Agenda of Council - 10 December 2014

Council

10 December 2014

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Open Spaces Strategy

Record No: R/14/11/17827

Author: Henrietta McNeill, Policy Analyst

Approved by: Janet Ellis, Human Resources Manager

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 To deliberate on the feedback from the draft Open Spaces Strategy and request that Council adopt the Strategy and associated action plan.

Executive Summary

2 The draft Open Spaces Strategy was open for public feedback from 1 August -
12 September 2014. A total of 36 people or organisations shared their views as part of the feedback process, regarding 26 different issues. Feedback was in general very positive about Council’s open spaces and the document itself.

Recommendation

That the Council:

a) Receives the report titled “Open Spaces Strategy” dated 10 December 2014.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

c) Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

d) Approves the changes detailed in the Appendix.

e) Adopts the Open Spaces Strategy.

f) Adopts the Open Spaces Action Plan.

Content

Background

3 The Open Spaces Strategy sets out a strategic direction to guide the provision of and planning for, and the consistent management and maintenance of reserves and open spaces within Southland District, to meet current and future needs. It focuses on the public open space network that is owned and or managed by Southland District Council for recreation or protection.

4 The Open Spaces Strategy will guide and inform policy and planning, inform the Council’s Long Term Plan, the Parks Asset Management Plan and Reserve Management Plans to ensure quality open spaces within our District.

5 The draft Open Spaces Strategy was open for public feedback from 1 August -
12 September 2014. With 36 feedback comments, the strategy received a good level of engagement from the community, and has generated several staff comments for changes within the strategy.

Issues

6 To what extent should Council be incorporating the comments from the public regarding the Open Spaces Strategy, in the final adoption of the strategy and associated action plan.

Factors to Consider

Legal and Statutory Requirements

7 This Strategy sets a direction for Council within the context of applicable legislation, including the Reserves Act 1977, the Local Government Act 2002, and the Resource Management Act 1991. It will also work in cooperation with the District Plan, which is bound by the Resource Management Act 1991.

Community Views

8 A total of 35 people or organisations shared their views as part of the feedback process, regarding 26 different issues. Feedback was in general very positive about Council’s open spaces and the document itself.

9 There was significant interest in including availability for community orchards and heritage fruit trees in Council’s open spaces (21 comments), while other common themes included family use of open spaces, community involvement, photos and cycle parks (three comments per issue), smokefree open spaces, pest plant management, maintenance and small-scale commercial use (such as mobile food areas and farmers’ markets) (two comments per issue).

10 Feedback from elected members as part of their minutes during the feedback period indicated that it was a good summation (Edendale-Wyndham Community Board).

Costs and Funding

11 All outcomes and principles of the Strategy would be introduced through the plans guided by the Strategy; therefore, financial considerations will be acknowledged in those plans.

Policy Implications

12 There are two parts to the document: the first section is the Strategy itself which has a 10 year timeframe and a five year review (Appendix 1). The overarching Strategy will guide many management plans within the organisation, particularly the Reserve Management Plans and Reserves and Parks Asset Management Plans. The vision, principles and outcomes will guide individual points within these plans. These plans are then reflected in the Long Term Plan.

13 The action plan is a living document, which can be updated more often to support technical action points. The action plan will remain as an internal document, and was not released for public feedback.

Recommended Amendments

14 The staff recommendations as proposed amendments to the Open Spaces Strategy are set out in Attachment A. There have been no proposed amendments to the action plan.

15 Council received 36 feedback comments. The proposed recommendations from staff have been made based on this public feedback and have attempted to include suggestions from all engaged participants in the feedback process.

16 There were several feedback comments that proposed new ideas, and brought local issues up. For specific local issues, these will be referred to the relevant Reserve Management Plan when they are reviewed.

Analysis

Analysis of Preferred Option

Analysis of Options

Option 1 - Adopt Open Spaces Strategy and associated action plan with proposed changes

Advantages

Disadvantages

· Takes into account community views.

· Utilises new ideas and incorporates the priorities of the community.

· Provides agency and empowerment for those who have submitted, and could further engagement in the long term.

· Any errors are fixed.

· New uses of Council’s open spaces, such as farmer markets, community orchards are included from the community comments, and should be discussed by Council.

Option 2 - Adopt Open Spaces Strategy and associated action plan without proposed changes

Advantages

Disadvantages

· The graphics and strategy are all completed.

· The community’s views are not taken into consideration.

· No errors are fixed.

Option 3 - No adoption of the Open Spaces Strategy

Advantages	Disadvantages
· None.	· There would be no overarching strategy for open spaces that is guided by Council; therefore, there would be no one direction for Council’s open spaces.

Assessment of Significance

17 The decision before Council is not considered significant under Council’s significance and engagement policy. Despite this, Council chose to consult with the public and targeted stakeholders.

Recommended Option

18 Option 1 - Amend and adopt the Open Spaces Strategy and associated action plan.

Next Steps

19 If Council decides to adopt the Open Spaces Strategy and associated action plan, these documents will go on Council’s website and the Property Department will start to implement the action plan.

Attachments

a Proposed Amendments to the Open Spaces Strategy View

b Draft Open Spaces Strategy for Feedback View

c Draft Open Spaces Action Plan View

d Open Spaces Strategy Feedback Document View

e Judy Brown - Photos from Facebook View

f Additional Photos from Judy Brown to accompany feedback View

Council

10 December 2014

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Te Ao Mārama Incorporated as a collaborator on the Long Term Plan 2015-2025 process

Record No: R/14/11/17903

Author: Shannon Oliver, Planning and Reporting Analyst

Approved by: Janet Ellis, Human Resources Manager

☒ Decision ☐ Recommendation ☐ Information

Purpose

That Te Ao Mārama Incorporated be approved as a collaborator on the Long Term Plan 2015-2025.

Executive Summary

To help promote and develop its relationship with Māori, the Southland District Council is an active participant and signatory to the Charter of Understanding ‘He Huarahi mō Ngā Uri Whakatapu (A Pathway for the Generations Coming Through)’ between the six councils and Te Ao Mārama Incorporated.

During the Southland District Council Long Term Plan 2012 - 2022 submission process,
Te Ao Mārama Incorporated submitted that:

“It would be desirable for Te Ao Mārama Incorporated to be collaborators rather than submitters to the Council’s Long Term and Annual Plan process.”

Consequently, the council resolved on 23 January 2013 and 11 December 2013 that Te Ao Marama would be invited to be involved as a collaborator for the Annual Plan 2013/2014 and Annual plan 2014 which they accepted.

A resolution is required to continue this practice for the Long Term Plan process 2015-2025.

Recommendation

That the Council:

a) Receives the report titled “Te Ao Mārama Incorporated as a collaborator on the Long Term Plan 2015-2025 process” dated 10 December 2014.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

c) Determines that it has complied with the decision making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

d) Approves Te Ao Mārama Incorporated as a collaborator at Council meetings to discuss the Long Term Plan 2015-2025 process.

Content

Background

1 The Southland District Council acknowledges the importance of tikanga Māori and values its relationship with both Ngāi Tahu (through the four Southland papatipu rūnanga) and ngā matawaka (other Māori who are not Ngāi Tahu) living within Murihiku/Southland.

2 To help promote and develop its relationship with Māori, the Southland District Council is an active participant and signatory to the Charter of Understanding ‘He Huarahi mō Ngā Uri Whakatapu (A Pathway for the Generations Coming Through)’ between the six councils and Te Ao Mārama Incorporated.

3 The five other member councils in the Otago/Southland area are:

• Environment Southland,

• Invercargill City Council,

• Gore District Council,

• Queenstown Lakes District Council,

• Clutha District Council (who signed up in November 2012).

4 The Charter was revised in 2003 to incorporate the councils’ responsibilities under the
Local Government Act 2002, and underpins all dealings between the councils and Te Ao Mārama.

5 The Charter of Understanding provides:

• The basis for an ongoing relationship between the six councils and the tāngata whenua of Murihiku to assist in developing the capacity of Māori to contribute to decision-making processes.

• A foundation for consultation on a wide range of local government issues.

• For the recognition and willingness of Te Ao Mārama to assist all councils in consultation with all ngā matawaka living in Murihiku.

6 Te Roopū Taiao is the collaborative structure put in place for the purposes of giving effect to the Charter of Understanding and the obligations of the parties to the Charter.
Senior Councillors and Council staff involved in resource management regularly attend
Te Roopū Taiao meetings. Te Roopū Taiao has recently been extended to include ngā matawaka (other Māori who are not Ngāi Tahu) representatives.

7 During the Southland District Council Long Term Plan 2012 - 2022 submission process,
Te Ao Mārama Incorporated submitted that:

“It would be desirable for Te Ao Mārama Incorporated to be collaborators rather than submitters to the Council’s Long Term and Annual Plan process.”

8 Consequently, the council resolved on 23 January 2013 and 11 December 2013 and that Te Ao Marama would be invited to be involved as a collaborator for the Annual Plan 2013/2014 and Annual plan 2014 which they accepted.

9 The key dates that Te Ao Mārama wish to be involved in the Long Term Plan 2015-2025 are:

(a) February 2014 - Council workshop where it is anticipated discussions will be held with Council on the draft Annual Plan (note that Te Ao Mārama would be participating in the discussion but would not have “voting” rights).

(b) 18 March 2014 - Council meeting to consider and adopt the consultation document (note that Te Ao Mārama would be participating in the discussion but would not have “voting” rights).

(c) 20-23 May 2014 - Council to hear and consider submissions to the draft Long Term Plan (note that Te Ao Mārama would be participating in the discussion but would not have “voting” rights).

Factors to Consider

Legal and Statutory Requirements

10 It is a legal requirement under the Local Government Act for Council to recognise the principles of the Treaty of Waitangi and involve and provide opportunities for Māori to contribute to its decision-making processes.

Community Views

11 The involvement of Te Ao Marama as a collaborator would be appropriate for the following reasons:

• It acknowledges the status of Te Ao Mārama under the Treaty of Waitangi.

• It gives effect to the statutory provisions, in the Local Government Act and other legislation, to involve Māori in Council’s decision-making process.

12 This decision does not preclude other interested parties from participating and submitting in the Long Term Plan in the usual way.

Costs and Funding

13 There are no financial considerations which impact on the report.

Policy Implications

14 Inviting Te Ao Mārama to participate as a collaborator in the Long Term Plan
2015-2025 (as per the process last year with the 2014/2015 Annual Plan process) requires a resolution to be passed to allow their involvement in the Long Term Plan process 2015-2025.

Analysis

Options Considered

15 Option 1 - Approve Te Ao Mārama’s involvement.

16 Option 2 - Do not approve Te Ao Mārama’s involvement.

Analysis of Preferred Option

Analysis of Options

Option 1

Advantages

Disadvantages

Give better effect to the principles of the Treaty of Waitangi.

Give better effect to the Council’s partnership with Ngāi Tahu by treating them as a partner rather than a stakeholder.

Allow earlier identification of issues relevant to iwi, and if any of these have budgetary implications for them to be factored in.

Potentially negate the requirement for
Te Ao Mārama to be a submitter later in the consultation process and more appropriately recognise the partnership between the tangata whenua and the participant councils.

17 The Long Term Plan and consultation document are key strategic planning documents for Council and the benefit of having Te Ao Mārama involved is that any issues of cultural significance to iwi are addressed during the development of the plan.

No voting rights as they are not elected members so are in an advisory role only.

Option 2

Advantages

Disadvantages

There are no advantages to this option.

Will not give better effect to the principles of the Treaty of Waitangi.

Will not give better effect to the Council’s partnership with Ngāi Tahu by treating them as a partner rather than a stakeholder.

Will not allow for earlier identification of issues relevant to Iwi, and if any of these have budgetary implications for them to be factored in.

Will not allow to potentially negate the requirement for Te Ao Mārama to be a submitter later in the consultation process and more appropriately recognise the partnership between the tangata whenua and the participant councils.

Assessment of Significance

The decision before Council is not significant under Council’s significance and engagement policy.

Recommended Option

It is recommended that Council adopt Option 1.

Next Steps

18 If Council agree to include Te Ao Marama as a collaborator, staff will inform Te Ao Mārama that it is formally invited to participate in a collaborative partnership with Council on the Long Term Plan 2015-2025 process.

Attachments

There are no attachments for this report.

Council

10 December 2014

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Draft Kerbside Recycling and Rubbish Collection Policy

Record No: R/14/11/17987

Author: Ian Evans, Strategic Manager Water and Waste

Approved by: Ian Marshall, GM - Services and Assets

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 Implementation of a policy to help manage contamination rates in kerbside collections across the District.

Executive Summary

2 Appended to this report is a proposed regional policy developed by WasteNet Southland to help manage contamination rates in recycling bins. The proposed policy will provide an enforcement tool that will assist the WasteNet councils to actively reduce the contamination levels in kerbside recycling bins. The proposed policy was adopted by the Waste Advisory Group at its meeting on 27 November and now passes back to the three individual councils for endorsement. Included as an attachment to this report is the report presented to the Waste Advisory Group (which includes the draft policy as well as a number of legal opinions sought prior to the development of the policy).

Recommendation

That the Council:

a) Receives the report titled “Draft Kerbside Recycling and Rubbish Collection Policy” dated 10 December 2014.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Adopts the Waste Advisory Group recommendation to implement the Draft Kerbside Recycling and Rubbish Collection Policy as an operational activity outside the Solid Waste Bylaw.

Content

Background

3 In 2013 Southland disAbility Enterprises advised the Committee of concerns regarding the increasing level of rubbish in the Council’s kerbside yellow recycling bins.

4 In the three years the collection service has been operating the level of contamination
(non-approved materials) in the yellow recycling bins has increased from 4% to 16%. To date this has resulted in an additional annual cost to the WasteNet councils in the order of $150K (of which $57K is Southland District Council’s share). Conservative projections indicate that this is likely to increase to up to 32% by year eight of the contract with associated disposal costs estimated at $265K as illustrated below.

5 Contamination in the yellow recycling stream is undesirable as it means increased operational costs as well as unnecessary and extra work for all parties. It also increases the health and safety risks for Southland disAbility Enterprises employees as they are not equipped to handle significant volumes of rubbish. It is not uncommon for rotting meat, garden waste, clothing, nappies, syringes and animal carcasses to be found in the recycling.

6 The Waste Management Group presented a business case on how to reduce the contamination levels in the recycling bins to the Committee at its June 2014 meeting. A workshop was held July 2014 to discuss the options identified in the report.

7 At the September 2014 meeting of the Committee, it was resolved that a ‘three-strike’ enforcement policy be drafted and presented to the next Committee meeting. This policy was discussed at the Waste Advisory Group meeting on 27 November 2014 where it was resolved to implement the policy subject to endorsement by the three individual councils. A copy of the paper to the Waste Advisory Group is included as attachment A. It should be noted that the recommendation in the attached report was amended at the meeting with the revised recommendation presented in attachment B.

Issues

8 The main issues that the report seeks to address are increasing contamination rates and the financial implications associated as well as the health and safety conditions faced by staff at Southland disAbility Enterprises as outlined in the previous section.

Factors to Consider

Legal and Statutory Requirements

9 Legal opinions sought during the development of the policy are included as Appendix A and B in the attached report to the Waste Advisory Group (Attachment A).

Community Views

10 The kerbside recycling service was introduced in 2011 following significant community consultation through previous Annual and Long Term Plans. Since then there has been continual educational measures undertaken to help people understand the service. While this has been successful to a degree the enforcement role is seen as being very much a complementary role to the educational side. An education/enforcement officer will be appointed by WasteNet to undertake duties in relation to implementing the policy.

Costs and Funding

11 The enforcement officer role will be funded from WasteNet reserves for the first year with funding being sourced from an increase in the landfill gate fee in subsequent years. There is no direct additional cost to Council from introducing this role.

Policy Implications

12 The proposed options take into consideration the Council’s Long Term Plan and Annual Plan by providing kerbside rubbish and recycling services to Southland communities. The introduction of the policy sits alongside the education activity provided by WasteNet Southland and will allow staff to better manage issues of contamination of recyclable material with consequent financial and environmental benefits.

Analysis

Options Considered

13 Basically two options were considered these being:

Option 1 - Status Quo

This is not considered a long term viable option by the Waste Advisory Group.

Option 2 - Introduction of Policy

The preferred option recommends the implementation of the Recycling and Rubbish Collection Policy and funding of an education/enforcement officer to undertake duties in relation to management of contamination rates. The introduction of such a policy is a relatively common occurrence that councils take to managing issues related to contaminated recycling, with all councils contacted during its development reporting significant reduction in contamination.

The following graph highlights the predicted different outcomes of the two options:

Analysis of Preferred Option

Analysis of Options

Option 1

Advantages

Disadvantages

· Improved quality of recyclables may provide better financial return in the longer term.

· Financial savings from reduced disposal costs of contaminated recyclables.

· Improved working environment for Southland disAbility Enterprises staff.

· Potential to build on the educational component around waste minimisation.

· Indirect financial impact through raising of the landfill gate fee to fund the new role.

Assessment of Significance

14 Upon assessing the proposed recommendation against the Council’s Significance and Engagement Policy, Water and Waste Services believes that the recommendation does not constitute a significant decision.

15 This is based on the recommendation not having an impact on the Council’s direction and level of service and the cost being less than 10% of annual expenditure.

Recommended Option

16 The report recommends that Council endorses the Waste Advisory Group recommendation to proceed with the introduction of the Kerbside Recycling and Rubbish Collection Policy and that staff work towards its implementation as per the timeline outlined in the Waste Advisory Group report.

Next Steps

17 It is anticipated that if the recommendation is endorsed that the policy will be implemented in full from April 2015 with a detailed educational and communication plan starting in January 2015.

Attachments

a WasteNet Draft Kerbside Recycling and Rubbish Policy View

b WasteNet Confirmation of Resolutions on Draft Kerbside Collection Policy View

Council

10 December 2014

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Venture Southland Letter of Expectation 2015/2016

Record No: R/14/11/18210

Author: Susan Cuthbert, Strategy and Policy Manager

Approved by: Janet Ellis, Human Resources Manager

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 The purpose of this report is to ask Council to review the draft Venture Southland Letter of Expectation for 2015/16 and request approval.

Executive Summary

2 The new Venture Southland Agreement 2014-2017, which took effect from 1 July 2014, sets out new planning provisions. As part of the planning process, the funding councils may provide a Letter of Expectation to Venture Southland early in the planning process to set out the councils’ expectations in terms of being ‘owners’ of Venture Southland as well as purchasers of economic development services.

3 A draft Letter of Expectation is attached for Council’s review and approval.

Recommendation

That the Council:

a) Receives the report titled “Venture Southland Letter of Expectation 2015/2016” dated 10 December 2014.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Approves the Venture Southland Letter of Expectation 2015/2016.

Content

Background

4 Venture Southland delivers economic development services to the Southland communities on behalf of Invercargill City Council, Gore District Council and Southland District Council (the councils). It is structured as a joint committee of councils which means, that while Venture Southland has its own governance board (the Joint Committee), it also forms part of each of the councils and is not a separate legal entity.

5 The new Venture Southland Agreement 2014-2017, which took effect from 1 July 2014, sets out new planning provisions in Clause 8.1. As part of the planning process, the councils may provide a Letter of Expectation to Venture Southland early in the planning process to set out the councils’ expectations in terms of being ‘owners’ of Venture Southland as well as purchasers of economic development services. It also provides for a set of high level outcomes which Venture Southland will report against in its Annual Report.

6 The councils agreed to develop a joint Letter of Expectation. A draft Letter of Expectation is attached for Council’s review and approval.

7 A draft of the Letter of Expectation was sent to the Chairs of both the Venture Southland Joint Committee and Advisory Subcommittee in October 2014 for their feedback and a series of joint Council workshops were held to discuss details of the agreement. Selected councillor representatives from each Council attended these workshops.

8 As a result of the workshops, some amendments have been made to the agreement including setting the amount of cash reserves at “around $500,000”. All parties agreed that Venture should not be making surpluses or significant deficits each year unless there is good reason to do so. In the event that retained earnings are considered to be excessive then either additional activities may be undertaken (as occurred with the Youth Futures Project), or the funding councils could withhold a portion of funding for that year.

9 Note: Venture Southland’s reserves are included on each Council’s consolidated balance sheet in their annual reports.

10 Venture Southland is in the process of developing a draft business plan which Council will be asked to review and provide feedback on in January 2015. Venture Southland’s 2015 budgets are being prepared along similar lines to previous years.

11 It is important to note that Venture Southland’s 2015 business plan will be developed without guidance from a Regional Development Strategy. The development of a Regional Development Strategy should get underway in 2015.

Factors to Consider

Legal and Statutory Requirements

12 Venture Southland is a joint committee of councils and therefore is not a separate legal entity. It exists as part of each Council and staff are employed by either Invercargill City Council or Southland District Council. The councils have chosen to set out how Venture Southland will operate via the Venture Southland Agreement 2014-2017. This Agreement sets out the provisions around planning and reporting. The Letter of Expectation is a part of that process.

Community Views

13 The priority projects listed in the Letter of Expectation have been developed by the elected members using their experience of working with their communities. The public will have an opportunity to comment on Venture Southland’s draft Business Plan in early 2015 via Venture Southland public consultation process.

Costs and Funding

14 In 2014 Venture Southland received a total of around $4 million from Invercargill City Council, Southland District Council and Gore District Council. Venture Southland has provided comment that the priority projects set out in the draft Letter of Expectations could be delivered within a similar budget range.

Policy Implications

15 Venture Southland delivers economic development services which contribute to the delivery of Southland District Council’s Community Development activity (previously known as District Development Services). A Community Development Activity Profile is in the process of being developed and will be presented to Council in early 2015 as part of the 2015-2025 Long Term Plan process.

Analysis

Options Considered

16 The options are:

(a) Approve the Venture Southland Letter of Expectation, with or without changes.

(b) Not approve the Venture Southland Letter of Expectation.

Analysis of Preferred Option

Analysis of Options

1. Option 1 Approve the Venture Southland Letter of Expectation, with or without changes.

Advantages	Disadvantages
· This letter provides Venture Southland with clear expectations around governance standards and priority projects. This ensures clear standards for accountability and assist Venture Southland to tailor its work programme towards what elected members consider are the priorities for the District.	· Specifying specific priorities could be seen as limiting Venture Southland’s ability to be responsive to market conditions in developing its work programme.

2. Option 2 Not approve the Venture Southland Letter of Expectation.

Advantages	Disadvantages
· It could provide greater flexibility to Venture Southland around the services it delivers.	· The services that Venture Southland deliver may not meet the needs of the funders.

Assessment of Significance

17 In accordance with Council’s significance and engagement policy, the decision before Council is not considered significant. Venture Southland has been delivering economic development services to Southland District Council since it was first formed as a joint committee in 2001. The community’s views were sought at the time of formation and during the 2012 Long Term Plan process when Council proposed making Venture Southland a Council Controlled Organisation. The Letter of Expectation draws upon the submissions made at that time and in response, sets standard governance and accountability requirements as well as some priorities for the region around economic and community development activities. The decision before Council involves a reasonable level of significance as Venture Southland’s work impacts across the District. The views of the Southland District communities have been taken into account when considering this issue via the elected members’ involvement in the development of the draft Letter of Expectation.

Recommended Option

18 Approve the Venture Southland Letter of Expectation.

Next Steps

19 Venture Southland is currently developing its draft business plan which will be presented to Council at its meeting on 28 January 2015.

Attachments

a Draft Letter of Expectation View

Council

10 December 2014

When replying please quote: 140/20/4/3

27 November 2014

Trevor Johnston

Chairman

Venture Southland Joint Committee

tjohnston@xtra.co.nz

Copy to:

Wayne Harpur

Chairman

Venture Southland Advisory Subcommittee

wayne@rayners.co.nz

Dear Trevor

Letter of Expectation 2015/16

Venture Southland is a joint committee of Southland District Council, Invercargill City Council and Gore District Council (the Councils). This letter details the expectations of
Venture Southland as determined by the Councils and is intended to assist Venture Southland in the development of its next Business Plan for 2015/16.

This letter is set out in two parts to reflect the expectations that the Councils have as:

1. owners of Venture Southland; and

2. as purchasers of services.

Owner Expectations

The Venture Southland Agreement 2014 - 2017 (the Agreement) sets out the arrangements between the Councils as owners of Venture Southland. It is expected that Venture Southland will operate in accordance with this Agreement unless otherwise agreed by the Councils.

It is important to note the new planning and reporting provisions set out in Clause 8.
Clause 8 sets out requirements around planning and accounting for work at a project level. The Councils acknowledge that Venture Southland has been through a process of improving its financial management processes over the last 12 months which allows for greater transparency around the costs and benefits of the projects it undertakes. The Councils are pleased with the changes made to date and acknowledge that this is an area undergoing continuous improvement.

The Agreement (in Clause 8.1) provides that all cash reserves (including surpluses and trading profits) are to be returned to the Councils on a pro rata basis at the end of the financial year unless approved by the Councils. The Councils approve the establishment of reserves up to around $500,000 for the purpose of facilitating Venture Southland’s day-to-day business operations and smoothing funding levels where new priorities may be identified.

As a general principle, it is expected that Venture Southland should not be making surpluses or significant deficits each year without good reason. In the event Venture Southland does makes a surplus that is considered excessive, the situation will be reviewed by the Councils as part of the annual planning process. The Councils may approve Venture Southland using the funds to undertake additional activities or they may choose to withhold a portion of funding for that specific year.

Currently the requirement under the Agreement is that Venture Southland will produce a Business Plan on an annual basis. It is expected that in future years Venture Southland will move to a longer term planning approach which should be in place for Councils’ next Long Term Plan in 2018.

Following completion of the Regional Development Strategy for Southland next year, the Councils propose undertaking a review of Venture Southland’s role to assess how it can best contribute to the region in the future in light of the directions signalled through the strategy.

No surprises

It is expected that Venture Southland will operate on a “no surprises” basis. No surprises means that the Councils expect Venture Southland to:

• Be aware of any possible implications of its decisions and actions on the Councils;

• Advise the Councils of issues that may be discussed in the public arena or that may require a Council response, preferably ahead of time or otherwise as soon as possible; and

• Inform the Councils in advance of any major strategic initiative or project that has a forecast value of more than $1.5 million unless there is a good commercial reason for a level of confidentiality to be maintained.

Effective Governance

The Joint Committee carries responsibility for the management, performance and future development of Venture Southland. Venture Southland is entrusted with the use of public funds to support its activities. The Councils expect the Joint Committee to maintain the highest standards of corporate governance at all times. This includes ensuring:

• Compliance with all legislative requirements.

• That it appropriately directs and holds accountable the Venture Southland Chief Executive.

• That the organisation has sound business planning and reporting processes so that it can provide high quality information and analysis to the Councils on its performance.

• That the organisation adopts sound financial and risk management processes which are in keeping with good practice for an organisation of its size.

• That the organisation has appropriate processes for communicating with its stakeholders including ensuring that it has a constructive working relationship with the Chief Executive and other relevant staff within each Council.

• That the Committee has processes for monitoring its own performance and managing any conflicts of interest of its individual members.

Contribution to Outcomes

Venture Southland is expected to deliver outputs which contribute to improving outcomes which are valuable to the Southland region and enhance the prosperity and quality of life of its communities. To demonstrate that contribution, Venture Southland is expected to monitor and set targets for the advancement of the following high level outcome measures detailed below.

Venture Southland should report on these outcome measures in its business plan:

• A net increase in the number of new businesses (new business minus businesses closed);

• Increase in regional Gross Domestic Product;

• Increase in population;

• Job opportunities for all reflected in unemployment below x%;

• Increase in household income;

• An increase in the number of visitor nights;

• An increase in the tourist accommodation occupancy rate; and

• An increase in the contribution to Southland’s economy from international students.

In addition to these outcome focused measures, Venture Southland is expected to develop performance indicators that measure the achievement of its work programme.

Increased transparency of performance

The Councils expect Venture Southland to work in a transparent manner, particularly in regard to holding as many Joint Committee and Advisory Subcommittee meetings in public as possible. In addition, the Councils expect Venture Southland to have at least six sector focus forums with wider stakeholder groups and report against this in its annual report.

The Councils want to see the Joint Committee operate transparently by disclosing
non-sensitive performance information against its Business Plan throughout the year via the Joint Committee meetings and reports to Council.

The Councils are keen to see clear delivery timeframes for key projects set out in Venture Southland’s planning documents and for reporting to be against them. Project plans should be prepared for key projects to provide greater detail than what is set out in the business plan.

Reporting to each Council is expected to be done at least quarterly in open agenda.
The Chair of the Joint Committee and independent representatives are asked to appear before Southland District Council and Invercargill City Council at least every six months and Gore District Council once a year. Each report should provide an update on work streams against the current year’s business plan and year to date expenditure against budget.

Efficiency and effectiveness

The Councils want Venture Southland to focus on delivering results for the Southland region. In that context, the Council expects the Joint Committee to maintain a thorough understanding of the business and cost drivers of Venture Southland and look for service improvements within tight fiscal constraints.

Branding and communication

It is expected that when Venture Southland is communicating with the public, stakeholders and the media that it is made clear that Venture Southland is a part of the Councils and where practicable, all branding and external communication will refer to the Councils.

Purchaser Expectations

While the activities that Venture Southland will provide on behalf of the Councils are defined in the Venture Southland Agreement 2014 - 2017, this letter of expectation provides an outline of the Councils’ priorities and specific projects for the 2015/16 period.

Venture Southland is asked to set realistic timeframes for achieving these outputs.

Priority projects

Specific priority projects to be included in Venture Southland’s work programme:

Joint projects:

• Participating in the development of the Regional Development Strategy as lead by the Mayoral Forum.

• Production of economic data at a regional and territorial local authority level in time for the Councils’ planning processes.

• Development of a regional cycle way strategy.

• Development of a platform for reviewing and planning coordination of events across the region.

• Preparation of a Tourism strategy that demonstrates how a greater focus on marketing Invercargill, including the development of marketing materials, is to be achieved. This strategy should have a particular focus on the China market.

• The establishment of at least two further events in Invercargill.

• Review of the I-site for efficiency.

Southland District Council community development projects:

• Implementation of the Around the Mountains business strategy.

• Research around viability of communities experiencing declining population (this would capture Ohai, Nightcaps, Orepuki and Tokanui).

• Research around providing community development incentives such as a dollar for dollar subsidy regime.

• Programme to promote the benefits of community volunteering (possibly including community leaders telling their stories).

• Further development of the Community Planning approach to link in with the development of the Regional Development Strategy.

• An ongoing community development coaching programme to encourage and support Southland District communities to develop local initiatives.

No Invercargill City Council money is to be utilised for Community Development projects.

The projects set out above will be inserted into the Joint Purchase Service Agreement to be signed by the Councils and Venture Southland by the end of June 2015.

Yours sincerely

Gary Tong

Mayor

Southland District Council

Tim Shadbolt

Mayor

Invercargill City Council

Tracy Hicks

Mayor

Gore District Council

Council

10 December 2014

Description: sdclogo

Implementation and Remittance of Development and Financial Contributions

Record No: R/14/12/18449

Author: Simon Moran, Manager - Resource Management

Approved by: Bruce Halligan, GM - Environment and Community

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 To clarify the Development and Financial Contribution Policy framework that Council wishes to implement.

Executive Summary

2 Southland District Council has four alternate Development and Financial Contribution (DCs/FCs) regimes in the public arena. They are – the current Long Term Plan 2012-2022 (the LTP); the Operative District Plan 2001; the Proposed District Plan 2012; and the draft Policy on Development and Financial Contributions. It is necessary to get clear direction from Council regarding the contributions regime it wishes implemented.

3 Four options are considered in this report with their relevant advantages and disadvantages. It is recommended that the Financial Contributions policies of the Proposed District Plan are implemented and the LTP Financial Contributions provisions are remitted to an amount equal to the Proposed District Plan. With respect to continuing to require payment of Development Contributions, or not, for the remainder of the financial year direction is sought from Council.

Recommendation

That the Council:

a) Receive the report titled “Implementation and Remittance of Development and Financial Contributions” dated 10 December 2014.

b) Determine that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

c) Determine that it has complied with the decision making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

d) Determine to use the Financial Contribution policy framework in the Proposed District Plan 2012 instead of the Financial Contribution provisions in the Long Term Plan 2012-2022.

e) Makes a decision inconsistent with the Development and Financial Contributions Policy in the Long Term Plan 2012-2022 to partially remit the Financial Contributions for reserves to match the requirements of the Proposed District Plan until 1 July 2015.

f) Provides specific direction on whether to remit or require Development Contributions to be paid until 1 July 2015.

Content

Background

4 At the moment Southland District Council has four alternate Development and Financial Contribution (DCs/FCs) regimes in the public arena. They are – the current Long Term Plan 2012-2022 (the LTP); the Operative District Plan 2001; the Proposed District Plan 2012; and the draft Policy on Development and Financial Contributions.

5 Under the current LTP the Resource Management Department assist with implementing the DCs/FCs sections by advising consent applicants that they will be liable to pay an amount in accordance with the relevant policies. The Building Control Department also ensure that people are invoiced for DCs/FCs, if appropriate, at the time they issue the building consent.

6 The Operative District Plan has FC provisions that were implemented until 2004 when Council decided to implement the DC/FC provisions in the Long Term Council Community Plan (as it was then) instead of the District Plan regime with the exception of roading.

7 In the Proposed District Plan there are FC policies and rules that enable contributions to be collected for roading and reserves only, based on the effects an activity may have on the surrounding area. Council approved the release of the Decision on the Proposed District thereby giving the FC provisions legal effect from 15 October 2014.

8 Council have also recently considered the draft Policy on Development and Financial Contributions 2015-2025. That draft policy signals, in advance of the LTP process, that Council intends remitting Development Contributions in total (i.e. not requiring any contribution toward water, sewerage, or stormwater) in the 2015/16 financial year.

Issues

9 Whether to remit or require Development and Financial Contributions that are required under the current LTP until 1 July 2015.

With significantly greater lead in time before the Draft Development and Financial Contribution Policy’s 2015-2025 implementation than is usual, it is likely to create a situation where people will be asking why they need to pay higher amounts in DCs/FCs than they would have to in six months’ time.

10 Clear direction from Council for staff and ratepayers as to which DC/FC provisions it requires to be applied in the interim period between now and the 2015-2025 Draft Policy coming into effect on 1 July 2015 (subject to submissions and final consideration by Council).

Factors to Consider

Legal and Statutory Requirements

11 There is no legal requirement to collect either DCs or FCs. That is a decision for each Council to make based on its particular circumstances. The Southland District Council does have them and at the moment has approved two different frameworks for collecting them although, only one can be used on any particular application.

12 Under the LTP framework Council must collect them using the methodology set out in that plan. In order to deviate from that methodology Council must make a decision that is inconsistent with the adopted policy. It can do this but at the time of making that decision it must comply with the requirements of Section 80 LGA 2002. Those requirements are to clearly identify—

(a) the inconsistency; and

(b) the reasons for the inconsistency; and

13 In this case deviation from the DC/FC policy in the current LTP, by applying an alternative contribution approach, will be inconsistent with that earlier decision. The reason for the inconsistency will be to clarify which of the approved approaches Council wants staff to implement. The Draft Development and Financial Contributions Policy signals that it is Council’s intention to consult on and change the contributions policy to reflect the ‘inconsistent’ decision.

Community Views

14 Community views will be sought next year on the Draft 2015-2025 Policy through the LTP process as the Local Government Act 2002 (LGA) simply requires that a draft was made available by 1 December 2014. In the meantime it has been staffs’ experience from previous changes in funding policies that people believe it is an inequitable situation for them to have to pay DCs/FCs when it is clear that in the near future those costs will be reduced or remitted. Others, who have previously had to pay however, do not necessarily share the same view regarding inequity and are more concerned that since they had to pay why shouldn’t others.

Costs and Funding

15 If Council decides to take any option other than the status quo then there will be a cost in that any alternative contribution will be of a lesser level than what is required by the methodology in the current LTP. The overall cost to Council is difficult to quantify as it depends on how many activities are started in the next six that would be required to pay a contribution.

Policy Implications

16 There will be clarity for staff and ratepayers as to which DC/FC policy framework the Council prefers to implement. That decision will result in either the current LTP policies being set aside, modified, or the FC provisions in the Proposed District Plan being remitted.

Analysis

Options Considered

17 Option 1 - Status Quo

This would mean continuing to implement the current 2012-2022 LTP DC/FC provisions in preference to the District Plan FC policies (except for roading).

18 Option 2 - No DCs/FCs

This would result in Council funding 100% of the costs for any improvements required public roads and reserves, and capital costs of any other infrastructure improvements due to land use or development in the District.

19 Option 3 - Use the Proposed District Plan FC policies only

This would mean financial contributions could be taken only for impacts on roading and reserves.

20 Option 4 - A combination of LTP and Proposed District Plan

Using a combination of both frameworks would provide the most equitable outcome for ratepayers over the next six months if there was also a decision to remit the level of FCs in the current LTP to match that of the Proposed District Plan. For reserves, in part that means reducing the level from 7.5% of the value of 1000m² under the current LTP approach, to either 1% or 2% (depending on the circumstances) in accordance with the Proposed District Plan.

21 The more difficult element is the DC requirement under the current LTP. Either Council can remit the value of the DC required under the LTP, or it can continue to require it to be paid until the end of the financial year. Council’s Draft Development and Financial Contributions Policy indicates that from 1 July 2015 it intends to remit 100% of the value of the DC. In the meantime those people who have been advised in earlier consent decisions that they will be liable for development contributions at the time they implement their consent will be required to pay the DC if they want to proceed

Analysis of Preferred Option

Analysis of Options

Option 1.

Advantages

Disadvantages

· Administratively straight forward to continue to require contributions in line with the LTP

· The contribution framework differs markedly from the Proposed District Plan 2012 and the Draft Development and Contributions Policy 2015-2025.

· Those people required to pay in the next six months are likely to be concerned that it is costing them when it is likely that from 1 July 2015 those costs will not apply.

Option 2.

Advantages

Disadvantages

· Te Anau people are likely to be happy that the costs that they would otherwise incur have been remitted.

· Administratively easy to implement.

· The ratepayers will be liable for all costs to improve public infrastructure and reserves caused by land use and development in the District.

· There would be no additional contributions to the Te Anau wastewater scheme from development for the remaining six months of this financial year.

· Those who have already paid may consider there is an inequity.

Option 3.

Advantages

Disadvantages

· Te Anau people are likely to be happy that the costs that they would otherwise incur have been remitted.

· Effects from land use and development in the District will still potentially be subject to a contribution requirement.

· Ratepayers will be liable for the cost of the Te Anau wastewater scheme that would have otherwise been collected over the next six months.

· Those who have already paid DCs may consider there is an inequity.

Option 4.

Advantages

Disadvantages

Financial Contributions

· Remitting the current LTP FCs to a comparable level with the Proposed District Plan will reflect the most recent publicly consulted decision taken by Council in relation to an FC policy.

· It will reflect a cost more in keeping with the level of recreational reserves that currently exist.

· It will assist in reducing the perception that the costs are an impediment to development.

· Will be in keeping with the direction indicated in the Draft Development and Financial Contributions Policy 2015-2025.

Development Contributions

· Remitting the DCs in line with the Draft Policy would mean that current consent holders and people who obtain consent in the next six months will not need to pay a DC that is intended to be remitted.

· Requiring those who will subject to a DC in the next six months to pay would be equitable with previous situations when the DC/FC regime has changed only at the start of a new financial year

Financial Contributions

· A reduced level of income from land use and development for the next six months.

Development Contributions

· Those who have already paid may be aggrieved that others are paying less or nothing when they have had to pay.

· Those who have to pay are unhappy when they are aware that there will be a change in policy in the next few months that they may be unable to take advantage of.

Assessment of Significance

22 Whilst the cost implications to individuals of having to continue to pay under the LTP’s DC/FC policies are unpalatable it is not considered that this meets the test in the Significance Policy. It is not a decision that will have a major or long term effect on an individual town or the district, cultural impact, or level of service. In this instance the financial impact over the next six months is also likely to be well below threshold of 10% of total revenue (exclusive of investment assets). Remitting DCs will be of some significance to the Te Anau community as currently that is the only community facing water and sewerage DCs, however, over the next six months there will be relatively few people affected by the decision that is taken.

Recommended Option

23 It is recommended that Option 4 is approved by Council with a specific direction given on Development Contributions.

· With respect to FCs, this option reflects the decision of Council to have a new and more targeted FC policy framework.

· With respect to DCs, Council must decide which approach it prefers as both requiring DCs to be paid at levels specified in the current 2012-2022 LTP until 1 July 2015, and remitting them in the interim are legally valid options.

Next Steps

24 No further steps are required as staff will implement the resolutions that are made by Council.

Attachments

There are no attachments for this report.

Council

10 December 2014

Description: sdclogo

Management Report

Record No: R/14/11/17716

Author: Steve Ruru, Chief Executive

Approved by: Steve Ruru, Chief Executive

☐ Decision ☐ Recommendation ☒ Information

Chief Executive

1 Highlights for the last six week period include:

(a) NZTA completed its review of Financial Assistance Rates (FAR) and announced that this Council’s rate would reduce from 54% to 51% over the next three years.
Officers will address the impacts of this reduction as part of the 2015 Long Term Plan.

(b) Work is continuing with development of the 2015 LTP. The budgeting process is progressing and a number of the draft policies and Activity Plans were presented to Council.

(d) The Building Control team is preparing for an IANZ reaccreditation visit in early 2015.

(e) Mayor Tong and the Chief Executive visited the Fonterra Edendale site to discuss issues affecting the development of the dairy industry and Fonterra.

(f) Councillor tour of NZAS facility at Tiwai.

Three Waters Project

2 In late October, Local Government NZ released a discussion paper looking at the issues associated with managing water, wastewater and stormwater services in New Zealand.
The paper identifies three core issues facing local government. These are:

· Issues associated with investing to replace and renew existing assets. The work completed to date suggests that there is a high level of investment needed to ensure that the current assets can be maintained in the long term.

· The need for further investment to meet rising standards and increasing expectations. Future performance standards and greater customer expectations will place additional pressure on councils’ performance.

· How you create the right incentives for end-users to use water infrastructure and services efficiently.

3 The issues raised through the discussion paper are all to the challenges facing this Council. A copy of the paper is available on the LGNZ website (www.lgnz.co.nz).

Auditor-General Infrastructure Report

4 The Auditor-General has recently released a report discussing the challenges that local authorities face in managing roading and three waters assets.

5 The report finds that that the practices used by a number of local authorities’ fall short of ‘good practice’ asset management guidance, such as that developed by NAMS and that there is a need to adopt a longer term planning approach that reflects the needs of communities over the medium- long term. It also notes that capital expenditure on renewal projects often fell short of budgeted levels raising questions about capital works management and depreciation practices used across the sector.

6 The report suggests that there is a need for local authorities to review their current approaches to asset management including the condition assessment information that they hold, ensure that they have a good understanding of the medium to long term implications of the investment approaches that they are adopting and have a strong linkage between their asset management and financial strategies. A copy of the report is available on the Office of the Auditor General website (www.oag.govt.nz).

Human Resources

Health and Safety

7 In its duties as a Principal to a Contractor, the SDC was actively involved in the investigation of the fatality of a Grader Driver with SouthRoads. The Council investigation is complete, pending the final report from SouthRoads, which in turn, is reliant on the Police report which could take one to three months. Until this information is available, it still cannot be concluded whether the incident was a medical event, an unfortunate accident or a combination of both.

8 The Council has been co-operating with WorkSafe NZ and has provided any information that it has requested. The need for any further engagement with WorkSafe NZ will be dependent on the outcome of the final reports. At this point of the investigation, officers are satisfied that SouthRoads had reasonable processes in place and can remain confident in their ability to perform the duties as a Primary Contractor, in a healthy and safe manner.

9 There were some recommendations made in the report for improvements to Council practices. These are primarily around the requirements to demonstrate due diligence and capturing/recording information in regards to the Health and Safety performance of Council contractors. The current Contractor Engagement Project within Services and Assets has been utilised to develop these improvements.

Recruitment

10 The Chief Financial Officer, Group Manager Policy and Community, and Revenue Manager vacancies have all been advertised and the short listing process completed. The number of applications received was encouraging. Interviews will be completed and appointments will hopefully be made prior to Christmas.

Wyong Shire Staff Exchange

11 Maree Fyffe from the Communications and Governance Team was selected for the Wyong Shire Staff Exchange Programme in October 2014. Maree had a successful trip focusing on governance processes and alternative means of consultation with communities. She will present her findings and recommendations to the Executive Leadership Team in December.

Environment and Community Group

12 There has been quite a bit of Animal Control activity in recent weeks, with a number of dog attacks at the more serious end of the spectrum and several owners objecting to classification of their dogs as dangerous or menacing. Council has initiated a prosecution under the Dog Control Act against owners of the dogs involved in a recent serious attack in Riverton. The two men have indicated guilty pleas to all charges and have been remanded to 21 November 2014.

13 The appeal period is currently running for District Plan decisions, which were publicly notified on 15 October 2014, for a period of 30 working days from parties’ receipt of the decision.

14 The Stage Two resource consents for Around the Mountains Cycle Trail are currently being processed. Over 200 submissions have been received.

15 A Waituna Partners’ Group meeting between Environment Southland, Southland District Council, Department of Conservation and Ngāi Tahu was held on 6 November 2014. Amongst other matters, this meeting considered a draft Strategy and Action Plan to progress the work-streams associated with Waituna. A key focus has been on avoiding duplicated effort and co-ordination between the various agencies involved including Fonterra and Dairy NZ.

16 A Governance Group meeting of the Predator Free Rakiura Project was held at SDC on 23 October. During the week of 10-14 November 2014 the Morgan Foundation will be doing a publicity campaign to raise awareness of the project in the Invercargill area.

Building Control:

17 Kevin O’Connor, the Manager of Building Control, recently achieved a major milestone of 30 years’ service to the Southland District and before that the Southland County Council.

18 Building consent numbers are still steady. Hopefully, this trend will continue despite the decline in the international milk prices.

19 The Building Control Department’s next accreditation assessment is due in March 2015.
An Application for reassessment has been lodged with International Accreditation NZ.
The reassessment will be the first under the new shared services quality manual.

Environmental Health:

20 The Alcohol Regulatory and Licensing Authority has suggested that councils refrain from making further decisions until a number of the current appeals have been heard, concerning whether the sale of single serves from off-licences can be prohibited as a condition of licence and also the application of new rules concerning supermarkets and grocery stores.

21 The Te Anau Basin freedom camping shared service with the Department of Conservation started on 1 November. Last season saw the number of vehicles that Rangers were required to educate and move decrease by 58% from the season before that.

Resource Management:

22 District Plan - decisions from the hearing of submissions and further submissions have now been issued, a major milestone for the project. The appeal period is currently running until shortly before Christmas. Three appeals had been received at the date of writing this report.

23 The resource consent application for the Around the Mountains Stage Two consent has been notified, with submissions now closed and over 200 submissions received. A hearing before Commissioner Nugent has been tentatively scheduled for February 2015.

24 A resource consent application has been received for the proposed Curio Bay visitor centre. This was notified in late November and a hearing also tentatively scheduled for early February, also before a hearing commissioner.

25 Staff have been involved in the reconvened hearing for the Te Anau wastewater project in the week 17-21 November.

Area Offices:

26 Staff in Area Offices have been involved with all customer service activities including the second instalment of rates, Environment Southland annual rates and rates rebates. Other activities have included:

· CBs/CDAs Estimates/LTP meetings,

· InfoCouncil training,

· Staff Forum,

· Review of Area Offices’ Procedures Manual,

· Riverton Harbour Committee Workshop,

· Milford Community Trust SOI Workshop,

· Involvement with Milford Community Trust interviews for new Trustee,

· Arranging Community Service Award presentations,

· Attendance at RETS (Resource Efficiency Teams) and H&S Committee meetings,

· Stewart Island Promotions meeting,

· Wyong Exchange (Lesley Crawley) tour of Area Offices.

Libraries:

Activities

27 Preparation for the Summer Reading Challenge is well advanced and enrolments commence on 1 December 2014.

28 Dr Aaron Fox, a Southland Historian, is sharing his research on WWI with members of the public at Winton on Friday, 14 November 2014.

29 A programme, based on the Hunger Games has been developed to be part of Winton Open Day on Sunday, 16 November 2014 and will involve most Library staff (and some from other departments).

Staff Training

30 Library staff have recently been involved in both the national LIANZA Conference in Auckland and the South Island Children’s Conference in Balclutha. Both had content of great interest to the attendees and it was also a highlight when both a Fellowship and an Associateship was awarded to Lynda Hodge and Morag Gray. This is the first time a Fellowship has been awarded to a Southland Librarian.

SouthLib

31 Some councils in the SouthLib Consortium have recently implemented a new Library Management System. Invercargill City and Southland District Libraries remain partnered with the existing provider whilst Dunedin City, Central Otago and Queenstown Lakes Libraries have joined a New Zealand wide consortia. For members of the public, there should be little difference apart from the loss of the holdings. However, access to these libraries and their collections remains the same. The other initiatives that are shared, such as large print collections, e-books, professional development courses, are all still in place.

Customer Services:

32 An emergency management welfare planning team comprising of Craig Sinclair, Sandra Miller from Emergency Management Southland, Paula Burke from Environment Southland and Janet Thomas from Southland District Council will run exercise Te Rip on 27 November 2014.

33 The aim of the exercise is to practice the reporting lines, linkages and procedures between the organisations that make up the Southland Welfare Coordination Group. Participants will be Southland District Health Board, Inland Revenue Department, Ministry of Education, Sector Wardens, St John, Ministry of Social Development, NZ Housing, Women’s Refuge, Victim Support, Presbyterian Support, SPCA, Ministry of Civil Defence & Emergency Management, Ministry for Primary Industries, Rural Women, Public Health South and Salvation Army.

Corporate and Financial Services Group

InfoCouncil

34 Early this month the installation of InfoCouncil was successfully completed and training provided to the Committee Advisors, Area Officers and other key users. This was followed by user acceptance testing and preparation for ‘go live’ planned for 17 November.
The sessions were well attended and showed a high level of engagement and discussion around what was required for implementing InfoCouncil.

35 The first InfoCouncil meeting will be the meetings held on 10 December (being Policy, Activities Performance Audit Committee and Council). Councillors and other elected members will notice some changes in the presentation of reports, minutes and agendas (based on the new templates) as well as some changes in the templates structure.

36 All meetings that are post 10 December 2014 will be prepared under InfoCouncil.

Long Term Plan

37 Development of the Long Term Plan (LTP) 2015 - 2025 continues. Both the asset and regulatory based Activity Management Plans (AMPs) are nearing completion and will be reviewed by the Policy Review Committee at its meetings in November and December.

38 At its meeting on 29 October 2014, Council adopted a new Significance and Engagement Policy which reflects the changes required under the Local Government Act 2002 Amendment Act 2014.

39 A workshop was held on 14 November 2014 to brief Councillors on progress with development of the Financial Strategy, Infrastructure Strategy, Roading Rate Model, the Development and Financial Contributions Policy and the proposal to investigate funding of depreciation.

40 The Council’s LTP planning assumptions and the regulatory activity profiles were also discussed. The Policy Review Committee will review the Development and Financial Contributions Policy at its 19 November 2014 meeting. Council is legally required to make its draft Development and Financial Contributions policy publicly available by 1 December 2014. The Policy Review Committee will consider the other issues at its meeting on 10 December 2014.

41 The budget application closed on 31 October for business unit managers to populate their budgets for the 10 years of the LTP. The Executive Leadership Team reviewed these with the budget managers in a workshop on 24 November. Community Board and Community Development Area estimate meetings are underway and due to be complete in mid-December (excluding the Wards, which will be held in late January).

42 Audit NZ completed the first of three visits associated with the LTP in the week of 10 November. During this visit its focus was on ascertaining the progress that Council has made to date on the LTP and looking at some of the key draft documents, including infrastructure strategy, financial strategy, asset management plans, activity profiles and corporate assumptions. Audit NZ also reviewed Council’s budgeting process during this time.

Services and Assets Group

General

43 The group has been busy due to bad weather, work on the Long Term Plan, the construction season getting underway, the cycle trail project, large resource consents and asset management planning work.

Asset Management Plan Project

44 A draft Infrastructure Strategy has been developed and discussed with Councillors. The next version will be populated with financial information and discussed in a Council meeting on 10 December.

Te Anau Airport - Manapouri:

Safety

45 As part of the changes to the Civil Aviation Safety Management Plan and recertification which is expected to happen early 2015, preparation for the introduction of the Safety Management System (SMS) will start in January of next year. Currently the airport operates a reasonably basic Quality System and separate Health and Safety System. These systems will be incorporated under the umbrella of the Safety Management System. There are a few additional components that have also been incorporated to change the philosophy from a reactive system and move towards a proactive system incorporating additional risk modules. Guidance material has been sourced from the Civil Aviation website using Advisory Circular (AC 00-4). The Airport Manager has recently designed and had regulatory approval of the Invercargill Airport Safety Management System and it is envisaged that our system will be reasonably similar but on a smaller scale.

46 The Airport Manager and Quality Manager have been working closely on this requirement in the later part of 2014 to ensure that this will be ready for recertification.

People

47 With the anticipated changes to the operating certificate and introduction of Safety Management System, subtle changes to the titles of the some of the positions within the airport will occur, these will be rolled out prior to certification. The two areas of change will be in the operations area with Lee becoming Operations Manager and the split of the Quality Assurance Manager role into the two independent positions of Safety Systems Manager and Safety Audit Manager. In an airport the size of Te Anau Airport Manapouri, these positions are minor but these functions must be clearly separated.

Assets

48 There has been no further update on the change to Tauck Tour airline providers although it is likely that this will occur in early 2015. There will be very little change to the operation apart from additional training on the new aircraft type for our ground handling staff and possibly the reintroduction of the odd jet service as tourist numbers dictate.

49 Preliminary costings have been carried out for the introduction of runway lighting and discussions with similar sized airports have highlighted that technology changes have reduced the cost considerably with the introduction of solar powered systems. Requirements sought from a regulatory perspective have not yet been conducted.

Projects

50 Project Description	51 Influence	52 Comment
53 Wildlife Management Project	54 Reduce the likelihood of Bird Strike.	55 Ongoing monitoring - airport staff are reporting less Black Gull activity at the airport, further intervention has not been required to date from the initial poisoning program.
56 HeliPad Development	57 Provide itinerant and local helicopter operators a dedicated landing site to refuel and manage passengers off the apron area reducing wear and tear of the existing apron and separating rotary and fixed wing operations.	58 Dimensions and location have been decided on in consultation with the Civil Aviation Authority Advisory Circular for Heliports. Materials are being sort to align with the Rustic Theme of the Terminal Building.
59 Non-Operational Development focus	60 Aid further hangar and non-operational activities at the Airport, increasing activity and income.	61 Work closely with and help promote and influence the progressive forward direction of non-operational land currently under lease to MGJV Limited of Te Anau. 62 Challenge to the pricing offered by MGJV for airport hangar development has been received by Airscapade of Te Anau. 63 The Council has engaged a consultant with extensive working knowledge of the above situation to provide an independent report to Council on the best forward direction to resolve the situation.
64 Night Operations	65 To provide a wider scope of operations comparable to future Queenstown operations.	66 Initial costings have been carried out, Regulatory and Council implications report will be initiated upon further information provided by future client.

SIESA (PowerNet):

Safety

67 The PowerNet staff located at the SIESA Powerhouse have not had any incidents in the October period.

68 Safety Training was conducted on 8 and 10 October 2014 for compliance with CPR refreshers, Basic Life Support, Emergency Rescue and Electrical Safe Work Practices.

People

69 There are two PowerNet staff at the Powerhouse on the Island. Training was completed in October for Steve Lawrence and Chris Dillon for new vision and value attributes.

Assets

70 A new diesel generator is currently being assessed for replacing the old G5 generator. The new unit will likely be installed in 2015.

Asset Management Improvement Plan Update

71 A meeting was held with Southland District Council in March, May, June, July, September and October to improve the Asset Management Plan; the draft version is complete and ready for submission.

Projects

72 Several small projects are proposed for approval:

73 Ring Main Feeder connection (Stage One - to connect the gap in the two line supplies). Information provided - awaiting approval.

74 Ring Main Feeder connection (Stage Two - to upgrade the line supply to the sewerage system and also to two dwellings on the old supply). Information provided - awaiting approval.

75 Replacement of the Emergency Generator connection to the grid as a general generation unit. Information provided - awaiting approval.

76 Review of the location of the fuel tanks and associated oil bunding; or replacement of old fuel pumps and construction of associated oil bunding. To be reviewed for compliance.

77 Painting of the Powerhouse. Approved: Purchase order issued.

78 Upgrade of the high voltage electrical distribution earthing system. Scope and specification being prepared.

79 Replacement of the damaged fire prevention water tank. Information provided - awaiting approval.

80 Removal of infringing vegetation from under the overhead power lines. In progress.

81 The building of a suitable garage for protection of the diesel tanker from the elements and extend its life. Scope and specification being prepared.

82 Day tank replacement - or improved supply system. To be considered with the review of the fuel tanks in No. 4, above.

83 Fit new surge arrestors at the cable terminations on the pole outside the Powerhouse. To be considered with the scope and specification of the connection of the new generator in No. 3, above.

84 A new diesel generator to replace the old Units 1 and 2. Under consideration.

Forestry (IFS):

Safety

85 Incidents reported in the forest over the last period included a minor injury contact incident at Waikaia and a near miss at Dipton.

86 The incident at Waikaia occurred when a contractor carrying out fencing work was hit by a metal shard from his chisel. While eye protection was being worn, the metal contacted his exposed neck; as a result, the head of the chisel was ground to remove burrs.

87 At Dipton, a miscommunication around radio channels led to a visitor arriving at a harvesting site without the crews’ knowledge. IFS Growth has produced new signage to clarify procedures around the use of radios when travelling in forests with active harvesting operations. Spatial and aspatial hazard registers continue to be maintained by IFS Growth for the Southland District Council forests.

Assets

88 Harvesting operations at Dipton were completed in early October, at which point wood with a total value of $952K had been removed from the forest. While recovered volume was down slightly (4%) on projections, the strong price achieved for the wood meant that revenue received for this project slightly exceeded budget.

89 Harvesting at Waikaia will continue through to the end of the 2014 calendar year and is progressing well in terms of recovered volume and revenue.

90 A forest tour for Councillors and staff was held in early November. All four forests were visited, with recent and current harvesting sites, land preparation operations, recent planting and silviculture sites visited. Maintenance and security works and improvements were also seen.

Asset Management Improvement Plan Update

91 The draft Forest Estate Management Plan is included in the agenda for the November meeting of the Forestry Operations Committee.

Projects

92 Arrangements for the Ohai Road frontage will be finalised over the coming months. The preferred option is to maintain the corridor with hand gun spraying and some ongoing maintenance, with a neighbouring land owner grazing the western end.

93 Recreational access issues will likely be further addressed as the Forest Estate Management Plan is finalised.

94 The ownership status of forest land that is not currently held in freehold by the Southland District Council is being investigated with a view to transferring these parcels to freehold ownership. This is being carried out within Southland District Council and will guide decisions around possible disposal of land from the forestry estate (eg the area occupied by stand 29/1 at Ohai, which is small and isolated from the rest of the forest block).

Property:

Assets

Public Conveniences

95 Council has adopted that the developed matrix for consideration of requests for new public toilets be used as a first cut, to determine whether the request warrants being referred to Council for further discussion.

96 Upgrades at Mossburn and Garston have commenced with Mossburn to be completed first.

97 As at the end of October the total number of persons using the Lions Park toilets in Te Anau is ahead of the counts for the previous three years.

Community Centres

Documentation is being prepared for the disposal of the closed Otautau Town Hall and the Edendale Town Hall has been closed for use from 1 November. Further work is required on the disposal of both of these. Menzies Ferry Hall will also be closed in the new year.

98 There are ongoing issues with the lack of use and viability of most rural halls and staff are regularly working with the committees on their options.

Council Offices and Other Buildings

99 External painting at Lumsden is nearing completion, with the external painting at Otautau about to commence. Internal alterations at Otautau are complete which will allow additional rooms for the local RSA and for access to the free internet by the seasonal blueberry pickers.

100 Internal alterations at Riverton by way of the installation of a bi-fold door in the meeting room to make it bigger if required has also been completed.

101 Library upgrade at Te Anau has also commenced with prices for the separate components being received.

Waste and Water:

Te Anau Wastewater Update

102 The hearing for the new resource consent for the Te Anau wastewater upgrade was reconvened on 17 November where staff and expert witnesses provided evidence in support of the Commissioners additional information request.

103 A number of submitters spoke to their submissions and some expert evidence from submitters was pre-circulated. It is expected that a decision will be issued in late January 2015.

Curio Bay

104 Council is currently working with Department of Conservation and the South Catlins Development and Environmental Charitable Trust to implement a sustainable long term wastewater treatment solution for the reserve. This work is part of a wider project to help improve the overall visitor experience at the reserve.

105 The treatment solution based on membrane technology would treat the effluent to an extremely high standard which is in keeping with the unique status of the area. The plant is identical to one operated by Department of Conservation at its Papatowai campsite further up the Catlins coast.

106 Over 65 submissions were received with the majority in support of the application. One submission opposing the application was received from Te Ao Mārama however it also indicated its willingness to work with Council to resolve the issues outlined in its submission. Te Ao Mārama subsequently withdrew its submission in opposition prior to the hearing with Environment Southland.

107 Hearing date for the Notice of Requirement and discharge consent were held on 24 and
31 October respectively. At the time of writing decisions are still pending.

Water Treatment Upgrades

108 Work has recently been completed on an upgrade of the four water treatment plants in order to meet requirements of the Drinking-water Standards for New Zealand. The work involves installation of dosing equipment for pH correction and ultra violet disinfection along with associated instrumentation, monitoring and control equipment. The $2.2 million contract was awarded to Downer for these upgrades. The Mossburn Community Development Area Subcommittee recently had a tour of the new facility, with positive comments from members being received.

Riverton Water Supply

109 Work has now been completed on the installation of a new borehole for Riverton water supply.

110 Following this a contract has been awarded to upgrade the treatment plant so as to meet new Drinking-water Standards.

111 Stage One will involve installation of chlorine dosing and aeration to correct pH and remove iron. Aerators have now been constricted and are awaiting delivery to site.

112 Stage Two will see the installation of a membrane filtration plant to reduce the overall hardness of the water.

Stormwater Consenting

113 Environment Southland is currently processing consent applications for 17 of Council’s stormwater schemes. Site visits for all schemes have been undertaken and at a follow up meeting Council staff tabled what they believed to be appropriate monitoring and consent conditions consistent with the scale of the activities and the potential financial implications for a small ratepayer base.

114 It is hoped that agreement over conditions that are reflective of the scale of activities will be able to be reached in the near future.

Wastewater Resource Consent Renewals

115 Applications have been lodged at Environment Southland for the renewal of discharge consents for the Ohai and Riversdale wastewater schemes. Application for Nightcaps was submitted in October and Council is currently awaiting further developments. The Riversdale application was notified in late October.

Health and Safety

116 Nothing new to report.

Operations and Community Services:

People

117 Operations and Community Services are heading into a period during which an
Area Engineer will be on maternity leave in early 2015. The need to provide cover for this period and also provide for a level of future succession planning has led to the decision to recruit an additional Area Engineer now.

Projects

118 The financial estimates review meetings are in full swing. The Area Engineers are instrumental in facilitating this process in their communities.

119 SIESA - Working closely with PowerNet to execute and finalise all planned renewal and replacement projects for the SIESA power station and distribution network on Stewart Island.

120 Animal Control vehicle - Due to delays in the parts supply at Council’s contractor
(Otago Auto Trimmers, Dunedin) the finalisation of the fit out is unfortunately taking much longer than anticipated. The specialists at Fiberglass Innovations in Invercargill are waiting for the vehicle so that they can build their fiberglass solution for the dog cages directly into the back of the van. They estimate approximately three weeks for the finalisation of their design.

Work Schemes:

Projects

· Lumsden Kiosk.

· Mossburn Toilet Upgrade.

· Invercargill City Council Track Maintenance and Noxious Control.

· Mowing throughout the District.

· Lumsden Office/Library Repairs.

· Riverton Planting Project Taramea Bay.

· Lumsden Water Tower Painting.

Recommendation

That the Council:

a) Receive the report titled “Management Report” dated 10 December 2014.

Attachments

There are no attachments for this report.

Council

10 December 2014

Description: sdclogo

Building Consents and Values for October 2014

Record No: R/14/11/18220

Author: Kevin O'Connor, Manager - Building Control

Approved by: Bruce Halligan, GM - Environment and Community

☐ Decision ☐ Recommendation ☒ Information

Recommendation

That the Council:

a) Receives the report titled “Building Consents and Values for October 2014” dated 10 December 2014.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

		No.	2014 $	No.	2013 $
1.	Dwellings	16	6,427,400	19	4,203,282
2.	Additions to Dwellings	23	1,315,500	20	485,907
3.	Commercial/Industrial Buildings	11	951,500	9	805,000
4.	Swimming/Spa Pools	1	20,000	0	0
5.	Heating Units	8	28,550	9	73,000
6.	Garages	6	128,100	6	122,300
7.	Farm Buildings	16	1,191,830	16	1,583,805
8.	Houses for Removal	1	50,000	7	619,442
9.	Cowsheds	3	1,047,600	2	678,400
10.	Miscellaneous	4	13,500	2	4,900
11.	Certificates of Acceptance	0	0	0	0
	TOTAL	88	11,173,980	90	8,576,036

	2014	2013	Variation %
Total consents for month	88	90	2.22-
Total consents for year	409	348	17.53
Total project values for month	11,173,980	8,576,036	30.29
Total project values for year	41,195,374	27,486,165	49.88

Average Residential Cost	401,712	221,225
Average House Area (m²)	332.45	215.64

Number of Inspections Carried Out	524	458

Summary/Comments:

Another consent numbers for the month are back by 2%, overall consent numbers at 1/3 of the way though the financial year are still up by 18% from that for the same period last financial year. New dwelling numbers are back at 16 as opposed to 19 for October 2013, but the overall project value has gone up from $4.2 to $6.4 million. Dwelling additions and dairy shed project numbers and values are up for the same period last financial year.

Attachments

a Appendix A - Consents Database Graph View

b Appendix B - Building Consents Issued Numbers View

c Appendix C - Building Consents Issued Values View

Council

10 December 2014

Description: sdclogo

Formation of Ward Committees

Record No: R/14/11/18406

Author: Louise Pagan, Communications and Governance Manager

Approved by: Steve Ruru, Chief Executive

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 This report is to formalise the establishment of ward committees.

Executive Summary

2 Ward committees were established to bring together the elected members – councillors and community board and community development area (CDA) subcommittee chairs – in order to discuss projects and budgets. The committees have met during the 2014 year but have not been officially appointed under clause 30, Schedule 7 of the Local Government Act 2002. This is necessary to enable them to make recommendations to Council around estimates.

Recommendations

That the Council:

a) Receive the report titled “Formation of Ward Committees” dated 10 December 2014.

b) Determine that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Appoints four ward committees – Mararoa-Waimea, Winton-Wallacetown, Waiau-Aparima and Waihopai-Toetoes – under clause 30, Schedule 7 of the Local Government Act 2002.

e) Give the four ward committees delegated authority to review and make recommendations to Council on draft Long Term Plan work programmes and estimates.

f) Appoints the following members to each committee:

Mararoa-Waimea: Crs John Douglas, Brian Dillon and the vacant position; Te Anau Community Board chair Ann Carran, Manapouri CDA chair Allan Youldon, Mossburn CDA chair Jim Guyton, Lumsden CDA chair Rob Scott, Athol CDA chair Jonathon Shaw, Garston CDA chair Pam Naylor, Balfour CDA chair Ruby Baird, Riversdale CDA chair Paul Langford, Waikaia CDA chair Ray Dickson.

Winton-Wallacetown: Crs Lyall Bailey, Gavin Macpherson and Neil Paterson; Winton Community Board chair John McHugh, Wallacetown Community Board chair Shaun Holland, Dipton CDA chair Mike Smith, Limehills-Centre Bush CDA chair David Kean, Browns CDA chair Owen Hudson.

Waiau-Aparima: Crs George Harpur, Rodney Dobson and Stuart Baird; Tuatapere Community Board chair Justin Lewis, Otautau Community Board chair Andre Bekhuis, Riverton-Aparima Community Board chair Blair Stewart, Ohai CDA chair Mark Wishart, Nightcaps CDA chair Bev Evans, Orepuki CDA chair Brian McGrath, Colac Bay CDA chair Lynley Barclay, Thornbury CDA chair Annette Horrell.

Waihopai-Toetoes: Crs Paul Duffy and Julie Keast; Edendale-Wyndham Community Board chair Pam Yorke, Gorge Road and Districts CDA chair Ray Waghorn, Tokanui CDA chair Todd Lyders, Woodlands CDA chair Janelle Ladbrook.

Content

Background

3 The representation review in 2012-2013 established five wards in the Southland District from which councillors would be elected. The various community boards and CDAs were also incorporated into these wards. After the 2013 local government election, ward committees were established to promote liaison between the councillors and the community boards and community development area (CDA) subcommittees. These ward committees were for Mararoa-Waimea, Winton-Wallacetown, Waiau-Aparima and Waihopai-Toetoes. One was not established for Stewart Island-Rakiura as there is only the one community board and the councillor goes to those meetings.

Issues

4 The ward committees were set up to promote liaison and working together on ward issues and budgets. The committees, thus, need to be appointed officially under clause 30, Schedule 7 of the Local Government Act 2002 so that they can make decisions, including making recommendations to Council on budgets and then managing those budgets.

Factors to Consider

Legal and Statutory Requirements

5 Clause 30, Schedule 7 of the Local Government Act 2002 sets out Council’s power to appoint committees, subcommittees and other subordinate decision-making bodies. Council can appoint any of the above that it considers appropriate

Community Views

6 This structure established as a result of the representation review reflects communities of interest and the feedback received during the process. All members on the committees are community representatives.

Costs and Funding

7 There is no cost to appoint the ward committees.

Policy Implications

8 Ward committees are a mechanism to enable further feedback from elected members on issues affecting the entire ward. The function of ward committees is to provide recommendations on various issues. The final decision on any budgetary or policy issue will remain with Council.

Analysis

Options Considered

9 There are two options available – to officially appoint the committees or not to appoint them and have them as an informal working group.

Analysis of Options

Option 1 – Officially appoint the ward committees

Advantages

Disadvantages

· Official committee of Council

· Transparency and accountability

· Clarity of roles

· Ability to make decisions and recommendations to Council.

· None

Option 2 – Keep ward committees as informal working group

Advantages

Disadvantages

· Informality

· Lower requirements for reporting and record-keeping

· Lack of transparency

· Possibility the role of committees may not be clear

Assessment of Significance

10 The proposal to formalise ward committees is a procedural matter. In practice the intent in establishing the ward committees was for elected members to work together across the ward and this has been happening, so this is not a significant change in current practice, rather just a clarification and formal recognition of roles.

Recommended Option

11 It is recommended that Council appoint the four ward committees as official committees of Council.

Next Steps

12 If this is approved, the ward committees will become part of Council structure. Terms of reference and delegations will be drafted for consideration by Council. In the interim it is recommended that the committees be given delegated authority to review and make recommendations to Council on the content of the draft 2015 Long Term Plan.

Attachments

There are no attachments for this report.

Council

10 December 2014

SOUTHLAND DISTRICT COUNCIL

COUNCIL MEETING

8 OCTOBER 2014

Minutes of a Council meeting of the Southland District Council held in the Council Chambers, 15 Forth Street, Invercargill on Wednesday, 8 October 2014 at 10.35 am.

PRESENT: Mayor G Tong, (Chairperson), Crs L Bailey, S Baird, B Dillon,
R Dobson, J Douglas, P Duffy, G Harpur, A Jukes, J Keast, N Paterson and G Macpherson.

IN ATTENDANCE: Mr S Ruru - Chief Executive

Mr I Marshall - Group Manager Services and Assets

Ms S Cuthbert - Manager Policy and Planning

Mrs L Pagan - Communications and Governance Manager

Miss M Fyffe - Committee Advisor

Mrs S Marrah - Finance Manager

Ms S Oliver - Planning and Reporting Analyst

Mr I Lothian - Audit New Zealand Director

Press

1.0 APOLOGIES

An apology was received from Cr Ford.

Moved Cr Dillon, seconded Cr Paterson

and resolved that the apology be received.

2.0 NOTIFICATION OF URGENT BUSINESS

There were no items of urgent business.

3.0 MISCELLANEOUS ITEMS

There were no miscellaneous items.

4.0 PUBLIC FORUM

There were no requests to speak under this section.

5.0 MINUTES

5.1 There were no minutes for this section of the meeting.

6.0 REPORTS

6.1 ADOPTION OF 2013/2014 ANNUAL REPORT

140/25/1/10

r/14/9/14275

r/14/9/13033

Report by Miss S Oliver and Mrs S Marrah dated 25 September 2014.

Moved Cr Duffy, seconded Cr Dobson

and resolved that the Southland District Council Annual Report and accompanying summary document for the year ended 30 June 2014 year be received.

Mrs Marrah welcomed and introduced Mr Ian Lothian, the Appointed Auditor representing Audit New Zealand.

Mrs Marrah introduced the Annual Report, explaining it was a means for Council to account and report to the community on its performance of the preceding financial year - in this case from 1 July 2013 to 30 June 2014. It reported on outcomes, performance measures (both financial and non-financial) and provided information on the result achieved against budgeted results. This Annual Report reported against the Annual Plan (which is based on the second year of the Council’s Long Term Plan
2012-2022).

Mrs Marrah advised a draft Annual Report was presented to a Council workshop on 17 September 2014 for its consideration and comment. Comments from this workshop had been noted and incorporated into the Annual Report.

A summary document that accompanied the Annual Report was distributed during the meeting (refer Appendix 1), along with a copy of the Independent Auditor’s Report (refer Appendix 2). Mrs Marrah explained the Summary Document would be distributed to all Council’s offices and made available on request. Both the summary document and full Annual Report would be made available on the Council website. The report availability would be advertised on the Saturday edition of The Southland Times on 25 October 2014 (the delay was to allow for the printers to produce the printed versions).

Ms Oliver briefly highlighted the key performance information around Council’s activities, capital projects and performance measures. These were outlined on
page 7 of the Annual Report document.

Statement of Comprehensive Income

The Statement of Comprehensive Income recorded the revenue received and the expenditure incurred by Council. It also recorded changes in the value of Council’s assets. In summary Council’s financial performance was as follows:

	Actual	Budget	Actual Last Year
Total Revenue	$71.1M	$64.5M	$65.1M
Total Expenditure	$63.6M	$67.1M	$61.8M
Operating Surplus/(Deficit)	$7.6M	($2.6M)	$3.3M
Gain/(Loss) on Asset revaluations	($11.2M)	$44.1M	$21.5M
Total Comprehensive income	($3.6M)	$41.5M	$24.8M

Total revenue was $6.6 million above budget as a result of AMCT grants
($2.1 million), additional forestry sales ($0.5 million), forestry revaluation
($0.9 million), vested assets ($1.6 million) and Ministry of Health Grants
($0.9 million). Expenditure was $3.5 million under budget due to lower depreciation ($3.3 million), reduced employee and district plan expenditure ($0.5 and $0.4 million respectively), offset by increased forestry costs associated with harvesting
($0.3 million).

Statement of Financial Position

The Statement of Financial Position (also referred to as the Balance Sheet) recorded the assets Council owned, and how those assets were financed. Liabilities were finance from third parties, for example bank borrowings, and equity was the community’s share of the assets. Key items in the Statement of Financial Position were:

	Actual	Budget	Actual Last Year
Total Assets	$1,402M	$1,473M	$1,404M
Total Liabilities	$11.3M	$11.6M	$10.1M
Total Equity	$1,390M	$1,462M	$1,394M

Statement of Cash Flows

The Statement of Cash Flows recorded the cash that Council received and disbursed. Broadly cash, under financial reporting rules was recorded in three separate categories:

· Operating cash flows - the cash flow related to day-to-day operating activities;

· Investing cash flows - the cash flow received from sale of assets and cash spent on capital assets;

· Financing cash flows - the cash flow received from any borrowings and the cash flow disbursed in repaying borrowings.

Overall Council’s cash position improved by $2.7M (rounded). In summary, the cash flows recorded within these categories were as follows:

Operating cash flows	Actual	Budget	Actual Last Year
Cash surplus/(deficit)	$21.0M	$20.8M	$19.9M

Investing cash flows	Actual	Budget	Actual Last Year
Cash surplus/(deficit)	$(18.1)M	$(25.0)M	$(12.8)M

Financing cash flows	Actual	Budget	Actual Last Year
Cash surplus/(deficit)	$(0.02)M	$(0.3)M	$(0.13)M

Much of the operating cash surplus was applied to investing capital and infrastructural assets, reflecting a substantial outflow in investing cash outflows.

Mr Lothian spoke on behalf of Audit team to give his perspective, remarking on the positive engagement of Council staff and management. Mr Lothian thanked all those involved in the Audit process.

Mr Lothian reported on the Income Statement, remarking it was good to be on the right side of the ledger and that it was encouraging to see Council was managing its expenses. Referring to the balance sheet of assets and liabilities, Mr Lothian advised Council was in a healthy position, with little to borrowings.

The only issue to arise was the spike in expenses with regards to the Roading network that was due to renewals, replacement and maintenance. Mr Lothian remarked that Council was aware of this and was assessing the situation.

Mr Lothian commented it was good to see progress being made on Council’s projects such as the Te Anau Wastewater Scheme, the Stewart Island Visitor Levy and the Around the Mountains Cycle Trail.

Mr Lothian concluded, reporting that his Audit opinion, was a clean one
(ie: unmodified opinion).

It was remarked this was an excellent result for Counci. It was acknowledged that this was due to the excellent work done by Council staff and Mr Lothian’s team.

Moved Cr Duffy, seconded Cr Dillon

and resolved:

(a) That subject to any changes agreed at the meeting that the
Southland District Council Annual Report for the year ended 30 June 2014 year be adopted.

(b) That subject to any changes agreed at the meeting that the
Southland District Council Annual Report Summary Document for the year ended 30 June 2014 be adopted.

(c) That Southland District Council resolves to consolidate operating surpluses and fund operating deficits from District Activities for the year ended 30 June 2014 into the District Operations Reserve.

The meeting adjourned at 10.59 am and reconvened at 1.51 pm.

7.0 MEMORANDA

7.1 There were no memoranda for this section of the meeting.

8.0 EXCLUSION OF PUBLIC

Moved Cr Keast, seconded Cr Duffy

and resolved that pursuant to Section 48(1) of the Local Government Official Information and Meetings Act 1987 that the public be excluded from the meeting while the following business is transacted:

Proposed Southland District Plan 2012 - Release of Decisions

Sections 7(2)(f)(ii), 7(2)(i), and 7(2)(j)

7(2)(f)(ii) maintain the effective conduct of public affairs arising directly from the need to protect members and staff from improper pressure or harassment;

7(2)(i) enable the Council to carry out negotiations without prejudice or disadvantage (including commercial and industrial negotiations);

7(2)(j) prevent the disclosure or use of official information for improper gain or advantage;

8.1 EXCLUSION OF PUBLIC - STAFF

Moved Cr Keast, seconded Cr Duffy

and resolved that the Council officers and public listed below be permitted to remain at the meeting after the public have been excluded because of their knowledge of:

(a) meeting procedure and/or

(b) the subject matter under consideration.

Chief Executive

Group Manager Environment and Community

Group Manager Services and Assets

Manager - Human Resources

Communications and Governance Manager

Manager - Resource Management

Senior Resource Management Planner

Committee Advisor

9.0 CONFIDENTIAL DECISION RECORDED IN OPEN MEETING

9.1 There were no decisions to be recorded in open meeting.

There being no further business, the meeting was declared closed at 2.12 pm.

C O N F I R M E D:

C H A I R P E R S O N:

D A T E:

Advantages	Disadvantages
· Ownership of assets confirmed.	· Action will be needed to work through the future use or demolition of the building
· Council has control of the future processes	· There is likely to be costs incurred at some stage.

Mayor	Mayor Gary Tong
Deputy Mayor	Paul Duffy
Councillors	Lyall Bailey
	Stuart Baird
	Brian Dillon
	Rodney Dobson
	John Douglas
	Bruce Ford
	George Harpur
	Julie Keast
	Gavin Macpherson
	Neil Paterson

Chief Information Officer	Damon Campbell
Strategy and Policy Manager	Susan Cuthbert
Human Resources Manager	Janet Ellis
Committee Advisor	Maree Fyffe
Group Manager Environment and Community	Bruce Halligan
Group Manager Services and Assets	Ian Marshall
Communications & Governance Manager	Louise Pagan
Chief Executive	Steve Ruru

Advantages	Disadvantages
· No costs incurred by Council	· The buildings are likely to be abandoned and so become Councils problem by default.
·	·