Agenda of Council - Monday, 24 August 2020

MINUTES OF THE Meeting of City of Parramatta Council HELD IN THE CLOISTER FUNCTION ROOMS, ST PATRICK’S CATHEDRAL 1 MARIST PLACE, PARRAMATTA ON Monday, 10 August 2020 AT 6.30pm

These are draft minutes and are subject to confirmation by Council at its next meeting. The confirmed minutes will replace this draft version on the website once confirmed.

PRESENT

The Lord Mayor, Councillor Bob Dwyer and Councillors Benjamin Barrak, Phil Bradley, Donna Davis, Pierre Esber, Michelle Garrard (Deputy Lord Mayor), Steven Issa, Andrew Jefferies, Sameer Pandey, Dr Patricia Prociv, Bill Tyrrell, Andrew Wilson, Lorraine Wearne and Martin Zaiter.

1. OPENING MEETING

The Lord Mayor, Councillor Bob Dwyer, opened the meeting at 6.33pm.

2. ACKNOWLEDGEMENT OF THE TRADITIONAL LAND OWNERS

The Lord Mayor, acknowledged the Burramattagal people of The Darug Nation as the traditional custodians of this land, and paid respect to their ancient culture and their elders past and present.

3. WEBCASTING ANNOUNCEMENT

The Lord Mayor, advised that this public meeting is being recorded and streamed live on the internet. The recording will also be archived and made available on Council’s website.

4. OTHER RECORDING OF MEETING ANOUNCEMENT

As per Council’s Code of Meeting Practice, the recording of the Council Meeting by the public using any device, audio or video, is only permitted with Council permission. Recording a Council Meeting without permission may result in the individual being expelled from the Meeting.

5. CONFIRMATION OF MINUTES

SUBJECT: Minutes of the Council Meeting held on 27 July 2020

2849

RESOLVED (Tyrrell/Garrard)

That the minutes be taken as read and be accepted as a true record of the Meeting.

6. APOLOGIES/REQUESTS FOR LEAVE OF ABSENCE

There were no apologies or requests for leave of absence made at this meeting.

7. DECLARATIONS OF INTEREST

There were no declarations of interest made at this meeting.

8. MATTERS OF URGENCY (if any)

There were no matters of urgency raised at this meeting.

9. Minutes of the Lord Mayor

9.1

SUBJECT Condolence Motion: Beirut, Lebanon Tragedy

REFERENCE F2019/03630 - D07578798

REPORT OF Lord Mayor, Councillor Bob Dwyer

2850

RESOLVED (Dwyer/Issa)

(a) That Council acknowledge the tragic loss of life, and those injured, in the Beirut, Lebanon explosion on Tuesday 4 August 2020.

(b) That Council note our own formal condolences are being sent to the Consulate General of Lebanon in Sydney, and a copy of this Minute will be shared with them.

(c) That Council note that Lebanon’s national flag will be flown at half-mast from today, Monday, 10 August 2020, for one week on the Parramatta River foreshore in solidarity with the people of Beirut and our Australian-Lebanese community.

(d) That Council note an online condolence book has been established on Council’s website for the Parramatta community to leave messages of condolence and support for the people of Beirut, and those affected locally.

(e) Further, that the Chamber hold a minutes silence as a mark of mourning and respect.

Note: The Chamber observed a minutes silence.

9.2

SUBJECT Thanking the Parramatta Community

REFERENCE F2019/03630 - D07556345

REPORT OF Lord Mayor, Councillor Bob Dwyer

2851

RESOLVED (Dwyer/Esber)

(a) That Council thank and congratulate the many community groups, organisations and volunteers detailed in this Lord Mayor Minute at Attachment 1 for their extraordinary ongoing efforts to support the people of the City of Parramatta in the face of the COVID-19 pandemic.

(b) That Council note the support provided by these organisations has been across a wide range of areas, from emergency food provision to activities reducing the impacts of social isolation, and that these organisations have shown incredible resilience and adapted their services when faced with these new challenges.

(c) That Council note this list of organisations is not exhaustive, and that there are many more in our City who have made exceptional contributions to support and keep this community well and safe.

(d) Further, that Council update the existing COVID-19 information page on the City of Parramatta website to include this list of community organisations.

9.3

SUBJECT 75th Anniversary of Victory in the Pacific Day - 15 August 2020

REFERENCE F2019/03630 - D07578813

REPORT OF Lord Mayor, Councillor Bob Dwyer

2852

RESOLVED (Dwyer/Davis)

(a) That Council note that Victory in the Pacific Day (VP Day) will be commemorated on Saturday 15 August, marking the 75^th anniversary of the conclusion of World War II.

(b) That Council honours all of our servicemen and women, past and present, and pays tribute to the 1^st/15^th Royal New South Wales Lancers of Parramatta, the Lancer Association, and sub-Branches of Parramatta and Epping RSLs for their long-standing history of proudly supporting our nation and community.

(c) That Council note that a ‘Victory in the Pacific Online Experience’ has been created by Council, where the community can discover and explore a range of historical articles, artefacts, profiles and local stories.

(d) That Council note acknowledgement letters from the Lord Mayor to Parramatta and Epping RSL sub-Branches have been prepared, and will be sent to note this significant anniversary and their ongoing contributions.

(e) That Council note arrangements have been made to lay commemorative wreaths at Parramatta and Epping cenotaphs this Saturday, 15 August on behalf of the Lord Mayor, Councillors and Citizens of the City of Parramatta.

(f) Further, that Council write to World War II veterans to commemorate and acknowledge this significant anniversary.

9.4

SUBJECT LGNSW Local Government Week Awards 2020

REFERENCE F2019/03630 - D07579250

REPORT OF Lord Mayor, Councillor Bob Dwyer

2853

RESOLVED (Dwyer/Tyrrell)

(a) That Council note our recent win at the Local Government NSW Local Government Week Awards 2020, with Council winning the LGNSW 2020 Planning Award – Culture Change, Innovation and Excellence for ‘Planning a 24-hour city: Parramatta Night City Framework 2020-2024’.

(b) That Council congratulate the Council officers involved in the development of this framework, led by the Economic Development and City Strategy teams, on this win and thank them for their hard work and commitment to the City.

(c) Further, that Council note a number of other Council projects and initiatives were nominated in the LGNSW Local Government Week Awards, and Council congratulates the teams responsible for these projects on this achievement and thanks them for their valuable contributions.

10. Public Forum

There were no public forum submission at this meeting.

11. Petitions

There were no petitions tabled at this meeting.

12. Rescission Motions

Nil

13. Fair

Nil

14. Accessible

14.1

SUBJECT FOR NOTATION: Variations to Standards under Clause 4.6 of Parramatta LEP 2011, Auburn LEP 2010, Holroyd LEP 2013, The Hills LEP 2012, Hornsby LEP 2013 and SEPP 1

REFERENCE F2009/00431 - D07250475

REPORT OF Group Manager - Development and Traffic Services

2854

RESOLVED (Esber/Tyrrell)

That the report be received and noted.

14.2

SUBJECT FOR APPROVAL: Response to Notices of Motions - Parking Enforcement in Suburban and Sydney Olympic Park Areas including Unusual Hours (Out of Business Hours) and Council Officer Discretions under Policy and/or Legislation

REFERENCE F2020/02062 - D07524796

REPORT OF Group Manager Regulatory Services

2855

RESOLVED (Wilson/Bradley)

(a) That Council note this report in response to Council Notice of Motions, Reference Items GB60/19 (29/4/19), 19.1 and 19.2 (24/02/20).

(b) That Council create a ‘Parking Information Pamphlet’ for dissemination to all City of Parramatta Households as a community information and reminder service to be delivered with the Parramatta Pulse publication.

(c) Further, that a Councillor Workshop be organised to discuss the design and content of the ‘Parking Information Pamphlet’ prior to dissemination.

15. Green

Nil

16. Welcoming

Nil

17. Thriving

17.1

SUBJECT FOR APPROVAL: Advocacy for Expansion of Parramatta Justice Precinct and Permanent Supreme Court

REFERENCE F2018/02357 - D07546165

REPORT OF Project Officer

2856

RESOLVED (Bradley/Tyrrell)

(a) That Council note the study Parramatta Legal and Justice Sector prepared in response to Council’s resolution of 10 April 2018 at Attachment 1.

(b) That Council support a proposed advocacy campaign to the State Government, outlining the City’s aspirations for:

i) The physical expansion of the Parramatta Justice Precinct to support the development of Parramatta as a significant legal centre for New South Wales;

ii) A permanent Supreme Court presence in Parramatta (through the attachment of multiple justices to the existing Supreme Court circuit);

iii) The development of a law school within the Parramatta CBD to support talent pool development and retention in the City;

iv) The development of a legal innovation start-up incubator in the Parramatta CBD.

(c) That Council write to the NSW Bar Association, Law Society of New South Wales and other supportive stakeholders including both Federal and State Attorney-General’s Department to establish a coalition to advocate for an increased Federal and State judicial presence in Parramatta.

(d) Further, that Council write to the Chief Commissioner of the Greater Sydney Commission and the Secretary of the Department of Communities and Justice regarding the identification of a “Master Plan for the expansion of the Parramatta Justice Precinct” within the Greater Parramatta to Olympic Peninsula Place-Based Infrastructure Compact, to identify opportunities to accelerate the delivery of the master plan.

17.2

SUBJECT FOR APPROVAL: Proposed naming of three roads and one park in the Carter Street Precinct, Lidcombe

REFERENCE F2018/01028 - D07539774

REPORT OF Place Manager

2857

RESOLVED (Prociv/Tyrrell)

(a) That Council approve the proposed names for three new roads and one new park in the Carter Street, Lidcombe Precinct Residential Development and as shown on the Precinct Plan at Attachment 1 of this report, as follows:

Streets	Kingfisher Street
	Honeyeater Street
	Fantail Street
Park	Kestral Park

(b) Further, that these names be referred to the Geographical Names Board (GNB) of NSW for formal assignment and Gazettal under the Geographical Names Act 1996.

18. Innovative

18.1		SUBJECT FOR APPROVAL: Post-exhibition: Planning Proposal, draft Development Control Plan and draft Planning Agreement at 33-43 Marion Street, Parramatta REFERENCE RZ/9/2017 - D07390085 REPORT OF Project Officer, Land Use Planning
		MOTION (Garrard/Esber) (a) That Council notes the submissions made during the public exhibition of the Planning Proposal, draft site-specific Development Control Plan and draft Planning Agreement at 33-43 Marion Street, Parramatta, a summary of which is provided at Attachment 2. (b) That Council endorse for finalisation the Planning Proposal for land at 33-43 Marion Street (provided at Attachment 3) which seeks to amend Parramatta Local Environmental Plan 2011 by way of: i. Increasing the height of buildings control from 12 metres to 80 metres; ii. Increasing the floor-space ratio (FSR) control from 2:1 to 6:1 (6.9:1 with design excellence bonus); iii. De-listing the heritage item at 37 Marion Street, Parramatta; iv. Including a site-specific provision which allows for an additional 5 percent FSR bonus where the development achieves certain high performing building criteria; v. Including a site-specific provision to require satisfactory arrangements for the provision of state infrastructure, as required by the Department of Planning, Industry and Environment; and vi. Include a site specific provision to apply maximum car parking rates in accordance with the Parramatta CBD Strategic Transport Study, as required by Transport for NSW. (c) That Council forward the Planning Proposal to the Department of Planning, Industry and Environment for finalisation and request that the final notification only be undertaken once Council confirms that the Planning Agreement has been signed and entered into. (d) That Council endorse for finalisation the site-specific Development Control Plan contained at Attachment 4 for insertion in Section 4.3.3 – Parramatta City Centre of Parramatta Development Control Plan 2011, including amendments following public exhibition relating to design controls for the through-site link. (e) That Council delegate authority to the Chief Executive Officer to finalise the draft Planning Agreement after considering the amendments requested by the applicant but seeking to ensure that the final Planning Agreement satisfies the following principles: i. That the Planning Agreement be substantially the same as the exhibited version (at Attachment 5); ii. That Community Infrastructure be levied against all residential uplift that has been facilitated by the Planning Proposal; iii. That if the development proposes a primarily residential development and any ancillary commercial development on this site is less than the current 2:1 base FSR then the commercial floor space provided should have no impact on the calculation of the community infrastructure payable; iv. If the development proposed is a mixed-use development and the development provides commercial floor space greater than the 2:1 base FSR or entirely commercial development then no community infrastructure should be charged for any commercial floor space exceeding the 2:1 base FSR on this site. (Note community infrastructure is not applied to any base FSR regardless of the use of this floor space); and v. That Community Infrastructure not be levied against any bonuses achieved under the Parramatta LEP 2011 (such as design excellence and high performing buildings) or other Environmental Planning Instruments (such as the Affordable Rental Housing or Seniors Housing SEPPs). (f) That the Chief Executive Officer be authorised to sign the Planning Agreement on Council’s behalf. (g) That Council authorise the Chief Executive Officer to make any minor amendments and corrections of a non-policy and administrative nature that may arise during the plan amendment process relating to the Planning Proposal, Development Control Plan and Planning Agreement. (h) Further, that Council note that the Parramatta Local Planning Panel’s advice to Council (Attachment 1) is consistent with the recommendations of this report.
		AMENDMENT (Barrak/Wearne) (a) That there be no changes to the planning controls for the Marion Street Precinct such that it remains as per the Parramatta LEP 2011 as recommended by the ‘Urbis Heritage Study’ (which considered the entire CBD Planning Proposal boundary area) and the ‘Hector Abraham Architects (HAA) Heritage Study of Interface Areas’ (which considered the interface areas between the Parramatta CBD core and the heritage conservation areas/lower scale residential areas adjoining). (b) That Council notes that a ‘Heritage Study of Interface Areas – Peer Review’ was commissioned by the Department of Planning Industry and Environment and that this was prepared by consultants GML, and that GML also recommended no changes to the planning controls for the Marion Street as per Parramatta LEP 2011. (c) Further, that the Marion Street Precinct be identified as a Heritage Conservation Area as recommended by the HCA Heritage Study.
		During debate on the amendment moved by Councillor Barrak, seconded by Councillor Wearne, a foreshadowed amendment was moved by Councillor Davis.
		During further debate on the amendment moved by Councillor Barrak, seconded by Councillor Wearne, a second foreshadowed amendment was moved by Councillor Bradley.
		Note: 1. The Lord Mayor left the Chamber at 7:24pm during consideration of the amendment moved by Councillor Barrak and seconded by Councillor Wearne. 2. The Deputy Lord Mayor, Councillor Garrard assumed the Chair at 7:24pm. 3. The Lord Mayor returned to the Chamber at 7:27pm and resumed the Chair during consideration of the amendment moved by Councillor Barrak and seconded by Councillor Wearne.
		The amendment moved by Councillor Barrak and seconded by Councillor Wearne on being put was declared LOST on the Mayor’s Casting Vote. DIVISION A division was called, the result being:- AYES: Councillors Barrak, Bradley, Davis, Pandey, Prociv, Wearne and Wilson NOES: Councillors Dwyer, Esber, Garrard, Issa, Jefferies, Tyrrell and Zaiter
		The foreshadowed amendment moved by Councillor Davis then became the amendment.
		AMENDMENT (Davis/Wilson) That the matter be deferred, as recommended by the Heritage Council of NSW, until the Parramatta CBD Planning Proposal is resolved. The amendment moved by Councillor Davis and seconded by Councillor Wilson on being put was declared LOST on the Mayor’s Casting Vote.
		DIVISION A division was called, the result being:- AYES: Councillors Barrak, Bradley, Davis, Pandey, Prociv, Wearne and Wilson NOES: Councillors Dwyer, Esber, Garrard, Issa, Jefferies, Tyrrell and Zaiter
	The foreshadowed amendment moved by Councillor Bradley then became the amendment.
	AMENDMENT (Bradley/Barrak) That Council: (a) Notes the earlier Urbis Heritage Report and Administrator’s decision in relation to preserving the heritage values of this area; (b) Supports the Heritage Council of NSW’s recommendation in relation to this proposal “that the Parramatta CBD Planning Proposal be resolved prior to further consideration of individual site-specific planning proposals seeking increases in density”; (c) Makes no further decisions on this planning proposal until after it has considered a detailed independent report about the history of this project including the alleged involvement of a former Council property development manager and any other staff involved. The amendment moved by Councillor Bradley and seconded by Councillor Barrak on being put was declared LOST. DIVISION A division was called, the result being:- AYES: Councillors Barrak, Bradley, Davis, Pandey and Prociv NOES: Councillors Dwyer, Esber, Garrard, Issa, Jefferies, Tyrrell and Zaiter The Amendment was LOST.
	Note: 1. Councillor Wilson left the Chamber at 8:20pm and returned at 8:23pm and was not present for the vote taken on the amendment moved by Councillor Bradley and seconded by Councillor Barrak. 2. Councillor Wearne left the Chamber at 8:20pm and returned at 8:23pm and was not present for the vote taken on the amendment moved by Councillor Bradley and seconded by Councillor Barrak.

Procedural Motion

2858

RESOLVED (Dwyer/Tyrrell)

That the meeting adjourn for a short recess.

Note: The meeting was adjourned at 8:23pm for a short recess.

Procedural Motion

2859

RESOLVED (Dwyer/Tyrrell)

That the meeting resume.

The meeting resumed in the Council Chambers at 8:30pm with the following Councillors in attendance: The Lord Mayor, Councillor Dwyer and Councillors Barrak, Bradley, Davis, Esber, Garrard (Deputy Lord Mayor), Issa, Jefferies, Pandey, Prociv, Tyrrell, Wilson, Wearne and Zaiter.

The motion moved by Councillor Garrard and seconded by Councillor Esber on being put was declared CARRIED on the Lord Mayor’s Casting Vote.

DIVISION A division was called, the result being:-

AYES: Councillors Dwyer, Esber, Garrard, Issa, Jefferies, Tyrrell and Zaiter

NOES: Councillors Barrak, Bradley, Davis, Pandey, Prociv, Wearne and Wilson

2860

RESOLVED (Garrard/Esber)

(a) That Council notes the submissions made during the public exhibition of the Planning Proposal, draft site-specific Development Control Plan and draft Planning Agreement at 33-43 Marion Street, Parramatta, a summary of which is provided at Attachment 2.

(b) That Council endorse for finalisation the Planning Proposal for land at 33-43 Marion Street (provided at Attachment 3) which seeks to amend Parramatta Local Environmental Plan 2011 by way of:

i. Increasing the height of buildings control from 12 metres to 80 metres;

ii. Increasing the floor-space ratio (FSR) control from 2:1 to 6:1 (6.9:1 with design excellence bonus);

iii. De-listing the heritage item at 37 Marion Street, Parramatta;

iv. Including a site-specific provision which allows for an additional 5 percent FSR bonus where the development achieves certain high performing building criteria;

v. Including a site-specific provision to require satisfactory arrangements for the provision of state infrastructure, as required by the Department of Planning, Industry and Environment; and

vi. Include a site specific provision to apply maximum car parking rates in accordance with the Parramatta CBD Strategic Transport Study, as required by Transport for NSW.

(c) That Council forward the Planning Proposal to the Department of Planning, Industry and Environment for finalisation and request that the final notification only be undertaken once Council confirms that the Planning Agreement has been signed and entered into.

(d) That Council endorse for finalisation the site-specific Development Control Plan contained at Attachment 4 for insertion in Section 4.3.3 – Parramatta City Centre of Parramatta Development Control Plan 2011, including amendments following public exhibition relating to design controls for the through-site link.

(e) That Council delegate authority to the Chief Executive Officer to finalise the draft Planning Agreement after considering the amendments requested by the applicant but seeking to ensure that the final Planning Agreement satisfies the following principles:

i. That the Planning Agreement be substantially the same as the exhibited version (at Attachment 5);

ii. That Community Infrastructure be levied against all residential uplift that has been facilitated by the Planning Proposal;

iii. That if the development proposes a primarily residential development and any ancillary commercial development on this site is less than the current 2:1 base FSR then the commercial floor space provided should have no impact on the calculation of the community infrastructure payable;

iv. If the development proposed is a mixed-use development and the development provides commercial floor space greater than the 2:1 base FSR or entirely commercial development then no community infrastructure should be charged for any commercial floor space exceeding the 2:1 base FSR on this site. (Note community infrastructure is not applied to any base FSR regardless of the use of this floor space); and

v. That Community Infrastructure not be levied against any bonuses achieved under the Parramatta LEP 2011 (such as design excellence and high performing buildings) or other Environmental Planning Instruments (such as the Affordable Rental Housing or Seniors Housing SEPPs).

(f) That the Chief Executive Officer be authorised to sign the Planning Agreement on Council’s behalf.

(g) That Council authorise the Chief Executive Officer to make any minor amendments and corrections of a non-policy and administrative nature that may arise during the plan amendment process relating to the Planning Proposal, Development Control Plan and Planning Agreement.

(h) Further, that Council note that the Parramatta Local Planning Panel’s advice to Council (Attachment 1) is consistent with the recommendations of this report.

Note: A Notice of Motion of Rescission signed by Councillors Barrak, Bradley and Wilson was lodged after the close of the meeting in relation to this matter.

19. Notices of Motion

19.1

SUBJECT NOTICE OF MOTION: Automated Pedestrian Crossings and Use of Sensors

REFERENCE F2019/04433 - D07561700

FROM Councillor Pandey

2861

RESOLVED (Pandey/Barrak)

(a) That Council write to Transport for NSW to extend its Automated Pedestrian Crossings Program to identify high use pedestrian crossings in the City of Parramatta around universities, schools and the Parramatta CBD and automate these pedestrian crossings to reduce the risk of infection due to touch of the pedestrian buttons.

(b) That given the current COVID-19 crisis, Council write to Transport for NSW advocating for contactless interactions throughout the City, particularly in high pedestrian traffic areas, including within the public domain, and specifically for pedestrians wanting to cross signalised intersections.

(c) Further, that Council write to Transport for NSW asking them to consider the installation of sensors to activate the control at signalised intersections as soon as possible.

Note: Councillor Garrard left the Chamber at 8:32pm and returned at 8:34pm during consideration of Item 19.1.

20. Questions on Notice

Nil

Note: Prior to moving into Closed Session, the Lord Mayor invited members of the public gallery to make representations as to why any item had been included in Closed Session. No member of the gallery wished to make representations.

21. CLOSED SESSION

2862

RESOLVED (Tyrrell/Esber)

That members of the press and public be excluded from the meeting of the Closed Session and access to the correspondence and reports relating to the items considered during the course of the Closed Session be withheld. This action is taken in accordance with Section 10A(s) of the Local Government Act, 1993 as the items listed come within the following provisions:-

1 FOR APPROVAL: 21 Sturt Street, Telopea - Future Occupation of Premises. (D07315810) - This report is confidential in accordance with section 10A (2) (c) (d) of the Local Government Act 1993 as the report contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business; AND the report contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret.

21.1

SUBJECT FOR APPROVAL: 21 Sturt Street, Telopea - Future Occupation of Premises

REFERENCE F2019/04434 - D07315810

REPORT OF Property Services and Space Management Manager

2863

RESOLVED (Garrard/Esber)

(a) That Council lease part of the Dundas Area Neighbourhood Centre located at 21 Sturt Street, Dundas, to Dundas Area Neighbourhood Centre Incorporated on the terms and conditions outlined in paragraph 8 of this report.

(b) Further, that Council delegate authority to the Chief Executive Officer to sign all documents in connection with this matter.

Procedural Motion

2864

RESOLVED (Tyrrell/Esber)

That the meeting resume into Open Session.

22. REPORTS OF RESOLUTIONS PASSED IN CLOSED SESSION

The Executive Director Corporate Services read out the resolution for Item 21.1.

23. CONCLUSION OF MEETING

The meeting terminated at 8:45pm.

THIS PAGE AND THE PRECEDING 13 PAGES ARE THE MINUTES OF THE ORDINARY COUNCIL MEETING HELD ON MONDAY, 10 AUGUST 2020 AND CONFIRMED ON MONDAY, 24 AUGUST 2020.

Chairperson

Council 24 August 2020 Item 12.1

FAIR

ITEM NUMBER 12.1

SUBJECT FOR NOTATION: Investment Report for July 2020

REFERENCE F2009/00971 - D07551471

REPORT OF Tax and Treasury Accountant

PURPOSE:

The purpose of this report is to inform Council of the investment portfolio performance for the month of July 2020.

RECOMMENDATION

That Council note the Investment Report for July 2020.

BACKGROUND

1. In accordance with clause 212 of the Local Government (General) Regulation 2005, a report setting out details of all money invested must be presented to Council on a monthly basis.

2. The report must include a certificate as to whether or not the investments have been made in accordance with the Act, the Regulations and the Investment Policy of Council.

ISSUES/OPTIONS/CONSEQUENCES

3. The investment portfolio closing balance as at 31 July 2020 was $533m. The average portfolio holdings held throughout the month was $543.8m.

4. Council holds a diversified range of investment products which as at 31 July 2020 included:

5. The Investment portfolio reported an annualised return of 2.72%% in July, outperforming the AusBond Bank Bill Index benchmark 261 basis points. The monthly returns for the CFS Managed Fund (+1.18% actual) and TCorp Long Term Growth Fund (1.81% actual) were the primary contributors to performance this month, as share and credit market assets continued to rebound strongly.

6. Council engages CPG Research and Advisory & Imperium Markets for assistance in all investment matters relating to advice, risk and portfolio weighting. CPG monitor the portfolio daily and conduct a monthly health check review. This confirms that Council’s portfolio is conducted within Ministerial and rated counterparty guidelines.

7. COVID-19 –Impact on City of Parramatta Portfolio

COVID-19 has adversely influenced financial markets, which in turn, has the potential to affect Council’s investment portfolio.

With regards to financial markets, of importance was the RBA cutting interest rates twice in March 2020, taking the official cash rate down to a record low of 0.25%. Shares (equities) experienced a significant correction, down over -20% in Australian and around -13% globally for the month of March alone. Equities have largely rebounded strongly over the past few months (they are still below their February peak), due to the unprecedented fiscal and monetary policy support from global central banks and governments

The following summarises the performance Covid-19 impact on Council’s various investments types:

Council’s senior floating rate notes (FRNs) make up around 25½% of the total investment portfolio at month-end. The market valuation of Council’s FRNs collectively rose by around ~+0.45% (actual) during July as credit assets continued their positive momentum from recent months (valuations rose).

Council’s FRNs are senior ranked assets and high in the bank capital structure. Advisors expect that, if held to maturity, the FRNs will pay back its original face value ($100.00), along with its quarterly coupons throughout the life of the security.

At month-end, Council’s FRNs are now marked at an unrealised capital gain of $1.55m.

BBB Rated FRN’S As per all FRNs, advisors have no concerns with Council’s investments in “BBB” rated senior FRNs given all counterparties continue to hold robust balance sheets with high levels of capital. On a mark-to-market basis, they were up around $135k or +0.28% (actual) for the month:

Term Deposits Term Deposits account for around 59% of the total investment portfolio at month-end.

Council’s term deposit portfolio was yielding 1.84% p.a. at month-end, with a weighted average duration of around 599 days or 1.6 years. The long average duration will provide some income protection against the low interest rate environment for the next 12 months. As existing deposits mature however, they will inevitably be reinvested at much lower prevailing rates.

The majority of term deposits are likely to be re-invested at rates, which range from 0.75% to 1.00% p.a. going forward as Council’s investment policy is directed towards higher rated banking institutions

T-Corp Long Term Growth Fund Following an $8m additional investment in July 2020, the NSW TCorp Fund accounts for around 5% of Council’s total investment portfolio. The Fund returned +1.27% (actual) during July. Shares (particularly international equities) were again the main contributor to performance.

We anticipate a sustained level of volatility in equity markets, particularly as downside risks to global growth remain, dictated by how long the effects of COVID-19 will remain. Unemployment globally has risen considerably over recent months, with the collective economic impact likely to be more severe than the global financial crisis (GFC).

The Fund should be looked at with a long-term view, with a minimum holding period of +7 years. Given the exposure to the volatile asset of shares, Council should expect to see, on average, a negative month once every 3 months over a long-term holding period.

CFS Global Credit Managed Fund accounts for around 2½% of Council’s total investment portfolio. The Fund gained by +1.12% in July, as the market valuation of the fund’s assets in global credit securities (FRNs and bonds) rose as spreads continued to tighten.

The Fund holds a diverse range of securities across the global credit market. It remains very well diversified by issuer in order to mitigate default risk. It invests in nearly 600 corporate bonds from issuers in various countries and industry sectors. Any spread contraction going forward allows credit and asset-backed holdings to enjoy significant capital gains.

With a running yield of +2½% p.a., we recommend Council retains this “grandfathered” Fund given the alternative to invest in cash and deposits are yielding much lower.

8. Council’s investment portfolio returns are benchmarked to the Ausbond Bank Bill Index to ensure investment returns are acceptable for the investment strategy Council has adopted.

Current and Historical Performance is as follows:

9. Council has a substantial allocation to securities and bonds, as well as the CFS credit managed fund, for additional liquidity requirements. The portfolio is well- spread across maturities, opportunistically utilising capacity available in short – medium terms.

The maturity profile as at 31 July is as follows:

10. Band- Rating limits, comply except for historical grandfathered BBB-/NR ADIs. These investments will comply with the current investment policy within 12 months.

11. The majority of Council’s portfolio is deposits, at 59% of the total assets. The portfolio also includes liquid FRN securities, cash, as well as TCorpIM Long Term Growth Fund.

Approximately 7.4% of the portfolio is less defensive, and is categorised as long-term. The investment portfolio is well diversified in complying assets across the entire credit spectrum; with no one credit dominating.

Council has invested $25M of Long Term Reserve funds (4.77% of the total portfolio) to back specified long-term liabilities with the TCorpIM Long Term Growth Fund.

12. The Portfolio allocation as at 31 July 2020 is as follows:

13. Forecast Budget – Over the month of July 2020, the interest earned was roughly -$44k below the budgeted income

14. The following details are provided on the attachments for information:

· Comparison of average funds invested with loans balance (Attachment 1)

· Average interest rate comparison to Ausbond Bank Bill Index (Attachment 1)

· Investments and loans interest compared to budget (Attachment 1)

· List of all Council investments (Attachment 2)

· CPG Comprehensive Investment report (Attachment 3).

15. The Certificate of Investments for July 2020 is provided below:

Certificate of Investments

I hereby certify that the investments for the month of July 2020 have been made in accordance with the Act, the Regulations and Council’s Investment Policy – Alistair Cochrane, Acting Chief Financial Officer.

CONSULTATION & TIMING

Stakeholder Consultation

16. The following stakeholder consultation has been undertaken in relation to this matter:

Date

Stakeholder

Stakeholder Comment

Council Officer Response

Responsibility

31 July 2020

CPG Research & Advisory

Imperium Markets

All Investments are within Policy guidelines and supported by Councils independent advisor.

Refer CPG comprehensive Report

All Investment are within Policy limits and reconcile to the General Ledger as at 31 July 20

Finance Team

Alistair Cochrane

Acting CFO

Bruce MacFarlane

Treasury & Tax Accountant

Councillor Consultation

17. The following Councillor consultation has been undertaken in relation to this matter:

Date	Councillor	Councillor Comment	Council Officer Response	Responsibility
N/A	N/A	N/A	N/A	N/A

FINANCIAL IMPLICATION FOR COUNCIL

18. Council’s interest income for FYTD 2020/21 is slightly below budgeted income for July (-$44k).

Although rates are likely to stay at low levels, Council has a number of high yielding Term Deposits and Floating Rate Notes that will help cushion the impact on interest income for 2020/21.

Interest income will be analysed at the September quarterly review, an increase in the forecast budget will be dependent on continuing COVID-19 impacts and effect it has on Councils credit and Long Term Growth Funds.

Bruce MacFarlane

Tax and Treasury Accountant

Alistair Cochrane

Chief Financial Officer

Michael Tzimoulas

Executive Director Corporate Services

Attachments:

1 ⇩	Investment and Loans Performance Graph July 2020.pdf	1 Page
2 ⇩	CPG Comprehensive Investment Report - Jul 20.pdf	19 Pages
3 ⇩	List of Council Investments by maturity July 2020.pdf	9 Pages

REFERENCE MATERIAL

Council 24 August 2020 Item 12.2

FAIR

ITEM NUMBER 12.2

SUBJECT FOR NOTATION: Minutes of Audit Risk and Improvement Committee Meeting Held on 28 May 2020

REFERENCE F2020/02054 - D07561088

REPORT OF Coordinator Internal Audit

PURPOSE:

The Audit Risk and Improvement Committee (ARIC) met on 28 May 2020 and this report provides a summary of the key discussion points of the meeting for Council’s consideration.

RECOMMENDATION

That Council note the minutes of the Audit Risk and Improvement Committee Meeting held on 28 May 2020 as provided at Attachment 1.

BACKGROUND

1. Council’s Audit Risk and Improvement Committee (ARIC) comprises of members appointed by the Council. The members of the Committee currently include two (2) Councillors and three (3) independent external members.

2. The Chief Executive Officer, Council’s Auditors and other Council Director(s) and Manager(s) are invited to attend the Committee meetings as observers. This approach is consistent with the Internal Audit Guidelines issued by the Office of Local Government (then Division of Local Government) in September 2010.

3. The Committee meets five (5) times a year with four (4) ordinary meetings and one (1) special meeting to consider Council’s Annual Financial Reports.

4. Under the Committee’s Charter, all meeting minutes are required to be reported to Council. This report provides both a full copy of the minutes and a summary of the key discussion points of the Committee meeting held on 28 May 2020.

5. The ARIC meeting was held remotely in compliance with Office of Local Government (OLG) guidance on attendance by councillors and others at committee meetings during the COVID-19 pandemic.

ISSUES/OPTIONS/CONSEQUENCES

6. The Director Property & Place (formerly Director Property Development Group) provided updates on the Parramatta Square projects which are 3PS, 4PS, 5PS & 7PS, 6PS & 8PS and the Public Domain, and a run through of the updated risk registers of the respective projects.

7. The ARIC considered the quarterly report provided by the Project Manager Legacy Asbestos on the asbestos activities undertaken by Council. It was noted that Council allocated $3M for this year and $2.7M for next year. Council is also working with State Government for funding and compensation of asbestos.

8. The ARIC was updated that a Crisis Management Team (CMT) was formed due to COVID-19 pandemic. The CMT met daily during the initial stage of corona crisis and now meets 3 times a week. The key decision makings are in line with the OLG and the NSW Public Health Order.

9. The Internal Ombudsman provided a quarterly update of the activities undertaken by the Internal Ombudsman Shared Service (IOSS). An independent review of the IOSS was undertaken. It was found that the syndicate councils do not undertake the duties in-house that the IOSS are undertaking therefore the services of IOSS will continue.

10. The Director from the Audit Office NSW briefed the Committee on the status of the financial audit for the year ending 30 June 2020. The Audit Office completed remote audit on planning work in April 2020. Interim audit is due on 9 June where they will focus on review of pro-forma financial statements, the impact of new accounting standards, including impacts of COVID-19, asset valuations and early substantiation of transactions. The report on Local Government 2019 was circulated to the ARIC.

11. A progress status report of the 2019/2020 Internal Audit Program was provided to the ARIC. The Committee considered the audit actions implementation summary and commented on those audit actions that are due over 12 months including those that were rated extreme risk. Management and service provider BDO to provide response to the issues raised by ARIC regarding the internal audit report of payroll and leave management.

CONSULTATION & TIMING

Stakeholder Consultation

12. The following stakeholder consultation has been undertaken in relation to this matter:

Date

Stakeholder

Stakeholder Comment

Council Officer Response

Responsibility

23 June 2020

Chair of ARIC

Executive Director Corporate Services

Approved.

Forwarded final draft minutes to ARIC for comment.

Risk & Audit / Corporate Services

Coordinator Internal Audit

24 June 2020

Audit, Risk and Improvement Committee (ARIC)

Independent external members provided feedback.

Feedback incorporated in the minutes.

Risk & Audit / Corporate Services

Coordinator Internal Audit

Councillor Consultation

13. The following Councillor consultation has been undertaken in relation to this matter:

Date

Councillor

Councillor Comment

Council Officer Response

Responsibility

24 June 2020

Councillor representatives on ARIC

No comment received from councilor representatives.

No further action.

Risk & Audit / Corporate Services

Coordinator Internal Audit

FINANCIAL IMPLICATION FOR COUNCIL

14. There are no financial implications associated with this report.

Emily Tang

Coordinator Internal Audit

Bruce Ferguson

Risk & Audit Manager

Alistair Cochrane

Chief Financial Officer

Michael Tzimoulas

Executive Director Corporate Services

Attachments:

1 ⇩

Minutes of Meeting 28 May 2020

5 Pages

REFERENCE MATERIAL

Council 24 August 2020 Item 13.1

ACCESSIBLE

ITEM NUMBER 13.1

SUBJECT FOR APPROVAL: Car Share Fees in the Parramatta Local Government Area

REFERENCE F2020/00077 - D07470722

REPORT OF Traffic & Transport Team Leader

PURPOSE:

To respond to Council’s resolution on 11 May 2020 regarding car share parking permit fees in the Parramatta Local Government Area.

RECOMMENDATION

(a) That Council note that:

a. Council’s Fees and Charges for car share spaces are similar to the commercial market rate for privately owned car spaces in and near the Parramatta CBD;

b. Council receives higher revenue per year from car share spaces than the equivalent metered parking space; and

c. Council’s car share fees are higher than all other councils for all comparable locations analysed in this report.

(b) That no changes be made to the existing car share fees as detailed in Council’s Fees and Charges Schedule.

(c) Further, that Council adopt the Traffic Engineering Advisory Group (TEAG) recommendations made at its meeting of 26 March 2020 regarding consultation for the installation of nine car share parking spaces.

BACKGROUND

1. The Parramatta Traffic Engineering Advisory Group (TEAG) at its meeting of 26 March 2020 considered a report seeking approval to undertake community consultation for the installation of car share parking spaces in the Parramatta Local Government Area (refer to Attachment 1). Council at its meeting of 11 May 2020 considered the TEAG report and resolved in part:

(c) Further, that Item 2003 B1 – Request for Nine Car Share Spaces in Harris Park, Westmead and Epping be deferred for a report back to Council to provide advice on the current commercial market value of car spaces in the Parramatta Local Government Area.

2. The TEAG report of 26 March 2020 was in response to an application received from GoGet car share for the installation of nine dedicated car share parking spaces in Harris Park, Westmead and Epping as detailed below.

i) South side of Ada Street west of Wigram Street, Harris Park

ii) West side of Tottenham Street south of Raymond Street, Harris Park

iii) West side of Lydbrook Street south of Darcy Road, Westmead

iv) North side of Byrne Street west of Lydbrook Street, Westmead

v) West side of Edensor Street south of Kandy Avenue, Epping

vi) West side of Edensor Street north of Ray Road, Epping

vii) North side of Bridge Street east of Kent Street, Epping

viii) East side of Kent Street north of Carlingford Road, Epping

ix) West side of Cliff Road north of Carlingford Road, Epping

ISSUES/OPTIONS/CONSEQUENCES

Car Share Fees

3. According to City of Parramatta’s 2020/21 Fees and Charges Schedule, the below fees apply for on street and at-grade car share parking spaces within the Parramatta Local Government Area (LGA):

a. $4,410 for new and annual renewal applications within the Parramatta CBD core, which is the area bounded by Victoria Road, Wilde Avenue, Parramatta River, Macarthur Street, Harris Street, Parkes Street, Great Western Highway, Pitt Street and Macquarie Street.

b. $2,785 for new and $2,547 for annual renewal applications in metered parking areas outside the Parramatta CBD core.

c. $397 for new and $159 for annual renewal applications outside the Parramatta CBD core and unmetered parking areas.

4. Car share fees were reviewed in 2016 and 2017 and adopted by Council on 13 March 2017. This resolution included programmed increases that are reflected in the current fees.

5. The table below shows the all-day car parking fees in the Parramatta Local Government Area for various locations, including the commercial rate based on the web sites ‘Spacer’ and ‘Parkhound’.

All Day Parking Fees	Within the Parramatta CBD core	Within the metered parking area on the fringes of the CBD	Locations such as Epping, Harris Park and Westmead (not within the metered on-street parking area)
Council owned Multi-storey car park - unreserved space - reserved space	- $3,528 - $5,292/year - $4,410 - $6,615/year	N/A	N/A
Council owned at-grade car parks	N/A	$8 per day*¹ at Marion Street car park	N/A
On-street parking – residents	N/A	- Free (but many spaces time restricted) - $15.50/year¹for a Parking Permit to provide exemption to timed parking restrictions and fees - $5.50, $8 or $9.50 per day¹ in the 10-hour parking area	- Free i - $15.50/year*¹ for a parking permit (where available)
On-street parking – employees	N/A	- Free (but many spaces time restricted) - $5.50, $8 or $9.50 per day*¹ in the 10-hour parking area	- Free - $41.20/year*¹ within the business parking permit area in Harris Park Town Centre to get exemption from timed parking restrictions (only applies to a small number of businesses)
Commercial lease of a car space*² – median price	$3456/year (out of 9 results)	$2592/year (out of 16 results)	$2700/year (out of 58 results including 24 in Epping, 22 in Westmead and 12 in Harris Park; all of these locations are near the car share spaces)

Note: *¹ According to Council’s 2020/21 Fees & Charges Schedule

*² https://www.spacer.com.au & www.parkhound.com.au

6. The table above shows the car share fees in the Parramatta CBD and in the fringe areas are similar to the commercial market rate for privately owned car spaces and that Parramatta’s car share permit fees are higher than its other parking permit fees.

7. The revenue for ticket parking spaces for various locations or restriction types, where there is a nearby car share parking space is provided below. The amounts are for 2018/19 due to COVID-19 affecting the 2019/20 income.

a. 10 hour restrictions (which are generally on the fringe of the CBD) was $1680 per space.

b. 4 hour restrictions (which are on the edge of the CBD, closer than the 10 hour parking) was $2095 per space.

c. Lamont Street (in a residential part of the CBD which has a car share space) was $3600 per space.

d. Horwood Place at grade car park (which has a car share space) was $1,587 per space.

e. East side of Charles Street between Phillip Street and George Street (which has a car share space) was $3262 per space.

8. The revenue information above shows that Council receives a higher income from car share spaces than the equivalent metered parking space.

9. To assist Council in reviewing this matter a comparison of City of Parramatta’s car share fees against the fees charged by City of Sydney and North Sydney Councils is provided below. The comparison includes the fees for resident parking permits.

	City of Sydney	North Sydney Council	City of Parramatta
Car Share Application fees	- $2,430 for a new space - $1,680 for a new operator - $470 for minor changes	$465	- $4,410 in the CBD core - $2,785 outside the CBD core but within metered parking area - $397 for other areas
Car Share Annual Permit fees	$175	$410	- $4,410 in the CBD core - $2,547 outside the CBD core but within metered parking area - $159 for other areas
Fees for the installation of signs per car share space	Included in the application fee	$1,090	Included in the application fee
Fees for the installation of pavement markings per car share space	Included in the application fee	$140	Generally not installed
Parking space levy (applies to off-street pay parking spaces)	$2,490/space/year in accordance with Revenue NSW*³	$2,490/space/year in accordance with Revenue NSW*³	Included in the application and annual renewal fees for Parramatta CBD Core and within the metered parking area on the fringes of the CBD ($880/space/year in accordance with Revenue NSW)
Resident Parking Permit Fees per year	- 1^st vehicle: $42 for very low, $61 for low, $81 for standard and $162 for high environmental impact vehicles - 2^nd vehicle: $63 for very low, $94 for low, $124 for standard and $246 for high environmental impact vehicles	- For 1^st vehicle is $60 and the 2^nd vehicle is $140 - For 1^st motorbike is $45 and the 2^nd motorbike is $100	- $15.50 each

Note: *³ In addition to application fees and annual renewal fees

10. The table above shows the car share fees in the Parramatta CBD and in the fringe areas are significantly higher than City of Sydney and North Sydney Councils car share fees when state government taxes are considered. The comparison of residential parking permits shows that Parramatta has much lower fees than the other two Councils for other types of parking permits

11. GoGet and other operators currently have some car share vehicles outside the CBD core and fringe areas that are operating from ‘floating’ on-street spaces and therefore are not paying any fees to Council. This is not unusual, is legal, and the only adverse impact is on members of the car share organisations.

12. Car share provides a choice for residents and competes with other forms of car access such as leasing, salary packages, car hire, and traditional ownership. Car share companies have suggested that the fees for their permits should be similar to resident parking permits (where applicable) because both permits serve a similar purpose and are for residents.

13. GoGet, the most popular of the 3 companies’ servicing Parramatta has approximately 3000 members in the Parramatta LGA. An increase in permit fees could lead to a reduction in the number of vehicles for these members.

14. The car share fees in locations such as Epping, Westmead, and Harris Park are less that the commercial market rate. However, the commercial rate is generally for under cover secure parking or for storage and therefore not directly comparable with on-street parking spaces.

15. Free on-street all day parking is generally available at or near car share parking spaces in Westmead, North Parramatta, Epping and Rosehill. Some of these locations are in resident parking permit scheme areas (with restrictions generally on one side of the street only) and the fees for car share permit renewals are more than 10 times the cost of resident parking permits. For comparison purposes, Parramatta’s annual car share permit fee (excluding establishment fees) in these areas is greater than Willoughby (excluding metered areas), Inner West and Bayside Councils’ fees, but less than Randwick Council’s fee.

16. Note that none of the nine proposed car share spaces are replacing any metered parking spaces. None of the proposed spaces are located in retail or business areas.

17. In light of the above, it is recommended that Council retain the car share fees in accordance with the current Fees and Charges. It is also recommended that Council adopt the Traffic Engineering Advisory Group (TEAG) recommendations made at its meeting of 26 March 2020 regarding community consultation for the installation of nine additional car share parking spaces.

CONSULTATION & TIMING

Stakeholder Consultation

18. This report seeks Council approval to undertake community consultation in relation to the installation of 9 car share parking spaces in Harris Park, Epping and Westmead.

Date	Stakeholder	Stakeholder Comment	Council Officer Response	Responsibility
N/A	N/A	N/A	N/A	N/A

Councillor Consultation

19. This report is in response to Council’s resolution of 11 May 2020 seeking further information in relation to the TEAG report for undertaking community consultation for the installation of 9 car share parking spaces in Harris Park, Epping and Westmead (ref TEAG 2003B1). Councillor Tyrrell as the mover and Councillor Esber as the seconder were consulted during the preparation of this report. A summary of their comments are provided below.

Date	Councillor	Councillor Comment	Council Officer Response	Responsibility
9 July 2020	Councillor Esber	No comment	N/A	Manager Traffic and Transport
9 July 2020	Councillor Tyrrell	Request for parking meter revenue per space to be included in the report. Advised that car share spaces should be on side streets, away from retail areas. Both comments from Councillor Issa.	Information on parking meter revenue per space has been included in the report. All proposed car share spaces are located as suggested.	Manager Traffic and Transport

FINANCIAL IMPLICATION FOR COUNCIL

20. This report proposes no changes to the existing car share fees as detailed in Council’s Fees and Charges Schedule and to undertake community consultations for the installation of 9 car share parking spaces in Harris Park, Epping and Westmead.

21. Council earned $87,899 from car share in 2019/20.

22. At this stage, this matter has no financial impact upon Council's budget except for consultation which would be undertaken within existing budgets and income from the application fees.

Saniya Sharmeen

Traffic & Transport Team Leader

Richard Searle

Traffic and Transport Manager

Mark Leotta

Group Manager - Development and Traffic Services

Alistair Cochrane

Chief Financial Officer

Jennifer Concato

Executive Director City Planning and Design

Brett Newman

Chief Executive Officer

Attachments:

There are no attachments for this report.

REFERENCE MATERIAL

Council 24 August 2020 Item 14.1

GREEN

ITEM NUMBER 14.1

SUBJECT FOR APPROVAL: Transition to Electric Vehicles in Council's Fleet

REFERENCE F2008/00558 - D07370722

REPORT OF Manager Sustainability & Waste

PURPOSE:

To provide Council with an update on the Electric & Hybrid Vehicle Industry, trends & technologies, as well as State Government plans & initiatives in this growing field.

To update Council on the benefits, costs & opportunities of transitioning Council’s fleet to electric vehicles.

RECOMMENDATION

(a) That Council notes the benefits of both Electric & Hybrid Vehicles for its passenger & truck fleet, as described in this report, with particular focus on the total cost of ownership (TCO) and not just the upfront purchase cost;

(b) That Council purchase and trial a passenger Battery Electric Vehicle for business use and the associated charging infrastructure to be located at the Rydalmere Operations Centre for staff to test drive and verify the comparative costs and benefits over its ‘ownership’ life;

(c) That further work be undertaken to develop a policy to address the future planning, design, installation, maintenance, removal and potential leasing of Electric Vehicle charging stations on public land across the City of Parramatta;

(d) That further work be undertaken to ensure the inclusion of development controls regarding the potential for electric vehicle charging stations for new development and private property;

(e) That Car Share and Ride Share operators are lobbied to transition to electric vehicles with further investigation to occur on the potential opportunity for these forms of transport to replace Council Pool vehicles;

(f) That Council continue to incentivise private leaseback users away from high cost and emission model vehicles; and

(g) Further, that Council make an application to the NSW Government’s Net Zero Plan to subsidise the cost of transitioning passenger and heavy (truck) Battery Electric Vehicles to the fleet.

BACKGROUND

1. At the Council meeting held 14 April 2020, Councillor Bradley tabled the following Notice of Motion regarding the transitioning of hybrid and electric vehicles into Council's fleet:

(a) That a report be provided to the 9 June 2020 Council Meeting on the maintenance and running costs and savings, and other risks and benefits such as emissions reductions, which would arise from the purchase of more hybrid vehicles and electric vehicles including e-bikes in Council’s fleet.

(b) Further, that the report include benefits balanced against likely costs over the average guaranteed battery life and vehicle life; and possible savings from electric vehicle co-funding referred to in the NSW Government’s recent “Net Zero Plan.”

2. Council staff engaged a specialist consultant to address the Notice of Motion and to document the opportunities and costs of transitioning Council’s fleet to electric vehicles. The final report also included an accompanying calculation tool designed to enable Fleet Management staff to consider total cost of ownership (TCO) of standard (internal combustion engine) vehicles versus alternate electric vehicle (EV) options to assist in determining if a business case exists for the purchase of electric vehicles.

3. It should be noted that Council already has 25 Hybrid (petrol/electric) passenger vehicles with 90% of these at CO2 emissions of <110 g/km. These are comprised of Toyota Camry’s, Corolla’s and RAV4’s, and one Subaru XV. Council also installed two electric vehicle charge points at the Horwood Place (City Centre) carpark in 2014. These are currently used by the general public and Secure Parking who purchased a Nissan Leaf electric vehicle to service the CBD parking contract. Two other charge points also exist in the Parramatta CBD at 114 Marsden Street (Westfield carpark) and 12 Macquarie Street (Jesse Street Centre).

4. Council’s Fleet Management Policy and Guidelines (adopted Nov 2005) is currently under review. There is opportunity to revise the environmental criteria for passenger and heavy vehicles in order to work towards our Environmental Sustainability Strategy emissions targets. Currently the Policy offers financial incentives for staff who select leaseback vehicles with lower CO2 emissions, and includes greenhouse offsets through Greenfleet for the private use of vehicles.

5. Council has recently entered into a contract with HUB Australasia for the supply and installation of multi-function smart poles across the Parramatta CBD. These new poles have the capacity to house electric vehicle charge-points on street, including points to allow fast charging to align with current parking restrictions. These smart poles have been included in the design of the Phillip Street (Smart Street) transformation.

ISSUES/OPTIONS/CONSEQUENCES

6. The NSW Government’s Future Transport 2056 provides an integrated vision for passenger and freight transport in NSW. It identifies the need to develop a strategic approach to Electric Vehicles, and commits to delivery of its NSW Electric and Hybrid Vehicle Plan (2019), that outlines NSW Government actions to facilitate the take up of low emission, fuel efficient vehicles. NSW’s Electric and Hybrid Vehicle Plan reflects our growing focus on future mobility and technology innovations which will modernise transport for the community and businesses across state.

7. The NSW Government aims to expand this Plan by developing an Electric Vehicle Infrastructure and Model Availability Program to fast-track the growth of the electric vehicle market in New South Wales. The investment will be targeted by running competitive funding processes that co-fund:

a) the deployment of fast electric vehicle charging infrastructure; and

b) vehicle fleet owners, such as car rental companies, car share companies and local councils, to procure electric vehicles.

8. The NRMA has announced plans to establish Australia’s largest electric vehicle fast-charging network, suitable for a range of vehicles and free to use for members. The $10M investment will deliver at least 40 chargers, more than double the size of the current network of chargers in NSW and the ACT.

9. The global electric vehicle market is growing rapidly, with about 2.1 million electric vehicles sold around the world in 2018. In Australia, electric vehicles are forecast to reach upfront price parity with traditional combustion engine vehicles from 2024. Improved battery technology has also increased vehicle range and reduced costs. Momentum is expected to continue, with some experts estimating that EVs will account for 3 per cent of global sales by 2020, 28 per cent by 2030 and 55 per cent by 2040.

10. In line with the rest of Australia, there are relatively few EVs in NSW. The NSW light passenger vehicle fleet of 2.95 million vehicles includes 1,700 Battery EVs and 28,000 petrol-electric Hybrid vehicles (as at September 2018). About 390 public charging points, including 21 fast chargers, serve the electric and plug-in hybrid EVs, but these numbers are growing steadily as commercial charging providers are starting to install charge points on major roads and highways.

11. The number of EV models available in Australia increased by 44 per cent in 2017, although most of the new models were in the luxury category. Nine new plug-in EVs are expected to be introduced to the Australian market over the next 2-3 years, five of which will be priced below $60,000.

12. Council has a number of strategic alignments supporting a greener fleet, including a broad commitment to “consider” sustainability criteria in all procurement, and an aim to transition the fleet to low carbon options and to support the uptake of electric vehicles. Specific strategic commitments for the City of Parramatta include:

• A commitment to be carbon neutral by 2020

• A broad target to reduce council emissions by 60% by 2038 (c.f. 2015 levels)

• A specific target to reduce fleet emissions by 20% by 2038 (c.f. 2015 levels)

• A commitment to use 50% renewable energy by 2038.

13. Local Government fleet procurers in NSW collectively have the bulk purchasing power to incentivise importers to sell a greater range of electric vehicle models. This means the NSW electric vehicle market will become increasingly competitive and lower cost. Co-funding fleets with the private or local government sector will bring a substantial number of new electric vehicles into New South Wales. These vehicles will be typically resold to the second-hand market after three to five years, giving NSW drivers more electric vehicle options at a lower cost.

14. Transition to electric vehicles requires coordination across multiple parts of the organisation. Considerations include:

• infrastructure/facilities separate to fleet (to install charging infrastructure)

• changes to workshop processes, staff and skills

• training and induction for vehicle users

• keeping vehicles in the fleet for longer to maximise fuel savings, and

• changes in the way vehicles are packaged, financed and incentivised (e.g. tax implications).

15. The Total Cost of Ownership (TCO) of fleet vehicles is highly sensitive to a few major cost elements which can tip the business case for electric vehicles in either direction. These include the capital cost (including depreciation, which is the biggest cost element), fuel/energy consumption, and vehicle maintenance/servicing. Where it applies to personal use of vehicles, Fringe Benefits Tax (FBT) can be almost as significant as depreciation.

16. The data used for the TCO analysis in Council’s study was derived from the most relevant real-world data available. Data benchmarks were developed for each class of vehicle in the Council fleet and for each suitable electrified vehicle available in the market. Where possible, City of Parramatta Council data was used to inform the analysis. An example where relevant available data was used is in vehicle purchase, depreciation values, and average annual kilometres travelled by segment or class of vehicle.

17. The potential maintenance and cost savings increase in hybrid and electric vehicles (including e-bikes) when compared to the traditional internal combustion engine (ICE) vehicles. These elements can be considered as the running or variable costs, since they change with how much the vehicle is used and include factors such as fuel, tyres, scheduled servicing and brakes. (Note: other fixed costs like registration, insurance and interest simply accrue annually regardless of utilisation).

18. The Council study revealed that battery electric vehicles (BEVs) are the least expensive technology to maintain and fuel, saving 77% on average (or approx. $1600 pa) compared to the internal combustion engine (ICE) fleet average. Plug-in hybrid electric vehicles (PHEVs) could save as much a 60% and hybrid electric vehicles (HEVs) offer a 27% saving in running costs over the traditional fleet.

19. The greatest potential to reduce fleet emissions is through adopting Battery EVs powered by renewable energy, delivering a 100% saving compared to the current fleet. While Hybrid vehicles do also achieve a reduction, it is just 29% less than the current fleet on average. E-bikes can reduce emissions when they replace car use but have no impact when replacing walking. Air pollution is also caused by the use of internal combustion engine vehicles, which also create associated health costs in the community. Battery EVs do not create this local tailpipe pollution, but there is an impact on general pollution emissions if charged from grid power (coal-fired power). This can be eliminated by charging from 100% renewable energy, such as the solar power generation at our Rydalmere Operations Centre.

20. Council has a varied fleet comprising over 400 items of plant and equipment, cars and trucks. Around 300 of these are road going vehicles. The scope of the study covered e-bikes, six light vehicle classes and two relevant heavy vehicle applications. Plant and equipment (tractors, mowers, forklifts etc) were not considered as part of this study.

21. The result of the Total Cost of Ownership (TCO) analysis looks at the total cost of owning and using a traditional petrol/diesel vehicle verses a hybrid or electric alternative. Hybrid EV’s provide the greatest opportunity to reduce TCO for Council with 6 of 7 segments (vehicle classes) in Council’s fleet assessed to be less expensive than the current internal combustion engine fleet average. This advantage is broadly maintained where a vehicle is used privately and Fringe Benefits Tax (FBT) is applied. Plug-in Hybrid electric vehicles and Battery electric vehicles offer cost savings in a few categories and Battery electric vehicles are close in some car segments when used in business applications. The burden of FBT greatly impacts any cost advantage battery electric vehicles have for private vehicle (leaseback) use due to the tax applied to their higher purchase costs. The study found that Battery electric vehicle trucks can also provide cost savings over equivalent internal combustion engine trucks in typical use cases. E-bikes can provide costs savings where they substitute cars but will cost more than walking.

22. The report shows that there are already models that fit within Council’s operating parameters. The battery electric Renault Zoe, Kangoo Z.E, as well as Hyundai’s Ioniq battery electric and plug-in hybrid electric and the Mitsubishi Outlander plug-in hybrid electric, all represent zero emissions vehicles that can help council work towards net zero emissions goals without compromising on cost. Battery electric vehicle costs can be even more competitive when the vehicle is kept longer (say 5-6 years) or used in higher mileage applications.

23. Beyond just the operating costs and savings presented in the TCO analysis, there are also benefits to be considered that are not always directly financial or internalised. This can include the cost of emissions (CO2, criteria pollutants, noise) and considerations for corporate social responsibility, leadership, innovation and other aspects. There are also risks to be considered as with any change process or adoption of new technology. Some examples are the uncertainty involved in estimating the depreciation of an individual model new to the market, technology compatibility/interoperability with existing fleet vehicles and systems, potential obsolescence of early models, and even staff acceptance.

24. The Cost-Benefit Analysis for E-bikes, Hybrid, and EV technology is summarised in Attachment 1 by breaking down the technology deployments against some key measurable criteria. The summary shows that E-bikes, Hybrid EV and Battery EV models can already provide cost savings in many fleet segments, and that fully electrified vehicles provide the most convincing combination of benefits across many areas, with their TCO already at or near internal combustion engine parity in most segments, if the vehicles are used primarily for business and kept in the fleet slightly longer than is the current practice.

25. Hybrid EVs are the best financial choice in all but one segment analysed and offer an instant CO2 reduction (35% average). Hybrid EVs represent a no regrets alternative to a typical internal combustion engine vehicle and have no impact on operations. They do not however provide air pollution or leadership benefits or a realistic pathway to be fueled by 100% renewable energy.

26. Plug-in Hybrid EVs are sometimes considered a transition technology and despite their benefits being limited, they can be a true compromise in the sense that they do not achieve the full promise of an EV but do incur many of the costs. Only the Medium SUV segment could utilise the technology for any benefit.

27. Battery EVs provide significant potential benefits for Council and can be a less expensive option than the current internal combustion engine fleet average in all business use cases with some modification to current fleet policy (e.g. fleet service life). For passenger cars, the FBT component incurred for private (leaseback) use is the single biggest barrier to TCO parity and the overall cost-benefit balance.

28. Battery EV light trucks can provide a good business case, particularly where more kilometres and fuel are used. When travelling more than 20,000km per year, the electric truck would become even more cost effective. As an example, garbage compactors cover an average of 21,000km per year in Council’s operation. If the period of ownership is made for 10 years, the electric truck’s advantage is approximately 5% per annum over the diesel alternative.

29. E-bikes can provide some significant savings and support other employee health goals when they are used to replace traditional vehicles. Where e-bikes replace walking (e.g. parking rangers), cost will increase and there is no environmental change, but productivity may increase with higher transit speeds.

30. The NSW government has also released the first stage of its long-flagged Net Zero Climate Change strategy that it hopes will kick start $11.6 billion in private investment in the path to an interim emissions target of reducing emissions by 35 per cent by 2030 based on 2005 levels. The target has been set as part of the NSW government's commitment to reaching zero net emissions by 2050. The plan also brings together a number of previously announced commitments from the NSW government, including a plan to transition the entirety of Sydney’s bus fleet to electric models and a commitment to deploy solar power and battery storage systems across most government run schools.

31. As part of its Net Zero Plan - Stage 1 (2020 – 2030), the NSW Government has committed to delivering the Electric Vehicle Infrastructure and Model Availability Program over the next 3 years. The program will offer funding support for public fast charging and the purchase of electric vehicles by fleet owners including councils. This is a potential source of funding for City of Parramatta Council as it starts its electric vehicle transition.

32. At this stage, the final details of the program are still being refined and finalised by the NSW Department of Planning, Industry and Environment (DPIE). It has been stated that the program will operate as a co-funding or grant arrangement for projects, delivered in a reverse auction manner to allow the market to set the threshold at which assistance is required (and to minimise costs to the government). However, there is currently no published eligibility criteria or funding details. Limited consultation with local government occurred in June 2020, and we understand that an announcement will be made some time in September 2020.

33. Whilst the electric vehicle transition will have implications for electricity grid stability, the use of renewable energy and community greenhouse gas emissions, it also provides other potential areas for engagement by local government. The electric vehicle transition will have a major impact on future fleet vehicle selection and operation, and the development of private and public charging infrastructure. It is therefore recommended that Council staff develop a policy to address the future planning, design, installation, maintenance, removal and potential leasing of Electric Vehicle charging stations on public land across the City of Parramatta.

34. Council doesn’t have any current Electric Vehicle Charging Infrastructure controls for new development (or private property), however staff have provided draft objectives and controls to be included in the draft Parramatta CBD Development Control Plan (DCP) revision, after considering guidance from Australian Industry Group (Ai Group) EV Working Group.

CONSULTATION & TIMING

Stakeholder Consultation

35. The following stakeholder consultation has been undertaken in relation to this matter:

Date	Stakeholder	Stakeholder Comment	Council Officer Response	Responsibility
25 June 2020	Fleet Manager & Group Manager City Operations	Feedback provided on the draft Consultants report dated 15 June 2020	Feedback tabulated and comments incorporated	Manager Sustainability & Waste

Councillor Consultation

36. The following Councillor consultation has been undertaken in relation to this matter:

Date	Councillor	Councillor Comment	Council Officer Response	Responsibility
Nil

FINANCIAL IMPLICATION FOR COUNCIL

37. It is intended that Council continue to consider Hybrid EVs for its passenger fleet and take a leadership position on the purchase of Battery EV’s where total cost of ownership (TCO) permits (trucks included) in order to justify both cost and emissions savings. Funding will be sourced from the existing Council Plant, Fleet & Other Equipment Replacement Program which has a revised budget of $2.15M in 2020/21 for heavy vehicles, plant and equipment.

38. It is also recommended that Council purchase and trial a passenger Battery EV for business use and the associated charging infrastructure located at the Rydalmere Operations Centre, in order for staff to assess and verify the comparative costs and benefits over the life of ownership. Funding for this to be sourced from existing Fleet Replacement and Sustainability budgets and supplemented by grants or subsidies where available.

39. Council can also make application to the NSW Government’s Net Zero Plan to subsidise the cost of transitioning additional passenger and heavy (truck) Battery EVs to the fleet. Further details are expected by September 2020.

40. Council should prepare now for an inevitable transition in their own fleets for, as Battery EVs are likely to be the preferred option for most vehicles by about 2026. By adopting a few Battery EVs now, for a modest cost Councils can learn about charging options and charge management, driver induction and budgeting and planning for different capital and operating cost regimes that arise with using Battery EVs. When Battery EVs become fully cost effective, they can then be deployed effectively for maximum benefit based on our hands-on experience.

Anthony Collins

Manager Sustainability & Waste

Jim Stefan

Group Manager City Assets& Environment

Alistair Cochrane

Chief Financial Officer

John Warburton

Executive Director, City Assets & Operations

Brett Newman

Chief Executive Officer

Attachments:

1 ⇩

Cost-Benefit Summary

1 Page

REFERENCE MATERIAL

Council 24 August 2020 Item 17.1

INNOVATIVE

ITEM NUMBER 17.1

SUBJECT FOR APPROVAL: City of Parramatta Events and Festival Strategy

REFERENCE F2019/04433 - D07536868

REPORT OF Group Manager City Experience

PURPOSE:

To seek Council’s endorsement of the City of Parramatta Events and Festivals Strategy.

RECOMMENDATION

(a) That Council endorse the City of Parramatta Events and Festivals Strategy (Strategy) as detailed in this report.

(b) Further, that Council delegate authority to the Chief Executive Officer to oversee the implementation of the strategy.

BACKGROUND

1. As outlined in the City of Parramatta Marketing and Place Brand Strategy endorsed by Council in February 2020, Parramatta is no longer the capital of Western Sydney and the City’s sphere of influence now reaches beyond its central business district to the region that is Greater Parramatta, which has an elevated status as Sydney’s Central River City.

2. The City of Parramatta Events and Festivals Strategy (Strategy) has been developed in alignment with Council’s endorsed City Marketing and Place Brand Strategy. The City Marketing Strategy identifies the important role that events and festivals play in supporting the acceleration of Parramatta’s repositioning as The Dynamic River City and Economic Powerhouse at the Centre of Global Sydney. Refer to Attachment 2 of this report for the detailed City of Parramatta Events and Festival Strategy document.

3. Council currently directly delivers a vibrant annual events, festivals, and civic program for the community and the city to position the City as a destination of choice for high quality and unique events and festivals.

4. In both 2018 and 2019, Council’s events and festivals program was highest ranked Council service by ratepayers in Council’s annual Customer Satisfaction Survey.

5. Events and festivals play a significant role in building a positive reputation for both Council and the City, and positively contribute to increased spend in local businesses. For the 2019/20 financial year, events and festivals media coverage had an estimated publicity value in excess of $14million and an economic impact of $10.5million.

6. The Strategy delivers a five-year vision for City of Parramatta events and festivals and is to be implemented in two phases:

a. COVID Recovery and Reconnect phase - focuses on the next 12 months:

· Delivery of a mix of online and physical events and festivals that reconnect the community to the city;

· Support local businesses, particularly those businesses impacted by PLR construction, through precinct activations and complementary digital programs and campaigns;

· Increase visitation to the City;

· Support local businesses through increased spend in the City;

· Grow positive perceptions and sentiment for both Council and the City.

b. City Marquee Event Program Establishment phase – focuses on the next three years:

In collaboration with city stakeholders;

· Develop an annual suite of City marquee events and festivals across the year that are aligned to the City Marketing and Place Brand strategy (refer to Attachment 2, Events and Festivals Strategy);

· Develop and deliver event and festival experiences that are uniquely Parramatta;

· Increase visitation to the City;

· Maintain support and increase spend in local businesses;

· Build the City’s positive reputation and grow community pride.

ISSUES/OPTIONS/CONSEQUENCES

7. Council currently makes a significant annual financial investment ($5.3million inclusive of project delivery costs and staffing) in the direct delivery of a vibrant and high quality annual events, festivals and civic programs for the community and the city. The Strategy is designed to leverage Council’s current investment and, through a rebalancing of the current events and festivals program, unlock funding to seed investment (financial and/or in-kind) in new city marquee events and festivals delivered in collaboration with city stakeholders.

8. The Strategy proposes the redesign of certain events and festivals in the current portfolio, in both the short and long term, to help mitigate the historical and future impacts of extreme weather and heat events, and more recently the COVID-19 pandemic.

9. More specifically, the Strategy addresses the realignment of summer events programming to mornings and evenings only; investigates event insurance cover for extreme weather; and incorporates complementary online event programming where appropriate.

10. Success of the Strategy will be measured in a number of ways;

a. Increased visitation to the City – 10% growth in events and festivals attendance year on year;

b. Support local businesses through increased spend in the City – greater than $40 per attendee (pre and post event) currently experienced;

c. Build positive perceptions of the City – greater than 7 out of 10 as measured by our events attendee satisfaction and perceptions surveys.

CONSULTATION & TIMING

Stakeholder Consultation

11. The following stakeholder consultation has been undertaken in relation to this matter:

Date	Stakeholder	Stakeholder Comment	Council Officer Response	Responsibility
September/October 2018	Community consultation led by MI Associates	570 community members surveyed with overwhelming support for Council’s events and festivals program	Community consultation informed strategy development and future investment in events and festivals.	City Experience
September/October 2018	Stakeholder consultation led by MI Associates	32 city stakeholders consulted. Recommended closer working relationship with Council to market and scale impact of events and festivals.	Stakeholder feedback informed the development of the strategy and the approach to the proposed city marquee events program	City Experience

Councillor Consultation

12. The following Councillor consultation has been undertaken in relation to this matter:

Date	Councillor	Councillor Comment	Council Officer Response	Responsibility
24 July 2019	Councillor Workshop #1	Overall support for the direction of the draft strategy.	Council to progress the development of the strategy for a future Councillor Workshop to consider the final draft.	City Experience
29 July 2020	Councillor Workshop #2	Overall support for the strategy approach and the proposed establishment of the city marquee events program. Requested increased focus on supporting local businesses through events and festivals.	Council to finalise draft strategy to present to Council for endorsement.	City Experience

13. The July 2020 Councillor Workshop presentation is in Attachment 1 to this report.

FINANCIAL IMPLICATION FOR COUNCIL

14. The Strategy does not have any direct material financial implications as any funding required for the proposed new events will be offset by a rebalancing of the investments in the current events and festivals portfolio, in addition to our objective to increase third party contributions to the events program through grant funding, sponsorships and participant revenues.

15. The delivery of Council’s events and festivals through the COVID Recovery and Reconnect phase will be funded from within existing Council approved operational budgets in the 2020/2021 Financial Year.

16. To ensure the appropriate management of financial risk relating to events in response to changes to Covid 19 Government guidelines and restrictions, key decision gateways and timeframes have been established for each Council event and festival project during the COVID Recovery and Reconnect phase. Event management options to consider are: physical versus online event delivery; postponement of events; and/or event cancellation.

17. Consideration of Council’s future investment (financial and/or in-kind) in relation to proposed new city marquee events and festivals will be considered by Council for each specific event on a case-by-case basis.

Christopher Snelling

Group Manager City Experience

Alistair Cochrane

Chief Financial Officer

Lindsay Woodland

Executive Director City Engagement and Experience

Brett Newman

Chief Executive Officer

Attachments:

1	Councillor Workshop Events and Festivals Strategy Presentation - 29 July 2020 (confidential)	35 Pages
2	City of Parramatta Events & Festivals Strategy (confidential)	22 Pages

REFERENCE MATERIAL

		Lord Mayor Clr Bob Dwyer	Chief Executive Officer

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