Notice is hereby given that an Ordinary Meeting of Southland District Council will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Wednesday, 5 September 2018

9am

Council Chamber
15 Forth Street, Invercargill

 

Council Agenda

OPEN

 

MEMBERSHIP

 

Mayor

Mayor Gary Tong

 

Deputy Mayor

Paul Duffy

 

Councillors

Stuart Baird

 

 

Brian Dillon

 

 

John Douglas

 

 

Bruce Ford

 

 

Darren Frazer

 

 

George Harpur

 

 

Julie Keast

 

 

Ebel Kremer

 

 

Gavin Macpherson

 

 

Neil Paterson

 

 

Nick Perham

 

 

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

 

 

 


 


Council

05 September 2018

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                4

2             Leave of absence                                                                                                                                                4

3             Conflict of Interest                                                                                                                                             4

4             Public Forum                                                                                                                                                         4

5             Extraordinary/Urgent Items                                                                                                                        4

6             Confirmation of Council Minutes                                                                                                             4

Reports - Policy and Strategy

Nil

Reports - Operational Matters

8.1         Approval for unbudgeted expenditure from Waihopai Toetoes Ward Reserves - FlagTrax                                                                                                                                                                   5

Reports - Governance

9.1         Southland Regional Development Agency Update                                                                       9   

Public Excluded

Procedural motion to exclude the public                                                                                                         23

C10.1    Stewart Island/Rakiura Jetties - Maintenance                                                                                23  


 

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.

 

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 Council Minutes

There are no minutes for confirmation.

 


Council

5 September 2018

 

Approval for unbudgeted expenditure from Waihopai Toetoes Ward Reserves - FlagTrax

Record No:             R/18/8/19708

Author:                      Shaun Holland, Community Engineer

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

Purpose

1        To recommend to Council the approval of unbudgeted expenditure of $15,000, for Flagtrax at Tokanui, Edendale, Wyndham and Gorge Road to be funded from the Waihopai Toetoes Ward Reserves for the year to 30 June 2019.

 

Recommendation

That the Council:

a)            Receives the report titled “Approval for unbudgeted expenditure from Waihopai Toetoes Ward Reserves - FlagTrax” dated 27 August 2018.

 

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 unbudgeted expenditure of $15,000 in relation to Flagtrax at Tokanui, Edendale, Wyndham and Gorge Road to be funded from the Waihopai Toetoes Ward Reserves for the year to 30 June 2019.

 

 


 

Background

2        Until recently, individual townships within the Waihopai Toetoes Ward placed flags each year in Edendale, Woodlands, Wyndham and Tokanui to celebrate Anzac Day. Unfortunately, this was halted due to the cost of installation and removal of the flags as they needed to be installed by specialised personnel using a bucket truck.

3        After some investigation the Community Engineer team identified a system called Flagtrax. This is a fixed track which allows flags to be installed from the ground with the appropriate tool. This system opens up many opportunities to use different flags to celebrate events within the towns such as Anzac Day, Christmas, A&P shows and Crank-up Day.

4        To ensure consistency and to get the best deal we can from the flag maker and Flagtrax supplier, we would now like to increase our total numbers and include Gorge Road Township in this project.

5        Effectively this means we will use a total of approximately $27,000 from Ward reserves ($12,000 was already budgeted for this project). This would include the supply of the Flagtrax rails and supports, installation and supply of Anzac Day flags. Additional flags for the different townships can be developed and purchased at a later date.

6        Woodlands and Riverton have funding in place through their LTP and have also taken up the opportunity to place an order with the manufacturer. This has helped to increase the overall discount we have received from the supplier.

Legal and Statutory Requirements

7        There are no legal or statutory requirements to consider.

Community Views

8        Feedback through the Boards and CDA’s has been positive with the respective communities always proud to celebrate the various events within their communities.

Costs and Funding

9       Edendale

·    8 x FlagTrax NFT-001 3000mm x 1040mm PC Silver Quill. 

·    5 x Bracket NFT-B004 - Flat (Concrete Poles)

·    3 x NFT-B004 – 70 – 150 Timber Round Poles Galvanised 

·    Track to be band-it strapped to poles.  Pole fixings installers concern.  $5,200.00.

10      Wyndham

·    8 x FlagTrax NFT-001 3000mm x 1040mm PC Silver Quill. 

·    8 x Bracket NFT-B004 - Flat (Concrete Poles).

·    Track to be band-it strapped to poles.  Pole fixings installers concern.  $5,200.00.


 

11      Tokanui

·    4 x FlagTrax NFT-001 3000mm x 1040mm PC Silver Quill. 

·    4 x Bracket NFT-B004 - Flat (Concrete Poles)

·    Track to be band-it strapped to poles.  Pole fixings installers concern.  $2,600.00.

12      Gorge Road

·    5 x FlagTrax NFT-001 3000mm x 1040mm PC Silver Quill.

·    4 x Bracket NFT-B004 - Flat (Concrete Poles4

·    1 x NFT-B004 – 70 – 150 Timber Round Poles Galvanised 

·    Track to be band-it strapped to poles.  Pole fixings installers concern.  $3,250.00

                                 Freight total $  500.00

                                                                                                         Total         $16,250.00

13      The additional costs are born by the flag supply of $3,000 and an allowance for installation of $7,750.00 which gives the total of $27,000.

Policy Implications

14      This is considered to be a specialist system that is not able to be competitively tendered. As such, the proposal is considered to comply with the Procurement Policy.

Analysis

Options Considered

15      There are three options for consideration:

Analysis of Options

Option 1 – Do nothing

Advantages

Disadvantages

·      No cost.

·      Does not meet the desire of the community.

Option 2 – Install flags via bucket truck

Advantages

Disadvantages

·      Flags installed.

·      Extremely expensive and time consuming.

·      Unobtainable within township budgets.

·      Traffic management constraints.

·      Ongoing costs.

 


 

Option 3 – Install Flagtrax system

Advantages

Disadvantages

·        Flags loaded from the ground by the Community Engineer or township representative

·        Meets health and safety and traffic management requirements.

·        Consistency across the townships.

·        Multiple use of Flagtrax across differing events.

·      Initial costs

16      Recommended Option: 3.

Next Steps

17      Following the decision from the Council, the option taken will be actioned by Council staff.

 

Attachments

There are no attachments for this report.  

  


Council

5 September 2018

 

Southland Regional Development Agency Update

Record No:             R/18/8/19882

Author:                      Steve Ruru, Chief Executive

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

Purpose

1        To brief Council on the progress that has been made with the formation of the proposed new Southland Regional Development Agency (SRDA), seek the appointment of a Council representative on the Joint Shareholders Committee and confirmation of the process to be used to appoint the new directors.

Executive Summary

2        At its 20 April 2018 meeting Council agreed to proceed with the formation of the new Southland Regional Development Agency (SRDA) as a council controlled organisation. The formation process has been advanced in general accord with the 38 propositions (refer Attachment A) that were confirmed as part of the April 2018 decision.

3        Work is well advanced with the development of a Shareholders Agreement, formation of the company itself and development of the purchasing agreements for the new Agency.

4        This paper outlines, and seeks endorsement of the process to be used to appoint the directors and appointment of a Council representative to the Joint Shareholders Committee.

 

Recommendation

a)                  That the Council receives the report titled “Southland Regional Development Agency Update” dated 24 August 2018.

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)           Endorses the process proposed to be followed to advertise for the appointment of directors to the Southland Regional Development Agency

e)            Note that a Shareholders Agreement is currently being drafted and will be brought back to Council for formal approval once finalised. 

f)             Appoint Mayor Tong as the Southland District Council representative on the Southland Regional Development Agency Joint Shareholders Committee.


 

Background

5        At its 20 April 2018 meeting Council agreed to proceed with the formation of the new Southland Regional Development Agency (SRDA) as a council controlled organisation. A similar decision was also made by the other three Southland Councils.

6        The formation of the new entity is to proceed in general accord with the 38 propositions (refer Attachment A) that were recommended by the Joint Committee that led the public consultation process on behalf of the four Southland local authorities. This report provides an update on the progress that has been made in progressing formation of the new entity.

Shareholders

7        The shareholders in the new SRDA entity are proposed to be: 

·      Councils – Invercargill City Council, Southland District Council; Gore District Council and Environment Southland.

·      Community – Chamber of Commerce, Southern Institute of Technology, Invercargill Licencing Trust, Mataura Licencing Trust, Community Trust of Southland.

8        Key actions to date in relation to the shareholders and the development of a Shareholders Agreement include:

·      Individual discussions about the transition process have been held with each of the shareholders and all have agreed to proceed. The community shareholders have generally indicated that they have discussed the matter with their boards.

·      A meeting of representatives of each of the shareholders was held on 16 August where the detail of the transition process and the role and responsibilities of the shareholders was discussed.

·      A draft of the proposed content of the Shareholders’ Agreement has been circulated and agreed in broad principle. It is now being referred for legal drafting. Legal advice to assist has been appointed.

·      Shareholders are to appoint a Joint Shareholders Committee to oversee shareholder interests including the appointment of the Directors. That Committee will be ongoing.

·      Ngai Tahu has taken the decision not to be a shareholder although they have been actively involved so they are aware of what is happening. Ngai Tahu is to enter into a Memorandum of Understanding with the four Southland Councils. This is close to being finalised.

9        The next steps include:

·      Shareholders’ Agreement to be legally drafted and returned to shareholders (including Councils) for review and ratification.

·      Each shareholder needs to appoint an individual who will be their representative on the Joint Shareholders’ Committee. The committee appoints the board of the SRDA.

·      The Ngai Tahu MOU to be finalised and submitted to each of the Councils for formal endorsement.

Formation of the SRDA Entity

10      This work stream involves the formation and registration of the SRDA as a company under the Companies Act 1993. As part of this process work is being progressed to look at how the taxation and other implications of being a company structure are best managed.

11      This step cannot be completed until the legal drafting of the Shareholders Agreement has been completed and it has formally endorsed by all of the shareholders including the four Councils.

Appointment of the Board

12      It is proposed to proceed with the process of advertising for expressions of interest for potential directors ahead of the legal process of forming the SRDA entity being completed. This will, however, need to be completed before the appointments can be confirmed. 

13      Key points to note about the process proposed include:

·      Contact has been made with Sheffield to act as a “post box” for applications and they have agreed.

·      Nominations are to be called for publicly and the appointment process will be public.

·      The nominations will go before a panel. The panel is likely to be three persons nominated by the Joint Shareholders Committee.

·      The board will be appointed using the skills register outlined in the propositions paper attached (Attachment A).

·      In inviting prospective board members an outline of board responsibilities will be provided.

·      A short list of potential candidates will be interviewed by a small group appointed by the Joint Shareholders Committee.

SRDA Purchase Agreements

14      This work stream covers the development of the letter of expectation, purchase agreements and business plan for the SRDA. Through this work stream each of the individual Councils will need to be clear about what it is that they are purchasing.

15      Key points to note include:

·      Active work is being done to assess what outcomes and services the shareholders wish to purchase from the new entity.

·      A process has been developed for each of the shareholders, particularly the Councils, to establish a split between core funding and contract funding. Core funding will be provided by the four Councils based on population.

·      The outline of what the shareholders would like to purchase will then be presented to the new board for them to consider.

·      The management of Venture Southland is also participating in this exercise.

·      Individual meetings will be held with each of the shareholders to discuss the range of services, if any, that they may want to purchase.

·      A workshop of representatives from all shareholders will then work together to rationalise the procurement preferences of the shareholders and prepare a single document.

Issues

16      This paper seeks to provide an update on each of the major work streams associated with the formation of the new entity.

17      It also seeks Council endorsement of the process that is proposed to be followed for the appointment of the directors and the appointment of a representative to the Joint Shareholders Committee. It is this committee that will have the responsibility for determining a process to appoint the SRDA directors.

Factors to Consider

Legal and Statutory Requirements

18      The SRDA will be formed as a company under the Companies Act 1993 and also be subject to the council controlled organisation requirements outlined in the Local Government Act 2002.

Community Views

19      Council has previously consulted on the formation of the new SRDA as a council controlled organisation. There was general community support for this approach. 

Costs and Funding

20      The costs associated with formation of the SRDA will be funded from the shared services budget.

Policy Implications

21      The process to be followed for the appointment of SRDA directors is consistent with the Appointment of Directors Policy.

Analysis

Options Considered

22      The range of options considered are for Council to confirm the appointment of a Council representative and process proposed for the appointment of SRDA directors (Option 1) or request for changes to be made to the director appointment process (Option 2).

 

 

 

Analysis of Options

Option 1 – Confirm Process

Advantages

Disadvantages

·        Allows for formation of the SRDA to proceed in accordance with the timetable and propositions originally agreed

·        Is consistent with the approach being agreed to by the other Councils and shareholders.

·        Is consistent with the approach previously endorsed by Council via the 38 propositions in April 2018.

·        None identified.

 

Option 2 – Change Process

Advantages

Disadvantages

·        The process can be modified to address any concerns held by Council. 

·        Will delay the process of appointing the new directors and establishment of the SRDA.

·        Any changes will need to be endorsed by the other three Southland Councils.

Assessment of Significance

23      The matters being addressed through this report are administrative in nature. Hence, the item is considered to be not significant.

Recommended Option

24      It is recommended that Council endorse Option 1 and confirm the appointment of Mayor Tong as the Council representative on the SRDA Joint Shareholders Committee and the process proposed to appoint the SRDA directors.

Next Steps

25      The Shareholders Agreement will be finalised and advertising for expressions of interest for the appointment of directors will begin.

 

Attachments

a             Draft proposals arising from the public consultation and panel process on the insitutional arrangements for regional devlopment in Southland    

 


Council

05 September 2018

 


 


 


 


 


 


 


 


 

  

 


Council

05 September 2018

 

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.

C10.1 Stewart Island/Rakiura Jetties - Maintenance

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

Stewart Island/Rakiura Jetties - Maintenance

s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege.

 

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.