Page 1

NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that an Annual General Meeting of the Devonport City Council will be held in The Bass Strait Maritime Centre, 6 Gloucester Avenue, Devonport, on Monday 28 October 2013, commencing at 6.00pm. A Notice of the meeting was published in The Advocate Newspaper on 14 and 23 October 2013. Council Minutes can be found on Council’s website www.devonport.tas.gov.au QUALIFIED PERSONS ADVICE ETC. I certify that with respect to all advice, information or recommendation provided to the Council in or with this agenda: i.

the advice, information or recommendation is given by a person who has the qualifications or experience necessary to give such advice, information or recommendation; and

ii.

where any advice is directly given by a person who does not have the required qualifications or experience that person has obtained and taken into account in that person’s general advice the advice from an appropriately qualified or experienced person.

Matthew Atkins ACTING GENERAL MANAGER


AGENDA FOR THE ANNUAL GENERAL MEETING OF DEVONPORT CITY COUNCIL TO BE HELD ON MONDAY 28 OCTOBER 2013 AT THE BASS STRAIT MARITIME CENTRE, 6 GLOUCESTER AVENUE, DEVONPORT COMMENCING AT 6.00PM Item

Page No.

1.0

APOLOGIES

2.0

LEAVE OF ABSENCE

3.0

CONFIRMATION OF MINUTES........................................................................ 3

3.1

Minutes of an Annual General Meeting held 29 October 2012 ............................................. 3

4.0

RECOMMENDATIONS OF PREVIOUS MEETING Nil

5.0

SUBMISSIONS WRITTEN AND VERBAL - ANNUAL REPORT

6.0

RECEIPT OF ANNUAL REPORT ....................................................................... 4

6.1

Annual Report 2013 (D311495) ...................................................................................................... 4


PAGE 3 Report to Annual General Meeting on 28 October 2013

Confirmati on of Minutes

3.0

CONFIRMATION OF MINUTES

Confirmati on of Minutes Annual General Meeti ng

3.1

ANNUAL GENERAL MEETING - 29 OCTOBER 2012

RECOMMENDATION That the Minutes of the Annual General Meeting held on 29 October 2012 as circulated be taken as read and confirmed.

ITEM 3.0


PAGE 4 Report to Annual General Meeting on 28 October 2013 Recei pt of Annual R eport

6.0

RECEIPT OF ANNUAL REPORT

6.1 Annual R eport 2013

6.1

ANNUAL REPORT 2013 File: 26955 D311495

RELEVANT PORTFOLIO General Manager RELEVANCE TO COUNCIL’S PLANS & POLICIES Council’s Strategic Plan 2009-2030: Strategy 5.5.1

Provide financial services to support Council's operations and meet reporting and accountability requirements

Strategy 5.5.5

Ensure operations meet or better financial targets as set in Strategic and Business Plans

PURPOSE To adopt the 2013 Annual Report.

BACKGROUND Since 2007, the Annual General Meeting has been held on a separate night to the Ordinary Council meeting and included a presentation to residents in attendance on Council’s achievements.

COMMENTARY In accordance with Section 72(1) of the Local Government Act, 1993 Council is required to prepare an Annual Report to provide a summary of Council’s activities and performance in respect of goals and objectives set for the preceding financial year. In accordance with Section 72(2)(d) and (3) Council placed advertisements in The Advocate on Monday, 14 and Wednesday, 23 October 2013 inviting submissions from the community on the report. This information was also included on the front page of the website. The Annual Report provides highlights of the Council’s achievements throughout the preceding financial year together with a performance report on each activity listed in the 2012/13 Annual Plan. As required, the Annual Financial Statements to 30 June 2013 together with the Independent Audit Report are also included. This information is provided to improve Council’s transparency and accountability to the community.

FINANCIAL IMPLICATIONS Operating Budget There is not expected to be any impact on the Councils’ operating budget as a result of this recommendation. Long Term Financial Plan The changes in this report will not have an impact on the Long Term Financial Plan.

ITEM 6.1


PAGE 5 Report to Annual General Meeting on 28 October 2013

RISK IMPLICATIONS 

Legal Council has an obligation under Section 72B of the Local Government Act, 1993 to hold their Annual General Meeting no later than 15 December in each year. Failure to do so will result in a breach of the Act.

CONCLUSION

The Annual Report provides the details of Council’s achievements in relation to the initiatives adopted in the 2012/13 Annual Plan and the Audited Financial Statements of Council for the 2012/13 financial year.

ATTACHMENTS Nil Recommendati on

RECOMMENDATION That the 2013 Annual Report be adopted.

ITEM 6.1


Page 1 of 15 Contents

MINUTES OF THE EIGHTEENTH ANNUAL GENERAL MEETING OF THE DEVONPORT CITY COUNCIL HELD IN THE COUNCIL CHAMBERS, FENTON WAY, DEVONPORT ON MONDAY, 29 OCTOBER 2012 PRESENT:

Ald S L Martin (Mayor) in the Chair Ald G B Kent (Deputy Mayor) Ald B L Cole Ald P G Hollister Ald A J Jarman Ald J T Keay Ald L M Laycock Ald L M Perry Ald A L Rockliff Ald W M Squibb Ald W P Wilson

Council Officers: General Manager, I McCallum Assistant General Manager Customers and Community, E Ewins Assistant General Manager Technical and Finance, M Atkins Executive Manager Corporate Support, S Crawford Governance Coordinator, K Hampton Finance Manager, B Smith Public:

7.0

Douglas Janney Rodney Russell Bob Vellacott Rob Atkinson Alf Mott

APOLOGIES That the apology from Rhonda Mortimer, member of the Devonport City Council Audit Committee, be noted.

8.0

LEAVE OF ABSENCE It was noted that Ald Grant Goodwin was granted Leave of Absence to the 31 October, 2012.

3.0

CONFIRMATION OF MINUTES 3.1

Annual General Meeting - 24 October 2011 Ald Cole / Kent That the minutes of the Annual General Meeting held on 24 October 2011 as circulated be taken as read and confirmed. AYES:

Aldermen Martin, Kent, Cole, Hollister, Jarman, Keay, Laycock, Perry, Rockliff, Squibb and Wilson

NOES:

Nil

Minutes of Annual General Meeting held 29 October 2012


Page 2 of 15

4.0 RECOMMENDATIONS – ANNUAL GENERAL MEETING – 24 OCTOBER 2012 It was noted there were no recommendations from the previous Annual General Meeting. The General Manager presented the highlights of the financial year.

5.0 SUBMISSIONS WRITTEN AND VERBAL - ANNUAL REPORT WRITTEN SUBMISSIONS RECEIVED PRIOR TO ANNUAL GENERAL MEETING 1.

MR DOUGLAS JANNEY – 23 WATKINSON STREET, DEVONPORT The Annual Report is short on information hence the following questions: Workforce Profile Q1

What is the Council’s: 1.1 Workforce composition? 1.2 Staff turnover percentage? 1.3 Training hours of personnel?

OH & S Q2

What is the Council’s: 2.1 Lost time Injury Frequency Rate (LTIR)? 2.2 Medical Treatment Injury Frequency Rate (MTIR)? 2.3 Absenteeism? 2.4 Workers Compensation Claims?

Q3

In requesting tenders, does the Council take into account the potential contractor’s O H & S record?

Statistics on the Transfer Station Q4

What is the: 4.1 IN aggregate tonnes recorded over the weighbridge? 4.2 OUT aggregate tonnes recorded over the weighbridge?

Sustainability Q5

What is the: 5.1 Water consumption? 5.2 Waste consumption? 5.3 Energy usage?

Joint Authorities Q6

What constitutes the Cradle Coast Waste Management Group (CCWMG)?

Capital expenditure P11 states an actual Capital Expenditure (less carryover) of $11.874m and note 22 on P31 states Capital work in progress of $12.428m some $0.581m more. Q7

What constitutes the difference between these two figures?

Policies and Procedures p34 reads about policies and procedures. There is a Policy Register which is updated on a monthly basis. P27 Mentions the Street Lighting Policy. Your letter dated 24th August 2011 stated that the majority of policies on the Council Policy register were scheduled for review in the 2012 year? Q8

Why is the Street Lighting Policy not mentioned in the list on the Council website under Plans and Policies?

Minutes of Annual General Meeting held 29 October 2012


Page 3 of 15 Q9

What are the names of the Policies reviewed?

Financial Q10 Why has expenses ($1.529m) increased at a greater rate than Revenue ($1.227m) from the 2011 year? Q11 Why no dividend from the Water Corporation? Q12 Why is the Water Corporation tax equivalent less than half of the 2011 year? Q13 Why are fines significantly less than the 2011 year? Q14 What is the definition of Consultants and Professional Services? Q15 What is the amount of outstanding rates in the bad and doubtful debts of $365K? Q16 Why has bad and doubtful debts blown out from $0 in 2008 to $365K for the 2012 year? Q17 What was the investment income of nearly $400K over budget attributed to? Response The General Manager responded: Q1 1.1

As at June 2012, staff numbers were as follows: Male Female

Full time 100 Full time 40

Part time 5 Part time 33

Casual 9 Casual 13

Of the numbers above, 6 are temporaries, or fixed term, 3 of which are male and 3 are female. General Manager Assistant General Manager Indoor Outdoor

Full time 75 Full time 65

1 2 Part time 31 Part time 7

Casual 21 Casual 1

The full time equivalent employees (FTE’s) for the entire financial year was 174.05. 1.2

12.2% was the turnover figure for the past financial year. In 2010/11, the turnover was 6%.

1.3

We do not currently record training hours for personnel.

Q2 2.1

17.57

2.2

28.11

2.3

During the 2011/12 financial year there was an average of 62 hours sick/carers leave taken per employee.

2.4

There were 13 recorded workers compensation claims during the 11/12 financial year. This is down from 17 claims in the previous financial year.

Minutes of Annual General Meeting held 29 October 2012


Page 4 of 15 Q3

Section 3.2 of Council’s Code for Tenders and Contracts states: “In practice this means that Devonport City Council will weigh up the benefits of each purchase against the costs of that purchase. In doing this we may take the following factors into consideration: -

fitness for purpose;

-

maintenance and running costs over the lifetime of the product;

-

OH&S considerations

-

Environmental considerations

-

the advantages of buying locally, e.g. shorter delivery times, local backup and servicing, and the availability of spare parts;

-

the contribution to the achievement of other Council objectives such as industry development and employment creation;

-

quality assurance and perceived level of risk;

-

the capacity of the supplier (e.g. managerial and technical abilities); and

-

disposal value.�

During evaluation we look at systems and accreditations of tenderers, ask that they produce a methodology document on how they propose to do the job; consider safety and quality performance on previous Council jobs; and check references from previous clients. Q4

Since 1st July 2010 to 30th June, 2012: -

Our weighbridge has been used to weigh onto site: 56,425 tonnes (net weight)

-

We have deposited 29,369 tonnes of waste to landfill

Advantages of the weighbridge include: -

Increased income from accurate charge of waste;

-

Internal charging for council use of Transfer Station; and

-

Accurate tracking of steel sales as all loads are now weighed on site.

Q5 5.1

Council does not have a record of its water consumption as this is now under the control of Cradle Mountain Water (CMW). CMW has been asked to provide data on the 2011/12 consumption however, this has not yet been received. It will be provided to you when it is available. However, Council did expend $153,365 with CMW for water and sewage service and consumption charges in 2011/12.

5.2

Council records show that when Kerbside recycling went to 240 litre bins in the 2009/2010 year, our annual deposits to landfill dropped by 600 tonnes, which equates directly to a saving in Dulverton Fees of some $100,000. Our deposits to landfill over the past three years have stabilised. There has been less than a 1% increase in this time. This compares well with the National and State averages which have seen, for the same period of time, increases of 7% and 4% respectively.

Minutes of Annual General Meeting held 29 October 2012


Page 5 of 15 5.3

We do not have records that indicate kilowatt consumption of electricity or other measures of energy usage such as gas and the like. Council did expend the following amounts on service and consumption charges for the 2011/12 financial year: Street Lighting General Electricity Gas Plant and fleet fuel

Q6

$721,866 $346,296 $ 75,156 $372,186

The Cradle Coast Authority in 2007 established a waste management group, in accordance with its Partnership Agreement with the State Government, to provide an integrated regional approach to waste management. The Cradle Coast Waste Management Group (CCWMG) has been structured to ensure its membership base comprises persons with suitable experience and expertise in waste management from member Councils. Membership of the group is skills-based and includes expertise from a cross disciplinary approach, including engineering, financial management, governance, environmental management and technical operations. The CCWMG does not become involved in the day-to-day activities of waste management at a local government level, rather it focuses on assisting local government in providing a consistent regional approach and is a conduit for dialogue with the State, and the other regional groups, on state-wide activities. The CCWMG manages regional waste strategy revenues (collection of the voluntary Waste Levy) and expenditures and provides the necessary administrative support and coordination of projects. Dulverton Waste Management administers the strategy and various projects associated with the strategy, through consultation through the CCWMG. CCWMG works closely with the neighbouring region’s corresponding organisation, the Northern Tasmanian Waste Management Group (NTWMG), in the development and delivery of waste management programs and services and in the sharing of resources and consultancy services. Members of CCWMG are: Gerald Monson (Chair), Roger Jaensch, Mat Greskie, Matthew Atkins, Rowan Sharman, Luke Sayer and Tim Wilson.

Q7

The explanation to the difference in the Capital Expenditure (less carryover) on page 11 and the Capital Works in progress given on page 31 is that the two values cannot be compared and are not directly related. The work in progress (WIP) is a balance sheet figure which contains expenditures that have not been brought to account in Council’s Asset Register from the current and previous financial years, and the capital expenditure is the works undertaken within the current financial year only.

Q8

You will note that the progress comment in relation to the Street Lighting Policy contains “anticipate stakeholder consultation and policy development/adoption will be completed in 2012/13”. As the Street Lighting Policy has not yet been adopted by Council, it is not on the policy list contained on the Council website.

Minutes of Annual General Meeting held 29 October 2012


Page 6 of 15 Q9

Council has two dedicated policy registers. One register is for Council Policies. These are defined as policies which assist with the delivery of local governance to the community within the jurisdiction of the elected members of Council. The second register is for Management policies, which are defined as those policies that provide guidance to staff in dealing consistently with organisational matters within the jurisdiction of the General Manager. There are currently 18 policies on the Council Policy register. Those that have been developed or reviewed in the past financial year include Payment of Aldermen’s Allowances, Expenses and Provision of Facilities Policy; Rates and Charges Policy; Code of Tenders and Contracts; Investment Policy; Credit Card Policy; Street Trading Policy; Tree Policy; Asset Management Policy; and Boundary Fence Policy.

Q10 Expenses have increased by more than the revenue increase between 2011 and 2012 for the following reasons: -

Investment revenue from Cradle Mountain Water was down $519,000 on the prior year. This was outside of Council’s control.

-

Interest income has reduced by $193,000 due to declining interest rates and lower available funds to invest between years.

-

$853,000 increase in depreciation expense as a result of increased capitalisation of new assets in recent years (e.g. Formby Road, the Mersey Bluff and Surf Club developments, and the like.)

-

$225,000 increase in bad debts due to a change in accounting practice for infringement debtors (this impact is a one-off for 2012).

-

$162,000 increase in utilities costs (electricity and water charges in particular).

-

Employee costs are up $353,000 owing in large part to the fact that a number of capital projects are to be carried over to 2012/2013 and the wages not being able to be brought to account. Simply, this means that some labour costs were not charged to the building of assets but were charged to the repair and maintenance of those assets resulting in higher staffing costs reflected in the Council’s Operational result.

Q11 The amount of dividends received from Cradle Mountain Water (CMW) is linked to their profitability and therefore ability to pay dividends. Councils cannot control this income, and are not guaranteed dividends in any given year. CMW did however pay Guarantee Fees and Tax Equivalents during the year. Q12 Tax equivalents are related to profitability. The 2012 profit of CMW was a significant reduction on the 2011 year, therefore less tax was payable. Q13 Included in fines for the prior year were amounts recovered from the Monetary Penalties Enforcement Service (MPES) from long outstanding and unpaid fines previously written off. In 2012, this revenue was separated from current year fines, and included as Sundry Income, as this income related to prior years and is essentially bad debts recovered. This amount was $136,000 for 2012. Q14 Professional Services are represented by Accounting, Legal and Valuation services. Consultants Services relate to any other services acquired for the Minutes of Annual General Meeting held 29 October 2012


Page 7 of 15 provision of specialist advice that Council does not possess within its organisation. Q15 Nil. Council does not write off any rates balances as they are secured by the property in question, and can be fully recovered upon sale of the property. Q16 An improvement in accounting practices has brought about better accountability for the treatment of debts which are deemed to be uncollectable, or are outside of Council’s control to recover. The entire balance of bad debts relates to infringement fines not paid (parking, animals, health etc). These are forwarded to the MPES to collect on behalf of Council, but history has shown that the value of unpaid fines is increasing at a faster rate than the recoveries. As such, Council has reviewed the way it accounts for this income, and has determined it appropriate to write these amounts off in its accounting records when forwarded to MPES, as this provides a more conservative position of the debtor balance than if the entire debt is shown which may never be recovered. Any amounts recovered from MPES are treated as an offset to the bad debts figure / bad debts recovered. Q17 The budget for investment income anticipated that cash balances would be run down due to the $15M capital program, and also a decline in interest rates. During the year, better than anticipated interest rates were achieved, and along with careful cash management, and not spending $3.3M of the capital program during the year intended, meant that additional interest returns were achieved from the higher available cash balances. 2.

MR BOB VELLACOTT – 11 COCKER PLACE, DEVONPORT Q1

I refer to the report in The Advocate 19th October, 2012. It states “The Council had a win on investment revenue which was nearly $400,000 over the budget.” Can an explanation be given how this very creditable amount was achieved?

Q2

Fuel and Power Efficiency Program 1.1

How many passenger vehicles does Council own?

1.2

What progress has been made in converting the fleet to achieve best fuel efficiency?

1.3

What progress has been made in regards to more efficient power usage in Council buildings and street lighting?

Response The General Manager responded: Q1

The budget for investment income anticipated that cash balances would be run down due to the $15M capital program, and also a decline in interest rates. During the year, better than anticipated interest rates were achieved, and along with careful cash management, and not spending $3.3M of the capital program during the year intended, meant that additional interest returns were achieved from the higher available cash balances.

Q2

2.1

Council currently has 55 light fleet vehicles, 24 of which are sedans or wagons.

Minutes of Annual General Meeting held 29 October 2012


Page 8 of 15 2.2

In early 2010, Council revised its vehicle policy to cater for 4 cylinder vehicles and this had resulted in an annual reduction of over 20,000 litres of fuel, which equates to over $30,000 annually.

2.3

Council has commenced converting all lighting in the Council offices and facilities to energy efficient globes etc, as evidenced in the Council Chambers. The street lighting is not within Council’s control and any decisions in relation to energy efficient lights for street lighting is controlled by Aurora.

VERBAL SUBMISSIONS AT THE ANNUAL GENERAL MEETING 2.

MR BOB VELLACOTT – 11 COCKER PLACE, DEVONPORT Firstly, thank you for your independent representation at this table. I note unfortunately that many Councils have been “infiltrated’ and in some, are being dominated by political parties. I hope Mayor this Council remains one free of political intrusion and influence. I refer to the Annual Report 2012. Section 1 Page 22 re Cradle Coast Authority report, in particular, paragraph 6 approximately half way down the page, among other things it mentions: “$20,000 was secured for strategies to improve the well being of lesbian, gay, bisexual, transgender and intersex people in our region”. I question why not every other ‘disadvantaged group’? I consider this and other social problems a dangerous road to go down for Local Government. Is not this sort of social engineering best left to State and Federal Government’s Health Departments etc? Does that mean/imply that Cradle Coast Authority in conjunction with Councils will take upon in the future a plethora of other social problems to fix, such as drug and alcohol, homeless people, domestic violence etc. All very worthy causes but what are the limits of what is being foisted onto Local Government. How much can Councils properly cope with? As Devonport is a major player in the Cradle Coast Authority, this must surely be of concern to become directly involved in an ever increasing range of issues and duplication of services. Response The Mayor responded that the Council is interested in the health and well being of all its residents.

6.0 RECEIPT OF ANNUAL REPORT 6.1

ANNUAL REPORT 2012 (D281282) Ald Kent / Rockliff That the 2012 Annual Report be adopted. AYES:

Aldermen Martin, Kent, Cole, Hollister, Jarman, Keay, Laycock, Perry, Rockliff, Squibb and Wilson

NOES:

Nil

Minutes of Annual General Meeting held 29 October 2012


Page 9 of 15 There being no further business the meeting was closed at 6.57 p.m. Confirmed

Chairman

Minutes of Annual General Meeting held 29 October 2012

Agenda agm 28 october 2013  
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