Agenda of Council - 28 August 2018

Council

28 August 2018

Reports

Logan Park Artificial Turf Update

Department: Parks and Recreation

EXECUTIVE SUMMARY

1 The purpose of this report is to update the Council on the development of the artificial turf facility and associated works at Logan Park.

RECOMMENDATIONS

That the Council:

a) Notes the Logan Park Artificial Turf Update.

BACKGROUND

2 As part of the 17/18 Annual Plan deliberations, the Council considered contributing $1m to a Football South proposal for the construction of an all-weather artificial turf facility at Logan Park and in May 2017 the Council resolved:

Moved Mayor Dave Cull / Cr Conrad Stedman

“That the Council:

a) Agrees to support in principle up to $1 million towards an all-weather artificial surface at Logan Park conditional on:

· Football South raising the balance of the funds required before the project proceeds

· Council's support being the purchase of components of the all-weather artificial surface

· Engagement with key stakeholders, in addition to sporting organisations and interests, as the project proceeds

· Consent(s) for the project being achieved by 31 December 2017

· The balance of the project funds being raised by 30 June 2018

· The final terms and conditions of the support, including consideration of a traffic management plan, to be to the satisfaction of the General Manager, Infrastructure and Networks.

b) Notes that the ownership of the all-weather artificial surface at Logan Park (estimated total cost $3 million) will transfer to Council at the completion of the project.

c) Commends Football South in their efforts to promote this project, including securing FIFA funding support of USD300,000.

d) Delegates the execution of the funding support agreement to the General Manager, Infrastructure and Networks.

The Council voted by division.

For: Crs David Benson-Pope, Rachel Elder, Christine Garey, Doug Hall, Aaron Hawkins, Mike Lord, Marie Laufiso, Chris Staynes, Conrad Stedman, Lee Vandervis, Andrew Whiley, Kate Wilson and Mayor Dave Cull (13).

Against: Nil

The division was declared CARRIED by 13 votes to 0

3 Following Council’s support in principle, Football South continued to progress the project. Resource consent was granted for the artificial turf facility in December 2017 and Football South achieved their fundraising target in June 2018.

4 Since June 2018, Dunedin City Council staff and Football South have been working together to agree the scope, construction, ownership and operating model for the artificial turf facility and associated works in Logan Park.

5 The conditions have all been met to the satisfaction of the (Acting) General Manager Infrastructure and Networks, and the funding support agreement is being finalised.

DISCUSSION

Artificial Turf Facility

6 The artificial turf facility will provide two full sized all weather artificial turf fields, suitable for football and rugby, and an artificial cricket wicket. The location of the fields is in the area currently known as Logan Park 1 and Logan Park 2 (during winter) and Cricket 1 (during summer).

7 The total cost of the artificial turf facility is $3.7m. This includes a $1m contribution from Council. Other parties contributing funds include FIFA, the Otago Community Trust and the Lotteries Commission.

8 Following a competitive Request for Proposal (RFP) process managed by Football South, with input with Dunedin City Council, the contract to construct the facility was awarded to Polytan, a specialist contractor, with experience across New Zealand of constructing artificial turf facilities.

9 Construction of the artificial turf facility will be managed by Council, with input from Football South. The contract between Dunedin City Council and Polytan includes:

· Demolition and earthworks;

· Pavement construction and drainage;

· Synthetic surfaces, concrete and kerbing works;

· Lighting (Musco LED lighting system) and electrical;

· Reinstatement.

10 Construction is due to begin in October 2018 and will be completed by March 2019. On completion, the facility is to be vested in Council and will be managed by the Council’s Parks and Recreation Operations team.

Associated works

11 In addition to the above works, it is also proposed to undertake associated works to assist with the integration of the artificial turf facility into Logan Park.

12 The associated works will be delivered in tandem with the construction of the artificial turf facility and will also be completed by March 2019. They are in addition to the $1m Council contribution to the turf facility, and include:

· Upgrading existing pathways adjacent/around the new facility;

· Arboriculture work to existing trees, new tree planting (25), grass and garden areas;

· Refurbishment of existing first aid building and provision of new storage shed;

· Re-configure the existing cricket oval including new markings, new lighting and re-use of the soil from artificial turf excavation to create grass embankments;

· Provision of bicycle stands, rubbish bins, bench seats, drinking fountains.

13 Initial cost estimates for the associated works indicate a cost $550k, including $250k for new lighting of the cricket oval. These costs will be funded from existing 18/19 Parks and Recreation OPEX and CAPEX budgets.

14 Attachment A illustrates the extent of the artificial turf facility and the associated works.

NEXT STEPS

15 An ’Agreement’ between Council and Football South which records the Parties agreements in respect of the project, including the funding, construction and ownership will be finalised by the end of August 2018. Development of the agreement has been delegated to the General Manager, Infrastructure and Networks.

16 A separate use agreement between Council and Football South will be established prior to March 2019 that sets out the Council’s conditions for usage of the facility by Football South.

Signatories

Author:

Rachael Eaton - Planning and Partnership Manager

Authoriser:

Robert West - Group Manager Parks and Recreation

Leanne Mash - General Manager Infrastructure and Networks (Acting)

Attachments

Title

Page

Logan Park Artificial Turf and Associated Works

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This report relates to providing local infrastructure 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	☐	☐	☐

The Logan Park Artificial Turf contributes to several objectives across the Council’s strategic framework

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

The project will contribute to improved social, economic and environmental sustainability of the city.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

Council’s contribution to the Logan Park Artificial turf facility is to be funded from 18/19 Parks and Recreation CAPEX budget

Financial considerations

Council’s $1m contribution to the Logan Park Artificial turf facility and the $750,000 required to fund the associated works, including the new lights, is to be funded from 18/19 Parks and Recreation CAPEX budget

Significance

The project is considered to have low impact in terms of the Council's Significance and Engagement Policy'.

Engagement – external

The Logan Park Artificial Turf facility project and the associated works builds on previous planning, engagement and design work for Logan Park. It has been developed in collaboration with park users and stakeholders, through the workshops undertaken in 2017.

Engagement - internal

Parks and Recreation Planning and Operations, Transport and Planning, together with Procurement, Legal and Property group are engaged in the project.

Risks: Legal / Health and Safety etc.

Legal team have been involved in the drafting of the Heads of Agreement. Council will work Polytan to ensure they meet all Health and Safe requirements.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

There are no direct implications for Community Boards, although the turfs will be utilised by groups from all over the city.

Council

28 August 2018

Timeframe for Notification of 2GP decision

Department: City Development

EXECUTIVE SUMMARY

1 The 2GP decisions are complete and the plan is now being cross referenced and checked. This work will be completed by 16 November 2018.

2 The Planning and Environment Committee, on 17 October 2017, approved an extension of the date to 26 September 2018. An additional short extension to 16 November 2018 (an additional 37 working days) is requested to enable the Panel to complete the decision-writing and for staff to process those decisions into the plan.

3 The Resource Management Act 1991 (RMA) allows for extensions in the delivery of decisions on District Plans up to a maximum of four years. The proposed extension is within this timeframe.

RECOMMENDATIONS

That the Council:

a) Approves an extension of the delivery time for the 2GP from 26 September 2018 to 16 November 2018.

BACKGROUND

4 Schedule 1, Part 1 of the RMA provides the statutory framework for all plan changes. There is a standard two-year time limit from notification for the delivery of the local authority’s decision on a plan change. However, the schedule provides that “where any time limit is set in this schedule, a local authority may extend it under section 37.”

5 Section 37 of the RMA provides for the extension of a time limit, or a waiver for non-compliance of requirements under the RMA for the time or method of service of documents. The options available to Council are:

· to extend the time limit now (an extension can be made to increase the two year period up to a four year period) and

· to waive a failure to comply with the time limits at a later date, such as on the decision release date.

6 Applying for an extension now provides more certainty for interested parties, rather than applying a waiver at a later unspecified date.

7 The 2GP was notified on 26 September 2015. An extension to 26 September 2018 was granted on 17 October 2017.

DISCUSSION

8 Extensions of time limits for full plan reviews are common as the two-year timeframe for a plan change is a standard timeframe that applies to small, site specific and minor plan changes through to full plan reviews.

9 Section 37 of the RMA requires a local authority to consider the interests of any person who may be directly affected by the extension, the community’s interests in achieving an adequate assessment of the effects of the 2GP, and the duty to avoid unreasonable delay when making a decision to extend a time limit.

10 As the 2GP is a full plan review as opposed to a small site specific plan change, there are no clearly identifiable persons who are “directly effected”.

11 The 2GP full plan review has been a large and complex process that has considered 1,507 submissions across 25 topics, with 35 hearings held between 12 May 2016 – 8 December 2017. The scale of the plan change has meant that a 2 year time frame was not adequate and therefore a 3-year time frame was sought and approved.

12 The 2GP decision process is very close to completion. As of 15 August 2018, all decisions have been drafted, and are now going through a review phase, where Panel members review and confirm these documents. Once the review is complete, decision documents need to be prepared for publishing. This process cannot be completed by 26 September 2018, and a short extension to 16 November, with a target release date of 7 November is being requested.

13 The delivery of the decision on 7 November 2018 allows appeals to be received by the RMA’s defined end of the working year date of 20 December 2018. After the appeals deadline, un-appealed parts of the plan technically become ‘operative’ and replace the equivalent rules in the Operative District Plan. Having adequate time to undertake a basic evaluation of the status of each part of plan in terms of operative provisions will benefit consent applicants and consent processing staff.

OPTIONS

14 The time limit can be extended at this time, or as part of the ultimate delivery of the decision.

Option One – Recommended Option – Extend the timeframe until 16 November 2018

15 Make a decision to extend the timeframe to no later than 16November, with a target decision release date of 7 November 2018.

Advantages

· Advising the public of the expected delivery time for the 2GP provides certainty.

· Meets the expectations of section 37 which provides a process for a local authority to formally extend the timeframe.

· Appeals timeframe aligns with the end of the working year as defined in the RMA.

Disadvantages

· The decision release date is delayed from what was originally agreed.

Option Two – Do not extend the timeframe

16 Do not formally approve an extension, but note that the Panel has advised that the decisions and decisions-version of the 2GP will not be ready for release until 7 November.

Advantages

· None.

Disadvantages

· The decisions-version of the 2GP will not be ready for release by the current end date of 26 September.

· Does not align with the processes outlined under section 37 of the RMA, which provides for extensions to be formally considered and made.

NEXT STEPS

17 If agreed the public will be notified through the 2GP website of the Council decision on the extension. The change of date for release of decisions would also be notified via other communications channels.

18 The Hearings Panel will continue with its works programme for the delivery of the 2GP. They will aim for delivery of decisions by 7 November with 16 November providing a contingency allowance for any unforeseen circumstances.

Signatories

Author:	Anna Johnson - City Development Manager
Authoriser:	Nicola Pinfold - Group Manager Community and Planning

Attachments

	Title	Page
a	Select provisions of the Resource Management Act 1991	44

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision enables democratic local decision making and action by, and on behalf of communities and aligns with the requirements of the Local Government Act and Resource Management Act.

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 is an administrative decision, rather than a policy decision. However, the 2GP has been developed to align with the DCC’s strategic framework.

Māori Impact Statement

The 2GP has been developed in consultation with KTKO and has included consultation with Maori landowners.

Sustainability

The 2GP is focused on the sustainable management of natural and physical resources as required by the Resource Management Act.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The decision to extend the delivery time of the 2GP will delay when the 2GP rules have effect, and may have consequential delays for changes to the Development Contributions Policy and aspects of the Infrastructure Strategy with regard to areas of potential future urban growth.

Financial considerations

The extended time period for the release of decisions on the 2GP may result in extra costs to produce the decisions. Making robust decisions may reduce the likelihood and number of appeals to the Environment Court.

Significance

The decision to extend the timeframe is assessed as low in terms of the Council’s Significance and Engagement policy.

Engagement – external

There has been no external engagement on this decision.

Engagement - internal

The in–house legal team has provided advice on this report. City Development continues to liaise closely with the Resource Consents Team, and other Council departments involved in the 2GP process.

Risks: Legal / Health and Safety etc.

There is some legal risk associated with not extending the timeframe. Uncertainty regarding dates when provisions become operative increases broad economic costs for developers, as well as undermining the legitimacy of the 2GP process.

Conflict of Interest

There are no known conflicts of interests.

Community Boards

There are no implications for community boards.

Council

28 August 2018

Remuneration of Elected Members

Department: Civic

EXECUTIVE SUMMARY

1 The Local Government Act 2002 (LGA) gives the Remuneration Authority (the Authority) the responsibility for setting remuneration for local government elected members.

2 Over the past two years, the Authority has been undertaking a review of how it sets remuneration for elected members. It has decided to change the current system of allocating a base pay for each councillor, along with a pool for remunerating additional responsibilities, to a system of allocating a governance pool (the pool) to each council, with each council then determining how the governance pool is to be allocated to councillors.

3 The purpose of this paper is to provide information about the changes that will be made in setting remuneration for local government elected members.

4 This paper also presents the Authority’s determination for councillor remuneration for the 2018/19 financial year.

5 A report from the Authority titled “Remuneration Setting for Local Authorities” is provided at Attachment A.

RECOMMENDATIONS

That the Council:

a) Notes the new remuneration levels for 2018/19.

BACKGROUND

6 The Remuneration Authority Act 1977 and the LGA set out matters that the Authority must take into account when setting remuneration. The Remuneration Authority Act requires that the Authority have regard to the need to:

· Achieve and maintain fair relativity with remuneration received elsewhere

· Be fair to individuals or groups, and taxpayers or ratepayers

· Recruit and retain competent persons.

7 The LGA requires that the Authority shall take into account:

· Requirements of the position

· Conditions of service enjoyed by comparable persons or groups

· Any prevailing adverse economic conditions

It must also have regard to the need to:

· Minimise the potential for certain types of remuneration to distort the behaviour of people in relation to their position.

8 The current approach used by the Authority to remunerate elected members is to allocate a base pay for each councillor, along with a pool, which is then allocated to councillors for positions of additional responsibility, as determined by each council. Under this approach, councils are not allowed to distribute the whole of the pool evenly amongst all councillors. The base pay is related to population and operational expenditure only.

9 The relativities of remuneration between councils have not been reviewed for a few years. The Authority considers that the current approach has severe limitations, and notes that many councils have found the rules to be too restrictive.

10 In undertaking its review, the Authority has consulted widely. Consultation included issuing a consultation document to all councils and boards, surveying outgoing councillors, working with LGNZ, and requesting information from all current councillors.

DISCUSSION

New approach to setting remuneration

11 Following its review, the Authority has decided to change the approach to setting remuneration for elected members. The new approach, which will be implemented following the 2019 local government elections, is to allocate to each individual council a “governance pool” (the pool).

12 The pool will provide the total amount that can be paid in remuneration to councillors, excluding the Mayor, whose remuneration will be determined directly by the Authority.

13 The pool will not have any relationship to the number of councillors on a council, so if the number of councillors were to increase or decrease, the pool will remain the same.

14 Council will need to allocate the pool according to its own priorities and circumstances. Positions of additional responsibility do not have to be limited to deputy mayor or committee chair but can include other jobs such as council representation on outside groups.

15 In allocating the pool, there are four requirements that must be adhered to as follows:

· The whole pool must be utilised. This takes away any pressure on councils to keep rates down by paying councillors less.

· Council will need to decide the base pay for each councillor who will have no additional responsibilities.

· For any roles with additional remuneration attached, council will be required to have a formal vote to:

o Set out the positions of responsibility

o Set the committee structure,

o Decide who will be undertaking each role, and

o Decide the annual dollar value of remuneration attached to each role, in addition to receiving the base pay.

· Following the formal decision making process above, the adopted resolutions will need to be sent to the Authority for inclusion in its determination.

16 The amount of the pool allocated will be in line with the ranking of each council, based on the Authorities size index. The factors used to measure the relative size of councils is as follows:

· Population, based on Statistics NZ estimated resident at 30 June each year;

· Total operating expenditure

· Total assets

· Socioeconomic deprivation index (complied by University of Otago at each census)

Weighting factors have been applied, as the importance and impact of each one in relation to the work of councils is critical. The Authority recognises that the weightings are a matter of judgement, but they have been informed by extensive consultation with local authorities. Based on the size indices, the DCC has been ranked the fourth largest territorial authority after Christchurch, Wellington and Hamilton.

17 Community Boards will, at this stage continue with the current system for remuneration, i.e., a base pay determined by the Authority. They will not be part of the pool allocation. However, if councils wish to increase the remuneration of their community board members, they will need to take the money out of the pool.

Timing of Implementation

18 The 2018/19 determination from the Authority introduces the first of three steps towards realigning councils with their new ranking on the size index. The 2018/19 determination provides for an increase in remuneration for councillors and community board members from the 2017/18 year, as shown below:

Council	2018/19	% increase	2017/18
Mayor	$157,798	5.7%	$149,262
Deputy Mayor	$77,316	5.7%	$73,136
Committee Chairpersons (4)	$72,856	5.7%	$68,917
Sub-Committee Chairperson	$65,192	5.7%	$61,667
Councillor	$59,474	5.7%	$56,258
Community Boards
*Mosgiel Taieri*
Chairperson	$18,860	1.5%	$18,581
Member	$9,429	1.5%	$9,290
*Otago Peninsula*
Chairperson	$15,925	1.5%	$15,690
Member	$7,963	1.5%	$7,845

*Saddle Hill*
Chairperson	$16,135	1.5%	$15,897
Member	$8,068	1.5%	$7,949
*Strath Taieri*
Chairperson	$14,669	1.5%	$14,452
Member	$7,334	1.5%	$7,226
*Waikouaiti Coast*
Chairperson	$15,716	1.5%	$15,484
Member	$7,858	1.5%	$7,742
*West Harbour*
Chairperson	$16,135	1.5%	$15,897
Member	$8,068	1.5%	$7,949

19 By early in the 2019 calendar year, councils will be advised of the pool that they will be allocated following the 2019 local government election. Councils will be asked by the Authority to provide a formal response outlining how the pool is to be allocated to individual roles following the election.

20 In the Determination to be implemented on 1 July 2019, the following will occur:

· Part one - for the period 1 July 2019 an interim determination will apply, until the new council assumes office following the election. The interim determination will provide for similar rises to those received in the 2018/19 determination;

· Part two – will take effect the day after polling day (13 October 2019). The new pool and its allocation as agreed will be applied.

· The new council elected in 2019 will have the opportunity to amend proposals submitted to the Authority by the outgoing council, including the committee structure and roles of responsibility.

OPTIONS

21 As this is a report for noting, there are no options.

NEXT STEPS

22 The new determination for the 2018/19 financial year will be applied, and back dated to 1 July 2018.

23 A determination will be issued early in 2019 year which will have two parts. Part one is for the period from 1 July 2019 up until the new council assumes office following the election. Part two is for implementation when the new council takes office following the election.

24 Council will need to determine how the pool is to be allocated, and then notify the Authority of the adopted resolution.

Signatories

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

Attachments

	Title	Page
a	Remuneration Setting for Local Authorities	51

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision/report/proposal 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	☐	☐	☒

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications.

Financial considerations

The 2018/19 budget provides for the increase in councillor remuneration, but the budget is $40,000 less than the determination.

Significance

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

Engagement – external

Engagement took place with the Remuneration Authority when it consulted with local authorities during its review.

Engagement - internal

There has been no internal engagement.

Risks: Legal / Health and Safety etc.

There are no identified risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

The Community Board changes will be provided to the community boards at their next round of meetings.

Council

28 August 2018

Proposed Leases of Parts of Parks and Recreation Land to Various Lessees

Department: Parks and Recreation

EXECUTIVE SUMMARY

1 This report outlines the general parameters and details for granting leases over Council Parks and Recreation land that is Reserve under the Reserves Act 1977.

2 This report details leases for occupation of Parks and Recreation managed land and must be approved by Council because:

· The approval falls outside the staff delegations.

· Council approval is necessary under the delegation from the Minister of Conservation dated 12 June 2013. This delegation is not delegated to Council officers nor to hearing Commissioners.

RECOMMENDATIONS

That the Council:

a) Approves (acting under the Minister of Conservations delegation) that the Con-Rodders Rod and Custom Club Incorporated & Stateside Streeters Inc. be granted a renewal of lease over part Miller Park Recreation Reserve being 107m² more or less being part Section 162 Block V Lower Kaikorai Survey District and New Zealand Gazette 1982 page 1641, under Section 54(1)(b) of the Reserves Act 1977 for 20 years from 18 August 2014 to 17 August 2034; and

Notes that public consultation was undertaken on 13 January 2018 with one submission received. The Independent Hearing Commissioner did not uphold the objection.

b) Approves (acting under the Minister of Conservations delegation) that the Athletics Taieri Incorporated be granted a lease over part Mosgiel Memorial Park being 428m²more or less being part Lot 1 Deposited Plan 9385, part Computer Freehold Register 289571 under Section 54(1)(b) of the Reserves Act 1977 for 20 years from 1 July 2015 to 30 June 2035; and

Notes that public consultation was undertaken on 13 January 2018 with one submission received. The Independent Hearing Commissioner did not uphold the objection.

c) Approves (acting under the Minister of Conservations delegation) that the Momona Play Group be granted a lease over part of Momona Recreation Reserve, Momona, being 1710 m²more or less situated in the part River Section 41, West Taieri Survey District. Part NZ Gazette 1983 page 3637, under Section 54(1)(b) of the Reserves Act 1977 for seven (7) years from 1 July 2015 to 30 June 2022; and

Notes that public consultation was undertaken on 24 September 2016 with one submission received. The Independent Hearing Commissioner did not uphold the objection.

d) Approves (acting under the Minister of Conservations delegation) that the Eastern Rugby Football Club Incorporated be granted a lease over part Waikouaiti Recreation Reserve, being 342m² more or less being part Lot 3 Deeds Plan 413 Block VI Hawkesbury Survey District under Section 54(1)(b) of the Reserves Act 1977 for 20 years from 1 October 2010 to 30 September 2030; and

Notes that public consultation was undertaken on 13 January 2018 with one submission received. The Independent Hearing Commissioner did not uphold the objection.

e) Approves (acting under the Minister of Conservations delegation) that the Waikouaiti District Pony Club Incorporated be granted a lease over part Waikouaiti Recreation Reserve, being 1.7842 hamore or less situated in the Part Lot 3 Deeds Plan 413 Block VI Hawkesbury Survey District under Section 54(1)(c) of the Reserves Act 1977 for 10 years from 1 July 2018 to 30 June 2028; and

Notes that public consultation was undertaken on 13 January 2018 with one submission received. The Independent Hearing Commissioner did not uphold the objection.

BACKGROUND

3 The Parks and Recreation department has approximately 270 agreements for the occupation of land throughout the community. The agreements are for a specified term and require new agreements to be granted upon the term expiring. At times agreements are issued for new occupations.

4 The agreements are primarily for leases over land occupied by sports clubs that own their own facilities. Each lease is for the footprint of the club’s building and any associated further land, for example, tennis courts or bowling greens. In some instances, the lease includes a Council owned building.

5 Other agreements include licences to graze, garden etc. and easements.

6 At a meeting on 22 March 2018, the Hearing committee considered objections received on the proposed renewal of five lease agreements. Mr Colin Weatherall was the independent commissioner appointed to give consideration to the objections. He has made recommendations to Council on the proposed renewal of those leases. Details of the leases can be found at Attachments A to E.

DISCUSSION

7 A draft template lease based on Council’s standard lease of Reserve land is used for the majority of occupations.

8 The key terms and conditions of each lease includes a description of the premises, ownership, purpose, term and rental payments. Specific conditions are included in Schedule 3 and an aerial photograph of the occupancy is shown in Schedule 4.

9 The rental for the occupation by sports clubs on Reserve land is assessed in terms of the Parks and Recreation fees and charges (1999) document. The areas are measured according to use and a rate applied to each area. The rental is increased annually according to the general rate percentage increase.

10 There are generally three parameters that are considered to enable a new lease to be granted. An assessment is made in terms of the Lessee’s financial viability, membership and the maintenance and development of the premises by them. If the assessment of the parameters shows an improvement is required, then often a reduced term is granted to allow the Lessee time to achieve acceptable levels or find alternative solutions.

11 Attachments A to E show the details of each specific Lease to be approved in this report.

Land Status and Legislation

12 It is necessary to determine the land status of the area to be occupied. This will determine whether or not the land is a Reserve or held in fee simple.

13 The authority to grant leases over Reserve land is under the Reserves Act 1977 and for fee simple land the Local Government Act 2002 is referred to.

14 There are specific requirements under each Act in terms of legislative compliance for the granting of a lease or licence.

Public Notification

15 In some circumstances public notification is required before a lease or licence can be granted. Generally, for Reserve land if there is an applicable Management Plan for the Reserve, public notification is not required.

16 For fee simple land, Section 138 of the Local Government Act 2002 requires that if a local authority proposes to dispose of part of a park that excludes or substantially interferes with the public’s access, including a lease for more than six months, it must consult on the proposal.

17 Where public notification is required, an information pack is prepared and placed on the Council website and is made available at the relevant Council centres. A public notice is placed in the Otago Daily Times asking for submissions on the proposed lease. Submissions are invited on the proposal for one month, and if a submitter wants to be heard, a lease hearing is undertaken.

Reserve Management Plans

18 Section 41 of the Reserves Act 1977 determines that an administering body must prepare and submit to the Minister of Conservation a management plan for the reserve under its control, management or administration. This must be undertaken no more than five years after a reserve becomes the responsibility of the administering body.

19 The Council has considerable Reserve land that is vested in it or that is under its control and management. Previously Council has had the majority of its reserves managed subject to an operative Reserve Management Plan and Council has had several omnibus Plans that cater for specific management strategies for a certain class of land. A significant majority of Reserve Management Plans are now at least 10 years old or more and are due for review.

20 The ability to forego some public consultation and approvals is only possible where existing reserve management plans are deemed operative. Legal advice is that a reserve management plan that is more than 10 years old, cannot be relied upon to exempt Council from public notification where the granting of a lease over Reserve land is intended.

21 Council’s Reserve Management Plan – General Policies (March 2005) sets out general matters regarding the granting of leases and licences. This plan is referred to for all leases and licences on Council land including land that is fee simple.

DELEGATIONS

22 The Staff Delegations Manual, Schedule 2 – 15 May 2018 (“the Manual”) contains delegations for minor real property transactions including land that is subject to the Local Government Act 2002 and the Reserves Act 1977 affecting any park or reserve within the staff member’s control, including leases, licences and easements.

23 The delegated level for leases under this delegation is for a cumulative fee value of up to $20,000 and a total term (including any renewals) of up to 25 years. The rental value of each lease in this report falls beyond the levels delegated to Council Officers.

24 For leases granted under the Reserves Act 1977, the consent of the Minister of Conservation is often required. The Minister has granted, by a delegation dated 12 June 2013, certain matters to the full Council. Where the Minister’s consent is required such consent can currently only be given by the Minister or the full Council.

25 The Council, as the Minister of Conservation’s delegate, has a supervisory role in ensuring that the decision on whether or not to grant a lease has been arrived at in compliance with the Reserves Act 1977. In particular, the Council as the Minister’s delegate, needs to be satisfied that the status of the land has been correctly identified, that there is a statutory power to grant the lease, that the necessary statutory processes have been followed, that the classification has been appropriately considered, and the decision is a reasonable one.

26 Where a Hearing Commissioner has heard submissions on a lease proposal, as in the case of these leases, Council does not have the Minister’s authority to delegate the decision making to the Hearing Commissioner. Accordingly, as set out in this report, the Hearing Commissioner is recommending to Council that it grant the leases subject of this report.

OPTIONS Option One – Recommended Option

27 Grant all of the Leases as set out in Attachments A to E.

Advantages

· Council complies with the requirements of the Reserves Act 1977 and its own policies for leases over Reserve land.

· An annual income is secured for the occupation of Council’s land.

· The Lessee has security of tenure for a sustained period of time.

· The Lessee is able to substantiate investing in the promotion of their organisation and the maintenance and development of their occupation.

· The Lessee is able to pursue grant applications with a greater guarantee of success with a lease in place.

Disadvantages

· A lease over the land may limit opportunity to consider other options for the area by Council.

Option Two – Status Quo

28 Do not grant all of the Leases as set out in Attachments A to E.

Advantages

· There are no identified advantages to this option.

Disadvantages

· The Council does not comply with the requirements of the Reserves Act 1977 and its own policies for leases over Reserve land if there are clubs in occupation of Council’s land.

· An annual income is not secured for the occupation of Council’s land.

· The Lessee has no security of tenure, despite the fact they have continued to occupy the lease area since the expiry of their lease.

· The Lessee cannot invest in the promotion of their organisation and the maintenance and development of their occupation.

· The Lessee cannot pursue grant applications with any guarantee of success.

29 If the recommended option is approved, new leases will be sent out to the Lessees for execution before signing and sealing by Council using the current standard lease.

Signatories

Author:	Owen Graham - Leasing and Land Advisor
Authoriser:	Leanne Mash - General Manager Infrastructure and Networks (Acting)

Attachments

	Title	Page
a	Con-Rodders Club Miller Park lease	79
b	Athletics Taieri Incorporated Memorial Park lease	81
c	Momona Playgroup Momona Recreation Reserve lease	83
d	Eastern Rugby Football Club Waikouaiti Recreation Reserve new lease	85
e	Waikouaiti Pony Club Waikouaiti Recreation reserve new lease	87

SUMMARY OF CONSIDERATIONS

Fit with purpose of Local Government

This decision relates to providing a public service and it is considered good-quality and cost-effective by granting the leases as set out in Attachments A to E.

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	☐	☐	☒

The provision of land and/or buildings for leasing over Parks and Recreation land contributes to the outcomes of the Spatial Plan by contributing to a liveable city, the Social Wellbeing Strategy by enabling healthy and safe people and the Parks and Recreation Strategy by enabling recreation activities.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

The granting of a lease over Parks and Recreation land provides the Lessee with a sustainable occupation for their activity.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

There are no implications.

Financial considerations

There are no financial implications.

Significance

The decision has a low level of significance in reference to the Council’s Significance and Engagement Policy.

Engagement – external

Liaison has occurred with the relevant Lessees as set out in Attachments A to E. Public Notification has been undertaken in each case also.

Engagement - internal

Liaison has been undertaken with the relevant Parks and Recreation staff and where necessary Council’s In-House Legal Counsel.

Risks: Legal / Health and Safety etc.

There are no known risks associated with this decision.

Conflict of Interest

There is no conflict of interest.

Community Boards

There are no implications for Community Boards.

Council

28 August 2018

Resolution to Exclude the Public

That the Council excludes the public from the following part of the proceedings of this meeting (pursuant to the provisions of the Local Government Official Information and Meetings Act 1987) namely:

General subject of the matter to be considered	Reasons for passing this resolution in relation to each matter	Ground(s) under section 48(1) for the passing of this resolution	Reason for Confidentiality
C1 Confirmation of the Confidential Minutes of Ordinary Council meeting - 13 August 2018 - Public Excluded	S7(2)(a) The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
C2 Confirmation of the Confidential Minutes of Economic Development Committee - 10 July 2018 - Public Excluded	S7(2)(h) The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
C3 Confirmation of the Confidential Minutes of Community and Culture Committee - 14 August 2018 - Public Excluded	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).	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.
C4 Dunedin City Council's Letter of Expectation for Dunedin City Holdings Limited and Group	S7(2)(c)(i) The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied.	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.	The letter is presented in draft form for discussion prior to finalisation, signing and issuing to Dunedin City Holdings Limited..
C5 Golden Block Investments Limited	S7(2)(a) The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987, and the particular interest or interests protected by Section 6 or Section 7 of that Act, or Section 6 or Section 7 or Section 9 of the Official Information Act 1982, as the case may require, which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as shown above after each item.

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 Interest as at 21 August 2018	7

	Title	Page
a	Executive Leadership Team Register of Interest	17

	Title	Page
a	Minutes of Ordinary Council meeting held on 13 August 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Infrastructure Services and Networks Committee held on 13 August 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Economic Development Committee held on 10 July 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Community and Culture Committee held on 14 August 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Planning and Environment Committee held on 14 August 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Hearings Committee held on 22 March 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Waikouaiti Coast Community Board held on 23 May 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Strath Taieri Community Board held on 24 May 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Otago Peninsula Community Board held on 24 May 2018 (Under Separate Cover)

	Title	Page
a	Minutes of West Harbour Community Board held on 6 June 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Saddle Hill Community Board held on 7 June 2018 (Under Separate Cover)

	Title	Page
a	Minutes of Mosgiel-Taieri Community Board held on 13 June 2018 (Under Separate Cover)