Performance Benchmarking for Local government – the next frontier

Last week I participated in a radio interview regarding the wage freeze for WA councillors. Click on the link below to listen to the interview.

WA councillors have been refused a pay increase, with the Salaries and Allowances Tribunal saying elected members and chief executives need to lead by example in tough economic times.
Despite the McGowan Government’s public servant pay freeze legislation not applying to local government, the tribunal ruled a pay freeze for councillors was important to help minimise the need for rate increases.
“The pay freeze legislation identifies the most senior members of government as being leaders within the community and emphasises the importance of the leaders in the community demonstrating wage restraint while the community as a whole endures low wage growth,” the determination found.
“The tribunal equally considers that local government chief executives and their elected representative are leaders within the community and, in line with community expectations, similar wage restraints should apply to them.”
The tribunal acknowledged the difficulties in the community caused by rate increases.
“It can be argued that remuneration of CEOs and elected members comprises a small fraction of a local governments’ overall budgets, the tribunal has concluded that the current climate necessitates an approach to minimise costs of local governments,” the tribunal said.
Legislation to freeze the pay of all MPs, judges and senior bureaucrats was passed by State Parliament this year.

The point I made in the interview is that more work is needed than simply freezing fees paid to elected members. We need to drive efficiency in the services provided by local government. The Town has introduced a number of service benchmarks for the services the Town provides.  We will be using these service benchmarks to drive a more efficient council and hopefully result in a rate reduction this year.

In December 2017 the Consumer Price Index for WA was 0.8%. We know that 66% of our population are aged in the over 55s bracket.  This is a group who have limited work life left with the more senior members of our community on limited incomes through their pensions. I will be striving to provide the same or better council services for reduced cost.

 

Competitive Insurance Quotes – the Local Government exception

Nothing has made me realise more clearly that there are major institutional issues in the local government sector than the issue of local governments obtaining a competitive insurance quote.
It seems like common sense that you get multiple quotes on your insurance premiums – we all do this for our own homes however this common sense approach doesn’t translate to local government. The system relies on elected members to scrutinise the business of local government.
95% of WA local governments place their insurance with LGIS. LGIS use JLT as the Manager of the LGIS scheme. WALGA is the trustee of the LGIS scheme. WALGA earn a brokerage fee on all insurance placed by JLT. WALGA also earn revenue from providing services to LGIS – last year this was $1.4M.
As mentioned in the attached Australian Financial Review article an eastern states law firm is starting a class action against JLT alleging that they charged excessive premiums over many years.

Despite personally calling probably 80 WA local governments multiple times and emailing their Mayors to encourage them to join the Town of Cambridge in running an insurance tender to obtain a competitive price for their local government’s insurance – there has only been ONE local government who has indicated they will also get a competitive insurance quote. We even managed to get a discount fee for the service and still no takers. Who wouldn’t spend $11k to save $300K pa. ??
I am not sure I can explain the disconnect in any other way than there are institutional players particularly the CEOs of local governments who spend all their working lives in the local government industry. They are insiders. They do not want to know that LGIS is not giving them the best value insurance premiums. Despite being advised that the potential savings are significant in the order of 30% they have consistently refused to participate in the competitive insurance process.
A review of the board composition of LGIS board members is telling. The LGIS Board includes WALGA President and Shire President of the East Pilbara Lynne Craigie, deputy President and Mayor of Wanneroo Tracey Roberts and CR Paul Omodei, the CEO of Albany ,Andrew Sharpe, CEO of the Shire of Narrogin Aaron Cook and the WALGA CEO Ricky Burgess.

How can they give oversight to the role of JLT as scheme manager and broker for the LGIS scheme –  when they also derive fees from their work for WALGA which in turn derives a financial benefit from the provision of services to LGIS and a share the brokerage fee that JLT obtains from placing the insurance?

Attached is an article from last week’s Australian Financial Review regarding the possible class action against JLT for alleged rorting and the need for councils to undertake a competitive tender.
I would encourage you to call your own local government Mayor and ask them why they are not trying to save $100Ks per annum by seeking a competitive insurance quote before they renew their insurance with LGIS.
Time has almost run out because you can only go to tender between February and April each year.

 

 

Sunshine Beach Run 2018

 

Last weekend I had the pleasure of opening the Sunshine Beach Run.

The event allows those affected by SIDS, stillbirth and miscarriage to come together and remember lost babies and children, encourages active lifestyle choices and of course raises much needed funds for SIDS and Kids so that it may continue to undertake its invaluable research and education program as well as provide bereavement counselling services.

Last year the raised approximately $150,000 for SIDS and Kids and this year they expect to raise more for this worthy cause hoping to make $1 million dollars raised over the events 8 year history.

It was great to see a number of school children from Hale and Christchurch Grammar as well as families and friends of those affected all come down to what was a perfect morning at City Beach to participate in this amazing beach run.

This event is on each year at the same time and I would hope the local community embrace this opportunity to exercise as a family and raise funds for this important cause. It certainly gives you pause to think about how fortunate we are.

This Sunday 25th February 2018 the Town will be hosting the 2018 Commonwealth Games Queens Baton Relay at City Beach and we will be providing free family activities including a giant water slide, face painting and roving music at the City Beach Amphitheatre and beach area from 12 noon until 2pm. The Baton is anticipated to arrive at approximately 1.40pm so please join us for this once in a lifetime opportunity.

Photo taken by Kyle Spyrides of Soul Gazing Photography who volunteered his time to photograph the event.

SJOG carpark expansion – Sustainable corporate behaviour ?

Today I made a deputation in support of a refusal of SJOG’s application to extend their staff carpark off Station Street to provide an additional 786 parking bays. I made a deputation because in order to facilitate the carpark extension, SJOG has suggested that traffic lights be installed at the intersection of Station St and Cambridge St and the 18 on-street car parking bays in Station St and Cambridge Street which are used by local businesses should be removed. In addition SJOG has indicated they should only pay 17% towards the cost of the traffic lights as that is the likely increase in volume of traffic.

In justifying the installation of a traffic treatment on Cambridge St at the intersection with Station St the applicant ‘s traffic consultant, Transcore referred at the previous DAP hearing to the narrowing of Cambridge St in West Leederville as a basis to justify the suggested traffic treatment at the intersection of Station Street and Cambridge St, Wembley.

I explained to the JDAP members that the narrowing of Cambridge St, West Leederville has resulted regularly in a constant flow of traffic, except when the bus stops which then prevents all the traffic flowing on the road heading east. There is very little on-street parking, and traffic now uses alternate routes such as Lake Monger and Salvado Road causing increased volumes on these lesser roads. This traffic dynamic has caused surrounding local businesses to suffer a significant reduction in their trade as there is no ability to park on the street at any time of the day. We have swapped on street parking for agapanthus and its not helping the local business or promoting a vibrant community.

I explained that the Town intend undertaking a full review of traffic flows in West Leederville with a view to unwinding much of the narrowing of Cambridge Street at this section of West Leederville. I explained to the Panel that they should not take any comfort from the precedent of the narrowing of Cambridge St in West Leederville, in support of the proposed traffic treatment for the intersection of Station St and Cambridge St.

The Station St intersection is too close to the intersection of Harborne St traffic lights, and any further interruption to the flow of traffic will have undesirable consequences to the surrounding residents as this is likely to cause rat running through the residential streets particularly Gregory Street, instead of using Cambridge Street which is the primary distributor.

The loss of 18 on-street bays is also unacceptable. There are a number of local businesses on Cambridge Street and Station Street who rely on such street parking for their customer parking. I noted that Transcore has indicated that volumes of traffic on Cambridge Street are unlikely to increase and has reached a relatively stable level.

At present we believe the narrowing of Cambridge Street in West Leederville has distorted the behaviour of drivers pushing traffic that would otherwise use Cambridge St in order to reach Town to use alternate roads such as Lake Monger Drive and Salvado Road. If the Town unwinds the width of the traffic islands in West Leederville, we anticipate drivers to once again use Cambridge St in order to get into Perth city. It is therefore unrealistic to suggest that traffic volumes on Cambridge Street will remain at the current levels.

Interestingly Mr Benham Bordbar – the Managing Director of Transcore told the DAP members that when he drives through Cambridge St, West Leederville he has never had any problems with the flow of traffic. Then Clayton Higham, DAP member explained his firm belief that traffic congestion is actually in the interests of the local businesses as people can see them better.

Unfortunately for the local businesses the SJOG proposal will result in the removal of 18 on-street car bays so unless customers have jet packs they have nowhere to park the cars that everybody still drives. Of course that is why SJOG needs to expand their carpark !

The proposed development will cost $27 million and will result in an over supply of parking spaces of 706 spaces. This is not consistent with encouraging sustainable modes of transport, and appears to be an easy solution for SJOG without giving any regard for its social responsibility to encourage sustainable behaviours from its staff. Not a great corporate citizen and neighbour.

Why should the Town use ratepayers money to install traffic lights that are only necessary because SJOG want to use Station Street as the entrance to their expanded staff carpark ? Most public hospitals encourage sustainable transport modes for their staff and are reluctant to provide on-site parking easily for staff. SJOG must recognise the impact that these additional volumes of traffic will have on the area as a whole and not expect that traffic signals and treatments to be installed in order to facilitate this significant carpark proposal that results in an oversupply of parking spaces.

Only Cr Timmermanis was prepared to move the Town’s recommendation for a refusal. Unfortunately in a last minute surprise move, Cr Powell decided to resign from DAP in December 2017 which did not provide the Town with any alternate local members who could represent the community. The DAP members while acknowledging the loss of carbays offered no solutions before they refused to second Cr Timmeramnis’ motion, and instead moved an approval.

This is the reason why third party appeal rights to SAT are vitally important. The DAP members gave scant regard to the legitimate concerns of the Town that the development requires a new traffic light controlled intersection and the removal of on-street parking that is used by local businesses in the area.

The applicant’s traffic consultant, Mr Bordbar explained to the Panel his personal experience of no traffic problems on Cambridge St, West Leederville. More than being an irrelevant consideration and certainly not expert evidence, it smacked of a conflict of interest. Mr Higham even had the audacity to say that the Town had not undertaken any studies on the effect on local businesses of the loss of the 18 on-street carbays. Surely if this was a relevant consideration Mr Higham should have moved a deferral of the item.

The Development Assessment Panel sure leaves a lot to be desired. While I support progress and good density, this type of approval despite the obvious negative consequences for local businesses and the community is in my opinion entirely unacceptable and a reason why third party appeal rights need to be introduced urgently to ensure fairness and reasonable outcomes.

Caretaker Period

In December 2016 the Council endorsed an Elections Caretaker policy to ensure the Towns activities and those of its elected members are undertaken in a manner that supports a high standard of integrity.  The policy defined the type of decision which were Major Policy Decisions and stated that so far as is reasonably practicable the CEO should avoid scheduling such major decisions for consideration during the Caretaker period.  One of the reasons for this is that an outgoing council should not be able to bind a future council.

The Caretaker policy provided that only in Extraordinary Circumstances should the CEO submit a Major Policy or Substantial Expenditure decision to Council during the caretaker period.

The definition of Major Policy Decisions included under (a) “Decisions relating to the employment, termination or remuneration of the CEO”.

The policy makes mention in clause 4.2 that the CEO cannot be appointed or dismissed during a Caretaker Period.

The term Extraordinary Circumstances is defined as being :

1. where in the CEO’s opinion the urgency of issue is such that it cannot wait until after the election;
2. where there is the possibility of legal and/or financial repercussions if the decision is deferred or;
3. in the CEO’s opinion it is in the best interests of the Council and/or the Town for the decision to be made as soon as possible.

The provisions in the Caretaker Policy that we adopted in December 2016 are identical to those implemented by a number of other local government’s in WA.

We currently have a council where only one of four current retiring elected members has sought re-election.  That means that three current elected members will be replaced in two months.  It is entirely appropriate as with state and federal levels of government that the Town carefully scrutinise whether decisions on the agenda at this month and next months agenda are properly considered by the current council or should instead be dealt with by a new council.

The Town implemented the Caretaker Policy to provide good government.

Cr Grinceri’s motion for the CEO ANNUAL REVIEW

I decided that pursuant to the Standing Orders 13.1 and 13.4 I could not accept this motion for two reasons:

1. it is ultra vires because we are in Caretaker mode
2. an Annual review means after 12 months and it is not yet 12 months since the CEOs KPIs were set and endorsed at the November 2016 meeting.

While I realise the current elected members felt that they wished to deal with the CEO ANNUAL REVIEW it was not necessary for good government or for the welfare of the ratepayers in the Town to have an early review of the CEO’s performance.  It certainly would not have occurred in the private sector and was not good governance, therefore as the Presiding Member of the meeting I made a ruling that the motion was out of order.

Zero percentage rate rise

Happy to advise that last night at the special Budget meeting, the Town resolved to have a 0% rate increase this year in recognition of the difficult economic times faced by the community and the general need for fiscal restraint.

I share the concerns raised by a number of ratepayers who made submissions on the budget. These are difficult times economically and it is inappropriate of the Town to simply increase rates in order to balance the budget, rather than reduce costs and find efficiencies.  The state government is wrestling with this issue at present as we are all aware and has both reduced costs and increased utility charges.  We know the Towns population comprises mainly of the elderly and families. Two groups who are likely to be asked to bear increased utility charges with limited or no ability to increase their revenue or pension.

The Town has substantial reserves and while we are dipping into those reserves in order to fully fund the undergrounding of power in Floreat, we fully anticipate a recovery on the cost of the underground power of 50% when property owners pay their contribution to the Town.  The ultimate cost to the Town of underground power in Floreat will be $17M. The budget still predicts a surplus in reserves at the end of the year of $8M.

I am sure you would all agree that we should exercise prudence in our decisions.  There is no clear need for rates to increase by 1.5% this year. We should be able to reduce expenditure to deliver a zero rate rise for our ratepayers.  The Town is particularly blessed by the assets and infrastructure within the Town.  The Town has undertaken a substantial program of asset renewal in recent years and this will stand us in good stead going forward.

There is no justification for a rate rise. We should review expenditure, and live within our means. There are many items in the budget that are nice to have but not critical path.

While this year was a revaluation year which means some rates across the Town will vary from last year, this will be as a result of general property valuation movements across the Town as assessed by the Auditor General.

The Town will not be increasing expenditure. This is a first in the history of the Town.

Arbor Day 2017

We celebrated Arbor Day at Lake Monger with local primary school children from Wembley Primary, Lake Monger Primary, City Beach Primary and the International School of WA lending a helping hand to plant this lovely gum tree.

The children enjoyed the morning of ecozone planting and bird watching which was finished off with a sausage sizzle provided by Cambridge Rotary.  A big thankyou to all the volunteers and Town staff who made the day such a memorable event for the school children, in particular thanks to Birdlife WA and Cambridge Rotary, and to the local schools and teachers.

Arbor Day 2017

Coffee with the Mayor

As part of my efforts to make local government more accountable and accessible, I  am doing a coffee clinic at the Coffee Club at Floreat Forum from 10am to 11.30am this Saturday and for the next few weeks.

If you have any issues you would like to discuss or suggestions about things the Town can improve on please feel free to come along.

 

April 2017 Full Council Agenda Abridged

The April council meeting is on tomorrow night, 26 April 2017 at 6pm.

Matters that are on the agenda which may be of interest to the community include:

SCHEME AMENDMENT 33 DV 17.51

The scheme amendment proposes rezoning the carparks around the Wembley Hotel to Local Centre which will then allow the redevelopment of the land currently occupied by the carparks. I refused to sign this scheme amendment due to concerns that it may allow unfettered development on the carparks as we have not finalised our Local Planning Strategy and do not have development controls in our Town Planning Scheme for height and setback. Deputy Mayor Cr O’Connor signed Scheme Amendment 33 allowing it to proceed to advertising.

As a result of advertising the administration has proposed modifications to the scheme amendment namely:

• Scheme Amendment 33 is proposed to be modified to incorporate height limit of 7 storeys with a maximum of 3 storeys on the street frontage of Cambridge and Simper Street and 2 storeys to Alexander Street with a minimum of 6 m setback from Residential Zoned properties and 2m from street frontages.
• Vehicle access is not to be taken from Cambridge Street or from north of the Simper Street cul-de-sac.
• It is proposed that the amendments to Scheme Amendment 33 be readvertised.

YALTARA ROAD TRAFFIC CALMING PROPOSALS CR17.44

The suggested traffic calming measures at a cost of $40,000 were considered at committee as unwarranted.

CITY BEACH PRECINCT PLANNING WORKS CR 17.52

The committee recommended that design development of improvements to pedestrian access between the Fred Burton Carpark and the City Beach foreshore be undertaken including the investigation of traffic calming measures and associated changes to kerbs. Design and construction costs estimates be obtained for the construction of a beachside boardwalk between the north and south sides of Clancy’s restaurant. Design and construction cost estimates be obtained for improvements to the east side of Clancy’s and the carpark between Clancy’s and Odyssea.

CITY BEACH SURF RIDERS CLUB: EXISTING FACILITY CR 17.53

The need to demolish the storage shed currently occupied by the City Beach Surf Riders Club be noted. Approval be given to provide a temporary storage shipping container on the site for a period of 6 months at no cost to the club whilst the Town continues discussions to determine the capacity of the Club to financially support any new potential Club facility.

FRED BURTON CAR PARK CITY BEACH LIGHTING CR 17.54

Tenders be called for Stage 1 work estimated at $170,000.

EMPIRE VILLAGE AND BOULEVARD SHOPPING CENTRE CARPARKING ISSUES CR 17.57

The assessed demand for carparking is at or near capacity at Empire Village and the Boulevard centres. The committee considered whether to extend the carpark into the green open space on the Boulevard. This was rejected by the committee who felt the parking should not be allowed on the verge reserve of the Boulevard.

WEST COAST AMATEUR FOOTBALL CLUB LIQUOR LICENSE CR 17.58

The West Coast Amateur Football Club is applying to the Department of Racing, Gaming and Liquor for a license to sell alcohol on Tuesday to Thursday 5pm to 10.30pm (Dec-Sept) and on Saturdays from 1pm until 12 midnight (April – Sept).

LOCAL PLANNING STRATEGY – INTERIM REPORT

This recommends that the timeframe for preparing the LPS be extended to early 2018 to accommodate further community engagement.

MOTIONS ON NOTICE

DRAFT ANNUAL BUDGET 12.1

The motion proposes that adequate notice be given to elected members of the Draft Annual Budget and that it be provided to them as a fully editable Excel file with noted explanations for significant variations of individual budget line items.  The criteria for assessment of variations be a percentage variation of greater than 5% year to year, any variation of $20K or any new or omitted line item.

COUNCIL APPROVAL OF PUBLIC CONSULTATION MATERUALS FOR LOCAL PLANNING STRATEGY BEFORE DISSEMINATION 12.2

The Town only be able to distribute public consultation materials and information that have been approved for distribution by a majority of elected members, and that such materials be provided to the elected members with at least 2 working days prior to any meeting of elected members.

LOT 501 OMAROO TCE – confidential

PROPERTY ACQUISITION – CITY BEACH – confidential

The Need for a Local Planning Strategy

 

Based on feedback, in my opinion, the Town hasn’t explained well the need for a Local Planning Strategy (LPS) to West Leederville residents.

To clarify, a Local Planning Strategy is required under state planning policy and sets out the long term planning direction of the local government, and provides a rationale for zoning of land. It also provides the basis for making amendments to the Town Planning Scheme.

The Town DOES NOT have a Local Planning Strategy, so we need to prepare one as a matter of priority. The 3 scenarios are not options, but methods that can be used to guide good density across the Town. We are seeking feedback from residents of what they want or don’t want.

The Coast Ward have a number of ways to incorporate density in City Beach and Floreat that haven’t been put on the maps prepared by the Town’s officers.   West Leederville residents may be happy with the density proposed in the West Leederville Activity Centre plan, but the problem with the West Leederville Activity Centre plan is it is in policy. Being in policy alone it is insufficient to prevent development applications to the Joint Development Assessment Panel (JDAP) for increased height or reduced setback that contravene the West Leederville Activity Centre plan.

I urge West Leederville residents to consider the poor development outcomes on Northwood Street, West Leederville (ie 6 storey apartment) and to understand the only way to PROTECT the character of their residential streets is by putting development controls in the Scheme via the Local Planning Strategy. Only then will JDAP and developers be BOUND to the West Leederville Activity Centre plan.

West Leederville has the same concerns about the preservation of the character of its residential streets as Floreat and City Beach, and we can accommodate all those concerns in a carefully planned Local Planning Strategy for the whole Town.

The Town is well ahead of its density targets for Directions 2031. We agree that the projected targets in Perth and Peel at 3.5M are in draft. We will seek confirmation of the targets before preparing the draft Local Planning Strategy. We agree that infrastructure such as schools and road capacity have to be considered as part of this process.  We are consulting with nearby local governments as part of the Local Planning Strategy.

Don’t be distracted from the IMPORTANCE of  developing the local planing strategy for the Town.