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Council

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Council held in the Council Chambers, 15 Forth Street, Invercargill on Wednesday, 17 August 2016 at 10.30am.

 

present

 

Mayor

Mayor Gary Tong

 

Deputy Mayor

Paul Duffy

 

Councillors

Lyall Bailey

 

 

Stuart Baird

 

 

Brian Dillon

 

 

Rodney Dobson

 

 

John Douglas

 

 

Bruce Ford

 

 

George Harpur

 

 

Julie Keast

 

 

Ebel Kremer

 

 

Neil Paterson

 

 

IN ATTENDANCE

 

Chief Executive Officer – Steve Ruru, GM Services and Assets – Ian Marshall, GM Community and Futures – Rex Capil, Chief Financial Officer – Anne Robson, Team Leader, Governance – Chris Dolan, Publications Specialist – Chris Chilton and Committee Advisor – Alyson Hamilton.

 

 

 

 


Council

17 August 2016

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1          Apologies

 

An apology for absence was received from Councillor Macpherson.

 

Moved Cr Dillon, seconded Cr Paterson and resolved:

That the apology be received.

 

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

 

There was no public forum.

 

5          Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

6          Confirmation of Council Minutes

 

Resolution

Moved Cr Bailey, seconded Cr Dobson  and resolved:

That the minutes of the Council meetings held on 7 April 2016 and 20 July 2016 be confirmed as a correct record of those meetings.

 

Reports - Policy and Strategy

 

7.1

Adoption of Combined Local Alcohol Policy (LAP)

Record No:         R/16/7/11444

 

Michael Sarfaiti, Environmental Health Manager, was in attendance for this item.

Mr Sarfaiti advised the purpose of the report is to make the combined Local Alcohol policy operational. 

 

Mr Sarfaiti explained Council adopted the LAP on 31 May 2016 and is required to make the LAP operational along with Gore District Council and Invercargill City Council, on 30 August 2016.  The only exception is Policy B1 which will be made operational on 7 December 2016.

 

Mr Sarfaiti advised staff have been working for over three years on the LAP alongside Gore District Council and Invercargill City Council.  This joint Policy was adopted by all three Councils on 31 May 2016 as a result of the Alcohol Regulatory and Licencing Authority determining the remaining appeal.

 

Council noted that in order for the policy to take effect all three councils now need to make the policy operational.

Councillors further noted both Gore District Council and Invercargill City Council will be resolving to make the LAP operational at their meetings to be held 2 August 2016.

 

 

 

Resolution

Moved Cr Bailey, seconded Cr Kremer  and resolved:

That the Council:

a)         Receives the report titled “Adoption of Combined Local Alcohol Policy” dated 3 August 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)         Makes the Local Alcohol Policy operational as at 30 August 2016.

e)         Makes Policy B1 (relating to trade hours) of the Local Alcohol Policy operational as at 7 December 2016.

 

 

8.1

Southland District Council's Annual Report 2016 to the Alcohol Regulatory and Licensing Authority

Record No:         R/16/7/10828

 

Michael Sarfaiti, Environmental Health Manager, was in attendance for this item.

 

Mr Sarfaiti advised that section 199 of the Sale and Supply of Alcohol Act 2012 requires the territorial authority to prepare and send to the Licencing Authority a report of the proceedings and operations of its licencing committees during the year.

 

Councillors noted the Alcohol Regulatory and Licencing Authority has detailed the format it requires for the Annual Report and Annual Return.

 

Mr Sarfaiti advised staff have prepared the annual report and annual return in accordance with the authorities requirements.

 

 

Resolution

Moved Cr Bailey, seconded Cr Kremer  and resolved:

That the Council:

a)         Receives the report titled “Southland District Council's Annual Report 2016 to the Alcohol Regulatory and Licensing Authority” dated 12 July 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)         Adopts and forwards the received Annual Report, including the Annual Return, for the year ended 30 June 2015 on to the Alcohol Regulatory and Licensing Authority by the Manager of Environmental Health.

 

9.3

Interim Financial Report for the year ended 30 June 2016

Record No:         R/16/8/12387

 

Sheree Marrah, Finance Manager, was in attendance for this item.

 

Mrs Marrah advised this report outlines the interim financial results to 30 June 2016.

 

Councillors noted that at 30 June 2016, the financial year is complete.

Mrs Marrah advised the monthly and year to date actual result is being compared to a budget based on the forecasted year end result provided by budget managers at the end of February.  Any variances between the actual result and the forecast will be different to the variances shown in the Annual Report as the Annual Report will compare the actual result to the Budget included in the Long Term Plan.  The budget from the LTP is shown in these reports as the Full Year Budget.

Mrs Marrah informed 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. 

The Meeting noted further detailed variance explanations for each group can be found in the detailed commentary report. 

Councillors were advised as part of the monthly review, Finance staff review the phasing/timing of the budgets with the budget manager and revise where appropriate.  Where specific phasing of the budgets has not occurred, one twelfth of budgeted cost is the default to establish the monthly budget.

Mrs Marah advised the financial tables include the forecasting data discussed at the Council’s April 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.

Mrs Marrah explained staff will continue to refine the format of this report, with additional features being added to enhance the financial information given. 

Mrs Marrah sought feedback or suggestions on further amendments that could be made to this report are welcome.

Councillors noted the position of the Annual Report for the year ended 30 June 2016.


Mrs Marah advised in this interim financial report will cover off the reasons for the variances described in this report.  These variances for 2016-17 are as follows

Long Term Budget       -----------à     Projection           ----------------à   Actual

(LTP & Annual Report)            (for Mgmt purposes)                           (Annual Report)

This report will discuss the variance in two parts tying back to the commentary made over the year in the monthly financial reports as follows;

Mrs Marrah reported the overall for the YTD, income is 7% ($4.8M) under budget ($66.7M actual v $71.5M budget).

The forecasted income at the end of June was expected to be $4M lower than was budgeted in the LTP for these District activities.  As noted in previous reports the reasons for projected income being $3.9m less than budget are

-        $1.7M was due to less income expected from NZTA with the deferral of the          sealing of the Scenic Route and the Mararoa Bridge.  Additionally lower than          budgeted bitumen prices were being paid.

-        $2.9M reduction in grants and subsidies which relates to the Around the          Mountains Cycle Trail.

-        $0.4M from other revenue, which is predominately reduced income for building          regulation and resource consent processing due to lower consents being          received throughout the year. 

-        Increase in forestry income of $1.2M.  This is to reflect gross returns, the budget          currently reflects net returns.

The actual year end result to projection shows income to be $834k less than the projection for the following reasons

-        An additional $1.74m reduction in NZTA revenue due to a lower work          programme in roading than was originally budgeted as well as additional          savings from lower bitumen prices, $1.74m.

-        At this stage an increase in interest revenue of $251k however interest still          needs to be allocated to reserves and development contributions.  It is expected          that once all allocations have been made interest will be on budget.

-        Increase in gross forestry revenue of $780k compared to budget.

Dog registrations revenue currently has income of approximately $80k that was                                                    received in June 2016 that needs to be moved to the balance sheet because it relates to 2016-2017.

-        Reduction in consultant engineering costs of $150k resulting in less revenue required.

-        Reduction in Work Scheme Income of $112k 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 and material purchases.  At the end of June this activity has a net deficit of $19K, this will be funded from the reserve it has accumulated from previous years surpluses.  The Department of Corrections have verbally advised Council that they will contribute $8,200 towards the 2016-17 year, no funds have been received for 2015-16.

Overall Forestry Revenue for the year before direct costs is $4m.  All forestry operations planned at Dipton have been completed with net returns $332k higher than Council had budgeted in the Long Term Plan. 

This increase in return was due to the actual rate received per tonne ($61.27) being 21% higher than budgeted ($50.56).  The number of tonnes milled was only 2% less than budgeted.  All silviculture work planned was completed by the end of June.

 

Operating Expenditure

Overall for the YTD, operating expenditure is 1% ($0.5M) under budget ($51.4M actual v $51.9M budget).

The forecasted expenditure at the end of June was expected to be $2.4M higher than was budgeted in the LTP for these District activities due to

-        Increased consultants costs and costs relating to the Appeal process for Around the Mountains Cycle Trail.

-        District sewerage and water projects carried forward from previous years

-        Additional forestry expenditure of $1.2M to reflect the invoices showing total revenue less expenses.

-        Offset by reduced employee costs and the deferral of further significant work on the district plan in the current year. 

The actual expenditure to 30 June compared to the projection was $2.9m less, with key variances noted below

-        Within Other activities, Interest is currently $1.4m below budget however the allocation of interest to reserves and development contributions is still to occur.  It is expected that it will be on budget when this is completed.

-        Maintenance costs for roading is under budget $727k at year end.  The explanation for this is given under the roading and transport commentary below.

-        Due to anticipated reduced regulatory income, the regulatory business managers have consciously worked to minimise costs resulting in costs overall being $414k less at this stage.

 

Mrs Marrah then spoke on matters relating to the income, operating expenditure, capital expenditure, forestry revenue, roading and transport and the balance sheet.

 

 

 

Resolution

Moved Cr Dillon, seconded Cr Douglas  and resolved:

That the Council:

a)         Receives the report titled “Interim Financial Report for the year ended 30 June 2016” dated 10 August 2016.

 


 

Public Excluded

 

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

Resolution

Moved Cr Dobson, seconded Cr Baird  and resolved:

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

C10.1  Settlement Agreement - 82 Balaclava Street, Wyndham

 

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

Settlement Agreement - 82 Balaclava 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.

 

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.

 

That the Chief Executive Officer – Steve Ruru, GM Services and Assets – Ian Marshall, GM Community and Futures – Rex Capil, Finance - Sheree Marah, Strategic Property Manager - Kevin McNaught, Management Accountant - Susan McNamara – Team Leader, Governance – Chris Dolan, and Committee Advisor – Alyson Hamilton be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the item C10.1Settlement Agreement - 82 Balaclava Street, Wyndham . This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed and meeting procedure.

 

The public were excluded at 10.45am.

 

The meeting resumed in open session at 10.55am.

 

9.1

Venture Southland Projects and Activities Report April - May 2016

Record No:         R/16/7/11742

 

Bobbi Brown, Group Manager Tourism, Events and Community and Steve Canny were in attendance for this item.

 

Mrs Brown advised the purpose of this report is to update the Southland District Council on Venture Southland Projects and activities for February and March 2016.

 

Mrs Brown highlighted activities from the following area ;

 

§  Regional Business Partner Programme

§  Working with China

§  Health and Safety Workshops

§  Southland Tourism and Events

§  Research and Strategies

 

Councillors queried involvement in agriculture tourism.

 

Mr Canny responded that business opportunities have been noted in farming areas and statistics show an increase and widespread interest in this area.

 

 

Resolution

Moved Cr Dobson, seconded Cr Douglas  and resolved:

That the Council:

a)         Receives the report titled “Venture Southland Projects and Activities Report April - May 2016” dated 3 August 2016.

 

 

9.2

Venture Southland Community Development Update

Record No:         R/16/7/11812

 

Nicola Wills, Community Development Team Leader, was in attendance for this item.

 

Mrs Wills presented an update relating to the Community Development Team, Regional Strategies and Initiatives and Local Initiatives relating to the Winton Wallacetown Ward and Waihopai Toetoes Ward.

 

 

Resolution

Moved Cr Kremer, seconded Cr Keast and resolved:

That the Council:

a)         Receives the report titled “Venture Southland Community Development Update” dated 2 August 2016.

 

 

The meeting adjourned at 11.25am and reconvened at 1.00pm.

 

Mayor Tong, Councillors Bailey, Baird, Dillon, Dobson, Douglas, Ford, Harpur, Keast, Kremer and Paterson were present when the meeting reconvened.

 

The Chief Executive, Group Manager Services and Assets, Group Manager Community and Futures, Team Leader Governance and Committee Advisor were also present when the meeting reconvened.

 

7.2

Schedule of Oral Submitters for Draft Gambling Venue Policy and Draft TAB Venue Policy, Ashton Flats Road Bylaw and Draft Signs and Objects on Footpaths and Roads Bylaw 2016

Record No:         R/16/8/12212.

 

Jarod True representing the New Zealand Racing Board addressed the meeting in relation to the Draft Gambling Venue Policy and Draft TAB Venue Policy.

 

In his presentation Mr True advised the New Zealand Racing Board supports the current TAB Board Venue Policy, opposes the gaming machine sinking lid and suggests that the cap be set at current numbers (19 venues, 102 machines) and suggests that the relocation provision be expanded to reflect s97A.

 

(Hand out attached as appendix 1 to the minutes.)

 

Blair Hamilton addressed the meeting in support of the submission relating to the Ashton Flats Road Bylaw.

 

Mr Hamilton advised that he is opposed to the Bylaw as he feels it is not needed.as an unformed legal road vehicles are restricted now it seems as if this is a means to charge for using this road.

 

Mr Hamilton advised the Council in its draft does not mention who will make a decision for access or how this process will be administered for this area.

 

Mr Hamilton felt this bylaw is poorly advertised given there is an environmental court hearing taking place at this time for a cycle trail in the same area.

 

Alan Leitch representing the Wyndham Angling Club addressed the meeting in relation to the Ashton Flats Road Bylaw.

 

Mr Leitch advised the Wyndham Angling Club view with great concern the proposal and also the timing of the above bylaw.

 

Mr Leitch informed that coming as it did before the cycle trail hearing process was complete was not considered by the club to be helpful at all.

 

Mr Leitch commented that they do not believe that the proposal has been thought through properly and is not the best presentation that has been seen from the Southland District Council.

 

The Wyndham Angling Club do not agree with Council’s decision to pursue a restrictive bylaw especially at this time with the appeal process still unresolved. Whichever way the appeal goes the bylaw will probably have to be revisited again just making more work for the Council and another round of submissions.

 

The Club felt Council should hold the process until the court brings down its verdict on the cycle trail and if it is not Council’s intention to do so then then the Club remain opposed to this proposed draft bylaw.

 

Jenny Green, representing the Southland District Council Submission addressed the meeting in relation to the Draft Signs and Objects on roads and Footpaths Bylaw 2016.

 

Ms Green advised that whilst the overall approach of the Draft Bylaw is supported it is suggested that following staff discussions some minor amendments to the Draft Bylaw would provide greater flexibility, certainty and clarity.

 

Ms Green suggested the amendments as outlined in the submission be considered by Council as the aim of the Bylaw is to make the permit process simple and easy.

 

 

Resolution

Moved Cr Douglas, seconded Cr Dillon  and resolved:

That the Council:

a)         Receives the report titled “Schedule of Oral Submitters for Draft Gambling Venue Policy and Draft TAB Venue Policy, Ashton Flats Road Bylaw and Draft Signs and Objects on Footpaths and Roads Bylaw 2016” dated 10 August 2016.

 

b)         Thank the Submitters for their attendance.

 

7.3

Submissions on draft Signs and Objects on Roads and Footpaths Bylaw 2016

Record No:         R/16/7/11189

 

Report by Jenny Green, Senior Resource Management Planner, outlining the draft Signs and Objects on Roads and Footpaths Bylaw 2016 currently out for public consultation and the submissions received.

 

 

Resolution

Moved Cr Kremer, seconded Cr Dobson  and resolved:

That the Council:

a)         Receives the report titled “Submissions on draft Signs and Objects on Roads and Footpaths Bylaw 2016” dated 10 August 2016.

 

7.4

Submissions on draft Cemetery Bylaw 2016 and draft Cemetery Policy

Record No:         R/16/7/11190

 

Report by Jenny Green, Senior Resource Management Planner, outlining the draft Cemetery Bylaw 2016 and draft Cemetery Policy currently out for public consultation and the submissions received.

 

 

Resolution

Moved Cr Paterson, seconded Cr Harpur  and resolved:

That the Council:

a)         Receives the report titled “Submissions on draft Cemetery Bylaw 2016 and draft Cemetery Policy” dated 10 August 2016.

 

 

7.5

Submissions on Gambling Venue Policy and draft TAB Venue Policy

Record No:         R/16/7/11194

 

Report by Jenny Green, Senior Resource Management Planner, outlining the Gambling Venue Policy and draft TAB Venue Policy currently out for public consultation and the submissions received.

 

 

Resolution

Moved Cr Paterson, seconded Cr Baird  and resolved:

That the Council:

a)         Receives the report titled “Submissions on Gambling Venue Policy and draft TAB Venue Policy” dated 10 August 2016.

7.6

Submissions on draft Ashton Flats Road Bylaw 2016

Record No:         R/16/7/11209

 

Report by Ian Marshall, Group Manager Services and Assets, outlining the draft Ashton Flats Road Bylaw 2016 currently out for public consultation and the submissions received.

 

 

Resolution

Moved Cr Keast, seconded Cr Dobson  and resolved:

That the Council:

a)         Receives the report titled “Submissions on draft Ashton Flats Road Bylaw 2016” dated 9 August 2016.

 

9.4

Minutes of the Council Meeting dated 7 April 2016

Record No:         R/16/7/10934

 

The meeting noted that these minutes were confirmed earlier in the meeting.

 

 

 

The meeting concluded at 1.40pm.               CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Council HELD ON WEDNESDAY, 17 AUGUST 2016.

 

 

 

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

 

 

 

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

 


 

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