Minutes of Ordinary Meeting of Airport Advisory Committee

Minutes of the Airport Advisory Committee held on Wednesday 4 October 2017.

Present

Councillor Dan Hayes Wagga Wagga City Council

Councillor Kerry Pascoe Wagga Wagga City Council

Elton Passini Qantaslink

Warrick Lodge Regional Express

Anabel Williams Wagga Wagga Business Chamber

Catherine Wallis Department of Defence - RAAF

Geoff Breust Aviation Industry Participant

Mark Wallace Aviation Industry Participant

In Attendance

James Bolton Wagga Wagga City Council

Leon Burger Wagga Wagga City Council

Darryl Woods Wagga Wagga City Council

Maree Ingram Wagga Wagga City Council

Acknowledgement Of Country

I would like to acknowledge the Wiradjuri people who are the Traditional Custodians of this Land. I would also like to pay respect to the Elders both past and present of the Wiradjuri Nation and extend that respect to other Community members present.

APOLOGIES

Chris Cabot Aviation Industry Participant

Caroline Angel Wagga Wagga City Council

INDUCTION OF NEW COMMITTEE MEMBERS

Governance officer, Nicole Johnson undertook a short induction of new committee members.

Declarations Of Interest

No Declarations of Interest received.

Reports from Staff

RP-1 ELECT A CHAIRPERSON AND DEPUTY CHAIRPERSON

Recommendation:

On the Motion of Councillor K Pascoe and Councillor D Hayes

That the Committee elect a Chairperson and Deputy Chairperson.

CARRIED

Election of Chairperson

Councillor D Hayes nominated Councillor K Pascoe for the position of Chairperson of the Airport Advisory Committee.

Councillor K Pascoe accepted the nomination.

With no other nominations received, Councillor K Pascoe was appointed Chairperson of the Airport Advisory Committee.

Election of Deputy Chairperson

Councillor K Pascoe nominated Councillor D Hayes for the position Deputy Chairperson of the Airport Advisory Committee.

Councillor D Hayes accepted the nomination.

With no other nominations received, Councillor D Hayes was appointed Deputy Chairperson of the Airport Advisory Committee.

RP-2 TERMS OF REFERENCE AND DETERMINATION OF MEETING SCHEDULE

Recommendation:

On the Motion of Councillor K Pascoe and Councillor D Hayes

That the Committee:

a endorse the Airport Advisory Committee Terms of Reference subject to amendments provided in the meeting and confirmation by Committee members out of session prior to distribution to Council for adoption

b provide in writing any agenda items for consideration at the next meeting to the Committee Secretary two weeks prior to the scheduled meeting, following a call for agenda items

c receive business papers one week prior to the meeting

d initially endorse a quarterly meeting schedule with a review of the schedule to be undertaken following the first 12 months

CARRIED

PRESENTATION TO COMMITTEE

A presentation on airport performance and proposed developments was made to the Committee by Council staff in conjunction with an update on Department of Defence activities by Group Captain Catherine Wallis.

QUESTIONS/BUSINESS WITH NOTICE

1. Clarification as to how the Conflict of Interest provisions will work in practice – if one takes the provisions literally, none of the industry representatives would be without a conflict of interest.

Conflicts of Issues were addressed as part of the induction process undertaken by Governance at the commencement of the meeting and was further discussed during the meeting. The proposed Terms of Reference amendments also reflect the discussion.

2. Clarification with respect to the Airport being a Council Business Operation – under what legislative or other provision this determination has been made and by whom – and clarification as to the treatment of depreciation in the Airport Accounts – the authority for determination of asset depreciation – whether it is covered by some State Government legislative or policy directive or whether such arrangements are determined by Council as a policy.

Responses provided to meeting - Council originally declared the Airport a category 2 business (less than $2m operating revenue turnover) in 1998/99 as a result of the release of the OLG’s “Pricing & Costing for Council Businesses – A Guide to Competitive Neutrality”. These guidelines outline the process for identifying Council business activities and the reporting requirements associated with them. Some of the identifying criteria include:

• Is the activity intended to make a profit?

• Is the activity provided on a fee for service basis?

• What economic impact does the activity have?

• Nature of activity and importance to customers.

In 2011/12, the Airport was moved from a category 2 business to category 1 business (greater than $2m gross operating revenue turnover) and has since been reported this way within the Special Purpose Financial Statements prepared by the Council and independently audited. Council’s Policy POL 013 Return on Investment Council Businesses, which was first adopted by Council in 2015, outlines the Wagga Wagga Airport as a business activity.

In regards to the depreciation point of Question 2, Council is the authority to determine depreciation in accordance with Accounting Standards and OLG reporting requirements. The valuation components of an asset are formed as part of the annual financial statements and are audited by Council’s independent external auditor and eventually adopted by Council each year. The movement in depreciation from 2015/16 ($891K) to 2016/17 ($2,783K) is due to the revaluation of the Airport assets undertaken in 2015/16, in particular the runways and taxiways valuation movements.

3. The Airport Advisory Committee noted significant concerns with previous land development in the vicinity of the Airport. The Committee requested that Council take appropriate action to minimise the impact of existing development and consider limiting any future development.

THIS COMPLETED THE BUSINESS OF THE MEETING WHICH ROSE AT 8.00pm.