Agenda annual general meeting 13 october 2014

NOTTICE OF AN NNUAL GEN NERAL MEETTING hereby giv ven that the e Annual G General Meeting of the t Devon port City Council C willl Notice is h be held iin the Easst Devonp port Recrea ation and Function Centre, C Caroline Street, Eastt Devonporrt on Mond day 13 Octtober 2014 4, commen ncing at 7:0 00pm. of the mee eting was published p iin The Advocate New wspaper o n Saturday y, 13 and A Notice o Wednesday, 24 Sep ptember 20 014.

ALIFIED PERS SONS QUA dance with h Section 65 of the Local Go overnmentt Act 19933, I confirm m that the e In accord reports in this agen nda conta ain advice e, informattion and recommen ndations given by a person w who has the t qualifications o or experie ence nece essary to give such advice,, informatio on or recom mmendatio on.

Paul Westt GENERAL MANAGER R 9 Octoberr 2014

AGENDA FOR THE ANNUAL GENERAL MEETING OF DEVONPORT CITY COUNCIL HELD ON MONDAY 13 OCTOBER 2014 AT THE EAST DEVONPORT RECREATION AND FUNCTION CENTRE, CAROLINE STREET, EAST DEVONPORT AT 7:00PM Item

1.0

Page No.

APOLOGIES

2.0

CONFIRMATION OF MINUTES........................................................................ 4

2.1

Minutes of an Annual General Meeting held 28 October 2013 ............................................. 4

3.0

RECEIPT OF ANNUAL REPORT ....................................................................... 5

3.1

Annual Report 2014 (D343854) ...................................................................................................... 5

4.0

NOTICES OF MOTION ................................................................................. 5

4.1

Monthly Financial Report - LIVING CITY - Notice of Motion - Mr R B Vellacott (D343797) ........................................................................................................................................ 16

5.0

PUBLIC QUESTIONS/COMMENTS ................................................................. 17

6.0

CLOSURE ............................................................................................... 17

PAGE 4 Report to annual general meeting on 13 October 2014

Agenda of a meeting of the Devonport City Council’s Annual General Meeting to be held at the East Devonport Recreation and Function Centre, Caroline Street, East Devonport on Monday, 13 October 2014 commencing at 7:00pm.

PRESENT Present Chairman

Apology

Ald S L Martin Ald G B Kent Ald B L Cole Ald G F Goodwin 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

IN ATTENDANCE Members of the Public: Council Officers:

1.0 APOLOGIES

The following apology was received for the meeting.

2.0

CONFIRMATION OF MINUTES

2.1

ANNUAL GENERAL MEETING - 28 OCTOBER 2013

The minutes of the Annual General Meeting which was held at the Bass Strait Maritime Centre on 28 October 2013 are attached at the end of this agenda.

RECOMMENDATION That the minutes of the Annual General Meeting held at the Bass Strait Maritime Centre on 28 October 2013 copies of which have been circulated be received and confirmed.

ITEM 2.0

PAGE 5 Report to annual general meeting on 13 October 2014

3.0

RECEIPT OF ANNUAL REPORT

3.1

ANNUAL REPORT 2014 File: 26955 D343854

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

SUMMARY This report is provided to introduce to Council and the community the Devonport City Council Annual Report for the year ended 30 June 2014.

BACKGROUND In accordance with Section 72(1) of the Local Government Act 1993 Council is required to prepare an Annual Report which provides a summary of Council’s activities and performance in respect of goals and objectives set for the preceding financial year.

STATUTORY REQUIREMENTS The requirement for Council to prepare an Annual Report and to conduct an Annual General Meeting is prescribed under the Local Government Act 1993.

In accordance with Section 72(2)(d) and (3) Council placed advertisements in the Advocate on Saturday, 13 and Wednesday, 24 September 2014 notifying of the conduct of the Annual General Meeting on Monday 13 October 2014 and inviting submissions from the community on the Annual Report. This information was also included on the front page of the Council’s website.

DISCUSSION The Annual Report provides highlights of the Council’s achievements throughout the year together with a performance report on activities listed in the 2013/14 Annual Plan.

As required, the Annual Financial Report for the year ended 30 June 2014, together with the Independent Audit Report are also included.

Council was required to invite submission on the Annual Report and is also required to accept motions from the floor at the Annual General Meeting.

At the close of submission on 7 October 2014 Council had received one (1) submission from Mr Douglas Janney, 23 Watkinson Street, Devonport (refer attachment). Mr Janney listed a number of questions in relation to the Annual Report to which responses have been prepared as follows:

ITEM 3.1

PAGE 6 Report to annual general meeting on 13 October 2014

Workforce Profile 1.

What is the Council’s: 1.1

Workforce composition?

Response During the period 1 July 2013 to 30 June 2014 the staffing composition at Council was as follows: Category Full-time Part-time Casual Temporary Male 98 8 8 1 Female 41 31 13 2 TOTAL 139 39 21 3 General Manager 1 Assistant General Managers 2 Office 65 16 2 2 Outside 64 7 2 Facilities/Satellite Services 7 16 17 1 TOTAL 139 39 21 3 (Note: in some cases these figures includes positions that were held for less than the full year) 1.2

Annual cost of personnel training?

Response During the 2013/14 financial year Council spent $126,048 on training and conference attendance for staff. This equates to approximately $790 per fulltime equivalent employee. It is worth noting that Council during the year also received $14,236 in training incentive income.

OH&S 2.

What is the Council’s: 2.1 Lost Time Injury Frequency Rate?

Response The Lost Time Injury Frequency Rate (LTIFR) for the 2013/14 year was 32. The LTIFR was based on 8 Lost Time Injury claims.

2.2

Medical Treatment Injury Frequency Rate?

Response The Medical Treatment Injury Frequency Rate for the 2013/14 year was 136.35.

This figure was calculated based on 34 reported incidents.

2.3

Absenteeism?

Response During the 2013/14 financial year there was an average of 83.08 hours sick/carers leave taken per full-time equivalent employee.

2.4

Workers Compensation Claims?

Response There were eight (8) workers compensation claims submitted for the 2013/14 reporting year. On page 84 of the Governance and Finance Section 23 Committee agenda for the meeting on 28 July 2013 a table was provided at

ITEM 3.1

PAGE 7 Report to annual general meeting on 13 October 2014

item 5.4 itemising workers compensation claims over the past five financial years as follows: Policy Year ending 30 June

Number of Workers Compensation Claims lodged with Council’s Insurer

Gross incurred Insurer

2014

8 claims

$ 20,368.14

2013*

13 claims

$201,191.96

2012

13 claims

$140,681.41

2011

17 claims

$395,319.38

2010

17 claims

$ 64,609.24

by

value the

*A claim remains open from 2013 Sustainability (Goal 1 of the Strategic Plan) 3.

What is the: 3.1

Water consumption?

Response For the year ended 30 June 2014 Council paid TasWater $282,118 for water and sewerage charges. This amount included both service and usage charges.

Information relating to the actual water consumption is not readily available.

The amount paid to TasWater is $85,447 more than the previous financial year.

The accounting and charging systems for TasWater continues to mature and a number of connections not previously recorded were identified and charged for the first time in 2013/14. The major contributing factors to the overall increase were:     

3.2

Property Management - $38K - predominately properties acquired as part of the LIVING CITY project.

Sports Grounds - $12K - new service connections identified and charged for the first time during the year.

Cemetery - $6K - new service connections identified and charged for the first time during the year.

Aquatic Centre - $10K - recommenced operations during the financial year.

Fenton Villas - $17K - Accounts were not paid nor accrued correctly in the 2012/13 financial year resulting in payment being recorded in the 2013/14 financial year.

Waste generation?

Response Source

Tonnes

Household garbage collections

6,832 tonnes

Commercial garbage collection

1,708 tonnes

Household recycling collection

1,895 tonnes

Spreyton Waste Transfer Station – rubbish

ITEM 3.1

13,701 tonnes

PAGE 8 Report to annual general meeting on 13 October 2014

3.3

Energy usage?

Response As outlined on page 18 of the Annual Report the energy consumed by Council for the financial year was 7,271 GJ. 3.4

Copy paper usage?

Response During the year Council purchased 1,200 reams of copy paper. Allowing for stock on hand at 30 June approximately 1,000 reams of paper was used during the year.

4.

Quick Stats (page 18) 4.1

Immunisations administrated have increased by 179% year on year. What have been the contributing factors to this increase?

Response There has been an increase in the number of immunisations as Council, under the instruction of State Health, has been conducting a catch-up program to ensure immunisations meet the requirements of the National Immunisation Schedule. This has meant that Council has undertaken multiple widespread immunisation programs in schools, for both boys and girls in Grades 7, 9 and 10 as part of the catch up. After the completion of this year’s immunisations, the schedule will then revert back to providing immunisations in Grade 7 only.

4.2

Energy consumed has increased by nearly 134%. Fuels on the other hand have decreased.

So why the significant increase for energy consumption?

Response As outlined on page 18 of the Annual Report the energy consumed by Council during the 2013/14 financial year was 7,271 GJ compared with 5,429 GJ the preceding year. This equates to an increase of energy usage of 1,842 GJ (33.93% not the 134% referred to in your letter).

The increase is predominately associated with the reopening of the Devonport Aquatic Centre in January 2014, the first full year of operations at the refurbished Bass Strait Maritime Centre and the commissioning of the new Art Storage Facility. The increase in energy consumed at these facilities totals 1,868 GJ as follows: Aquatic Centre 723 GJ in electricity and 791 GJ in gas; Bass Strait Maritime Centre 175 GJ; and Art Storage Facility 179 GJ. Across all Council facilities there were smaller variances, both positive and negative from the previous year.

5.

LIVING CITY (page 41) – this is a plan that will take some years to reach its potential. Over many years there has been media articles and talk in some places of Councils amalgamating. So far there has only been talk but amalgamations will happen and will be forced on Councils!

5.1

So how has the Council factored Council amalgamation into how the Council Chambers will be able to be modified when the amalgamations happen?

Response At present the Council has only adopted the broad Master Plan associated with LIVING CITY. The detailed planning of the actual buildings is now ITEM 3.1

PAGE 9 Report to annual general meeting on 13 October 2014

underway. The eventual layout and services that may be delivered from the new Civic Building will be part of this planning work. Any design will be based on modern architectural practices which will ensure that the eventual building will have a flexible and easily adaptable floor plan capable of multi-purpose use if necessary in the future.

6.

Tenders & Contracting (page 41) 6.1

On taking on Project and Infrastructure Holdings Pty Ltd for the LIVING CITY consulting services how did the Council determine that the said organisation was the one to take on from all those on the short list?

Response Given the speciality nature of the services required, and the difficulty in defining the project scope, Council by absolute majority determined to appoint the P+i Group without undertaking a public tender process in June 2013. P+i Group were identified following extensive research nationally by Council officers, and based on recommendations provided by independent sources.

P+i are a specialist consultancy firm operating out of Sydney and the lead consultant on the LIVING CITY project is Mr Grant Hirst. Mr Hirst has had an extensive career in the retail property and legal sectors of Australia and New Zealand, having held senior executive roles with major corporations in the retail and shopping centre industry for over 25 years.

Given the complexities involved in LIVING CITY, specialised advice and skills particularly in the development and retail fields are considered essential to minimise Council’s risks. Council has been more than satisfied with the work which has been undertaken by the P+i Group to date and has recently engaged them to continue to assist it with the LIVING CITY project.

Financial Statements 7.

Note 4 – Fees and Charges (page 20) 7.1

Admission Charges up 209% (a)

Why?

Response The actual difference in Admission Charges year on year was an increase of $124K – up 109% not the 209% mentioned in your letter. The main contributing factors were:    (b)

Bass Strait Maritime Centre (BSMC) Admission Charges of $37K (first full year of operations was 2013/14) Julie Burgess Admission Charges of $13K (first full year of operations was 2013/14) $68K related to income for Devonport Jazz. In previous years the Admission Charges for Jazz had been shown as Sale of Goods.

What are Admission charges?

Response Admission Charges are those where people traditionally pay a fee to attend a venue or show. Admission Charges are paid at the Bass Strait Maritime Centre, Julie Burgess and shows sponsored by Council at the Devonport Entertainment and Convention Centre (DECC). The total Admission Charges in 2013/14 was $237K made up of the following: ITEM 3.1

PAGE 10 Report to annual general meeting on 13 October 2014

    7.2

DECC Events BSMC Julie Burgess

$82K $68K $58K $29K

Facility hire down to 83% of 2013 taking. Why?

Response Facility Hire has reduced by $49K year on year – down approximately 20%. With the opening of the Devonport Aquatic Centre, Council took the decision to close the gymnasium at the Devonport Recreation Centre therefore it no longer derives an income stream for this particular activity.

7.3

Fines down to 90% of 2013 – Why?

Response Fines revenue has reduced from $779K in 2013 to $701K in 2014. This reduction of $78K is offset in part by the increase in parking fees paid $1,448K in 2013 to $1,508K in 2014 – an increase of $60K. However, a significant contributing factor was a reduction in animal infringements – Council in 2012/13 undertook a “door-to-door” check of dog registrations, resulting in additional fines revenue for unregistered animals.

7.4

Property lease & rental up by 255% - Why?

Response During the year Council acquired a number of strategic properties associated with the LIVING CITY project. A number of these buildings currently have tenants or lease agreements in place for which Council derives an income source. Properties acquired which continue to provide rental income for Council includes:   

21 Fenton Way (former Harvey Norman) 20-26 Best Street (Harris Scarfe) 6-10 Steele Street (Car Park and Building)

7.5

Waste management fees – presumably this is the fee collected to enter the Transfer Station. From 2008/2009 to 2013/2014 “Waste Disposal Charges” specifically the charge for “cars/station wagons (up to 0.5M3)” doubled; which amounts to an average increase of 14.87% p.a. This is a very steep annual increase over this period of time and it is continuing at about the same rate for the 2014/2015 year. Why is the 2014 year figure down to 73.3% of 2013?

Response Revenue received at the Waste Transfer Station is directly impacted depending on the amount of material/loads being deposited. The charge for ‘cars/station wagons (up to 0.5m3) has been set at $7 (GST inclusive) for the 2014/15 financial year – an increase of $1 from that charged the previous year. Unfortunately the cost of maintaining the Transfer Station and the disposal of material at Dulverton Landfill Site requires Council to charge fees that are reflective of the actual costs incurred.

The reduction in fees paid at the Transfer Station is attributed in part due to other alternatives for the disposal of non-landfill waste (concrete and builders rubble), people being smarter and delivering smaller loads which are charged on a per load basis rather than in larger loads which are charged on a per ITEM 3.1

PAGE 11 Report to annual general meeting on 13 October 2014

tonne basis, Council has also seen a shift in the amount of waste being placed in the household wheelie bin collection service with a corresponding reduction in smaller loads of rubbish being delivered to the Transfer Station.

8.

Note 7 – Investment revenue from TasWater (page 22) 8.1

Why are the 3 items significantly different to the 2013 figures?

Response When Cradle Mountain Water was established there was a guarantee that councils most impacted by the water and sewerage reforms would receive priority dividends for the first three years of operations, before reverting to an equity based distribution. Priority dividends ceased during 2013. TasWater, created by amalgamating the former three water and sewerage corporations and the common service provider, OnStream commenced operating from 1 July 2013. The payments received are based on Council’s equity share in the new TasWater entity.

9.

Note 26 - Capital and capital reserves (page 31) 9.1

Why has the Stormwater $ gone down by such a huge amount?

Response Council is required to review the valuation basis of its assets on a regular cycle.

During the 2013/14 financial year Council undertook the periodic review of its stormwater assets. As a result the value of the stormwater assets were adjusted downwards to reflect the current cost of replacement. The replacement costs used were based on actual projects and modern construction methods.

10.

Note 37 – Controlling Authority transactions (page 45) 10.1 Fenton Villas lost some $75K. This is not an activity that all the community can benefit from.

As well it is a commercial operation (renting) competing with others in the rental field.

When will the Council disentangle itself from this loss making and noncore activity?

Response Your comments in relation to Fenton Villas are noted. Council is currently reviewing a number of its activities, Fenton Villas included. Fenton Villas do provide a low cost housing option for a number of people who might otherwise struggle to find accommodation.

The 2014/15 budget shows some improvement, with an expected operating deficit of $47K which includes depreciation of $22K and Council rates of $12K.

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 2013/14 Annual Plan and the Audited Financial Report of Council for the 2013/14 financial year.

ITEM 3.1

PAGE 12 Report to annual general meeting on 13 October 2014

ATTACHMENTS 1.

Douglas Janney - Submission - 2014 Annual Report

RECOMMENDATION That the 2014 Devonport City Council Annual Report be received and adopted.

Endorsed By: Position:

Paul West General Manager

ITEM 3.1

PAGE 13 Douglas D Jann ney - Submisssion - 2014 Annual A Reportt

ATTTACHMENT [1 1]

ITEM 3.1

PAGE 14 Douglas D Jann ney - Submisssion - 2014 Annual A Reportt

ATTTACHMENT [1 1]

ITEM 3.1

PAGE 15 Douglas D Jann ney - Submisssion - 2014 Annual Reportt

ATTTACHMENT [1 1]

ITEM 3.1

PAGE 16 Report to annual general meeting on 13 October 2014

4.0

NOTICES OF MOTION

4.1

MONTHLY FINANCIAL REPORT - LIVING CITY - NOTICE OF MOTION - MR R B VELLACOTT File: 11323 D343797

A Notice of Motion can be submitted to an Annual General Meeting by any elector. Only electors in the municipal area are entitled to vote at the Annual General Meeting. A motion at an Annual General Meeting is passed by a majority of votes taken by a show of hands. A motion passed at an Annual General Meeting is to be considered at the next meeting of the Council.

MOTION

“That ratepayers here present request Council to include in the agenda each month a basic, simplified and easily understood financial report on the income and expenses relevant to the LIVING CITY project; each report to include the ongoing overall total cost and income so far and the transactions of the previous month.”

SUPPORTING COMMENTS The provision of such an easily understood report/statement gives management the opportunity to provide not only existing but any new Aldermen and also ratepayers with a readily available and concise account of what the LIVING CITY project is costing and its ongoing benefits. Most importantly among other things it will show real transparency and help eliminate rumour and innuendo in regards to such a major undertaking.

OFFICER’S COMMENTS Detailed reporting relating to the LIVING CITY project will be provided to Council on a regular basis (at least quarterly or more frequent when necessary). The financial aspects of the project will be included in the reporting where it is not in breach of confidential or commercial in confidence arrangements.

Any contracts entered into by Council above the statutory limit (currently $100,000) are required to be reported within the Annual Report.

Community engagement regarding LIVING CITY has been a priority of Council’s and the intention is to continue to ensure the community are well informed on all aspects of the project. A website dedicated to LIVING CITY has been established to ensure the community have easy access to all the latest information on the project.

ITEM 4.1

PAGE 17 Report to annual general meeting on 13 October 2014

5.0 PUBLIC QUESTIONS/COMMENTS

6.0 CLOSURE There being no further business the Chairman declared the meeting closed at

ITEM 5.0

pm.

Page 1 of 26 MINUTES OF THE NINETEENTH ANNUAL GENERAL MEETING OF THE DEVONPORT CITY COUNCIL HELD IN THE BASS STRAIT MARITIME CENTRE, 6 GLOUCESTER AVENUE, DEVONPORT ON MONDAY, 28 OCTOBER 2013 COMMENCING AT 6.00PM PRESENT:

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

Council Officers: Acting General Manager, M Atkins Assistant General Manager Customers and Community, E Ewins Executive Manager Corporate Support, S Crawford Governance Coordinator, K Hampton Public:

3.0

Karen Stone Peter Schulze David Wallace Ros Wallace Doug Janney Joan Andrews Lester Jackson Jenny Jackson Rodney Russell Kate Beer Jess Tavner

Kylie Lunson Alida Beattie Peter Tuson Brian May Kym Peebles Jamie Goodwin Vanessa Goodwin Bruce Beattie Andrew Rundle Margaret Griggs

APOLOGIES The apology received from Ald L M Perry for tonight’s meeting was received and noted.

Apologies were also received from: Inspector Adrian Shadbolt, Warren Woodberry, Vanessa Astell, Robyn Woolsey, Simon Eustace, Bruce Harpley, Carol Knight, Debbie Mason, Wayne McCall, Dunja Rmandic, Chris Wools-Cobb and Clyde Eastaugh.

4.0

LEAVE OF ABSENCE There were no Leave of Absences.

5.0

CONFIRMATION OF MINUTES 3.1

ANNUAL GENERAL MEETING - 29 OCTOBER 2012 RESOLUTION Ald Cole / Rockliff That the Minutes of the Annual General Meeting held on 29 October 2012 as circulated be taken as read and confirmed.

Minutes of Annual General Meeting held 28 October 2013

Page 2 of 26 AYES:

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

NOES:

Nil

4.0 RECOMMENDATIONS OF PREVIOUS MEETING Nil

5.0 SUBMISSIONS WRITTEN AND VERBAL - ANNUAL REPORT WRITTEN SUBMISSIONS RECEIVED PRIOR TO ANNUAL GENERAL MEETING MR PETER SCHULZE - 6 ENDERLY COURT, AMBLESIDE DEVONPORT CITY COUNCIL ANNUAL REPORT 2013 Preliminary: This submission is made as a result of many comments made to me from numerous ratepayers and generally reflects their feelings and concerns as well of course my own.

Councillors Allowances: The allowances together with expenses add up to about $313,000. This amount is considered excessive by most ratepayers. Smaller Councils pay much lower amounts and in those Councils the Mayor and Councillors do just as much work and are just as competent.

Allowances were once based on total council revenue however were there commensurate reductions when water and sewerage services were removed from council’s responsibility?

Borrowings: These increased from $8.533M in 2012 to $19.184M this year. This is excessive and debt is now 54% of annual income.

Assets: Assets are shown as $598M with Liabilities as only $19.185M indicating high equity however most of the Assets not realizable (roads, storm water etc). The Financial Liabilities are greater than Financial Assets. For a private company this could mean that they could be placed into administration.

“Living City”: An opened ended consultancy has been let without calling tenders and no cost estimate has been given as to what this cost may ultimately total. Most ratepayers I have spoken to are not happy with the plan. How many made submissions? The online facility to comment on the plan was made difficult by the registration requirement.

The plan to restructure the old CBD as the main shopping area is not economically feasible, there is not enough room for all businesses, the cost would be excessive and many character buildings would have to be destroyed. Coles and Woolworths are too far away from the CBD for most people to walk, and the existing sites are becoming too small. The major outlets are now at Stoney Rise add to the fragmentation of Devonport’s shops. It is too late now to “unscramble the egg”. The living city plan appears to be promoted by business interests to enhance the value of CBD properties and gain work for contractors. The contribution to the plan required from ratepayers has not been made clear. Many ratepayers are unhappy about building new council offices. The current offices are in good order and with the removal of water and sewerage responsibilities there should be more than adequate room.

Bad planning of the past has denied ratepayers a comprehensive shopping village as is the usual solution to growing rural cities around Australia. Such shopping forums not only contain the full range of shops and super markets but services such as Minutes of Annual General Meeting held 28 October 2013

Page 3 of 26 doctors, post offices, hair dressers and the like but are all are under cover and have ample free parking. To resurrect the old Rooke Street centre is as impractical as it would be resurrecting Burke St Mall in Melbourne. There are some values for the fragmented nature of Devonport’s shops on that it eases congestion and avoids having to build large multi storey parking buildings.

Purchase of Business Properties not Central to Council Needs: The acquisition of 5 properties is reported without stating their size, cost or what they are to be used for (with the exception of the old Police Station.) Local Government has a poor record when it comes to setting up and operating business enterprises. Such activities are not central to their responsibilities and should be avoided.

The retiring General Manager recently expressed concern about the Councils Code of Conduct stating that rules on pecuniary interest and conflict of interest need to be strengthened. One would assume that his concerns arose from decisions made by the Devonport Council during his time there. Would those concerns relate to Councillors who have business interests in the town participating in decisions relating to the business developments in the town?

Reporting on Developments: Ratepayers are interested in the cost and effectiveness of specific projects for example the Bluff, the Maritime Museum and the Julie Burgess.

With the development at the Bluff the Report lists an expenditure of $122,216 at the Bluff Restaurant without an explanation why that was so. How does that cost relate to the 2013-14 estimate of $255,258 in the capital works program. With all such projects it would be helpful if Council would make public the business plan with the full cost estimates and provide a review of such plans where there are any deviations from it.

Subsidies for Industry: Councils generally subsidize the tourist industry and generally ignore other industries. Before any industry is subsidized cost benefits studies should be done for all industries before any decisions are made. The Devonport Council subsidizes the tourist industry in many ways, including the Maritime Museum the Visitors Centre and through the Cradle Coast authority. Tourism is generally a subeconomic industry in that the subsidies provided by Federal, State and Local Governments are greater than the additional revenue generated by that industry.

Consultancies: A list of all consultancies entered into should be in the annual report showing the cost of each and details of the work carried out.

Response The Mayor read Council’s letter of response as below: “SUBMISSION - ANNUAL REPORT 2013 I refer to your submission received and dated 28 October, 2013 and make the following comments: Councillors Allowance: Mayor, Deputy Mayor and Aldermen allowances are determined and set by the Local Government Division, Department of Premier and Cabinet and are adjusted annually by an inflationary factor. Attached is a copy of the Department’s newsletter relating to allowances for your information.

Borrowings: The four properties purchased during the 2012/13 year in relation to LIVING CITY have been funded by additional borrowings of $7,600,000. These properties have a net positive impact on Council’s Operating Position as the rent exceeds the interest expense and other holding costs. For the 2013/14 year this positive impact is estimated to be in excess of $100,000.

Minutes of Annual General Meeting held 28 October 2013

Page 4 of 26 Council has borrowed $4.0 million to fund the new Indoor Aquatic Centre which has been factored into all business planning for the new facility.

Assets: While we acknowledge Council, like most public sector organisations, own assets which may not be easily realised, we disagree with your statement that the organisation’s financial liabilities exceed the financial assets. Excluding the road and stormwater asset classes, Council still hold over $200 million in other assets.

LIVING CITY: Your comments are noted and I advise that the registration requirement for consultation on the plan was removed within the first week of the consultation period to assist with ease of response. As well as the online facility to provide consultation, 8 listening posts were held throughout the municipality (including one in Kentish), Council received 1039 surveys and many written responses as well as telephone conversations.

The community consultation was the biggest ever consultation held by this Council for a project. It is noted in excess of 80% of respondents ‘agreed’ or ‘strongly agreed’ with the principles of the LIVING CITY project and it was based on this support that Council proceeded with the proposal.

Purchase of business properties not central to Council needs: The purchase of the five properties were strategic purchases to facilitate the LIVING CITY project.

Reporting on developments: Council’s financial reports are included in the monthly Council Meeting agenda with a Capital Works Program report also being presented each month. This shows variations between the actual capital expenditure and the budgeted amount.

It is noted that the Council’s Annual Plan and Estimates for 2013/14 included a “Service Unit Summary Report” which outlined the income and expenses for Bass Strait Maritime Centre and Julie Burgess. Actual versus budget figures for each service will be included in the 2013/14 Annual Report.

Subsidies for Industry: Your comments are noted.

Consultancies: Your comment is noted. As required by the Local Government Act, 1993, a list of all tenders and contracts entered into are listed on page 56 and 57 of the Annual Report. This includes consultancies.

I trust this response answers your queries. Thank you for your interest in Council’s business.”

MR DOUGLAS JANNEY - 23 WATKINSON STREET, DEVONPORT Questions - Annual Report 2013 The Annual Report is short on information hence the following questions: Workforce Profile 1.

What is the Council’s:1.1. Workforce composition (X indicates a number is requested)?-

Minutes of Annual General Meeting held 28 October 2013

Page 5 of 26 Category Male Female GM AGM’s Office Outside

Full Time X X X X X X

FTE

Part time X X

Casual X X

Temporary X X

X X

X X

X X

X

1.2. Staff turnover percentage? How does this compare to other Tasmanian Councils?

1.3. Annual cost of personnel training?

OH&S 2.

What is the Council’s:2.1. LTIR? 2.2. MTIR? 2.3. Absenteeism?

2.4. Workers Compensation Claims?

Statistics on the Transfer Station 3.

What is the: 3.1. IN aggregate tonnes recorded over the weighbridge?

3.2. OUT aggregate tonnes recorded over the weighbridge?

Sustainability (Goal 1 of the Strategic Plan Summary p13 & p25) 4.

What is the:4.1. Water consumption?

4.2. Waste generation? This should also indicate the recycled (yellow lid bins), tonnage.

4.3. Energy usage?

4.4. Copy Paper usage?

5.

(P36) Street Lighting Policy. I wrote a letter to the Council (previous Mayor) on the 9th May 2010 about this matter. The April 2013 Agenda in the Annual Plan progress report listed this matter for completion at the 30/06/2013. It is now going to take another year. So much for updating policies on a regular basis. Why has this matter got lost?

FINANCIAL 6.

(P2) “Non Current Assets - “Property, plant and equipment” Note 21 for Roads has a revaluation amount of $53.819m as against the 2012 amount of $3.826m. This seems to be an excessive amount despite what the note on p26 (vi) states. Please elaborate. (P18) 4 Fees and Charges. Why has the Admission charges reduced significantly on the 2012 year?

7.

(P19) 5 Grants Why is the General purpose Commonwealth grant significantly down on the 2012 year?

Why is the Community projects amount well down on the 2012 year?

Minutes of Annual General Meeting held 28 October 2013

Page 6 of 26 8.

(P22) 15 Other expenses. Why has the “Grants and community benefits” increased from $290k to $651k in 12 months??

I request that all questions (submitted in accordance with the timing stated in the Notice of the Annual General Meeting in the Advocate) and the answers be available in hard copy form for the attendees at the AGM.” Response Council’s response is as follows: “SUBMISSION - ANNUAL REPORT 2013 I refer to your letter dated 24th October, 2013 and provide the following responses: Workforce Profile 1.

What is the Council’s 1.1. Workforce composition As at June 1013, staff numbers were as follows: Male

Full time 93 Temporary 1

Part time

7

Casual

7

Female

Full time 39 Temporary 4

Part time

30

Casual

13

General Manager Assistant General Manager

1 2

Indoor

Full time 73 Temporary 5

Part time

30

Casual

19

Outdoor

Full time 59 Temporary 0

Part time

7

Casual

1

The full time equivalent employees (FTE’s) for the entire financial year was 167.

1.2. Staff turnover percentage? How does this compare to other Tasmanian Councils?

The staff turnover percentage for the past financial year was 7.44%.

There is not information readily available at present to benchmark with other Councils in relation to this figure.

1.3. Annual cost of personnel training?

In the 2012/13 financial year, $152,394 was spent on Training and Conferences. This equates to approximately $912 per FTE. It is worth noting we received approximately $30,000 in training incentives for the financial year to offset some of this expense.

OH&S 2.

What is the Council’s 2.1. Lost Time Injury Frequency Rate? (LTIR) 15.29 - this has reduced from 17.57 last financial year.

2.2. Medical Treatment Injury Frequency Rate? (MTIR) - 49 2.3. Absenteeism? During the 2012/13 financial year there was an average of 75.41 hours sick/carers leave taken per full time equivalent employee.

Minutes of Annual General Meeting held 28 October 2013

Page 7 of 26 2.4. Workers Compensation Claims - There were 13 recorded workers compensation claims during the 12/13 financial year - the same number of claims as the previous financial year.

Statistics on the Transfer Station 3.

What is the: 3.1. IN aggregate tonnes recorded over the weighbridge? 25,297 tonnes 3.2. OUT aggregate tonnes recorded over the weighbridge? 13,640 tonnes

Sustainability 4.

What is the: 4.1. Water consumption - Year ending 30th June 2013 - Council does not have a total record of its water consumption, however Council did expend $196,671 for water and sewerage service and consumption charges.

4.2. Waste generation (Recycled bin tonnage as well) to 30 June, 2013 Recycled scrap steel collected - 590 tonne Municipal Garbage waste collected - 13,640 tonne Green Waste Mulch processed - 3,095 tonne Asbestos collected - 28.8 tonne Domestic recycled product collected - 1,822 tonne 4.3. Energy usage - We do not have records that indicate the 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 2012/13 financial year:   

Street Lighting service and consumption expenses - $789,596 General Electricity service and consumption expenses $274,941 Plant and fleet fuel - $353,895

4.4. Copy paper usage - 960 reams of paper was used last financial year.

5.

Street Lighting Policy The Street Lighting Policy was commenced but was delayed for several reasons. The delay included waiting on completion of Council’s Energy Efficiency Strategy and the outcome of Aurora’s investigation and tender related to LED street lighting. The draft policy document is now in its final stages of drafting and once completed a report and draft Policy will be submitted to Council for endorsement and public comment.

FINANCIAL 6.

Non Current Assets Note 21 for roads has a revaluation amount of $53.819M as against the 2013 amount of $3.826M. This seems to be an excessive amount despite what the note on P26 (vi) states.

In 2013 a full revaluation of road assets was undertaken, whereas in 2012 the revaluation was a simple indexation using CPI figures as provided by the Bureau of Statistics. This is in accordance with the revaluation schedule whereby a full revaluation of the road class assets is scheduled to occur on: 30 June 2013, 30 June 2016, 30 June 2019 etc.

Minutes of Annual General Meeting held 28 October 2013

Page 8 of 26 In the previous full revaluation of road assets in 2010, competitive pressures as a result of the GFC affected the valuation however since then replacements costs have increased significantly particularly regarding pavement assets which has had a significant impact on the 2013 revaluation.

7.

Fees & Charges Why has the admission charges reduced significantly in the 2012 year?

The majority of the variation is due to the impact of the aquatic centre closure to allow capital works to proceed on the new indoor aquatic facility.

8.

Grants Why is the General Purpose Commonwealth grant significantly down on the 2012 year?

In 2011/12 the Commonwealth Government announced that in response to the downturn in the economy it would bring forward into 2011/12 funding relating to the quarter two 2012/13 (quarter one was previously brought forward). In effect this meant that an additional quarter of funding was received by Council in 2011/12.

9.

Other expenses Why has the Grants and Community Benefits expenses increased from $290K in 2011/12 to $651K in 2012/13?

The main reason for the difference is a change in practice when accounting for rate remissions relating to higher value residential properties. Previously the rate remission expense was netted off against rate income however a decision was made during 2012/13 to more appropriately disclose the value of the remission separately so that the full value of the rate income could be seen and also the full value of the remission expense.

I trust this response answers your questions. Thank you for your continued interest in Council’s business.”

VERBAL SUBMISSIONS RECEIVED AT ANNUAL GENERAL MEETING DOUGLAS JANNEY - 23 WATKINSON STREET, DEVONPORT AGM 2013 Meeting Q

(P28) The 2013 Community Survey.

Why is the “Satisfaction with services/facilities” significantly down for Recycling and waste minimization”?

What has the Council done to redress this slipping of performance?

Response The Acting General Manager advised that information from the survey is currently being used to analyse the issues.

Financial Q

(P43) Note 37 (Devonport Recreation Centre Controlling Authority) shows Expenditure over Income of $448k which has worsened by $87k over the 2012 year.

Why?

Minutes of Annual General Meeting held 28 October 2013

Page 9 of 26 Response The Acting General Manager advised that a response will be provided in writing.

MR PETER SCHULZE - 6 ENDERLY COURT, AMBLESIDE Mr Schulze asked about the capital works costs of work being undertaken at the restaurant in the Surf Club building.

Response The Acting General Manager advised that the refurbishment is the fit out of the restaurant and that the costs have been allocated over the past and current financial years.

6.0 RECEIPT OF ANNUAL REPORT The Acting General Manager and Assistant General Manager jointly presented the highlights of the past financial year.

6.1

ANNUAL REPORT 2013 (D311495) RESOLUTION Ald Kent / Cole That the 2013 Annual Report be adopted.

AYES:

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

NOES:

Nil

There being no further business the meeting was closed at 6.40pm.

Confirmed

Chairman

Minutes of Annual General Meeting held 28 October 2013