Agenda of Policy Committee Meeting

Policy Committee Meeting Agenda

28 July 2020

7 Business

7.1 Report back on the Dog Management Bylaw 2018, Dog Management Policy and Beaches Bylaw 2018

File Number: A11600555

Author: Ariell King, Team Leader: Policy

Sam Fellows, Manager: Environmental Regulation

Jeremy Boase, Manager: Strategy and Corporate Planning

Authoriser: Christine Jones, General Manager: Strategy & Growth

Purpose of the Report

1. For the committee to consider issues and options associated with the implementation and enforcement of the Dog Management Bylaw 2018, Dog Management Policy and Beaches Bylaw 2018.

Recommendations

That the Policy Committee:

(a) Agrees that a review of the Dog Management Bylaw 2018, Dog Management Policy and Beaches Bylaw 2018 is not required at this time.

(b) Supports a review of existing signage to raise awareness of the existing restrictions in the Dog Management Bylaw.

(c) Supports consideration by the Chief Executive (as per the bylaw) of a temporary prohibition of the area 255 metres further south beyond Moturiki (colloquially known as Shark Alley) from August to January.

(d) Supports consideration of funding in the draft Long-term Plan 2021 – 31 for additional enforcement officers, educational resources, events and signage to assist in the implementation of the Dog Management Bylaw and Dog Management Policy.

Background

2. At the public forum of the 16 June Policy Committee meeting a community member raised concerns with dogs on beaches. They suggested restrictions be created, whereby dogs would not be allowed on the beach off leash during certain times of the day. Dogs are currently prohibited from Mt Maunganui main beach including Moturiki, Mauao and Waikorire/ Pilot Bay. Leash restrictions are in place for areas around the surf clubs and car parks.

3. At the 16 June 2020 Policy Committee, a recommendation was made that ‘Staff report back on the Beaches Bylaw 2018 and Dog Management Bylaw 2018 and issues and options in relation to changes concerning dogs on beaches, specifically public safety and protection of natural habitats’.

4. This report has been prepared in response to this recommendation.

Dog Management Bylaw and policy

5. Council adopted the Dog Management Bylaw and the Dog Management Policy in December 2018, with the bylaw becoming effective as at 1 April 2019. The bylaw and policy are required to meet Council’s obligations under the Dog Control Act 1996 (the Act). The next review of the bylaw and policy is due to be completed in 2028/29 as per the requirement in the Local Government Act (LGA) that bylaws are reviewed every ten years.

6. The purpose of the bylaw is to provide adequate opportunities to fulfil the exercise, recreational and socialisation needs of dogs and their owners while minimising any danger, distress, or nuisance caused by dogs.

7. The bylaw also provides for dogs to be exercised off-leash in public places, including parks and reserves, except in areas identified in the Bylaw as prohibited or Leash control.

8. Dogs are prohibited from Waikorire (Pilot Bay), Mount Maunganui, Moturiki, Mauao, the foreshore in the vicinity of the Ōmanu surf lifesaving club buildings, the foreshore and dunes at Pāpāmoa beach in the vicinity of the surf lifesaving club buildings, flagged lifeguard areas, any land within 10 metres from any public play or exercise equipment, and Otumoetai Pā Historic Reserve.

9. Some of these areas have been identified as areas of significant ecological, cultural and historical value in other council documents including the Tauranga City Plan and Reserve Management Plan.

10. Dog owners must always have their dog under control and carry a leash as required under the Act. The bylaw provides a definition of what is considered ‘under control’. All dog owners are also required to leash their dog at any time if necessary, to prevent it causing danger, distress or nuisance.

11. The areas where dogs must be under leash control include any footpath adjacent to a road zone or within a road reserve or state highway, the Pāpāmoa Dune Wilderness Area, the Matua Salt Marsh, parts of Mount Maunganui beach, carparks adjacent to and surrounding the Pāpāmoa and Ōmanu surf lifesaving clubs. During the summer season leash control is also required on part of Pāpāmoa Beach immediately in front of Motiti Reserve and including Motiti Reserve.

12. Maps are provided in attachment one to illustrate these areas.

13. Dogs under leash control and not causing a nuisance are permitted to transit through areas such as the foreshore in the vicinity of the Pāpāmoa and Omanu surf lifesaving clubs and past a playground where there is a formed path.

14. Council can create temporary ‘dog on leash’ areas or dog prohibited areas for leisure and cultural events in parks, reserves, and other public places; or to protect threatened or “at risk” wildlife or Special Ecological Areas vulnerable to dogs.

15. In making any temporary changes to dog access provisions, Council must have regard to the principles of the Dog Management Policy and the provision of signage. Decisions regarding temporary access provisions are delegated to the Chief Executive.

16. The Act requires Council to adopt a policy on dog control for the district. The policy sets out Council’s general approach to managing dogs with the bylaw giving effect to the policy, except in relation to dog owner and community education programmes. The Act also requires that if changes are made to the bylaw that these changes are reflected in the policy.

17. During the recent review of the bylaw and policy, 271 submissions were received, with 11 submitters heard at a hearing in October 2018. As part of the engagement process an email or a letter was sent to every owner of a registered dog (~ 13,000 in 2017/18) advising them of the proposed amendments to the bylaw and policy.

18. In summary the bylaw and policy proposal retained the existing no dog access rules for Mauao, Waikorire/Pilot Bay and Mount Maunganui main beach including Moturiki; recommended additional dog on leash restrictions for the area between Moturiki and the next set of rocks (Shark Alley) and in car parks. A temporary summer seasonal restriction was suggested for the beach between Motiti Road and Karewa Parade, Papamoa East.

19. The key issues raised in submissions were dog exercise areas, dog access to beaches, restrictions on the number of dogs that can be exercised by any one person at any one time, additional areas where dogs should be prohibited or restricted and dog registration. A copy of the submissions is provided in the following link. Note that the item (DC289) begins on page 40 of this link and the submissions begin on page 61.

http://econtent.tauranga.govt.nz/data/bigfiles/committee_meetings/2018/december/agen_comcult_11dec2018book3pgs1145-1364.pdf

20. Submissions showed strong support for allowing dogs to access beaches, particularly in response to a proposed new restriction on dog access at Pāpāmoa East and Shark Alley. Submitters noted that dog access to beaches allowed dogs to socialise, provided for the whole family to exercise the dog, and was easily accessible. There was an almost even split between those who supported additional restrictions to dog access (leash controls or time of day) and those who do not support additional restrictions. A number of those who supported dog access to beaches were also in favour of restricting access to a certain time.

21. Seven submissions mentioned the need to protect wildlife in and around the beach. However, the specific proposal to better protect wildlife on and around Moturiki by restricting dogs to a leash in Shark Alley was not supported by 14 submitters (three in support).

22. The decisions of the Community and Culture committee are reflected in the summary of the bylaw provided above.

23. A copy of the bylaw and policy can be found on Council’s website:

https://www.tauranga.govt.nz/Portals/0/data/council/bylaws/files/dog_mgmnt_bylaw.pdf

https://www.tauranga.govt.nz/Portals/0/data/council/policies/files/dog_mgmnt_2018.pdf

Beaches Bylaw

24. Council adopted the Beaches Bylaw in September 2018, with the bylaw becoming effective as at 1 December 2018. The bylaw was made under the Local Government Act 2002.

25. The purpose of this bylaw is to enable the safe, recreational use of Tauranga beaches; and manage public safety and nuisance issues arising from use of Tauranga beaches. The bylaw covers the use of vehicles, crafts, longline fishing, horses, removal of material, protective works, lifesaving equipment, structures, bathing, berths, aircrafts, and fires.

26. During the recent review of the bylaw in 2018, 143 submissions were received, with 8 submitters heard at a hearing in July 2018. The issues raised by submitters included all-terrain vehicles (ATVs), vehicles on beaches, use of kontiki devices and longlines, nude bathing, fires and drones.

27. Submissions on dogs were specifically excluded from consideration in the Beaches Bylaw. These submissions were redirected to be considered as part of the Dog Management Bylaw and policy.

28. A copy of the bylaw can be found on Council’s website:

https://www.tauranga.govt.nz/Portals/0/data/council/bylaws/files/beaches_bylaw_2018.pdf

Bylaw Implementation and Enforcement

29. Council has 14 bylaws which are enforced by Council officers.

30. The approach to bylaw implementation is staged with the stages being: inform – educate – enforcement (fines) – prosecution. This is considered the most effective approach to bylaw implementation and supports the community to understand what is required under Council’s bylaws.

31. The Dog Management Bylaw is implemented and enforced by the Animal Services team who are part of the Regulatory and Compliance Group. There are eight FTE staff, where part of the role is bylaw enforcement. They are also responsible for management of the Council pound, education, dog registration and management of other animals (in accordance with the Keeping of Animals Bylaw 2018).

32. The Animal Services team respond to around 4500 calls from residents seeking information or complaining about barking, roaming and aggressive dogs each year. Each caller is responded to and any complaints are investigated.

33. Regular enforcement activities for the Dog Management Bylaw include twice weekly beach patrols, dependent on weather and tidal conditions, from Mount Maunganui to Papamoa, investigation of complaints, the provision of educational resources on dog wellbeing and issuing fines where appropriate. Officers are available Monday to Friday, between the hours of 8am and 4:30pm. An on-call contractor is available outside of these hours.

34. In the past a ranger was employed by Council, and was available during summer, including weekends and public holidays, at the Mount and Main Beach. A significant part of their role was speaking to people who had dogs on the Main beach, Mauao and Moturiki. This officer did not have any authority under the Act. This role was disestablished approximately six years ago and has not been replaced.

35. Signage is in place to advise the community of the rules regarding dogs on beaches. Council’s current budget for the provision of signage regarding dogs is $5,000. Examples of signage are illustrated below:

36. Education resources and campaigns includes visiting primary and pre-schools to teach children how to interact with dogs and avoid being bitten, working with “at-risk” employees such as community nurses, TCC staff, postal service etc and youth groups such as scouts and guides. The education position is also responsible for creating and hosting events such as annual dog walks at various locations, TCC participation at the Pet Expo, combined events with WBOPDC such as the “dog mud run” at TECT park. The current budget for these activities is $10,000.

37. Advice from the Animal Control team indicates that the current level of service as set out in the Long-term Plan (LTP) is being achieved and that the level of complaints does not warrant the provision of additional enforcement resources.

38. Staff utilised the temporary access provisions in 2019 to protect the regionally significant bird species (e.g. Australasian Bittern, Banded rail, North Island Fernbird) in the Matua Estuary, the Waikareao Estuary (McArdles bush area) and Waimapu Estuary (Fraser Street reserve area). In addition to the enhancement of the natural habitat that Council undertakes, keeping dogs on a leash in these areas for the breeding season between September and March will assist in protecting the bird species.

Complaints and incidents

39. Complaints and incidents are recorded in Council’s system, generally following a phone call from a member of the community.

40. The table below illustrates the number of dogs and categorised complaints and incidents for a five-year period from 2015/16 to 2019/20.

Table 1: Complaints and incidents

	2015/16	2016/17	2017/18	2018/19	2019/20
Dog No's	12065	12672	12975	13428	14246
Domestic Animal Attack	100	132	123	94	127
Persons Attacked	81	84	84	63	60
Person Rushed at	108	91	104	92	104
Animal Rushed at	28	20	41	47	41

41. Table 2 sets out the complaints and incidents in relation to beaches, over a three-year period. The figures provided below do not necessarily relate to incidences that occurred on the sand. All complaints that were attributed to any of the streets adjacent to the beach were filtered and incidents that occurred on the beach were extracted for the purpose of these tables.

Table 2: Complaints and incidents on beaches

Dogs in banned area	2016/17	2017/18	2019/20
Mount	13	9	8
Main Beach	8	4	9
Pilot bay	6	4	3
Papamoa Surf Club	1	0	1
Omanu Surf Club	0	1	0
Total	28	18	21

Animal Rushed At	2016/17	2017/18	2019/20
Mount to Omanu	1	0	1
Omanu to Papamoa	0	0	0
Papamoa	2	1	0
Total	3	1	1

Person Rushed At	2016/17	2017/18	2019/20
Mount to Omanu	1	1	1
Omanu to Papamoa	0	0	1
Papamoa	1	3	0
Total	2	4	2

Domestic Animal Attack	2016/17	2017/18	2019/20
Mount to Omanu	0	2	2
Omanu to Papamoa	0	0	4
Papamoa	5	2	1
Total	5	4	7

Person Attacked	2016/17	2017/18	2019/20
Mount to Omanu	0	0	3
Omanu to Papamoa	0	0	0
Papamoa	2	3	1
Total	2	3	4

42. A further breakdown of the 14 incidents recorded in 2019/20 (excluding dogs in banned areas) is provided in Table 3. Where ‘Unknown’ is recorded in the registered column this indicates that the offending dog was not identified. This highlights an enforcement challenge as following an incident most owners and their dog leave the beach before a council officer can arrive.

Table 3 – Details regarding incidents on beaches

Offence	Date	Injury	Registered
Dog Attacked	6-Jul-19	Minor Bites	Unknown
Dog Attacked	7-Jul-19	Bruising	Unknown
Dog Attacked	27-Jul-19	Minor Bites	Unknown
Person Attacked	25-Aug-19	Scratches	Unknown
Person Attacked	28-Sep-19	Puncture wound	Yes
Person Attacked	30-Sep-19	Torn Jacket	Yes
Person Rushed at	10-Dec-19	Nil	Unknown
Dog Attacked	13-Dec-19	Bruising	Unknown
Animal Rushed At	15-Jan-20	Nil	Unknown
Person Attacked	10-Feb-20	Scratches and bruising	Yes
Dog Attacked	3-Apr-20	Medium Injuries	Unknown
Person Rushed at	7-Apr-20	Nil	Unknown
Dog Attacked	28-Apr-20	Nil	Yes
Dog Attacked	11-May-20	Minor	Unknown

43. In some cases, the community may also contact the Department of Conservation (DOC) regarding attacks on wildlife. DOC will respond to these incidents on a case by case basis and can prosecute for offences under the Wildlife Act 1953 or Dog Control Act 1996. There is currently one pending court case regarding an attack on a seal pup killed by an unleashed dog on Moturiki on 16 August 2019. DOC also take in dog-injured native birds from our beaches and harbour margins every spring.

44. Anecdotal information suggests that there have been other attacks by dogs on seals and birds, including NZ Dotterel and Variable Oystercatchers on the main Mount Maunganui beach; and on Little Blue Penguins and Grey Faced Petrels on Moturiki. It was further noted that these attacks often occur early morning, late afternoon/evening or in the weekends.

45. DOC recognise that there are challenges with managing the competition for space between beach users and wildlife in areas such as Mount Maunganui. DOC rope off areas on the main beach to provide for the breeding areas of Dotterel and Oystercatchers to provide a visible barrier between these areas and the rest of the beach. The DOC officer who provided information for this paper noted that he was available to meet and discuss these challenges with Council.

46. Information from the Western Bay Wildlife Trust noted that they frequently see dogs off leash and chasing birds in the area known as Shark Alley (a ‘dog on leash’ area in the bylaw), and on Moturiki. This is particularly an issue during the breeding season between August and January. It was noted that when dog owners are approached, they generally have a misunderstanding regarding where dogs are required to be on a leash and comment that they did not see any signage. The Trust also commented on the availability of council officers, lack of fines for those that aren’t complying with the bylaw and the effect of drones on wildlife.

Issues and Options

47. The issues that have been identified based on the information above are as follows:

(a) Dogs in prohibited areas

(b) Misunderstanding by dog owners regarding areas where dogs are allowed and where leash control is required

(d) Effects on wildlife on Moturiki and the surrounding area, in particular the area known colloquially as Shark Alley.

(e) Timing of incidents, owners and dogs leaving the beach following an incident and the availability of enforcement officers

48. It should be noted that these issues can generally be addressed without a review of the bylaw. These issues were canvassed during the last review and resulted in the requirements set out in the current bylaw.

49. The table below sets out options to address these issues:

Table 4 – Options to address issues

Option	Advantages	Disadvantages
Review the number and visibility of signs (recommended)	Supports implementation and enforcement of Council’s bylaws The costs and time associated with a bylaw review would not be incurred Funding is available if additional signage is required.	Unlikely that signs alone will create significant changes in behaviour Additional signage may increase visual pollution or be lost amongst other notices.
Consideration by the Chief Executive of a temporary prohibition of the area 255 metres further south beyond Moturiki (colloquially known as Shark Alley) from August to January. (recommended)	Temporary prohibition areas are provided for the in the current bylaw. Will assist in protecting the wildlife in this area. May create an amenity benefit for the general community.	Dog owners may not appreciate the temporary prohibition in the area known as Shark Alley Complete prohibition not supported by submitters during the bylaw consultation.
Consideration of a change to the current education service to include more events on or near the beach and specific education of those living near the beach. (underway)	Supports implementation and enforcement of Council’s bylaws Likely to raise awareness and understanding with dog owners Will potentially lead to a change in behaviour.
Consideration of a change to the current level of service in the provision of Animal Control Officers and hours and days of work. For example, this could include the provision of an officer on patrol in areas such as Moturiki, before and after hours (to be included for consideration as part of the LTP 2021-31). (recommended)	Supports implementation and enforcement of Council’s bylaws Likely to raise awareness and understanding with dog owners Will potentially lead to a change in behaviour May be able to witness incidents and therefore speak directly with the dog owner.	May be considered an excessive level of enforcement by dog owners.
Issue more fines (not recommended)	Supports implementation and enforcement of Council’s bylaws Will potentially lead to a change in behaviour.	Likely to be unpopular with dog owners Inconsistent with Council’s overall approach to implementation and enforcement of bylaws.
Council could consider a review of the bylaw to provide a permanent prohibition of the area 255 metres further south beyond Moturiki (colloquially known as Shark Alley) and to consider additional prohibited areas, leash areas and time restrictions. (not recommended)	Permanent prohibition of this area and other potential restrictions could be considered by the community Will assist in protecting the wildlife and biodiversity values in this area Would specifically address the proposal raised by the community member.	A bylaw review would be required, noting that the bylaw only commenced in April 2019. In addition, these matters were considered when preparing the draft bylaw in 2018 but were not included in the adopted bylaw Costs and time incurred to review the bylaw e.g. staff time, engagement costs, potential legal costs. Would also result in a disruption to the approved policy and bylaw review programme due to the need to direct staff time to an additional and unanticipated bylaw review due to the recent adoption of the current bylaw Complete prohibition not supported by submitters during the bylaw consultation.

Option

Advantages

Disadvantages

Review the number and visibility of signs

(recommended)

Supports implementation and enforcement of Council’s bylaws

The costs and time associated with a bylaw review would not be incurred

Funding is available if additional signage is required.

Unlikely that signs alone will create significant changes in behaviour

Additional signage may increase visual pollution or be lost amongst other notices.

Consideration by the Chief Executive of a temporary prohibition of the area 255 metres further south beyond Moturiki (colloquially known as Shark Alley) from August to January.

(recommended)

Temporary prohibition areas are provided for the in the current bylaw.

Will assist in protecting the wildlife in this area.

May create an amenity benefit for the general community.

Dog owners may not appreciate the temporary prohibition in the area known as Shark Alley

Complete prohibition not supported by submitters during the bylaw consultation.

Consideration of a change to the current education service to include more events on or near the beach and specific education of those living near the beach.

(underway)

Supports implementation and enforcement of Council’s bylaws

Likely to raise awareness and understanding with dog owners

Will potentially lead to a change in behaviour.

Consideration of a change to the current level of service in the provision of Animal Control Officers and hours and days of work. For example, this could include the provision of an officer on patrol in areas such as Moturiki, before and after hours (to be included for consideration as part of the LTP 2021-31).

(recommended)

Supports implementation and enforcement of Council’s bylaws

Likely to raise awareness and understanding with dog owners

Will potentially lead to a change in behaviour

May be able to witness incidents and therefore speak directly with the dog owner.

May be considered an excessive level of enforcement by dog owners.

Issue more fines

(not recommended)

Supports implementation and enforcement of Council’s bylaws

Will potentially lead to a change in behaviour.

Likely to be unpopular with dog owners

Inconsistent with Council’s overall approach to implementation and enforcement of bylaws.

Council could consider a review of the bylaw to provide a permanent prohibition of the area 255 metres further south beyond Moturiki (colloquially known as Shark Alley) and to consider additional prohibited areas, leash areas and time restrictions.

(not recommended)

Permanent prohibition of this area and other potential restrictions could be considered by the community

Will assist in protecting the wildlife and biodiversity values in this area

Would specifically address the proposal raised by the community member.

A bylaw review would be required, noting that the bylaw only commenced in April 2019. In addition, these matters were considered when preparing the draft bylaw in 2018 but were not included in the adopted bylaw

Costs and time incurred to review the bylaw e.g. staff time, engagement costs, potential legal costs. Would also result in a disruption to the approved policy and bylaw review programme due to the need to direct staff time to an additional and unanticipated bylaw review due to the recent adoption of the current bylaw

Complete prohibition not supported by submitters during the bylaw consultation.

Financial Considerations

50. There is budget available to support a review of existing signage and replace or increase signage as required, and to meet the costs associated with implementing a temporary prohibition area.

51. Additional funding for increased signage (if required), communications regarding the requirements of the bylaw, increased educational events and an increase in officers in specific areas will be proposed as part of the development of the LTP 2021 – 31.

Consultation / Engagement

52. If the recommended options are supported, consideration will be given to the location and content of additional signs, communications with dog owners and how a temporary prohibition could be communicated to dog owners and the general public.

53. Council will continue to work with stakeholders, including the Department of Conservation (DOC), dog owners and the community, on raising awareness of the requirements of the bylaw.

Significance

54. If the recommended options are supported the decision is considered to be of low significance in accordance with Council’s Significance and Engagement Policy.

55. If additional options are supported, in particular a review of the Dog Management bylaw, this would likely be considered as a decision of medium significance, noting that consultation on an amendment to the bylaw would be undertaken using the special consultative procedure.

Next Steps

56. Implement the recommendation of the committee.

Attachments

1. Dog Management Bylaw maps - A11633963 ⇩

Policy Committee Meeting Agenda

28 July 2020

7.2 Final Statements of Intent 2020/21 to 2022/23 for BOPLASS and LGFA

File Number: A11629140

Author: Anne Blakeway, Manager: CCO Relationships and Governance

Mohan De Mel, Treasurer

Authoriser: Gareth Wallis, General Manager: Community Services

Purpose of the Report

1. The purpose of this report is to provide the final Statements of Intent 2020/21 to 2022/23 for two of Tauranga City Council’s five council-controlled organisations, Bay of Plenty Local Authority Shared Services Limited and Local Government Funding Agency, as required by the Local Government Act (2002).

Recommendations

That the Policy Committee:

(a) Receives the final Statements of Intent 2020/21 to 2022/23 for Bay of Plenty Local Authority Shared Services Limited and Local Government Funding Agency report.

(b) Receives and agrees Bay of Plenty Local Authority Shared Services Limited’s final Statement of Intent 2020/21 to 2022/23 (Attachment 1).

(c) Receives and agrees the Local Government Funding Agency’s Letter to Shareholders (Attachment 2) and final Statement of Intent 2020/21 to 2022/23 (Attachment 3).

(d) Notes that Council will receive the final Statements of Intent 2020/21 to 2022/23 for Bay Venues Limited, Tauranga Art Gallery Trust and Tourism Bay of Plenty by 31 July 2020.

Executive Summary

2. Bay Venues Limited (BVL), Bay of Plenty Local Authority Shared Services Limited (BOPLASS), Tauranga Art Gallery Trust (TAGT), Tourism Bay of Plenty (TBOP) and the Local Government Funding Agency (LGFA) are council-controlled organisations (CCOs), and as such are required to prepare a Statement of Intent (SOI) and provide a copy to their shareholder, Tauranga City Council, by 30 June each year.

3. Draft SOIs for BVL, BOPLASS, TAGT, TBOP and LGFA were considered by Council on 21 April 2020 and feedback provided to the CCO boards.

4. BVL, TAGT and TBOP were each provided with one extra month to complete their final SOI, due to the expectation that it would be necessary for the three CCOs to substantially revise their SOIs, and financial and non-financial targets in response to the COVID-19 pandemic.

5. After receiving and considering Council’s feedback on their draft SOIs, the boards of BOPLASS and LGFA have adopted their final SOIs for 2020/21 to 2022/23 (Attachments 1 and 3).

6. An analysis of each final SOI was undertaken, with both BOPLASS and LGFA meeting the statutory requirements as outlined in schedule 8, section 9 of the Local Government Act (2002).

7. The final SOIs for BVL, TAGT and TBOP will be received and agreed at the Council meeting on 25 August 2020. The final SOI for TBOP will also go to Western Bay of Plenty District Council for approval, as joint shareholder.

Background

8. In accordance with the Local Government Act 2002 (LGA), CCOs are required to provide their draft SOIs to Council by 1 March each year. This document is intended to cover the next three financial years.

9. Following an informal briefing with three elected members in relation to the draft SOIs, Council considered the draft SOIs of BVL, BOPLASS, TAGT, TBOP and LGFA at a full Council meeting on 21 April 2020 and provided shareholder feedback to the CCOs.

10. The CCOs are required to consider Council’s comments on the draft SOIs prior to submitting their final SOIs by 30 June each year. BOPLASS and LGFA met this deadline and the statutory requirements outlined in schedule 8, section 9 of the Local Government Act (2002).

11. BVL, TAGT and TBOP were each provided with one extra month to complete their final SOI, due to the expectation that it would be necessary for the three CCOs to revise their SOIs and financial and non-financial targets in response to the COVID-19 pandemic.

Bay of Plenty Local Authority Shared Services Limited (BOPLASS)

12. Council’s feedback, as a minority shareholder of BOPLASS, was taken into consideration by the BOPLASS Board at their meeting on 26 June 2020.

13. In response to Council’s request that BOPLASS include more specific goals in their SOI, BOPLASS Chair, Craig O’Connell responded that “the current goals included in section 9: Performance Targets are specific, and the measures provide appropriate accountability.” (See Attachment 1.)

14. In response to Council’s request that BOPLASS update the list of recently completed joint procurement projects in Appendix B of the SOI, the Chair commented “The SOI is not a performance reporting document and the Board feels it’s appropriate to provide a full list of completed projects to provide an awareness of the historical and future scope of BOPLASS opportunities.” (See Attachment 1.)

15. The BOPLASS Board approved the final SOI for circulation to the shareholders on 26 June 2020 and it is provided as Attachment 2.

Local Government Funding Agency (LGFA)

16. The following points regarding LGFA’s Final SOI 2020/21 are worth noting in the LGFA letter to shareholders (Attachment 3):

· The SOI performance targets are similar to the previous year’s targets except LGFA has increased the target for both market share and council satisfaction scores to 85% from the previous 80% and 75% targets.

· There remains some uncertainty within the SOI forecasts relating to the amount of both council loans and LGFA bonds outstanding as this depends upon the magnitude and timing of council borrowing.

· The likely impact of COVID-19 on the financial position of councils and their borrowing requirements is still evolving but LGFA has increased their estimates of council borrowing (and bonds issued) by $250 million in each of the next three years compared to the Draft SOI that TCC received in February 2020.

· While councils are faced with reduced revenue that may lead to a cut in capex, this could be offset by the need to co-invest alongside central government to assist with an infrastructure investment led growth recovery.

· The timing and amount of refinancing of council loans maturing in May 2021 and the associated repayment of the LGFA May 2021 bonds might also have an impact on the SOI forecasts.

17. The changes made to the Final SOI compared to the Draft SOI that Council received in March 2020 for comment have been:

· LGFA has broadened the objectives to include contributing to the four well beings and to assist the sector with its response to COVID-19.

· Net interest income has reduced by $200,000 in the 2020/21 year reflecting lower interest rates (approximately 0.75% lower) but has increased by $300,000 and $6.7 million in the subsequent years because of the higher level of assets and increase in the base on-lending margin compared to the starting position.

· Expenses have reduced by $200,000 in the first two years due to a lower expected amount of offshore bond holders reducing our Approved Issuer Levy payments.

18. The LGFA Shareholders Council were satisfied with the changes made and approved the LGFA’s final SOI, which is provided as Attachment 4.

Strategic / Statutory Context

19. The SOI is one of the CCO’s key governance and planning documents. Engaging with the CCOs throughout the development of the annual SOIs is one of the main ways Council can influence the CCOs.

20. The SOI development and feedback process is one of the key ways for Council to ensure its CCOs are aligned with Council’s strategic community outcomes.

Financial Considerations

21. Budgets for BOPLASS and LGFA, including Council’s contributions are included in the final SOIs.

Legal Implications / Risks

22. If Council does not approve the final SOIs, there is a potential financial and governance risk.

Consultation / Engagement

23. It is not required or expected to consult on an SOI under the LGA.

Significance

24. Under TCC’s Significance and Engagement Policy this matter is of medium significance as the CCOs’ activities have an impact on a sub group of people within the city and it is likely these documents will be of moderate public interest.

Next Steps

25. BOPLASS and LGFA will be informed of Council’s consideration of this paper.

26. The Statements of Intent for 2020-2023 will be made public via the TCC website.

Attachments

1. Attachment 1 - BOPLASS Letter to shareholder re Final SOI 2020 - 2023 - A11642331 ⇩

2. Attachment 2 - BOPLASS Final SOI 2020-2023 - A11629189 ⇩

3. Attachment 3 - LGFA Letter to shareholder re Final SOI 2020-2023 - A11629172 ⇩

4. Attachment 4 - LGFA Final SOI 2020-2023 - A11629171 ⇩


AGENDA Policy Committee Meeting Tuesday, 28 July 2020
I hereby give notice that a Policy Committee Meeting will be held on:
Date:	Tuesday, 28 July 2020
Time:	9.30am
Location:	Tauranga City Council Council Chambers 91 Willow Street Tauranga
Please note that this meeting will be livestreamed and the recording will be publicly available on Tauranga City Council's website: www.tauranga.govt.nz.
Marty Grenfell Chief Executive

Chairperson	Cr Steve Morris
Deputy chairperson	Cr Dawn Kiddie
Members	Mayor Tenby Powell Cr Jako Abrie Cr Larry Baldock Cr Kelvin Clout Cr Bill Grainger Cr Andrew Hollis Cr Heidi Hughes Cr John Robson Cr Tina Salisbury
Non-voting members	Tangata Whenua representative (TBC)
Quorum	Half of the members physically present, where the number of members (including vacancies) is even; and a majority of the members physically present, where the number of members (including vacancies) is odd
Meeting frequency	Six weekly