Agenda of Governance Committee Meeting - Tuesday, 28 January 2025

Governance Committee Meeting

28 January 2025

Infrastructure and Planning Committee Report

ITEM 01

Potential Sites for Temporary Car Parking within Liverpool City Centre

Strategic Objective	Evolving, Prosperous, Innovative Continue to invest in improving and maintaining Liverpool’s road networks and infrastructure
File Ref	416295.2024
Report By	Daniel Riley - Manager Development Engineering
Approved By	Noelle Warwar - Manager Community Standards

Executive Summary

At the Council Meeting held on 16th October 2024, a notice of motion was raised to provide a report on potential temporary sites for parking through the CBD including sites under private ownership.

Council’s Traffic and Transport Management Team, Property Team and Facilities Team, have reviewed previous parking studies as well as provided an updated description of the prevailing parking conditions within the Liverpool CBD.

This report details the outcome of the investigation.

RECOMMENDATION

That Council receives the report on potential temporary sites for parking through the CBD including sites under private ownership.

REPORT

Background

At the Council Meeting held on 16 October 2024 meeting, Council resolved to seek a report on potential temporary sites for parking within the CBD including sites under private ownership.

Previously Council engaged a traffic consultant, GTA, in 2017 to prepare its City Parking Strategy Report, which included a study on the existing supply and demand conditions of all on-street and off-street parking spaces.

The study also provided recommendations for best practice parking management strategies to improve accessibility and amenity for its visitors.

Figure 1: LCCP Study Area and Key Precincts

On-Street Car Parking Provision

Referencing the GTA report, the Town Centre has approximately 2,450 on-street parking spaces, of which 540 of these are within the CBD Core.

Broadly speaking, spaces closest to the CBD are restricted to stays of 1 hour or less, with 2-hour restrictions around the retail and services precincts and unrestricted parking provided in non-core and residential areas. Aerial photo imagery was used to confirm and validate the car parking occupancy results where applicable. It was noted that most on-street spaces are fully occupied throughout the day.

Off-Street Car Parking Provision

As shown in Table 1, there are an estimated 9,259 off-street parking spaces within and around the Liverpool City Centre.

Table 1 – Existing Off-Street Car Parking Provisions

Parking Station	Parking Controls	Parking Restrictions	Owner		Supply (No. of Spaces)	Parking Availability - Peak Times
33 Moore Street	Gated	Permanent parkers only		Council	51	Not applicable
Bathurst Street (North)	Metered + VMS sign	3-hour - metered		Council	240	20% available
Bathurst Street (South)	Free	2-hour limit (M-F), 1-hour (Sat)		Council	49	20% available
Civic Place	Gated	3-hours free, paid thereafter		Council	200	Close to capacity
Collimore Park	Free	Unlimited		Council	496	20% available
Lighthorse Park	Free	2 hours free		Council	50	Close to capacity
Norfolk Service way	Metered	1-hour limit metered		Council	26
Northumberland Street	Metered + Free parking + VMS sign	2-hr metered ground floor 3P free and 7P metered parking on upper levels		Council	440	less than 10% available
Speed Street	Free	3-hour limit		Council	87	At capacity
Warren Service way	Gated + VMS sign	Unlimited - Paid		Council	282	20% available
Warren Service way	Gated	Nested/permanent		Council	248	Not applicable
Warren Service way	Gated	Reserved/Contractor/DDA bays		Council	140	Not applicable
Whitlam Leisure Centre/Woodward Park	Free	Unlimited		Council	1,051	Available spaces
Liverpool Hospital	Gated + VMS sign	Unlimited - Paid		NSW Health	1288	Available spaces
Liverpool Plaza	Gated	1 hour free, paid thereafter		Private	230	30% vacancy on rooftop
Sydney Southwest Private Hospital	Gated	Unlimited - Paid		Private	87	Available spaces
Westfield	Gated + VMS sign	3-hour free, paid thereafter		Private	3,438	Less than 20% available
Liverpool Railway Station	Free	1-hour limit, 15-min peak times		Rail Corp	124	At capacity
Warwick Farm Commuter Carpark	Gated + VMS sign	Free for commuters - otherwise paid		Rail Corp	732	Available spaces for commuters
TOTAL SPACES					9,259

Source: Council Data.

Referencing Table 1 the last column indicates there is spare capacity within the CBD. In particular, the car parks with the highest occupancy include privately managed gated car parks with high long-stay fees (over 4 hours). These include Westfields, Liverpool Plaza, Hospitals and the Warwick Farm commuter car park.

Parking Transaction Data

Northumberland Street Car Park

Council has reviewed recent parking transaction data for this car park and notes the following:

· Ground floor car park is fully occupied yet only generates a low number of paid parking transactions. On-site observations note that a majority of vehicles parked on the ground floor are displaying a mobility permit thereby voiding the need to pay for parking or comply with the two-hour (2P) time restrictions;

· The upper levels of the car park generate a high degree of paid transactions indicating encouraging levels of compliance and parking demand; and

· The roof-top has minimal parking availability.

Bathurst Street Car Park (North)

This is a large at-grade car park offering three-hour (3P) metered parking. Recent parking transaction data indicates the car park is being well utilised, however is only generating minimal paid transactions. Once again this is a result of the proliferation of mobility permits which allows people to park all day for free.

Warren Serviceway Car Park

Council has reviewed recent parking transaction data for casual users of this car park (excluding permanent parking) and notes the following:

· There is some spare capacity throughout the day (average of about 50 spaces or less);

· There is a good distribution of car park users based on duration of stay including the following:

o Short Stay – Less than 2 hours (75%)

o Medium Stay – 2 hours to 6 hours (13%)

o Long Stay – over 6 hours (12%)

· Reasonable parking fees (max daily rate of $18 to $20).

Recent increases to CBD Car Parking Provision

Since the GTA Strategy was completed in 2017, the following new parking spaces have became available to the public within the Liverpool City Centre:

· An additional 400 parking spaces at Warwick Farm Train Station;

· An upgraded multi-storey car park at Liverpool Hospital with a capacity of approximately 1,250 car parking spaces (additional 500 car parking spaces). Only a portion of these spaces are available to the public;

· An additional 70 car parking spaces, north of Casula Powerhouse Museum and associated Woodbrook Road underpass; and

· Approximately 200 new car parking spaces in the Liverpool Civic Place development.

Parking Turnover

High levels of parking turnover are considered a desirable outcome as it ensures high utilisation of spaces while also providing greater amenity to shoppers and visitors. Within the Liverpool CBD, turnover can be lower than expected based on what parking controls are in place.

· Off-street car parks that are metered have low parking turnover due to the prevalence of mobility permit holders that are consuming limited parking spaces throughout the day;

· Public and private off-street car parks that are access restricted (e.g. boom-gated, number plate recognition, etc.) are expected to have higher turnover and shorter durations of stay; and

· Privately-owned off-street car parks include higher all-day fees of around $40 which discourage extended all-day parking. They are expected to experience higher levels of turnover.

Potential Temporary Car Parking Sites

As a result of this investigation, Council staff have identified six (6) potential sites (see Table 2 and Figure 2 below) within the Liverpool City Centre that could be repurposed as off-street car parking. Each location is further assessed in the following sections.

Table 2: Details of Potential Sites

Site No.	Address	Description	No. of Spaces (Approx)
1	11-23 Scott Street and 277 Bigge Street (Privately Owned)	The site of 10 lots (approx. 2400 sqm) have access via Scott Street and Railway Serviceway. The lots, owned by a single landowner, comprises of a mix of vacant lots and two-storey buildings and has a current development application approved for the demolition of the existing commercial buildings. The site has the potential to accommodate approximately 40 spaces.	40
2	68-70 Bathurst Street (Privately Owned)	This is an at-grade car park comprising approximately 45 reserved spaces for nearby workers. The site can be accessed via is currently two street access to the site via Bathurst Street and Huckstepp Serviceway.	45
3	40 Scott Street (Council Owned)	The vacant lot is a Council owned site adjacent to the Civic Building with an existing driveway access via Scott Street. The site has an existing two-storey building with concrete paved area which can be developed to an at grade car park. The site has the potential to accommodate approximately 23 spaces. A cost estimate prepared by consultant, T Cubed consulting, for the construction of an at grade carpark at 40 Scott Street indicated a cost of approximately $335,000 for 23 car parking spaces. The did not include contamination assessment and landscaping provision. Consultant fees and contingency have been factored at a 20% and 30% rate respectively. Based on the pro rata rate for construction per space, Council staff have estimated the construction costs associated with each proposed temporary carpark. The breakdown is provided in the financial section of this report.	23
4	133 Bigge Street (Privately Owned)	The is a large vacant lot (approx. 3500 sqm) along Elizabeth Street Opposite the Catholic School. There are 3 vacant lots abutting each other between Bigge Street and George Street; however, 2 of them are approved for development. The lot can be accessed via Bigge Street and Elizabeth Street and was previously operating as a car hire yard and is owned by the Uniting Church. It has the potential to accommodate over 100 cars and would only require civil works including demolition of an existing small commercial building. It is important to note that this building contains asbestos.	100
5	26 Elizabeth Street (Privately Owned)	The vacant lots at 26 Elizabeth Street (approx. 3500 sqm) are along Elizabeth Street Opposite the Catholic School. There are 3 vacant lots abutting each other between Bigge Street and George Street. The site is DA approved however Council staff have undertaken initial discussions with the site owners for its potential temporary use as a car park.	50
6	28 Elizabeth Street (Privately Owned)	The vacant lot is 28 Elizabeth Street (approx. 3000 sqm) and is along Elizabeth Street Opposite the Catholic School. There are 3 vacant lots abutting each other between Bigge Street and George Street. The site is DA approved however Council staff have undertaken initial discussions with the site owners for its potential temporary use as a car park.	50

Figure 2 – Location of possible temporary car parks

Feasibility Analysis of Temporary Sites

As discussed previously, there is an overuse of mobility permits within the CBD. The only operational measure to reduce the misuse of mobility permits is to include access controls at any potential new car parks.

This would require a car park layout that can accommodate an entry and exit lane with a boom gate, plus some form of vehicle detection and a pass reader.

Typically access controlled car parks should include allowance for queuing, or at least storage for one vehicle waiting at the boom gate. Provision of this access control would consume at least a few potential parking spaces, thereby ruling out the likely viability of Site 1 (11-23 Scott Street and 277 Bigge Street) and Site 2 (68-70 Bathurst Street) as new publicly accessible temporary car parks.

However, either of these sites could be used for reserved or pre-booked parking, allowing authorised users to access these small car parks via a remote-controlled sliding gate (i.e. a boom gate solution would not be required). Council could redirect some of its reserved parkers, including staff, into these car parks thereby freeing up scarce spaces for public access.

The most viable option would be the three vacant lots on Elizabeth Street i.e. Sites 4, 5 and 6. These sites have the capacity to include an entry and exit lane with median aisles, boom gates, intercom and vehicle detection.

Noting that the proposed car parks would be temporary in nature, the landowner could potentially undertake development at an opportunity that suits them. Thereby reducing the cost benefit ratio and preventing Council from recuperating the construction costs. This would have to be factored in as part of any leasing agreement.

Construction Costs

A cost estimate prepared by T Cubed Consulting for the construction of an at-grade car park at 40 Scott Street (Site 4) indicated a cost of approximately $335,000 for the provision of 23 parking spaces. The analysis did not account for a contamination assessment and landscaping provision.

Consultant fees and contingency have been factored at a 20% and 30% rate respectively. Based on the pro-rata rate for construction per space, Council staff have estimated the construction costs associated with each proposed temporary car park. The breakdown is provided in the financial section of this report.

It is important to note that in addition to the above construction costs associated with implementing car parking infrastructure, significant operating and leasing costs would also be incurred to manage the sites over the duration of their use. Further financial assessment would need to be investigated if negotiations with landowners are supported to determine cost-benefit feasibility.

Technology Considerations

Council has recently invested in modern parking technology within its off-street car parks including:

· Pay by Plate meters

· Phone parking at the meter

· Variable message signs (live occupancy counts) at the Bathurst Street and Northumberland Street car parks

· Licence plate recognition cameras at the Civic Place Car park

· Mobile parking app being used at the 33 Moore street car park.

Council also provides a webpage showing the current supply of off-street parking spaces within the Liverpool City Centre.

Additional initiatives for consideration include the following:

1. Install Variable Message Signs (VMS) at the Collimore Car Park with real time car counting and occupancy.

2. Install Variable Message Sign (VMS) cantilevered on the façade of the Civic Place Car Park.

3. Improve the Council parking webpage by including real time occupancy information online. An App could be available to consume data from the following sources:

a. Park Agility (VMS provider for Council)

b. TMA (equipment provider for Warren Service way)

c. Parcsafe (equipment provider for Civic Place car park)

d. Other private operators including Westfield, Hospitals, TfNSW, etc.

4. Prepare updated car park plans to incorporate Licence Plate Recognition and Access Control into the Bathurst Street and Northumberland Street Car Parks (as discussed above). This would be instrumental in removing the widescale misuse of mobility parking permits and could free up over 50 to 100 spaces within each car park. It will also have the benefit of dramatically improving access for short stay parkers and reducing the need for enforcement from Council’s Parking Officers.

5. Council to allow for special permits based on approved license plate numbers that would allow legitimate mobility permit holders the right to continue using the car park once gated access control has been introduced.

6. Consider expanding the use of mobile parking apps such as UbiPark (or Ezipark, Kerb, etc.) to provide public information of available parking spaces. These apps could also be used as an access control solution if Council acquires small off-street car parks such as 68-70 Bathurst Street.

Pricing Considerations

The following table shows a comparison of parking rates for some of the key car parks.

Duration of stay	Warren Swy	Westfield	Liverpool Plaza	Liverpool Hospital	Civic Place Car Park	33 Moore Street Car Park	Bathurst Street	Northumberland(Ground)	Northumberland (Level 1 & 2)	Northumberland (Level 3 & 4)
0–0.5 hrs	$3	Free	$4	$4	Free	33 Moore Street car park only has monthly parking @ $282.70, there is no casual parking	$2.80	$2.80	$2.80	Free
0.5–1.0 hrs	$3			$8			$2.80	$2.80	$2.80
1.0–1.5 hrs	$6			$12			$5.60	$5.60	$5.60
1.5–2.0 hrs	$6		$6	$16			$5.60	$5.60	$5.60
2.0–2.5 hrs	$9		$8	$20			$8.40		$8.40
2.5–3.0 hrs	$9		$10	$24			$8.40		$8.40
3.0–3.5 hrs	$12	$6	$12		$6				$11.20	$2.80
3.5–4.0 hrs	$12	$9	$15		$12				$11.20	$2.80
4.0–4.5 hrs	$15	$12	$18		$15				$14.00	$5.60
4.5–5.0 hrs	$15	$15	$40		$20				$14.00	$5.60
5.0–5.5 hrs	$18	$20			$30				$16.80	$8.40
5.5–6.0 hrs		$30							$16.80	$8.40
6.0–6.5 hrs		$40							$19.60	$11.20
6.5–7.0 hrs		$50							$19.60	$11.20
7.0–7.5 hrs										$14.00
7.5–8.0 hrs										$14.00
8.0–8.5 hrs										$16.80
8.5–9.0 hrs										$16.80
9.0–9.5 hrs										$19.60
9.5–10.0 hrs										$19.60
10.0–10.5 hrs
10.5–11.0 hrs
11.0–11.5 hrs
11.5–12.0 hrs
12-24 hrs	$20
Overnight					$50

As can be shown in the table above, Council parking rates are far lower than the average. The reason is that private operators want to encourage turnover and improve accessibility for its short stay visitors.

The main concern is the low cost of 7P parking at the Northumberland street car park. Ideally this should be increased to coincide with parking fees at the Warren Service way car park.

Summary

In summary within the CBD core, there are an estimated 540 on-street spaces (2400 spaces for the Town Centre as a whole) comprising mainly of 1P and 2P restrictions. All on-street spaces are fully occupied throughout the day, an on-street parking audit conducted in 2017 indicated approximately 25% of vehicles displaying a mobility permit park all day, occupying a significant amount of spaces and reducing parking turnover.

There are approximately 9,259 off-street parking spaces within 17 car parks (including nearby Whitlam Centre Car Park and the Warwick Farm Commuter Car Park). A majority of these spaces are situated within or adjacent to the CBD Core.

Council staff have observed low parking turnover within some of its off-street car parks, particularly those that are managed via metered parking controls. This is due to the prevalence of mobility permit holders who are not required to pay for parking and are permitted to park all day in most locations with a 1P or longer restriction. In some parking modules, mobility permit holders are occupying a majority of available spaces. Due to the observed number of these permits, Council considers them to be preventing improved turnover by the public. Mobility permit holders are consuming between 100 – 200 spaces or more per day that could otherwise be used for valid daytime visitors. worst affected car parks include Northumberland Street and Bathurst Street Car Parks.

All other off-street car parks with boom-gate control do not experience issues with mobility permit holders. They are well utilized with most customers staying for under 3 hours. The Warren Service way car park is a good example as it is well managed and has appropriate pricing.

The Northumberland street car park provides all day (7P) parking at a rate of $13.60, which is well below market average. The car park is always full, and its ground level is almost exclusively consumed by mobility permit holders. This car park is managed by metered parking and requires regular patrols by Council Rangers.

The council’s Facilities Team has adopted modern technology to provide a better parking experience for its visitors. This includes Variable Message Signs displaying real-time parking occupancy. Council has also adopted license plate based technology to improve parking compliance and reduce operational issues related to paper parking tickets.

With respect to identifying new parking spaces, Council staff have identified six potential sites that could be repurposed into new Council-managed car parks. Council staff have commenced initial discussions enquiries with the owners of sites 26 Elizabeth Street, 28 Elizabeth Street ,133 Bigge Street and 11-23 Scott Street and 277 Bigge Street for potential negotiation opportunities for leasing their land. The site located at 68-70 Bigge Street is operated by commercial owners and responses are being followed up for their interests.

The most viable options would be the three vacant lots on Elizabeth Street i.e. 26 Elizabeth Street, 28 Elizabeth Street and 133 Bigge Street unused lot. It has the capacity to include an entry and exit lane with median aisles, boom gates, intercom and vehicle detection.

Council could increase parking supply by over 305 spaces in the short term. Any new car parks must be controlled by a gated system (non-metered) to avoid misuse by mobility permit holders. The potential increase in parking supply would not necessarily compensate for the reduction in spaces caused by mobility permits holders parking long term (all day).

Therefore, the first step to increase the provision of parking within the Liverpool CBD is to determine an appropriate measure to provide equity for both mobility permit holders and the general visitors within the Bathurst Street and Northumberland Street carparks. In this case Council should consider adopting new processes that allow permit holders to apply for ongoing access to Council car parks based on their nominated vehicle license plate or similar.

These sites are not suitable for ‘drive-up’ public parking, however, are suitable options for pre-booked or reserved parking. Council could redirect a portion of its reserved parking customers (including some staff), thereby freeing up more public parking spaces within its existing off-street car parks.

Further Investigations

1. Investigate options to improve parking turnover within its existing off-street car parks – namely the Northumberland Street and Bathurst Street Car Parks. This will include assessing the feasibility of removing metered timed parking and replacing it with gated parking controls. This option would be considerably cheaper and faster to implement – compared to acquiring and modifying new off-street parking facilities. This would also free up parking spaces for short stay parkers.

2. Council to administer a new parking permit that would allow mobility permit holders limited access to one of its off-street car parks. This would require the permit holder to apply for free parking access. They would need to nominate their vehicle registration number, which would in turn be registered with a new access control system incorporating licence plate technology.

3. Review parking charges for all day (7P) parking at the Northumberland street car park. They should be increased to align closely with the Warren Service way Car Park.

4. Improve real time information of parking availability through the following initiatives:

a) Introduce Variable Message Signs and car counting at the Collimore Car Park

b) Introduce Variable Message Signs at the entrance to the Civic Place car park with car counting data sourced from the car park management system

c) Improve Variable message signs for Warren Service way allowing better visibility to passing motorists.

d) Provide online live parking occupancy data on a webpage and/or app

FINANCIAL IMPLICATIONS

Costs associated with this recommendation are outside of Council’s current budget and long-term financial plan. The impact on the budget and long-term financial plan are outlined in the table below.

Location	Cost to implement Infrastructure
133 Bigge Street (approx.100 spaces)	$1,500,000
68-70 Bathurst Street (approx.45 spaces)	$150,000 (current at-grade car park)
19-21 Scott Street (approx.10 spaces)	$150,000
40 Scott Street (approx. 20 spaces)	$300,000
26 Elizabeth Street (approx. 50 spaces)	$750,000
28 Elizabeth Street (approx. 50 spaces)	$750,000

Note: All cost estimates are subject to contamination assessment and do not include landscaping provision. Consultant fees and contingency have been factored at a 20% and 30% rate respectively.

It is important to note that in addition to the above construction costs, associated with implementing car parking infrastructure, significant operating and leasing costs would also be incurred to manage the sites over the duration of their use. Further financial assessment would need to be investigated if negotiations with land owners are supported to determine cost-benefit feasibility of each of the car parking sites.

CONSIDERATIONS

Economic	Provide efficient parking for the City Centre.
Environment	Support the delivery of a range of transport options.
Social	Support access and services for people with a disability.
Civic Leadership	There are no civic leadership and governance considerations.
Legislative	There are no legislative considerations relating to this report.
Risk	The risk is deemed to be Medium. Due to the temporary nature of the car parks, significant Council funding and resources would be allocated to private landowners who may develop their land at any suitable opportunity, thereby taking advantage of Councils remediation works and hence reducing their own scope of works. Depending on the timeframes of development, this may result in minimal benefit to the community. The risk is considered outside Council’s risk appetite.

ATTACHMENTS

1. 2017 Liverpool City Centre Precinct Car Parking Strategy Report (GTA)

Governance Committee Meeting

28 January 2025

Budget Committee Report

ITEM 02

Finance Report - December 2024

Strategic Objective	Visionary, Leading, Responsible Ensure Council is accountable and financially sustainable through the strategic management of assets and resources
File Ref	003787.2025
Report By	Vishwa Nadan - Chief Financial Officer
Approved By	Farooq Portelli - Director Corporate Support

Executive Summary

The report provides an update on Council’s budget performance to December 2024.

The December Q2 Budget Review process is currently underway.

Management conducted a comprehensive review of the budget to identify potential savings and efficiencies and is continuing to review vacancies to identify further savings.

The Governance Committee members are invited to note:

 that the 2024/25 year end net cost of services position is now projected at a deficit $5.8m.

 that Management has identified $1.2m savings in salaries expenditure and is continuing to investigate further savings

 that Management has identified $10.5m in operational savings and efficiencies

 the key variations impacting on the projected budget result.

 the risks identified to-date impacting on the projected operating result.

 Council did not have any unrestricted cash as of 31 December 2024.

 Rates in arrears and debtors outstanding.

All budget changes will be included in the December Q2 budget report and presented to Governance Committee at its next meeting.

RECOMMENDATION

That the Governance Committee receives and notes the report.

REPORT

Budget Performance

In June 2024 the Council adopted its 2024-25 operating budget with estimated revenue of $417.4 million and expenditure of $281.2 million. In terms of the net operating result before grants and contributions provided for capital purposes, Council budgeted for a conditional operating surplus of $2.6 million.

The September Q1 Budget Review resulted in revision of 30 June 2025 Net Cost of Service (NCOS) position to an operating deficit of $4.229m.

Subsequent to Q1 Budget Review, Council reversed its previous resolution to sell the 3 Hoxton Park Road Property which was going to generate $14m in cash and $8.4m in profit from sale. Other resolutions were also made to improve Councils financial position in order to comply with financial covenants undertakings with NSW Treasury Corporation and commercial banks.

The December Q2 Budget Review process is currently underway.

This report provides the Governance Committee an update on current issues (see table below) impacting on 2024/25 budget, progress in achieving savings targets as resolved by the Council.

	Budget Impact	Comments
Carparking fees	-$145k	Income from Warren Service Way is below budget. Patrons are using LCP carpark. Delay in installation of plate recognition software.
DA Fees	-$430k	Lower than expected DA’s lodged. At 31^st December, DA’s not yet determined was valued at $1.4m.
Kerb & Gutter Inspection Fees	-$300k	Corelated to DA assessments
Operating Grant – PFAS	-$2.25m	NSW Rural Fire Services has now agreed to do PFAS remediation works. A previously committed grant will no longer be received.
Other Income – Canterbury/ Bankstown Voyager Bridge contributions	-$2.4m	Negotiations are on-going and will likely generate more revenue than budgeted. However, timing is likely of that revenue will not be settled by 30 June 2025
Mattress Recycling Income	-$1.0m	Delays in other councils utilising CEC. Staff are actively engaging with neighbouring Councils, however, unlikely the budgeted income will be realised by 30 June 2025. This is offset by $450k budgeted operating expenditure. This is an emerging risk which needs to be monitored.
Truck Wash Bay Income	-$835k	Equipment (costing $400k) is being procured and its unlikely budgeted income from the initiative will be realised by 30 June 2025. This is offset by $400k budgeted operating expenditure. This is an emerging risk which needs to be monitored.
Sale of Recycled Materials	-$550k	Co-related to Mattress Recycling initiative and sale of co-mingled waste.
Operating Grant – Others	-$350k	This target income was carried forward from previous year. Budget provision for additional FTE’s to actively seek operating grants has been utilised to fund other positions.
Investment Income	+$2.75m	Includes: · Investments at higher market rates and capital gains on FRN’s and TCorp are likely to be achieved. · Higher than expected interest on overdue rates
LCP Outgoings – Contracted Building Managers (Colliers)	-$400k	This expenditure was not included in the original budget. Would otherwise be recoverable from tenants.
LCP Outgoings – Recharge to SGCH	+$190k	St George Community Housing will be charged their share of outgoings.

At its meeting on 10^th December 2024, Council resolved to make $5m operational savings by delaying recruitment of currently vacant positions and operational expenditure (in lieu of selling assets like the CT Lewis building).

Management conducted a comprehensive review of the budget to identify potential savings and efficiencies. Savings identified against the targets to-date are:

	Target	Found
Savings on staff costs	$2.5m	$1.2m
Savings on operational expenditure	$2.5m	$10.5m

Management is continuing to review vacancies and further identify savings to achieve target.

Based on budget adjustments identified to date, the NCOS at 30 June 2025 is projected at a deficit $5.8m.

All budget savings will be factored in as Q2 budget adjustments and presented back to Governance Committee at its next meeting.

Should the Council approve the sale of properties like the CT Lewis Building, the projected deficit will reduce (depending on the sale price), but more importantly improve Council’s unrestricted cash position.

Risks

The following have been identified as further risks with the potential to change the projected budget result for the 2024/25 financial year.

Risk	Budget Impact	Confidence
1. Capital gain on FRN’s and TCorp investment is subject to market conditions. The projected marked to market gain at 30 June 2025 could be lower than projected.	-$500k	Low
2. FAG Operating Grant – The NSW Grants Commission paid 85% of estimated financial assistance grant for FY 2024/25 in advance. Grants Commission could change its policy position to advance payment for FY2025/26.	-+ $1.5m	Low/ Moderate
3. Council is in arbitration with the USU on the lost flex time matter. The cost of untaken leave at the end of June could be higher as a result.	-$3.0m	High
4. Net Loss from Disposal of Assets – As part of the road renewal process, a portion of the road surface is scrapped off and then replaced. The replacement cost is capitalised, however, there is a written down value attached to the portion removed. The cost of write-off depends on the condition of the road at time of renewal and depth of surface removed. Budget includes a provision of $2.5 million, however, the actual cost to June 2025 is not known.	-$500k - $1m	Medium/ High

Cash Reserves

At 31 December 2024, Council had $395 million in cash and investments classified as follows:

	31 December 2024	30 June 2024
Externally Restricted Reserves	$383.5m	$353.3m
Internally Restricted Reserves	$12.8m	$6.9m
Investments in Civic Risk Mutual	$6.5m	$6.5m
Unrestricted cash	($7.7m)	-
Total	$395.2m	$366.6m

Outstanding Rates & Major Debtors

· Rates owed from previous years is $8.9m. A debt collection run is scheduled for end of January 2025. Routine debt collection cycle will recommence in April and October as per normal cycle.

· KARI (old library tenant) - $890k. They have not paid their rent since August 2024

· Canterbury/ Bankstown Council (Voyager Bridge Matter) - $2.8m

ATTACHMENTS

Nil

Governance Committee Meeting

28 January 2025

Strategic Performance Committee Report

ITEM 03

Draft Unsolicited Proposal Policy and Process Guide

Strategic Objective	Visionary, Leading, Responsible Demonstrate a high standard of transparency and accountability through a comprehensive governance framework
File Ref	000359.2025
Report By	David Day - Head of Governance
Approved By	Farooq Portelli - Director Corporate Support

Executive Summary

Council currently manages the risks associated with directly negotiating contracts under its Procurement Policy and associated Procurement Standards.

A draft Unsolicited Proposal Policy and Unsolicited Proposal Process Guide have been prepared to establish additional guidance and governance arrangements for unsolicited proposals. The documents identify when Council will consider direct negotiations in response to an unsolicited proposal and how they will be assessed in a way that minimizes corruption risks.

RECOMMENDATION

That the Governance Committee recommends to Council:

1. that the Draft Unsolicited Proposal Policy and Draft Unsolicited Proposal Process Guide be placed on public exhibition for a period of not less than 28 days, and

2. that the CEO or delegate is authorised to approve the policy and guide if no submissions are received in the public exhibition period, and

3. that any submissions received in the public exhibition period are reported to Council.

REPORT

Council may engage in direct negotiations to procure goods, works, or services, or to progress projects, in limited circumstances permitted under the Local Government Act 1993 and the Local Government (General) Regulation 2021. There is a heightened risk of corrupt conduct and failure to obtain best value for money for residents and ratepayers where Council engages in direct negotiations and enters into single sourced, or non-competed, arrangements.

Council may seek to engage in direct negotiations in response to an unsolicited proposal where:

· the proposal falls within one of the exemptions to tendering under the Local Government Act 1993,

· the proposal provides unique benefits and there are no viable alternatives that do not involve direct negotiation,

· the proposal is positively assessed by reference to assessment criteria specified in the Guide, and

· business structures such as partnerships and joint ventures are established in compliance with the Local Government Act 1993 and OLG guidelines.

The draft Unsolicited Proposal Policy is underpinned by the following principles:

· Council will seek to obtain the best value for money for residents and ratepayers when considering and making decisions about proposals.

· Council will allocate risk wherever it is best able to be managed.

· Council will ensure good public accountability and transparency and will protect the public interest.

· Council will manage actual, potential and perceived conflicts of interest so that decisions are made as fairly and impartially as possible.

· Council will appropriately protect commercial confidentiality and security of material but will balance this against an emphasis on transparency and disclosure of the rationale, processes and outcomes of proposals.

· If a proposal is accepted, effective contract management over the lifecycle of the project is a priority to preserve risk allocation and achieve value for money.

The Unsolicited Proposal Policy and Unsolicited Proposal Process Guide will help Council to manage the risks associated with Unsolicited Proposals and associated direct negotiations in the following ways:

· explaining key terms and raising awareness of risks associated with direct negotiation,

· outlining legal requirements and guidelines, including the ICAC guidelines on direct negotiations,

· drawing attention to the different governance arrangements that apply to solicited proposals and the merits of competition,

· identifying roles and responsibilities, with appropriate oversight by Council’s CEO and governing body, and involvement of probity advisors,

· establishing a transparent, staged process for unsolicited proposals and partnership and joint venture proposals, with clearly defined decision-making gateways,

· specifying assessment criteria for proposals which focus attention on relevant considerations such as the unique benefits of the proposal, its value, and the whole-of-Council impact,

· requiring records to be kept and information reported about proposals.

The resulting framework should significantly improve Council’s approach to unsolicited proposals and direct negotiations. The circumstances it is intended to capture include unsolicited proposals related to property transactions.

FINANCIAL IMPLICATIONS

There are no financial implications relating to the development and implementation of the Draft Policy and Guide and will be undertaken by the Legal and Governance team within existing budgets.

CONSIDERATIONS

Economic	There are no economic and financial considerations.
Environment	There are no environmental and sustainability considerations.
Social	There are no social and cultural considerations.
Civic Leadership	Encourage the community to engage in Council initiatives and actions. Provide information about Council’s services, roles and decision making processes. Deliver services that are customer focused. Operate a well-developed governance system that demonstrates accountability, transparency and ethical conduct.
Legislative	Local Government Act 1993 Local Government (General) Regulation 2021 NSW ICAC Publication Direct negotiations: Guidelines for managing risks 2018 Relevant provisions are set out in the draft Unsolicited Proposal Policy and Unsolicited Proposal Process Guide.
Risk	Direct negotiations and the resulting directly sourced, or non-competed, arrangements are at heightened risk of corrupt conduct and failure to obtain best value for money for residents and ratepayers. Council proposes to build on its management of these risks by creating a policy an guide that deal specifically with unsolicited proposals.

ATTACHMENTS

1. Draft Unsolicited Proposal Policy

2. Draft Unsolicited Proposal Process Guide

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ITEM 01	Potential Sites for Temporary Car Parking within Liverpool City Centre
Attachment 1	2017 Liverpool City Centre Precinct Car Parking Strategy Report (GTA)

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ITEM 03	Draft Unsolicited Proposal Policy and Process Guide
Attachment 2	Draft Unsolicited Proposal Process Guide