DISTRICT COUNCIL OF LOWER EYRE PENINSULA
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1 DISTRICT COUNCIL OF LOWER EYRE PENINSULA MINUTES OF THE FINANCE COMMITTEE MEETING HELD IN THE COUNCIL CHAMBERS, RAILWAY TERRACE, CUMMINS, ON FRIDAY 19 SEPTEMBER 2008 COMMENCING AT 9.00 AM PRESENT: COUNCILLORS P B PEDLER (CHAIRMAN), N H TREZISE, J K LOW, G S BOBRIGE, P J PORTER, M J HILL AND L P MURRAY; MESSRS R W PEARSON (CEO), D M WINDSOR (WORKS MANAGER), L VIGAR (FINANCE OFFICER) AND MRS G E PICKFORD (SECRETARY) APOLOGIES: Nil. 217 CONFIRMATION OF MINUTES MURRAY / BOBRIGE That the Minutes of the Finance Committee Meeting held on 15 August 2008, as per copies supplied to members, be confirmed. 218 DEPUTATION Nil. 219 INVITED GUEST (1) Bob Hardy - Local Government Finance Authority (LGFA) The Chairman welcomed Bob Hardy (Manager for Funding & Investment for LGFA) to the meeting and invited him to address members and staff. The Development Manager entered the meeting at 9.05 am. (continued): G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 1
2 219 INVITED GUEST cont d: (1) Bob Hardy - Local Government Finance Authority (LGFA) cont d: Mr Hardy gave an overview of the activities and operations of the LGFA with highlights being: Profit generated since inception (1984) $92 M Bonuses to Members $23 M TER paid to R&D Fund $15 M Earnings Retained $52 M The Chairman thanked Mr Hardy for his presentation to Council and he left the meeting at 9.22 am. 220 BUSINESS ARISING FROM THE MINUTES Nil. 221 FINANCE REPORT BOBRIGE / PORTER That the Finance Report be received. FN/62/08 - BANK RECONCILIATION STATEMENT - AS AT 9/9/08 FN/63/08 - RESERVES STATUS REPORT AS AT 8/9/08 FN/64/08 - FUNDS STATUS REPORT - AS AT 9/9/08 FN/65/08 - COUNCIL BUDGET REPORT AS AT 22/8/08 (continued): G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 2
3 221 FINANCE REPORT cont d: FN/66/08 - MANAGED SERVICES FN/67/08 - PAYMENT FACILITIES BOBRIGE / LOW That: 1 Arrangements for the establishment of the Post Billpay Service through Australia Post be made in order to offer ratepayers additional alternatives when paying rate accounts; 2 Rate accounts be the only payments that Council accepts via the Australia Post Billpay facility; 3 Council staff arranges with the Cummins Community Bank the establishment of an EFTPOS facility at both the offices of Council; 4 Council allow rates and other types of payments to be made through the EFTPOS facility; 5 Council absorb the cost of the Post Billpay, Bpay and EFTPOS facilities and not on-charge the cost of merchant fees directly to the customer; and 6 Staff monitor the level of fees charged for the payment options offered by Council. FN/68/08 - BANKING ARRANGEMENTS BOBRIGE / LOW That: 1 The Bpay facility be transferred from Westpac to the Cummins Community Bank and operate under the current arrangements of accepting credit card and debit card transactions for rate payments; 2 Arrangements be made for the Bulk Payments facility with Cummins Community Bank to be used for transfer of Council s payroll; and 3 The Westpac General account and the Westpac Bpay account be closed upon introduction of Bpay and Bulk Payments facilities with the Cummins Community Bank. HILL / MURRAY That the Finance Report be adopted. G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 3
4 222 AIRPORT MANAGER S REPORT PORTER / LOW That the Airport Manager s Report be received. AM/54/08 - RADIO EQUIPMENT AM/55/08 - AIRPORT HOUSE AM/56/08 - OFFICE ACCOMMODATION AM/57/08 - AERODROME MANUAL AM/58/08 - TRAINING AM/59/08 - TAXIWAY AND APRON DEVELOPMENT (continued): G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 4
5 222 AIRPORT MANAGER S REPORT cont d: AM/60/08 - TERMINAL REDEVELOPMENT BOBRIGE / LOW That the following comments be provided to GHD for consideration in completing Stage Two of the Port Lincoln Airport terminal design project: The apron side entry point needs to be highlighted to guide arrivals to the door; Box gutters need to be adequately designed and to provide for long life and easy maintenance; External glass needs to be well shaded; Consideration needs to be given to alternative roof designs, including a single ridge; And that they also be advised that Council is prepared to proceed with the project based on the one general building concept with several options to be developed for alternative building finishes. AM/61/08 - RUNWAY LIGHTING CONTROL UPGRADE AM/62/08 - PORT LINCOLN FLYING CLUB LANDING FEES The CEO advised that he had been contacted by Ms Sue Chappell, Secretary of the Port Lincoln Flying Club voicing her disappointment with the recommendation included in the Agenda. Ms Chappell believes that the imposition of landing fees on small planes is a discouragement to use the Port Lincoln Airport. HILL / PORTER That the Port Lincoln Flying Club Inc be advised that Council, having considered their request to waive landing fees for single engine general aviation aircraft, will not grant the exemption for the following reasons: It is not considered appropriate that other users of the airport should subsidise one particular group of users. It is not possible for Council to differentiate between commercial and private single engine aircraft, thus the exemption would be applied to one sector of the commercial aviation industry while the remainder of the industry would be required to provide the shortfall of income. (continued): G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 5
6 222 AIRPORT MANAGER S REPORT cont d: AM/62/08 - PORT LINCOLN FLYING CLUB LANDING FEES cont d: While Council recognises that Recreational Aviation Australia aircraft use the airport and do not pay fees there appears to be no viable administrative method by which this can be achieved and should such a method be found Council would also charge these users on the same basis as other aircraft. While Council understands that costs for light aircraft flying are increasing it also needs to be understood that the same cost pressures are felt by Council in operating the airport, like fuel prices, bitumen costs have risen dramatically and this will add to the infrastructure maintenance costs for the airport. These cost pressures are also felt by larger aircraft operators as well. Increases in landing charges for all classes of aircraft have been kept at a very low level by Council since it took ownership of the airport, thus it would seem that the decline in general aviation is largely due to factors other than landing charges and it then follows that lowering or even removing landing charges is unlikely to restore the industry to its previous condition. The security requirements for the airport are not within the control of Council, and it should be noted that the administrative costs for the airport to comply with these requirements are not fully met by the charges imposed on the users. Council has in the past considered any requests for waiving of landing charges for a particular event or occasion on their merits and are happy to consider any such request where there is considered to be a community benefit. AM/63/08 - AIRSERVICES AUSTRALIA OPERATOR INTERFACE ARRANGEMENT HILL / BOBRIGE That the actions of the Airport Manager in providing Airservices Australia with an acceptance of the Aerodrome Operator Interface Agreement for Port Lincoln Aerodrome be endorsed. G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 6
7 222 AIRPORT MANAGER S REPORT cont d: AM/64/08 - REGIONAL EXPRESS - REGIONAL AIR SERVICES VIABILITY AM/65/08 - AVIATION SECURITY SCREENING REVIEW AM/66/08 - PASSENGER SURVEYS AM/67/08 - MEETINGS ATTENDED PORTER / MURRAY That the Airport Manager s Report be adopted. The Airport Manager left the meeting at am. 223 TENDERS / QUOTATIONS (1) Plant, Machinery and Vehicle Tenders LOW / BOBRIGE That the tender documents be received. 1. Tender 1 - Supply of One Backhoe Loader BOBRIGE / PORTER That Council accepts the tender from Cavpower for the supply of one Caterpillar 432E backhoe loader for a changeover price of $116,400 ex GST. G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 7
8 223 TENDERS / QUOTATIONS cont d: 2. Tender 2 - Supply of Two 3-Tonne Dual Cab Truck Chassis (1 x Lincoln, 1 x Cummins) LOW / PORTER That Council accepts the tender from North-East Isuzu for the supply of two NPR300 dual cab chassis trucks for the changeover price of $69, ex GST. 3. Tender 3 - Supply of Two 4-Cylinder Cab Chassis Utilities (1 x Lincoln, 1 x Cummins) TREZISE / HILL That Council accepts the tender from HV Motors for the supply of two Mazda BT50 cab chassis utilities for a changeover price of $23, ex GST. 4. Tender 4 - Supply of One Skidsteer Loader TREZISE / BOBRIGE That Council accept the tender from Hitachi for the supply of one John Deere 325 skidsteer loader with an air-conditioned, pressurised cab for the changeover price of $49, Tender 5 - Supply of One 6-Cylinder Utility (General Inspector) TREZISE / BOBRIGE That Council accepts the tender from Mike Raleigh Motors for the supply of one Ford Falcon Ute for a changeover price of $17, ex GST. 6. Additional plant and equipment purchase G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 8
9 224 CORRESPONDENCE (1) Avdata Jetcraft Landing Fees LOW / BOBRIGE That Council endorse the writing off of the debt owed by Jetcraft Aviation totalling $14, (GST Inclusive) for landing fees at the Port Lincoln Airport following the appointment of McLeod and Partners as administrators of Jetcraft Aviation and the final dividend of $1, being paid to Council. BOBRIGE / MURRAY That the remainder of the Finance Committee items be deferred and incorporated into the Council meeting agenda. Carried MEETING CLOSED AT AM MINUTES CONFIRMED : (CHIEF EXECUTIVE OFFICER).... (CHAIRMAN) DATED : 17 OCTOBER 2008 G:\New Common\New_Structure\Minutes\Finance\FNMN0908.doc 9
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