Minutes annual general meeting 28 october 2013

Page 1 of 9 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:

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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.

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LEAVE OF ABSENCE There were no Leave of Absences.

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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

Minutes of Annual General Meeting held 28 October 2013

Page 2 of 9 circulated be taken as read and confirmed.

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 Minutes of Annual General Meeting held 28 October 2013

Page 3 of 9 not only contain the full range of shops and super markets but services such as 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 9 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 9 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

8.

Page 6 of 9 (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 9 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 9 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 9 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