BUSINESS PAPER ORDINARY MEETING OF COUNCIL - Armidale Regional Council
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BUSINESS PAPER AGENDA ORDINARY MEETING OF COUNCIL To be held on Thursday, 26 April 2018 1pm at Armidale Council Chambers Members Councillor Simon Murray (Mayor) Councillor Dorothy Robinson (Deputy Mayor) Councillor Peter Bailey Councillor Jon Galletly Councillor Diane Gray Councillor Libby Martin Councillor Andrew Murat Councillor Debra O’Brien Councillor Margaret O’Connor Councillor Ian Tiley Councillor Bradley Widders
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 2 INDEX 1 Civic Prayer and Recognition of Traditional Owners 2 Statement in relation to live streaming of Council Meeting 3 Apologies 4 Disclosure and Declaration of Interests 5 Have Your Say 6 Confirmation of Minutes Ordinary Council - 28 March 2018 7 Mayoral Minute 8 Notices of Motion 8.1 FOR DECISION: Public Display of Former Mayoral Portraits ....................................... 4 9 Reports for Decision - Leadership for the Region 9.1 FOR DECISION: Council Meeting Cycle for Ordinary Meetings for 2018-2019 ........... 5 9.2 FOR DECISION: Endorsement of Draft Revenue Policy (Parts A & B) 2018-2019 ..................................................................................................................................... 7 10 Reports for Decision - Growth, Prosperity and Economic Development 10.1 FOR DECISION: Stronger Country Community Fund .................................................. 11 11 Reports for Decision - Environment and Infrastructure 11.1 FOR DECISION: Modification to DA-198-2016/A - New Boarding School constructed at The Armidale School - Modification concerns the re- calculation of Water and Sewer Contributions under Section 64 of the Local Government Act, 1993 ............................................................................................... 14 11.2 FOR DECISION: Modification to DA-19-2009/A - Deletion of Conditions 7 and 47 ............................................................................................................................... 20 11.3 FOR DECISION: Purchase of crown land to enable access to new Guyra SES HQ .............................................................................................................................. 27 12 Reports for Decision - Our People and Community 12.1 FOR DECISION: Community Small Grant Applications R1 2017/2018 ....................... 28 13 Reports for Information 13.1 FOR INFORMATION: Procurement - Acceptance of Tenders Under CEO Delegated Authority................................................................................................... 30 13.2 FOR INFORMATION: Cash & Investments Report for March 2018 ............................ 32 13.3 FOR INFORMATION: Quarterly Water Adjustment Report ....................................... 36 13.4 FOR INFORMATION: Status of Merger Funds March 2018 ........................................ 38 13.5 FOR INFORMATION: Enterprise Risk Management Framework ................................................................................................................................... 41 13.6 FOR INFORMATION: Rail Trail Business Case ............................................................. 43
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 3 13.7 FOR INFORMATION: Update on Addressing Issues at the University of New England....................................................................................................................... 45 14 Requests for Leave of Absence 15 Authority to Affix Council Seal 16 Committee Reports 16.1 FOR INFORMATION - Minutes - Business Advisory Committee - 13 March 2018 ........................................................................................................................... 48 16.2 FOR INFORMATION: Minutes - Business Advisory Committee - 4 April 2018 ........... 49 16.3 FOR DECISION: Minutes - Armidale Regional Sports Council (Advisory Committee) - 13 March 2018..................................................................................... 50 16.4 FOR DECISION: Minutes - Traffic Advisory Committee Meeting - 3 April 2018. ........ 51 16.5 FOR INFORMATION: Minutes - Regional Growth Advisory Committee - 5 April 2018 ........................................................................................................................... 52 17 Matters of an Urgent Nature 18 Questions on Notice 19 Closed Session 19.1 FOR DECISION: Land Portfolio Divestment Strategy and Plan As this report deals with commercial information of a confidential nature which, if disclosed, confers a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business (Section 10A(2)(c) of the Local Government Act 1993). Council closes the meeting, in accordance with Council's Code of Meeting Practice, as consideration of this matter in open Council would be contrary to the public interest. 19.2 FOR DECISION: Provision of Human Resources, Training and Work Health and Safety Services As this report deals with personnel matters concerning particular individuals (Section 10A(2)(a) of the Local Government Act 1993). Council closes the meeting, in accordance with Council's Code of Meeting Practice, as consideration of this matter in open Council would be contrary to the public interest. (Matters regarding staff discussed ) 19.3 FOR DECISION: Sale of Land For Unpaid Rates As this report deals with the personal hardship of any resident or ratepayer (Section 10A(2)(b) of the Local Government Act 1993). Council closes the meeting, in accordance with Council's Code of Meeting Practice, as consideration of this matter in open Council would be contrary to the public interest. 20 Close of Ordinary Meeting
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 4 Item: 8.1 Ref: AINT/2018/06727 Title: FOR DECISION: Public Display of Former Mayoral Portraits Container: ARC16/0025 Author: Peter Wilson, Acting Program Leader Governance, Risk and Legal Attachments: Nil Submitted by Councillor O’Connor MOTION That the CEO cause a report to come to the next Ordinary Meeting of Council regarding the removal, current location and reinstatement to public display of the Mayoral Portraits of the former Dumaresq , Armidale City and Armidale Dumaresq Mayors. Interim CEO Report The following response appeared in Simon Says (Q&A with the Mayor) on 12 March 2018: Last year council unveiled an online historical resource of the history of mayors for Guyra Shire Council, Armidale City Council, Dumaresq Shire and Armidale Dumaresq Council. Council staff painstakingly digitised mayoral portraits and collected brief biographies on mayors. This resource is available on the council website at www.armidaleregional.nsw.gov.au The actual framed photographic prints that did hang in the Armidale council building foyer have been stored carefully until a suitable place can be found for their display. The extent of the collection of mayoral photographs was becoming too vast for the foyer space. Council also upgraded the foyer area with new paint and a rotating art exhibition managed by NERAM. The foyer space will also be used to showcase council projects and initiatives. Council is yet to determine if the mayoral photographs will be displayed in public and/or where. Additionally, investigations are currently being undertaken looking at placing another screen in the foyer of the Armidale Service Centre for the purpose of a continuing loop displaying this collection of images.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 5 Item: 9.1 Ref: AINT/2018/05961 Title: FOR DECISION: Council Meeting Cycle for Ordinary Meetings for 2018- 2019 Container: ARC16/0620 Author: Peter Wilson, Acting Program Leader Governance, Risk and Legal Attachments: Nil RECOMMENDATION: a) That Ordinary Meetings of Council be held in accordance with the Code of Meeting Practice, Part D Operative Parts, Clause 1.1; and b) That the Ordinary Council Meeting cycle for the 2018-2019 financial year be as follows: - Wednesday 25 July 2018, 1.00pm in Armidale - Wednesday 22 August 2018, 1.00pm in Armidale - Wednesday 26 September 2018, 1.00pm in Guyra - Thursday 24 October 2018, 1.00pm in Armidale - Wednesday 28 November 2018, 1.00pm in Armidale - Wednesday 12 December 2018, 1.00pm in Guyra (Second Wednesday) - Wednesday 27 February 2019, 1.00pm in Armidale - Wednesday 27 March 2019, 1.00pm in Armidale - Wednesday 24 April 2019, 1.00pm in Guyra - Wednesday 22 May 2019, 1.00pm in Armidale - Wednesday 26 June 2019, 1.00pm in Armidale Background: This report deals with arrangements for Ordinary Council meetings for the 2018-2019 financial year. The October meeting date is to be held on Thursday 24 October as the Local Government NSW Annual Conference will be held in Albury from Sunday 21 to Tuesday 23 October 2018. No meeting is scheduled for January 2019. The new Council resolved in September 2017 to hold meetings on a Wednesday commencing at 1.00pm. Key Issues and Risks As per the Code of Meeting Practice, Ordinary Council meetings take place on the fourth Wednesday of each month, except for December and January. The meeting cycle includes a rotation between Armidale and Guyra as both administration centres have suitable meeting room facilities and webcasting capabilities. When setting the time and date, Council should give consideration to the needs of the public, the most effective use of Councillor time and the safety and wellbeing of councillors and staff. The current practice is for Council meetings to be conducted on the fourth Wednesday of each month during the day. If no changes are proposed to when and where ordinary meetings are held, then the Ordinary Council meeting cycle for the 2018-2019 financial year would be as follows: Wednesday 25 July 2018, 1.00pm in Armidale Wednesday 22 August 2018, 1.00pm in Armidale Wednesday 26 September 2018, 1.00pm in Guyra Thursday 24 October 2018, 1.00pm in Armidale
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 6 Wednesday 28 November 2018, 1.00pm in Armidale Wednesday 12 December 2018, 1.00pm in Guyra (Second Wednesday) Wednesday 27 February 2019, 1.00pm in Armidale Wednesday 27 March 2019, 1.00pm in Armidale Wednesday 24 April 2019, 1.00pm in Guyra Wednesday 22 May 2019, 1.00pm in Armidale Wednesday 26 June 2019, 1.00pm in Armidale Workshops/Briefings will be scheduled to allow councillors to meet informally and discuss key projects, strategic planning and emerging issues. Integrated Planning and Reporting Framework Community strategic Plan – Leadership for the Region L2 – Council exceeds community expectations when managing its budget and operations L2.2 – Council implements a business excellence program across its operations L2.2.2 – Implement a Good Governance Framework Stakeholder Engagement Council’s Code of Meeting Practice outlines when and where Ordinary Meetings are held: 1.1 When and where are Ordinary Meetings held? (1) Ordinary meetings of Council will be held on the fourth Wednesday of the months of February to November inclusive, at either 158 Bradley Street, Guyra or 135 Rusden Street, Armidale commencing at 9.00am. (2) Ordinary meetings of Council will be held on the second Wednesday of the month of December, at either 158 Bradley Street, Guyra or 135 Rusden Street, Armidale commencing at 9.00am. (3) Where scheduled meetings of Council fall on a Public Holiday, the meeting will be held on the day immediately after the Public Holiday. Financial Implications There are minimal budgetary impacts associated with the date and timing of meetings. Next Steps Implement the Ordinary Council meeting cycle as determined by council. There will also be an opportunity to review the cycle at a future date, following the release of the new Model Code of Meeting Practice.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 7 Item: 9.2 Ref: AINT/2018/06270 Title: FOR DECISION: Endorsement of Draft Revenue Policy (Parts A & B) 2018-2019 Container: ARC17/1962 Author: Peter Wilson, Acting Program Leader Governance, Risk and Legal Attachments: 1. Draft Revenue Policy - Fees and Charges 2018-2019 (Part A) 2. Draft Revenue Policy - Ordinary Rates and Annual Charges 2018- 2019 (Part B) RECOMMENDATION: a) That the Draft Revenue Policy – Fees and Charges 2018-2019 (Part A) be endorsed; b) That the Draft Revenue Policy – Ordinary Rates and Annual Charges 2018-2019 (Part B) be endorsed; c) That the Draft Revenue Policy (Parts A & B), prepared under the Integrated Planning and Reporting Framework, be placed on public exhibition from Monday 30 April to Monday 28 May 2018; and d) That following the exhibition period (not less than 28 days), a report be presented to Council on 27 June 2018, to consider community submissions and adoption of the Revenue Policy. Background: The purpose of this report is to endorse the Draft Revenue Policy 2018-2019 (Parts A and B) for public exhibition. Key Issues and Risks The NSW Local Government Amendment (Planning and Reporting) Act 2009 introduced a new planning and reporting framework for local government. The framework consists of a suite of documents including: Community Strategic Plan 2017-2027 (10 Years +) A Delivery Program 2017-2021 (4 Year Plan) An Operational Plan 2018-2019 (1 Year Plan) A Resourcing Strategy – comprising the Long Term Financial Plan (10 Year Plan), Workforce Management Plan (4 Year Plan) and Asset Management Strategy (10 Year Plan) The first Delivery Program for the new council will be for a three year period (1 July 2018 to 30 June 2021) in accordance with the Local Government (Council Amalgamations) Proclamation 2016. The Delivery Program 2018-2021 details the principal activities to be undertaken by Council over the next three years to implement the goals outlined in the CSP. It is a statement of commitment to the community by the newly elected council for their term of office.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 8 The Local Government Act 1993 requires a Statement of Council’s Revenue Policy to be included in the Operational Plan. The Revenue Policy includes the following statements for the 2018-2019 year: Part A – Fees and Charges Part B – Ordinary Rates, Annual Charges, Statement of Proposed Borrowings, GST implications, interest on Overdue Rates & Charges o Fees and Charges All fees and charges, not subject to regulatory control, are reviewed on an annual basis. Rate Pegging The NSW Government introduced rate pegging in 1977. Rate pegging limits the amount that Council can increase its rate revenue from one year to the next by a specific figure determined by the Independent Pricing and Regulatory Tribunal (IPART). For the 2018/19 financial year, IPART has determined that Council’s general income may be increased by 2.3 percent. The rate peg applies to general income in total, and not to individual ratepayers’ rates. Councils have discretion to determine how to allocate this increase between different ratepayer categories. Individual rates are also affected by other factors, such as land valuations. General Income comprises income from ordinary rates and special rates only. It does not include income from waste management service charges, water and sewerage services charges. o Rate Freeze Protection Period Due to the Local Government Amendment (Rates Merged Council Areas) Bill 2017, the Ordinary Rates Structure that applied as at the date of the merger, being 12 May 2016, will be protected (rate freeze) for four years from 2016/17 through to and including 2019/20. Council is therefore not permitted to equalise rates across the pre merged LGAs, re-balance rates between rating categories or the percentage of income generated by base/minimum and ad-valorem amounts. Re-balancing would result in some ratepayers paying proportionately less and to offset this some ratepayers would pay proportionately more, which is inconsistent with the objective of the State Government during the rate freeze protection period. o Special Rate Variation (SRV) In June 2014, IPART approved Special Rate Variations for both the former councils. It was determined that Guyra Shire Council may increase its general rate income by 8.0%, including the rate peg of 2.3% and that the increase above the rate peg could be retained in the Councils general income base permanently. It was determined that Armidale Dumaresq Council may increase its general rate income by 12.3%, including the rate peg of 2.3% and that the increase above the rate peg, could be retained in the Councils general income base for 7 years, being the years 2014/15 through to and including 2020/21. Integrated Planning and Reporting Framework Community Strategic Plan – Leadership for the Region L2 – Council exceeds community expectations when managing its budget and operations L2.3 – Council's strategic planning documents are integrated in a way which delivers community outcomes while effectively managing budgets, asset management and workforce planning L2.3.1 – Develop and review Integrated Planning and Reporting Framework in line with statutory requirements Stakeholder Engagement
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 9 A Councillor Workshop was held on 11 April 2018 to provide an overview of the Revenue Policy. Under the provisions of the Act the IPR suite of documents must be exhibited for public comment for a period of 28 days. The Draft Revenue Policy (Parts A and B) will be placed on public exhibition from Monday 30 April to Monday 28 May 2018. Financial Implications A statement on the 2018-2019 Fees and Charges is detailed in the separate Revenue Policy (Part A) document. The Revenue Policy (Part B) provides statements on the 2018-2019 Ordinary Rates and Annual Charges. The rate peg limit of 2.3% will generate an additional $418,000 in ordinary rate revenue. The SRV, when it comes off at 30 June 2021, will reduce the ordinary rate revenue by $1.5 million. o Comparative Rates Bill 2017-2018 & 2018-19 (Based on an average rate assessment for each rating category) Ad-Valorem Ad Valorem Base General Rates Water Sewerage Waste Total Rate Bill $ Change Land Landfill $ Drainage $ Rate Category Cents in the $ $ Amount $ Total $ Access $ Access $ Management $ (Av Ratepayer) % Value $ 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 2018-19 Res i denti a l Armi da l e 132,000 0.004442 0.004611 586 609 468 468 1,054 1,076 220 220 395 410 327 355 150 175 50 50 2,196 2,286 4.11 Res i denti a l Guyra 62,500 0.004271 0.004453 267 278 238 238 505 516 320 220 627 627 272 280 25 25 1,749 1,668 - 4.61 Res i denti a l Ti ngha 4,000 0.063788 0.067034 255 268 243 243 498 511 320 220 438 450 272 280 1,528 1,461 - 4.39 Res i denti a l Wol l omombi 22,000 0.013783 0.014429 303 317 200 200 503 517 109 125 150 175 762 817 7.24 Res i denti a l Ebor 35,000 0.008690 0.009091 304 318 200 200 504 518 109 125 150 175 763 818 7.21 Res i denti a l Hi l l grove 25,500 0.014955 0.015437 381 394 200 200 581 594 109 125 150 175 840 894 6.34 Res i denti a l Non Urba n Armi da l e 255,000 0.002265 0.002360 578 602 485 485 1,063 1,087 220 220 327 355 150 175 1,760 1,837 4.39 Res i denti a l Non Urba n Guyra 110,000 0.002374 0.002272 261 250 259 259 520 509 25 520 534 2.65 Res i denti a l Vi l l a ge 39,100 0.005061 0.004413 198 173 182 170 380 343 272 280 652 623 - 4.50 Bus i nes s Armi da l e 283,000 0.011632 0.012038 3,292 3,407 791 791 4,083 4,198 220 220 1,810 1,890 320 370 150 175 50 50 6,633 6,903 4.07 Bus i nes s Guyra 57,200 0.007662 0.008231 438 471 410 410 848 881 320 220 627 627 514 370 25 25 2,334 2,123 - 9.06 Bus i nes s Ti ngha 4,000 0.061599 0.082991 246 332 259 259 505 591 320 220 438 450 1,263 1,261 - 0.19 Bus i nes s Non Urba n 281,000 0.003518 0.003692 989 1,037 737 737 1,726 1,775 320 370 150 175 2,196 2,320 5.64 Bus i nes s Vi l l a ge 37,500 0.003280 0.003397 123 127 107 107 230 234 230 234 1.91 Indus tri a l Armi da l e 302,000 0.011632 0.012038 3,513 3,635 882 882 4,395 4,518 220 220 1,389 1,419 1,280 1,480 150 175 50 50 7,484 7,862 5.05 Mi ni ng Armi da l e 1,060,000 0.034081 0.035259 36,126 37,375 995 995 37,121 38,370 150 175 37,271 38,545 3.42 Mi ni ng Guyra 25,000 0.008717 0.009060 218 227 252 252 470 479 470 479 1.82 Fa rml a nd Armi da l e 896,000 0.002170 0.002285 1,944 2,047 1,322 1,322 3,266 3,369 109 125 150 175 3,525 3,669 4.09 Fa rml a nd Guyra 920,000 0.002073 0.002135 1,907 1,964 468 468 2,375 2,432 25 2,375 2,457 3.45 Fa rml a nd Intens i ve 397,000 0.009099 0.009330 3,612 3,704 1,147 1,147 4,759 4,851 320 220 5,079 5,071 - 0.16 The water access charge has been reduced to $220, with this saving to be offset by an increase in the water consumption charges, as outlined on pages 10 & 11 of the Revenue Policy (Part B). These changes in pricing reflect Council’s transitioning to the NSW Government’s Best-Practice Management of Water Supply and Sewerage. The core function of Local Water Utilities (LWUs) is the sustainable provision of water supply and sewerage services to the community. Best-practice management is fundamental to the effective and efficient delivery of these services. The Residential Non Urban Guyra rate category will be subject to a new Rural Waste Management Charge of $25 and this charge will be progressively phased in over a 5 year period, in order to bring it into parity with the Rural Waste Management Charge applicable to the former Armidale Dumaresq Council LGA. Refer to page 18 of the Revenue Policy (Part B).
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 10 The Landfill Charge provides for the construction of the new waste disposal facility and will be increased by $25 to $175. o Fees and Charges Highlights - The implementation of best practice water pricing will have an impact on the water consumption charges, particularly for Guyra and Tingha consumers. A new water tariff has been introduced for Guyra Intensive Horticulture operations. Details of the revised pricing structure are outlined on pages 26 and 27. - Armidale Developer Charges – Water have been increased by 10.20% (Page 27). - Transfer Station Waste Disposal Charges have been increased significantly, for example, tyre, lounge and mattress disposal (Page 33). - Introduction of Airport car parking fees for daily and overnight stay (Page 40) Next Steps Council is required by legislation to adopt the IP&R Framework by 30 June 2018.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 11 Item: 10.1 Ref: AINT/2018/06671 Title: FOR DECISION: Stronger Country Community Fund Container: ARC16/0875 Author: Greg Lawrence, Service Leader Economic Development and Marketing Attachments: Nil RECOMMENDATION: a) That Council rank the twelve (12) listed projects in order of merit; and b) That the grant applications be submitted by the 4 May 2018 closing date. Background: The NSW Government has increased the funding for Round 2 of the SCCF by an additional $100 million for local sports infrastructure. A total of $200 million will be available for local sports and amenity projects across Regional NSW. The adjusted Round 2 funding allocation for Armidale Regional Council is $4,575,278 which includes the unspent allocation from Round 1 ($1.275M) and double the allocation for Round 2 ($3.3M). Applications close Friday 4 May 2018. Half of Round 2 allocation ($1.65M) is required to target local sports facilities. Minimum grant amount is $50,000 per project. When seeking grant funding of more than $1 million for a single project, applicants must include a minimum financial co-contribution of at least 25%. Councils are expected to work with sporting and other community groups to identify priority projects and submit applications on behalf of these organisations. Councils are encouraged to consider project partnerships, however only councils can submit an application. Council is required to rank the applications in order of merit. Applications must be submitted on the 4 May 2018 at 5pm. The following list represents both projects submitted by the community as well as Armidale Regional Council (ARC). Grant Ranking Candidate Total $ Funding Other Commentary Lead Projects Required $ Funding $ SCCF Super Council Super ARC Playground - 2,000,000 1,500,000 500,000 Playground Curtis Park similar to Tamworth SCCF Hydrotherapy Council New ARC Facility 2,000,000 1,500,000 500,000 Hydrotherapy facility - near Monkton Aquatic Centre SCCF Mother of 0 Upgrade to ARC Ducks Lagoon 850,000 850,000 Mother of Upgrade Ducks Lagoon
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 12 SCCF Tingha Skate 0 New cover for ARC Park -Cover 150,000 150,000 skate park at Tingha SCCF Guyra 0 Expansion of Community Community 400,000 400,000 existing hub Hub SCCF Armidale AGC Major Community Gymnastics 1,400,000 1,050,000 350,000 expansion of Centre AGC SCCF Armidale 0 4 X synthetic Community Tennis Club 652,000 652,000 grass courts and major improvements to amenities SCCF North 0 Convert gravel Community Armidale 52,000 52,000 court to Tennis Club synthetic grass SCCF Guyra 0 New toilets Community Polocrosse 200,000 200,000 and shower Club blocks SCCF Guyra Gun 0 New toilets Community Club 90,000 90,000 and shower blocks and increasing number of van sites SCCF Hockey New 0 Replacement Community England 700,000 700,000 of lighting; expansion of amenity block and canteen SCCF New England 0 Upgrade Community Mountain Bike 150,000 150,000 mountain bike Club track to international competition standard Total $8,644,000 $7,294,000 Council $1M AGC $350,000
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 13 Key Issues and Risks This is a once in a lifetime opportunity to build and or upgrade key community infrastructure and to provide further key assets to assist in developing ARC area as a great place to live, work, play and invest. Integrated Planning and Reporting Framework Community Strategic Plan - Environment & Infrastructure E3 – The community is provided with the essential and resilient infrastructure it requires for daily life, and has access to a prioritised schedule of infrastructure works E3.4 - Allocate resources & investigate opportunities to access grants & funding to further improve infrastructure across the region. E3.4.1 – Investigate opportunities and make application for grant funding Stakeholder Engagement Community consultation via Council social media as well as emails to sporting groups. Councillor Workshop Financial Implications The Super Playground and Hydrotherapy Pool projects require council to contribute $1Million (ie $500,000 per project). Council could reduce the budget exposure by keeping the playground project to under the $1M threshold. This would mean we only need to fund $500,000 for the hydrotherapy pool. Next Steps Council to rank the above projects so staff can meet the closing deadline of 4 May 2018.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 14 Item: 11.1 Ref: AINT/2018/05991 Title: FOR DECISION: Modification to DA-198-2016/A - New Boarding School constructed at The Armidale School - Modification concerns the re- calculation of Water and Sewer Contributions under Section 64 of the Local Government Act, 1993 Container: DA-198-2016/B Author: Linda Graham, Town Planner Attachments: 1. Attachment 1 - Modification application documents 2. Attachment 2 - Data provided by the applicant- As this attachment deals with commercial information of a confidential nature which, if disclosed, confers a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business (Section 10A(2)(c) of the Local Government Act 1993). Council closes the meeting, in accordance with Council's Code of Meeting Practice, as consideration of this matter in open Council would be contrary to the public interest. (Applicant has requested that details regarding school enrolment and staff numbers remain confidential ) 3. Attachment 3 - Legal advice- As this attachment deals with advice concerning litigation, or advice that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege (Section 10A(2)(g) of the Local Government Act 1993). Council closes the meeting, in accordance with Council's Code of Meeting Practice, as consideration of this matter in open Council would be contrary to the public interest. (Legal advice sought by Council for benefit of Council only ) RECOMMENDATION: That Council resolve to investigate the application of Developer Servicing Plan (DSP) contributions based upon the devising of an Equivalent Tenement (ET) per person, being either an enrolled student or full-time staff member. The method of devising an ET would be based upon water usage data retained by Council. Background: Council has received DA-198-2016/B which seeks to modify the consent by way of deleting Condition 26. The modification application was received on the 9 February 2018 (refer to Attachment 1). DA-198-2016 was issued on the 14 December 2016 and permitted the construction of a new school boarding house. Condition 26 on DA-198-2016 reads as follows: “The owner is required to pay a contribution towards water and sewer infrastructure provided by Council for the benefit of this site in accordance with Council’s Development Servicing Plan for Water and Sewerage. Upon payment of the required contribution or completion of appropriate arrangements for payment, which must be made before the issue of the Occupation Certificate, Council will issue a Certificate of Compliance, pursuant to s.64 of the Local Government Act 1993, and Division 5 of Part 2 of Chapter 6 of the Water Management Act 2000. ADVISING: At the date of determination the applicable contributions are $302,833.30 if paid by 30 June 2017. Please be advised that contributions are indexed annually at the end of each financial year. Contributions applicable at the date of payment can be reviewed on the ‘On-line Services’ on Council’s website”.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 15 The modification concerns the payment of DSP contributions to Council under Section 64 of the Local Government Act, 1993. While the applicant is not arguing that DSP contributions are not applicable under any circumstance, the applicant is arguing that DSP contributions are not payable in connection with the boarding house approved and constructed under DA-198-2016. The applicant is arguing a number of points being: The correct method for calculating DSP contributions should be based upon overall student and staff numbers, this being a better representation of true demand. The presence of an existing DSP credit, having been generated due to increases and decreases in student enrolment and staff over a number of years. The school claims the credit extends to a figure disclosed to Council, with all enrolments and staff increases above this figure being subject to the collection of DSP contributions (refer to Attachment 2). Report: The following history is relevant in considering the modification: DA-98-2015 was issued on the 9 June 2015. It allowed for “Educational Establishment – Alterations and Additions to Existing Boarding house (White House)”. DSP contributions were required to be paid prior to the issue of a Construction Certificate. The DSP contributions were calculated using the “boarding house” category listed in the NSW Water Directorate’s “Section 64 Determinations of Equivalent Tenements Guidelines”. The decision to apply the “boarding house” category in calculating water and sewer contributions was reviewed by Council at a Council Meeting held on the 22 February 2016. At that meeting it was resolved to recalculate the water and sewer contributions using the “hostel” category rather than “boarding house”. This resulted in a reduction of DSP contributions from $96.289.60 to $37,459.84. DA-198-2016 was issued on the 14 December 2016, reverting back to use of “boarding house” as the method of calculation. The amount calculated for payment was $302,833.30. Unlike DA-98-2015, DA-198-2016 required the DSP contributions to be paid prior to the issue of an Occupation Certificate. DA-198-2016/A was amended on the 23 January 2018, to refer specifically to the payment of DSP prior to the issue of a Final Occupation Certificate, allowing an Interim Occupation Certificate to be issued on the 24 January 2018. As mentioned above, the applicant is proposing to delete Condition 26 (requiring no payment of DSP contributions in relation to the recently constructed boarding house) in favour of adopting a formula for calculating DSP contributions based upon student and staff numbers. In reviewing the past application of DSP contributions the following is relevant: DA-1011-2006 (Cricket Sight Screen): DSP contributions were not collected which is not unexpected given the minor nature of the proposed works. DA-1147-2006 (Additions to Class Room Building): DSP contributions were not collected. The rationale behind the non-collection was not found on the file.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 16 DA-94-2007 (Garage): DSP contributions were not collected as the works were minor in nature. DA-182-2007 (New Creative Arts Building): DSP contributions were payable prior to the issue of a Construction Certificate. The amount calculated was $686.40, based upon 0.1 ET for water and sewer usage. The rationale behind the calculation was not found on the file. DA-254-2009 (Alterations and First Floor Additions to Junior School and Construction of New Roof over Outdoor Learning for Transition Classroom): DSP contributions were not collected based upon the following rationale: “The proposed development includes new staff room computer store room and Multifunction Space. In accordance with the Water Directorate Table 6 Standard ET figures, water and sewer ET figure depends on the number of persons and for the proposed development it has been mentioned in SEE that there will be no increase in the pupils and staffs because of the development. Hence no DSP charge applicable”. DA-201-2010 (Alterations and Additions to Boarding House and Classrooms): DSP contributions were payable prior to the issue of an Occupation Certificate. The amount calculated was $29,626.75. The following provides the basis for the calculation: “The proposed development will add 8 bed rooms and 2 dorms which all together will have 17 beds to provide accomodation for additional 16 students. This also involves other minor changes which is not considered to generate any significant additional demand on the Council’s water and sewer system. It has been mentioned that the addition of accomodations will not increase in overall no of students and staff but will increase the school’s ability for term-time boarders. Given the above situation the ET figures from NSW Water Directorate Table 6 Standard ET Figures for Hostel 0.15 Water ET and 0.23 Sewer ET per bed is considered to be relevant. So, Water = 17*0.15 ET = 2.55 ET Sewer = 17*0.23 ET = 3.91 ET”. DA-274-2010 (New Sports Courts): DSP contributions were not payable based upon the following rationale: “NSW Water Directorate suggest to use Food Preparation & Amenities in case of General Amenities and Indoor Facilities. As no additional amenities and food preparation area has been proposed as part of this development, additional demand on water and sewer is considered to be minimum and no developer servicing charge is applicable”. DA-313-2010 (Tree Removal): DSP contributions are not applied to applications seeking permission to remove vegetation. DA-98-2015 was issued on the 9 June 2015. It allowed for “Educational Establishment – Alterations and Additions to Existing Boarding house (White House)”. DSP contributions were required to be paid prior to the issue of a Construction Certificate. The DSP contributions were calculated using the “boarding house” category listed in the NSW Water Directorate’s “Section 64 Determinations of Equivalent Tenements Guidelines”. The rationale behind applying the “boarding house” rate is as follows:
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 17 “Based on discussions with JG, and a search of previous DA submissions, it appears there are no existing DSP credits that can be applied, other than the standard ET credits applicable in POL-181 (see below). TAS may elect to make written representations to justify a reduction in these fee’s, noting any submission must address the likely demand placed on existing infrastructure ie they may argue that the existing number of boarders has been reduced over recent years and hence the 24 new beds are bringing the numbers back up to the pre-existing demand. However, I would make the point that if there is adequate room in other buildings to accommodate existing students, without any need for additions/alterations to that building, TAS could simply proceed with accommodating these existing students in the other building and we have lost any opportunity to be paid for the cost of a. the increase in usage demand, and b. any future maintenance liabilities. As per POL-181 Utilities DSP for Water and Sewer Table 6: Boarding House: Provides for a suggested value of 0.33ET/bed for water and 0.5ET/bed for sewer. The proposal is to create 24 more beds as part of additions/alterations to an existing boarding house. Therefore: Water 24 x 0.33ET = 7.92ET Sewer 24 x 0.5ET = 12.0ET A search of Council records indicates there are no current DSP credits that could be applied, however, given the overall site has been paying water and sewer access charges for more than 10 years, under POL-181 I can apply a 1.2ET credit for water, and 1.0ET credit for sewer. Therefore: Water 24 x 0.33ET = 7.92ET – 1.2ET Credit = 6.72ET Sewer 24 x 0.5ET = 12.0ET – 1.0ET Credit = 11.0ET The information above was forwarded to Council’s Water Manager, and internal DCU staff, so as to confirm the suggested amounts have been calculated correctly. Given no response was received I will assume there is no objection to the proposed amounts, and the DA will be conditioned accordingly”. It appears that the reason for opting for the “boarding house” calculation rather than applying the “hostel” formula had to do with the level of servicing, in particular: “The advice indicates that whilst the activities of laundering, food preparation and cleaning may not necessarily occur within the proposed additional boarding area, they will still need to be provided on the site as a result of the additional boarders”. The decision to apply the “boarding house” category in calculating DSP contributions was reviewed by Council at a Council Meeting held on the 22 February 2016. At that meeting it was resolved to recalculate the DSP contributions using the “hostel” category rather than “boarding house”. This resulted in a reduction of water and sewer contributions from $96.289.60 to $37,459.84. DA-198-2016 was issued on the 14 December 2016, reverting back to use of “boarding
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 18 house” as method of calculation. The amount calculated for payment was $302,833.30. Unlike DA-98-2015, DA-198-2016 required the DSP contributions to be paid prior to the issue of an Occupation Certificate. DA-198-2016/A was amended on the 23 January 2018, to refer specifically to the payment of DSP contributions prior to the issue of a Final Occupation Certificate, allowing an Interim Occupation Certificate to be issued on the 24 January 2018. From the above, it is clear that Council has at various times viewed school boarding facilities as a form of “hostel” and at other times applied the “boarding house” category (as defined within the NSW Water Directorate Guidelines). Whichever formula is applied, the method of calculation should reflect the true demand placed upon public water and sewer infrastructure, as a consequence of development proceeding. The desire to apply DSP charges based upon residential categories stems from perceived demand created by activities beyond that associated with a typical school day (e.g. laundering, showering, food preparation, cleaning etc). In considering application of DSP charges based upon student/staff numbers there is no differentiation between those persons associated with day schooling and those persons associated with boarding. Whether the formula contained within the NSW Water Directorate Guidelines is intended to capture both day and boarding schools is unknown, ultimately however it is the responsibility of the planning authority to interpret and apply the guidelines as seen fit. In an effort to pursue the idea of collecting DSP contributions based upon student/staff numbers, legal advice was initially sought as to what mechanisms needed to be put into place. The advice returned the following observations (refer to Attachment 3): DSP contributions can only be collected where a demand on existing water and sewer public infrastructure is identified. DSP contributions can only be collected upon assessment of a development application. Disagreement that the school can claim a credit. The “student/staff” category in the NSW Water Directorate guidelines (which Council administers) is not necessarily inclusive of residential accommodation. It is considered more likely that the category represents the more common scenario being daytime attendance. The waiving of DSP contributions in relation to DA-198-2016 may set an undesirable precedent and may not advance the objective of “equity” as set out in Council’s policy. In considering the applicant’s request to modify DA-198-2016/A, the following options are open to Council to pass immediate resolution upon: Refusal of the modification, resolving to retain Condition 26 and the DSP calculation based upon “boarding house”; Refusal of the modification, resolving to retain Condition 26 but varying the method of DSP calculation to be consistent with the application of the “hostel” formula (as previously resolved by Council in relation to DA-98-2015); or
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 19 Resolving to support the applicant’s request resulting in the deletion of Condition 26 and the future calculation of DSP contributions using the “person” formula currently contained within the NSW Water Directorate Guidelines. This report recommends that Council continue to investigate the use of the “person” category as the basis for calculating DSP contributions, but that Council devise an ET specific to the school which is based upon current water usage. In this way, the devised ET would better reflect the actual demand on Council’s water and sewer infrastructure generated by the school and would be inclusive of the school’s residential component. It is likely that the devised ET for the school would be greater per person than that set out in the NSW Water Directorate Guidelines, however the basis of the exercise is to ensure that fair compensation is made, particularly going into the future. The continued investigation will also need to: Continue to consider the appropriateness of waiving DSP contributions for the boarding house approved under DA-198-2016, particularly in light of recent legal advice. Devise the wording of a Memorandum of Understanding (or similar agreement) between Council and the applicant in the event that calculation of DSP based upon “person” is accepted. The Memorandum of Understanding would “enshrine” the number of students and full-time staff members above which contributions would be collected. The Memorandum of Understanding would also need to set out the terms under which DSP contributions will be collected. Key Issues and Risks Risk extends to the use of incorrect formulas to calculate DSP contributions. The use of incorrect formulas may result in the collection of insufficient funds. Alternatively, the use of incorrect formulas may exaggerate the demand generated by new development. Integrated Planning and Reporting Framework All relevant matters have been taken into consideration. Stakeholder Engagement Not applicable. The modification has not been subject to public notification and external referrals were not undertaken. Financial Implications All decisions made in relation to DSP contributions must be economically responsible, in so far as the wider community is not disadvantaged. Next Steps To advise the applicant of Council’s decision in regard to this report.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 20 Item: 11.2 Ref: AINT/2018/06093 Title: FOR DECISION: Modification to DA-19-2009/A - Deletion of Conditions 7 and 47 Container: DA-19-2009/B Author: Linda Graham, Town Planner Attachments: 1. Appendix 1: Applicant's justification in support of DA-19-2009/B RECOMMENDATION: That Council delete Conditions 7 and 47 from DA-19-2009/A. Background: Council has received a modification under Section 96(1)(a) of the Environmental Planning and Assessment Act, 1979 in relation to DA-19-2009/A. DA-19-2009 was approved on the 22 March 2010 and allowed for the undertaking of a 72 lot subdivision on land predominantly located within the R2 – Low Density Residential Zone. Physical commencement of the consent has been achieved, meaning the consent is valid despite having being issued more than five years ago. A modification to DA-19-2009 (DA-19-2009/A) was approved on the 20 February 2017. The modification primarily approved an alternate intersection treatment between Grafton Road, Tombs Road and Castledoyle Road. DA-19- 2009/A also sought to remove Condition 36B which required the creation of an easement for public access adjacent to Dumaresq Creek (to be a shared path allowing both pedestrian and bicycle access). Condition 36B read as follows: That the development incorporate an easement 6 metres wide for a future shared path for public access adjacent to the alignment of Dumaresq Creek, at an exact location to be determined in consultation with Council’s Director of Engineering and Works or nominee, to connect Tombs Road and Inces Road. A report was sent to Council in relation to DA-19-2009/A on the 7 December 2016 specifically seeking approval for the deletion of Condition 36B, with the remainder of the modification request to be dealt with under delegation. Council resolved to not support the removal of the easement but did support the remainder of the request being dealt with under delegation. Accordingly DA-19-2009/A was issued on the 20 February 2017 retaining the requirement to create the easement. The easement requirement is now contained in Condition 7 (which relates to Stage 1) and Condition 47 (which relates to Stage 3). The two conditions read as follows: Condition 7 The development shall incorporate an easement 6 metres wide through the northern part of proposed reconfigured Lot 3 in DP 240862 for a future shared path for public access directly adjacent to the alignment of Dumaresq Creek to connect Tombs Road and Inces Road. And; Condition 47 The development shall incorporate an easement 6 metres wide through the northern part of proposed Lot 33 and Lot 32 for a future shared path for public access directly adjacent to the alignment of Dumaresq Creek. to connect Tombs Road and Inces Road. The alignment of the easement shall join the easement provided for the same purpose in Lot 3 DP240862.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 21 Report: DA-19-2009 was determined at a Council Meeting held on the 18 March 2010. At that meeting, the Councillors passed a resolution that an additional condition be included on any consent issued in relation to the creation of an easement for a future shared path. The minutes of that meeting reflect the following passed resolution: That an additional consent condition be included that an easement be provided for future construction of a shared pathway for public access from Tombs Road to Inces Road. This requirement became Condition 36B on DA-19-2009, with the following added emphasis: That the development incorporate an easement 6 metres wide for a future shared path for public access adjacent to the alignment of Dumaresq Creek, at an exact location to be determined in consultation with Council’s Director of Engineering and Works or nominee, to connect Tombs Road and Inces Road. Figure 1 shows the approximate location of the required easement. The required easement would pass through future Lots 32 and 33 and an existing allotment known as Lot 3 in DP240862. The easement would pass through three parcels of private land for the purpose of public access. Figure 1: Approved plan of subdivision under DA-19-2009. The green dotted line indicates the approximate location of the proposed shared pathway easement giving effect to Conditions 7 and 47 on DA-19-2009/A. The applicant is continuing to seek the deletion of this requirement under DA-19-2009/B (now
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 22 contained within Conditions 7 and 47), with a justification provided at Appendix 1 of this report. In particular, the applicant makes reference to cycleway objectives being generally achieved via use of the required emergency access to Inces Road and internal new roads connecting to Tombs Road. Inces Road and Tombs Road would be connected in this way as an alternative to connection along the creek frontage (refer to Figure 2). It is also important to note that the applicant is not proposing to construct a dedicated shared pathway or cycle lane through the development, rather to point out that residents within the development will be able to use the proposed footpaths and roads to access shared pathways to the west and any future shared pathway to the east of the development (should that be the case). The link between Tombs Road and Inces Road would therefore be created. Figure 2: Approved subdivision plan under DA-19-2009/A. The yellow dashed line indicates the location of possible foot and cycle traffic through the development, linking Inces Road to Tombs Road. The concept of a shared pathway along Dumaresq Creek is considered to be a good outcome from a planning and community perspective, however the reasons below also need to be taken into consideration: The landowner does not consent to the creation of an easement for public access purposes.
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 23 Council’s current bicycle strategy (Armidale Bicycle Strategy and Action Plan, 2012) does not explicitly refer to the creation of a shared pathway along the southern section of Dumaresq Creek as it passes through the subject site. Strategic justification for the creation of the easement is considered to be limited given future bicycle linkages along this section of Dumaresq Creek have not been accounted for within the strategy. The strategy does however refer to the creation of a shared path within Tombs Road, connecting into Grafton Road and references Condition 29 on DA-19-2009. Condition 29 reads as follows, and was in addition to former Condition 36B (now Conditions 7 and 47 on DA-19-2009/A): Construction of a shared pedestrian and cycle path of minimum width 2.5m, constructed in gravel and bitumen seal and signposted in accordance with Austroads “Guide to Traffic Generating Principles – Part 14 Bicycles, and following the below route: From the road entry to the subdivision and integrated with the bus stop facility, along the western side of Tombs Road, south to Grafton Road, and Along the northern side of Grafton Road, west to Cookes Road. Details to be provided for approval by the Certifying Authority before the issue of the relevant Construction Certificate for the development. Completed works are to be inspected and approved by the Certifying Authority or works secured for an amount approved by Council’s Development Engineer or nominee, before the issue of the relevant Subdivision Certificate. Condition 29 on DA-19-2009 is now Condition 34 on DA-19-2009/A with an altered reference to Lara Avenue rather than Cookes Road now that the subdivision approved under DA-95-2011/C, at 32 Tombs Road, Armidale, has been constructed. Condition 34 is not under contention and will continue to meet with the 2012 bicycle strategy in this regard. The creation of an easement for public access purposes across private land is considered to be a potential source of future land use conflict. Any easement would likely require fencing in order delineate between the private and public realm. Land along the creek frontage is considered to be flood liable meaning that the replacement or repair of fencing following a flood event is likely and would place additional costs upon Armidale Regional Council. DA-19-2009/A does not require the developer to construct a shared pathway within the easement. The purpose of the easement is to merely set aside land for the construction of a future shared path. It is understood that the construction of a shared pathway along the southern section of Dumaresq Creek does not form part of Council’s capital works programme. As such, there is uncertainty as to when a shared pathway would be constructed, which is further complicated by the lack of justification for the pathway within Council’s current bicycle strategy. It is noted that internal discussions held prior to the determination of DA-19-2009 focussed upon the possible creation of a public reserve along Dumaresq Creek. It was decided at officer level that Council could not legally impose such a requirement given the then landowner was not amenable (unless satisfactory compensation was made) and Council was not administering a contribution plan which sought to collect funds for the construction of a shared pathway. In some ways this situation remains unchanged. It is considered to be legally precarious to impose a requirement to create an easement for public access purposes over private land where there is not strong justification (e.g. a
Armidale Regional Council Ordinary Council Meeting Thursday, 26 April 2018 Page 24 bicycle plan which seeks to create future linkages along this section of the creek). Arguably some justification for the creation of the easement can be derived from the former Development Control Plan (DCP), 2007 (under which DA-19-2009 was determined). Section C1 of the former DCP, which refers to “urban residential subdivision”, contains a section in relation to public open space. The provision does not contain a threshold at which public open space must be provided instead deferring to any open space strategy administered by Council or within the DCP itself. Given the former DCP makes no specific reference to the location or size of future public open space, the assessing officer would have turned to possible open space strategies developed by Council’s Parks and Gardens Department. The assessing officer in respect of DA-19-2009 provided the following commentary in relation to public open space: It is not proposed that this development would provide any additional public open space. Council’s Civic and Recreational Services staff have indicated that provision of additional public land in this location is not desired due to existing amount of open space controlled by Council an(d) associated maintenance costs. The preference in this instance was for land adjacent to Dumaresq Creek to be incorporated into allotments and maintained privately. Additionally, it was considered that in the context of the low density residential subdivision (with allotments in excess of 4000m2), demand for passive recreational pursuits could be accommodated within individual allotments. Active recreational pursuits could be carried out at existing facilities within the urban area. The provision of public open space and an extension of the existing shared path network through the subject site are possibly two different things. The purpose of public open space is to cater for the immediate recreational needs of a residential catchment. Ideally public open space should be in reasonable walking distance from residential properties contained within a set “catchment”. The size of the catchment would determine the amount of public open space required. As residential areas expand, so to would the provision of public open space in order to meet objectives relating to urban amenity, healthy communities etc. It appears that a view has emerged in regard to an “oversupply” of public open space, meaning that the subdivision approved under DA-19-2009 was not provided with public open space, instead directing future residents to existing public open space (not necessarily within walking distance) and the use of individual backyards. In doing so, the maintenance cost to Council was minimised. The extension of the existing shared path network is considered to satisfy different objectives which include populating public spaces, contributing to logistical networks and provision of recreational opportunities beyond that of the local park. The applicant argues that should Conditions 7 and 47 be deleted, this does not prevent the development from generally achieving objectives relating to cycleways. It would mean that although a shared path would not be located adjacent to the Dumaresq Creek, there would be a degree of fluidity through the development allowing residents to connect into shared path facilities to either side of the development. As mentioned earlier, the applicant is not proposing to construct a dedicated shared path or cycleway through the development. Taking the applicant’s argument into consideration, it is considered unwise to open the emergency access over future Lot 26 and Lot 3 in DP240862 to general public access (foot and bicycle traffic) for the following reasons: This access link will exist within an easement over private land which may prove problematic for the same reasons articulated above. It is also noted that the maintenance of the
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