Agenda of Council - 20 March 2018

Council

20 March 2018

Reports

Dunedin Provisional Local Alcohol Policy

Department: Corporate Policy and Customer and Regulatory Services

EXECUTIVE SUMMARY

1 This report recommends that an amended Provisional Local Alcohol Policy (PLAP) for Dunedin is resubmitted to the Alcohol Regulatory and Licensing Authority (ARLA), following the successful appeal in 2016 of some elements of the first notified Dunedin PLAP.

2 The Council resolved in 2015 to adopt a Local Alcohol Policy (LAP) in accordance with the object of the Sale and Supply of Alcohol Act 2012 (the Act). The object of the Act is that harm caused by excessive or inappropriate consumption of alcohol should be minimised, and that the sale, supply, and consumption of alcohol should be undertaken safely and responsibly.

3 ARLA has referred four of the appealed elements of the PLAP back to the Dunedin City Council (DCC) for reconsideration. Options are presented in this report with the proposed option that off licence hours are changed from 9am–9pm to 7am-10pm, and that three other appealed elements are removed from the PLAP. This is the most likely option to be accepted by ARLA and by appellants. If accepted it would allow the LAP to become operative, enabling the District Licensing Committee (DLC) to have the benefit of the LAP as part of their decision making on licence applications.

RECOMMENDATIONS

That the Council:

a) Rescinds March 2017 Council resolution that “A two year trial period for off licence hours of 7am-10pm would be run followed by a further two year restriction of 7am-9pm. A research study would be developed in consultation with the University, Medical Officer of Health and Police to gather data on alcohol related harm during this period”.

b) Decides whether to approve an amended Dunedin Provisional Local Alcohol Policy, as at Attachment A, for resubmission to the Alcohol Regulatory and Licensing Authority with the date of effect, if adopted, five working days after the Local Alcohol Policy adoption.

c) Agrees to work with relevant agencies to monitor the effectiveness of a Local Alcohol Policy

BACKGROUND

This section summarises the relevant legislation, and the process of Dunedin’s draft LAP to date.

Sale and Supply of Alcohol Act 2012

4 The Act 2012 allows territorial authorities to develop LAPs that must be taken into consideration by the DLCs and ARLA when considering applications for alcohol licences. The object of the Act is that harm caused by excessive or inappropriate consumption of alcohol should be minimised, and that the sale, supply, and consumption of alcohol should be undertaken safely and responsibly.

5 The LAP may include policies on any or all of the following matters relating to licensing:

a) Location of licensed premises by reference to broad areas

b) Location by reference to proximity to premises of a particular kind or kinds

c) Location by reference to proximity to facilities of a particular kind or kinds

d) Whether further licences, or licence of a particular kind, should be issued in the district

e) Maximum trading hours

f) The issue of licences with discretionary conditions

g) One-way door restrictions.

6 During the development of the draft LAP the Council must have regard to:

a) The objectives and policies of the District Plan

b) The number, location and operating hours of existing licensed premises

c) The extent of any alcohol prohibition in public places

d) Demography of the district’s residents

e) Demography of visitors to the area

f) The overall health indicators of the districts residents

g) The nature and severity of alcohol-related problems in the district.

7 While there are some regulations around the promotion of alcohol, regulating the price of alcohol is outside the scope of LAPs.

Draft Local Alcohol Policy consultation

8 While not mandatory, the DCC developed a draft LAP in 2014, in consultation with the Medical Officer of Health, Police, licensing inspectors and the hospitality industry. The draft LAP was made available for the public to consider from 1 September-10 October 2014.

9 The period of public consultation resulted in 4,262 submissions to the Council. Of these, 79% were submitted on forms developed by Hospitality NZ and the Dunedin Inner City Licensing Forum, a group of inner city licensed premises. Nineteen percent were sent by individuals and two percent were sent by organisations and businesses. 87% of submissions did not support the general direction of the draft LAP.

Provisional Local Alcohol Policy

10 The LAP Hearings Sub-committee finalised the Provisional LAP (PLAP) which the Council considered in June 2015. It adopted the draft PLAP for public notification from 6 July 2015. Main points of the draft PLAP are:

(i) Premises location: other than allowed in the Dunedin District Plan, licences will not generally be granted to new hotels, taverns/pubs or bottle stores within 100m of any educational or recreational facility or playground likely to attract predominantly young people under the legal purchase age, or any health facility.

Outlet density: there will be a moratorium on new off-licence premises in the area north of the Octagon bound by Stuart Street and Moray Place (south), Filleul and Queens Streets, the Gardens Village and Anzac Avenue until the first review of this policy. The exception to this will be specialist, premium wine stores and breweries selling their own product. This is to address concern at the relatively high number of off-licensed premises in that area.

(ii) Maximum occupancy: all on-licence and club licensed premises must clearly display the maximum occupancy of their premises beside the licence at the principal entrance.

(iii) Trading hours:

On-licence in or adjacent to Metropolitan Residential Areas	Sunday to Thursday 9 am to 11 pm Fridays and Saturdays 9 am to 12 midnight
On-licence in non-residential areas – Hotels and Taverns/Pubs	Monday to Sunday 8 am to 3 am the following day · 2.30 am one-way door
On-licence in non-residential areas – Restaurants/Cafes	Monday to Sunday 8 am to 1 am the following day
On-licence in non-residential areas – Entertainment premises	5 pm to 4 am the following day Premises will be required to have: · Live Entertainment · Door charge · 2.30 am one-way door
On-licence in remote areas	Monday to Sunday 8 am to 2 am the following day
Off-licence premises	Monday to Sunday 9 am to 9 pm
Club licensed premises	Sunday to Thursday 10 am to 11 pm Fridays and Saturdays 10 am to 12 midnight

(iv) Entertainment venues: when there is a genuine entertainment venue, one that is characterised by live entertainment, the sub-committee believes this should be catered for and have allowed them to have a 4 am closing time. This is conditional on there being live entertainment, a cover charge and a one-way door from 2.30 am.

(v) One-way doors: to assist the licensees begin winding down for the night and to start reducing the numbers of people on the streets, a one-way door will be applied by the DLC to take effect at the least 30 minutes before the licensed closing time.

(vi) Alcohol management plans: a requirement that all applications for the issue and renewal of off-licence premises are accompanied by alcohol management plans.

(vii) Planning certificate: a requirement that an application for an off-licence is accompanied by a certificate from the DCC planning department.

Appeals to the PLAP

11 At the end of the notification period, there were six appellants who claimed that elements of the PLAP were unreasonable in light of the object of the Act. Appellants were: Foodstuffs South Island Limited; The Mill Retail Holdings Limited and Independent Liquor (NZ) Limited; Dunedin Hospitality Group; New Zealand Police; Ignition Group Limited; and Progressive Enterprises Limited. Ellis Hospitality Group was also granted leave to appear at the Hearing.

12 Five elements of the PLAP were appealed and these were: the maximum trading hours for off licence hours and the one-way door policy; the moratorium on new off-licence premises; the requirement for alcohol management plans for off-licences; the requirement for a certificate from the DCC planning department for off-licences; and the creation of a new on-licence entertainment premises in non-residential areas.

ARLA hearing and decision

13 Hearings were held in November and December 2016. In February 2017, ARLA made its decision to refer four of the appealed elements of the PLAP back to the Dunedin City Council (DCC) for reconsideration. The four elements were the maximum trading hours for off licence hours; the moratorium on new off-licence premises; the requirement for alcohol management plans for off-licences; and the requirement for a certificate from the DCC planning department for off-licences.

14 The reason for ARLA referring the last three of these elements back to the DCC for reconsideration was that the elements are outside the scope of the Act. The reason for the maximum trading hours for off-licences was that it was unreasonable – there was insufficient local evidence that the proposed changes in off-licence trading hours would minimise alcohol related harm.

15 The appeal against the creation of a new on-licence entertainment premises in non-residential areas was dismissed.

Since the ARLA decision

16 After the February 2017 ARLA decision, the Council resolved in March 2017 that, “A two year trial period for off licence hours of 7am-10pm would be run followed by a further two year restriction of 7am-9pm. A research study would be developed in consultation with the University, Medical Officer of Health and Police to gather data on alcohol related harm during this period”.

17 Legal advice was sought on the Council’s options for reconsidering elements of the PLAP. Progress of other Council’s PLAPs through ARLA was also watched with interest. The Auckland Council PLAP proposed similar elements, specifically in relation to off-licence hours. ARLA’s decision on the Auckland PLAP was made in July 2017 and this was considered in detail as options for Dunedin were reviewed.

18 In July 2017, further discussions were held with the University of Otago Vice Chancellor and Prof Kyp Kypri, an international researcher, about the feasibility of the proposed two year trial for restricted off licence hours and the associated research study. While such a study is possible it would be expensive with no guarantee of statistically significant results. The change of only one hour, from 10pm to 9pm and back again, will make it difficult to detect an effect, even if there was one, because of the ‘blunt tools’ the Police and hospital currently have available. A study could be designed with more sensitive measures, such as breath testing at sentinel sites, but it would be expensive and would require several ‘control’ areas so the study would be wider than Dunedin.

19 Further legal advice on the Council’s options for reconsidering elements of the PLAP was sought again in light of the information provided by Prof Kypri and the Auckland PLAP decision with the PLAP being amended appropriately.

20 Discussions with Police, the Medical Officer of Health and the University of Otago acknowledged that the desired trial was not realistic. All parties are keen to realise the benefits of the LAP as soon as possible e.g. on-license hours and a one-way door policy, and therefore support the abandonment of a trial concept.

DISCUSSION

21 The Council needs to reconsider the four appealed elements that were upheld by ARLA before the PLAP can become operative. Once the LAP is in force, the DLC will have the benefit of the LAP as part of their decision making on licence applications.

22 Specific benefits of having the amended PLAP approved include

a) The 3am closing time for on-licensed premises (currently 4am);

b) The introduction of a one-way door from 2.30am;

c) The 10pm closing for off-licences if that is accepted by ARLA (rather than 11pm);

d) The Alcohol Management Plan would be a discretionary condition to be imposed by the DLC if it considered appropriate.

23 LAP measures should then help with the intent of the Act in Dunedin: that harm caused by excessive or inappropriate consumption of alcohol is minimised; and that the sale, supply, and consumption of alcohol should be undertaken safely and responsibly.

24 It is proposed that three of the appealed elements are removed from the PLAP. These elements are: the moratorium on new off-licence premises; the requirement for alcohol management plans for off-licences; and the requirement for a certificate from the DCC planning department for off-licences. ARLA referred these elements to the DCC for reconsideration because they are outside the scope of the Act.

25 It is also proposed to resubmit to ARLA the maximum trading hours for off-licences of 7am-10pm (rather than the PLAP hours of 9am-9pm). The reason that the proposed maximum trading hours for off-licences was referred to the DCC for reconsideration was they are unreasonable; there was insufficient evidence that the proposed changes in off-licence trading hours would minimise alcohol related harm in Dunedin. Currently, hours are 7am-11pm which are the hours specified in the Act and are the default hours in the absence of a LAP. The draft LAP proposed hours of 8am to 10pm. The 8am restriction is likely to suffer the same deficiencies in terms of evidential support as the 9am restriction. A 10pm restriction had broad support in submissions on the Draft LAP.

26 Other Councils’ LAPs have been subject to similar appeals. The Auckland Council’s PLAP off-licence hours of 9am–9pm were also appealed. ARLA upheld the appeal relating to 9am opening on the grounds that alcohol related harm could not be established in the morning, but accepted 9pm closing on the strength of the evidence presented.

27 Specific proposed amendments to the PLAP are detailed in Attachment A.

28 Once a LAP is in force, it must be reviewed within six years and, thereafter, within six years of the previous review. Part, or all, of the LAP may be reviewed anytime within the six year period. The reviews will provide an opportunity for the DCC to amend elements in light of new or additional evidence gained in relation to alcohol-related harm in Dunedin.

29 Also, in March 2017, the Council resolved that, “A two year trial period for off licence hours of 7am-10pm would be run followed by a further two year restriction of 7am-9pm. A research study would be developed in consultation with the University, Medical Officer of Health and Police to gather data on alcohol related harm during this period”.

30 Stakeholders agree it would be more effective to work alongside one another to monitor the effectiveness of the LAP, if it is introduced. It is recommended that the March 2017 recommendation is rescinded and, instead, that the DCC work with relevant agencies if the LAP is adopted.

31 The LAP, once adopted, must be reviewed no later than six years from the date of adoption. However, various components can be reviewed earlier if Council believes it is appropriate.

OPTIONS

32 There are two options available to Council.

Option One – (recommended) Approve amended PLAP for resubmission to ARLA with maximum off licence hours trading hours of 7am-10pm and removal of three other appealed elements

33 This option involves resubmitting the off licence hours element of the PLAP to ARLA. Resubmitted hours would be 7am opening and 10pm closing. Hours proposed in the 2015 PLAP were 9am opening and 9pm closing. This was the basis of some of the appeals and ARLA asked the DCC to reconsider this element of the PLAP.

34 This option also removes the three other appealed elements of the PLAP that ARLA referred for reconsideration, namely: the moratorium on new off-licence premises; the requirement for alcohol management plans for off-licences; and the requirement for a certificate from the DCC planning department for off-licences.

Advantages

· Unlikely to be appealed

· Minimise potential risks of costs relating to appeals

· Would allow LAP to be adopted and made operative enabling the DLC to have the benefit of the LAP as part of their decision making on licence applications.

Disadvantages

· Less potential to minimise alcohol related harm with longer off licence opening hours than first proposed.

Option Two – (status quo) Abandon the PLAP

35 This option involves abandoning the PLAP and not adopting an LAP for Dunedin.

Advantages

· No further costs would be incurred.

Disadvantages

· Opportunities to minimise alcohol related harm in Dunedin with a LAP are lost

· Momentum and efforts to date may be lost

· If Council wished to draft a LAP in the future, a potentially long and costly process may be repeated.

NEXT STEPS

36 If the Council approves the amended PLAP the next steps, as set out in the Act, are summarised as follows:

a) The amended PLAP is circulated to appellants for feedback (say three weeks)

b) All submitters are notified of proposed amendments to the PLAP

c) Amended PLAP is submitted to ARLA

d) If ARLA accepts the PLAP, then it is adopted on that day

e) Once adopted, all affected licensees and the public are notified of the adoption of the LAP and the LAP is circulated to licensees

f) The adopted LAP is brought into force on a day resolved by the Council (recommendation is five working days after adoption)

g) The new trading hours and one way door restriction will take effect three months after the adoption of the LAP.

37 If ARLA does not accept the resubmitted PLAP, Council would need to reconsider its next steps.

38 If the Council does not approve the amended PLAP there is no further action.

Signatories

Author:

Anne Gray - Policy Analyst

Kevin Mechen - Secretary, District Licensing Committee

Authoriser:

Adrian Blair - Group Manager Customer and Regulatory Services

Simon Pickford - General Manager Community Services

Attachments

Title

Page

Draft Amended PLAP 22 Jan 2018 with track changes

Draft Amended PLAP without track changes

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision/report/proposal relates to providing a regulatory function and it is considered good-quality and cost-effective.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☒	☐	☐
Economic Development Strategy	☒	☐	☐
Environment Strategy	☐	☐	☒
Arts and Culture Strategy	☒	☐	☐
3 Waters Strategy	☐	☐	☒
Spatial Plan	☒	☒	☐
Integrated Transport Strategy	☐	☐	☒
Parks and Recreation Strategy	☒	☐	☐
Other strategic projects/policies/plans	☐	☐	☒

This proposal contributes to most strategies: Social Wellbeing priorities of vibrant and cohesive communities, and healthy and safe people; Economic Development priority of a compelling destination; Arts and Culture priority of identity pride; Spatial Plan priorities of liveable city, and vibrant and exciting city; and Parks and Recreation priority of open spaces supporting Dunedin’s communities to thrive.

Māori Impact Statement

If a LAP is adopted, the Maori Participation Working Party and Arai Te Uru Whare Hauroa will be notified of its adoption.

Sustainability

The LAP aims to improve the economic and social sustainability of Dunedin by ensuring vitality in the hospitality industry.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no known implications for the LTP/Annual Plan/Financial Strategy/Infrastructure Strategy.

Financial considerations

If the amended PLAP is adopted there are no known financial implications. However, if the amended PLAP is appealed there will be process related costs; the quantum of these is unknown.

Significance

Overall, the PLAP is considered moderate significance in terms of the Council’s Significance and Engagement Policy. There is high interest from the hospitality industry and from the community generally. The PLAP is consistent with current policies and strategies.

Engagement – external

The proposed amended PLAP is the result of a thorough engagement process as outlined in the Act. There were 4,262 submissions during consultation on the draft LAP.

The Police and Medical Officer of Health are supportive of the proposed approach.

If the Council decides to resubmit the amended PLAP to ARLA, the process is that: the amended PLAP is circulated to appellants for feedback; all submitters are notified of proposed amendments to the PLAP; the amended PLAP is submitted to ARLA; if ARLA accepts the PLAP and it becomes adopted all affected licensees and the public are notified of the adoption of the LAP and the LAP is circulated to licensees. The adopted LAP may then be brought into force on a day resolved by the Council (staff recommendation is five working days after adoption). New trading hours and one way door restriction will take effect at least three months after its adoption. Legal opinion was sought and provided throughout the process.

Engagement - internal

There has been discussion between the various Regulatory teams.

Risks: Legal / Health and Safety etc.

Although there is some financial risk if the amended PLAP is appealed by a party who made a submission, this is considered unlikely given that the draft PLAP has been amended in accordance with appeals, particularly in regard to maximum trading hours of off-licence premises.

Conflict of Interest

There is no known conflict of interest.

Community Boards

Community Boards were sent copies of the draft LAP and given the opportunity to respond. If the LAP is adopted, Community Boards will be notified of its adoption.

Council

20 March 2018

Gambling and TAB Venue Policy

Department: Hearings Committee

EXECUTIVE SUMMARY

1 This report presents the findings of the Hearings Committee (the Committee) on the review of the Gambling and TAB Venue Policy (GVP) to the Council and recommends that the attached Gambling and TAB Venue is adopted.

2 The proposed policy will extend the sinking lid across the whole of the Dunedin District and introduces a ‘relocation’ clause for when a gambling venue is unable to be used because of some natural event or disaster beyond the control of the operator. Relocation of a venue cannot take place to the South Dunedin area as defined in the previous policy.

RECOMMENDATIONS

That the Council:

a) Adopts the Gambling and TAB Venue Policy, Attachment A to this report, with the inclusion of a relocation clause, with a date of effect 21 March 2018.

BACKGROUND

3 The Gambling Act 2003 and Racing Act 2003 require Councils to have a policy relating to class 4 gambling venues and New Zealand Racing Board venues (TABs) and they must be reviewed at least every three years using the special consultative process detailed in the Local Government Act 2002. Section 33 of the Gambling Act states that racing clubs under the Racing Act, which includes TABs, must be treated as corporate societies for the purposes of class 4 venues. The Council decided the two should be incorporated in one policy.

4 The Gambling Act also requires Councils to decide if and when they will grant consent to gambling venues which want to relocate.

5 The recommendations of the Committee are made following the special consultative procedure, where the proposed policy was available for public comment during November 2017. The Committee heard submitters and deliberated on the information before it in February 2018.

DISCUSSION

6 The Committee considered the 56 submissions made on the GVP. Of these approximately 19 were from organisations and the remainder were from individuals.

7 Thirty-five submitters (63%) agreed overall with the general direction of the proposed policy and 20 (36%) did not agree overall with its general direction. Two did not state a view.

8 The majority of submitters (63%) selected the proposed option of extending the sinking lid, already in place in South Dunedin, to the whole Dunedin district and not allowing gambling venues to relocate. Twenty-one percent of submitters selected the status quo option of retaining the sinking lid in South Dunedin only and not limiting the number of venues or electronic gambling machines (EGMs) for the rest of the Dunedin area while keeping limits on where gambling may be established. Thirteen percent selected the option of not limiting the number of venues or EGMs anywhere in Dunedin, allowing gambling venues to relocate while maintaining the restriction on where new gambling venues may be established.

9 The Committee also heard the views of 10 submitters during hearings held for the GVP. Key issues raised through submissions and at hearings are summarised here.

a) Those opposed to the proposed policy made the following points:

· This is a strictly regulated industry which allows gambling in the community.

· The argument that reducing access to gambling will reduce gambling related harm is flawed – there is no supporting evidence for this premise. There is no correlation between the number of people presenting with problematic gambling and the number of EGMs available.

· Reducing community access to gambling will accelerate the move to the unregulated internet-based gambling.

· Class 4 gambling is a critical and sustainable source of funding for community organisations.

· Over 80% of the adult population gambles for entertainment.

· Problem gambling is not a prolific problem in New Zealand - only 0.3% of the adult population have problem gambling issues from all forms of gambling.

· In many instances problem gambling does not occur in isolation but instead it co-exists with other issues such as alcohol and drug abuse, depression, anxiety and domestic violence.

· Community based sport will suffer if trust money is reduced: there will be a greater financial burden placed on parents and children will suffer as a result

· There are unintended consequences with a loss of funding - some organisations and support groups would not be viable, e.g. ParaFed Otago.

· Without funding there will be a loss of facilities and services to the detriment of the community.

· The core purpose of class 4 gambling is to raise community funds. It is not intended to cause harm.

· In 2014, the National Gambling Study showed that 77% of adults participated in some form of gambling the previous year.

· An excellent, well-funded problem gambling treatment service exists.

· EGM numbers are naturally declining.

b) Those in support of the expansion of the sinking lid policy to encompass the whole Dunedin district made the following points:

· EGMs are designed to be addictive and are the major cause of gambling harm in the community.

· Each person with a gambling problem affects 5 – 10 other people (families, friends, work colleagues, businesses and the community).

· When parents have problems with gambling, it is often the children that suffer the most.

· EGMs lead to addiction, the breakdown of family units, domestic violence, children abused/abandoned, increases in crime to support the habit etc.

· People sometimes are not aware they have a problem until it is too late.

· Only 18% of adults use EGMs over a given year and only 1.7% on a weekly basis. 82% do not use EGMs.

· A sinking lid will not affect existing venues but will lead to a slow reduction in venue and EGM numbers over time. Such a policy should not have any immediate or significant impact of community funding.

· There is a difference between the number of people with gambling problems and those seeking help.

· 40% of regular EGM users report experiencing a problem at some point.

There is no evidence that the removal of EGMs leads to a ‘transfer’ to other types of gambling.

· While some say community groups would not survive without grants from gambling societies, only 10.2% of the charitable giving in New Zealand comes from this source.

Findings

10 At the conclusion of the deliberations the Hearings Committee found in favour of the proposed policy with the inclusion of a relocation clause. They believe the expansion of a sinking lid across the district will not greatly impact on the amount of funding available to the various groups in the community but will ensure no new venues or EGMs are introduced into the district.

11 The gambling societies represented at the hearings considered the current policy had the balance between harm minimisation and being able to provide grants to community groups and organisations ‘about right’ and recommended the retention of the current policy. Those people representing community groups believe more could be done and asked for a return to the former, more liberal policy.

12 The Hearings Committee was disappointed that the industry submitters minimised the harm being caused by the EGMs. While they acknowledged there was a small proportion of people that developed problematic gambling there was no consideration of the wider picture of the harm caused to the families, their work colleagues and employers of the gamblers.

13 Those in favour of the draft policy presented compelling evidence of the extent of harm in the community resulting from gambling. They indicated that while EGMs are not the only source of harm, they do represent the greatest cause for people seeking help. They considered that the draft policy would not affect existing venues but will ensure a gradual decline in machine numbers.

14 There was no evidence presented that would indicate the risk of a large number of gambling venues closing in the next three years, which is the life of this policy, therefore there should not be an impact on the amount of money available for grants to community groups.

15 The Hearings Committee is of the view that if a group or community organisation is of genuine benefit to that community there should be funding available from taxes. However, this is beyond the scope of this policy.

Relocation clause

16 An industry submitter asked for the inclusion of a ‘relocation clause’ because there are occasions when there is good reason for a venue operator to move premises. Examples included when, through no fault of the venue operator, the premises was no longer suitable for occupation or there was a ‘better’ option in a more desirable location.

17 The Hearing Committee looked at examples from other districts and accepts there will be occasions when it would be reasonable to allow a venue to be relocated. The Committee believes such occasions would be rare and recommends relocations are only available when a venue is no longer able to be occupied due to a fire or some natural event or disaster and rendering the premises uninhabitable in the long term.

18 Various other conditions recommended for a relocation approval include:

· The venue operator of the new location must be the same as the former location

· The maximum number of machines at the new location shall remain the same as the former location

· The new location must not be in any residential or recreational area, near or adjacent to any school, early childhood facility, place of worship or other community facility

· The South Dunedin sinking lid area (defined as Area 1 in the Gambling and TAB Venue Policy adopted on 19 August 2013) is excluded from the relocation provisions.

19 The exclusion of the South Dunedin area from the relocation provisions is because Council must consider the social impact of gambling in high-deprivation areas when deciding whether or not to include such a provision (section 102(5B) of the Gabling Act 2003). The area to be excluded is a high-deprivation area and has 12.9 EGMs per 1000 people living in the area compared to 3.7 EGMs per 1000 people in the rest of Dunedin. There are 5.2 EGMs per 1000 people in New Zealand.

Conclusion

20 On balance, and noting the submissions received during this process, the Committee recommends that the Council adopts the proposed Gambling and TAB Venue Policy, with the relocation clause, with a date of effect 21 March 2018 (Attachment 1).

Signatories

Author:	Councillor Aaron Hawkins - Chairperson
Authoriser:

Attachments

	Title	Page
a	Recommended Gambling and TAB Venue Policy	68

Council

20 March 2018

Draft DCHL Group Statements of Intent

Department: Finance and Corporate

EXECUTIVE SUMMARY

1 This report outlines the suggestions put forward by Councillors regarding the draft Dunedin City Holdings Ltd (DCHL) Group Statements of Intent (SoIs) considered by Council on 20 February 2018.

2 Several suggestions addressing the strategic framework and how the companies could give effect to this were received. These are included in the report but can be addressed by way of additional specific reporting in DCHL’s regular updates to Council.

3 The suggestion that Aurora Energy Ltd voluntarily comply with the Local Government Official Information and Meetings Act 1987 (LGOIMA) is covered fully in the report and next steps should Council decide to request an amendment, via DCHL, to the Aurora Energy Ltd SoI.

RECOMMENDATIONS

That the Council:

a) Decides if it wishes to request, via DCHL, that Aurora Energy Ltd amend its draft SoI to commit to voluntary compliance with the Local Government Official Information and Meetings Act 1987 (LGOIMA).

BACKGROUND

4 On 20 February 2018, Council considered the draft SoIs of:

· Dunedin City Holdings Ltd (DCHL)

· Aurora Energy Ltd

· City Forests Ltd

· Delta Utility Services Ltd

· Dunedin City Treasury Ltd

· Dunedin Railways Ltd

· Dunedin Stadium Property Ltd

· Dunedin Venues Management Ltd, and

· Dunedin International Airport Ltd.

5 Councillors were invited to submit questions or points of potential change to those SoIs to the DCC Chief Executive Officer (CEO) by Tuesday 27 February 2018.

6 The CEO received six suggestions for further attention.

7 The first suggestion, made by several Councillors, expressed the desire that Aurora Energy Ltd voluntarily comply with the LGOIMA and confirm its plans to do so in its Statement of Intent. High-level advice on the background and implications of this submission is provided in the Discussion section of this report.

8 The remaining suggestions were as follows:

a) That DCHL Group Companies will actively identify ways to contribute to Council’s target of a 100% reduction in net carbon emissions by 2050 (excluding methane). This would include actions to increase public transport use, uptake of electric vehicles by the community, and similar.

b) That DCHL Group Companies set and announce a target for take up of electric vehicles in their fleet.

c) That DCHL Group Companies align all activity with the Otago Regional Council’s list of pest species, in order to support Dunedin’s ecosystems and biodiversity outcomes.

d) That City Forests Ltd include in their SoI commentary about Douglas Fir as a wilding tree species, and how the company will investigate its appropriateness as a plantation crop in areas with ‘wilding pine’ issues.

e) That Dunedin Venues Management Ltd include in their SoI their plans to promote diversity of use at Forsyth Barr stadium, including ensuring representation of both male and female sports codes.

9 These suggestions have been discussed further with the Councillors who put them forward, and relevant subsidiary and associate companies (via DCHL). These suggestions can all be addressed by way of additional specific reporting in DCHL’s regular updates to Council, rather than requesting specific amendments to draft Statements of Intent. The additional reporting will focus on new projects and progress towards Council goals over time.

DISCUSSION

10 This section provides advice on one remaining suggestion on the voluntary compliance with LGOIMA by Aurora Energy Ltd, and discusses the implications.

11 Aurora Energy Ltd is an Energy Company as per the Energy Companies Act 1992. The company’s status as an Energy Company excludes it from the definition of Council Controlled Organisation under s6(4)(b) of the Local Government Act 2002. Given it is not defined as a CCO, LGOIMA does not apply to Aurora Energy Ltd.

12 Section 6(4)(b) of the Local Government Act was inserted into the Local Government Bill at Select Committee stage. The Select Committee received many submissions raising concerns about council-controlled organisations, particularly in relation to definitions, taxation, reporting requirements, compliance costs and objectives. The Select Committee agreed to clarify the distinction between different types of council organisations.

13 The Select Committee recorded that exemptions from the council-controlled organisation category were specified for businesses established under specific statutes with their own accountability provisions. Energy companies were included in this category, being established under the Energy Companies Act.

14 Until July 1 2017 Aurora had no employees and all of its activities were carried out by Delta Utility Services Ltd by way of contract. Delta Utility Services Ltd is a Council Controlled Organisation and subject to LGOIMA and had been responding to LGOIMA requests.

15 As an Energy Company, Aurora Energy Ltd is required to make a number of public information disclosures. The company publishes, among other things, its Asset Management Plan, Annual Reports, Statements of Intent, and pricing information on its website.

16 A number of mechanisms also exist for communication between Aurora Energy Ltd to DCHL as shareholder and DCC as ultimate shareholder. These include:

a) Regular briefings from the Chair of Aurora Energy Ltd to the DCHL Board at DCHL Board meetings;

b) Annual update to the DCHL Board from the Aurora Energy Ltd Board and Chief Executive;

c) Standard monthly KPI dashboard reporting to the DCHL Board;

d) Information provided to inform DCHL’s quarterly updates to Council; and

e) Six-monthly (Interim) and Annual Reports.

17 These processes do not however replicate the requirements of LGOIMA.

18 There are some procedural challenges that would need to be addressed if voluntary compliance with LGOIMA was requested. For example, voluntary compliance would not be subject to the auspices of the Office of the Ombudsman and some mechanism may need to be developed to monitor compliance.

NEXT STEPS

19 If Council request DCHL to make an amendment to Aurora Energy Ltd’s SoI, then Aurora Energy Ltd is obliged to consider DCHL’s comments on its draft SoI within two months of the commencement of the financial year (see s39(3) of the Energy Companies Act 1992).

Signatories

Author:

Dave Tombs - General Manager Finance and Commercial

Sandy Graham - General Manager Strategy and Governance

Authoriser:

Sue Bidrose - Chief Executive Officer

Attachments

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by and on behalf of communities.

Fit with strategic framework

	Contributes	Detracts	Not applicable
Social Wellbeing Strategy	☐	☐	☒
Economic Development Strategy	☐	☐	☒
Environment Strategy	☐	☐	☒
Arts and Culture Strategy	☐	☐	☒
3 Waters Strategy	☐	☐	☒
Spatial Plan	☐	☐	☒
Integrated Transport Strategy	☐	☐	☒
Parks and Recreation Strategy	☐	☐	☒
Other strategic projects/policies/plans	☐	☐	☒

Several of the suggestions deal with mechanisms that can be used by the companies to give effect to the strategic framework.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

This report is administrative only and the sustainability implications have not been considered.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no known implications.

Financial considerations

There are no known financial implications.

Significance

This decision is considered low in terms of the Council’s Significance and Engagement Policy.

Engagement – external

There has been communication with DCHL.

Engagement - internal

Suggestions have been received from Councillors.

Risks: Legal / Health and Safety etc.

High level legal advice has been received on the suggestion that LGOIMA apply voluntarily.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

No implications for Community Boards.

Mayor	Mayor Dave Cull
Deputy Mayor	Cr Chris Staynes
Members	Cr David Benson-Pope	Cr Rachel Elder
	Cr Christine Garey	Cr Doug Hall
	Cr Aaron Hawkins	Cr Marie Laufiso
	Cr Mike Lord	Cr Damian Newell
	Cr Jim O'Malley	Cr Conrad Stedman
	Cr Lee Vandervis	Cr Andrew Whiley
	Cr Kate Wilson

	Title	Page
a	Councillor Register of Interests as at 13 March 2018	7

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a	Executive Leadership Team Register of Interests as at 13 March 2018	17

	Title	Page
a	Minutes of Ordinary Council meeting held on 20 February 2018 (Under Separate Cover)

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a	Minutes of Infrastructure Services and Networks Committee held on 12 February 2018 (Under Separate Cover)

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a	Minutes of Community and Culture Committee held on 13 February 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Planning and Environment Committee held on 13 February 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Hearings Committee held on 20 February 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Waikouaiti Coast Community Board held on 31 January 2018 (Under Separate Cover)

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a	Minutes of Otago Peninsula Community Board held on 1 February 2018 (Under Separate Cover)

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a	Minutes of Strath Taieri Community Board held on 1 February 2018 (Under Separate Cover)

Author:	Sharon Bodeker - Team Leader Civic
Authoriser:	Sandy Graham - General Manager Strategy and Governance