A Council meeting will be held on Tuesday 20 April 2021 in the Council Chambers located Corner Tozer and Elbow Streets, West Kempsey commencing at ...
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A Council meeting will be held on Tuesday 20 April 2021 in the Council Chambers located Corner Tozer and Elbow Streets, West Kempsey commencing at 9:00 AM
INDEX
1 OPENING PRAYER ..............................................................................................................................3
2 ACKNOWLEDGEMENT OF COUNTRY .................................................................................................3
3 APOLOGIES AND APPLICATIONS FOR A LEAVE OF ABSENCE BY COUNCILLORS ................................3
4 CONFIRMATION OF MINUTES ...........................................................................................................3
5 DISCLOSURES OF INTEREST ...............................................................................................................3
6 ITEMS PASSED BY EXCEPTION ...........................................................................................................4
7 MAYORAL MINUTES ..........................................................................................................................5
7.1 ACKNOWLEDGEMENT OF THE CONTRIBUTION BY GENERAL MANAGER AND STAFF DURING THE
MARCH 2021 MACLEAY VALLEY NATURAL FLOOD DISASTER ....................................................................5
8 REPORTS OF COMMITTEES ...............................................................................................................9
9 REPORTS TO COUNCIL .....................................................................................................................10
9.1 MACLEAY VALLEY COAST HOLIDAY PARKS - ANNUAL LICENCES AND MASTER PLANS ............................10
9.2 MARCH 2021 FLOOD EVENT ....................................................................................................................31
9.3 INTEGRATED PLANNING & REPORTING - DELIVERY PROGRAM / OPERATIONAL PLAN 2021-22 ............45
9.4 PLANNING PROPOSAL - KEMPSEY CBD FLOOD PLANNING ......................................................................54
9.5 KEMPSEY SHIRE LGA COASTAL ZONE TIDAL INUNDATION STUDY & COASTAL VULNERABILITY MAPPING
.................................................................................................................................................................59
9.6 CLASSIFICATION OF LAND - SEWAGE PUMPING STATION AT SOUTH WEST ROCKS................................71
9.7 RECOVERY UPDATE ..................................................................................................................................73
9.8 CHANGE OF COUNCIL ORDINARY MEETING DATE - JUNE 2021 ..............................................................76
9.9 DEVELOPMENT ACTIVITY AND LEP VARIATIONS - QUARTERLY SNAPSHOT - 3RD QUARTER...................77
9.10 STATEMENT OF CASH AND INVESTMENTS - APRIL 2021 .........................................................................80
10 NOTICES OF MOTION/QUESTIONS WITH NOTICE ...........................................................................82
10.1 DELEGATES REPORT - 2020 LOCAL GOVERNMENT NSW ANNUAL CONFERENCE....................................82
10.2 SPOONERS AVENUE - CONSTRUCTION AND SEALING .............................................................................84
10.3 DAMAGED TRAFFIC ISLANDS - COUNCIL TOWN CENTRES .......................................................................86
10.4 REQUEST FOR SPEED ZONE REVIEW - BARNARD STREET GLADSTONE....................................................87
10.5 FLOOD IMMUNITY - CRESCENT HEAD ROAD IN VICINITY OF RUDDERS LAGOON ...................................89
10.6 QUESTIONS ON NOTICE ...........................................................................................................................91
11 CONFIDENTIAL MATTERS ................................................................................................................98
11.1 LEGAL MATTERS.......................................................................................................................................99
11.2 TQE20/33 REFURBISHMENT OF STUARTS POINT RESERVOIR .................................................................99
12 CONCLUSION OF THE MEETING ......................................................................................................99
Ordinary Council Meeting - 20 April 2021 Page 2
1 OPENING PRAYER “Dear Lord, help us in our deliberations today so that our decisions will be for the greater good for the whole of Kempsey Shire - Amen”. 2 ACKNOWLEDGEMENT OF COUNTRY “Council acknowledges that this meeting is being held on the traditional lands of the Dunghutti People”. 3 APOLOGIES AND APPLICATIONS FOR A LEAVE OF ABSENCE BY COUNCILLORS That the apology submitted by Councillors for non-attendance at the meeting be accepted and leave of absence granted. 4 CONFIRMATION OF MINUTES That the minutes of the ordinary meeting of Kempsey Shire Council dated 16 March 2021 be confirmed. Attachments 1. 2021-03-16-draft-minutes-r2 [4.1.1 - 13 pages] 5 DISCLOSURES OF INTEREST That Councillors' declared interests be noted. Ordinary Council Meeting - 20 April 2021 Page 3
6 ITEMS PASSED BY EXCEPTION
The council or a committee of council may, at any time, resolve to adopt multiple items of business
on the agenda together by way of a single resolution.
Before the council or committee resolves to adopt multiple items of business on the agenda
together, the chairperson must list the items of business to be adopted and ask councillors to
identify any individual items of business listed by the chairperson that they intend to vote against
the recommendation made in the business paper or that they wish to speak on.
The council must not resolve to adopt any item of business that a councillor has identified as being
one they intend to vote against the recommendation made in the business paper or to speak on.
RECOMMENDED:
That the recommendations contained in the following items be adopted:
9.5 KEMPSEY SHIRE LGA COASTAL ZONE TIDAL INUNDATION STUDY & COASTAL
VULNERABILITY MAPPING
9.6 CLASSIFICATION OF LAND - SEWAGE PUMPING STATION AT SOUTH WEST ROCKS
9.7 RECOVERY UPDATE
9.8 CHANGE OF COUNCIL ORDINARY MEETING DATE - JUNE 2021
9.9 DEVELOPMENT ACTIVITY AND LEP VARIATIONS - QUARTERLY SNAPSHOT - 3RD
QUARTER
9.10 STATEMENT OF CASH AND INVESTMENTS - APRIL 2021
10.1 DELEGATES REPORT - 2020 LOCAL GOVERNMENT NSW ANNUAL CONFERENCE
11.1 LEGAL MATTERS
11.2 TQE20/33 REFURBISHMENT OF STUARTS POINT RESERVOIR
Ordinary Council Meeting - 20 April 2021 Page 4
7 MAYORAL MINUTES
7.1 ACKNOWLEDGEMENT OF THE CONTRIBUTION BY GENERAL MANAGER AND STAFF
DURING THE MARCH 2021 MACLEAY VALLEY NATURAL FLOOD DISASTER
Councillor Liz Campbell, Mayor
File No F21/2830
Attachments Nil
PURPOSE
The purpose of this report is to express Council’s sincere thanks and to acknowledge the exceptional
commitment, professionalism and leadership of the General Manager and Staff of Kempsey Shire
Council during the March 2021 Macleay Valley Natural Flood Disaster.
RECOMMENDATION
That Council:
1. Acknowledges the leadership and contribution of Kempsey Shire Council General
Manager, Craig Milburn, the Local Emergency Management Officer (LEMO), Robert Fish,
and the alternate LEMO, Dylan Reeves, and the support staff in the Emergency Operations
Centre and Recovery Taskforce during the March 2021 Macleay Valley Natural Flood
Disaster.
2. Formally thanks the General Manager and Staff for their outstanding commitment to the
community in responding to the flood, in particular those field-based staff who worked
through the flood in difficult work conditions providing an outstanding contribution to
keeping the community safe and critical infrastructure operating where impacts allowed.
3. Notes and places on the public record the correspondence received from the Local
Emergency Operations Controller (LEOCON), Detective Chief Inspector Mid North Coast
Police District, Darren Jameson, in which he extends his personal thanks to the General
Manager and Staff for their dedication and service to the community.
BACKGROUND
In the three years since Craig was appointed General Manager, he has transformed the organisation
into a positive and community-focused organisation. His strong leadership skills are evident on a
daily basis, but these qualities were never more on display than during the devastating 2019/20
summer bushfires, and in leading Kempsey Shire Council through the COVID-19 pandemic with a
Business Continuity Plan second to none. In the recent flood situation, the General Manager was
exceptional in leading Council staff by example to give the very best of themselves whilst they
themselves were under pressure in being members of a community experiencing a serious flood.
Council staff stepped up and assisted the lead agency of NSW SES wherever possible and provided
significant direct resourcing assistance and field based operational support to the operation of the
Emergency Operations Centre and Recovery Taskforce. The operational expertise and commitment
of Council’s LEMO, Robert Fish, and alternate LEMO, Dylan Reeves, provided the General Manager
and LEOCON with unwavering support in responding to the many challenges the community faced
during the severe weather event.
Council’s Infrastructure Delivery and Water and Sewer teams braved the wild weather and difficult
flood conditions to ensure essential water supplies and sewerage systems were safe, sandbagged
the Kempsey CBD, operated flood mitigation infrastructure and kept our roads and bridges as safe
Ordinary Council Meeting - 20 April 2021 Page 5
and accessible as possible for local residents and Emergency Response crews. It was Council’s Communications team who worked around the clock to ensure the Macleay Valley community was kept updated with accurate and timely information, and Council staff played a significant role in providing strong administrative support at the Emergency Operations Centre. Council staff in our Environmental Health, Waste and Recovery Hub areas of the organisation have also provided significant support in response to the flood, with expert advice and determining quick but sound solutions to complex issues being a key requirement. Often staff were called upon to support these response operations, despite not being a part of their normal duties. Across the organisation, staff continued to provide services to our community, as well as managing Council business and assisting other service agencies. Recognition of the General Manager’s and Staff’s dedicated service in supporting the emergency response effort was outlined in external correspondence received from Detective Chief Inspector Mid North Coast Police District, Darren Jameson, who assisted as Kempsey Shire’s alternate Local Emergency Operations Controller during the March 2021 flood event given the length of the event and the need to operate 24 hours a day over extended periods through the event. His comments acknowledge the exceptional qualities and high performance of the General Manager in providing strong leadership to the Macleay Valley community, and the dedication and expertise of staff in supporting the emergency response efforts. Detective Chief Inspector Jameson’s emails to the Mayor and General Manager are provided below for information. The Kempsey Shire community has benefited greatly from having a high performing leadership team and committed professional Council staff during the March 2021 flood. Council is confident that the organisation will continue to support the community where needed during the flood recovery phase. Email: Darren Jameson to Mayor From: Darren Jameson Sent: Wednesday, March 31, 2021 5:42:48 PM To: Liz Campbell Subject: Email of appreciation and recognition [SEC=OFFICIAL] Mayor Liz Campbell Mayor Kempsey Shire Council. Dear Liz, I just wanted to pass on my sincere thanks to all at council on the work done recently in the 2021 Floods. Outside of the open letter to all staff, I have also emailed personal and individually messages of thanks to Robert Fish (LEMO), Dylan Reeves (Alt. LEMO), Fiona Newberry and Tara Gordon regarding the value that they brought, as a self-led high performing team to the EOC and the Rapid Relief Coordination Team. However, self-led high performing teams have to have an exceptional leader themselves, and in your General Manager, Craig Milburn, the Shire has that person. On top of that true leadership is done by good people, as good people go good. Ordinary Council Meeting - 20 April 2021 Page 6
The professionalism, knowledge, counsel and commitment displayed by Craig to the emergency situation was flawless and very much appreciated by me in my role as LEOCON. He undertook his duties without fuss, remaining focused and with great humility. The pressure he must have been under never showed, and was a great comfort to those that look to him for leadership. Craig brought a level of humanity with him to the team, focused on the community and wanting to ensure their safety and wellbeing. In life we see people who are either in service of themselves, or in service of others. A true leader is in service of others, and there is no doubt to me that Craig is someone who is in service to his team and this community. In my life’s journey, I have had the great honour meeting people who have enriched my life, and Craig and the rest of the team in the EOC are definitely some of those people. The community has much to be thankful for, but none more than to have Craig looking after them as General Manager. I would appreciate if you could place this message on the public record to your councillors in the chamber at your next council meeting, and provide him a copy of this message for his personal records. Wishing you, council and the Shire all the best for the furture. Darren Darren Jameson | Detective Chief Inspector LEOCON (Local Emergency Operations Controller) | Kempsey Emergency Operations Centre (EOC) Mid North Coast Police District Kempsey Police Station | 3 Elbow Street, West Kempsey NSW 2440 ▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀ Email: Darren Jameson to General Manager From: Darren Jameson Sent: Wednesday, 31 March 2021 7:34 AM To: Craig Milburn Cc: Robert Fish Subject: Open Letter of thanks from the LEOCON to all Kempsey Shire Council staff - Kempsey Floods [SEC=OFFICIAL] Importance: High Dear Craig, I would appreciate this letter being forward to all your council staff. I hope you all are well. As the operational phase of the response to the flooding event starts to wind down, I wanted to write to you all to express my sincere thanks during this emergency. Although the face of council is represented in the Emergency Operations Centre (EOC) and the Relief Coordination Team, it is the team behind them at the coalface of the response, relief and recovery that have made a considerable difference to our community. Make no mistake that in the end, this event will have caused tens of millions of dollars damage to the community. With many areas Ordinary Council Meeting - 20 April 2021 Page 7
knocked off their feet, we are all acutely aware that we dodge the proverbial bullet with the waters not breaching the levee. On a positive note, it is your considerable hard work that has helped guide our community quickly to their feet, so that normality can be restored swiftly. In a team, we all play our part. Whether it is fixing roads, cleaning public areas, supporting the EOC, providing administrative coordination and support, or simply ensuring council continues to provide its services to the community, it all contributed to the success of our response and rehabilitation. There is no doubt in my mind that your individual and collective contributions to the safety and wellbeing of the community. It doesn’t matter if you were stranding in your communities and still helped where you could, out fixing issues, or just supported councils business, you made a difference and contributed to the success of the operations to this event. You all should be proud of your efforts, even if you feel that you were just doing your job. Stand tall, and know that your involvement is noticed and recognised, and the community should be and will be thankful that you were there to help. I wish you well in the ongoing recovery, and that you remain safe and well. Regards Darren Jameson | Detective Chief Inspector LEOCON (Local Emergency Operations Controller) | Kempsey Emergency Operations Centre (EOC) Mid North Coast Police District Kempsey Police Station | 3 Elbow Street, West Kempsey NSW 2440 ▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀▄▀ Ordinary Council Meeting - 20 April 2021 Page 8
8 REPORTS OF COMMITTEES Nil Ordinary Council Meeting - 20 April 2021 Page 9
9 REPORTS TO COUNCIL
9.1 MACLEAY VALLEY COAST HOLIDAY PARKS - ANNUAL LICENCES AND MASTER PLANS
Officer Gayleen Burley, Manager Commercial Business
File No F19/2551
Attachments 1. Social and Economic Impact of Annuals Review Report [9.1.1 - 44 pages]
2. Annual License Site Management Policy [9.1.2 - 2 pages]
3. 210321 Annual License Site Management Strategy [L3NI] [9.1.3 - 8 pages]
4. MVCHP - Future Parks Engagement Report [9.1.4 - 84 pages]
5. Grassy Head Holiday Park - Concept Plan [9.1.5 - 4 pages]
6. Stuarts Point Holiday Park - Concept Plan [9.1.6 - 4 pages]
7. Hat Head Holiday Park - Concept Plan [9.1.7 - 4 pages]
8. Horseshoe Bay Holiday Park - Concept Plan - Recommended [9.1.8 - 4 pages]
9. Horseshoe Bay Holiday Park - Concept Plan - Alternative [9.1.9 - 4 pages]
10. Crescent Head Holiday Park - Concept Plan - Recommended [9.1.10 - 4
pages]
11. Crescent Head Holiday Park - Concept Plan - Alternative [9.1.11 - 4 pages]
PURPOSE
The Macleay Valley Coast Holiday Parks (MVCHPs) are a significant component of the Macleay Valley
tourism accommodation offering and important assets of Council. Revenue generated from MVCHPs
is used to not only fund the upgrade of the holiday parks, but also community and tourism
infrastructure within the Shire, which would otherwise have to be funded by general ratepayers.
The purpose of this report is to formalise the strategic direction regarding the development of the
MVCHPs through adoption of:
The MVCHPs 10-year Concept Plans; and
The MVCHPs Licenced Sites Policy and Annual Licence Sites Strategy.
RECOMMENDATION
That Council:
1. Note that the revenue generated by the Macleay Valley Coast Holiday Parks provides an
important funding source to improve all crown reserves under Kempsey Shire Council’s
management, which would otherwise be funded from general ratepayer funds.
2. Note the Macleay Valley Coast Holiday Park Stakeholder Engagement Report undertaken
by Locale Consulting.
3. In relation to Annual Licences within the Macleay Valley Coast Holiday Parks:
a. Note the Macleay Valley Coast Holiday Parks Annual Licence Social and Economic
Impact Assessment undertaken by Locale Consulting;
b. Note the proposed change in Annual Licences Fees and Charges to be placed in the
draft 2021/22 Kempsey Shire Council Fees and Charges, which will be presented to
Council in April 2021 prior to public exhibition;
c. Adopt the attached Licenced Sites Management Policy and Annual Licence Site
Management Strategy; and
d. Note that a fair and transparent plan for the rationalisation of the annual sites,
consistent with the Annual Licence Strategy and Site Development Plans, will be
Ordinary Council Meeting - 20 April 2021 Page 10developed and communicated to the Annual Site Licence Holders by 31 December
2021.
4. Adopt the Macleay Valley Coast Holiday Parks 10-year Concept Plans for Grassy Head,
Stuarts Point, Hat Head, Horseshoe Bay (Recommended Plan) and Crescent Head Holiday
Parks (Recommended Plan).
BACKGROUND
Council’s adopted Horizon 2030: Macleay Valley Economic Development and Tourism Strategy sets
the strategic direction for Economic Development and Tourism for the Macleay Valley Coast over the
next 10 years. The plan sets a blueprint for enhancing the vibrancy, diversity and sustainability of
the Macleay Valley Economy.
The vision for a vibrant visitor economy in the Macleay Valley Coast is to establish itself as a premier
regional visitor destination through the development of iconic natural visitor attractions, driving
growth in high-yield and environmentally sustainable tourism.
Commercial holiday parks are an important component of the Macleay Valley accommodation
tourism offering, with the Macleay Valley Coast Destination Management Plan 2019-2029
highlighting the following key facts in relation to Kempsey Shire tourism:
30% of all tourists are staying in commercial camping / caravan parks;
International tourists are almost exclusively on holiday and are predominantly camping or
staying in holiday parks; and
By far the predominant form of accommodation in the Macleay Valley Coast region are the
camping and caravan facilities at the headland holiday parks.
Given the importance of the MVCHPs as a major tourism accommodation provider within the
Kempsey Shire, it is critical that these holiday parks are designed, managed, maintained and
improved to the appropriate standard to provide the opportunity to increase the overall economic
contribution of the Kempsey Shire.
The revenue generated by the MVCHPs also provides an important funding source to improve all
crown reserves under Kempsey Shire Council’s management, which would otherwise have to be
funded by the general ratepayer. The focus for the upgrade and long-term development of the
holiday parks is to increase the yield of the holiday parks within the current footprint in order to
provide sustainable tourism which contributes to infrastructure upgrades and natural environment
improvements on Crown Land reserves managed by Council for the betterment of the Shire’s
residents.
Recent examples of where revenue generated by MVCHPs has contributed towards improved
community facilities are as follows:
Stuarts Point Foreshore Refurbishment works – jointly funded by external grants and
MVCHP revenue;
Crescent Head Foreshore and CBD Amenities – jointly funded by external grants and MVCHP
revenue;
Lifeguard and beach cleaning services – MVCHP make a contribution to the provision of
these services;
Civic maintenance on foreshore reserves (mowing, cleaning or amenities, landscaping, etc) -
– MVCHP contribute to the provision of these services;
Ordinary Council Meeting - 20 April 2021 Page 11Public place bins servicing on foreshore reserve - – MVCHP contribute to the provision of
these services; and
Horseshoe Bay Day area – MVCHP fully funds the maintenance of this reserve area.
The current condition of some of the MVCHP accommodation and facilities is very poor with some
assets being either at, or close to, end of life and in need of replacement in the short term. The
current wide-spread deterioration of the infrastructure across all five (5) MVCHPs creates a 1:50 year
opportunity for Council to review business planning and create layouts for the parks that:
maximise functionality, revenue generation and effective integration with the broader
reserve;
achieve current legislative compliance; and
meet market expectations and industry trends.
Ongoing investment and development in the MVCHPs are essential not only to ensure that the
accommodation offering and communal facilities within the parks meet current industry standards
and customer expectations, but to also ensure that these assets drive tourism and economic activity
for the shire and produce revenue to support the maintenance and improvement of community and
tourism infrastructure without further reliance on general rate payer funds.
KEY CONSIDERATIONS
There are three (3) key areas for consideration in relation to the overall concept plans for the holiday
parks with the view to both maximising revenue generation and the economic contribution to the
Shire:
1. Licenced sites (both annuals and permanents);
2. Mix of diverse short-term tourist accommodation offering within the holiday parks being
cabins (studio/2-3 bedroom), safari tents, powered and unpowered caravan and camping
sites; and
3. Quality, quantity and location of communal park facilities such as toilets/showers, roadways,
camp kitchens, laundries, green space, and manager facilities.
Each of these three key areas are considered in the following sections below with specific
commentary and where appropriate, recommendations, included for each of the five MVCHPs.
1. Licenced Sites
Permanent Sites
The Residential Land Lease Communities Act provides permanent tenure of the occupants. Rent
currently being levied on permanent occupants is below market value and Council will seek to rectify
this anomaly through applying rent based on independent market-based rental valuations.
Annual Sites
Annual Licenced Sites Economic & Social Impact Assessment
At the December 2019 Council meeting, Council resolved to undertake a Social and Economic Impact
Assessment of Annual Sites to assist in providing strategic direction for the future offering of annual
licenced “holiday van” sites (Annual Sites) within Kempsey Shire Council’s MVCHPs as follows:
2019.610 RESOLVED: MOVED: Cl Morris SECONDED: Cl Saul
1. That Council undertake an impact assessment of the impact of changing the management of
annual licence holders and permanent resident’s sites within Council's holiday parks at
Crescent Head, Hat Head, Stuarts Point and Grassy Head. That this impact assessment to
consider matters such as:
Ordinary Council Meeting - 20 April 2021 Page 12a. Holiday park income generation
b. Holiday park upgrade pathways
c. Town village social and business impacts
2. The development of these impact assessments to include community engagement with all
stakeholders.
3. That a workshop and site inspection with Councillors be undertaken.
4. That Council commence appropriate stakeholder engagement on proposed changes to site
layout plans with users of the holiday parks and the local community including users of the
nearby reserves.
5. That updated site layout plans are presented for consideration at a future Council meeting.
6. That Council write to all existing annual licence holders to reiterate the licence condition
which requires them to:
a. seek prior written permission of the park owner prior to selling the occupants
movable dwelling while it is on the site; and
b. seek park owner’s prior written permission prior to transferring the whole or part of
the occupant's interest under the licence agreement.
Council appointed a specialist advisor, Locale Consulting, to prepare the economic and social impact
assessments required for the review of annual licences within the MVCHPs at Grassy Head, Stuarts
Point, Hat Head and Crescent Head (note: no annual licence sites exist at Horseshoe Bay Holiday
Park).
Thorough engagement with licence holders, businesses, holiday park managers, visitors and the
broader community was an important part of undertaking the social and economic impact
assessment. During September and October 2020 Locale Consulting also engaged with the broader
community and visitors to understand expectations for future development of the MVCHPs.
The primary focus of the Economic & Social Impact Assessment Report is to provide Council with an
evidence base to inform the strategic direction of the MVCHPs for the future.
The full Locale Consulting ‘Kempsey Shire Council Social and Economic Impact of Annuals Review
Report – November 2020’ is attached to this paper. However, the key findings across all of the
MVCHPs are as follows:
Annual site holders often have a long association with sites and desire a commensurate level
of respect and open communication regarding any future change. Options such as providing
first right to future tourist sites may be appropriate to facilitate a continued association with
the area;
Across all MVCHPs there is an increasing economic argument for the staged removal of
annual sites, particularly at Crescent Head Holiday Park in the short-term;
With the exception of Hat Head Holiday Park, there are few examples of direct social
impacts that would be attributable to the removal of annual sites provided that this can be
undertaken in a considered way and staged where necessary;
Clear and concise plans are required for each Holiday Park to identify short (1-2 years),
medium (3-5 years) and long-term (5-10 years) changes; and
Council should consider restrictions on sales and improvements to provide a clear indication
of transition arrangements being in place, unless where works are needed to meet required
standards.
Informed by the ‘Kempsey Shire Council Social and Economic Impact of Annuals Review Report –
November 2020’ and the ‘Future Parks Engagement Report’, the 10-year Concept Plans were
developed. The high-level recommendations in relation to the staged removal of annual licences for
each of the specific MVCHPs are as follows:
Grassy Head Holiday Park
Ordinary Council Meeting - 20 April 2021 Page 13Medium-term (3-5 years) - remove and/or relocate (i.e. in-fill) annual sites located in
o
the entry area and convert to tourist sites to allow for prime sites around entry area
to be allocated for additional cabins. Consolidate remaining annual sites into one
area; and
o Long-term (5-10 years) - staged reduction of annual sites to focus on tourist sites as
demand necessitates, prior to removal of all annual sites.
Stuarts Point Holiday Park
o Long-term (5-10 years) - remove and/or relocate (i.e. in-fill) some annual sites into a
consolidated area (south western precinct) and convert to tourist sites. Staged
reduction of annual sites to focus on tourist sites as demand necessitates, prior to
removal of all annual sites.
Hat Head Holiday Park
o Short-term (1-2 years) - remove and/or relocate (i.e. in-fill) annual licence sites from
centre of the park to the Western section (noted as 3 on concept plans) within the
holiday park;
o Long-term (5-10 years) - staged reduction of annual sites to focus on tourist sites as
demand necessitates, prior to removal of all annual sites.
Crescent Head Holiday Park
o Short Term (1-2 years) - remove all annual sites and convert to tourist sites to enable
ongoing growth in tourism through significantly increased occupancy rates.
The abovementioned recommendations are included within the MVCHPs 10-Year Concept Plans
which are also attached to this report.
Licenced Sites Policy and Strategy
Taking into account the Economic and Social Impact Assessment outcomes and recommendations,
as detailed above, a Licenced Sites Policy and Annual Licence Site Management Strategy has been
developed in order to clearly articulate how Council will manage these sites into the future (refer
attached).
Further to the requirements of the policy and strategy, Council will develop an equitable and
transparent plan for the rationalisation / relocation of annual licenced sites in accordance with the
attached MVCHP Concept Plans. This plan will be developed and communicated to the Annual Site
Licence Holders by 31 December 2021.
Fees and Charges
Locale Consulting assessed the annual licence revenue against the average powered sites revenue as
a basis for the Economic and Social Impact Assessment. Revenue for annual sites, as well as for
powered sites, for the four holiday parks which have annual sites, is provided below (on a per site
basis and is based on data collected by the Holiday Park booking system in the 2019 year). This
includes the annual revenue per site, as well as the change in revenue over the previous five-year
period, the results of which are provided in the below table for each park in addition to a
consolidated amount across all four parks which shows a significant disparity in the 5-year change of
14% in annual sites as compared to 44% in Powered Sites:
Ordinary Council Meeting - 20 April 2021 Page 14In order to assist in bridging the gap between the annual licence site and the short-term powered
tourist site revenue, it is proposed that the annual licence sites fees and charges are increased as
follows:
Annual Fee Existing Fee Proposed % Increase Proposed 2021/22 Fee
Grassy Head $3,870 25% $4,838
Stuarts Pt $4,180 25% $5225
Hat Head $4,530 25% $5,663
Crescent Head $5,200 25% $6,500
The abovementioned increases are based on the following:
The financial analysis provided by Locale Consulting and summarised above which shows
that all short-term tourist powered sites increased between 44% over the past 5 years
whereas annual sites revenue only increased by 14% during the same time period;
Benchmarking against other NSW Council owned holiday parks which ranges from $3,900 -
$8,020 per annum;
Increasing allowable night stays from 150 to a maximum legislative number of 180 nights,
which provides a 20% increase in the number of allowable nights as an offset to the
proposed annual fee increase; and
Acknowledging that annual licence holders need to more equitably contribute to the overall
communal amenity upgrade of the holiday parks (i.e. roadways, drainage, landscaping, and
amenities).
It is to be noted that across all holiday parks, the annual licence fee is still lower than the average
powered site revenue.
The following additional fees are also proposed to be implemented for annual sites:
Additional Fee Proposed Fee Comment
ex-GST
Administration Fee for $550 An Administration Fee covers the cost of setting up a
new annual site new account for an annual licence site (one-off
holders (one-off) charge).
Inspection Fee (annual) $150 An Inspection Fee is an annual fee paid by all annual
licence sites to allow Council to ensure Annual Site
Licence Holder compliance with the relevant legislative
Ordinary Council Meeting - 20 April 2021 Page 15requirements
Removal Fee (one-off) $5,000 The Removal Fee covers the cost of removing all
infrastructure (caravan, structures) left on the park
following a termination of an agreement or a
relocation of their site.
Airconditioning Fee $100 The Air Conditioning Fee covers the cost of having and
(annual) using an air conditioner connected to the annual
licence site, in recognition of the associated electricity
cost.
The above proposed MVCHPs Annual Fees and Charges will be included in the KSC 2021/22 draft
Schedule of Fees and Charges giving annual site holders the opportunity to review and provide
feedback during the public exhibition period of the Fees & Charges post the April 2021 Ordinary
Meeting of Council.
2. Mix of diverse tourist accommodation
Although the MVCHPs are situated on prime Crown Land foreshore reserve locations, the tourist
accommodation offering within the parks is relatively basic consisting mainly of:
Unpowered camping sites;
Powered camping sites; and
Outdated studio and 1 -2 bedroom cabin stock (some of which do not contain bathrooms).
The exception to this is the newly replaced cabins at Crescent Head in the Oceanfront precinct,
where 13 cabins were replaced with 12 larger modern 2 and 3 bedroom cabins in 2020. Some basic
cabin refurbishment works were also undertaken in 2019/20 at Stuarts Point and Horseshoe Bay
Holiday Parks.
The Macleay Valley Coast Destination Management Plan sets the vision for a vibrant visitor economy
in the Macleay Valley as follows:
“to establish itself as a premier regional visitor destination through the development of iconic natural
visitor attractions, driving growth in high-yield and environmentally sustainable tourism”.
Given the high all year-round occupancy at some of the MVCHPs (particularly, Crescent Head and
Horseshoe Bay) the only feasible way to increase the yield of these parks is to provide upgraded
accommodation offerings. This also supports a sustainable tourism approach whereby the upgrade
does not necessarily bring additional tourism impacts such as increased water usage, additional load
on sewer treatment plants, additional waste, etc. but instead drives economic activity due to
increased overnight spend whilst also increasing the revenue yield from the parks which can be
reinvested back into the Shire’s managed Crown Land Reserves.
As previously noted, Locale Consulting undertook detailed engagement with residents, tourists,
businesses, annual licence holders and community groups in order to understand the sentiment
regarding holiday park development. The Engagement Report is detailed and comprehensive and
was utilised to inform the concept plans for the future development of the parks. The concept plans
for each MVCHP are attached and show the stages of proposed development in the short (1-3
years), medium (4-6 years) and long (7-10 years) term.
When developing the MVCHP concept plans, the following factors were taken into consideration:
Ordinary Council Meeting - 20 April 2021 Page 161. Engagement outcomes:
In considering the possible options for future development of the respective holiday parks, a
series of surveys, telephone and drop-in discussion sessions were held to gain a better
understanding of local community and site user views. The consultation activities provided a
large volume of information relating to the holiday parks.
Based on these consultation activities a number of recommendations have been made for
the future development of the MVCHPs. In addition, a series of key themes and emerging
design directions have also been identified to assist in establishing long-term needs.
A full copy of the Engagement Report is attached to this report.
2. Current and forecast market:
The proposed accommodation development has taken into consideration the market trends
and demand for accommodation types and standards to be included in the MVCHPs.
The high-level analysis considered the current demand and occupancy for accommodation
service offerings at the MVCHPs whilst also forecasting demand for improved
accommodation service offering based on industry trends.
3. Financial considerations of proposed development:
The potential revenue increase based on the proposed additional accommodation
development has been modelled to understand the full financial impacts. Financial analysis
was undertaken over a 25-year period to align with the expected life of the proposed new
cabins (15 years for safari tents), with the impact analysed both in terms of actual
incremental cash flow, as well as from a Net Present Value (NPV) perspective. Conservative
assumptions were used so as to not overstate the potential financial benefits.
4. Economic contribution of the MVCHPs to the Shire.
Tourism is considered a major source of employment and income for the Shire's coastal
villages. This is important particularly because of the income multiplier effect. Tourism
creates job opportunities, not only in tourism, but also in other industries and areas of the
economy.
These opportunities arise from tourists’ spending money on non- tourism products /
services. Tourism spending results in a movement of money from one area to another and
the creation of jobs. Increasing tourism spend is seen as a strategy to foster economic
development and growth in regions.
It should be noted that prior to undertaking any of the accommodation developments, which are in
addition to existing stock, a business case would be developed to ensure the development achieves
an appropriate return on investment, meets environmental conditions/standards and is also subject
to available funding/budget allocation at that time.
The proposed accommodation developments for the three holiday parks based in the Shire’s less
developed villages of Grassy Head, Stuarts Point and Hat Head are provided as follows and are
considered to be consistent with the overall engagement outcomes for these parks whilst still
achieving an accommodation offering to meet industry standards and market expectations/demand.
The proposed developments for these holiday parks are also reflected in the attached Concept Plans
for each respective holiday park.
Grassy Head Holiday Park
Ordinary Council Meeting - 20 April 2021 Page 17Objective: Retain a simple and natural character to the area, being a major drawcard of the site
for many of its visitors with future development to be respectful of the area and to be well
integrated into the surrounding vegetation wherever possible. The low-key caravan and camping
character of the area is to be retained, whilst addressing the need for upgrades and
improvements to meet an evolving market, including for higher quality accommodation options
Short Term Beachside Precinct: Investigate options and improve drainage in camping
areas.
Medium Term Entry Precinct: Enlarge existing cabin precinct, replacing two cabins and
including up to five additional cabins within a consolidated area.
Long Term Beachside Precinct: Install up to four ‘safari tents’ to provide additional
accommodation.
Stuarts Point Holiday Park
Objective: Retain the riverside character to the area, being a major drawcard of the site for many
of its visitors. Future development to be aimed at increasing the quality of the facilities, in line
with the recent upgrades of the adjoining public foreshore reserve area. The low-key caravan and
camping character of the area is to be retained, whilst addressing the need for upgrades and
improvements to meet an evolving market, including for higher quality accommodation options.
Short Term Entry Precinct: Replace existing cabins with up to six small or studio
cabins to improve quality of existing cabin accommodation options.
Long Term Entry Precinct: Construct up to three new cabins at northern end of park
to improve interface with upgraded public foreshore area.
Hat Head Holiday Park
Objective: Retain the character of the area, including its laid-back nature and high level of
integration with natural surrounds, being a major drawcard of the site for many of its visitors.
Future development to be respectful of the area and to be well integrated into the topography
and vegetation wherever possible. Note: no significant development is planned on the northern
and eastern sections of the park to allow for future strategic foreshore master planning works.
Short Term Creekside Precinct: Make peak use camping area available all year round.
Medium Term Entry/Creekside South Precincts: Establish additional camping sites on
western boundary
Creekside East Precinct: Integrate up to 5 new cabins within existing
southern cabin precinct.
Given the proposed developments for the above three holiday parks are consistent with the
engagement outcomes, detailed financial modelling in relation to these parks was not considered
necessary. However, any increase in cabin stock at these holiday parks will be financially
advantageous.
The Horseshoe Bay and Crescent Head Holiday Parks are situated in villages which are substantially
more developed than Grassy Head, Stuarts Point, and Hat Head. The Horseshoe Bay and Crescent
Head Reserves have several existing commercial operations and developments in place and are
closely situated or adjacent to the main townships precincts which have busy and vibrant retail
stores, businesses, restaurants, cafes, takeaways and grocery outlets.
Ordinary Council Meeting - 20 April 2021 Page 18For these two holiday parks, the four criteria outlined above for assessing potential accommodation
developments (Engagement outcomes; Current and forecast demand; Financial impacts; and
Economic contribution) were not closely aligned and therefore, a weighted assessment was
undertaken to appropriately consider these differing criteria. In order to undertake the assessment
‘Harvey Balls’ (round ideograms used for visual communication of qualitative information) have been
used in the comparison tables to indicate the degree to which a particular item meets a particular
criterion.
The ‘Harvey Ball’ rating scale is as follows:
Horseshoe Bay Holiday Park
There are two contentious development areas within the Horseshoe Bay Holiday Park proposed
developments, being the:
Headland Cabin development; and
Back Creek Cabin development.
The below assessment shows that whilst the engagement outcomes indicate that these
developments are not highly favourable (Back Creek cabin development is more favourable than
Headland cabin development), that other decision criteria such as financial return and economic
contribution achieve a higher result then retaining the sites as ‘camping/caravanning’.
Horseshoe Bay Holiday Park
Criteria Headland Headland Back Creek Back Creek
Cabins camping Cabins Camping Sites
Engagement outcomes ◔ ◕ ◑ ◕
Current and forecast market
(supply and demand)
● ● ● ●
Financial considerations of
proposed development
● ◔ ● ◔
Economic contribution of ◕ ◑ ◕ ◑
the MVCHP to the Shire
The Engagement Report highlights that there was a very strong disagreement (193 respondents) to
having ‘coastal design’ cabins in the Headland precinct (average score 1.83). This view was generally
shared by local respondents with a slightly more agreeable, though still low average score of 1.99.
Financial analysis has been undertaken to ascertain the overall cost/benefit of installing up to five (5)
coastal cabins on the headland of the Horseshoe Bay Holiday Park. These cabins would replace seven
(7) current camping / caravan sites.
Ordinary Council Meeting - 20 April 2021 Page 19Modelled over the projected 25-year life of the cabins, it is forecast that investing $1.1M in cabin infrastructure would generate approximately $3.7M of additional cash flow over the period compared to the sites remaining as tourist camping / caravan sites. This represents $2.0M in net present value terms (NPV). These financial analysis outcomes are depicted as the base case in the chart below. Single point sensitivity analysis was also undertaken for a variety of key inputs / assumptions to estimate the potential impact on the overall financial result should these be more or less advantageous than what had been assumed in the base case financial model. These variables included downside risks such as lower occupancy rates, lower annual revenue per site and higher than forecast capital expenditure costs, as well as potential upside that could be achieved via an increase in Council’s revenue share from these sites. The above chart reflects the results of this sensitivity analysis with a low and high case outcome shown. At a minimum the investment in these cabins would still contribute an additional $3.1M of incremental cash flow (NPV of $1.6M). However, there is the potential for these cabins to generate as much as $5.6M of additional cash flow (NPV of $3.2M). The community is more split between having additional cabins at the southern end of the Creekside Precinct (average 2.45), with 58% of the respondents disagreeing or strongly disagreeing with this option compared with 36% either agreeing or strongly agreeing. At the local level, this split was more even, though still favouring retention of camping overall (average score of 2.59, with 56% disagree or strongly disagree and 41% agree or strongly agree). Financial analysis was undertaken to ascertain the overall cost/benefit of installing up to five (5) coastal cabins overlooking Back Creek in the Horseshoe Bay Holiday Park. These cabins would replace eight (8) current camping / caravan sites. Modelled over the projected 25-year life of the cabins, it is forecast that investing $1.1M in cabin infrastructure would generate approximately $3.5M of additional cash flow over the period compared to the sites remaining as tourist camping / caravan sites. This represents $1.9M in NPV terms. These financial analysis outcomes are depicted as the base case in the chart below. Ordinary Council Meeting - 20 April 2021 Page 20
Similar to the Horseshoe Bay Headland analysis detailed above, single point sensitivity analysis was
also undertaken to estimate the potential impact on the overall financial result for changes in the
same key assumptions and modelling inputs. The above chart reflects the results of this sensitivity
analysis with both a low and high case outcome shown. At a minimum the investment in these
cabins would be expected to contribute an additional $2.9M of incremental cash flow (NPV of
$1.5M), while there is the potential for these cabins to generate as much as $5.4M additional cash
flow (NPV of $3.1M).
Given the projected high returns indicated by the financial analysis above and the substantial Shire-
wide benefits that could be achieved from the additional generated revenue, it is recommended that
Council proceed with both the additional five cabins situated on the Headland and a further five
cabins situated on the southern end of Back Creek at Horseshoe Bay Holiday Park.
Therefore, the proposed accommodation development at Horseshoe Bay is recommended as
follows:
Horseshoe Bay Holiday Park
Short Term Replace existing cabins with tiny house style transportable cabins on
Ocean Drive entry.
Up to an additional four studio cabins (instead of ensuites) to be
incorporated into a new amenities building within the Livingstone
camping precinct.
Provide one additional cabin (on an existing camping tourist site) within
the already established cabin precinct.
Medium Term - Replace caravan/camping sites with up to five small cabins overlooking
Proposed Back Creek.
Replace caravan/camping sites with up to five high quality coastal styled
cabins on headland area.
Long Term Additional cabins to be incorporated within the reception
area/manager’s residence.
Ordinary Council Meeting - 20 April 2021 Page 21However, given the less favourable engagement outcome relating to the proposed Headland cabin
development, Council could resolve an alternate option for the proposed accommodation
development at Horseshoe Bay as follows:
Horseshoe Bay Holiday Park
Short Term Replace existing cabins with tiny house style transportable cabins on
Ocean Drive entry.
Up to an additional four studio cabins (instead of ensuites) to be
incorporated into a new amenities building within the Livingstone
camping precinct.
Provide one additional cabin (on an existing camping tourist site) within
the already established cabin precinct.
Medium Term - Replace caravan/camping sites with up to five small cabins overlooking
Alternate Back Creek.
Retain caravan/camping sites on headland area.
Long Term Additional cabins to be incorporated within the reception
area/manager’s residence.
Should the alternate option above be chosen, and the cabins not be installed on the Headland but
rather remain as caravan and camping sites, Council would be foregoing the significant financial
benefits that would otherwise be generated, as detailed above.
Crescent Head Holiday Park
Similar to Horseshoe Bay Holiday Park, there are two contentious development areas within the
Crescent Head Holiday Park relating to proposed accommodation developments, being the:
Oceanfront Cabin development; and
Killick Creek Glamping/Safari Tent development.
The below assessment shows that whilst the engagement outcomes indicate that these
developments are not highly favourable (Killick Creek Glamping Tent development is more
favourable than Oceanfront cabin development), that other decision criteria such as financial return
and economic contribution achieve a higher result then retaining the sites as ‘camping/caravanning’.
Crescent Head Holiday Park
Criteria Oceanfront Oceanfront Killick Creek Killick Ck
camping Glamping Camping Sites
Cabins
Tents
Engagement outcomes ◔ ◕ ◑ ◕
Current and forecast market
(supply and demand)
● ● ● ●
Financial considerations of
proposed development
● ◔ ● ◔
Economic contribution of
the MVCHP to the Shire
◕ ◑ ● ◑
Ordinary Council Meeting - 20 April 2021 Page 22For Crescent Head Holiday Park it is noted that within the Engagement Report, 130 responses (40% of the total) were received from the same internet protocol (IP) address, which has skewed results heavily in some areas and appears to have been undertaken by a single individual. Where this is the case, in this Council Report the 130 responses have been excluded, however the Engagement Report (attached) includes both with and without results from that IP address in order to provide full context. The Engagement Report highlights that there was moderate agreement to the installation of cabins to improve the interface between the Holiday Park and the adjoining public domain / car park area (average score 2.65) and to a slightly lesser extent again by respondents that identified as living locally (average score 2.62). Financial analysis has been undertaken to ascertain the overall cost/benefit of installing up to five (5) coastal cabins on the oceanfront of Crescent Head Holiday Park. These cabins would replace eight (8) current camping / caravan sites. Modelled over the projected 25-year life of the cabins, it is forecast that investing $1.1M in cabin infrastructure would generate approximately $3.8M of additional cash flow over the period compared to the sites remaining as tourist camping / caravan sites. This represents $2.0M in NPV terms. These financial analysis outcomes are depicted as the base case in the chart below. Similar to the Horseshoe Bay analysis detailed above, single point sensitivity analysis was also undertaken to estimate the potential impact on the overall financial result for changes in Crescent Head Oceanfront key assumptions and modelling inputs. The above chart reflects the results of this sensitivity analysis with both a low and high case outcome shown. At a minimum the investment in these cabins would be expected to contribute an additional $3.1M of incremental cash flow (NPV of $1.6M), while there is the potential for these cabins to generate as much as $5.7M additional cash flow (NPV of $3.2M). The Engagement Report also highlights that there is low-level support for well landscaped cabins or safari tents along the Killick Creek frontage (average score 2.61 and 2.74 from other local respondents). Ordinary Council Meeting - 20 April 2021 Page 23
Financial analysis has been undertaken to ascertain the overall cost/benefit of installing seven (7)
safari/glamping tents situated adjacent to Killick Creek at Crescent Head Holiday Park. These cabins
would replace nine (9) current camping / caravan sites.
Modelled over the projected 15-year life of the safari tents, it is forecast that investing $0.9M in
safari tent infrastructure would generate approximately $1.2M of additional cash flow over the 15-
year period compared to the sites remaining as tourist camping / caravan sites. This represents
$0.7M in NPV terms. These financial analysis outcomes are depicted as the base case in the chart
below.
Single point sensitivity analysis was also undertaken to estimate the potential impact on the overall
financial result for changes in key assumptions and modelling inputs relating to the proposed
Crescent Head Killick Creek Safari Tents. The above chart reflects the results of this sensitivity
analysis. At a minimum the investment in these safari tents would be expected to contribute an
additional $0.9M of incremental cash flow (NPV of $0.5M), while there is the potential for these
sites to generate as much as $2.0M additional cash flow (NPV of $1.3M).
Consistent with the recommendations relating to the Horseshoe Bay Holiday Park, and given the
high returns indicated by the financial analysis above and the Shire-wide benefits that could be
achieved from the additional generated revenue, it is recommended that Council proceed with the
both the additional five cabins situated on the Oceanfront and the seven safari/glamping tents
situated adjacent to Killick Creek at Crescent Head Holiday Park.
Therefore, the proposed accommodation development at Crescent Head Holiday Park is
recommended as follows:
Crescent Head Holiday Park
Short Term Renew existing cabins along entry road, with option to convert some to
studio style/duplex cabins.
Replace existing cabins and convert existing short-term tourist sites to
safari/glamping tents to provide additional accommodation option (up to
ten tents)
Replace existing powered tourist sites and amenities building with studio
style/duplex cabins (up to six units)
Ordinary Council Meeting - 20 April 2021 Page 24Medium Term - Refurbish and realign three large cabins and remove three small existing
Proposed older style cabins and provide up to four new cabins to match the
adjoining new cabins
Reconfigure the sites to provide up to five high quality coastal styled
cabins to improve interface between public domain and the holiday park
Long Term Provide en-suite facilities to tourist sites to enable an additional
accommodation option within the holiday park.
However, given the less favourable engagement outcome relating to the proposed Oceanfront cabin
development by residents, Council could resolve an alternate option for the proposed
accommodation development at Crescent Head as follows:
Crescent Head Holiday Park
Short Term Renew existing cabins along entry road, with option to convert some to
studio style/duplex cabins.
Replace existing cabins and convert existing short-term tourist sites to
safari/glamping tents to provide additional accommodation option (up to
ten tents)
Replace existing powered tourist sites and amenities building with studio
style/duplex cabins (up to six units)
Medium Term - Refurbish and realign three large cabins and remove three small existing
Alternate older style cabins and provide up to four new cabins to match the
adjoining new cabins
Reconfigure area to provide short-term tourist sites and associated
landscaping to improve interface between public domain and the holiday
park
Long Term Provide en-suite facilities to tourist sites to enable an additional
accommodation option within the holiday park.
Should the alternate option above be chosen, and the cabins not be installed on the Oceanfront sites
but rather remain as caravan and camping sites, Council would be foregoing the significant financial
benefits that would otherwise be generated, as detailed above.
3. Communal Park Infrastructure
The Engagement Report (attached) clearly identifies that further upgrade to communal
infrastructure is required throughout all five MVCHPs in order to meet industry standards and visitor
expectations. The general sentiment was that integrating additional facilities within the Holiday Park
to include higher quality holiday park ‘basics’, such as provision of new or upgraded amenities and
camp kitchens would be highly desirable.
The concept plans for each MVCHPs include upgraded communal infrastructure as follows:
Holiday Park Engagement Report Recommendation relating to improvement in
Recommendation communal facilities
Grassy Head Holiday Medium term Beachside precinct: Install new camp kitchen
Park and basic play facilities within consolidated
communal areas
Long Term Entry Precinct: Improve existing manager’s
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