Agenda of Council Meeting - Wednesday, 27 January 2021

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.001/21 Audit and Risk Committee Meeting December 2020

Distribution: Public

Manager: Vince Lombardi, Chief Financial Officer

Author: Melika Sukunda, Finance Manager

Summary

In accordance with section 53 of the Local Government Act 2020 and good governance principles, councils must have an Audit and Risk Committee.

As resolved at the 26 February 2019 Ordinary Council Meeting, the minutes of an Audit and Risk Committee meeting are to be reported and presented to a subsequent Ordinary Council Meeting.

The Audit and Risk Committee met on 14 December 2020. The minutes for the meeting are shown in Attachment 1.

Recommendation

That Council notes the minutes of the Audit and Risk Committee meeting held on 14 December 2020.

Attachments

⇩1.	Nillumbik 14 December 2020 Audit and Risk Committee Minutes

Discussion

1. The minutes of the Audit and Risk Committee are submitted to Council after each meeting. To provide timely feedback, these are unconfirmed minutes.

2. Minutes of the Audit and Risk Committee held on the 14 December 2020 have not yet been adopted by the Committee, but will be presented at its next meeting.

3. The items considered by the Audit and Risk Committee were:

· Corporate Purchase Card and Councillor Expenses internal audit report, presented by Pitcher Partners

· Council’s Risk and Insurance report;

· The Digital Transformation Roadmap;

· COVID-19 update;

· The September Quarterly Financial Report; and

· The Councillor Expenses Quarterly Report.

4. The next Audit and Risk Committee meeting is scheduled to take place on Monday 15 February 2021.

Related Council decisions

5. As resolved at the 23 June 2020 Ordinary Council Meeting, the minutes of an Audit and Risk Committee meeting are to be reported and presented to a subsequent Council Meeting.

Options

6. The Audit and Risk Committee’s function is to assist Council in the effective conduct of its responsibilities for financial reporting, management of risk, maintaining a reliable system of internal controls and facilitating good and ethical governance.

7. The Audit and Risk Committee meets four times a year. The Internal Auditor, CEO and Chief Financial Officer (CFO) attend all Audit and Risk Committee meetings. Other management representatives attend as required to present reports. The external auditors attend in May and August each year to present the audit plan and independent audit report.

Council plans and policies

8. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Maintain good governance and effective leadership.

Sustainability implications

9. The Audit and Risk Committee plays a significant role in Council’s governance framework. It provides external expert advice to Council on key areas of risk. Risk in this case is interpreted broadly and covers risk to Council’s sustainability, reputation, fraud control and effectiveness, as well as financial risk.

Community engagement

10. Not applicable

Innovation and continuous improvement

11. Not applicable

Collaboration

12. The Audit and Risk Committee meeting on 14 December 2020 was attended by the Committee members, the internal auditor from Pitcher Partners, as well as the Chief Executive Officer and Chief Financial Officer. Mayor Cr Peter Perkins and Deputy Mayor Cr Frances Eyre are the councillor representatives.

Budget implications

13. The costs associated with this matter are contained within Council’s 2020-2021 Budget.

Relevant law

14. Local Government Act 2020, section 53 Council must establish an Audit and Risk Committee.

Regional, state and national plans and policies

15. Not applicable

Conflicts of interest

16. No officer involved in the preparation of this report has declared a conflict of interest.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.002/21 December Quarter Financial Report

Distribution: Public

Manager: Vince Lombardi, Chief Financial Officer

Author: Melika Sukunda, Finance Manager

Summary

This report outlines Council’s financial performance and financial position for the period ended 31 December 2020.

The Income Statement shows an overall favourable year to date (YTD) variance of $2.155 million representing 4.91 per cent of YTD Budget. This reflects the combined result of higher than budgeted operating income of $1.879 million and lower than budgeted operating expenses of $275,280.

Council’s overall financial position at the end of this quarter is sound. The impacts of the state of emergency due to the coronavirus pandemic continue to be monitored.

Recommendation

That Council receives and notes the Financial Report for the period ended 31 December 2020 (Attachment 1).

Attachments

⇩1.	Quaterly Finance Report - December 2020

Discussion

1. In June 2020, Council adopted the 2020-2021 Budget.

2. Budgeted surplus reflects the amount by which operating revenue exceeds operating expenses, in accordance with relevant accounting standards.

3. Operating expenditure excludes non-operating transactions such as capital works and investments, which are separately detailed in the report.

4. The report compares actual performance to budgeted targets at this stage of the financial year.

Income statement

5. Council closed the period ending 31 December 2020 with a favourable YTD variance of $2.155 million based on actual operating revenue, costs and commitments. This represents 4.91 per cent of the YTD Budget.

6. The overall variance is made up of the following:

· Income – $1.879 million (1.95 percent) favourable variance. This includes new/additional grant funding $3.873 million and contributions $797,760, offset by a reduction in user fees ($2.882 million) as a result of the current pandemic situation as detailed on pages 6 and 7 of Attachment 1.

· Expenditure – $275,280 (0.59 percent) favourable, mainly attributed to reduced external contracts expenditure ($1.171 million), largely resulting from lower operational expenditure associated with the closure of leisure facilities due to the pandemic. This is further offset by higher than anticipated costs relating to financial year projects ($597,326), materials and related costs ($323,593) and other expenditure ($115,018). Additional details on variances are detailed on page 8 of Attachment 1.

Balance sheet

7. The balance sheet reflects Council’s financial position at 31 December 2020 and is prepared in compliance with the Australian Accounting Standards.

8. Council’s balance sheet as detailed on page 4 of Attachment 1 continues to show a strong net position. This is represented by $1.052 billion of assets which is largely made up of Council’s Property, Plant and Equipment. Council’s total liabilities are $62.371 million, which results in net assets of $989.964 million.

Statement of cash flows

9. The statement of cash flows as detailed on page 5 of Attachment 1 captures Council’s actual cash transactions for the period.

10. Council is showing a cash position of $46.402 million after all cash transactions for the period to date.

11. The $46.402 million includes $42.546 million held in investments as detailed on page 10 of Attachment 1.

Capital works

12. The capital works report detailing YTD spend by asset class is detailed on page 9 of Attachment 1.

13. This shows an unfavourable variance of $3.447 million relative to YTD budget, largely driven by new (unbudgeted) externally funded projects and commitments raised for upcoming works.

Related Council decisions

14. Council adopted the 2020-2021 Budget at the Ordinary Council Meeting held on 23 June 2020.

Options

15. The detailed Financial Report for the period ended 31 December 2020 is provided in Attachment 1. This report is an analysis of Council’s financial performance and financial position as at 31 December 2020. The report also includes an analysis of budget variances.

Council plans and policies

16. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Ensure responsible and efficient management of Council's financial resources.

Sustainability implications

17. Council’s financial sustainability is informed by the indicators set by the Victorian Auditor General’s Office (VAGO). These indicators comprise of both short term and longer term measures. This is monitored through the annual external audit and presented to the Audit and Risk Committee.

18. The quarterly financial statements are used as an ongoing mechanism to monitor Council’s financial position during the year.

Community engagement

19. The budget was subject to public exhibition prior to its final adoption by Council.

Innovation and continuous improvement

20. Not applicable.

Collaboration

21. Not applicable.

Budget implications

22. This is a standard reporting item to Council, the associated costs for which are included in the current budget.

Relevant law

23. Local Government Act 2020, section 101 Financial Management Principles and the. Australian Account Standards.

Regional, state and national plans and policies

25. Not applicable.

Conflicts of interest

26. No officer involved in the preparation of this report has declared a conflict of interest.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.003/21 Mid-Year Financial Review 2020-2021

Distribution: Public

Manager: Vince Lombardi, Chief Financial Officer

Author: Melika Sukunda, Finance Manager

Summary

This report presents the outcomes of the Mid-Year Financial Review.

The revised forecast is for Council to achieve an operating surplus of $27.771 million for the financial year 2020-2021.

Recommendation

That Council:

1. Approves the changes detailed in the Mid-Year Financial Review (Attachment 1).

2. Notes the revised forecast of $27.771 million operating surplus for financial year 2020-2021.

Attachments

⇩1.	Mid-Year Financial Review 2020-2021

Discussion

1. The purpose of this report is to present the Mid-Year Financial Review.

2. Officers have completed a Mid-Year Financial Review for 2020-2021 as at December 2020 to identify major changes that have occurred since the budget adoption.

3. The review includes both operational and capital items.

4. The outcome of the review is a revised forecast operating surplus of $27.771 million.

Operating Budget

5. The Mid-Year Financial Review identified a number of favourable and unfavourable movements in operational income or expenditure as detailed in Attachment 1.

Capital works

6. Capital works is currently on budget with no major variances to report at the mid-year review.

Related Council decisions

7. Council adopted the 2020-2021 Budget at the Ordinary Council Meeting held on 23 June 2020.

Options

8. The Mid-Year Financial Review provides Council an update on the expected outcome for the financial year 2020-2021.

Council plans and policies

9. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Ensure responsible and efficient management of Council's financial resources..

Sustainability implications

10. Council’s financial sustainability is informed by the indicators set by the Victorian Auditor General’s Office (VAGO). These indicators comprise of both short term and longer term measures. This is monitored through the annual external audit and presented to the Audit and Risk Committee.

11. The Mid-Year Financial Review is a reporting mechanism to provide Council with the revised projected outcome for the financial year, after considering major changes that have occurred.

Community engagement

12. The budget was subject to public exhibition prior to its final adoption by Council.

13. The CEO confirms there is no requirement to prepare a revised budget document, as per section 97 subsection 3 of the Local Government Act 2020.

Innovation and continuous improvement

14. Not applicable

Collaboration

15. Mid-Year Financial Review is conducted in consultation with budget managers and EMT across the organisation.

Budget implications

16. This is a standard reporting item to Council, the associated costs for which are included in the current budget.

Relevant law

17. Local Government Act 2020, section 101 Financial Management Principles

18. Australian Accounting Standards

Regional, state and national plans and policies

19. Not applicable

Conflicts of interest

20. No officer involved in the preparation of this report has declared a conflict of interest.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.004/21 265 Chapel Lane Doreen

Distribution: Public

Manager: Carl Cowie, Chief Executive Officer

Author: Rosa Zouzoulas, Executive Manager Planning and Community Safety

Summary

Council applied to the Victorian Civil and Administrative Tribunal (VCAT) for an interim enforcement order with respect to the activities (clean fill dumping) occurring at 265 Chapel Lane, Doreen. The matter has progressed through the preliminary hearing and compulsory conference hearing as directed by VCAT.

All parties agreed to formulate a position that both ESG and the owners would like Council to consider to bring the land into compliance and avoid any further actions before VCAT. This report recommends that Council resolve to agree to the Terms of Settlement (Attachment 1) as drafted by Council’s legal representatives including the consent attached to the terms of which would contain the orders the parties will be asking VCAT to make, and request that VCAT make an enforcement order on the terms requested. Once the enforcement order is made by VCAT, the enforcement order would be binding on ESG and the landowners, the hearing would be vacated and the matter ended.

Recommendation

That Council:

1. Agrees to the Terms of Settlement (Attachment 1);

2. Authorises the Chief Executive Officer to sign the Terms of Settlement , including the minutes of consent attached to the terms, which contain the wording of the orders the parties will be asking the Victorian Civil and Administrative Tribunal to make;

3. Request the Victorian Civil and Administrative Tribunal make an enforcement order by consent; and

4. Resolves that the Terms of Settlement remain confidential on the grounds specified in the definitiation of confidential information in section 3(1)(d) and (e) of the Local Government Act 2020.

Attachments

1.	Terms of Settlement - Confidential

Discussion

1. In February 2019, Earth Solutions Group (ESG) entered a contract with the owners of 265 Chapel Lane, Doreen to deposit soil excavated from other sites on the Land.

2. ESG then asked the Council if a planning permit would be required for the activity.

3. Between April and July 2019, ESG and Council had meetings and exchanged information. Ultimately, the Council advised ESG by email on 17 July 2019 that a planning permit was not required.

4. In July 2020, ESG commenced filling the Land. Significant community concern was raised upon the commencement of the activities on the land. Council’s investigations identified a breach of the planning scheme and made an application to VCAT for an enforcement order.

5. Council’s enforcement order application originally also sought an interim enforcement order to halt the works pending final hearing. However, in October 2020 ESG and the Landowners gave undertakings agreeing to halt the activity pending the outcome of the final hearing. Works are still on hold.

6. A compulsory conference was held on 9 November 2020 between the parties – ESG, the Landowners, Melbourne Water and the Council.

7. The outcome of the compulsory conference was that the parties agreed to further explore settlement with the mooted terms as follows:

· VCAT making an enforcement order by consent which specifies that the filling activity was in breach of the planning scheme and requires ESG and the Landowners to remediate the land to the satisfaction of the Council and Melbourne Water.

· Furthermore, the terms would provide mutual releases from any liability arising out of the matter, including any action by ESG and the Landowners against the Council in relation to its prior representations that a permit was not required and

· That these matters to be formalised in terms of settlement for consideration by Council at a future Council meeting.

8. Settling this matter according to the proposed terms of settlement is preferable to proceeding to a contested hearing as:

· it achieves a remedy equal to a best case outcome for Council at a hearing;

· it reduces the risk of the Council being unsuccessful at the hearing; and

· it removes Council’s costs of running a hearing.

Related Council decisions

9. At the special meeting of the Future Nillumbik Committee on 18 August 2020, the committee resolved to:

· As soon as is practicable, officers to commence enforcement proceeding relating to the development of land at 265 Chapel Lane Doreen.

10. At the Ordinary Meeting of Council on 25 August 2020, Council resolved to:

· Reconfirm Council's intention to apply to the Tribunal for an enforcement order in accordance with Section 114 of the Planning and Environment Act 1987 at the earliest opportunity.

· Determines its position in relation to s120 interim enforcement order in the confidential session on 25 August 2020.

Options

11. There are two options that are available to Council:

· Resolve as per the recommendations of this report and agree to the terms of settlement thereby seeking to resolve the matter prior to it proceeding to a Hearing at VCAT; or

· Resolve to proceed with the enforcement action at VCAT and have the matter considered at a Hearing scheduled in May 2021 with the aim of obtaining a decision from VCAT that determines that the activity required a planning permit and that the land must be remediated. This will likely be a complex legal hearing that will require experts including legal representation. Whilst ESG have agreed thus far to halt all works on the land there is a risk, that VCAT may determine that the works did not require a planning permit in which case the works would be allowed to continue without any control or further recourse by the Council.

Council plans and policies

12. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Ensure that Council meets its legal responsibilities and manages its risks.

· In undertaking the abovementioned enforcement process, Council is meeting its legal responsibilities in accordance with the Planning and Environment Act 1987. Furthermore in considering and resolving to agree to the Terms of Settlement between ESG, the owners of 265 Chapel Lane Doreen and Council as the responsible authority, Council is managing its risks both now and into the future. The Terms of Settlement if agreed to by all parties, ensures no further legal action can be brought forward other than enforcing the Agreement as consented to and enforced by VCAT through Magistrates Court.

Sustainability implications

13. The Terms of Settlement, if agreed to, requires the land to be remediated to ensure environmental impacts are managed and reduced. This will bring about wider social benefits by ensuring that the use of the land for the disposal of clean fill is stopped and will not sought to be reintroduced at a later date.

Community engagement

14. Not applicable

Innovation and continuous improvement

15. Not applicable

Collaboration

16. Not applicable

Budget implications

17. The enforcement proceeding has incurred VCAT and legal representation costs.

Relevant law

18. Sections 114 and 120 of the Planning and Environment Act 1987 have been utilised with respect to enforcing the Nillumbik Planning Scheme pertinent to this matter. These sections allow Council to lodge enforcement orders with VCAT where a Council has identified a breach to the planning scheme.

Regional, state and national plans and policies

19. Not applicable

Conflicts of interest

20. Officers involved in the preparation of this report have declared that they have no conflict of interest in the subject matter of this report.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.005/21 Councillor Code of Conduct

Distribution: Public

Manager: Blaga Naumoski, Executive Manager Governance, Communications and Engagement

Author: Heather Holt, Legal Advisor

Summary

As part of the implementation of the Local Government Act 2020 (the 2020 Act) Council is required to develop a Councillor Code of Conduct (the Code) to include standards of conduct expected to be observed by Councillors in the course of performing their duties and functions as Councillors.

Councillors have considered the draft Code on two occasions and their improvements are now included.

The Code needs to be operative by 24 February 2021 after adoption by a formal Council resolution passed at a meeting by at least two–thirds of the total number of Councillors elected to Council.

Recommendation

That Council, by a formal resolution passed by at least two-thirds of the total number of Councillors elected to the Council, adopt the Councillor Code of Conduct attached to this report, to be effective immediately.

Attachments

⇩1.	Draft Councillor Code of Conduct

Discussion

1. The implementation of the Act requires a gradual staged development of a number of statutory documents mainly over an 18 month period. The Governance Rules and certain policies have already been completed; the new Councillor Code of Conduct (Code) is required to operate from 24 February 2021.

2. Section 139 of the 2020 Act, headed Councillor Code of Conduct, replaces section 76C of the Local Government Act 1989, also headed Councillor Code of Conduct.

3. A Councillor Code of Conduct, under the 2020 Act, must include the standards of conduct expected to be observed by councillors that will be prescribed in regulations and may include any other matters which the council considers appropriate.

4. A council must review and adopt the Councillor Code of Conduct within four months of the general election. Until a council adopts a Councillor Code of Conduct (under the 2020 Act), the Councillors must comply with the existing Councillor Code of Conduct.

5. Under the new 2020 Act the new internal arbitration process applies to a breach of the prescribed standards of conduct (section 141) and if the arbiter determines that a Councillor has failed to comply with the prescribed standards of conduct, the arbiter may make a finding of misconduct against the Councillor (section 147).

6. The Councillor Code of Conduct has been prepared based on the existing Councillor Code of Conduct with changes required by the Act. Wording changes are also proposed to provide clarity around duties and obligations as set out in the Act and all other applicable legislation.

Related Council decisions

7. The new Code is the next document to be considered by Council. Until then Councillors must comply with the existing Councillor Code of Conduct.

Options

8. Under section 139 of the 2020 Act, Council must adopt a new Code within 4 months after a general election. The 2020 Act provides that the Code must be adopted by a formal resolution of Council passed at a meeting by at least two-thirds of the total number of Councillors elected to Council.

9. To be compliant with the new 2020 Act your Councillor Code of Conduct policy:

· must include the standards of conduct prescribed by the regulations expected to be observed by Councillors; and

· must include any provisions prescribed by the regulations; and

· must include provisions addressing any matters prescribed by the regulations; and

· may include any other matters which the council considers appropriate, other than any other standards of conduct.

10. Local Government Victoria (LGV), in addition to the co-design process has provided a draft pathway document to assist councils in achieving the requirements of Act. The Councillor Code of Conduct to be approved by Council prior to 24 February 2021 is in line with the pathway document and guidance material provided by LGV, other municipalities and Council’s legal advisor.

Council plans and policies

11. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Maintain good governance and effective leadership.

Sustainability implications

12. The social sustainability of the municipal district requires good leadership modelled by Councillor conduct of a high standard to improve the district’s amenity.

Community engagement

13. Not applicable

Innovation and continuous improvement

14. The standards of conduct in the Code are prescribed by regulations and therefore as regulations are reviewed on a set cycle, so too will Councillors improve the Code over time.

Collaboration

15. The content of the Code has been the subject of collaboration on content and design among councils through Engage Victoria, leading to the Local Government (Governance and Integrity) Regulations 2020.

16. These regulations prescribe the councillor conduct standards and the internal arbitration process for breach of these standards. The structure is based on the headings of the proposed Standards of Conduct to ensure the Standards of Conduct are embedded within the Code.

Budget implications

17. Implementation of the new Act is a significant undertaking for Council and requires the involvement of officers from across the organisation. The cost associated with the establishing a new Councillor Code of Conduct is included within Council’s operational budget.

Relevant law

18. A new Councillor Code of Conduct needs to comply with section 139 of the 2020 Act which includes:

· stating the standards of conduct expected to be observed by Councillors in the course of performing their duties and functions, including prohibiting discrimination , harassment (including sexual harassment) and vilification

· the internal arbiter process prescribed by the regulations

· being consistent with other Victorian Acts, including the Charter of Human Rights and Responsibilities Act 2006

· adoption by a formal resolution of Council passed at a meeting by at least two-thirds of the total number of Councillors elected to Council.

19. It is important for councillors to be aware of how the standards of conduct fit within the overall Councillor Conduct Framework, as a breach of the standards of conduct will constitute misconduct and be subject to sanctioning by an arbiter.

20. It is therefore critical for all councillors to be familiar with the standards of conduct and the distinction between the standards and the rest of the councillor code of conduct.

Regional, state and national plans and policies

21. The flexibility intended by the 2020 Act is that Victoria local government councils have broad guidance and consistency between them in these matters but that councils’ can “custom-fit” the details to meet their individual situations.

Next steps

22. That Council now consider adoption of the Councillor Code of Conduct by the necessary minimum required by the 2020 Act of two-thirds of all members of Council elected to Council.

Conflicts of interest

23. None of the officers preparing this report has a conflict of interest in the Councillor Code of Conduct subject–matter.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.006/21 Tender Report - Contract 2021-45 Eltham North Reserve - Synthetic Pitch Replacement

Distribution: Public

Manager: Hjalmar Philipp, Director Operations and Infrastructure

Author: Heath Gillett, Manager Recreation and Leisure

Enrique Gutierrez, Manager Capital Works

Summary

This report recommends the awarding of contract 2021-45 for Eltham North Reserve - Synthetic Pitch Replacement.

The contract is for the provision for a FIFA quality-certified synthetic pitch surface to replace the existing one at the Eltham North Reserve. Works include the supply and installation of the new surface and related infrastructure as well as the removal and disposal of the existing surface.

The contract will also include scheduled servicing and maintenance for a period of ten (10) years.

The Tender Evaluation Panel (TEP) has assessed all submissions and this report provides a summary of their evaluation in recommending the awarding of the contract for 2021-45 for Eltham North Reserve - Synthetic Pitch Replacement.

Pursuant to the Instrument of Delegation to the Chief Executive Officer, the value of this contract exceeds the specified financial limits and a Council resolution is therefore required to award the contract.

Recommendation

That Council:

1. Accept the preferred tender for the sum of $569,496.30 including 20% for construction contingency (exclusive of GST) for the following contract:

Number: 2021-45

Title: Eltham North Reserve - Synthetic Pitch Replacement

Term: 1 February 2021 to 29 March 2021

2. Authorises the Director Operations and Infrastructure to finalise and execute the contract documentation.

3. Authorises the Director Operations and Infrastructure to approve additional cost variations that are a result of unknown latent site conditions or changes to operational requirements throughout the term of the contract, with a value of no more than 15% of the updated total contract value (excluding the fee for the ten-year maintenance period).

4. Notes that any variations that exceed the agreed total contract value will require a further Council resolution.

5. Advises all tenderers accordingly.

6. Makes public the decision regarding this contract but the Tender Evaluation Report and Sustainability and Recycling Report remain confidential on the grounds specified in the definition of confidential information in section 3(1)(g) of the Local Government Act 2020.

Attachments

1.	Attachment A - Tender Evaluation Summary Report - Confidential
2.	Attachment B - Sustainability and Recycling - Confidential - Confidential

Discussion

1. A tender was issued to identify and appoint an experienced synthetic sports turf company that can replace the current synthetic field at North Eltham Reserve, North Eltham.

2. The current design will remain the same with the field of play surface design being updated to reflect current standards and community need.

3. The key works under this project include:

· Remove the current carpet, repurpose the carpet and infill and if possible recycle or re-purpose all components

· Inspection and remediation of pavement base

· Supply and replacement of a FIFA certified synthetic sports surface

· Supply and installation of sports equipment for field of play

· Surface certification

· Provision of management guarantees and warranties

4. The contract will also include a ten (10) year maintenance arrangement with the awarded contractor.

Council plans and policies

5. This report directly supports the achievement of Council Plan 2017-2021 strategy Ensure responsible and efficient management of Council's financial resources.

· Ensure responsible and efficient management of Council's financial resources.

Tender overview

The Tender Evaluation Panel (TEP) advises that:

6. A public tender was issued on and advertised in the Melbourne Age on Saturday 28 November 2020

7. The period for tender submissions closed at 2pm on Thursday December 17 2020.

8. 8. The following tenders were received.

TENDERER	Tendered Sum
Tenderer A – Preferred Tender	$569,496.30
Tenderer B	$851,370.00
Tenderer C	$997,529.40
Tenderer D	$1,185,888.00

9. Only tenders that were conforming and competitive were fully scored. Tender submissions that were evaluated as non-conforming or not sufficiently competitive were set aside from further evaluation.

10. The following tenders were evaluated as non-conforming or not sufficiently competitive and were subsequently set aside from further evaluation.

TENDERER	Reasons why tender was set aside from further evaluation
Tenderer C	Tendered price was the second highest There were two other conforming and competitive tenderers to choose from.
Tenderer D	Tendered price was the highest. There were two other conforming and competitive tenderers to choose from.

TENDERER

Reasons why tender was set aside from further evaluation

Tenderer C

Tendered price was the second highest

There were two other conforming and competitive tenderers to choose from.

Tenderer D

Tendered price was the highest.

There were two other conforming and competitive tenderers to choose from.

11. The following Evaluation Criteria and Weightings were applied during the evaluation of the conforming and competitive tenders. These weightings were set and agreed to by the Tender Evaluation Panel Members prior to the issue of the tender.

Criteria	Weighting %
Price	40%
Capability & Capacity	40%
Collaboration	10%
Environment	5%
Social and Local	5%

12. The weightings reflect the relative importance of each element to this particular contract. They were determined as being most appropriate after considering numerous factors including (but not restricted to) the time, quality, risk and contract management requirements which were likely to have the most impact on the achievement of best value.

13. The members of the TEP were;

Member Name	Position Title	Business Unit	Scoring Member or Advisory Member
Heath Gillet	Manager Recreation and Leisure	Recreation and Leisure	Scoring
Shannon Maynard	Coordinator Recreation & Leisure	Recreation and Leisure	Scoring
Alex Stewart	Project Management Officer	Capital Works	Scoring
Enrique Gutierrez	Manager Capital Works	Capital Works	Advisory
Lance Clark	Senior Procurement Specialist	Corporate Services	Advisory

14. The final evaluation outcome was as follows:

TENDERER	SCORE	RANK
Tenderer A – Preferred Tender	86/100	1
Tenderer B	72/100	2

15. The recommended tender was the highest ranked and is considered best value as they are suitably qualified and experienced in delivery of similar projects to other Local Government Councils. Overall it represents the best monetary outcomes for Council.

16. Attachment 1 - Tender Evaluation Summary Report – Confidential, provides the tenderer names and the Evaluation Scorecard Summary.

Capability and Capacity

17. Tendered solution is FIFA accredited and preferred tenderer has successfully completed various projects of similar scope.

18. Has completed multiple similar projects at neighbouring Councils, and have delivered maintenance services as part of a larger contract.

19. An inspection was undertaken at one of the preferred tenderers completed projects for a large metropolitan Council to validate capability.

Contingency and risks

20. A construction contingency amount is included given that no inspection was made to the base of the existing surface.

Collaboration with other Councils or Agencies

21. Feedback from other councils from similar projects undertaken by the highest scoring tenders was sought to support the evaluation.

22. Football Victoria has assessed the current pitch and confirmed that it required replacement and would require independent certification in order to schedule matches at the facility. Football Victoria requires facilities conform to FIFA standards and specifications, which have been reflected in the specifications for the project.

23. Council engaged Football Victoria’s preferred consultant to write the specifications and to ensure this replacement would meet the needs of the Council, the club and Football Victoria for the life of the facility.

Budget implications

24. The project budget is as follows:

Project Budget Allocation	Allocation (Excl. GST)
Eltham North Synthetic Pitch sink fund	$385,000
Local Roads and Community Infrastructure Grant	$275,000
Total Project Budget	$660,000
Project Expenditure	Expenditure (Excl. GST)
Construction and pitch replacement	$356,802
Infill	$86,350
Construction Contingency 20%	$90,000
10 year maintenance	$126,344⁽¹⁾
Project Expenditure	$659,496

(1) The ten-year maintenance will be paid on a per-year basis from the funds left in the corresponding sink fund

Sustainability implications

25. Tenderers were asked to outline and provide details around the method for removal and disposal of the existing synthetic surfacing product/system as well as recyclable/repurposing options for both the existing and new installed surface.

26. The preferred tenderer confirmed that the existing surface and components can be recycled or repurposed, as outlined in Attachment B.

Stakeholder Consultation/communication

27. Since the pitch was audited by Football Victoria in November 202, the Eltham Redbacks Football Club has been engaged, providing input to the project specification and line marking options.

Innovation and continuous improvement

28. Not applicable.

Relevant law

29. Not applicable.

Regional, state and national plans and policies

30. Not applicable.

Conflicts of interest

31. As part of the tender process, all members of the Tender Evaluation Panel were required to declare any disclosable conflicts of interest.

32. There were no disclosable conflicts of interest raised.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.007/21 Tender Report - Contract 2021-34 Diamond Valley Library Upgrade Works

Distribution: Public

Manager: Hjalmar Philipp, Director Operations and Infrastructure

Author: Steven Blight, Construction Coordinator

Enrique Gutierrez, Manager Capital Works

Summary

This report recommends awarding Contract 2021-34 for Diamond Valley Library Upgrade Works.This report recommends awarding Contract 2021-34 for Diamond Valley Library Upgrade Works.

The contract involves building works for the Diamond Valley Library Upgrade, including the upgrade of the existing amenities, internal refitting, lighting, supply and installation of furniture and fittings.

The intended contract commencement date is 1 February 2021 with an intended practical completion date of 30 July 2021.

The Tender Evaluation Panel (TEP) has assessed all submissions and this report provides a summary of their evaluation in recommending the awarding of the contract for 2021-34 for Diamond Valley Library Upgrade Works.

Recommendation

That Council:

1. Accept the preferred tender for the tendered sum (exclusive of GST) plus $10% for contingency for the following contract:

Number: 2021-34

Title: Diamond Valley Library Upgrade Works

Term: 1 February 2021 to 30 July 2021

2. Authorises the Director Operations and Infrastructure to finalise and execute the Contract documentation.

3. Authorises the Director Operations and Infrastructure to approve additional cost variations that are a result of unknown latent site conditions or changes to operational requirements throughout the term of the contract worth no more than 10% of the updated total contract value.

4. Advises all tenderers accordingly.

5. Makes public the decision regarding this contract but the Tender Evaluation Report (Attachment 1) remain confidential on the grounds specified in the definition of confidential information in section 3(1)(g) of the Local Government Act 2020.

Attachments

1.	Tender Evaluation Summary Report - Confidential

Discussion

1. The Diamond Valley Library is a popular community facility that needs an upgrade to reflect the ever changing community expectations for a community library service.

2. The Diamond Valley Library was originally constructed in 1984 and has never had a major upgrade to meet current expectation levels of a municipal library facility, in particular, the public amenities, parent’s facilities and accessibility of the whole facility.

3. In 2019, in partnership with the Yarra Plenty Regional Library Service (YPRLS) and Nillumbik Shire Council, a $500,000 grant was secured under the Living Libraries Infrastructure Program.

4. As part of the dollar-matching criteria, Council allocated $270,000 and the Yarra Plenty Regional Library Service allocated $80,000, both to be split over the 2020/21 and 2021/22 financial years.

5. This provided an initial total project budget of $850,000 which includes all preliminaries, design, consultants, permits and construction.

6. Works will involve, but are not limited to, a new interior layout to allow:

- Increased children’s zone

- A new co-working space for start-ups and micro-businesses

- A stronger visible connection to the Garden Makerspace, including a new external decking area.

- Improved layout for maximum flexibility with a bookshop reader centric approach

- Increased face-out shelving opportunities

- Maximum efficiency of functional requirements for book return and issue with the focus on self-check-out and self-check-in options

- Upgraded amenities

- A new parents lounge

7. Following a review of the existing building by the architectural consultant, two significant maintenance issues were identified that need to be addressed in the refurbishment works. The first one is the large celestial ceiling/skylight and the second are the south-facing windows/doors. Both are deteriorating and need replacement. These two issues were considered in a report to the September 2020 Ordinary Council meeting and additional funding was allocated to address them.

8. The additional budget allocations were based on detailed cost estimates prepared by an independent quantity surveyor.

Related Council decisions

9. At its September 2020 Ordinary Meeting Council resolved to allocate a further $324,000 to fund the expected budget shortfall created by the addition of the replacement of the celestial ceiling/skylight and south facing windows and doors to the project. This was in addition to an additional $50,000 contribution from the Yarra Plenty Regional Library Service and a $45,000 contribution from Council’s building maintenance program.

10. This additional allocation was to be addressed as part of the mid-year budget review.

11. This would bring the total project budget to $1,269,000 (excl. GST)

Council plans and policies

12. This report directly supports the achievement of Council Plan 2017-2021 strategy Ensure responsible and efficient management of Council's financial resources.

· Ensure responsible and efficient management of Council's financial resources.

Tender overview

The Tender Evaluation Panel (TEP) advises that:

13. A public tender was issued on and advertised in the Melbourne Age on Saturday 14 November 2020

14. The period for tender submissions closed at 2pm on Thursday 10 December 2020.

15. The following tenders were received.

TENDERER	Tendered Sum
Tenderer A – Preferred Tender	$1,095,414.00
Tenderer B	$1,087,901.48
Tenderer C	$1,112,617.00
Tenderer D	$1,150,880.00
Tenderer E	$1,188,000.00

16. Only tenders that were conforming and competitive were fully scored. Tender submissions that were evaluated as non-conforming or not sufficiently competitive were set aside from further evaluation.

17. The following tenders were evaluated as non-conforming or not sufficiently competitive and were subsequently set aside from further evaluation.

TENDERER	Reasons why tender was set aside from further evaluation
Tenderer C	As Tenderer A & B are qualified and capable of undertaking and delivering against contract requirements, the tendered submission from Tenderer C did not proceed to full evaluation due to their tendered cost.
Tenderer D	As Tenderer A & B are qualified and capable of undertaking and delivering against contract requirements, the tendered submission from Tenderer D did not proceed to full evaluation due to their tendered cost.
Tenderer E	As Tenderer A & B are qualified and capable of undertaking and delivering against contract requirements, the tendered submission from Tenderer E did not proceed to full evaluation due to their tendered cost.

18. The following Evaluation Criteria and Weightings were applied during the evaluation of the conforming and competitive tenders. These weightings were set and agreed to by the Tender Evaluation Panel Members prior to the issue of the tender.

Criteria	Weighting %
Price	40%
Capability	25%
Capacity	25%
Collaboration	5%
Social and Local	5%

19. The weightings reflect the relative importance of each element to this particular contract. They were determined as being most appropriate after considering numerous factors including (but not restricted to) the time, quality, risk and contract management requirements which were likely to have the most impact on the achievement of best value.

20. The members of the TEP were:

Member Name	Position Title	Business Unit	Scoring Member or Advisory Member
Steven Blight	Construction Coordinator	Capital Works	Scoring
Alex Stewart	Project Management Officer	Capital Works	Scoring
Enrique Gutierrez	Manager Capital Works	Capital Works	Scoring
Mat Foley	Architect – Content Studio	External Consultant	Advisory
Lance Clark	Senior Procurement Specialist	Corporate Services	Advisory

21. The final evaluation outcome was as follows:

TENDERER	SCORE	RANK
Tenderer A – Preferred Tender	87/100	1
Tenderer B	83/100	2

22. The recommended tender was the highest ranked and is considered the best value based on overall qualitative assessments. It has:

a) Evidence of experience and skilled resources and has successfully completed similar projects to a high standard for a neighbouring Council.

b) A project plan that fits within Council’s timeframes and lines up with critical procurement and operational timeframes.

c) Provided prompt responses to Council’s requests for information on cost options. Staff presented seems to have relevant experience.

d) Works program provided in line with council's requirement to deliver this project.

23. Attachment 1 - Tender Evaluation Summary Report – Confidential, provides the tenderer names and the Evaluation Scorecard Summary.

Capacity

24. The preferred tenderer specialises in this type of works and has successfully completed a number of similar projects with other local and state government authorities. They have certified OH&S, Quality, Environmental and Project management systems and procedures in place.

Capability

25. The preferred tenderer has indicated that they are in apposition to commence this project as soon as possible once award. They have an experienced and well qualified project team that will oversee the delivery of these works.

Tender Interviews and Reference checks

26. Tender interview was held with Tenderer B on 17 December 2020 and with Tenderer A on 18 December 2020.

Contingency and risks

27. As this is predominantly an internal refit with minimal external works or excavations the construction risks are reduced and the 10% contingency is considered reasonable and manageable.

28. The library will be closed during the construction works, so the COVID-19 risk can be easily managed in line with the stipulated regulations and protocols.

29. Procurement of some of the items do have reasonable lead times but can be accommodated within the desired project timelines, based on current supply information.

30. The project schedule provided by the preferred tenderer can be accommodated within the funding body’s stipulated project completion target dates.

Collaboration with other Councils or Agencies

31. Not Applicable for this tender

Budget implications

32. The project budget is as follows:

Project Budget Allocation	Allocation (Excl. GST)
Living Libraries Infrastructure Program	$500,000
Nillumbik Shire Council	$639,000
Yarra Plenty Regional Library Service	$130,000
Total Project Budget	$1,269,000
Project Expenditure	Expenditure (Excl. GST)
Preliminaries (Project Management, Design, Consultants, Permits, Fees, etc)	$100,000
Construction (tender)	$1,095,414
Construction Contingency 10%	$109,541
Project Expenditure	$1,304,955 (1)

(1) The shortfall of $35,955 would be covered by unused contingency.

Sustainability implications

33. Not applicable

Stakeholder Consultation/communication

34. Full consultation has been undertaken with the Chief Executive Officer for Yarra Plenty Regional Library as the operator of the site and facility. She has been heavily involved in the development of the concept and final design plans.

35. Prior to the final design being adopted, the concept plans were presented to key stakeholders and library user groups over two virtual sessions for comment and feedback.

36. The concept plans were also displayed online via Council’s Participate Nillumbik online platform and users were able to provide feedback via that forum.

37. All feedback was referred back to the Project Working Group, and changes to the design implemented, wherever possible.

Innovation and continuous improvement

38. Not Applicable

Relevant law

39. Not applicable

Regional, state and national plans and policies

40. Not applicable

Conflicts of interest

41. As part of the tender process, all members of the Tender Evaluation Panel were required to declare any disclosable conflicts of interest.

42. There were no disclosable conflicts of interest raised.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.008/21 Quarterly Risk and Safety Report September 2020

Distribution: Public

Manager: Jeremy Livingston, Executive Manager Business Transformation and Performance

Author: Craig Commane, Risk and Safety Lead

Summary

This report provides a summary of Council’s Risk and Safety Report for the quarter ending September 2020.

The report is presented in accordance with the Local Government Performance Reporting Framework (LGPRF). This reporting framework requires the presentation of a report to Council at least every six months, detailing the strategic risks, operational risks, the consequences and likelihood of occurrence, and risk mitigation strategies.

Risk and Safety reporting to Council is tabled each quarter following consideration by the Audit and Risk Committee. This quarterly report is presented to Council later than normal due to the Audit and Risk Committee having its first quarterly meeting in the financial year later than normal, held on 14 December 2020.

The full confidential Quarterly Risk and Safety Report for the September is attached to this report (Attachment 1) and provides detailed information for Council’s consideration

Recommendation

That Council:

1. Notes the summary of the confidential Quarterly Risk and Safety Report for the September 2020 quarter.

2. Resolves that the Quarterly Risk andSafety Report remains confidential on the grounds specified in the definition of confidential information in section 3(1)(f) of the Local Government Act 2020.

Attachments

1.	Risk and Safety Report September Quarter 2020 - Confidential

Discussion

1. Council’s commitment to risk management is outlined in the Risk Management Policy adopted in June 2018, with the following objectives:

· Ensure that all risks that could affect the achievement of our Council’s goals, strategies and actions are identified, assessed and treated to a commercially, professionally and politically acceptable level of risk;

· Integrate risk management into decision making processes and embed it into the organisation culture to help make informed choices for the benefit of Council and our stakeholders;

· Ensure that necessary resources are allocated in support of the policy outcomes;

· Maintain stakeholders trust and due diligence;

· Align all risk management practices across the organisation and to promote and support a consistent corporate approach to risk management that can be clearly understood and applied by everyone and provide a basis for higher standards of accountability; and

· To ensure that risk management is seen as the responsibility of all staff, i.e.: “Risk Management is everyone’s business”.

2. In addition to the Risk Management Policy, Council’s Risk Management Framework 2018 communicates and describes the risk management structure and procedures that are used to identify, analyse, evaluate, treat, monitor and communicate key risks, including management reporting.

3. The context of the Risk Management Policy and Framework takes into account that local government presents a distinct risk character and profile that needs to be taken into account when considering risk management. Many assets and services are available 24 hours a day seven days a week in an unsupervised way, some are managed or provided by volunteers or committees of management or are managed by contractors, others are regulated by compliance legislation.

4. This Risk and Safety report broadly reports on:

· Risk management;

· Business continuity;

· Fraud and corruption control;

· Insurance premiums;

· Incident management and insurance claims;

· Occupational Health and Safety;

· Other data; and

· Strategic risk summary report.

Related Council decisions

5. This summary, along with the confidential Risk and Safety Report, has been provided to meet the requirements of the Local Government Performance Reporting Framework (LGPRF) and consolidation of management reporting.

6. Ongoing reporting to Council on risk and safety matters is presented quarterly following each meeting of Council’s Audit and Risk Committee.

Options

7. The Quarterly Risk and Safety Report has been prepared in accordance with Council’s Risk Management Policy and Framework and is consistent with the Australian Standard AS/NZS 31000:2009 Risk Management.

8. Highlights from the Quarterly Risk and Safety Report for the September 2020 quarter are:

9. Major Incident – COVID-19 pandemic

· Council is observing all directives issued by the Victorian Chief Health Officer (VCHO);

· The primary focus of the Risk and Safety team during this time has been to provide advice, support and develop COVID-Safe Plans across Council departments.

· This also includes review COVID-Safe Plans from various community and sporting groups who utilise Council land and/or facilities.

· A future compliance initiative introduced by State Government is the development of COVID Summer Safe Plans that takes a risk based approach to develop a ‘COVID Safe’ approach to significant Council public outdoor sites (e.g. Eltham Lower Park, Diamond Valley Miniature Railway, Eltham North Adventure Playground, Diamond Creek Regional Playground and access points on Council Land to the Yarra River).

· COVID Summer Safe Plans entail undertaking a risk assessment for each site and establishing a system of control measures, which may include signage and increase surveillance visits to inform Victoria Police.

10. Council’s insurance policy renewal process was complete as at 30 June 2020.

11. The following table summarises recorded incidents by type for matters involving Council. It should be noted that this table shows all reported incidents, rather than all claims, as not every incident results in a claim being made.

Incidents by type (excluding OHS incidents)	Oct - Dec 19	Jan - Mar 20	Apr – Jun 20	Jul – Sep 20	Total Oct - Sep 20	Last Year Oct - Sep 19
Property	18	17	21	18	74	27
Motor vehicle	15	24	13	10	62	83
Professional Indemnity	1	0	0	3	4	12
Public Liability	53	100	55	52	260	128
Occupational Health and Safety	21	21	21	15	78	90
Total all incidents	108	162	110	98	478	340

12. A high proportion of reported incidents during the September 2020 quarter are generated within the normal course of operations in the Operations and Infrastructure Directorate (88%). These incidents relate to major classes of asset or maintenance type incidents for Council buildings, recreational facilities, playgrounds, trees, drainage, footpath, road damage and major plant.

13. Tree related risks are mitigated through the:

· Tree Management Policy;

· Reactive tree maintenance program;

· Proactive electric power line clearance program;

· Proactive box clearance program;

· Proactive inspections of high risk trees; and

· Meeting the objectives of the Municipal Emergency Management Plan and Municipal Fire Management Plan.

14. Road, footpath, drainage and roadside related risks are mitigated through the:

· Road Management Plan;

· Road Asset Management Plans; and

· Proactive and reactive maintenance programs.

15. Property incidents typically are reported break-ins, vandalism and accidental damage to Council buildings or fixed equipment such as in playgrounds and recreational facilities. Risks are mitigated through maintenance programs and insurance.

· 10 reports including theft of copper down pipes at the Eltham Library and a break in and theft of two chain saws at Council’s Operation Centre, Plenty;

· Mould damage at the Kangaroo Ground Hall and Emergency Operations Centre, currently under repairs;

· Where appropriate, insurance claims were made, repairs undertaken and matters reported to the Police.

16. Motor vehicle incidents include accidental damage involving Council’s light and heavy fleet, including incidents caused by third parties. Risks are mitigated through maintenance, education and insurance.

17. There were no significant accidents during the June 2020 quarter and only one minor insurance claim was lodged with Council’s insurer.

18. Professional indemnity relates to incidents and claims for alleged negligence or breach of duty arising from an act, error or omission in the performance of Council services.

19. Public liability incidents are reported where the third party is seeking compensation for personal injury, property damage and economic loss. These claims are managed by an external claims manager or Council’s insurer. Typical incidents primarily relate to vehicle road damage, property damage, tree related or trip and fall incidents.

· Six trip and fall incidents were reported at various locations, no major injuries were reported;

· Five incidents related to vehicle damage, primarily these are tyre or body work damage caused by the road surface or road related infrastructure. Note that the Road Management Act 2004 threshold is currently $1400;

· 12 flooding and nine tree damage incidents causing property damage, primarily attributed to rainfall and wind related events; and

· Several miscellaneous incidents were noted including a tree root damage incident.

20. Occupational Health and Safety incidents relates to safety matters reported as incidents, hazards and near misses. Typical incidents relate to cuts and lacerations, musculoskeletal injuries and slip trips and falls. These incidents are managed by Council’s Risk and Safety Team through the Occupational Health and Safety Management System.

21. The overall annual trend data for the 12 months leading up to September 2020 for incidents was higher compared to the same period ending September 2019. The increase is attributed to consistently higher numbers of flooding and tree related public liability incidents caused wind and storm weather events during the past 3 quarters.

22. Incident costs, including under excess claim costs and insurance excesses, are managed within existing budgets.

Council plans and policies

23. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Ensure that Council meets its legal responsibilities and manages its risks.

Sustainability implications

24. Trend data from this report is used to inform management processes for the mitigation of risks associated with property, motor vehicle, professional indemnity, public liability and safety as they relate to Council’s strategic and operational risks.

25. Council’s risk profile includes environmental risks and climate change as a consequence of failure to adequately mitigate those risks.

Community engagement

26. Not applicable

Innovation and continuous improvement

27. Trend data from this report is used to inform management processes and gap analysis to identify continuous improvement opportunities associated with property, motor vehicle, professional indemnity, public liability and occupational health and safety.

Collaboration

28. Not applicable

Budget implications

29. This report is part of Council’s monitoring of the Council Plan 2017-2021 and Budget. The resources for managing and reporting are accommodated within existing operational budgets.

Relevant law

30. Not applicable

Regional, state and national plans and policies

31. Not applicable

Conflicts of interest

32. None of the officers preparing this report has a conflict of interest.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.009/21 Review of Council's Road Management Plan

Distribution: Public

Manager: Hjalmar Philipp, Director Operations and Infrastructure

Author: Joseph Emmanuel, Manager Infrastructure

Jeff Saker, Roads and Drains Maintenance Coordinator

Summary

The Road Management Act 2004 grants power to a road authority (Council) to make a Road Management Plan (RMP) to establish the management system and standards for the exercise of the authority’s road management functions.

In accordance with section 301(3) of the Road Management (General) Regulations 2005, Council is required to prepare and approve a review of its RMP within the period of six months after each general election or by the next 30 June, whichever is the later.

This review will consider current operational performance, benchmarking with neighbouring Councils and with that industry practice, impact of changes in legislation and emerging case law and public liability risks and claims in recommending any amendments to Council’s 2017 Road Management Plan.

The first step in the review process is for Council to advertise via a public notice its intent to review its Road Management Plan.

Recommendation

That Council publishes a public notice of its intention to review its Road Management Plan, inviting submissions to be heard at the next available Future Nillumbik Committee Meeting.

Attachments

⇩1.	2017 Road Management Plan

Discussion

1. The main purpose of Council’s RMP is to document the level of service relating to how often Council inspects its roads and footpaths network, in particular what Council defines as a hazard and defect and within what timeframe Council will rectify that hazard or defect.

2. The RMP takes a risk and resource based approach to defining the level of service. The factors of risk and resource are considered in conjunction with legislation, benchmarking with other Councils and community input as part of the consultation process.

3. The following asset types are in scope for the RMP review:

a) Sealed roads and all road related infrastructure (line marking, signs, kerb and channel and guard rail).

b) Unsealed roads and all road related infrastructure (signs and guard rail).

c) Footpaths and designated shared trails.

d) Vegetation interfering with the road, footpath and shared trail access envelope.

Related Council decisions

4. At the 27 June 2017 Ordinary Meeting of Council, Council resolved to adopts it 2017 Road Management Plan. Refer to Attachment 1 for the adopted 2017 Road Management Plan.

Options

5. Options relating to RMP levels of service will be provided to Council at subsequent meetings.

Council plans and policies

6. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Plan for the community's future needs for services and infrastructure.

Sustainability implications

7. Safe and functioning roads can provide a range of sustainability related benefits, particularly economic and social. There may be some degree of trade off with environmental implications, for example through more frequent inspection and management measures.

Community engagement

8. The review and amendment of a RMP is required to follow the process set out in the Local Government Act 1989 and Road Management Act 2004. This includes inviting community input into the current RMP before considering and making any amendments. An amended RMP is also required to be made available for public comment prior to final adoption.

9. To commence the review process and in accordance with section 54(5) of the Road Management Act 2004 a public notice will be placed in The Age on 28 January 2021 advising of Council’s intention to conduct a review of the RMP, inviting the community to an information session and to make a submission. This will also be communicated on Council’s website and social media. The consultation period will close 28 days later on 25 February 2021.

10. There will be a second round of community consultation following Council resolving its intention to adopt its amended RMP. Council will then make publically available its amended RMP for the purpose of public consultation. This is scheduled to occur in March / April 2021.

11. Following the conclusion of both consultation phases, Council will be presented with the submissions for consideration at the earliest available Future Nillumbik Committee meeting. Submitters will also be provided the opportunity to speak to and present their submission to Council.

Innovation and continuous improvement

12. The review process for Council’s RMP embraces a continuous improvement philosophy.

13. A review of Council’s RMP is performed every four years.

14. The 2017 version of Council’s RMP is the fourth iteration of this plan. With each iteration, Council refines its level of service and one of the benefits of this is building in efficiencies gained through program and process improvement.

15. The review will consider operational performance against the current plan and industry practice.

Collaboration

16. A benchmarking exercise will be performed as part of this review with neighbouring and ‘like’ councils.

Budget implications

17. Any proposed changes to levels of service are likely to have an impact on the operational budgets and these will be considered as part of the review.

Relevant law

18. The Road Management Act 2004 grants power to a road authority (Council) to make a Road Management Plan to establish the management system and standards for the exercise of the authority’s road management functions.

19. In accordance with section 301(3) of the Road Management (General) Regulations 2005, Council is required to prepare and approve a review of its RMP within the period of six months after each general election or by the next 30 June, whichever is the later.

Regional, state and national plans and policies

20. Not applicable.

Conflicts of interest

21. All staff involved in the preparation of this report, have declared in writing that they do not have a conflict of interest in the subject matter of this report.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.010/21 Informal Meetings of Councillors Records - 27 January 2021

Distribution: Public

Manager: Blaga Naumoski, Executive Manager Governance, Communications and Engagement

Author: Janet Taylor, Governance Officer

Summary

In accordance with Item 19 of Council’s Governance Rule – Meeting Procedure, adopted on 25 August 2020, Council is required to report as soon as practicable to a Council Meeting a record of each Information Meetings of Councillors held.

This report lists Information Meetings of Councillors records that have been submitted since the matter was last reported to Council on 15 December 2020.

An Information Meetings of Councillors Record was kept for:

· Informal Meeting of Councillors Record Arts and Cultural Advisory Committee – 7 December 2020;

· Informal Meeting of Councillors Record - HWB Advisory Committee -10 December 2020;

· Informal Meeting of Councillors Record Positive Ageing Advisory Committee - 11 December 2020;

· Informal Meeting of Councillors Record - Pre-meet CM - 15 December 2020;

· Informal Meeting of Councillors Record Environment and Sustainability Advisory Committee - 16 December 2020; and

· Informal Meeting of Councillors Economic Development Advisory Committee 17 December 2020.

Recommendation

That Council, in accordance with Item 19 of Council’s Governance Rule – Meeting Procedure, receives the Information Meetings of Councillors records held on 7 December 2020, 10 December 2020, 11 December 2020, 15 December 2020, 16 December 2020, and 17 December 2020 as contained in (Attachment 1)

Attachments

⇩1.	Informal Meeting of Cuuncillors Record - 27 January 2021

Discussion

1. Item 19 of Council’s Governance Rule – Meeting Procedure, requires records of Information Meetings of Councillors be reported to a Council Meeting (Attachment 1) and recorded in the minutes of that meeting.

Related Council decisions

2. Not applicable

Options

3. An Information Meetings of Councillors is defined in Item 19 of the Governance Rule – Meeting Procedure. It is a meeting at which matters are considered that are intended or likely to be the subject of a Council decision or the exercise of delegated authority and which is either of the following:

· A planned or scheduled meeting that includes at least half the Councillors and at least one Council officer. These meetings do not include meetings of Councillors and Council staff that are not planned or scheduled.

· A meeting of an advisory committee where at least one Councillor is present. An advisory committee is any committee established by the Council, other than a special committee, that provides advice to the Council or to a special committee or to a member of Council staff who has been delegated a power or duty or function of the Council.

4. A record must be kept of any Information Meeting of Councillors and include the names of all Councillors and Council staff attending, the matters considered, disclosures of conflict of interest and whether a Councillor left the meeting after making a disclosure.

5. In accordance with Item 19 of the Governance Rule – Meeting Procedure, Council is required to report as soon as practicable to a Council Meeting, a record of any Information Meetings of Councillors held.

6. The recommendation contains the list of Information Meetings of Councillors records that have been submitted since the matter was last reported to Council on 25 August 2020.

Conclusion

7. It is recommended that Council receives the records of recent records of Information Meetings of Councillors as contained in this report, fulfilling Item 19 of the Governance Rule – Meeting Procedure.

Council plans and policies

8. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Ensure that Council meets its legal responsibilities and manages its risks.

Sustainability implications

9. None required.

Community engagement

10. Not applicable.

Innovation and continuous improvement

11. Not applicable.

Collaboration

12. None required.

Budget implications

13. This is a routine reporting item, the resources for which are contained in Council’s current operating budget.

Relevant law

14. Local Government Act 2020.

Regional, state and national plans and policies

15. None applicable.

Conflicts of interest

16. All officers involved in the preparation of this report have made a declaration that they do not have a conflict of interest in the subject matter of this report.

Council Meeting Agenda 27 January 2021

13. Officers' reports

CM.011/21 CEO Employment Matters Committee - Appointment of Chair

Distribution: Public

Manager: Blaga Naumoski, Executive Manager Governance, Communications and Engagement

Author: Blaga Naumoski, Executive Manager Governance, Communications and Engagement

Summary

In accordance with Section 94(1) of the Local Government Act 1989, the Council is responsible for appointing a Chief Executive Officer to implement the policy decisions and to manage the administrative functions of Council. To assist Council in fulfilling its responsibilities relating to CEO employment matters, Council has formed a CEO Employment Matters Advisory Committee (the Committee) which includes the Mayor and all Councillors as members. The Committee is governed by Terms of Reference (the ToR). Each year the membership of this committee is reviewed along with all Advisory Committees.

The ToR require the appointment of an independent chairperson to the Chief Executive Officer Employment Matters Committee, must not be a Councillor and a member of Council staff; and be suitably qualified.

Following a competitive request for quote process, it is recommended that Mr Allan Bawden be appointed to assist Nillumbik Shire Council with chairing and facilitating discussion between members of the Committee consisting of all Councillors in line with the Terms of Reference.

Recommendation

That Council:

1. Appoints Mr Allan Bawden as the Independent Chairperson and Facilitator to the CEO Employment Matters Committee.

2. Authorises the Chief Financial Officer to finalise and execute the contract documentation.

3. Requests that the Request for Quote, Quotation Evaluation Summary Report and Evaluation Scorecard remain confidential on the grounds specified in the definition of confidential information in section 3(1)(g) of the Local Government Act 2020.

Attachments

1.	Request for Quote - Allan Bawden - Confidential
2.	Quotation Evaluation Summary Report - Confidential
3.	Evaluation Scorecard - Confidential

Discussion

1. Under various provisions of the Local Government Act 1989, Council is responsible for the appointment of the CEO (Section 94(1)) and reviewing the performance of the CEO at least once each year (Section 97A(1). Sections 44 and 46 of the Local Government Act 2020 contain similar provisions and commence on 1 July 2021.

2. Council’s CEO Employment Matters Advisory Committee (the Committee) includes the Mayor and all Councillors as members. At the Extraordinary Council meeting on 24 November 2020, the Mayoral election took place along with a review of all Councillor appointments to Advisory Committees. The Mayor and all Councillors were appointed members of the Committee.

3. The Committee has the responsibility for providing advice and making recommendations to the Nillumbik Shire Council on:

· Contractual matters relating to the CEO

· The appointment of the CEO

· Remuneration and conditions of appointment of the CEO

· Extension (i.e. reappointment) of the CEO

4. A Request for Quote (RFQ) (Attachment 1) was sought from suitably experienced persons to fill the position of the Independent Chairperson and Facilitator of the Committee. The term of appointment will be for a period of two years with the option of a further two one-year term extensions by mutual consent.

5. The RFQ, Quotation Evaluation Summary Report (Attachment 2) and Evaluation Scorecard (Attachment 3) are attached as confidential documents to this report.

6. The Independent Chairperson and Facilitator of the CEO Employment Matters Advisory Committee must:

· not be a Councillor; and

· not be a member of Council staff; and

· be suitably qualified with regard to the selection criteria.

7. The following selection criteria applies to the appointment of the Independent Chairperson and Facilitator:

· A clear understanding of the objectives, roles, duties and obligations of the Chief Executive Officer and Council under the Local Government Act and all other associated legislation

· Ability to exhibit clear leadership

· Ability to work effectively with Councillors and the Chief Executive Officer

· Demonstrated human resource management skills, senior business experience and relevant qualifications

· Experience in senior management recruitment and development

· Understanding of performance management processes and procedural fairness

· Senior Level experience within a Government framework and sound knowledge of governance and legal obligations

· Previous experience working with Councillors, Executive Governance bodies or Board Members in advisory and/or facilitation roles.

8. Section 45(4) of the Local Government Act 2020 states that Councils must develop a CEO Employment and Remuneration Policy within 6 months of the commencement of this section (with the assistance of an independent, professional adviser) that:

· provides for the recruitment of a CEO;

· imposes key contract provisions, an annual review and performance monitoring; and

· caps the period of appointment at 5 years (although reappointment under a new contract is permitted).

9. The Committee to be headed by the Independent Chairperson and Facilitator, will develop a draft Chief Executive Employment and Remuneration Policy by 1 January 2022 as required by the Act.

Related Council decisions

10. Not applicable

Options

11. A Request for Quote (RFQ) for the position of Independent Chairperson and Facilitator for the CEO Employment Matters Committee were sought from six people. Due to Mr Bowden’s vast professional experience in Local Government he is considered a suitable candidate for the role.

12. It is considered that Council should appoint Mr Allan Bawden as the Committee’s inaugural Independent Chairperson and Facilitator.

Council plans and policies

13. This report directly supports the achievement of Council Plan 2017-2021 strategy:

· Maintain good governance and effective leadership.

Sustainability implications

14. Not applicable

Community engagement

15. Not applicable

Innovation and continuous improvement

16. Not applicable

Collaboration

17. Not applicable

Budget implications

18. The Executive Manager Governance, Communications and Engagement will provide support to the Committee and will, in consultation with the committee, appoint an independent consultant with suitable expertise and skill to assist with any process. The costs of an external consultant are met from the existing operating budget.

Relevant law

19. Local Government Acts 1989 and 2020.

Regional, state and national plans and policies

20. Not applicable

Conflicts of interest

21. All officers involved in the preparation of this report have made a declaration that they do not have a conflict of interest in the subject matter of this report.

Cr Natalie Duffy Edendale Ward				Cr Ben Ramcharan Sugarloaf Ward
Cr Karen Egan Bunjil Ward				Cr Frances Eyre (Deputy Mayor) Swipers Gully Ward
Cr Richard Stockman Blue Lake Ward				Cr Geoff Paine Wingrove Ward
Katia Croce Governance Lead	Blaga Naumoski Executive Manager Governance, Communications and Engagement	Cr Peter Perkins (Mayor) Ellis Ward	Carl Cowie Chief Executive Officer