Agenda of Council Meeting - Wednesday, 5 June 2024

Council Meeting

5 June 2024

Item No: C06/24-527

Draft Westmead South Master Plan and Planning Proposal

Directorate: Environment and Planning

Responsible Officer: Director Environment & Planning

Community Strategic Plan Goal: Enhancing the Natural and Built Environment

Summary

The purpose of this report is to provide an overview of a Council initiated Master Plan and Planning Proposal for Westmead South.

In 2022, the former Department of Planning and Environment (now Department of Planning, Housing and Infrastructure) released the Westmead 2036 Place Strategy which provided a vision for the Westmead Precinct to be Australia’s premier Health and Innovation District. Westmead South is one of seven (7) sub-precincts identified within the Westmead Place Strategy.

To support the implementation of the Westmead Place Strategy, Council has progressed work in developing the Westmead South Master Plan Strategy, Planning Proposal and associated planning controls. This work has been informed by two rounds of early community and agency consultation in 2022 and 2023.

The Westmead South Master Plan and Planning Proposal was considered by the Cumberland Local Planning Panel (CLPP) on 27 March 2024, where the Panel recommended to Council that the proposal and associated documents be endorsed and forwarded to the Department of Planning, Housing and Infrastructure for a Gateway Determination.

It is recommended that Council endorse the Planning Proposal and forward it to the Department of Planning, Housing and Infrastructure for a Gateway Determination. It is also recommended that Council endorse the supporting documents for the Planning Proposal, including the Draft Westmead South Masterplan Strategy, Draft Westmead South Development Control Plan, proposed amendments to the Mays Hill, Finlayson and Sherwood Transitway Precinct Development Control Plan, and Draft Affordable Housing Contribution Scheme.

Recommendation

That Council:

1. Endorse the Draft Westmead South Masterplan Strategy, as provided in Attachment 1.

2. Endorse the proposed planning controls for Westmead South, as provided in Attachment 2 and outlined in this report.

3. Endorse that the Planning Proposal for Westmead South, as provided in Attachment 3, be forwarded to the Department of Planning, Housing and Infrastructure for a Gateway Determination.

4. Endorse the Draft Westmead South Development Control Plan, as provided in Attachment 4.

5. Endorse the proposed amendments to Part F4 - 2 Mays Hill, Finlayson and Sherwood Transitway Precinct, as provided in Attachment 4.

6. Endorse the Draft Affordable Housing Contributions Scheme for Westmead South, as provided in Attachment 5.

7. Endorse the preferred option for new heritage items in Westmead South to include in Part 1 of Schedule 5 in the Cumberland Local Environmental Plan (Cumberland Heritage List), as provided in Attachment 6, with consideration of the following options:

i) Option 1 – progress with the extension of the curtilage of 1 existing heritage item and the addition of 2 new heritage items which meet the following criteria: resolved by Council for inclusion in the Planning Proposal; and recommended for inclusion following review by Council officers, including further technical advice on some proposed items.

ii) Option 2 – progress with the extension of the curtilage of 1 existing heritage item which meets the following criteria: resolved by Council for inclusion in the Planning Proposal; and recommended for inclusion where no written objection received from the landowner on the proposed inclusion of the item during the process.

8. Endorse the preferred option for new heritage conservation areas in Westmead South to include in Part 1 of Schedule 5 in the Cumberland Local Environmental Plan (Cumberland Heritage List), as provided in Attachment 6, with consideration of the following options:

i) Option 1 – progress with the extension of the Westmead South Heritage Conservation Area and extension of the Toohey’s Palm Estate Group Conservation Area to cover street palm trees.

ii) Option 2 – progress with the Westmead South Special Character Area and extension of the Toohey’s Palm Estate Group Conservation Area to cover street palm trees.

iii) Option 3 – progress with the Fenwick Place Heritage Conservation Area and extension of the Toohey’s Palm Estate Group Conservation Area to cover street palm trees.

iv) Option 4 – progress with the Church Avenue Heritage Conservation Area and extension of the Toohey’s Palm Estate Group Conservation Area to cover street palm trees.

9. Delegate to the General Manager the authorisation to make minor revisions to the Planning Proposal and supporting documentation, as necessary, following Council’s deliberations to ensure the desired objectives and intended outcomes can be achieved.

10. Note that the draft documents in the recommendation will be placed on public exhibition for community consultation, subject to receipt of a positive Gateway Determination on the Planning Proposal.

Report

Background

In February 2021, Cumberland City Council (Council) endorsed that planning for the Westmead South Precinct be included in Council’s strategic planning work program to support implementation of Cumberland 2030: Our Local Strategic Planning Statement (LSPS).

Separate to the above, in 2022, the former Department of Planning and Environment (now Department of Planning, Housing and Infrastructure) (DPHI) released the Westmead Place Strategy (WPS), which provided a vision for the Westmead Precinct to be Australia’s premier Health and Innovation District. Westmead South is one of 7 sub-precincts identified within the WPS and is described as ‘a walkable residential neighbourhood, transformed by the proposed Metro Station to increase connectivity, offering housing choice and diversity, with an urban village at its heart’.

To support the implementation of the above Strategy, planning work by Council for the Westmead South precinct began in 2022.

Draft Westmead South Master Plan Strategy

A Draft Westmead South Master Plan Strategy has been prepared as part of this Planning Proposal. The Strategy identifies the vision and principles, five key moves and five priorities for the precinct. It also identifies seven (7) character areas within Westmead South and actions to be implemented to achieve the vision of Westmead South. It is intended to be a Council Land Use Strategy that provides guidance in managing the growth of Westmead South while delivering desired amenity and built form outcomes.

The precinct priorities, example principles and actions are provided in Table 1.

Principle	Action	Timeframe
Priority 1: Evolved Diverse and Affordable Housing
Provide housing choice close to job opportunities	Explore incentive controls to facilitate affordable housing.	0-2 years
Priority 2: Evolved Open Space and Public Domain
Create additional open spaces where appropriate to support the proposed growth	Provide a new local park along Alexandra Avenue.	7+ years
Priority 3: Evolved Transport and Access
Create a network of active transport links and improved road function to connect Westmead South internally and externally with the surroundings	Provide a designated cycle path along Amos Street linking the future cycle path along Hawkesbury Road to the existing ones in Mays Hill Precinct and Parramatta Park.	7+ years
Priority 4: Evolved Infrastructure and Facilities
Provide the desired community facilities in right locations	Provide a commuter car park close to the Metro Station as part of future development.	3-7 years
Priority 5: Key Places
Progress the planning and delivery of Key Places in Westmead South	Collaborate with the relevant stakeholders/landowners to explore the opportunities realising the nominated designs.	Ongoing

Table 1: Selected Priorities of the Draft Westmead South Master Plan Strategy

The seven character areas of Westmead South are outlined in Figure 1.

Figure 1: Seven character areas of Westmead South

It is recommended that Council endorse the Draft Westmead South Master Plan Strategy.

Planning Proposal

Planning Work Undertaken

Planning work for Westmead South began with a concept land use plan released for public comment in the Phase 1 community engagement from October to November 2022. Further planning work after the Phase 1 community engagement, including technical studies and Phase 2 community engagement from October to December 2023, has been undertaken to prepare the Planning Proposal in line with the LEP Plan Making Guidelines.

The planning work undertaken ensures that the proposed building heights, floor space, setbacks, dwelling yield and population increase are feasible, accounted for in infrastructure delivery, appropriate for the context of the precinct, and consistent with objectives and considerations of key State and Council documents.

This Planning Proposal applies to the Westmead South Precinct as outlined in Figure 2 below.

Figure 2: Land to which this Planning Proposal Applies

The technical studies and their key considerations that support the Planning Proposal are outlined in Table 2.

Technical Study	Key Considerations that Informed the Planning Proposal
Urban Design Study	· Planning Proposal will generate over 6,600 dwellings and a non-residential GFA of 44,620m². · Provision of a new local park with potential for additional and expanded through site links. · Increased building height and density close to Westmead Train Station and the Westmead Metro Station.
Economic Feasibility Assessment	· Densities in the proposed master plan should be adopted to ensure feasibility. · Affordable housing contributions should be up to 5%.
Community Needs and Social Infrastructure Assessment	· Identified the community facilities and open space infrastructure that would be generated by the planning proposal population based on benchmarking.
Acoustic and Air Quality Impact Assessment	· A noise impact assessment shall be submitted with each Development Application for any new mixed use, residential, or noise-sensitive development that is adjacent to a busy road or rail corridor. · An air quality assessment shall be submitted with each Development Application for any new residential, mixed use, or air quality-sensitive development, that is adjacent to a busy road or rail corridor.
Traffic and Transport Study	· Capacity of the road network to accommodate additional population, with consideration of existing and planned public transport services and infrastructure. · Maximum parking requirements should be considered as a tool to manage traffic volumes in the precinct. · Dedicated active transport paths should be provided throughout the precinct.
Heritage Impact Statement	· Sightlines and a transition in building heights should be maintained in proximity to heritage items. · A new Heritage Conservation Area should be established, bounded by Toohey Avenue, Gowrie Crescent, MJ Bennett Reserve, the south side of Nolan Crescent, Hawkesbury Road and Austral Avenue.
Flood Risk Assessment	· Site-specific flood assessments shall be undertaken for development in the flood prone areas to avoid impacts on neighbouring and downstream properties.
Ecologically Sustainable Development Strategy	· Ecologically Sustainable Development and resilience initiatives should be adopted for the precinct and within individual development sites.
First Nations Connecting with Country Framework	· Connecting with Country design principles should be integrated into the Westmead South Masterplan.
Infrastructure	· Identified the impacts the Planning Proposal would have on utility provision in the area and identified potential upgrades to utility networks to deal with the increased number of dwellings and population. · Infrastructure Delivery Schedule compiled to identify required infrastructure and potential means for delivery of that infrastructure.
Smart Cities Strategy	· Smart technologies have been recommended for adoption within the precinct.

Table 2: Technical Studies

The above planning work undertaken has resulted in the development of a Master Plan for Westmead South, as shown in Figure 3.

Figure 3: Proposed Westmead South Master Plan

Proposed Cumberland LEP 2021 Amendments - Zoning, Floor Space Ratio, Height of Buildings and Minimum Lot Size

The proposed zoning, floor space ratio, height of buildings and minimum lot size maps for the precinct are provided in Table 3 and Figures 4 to 7.

Character Area	Land Use Zone	Base Building Height	Base Density
Hawkesbury Road High Street	E1 Local Centre	O1 – 15m R1 – 21m R2 – 22m T5 – 29m	P1 – 1.2:1 S2 – 1.6:1 S4 – 1.8:1 V2 – 3.2:1
Northern Living	R4 High Density Residential	N1 – 14m R1 – 21m W2 – 41m	P1 – 1.2:1 S2 – 1.6:1 U4 – 2.9:1
Eastern Living	R4 High Density Residential	O1 – 15m	P1 – 1.2:1
Central Living	R4 High Density Residential	R1 – 21m T4 – 28m	S2 – 1.6:1 U1 – 2.5:1
Westmead Village	R2 Low Density Residential and R3 Medium Density Residential	J – 9m	N/A (R2 zoning) H – 0.7:1
Domain Creek Village	R2 Low Density Residential	J – 9m	N/A (R2 zoning)
Great Western Highway Mixed Use	E3 Business Development and R4 High Density Residential	R1 – 21m R2 – 22m T2 – 26m T5 – 29m	S2 – 1.6:1 S4 – 1.8:1 T3 – 2.2:1 U1 – 2.5:1

Table 3: Proposed Zoning, Height of Building and Floor Space Ratio

Figure 4: Proposed Zoning

Figure 5: Proposed Height of Building

Figure 6: Proposed Floor Space Ratio

Figure 7: Proposed Lot Size Map

Affordable Housing

This Planning Proposal seeks to introduce a LEP clause to require contributions for affordable housing to be made in accordance with an Affordable Housing Contribution Scheme. Sites subject to the provision and the scheme will be shown as Affordable Housing Key Sites on the LEP Key Site Map (Figure 8) and are identified as areas A0, A2, A3, B2 and B4 in the Masterplan in Figure 3.

The intent of this provision is that development for residential purposes on the nominated sites have access to increased height and density if they provide affordable housing within their development. The proposed rate is 5% for areas A0, A2 and A3, and 1% for areas B2 and B4, of the total residential gross floor area.

Figure 8: Proposed Affordable Housing Key Sites Map

Proposed Incentive Height of Building

This Planning Proposal seeks to introduce an incentive Height of Building LEP clause and associated map where either a community facility, recreation area, public car park, public land or affordable housing in accordance with the proposed Affordable Housing LEP Clause and Affordable Housing Contributions Scheme, are provided, as shown in Table 4 and Figure 9.

Masterplan Area	Item Delivered	Proposed Incentive Height
A0	Affordable Housing	25 storeys / 83m
A2	Affordable Housing and Community Facility	20 storeys / 67m
A3	Affordable Housing	25 storeys / 67m
B2	Affordable Housing and Public Land	15 storeys / 51m
B4	Affordable Housing	15 storeys / 51m
G3	Community Facility	12 storeys / 42m
B1	Recreation Area	25 storeys / 83m
B3	Public Car Park	20 storeys / 67m
D1	Public Land	8 storeys/ 28m
D3	Public Land	8 storeys/ 28m
F2	Laneway	8 storeys / 29m

Table 4: Proposed Incentive Building Heights

Considerations that informed the proposed incentive building heights included the need to provide community facilities, recreation areas, public car parking, public land and affordable housing within the Westmead South precinct, providing economically feasible building heights, precedent height studies undertaken, aligning with proposed incentive floor space ratios, and providing a transition down to lower density areas.

Figure 9: Proposed Incentive Height of Building Map

Proposed Incentive Floor Space

This Planning Proposal seeks to introduce an incentive Floor Space Ratio LEP clause and associated map where either a community facility, recreation area, public car park, public land, or affordable housing in accordance with the proposed Affordable Housing LEP Clause and Affordable Housing Contributions Scheme are provided, as shown in Table 5 and Figure 10.

Masterplan Area	Item Delivered	Proposed Floor Space Ratio
A0	Affordable Housing	5.9:1
A2	Affordable Housing and/or Community Facility	4.5:1
A3	Affordable Housing	4.2:1
B2	Affordable Housing and or/Public Land	3.6:1
B4	Affordable Housing	3.2:1
G3	Community Facility	2.4:1
B1	Recreation Area	3.6:1
B3	Public Car Park	3.6:1
D1	Public Land	2.5:1
D3	Public Land	2.5:1
F2	Laneway	3.2:1

Table 5: Proposed Incentive Floor Space

Considerations that informed the proposed floor space ratios included the need to provide community facilities, recreation areas, public car parking, public land and affordable housing within Westmead South, providing economically feasible building areas, precedent height studies undertaken, aligning with proposed incentive height of building controls, and providing a transition down to lower density areas.

Figure 10: Proposed Incentive Floor Space Ratios

Heritage Items

A Heritage Impact Assessment was undertaken for this Planning Proposal. It identified existing and proposed heritage items (including those identified in Stage 2 of the Cumberland Heritage Planning Proposal, PP-2023-158), identified proposed Heritage Conservation Areas, outlined the potential impacts the proposed built form may have on those heritage items and conservation areas, and included recommendations for proposed built form to ensure the integrity of the heritage items/conservation areas was maintained.

Proposed heritage items identified for possible inclusion in this Planning Proposal and their status are outlined in Table 6.

Address	Significance	Pursue listing in this Planning Proposal	Reason for not Pursuing
30 Alexandra Avenue	Post War Bungalow	No	Limited heritage value considering proposed high density in proximity.
18 Austral Avenue	Inter War Bungalow	Potential – options provided for Council’s consideration	Various options provided for Council’s consideration. It is noted an objection to the listing of this property has been received.
45-51 Austral Avenue	Austral Avenue Housing Commission Group	No	Peer Review recommended the items not be listed.
33 Grand Avenue	Post War Austerity Style House	No	Peer Review recommended the items not be listed.
4 Cotswold Street	Inter War Bungalow	No	Peer Review recommended the items not be listed.
41 Hawkesbury Road	‘Deskford’ Victorian Gothic Residence	Yes – increase to curtilage to include existing green space	N/A
74 Hawkesbury Road	The Oakes Centre	No	Limited heritage value considering proposed high density in proximity and objections received.
75 Hawkesbury Road	St Barnabas Anglican Church	Potential – options provided for Council’s consideration	Various options provided for Council’s consideration. It is noted an objection to the listing of this property has been received.
152-156 Hawkesbury Road	Group of Post War Bungalows	No	Peer Review recommended the items not be listed and owner objections received.
74 Houison Street	Inter War Bungalow	No	Objection received.
14 Ralph Street	Sacred Heart Primary School	No	Peer Review recommended the items not be listed and objections received.

Table 6: Proposed Heritage Items

The extension of the curtilage of an existing heritage item (41 Hawkesbury Road), and the addition of two (2) new items (18 Austral Avenue and 75 Hawkesbury Road) have been identified for consideration by Council. Two options for the progression of these heritage items are identified for consideration by Council as follows:

· Option 1 – Includes the extension to the curtilage of the existing heritage item at 41 Hawkesbury Road, ‘Deskford’ Victorian Gothic Residence, and the addition of 2 new heritage items at 18 Austral Avenue, Inter War Bungalow, and 75 Hawkesbury Road, St Barnabas Anglican Church. This is shown in Figure 11.

It is noted that in line with the precedent Council resolution on the Heritage Planning Proposal, proposed heritage items that have objections received may be removed from consideration. As the potential heritage items at 18 Austral Avenue and 75 Hawkesbury Road have objections, a reduced heritage item proposal is presented in Option 2.

Figure 11: Proposed Heritage Items Option 1 – Inclusion of All Three Heritage Items

· Option 2 – Includes the extension to the curtilage of the existing heritage item at 41 Hawkesbury Road, ‘Deskford’ Victorian Gothic Residence. This is shown in Figure 12. No objection has been received by the landowner for this proposed extension to the curtilage of the existing heritage item.

Figure 12: Proposed Heritage Items Option 2 – Extension of Curtilage of Existing Heritage Item

Heritage Conservation Areas

Proposed Heritage Conservation Areas/Special Character Area identified for inclusion in this Planning Proposal and their status are outlined in Table 7.

Address

Significance

Pursue Heritage Conservation Area in Planning Proposal

Moree Avenue and Grand Avenue – Toohey’s Palm Estate

Extension of existing Toohey’s Palm Estate Heritage Conservation Area to include verges.

Yes

Westmead Estate Conservation Area/Special Character Area

Historic, associative, aesthetic, social, representative and rarity values.

The buildings were constructed in response to the Westmead Housing Commission Competition held in June 1944.

Yes, with various options provided for consideration by Council

Table 7: Proposed Heritage Conservation Areas / Special Character Areas

Regarding the Westmead Estate Heritage Conservation Area/Special Character Area, four options have been identified for consideration by Council. The options are as follows:

· Option 1 – Establish a Heritage Conservation Area in accordance with the technical recommendation of the Heritage Consultants and Council staff, in accordance with area K in Figure 13, and also shown on the planning map in Figure 14.

Figure 13: Proposed Heritage Conservation Area Options 1 and 2 – Westmead Estate Heritage Conservation Area (Option 1) / Special Character Area (Option 2)

Figure 14: Proposed Heritage Conservation Area Option 1 –Westmead Estate Heritage Conservation Area Map

· Option 2 – Establish a Special Character Area in accordance with area K in Figure 13, as an alternative to the area identified for a Heritage Conservation Area in Option 1. The identification of this option is in response to landholder and stakeholder feedback.

· Option 3 – This is a reduced Westmead Estate Heritage Conservation Area bounded by Church Avenue, Nolan Crescent and the laneway behind the Oakes Centre, as demonstrated in Figure 15.

It is noted however, that in line with the precedent Council resolution on the Heritage Planning Proposal, lots within the recommended conservation area that had objections on them may be removed from consideration in the conservation area. Therefore, a reduced Heritage Conservation Area boundary is presented in Option 4.

Figure 15: Proposed Heritage Conservation Area Option 3 – Reduced Heritage Conservation Area Map (Fenwick Place Conservation Area)

· Option 4 – This is a reduced Westmead Estate Heritage Conservation Area that contains contiguous properties with contributory attributes that reflect the intent of the original proposed Heritage Conservation Area. These properties are owned by Land and Housing Corporation (LAHC).

Although a general objection has been received from LAHC to the Option 1 Heritage Conservation Area, no resident objections have been received on these properties. Inclusion of these five properties in a reduced Heritage Conservation Area is considered appropriate as they are all owned by the one public entity who has other properties in Westmead South that will not be subject to heritage designation and can therefore be redeveloped as needed. It also provides an example to demonstrate the original vision of Westmead as a public housing estate. The proposed area is shown in Figure 16.

Figure 16: Proposed Heritage Conservation Area Option 4 – Church Avenue Heritage Conservation Area Map

In addition, all options identify the extension of the Toohey’s Palm Estate Group Conservation Area to include the palm trees on the street verge. No objections were received for this proposed extension.

The Urban Design Report considered the findings of the Heritage Impact Assessment and the existing environmental heritage into account in its analysis of the area and subsequent built form recommendations.

Proposed amendments to CLEP 2021 and CDCP 2021 regarding building height, built form considerations and setbacks reflect recommendations from the assessment.

Strategic Merit Assessment

Assessment of the proposed changes to CLEP 2021 against the State and Local Planning Framework has been undertaken to ensure there is strategic merit for the amendments and to ensure consistency with relevant State and Council strategies, policies and plans.

The Planning Proposal is considered consistent with a number of policies and strategies as outlined in Table 8, and further detailed in the Planning Proposal.

Policy or Strategy	Consideration
Greater Sydney Region Plan – A Metropolis of Three Cities (2018)	The Planning Proposal is consistent with the Directions and Objectives of the Plan.
Central City District Plan	The Planning Proposal is consistent with the Directions and Planning Priorities of the Plan.
Future Transport Strategy	The Planning Proposal implements and gives effect to Directions and Responses in the Strategy.
Westmead 2036 Place Strategy	The Planning Proposal implements and gives effect to the Sub-Precinct description, key place outcomes, land use outcomes, land use and built form principles, Objectives, Planning Priorities and Actions identified for Westmead South in the Strategy.
Westmead Place-based Transport Strategy	The Planning Proposal seeks to implement and support the opportunities and Strategic Directions identified in the Strategy.
Cumberland 2030: Our Local Strategic Planning Statement	The Planning Proposal implements opportunities and strategic considerations identified for the Westmead South Precinct.
Cumberland Community Strategic Plan 2017-27	The Planning Proposal is consistent with Strategic Goals and Objectives in the Plan.
Cumberland Local Housing Strategy 2020	The Planning Proposal is consistent with the Priorities, Objectives and Actions identified for Westmead South in the Strategy.
Cumberland Affordable Housing Strategy 2020	The Planning Proposal is consistent with the Priorities and Actions in the Strategy.
Cumberland Employment and Innovation Lands Strategy 2019	The Planning Proposal is consistent with the Planning Principles and Key Focus Areas identified in the Strategy.
State Environmental Planning Policies: · Planning Systems 2021 · Biodiversity. and Conservation 2021. · Resilience and Hazards 2021. · Transport and Infrastructure 2021. · Industry and Employment 2021. · Exempt and Complying Development Codes 2008. · Sustainable Buildings 2022. · Housing 2021.	The Planning Proposal is consistent with the SEPP’s.
Sec 9.1 Ministerial Directions · Implementation of Regional Plans. · 1.3 Approval and Referral Requirements. · 1.4 Site Specific Provisions. · 1.7 Implementation of Greater Parramatta Priority Growth Area Interim Land Use and Infrastructure Implementation Plan. · 1.19 Implementation of the Westmead Place Strategy. · 3.2 Heritage Conservation. · 3.7 Public Bushland. · 4.1 Flooding. · 4.4 Remediation of Contaminated Land. · 4.5 Acid Sulfate Soils. · 5.1 Integrating Land Use and Transport. · 5.2 Reserving Land for Public Purposes. · 6.1 Residential Zones. · 7.1 Employment Zones.	The Planning Proposal is consistent with most relevant directions. Suitable justification for inconsistencies identified has been provided as allowed in the directions.

Table 8: Strategic Merit Assessment

It is estimated that the planning proposal will provide for over 6,600 additional dwellings, which will contribute to Cumberland’s housing target of 28,000 to 28,500 additional dwellings between 2016-2036. It is also noted that, as most high density and local centre height controls are over 25m, any development applications will be required to be considered by the Cumberland Design Excellence Panel. This will ensure that high quality-built form design is considered as part of any future development should the Planning Proposal proceed.

Draft Westmead South Affordable Housing Contribution Scheme

A draft Affordable Housing Contributions Scheme (AHCS) under State Environmental Planning Policy (Housing) 2021 (Housing SEPP) has been prepared to support the proposed Affordable Housing LEP Clause.

The Draft Westmead South AHCS sets out how, where, and at what rate development contributions will be collected by Council for affordable housing. It includes the evidence base supporting the need for affordable housing and provides operational details including how to calculate contributions and in what form contributions are to be made. Key details of the Scheme are:

· It applies to areas A0, A2, A3, B2 and B4 in the Masterplan in Figure 3.

· For areas A0, A2 and A3 the affordable housing contribution rate will be:

o 1% of the total residential gross floor area for development applications lodged within the first 12 months of the gazettal of the Westmead South Planning Proposal, or

o 3% of the total residential gross floor area for development applications lodged within 13-24 months of the gazettal of the Westmead South Planning Proposal, or

o 5% of the total residential gross floor area for development applications lodged from 25 months after the gazettal of the Westmead South Planning Proposal.

· For areas B2 and B4 in the Draft Master Plan, the affordable housing contribution rate will be 1% of the total residential gross floor area from the date of gazettal of the Westmead South Planning Proposal.

· The minimum gross floor area of a dwelling for dedication is 50 square metres.

· There are two (2) possible ways to make the contribution:

1. Dedication of affordable housing dwellings on site or ‘In-kind’ contribution – build and dedicate the required affordable housing dwellings at no cost to Council, or

2. Monetary contribution ‘in-lieu’ of affordable housing units – a monetary contribution that is equivalent to the required ‘in-kind’ affordable housing.

· The contribution rate to be paid is to be indexed twice a year, being the first day of January and July.

An analysis of the proposed AHCS identifies that over 70 affordable dwellings can be provided as part of the scheme under current market conditions. Should the scheme be introduced, the affordable housing contribution rate can be adjusted over time through a separate Planning Proposal to ensure that opportunities for affordable housing can be maximised.

It is recommended that Council endorse the Draft Affordable Housing Contributions Scheme for Westmead South.

Local Infrastructure Considerations

An analysis has been undertaken on growth infrastructure requirements and potential funding sources. The analysis indicates a range of growth infrastructure required, as outlined in Table 9, including streetscape and public domain improvements, traffic and access improvements, open space and social infrastructure, stormwater and flooding and smart city infrastructure. There are also a range of funding sources available to provide this growth infrastructure, including developer works and agreements, local infrastructure contributions, State funding and grant funding opportunities.

Open Space and Social Infrastructure	Streetscape and Public Domain	Traffic and Access	Stormwater and Flooding	Smart City Infrastructure
Upgrades to Sydney Smith Park and MJ Bennett Reserve	Oakes Centre Plaza upgrade	Cycleways within the precinct	Water Sensitive Urban Design Street Tree Pits	Smart Poles
Austral Avenue Reserve upgrade	Street tree planting within the precinct	Footpath improvements within the precinct	Bio-retention basin	Smart Lighting
New community centres at Hawkesbury Road	Traffic calming measures on certain streets in the precinct	Bridge Road/Grand Avenue four-lane cross section	Water Sensitive Urban Design Infiltration Swales	Smart CCTV

Table 9: Examples of proposed Local Infrastructure to Support Westmead South

Council officers have considered different approaches in securing funding for growth infrastructure to support planning outcomes for Westmead South, as well as the impacts on development feasibility of additional developer contributions payable for the State based Housing and Productivity Contribution, and recent increases in construction costs. It is proposed that growth infrastructure for Westmead South be progressed through a combination of developer works, use of local infrastructure contributions, grant opportunities and pursuing State funding for regional transport improvements.

Should a review of the current Local Infrastructure Contributions Plan be undertaken in the future, the analysis undertaken on growth infrastructure requirements for Westmead South will be considered as part of this work.

Proposed Amendments to Cumberland Development Control Plan

A new draft Development Control Plan for Westmead South (excluding those areas along the Great Western Highway which are subject to a separate Site-Specific Development Control Plan Part F4-2 Mays Hill, Finlayson and Sherwood Transitway Precinct) is proposed in support of this Planning Proposal. The Draft DCP has been prepared to be in line with the masterplan for Westmead South, the changes proposed to CLEP 2021 under this Planning Proposal, and to reflect the principles and actions of the Draft Westmead South Masterplan Strategy. Key controls from the Draft DCP are outlined in Table 10.

Clause	Key Controls
3.1 Lot Consolidation and Minimum Street Frontage	· The minimum site frontage for residential flat buildings and shop-top housing is 24m, excluding development along the Great Western Highway. · The minimum lot frontage for all development fronting the Great Western Highway shall be 45m.
3.2 Tower Slenderness and Orientation	· All building frontages for a tower with a length over 30m should be designed with the following features as a minimum: § Expressed as two vertical forms. § Designed with a clear ‘break’ / indentation of a minimum 3m width and 3m depth. § Include a stepped height difference of a minimum two residential storeys.
3.3 Residential Flat Building and Mixed Use Development	· Development shall be set back 6m from all street frontages. This set back shall be used for landscaping unless otherwise specified for public access. · Development shall provide a ‘street wall’ of 4-storeys for both residential flat buildings and mixed-use development.
3.4 Dwelling Houses and Low-Rise Medium Density Development	· Deliver a minimum 6m front setback for all new development. This may be varied to align with neighbouring buildings if there is a clearly different front setback character on both sides of development. · A minimum 30% of the front setback (i.e. front yard) is to consist of soft landscaping.
3.7 Key Infrastructure	· Through-site links are to be delivered as part of future development through dedication to Council. · Any development application that includes the alteration or non-provision of the through-site link locations must provide written justification outlining the reason, impact and benefit of the alteration or non-provision.
4.2 Moree Avenue Heritage Items	· A 2-storey street wall height shall be provided to proposed development on adjoining lots to the north, east and west of the heritage items on Moree Avenue.
4.3 Tooheys Palm Estate and Westmead Estate Heritage Conservation Areas	· A 2-storey street wall height shall be provided to proposed development on adjoining lots to the Tooheys Palm Estate and Westmead Estate Heritage Conservation Areas. · New dwellings on sites within, adjoining or in the vicinity of the Heritage Conservation Areas shall be designed and constructed in a manner that does not detract from the historic significance of the conservation areas.

Table 10: Key Controls from Draft Westmead South Development Control Plan

Amendments to the existing Development Control Plan Part F4-2 Mays Hill, Finlayson and Sherwood Transitway Precinct, are also proposed in support of this Planning Proposal. The amendments have been prepared to be in line with the urban design master plan for Westmead South, the changes proposed to CLEP 2021 under this Planning Proposal, and to reflect the vision and actions of the Draft Westmead South Masterplan Strategy. Key controls from the Draft DCP are outlined in Table 11.

Clause

Key Controls

2.5 Building Height

· Maximum Street wall height of 5 storeys.

· Upper-level setback of a minimum 3m.

2.6 Building Setbacks

· Landscape buffer within the front setback is required for lots between Bernard Street and Anderson Street, fronting the Great Western Highway

Table 11: Key controls for the Mays Hill, Finlayson and Sherwood Transitway Precinct DCP

It is recommended that Council endorse the proposed Development Control Plans associated with the Planning Proposal for Westmead South.

Cumberland Local Planning Panel

The Planning Proposal for Westmead South was considered by the Cumberland Local Planning Panel (the Panel) on 27 March 2024. The Panel recognised that the Planning Proposal is evidence based and has strategic merit and recommended to Council that the Westmead South Planning Proposal and associated documents be endorsed and forwarded to the Department of Planning, Housing and Infrastructure for a Gateway Determination.

The Panel also recommended that Council officers address the following key matters raised by the public at the meeting:

· Heritage, including rationale, scope of heritage items and heritage conservation areas, and opportunities to reflect the unique character of the area.

· Maintaining the unique sense of community for existing and future residents.

· Potential impacts of population growth, including traffic and amenity concerns.

· Role of Westmead in the context of Greater Sydney.

· Provision of affordable housing.

· Proximity to key infrastructure including hospitals, schools, universities and public transport, including the Metro to warrant further development.

Council officers have considered the above matters, and these are addressed in Table 12.

CLPP Key Matter	What was proposed before CLPP	Considerations	Current Planning Proposal
Heritage	· Extension of existing Tooheys Palm Estate Heritage. Conservation Area. · Proposed Westmead Estate Heritage Conservation Area, with 4 options for consideration. · Extension to the curtilage of an existing Heritage Item and 2 new Heritage Items. · Maximum 6 storey building height in area E0 of the Masterplan.	· General objection received by Land and Housing Corporation (LAHC) to the Westmead Estate Conservation Area. · Objections received on the proposed 2 new Heritage Items. · Heritage consultant recommendations on area E0 of the Masterplan. · Submissions received from owners in area E0 of the Masterplan.	· Extension of existing Tooheys Palm Estate Heritage Conservation Area (palm trees). · Proposed Westmead Estate Heritage Conservation Area, with options for consideration. · Proposed extension to the curtilage of an existing Heritage Item and 2 new Heritage Items, with options for consideration. · Maximum 4 storey building height in area E0 of the Masterplan.
Maintaining sense of community	· 7 character precincts. · 5 key moves and 5 priorities. · Accessibility in Westmead South improved through new through-site links to be delivered as part of future redevelopment. · Improved open space network through existing park upgrades and provision of new parks to be delivered as part of future redevelopment. · New development in close proximity to heritage items will be carefully considered. · Proposed mixed use areas will provide vibrancy to key streets.	· Submissions received highlighting the existing strong sense of community within Westmead South. · Draft Westmead South Masterplan Strategy which seeks to build upon the existing strong sense of community.	Strategic merit of the Planning Proposal, based on the identified role of Westmead South within the wider Westmead Health and innovation Precinct and vision for Westmead South in the Draft Westmead South Masterplan Strategy, is maintained. No changes proposed to the Planning Proposal based on maintaining the sense of community.
Potential impacts of population growth	· 6,690 net new dwellings. · Identification of the need for the provision of open space and social infrastructure, streetscape and public domain works, traffic and access works, stormwater and flooding works, and smart city infrastructure provision.	Analysis has been undertaken to identify local infrastructure requirements to support the proposed number of dwellings. There are a range of mechanisms that can be used to fund this infrastructure, including current or new contribution plans, grants, developer works or through Council’s capital works program.	· 6,620 net new dwellings. · The Planning Proposal facilitates the delivery of required infrastructure through various mechanisms, and also facilitates appropriate development through proposed changes to planning controls in the Cumberland Local Environmental Plan and proposed changes to controls in the Cumberland Development Control Plan. · No changes proposed to the Planning Proposal based on potential impacts of population growth.
Role of Westmead South	The Westmead Place Strategy provides a vision for the Westmead Precinct to be Australia’s premier Health and Innovation District. Westmead South is one of 7 sub-precincts identified within the WPS and is described as ‘a walkable residential neighbourhood, transformed by the proposed Metro Station to increase connectivity.	Westmead South is uniquely positioned to provide additional dwellings and mixed use development within close proximity to the Westmead Health and Education Centres and the Metropolitan Centre of Parramatta.	Strategic merit of the Planning Proposal, based on the identified role of Westmead South within the wider Westmead Health and innovation Precinct, is maintained. No changes proposed to the Planning Proposal based on the role of Westmead South.
Affordable housing	· 5% contribution rate for areas A0, A2 and A3 in the masterplan. · 5% contribution to be phased in over 3 years: § 0% contribution for development applications lodged within the first 12 months of the gazettal of the Westmead South Planning Proposal. § 3% contribution for development applications lodged within 13-24 months of the gazettal of the Westmead South Planning Proposal. § 5% contribution for development applications lodged from 25 months after the gazettal of the Westmead South Planning Proposal. · 1% contribution rate for areas B2 and B4 in the masterplan.	· The need for affordable housing within Cumberland. · Submission received related to the inadequacy of the phasing of the 5% contribution, in particular, the proposed 0% contribution within 12 months of the gazettal of the Westmead South Planning Proposal.	· 5% contribution rate for areas A0, A2 and A3 in the masterplan. · 5% contribution to be phased in over 3 years: § 1% contribution for development applications lodged within the first 12 months of the gazettal of the Westmead South Planning Proposal. § 3% contribution for development applications lodged within 13-24 months of the gazettal of the Westmead South Planning Proposal § 5% contribution for development applications lodged from 25 months after the gazettal of the Westmead South Planning Proposal. · 1% contribution rate for areas B2 and B4 in the masterplan.
Proximity to key infrastructure	The Westmead Place Strategy provides a vision for the Westmead Precinct to be Australia’s premier Health and Innovation District. Westmead South is one of 7 sub-precincts identified within the WPS and is described as ‘a walkable residential neighbourhood, transformed by the proposed Metro Station to increase connectivity.	Westmead South is strategically located in close proximity to the Metropolitan Centre of Parramatta and is identified as a sub precinct of the Westmead Health and Innovation District. It also benefits from proximity to the existing Western Railway Line, new Metro Line and Transitway.	Strategic merit of the Planning Proposal based on Proximity to key infrastructure is maintained. No changes proposed to the Planning Proposal based on proximity to key infrastructure.

CLPP Key Matter

What was proposed before CLPP

Considerations

Current Planning Proposal

Heritage

· Extension of existing Tooheys Palm Estate Heritage. Conservation Area.

· Proposed Westmead Estate Heritage Conservation Area, with 4 options for consideration.

· Extension to the curtilage of an existing Heritage Item and 2 new Heritage Items.

· Maximum 6 storey building height in area E0 of the Masterplan.

· General objection received by Land and Housing Corporation (LAHC) to the Westmead Estate Conservation Area.

· Objections received on the proposed 2 new Heritage Items.

· Heritage consultant recommendations on area E0 of the Masterplan.

· Submissions received from owners in area E0 of the Masterplan.

· Extension of existing Tooheys Palm Estate Heritage Conservation Area (palm trees).

· Proposed Westmead Estate Heritage Conservation Area, with options for consideration.

· Proposed extension to the curtilage of an existing Heritage Item and 2 new Heritage Items, with options for consideration.

· Maximum 4 storey building height in area E0 of the Masterplan.

Maintaining sense of community

· 7 character precincts.

· 5 key moves and 5 priorities.

· Accessibility in Westmead South improved through new through-site links to be delivered as part of future redevelopment.

· Improved open space network through existing park upgrades and provision of new parks to be delivered as part of future redevelopment.

· New development in close proximity to heritage items will be carefully considered.

· Proposed mixed use areas will provide vibrancy to key streets.

· Submissions received highlighting the existing strong sense of community within Westmead South.

· Draft Westmead South Masterplan Strategy which seeks to build upon the existing strong sense of community.

Strategic merit of the Planning Proposal, based on the identified role of Westmead South within the wider Westmead Health and innovation Precinct and vision for Westmead South in the Draft Westmead South Masterplan Strategy, is maintained.

No changes proposed to the Planning Proposal based on maintaining the sense of community.

Potential impacts of population growth

· 6,690 net new dwellings.

· Identification of the need for the provision of open space and social infrastructure, streetscape and public domain works, traffic and access works, stormwater and flooding works, and smart city infrastructure provision.

Analysis has been undertaken to identify local infrastructure requirements to support the proposed number of dwellings.

There are a range of mechanisms that can be used to fund this infrastructure, including current or new contribution plans, grants, developer works or through Council’s capital works program.

· 6,620 net new dwellings.

· The Planning Proposal facilitates the delivery of required infrastructure through various mechanisms, and also facilitates appropriate development through proposed changes to planning controls in the Cumberland Local Environmental Plan and proposed changes to controls in the Cumberland Development Control Plan.

· No changes proposed to the Planning Proposal based on potential impacts of population growth.

Role of Westmead South

The Westmead Place Strategy provides a vision for the Westmead Precinct to be Australia’s premier Health and Innovation District. Westmead South is one of 7 sub-precincts identified within the WPS and is described as ‘a walkable residential neighbourhood, transformed by the proposed Metro Station to increase connectivity.

Westmead South is uniquely positioned to provide additional dwellings and mixed use development within close proximity to the Westmead Health and Education Centres and the Metropolitan Centre of Parramatta.

Strategic merit of the Planning Proposal, based on the identified role of Westmead South within the wider Westmead Health and innovation Precinct, is maintained.

No changes proposed to the Planning Proposal based on the role of Westmead South.

Affordable housing

· 5% contribution rate for areas A0, A2 and A3 in the masterplan.

· 5% contribution to be phased in over 3 years:

§ 0% contribution for development applications lodged within the first 12 months of the gazettal of the Westmead South Planning Proposal.

§ 3% contribution for development applications lodged within 13-24 months of the gazettal of the Westmead South Planning Proposal.

§ 5% contribution for development applications lodged from 25 months after the gazettal of the Westmead South Planning Proposal.

· 1% contribution rate for areas B2 and B4 in the masterplan.

· The need for affordable housing within Cumberland.

· Submission received related to the inadequacy of the phasing of the 5% contribution, in particular, the proposed 0% contribution within 12 months of the gazettal of the Westmead South Planning Proposal.

· 5% contribution rate for areas A0, A2 and A3 in the masterplan.

· 5% contribution to be phased in over 3 years:

§ 1% contribution for development applications lodged within the first 12 months of the gazettal of the Westmead South Planning Proposal.

§ 3% contribution for development applications lodged within 13-24 months of the gazettal of the Westmead South Planning Proposal

§ 5% contribution for development applications lodged from 25 months after the gazettal of the Westmead South Planning Proposal.

· 1% contribution rate for areas B2 and B4 in the masterplan.

Proximity to key infrastructure

Westmead South is strategically located in close proximity to the Metropolitan Centre of Parramatta and is identified as a sub precinct of the Westmead Health and Innovation District.

It also benefits from proximity to the existing Western Railway Line, new Metro Line and Transitway.

Strategic merit of the Planning Proposal based on Proximity to key infrastructure is maintained.

No changes proposed to the Planning Proposal based on proximity to key infrastructure.

Table 12: Council Officer Response to Key Considerations Identified by the Cumberland Local Planning Panel

Early Consultation

Early consultation on proposed heritage items and conservation areas in Westmead South began with the Early Engagement for the Stage 2 Cumberland Heritage Planning Proposal (PP-2023-158). Consultation occurred from June 2021 to August 2021. During this time, 98 submissions were received regarding proposed heritage items and heritage conservation areas in Westmead South. Proposed heritage items and conservation areas in Westmead South were included for consideration in this Planning Proposal.

Early consultation on the proposed planning controls for Westmead South was undertaken in two phases – Phase 1 between October and November 2022 and Phase 2 between October and December 2023. These represent pre-Gateway consultation in accordance with the Council Meeting resolution from the 17 February 2021 Council Meeting (Min. 1022/Item C02/21-681) and Council’s Planning Proposal Notification Policy.

During the Phase 1 engagement, a total of 169 independent submissions were received across a range of themes as follows:

· Heritage – Feedback related to the proposed Westmead Estate Heritage Conservation Area / Special Character Area and proposed Heritage Items within Westmead South.

· Parks – Feedback related to existing parks and the proposed expansion and/or upgrades to existing parks in Westmead South.

· Transport – Feedback related to existing roads, public transport, and current and proposed active transport links in Westmead South.

· Land Use and Density – Feedback related to proposed zoning, density and building heights, and the fairness of proposed changes to zoning and density.

· Schools – Feedback related to the existing schools within Westmead South.

· Infrastructure – Feedback related to existing infrastructure within Westmead South.

· General – Feedback that was general in nature including timing of the project and where to find information on the project.

· Other – Feedback that did not fall into any of the above themes.

During the Phase 2 engagement, a total of 271 independent submissions were received across a range of themes as follows:

· Heritage – Feedback related to the proposed Westmead Estate Heritage Conservation Area / Special Character Area and proposed Heritage Items within Westmead South.

· Open Space – Feedback related to existing parks, the proposed expansion and/or upgrades to existing parks, provision of new open spaces and lack of connectivity to parks.

· Traffic and Transport – Feedback related to roads, public transport, congestion and active transport.

· Land Use, Density and Height – Feedback related to proposed zoning, height and density, and the fairness of proposed changes to zoning and density.

· Schools – Feedback related to the provision of schools in Westmead South.

· Local Character – Feedback related to the look and feel of Westmead South.

· General – Feedback that was general in nature or a combination of the themes above.

· Other – Feedback that did not fall into any of the above themes.

Council has considered the submissions received in the development of the masterplan and provided responses to each theme and submission.

Next Steps

With the completion of the key phase of strategic planning work for Westmead South, the Master Plan, Planning Proposal and associated documents are now provided for consideration by Council. It is recommended that the Planning Proposal is endorsed by Council and forwarded to the Department of Planning, Housing and Infrastructure for a Gateway Determination. It is also recommended that Council also endorse supporting documents for the Planning Proposal, including the Draft Westmead South Masterplan Strategy, Draft Westmead South Development Control Plan, draft amendments to the Mays Hill, Finlayson and Sherwood Transitway Precinct Development Control Plan, and Draft Affordable Housing Contribution Scheme.

Subject to Council endorsement and a positive Gateway Determination, the Planning Proposal and supporting documentation will be placed on public exhibition, with a further report to be provided to Council.

Community Engagement

Early consultation has been undertaken on the proposal, as outlined in the main body of this report.

If this Planning Proposal is supported by Council and the Minister through the Gateway process, formal stakeholder and community consultation, including consultation with public agencies, of the Planning Proposal, Draft Westmead South Masterplan Strategy, Draft Westmead South Affordable Housing Contribution Scheme, and proposed amendments to the Cumberland Development Control Plan will be undertaken by Council in accordance with the legislative requirements of the Act and any additional conditions as imposed in a Gateway Determination.

Policy Implications

The Planning Proposal for Westmead South aligns with State and local strategies and policies.

Should the Planning Proposal be supported by Council and the Department of Planning, Housing and Infrastructure, this work and supporting documents would become policies of Council.

Risk Implications

There are minimal risk implications for Council associated with this report.

Financial Implications

There are no financial implications for Council associated with this report.

CONCLUSION

This report provides an overview of the Westmead South Master Plan and Planning Proposal in accordance with the LEP Plan Making Guideline and details the proposed changes to Cumberland Local Environmental Plan 2021 and Cumberland Development Control Plan 2021.

It is considered there is strategic planning merit in the Planning Proposal and its supporting documents, and endorsement is therefore sought from Council for submittal of the Westmead South Planning Proposal and its supporting documents to the Department of Planning, Housing and Infrastructure for Gateway Determination.

Attachments

1. Draft Westmead South Masterplan Strategy

2. Summary of Recommended Planning Controls

3. Westmead South Planning Proposal

4. Draft Cumberland Development Control Plan Amendments

5. Draft Affordable Housing Contribution Scheme

6. Heritage Options

7. Cumberland Local Planning Panel Minutes

8. Urban Design Study

9. Heritage Impact Assessment

10. Economic Feasibility Assessment (confidential)

Note: Included in Closed Business Paper in accordance with Section 10A(2)(c) of the Local Government Act as the information involves information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

11. Flood Risk Assessment

12. Community Needs and Social Infrastructure Assessment

13. Air Quality and Acoustic Assessment

14. Traffic and Transport Study

15. Connecting with Country Framework

16. Infrastructure Delivery Plan

17. Contributions Options (confidential)

18. Ecologically Sustainable Development Strategy

19. Utilities Servicing Strategy

20. Smart City Study

21. Precinct Shadow Diagrams

22. List of Affected Sites (confidential)

23. Phase 1 Submissions Reports

24. Phase 2 Submissions Report

25. Heritage Planning Proposal Submissions Report

Council Meeting

5 June 2024

Item No: C06/24-529

Audit, Risk and Improvement Committee - Draft Minutes of Meeting held on 20 May 2024 and Implementation of New Office of Local Government Guidelines for Risk Management and Internal Audit

Directorate: Governance and Risk

Responsible Officer: Director Governance and Risk

Community Strategic Plan Goal: Providing Local Leadership

Summary

This report presents the Draft Minutes of the Audit, Risk and Improvement Committee (ARIC) meeting held on 20 May 2024 for Council’s information and recommends the reappointment of the three existing Independent Members to the Audit, Risk and Improvement Committee commencing 1 July 2024.

Additionally, this report outlines the amendments to the Local Government General Regulation 2021 (Regulation) that prescribe the Office of Local Government Guidelines for Risk Management & Internal Audit (Guidelines), which take effect from 1 July 2024.

To align with the framework formed by the Regulation and Guidelines, Council has prepared the attached Draft ARIC Charter Terms of Reference, Draft Internal Audit Charter and Draft Risk Management Policy based on the OLG Model templates provided.

The Draft Charters and Draft Policy were supported by the ARIC Committee at the abovementioned meeting. It is now recommended that the Draft Charters be adopted, and that the Draft Policy be placed on public exhibition for 28 days and subsequently adopted if no adverse submissions are received.

It is also recommended that Council appoint one non-voting member Councillor to the ARIC, for a period for the remainder of the current Council term.

Recommendation

That Council:

1. Receive the Draft Minutes of the Audit, Risk and Improvement Committee meeting held on 20 May 2024.

2. Re-appoint the three existing independent members to the Cumberland Council Audit, Risk & Improvement Committee from 1 July 2024 for an initial 4 year term:

a) Mark Sercombe

b) Jason Young

c) Rhonda Wheatley

3. Adopt the Draft ARIC Charter Terms of Reference and Draft Internal Audit Charter.

4. Place the Draft Risk Management Policy on public exhibition for a period of 28 days, and subsequently adopt the Draft Policy if no adverse submissions are received.

5. Determine the appointment of one non-voting Councillor member (unable to be the Mayor) on the ARIC for the remainder of the current Council term.

Report

Background

Amendments have been made to the Local Government (General) Regulation 2021 to require that all councils and joint organisations have a risk management framework and an internal audit function, and to prescribe membership requirements for audit, risk and improvement committees. Councils and joint organisations are required to comply with these requirements from 1 July 2024 and to attest to their compliance with the requirements in their annual reports from 2024/25.

The Office of Local Government (OLG) has issued the comprehensive Guidelines for Risk Management and Internal Audit for Local Government in NSW to assist councils and joint organisations in implementing these requirements. The Guidelines are attached for reference.

The OLG have also released a template Terms of Reference for Audit, Risk and Improvement Committees, an example Risk Management Policy, a template Internal Audit Charter and an Attestation and Non-Compliance Statement template for use by councils and joint organisations to assist them in adhering to the Guidelines. Whilst certain elements of these documents are currently subject to review, it is important for Council to adopt these documents prior to the implementation date of 1 July 2024. Should these documents be amended in the interim, updates will be reported to ARIC and Council.

The Local Government (General) Amendment (Audit, Risk and Improvement Committees) Regulation 2023 (Regulation) reflects evolving governance standards and aligns with broader governmental objectives to enhance public sector accountability. The mandates necessitate the establishment of a risk management framework, an internal audit function, and specific ARIC guidelines.

Key Changes

Council undertook a review of the new requirements under the Regulation in preparing of the attached Draft ARIC Charter Terms of Reference, Draft Internal Audit Charter and Draft Risk Management Policy.

Draft ARIC Charter Terms of Reference

The attached Draft ARIC Charter Terms of Reference has been drafted based on the Model Charter outlined in the final OLG Guidelines.

In accordance with the updated Regulation, the following notable updates are required:

· Section 216K of the Regulation requires the adoption of the ARIC Charter – Terms of Reference (by Council resolution).

· Section 216O of the Regulation requires the adoption an internal audit charter (by Council resolution).

· Section 216C of the Regulation enables that one Councillor, who must not be the Mayor, of Council may also be appointed to the ARIC.

Appointment of One Non-Voting Councillor Member

Should Council wish to proceed to determine one non-voting Councillor to be appointed to the ARIC, this appointment would be effective for the remainder of the current Council term. Council may also wish to consider appointing an alternate non-voting Councillor, in the event that the appointed Councillor member is unable to attend an ARIC meeting for any reason. A Councillor appointed to the ARIC must meet the following criteria outlined in the Guidelines:

Eligibility criteria for Councillor members

To be appointed as a non-voting audit, risk and improvement committee member a councillor should demonstrate the following:

· an ability to read and understand financial statements and a capacity to understand the ethical requirements of government (including potential conflicts of interest)

· a good understanding of one or more of the following: risk management, performance Management, human resources management, internal and external auditing, financial reporting, accounting, management control frameworks, internal financial controls, governance (including planning, reporting and oversight), or business operations

· a capacity to form independent judgements and willingness to constructively challenge/question management practices and information

· a professional, ethical approach to the exercise of their duties and the capacity to devote the necessary time and effort to the responsibilities of a councillor member of an audit, risk and improvement committee, and

· preparedness to undertake any training on the operation of audit, risk and improvement committees recommended by the chairperson based on their assessment of the skills, knowledge and experience of the councillor member.

The mayor cannot be appointed as a councillor member of a council’s audit, risk and improvement committee.

These changes will ensure councillors are better informed in relation to how their councils are performing and have added oversight over decisions.

Councils may appoint a councillor (other than the mayor) as a non-voting member of the ARIC, to preserve the independence of the ARIC.

The role of councillors is to relay to the ARIC any concerns the governing body may have regarding the operations of the council and issues being considered by the ARIC. They would also provide insights into local issues and the strategic priorities of the council.

The Mayor, General Manager and nominated Internal Audit Coordinator should attend ARIC meetings as non-voting observers.

The amendments also outline the requirements for independent members. The Independent Members of Council’s ARIC have declared that their appointment adheres to the new requirements under the Guidelines.

Draft Internal Audit Charter

Council’s Draft Internal Audit Charter has been drafted to adhere to the Guidelines’ requirements whilst acknowledging that Council has hybrid operating model – that is, the majority of Internal Audits are undertaken by Council’s appointed Internal Auditing firm (currently InConsult). However, Council also completes a number of process and follow up audits each year internally, to ensure effective assurance over Council’s operations. This in turn, increases and retains the internal auditing capability and knowledge of the organisations operations, leading to better audit outcomes. Appropriate independence controls have been recommended in the Draft Charter.

No internal staff audits will be conducted on any areas within the Governance and Risk Directorate, given the Director is the nominated Internal Audit Coordinator or Chief Audit Executive of Council. These internal audits will all be completed externally.

Draft Risk Management Policy

Council’s updated Draft Risk Management Policy has been drafted based on a combination of the Example Policy provided by the OLG and Council’s existing Policy which is considered better practice.

ARIC Meeting of 20 May 2024

Council’s Audit, Risk and Improvement Committee recently held a meeting on Monday, 20 May 2024. Minutes of this meeting are attached for Council’s information.

The updated Draft ARIC Charter Terms of Reference, Draft Internal Audit Charter and Draft Risk Management Policy as attached to this report were supported by the ARIC at the abovementioned meeting, as recorded in the attached Draft Minutes.

Councillors were briefed on this matter at a Councillor briefing held on Wednesday, 22 May 2024.

Community Engagement

There are no consultation processes for Council associated with this report.

Policy Implications

There are no policy implications for Council associated with this report.

Risk Implications

There are no direct risks associated with this report. However, the presentation of the meeting minutes to Council provides transparent oversight of Council activities.

Financial Implications

The operations of the Audit, Risk and Improvement Committee are coordinated by the Governance & Risk Unit within Council utilising existing allocated resources. There are no additional financial implications for Council associated with this report.

CONCLUSION

The minutes of the Audit, Risk and Improvement Committee meeting are provided to Council for information purposes and to ensure that the review mechanisms of Council operate in an open and transparent manner. It is recommended that Council receive this information.

Attachments

1. Draft ARIC Minutes - 20 May 2024

2. Draft ARIC Charter Terms of Reference

3. Draft Internal Audit Charter

4. Draft Risk Management Policy

5. Local Government Regulation Amendment

6. OLG Guidelines for Risk Management and Internal Audit - November 2023

Granville Ward
Clr Steve Christou	0419 651 187	Steve.Christou@cumberland.nsw.gov.au
Clr Ola Hamed (Deputy Mayor)	0405 070 007	Ola.Hamed@cumberland.nsw.gov.au
Clr Joseph Rahme	0418 995 471	Joseph.Rahme@cumberland.nsw.gov.au
Greystanes Ward
Clr Diane Colman	0400 279 200	Diane.Colman@cumberland.nsw.gov.au
Clr Greg Cummings	0417 612 717	Greg.Cummings@cumberland.nsw.gov.au
Clr Eddy Sarkis	0425 348 000	Eddy.Sarkis@cumberland.nsw.gov.au
Regents Park Ward
Clr Kun Huang	0418 911 774	Kun.Huang@cumberland.nsw.gov.au
Clr Sabrin Farooqui	0400 322 999	Sabrin.Farooqui@cumberland.nsw.gov.au
Clr Helen Hughes	0400 264 534	Helen.Hughes@cumberland.nsw.gov.au
South Granville Ward
Clr Glenn Elmore	0418 459 527	Glenn.Elmore@cumberland.nsw.gov.au
Clr Paul Garrard	0414 504 504	Paul.Garrard@cumberland.nsw.gov.au
Clr Mohamad Hussein	0400 281 726	Mohamad.Hussein@cumberland.nsw.gov.au
Wentworthville Ward
Clr Suman Saha	0419 546 950	Suman.Saha@cumberland.nsw.gov.au
Clr Lisa Lake (Mayor)	0418 669 681	Lisa.Lake@cumberland.nsw.gov.au
Clr Michael Zaiter	0418 432 797	Michael.Zaiter@cumberland.nsw.gov.au

Councillor/Member Annual Fee		Mayor/Chairperson Additional Fee*
Minimum	Maximum	Minimum	Maximum
$ 20,500	$ 33,810	$ 43,530	$ 98,510

Funding Stream	Number of Projects recommended	Total $ recommendation
Community Participation	11	$78,886
Education and Employment Pathways	2	$18,293
Small Grants	3	$6,000
Total amount available in this round $180,000	16	$103,179

Community Grants Program	Annual Budget	Budget Available Round 3	Recommended Round 3 funding in this report
Community Grants Program	$500,000	$180,000	$103,179