Agenda of Activities Performance Audit Committee

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Notice is hereby given that a Meeting of the Activities Performance Audit Committee will be held on:

Date:

Time:

Meeting Room:

Venue:

Wednesday, 18 March 2015

1pm

Council Chambers
15 Forth Street
Invercargill

Activities Performance Audit Committee Agenda

OPEN

MEMBERSHIP

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

IN ATTENDANCE

Chief Executive	Steve Ruru
Committee Advisor	Fiona Dunlop

Contact Telephone: 0800 732 732

Postal Address: PO Box 903, Invercargill 9840

Email: emailsdc@southlanddc.govt.nz

Website: www.southlanddc.govt.nz

Full agendas are available on Council’s Website

www.southlanddc.govt.nz

1 Apologies

At the close of the agenda no apologies had been received.

2 Leave of absence

At the close of the agenda no requests for leave of absence had been received.

3 Conflict of Interest

Councillors are reminded of the need to be vigilant to stand aside from decision-making when a conflict arises between their role as a councillor and any private or other external interest they might have. It is also considered best practice for those members in the Executive Team attending the meeting to also signal any conflicts that they may have with an item before Council.

4 Public Forum

Notification to speak is required by 5pm at least two days before the meeting. Further information is available on www.southlanddc.govt.nz or phoning 0800 732 732.

5 Extraordinary/Urgent Items

To consider, and if thought fit, to pass a resolution to permit the Council to consider any further items which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded.

Such resolution is required to be made pursuant to Section 46A(7) of the Local Government Official Information and Meetings Act 1987, and the Chairperson must advise:

(i) The reason why the item was not on the Agenda, and

(ii) The reason why the discussion of this item cannot be delayed until a subsequent meeting.

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a) That item may be discussed at that meeting if-

(i) That item is a minor matter relating to the general business of the local authority; and

(ii) the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b) no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

6 Confirmation of Minutes

6.1 Meeting minutes of Activities Performance Audit Committee, 18 February 2015

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Activities Performance Audit Committee

OPEN MINUTES

Minutes of a meeting of Activities Performance Audit Committee held in the Council Chambers, 15 Forth Street, Invercargill on Wednesday, 18 February 2015 commencing at 1.02pm.

present

Chairperson	Lyall Bailey
	Mayor Gary Tong
Councillors	Stuart Baird
	Brian Dillon
	Rodney Dobson
	John Douglas
	Bruce Ford
	Julie Keast
	Gavin Macpherson

IN ATTENDANCE

Chief Executive Steve Ruru, Group Manager Environment and Community Bruce Halligan, Group Manager Services and Assets Ian Marshall, Chief Information Officer Damon Campbell, Communications & Governance Manager Louise Pagan, Committee Advisor Fiona Dunlop, Project Engineer Mark Simpson (Item C7.1 Contract 14/45 - Southland District Council Regional Desludging)

1 Apologies

Apologies were received from Councillors Duffy, Harpur and Paterson.

Moved by Cr Dobson, seconded by Cr Dillon and resolved:

That the Activities Performance Audit Committee accept the apologies.

2 Leave of absence

There were no requests for leave of absence.

3 Conflict of Interest

There were no conflicts of interest declared.

4 Public Forum

Vin Smith, Director of Policy, Planning and Regulatory, and Anita Dawe, Policy and Planning Manager of Environment Southland presented an update to the Committee on the “Water and Land 2020 & Beyond” project.

They advised that the “Water and Land 2020 & Beyond” is Southland’s response to water quality and quantity issues, partnership project with Ngai Tahu ki Murihiku, draft water and plan and a platform for limit setting on a catchment by catchment basis. A copy of the presentation is attached to the minutes as appendix 1.

5 Extraordinary/Urgent Items

There were no Extraordinary/Urgent items.

6 Confirmation of Minutes

Resolution

Moved by Cr Ford, seconded by Cr Keast and resolved:

That the Activities Performance Audit Committee confirm the minutes of Activities Performance Audit Committee, 28 January 2015 as a true and correct record of that meeting.

Public Excluded

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

Resolution Moved by Cr Ford, seconded by Cr Dobson and resolved: That the Activities Performance Audit Committee exclude the public from the following part(s) of the proceedings of this meeting. C7.1 Contract 14/45 - Southland District Council Regional Desludging C7.2 Public Excluded Minutes of the Activities Performance Audit Committee Meeting dated 28 January 2015 The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48(1) for the passing of this resolution
Contract 14/45 - Southland District Council Regional Desludging	s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. The report reviews tenders submitted for Contract 14/45 including prices..	That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.
Public Excluded Minutes of the Activities Performance Audit Committee Meeting dated 28 January 2015	7(2)(a) - protect the privacy of natural persons, including that of deceased natural persons 7(2)(f)(ii) - maintain the effective conduct of public affairs through the protection of such members, officers, employees, and persons from improper pressure or harassment; s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. 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. s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. Commercial sensitivity around audit fee proposal.	That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.

Permit the Chief Executive, Group Manager Environment and Community, Group Manager Services and Assets, Chief Information Officer, Communications & Governance Manager, Committee Advisor and Project Engineer to remain at this meeting, after the public has been excluded, because of their knowledge of C7.1 Contract 14/45 - Southland District Council Regional Desludging and C7.2 Public Excluded Minutes of the Activities Performance Audit Committee Meeting dated 28 January 2015. This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to that matter because of their specialist knowledge.

The public were excluded at 1.31pm.

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available unless released here.

The meeting returned to open session at 1.58pm.

The meeting closed at 1.58pm CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Activities Performance Audit Committee HELD ON WEDNESDAY 18 FEBRUARY 2015.

DATE:...................................................................

CHAIRPERSON:...................................................

Activities Performance Audit Committee

18 March 2015

Background

This report outlines the financial results to 31 January 2015. Within this report, no significant issues have been identified that raise any concerns for Council relating to the end of year financial position.

Percentage of year gone: 58%.

OVERVIEW

Management Accountant - January Finance Overview

As in prior years, all budget managers have been instructed to have a strong focus on their budget and expenditure items that they can control in the current economic climate and this report shows no significant issues.

The financial commentary centres on the summary sheet which draws the totals from each of the key sections together. Although you are able to obtain more detailed key variance explanations from senior managers in these sections, these will be summarised below, concentrating on the YTD results.

Income

Overall for the YTD, income is 3% ($1.128M) under budget. This is primarily due to NZTA funding being $1.47M under budget. This is offset by Assets and Services $121K and Environment and Community Group $94K.

Key variances are as follows:

The Council and Councillors’ activity is 1% ($18K) over budget for the year-to-date.

Other activities income is 11% ($124K) over budget for the year-to-date.
This is predominantly due to the timing of income received from interest on investments.

Overall Services and Assets income (excluding roading) is tracking $121K (1%) above
year-to-date budget. This is due to:

• Engineering Consultants is $19K (4%) under budget. As income is fully recovered and driven by expenditure levels the reduced expenditure impacts directly on income.

• Forestry Income is $108K (6%) over budget. This is predominantly due to harvesting in Waikaia $935K over budget. This is offset by Dipton Forest $460K and Ohai Forest $366K under budget.

• Work Schemes (CTF) is $22K (13%) over budget year-to-date, due to the timing of job completion.

Within the Chief Executive section, income received is $39K (2%) under budget due to:

• Chief Executive - $43K (13%) under budget due to the timing of rates penalties.

• Human Resources - $63K or 20% over budget, as this is internally funded this is a result of increased expenditure.

• Around the Mountains Cycle Trail - $51K (4%) over budget due to timing on invoicing the Ministry, in earlier years. Council has completed the invoicing relating to Stage 1.

Within the Corporate and Financial Services Group, year-to-date income is 5% ($194K) under budget. As the majority of the business units in this activity are internally funded, this reflects lower expenditure for the year-to-date.

Within the Environmental and Community Group, year-to-date income is $94K (2%) over budget.

Within the Roading and Transport section, income is 8% ($1.25M) under budget, which is predominantly due to the timing of planned works and associated New Zealand Transport Agency (NZTA) funding.

Expenditure

Overall for the year-to-date, expenditure is 6% ($1.75M) under budget.

The key variances are as follows:

The Council and Councillors’ activity is 1% ($23K) under budget primarily due to Grant Payments yet to be requested and lower Councillor salary costs.

Other Activities expenditure is 42% ($382K) under budget as the calculation of interest on reserves is calculated as a year-end entry.

The Services and Assets Group is 11% ($1.24M) under budget. Key variances are as follows:

• Council Property is $29K (5%) over budget predominantly due to maintenance costs.

• District Water is $484K (26%) under budget as there has been minimal capital expenditure year-to-date. A number of water projects are being started currently.

• District Sewerage is $763K (27%) under budget. Year-to-date there has been minimal capital expenditure due to the timing of the Te Anau sewerage scheme being completed.

• Waste Management is $30K (1%) over budget.

• Water Services is $80K (10%) under budget predominately due to project consultant costs ($77K), consultant costs ($35K) and staff costs ($16K). This is offset by software licence fees incurred ($39K).

The Chief Executive activity is 2% ($19K) over budget.

Corporate and Financial Services Group is 9% ($347K) under budget. This is predominantly due to reduced staff costs. Currently no projects have been identified to use the funds identified in relation to the Our Way Southland Community Outcomes.

The Environment and Community Group is 5% ($204K) under budget. This is predominantly due to expenditure on the district plan being lower than anticipated at this stage of the year.

Roading expenditure is currently 7% ($430K) over budget. This is due to Network and Maintenance costs which are over budget. These are to be monitored closely throughout the year but please note that it is forecast that the Repairs, Maintenance and Capital Expenditure will be over budget at year end. This is primarily driven by underspends in previous years and Council’s key objective of maximising New Zealand Transport Agency approved funding.

Capital Expenditure

Overall for the year-to-date, capital expenditure is 27% ($3.18M) under budget.
The key variances are as follows:

• Services and Assets are under budget by 77% ($640K) with minimal capital expenditure to date.

• Capital Expenditure in the Chief Executive activity is over budget by $40K (3%)
predominately due to vehicle replacement costs $58K. The Around the Mountains Cycle Trail capital expenditure is currently on budget.

• Corporate and Financial Services is under budget by 59% ($108K) with minimal capital expenditure to date.

• Environment and Community is over budget by 90% ($100K) for the
year-to-date primarily due to vehicle replacement costs.

• Roading capital expenditure is under budget by 27% ($2.57M) due to timing on planned road renewal and pavement renewal.

Funding Adjustments

Funding adjustments are significantly under budget as typically ‘balancing’ of business units is not undertaken until the end of the financial year.

Journals are being processed for reserve transfers, predominantly in relation to vehicle movements, and loan draw-downs (ie for project funding), throughout the year at the request of budget managers.

Key Financial Indicators

*Indicator*	Target*	*Actual*	*Variance*	*Compliance*
External Funding: Non rateable income/Total income	> 39%	37%	-2%	x
Working Capital: Current Assets/Current Liabilities	>1.09	2.41	1.32	a
Debt Ratio:** Total Liabilities/Total Assets	<0.73%	0.78%	0.05%	x
Debt To Equity Ratio: Total Debt/Total Equity	<0.01%	0.00%	0.01	a

*All target indicators have been calculated using the 2014/15 Annual Plan figures.

** Excludes internal loans.

Financial Ratios Calculations:

Non Rateable Income

Total Income

External Funding:

This ratio indicates the percentage of revenue received outside of rates. The higher the proportion of revenue that the Council has from these sources the less reliance it has on rates income to fund its costs.

Current Assets

Current Liabilities

Working Capital:

This ratio indicates the amount by which short-term assets exceed short term obligations. The higher the ratio the more comfortable the Council can fund its short term liabilities.

Total Liabilities

Total Assets

Debt Ratio:

This ratio indicates the capacity of which the Council can borrow funds. This ratio is generally used by lending institutions to assess entities financial leverage. Generally the lower the ratio the more capacity to borrow.

Debt to Equity Ratio:

Total Debt

Total Equity

It indicates what proportion of equity and debt the Council is using to finance its assets.

Activities Performance Audit Committee

18 March 2015

CHIEF EXECUTIVE COMMENTARY

For the year-to-date, income is under budget by $39K (2%). Expenditure is over budget by $19K (2%), therefore resulting in a net year-to-date position of $58K under budget.

Chief Executive

Income in this business unit is $44K (13%) under budget this is due to the timing of rates penalties. Expenditure is $27K (9%) under budget, primarily due to staff costs $61K under budget. This is offset by project consultant fees $31K.

Civil Defence

Income is on budget. Expenditure is $8K (4%) over budget due to Emergency Management Southland Grant.

Human Resources

Income is $63K (20%) under budget. Expenditure year-to-date is $50K (16%) over budget, due to training costs $56K. As this activity is internally funded, the increased expenditure impacts directly on income.

Around the Mountains Cycle Trail

Income is $51K (4%) over budget due to timing on invoicing the Ministry. No further invoicing is due to be completed in relation to Stage 1. Expenditure is $12K over budget and capital expenditure over budget by $11K due to timing of work being completed.

Rural Fire Control

Income and Expenditure is on budget for the year.

Shared Services Forum

Income is $24K (71%) over budget due to the timing on contributions. Expenditure for
year-to-date is under budget by $21K (68%), with low activity for the year.

Stewart Island Visitor Levy

Income is $32K (34%) under budget due to the seasonal nature of visitors to the Island. Expenditure is $3K under budget as the first allocation meeting is set to occur later in the financial year.

Activities Performance Audit Committee

18 March 2015

Council and Councillors’ Commentary

For the year-to-date, income is $18K (1%) over budget. Expenditure is under budget by
$23K (1%), therefore resulting in a net year-to-date position of $41K over budget.

Council and Councillors

Income is $11K (3%) over budget. Expenditure is under budget by $19K (4%) primarily due to Councillors’ salaries of $6K.

Council Contributions/Grants

Income is on budget for the year-to-date. Expenditure is under budget by $14K (5%) due to grant payments yet to be requested.

Council Elections

Income is on budget. Expenditure is $1K over budget due to the Mararoa-Waimea Ward Councillor election. There are further costs to be incurred once the election is complete in February.

Council Water and Sewerage Loans

Income and expenditure is on budget for the year-to-date.

International Relations Committee

Income is on budget for the year-to-date. Expenditure is $2K (37%) under budget due to the timing of committee activities.

Museum

Income is on budget. Expenditure is over budget $30K (11%) due to timing on the Museum Trust Board Levy.

Regulatory - Non-Recoverable

Income is $8K (13%) over budget for the year-to-date. Expenditure is under budget by
$20K (41%) as a minimal expenditure to date.

Venture Southland

Income and Expenditure is on budget for the year-to-date.

Activities Performance Audit Committee

18 March 2015

CORPORATE AND FINANCIAL SERVICES’ COMMENTARY

Income for the year-to-date is $194K (5%) under budget. Expenditure for the year-to-date is $347K (9%) under budget. The net result for the year-to-date is a surplus of $90K against a forecasted deficit of $62K, a positive variance of $152K.

Community Outcomes

Income and expenditure is under budget $26K as no expenditure projects have been identified in the current period. Funds are available for projects relating to the Our Way Southland Community Outcomes.

Corporate Planning

Income is $31K (11%) under budget. Expenditure is $22K (9%) under budget due to employee costs $27K below budget this is offset by Long Term Plan (LTP) costs of $27K. As this activity is internally funded the reduced expenditure impacts directly on income.

Financial Services

Income is $198K (16%) under budget. Expenditure is $247K (19%) under budget; this is predominantly due to underspending in staff costs $143K and Insurance $44K. This is offset by consultant costs of $33K and Valuation Roll Maintenance of $14K. As this activity is internally funded the reduced expenditure impacts directly on income.

Information Management

Income is $87K (6%) over budget due to internal computer hire $24K and internal photocopying $29K. Expenditure is $8K (1%) over budget.

Secretarial Services

Income is $5K (2%) under budget. Expenditure is $5K (2%) under budget predominately due to advertising costs of $3K. As this activity is internally funded, the reduced expenditure impacts directly on income.

Strategy/Communication

Income is $21K (5%) under budget. Expenditure is underspent by $38K (9%) predominately due to staff costs $31K and communication costs $9K below budget. As this activity is internally funded the reduced expenditure impacts directly on income.

Activities Performance Audit Committee

18 March 2015

ENVIRONMENT AND COMMUNITY COMMENTARY

Overall January 2015 monthly income for the Environment and Community Group was $4K (1%) ahead of budget ($573K actual v $569K budget), as shown on the attached report.

Key features of this month’s income were that Animal Control Income was $16K (261%) ahead of budget due to income received from the Courts and infringement notices. Environment and Community Administration was $22K ahead of budget (124%) although this later item was due to an internal journal transfer which did not happen from the previous month. However, Building Consent Income was $18K (14%) below budget, reflecting consents lodged during the month, and Resource Consent Processing income was
$13K (20%) below budget - although there are some significant costs from recent major resource consents processed which are yet to be invoiced.

Overall January 2015 monthly expenditure for the Environment and Community Group was $28K (5%) below budget ($529K actual v $557K budget).

While expenditure in most departments was running fairly close to budget, the
Resource Planning/Policy area was significantly underspent by $39K (69%) relating to the timing of District Plan work, and the Animal Control area was $11K (33%) overspent, due to additional on call and other staff response costs over the New Year and early January holiday period and purchase of some additional personal protective equipment.

Overall YTD Summary

Overall YTD Income at the end of January 2015 for the 2014/15 financial year is
$94K (2%) ahead of budget, at $4.4M actual versus $4.3M budget.

Overall YTD Expenditure at the end of January 2015 of the 2014/15 financial year is $204K (5%) below budget at $3.7M actual versus $3.9M budget.

It is noted that within the group there are several large debtors where costs have been invoiced but these are yet to be paid. This could impact on budgetary position in the
group in the second half of the 2014/15 year. As referred to above, there are also some significant resource consent processes completed recently where costs are yet to be invoiced to applicants.

Month by month development activity in the District is still quite up and down, rather than there being any sustained trend.

The Resource Planning/Policy area is significantly under budget year-to-date, but it is likely that further costs will be incurred in the Environment Court appeal/mediation process from March 2015, with nine appeals having been received.

Activities Performance Audit Committee

18 March 2015

STRATEGIC TRANSPORT

Overall Financial Performance

A continued strong focus on making sure we fully utilise NZTA approved funding along with optimising "value for money" remains a challenge.

• Council Transport overheads are generally tracking in line with budgets or slightly under with the exception of Professional Services (roading rate review).

• It is forecasted that our Operations and Maintenance costs will be over budget at year end. This will be partially offset by underspends in capital expenditure and underspends in the previous two years.

• Council Transport Capital Expenditure is under budget primarily due to timing. Physical Works is expected to ramp up over the next few months. Significant amount of capital expenditure on the Assets Bridges is to occur this financial year (Minor Improvements to maximise funding). It is expected that some of our resealing invoicing will occur in the coming months which will realign our capital budgets.

Please note that we are forecasting that our Repairs, Maintenance and Capital Expenditure will be over budget at year end. This is primarily driven by underspends in previous years and our key objective of maximising New Zealand Transport Agency approved funding.

*Key*
	Largely on Track
	Monitoring
	Action Required

Financial Tracking vs Plans
YTD	Forecast	Annual Plan	NZTA Approved
*58%*	*55%*	*57%*	*60%*

Maintenance and Operations Commentary:

Maintenance and Operation cost are currently over budget this is due to:

• Unbudgeted Emergency Works costs due to slip repairs (Ohai Clifden and Stewart Island Slips).

• A holistic approach to Maintenance Management has seen Sealed Pavement and Unsealed Pavement Maintenance being over budget but offset with underspends in other activities.

* Note that Council can only claim 30% of urban drainage. Unsubsidised work has being excluded from this forecast.

Actions required:

Council intends to shift NZTA funding from our renewal programme to help fund the gap between our 2014/15 forecast and NZTA approved funding. This will be done once the majority of our renewal programme has been tendered (late January). Transport does not anticipate any issues in this being approved. This has been delayed as we await all our capital works projects being firmed up.

Renewals and Minor Improvements:

Financial Tracking vs Plans
YTD	Forecast	Annual Plan	NZTA Approved
*58%*	*43%*	*43%*	*41%*

Renewals and Minor Improvement Commentary:

The forecast is lower than actuals primarily due to the timing of projects. Council expects that expenditure will increase in the next few months as the construction season gets underway. Some unsealed metalling, drainage work and some rehabilitation work is underway. Bitumen costs are very volatile at the moment which has caused some frustrations in the management of reseals and also other projects in what is to be deferred and brought forward.

Actions required:

No funding action required at this stage. The forecasted shortfall in NZTA approved expenditure will help fund the forecasted overspend in maintenance and renewals.

Three Year Programme:

It is expected that the Special Purpose Roads expenditure will exceed approved amounts. We will be working with NZTA to get more funding approval. This budget is managed by NZTA highways and is 100% funded from NZTA.

Other Key Projects:

Local share has been partially funded by previous year underspends in our bridge renewal budgets and other renewal underspends.

Activities Performance Audit Committee

18 March 2015

Description: sdclogo

Contract Extension - Southland Streetlight Maintenance Contract 09/42

Record No: R/15/2/3763

Author: James McCallum, Roading Engineer

Approved by: Ian Marshall, GM - Services and Assets

☐ Decision ☒ Recommendation ☐ Information

Introduction & Background

1 Otago Power Services was awarded the Southland Streetlight Maintenance contract (09/42) on 28 January 2010 with a commencement date of 1 March 2010. The contract was for an initial period of three years (expiring 12.00 midnight 28 February 2013). The contract made provision for a two year rollover, which was adopted in March 2013.

2 The two year rollover expired at midnight 28 February 2015. As such, the Strategic Transport Department is proposing an extension of a further 12 months.

3 Throughout the five year period to date, communication between Council and Otago Power Service has been excellent. Where service delays were inevitable or on the rare occasion timeframes could not be met, Council was notified accompanied by a valid explanation.

4 Otago Power Services has adequately delivered on the requirements as set out in the contract and on this basis the Strategic Transport Department recommend the implementation of a 12 month extension.

Proposal

5 To extend the contract by an additional year, the original contract base rates will be adjusted in accordance with New Zealand Transport Agency’s Cost Adjustments Factors, Table 1, Part 1 - Maintenance. These costs fit within the current budget allocations.

6 A contract extension has the following advantages:

· Allows time to confirm funding for an LED replacement programme from NZTA. Upon confirmation of funding, this could allow for a potential replacement programme to be incorporated into a new maintenance contract. A timeframe extension will also help identify what the future maintenance requirements may be for LED lighting.

· Allows time to investigate the current LED market as to what products are available, cost effective options and the suitability of LED lights for the SDC network.

Note: LED streetlighting offers considerable savings in both energy and maintenance expenditure on the network compared with the current technology we have in place. The new LED technology is still being rolled out to the New Zealand market and supplier options are currently being investigated by the Strategic Transport Department.

· Allows time for the Delivery of Service review to be carried out. This review is a requirement of Section 17A of the Local Government Act. The review has been triggered by the need to renew the roading maintenance contract for the south east area. The scope of the review will include the provision of street lighting.

7 A letter has been sent to NZ Transport Agency for its input on the proposed contract extension. Indications from NZTA are that they are in agreeance with the SDC proposal.

Recommendation

That the Activities Performance Audit Committee:

a) Receives the report titled “Contract Extension - Southland Streetlight Maintenance Contract 09/42” dated 10 March 2015.

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 extension of the Southland Streetlight Maintenance Contract 09/42 contract to 28^th February 2016.

Attachments

There are no attachments for this report.

Activities Performance Audit Committee

18 March 2015

Description: sdclogo

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

Recommendation

That the public be excluded from the following part(s) of the proceedings of this meeting.

C9.1 Public Excluded Minutes of the Activities Performance Audit Committee Meeting dated 18 February 2015

C9.2 Rating Sale 32A Redan Street, Wyndham

C9.3 Road Maintenance Contracts Extensions

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48(1) for the passing of this resolution
Public Excluded Minutes of the Activities Performance Audit Committee Meeting dated 18 February 2015	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person. s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. s7(2)(f)(ii) - The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees and persons from improper pressure or harassment. s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage.	That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.
Rating Sale 32A Redan Street, Wyndham	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person. s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.
Road Maintenance Contracts Extensions	s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.