Agenda - Byron Shire Council - NSW Government

BYRON SHIRE COUNCIL
ORDINARY MEETING 9 MAY 2013 (8)
5
10
15
20
25
30
35
40
45
50
55
Staff have recently met with representatives from Ballina Shire Council in relation to Commercial
Activities and recognise that the development of a new category for Elite Surf and Community
Coaching within the current Policy is relatively simple, subject to consultation with the other
stakeholders.
Once the category has been developed and considered by Council, the policy will be placed on
public exhibition and submissions considered.
The setting of a market based annual licence fee will require the services of a valuer with the
requisite skills to undertake the valuation process of the Elite Surf and Community Coaching Surf
School category. Council has previously resolved 12-872 to set market based annual fees for all
Commercial Activities covered by the policy in its current form – commercial surf schools, personal
surf schools, and commercial kayaks. It would be appropriate for these valuations to be carried out
at the same time to ensure the establishment of the market based annual fees is based on the
different ‘capacities’ of each Surf School category.
Issuing a sub-licence agreement for this new category, can only be done by Council with the
consent of the Minister of Lands, and the provisions of the 34A Licence agreement between lands
and Council for approved commercial activities. The provisions of the Crown Lands Directive will
apply, which includes the requirement to establish sub-licence agreements by way of a competitive
process.
Council resolution 12-872 detailed the evaluation criteria for future Commercial Activities
competitive processes. These criteria are not all consistent with those already contained in the
current Commercial Activities Policy. Aligning the evaluation criteria in the Policy with those
contained in resolution 12-872 will also be appropriate prior to calling further tenders for
Commercial Activities.
Executive Manager responsible for task implementation:
Executive Manager Corporate Management
Relationship to, priority of, and impact on other projects/tasks:
Council has recently undertaken a tender process for commercial activities and issued 5 year term
sub-licences. Actions arising from Council resolution 12-872 to set market based annual fees, and
to align the evaluation criteria with the current Policy evaluation criteria have been programmed
into Council’s 4-year delivery program in 2015/16 prior to the next scheduled tender in 2017.
Running a second commercial activities tender process will involve substantial resource impacts
for Council, as below.
Financial and Resource Implications:
Local Government Procurement estimate that it costs councils between $8,000 and $15,000 to run
a tender process from beginning to end. This estimate accounts for staff time, miscellaneous
resources, direct costs, administration and councillor time. Undertaking an additional tender
process for commercial activities will negatively impact on other lease/licence activities, in
particular those larger processes currently running and routine operational matters.
There is currently no budget for valuation services to establish market based annual fees,
however, the draft budget 2013/14 could accommodate this cost if it does not exceed $10,000.
Estimates for the cost of these services have not yet been sought.
Legal and Policy Implications:
Establishing an additional Surf School category is consistent with the 34A Licence agreement
between Council and Crown Lands. However, it will be necessary for Council to undertake
consultation with Crown Lands regarding the establishment of market based annual fees for
commercial activities, and this consultation will need to take account of the provisions of the 34A
licence between Council and Crown Lands as the primary legal instrument that facilitates the issue
of sub-licences by Council for commercial activities and the subsequent allocation of income
generated by those sub-licences.
Ordinary Meeting Agenda 09/05/13