Agenda of Activities Performance Audit Committee

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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, 9 March 2016 at 10.30am.

present

Chairperson	Lyall Bailey
Mayor	Gary Tong
Councillors	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, Group Manager Environmental Services, Bruce Halligan, Group Manager Community and Futures, Rex Capil, Chief Information Officer, Damon Campbell, Chief Financial Officer, Anne Robson, Communications Manager, Louise Pagan, Team Leader Governance, Chris Dolan, Committee Advisor, Alyson Hamilton, Briar Babbington.

1 Apologies

There were no apologies received.

2 Leave of absence

There were no requests for leave of absence received.

3 Conflict of Interest

There were no conflicts of interest declared.

4 Public Forum

There were no members of the public seeking speaking rights in the Public Forum section of the meeting.

5 Extraordinary/Urgent Items

There were no Extraordinary/Urgent items.

6 Confirmation of Minutes

Resolution

Moved Cr Ford, seconded Cr Keast and resolved:

That the minutes of Activities Performance Audit Committee, held on 27 January 2016 be confirmed as a true and correct record.

7 Reports

7.1

Submission on Proposed changes to Vehicle Dimensions and Mass Rule

Record No: R/16/2/1514

Report by Joe Bourque, Strategic Manager Transport, regarding a submission forwarded by Council concerning the Proposed Changes to the Land Transport Rule; Vehicle Dimensions and Mass Rule, was tabled.

Strategic Manager Transport, Joe Bourque, Roading Asset Management Engineer, Hartley Hare and John Laskewitz (MWH) were in attendance for this item.

1 Mr Hare advised the purpose of the report is to provide a summary of the proposed changes to the Land Transport Rule: Vehicle Dimensions and Mass 2002 and provide this Committee with a summary of the submission lodged with the New Zealand Transport Agency.

3 Mr Hare explained the submission supports some of the changes proposed but opposes those which are expected to adversely impact on the Southland District Council roading network.

4 Mr Hare informed the discussion document focuses on three main areas. These are the general requirements for dimension and mass limits, permitting and access condition, and management of overdimension loads.

5 Mr Hare commented that the Southland District Council generally support the aims of giving operators access to new, safer, more efficient vehicles with hopefully better environmental and safety outcomes.

6 Mr Hare explained how this is done needs to be better balanced against the increased cost to Road Controlling Authorities (RCA) as on local roads, Road User Charges (RUC) only pay for half the damages, ratepayers end up paying for the rest.

7 The Committee was advised the total cost and more specifically the cost to ratepayers in general is a fundamental aspect not addressed by the consultation document.

8 Mr Hare informed the submission drafted by the Transport Team supports some of the proposed changes such as increase in vehicle height and reduction in weight tolerance around enforcement from 1.5 Tonne to 500kg.

9 Mr Hare advised the submission opposes the proposal on increasing the mass limits for front steer axles from 10.8 Tonne to 11 Tonne as these already cause a disproportionate amount of pavement damage.

10 The meeting noted the submission also opposes the removal of 50MAX permitting without inclusion of the standard SDC conditions. The submission does propose that this could be reviewed provided there is an improved mechanism for more accurately collecting and distributing RUC’s based on actual damage caused.

11 Mr Hare advised the consultation paper does recognise the effect on weak roads and structures from vehicles with higher axle mass. The effect on these roads may result in more rapid failure of the pavement.

12 Members were advised a copy of the submission lodged by the Transport Team is provided for the Committee’s information.

Mr Bourque commented that favourable feedback has been received from the Council submission.

Councillor Dillon queried the reference to agricultural vehicles, tractors, trailers in the submission.

In response Mr Laskewitz advised that the VDAM review needs to look at bringing all heavy vehicles which use the public roads under the RUC system as currently very large agricultural vehicles, trailers carry large loads over significant distances without having to pay for the costs they impose on the network. He added it is not so much the weight of the vehicles but the width of the vehicles being the issue.

Resolution

Moved Cr Dobson, seconded Cr Kremer and resolved:

That the Activities Performance Audit Committee:

a) Receives the report titled “Submission on Proposed changes to Vehicle Dimensions and Mass Rule” dated 25 February 2016.

b) Endorses the submission on the Submission on Proposed changes to Vehicle Dimensions and Mass Rule.

7.2	Contract Extension - Southland Streetlight Maintenance Contract 09/42 Record No: R/16/2/1561
	Report by Joe Bourque, Strategic Manager Transport, regarding an extension to the Southland Streetlight Maintenance Contract 09/42, was tabled. Strategic Manager Transport, Joe Bourque and Roading Asset Management Engineer, Hartley Hare were in attendance for this item. Mr Hare advised the purpose of the report is to seek Committee consideration to extend the Southland District Council’s Streetlight Maintenance Contact (09/42) with Council’s current contractor to cover all maintenance aspects of the streetlight and pole network across the Southland region. 13 Mr Hare explained Otago Power Services was awarded the Southland District Council’s Streetlight Maintenance Contract (09/42) on 28 January 2010 with a commencement date of 1 March 2010. 14 He added 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. 15 Mr Hare advised the two-year rollover expired at midnight 28 February 2015. A 12 month extension of this contract was negotiated with the contractor and approved by NZTA. This current extension will expire on 1 March 2016. 16 The meeting was advised throughout the six year period to date, communication between Council and Otago Power Services 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. 17 Mr Hare commented that 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 further 12 month extension. 18 Members noted Council have been notified by Otago Power Services that they have been purchased by Powernet Ltd. Otago Power Services will be amalgamated into the Powernet business at the end of March 2016. It is expected this amalgamation will have no effect to the service being provided. 19 Councillor Keast commented on the Light Emitting Diode (LED) technology and whether Council is keeping up with overseas technology. Mr Hare responded advising Council are investigating the current LED market to determine best products.

	Resolution Moved Cr Kremer, seconded Cr Duffy and resolved: That the Activities Performance Audit Committee: a) Receives the report titled “Contract Extension - Southland Streetlight Maintenance Contract 09/42” dated 1 March 2016. 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 Otago Power Services effective from 29 February 2016 to 1 March 2017.

7.3	Foveaux Alliance Contract Number 06/26 Extension to July 2017 Record No: R/16/1/1386
	Report by Joe Bourque, Strategic Manager Transport, regarding the Foveaux Contract Number 06/26 Extension to July 2017, was tabled. Strategic Manager Transport, Joe Bourque and Roading Asset Management Engineer, Hartley Hare were in attendance for this item. Mr Bourque advised the purpose of the report is to seek the Committee’s consideration to a one year extension of the current Foveaux Road Maintenance Alliance Contract (number 06/26). Mr Bourque advised this report outlines the recommendation to offer Fulton Hogan a one year extension on the current Foveaux Alliance Contract and aligning the contract expiry dates of all three Alliance Maintenance Contracts. 3 Mr Bourque explained this will create the opportunity to potentially reduce the number of contracts from three to two and allow due consideration of potential contract boundaries.

	Resolution Moved Cr Dillon, seconded Cr Dobson and resolved: That the Activities Performance Audit Committee: a) Receives the report titled “Foveaux Alliance Contract Number 06/26 Extension to July 2017” dated 25 February 2016. 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 one year extension of contract number 06/26, known as the Foveaux Alliance contract with Fulton Hogan effective from 1 July 2016.

7.4	Annual Report 2015/2016 Timetable Record No: R/16/2/2532
	Report by Shannon Oliver, Planning and Reporting Analyst, regarding the Annual Report 2015/2016 Timetable, was tabled. Ms Oliver, Planning and Reporting Analyst, was in attendance for this item. Ms Oliver advised the purpose of the report is to provide the key dates for the Annual Report 2015/2016 timetable. 2 Ms Oliver advised the Annual Report is the key planning document for Council which reports on Council’s performance against the 2015-2025 Long Term Plan. Ms Oliver informed the timetable has been prepared so that adoption of the Annual Report occurs on 28 September 2016. The project team will consist of staff from the Finance, Strategy and Policy and Communications teams. 3 Ms Oliver explained the Annual Report is 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 2015 to 30 June 2016. Ms Oliver added it reports on outcomes, performance measures (both financial and non-financial) and provides information on the result achieved against budgeted results. The meeting was informed the Annual Report is audited by Audit New Zealand which provides with a level of assurance of the consistency and accuracy of the information reported.

	Resolution Moved Cr Macpherson, seconded Cr Paterson and resolved: That the Activities Performance Audit Committee: a) Receives the report titled “Annual Report 2015/2016 Timetable” dated 25 February 2016. 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.

7.5

Financial Report for the period ended 30 November 2015

Record No: R/16/1/1086

Report by Susan McNamara, Management Accountant, regarding the financial report for the period ended 30 November 2015, was tabled.

Ms McNamara, Management Accountant, was in attendance for this item.

Resolution

Moved Cr Paterson, seconded Cr Dillon and resolved:

That the Activities Performance Audit Committee:

a) Receives the report titled “Financial Report for the period ended 30 November 2015” dated 25 February 2016.

7.6

Financial Report for the period ended 31 December 2015

Record No: R/16/2/2595

Report by Susan McNamara, Management Accountant, regarding the financial report for the period ended 31 December 2015, was tabled.

Ms McNamara, Management Accountant, was in attendance for this item.

It was pointed out to the Committee 50% of the financial year is complete and that no issues have been identified that raise any concerns for Council.

Ms McNamara then spoke on matters relating to the income, operating expenditure, capital expenditure, forestry revenue, roading and transport, chief executive account and the balance sheet.

In regards to the balance sheet Councillor Douglas queried the loan to Rural Fire of $700,000 in the month of December 2015 in relation to a fire incident in the Dipton area.

Ms McNamara responded that payment is currently being discussed between the Insurance Company and property owner.

Councillor Douglas reported that in regards to harvesting of the Council’s forest in the Dipton area it is anticipated returns could be better than predicted.

Resolution

Moved Cr Baird, seconded Cr Keast and resolved:

That the Activities Performance Audit Committee:

a) Receives the report titled “Financial Report for the period ended 31 December 2015” dated 25 February 2016.

7.7	Internal Audit Record No: R/16/2/1790
	Report by Sheree Marrah, Finance Manager, regarding an Internal Audit, was tabled. Sheree Marrah, Finance Manager, was in attendance for this item. Mrs Marrah reported that the purpose of this report is to outline to Council the benefits of implementing an internal audit function within Southland District Council and the options available for delivering this service, including participation in a shared internal audit pilot programme being offered by Deloitte. Mrs Marrah advised the internal audit is good practice and is designed to add value and improve an organisation’s operations. Mrs Marrah informed the process of internal audit involves a systematic disciplined approach to evaluate the effectiveness of risk management, internal controls and processes. An internal audit also adds value to the organisation by providing recommendations on where improvements can be made. The meeting was informed Council have been approached by Deloitte to participate in a shared internal audit pilot programme to be rolled out across a number of local authorities across the South Island, which staff are recommending that Council participate in. Mrs Marrah explained the potential use of Deloitte is only one part of a proposed internal audit programme. Council staff are working to compile a draft internal audit plan for consideration by APAC at a future meeting. This plan will address Council’s specific areas of internal audit focus for the future and the planned approach for undertaking the internal audit function for each area of focus (ie whether we will use internal, external or a combination of resources). Councillor Kremer requested that the following items be included in relation to specific areas of the internal audit focus: project management, receiving information in timely manner and reporting of internal targets Mr Ruru requested staff to note these items to be included in the risk assessment areas.

	Resolution Moved Member Tong, seconded Cr Douglas and resolved: That the Activities Performance Audit Committee: a) Receives the report titled “Internal Audit” dated 26 February 2016. 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) Acknowledges the benefit of an internal audit function for Council. e) Requests Council staff to prepare a draft internal audit plan for consideration at a future meeting. f) Agrees to participate in the Deloitte shared internal audit pilot programme, and authorises the Chief Executive to sign the engagement letter dated 18 December 2015 on Council’s behalf. g) Approves unbudgeted expenditure of up to $12,000 + disbursements (GST exclusive) on the shared internal audit pilot programme, to be funded from underspends in the financial services budget.

7.8

Follow-up on Strong Recommendations and Recommendations from 2015 IANZ Reaccreditation Audit of Southland District Council

Record No: R/16/2/1927

Report by Kevin O’Connor, Manager, Building Control regarding the follow-up on Strong Recommendations and Recommendations from 2015 IANZ Reaccreditation Audit of Southland District Council, was tabled.

Bruce Halligan, Group Manager, Environment and Community was in attendance for this item.

Mr Halligan advised this report provides follow-up on the actions taken in response to the strong recommendations and recommendations resulting from International Accreditation New Zealand (IANZ) March 2015 reaccreditation audit of the Southland District Council (SDC) Building Control section.

Mr Halligan informed IANZ undertakes an intensive audit process of all Building Control Authorities (BCAs) on a two yearly basis. This audit process involves not only a thorough review of relevant documentation and processes, but also on-site inspections where IANZ assessors accompany staff to observe inspection processes.

Members noted that for Council to be able to issue building consents and code compliance certificates under the Building Act 2004, it must be accredited.

Mr Halligan advised reaccreditation was granted for a further two years, with no Corrective Actions Required (known as CARs) being necessary.

Mr Halligan explained IANZ has made a number of strong recommendations and recommendations for future improvement. Strong recommendations need to be actioned or they are likely to turn to CARs at the next re-assessment and recommendations are considered for continuous improvement actioning, but are optional as to whether they are adopted or not.

Mayor Tong commented on the good work from the Building Control Team.

Resolution

Moved Cr Ford, seconded Cr Baird and resolved:

That the Activities Performance Audit Committee:

a) Receives the report titled “Follow-up on Strong Recommendations and Recommendations from 2015 IANZ Reaccreditation Audit of Southland District Council” dated 25 February 2016.

7.9

Southland Museum and Art Gallery Quarterly Report Against Statement of Intent

Record No: R/16/2/2530

Report by Bruce Halligan, Group Manager, Environment and Community, regarding the Southland Museum and Art Gallery Quarterly Report Against Statement of Intent, was tabled.

Bruce Halligan, Group Manager, Environment and Community was in attendance for this item.

Mr Halligan advised that the Invercargill City Council’s Manager of Building Assets and Museum, Mr Paul Horner, has supplied a report relating to the operations of the Southland Museum and Art Gallery (SMAG) for the second quarter of the 2015/2016 financial year.

Mr Halligan advised the report was also recently considered by the Invercargill City Council’s Finance and Policy Committee and outlines levels of performance against the SMAG Statement of Intent.

20 The meeting was informed Mr Horner has requested that this report be forwarded to the Council’s APAC Committee for its information.

21 Members noted that the futures section of the Invercargill City Council report refers to the proposed increase in the Regional Heritage rates to cover proposed additional cataloguing activities.

Resolution

Moved Cr Kremer, seconded Cr Paterson and resolved:

That the Activities Performance Audit Committee:

a) Receives the report titled “Southland Museum and Art Gallery Quarterly Report Against Statement of Intent” dated 25 February 2016.

The meeting concluded at 11.40am CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Activities Performance Audit Committee HELD ON 9 MARCH 2016.

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

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

Activities Performance Audit Committee

6 April 2016

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Financial Report for the period ended 31 January 2016

Record No: R/16/3/4254

Author: Susan McNamara, Management Accountant

Approved by: Anne Robson, Chief Financial Officer

☐ Decision ☐ Recommendation ☒ Information

Background

1. This report outlines the financial results to 31 January 2016. At 31 January 2016, 58% of the financial year is complete.

2. Within the report, no significant issues have been identified that raise any concerns for Council relating to the end of year financial position.

Overview

3. The financial commentary centres on the attached summary sheet which draws the totals from each of the key groups together. Commentary provided focuses on the year to date (YTD) results.

4. More detailed variance explanations for each group can be found in the attached detailed commentary report.

5. As part of the monthly review, finance staff look over the phasing/timing of the budgets and they are revised in conjunction with budget managers where appropriate. Where specific phasing of the budgets has not occurred, one twelfth of budgeted cost is the default to establish the monthly budget.

6. The financial tables include the forecasting data discussed at the Council’s December meeting. In summary,

- The monthly and annual budget columns are the phased full year projection.

- The FY Budget is the LTP budget for the year.

- The FY Projection is the forecasted year end result.

7. Staff will continue to refine the format of this report, with additional features being added to enhance the financial information given. Any feedback or suggestions on further amendments that could be made to this report are welcome.

8. Results at a glance, compared to budget year to date. Budget year to date is the phased forecast budget.

INCOME YTD			OPERATING EXPENDITURE YTD
Actual	Budget		Actual	Budget
$35.9M	$38.5M		$28.8M	$30.2M
Variance	$2.6M	7%	Variance	$1.4M	5%
NET SURPLUS YTD			CAPITAL EXPENDITURE YTD
Actual	Budget		Actual	Budget
$7.1M	$8.3M		$6.3M	$9.6M
Variance	$1.2M	14%	Variance	$3.3M	34%

Income

9. Overall for the YTD, income is 7% ($2.6M) under budget ($35.9M actual v $38.5M budget).

10. Services and Assets income is under budget by $1.03M due to a number of items.

11. The largest being forestry revenue which is currently $853K under budget due to the timing of harvesting activities which have commenced in February. Additionally, due to a change in accounting methodology forestry income is expected to be approximately $1.2M higher than budget at year end. Previously sales income was recorded net of harvesting costs, under the new methodology sales income and harvesting costs are now recorded separately. This change will also result in total forestry expenditure being over budget by approximately $1.2M at year end.

12. As a result of less expenditure being incurred to date in the Area Engineers and Engineering Consultants business units internal revenue required to balance this business units is also less than budgeted ($47k). This is the result of vacancies throughout the year and is expected to remain below budget at year end.

13. Work scheme revenue is $104K under budget as a result of less work being completed overall due to having one less supervisor. This is partially offset by a reduction in staff costs material purchases. At year end the business unit is anticipated to be in a deficit. The extent of this deficit will depend on whether approval for probation funding of an estimated $32K per annum is secured. If it is the deficit is likely to be $15K. However staff anticipate that this deficit can be made up next year once the supervisor position is filled.

Operating Expenditure

14. Overall for the YTD, operating expenditure is 5% ($1.4M) under budget ($28.8M actual vs $30.2M budget).

15. Services and Assets expenditure is $658K under budget due to the timing of forestry costs ($189K), with harvest costs occurring in February onwards. As mentioned in the income section above, these costs are expected to be well over budget due to the new accounting methodology applied to forestry sales. Additionally, district sewerage costs are $356K under budget as a result of lower capital works undertaken. These costs have been reforecast in February and are now expected to be $849K lower than originally budgeted for the year. Work Schemes expenditure is $73K under budget due to having one less Supervisor, this is reflected in lower staff costs and material costs.

16. Environment and Community expenditure is $428K under budget. This is mainly in the regulatory areas of building regulation ($123k), resource consent processing ($54k) and Resource Planning ($170K). Current market conditions has resulted in less building and resource consent activity resulting in lower than budgeted income and expenditure in these areas. The District Plan mediation processes have been delayed at the direction of the Environment Court due to the status of Environment Southland’s Regional Policy Statement. Until the Regional Policy Statement is progressed the amount of expenditure on the District Plan during this year is uncertain. Overall it is expected that the business units will be in deficit at year end. The financial forecasting report currently being prepared for Council will quantify this. Any deficits will be funded from the district operating reserve.

17. The Chief Executive group is currently over budget by $243K. Within the Around the Mountains Cycle trail $298K is the result of moving costs relating to the appeal process into a separate code for easy identification. At year end this will be moved back to capital expenditure. The Chief Executive business unit is $60K over budget primarily due to the timing of costs relating to the organisation review and the cost of the unbudgeted local government survey undertaken by PWC. It is expected at year end that costs overall will be over budget but will be covered by cost savings in other business units.

18. Council & Councillors is $202k over budget. This is primarily due to a timing error in the council election business unit with costs relating to the outsourced electoral officer position ($181K) being recorded entirely in the January month. These costs will be corrected in the March financial reports to allocate costs across the duration of the position which is expected to run from July through to October.

Capital Expenditure

19. Overall for the YTD, capital expenditure is 34% ($3.3M) under budget ($6.3M actual vs $9.6M budget).

20. Information management capital expenditure is under budget $684K due to minimal capital work being undertaken to date. Included in the budget are costs associated with the core systems review and digitisation project. Work has been planned for the digitisation project in the second half of this financial year. There has been $44K spent to date on both projects with a forecasted year end budget of $1.25m. The digitisation project is now expected to be $60k at year end which will be reflected in the February forecasting round. This relates to the delay in appointing the fixed term position and the timing of the TRIM upgrade. The core systems review project has been reforecast to $250k from the current $1m as part of the end of February reforecasting process. The balance of these funds will be carried forward into the 16/17 year with Council’s approval.

21. Services and assets capital expenditure is under budget year to date, $790K due to minimal capital work being undertaken to date beyond the purchase of Hansen software. The Curio Bay sewerage project is still in progress ($970k), quotes are being received on the costs to construct and initial contact has been made with DOC and the trust towards a contribution to operating costs. At this stage it is planned to report back to Council towards the end of April 2016. Public convenience upgrades in Winton (Ivy Russell Park) and Dipton are out for tender, Colac Bay toilets are in design phase, the Waikaia toilets are being built in conjunction with the Waikaia museum rebuild and the Athol toilet is completed.

Roading and Transport

22. The seasonality of the capital works programme directly affects the level of income received from NZTA along with any changes to the programmed works.

23. Operational expenditure is in line with the long term plan budget and the NZTA approved budget for 2015/16 even though weather events over winter put a strain on the budgets.

24. The Roading and Transport team have forecast that capital expenditure will be under budget at the end of the year. This variance is principally due to the Southern Scenic Route extension and the Mararoa Bridge projects being deferred to the 2016/2017 financial year ($2.48m). This is offset by additional rehabilitation projects, changes in scope and market prices $321k.

Balance Sheet

25. Council’s financial position as at 31 January 2016 is detailed below and is only for the activities of Council. The balance sheet as at 30 June 2015 represents the audited balance sheet for activities of Council and includes SIESA and Venture Southland.

26. At 31 January 2016, Council had $5.0M invested in four term deposits ranging from four to six month maturities. The next term deposit will mature in mid-February.

The details at 31 January 2016 are:

Amount	Where Invested	Interest Rate	Term of Investment	Date of Expiry
$1,000,000	ASB	3.25%	122 days	13 Apr 2016
$1,000,000	BNZ	3.30%	121 days	18 May 2016
$1,000,000	BNZ	3.50%	183 days	20 Apr 2016
$2,000,000	Westpac	3.41%	119 days	12 Feb 2016

27. Funds on call are the result of council rates received at the end of January and held to ensure there is enough cash available to meet commitments as they fall due.

Balance at 31 January	Where Invested	Interest Rate
$1,919,557	BNZ	1.75%
$3,000,000	Westpac	2.00%

28. External borrowings have still not been required, with internal funds being used to meet obligations for the year to date. The borrowings shown in current liabilities is the outstanding amount of assets funded by finance leases for computer equipment.

Recommendation

That the Activities Performance Audit Committee:

a) Receives the report titled “Financial Report for the period ended 31 January 2016” dated 23 March 2016.

Attachments

a Summary Financial Report View

b Detailed Commentary Report View

Activities Performance Audit Committee

6 April 2016

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Follow-up on Outstanding Pre-2004 Building Consents Project

Record No: R/16/3/3919

Author: Kevin O'Connor, Manager - Building Control

Approved by: Bruce Halligan, GM - Environment and Community

☐ Decision ☐ Recommendation ☒ Information

Purpose

1 The purpose of this report is to inform the Committee of progress made in the six year project to reduce outstanding pre-2004 building consents. This was previously discussed at the October 2015 Committee meeting with the project scheduled to start in early 2016.

Executive Summary

2 This report outlines for the Committee’s information the Code Compliance Certificate (CCC) status of building consents which have been issued by the Southland District Council under the Building Act 1991.

3 Building Control administration began sending out letters to pre-2004 building consent owners on 22 February 2016. With being only three weeks into the project it is difficult to determine the effectiveness at this early stage. Of the 30 letters having gone out so far response numbers have been muted with only four applications for CCC received and two requests for extension to complete necessary remedial work. The remaining 24 will be given refused CCC status if no feedback is received from the owners in a further week.

Recommendation

That the Activities Performance Audit Committee:

a) Receives the report titled “Follow-up on Outstanding Pre-2004 Building Consents Project” dated 6 April 2016.

Content

Background

4 At the Activities Performance Audit Committee meeting on 28 October 2015 it was reported that there were approximately 3,000 outstanding pre-2004 building consents that did not have a CCC issued.

5 Although there is no requirement to do so under the 1991 Building Act, the Building Control department was putting in place a process to follow-up on pre-2004 building consents scheduled to start in early 2016. The process would mirror the approach taken with
post-2004 building consents, which was a strong recommendation requiring follow up from the 2013 accreditation assessment.

6 Under the Building Act it is the owner’s responsibility to make application for the CCC to the Council when the building work is complete. Section 92 (2) states that the owner should make such application “as soon as practicable after the building work is completed” and “in the prescribed form”.

7 As a business unit of Council, Building Control had the income for inspections from these outstanding building consents in reserves until approximately four years ago, when it was decided to transfer the funds to the district reserve. So as a business unit, Building Control no longer has those outstanding inspection funds directly available to specifically target resourcing to follow-up on historic building consents.

8 The Building Control department is currently downsizing to meet the expected decline in rural building activity by not replacing a retiring staff member and some staff are reducing hours worked.

9 The six year project to reduce the 3,000 pre-2004 outstanding building consents is being done within existing resources by writing to 10 outstanding building consent owners a week requesting feedback on the status of their building project. The number per week may able to be increased depending on incoming new consent workload, but 10 per week was considered a reasonable number achievable within existing administration and inspection resources.

10 Building Control administration began sending out the letters to pre-2004 building consent owners on 22 February 2016. This gives the owner four weeks to respond with an application for CCC or request for an extension to complete the project. Where there is no response received the owner is advised the CCC has been refused. This does not mean the owner cannot continue the work and get a CCC, it just means at this point in time Council is making a decision that it cannot issue the CCC because the work is not complete.

11 With being only three weeks into the project it is difficult to gauge the effectiveness with only 30 letters having gone out. Early response numbers have been muted with four applications for CCC received and two requests for extension to complete necessary remedial work. The remaining 24 will be given refused CCC status if no feedback is received from the owners in a further week.

12 Several changed owners have rang seeking clarification on the process because they were not aware that there was an outstanding building consent on their property as they had not obtained a LIM report or viewed the property file prior to purchase.

Next Steps

13 The project will continue within existing staff resourcing through to completion early 2022.

Attachments

There are no attachments for this report.

Activities Performance Audit Committee

6 April 2016

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Health and Safety

Record No: R/16/3/4282

Author: Janet Ellis, People and Capability Manager

Approved by: Steve Ruru, Chief Executive

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 To provide an update on health and safety activity within the Southland District Council.

Recommendation

That the Activities Performance Audit Committee:

a) Receives the report titled “Health and Safety” dated 23 March 2016.

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) Notes that provision will be included in the 2016 Council Induction Programme for health and safety training to be provided to elected members.

e) Endorses the Health and Safety Improvement Plan for 2016

f) Notes the findings of the Health and Safety audit completed on the Riverton Stormwater works being undertaken by Te Anau Earthworks.

Content

Health and Safety Legislation

2 The new Health and Safety legislation, the Health and Safety at Work Act 2015, has been passed and comes into effect on 4 April 2016.

3 Cr Paterson and the People and Capability Manager attended the Health and Safety Roadshow in February 2016 run by the Society of Local Government Managers (SOLGM). The Roadshow outlined the key changes to the Act, Governance responsibilities and different strategies Council can undertake to ensure our “workers are free from harm”.

4 Under due diligence requirements in the new Act, Councillors are required to keep up to date with health and safety matters, ensure the person running the business has appropriate resources and processes to manage risks to health and safety, understand the nature of the business, audit its hazards and risks, ensure there are appropriate reporting and investigation processes in place, monitor and verify that appropriate actions are being taken. Training on health and safety responsibilities for elected members will be included in the 2016 Council Induction Programme.

5 The message that is being received from health and safety specialists is that organisations need to be prepared for the introduction of the new legislation rather than have everything ready to go from April 2016. Key terms include “keeping it simple” and remembering “what is reasonably practicable”.

Health and Safety at Southland District Council

Southland Councils Health and Safety Management Group

6 The Southland Council Health and Safety Management Group has been established. The group comprises Southland District Council, Invercargill City Council, Gore District Council and Environment Southland.

7 The 2016 Shared Services Strategic Plan is attached (Attachment A) for your information. The plan details the priorities, actions and when these will occur.

8 A joint Health and Safety policy has been drafted. A copy is attached (Attachment C) for your information.

9 Work on a toolkit (previously referred to as the manual) has been intensive and more time consuming than first envisaged. The Group is about to release the first four chapters for consultation. The aim is to have a full draft completed by the end of March 2016.

Safety and Management Improvement Plan for 2016

10 A draft Safety and Management Improvement Plan for 2016 has been drafted and is attached (Attachment B) for your consideration.

11 There are a number of key items that need to be completed to ensure we meet our four goals of completing the joint Council Health and Safety initiative’s common goals and strategies, maintaining ACC Workplace Safety Management Practices (WSMP) Tertiary level, meeting the requirements of the new Health and Safety at Work Act 2015 and Contractor Evaluation and renewal.

12 The Health and Safety Committee has been working on identifying our top five health and safety risks that could harm our people. The definition of “our people” is anyone that works for Council or is on Southland District Council property. This could be our staff, contractors or volunteers. Currently, our top five health and safety risks have been defined as:

· Vehicles and driving

· Staff Security, Working alone, Animal attacks

· Restricted work (Heights, confined space, excavations, hot work, etc), Hazardous Sites (e.g. Quarries) and locations

· Contractors, Volunteers, Community Events

· Slips trips and falls.

13 Council is currently implementing a new Personal Protective Equipment (PPE) Policy which includes ensuring all staff have the appropriate PPE.

Accidents/Incidents/Near Misses

14 In the last quarter (1 October 2015 to 31 December 2015) there were 4 reported accidents. One accident was a lost time injury and a reportable incident to Work Safe New Zealand. This accident involved a fall down the stairs and a broken bone in the foot. Work Safe advised us that they were not going to investigate this accident. The number of near misses is still very low with only 3 near misses reported in the last quarter.

The Executive Leadership Team and the Health and Safety Committee would like to see more near misses being reported. Reporting of near misses is one way to demonstrate a positive health and safety culture. There are ways of looking at rationalising the reporting process so that it is easier for staff to report.

15 In early February 2016 the Executive Leadership Team visited a number of sites. This included the notifiable work that was being undertaken in Riverton to upgrade the storm water system.

16 This site had a number of hazards due to the location and nature of the excavation works being undertaken. Given the nature of the work a decision was made to have a formal audit of the site completed by Bryce Stupples, our H&S Consultant and Matthew Keil, Project Engineer. A copy of the report from this audit is attached (Attachment D).

Attachments

a Health and Safety Shared Services Strategy 2016 View

b Safety Management Improvement Plan for 2016 - Goals View

c Health and Safety Policy 2016 View

d Health and Safety Audit - Te Anau Earthworks March 2016 View

We will:

Strive to take a proactive approach to health and safety, developing a positive culture within our organisations which actively engages our workers in health and safety management.

logo

Our Charter

This charter is an agreement on health and safety between the leaders of Southland District Council, Invercargill City Council,

Gore District Council and Environment Southland.

Introduction

It is our aim to continually improve the health and safety systems our organisations use and deliver to our workers.

Development for the Health and Safety Charter Commitments was informed by:

§ Relevant legislation including the Health and Safety in Employment Act 1992/Health and Safety at Work Act 2015

§ Best practice in both the local government sectors and private sector.

§ Existing policies and procedures developed by all four organisations.

§ The vision and key priorities set by individual organisations

Strategic Themes

Priority 1: Leadership

Key Deliveries

Actions

Measures

By When / By Who

Ensuring our leaders demonstrate a visible commitment to safety and wellbeing.

Developing a safety leadership programme that shows a visible commitment to safety and wellbeing

Governance is kept abreast with health and safety risks

Developing a Policy Manual that is updated regularly and available to all employees involved.

Development of health and safety shared services branding.

Establishing a relationship with Worksafe representatives in Southland.

A leadership programme is developed to include measurable undertakings by senior leaders, documented expectations of safety behaviours at all levels of the organisation, half day health and safety forums once a year and briefings with councillors and Executive teams on new legislation/legal responsibilities.

Quarterly reports to elected representatives (may be through Audit and Risk Committee) and Shared Services meetings

The manual is circulated and informs workers at all levels on their legal responsibilities and expectations. All workers are aware of this and have agreed to the conditions.

A logo and communication plan is agreed on which promotes consistent safety messages across all four organisations.

A relationship is developed which is proactive, sustainable and open.

Next year

Safety and Wellness training November 2015 - Complete,

will organise further training during 2016

Each Council as required.

The Group working on draft - final draft aimed for March 2016.

Completed logo.

Susan Jones (GDC) to work with Worksafe and build ongoing relationship.

*Priority 2: Culture and Engagement*
*Key Deliveries*	*Actions*	*Measures*	*By When / By Who*
We have systems in place to encourage and support worker engagement in safety and wellbeing,	All workers are provided an opportunity to participate in health and safety management through an active employee participation system The participation system may include worker involvement in hazard identification and management, election of workplace health and safety representatives, election of health and safety committee members, processes for ensuring regular interaction between the employer and workers, processes for managing worker engagement. A process for review.	All workers are aware of this participation system including who/ where their employee representative is and are actively involved in the hazard management process through work-groups and regular interactions with management.	Will be included in manual, and clarified to staff once this is established.
We will continue to develop a strong positive health and safety culture.	Organising safety and wellness training for all workers which encourages a positive attitude, possibly Wiremu Edmonds and/or Sam Turner. Updating approaches ie corporate inductions and handbook to develop a positive and engaging attitude.	All workers have attended this and good feedback has been received. All new workers are inducted in a positive manner and actively participate in health and safety.	½ day sessions over 2 days in November 2015- complete ICC to collate induction information from all four councils, discussion planned for after manual development.

Priority 3: Critical Operational Risks

Key Deliveries

Actions

Measures

By When / By Who

We will ensure all critical-risk and operational-risk work activities are identified, managed and mitigated effectively.

All critical-risk and operational-risk work activities are managed effectively.

There are updated policies in place for the following activities:

§ Working at height

§ Confined space

§ Electricity

§ Chemicals

§ Asbestos

§ Excavations

§ Mobile plant and machinery

§ Workplace security

§ Driving

§ Solo field work

§ Working around water

§ Stress and fatigue

§ All activities requiring notification or certified qualification

Review the management of hazards alongside a critical analysis of the change from hazard management to risk assessment.

Critical-risk and operational-risk activities are identified and procedures are in place which mitigates risks. Workers are aware of the risks and procedures to mitigate them.

These policies are kept up-to-date and workers are aware of all policies/changes.

Risk assessment processes are developed/ clarified and workers are aware of these changes.

Policies are collated, discussion planned for after manual.

Note: Change from hazard management to risk assessment

To be included in manual. Possible basic risk assessment training.

Priority 4: Contractor Management

Key Deliveries

Actions

Measures

By When / By Who

Ensuring we have robust systems to ensure all contractors and their employees are safe.

Using a recognised system to create an approved contractor register which ensures all contractors are appropriately qualified and inducted.

Ensuring all contractors have effective and efficient processes that are appropriate for the site and activities taken.

Ensuring we monitor and effectively audit contractors regularly to ensure they are meeting requirements.

The contractor register is created, updated regularly and available to the appropriate people.

All contractors complete and maintain a plan for each site which includes at least the following content:

§ Project pre-start and toolbox meetings

§ Maintained hazard register

§ Current training register

§ Job safety analysis

§ Notifiable works

§ Toolbox attendance register

§ Permits to work

§ Evidence of an emergency management plan

§ Indications of secure boundaries and points of entry

Audits are carried out regularly checking both internal and external contractor processes.

Work in progress, Janet Ellis to present at next meeting about the new SDC process. - Complete

Contractor Management process aimed to be in place during 2016

Janet Ellis starting to develop audit templates.

Priority 5: Reporting

Key Deliveries

Actions

Measures

By When / By Who

Ensuring we have robust, proactive and accurate safety and wellbeing reporting.

Employees are aware of the systems in place ensuring accurate reporting.

Data gathered allows industry benchmarking and reporting on lead and lag indicators as follows:

Lead Indicators

§ Safety meetings (toolbox, pre-start etc)

§ Audits and inspections (internal and external)

§ Task analysis/job safety analysis

§ Safety talks

§ Near miss incidents

§ Accredited health and safety systems (such as ACC - Work Safety Management Practices, Workplace Safety Discount and Partnership Programme).

§ Training and induction

Lag Indicators

§ Fatalities

§ Lost time injuries

§ Medical treatment injuries

§ First aid injuries

§ Serious harm injuries

§ Training

§ Workplace support

§ Health and safety wellness

ICC to look at definitions. We aim to start reporting during 2016 with new information.

*Priority 6: Training and induction to sites*
*Key Deliveries*	*Actions*	*Measures*	*By When / By Who*
All our workers receive health, safety and wellbeing training, inductions and refreshers. Everyone is made aware of hazards so they can look after themselves and keep others safe.	All workers are competent, skilled and qualified to perform their work. All workers are aware of the following: · Safety principles and legislation · Hazard identification and the hierarchy of controls · The relevance of site induction and site-specific safety plans · High-risk work activity and what safe looks like for relevant tasks · Promoting, positive safety behaviour and culture · Knowledge assessment specific to the task eg roofer/scaffolder. Development of a training register for all workers.	Workers are aware of their roles and responsibilities. This is verified by redevelopment of the induction process to make it easily understood and more training is provided when necessary. The training register is updated regularly and workers understand the importance of notifying HR of any training/qualification changes.	Will be included in Manual update, final draft aimed for March 2016.
*Priority 7: Personal Protective Equipment*
*Key Deliveries*	*Actions*	*Measures*	*By When / By Who*
Appropriate and provided PPE is worn at all times. No exceptions.	The minimum PPE or Personal Protective Clothing (PPC) standard may include: § Hi-vis and protective clothing and equipment § Sunscreen § Safety footwear with toe protection § Safety eyewear § Hard hat (including residential projects unless specified) § Other PPE to be identified and used following a risk assessment process.	All workers wear appropriate PPE and know the process regarding getting new equipment.

*Priority 8: Health, Safety and Wellbeing*
*Key Deliveries*	*Actions*	*Measures*	*By When / By Who*
We actively promote the health, safety and wellbeing of our people.	All four organisations should provide education and information about health risks related to work tasks and activity and operational procedures on injury management. Ensuring that there are processes in place which manage and monitor the health of our workers. Provision of health services such as annual influenza vaccinations and employee assistance programme (EAP)/workplace support contract.	All workers have been trained and are aware of the health risks associated with work tasks and the roles and responsibilities they have in regards to injury management. Known hazards such as dust and noise and exposure are reported and managed to reduce the risk on worker health. Workers are aware of the health monitoring processes and readily undergo checks when necessary. All workers are aware of the health services available to them and actively take these opportunities.	Part of induction process for each council, group to ensure these are covered. Risk assessment process is developed as part of manual review. Workers should be told of health monitoring as part of their induction. Ensure this is part of staff induction packs.
We encourage and support the development of return to work programmes for our workers.	Ensuring we encourage and develop successful return to work programmes to improve recovery of workers after an injury or illness and manage associated costs.	All workers are aware of the return to work process and actively participate in these programmes when needed.	Included in policy review

Priority 9: Workers being fit for work

Key Deliveries

Actions

Measures

By When / By Who

The safety of our people is not compromised by anyone under the influence of drugs, alcohol or fatigue.

All councils shall have a Drug and Alcohol policy which commits to work with their employees, representatives and contractors to create a work environment free from drugs and alcohol. This will also include a programme for pre-employment, post-incident and reasonable cause drug and alcohol testing through a reputable company, occupational nurse or medical professional.

All organisations have the provision to remove anyone from the worksite who is deemed ‘unfit for work’ or ‘under the influence’, or where the presence of drugs or alcohol is in excess of acceptable standards.

A programme to raise awareness and provide training about the potential harmful effects of drugs and alcohol in the workplace.

All councils have a fatigue management plan which recognises fatigue as a possible hazard and identifies possible work design risks that may cause fatigue. This plan will also identify areas where fatigue related impairment may cause safety risks and ensure staff are provided with education and appropriate counselling services.

All workers are aware of this policy and the associated programmes including pre-employment, post-incident, reasonable cause drug testing. Statistics will be collated on incidents which involve drug or alcohol use to note any improvements.

All workers are aware of this provision and management is notified immediately if staff are concerned about anyone on their worksites.

This programme will include such things as wellness days/programmes, newsletters and posters around worker areas.

The fatigue management plan is in action and workers are aware of what it includes. Workers have received education/training such as posters and handouts about the impacts of fatigue and aware of the services available to them.

All HR managers to consider including drug and alcohol training as part of future training sessions for staff.

To be considered.

Activities Performance Audit Committee

06 April 2016

Safety and Management Improvement Plan for 2016 - Goals

Key Goals

1. Complete 4 Council joint H&S Initiative and adopt common goals and strategy

2. Maintain ACC WSMP Tertiary Level

3. Meet the Requirements of the New Health and Safety at Work Act

4. Contractor Evaluation and Renewal

	Person(s) Responsible	Target completion date	Comments
Goal 1: Complete 4 Council joint H&S Initiative and adopt common goals and strategy
Requirements:
§ Create common reporting criteria based off common measures and results	People and Capability Manager	On going
§ Refine staff policy and manuals for commonality. Establish document control	People and Capability Team	On going
§ Common policy document is finalised but needs implemented	People and Capability Team	30/3/16
Goal 2: Maintain ACC WSMP Tertiary Level
Requirements:
§ Critical Element 1 recommendation – Document specific H&S responsibilities into performance appraisals. Assessment Vs Accountability	People and Capability Manager	30/8/16
§ Critical Element 3 recommendation – Meeting agenda item for safety impact assessments for new purchases and acquisitions from a H&S perspective	H&S Consultant – on secondment	30/2/16
§ Critical Element 6 recommendation – Modify induction to give verification that H&S is an agreed process.	H&S Consultant – on secondment	30/5/16
§ Conduct self-assessment audit	People & Capability Co-ordinator H&S Committee	30/11/16
Goal 3: Meet the Requirements of the New Health and Safety at Work Act
Requirements
§ Review Induction Process. Include alarms, ACC Element 6, Crash Kits and vehicle use.	H&S Consultant, H&S Committee	30/4/16
§ Contractor audits and evaluation – (included in as separate goal)	H&S Consultant	As below
§ Develop Competency List of qualified SDC Staff	H&S Consultant, People and Capability Manager	30/7/16
§ Review H&S Committee structure and effectiveness. Review Employee participation requirements of Act and document appropriately	Chair of H&S Committee, People and Capability Manager	30/3/16
§ Develop Communication strategies. These include such things as effective notice boards, safety message, and regular staff briefings.	People and Capability Manager	ongoing
§ Reward and Recognition programs	People & Capability Co-ordinator	ongoing
§ Training in the new Act and Hazard ID for staff. Familiarisation training for councillors and community groups	H&S Consultant, People and Capability Manager	ongoing
§ Look to increase incidence of reporting and develop a simplified process for staff to report Accidents, near misses and potential Hazards.	H&S Consultant	ongoing
§ As a result of the restructure a complete review of evacuation roles, first aiders and committee representation will need to occur to ensure all departments and office areas have adequate representation. Develop crisis plan and have a practice run	H&S Consultant, People and Capability Co-ordinator, GIS	30/3/16
§ Develop PPE policy	H&S Consultant, H&S Committee	30/3/16
· Gain legal opinion of Officers and PCBU’s with council and local community entities	H&S Consultant, People and Capability Manager	30/4/16
· Review wording of health and safety documentation to reflect new legislation. Such includes the likes of redefining serious harm, roles and responsibility, and risk definitions.	H&S Consultant,	30/5/16
· Critical risk analysis of current hazards to define the top 5 risks to form the focus of goals leading to 2017	H&S Consultant, People and Capability Manager H&S committee	30/11/16

Goal 4: Contractor Evaluation and Renewal
Requirements
§ Ensure that there is clear documentation of post contract evaluations across council divisions that include an assessment of the health and safety performance of the contractor.	H&S Consultant,	30/7/16
§ Review Contractor handbook and term of approval (consider every 2 years instead of annually)	H&S Consultant,	30/7/16
§ Commence contractor audits and observations	H&S Consultant,	30/7/16

Activities Performance Audit Committee

6 April 2016

sdclogo

Bylaw Review Process

Record No: R/16/3/4348

Author: Tamara Dytor, Policy Analyst

Approved by: Rex Capil, Group Manager, Community and Futures

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 This report outlines the proposed approach for the review of bylaws in 2016.

Executive Summary

2 In 2016, officers are proposing to review the Cemetery Bylaw 2006, the Keeping of Animals, Poultry and Bees Bylaw 2010 and the Control of Advertising Signs Bylaw 2008. This report outlines a proposed approach to consultation and review.

Recommendation

That the Activities Performance Audit Committee:

a) Receives the report titled “Bylaw Review Process” dated 23 March 2016.

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

d) Agrees to review the Cemetery Bylaw 2006, Keeping of Animals, Poultry and Bees Bylaw 2010 and the Control of Advertising Signs Bylaw 2008.

e) Endorses the approach to bylaw review and consultation outlined in this report.

Content

Background

3 It is recommended that three Southland District Council bylaws are reviewed in 2016. The drivers for each review are outlined below:

· The Cemetery Bylaw 2006 requires review in 2016 to remain current.

· A review of the Keeping of Animals, Poultry and Bees Bylaw 2010 is recommended to address local issues. This bylaw was reviewed in 2010 however, since this time additional issues have arisen. The keeping of animals in urban areas has become an area of contention in the Nightcaps and Riversdale communities.

· A review of the Control of Advertising Signs Bylaw 2008 is recommended to align with the District Plan, to provide clarity for the public and to address issues across the District which relate to signage. The proposed bylaw review would address the placement of signs in the road reserve, for example sandwich boards on footpaths. Changes to the bylaw are intended to increase the ease of doing business with Council and provide clarity and consistency.

Issues

4 This report asks the Activities Performance Audit Committee to consider the need for bylaw review and the approach to review.

5 The timeline below outlines key milestones in the process of review and details the approach to public engagement.

Date	Task
7 April 2016	Memo to Community Boards (CBs) and Community Development Area Subcommittees (CDAs) Detailing the review process and informing CBs and CDAs of the submission period.
Mid-May 2016	Pre-consultation engagement sessions. Sessions are also for other Long Term Plan issues.
15 May 2016	Draft bylaws sent for legal review.
8 June 2016	Council meeting (Endorse draft bylaws for public consultation)
8 June 2016	Notification given to Area Offices, and customer services. Committee Advisors to liaise with CB and CDAs.
9 June 2016	Draft bylaws advertised.
9 Jun – 30 Jun 2016	Submission period.
20 July 2016	Council meeting (Submission Hearings)
2 Aug 2016	Amendments made to draft bylaws.
17 Aug 2016	Council meeting (Deliberations)
7 Sep 2016	Council meeting (Adoption of bylaws)
8 Sep 2016	Advertising of adopted bylaws.
Sep – Oct 2016	Present report to CDAs on new bylaws.
Nov – Dec 2016	Present report to CBs on new bylaws.

Factors to Consider

Legal and Statutory Requirements

6 Part 8 of the Local Government Act 2002 relates to developing and amending bylaws. Territorial authorities are able to make bylaws to protect the public from nuisance, to protect, promote and maintain public health and safety, and to minimise the potential for offensive behaviour in public places.

7 Local authorities must determine, before commencing the bylaw-making process, whether a bylaw is the most appropriate way of addressing the perceived problem. The bylaws which are proposed for review have been developed in consideration of alternative options. At the time of their development it was assessed that bylaws were the most appropriate way to address the issues that they regulate. Officers continue to support this approach for each of the bylaws.

8 Bylaws must be reviewed within 5 years after they are made and thereafter at 10 year intervals, otherwise they will lapse 2 years after the date by which they were due to be reviewed. For this reason, it is now timely to review the Cemetery Bylaw 2006.

9 Section 156 of the Local Government Act 2002 states that the special consultative procedure is only required if the bylaw is assessed as significant. Since none of the bylaws proposed for review have been assessed as significant, staff are not proposing to undertake a special consultative procedure.

Community Views

10 Community views would be considered during formal consultation and pre-consultation engagement. The timeline provided in this report details when this would occur.

11 To ensure that Community Boards and Community Development Area Subcommittees are informed, it is proposed that they receive a memorandum outlining the bylaw review process. This would allow Community Boards and Community Development Area Subcommittees to make submissions during the consultation period.

Costs and Funding

12 The costs of the review process will largely be limited to legal review, advertising and engagement. However, changes to bylaws may result in different administrative processes that have cost and funding impacts.

Policy Implications

13 Since the Cemetery Bylaw 2006 is proposed for review, a concurrent review of the Cemetery Policy will also be required.

14 Reviewing the Control of Advertising Signs Bylaw 2008 intends to provide clarity regarding the scope of the bylaw and the scope of provisions relating to signage in the District Plan.

15 There are no other policy implications arising from a review of these bylaws.

Analysis

Options Considered

16 The Activities Performance Audit Committee could:

· Agree to review these bylaws as set out in this report or with changes (Option 1); or

· Decide not to review these bylaws (Options 2).

Analysis of Options

Option 1 – Agree to review bylaws

Advantages

Disadvantages

· This is a compliant approach which addresses the statutory requirement to review the Cemetery Bylaw 2006.

· This option is proactive and takes the opportunity to provide clarity and improve the ease of doing business in relation to signage.

· This option addresses local issues in relation to the keeping of animals.

· There is no statutory requirement to review the Keeping of Animals Poultry and Bees Bylaw 2010 or the Control of Advertising Signs Bylaw 2008 at this stage. However, local issues and opportunities for improvement mean that it may be timely to do so.

Option 2 – Decide not to review bylaws

Advantages

Disadvantages

· No administrative burden.

· The Cemetery Bylaw 2006 will expire and cease to have effect.

· Local issues relating to animal control will not be addressed.

· Opportunities to improve practice in relation to the regulation of signage would not be taken.

Assessment of Significance

17 The bylaws proposed for review have not been assessed as significant under Council’s Significance and Engagement Policy and will not be subject to special consultative procedure.

Recommended Option

18 It is recommended that the Activities Performance Audit Committee approve a review of the Cemetery Bylaw 2006, the Keeping of Animals, Poultry and Bees Bylaw 2010 and the Control of Advertising Signs Bylaw 2008 in 2016. It is also recommended that the Activities Performance Audit Committee endorse the approach to bylaw review proposed in this report.

Next Steps

19 If the Activities Performance Audit Committee approves a review of these bylaws and endorses the outlined approach, staff will develop draft bylaws and engage with the community as per the timeline in this report.

Attachments

There are no attachments for this report.

Indicator	Target*	Actual	Variance	Compliance
External Funding: Non rateable income/Total income	> 39%	28%	-11%	x
Working Capital: Current Assets/Current Liabilities	>1.09	1.85	0.76	a
Debt Ratio:** Total Liabilities/Total Assets	<0.73%	0.66%	-0.07%	a
Debt To Equity Ratio: Total Debt/Total Equity	<0.01%	0.00%	-0.01%	a

Chief Executive	Steve Ruru
Committee Advisor	Alyson Hamilton