redesign or future configuration of Riley Street.

Discussions on future upgrades and the mechanism for delivering them are anticipated to take place at the design competition and development application stage given the above design principles and standards. Discussions will also need to have regard to the CIP, which identifies several public domain projects within the Penrith City Centre. As part of the Letter of Offer, the proponent intends to provide a monetary contribution towards these projects in accordance with the CIP.

The new site-specific clause also proposes to include an objective and requirement for any proposed development to provide an appropriate interface with and connections to adjacent public space and contribute to a positive pedestrian experience.

6. The Panel was not persuaded about the case to vary Development Control Plan floorplate controls at this stage, particularly for the proposed hotel. The height and floor space ratio should be calculated to facilitate buildings which would satisfy these controls. The Panel favoured some master planning controls for the site in the DCP, particularly to address street wall heights, public domain upgrades, tower setbacks, overshadowing, sustainability and the like.

Council officer response:

Additional master planning or DCP controls are not proposed for the land as these controls should be informed by the future Penrith City Centre Review.

Nevertheless, the more stringent controls proposed in the Planning Proposal, including define building envelopes, together with existing DCP controls, are intended to provide greater certainty over future development outcomes in the absence of the Penrith City Centre Review.

7. Subject to the receipt of an updated Traffic and Transport Report and due consideration of the above comments, the Planning Proposal be progressed through the next steps of the Gateway process.

Council officer response:

Noted.

A copy of the Local Planning Panel’s advice in included in Attachment 6.

Financial Implications

There are no financial implications for Council associated with this stage of the process.

Risk Implications

There are no risk implications for Council associated with this stage of the process.

Next Steps

Should the Planning Proposal be endorsed by Council to proceed through the DPE’s Gateway process for LEP amendments, the Planning Proposal will be forwarded to the Minister for Planning with a request to issue a Gateway Determination subject to the receipt of a satisfactory Letter of Offer. The submission will include a request to issue Council with Delegation to make the LEP amendment.

The Minister for Planning or delegate will then issue a Gateway Determination that will resolve whether the Planning Proposal may proceed through the Gateway process to public exhibition. The Gateway Determination may include conditions requiring that certain tasks be undertaken prior to commencement of public exhibition. This may include consulting with certain State agencies including relevant flooding and emergency management agencies and Transport for NSW. Consistent with Council’s approach, it may also include a condition requiring a Letter of Offer to be exhibited concurrently with the Planning Proposal.

Once the pre-exhibition conditions of the Gateway Determination are satisfied, the Planning Proposal and Letter of Offer will be placed on public exhibition in accordance with the requirements of the Gateway Determination and other relevant legislation.

Following completion of public exhibition, a report will be prepared on the results of the exhibition for Council’s consideration.

Conclusion

Council is in receipt of a Planning Proposal for 569-595 High Street, Penrith, currently occupied by Westfield Penrith. The Planning Proposal seeks to amend the building height and floor space controls in LEP 2010 to facilitate the development of the eastern portion of the land to enable a commercial and hotel development comprising two towers above a podium.

An assessment of the updated Planning Proposal has been completed, including the advice of the Local Planning Panel. The updated Planning Proposal is considered to be worthy of in-principle support to progress through the next steps of the Gateway process. The report recommends that Council endorse the updated Planning Proposal for submission to the DPE with a request for a Gateway Determination to enable agency consultation and public exhibition, subject to the receipt of a satisfactory Letter of Offer.

RECOMMENDATION

That:

1. The information contained in the report on Westfield Penrith Planning Proposal (569-595 High Street, Penrith) be received.

2. Council endorse the Planning Proposal (separately enclosed) to proceed through the Department of Planning and Environment’s Gateway process for Local Environmental Plan amendments.

3. Council officers forward the Planning Proposal to the Minister for Planning with a request to issue a Gateway Determination subject to receipt of a Letter of Offer to the satisfaction of Council officers. (The submission will include a request to issue Council with Delegation for plan making authority).

4. The General Manager be granted delegation to make any necessary changes to the Planning Proposal referred to in resolution 2:

a. prior to Council’s submission of the Planning Proposal to the Minister for Planning to request a Gateway Determination;

b. as a result of negotiated changes sought by the Department of Planning and Environment in the lead up to issuing a Gateway Determination; and

c. prior to public exhibition in response to the conditions of the Gateway Determination or negotiation with State agencies.

5. A further report be presented to Council on the Letter of Offer for endorsement.

6. Council publicly exhibits the Planning Proposal and Letter of Offer for a period specified in the Gateway Determination and in accordance with the community consultation requirements of the Environmental Planning and Assessment Act 1979 and the Environmental Planning and Assessment Regulation 2000.

7. A further report be presented to Council following the public exhibition.

ATTACHMENTS/APPENDICES

1. ⇩	Westfield Penrith Land and Location of Proposed Towers	1 Page	Attachments Included
2. ⇩	Current and Proposed Height of Buildings and Floor Space Controls	2 Pages	Attachments Included
3. ⇩	Perspectives of Proposed Towers	2 Pages	Attachments Included
4. ⇩	Contextual Height Analysis	1 Page	Attachments Included
5. ⇩	Design Principles and Standards for Riley Street, Penrith	1 Page	Attachments Included
6. ⇩	Local Planning Panel Advice	2 Pages	Attachments Included

Ordinary Meeting 29 May 2023

Draft Aerotropolis Development Contributions Plan

Compiled by: Natalie Stanowski, Principal Planner

Glen Weekley, Executive Planner

Natalie White, Planner

Authorised by: Natasha Williams, City Planning Manager

Kylie Powell, Director - City Futures

Outcome	We plan and shape our growing City
Strategy	Undertake strategic planning that will ensure balanced growth and liveability
Principal Activity	Ensure services, facilitates and infrastructure meet the needs of a growing population through the contributions framework

Previous Items: 3- Development Contributions Plan for the Aerotropolis- Councillor Briefing- 17 Aug 2020 7:00PM

3- Draft Aerotropolis Development Contributions Plan- Ordinary Meeting- 26 Oct 2020 7:00PM

2- Draft Aerotropolis Development Contributions Plan- Councillor Briefing- 15 May 2023 7:00PM

Executive Summary

The purpose of this report is to inform Councillors of proposed changes to the draft Aerotropolis Development Contributions Plan (draft Aerotropolis CP) resulting from the finalisation of the planning package for the Western Sydney Aerotropolis, and to seek endorsement to publicly exhibit the amended draft Aerotropolis CP.

Councillors were briefed on the draft Aerotropolis CP at the Briefing of 15 May 2023. The previously exhibited plan was reported to the Ordinary Meeting of Council on 26 October 2020 and was adopted for public exhibition.

The draft Aerotropolis CP was exhibited from November 2020 to January 2021, coinciding with the exhibition of the draft Planning Package for the Aerotropolis. A memorandum was provided to Councillors on 24 March 2021 summarising the submissions received from the exhibition and detailing the next steps to finalising the draft Aerotropolis CP. Councillors also received a memorandum dated 25 March 2022 advising of the status of the draft Aerotropolis CP and the finalisation of the Aerotropolis planning package.

As the planning package for the Aerotropolis has been finalised, Liverpool and Penrith Councils have been working together to review and update the draft Aerotropolis CP. As a result, amendments to the Draft Aerotropolis CP are proposed, including the removal of stormwater infrastructure, the inclusion of ‘Open space and Drainage’ lands identified in the SEPP, updated road network and transport infrastructure, updated road specifications and active transport infrastructure. The proposed amendments to the draft Aerotropolis CP also respond to amendments to State Environmental Planning Policy (SEPP) (Precincts – Western Parkland City) 2021 and provisions of the Western Sydney Aerotropolis Precinct Plan (the Precinct Plan) and Western Sydney Aerotropolis Development Control Plan 2022 (DCP) that came into force when the planning package for the Western Sydney Aerotropolis was finalised.

The memorandum provided to Councillors on 25 March 2022 advised the release of the finalised planning package. Other changes are required to respond to the designated regional stormwater authority and land value and construction cost escalation. In addition, changes are proposed to the form of the Plan.

Costs for both works and land values have escalated since the draft Plan was exhibited in 2020 and this escalation has been accounted for in the amended draft Aerotropolis CP.

Sydney Water is now the Regional Stormwater Authority for the Aerotropolis. Despite this announcement, there is limited information on the full extent of the stormwater strategy and Council’s role in the Aerotropolis. Councils’ responsibilities for the delivery of stormwater infrastructure have been based on the best available information.

It is proposed separate development contributions plans are created for each Council, rather than a single plan, to simplify processes, provide autonomy, reduce potential future delays and limit risk.

Due to the extent of amendments, it is proposed that the draft Aerotropolis CP be re-exhibited. A reduced contribution rate of 5.5% is proposed for the Penrith Local Government Area (LGA). Liverpool LGA has a proposed contribution rate of 4.5%, which is lower, due to having a greater net developable area (NDA). Overall, the rates are lower, as the cost of development within the Aerotropolis has increased greater than the cost of the infrastructure.

Background

Collaborative work was undertaken between Penrith and Liverpool Councils to prepare a draft contributions plan to ensure both Councils can collect development contributions to provide for much needed local infrastructure within the Aerotropolis.

The draft Aerotropolis CP was prepared using land use and built form assumptions based on the Western Sydney Aerotropolis Plan. As detailed information on development outcomes was not yet finalised for the Aerotropolis, a plan was prepared based on available information and industry accepted standards and benchmarks. A section 7.12 plan (percentage rate levy) was chosen as it allows Councils greater flexibility for infrastructure delivery, which is important until final development outcomes have been determined.

The total cost of local infrastructure to meet the needs of the initial precincts of the Aerotropolis for both Penrith and Liverpool Councils was estimated at $2.5bn. A percentage rate levy of 6.5% was proposed. This levy rate was comparable to other greenfield industrial precinct development contributions plans, when translated to a net developable rate.

At the Ordinary meeting of 26 October 2020, Council resolved to publicly exhibit the draft contributions plan. Following this, the Department of Planning & Environment (DPE) exhibited the draft Precinct Plans and the Draft Special Infrastructure Contribution Plan (SIC) for the Aerotropolis.

Public Exhibition & Submissions

The draft Aerotropolis CP was publicly exhibited from 2 November 2020 to 31 January 2021. The public exhibition was undertaken in accordance with the Environmental Planning & Assessment Act, 1979 (‘The Act’) requirements. Advertising requirements under The Act and its Regulations were amended by DPE to enable Councils to advertise new plans & amendments on Council’s website and via DPE’s planning portal, instead of having physical copies available or a notice published in the local newspaper, as would be previously required.

Consistent with these changes, the draft Aerotropolis CP was made available for the public to view on Council’s Your Say page, accessed via Council’s website. The exhibition was advertised on Council’s social media pages and on Council’s web pages. The draft plan was also available on the Planning Portal. In addition to the new requirements, the draft Aerotropolis CP was also advertised in the Western Weekender newspaper. As the exhibition was jointly undertaken in consultation with Liverpool Council, the plan was also available to the public through Liverpool Councils’ website.

A total of 33 submissions were received between both Councils. Submissions were received from a range of large and smaller property owners, development firms and industry bodies. Discussions with key industry groups UDIA and NSW Property Council have also taken place.

Submission Matters

Key matters raised in submissions received by both Councils at the time this report was prepared are summarised below:

Matter	Issue
Rate, Affordability & Competition	· Contributions are high & unprecedented · Contributions higher than other parts of the LGA · Development will be unfeasible with local and state contributions · Precincts will not be attractive to future investment and will not be competitive if too costly to build · Impacts on housing affordability
Equity	· Agribusiness precinct does not have the same development potential as other precincts so it shouldn’t have to pay the same rate. · Subsidising of other precincts · Inequity of requiring early movers to fund infrastructure that is decades away · Costs should be apportioned between both existing and new communities
Precinct Plans	· Correlation between open space in precinct plans and the contributions plan not clear · Precinct plans are not coherent and difficult for Councils to interpret for contributions planning · Overly aspirational land use planning has resulted in higher levies
Open Space	· More detailed mapping sought · Who is acquiring and paying for open space across precincts is unclear · Flood impacted open space should be acquired by State Government
Works Costs	· Benchmarking of costs should be undertaken by IPART
Productivity Commission	· Plan should not be made until after Productivity Commission report is finalised
State Government	· State Government should fund a greater amount of infrastructure · Infrastructure to be provided to support NSW Government schools · Concerns regarding duplication between SIC and Local Infrastructure
Works in Kind	· Seek assurances that WIK can occur
Plan Making	· Prefer Councils to prepare a 7.11 Plan · Interim solutions suggested (i.e. VPAs, 1-2% levy rate) · Cost report requirements should be more stringent to assist private certifiers

Where relevant and appropriate, submissions have been addressed in the revised draft Aerotropolis CP as outlined in the report.

Current Situation

Since the exhibition of the draft Aerotropolis CP in November 2020, two key changes occurred to the planning framework for the Western Sydney Aerotropolis that required significant amendments to the draft Aerotropolis CP Plan. These changes were:

• Finalisation of the planning package for the Western Sydney Aerotropolis, and

• Sydney Water being appointed as the Regional Stormwater Authority

Finalisation of the Planning Package for the Western Sydney Aerotropolis

The release of the final planning package for the Aerotropolis provided Councils with the certainty of the land use planning and infrastructure outcomes for the Aerotropolis, enabling Councils to review and update the draft Aerotropolis CP. Several new provisions needed to be considered and costed into the draft Aerotropolis CP. The final planning package included:

· Amendments to the SEPP (Precincts – Western Parkland City) 2021)

· Finalised Precinct Plan

· Finalised DCP

Amendments to State Environmental Planning Policy (SEPP) (Precincts – Western Parkland City) 2021

An amendment to SEPP (Precincts – Western Parkland City) 2021 introduced new land acquisition requirements for Council. From October 2022, Council became the acquisition authority for land identified in the SEPP as Open Space and Drainage lands.

Council has raised objections to being the nominated acquisition authority, primarily due to much of the land being located in between Sydney Water’s proposed stormwater assets. As the SEPP nominated Council as the acquisition authority, the Contributions Plan still needed to be amended to include land acquisition and embellishment costs for the land, as no other funding mechanism was available.

The land acquisition and embellishment costs are discussed in greater detail later in this briefing paper.

Western Sydney Aerotropolis Precinct Plan

The final Precinct Plan defined the extent of the road and active transport networks within the Aerotropolis and determined what parts of the network would need to be delivered by Council. Keys provisions include:

· Transport Network Plan and Street Hierarchy Map defined the extent of the sub-arterial road network and locations where bridges and culverts are anticipated and,

· The Blue Green Framework and Active Transport Network Plans defined the extent of land to deliver the off-road pedestrian footpaths and cycleways and where the active transport network crosses creek lines that require bridges.

The draft Aerotropolis CP utilises these provisions to determine the amount of land acquisition, construction, and embellishment costs.

Western Sydney Aerotropolis Development Control Plan 2022

The finalised DCP contained new development controls for the road network that required the exhibited costings to be reviewed. These controls include:

· Road Profiles that contained a wider road reserve to address tree canopy and water-sensitive urban design requirements (WSUD) which increases the cost of road construction and maintenance due to a greater level of landscaping within the road reserve than traditional road profiles. Additional contingencies are also required for additional maintenance requirements for areas with highly saline soils due potential degradation of road infrastructure from the irrigation of street trees and other WSUD infrastructure,

· Minimum Street tree requirements and engineering designs for street tree pits which are predicted to be expensive to construct and maintain.

Sydney Water – Regional Stormwater Authority

On 25 March 2022, Sydney Water was appointed as the Regional Stormwater Authority for the Western Sydney Aerotropolis, including the Mamre Road Precinct. As the Regional Stormwater Authority, Sydney Water will be responsible for delivering, managing and maintaining the regional stormwater network, along with the drinking water, wastewater and recycled networks.

The appointment of Sydney Water as the regional stormwater authority directly impacts the draft Aerotropolis CP, as the exhibited plan included costs of $1.07bn for the provision of stormwater infrastructure to be delivered, managed, and maintained by Councils.

To date, a stormwater strategy for the Aerotropolis has not been released. A strategy would provide certainty to Council on the exact function of the network and how it would be delivered. The release of this strategy is not likely to occur in the short term. In order to progress in finalising the draft Aerotropolis CP and facilitate development in the Aerotropolis, Councils have used the information available to make assumptions on stormwater delivery and costs that are required to be in the plan. These assumptions have been assessed by Council’s consultants.

Sydney Water and DPE Water have developed a governance structure for the implementation of the regional stormwater scheme. This has been reviewed by Council officers and our consultants to understand Council’s role in the scheme and if any stormwater related infrastructure should be included in the draft Aerotropolis CP. Under the governance structure, Council would be responsible for delivering or facilitating road drainage infrastructure (Street pits and pipes). These costs have been accommodated as part of the overall road construction costs.

Land identified as ‘Open Space and Drainage’ under SEPP (Precincts – Western Parkland City) 2021 does not form a functioning component of the regional stormwater scheme, however, is directly adjacent to stormwater assets and may include riparian corridors and flood impacted land. To facilitate precinct plan outcomes for an active transport network, costs for the embellishment of this land have been accommodated in the draft Aerotropolis CP. As the stormwater strategy is yet to be released, there is a possibility that drainage works may need to occur within this land. Should Sydney Water need to link stormwater basins via pipes or drainage channels within the ‘Open Space and Drainage land, Sydney Water would need to seek easements across Council’s land and all construction costs would need to be accommodated by Sydney Water.

All other elements of the regional stormwater scheme are intended to be delivered by Sydney Water or developers. No costs or contingencies, other than those discussed above have been included in the plan for the delivery of this stormwater infrastructure and this is consistent with the approach taken in the Mamre Road Precinct Contributions Plan. Including costs or contingencies for the provision of stormwater infrastructure in the draft Aerotropolis CP would be ‘double dipping’ as it is understood that these costs will either be covered by a Sydney Water servicing charge or paid for by the developer.

Sydney Water is yet to provide a cost estimate for the implementation of the regional stormwater scheme in the Aerotropolis, nor an estimate of the rate that they will charge through a stormwater servicing charge to recoup costs. Any rate charged by Sydney Water will add to contribution charges for development in the Aerotropolis, with future development required to pay a Special Infrastructure Contribution (SIC), a Local Infrastructure Charge (LIC) via a Section 7.12 Plan, as well as a Sydney Water stormwater servicing charge.

Revised Plan Costs

The table below outlines the changes to the cost for infrastructure provision from the exhibited draft Aerotropolis CP to the amended draft plan.

Infrastructure	Exhibited 2020	Revised Cost	Changes
Road & Stormwater	$726.8m	$825.7m	§ Increased extent of roads § removal of stormwater infrastructure § Inclusion of bridges over creeks
Social, open space & recreation	$203.1m	$347.5	§ Alignment to SEPP zoned open space and drainage land (some previous stormwater land) § Active transport infrastructure through open space
Land	$1.6bn	$1.6bn	§ Increase in land values § Increase to road widths § Removal of stormwater land § Inclusion of SEPP zoned open space and drainage land
Total	$2.5bn	$2.8bn

Detailed discussion on the changes to the costs of the plan are provided below:

Roads Construction Cost

The plan includes costs to construct sub-arterial roads as well as bridges and culverts for the sub-arterial roads and collector roads.

Construction costs for collector roads, local roads and park edge streets have been excluded from the draft Aerotropolis CP as they will be delivered as part of future development and are not critical to facilitate development due to the subdivision pattern that is not fragmented and has existing access to the current road network in the Penrith LGA. However, a contingency has been included in the Plan for the construction of bridge crossings for collector roads and culverts, as may cross open space and drainage land to be acquired by Council or it is likely, due to the cost of constructing bridges, that developers would seek not to deliver these critical connections.

Rates for the road construction costs include provisions for updated road profiles contained in the Aerotropolis DCP, and includes:

· Planted Median with landscaping and Rain Garden,

· Footpath,

· Utilities (Watermains, recycled water, electricity, gas and telecommunication)

· Stormwater drainage (pipes and pits)

· Shared pedestrian cycle path,

· landscaped flex zone, and

· Street verge with Street trees (every 8-10meters), engineered street pit and street lighting

Open Space Infrastructure Cost

A total 87.9ha of land will be acquired for open space within the Northern Gateway and Agribusiness Precincts at a cost of $187.4m.

The overall cost of embellishing the open space has been calculated at $82.6m Embellishment costs allow for the provision of the Active Transport Network across Council owned land. Costing has also included the provision of the active transport network on Sydney Water Stormwater Basins as Council may be required to fund the active transport network on Sydney Water land as Sydney Water can only fund basic embellishment of their land through their service charges. Embellishment of this land will include:

· Pedestrian pathways

· Cycleways

· Bridges

· Lighting

· Picnic Facilities, tables, and chairs

· Rehabilitation of riparian corridors

The plan also contains the cost for the provision of approximately 2.3 hectares for a sports facility within the Badgerys Creek Precinct.

Social Infrastructure Contributions

The provision of Social Infrastructure has not changed from the exhibited plan. However, there have been some increases in land values and building costs.

Total Cost of the Plan

Since the exhibition of the plan in November 2020 the overall cost of the plan has increased by $300 million. This increase is due to increased land acquisition, embellishment, and construction costs.

Council sought an independent valuation of land values in the Aerotropolis due to the time that had elapsed since the exhibition of the draft Aerotropolis CP. This valuation was peer reviewed by Deloitte and the Office of Strategic Lands (OSL). Land values have been updated to reflect current values that are being applied to land acquisition with the Western Parkland City and the Western Sydney Aerotropolis. The change to land acquisitions rates is as follows:

	Exhibited 2020	Revised Draft 2023
Constrained land	$85m²	$90.00m²
Good Developable Land (mixed use)	$500m²	$550.00m²
Good Developable Land (Enterprise)	$400m²	$500.00m²
Good Developable land (Agribusiness)		$250.00m²

Reviewed construction costs

The construction costs have been independently reviewed by a Quantity Surveyor to determine whether the costs that were included in the exhibited plan were current. This review found that most of the costs were still applicable, however some community infrastructure costs had risen whilst some road construction costs had reduced. The plan has been amended to include the new rates.

Plan making – Creation of two separate Plans

A key change proposed to the draft Aerotropolis CP is splitting the plan, with each LGA having its own contributions plan for land within the Aerotropolis and contribution rates that reflect their individual costs for infrastructure provision. Whilst Councils have experienced significant benefits in preparing a joint plan and a collaborative approach to infrastructure delivery since the exhibition of the draft Aerotropolis CP in 2020, several changes and considerations have occurred for Councils to review and reflect on the need for a joint plan and benefits to splitting the land. The decision to split the plan is recommended as:

· Infrastructure requirements are now clearly defined. In the exhibited draft Aerotropolis CP, defined locations of most infrastructure were not determined or available. With the finalisation of the SEPP and Precinct Plan, the location of most infrastructure is now defined.

· Individual plans enable each Council to have full control of their own decision making (i.e. spending, council reporting).

· Simplifies administration of the plan for accounting purposes, reporting requirements and the processing of future amendments.

· Reduces potential funding deficit. Whilst a combined plan would result in a lower contribution rate applying to development in Penrith, income would not match the infrastructure costs in our area, due to the low net developable area and proportionately greater acquisition requirements. A joint plan would pool income, which may result in a reliance on funding from Liverpool LGA.

· The master planning process for amending the Aerotropolis Precinct Plan may necessitate amendments to the Plan. Due to the nature of the LGA boundaries within the Aerotropolis, it is unlikely that any master planning application would apply to land in both LGAs. A single contributions plan would require both Councils to report and exhibit any proposed amendments to the plan, no matter where the development was located, which would increase administration and risk that the Plans may not collect funds needed for development.

· Councils are likely to be required by DPE to convert the s7.12 plans into s7.11 plans in the future. Liverpool City Council will be required to seek approval from IPART for a future s7.11 plan, due to the facilitation of residential development. Penrith City Council will not have the same requirement and could facilitate the conversion of the plan in a quicker timeframe.

Amended Contribution Rates

The amended draft Aerotropolis Contributions plan will apply a contribution rate of 5.5% to development within the Penrith LGA and a rate of 4.5% for Liverpool LGA. The background document and plan are under final review. It is not expected that the rate will change significantly and only minor amendments will be made.

The contribution rate for Liverpool is lower, as the net developable area in the Liverpool LGA is greater than within Penrith.

Whilst the overall cost of infrastructure in plan has increased, the reduction in the rate is a result of increased developer costs within the Aerotropolis, due to a general increase in development costs and land values throughout New South Wales since the previous plan was exhibited.

We have compared our plan against similar contributions plans for predominately industrial/employment areas across Western Sydney. The rate per net developable hectare is comparable between these plans, as seen in the table below:

Contribution Plan	Contribution Rate per Ha
Aerotropolis	$747,707
Mamre Road	$599,000 (no stormwater infrastructure)
Box Hill Industrial the Hills	$540,000-$960,000*
Marsden Park Industrial Blacktown	$589,000-$821,000* (June 2016 CPI)
Eastern Creek Stage 3 Blacktown	$219,000-$875,000* (June 2015 CPI)

* ranges based on the provision of stormwater infrastructure

This table highlights that the proposed rate is comparable to similar industrial areas across Western Sydney.

Engagement with the Department of Planning and Environmental (DPE)

Penrith and Liverpool Councils have worked with both DPE in the preparation of the background report and contributions plan.

A draft copy of the background report and contribution plan will be provided to DPE for feedback and assessment. Feedback received from DPE will be incorporated into the final documents. It is hoped that this engagement will lead to a more accelerated process of the final approval of the plan by the Minister for Planning.

Plan approval and next steps

Re-exhibition

Due to the number of changes that have been made to the plan since the exhibition in November 2020, the plan needs to be re-exhibited. It is especially important to inform the development industry of the removal of stormwater costs from the draft Aerotropolis CP. Whilst the removal of stormwater costs has led to a reduction in the contributions rate, it is important that the development industry is aware that this reduction may be offset by a Sydney Water charge for the provision of stormwater infrastructure in the Aerotropolis.

It is proposed to jointly exhibit the draft Aerotropolis CP and background report with Liverpool City Council. It is intended that the plan be exhibited for a minimum of 28 days. The plan would be advertised through Council’s website, the Western Weekender newspaper, and Council’s social media pages.

Council officers will seek to work with key stakeholders such as landowners, DPE and other state agencies throughout the exhibition period to receive their feedback. Industry associations such as UDIA and Property Council will also be notified.

Ministerial Approval

Both councils will need to seek Ministerial approval to make a section 7.12 plan with a higher levy rate than 1%. To seek approval, a draft plan is required to be publicly exhibited by both Councils. It is therefore required that both Councils endorse the plan for exhibition. We have coordinated reporting to ensure that the draft plan will also be reported to Liverpool City Council during the same week as this report.

Financial Implications

While there are no direct financial implications at this point in time the report outlines that as Council is the nominated acquisition authority for land identified as Local Open Space and Drainage, the hardship provisions of the Land Acquisition (Just Terms Compensation) Act 1991 apply, and landowners are able to submit a hardship application to expedite the acquisition of their property.

Whilst it is not expected that Council will receive many hardship claims, hardship claims can pose a financial risk to Council as Council has yet to collect contributions for land acquisition.

Therefore, it is important that Council move towards finalising the draft Aerotropolis Contributions plan to provide a source for funding this acquisition. All hardship claims received prior to Council charging contributions in the Aerotropolis will need to be funded via other revenue sources in the interim period.

The amended plan will collect the full amount of contributions required for the local infrastructure needed. This increase is due to increased land acquisition, embellishment, and construction costs which were determined by Council’s independent valuation of land values in the Aerotropolis CP. This valuation was peer reviewed by Deloitte and the Office of Strategic Lands (OSL). Land values have been updated to reflect current values that are being applied to land acquisition with the Western Parkland City and the Western Sydney Aerotropolis.

Risk Implications

There are a number of identifiable risks associated with the contributions plan :

1. If the Aerotropolis plan is not made, this may lead to a shortfall in the funding of local infrastructure to support future development.

2. If the plan is not made, Council will not have available a suitable source to fund hardship claims.

3. It is important that a plan is made as soon as possible so that employment generating development can be approved and not delayed.

4. Due to the levy rate sought, the plan has to be approved by the Minister for Planning and Public Spaces. In the situation where the Minister does not make the plan, Council is unable to find other means of delivering infrastructure. Likewise, the Minister may seek to make the plan, where Council does not progress the plan making process.

5. The timing of the approval of the plan by the Minister is out of Councils control. Where there is a delay in the making of this plan, this could hold up the approval of development applications.

6. Further clarity with respect to stormwater infrastructure delivery will be provided by Sydney Water once a stormwater strategy is released. If Council become responsible for infrastructure that exceeds the assumption made under the draft plan, an amendment to the plan will be prepared to capture any further infrastructure requirements.

Conclusion

Both Penrith City Council and Liverpool City Council have sought to work collaboratively to ensure that we are proactive in understanding and planning for local infrastructure in the Aerotropolis. As land use zoning, precinct plans and development controls are determined and operational, development applications are now being lodged and hardship claims for land acquisition are occurring. It has now become vital that a development contributions plan comes into effect, to identify local infrastructure that will support this new city and enable developers to work with Council to deliver this infrastructure. Without a development contributions plan in place, Council cannot collect contributions to fund hardship claims and development may be delayed.

Councils have reviewed and amended the draft Aerotropolis CP in response to changes to the Aerotropolis Planning Package and the announcement of Sydney Water as the regional stormwater authority.

Whilst there remains a risk regarding draft Aerotropolis CP accurately considering and applying costs for Councils’ role in stormwater management, this has been minimised as far as possible based on the information available and reviewed by Council’s consultants.

In order to make a number of amendments to the plan since the exhibition in November 2020, Council is required to re-exhibit the plan. This report seeks Council’s endorsement to undertake the re-exhibition jointly with Liverpool Council. A further report will be presented to Council after the exhibition to assess any submissions received.

RECOMMENDATION

That:

1. The information contained in the report on Draft Aerotropolis Development Contributions Plan be received.

2. Council endorse the draft Section 7.12 Aerotropolis Development Contributions Plan with a levy rate of 5.5% and the associated background report for re-exhibition.

3. The plan is re-exhibited in accordance with the Environmental Planning & Assessment Act, 1979 and associated Regulations and Council’s Community Participation Plan for a minimum of 28 days.

4. A copy of the draft plan and background report be forwarded to the Minister for Planning and Public Places to commence the process of seeking Ministerial approval to make the plan.

5. At the conclusion of the re-exhibition period, a further report is provided to Council on the submissions received during the exhibition period.

ATTACHMENTS/APPENDICES

1. ⇩	Penrith Aerotropolis Development Contributions Plan	28 Pages	Attachments Included
2. ⇩	Western Sydney Aerotropolis Precincts Local Infrastructure Contributions Plans Background Report	56 Pages	Attachments Included

Ordinary Meeting 29 May 2023

Voluntary Planning Agreement for Microsoft Datacenter

Compiled by: Natalie White, Planner

Natalie Stanowski, Principal Planner

Authorised by: Natasha Williams, City Planning Manager

Kylie Powell, Director - City Futures

Outcome	We plan and shape our growing City
Strategy	Undertake strategic planning that will ensure balanced growth and liveability
Principal Activity	Ensure services, facilities and infrastructure meet the needs of a growing population through the contributions framework

Previous Items: Draft Voluntary Planning Agreement - Microsoft Datacenter Kemps Creek- Ordinary Meeting - 27 Feb 2023

Procedural note: Section 375A of the Local Government Act 1993 requires that a division be called in relation to this matter.

Landowner & Proponent: Microsoft Datacenter (Australia) Pty Ltd

Executive Summary

The purpose of this report is to seek Council’s endorsement for execution of the Draft Voluntary Planning Agreement for Microsoft Datacenter (VPA) sought by Microsoft Datacenter (Australia) Pty Ltd for the land at 769 Mamre Road, Kemps Creek, known as Lot 2 DP 1271142. The purpose of the VPA is to support the delivery of infrastructure within the Mamre Road Precinct. The parties within the VPA are Microsoft Datacenter (Australia) Pty Ltd and Penrith City Council.

The draft VPA proposes a monetary contribution of $8,423,505.96 towards open space, including land acquisition and landscaping embellishment to be spent within the Mamre Road Precinct. The value of the monetary contribution is equivalent to charges that would otherwise be applied if the Mamre Road Precinct Contributions Plan (CP) is applied to the land. The draft VPA contributions are over and above contributions that will be collected under the Mamre Road Precinct CP.

Council at its Ordinary Meeting of 27 February 2023 resolved to endorse the draft VPA for public notification. At this meeting, Council also resolved that if any submissions were received during the notification period, a further report be prepared for Council consideration.

Councillors were provided clarification on the proposed use of funds that may be received from the draft VPA through a memorandum dated 3 March 2023.

The draft VPA was placed on public notification, in accordance with the Environmental Planning and Assessment Regulation 2000 and Penrith Developer Infrastructure Agreements Policy (PDIAP). The notification period commenced on Thursday 9 March 2023 and concluded on Thursday 6 April 2023. One submission was received during the public notification period. The submission raised concerns with the proposed Datacenter, which is currently under assessment by the Department of Planning and Environment (DPE). The submission did not raise any issues specifically in response to the draft VPA.

This report recommends that Council endorse the draft VPA for Microsoft Datacenter and that the VPA be executed by the General Manager.

Background

The draft VPA has been prepared to collect development contributions for the future development of a data centre within the approved industrial estate “The Yards”. The draft VPA specifically relates to the land at 769 Mamre Road, Kemps Creek, known as Lot 2 DP 1271142.

The value of the monetary contribution is equivalent to charges that would otherwise be applied if the CP applied to the land.

Contributions payable under the draft VPA ($8,423,505.96) will be directed towards the acquisition of land for open space purposes and landscaping embellishment within the Mamre Precinct. Landscaping embellishment includes the provision of new trees, shrubs and ground covers to areas reserved for open space, picnic and rest areas, outdoor exercise equipment, and maintenance of this land. Maintenance is unable to be funded from development contributions but has been negotiated in this circumstance via the draft VPA.

Council has been identified as the acquisition authority for land zoned RE1 Public Open Space within the Mamre Precinct. For RE1 land outside the contributions plan but within the Mamre Precinct, VPAs are the only mechanism to secure this funding. Therefore, the draft VPA reflects the contribution that would have otherwise been applied to the developable land if the site had been included in the Mamre Precinct CP.

The draft VPA was reported to Council at the Ordinary Meeting of 27 February 2023. At that meeting, Council endorsed the draft VPA to be placed on public notification. Council resolved that following notification, if submissions are received and amendments to the draft VPA are proposed a further report to Council be prepared.

Current Situation

The draft VPA was placed on public notification, in accordance with the Environmental Planning and Assessment Regulation 2000 and PDIAP.

The notification period commenced on Thursday 9 March 2023 and concluded on Thursday 6 April 2023. During the public notification period, newspaper advertisements were placed in the Western Weekender on Thursday 9 March and Thursday 30 March, as well being placed on the public notices section of Council’s Website. The draft VPA and Explanatory Note were available for viewing on Council’s “Have your say page” and the Department of Planning and Environment’s Planning Portal website.

One submission was received during the public notification period. The concerns raised within the submission directly relate to the architectural plans, landscape plans, traffic flow and heat implications for the proposed data centre within State Significant Development application (SSD) 10101987 which is currently being assessed by DPE. The submission did not raise any concerns or feedback on the draft VPA.

The submission was forwarded to DPE for a targeted response to the submitter, in order to address concerns raised.

As such, no amendments to the draft VPA are proposed in response to the submission.

Financial Implications

The draft VPA proposes a monetary contribution that will fund land acquisition for open space, landscaping and open space embellishment in the Mamre Road Precinct. This monetary contribution is equivalent to the rate that would be charged under the Mamre Road Precinct CP, however, the proposed draft VPA contributions are over and above contributions that will be collected under the Mamre Road Precinct CP. The draft VPA provides a mechanism for the collection of development contributions and ensures infrastructure costs are paid for by the landowner and not Council.

Risk Implications

Any risks to Council have been limited through the negotiation of the letter of offer in accordance with Council’s PDIAP and the review of the draft VPA by Council’s Legal Services team.

The draft VPA includes security provisions including that the VPA is to be registered on title and that a Construction Certificate cannot be issued until the required monetary contributions have been paid.

Conclusion

The draft VPA proposes a monetary contribution to fund land acquisition, landscaping and open space embellishment in the Mamre Road Precinct. The value of the monetary contribution is equivalent to the rate that would be levied under the Mamre Precinct CP.

The draft VPA was notified in accordance with the Environmental Planning and Assessment Regulation 2000 and PDIAP.

Council received one submission during the public notification period of the draft VPA. The submission did not raise any issues or concerns relating to the contents or purpose of the draft VPA. Consequently, the draft VPA is not proposed to be amended. It is recommended that Council endorse the VPA for Microsoft Datacenter and that the VPA be executed by the General Manager.

RECOMMENDATION

That:

1. The information contained in the report on Voluntary Planning Agreement for Microsoft Datacenter be received

2. Council endorse the draft Voluntary Planning Agreement for Microsoft Datacenter.

3. Council authorise the General Manager to finalise and sign the Voluntary Planning Agreement and make any minor amendments where necessary to ensure its legality (e.g. typographic errors, dates, etc.).

4. The Common Seal of the Council of the City of Penrith be affixed to all documents as required, and the General Manager be authorised to sign all necessary legal documents in relation to this matter.

ATTACHMENTS/APPENDICES

1. ⇩

Voluntary Planning Agreement - Microsoft Datacenter

38 Pages

Attachments Included

Ordinary Meeting 29 May 2023

RFT 22/23-038 Kingsway North Amenity Redevelopment

Compiled by: Mitchell Sammut, Project Supervisor

Authorised by: Tracy Chalk, Acting Design and Projects Manager

Brian Steffen, Director - City Transformational Projects

Outcome	We manage and improve our built environment
Strategy	Plan for and maintain accessible, safe and high quality infrastructure
Principal Activity	Design and deliver Council’s major capital projects

Executive Summary

A tender for the demolition and construction of a new Kingsway North Amenities Building, St Marys was advertised on 16 March 2023 on Apet360 and e-tendering websites and closed on Wednesday 19 April 2023.

This report advises Council of the outcome of the tender process and recommends that the tender from 2020 Projects Pty Ltd, for the amount of $2,494,984.00 (excluding GST) be accepted for demolition and construction of a new Kingsway North Amenities Building, St Marys.

Background

The current sporting amenities building at Kingsway North Amenities Building, St Marys is beyond its useful lifecycle and is required to be replaced. Architectural drawings and specifications were produced for a new building to meet standards and codes and the current and future sporting users’ site requirements. Funding for the project is through Council’s Building Asset Renewal Program and the New South Wales Government’s Multi-Sport Community Facility Fund 21/22 and Essential Community Sports Assets Program Infrastructure Grants.

The tender called for the services of building contractors with experience in sporting amenities or other community facilities projects to demolish and construct a new amenities building.

The new amenities include construction and installation of:

• Storerooms

• Canteen

• Referee room

• Meeting, first aid, and administration room

• Male, female, and accessible toilet

• Changing Places room

• Raising the building to 500mm above the 1:100 year flood level

Tender Evaluation Panel

The Tender Evaluation Panel consisted of Recreation and Community Facilities Planner, Tim Whiticker, Architect Lead Rosemarie Canales, Architectural Draftsperson Nazrul Islam, Project Supervisor Greg Bretherton and was chaired by Project Lead Mitchell Sammut. Allyce Langton from Council’s Procurement team performed the role of tender administration and probity officer for this tender.

Tender Evaluation Criteria

Tenderers for the project were required to submit their tender using the Apet360 tendering software, which clearly defined the response required against each of the evaluation criteria.

The tenders received were assessed using the advertised evaluation criteria of:

• Company Profile

• Conformance, Acceptance and Declaration

• Business References

• Completion of Forms Tender Price submitted

• Compliance Statement

• Demonstrated Ability

• Works Method and Program

• Local Business Preference

• Financials

• Employment Policies

• Quality Assurance Systems

• Environmental Management Systems

• Work Health and Safety

Summary of Tenders Received

A total of nine (9) tenders were received by the closing date of the advertised tender and are listed below in price order (ex GST).

Company	Tendered Price	Company Address	Owners/Directors
Skyview Building Group Pty Ltd	$1,847,280.80	339 Saunders Road, Oakville NSW 2765	Ben Muslic
Versabuild Pty Ltd	$2,169,057.00	6/1822, The Horsley Drive, Horsley Park, NSW, 2175	Tony Trimboli & Gaetano Belardo
Cranebrook Constructions	$2,255,681.00	97 Taylor Road, Cranebrook, NSW, 2749	Phil McNamara
Buildpark Homes Pty Ltd	$2,410,520.00	Level 3, 565 High St, Penrith NSW 2750	Michael John Green
2020 Projects Pty Ltd	$2,494,984.00	L14 275 Alfred St N, NORTH SYDNEY NSW 2060	John Touma
Westbury Constructions Pty Ltd	$2,597,305.00	Unit 601, 5 Celebration Drive, Bella Vista NSW 2153	Darren Price Shakeel Karim
Secure Building Solutions	$2,609,750.00	9/11 Kilto Cres, Glendenning NSW 2761	Simon Francica Anthony Vella
Structen Pty Ltd	$2,756,110.00	247 Pebbly Hill Road, Cattai NSW 2756	David Dordevic
Canopy Constructions Pty Ltd	$3,764,814.30	Unit 17, 28 Barcoo Street, Roseville NSW 2069	Nicholas Simms

Short Listed Tenderers

Seven tenders were initially shortlisted based on available budget and then assessed against the evaluation criteria, these are listed below.

• Skyview Building Group

• Versabuild

• Cranebrook Constructions

• Buildpark Homes

• 2020 Projects

• Westbury Constructions

• Secure Building Solutions

The responses received from Structen and Canopy Constructions were beyond the available budget and were not consider further.

Evaluation of the Preferred Tender

All remaining seven tenders were assessed against the evaluation criteria.

Skyview Building Group and Versabuild did not score highly on the assessment criteria. The assessment criteria required a more detailed submission around Demonstrated Ability and Works Method and Program. Therefore, overall the Skyview Building Group and Versabuild tenders did not offer Council the best value despite the lower prices.

Independent reference checks, financial analysis, and performance analysis of Cranebrook Constructions and Buildpark Homes were conducted. It was determined from these checks that awarding a tender of this nature to either of these tenderers would present too much risk to Council. Therefore, these submissions could not be considered further on this occasion, despite the lower prices.

On assessment of the remaining tenders, the panel determined that 2020 Projects Pty Ltd’s submission provided the best overall value to Council, based on price and responses to the assessment criteria, clearly demonstrating their suitability to undertake the project.

2020 Projects submission provided several relevant examples of sporting amenities and community facilities building construction projects they had delivered including:

• Penrith City Council - Parker Street Amenities - demolition of existing building and

construction of new sporting amenities at Parker Street Reserve, total project value $2,539,896

• Parramatta City Council - Curtis Oval Pavilion - construction of a new sports pavilion in Curtis Oval, total project value $2,387,000

• Bayside Council - Scarborough Park & Tonbridge Reserve Sporting Amenities -construction of two amenities blocks in Tonbridge Reserve & Scarborough Park, total project value $3,410,000

• Parramatta City Council - Somerville Park Amenities - construction of a new amenities block with associated landscaping works in Somerville Park, total project value $1,485,000

• Bayside Council - Peter Depena Reserve Amenities - construction of an amenities building in Peter Depena Reserve, total project value $1,320,000

The recommended company, 2020 Projects was selected based on their:

1. Compliance with the tender evaluation criteria,

2. Demonstrated ability to meet Council’s requirements; and

3. Competitive price for the services offered.

The pricing from 2020 Projects Pty Ltd is in a range consistent with the market as evidenced by the similar pricing from both Buildpark Homes and Westbury Constructions Pty Ltd. The escalation of market prices is becoming evident in recent tenders and budgets will be reviewed by the Assets team for future projects.

Financial Implications

Included in the assessment of tenders was the commissioning of independent reference checks, financial analysis, and performance analysis on 2020 Projects. These checks were completed by Equifax Australasia Credit Ratings Pty Ltd. Financial Services have reviewed the financial information provided by the tenderer and have not identified any reason why the contract should not be awarded.

Included in the adopted Sports and Recreation Strategy is funding for the Kingsway North Amenity building. The recommended tender cost is within budget and includes an allocation under Council’s Building Asset Renewal Program and New South Wales Government’s 2021-2022 Multi-Sport Community Facility Fund and the Essential Community Sports Assets Program Infrastructure Grants.

The estimated maintenance and operational cost requirements for this project starts at $81,800 per annum. Council’s future asset maintenance budgets and asset renewal programs will be adjusted as per Council’s Budget Guidelines at completion of the project.

Tender Advisory Group Comments

The objective of the Tender Advisory Group (TAG) is to support the Council to achieve fair and equitable tender processes. The TAG, consisting of Brian Steffen - Director City Services, Adam Beggs – Acting Governance Manager and Neil Farquharson – Financial Services Manager were briefed by the Design and Projects team about the background and the process followed.

The TAG considered the recommendations in relation to the tender RFT 22/23-038 Kingsway North Amenity Redevelopment noting that, while the recommended tender was not the lowest price, the company has demonstrated their ability to meet Council’s requirements and their proposal was considered to be the most advantageous to Council for the scale of this project. The TAG reviewed the evaluation process outlined within the report and is satisfied that the selection criteria have been correctly applied in making the recommendations.

Risk Implications

The tender process outlined in this report includes controls regarding probity and ensuring value for Council, overseen by the Tender Advisory Group. The works will be undertaken in accordance with Work Health & Safety systems. This project will replace the existing amenities with public safety a key part of the construction methodology and project plan.

Conclusion

Seven tenders were assessed against the evaluation criteria. 2020 Projects provided the best price that also met the tender evaluation criteria to undertake the project. It is recommended that the proposal and lump sum price from 2020 Projects Pty Ltd, for the amount of $2,494,984.00 (excluding GST) be accepted for construction of Kingsway North Amenities Building, St Marys.

RECOMMENDATION

That:

1. The information contained in the report on RFT 22/23-038 Kingsway North Amenity Redevelopment be received

2. The tender from 2020 Projects Pty Ltd, for the amount of $2,494,984.00 (excluding GST) be accepted for Kingsway North Amenities Building, St Marys

3. That variations and amendments that do not materially alter the original scope of the contract be managed under the existing Penrith City Council financial delegations within the approved budgets

4. The General Manager be authorised to sign all necessary legal documents in relation to this matter.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Ordinary Meeting 29 May 2023

Organisational Financial Review - March 2023

Compiled by: Neil Farquharson, Financial Services Manager

Geraldine Brown, Strategic Finance Coordinator

Authorised by: Matthew Bullivant, Director - Corporate Services

Outcome	We have open and collaborative leadership
Strategy	Deliver an efficient, transparent and accountable service to the community
Principal Activity	Support financial sustainability through financial planning and budget management and provide accurate reporting to the community

Executive Summary

This report outlines Council’s progress towards implementing its four -year Delivery Program and focuses on the period of 1 January to 31 March 2023. The report should be read in conjunction with the attached Organisational Report – March 2023, which records significant Variations, Reserve movements, proposed Revotes, Contracts, Consultancies and Legal Expenses, Cash and Investments position, Income and Expenses by Program, and our progress in completing the organisation’s Operating and Capital Projects for 2022-23.

Council projected a balanced Budget in the adoption of the original 2022-23 Operational Plan. The September and December Quarterly reviews both presented surplus results of $593,170 and $780,103 respectively, which were transferred to Reserve resulting in a balanced budget position for 2022-23

The March quarter again presents a net positive result with mostly favourable variations including additional Regulatory Control Income ($175k), Companion Animal Commission ($85k), Fire Safety Income ($123k), contribution towards RID Squad Vehicles ($48k), savings on Commercial Waste costs ($120k), and Salary Savings ($680k). Negative variations include an overall net reduction in DA income ($170k), and additional Regulatory Collection Fees ($50K). The overall favourable budget variations have resulted in a surplus of $379,986 for the third quarter of 2022-23.

It is proposed as part of this Review to transfer the third quarter surplus of $379,986 to the Financial Management Reserve. This allocation will provide capacity to respond to any current and emerging priorities, including some of the priority resource requests, and results in a balanced budget position being predicted for 2022-23.

Details of all proposed major variations are provided in this report and are included in the Organisational Report – March 2023.

This report recommends that the Organisational Report – March 2023 be received and that the revised Budget estimates identified in the report and detailed in the Organisational Report – March 2023 be adopted.

Financial Position for the March 2023 Quarter

The financial position of Council for the quarter is expressed by providing information in compliance with Quarterly Budget Review Statement (QBRS) requirements on:

· Budget position (whether balanced/surplus or deficit)

· Significant Variations

· Identified Revotes

· Funding Summary

· Reserve Movements

· Capital and Operating Budget Projects

· Key Performance Indicators

· Income and Expenses

· Capital Budget

· Cash and investments

· Contracts and Other Expenses

· Consultancy and Legal expenses

Budget Position

	$’000s
Original Budget Position	0
September 2022 Quarter Variations Adopted by the Council	0
December 2022 Quarter Variations Adopted by the Council	0
March 2023 Quarter Variations Adopted by the Council	0
March 2023 Quarter Review Proposed Variations	380
Less: Transfer to Financial Management Reserve Revised Budget Position Surplus/(Deficit) projected to June 2023	(380) 0

The predicted cumulative result for the year as at March 2023 is a balanced Budget after the recommended variations for the quarter, and the proposed allocation to Financial Management Reserve. Commentary is provided below on some of the more significant issues in the Review (F= Favourable, U= Unfavourable, A= Allocation). Further details together with all proposed variations, variations with no impact on available funds, and reserve movements, are detailed in the attached Organisational Report – March 2023.

Net Salary Savings - $679,555 F (0.5%)

During the third quarter of 2022-23 salary savings have been realised primarily due to vacancies across a number of departments. The majority of these vacant positions are in the process of being filled. It is recommended that some of the identified organisational salary savings are retained in the individual departments to enable the engagement of consultants or temporary staff to ensure the delivery of key Operational Plan tasks and projects. The salary savings, net of those being retained by departments, total $679,555.

It is proposed as part of the March Quarterly Review that salary savings of $679,555 are retained within the employee costs area to assist with year-end employee cost balancing and to supplement the budget for terminations. Any remaining savings at year end could then be transferred to the Employee Leave Entitlement (ELE) Reserve.

Regulatory Control Fine Income - $175,000 F (97%)

Additional fine revenue is anticipated from greater workplace efficiencies and multi-skilling of all uniformed Rangers to detect and report compliance offences.

Plan First Levy– $120,000 U (17.39%)

This expenditure budget relates to a component of Development Approvals (DA) income received for developments with an estimated cost in excess of $50,000, which Council remits to the Department of Planning and Environment. The increase for the period correlates with the increase in those DAs lodged, but not yet determined.

Commercial Waste Expenditure– $120,000 F (10.17%)

Commercial waste services take up has been delayed, and as such the budget allocated to this service has been reduced. Expected Income for this service was reduced by $35k in the December Quarterly Review. Commercial waste service application to those commercial premises currently using domestic waste services is scheduled to commence in 2023-24.

Companion Animal Commission - $85,000 F (70%)

Additional income has been received from the Department of Planning & Environment arising from additional Companion Animal registrations after regulatory action undertaken by Rangers.

Regulatory Fine Collection Fee - $50,000 U (200%)

Additional collection fees have been incurred as a result of the increase in fines issued. This additional expenditure is offset by additional fine income.

RID Squad Motor Vehicle Operations - $41,860 F (100%)

A review of RID Squad motor vehicle operational contributions has resulted in a favourable return to Council’s General Revenue

Rates Income - $29,007 F (0.02%)

Overall, rates income is predicted to be slightly higher than predicted reflecting lower postponed rates with some postponed properties being developed, and also not as many eligible property owners taking up the postponements. Interest charges on overdue rates are anticipated to be above forecast due to the higher rates arrears.

Health Miscellaneous Income - $25,195 F (100%)

This budget includes statutory administration fees and charges payable to Council resulting from regulatory notices issued to businesses inspected as part of our Environmental Health Program areas (Food, Skin Penetration, Legionella Safety – Regulated Systems, Public Pools and Splashparks Programs). Within the current reporting period Council has returned to ‘normal operating conditions’ regulating these businesses.

Development Services Income

A number of budgets have been adjusted as follows:

· Compliance Certificates $60,000 U (75%) This downturn in inspection compliance income reflects a greater than expected shift to Private Certifiers for minor development with fewer Council Construction Certificate applications over the past year. This is combined with market impacts slowing down construction activity.

· Subdivision Certificates $30,000 U (42.85%) Residential release areas have not come on line as anticipated to produce an expected return to longer term average Torrens subdivision lot numbers.

· Neighbourhood Notification $40,000 F (20%) This increase reflects a higher-than-expected proportion of more major DAs.

Fire Safety Income

Budget variations proposed for this area:

· Fire Safety Statements $70,000 F (35%) This increase has resulted from increased occupied commercial and industrial buildings registered within the City and a more complete reminder program.

· Fire Safety Fine Income $52,520 F (255.82%) During the March Fire Safety Fine Income increased. This favourable variance was attributed to Council action taken on two large properties where fires breached Council’s fire safety compliance.

Transfer to Financial Management Reserve - $379,986 A

The development of the annual Budget each year requires a number of assumptions to be made in relation to both expenditure and income that are dependent on factors that are outside Council’s control. To safeguard against movements in these assumptions and forecasts it is proposed that $379,986 be transferred to Reserve. In addition, this allocation will provide capacity to respond to some current and emerging priorities, including some of the priority resource requests.

Other variations with no impact on Available Funds

A number of other variations, proposed as part of this review, do not have an impact on the available funds. Details of these adjustments are provided in the Organisational Report – March 2023.

In addition to the aforementioned variations, a total of $3.5m of planned Capital and Operating projects are proposed for revote this quarter. The total value of revotes for the year to date is $16.2m (including the proposed March Quarter revotes), compared to $32.1m revotes for the same period in 2021-22. A full list of Revotes is included in the Organisational Report – March 2023.

New Grants

In accordance with Councils Grant Applications Policy (adopted 30 May 2022) Attachment 2 is a list of grants that have been incorporated into the budget as part of the March 2023 Quarterly Review. As per the Policy these grants have a value below $250,000, do not require matching funding from Council and have no ongoing costs, and as such did not require a separate Council report.

Change to the Special Purpose Financial Statements – National Competition Policy

Council currently prepares four Special Purpose Financial Statements each financial year for its declared business activities. Following an assessment by Council staff and a review by ARIC and external auditors, it is recommended the Council “undeclare” one of these services as business activities, being the Penrith Whitewater Stadium for the purpose of Special Purpose Financial Reporting.

Financial Implications

Adopting the recommendations within this report will mean Council’s 2022-23 Budget continues to predict a balanced budget position for the year. Further details of the financial implications are contained within the attached Organisational Report – March 2023.

Risk Implications

Clause 203 of the Local Government Regulation requires that the Budget Review Statements and a revision of estimates must be reported to the Council within two months after the end of each quarter (except the June quarter). This quarterly review incorporates a comprehensive analysis of Budgets vs Actual across all areas of the organisation, and also proposes variations to annual budget to be approved by the Council.

The Long Term Financial Plan is updated on a quarterly basis in line with the reviews to ensure that forward projections reflect the most current assumptions. This review process, and long-term forecasting, minimise financial risk by supporting financial sustainability, transparency, and accountability. The March 2023 Quarterly Review updates Council’s forward budget projections with the best available information. However, further favourable and unfavourable variations may occur throughout the remainder of the financial year and such variations will be managed and reported to the Council for consideration.

Conclusion

This report, and the more detailed Organisational Report – March 2023 indicates that the performance of Council’s Capital and Operating Projects are on track to meet Council’s challenging annual program. Prudent financial management combined with the fine tuning and confirmation of budget assumptions have contributed to balanced budget being projected to June 2023.

Once adopted the Organisational Report – March 2023 will be placed on Council’s website.

RECOMMENDATION

That:

1. The information contained in the report on Organisational Financial Review - March 2023 be received

2. The Organisational and Financial Review as at 31 March 2023, including the revised estimates outlined in this report and detailed in the Organisational Report – March 2023, be adopted.

3. Council revote the works as detailed in the Recommended Revoted Works Lists, detailed in the Organisational Report – March 2023 for inclusion in the 2023-24 Operational Plan.

4. Council “undeclare” the business activity - Penrith Whitewater Stadium - for the purpose of Special Purpose Financial Reporting.

ATTACHMENTS/APPENDICES

1. ⇩	Organisational Report - March 2023	65 Pages	Attachments Included
2. ⇩	New Grants - March 2023 Quarter	1 Page	Attachments Included

Ordinary Meeting 29 May 2023

Proposed Land Swap - Lot 17 DP1285774 Part Lot 16 DP1037710 Part Lot 1 DP1197635 Quigg Place Orchard Hills

Compiled by: Tara Braithwaite, Development Manager

Authorised by: Matthew Bullivant, Director - Corporate Services

Karen Luka, Program Manager

Outcome	We have open and collaborative leadership
Strategy	Deliver an efficient, transparent and accountable service to the community
Principal Activity	Provide property services and manage community and commercial requests for the use of Council owned or controlled land

Procedural note: Section 375A of the Local Government Act 1993 requires that a division be called in relation to this matter.

Executive Summary

Pared Limited t/a Montgrove College are proposing to enter a land swap agreement with Council for the exchange of approximately 160sqm of land. The land swap will provide Council with land to be dedicated as public road to facilitate the development of a future cul-de-sac for Quigg Place, whilst creating a more regular parcel of land for the Montgrove College school site.

The land swap market value has been determined at $Nil value and will ultimately provide a positive land assembly outcome for the benefit of both parties to the transfer.

Background

Montgrove College is located at 140 Bringelly Rd Orchard Hills, with secondary access to the site available from Quigg Place.

Pared obtained a development approval for the expansion of Montgrove College in August 2017 (DA16/1006). Part of the conditions of the approval included the construction of a new cul-de-sac head at the end of Quigg Place which provides an access to the Orchard Hills campus. To facilitate the development of the cul-de-sac, a land swap with Council was proposed.

The Unsolicited Request to Purchase Council Land Policy did not apply in this instance as dealings with closed roads are generally outside the scope of the policy.

The land swap involved the closing and transfer of an irregular section of Quigg Place (public road) to Pared and in return Pared was to transfer the equivalent land area(160m2) to Council to facilitate the construction of the cul-de-sac head and its dedication as public road. The arrangement would result in no net loss of land to either Council or the College (see draft Land Swap Plan in Attachment 1).

Council endorsed the road closure of Part Quigg Place and land swap at its Ordinary Meeting on 25 July 2016 and the road closure was Gazetted on 06 December 2019 creating Lot 17 DP1258774; however, the land swap did not proceed at the time.

Current Situation

The land created by the closed road, now identified as Lot 17 DP1258774 is a long irregular shaped operational allotment that has a land area of approximately 160sqm. The lot adjoins Pared owned land along the western, eastern and southern boundaries. The lot is undevelopable on its own and due to the location, size and configuration, the land provides no benefit to Council or the public.

Pared did not proceed with the DA for the expansion of Montgrove College and the subject land created by the road closure remains in Council’s ownership however fenced within the College site and utilised privately as the entry to their car park (See attachment 2 for an Aerial Image). The proposed land swap will facilitate boundary changes for the college site and require rectification of fencing locations by Pared in line with the new property boundaries.

During recent correspondence with Council, Pared indicated their interest in progressing the land swap arrangement with Council in order to secure the land assembly required to facilitate future development opportunities for the Montgrove College campus and registering the public road reserve required to facilitate the future cul-de-sac for Quigg Place. It is recognised that the current land ownership pattern is not ideal for either Council nor the adjoining land owner and the proposed land swap will facilitate the provision of suitable road reserve for construction of a future cul-de-sac at the end of Quigg Place.

Although there is currently no funding source identified and no immediate plans to develop the cul-de-sac, internal consultation with Council’s Engineers has confirmed that proceeding with the land swap will deliver the necessary land area required to enable construction of a future cul-de-sac head at the end of Quigg Place in due course (whether this be by Council or other developer). Having a dead-end road with no turnaround facility is not ideal, particularly for Council’s waste service vehicles and having provision for a cul-de-sac head will provide a safer and more useable road design outcome in the longer term.

The land subject to the proposed land swap is identified in the below table.

Site	Lot/DP	Landowner	Area subject to transfer (m2)	Total Combined Area (m2)
Site 1	17/1258774	Penrith City Council	160.5	160.5
Site 2a	Part 16/1037710	Pared Limited	121.8	160.9
Site 2b	Part 1/1197635	Pared Limited	39.1	160.9

Table 1: Land subject to the proposed land swap

Both site 1 and site 2 are zoned “RU4 Primary Production” pursuant to Penrith Local Environmental Plan 2010.

Financial Considerations

A market valuation was undertaken by Lunney Watt & Associates Pty Limited in February 2023. The valuer determined that the net difference in Market Value between the two sites as set out below, is $Nil.

Site	Lot/DP	Area (m2)	Market Value (Ex GST)
Site 1	17/1258774	160.5	$44,000*
Site 2	Part 16/1037710 Part 1/1197635	121.8 39.1 160.9	$44,000*
Net Difference			Nil

Table 2: Summary of Market Value

*Calculated using the adopted rate of $275 per sqm and rounded accordingly.

Whilst Council will have the benefit of a net increase in land area of 0.4m2, the valuer is of the opinion that the net difference in land area, is insignificant.

It is also noted that in order for the contracts to be legally enforceable, it is required that each contract contain an exchange of consideration. In this instance the transfer will be at a cost of $10.00 +GST for each party.

Further, Pared are responsible for all reasonable costs associated with the land swap including Council’s legal costs.

Financial Implications

There are no cash implications for Council. Any costs for valuations, surveys and registration will be paid for by Pared Limited. Following completion of the asset exchange the transfer of land assets will be recognised in our financial asset register.

Risk Implications

The risk implications for this matter are considered low.

Conclusion

The proposed land swap will facilitate road dedication to provide future opportunities for the construction of a cul-de-sac head at the end of Quigg Place Orchard Hills and secure the land assembly required to facilitate future development opportunities for the Montgrove College campus by Pared Ltd.

The land swap will consist of the transfer of approximately 160m2 of land between each party and will provide no net difference in land value.

It is recommended that Council support the land swap arrangement as outlined in this report.

RECOMMENDATION

That:

1. The information contained in the report on Proposed Land Swap - Lot 17 DP1285774 Part Lot 16 DP1037710 Part Lot 1 DP1197635 Quigg Place Orchard Hills be received.

2. Council transfers Lot 17 DP 1258774 to Pared Limited for $10+GST and in exchange Pared Limited transfers part Lot 16 DP 1037710 and part Lot 1 DP 1197635 to Council for $10+GST as detailed within this report.

3. Upon transfer to Council, part Lot 16 DP 1037710 and part Lot 1 DP 1197635 be dedicated as public road under the Roads Act 1993.

4. The Common Seal of the Council of the City of Penrith be affixed to all documents as required, and the General Manager (or his delegate) be authorised to sign all necessary legal documents in relation to this matter.

ATTACHMENTS/APPENDICES

1. ⇩	Land Swap Plan DRAFT	1 Page	Attachments Included
2. ⇩	Aerial Image	1 Page	Attachments Included

Ordinary Meeting 29 May 2023

Soper Place - Capital Expenditure Review

Compiled by: Amanda McMurtrie, Acting Property Development Manager

Authorised by: Matthew Bullivant, Director - Corporate Services

Neil Farquharson, Financial Services Manager

Outcome	We have open and collaborative leadership
Strategy	Plan for and manage City resources for current and future generations
Principal Activity	Reduce Council’s reliance on rateable income, by delivering property projects to achieve financial returns or significant value to Council and the community

Executive Summary

This report provides an update on the Soper Place project and the Capital Expenditure required to deliver the project.

The Soper Place Revitalisation project is located around 350 metres east of Penrith Train Station. Council proposed to redevelop the existing street level Soper Place car park into a five-storey multi-deck car park over a basement parking level, with a four-storey commercial building above and a range of community facilities.

While the project commenced with a view to satisfying the demand for parking in Penrith City Centre and delivering approximately 6300m² of commercial office space, the environment in which this project was conceived has changed. Inflation, rising interest rates and escalation in the cost of construction have led to a significant increase in the project cost.

The high cost of the project, coupled with the current economic climate, including escalating construction costs, and increasing interest rates, may impact Council’s ability to undertake other important initiatives.

Not proceeding with the project at this time will prevent placing undue burdens on the community and help to ensure that Council’s many other City-shaping projects and initiatives remain on track.

Background

Planning for the Soper Place project commenced prior to the Covid-19 pandemic, and while the project commenced with a view to satisfying the demand for parking in Penrith CBD, it evolved to leverage Council’s investment in infrastructure and to meet design excellence requirements. Therefore, the project included an integrated carpark with a commercial development consisting of 6,300m of ‘A’ grade office space.

Any development on a “key site” that has a capital investment value over $1million is required to proceed through a design excellence competition in accordance with clause 8.4 of Penrith LEP 2010.

The Office of Local Government’s Capital Expenditure Guidelines requires alternate delivery options to be considered. As a result of this requirement, there were 4 development options considered as part of the planning for this project, one of which included a reference design for a stand-alone carpark. Unfortunately, a standalone car park was not regarded as exhibiting design excellence by the government architect.

The other 3 options consisted of a variation of public car parking and commercial space. The option that was determined to exhibit design excellence, and therefore the option that was pursued, was an integrated commercial development and carpark.

The key objectives for the Soper Place development included:

· providing more jobs in the City Centre

· contribution towards meeting the demand for parking within the City Centre, by providing around 681 parking spaces, including 37 commercial spaces for tenants (equivalent User Class 3)

· creation of an activated precinct in the City Centre informed by community needs

· demonstration of design excellence and innovative sustainability solutions, including contributing to “Cooling the City”

· increased revenue for Council, through leasing commercial development to reduce Council’s reliance on rates revenue.

A Capital Expenditure Report was presented and subsequently endorsed by the Council at the Ordinary meeting held on 28 June 2021 which outlined a total capital cost of the project to be $102.2m.

Following the endorsement of the original Capital Expenditure Report, and in response to the assessment of the development application, the project team made design changes to further enhance the public benefit the project could deliver.

The revised funding model outlines a total capital cost of $128.9m for both the carpark and commercial components of the project, which is an increased capital cost of $26.7m.

The increase in estimated total capital cost is due to the design changes, escalation of the construction cost since the last Capital Expenditure Report and additional cost items for risk mitigation, for example, added costs of contamination investigation and remediation, and added construction contingencies.

Current situation

Development Consent for the project was granted by the Sydney West City Planning Panel on 22 March 2023. Throughout the planning for the project, and assessment of the development application, Council officers, advisors and Councillors have continued to rigorously assess and revise the budget required to deliver the project.

In November 2022 it was anticipated that a development consent would be forthcoming. As a result of there being more certainty around the development approval outcome, this enabled a more robust review of the costs of development to inform the revised Capital Expenditure Report.

Therefore, Councillors were presented with reports detailing the revised capital expenditure, the budget and funding model to a range of forums including:

- Report and presentation to the Major Projects Working Party on 7 November 2022;

- Report and presentation to the Councillor Briefing held on 13 March 2023;

- Report and presentation to the Major Projects Working Party on 13 April 2023;

- Report and presentation to the Councillor Briefing on 24 April 2023.

Underpinning consideration of the costs and budget for this project is the financially sound principles as detailed in Section 8B of the Local Government Act 1993 (the Act), which include:

a. Council spending should be responsible and sustainable, aligning general revenue and expenses.

b. Councils should invest in responsible and sustainable infrastructure for the benefit of the local community.

c. Council should have regard to intergenerational equity so that future generations are considered when making decisions.

In light of the obligations arising from the Act, a Long-Term Financial Plan has been undertaken to evaluate the funding and financial strategy for the project. To support the delivery of the project by Council, a loan totalling $92.2m (over 20yrs) is needed, with the balance of funds provided from the 2016-2017 Special Rate Variation ($12.8m), the Property Development Reserve ($15.3m) and other Reserves ($8.6m).

The forecast for the total interest payments on the $92.2m loan is $53.7m. The forecast for the total cost of the development, including the interest on the loans is $182.6m.

As indicated earlier in this report, the planning for this project commenced at a time pre COVID-19 when the economic climate, and working arrangements were stable. Since that time, our community, and Council, confront a different economic climate consisting of escalating construction costs, and increasing interest rates, with the most recent rise in rates being announced by the Reserve Bank earlier this month. (There have been eleven cash rate rises or 3.75% increase in the cash rate since May 2022).

In addition, Council has approximately $500m worth of capital projects that are either in the early inception phase, being planned, or in the process of being delivered. While Council has the capability to deliver the $500m in capital projects, the addition of the delivery of the Soper Place at this time gives rise to a range of risks in terms of capacity, delivery timeframes, and potential escalation.

The review of the capital expenditure required to deliver the Soper Place project is consistent with reviews being undertaken by other levels of government in relation to infrastructure projects and is consistent with Council’s obligation to apply a range of financially sound principles under the Local Government Act.

As part of consideration of the feasibility of the provision of a stand-alone carpark on an alternate site, the parking demands will need to be considered in light of the change in parking needs and behaviour caused by the Covid-19 pandemic.

Financial Implications

The report highlights important financial considerations regarding the Soper Place project. Among other factors, it acknowledges the significant increase in project costs due to factors such as inflation, rising interest rates, and escalating construction expenses. As a result, the total capital cost of the project has increased to $128.9 million, up by $26.7 million from the original estimate. To finance the project, a loan of $92.2 million over a 20-year period was proposed. However, it is crucial to note that the forecasted total interest payments on this loan, amount to $53.7 million, representing a substantial financial commitment.

Considering Council's overall financial position and its other capital projects, proceeding with the Soper Place project poses significant risks. The high cost of the project, coupled with the current economic climate, including escalating construction costs, and increasing interest rates, may strain Council's resources and impact its ability to undertake other important initiatives.

Council has already drawn down the first allocation of $20 million loan funding for the Soper Place Multi-deck Carpark project with a fixed rate for a 20-year period, as reported to the Council on 30 May 2022. Considering the revised capital cost and the recommendation to not proceed further with the project, it is important to explore all available options for effectively utilising the remaining unspent balance of this existing loan. Discussions will be initiated with the lender to reconsider the terms and potential alternative uses of the loan.

This dialogue aims to identify viable parking solutions that align with the current circumstances and address the community's needs appropriately. The outcome of the discussions with the lender will be reported in a future report to Council.

Risk Implications

Financial risk is considered High

Section 8B of the Local Government Act 1993 relates to the need for Council to demonstrate the principles of sound financial management. Progressing with the project requires external borrowing and risks breaching benchmarks under the proposed borrowing strategy. In addition, this option restricts the capacity to fund other projects via internal borrowings.

Construction risk is considered Moderate

There is the potential for project delays or increases in costs of the project. Examples could include weather-related delays, minor design changes, trade cost increases, labour supply shortages.

Conclusion

The impact of progressing with the Soper Place project has been considered against Council’s obligations under s.8B of the Local Government Act, including the impact on Council’s finances and the organisations capacity to undertake the extensive work program within current resources.

Further, in light of inflationary pressures, interest rate increases (cost of debt funding), and risk of cost escalation – all matters which are not uncommon to the construction industry, and all of which have been experienced post the planning phases for this project, together with the risk exposure of the project on Council and ratepayers, it is recommended that Council not proceed with the delivery of the integrated Commercial and Carpark development on Soper Place at this time.

Not proceeding with the project at this time will prevent placing undue burdens on the community and help to ensure that Council’s many other City-shaping projects and initiatives remain on track.

Next steps

It is proposed that Council officers explore other options to address the parking needs of the community. However, at this point in time, the delivery of a multi-decked car park together with the 6,300sqm of commercial office space at Soper Place exposes Council to a number of significant risks, particularly the financial effects on the Council and community.

Should Council resolve to not proceed with the project:

· A further report will be brought back to a Major Projects Working Party and Councillor Briefing that considers the delivery of a stand-alone carpark on an alternate site including potential feasibility, risks and opportunities and recent trends in parking utilisation post pandemic.

· Future reports to a Major Projects Working Party and Briefing will also address the use of the Soper Place site in the context of Council’s Property Strategy.

RECOMMENDATION

That:

1. Council not proceed with delivery of the Soper Place multi-level carpark, commercial space at this time.

2. A report be brought to a Major Projects Working Party and Councillor Briefing on the provision of a stand-alone deck carpark on an alternate site.

3. A further report be brought to a Major Projects Working Party and Councillor Briefing on the use of Soper Place in the context of Council’s Property Strategy.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

Ordinary Meeting 29 May 2023

The Local Government Remuneration Tribunal Determination for Mayor and Councillors for 2023-2024

Compiled by: Avanthi Fernando, Governance Officer

Authorised by: Stephen Britten, Chief Governance Officer

Adam Beggs, Governance Manager

Outcome	We have open and collaborative leadership
Strategy	Corporate Enablers
Principal Activity	Promote ethical behaviour through awareness and advice, and manage investigations of alleged corruption, maladministration or breaches of the Code of Conduct

Executive Summary

The NSW Local Government Remuneration Tribunal (the Tribunal) is responsible for making annual determinations of maximum and minimum fees payable to Mayors and Councillors in NSW. Section 239 of the Local Government Act 1993 (the Act) requires the Tribunal to determine the categories of Councils and Mayoral Offices once every three years. As per section 241 of the Act, the Tribunal must determine no later than 1 May each year, the maximum and minimum amount of fees to be paid to Mayors and Councillors of councils to take effect from 1 July the same year.

As part of its 2023 review, the Tribunal has undertaken an extensive examination of the categories, criteria and allocation of councils into each of the categories. The Tribunal has considered submissions by nine (9) councils for recategorisation, with five (5) of these submissions requesting the creation of new categories; Metropolitan Large Growth Centre, Metropolitan Large Growth Area, Metropolitan Major, Metropolitan Medium Growth and Regional Growth. Penrith City Council made its submission to the Tribunal to recategorise the Council as Metropolitan Large Growth Centre.

In determining fees, the Tribunal has considered key economic indicators, including the Consumer Price Index and Wage Price Index. The Tribunal is required to give effect to the same policies on increases in remuneration as those of the Industrial Relations Commission (s242A of the Act). The Industrial Relations Regulation provides that public sector wages cannot increase by more than 3% per annum.

Taking into consideration the Government’s policies on wages, and other factors, the Tribunal has determined that the minimum and maximum fees applicable to each category will be increased by three per cent (3%) for 2023-24, which is 1% higher than the previous year.

In this year’s determination, the Tribunal has acknowledged that there are significant issues underlying the concerns raised about mayors and councillors’ remuneration and that it is timely the Tribunal have a fresh look at the current Remuneration Framework. The Tribunal has recognised that lack of diversity in representation, changing nature of work required to be undertaken and changed community expectations cannot be easily resolved under the existing remuneration framework, which has been in force since 1994.

Background

The Tribunal is constituted in accordance with the Local Government Act. The Tribunal is responsible for categorising each Council for the purpose of determining the minimum and maximum fees payable to Mayors and Councillors in each category.

The Tribunal is required to make an annual determination by no later than 1 May each year which takes effect from 1 July in that same year. Section 239 of the Act also requires the Tribunal to determine categories of Councils and Mayoral offices at least once every 3 years.

In 2009 the Tribunal undertook a review of categories and allocation of Councils into each of the categories. While the Tribunal found that there was no strong case to significantly alter the existing categories of Mayoral offices and Councillor, the Tribunal decided to apply descriptive titles to each of the categories rather than continuing with the numbering of Categories. The descriptive title given to Penrith City Council (and Blacktown City Council) was “Metropolitan Major” which indicates “a Council that has a residential population greater than 250,000 or has another special feature of section 240 [of the Act] which the Tribunal considers distinguishes it from other Metropolitan Councils”.

In 2017 the Tribunal determined to re-title the three Metropolitan categories and as a result, Penrith City Council was given the title of ‘Metropolitan Large’. Metropolitan Large Councils ‘typically have a minimum population of 200,000’. Council has maintained this category since 2017.

In October 2022, the Tribunal wrote to the Council advising that the 2023-24 annual determination review process has commenced and invited councils to make submissions with respect to categorisation structure, fees, and other matters.

Local Government Remuneration Tribunal Determination for 2023 - 2024

On 27 April 2023, the Tribunal released its report and determination on fees to be paid to Mayors and Councillors for the period 1 July 2023 to 30 June 2024. A full copy of the Tribunal’s annual report is attached to this report.

Taking into consideration the Government’s policies on wages and various other matters (further outlined in the attached LGRT Annual Report 2023), the Tribunal has determined that the minimum and maximum fees applicable to each category will be increased by three per cent (3%) for 2023-24, which is one per cent (1%) higher than last year. It should also be noted that last year legislation was changed which made provisions for councillors in NSW to be entitled to superannuation with their councillor fees. Accordingly, the super guarantee percentage will be increased to 11% as of 1 July 2023 and this will be passed on to councillors.

As part of its 2023 review, the Tribunal has undertaken an extensive examination of the categories, criteria and allocation of councils into each of the categories taking into consideration statistical and demographical data, population data sourced from Australian Bureau of Statistics (ABS) 2021 Census (the latest available data). The Tribunal has considered submissions by nine (9) councils for recategorisation, with five (5) of these submissions (including Penrith City Council’s submission) requesting the creation of new categories, namely Metropolitan Large Growth Centre, Metropolitan Large Growth Area, Metropolitan Major, Metropolitan Medium Growth and Regional Growth

While determining the recategorisation of councils, the Tribunal has established two (2) new categories, being Metropolitan Major and Rural Large. Metropolitan Major councils will sit between the current categories of Metropolitan Large and Major CBD. Councils categorised under Metropolitan Major will have a minimum residential population of 400,000. Councils may also be categorised as Metropolitan Major if their residential population combined with their non-resident working population exceeds 400,000. To satisfy the criteria the non-resident working population must exceed 50,000. At this stage only two (2) councils in NSW meet this criteria.

Council’s Submission

Council officers prepared a submission to the Remuneration Tribunal earlier this year in relation to the setting of fees and the categorisation of Penrith City Council. Council’s submission reiterated Council’s long-standing position that a new category called Metropolitan Large – Growth Centre should be created, due to Council’s exponential population growth, involvement in significant city-shaping projects and other initiatives. The submission also suggested that Council’s claim to a new Metropolitan Large – Growth Centre category would be enhanced due to Western Sydney Airport (WSA), the Western Sydney Priority Growth Area (WSPGA), the Penrith Health and Education Precinct (PHEP), the Greater Sydney Commission (GSC) District planning process, National Growth Areas Alliance (NGAA), Sydney Science Park, Defence Industries Precinct and South Creek Corridor.

In its determination, the Tribunal acknowledged the submission made by the Council and claims for the creation of a new category; Metropolitan Large – Growth Centre. However, the Tribunal is of the view that rapid developments around the Western Sydney area do not warrant a creation of a new category and that councils experiencing growth will in the future have populations of residents and non-residents that may meet the thresholds for a recategorization.

In this year’s submission, Council supported the full allowable increase being passed on when determining the fees for Mayors and Councillors, recognising the increased complexity and time demands on the roles. Also, as in previous years, Council put forward that Mayors and Councillors should be remunerated as a percentage of a MP’s remuneration.

Mayor and Councillor Fees for 2023-2024

The Council’s policy on the Payment of Expenses and Provision of Facilities to the Mayor, Deputy Mayor and Councillors (Section 252 Policy) states that “Council will determine annually the fee to be paid to the Mayor in accordance with section 249 of the Local Government Act 1993. This fee, which is in addition to the Councillor’s fee, will be paid to the Mayor monthly in arrears”.

In respect of the Deputy Mayor, the Council’s policy states “Council will determine annually the fee paid to the Deputy Mayor in accordance with section 249 (5) of the Local Government Act 1993. This fee, which is to be deducted from the Mayor’s fee, is in addition to the Councillor’s fee”.

The Tribunal does not set a fee for a Deputy Mayor, despite our previous submissions to do so; however, it has been the Council’s practice to remunerate the Deputy Mayor by allocating 20% of the Mayor’s fee to the Deputy Mayor, in addition to the fee paid to the Deputy Mayor as a Councillor.

The Tribunal has determined the following range of fees for the Category of “Metropolitan Large” Councils (Bayside, Cumberland, Fairfield, Inner West, Liverpool, Northern Beaches, Penrith, Ryde, Sutherland and The Hills):

Councillor Annual Fee – Minimum $19,760 & Maximum $32,590

Mayor Additional Fee – Minimum $41,960* & Maximum $94,950*

*This fee must be paid in addition to the Mayor as a Councillor (s249(2)).

Financial Implications

The Draft 2023-24 Operational Plan currently on exhibition includes provision for Councillor remunerations fees forecast to increase at 3%.

The Tribunals determination of the percentage increase in this report (3%) sanctions the maximum allowable under s242A of the Act which provides that public sector wages cannot increase by more than 3% per annum. There are no financial implications with this report on the 2023-24 Operational Plan.

Risk Implications

There are no risk implications specifically associated with the action proposed within this report.

Conclusion

Considering the determination by the Tribunal and Council’s practice to remunerate Councillors at the maximum fee level, it is recommended that the fees payable to the Mayor and Councillors for 2023-24 be set at the maximum level determined by the Tribunal.

RECOMMENDATION

That:

1. The information contained in the report on The Local Government Remuneration Tribunal Determination for Mayor and Councillors for 2023-2024 be received

2. The fees payable to the Mayor and Councillors for 2023-24 be set at the maximum level permitted.

ATTACHMENTS/APPENDICES

1. ⇩

Local Government Remuneration Tribunal - 2023 Annual Determination

47 Pages

Attachments Included

Ordinary Meeting 29 May 2023

Property Acquisitions - Dunheved Road Upgrades

Compiled by: Tara Braithwaite, Development Manager

Authorised by: Matthew Bullivant, Director - Corporate Services

Brian Steffen, Director - City Transformational Projects

Outcome	We have open and collaborative leadership
Strategy	Deliver an efficient, transparent and accountable service to the community
Principal Activity	Provide property services and manage community and commercial requests for the use of Council owned or controlled land

Previous Items: Dunheved Road Upgrade - Werrington Downs, Urban Congestion Fund - Acceptance of Funding- Ordinary Meeting - 22 Jun 2020

RFT2021-12 Dunheved Road Design Tender- Ordinary Meeting- 26 Apr 2021

Dunheved Road Upgrade- Councillor Briefing - 27 Mar 2023

Dunheved Road Upgrade - Concept for Feedback- Councillor Briefing - 11 Oct 2021 the conclusion of the Policy Review Committee Meeting

Executive Summary

Penrith City Council is improving the capacity, efficiency, and connectivity of Dunheved Road with the delivery of a $128 million upgrade funded by the Australian Government’s Infrastructure Investment Program (formerly the Urban Congestion Fund).

The project will alleviate traffic congestion and improve safety along the corridor between Richmond Road and the Werrington Road/Christie Street intersection.

The existing road corridor in some areas is not wide enough to accommodate the proposed road widening and therefore to facilitate the road upgrades, additional land is required. This report seeks Council support to progress the land assembly required for the upgrades including the dedication as road of land owned by Penrith Council and the partial acquisition of a privately owned parcel and a parcel of public land. Council will exercise its powers of acquisition under the Roads Act 1993 to acquire these parcels and will act in accordance with the process of acquisition as required under the Land Acquisition (Just Terms Compensation) Act 1991.

Background

Dunheved Road is a busy route between Richmond Road at the western end and the Werrington Road/Christie Street roundabout at the eastern end. Stretching 4.2km, it includes many intersections which link into local suburbs, shops and services. Already an essential link for nearby residents and businesses, this road will also connect to Penrith’s growth centres and the broader transport network.

Council identified the need for improvements to Dunheved Road more than a decade ago due to the increasing traffic volumes and gridlock experienced by the community at various points along the road. In 2020/21, a $128 million commitment was from the Australian Government’s Urban Congestion Fund (now Infrastructure Investment Program) to upgrade Dunheved Road.

The upgrade will see the heavily congested 4-kilometre route between Richmond Road and the Werrington Road/Christie Street roundabout upgraded from a two-lane undivided road to a median separated, four-lane carriageway with a shared user path. There will be three new signalised intersections, three new roundabouts, and upgrades to existing intersections.

Council received reports on the project at the Ordinary Meetings of 22 June 2020 and 26 April 2021, with updates provided at the Councillor Briefings of 11 Oct 2021 and 27 Mar 2023. Advice was provided during these engagements regarding the scope, risks and budget for the project including the need to acquire land outside the current road reserve to facilitate the upgrades.

The community has played an essential role in the planning and design of the upgrade. Residents, businesses, nearby schools and road users were consulted during the public exhibition of the concept design (2021) and the Review of Environmental Factors (2022). Thousands of contributions were received via an online survey, emails, phone calls and in-person meetings. Feedback and ideas received throughout this consultation process informed the final design.

Current Situation

Through the completion of the detailed designs, thirteen (13) lots were identified as being affected by the proposed upgrades. The affected lots consist of nine (9) partial acquisitions and four (4) whole land acquisitions. Of the acquisition sites, one (1) is privately owned and another is owned by the Department of Planning and Environment (DPE), with the remaining eleven (11) affected properties owned by Penrith Council. The affected properties are identified in the table below.

Site #	Lot/DP	Partial/ Whole	Approximate Acquisition Area	Landowner	Classification	Method of Acquisition
1	Lot 20 DP1075359	Partial	1593m2	The Council of the City of Penrith	Community	Plan of Survey Road Dedication
2	Lot 38 DP607665 (West of Tasman St)	Partial	3480m2	The Council of the City of Penrith	Community	Plan of Survey Road Dedication
3	Lot 38 DP607665 (East of Tasman Street)	Partial	730.2m2	The Council of the City of Penrith	Community	Plan of Survey Road Dedication
4	Lot 1149 DP259016	Partial	2727m2	The Council of the City of Penrith	Community	Plan of Survey Road Dedication
5	Lot 3095 DP259920	Whole	4990m2	The Council of the City of Penrith	Community	s.10 Roads Act Road Dedication
6	Lot 5071 DP260454	Whole	4550m2	The Council of the City of Penrith	Community	s.10 Roads Act Road Dedication
7	Lot 3093 DP259920	Whole	2510m2	The Council of the City of Penrith	Community	s.10 Roads Act Road Dedication
8	Lot 7A Sec G DP2460	Partial	153.9m2	The Council of the City of Penrith	Community	Plan of Survey Road Dedication
9	Lot 7 Sec G DP2460	Partial	574.6m2	The Council of the City of Penrith	Community	Plan of Survey Road Dedication
10	Lot 32 DP576288	Whole	604m2	The Council of the City of Penrith	Community	s.10 Roads Act Road Dedication
11	Lot 2 DP1194378	Partial	506.9m2	Endeavour Holding Pty Ltd Director: Paul Francis Joseph	NA	Partial Land Acquisition
12	Lot 3 DP719910	Partial	2901m2	The Council of the City of Penrith	Operational	Plan of Survey Road Dedication
13	Lot 2 DP719910	Partial	472.1m2	Minister Administering the Environmental Planning and Assessment Act 1979 (DPE)	NA	Partial Land Acquisition

Table 1: Affected Properties

For Council to acquire privately and publicly owned land for road purposes, it must exercise its power under section 177 of the Roads Act 1993 (NSW) “Roads Act” and the acquisition must be undertaken in accordance with the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) “Just Terms Act”.

For Council to dedicate community classified public land as public road for the purpose of widening an existing public road, it must use its powers under section 47F(2)(a) of the Local Government Act 1993 (NSW) “LG Act”.

Following acquisition and prior to construction, Council will need to proceed to dedicate the affected land as public road in accordance with the Roads Act which permits the dedication of land as public road either by registration of a plan baring a statement of intention to dedicate the land as road (section 9) or by notice published in the Government Gazette (section 10).

Next Steps

Private Land/DPE Land

As a result of the findings of the 2021 NSW Parliamentary Inquiry into the acquisition of land required for major transport projects, Council officers have reviewed the acquisition processes to align with the NSW Property Acquisition Standards and relevant legislation and ensure it is operating in a fair and transparent manner when it undertakes public purpose acquisitions.

To commence the acquisition of the private land and DPE land, Council Officers propose to issue an Introductory Letter and hold an initiation meeting with the landowners to discuss the acquisition process. This is a new step that has been introduced to improve transparency in the process and engage with the landowners to encourage meaningful dialogue and provide access to support services and information.

Following the registration of the Proposed Acquisition Plans, Council will then issue a letter of commencement to formally commence the mandatory six (6) month negotiation period in accordance with the Just Terms Act.

As part of the negotiation period, valuation reports are carried out, an offer will be provided to the landowners and negotiation will continue in an attempt to reach an agreement with the landowners on the compensation payable. Should an agreement not be reached, Council may proceed to compulsory acquire the land.

Final agreements to compensation payable or authorisation to proceed to compulsory acquire land should an agreement not be reached, will be subject to a further resolution of the Council.

Council Owned Land

It is intended to dedicate the lots owned by Penrith Council that are entirely affected by the road upgrades as road by publication of a notice in the Government Gazette under section 10 of the Roads Act.

For the Council owned land partially affected by the road upgrades, the following process will be followed:

i. Preparation of a Plan of Survey.

ii. Obtain Subdivision Certificate and register the plan with Land Registry Services “LRS” bearing a statement of intention to dedicate the required land as road.

iii. On registration of this plan, the land will become dedicated as a public road.

Additional Interests

The Just Terms Act defines an “owner” as any person who has an “interest” in the land being acquired. That interest can include a legal or equitable estate or interest in the land or an easement, right, charge power or privilege over or in connection with the land.

The land affected by the road upgrades both private and public land, are affected by many encumbrances including easements, caveats and restrictions on use. Whilst the majority of the encumbrances are not affected by the land to be acquired for road purposes and those that are will be resolved through design, Council must obtain the consent of the interest owner to the acquisition and/or road dedication.

Should consent not be obtained, Council will work with the interest holders to resolve any objections. Should an agreement not be reached, Council may need to proceed to compulsorily acquire the interest. As above, authorisation to proceed to compulsory acquire an interest, will be subject to a further resolution of the Council.

Compensation

An “owner” of an interest in land which is divested, extinguished or diminished by an acquisition notice is entitled to be paid compensation in accordance with Part 3 of the Just Terms Act. Section 55 of the Just Terms Act details the relevant matters to be considered in determining the amount of compensation a person is entitled to, known as heads of compensation. This includes the market value of the land on the date of acquisition, any special value of the land to the person, any loss attributable to severance, any loss attributable to disturbance, disadvantage resulting from relocation and the increase or decrease in the value of any other land of adjoining or is severed from the acquired land.

As part of the negotiation period with the affected landowners or interest holders, Council will obtain independent valuations from a Certified Practicing Valuer to determine the compensation payable in accordance with the legislative requirements. There are not expected to be any additional interests entitled to claim compensation however the full extent of compensation entitlement will not be known until the notifications are issued and claims assessed.

Minor costs are expected for the dedication of Council owned land as road; these include surveyor costs, Council Fees and Charges for the Subdivision Certificate, LRS registration fees and Gazettal advertising fees.

All costs associated with the acquisitions and road dedications will be funded by the Australian Government’s Infrastructure Investment Program.

Financial Implications

Costs associated with the dedication of Council owned land as a public road are expected to be minor whereas costs associated with the acquisition of private land and additional interests are unknown at this stage and will be the subject to a further resolution of council. All costs associated with the acquisitions and road dedications will be funded by the Australian Government’s Infrastructure Investment Program.

Risk Implications

The proposed acquisitions and road dedications are being undertaken in accordance with the regulatory requirements under the Land Acquisitions (Just Terms Compensation) Act 1991 and using Council’s powers as the Roads Authority under the Roads Act 1993 and therefore the risk implications for this matter are deemed low.

Conclusion

Penrith is undergoing significant growth, with more people choosing to live, work and study in Penrith. This growth puts additional pressure on the local road network and increases the need for better transport infrastructure to accommodate current and future residents.

Dunheved Road is an essential link in the regional road network. The proposed upgrades will see the heavily congested 4-kilometre route between Richmond Road and the Werrington Road/Christie Street roundabout upgraded to a four-lane carriageway with a shared user path; with three new signalised intersections, three new roundabouts, and upgrades to existing intersections.

It is recommended that Council support the proposed private land acquisitions and public road dedications as outlined in this report to facilitate the widening and upgrading of the Dunheved Rd alignment.

RECOMMENDATION

That:

1. The information contained in the report on Property Acquisitions - Dunheved Road Upgrades be received

2. Commence the private property acquisitions of part Lot 1 DP1194378 and part Lot 2 DP719910 as detailed within this report to facilitate the Dunheved Road Upgrades.

3. Dedicate the Council land identified within this report as public road in accordance with section 47F (2)(a) of the Local Government Act and Section 9 and 10 of the Roads Act.

ATTACHMENTS/APPENDICES

1. ⇩

Plan of Acquisition DRAFT

10 Pages

Attachments Included

Ordinary Meeting 29 May 2023

Penrith Valley Regional Sports Centre (PVRSC) Repair Works

Compiled by: Neil Farquharson, Financial Services Manager

Authorised by: Matthew Bullivant, Director - Corporate Services

Outcome	We have open and collaborative leadership
Strategy	Deliver an efficient, transparent and accountable service to the community
Principal Activity	Support financial sustainability through financial planning and budget management and provide accurate reporting to the community

Executive Summary

This report advises the Council of a request from the Penrith Valley Regional Sports Centre (PVRSC) for Council to provide financial assistance by way of grant to facilitate the replacement of the wooden floors on basketball courts numbers 5 and 6 due to an infestation of termites that has weakened the sub structure of the floor space.

At 5 December 2022 Councillor Briefing on PVRSC Current Position and Next Steps, Council officers identified challenges around PVRSC’s ongoing asset renewal that would require addressing if PVRSC were unsuccessful with their three WestInvest applications. PVRSC WestInvest applications were all unsuccessful.

Council officers subsequently met with PVRSC’s Director/Chairman, General Manager and other Board members on several occasions to consider their financial assistance request. Council officers have reviewed PVRSC’s most recent financial statements, their financial projections, PVRSC’s insurance position and their initial scope and quotes for the works.

It is considered appropriate to consider the provision of financial assistance to PVRSC to enable court repair and replacement works, as the funds required are beyond the financial capacity of the PVRSC, and if left unresolved, will leave the community facility unable to viably operate.

Subject to the Council endorsement, in accordance with Section 356(2) of the Local Government Act 1993 Council officers will give 28 days public notice of Council’s proposal to pass a resolution to grant financial assistance to PVRSC. In the intervening period, Council officers will determine how the assistance can be provided and funded, review PVRSC’s proposed scope of works and their quotations and on completion of the public notice period, will bring a report back to an Ordinary Meeting of the Council to consider the provision of financial assistance.

Background

PVRSC is located on Council operational land at 30 Herbert Street, Cambridge Park.

The PVRSC Limited Board consists of volunteer Directors including three community representatives, three nominees from the Penrith & District Basketball Association and a Council nominee.

The land occupied by PVRSC is leased from Council on a 99-year lease, with the building being owned by PVRSC. The lease requires PVRSC to be responsible for all maintenance and renewal of assets, as well as operating costs.

The Council has received a number of reports in the recent past in respect of PVRSC operations including:

· Ordinary Meeting of 27 July 2020, the Council resolved to provide PVRSC with a letter of guarantee for a loan with Westpac Banking Corporation to enable the completion of building works. At this meeting, Council approved this request and provided a letter of guarantee for a new loan to a maximum amount of $542,000 over a maximum term of 10 years. The Deed of Guarantee was executed for $542,000 in October 2020 on advice from Westpac Banking Corporation and PVRSC that the guarantee needed to consolidate the existing PVRSC loan facility (2014).

· Ordinary Meeting of 28 September 2020, the Council resolved to provide a $1,091,686 (plus GST) loan to the Penrith Valley Regional Sports Centre (PVRSC) to enable compliance works to bring their site up to contemporary fire safety compliance standards. The details for this loan are as follows –

• Loan commenced in November 2020 (last payment due is 1 July 2034)

• The term of this loan is 13 years

• Interest rate is 2.99%

• Repayments are $7,500 per month until 30 April 2023, when the monthly loan repayments increase to $8,500

• Balloon payment at the end of the term ($255k).

· Ordinary Meeting of 26 July 2021, Council resolved to approve a pause in loan repayments following PVRSC’s August 2021 repayment. This was for a period that extended for three months past the date of the lifting of the then NSW Greater Sydney COVID-19 Public Health Order (PHO), that had resulted in the temporary closure of the Centre. Repayments recommenced in January 2022.

Further, in response to a letter from the Chair of PVRSC to Mayor Tricia Hitchen on 23 October 2022, Senior Council Officers met with the Board of PVRSC on 10 November 2022 to further discuss the matters raised in the letter including:

· current financial position

· current business and operational model

· unsustainable ongoing operations with current business model

· options to improve the organisation’s financial viability

· seeking endorsement to continue to support PVRSC while determining a sustainable operating model going forward, which would run alongside the proposed Multi sport arena to be developed by Council

· Asset management issues including significant damage to basketball court flooring.

Currently the PVRSC operating model provides for:

• Council leasing the land under a 99-year lease (with 35 years in from 1988) with PVRSC for the site, with a lease fee of $2,353.45 per annum since 2004. Note that this fee was waived from October 2021 to October 2022 due to COVID-19.

• The lease requires PVRSC to be responsible for all operating costs, maintenance costs, asset renewal, fire safety and water infrastructure on site.

• PVRSC receives all revenue generated from the site operations.

• Penrith Basketball Association also runs its operations from offices on the site and operates under a different model to other users of the centre.

The PVRSC Board has advised that the centre is fully utilised, with Penrith Basketball Association being the largest user of the centre. As the centre is at full capacity, potential users are turned away, therefore revenue potential is limited.

Whilst the PVRSC has been successful in gaining grants to upgrade sections of the buildings and courts to meet current building code standards and implement renewal and upgrade of existing assets, a recent Building Condition Asset report identifies a requirement for significant further investment in asset renewal.

PVRSC were unsuccessful with their 3 WestInvest grants:

· $20m to meet the requirements of the Building Condition Asset report and to meet current building codes and create a fully accessible centre

· $40m for 4-6 court extension and car parking

· $120m for new 24-court facility.

The Board advised that even if the WestInvest grants were successful, the current operating model would still not meet or achieve a positive financial result in the future and that it seeks Council’s assistance and support to develop options for sustainable future operations that will provide continuing benefits for the community in the future.

Council officers are continuing these discussions with PVRSC on the optimal operating model and propose to bring a report back to the Council with a way forward in around 12 months time, after the proposed court 5 and 6 works are completed so as a period of normal PVRSC operations can be properly and fairly assessed.

Current Situation

A letter from the Chair of PVRSC to Mayor Tricia Hitchen on 23 October 2022, and the subsequent Senior Council Officers meeting with the Board of PVRSC on 10 November 2022 raised the issue of damage to Basketball Courts number 5 and 6 and the requirement to carry out significant court repair and replacement works due to termite damage.

The PVRSC Board have advised that the Court works are becoming critical and that it is important for them to carefully manage timelines and relations to ensure the venue only loses the two courts numbers 5 and 6 for a minimum amount of time to manage the impact on customer bookings particularly those customers that require 6 courts.

The PVRSC Board have made a decision to close Court 5 and are monitoring Court 6 due to the assessed safety risks. PVRSC have advised Court hirers and the community.

PVRSC are pursuing several quotes for the required works (including structural and geotechnical engineering services, electrical, excavation, project management, timber replacement sub structure, new floor surface top and pest treatment costs). Indicative costings provided to date from the PVRSC General Manager include the following (NB: includes 20% contingency and some costs not yet quoted):

Item	Fee (incl. GST)	Comment
Cardno Fee - Engineering/Project Fee	$ 75,419.00	Included scope for DA work, will come down with like for like sub structure. Includes geotechnical tests.
Excavation to access subfloor so that a person can gain access for inspection purposes.		Pest control could find alternative, or work is needed to dig soil out for greater crawl/kneel access.
Like for Like Timber replacement sub structure with RED Alert Timbers.	$ 147,785.00	Quote mentions risk of variations based on quality of existing posts. - Includes suitable timbers according to span and existing Concrete Piers - Includes supply and Installation of Galvanized Ant Caps - Does not include replacement of damaged Concrete Piers or Installation of additional Piers (if required) - Assumes pier height is set to ensure Bearers are at or above minimum standard height from Ground level.
New Floor Surface Top	$ 519,878.70	* Note this is the highest price of all current quotes, there are still a few issues to rectify with line marking and floor plates but that would not be significant. Alternative quote was $467,500.00 for comparison. This includes Remove Floor, existing Seating & Substructure to ground
Pest Treatment		Quote not yet provided due to no ability to inspect and build was only just determined.
Electrical Estimate - power point relocation, make safe etc. Cabling in floor as required.	$ 5,000.00	Estimate - Not yet quoted.
Painting	$ 5,000.00	Estimate - wall behind grandstand removal.
Demolition Access (Side of Building)		Not yet determined - in addition it would be sensible rather than replacing concrete from side, we would seek to put in an access point (roller door). $5k for roller door, based on previous purchases. Concrete panel needs to be removed to access courts. Probably $10k and some metal beams will need to be put in.
Ring Relocation - extended hall means rings need to be recentered, allowing more room to meet BCA		Not yet determined due to solution. Think $20-30k.
Curtain recentered - extended hall means rings need to be recentered, allowing more room to meet BCA		Not yet determined due to solution - think $15k.
Seating Replacement		Not included - priority is floor to play on.
20% unknown cost Contingency	$ 150,616.54	This is based on the risk that we have no idea on the state of the structure underneath and what we can’t see.
TOTAL	$ 903,699.24

Council Officers have confirmed that the court repair works can be done under the State Environmental Planning Policy (Exempt & Complying Development) 2008 (“SEPP”) as exempt development, so long as a bearer and joist floor are constructed (NB: necessary safeguards and regular treatments for termites will be put in place).

Subject to public notice and Council endorsement, Council officers will work with PVRSC to establish formal arrangements to progress the Court repair and replacement works. Arrangements may include the establishment of a Project Control Group (PCG) to oversee the works, with Council being represented, and ensure the best value outcome is achieved including consideration of the long term asset lifecycle costs.

Financial Implications

At this stage there are no financial implications for Council associated with this report as the recommendation is to put the request from PVRSC on 28 days public notice prior to a Council decision on the request.

Should the Council endorse PVRSC’s request for financial assistance at a future Ordinary Meeting, then Council will need to identify an appropriate funding source, as Council’s current Operational Plan does not include a budget for PVRSC’s indicative $900k request. There would not be any ongoing financial costs to Council as only the land is owned by Council and PVRSC continues to be responsible for all maintenance and renewal of assets, as well as operating costs since PVRSC own the building.

Risk Implications

The PVRSC provides significant benefits to the Penrith and wider community and approving the request from PVRSC for financial assistance and developing a sustainable financial model would ensure these benefits are continued into the future. However, there is a risk that some members of the public may feel that it is not appropriate for Council to assist PVRSC.

Conclusion

The PVRSC request for Council to provide financial assistance to facilitate the replacement of the wooden floors on basketball courts number 5 and 6 appears appropriate given the service provided to the community, the safety risks, that the repair and replacement works required are beyond the financial capacity of the PVRSC, and if left unresolved, will leave the facility unable to operate viably and will require community events to be deferred.

If Councillors were of a view to support PVRSC’s request, then Council officers will give 28 days’ public notice of Council’s proposal to pass a resolution to grant financial assistance to PVRSC. Additionally, over this period, Council officers will determine how the assistance can be provided and funded, review PVRSC’s proposed scope of works and their quotations and on completion of the public notice period, will bring a report back to an Ordinary Meeting of the Council to consider the provision of financial assistance. Council officers will also continue discussions with the PVRSC Board on the development of a more optimal operating model for PVRSC for the longer term.

RECOMMENDATION

That:

1. The information contained in the report on Penrith Valley Regional Sports Centre (PVRSC) Repair Works be received.

2. In accordance with Section 356(2) of the Local Government Act 1993 Council officers give 28 days public notice of Council’s proposal to pass a resolution to grant financial assistance to PVRSC.

ATTACHMENTS/APPENDICES

There are no attachments for this report.

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