From: Ray Norman <raymond.norman@bigpond.com>
Date: Wednesday, 18 September 2019 at 7:51 pm
Subject: Letter to Launcestonians
Date: Wednesday, 18 September 2019 at 7:51 pm
Subject: Letter to Launcestonians
It seems that if not currently, then very soon or not so long ago the City of Launceston's operational wing can be found blurring the lines of distinction between 'governance and management'. Governance is the realm of the elected representatives – policy development, objective setting, planning decisions & strategic determination – while it is management's task to implement all of that on Council's instructions and under the direction of the elected councillors/Aldermen.
However, the Act, when pressed in Tasmania allows for 'management' – The General Manager – to blur her/his functions under the provisions of SECTIONS 62 & 65 of the Local Govt. Act. Sometimes, SECTIONS 62 is invoked subliminally and almost systematically.
Essentially SECTION 62 is an emergency provision albeit that the drafting of the Act is unhelpfully ambiguous. Increasingly, GM's in Launceston have been using the provision to facilitate bureaucratic short cuts and possibly more still.
In any event currently there is a project in progress where it appears that the City of Launceston is rushing to do something that is not as urgent as it is being presented as being. Indeed it appears to be well under way without the approvals Council needs to provide under 'normal circumstances'. PROJECT: Link road between Lindsay and Gleadow Streets Invermay
It is increasingly concerning in regard to how events have already and are apparently, unfolding currently when:
- Council Management initiates a $1Million plus infrastructure project in collaboration with a developer seemingly in isolation from the elected Councillors;
- The developer is apparently privileged in the uncompetitive implementation proposal;
- The developer is pre-emptive and seemingly proceeds before Council approval;
- The GM recommends a course of action for implementation on the August 22 Agenda but withdraws the item – see the exert from the Agenda below
- The financial implications are non-trivial as are the costs to ratepayers;
- The project emerges again for consideration on September 19 with adjustments.
SITE: Link road between Lindsay and Gleadow Streets Invermay
CLICK ON AN IMAGE TO ENLARGE
City of Launceston . COUNCIL AGENDA . PAGE 7 . QUESTIONS ON NOTICE
Thursday 19 September 2019
7.1.2 Public Questions on Notice - Mr Ray Norman - 10 September 2019
FILE NO: SF6381
AUTHOR: Anthea Rooney (Committee Clerk)
GENERAL MANAGER: Michael Stretton (General Manager)
QUESTIONS and RESPONSES:
The following questions, submitted to Council on 10 September 2019 by Mr Ray Norman, have been answered by Michael Stretton (General Manager).
Questions:
1. If the $1Million payment is not for either a good or a service by extension, does that mean that the payment is a ’solicited ex gratia payment’: a payment made from a sense of moral obligation rather than because of any legal requirement …. AKA ‘a gift, a grant’”?
Response:
The contribution is for the construction of a Council road as part of an approved subdivision development. This contribution is to be made pursuant to section 74 of the Local Government Act 1993 (Tas) which says that a council may expend its funds for the purpose of exercising its powers or carrying out its functions under this or any other Act within the estimates adopted under section 82 . In this case, Council is carrying out its functions as a corporation under the Local Government (Highways) Act 1982 (Tas).
2. If the $1Million payment/gift/grant is indeed made, and a purpose has been articulated, what guarantee will there be that the entire amount has been applied to that purpose? If not what penalties will apply?
Response:
The Council will enter a contractual arrangement with the developer for the provision of the road which will be subject to prescribed checks and balances. It should be noted that the developer has guaranteed that they accept all risk if the works are to cost more but if they can reduce the cost through reuse of pavement in the northern section of the construction, then the Council will receive this benefit.
3. Moreover, should it turn out that the $1Million payment is not actually enough for whatever reason, will the developer be able to seek additional funds under any circumstance and what might they be? City of Launceston
Response:
Refer previous response.
4. Indeed, what is the ‘strategic and/or civic purpose’ of this ‘gift/grant’ at this time given that there is no strategic policy in place that is referred to in order to give the ’payment’ context?
Response:
Congestion at the Lindsay and Goderich Streets intersection has increased over the past five years, primarily as a result of urban growth in Newnham and Alanvale. With anticipated growth in traffic demand as a result of Riverbend Park, the relocated National Automobile Museum of Tasmania and further development in Lindsay Street, it is likely that this intersection will become critically congested in the next five years. While the full final traffic solution for the Invermay area is yet to be adopted by Council, the requirement for the new link road has been approved by the Council as part of the Planning Permit for the subdivision and was well received during community engagement. Therefore, it is considered necessary to support current developments in the precinct.
5. Given that Council is considering this proposal at all, does this represent an ongoing ‘strategic policy determination’ that allows ratepayers, any ratepayer, to apply for such funding? And if so, under what circumstances can they apply?
Response:
As it has in the past, the Council will continue to consider developer contributions where there is an identified public infrastructure need.
6. Is this recommendation of $1Million payment/gift/grant being made by the General Manager under the provisions of SECTION 62 of the Local Govt. Act?
Response:
No.
7. Does the General Managers’ guarantee of ‘expert advice’ under the provisions of SECTION 65 of the Local Govt. Act apply here in the instance of a $1Million payment/gift/grant – approximately 1% of Council’s recurrent budget – being made and apart from the legal advice proffered has the advice been tested and to what end?
Response:
The Certificate of Qualified Advice which is provided as part of this Agenda indicates that the General Manager has certified that section 65 of the Local Government Act 1993 (Tas) has been complied with.
8. If Council accedes to the General Managers’ recommendation, will Council be advertising like opportunities to all ratepayers setting out the conditions they will need to meet and the benefits that they’ll need to offer in order to win funding of this kind?
Response:
Refer to response to Question 5.
ATTACHMENTS:
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City of Launceston COUNCIL AGENDA Thursday 22 August 2019 28 20 GENERAL MANAGER'S DIRECTORATE ITEMS 20.1 King Wharf Developments - Developer Contribution FILE NO: 114560/116160
GENERAL MANAGER: Michael Stretton (General Manager)
DECISION STATEMENT: To consider a developer contribution for construction of the new road between Gleadow Street and Lindsay Street, Invermay.
PREVIOUS COUNCIL CONSIDERATION: Workshop - 13 December 2018 - Invermay Traffic Masterplan - Update Council - 22 October 2018 - Agenda Item18.1 - Invermay Traffic Masterplan Closed Council - 23 March 2015 - Agenda Item 23.1 - Disposal of Land - Agreement to dispose of 91 Gleadow Street, Invermay
RECOMMENDATION: In accordance with the Draft Invermay Traffic Masterplan, that the Council provides a development contribution of up to $1,005,752 to King Wharf Developments for the construction of a new link road on its land between Lindsay Street and Gleadow Street, Invermay pursuant to section 74 of the Local Government Act 1993 (Tas). REPORT: In April 2018, Council considered a report detailing the extent of new developments occurring in the Invermay area and the likely impact of traffic. One of the most significant potential improvements identified in this report was the installation of traffic signals on Gleadow and Goderich Streets, Invermay and the construction of a new link road between Lindsay and Gleadow Streets, Invermay located to the west of the existing Bunnings Warehouse premises. Congestion at the Lindsay and Goderich Streets intersection has increased over the past five years, primarily as a result of urban growth in Newnham and Alanvale. With anticipated growth in traffic demand as a result of Riverbend Park, the relocated National Automobile Museum and further development in Lindsay Street, it is likely that this intersection will become critically congested in the next five years.
The full final traffic solution for the Invermay area is yet to be adopted by Council, however, the requirement for the new link road was well received during the community engagement and is considered necessary to support current developments. It is intended the remaining issues with the Invermay Traffic Masterplan, primarily relating to the appropriate intersection controls, will be resolved over the coming few weeks allowing the overall Invermay Traffic Masterplan to be adopted by Council. Prompted by a proposed subdivision by King Wharf Developments in June 2018, Council made a decision to acquire around 5,649m 2 from King Wharf Developments to secure the land for the new link road. Initially it was proposed that the Council would construct the road and the 2018/2019 capital budget included an $840,000 allocation of which $420,000 is to be funded by the Department of State Growth, for the construction of the link road.
This amount was the initial estimate for the project. In March 2019, an amended Development Approval (DA0261/2018.A02) was provided for the subdivision by King Wharf Developments.
To support this subdivision, Permit Conditions 10(b) vii to xv required: Lindsay Street to Gleadow Street link road vii. Provision of a fully constructed road 11.8 metres wide (measured from the face of kerb to the face of kerb) for the entire length of all the property frontages, complete with KC type kerb and channel.
The road is to include cycle lanes on both sides and parking on one side of the road, viii. Provision of a 1500mm wide footpath located on the western side of the road, a 1500mm wide footpath located on the eastern side across the frontage of Lots 1 and 3 and all necessary pedestrian kerb ramps, ix. Provision of vehicular crossings for Lots 1, 3, 4 and 5 as shown on the proposal plan, x. All necessary line marking including parking bays and cycle lanes, signage and other traffic control devices. Link road along southern boundary of Lot 1 xi. Provision of a fully constructed road 11.0 metres wide (measured from the face of kerb to the face of kerb) for the entire length of all the property frontages, complete with KC type kerb and channel. (The road) xii. Provision of a fully constructed left turn lane in Goderich Street including new kerb and channel, vegetation removal and changes to the existing shared path xiii. Provision of a 1500mm wide footpath located on the northern side of the road and all necessary pedestrian kerb ramps, xiv. Provision of vehicular crossings for Lot 1, as shown on the proposal plan, xv. All necessary line marking, signage and other traffic control devices.
In reviewing its works program, the Infrastructure Services Directorate has determined that it would be more appropriate for the Developer to complete the road construction project as opposed to the Council in order to provide the best outcome. Specifically, if the road is not designed and constructed as one coordinated package of work along with the other subdivision construction works, then there are risks that:
ground levels do not match resulting in drainage management issues, creating potential hazards to road users or property, and possibly requiring subsequent remedial works; and
poor coordination of utilities, telecommunications, power, street lighting water and sewage infrastructure installations, requiring subsequent excavation of the constructed road. To facilitate an integrated approach to the road construction, it is considered appropriate to provide a contribution to the developer to complete the road construction on the Council's land as part of the broader subdivision works.
This contribution is to be made pursuant to section 74 of the Local Government Act 1993 (Tas) which says that a council may expend its funds for the purpose of exercising its powers or carrying out its functions under this or any other Act within the estimates adopted under section 82.
In this case, Council is carrying out its functions as a corporation under the Local Government (Highways) Act 1982 (Tas). Following the detailed design process the developer has provided a revised estimate of $1,005,752 to construct the road, which includes a 10% contingency. Council officers have undertaken an independent review and cost estimate utilising the same schedule of quantities as provided by the developer and have determined the proposed construction cost is accurate and reasonable.
Given the current available budget provision is $840,000, Council officers are currently undertaking a design review, including additional onsite investigation work, to potentially reduce road pavement thickness as a cost-saving consideration. Re-use of part of the existing road base construction to the northern side of the Bunnings site (which is within the proposed new road footprint) is also likely to deliver cost savings. Should these savings not be identified, then this work will be prioritised within the broader roads capital program to provide the additional funding - that is, the work will be funded within the estimates adopted by the Council for the 2019/2020 financial year. Legal advice has been sought and obtained (see Attachment 2) which confirms that section 333A of the Local Government Act 1993 (Tas), in respect to tendering of the project, does not apply in this instance because the road is required to be constructed as a condition of the planning permit. The road is a necessary part of the proposed subdivision development and the Invermay Traffic Masterplan and it is therefore appropriate for the Council to contribute towards its cost.
ECONOMIC IMPACT: Not considered relevant to this report. ... ENVIRONMENTAL IMPACT: Not considered relevant to this report. ... SOCIAL IMPACT: Not considered relevant to this report. STRATEGIC DOCUMENT REFERENCE: City of Launceston Corporate Strategic Plan 2014-2024 Strategic Priority 7: We are a City planning for our future by ensuring our approach to strategic land-use, development and infrastructure is coordinated, progressive and sustainable. 10-Year Goal: To facilitate appropriate development via integrated land-use planning, infrastructure investment and transport solutions within our municipality and region. Focus Areas: 2. To take a strategic approach to development sites and infrastructure investment within the municipality to maximise public benefit and encourage development and investment. ...... BUDGET & FINANCIAL ASPECTS: Development contribution of up to $1,005,752 for construction of the road between Lindsay and Gleadow Streets. The budget adjustment consideration of this item has been approved by the Director Corporate Services.
COUNCIL AGENDA Thursday 19 September 2019 Page 56
20.2 King Wharf Developments - Developer Contribution
FILE NO: 114560/116160
GENERAL MANAGER: Michael Stretton (General Manager) DECISION STATEMENT: To consider a developer contribution for construction of the new road between Gleadow Street and Lindsay Street, Invermay.
PREVIOUS COUNCIL CONSIDERATION: Workshop - 13 December 2018 - Invermay Traffic Masterplan - Update Council - 22 October 2018 - Agenda Item18.1 - Invermay Traffic Masterplan Closed Council - 23 March 2015 - Agenda Item 23.1 - Disposal of Land - Agreement to dispose of 91 Gleadow Street, Invermay
RECOMMENDATION: In accordance with the Draft Invermay Traffic Masterplan, that the Council provides a development contribution of up to $864,320 to King Wharf Developments for the construction of a new link road on its land between Lindsay Street and Gleadow Street, Invermay pursuant to section 74 of the Local Government Act 1993 (Tas). REPORT: In April 2018, Council considered a report detailing the extent of new developments occurring in the Invermay area and the likely impact of traffic. One of the most significant potential improvements identified in this report was the installation of traffic signals on Gleadow and Goderich Streets, Invermay and the construction of a new link road between Lindsay and Gleadow Streets, Invermay located to the west of the existing Bunnings Warehouse premises. Congestion at the Lindsay and Goderich Streets intersection has increased over the past five years, primarily as a result of urban growth in Newnham and Alanvale. With anticipated growth in traffic demand as a result of Riverbend Park, the relocated National Automobile Museum and further development in Lindsay Street, it is likely that this intersection will become critically congested in the next five years. The full final traffic solution for the Invermay area is yet to be adopted by Council, however, the requirement for the new link road was well received during the community engagement and is considered necessary to support current developments.
It is intended the remaining issues with the Invermay Traffic Masterplan, primarily relating to the appropriate intersection controls, will be resolved over the coming few weeks allowing the overall Invermay Traffic Masterplan to be adopted by Council. Prompted by a proposed subdivision by King Wharf Developments in June 2018, Council made a decision to acquire around 5,649m2 from King Wharf Developments to secure the land for the new link road. Initially it was proposed that the Council would construct the road and the 2018/2019 capital budget included an $840,000 allocation of which $420,000 is to be funded by the Department of State Growth, for the construction of the link road. This amount was the initial estimate for the project. In March 2019, an amended Development Approval (DA0261/2018.A02) was provided for the subdivision by King Wharf Developments. To support this subdivision, Permit Conditions 10(b) vii to xv required: Lindsay Street to Gleadow Street link road vii. Provision of a fully constructed road 11.8 metres wide (measured from the face of kerb to the face of kerb) for the entire length of all the property frontages, complete with KC type kerb and channel.
The road is to include cycle lanes on both sides and parking on one side of the road, viii. Provision of a 1500mm wide footpath located on the western side of the road, a 1500mm wide footpath located on the eastern side across the frontage of Lots 1 and 3 and all necessary pedestrian kerb ramps, ix. Provision of vehicular crossings for Lots 1, 3, 4 and 5 as shown on the proposal plan, x. All necessary line marking including parking bays and cycle lanes, signage and other traffic control devices. Link road along southern boundary of Lot 1 xi. Provision of a fully constructed road 11.0 metres wide (measured from the face of kerb to the face of kerb) for the entire length of all the property frontages, complete with KC type kerb and channel. (The road) xii. Provision of a fully constructed left turn lane in Goderich Street including new kerb and channel, vegetation removal and changes to the existing shared path xiii. Provision of a 1500mm wide footpath located on the northern side of the road and all necessary pedestrian kerb ramps, xiv. Provision of vehicular crossings for Lot 1, as shown on the proposal plan, xv. All necessary line marking, signage and other traffic control devices.
In reviewing its works program, the Infrastructure Services Directorate has determined that it would be more appropriate for the Developer to complete the road construction project as opposed to the Council in order to provide the best outcome. Specifically, if the road is not designed and constructed as one coordinated package of work along with the other subdivision construction works, then there are risks that:
ground levels do not match resulting in drainage management issues, creating potential hazards to road users or property, and possibly requiring subsequent remedial works; and
poor coordination of utilities, telecommunications, power, street lighting water and sewage infrastructure installations, requiring subsequent excavation of the constructed road.
To facilitate an integrated approach to the road construction, it is considered appropriate to provide a contribution to the developer to complete the road construction on the Council's land as part of the broader subdivision works. This contribution is to be made pursuant to section 74 of the Local Government Act 1993 (Tas) which says that a council may expend its funds for the purpose of exercising its powers or carrying out its functions under this or any other Act within the estimates adopted under section 82. In this case, Council is carrying out its functions as a corporation under the Local Government (Highways) Act 1982 (Tas). Following the detailed design process the developer has provided a revised estimate of $1,005,752 to construct the road, which includes a 10% contingency. Council officers have undertaken an independent review and cost estimate utilising the same schedule of quantities as provided by the developer and have determined the proposed construction cost is accurate and reasonable with the Council's estimate being $985,000. The developer has been advised by the Council that it would be reasonable for them to also contribute to the works. King Wharf Developments has revised their cost to $864,320, which is $141,432 less than previously proposed. In addition to this revised price, the developer has also guaranteed that they accept all risk if the works are to cost more, but if they can reduce the cost through reuse of pavement in the northern section then the Council will receive this benefit. Given the current available budget provision is $840,000, Council officers are currently undertaking a design review, including additional onsite investigation work, to potentially reduce road pavement thickness as a cost-saving consideration. Re-use of part of the existing road base construction to the northern side of the Bunnings site (which is within the proposed new road footprint) is also likely to deliver cost savings. Should these savings not be identified, then this work will be prioritised within the broader roads capital program to provide the additional funding - that is, the work will be funded within the estimates adopted by the Council for the 2019/2020 financial year.
Legal advice has been sought and obtained (see Attachment 2) which confirms that section 333A of the Local Government Act 1993 (Tas), in respect to tendering of the project, does not apply in this instance because the road is required to be constructed as a condition of the planning permit. The road is a necessary part of the proposed subdivision development and the Invermay Traffic Masterplan and it is therefore appropriate for the Council to contribute towards its cost.
ECONOMIC IMPACT: Not considered relevant to this report. ENVIRONMENTAL IMPACT: Not considered relevant to this report.
SOCIAL IMPACT: Not considered relevant to this report. STRATEGIC DOCUMENT REFERENCE: City of Launceston Corporate Strategic Plan 2014-2024 Strategic Priority 7: We are a City planning for our future by ensuring our approach to strategic land-use, development and infrastructure is coordinated, progressive and sustainable. 10-Year Goal: To facilitate appropriate development via integrated land-use planning, infrastructure investment and transport solutions within our municipality and region. Focus Areas: 2. To take a strategic approach to development sites and infrastructure investment within the municipality to maximise public benefit and encourage development and investment.
BUDGET & FINANCIAL ASPECTS: Development contribution of up to $1,005,752 for construction of the road between Lindsay and Gleadow Streets. The budget adjustment consideration of this item has been approved by the Director Corporate Services.
REFERENCES
Local Government Act 1993
74. Expenditure
A council may expend its funds for the purpose of exercising its powers or carrying out its functions under this or any other Act within the estimates adopted under section 82 .
82. Estimates
(1) The general manager must prepare estimates of the council's revenue and expenditure for each financial year.(2) Estimates are to contain details of the following:(a) the estimated revenue of the council;(b) the estimated expenditure of the council;(c) the estimated borrowings by the council;(d) the estimated capital works of the council;(e) any other detail required by the Minister.(3) Estimates for a financial year must –(a) be adopted by the council, with or without alteration, by absolute majority; and(b) be adopted before 31 August in that financial year; and(c) not be adopted more than one month before the start of that financial year.(4) A council may alter by absolute majority any estimate referred to in subsection (2) during the financial year.(5) A council may make adjustments to individual items within any estimate referred to in subsection (2) by a simple majority so long as the total amount of the estimate is not altered.(6) A council, by absolute majority, may authorise the general manager to make minor adjustments up to specified amounts to individual items within any estimate referred to in subsection (2) so long as the total amount of the estimate is not altered.(7) The general manager is to report any adjustment and an explanation of the adjustment at the first ordinary meeting of the council following the adjustment.
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Council-Agenda-22-August-2019%20(2).pdf
