Whangarei District Council

Transcription

1 Whangarei District Council Notice of Meeting A meeting of the Whangarei District Council will be held in the Council Chamber, Forum North, Whangarei on: Wednesday 25 November am Committee Her Worship the Mayor (Chairperson) Cr S J Bell Cr S J Bretherton Cr C B Christie Cr P A Cutforth Cr S J Deeming Cr S M Glen Cr P R Halse Cr C M Hermon Cr G C Innes Cr G M Martin Cr B L McLachlan Cr S L Morgan Cr J D T Williamson

2 OPEN MEETING APOLOGIES CONFLICTS OF INTEREST Members are reminded to indicate any items in which they might have a conflict of interest. INDEX Item No Page No 1. Public Forum Minutes of the Whangarei District Council Meeting held 28 October Review of the Fire Prevention Bylaw Draft Alcohol Fees Bylaw Kaipara Harbour Treaty of Waitangi Settlement Negotiations - MOU with Councils to Establish Joint Working Party WDC Grants, Concessions & Loans Annual Report Omnibus Sportspark Management Plan Request by the A & P Society for the Purchase of Freehold Land at Barge Showgrounds...96 PUBLIC EXCLUDED BUSINESS Item No Page No C.1 Confidential Minutes of the Extra ordinary Whangarei District Council Meeting held 28 October Local Government Act 2002 Amendment Act 2012 Full consideration has been given to the provisions of the Local Government Act 2002 Amendment Act 2012 in relation to decision making and in particular the current and future needs of communities for good quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost effective for households and businesses. Consideration has also been given to social, economic and cultural interests and the need to maintain and enhance the quality of the environment in taking a sustainable development approach. Recommendations contained in the Council agenda may not be the final decision of Council Please refer to Council minutes for final resolution

3 1 1. Public Forum Reporting officer: C Brindle (Senior Meeting Co ordinator) Date of meeting: 25 November Purpose To afford members of the Community an opportunity to speak to Council. 2 Background Public Forum Appendix F in Standing Orders allows for a period of up to 15 minutes to be set aside for a public forum at the commencement of each monthly council meeting. The time allowed for each speaker is 5 minutes. Members of the public who wish to participate should send a written application setting out the subject matter and the names of the speakers to the Chief Executive Officer at least 10 working days before the day of the meeting. Speakers There were no applications to speak at today s public forum received. Whangarei District Council 25 November 2015

4 2 2. Minutes: Whangarei District Council Wednesday, 28 October 2015 Minutes of a meeting of the Whangarei District Council held in the Council Chamber Forum North on Wednesday 28 October 2015 at 10.30am Present: Her Worship the Mayor S L Mai (Chairperson) Crs S J Bell, S J Bretherton, C B Christie, P A Cutforth, S J Deeming, S M Glen, C M Hermon, G C Innes, P R Halse, G M Martin, B L McLachlan, S L Morgan and J D T Williamson (10.58am) Apology: Cr Williamson (late arrival) Moved: Cr Martin Seconded: Cr Cutforth That the apology be sustained. CARRIED In Attendance: Chief Executive (R Forlong), Group Manager District Living (P Dell), Group Manager Infrastructure (S Weston), Group Manager Positive Growth (J Thompson), Group Manager Support Services (A Adcock), Financial Controller (R Kerr), Community Funding Manager (O Thomas), Infrastructure Projects and Support Manager (D Kula), Property Manager (M Hibbert), Parks and Recreation Manager (P McDonald), Team Leader Environmental Health (R Mussle), Team Leader Planning (G Sands), Group Planner (R Rawson), Assistant Accountant (N Wright), Strategic Planning Co ordinator (S Gavin), Policy and Bylaws Analyst (S Munday), Media Relations Adviser (A Midson), Executive Assistant (J Crocombe) and Senior Meeting Co-ordinator (C Brindle) Her Worship the Mayor opened the meeting with a karakia. 1. Public Forum There were no applications received for public forum. 2. Confirmation of Minutes of a Meeting of the Whangarei District Council held on 23 September 2015 Moved: Cr McLachlan Seconded: Cr Morgan That the minutes of the Whangarei District Council Meeting held on Wednesday 23 September 2015, including the confidential section, having been circulated, be taken as read and now confirmed and adopted as a true and correct record of proceedings of that meeting. CARRIED 3. Confirmation of Minutes of a Meeting of the 20/20 Inner City Revitalisation Committee held 6 October 2015 Moved: Cr Halse Seconded: Cr Innes Whangarei District Council 25 November 2015

5 3 1. That the open minutes of the 2/20 Inner City Revitalisation Committee Meeting held on Tuesday 6 October, having been circulated, be taken as read and now confirmed and adopted as a true and correct record of proceedings of that meeting. 2. That the recommendations of the 20/20 Inner City Revitalisation Committee be adopted. CARRIED 4. Proposed Access Right of Way Easement over Rauiri Drive Recreation Reserve by Marsden Maritime Holdings Ltd Moved: Cr Martin Seconded: Cr Morgan 1. That the report be received. 2. That any submissions identified as being received after the close of the submission period (prior to the closure of this meeting) be accepted for consideration by Council. 3. That Council receive all submissions, and those submitters who wish to be heard in support of their submissions be given the opportunity to speak for up to 10 minutes at this meeting. CARRIED Cr Halse requested his vote against be recorded. The following submitters addressed the Council: Emma Miller (representing Marsden Maritime Holdings) Margaret Hicks. Cr Williamson joined the meeting at 10.58am during the submission from Margaret Hicks. 5. Adoption of the Annual Report The Annual Report document was circulated separately but within the legislative timeframes specified in the LGOIMA. Supplementary Agenda No 2 additional to Item 5 was distributed separately. The supplementary item outlined minor amendments to the Annual Report and Summary Annual Report. Procedural matter Moved: Cr Deeming Seconded: Cr Bell 1. That in accordance with NZS council receive the additional information relating to Item 5 Adoption of the Annual Report. 2. That the reason this additional information at this meeting is to ensure Councillors have the most up to date information to inform their decision making. CARRIED Whangarei District Council 25 November 2015

6 4 The recommendations were voted on in parts. Moved: Her Worship the Mayor Seconded: Cr Deeming Part One 1. That the Annual Report and the Summary Annual Report for the year ending 30 June 2015 be approved for signing. CARRIED Part Two 2. That the Annual Report and Summary Annual Report for the year ending 30 June 2015 be adopted. 3. That Council authorises the Chief Executive to make any minor amendments, typographical / formatting / editing changes that are required. CARRIED 6. Proposed Hundertwasser Museum Agreement to Lease Moved: Cr Cutforth Seconded: Cr Bell That the lease agreement lie on the table until Council is satisfied that sufficient funding has been secured to proceed with the overall project. Cr Bretherton gave notice of an amendment. Cr Christie gave notice that if the motion was lost he would move a further motion. On the motion being put Cr Halse called for a division: For the motion: Crs Halse, Deeming, Martin, Cutforth, Bretherton and Bell (6) Against the motion: Crs Hermon, Innes, Morgan, McLachlan, Williamson, Christie, Glen and Her Worship the Mayor (8) LOST Moved: Cr Bretherton Seconded: Cr Bell 1. That the information is received. 2. That Council instruct Thomson Wilson Law to make the following changes to The Lease (subject to legal review): Document: First Schedule 8. reinstate Subject to Review 10. Reinstate Market rent review dates Outgoings, Clause 3 of the Lease. (5) Delete but not exceeding Whangarei District Council 25 November 2015

7 5 (7) Reinstate and change but excluding charges to Including Charges for structural repairs to the building (minor repairs to the roof of the building shall not be structural repair) repairs due to defects in design or construction, inherent defects in the building and renewal or replacement of building services. (10) reinstate (12) reinstate Third Schedule 9.1 (ii) Insert arranged with PNTrust a guarantee, guarantees... Procedural motion Moved: Cr Deeming Seconded: Cr Martin That this item does lie on the table and not be discussed further at this meeting. Amendment The procedural motion was LOST on the casting vote of Her Worship the Mayor Moved: Cr Christie Seconded: Cr Williamson 1. That the information is received. 2. That Council agree to the terms and conditions between the Whangarei Art Museum Trust outlined in the lease document, compiled as a result of the Old Harbour Board Building Referendum That the Chief Executive shall be authorised to finalise all terms and conditions relating to the lease of the property as required to complete the transaction. The amendment was CARRIED On the amendment being put as the substantive motion Cr Hermon called for a division: For the motion: Crs Hermon, Innes, Morgan, McLachlan, Williamson, Christie, Glen and Her Worship the Mayor (8) Against the motion: Crs Cutforth, Bretherton and Bell (3) Abstained: Crs Halse, Deeming and Martin (3) The amendment was CARRIED as the substantive MOTION Whangarei District Council 25 November 2015

8 6 7. Meetings Calendar 2016 Supplementary Agenda No 1 attachment to Item 7 was distributed separately but within the legislative timeframe specified in the LGOIMA. Moved: Cr Hermon Seconded: Cr Martin That the Planning Committee meeting time be changed from 10.00am to 10.30am and that Council adopt the schedule of meetings for 2016 as set out in Attachment 1 of the report. Following Item 7 a break was taken from 12.26pm to 12.43pm. Cr Williamson did not rejoin the meeting immediately following the tea break. CARRIED 8. Adoption of the Provisional Whangarei District Local Alcohol Policy Her Worship the Mayor made the following statement: Councillors would like to confirm that they are in a quasi judicial process and further confirm that they restricted their decision making to the submissions received, the technical information supplied through the process and their questioning of submitters. Councillors have not had regard to any external information that may have been sent to them outside of the formal process. This item was voted on in parts. Moved: Cr Glen Seconded: Cr Cutforth 1. That Council adopts the Provisional Whangarei District Local Alcohol Policy subject to the following changes to the specific restrictions on the issue of further off licences for bottle stores: (a) That no further new off licences in respect of bottle stores (for previously unlicensed sites) shall be granted for a period of six years from the date of formal implementation of the policy. On the motion being put Cr Glen called for a division: For the motion: Crs Hermon, Halse, Cutforth, Christie, Glen, Bretherton and Bell (7) Against the motion: Crs Morgan, Deeming, Martin, McLachlan, Williamson and Her Worship the Mayor (6) CARRIED Council considers that the six year period is more reflective of the concerns raised by submitters on the Local Alcohol Policy and concerns also raised in the Community Survey about harm caused by the proliferation of bottle stores. Whangarei District Council 25 November 2015

9 7 (b) That the maximum opening hours for all off licences be 10.00am to 9.00pm. On the motion being put Her Worship the Mayor called for a division: For the motion: Crs Halse, Cutforth, Christie, Glen, Bretherton and Bell (6) Against the motion: Crs Hermon, Morgan, Deeming, Martin, McLachlan, Williamson and Her Worship the Mayor (7) LOST 2. That Council give public notice of the Provisional Whangarei District Local Alcohol Policy in accordance with section 80 of the Sale and Supply of Alcohol Act CARRIED Cr Innes, precluded from the decision making due to his absence from the proceedings for a significant interval, withdrew from the table taking no part in discussions or voting on Item 8. Cr Williamson rejoined the meeting at 12.48pm during discussions on Item 8. Cr Cutforth left the meeting at 1.34pm following Item Smokefree 2025 Update Moved: Her Worship the Mayor Seconded: Cr Bretherton 1. That the information be received. 2. That Council have staff draft a district-wide Smokefree policy that will include existing smokefree policies and further reinforce Council s contribution toward a smoke-free Whangarei by Amendment Moved: Cr McLachlan Seconded: Cr Christie That the Policy includes continuing to advocate for a ban on the sale of cigarettes by On the amendment being put Cr Deeming called for a division: For the amendment: Crs McLachlan, Christie and Bell (3) Against the amendment: Crs Hermon, Innes, Morgan, Halse, Deeming, Martin, Williamson, Glen and Bretherton and Her Worship the Mayor (10) Absent: Cr Cutforth The amendment was LOST The motion was CARRIED Whangarei District Council 25 November 2015

10 8 10. Whangarei Aquatic Centre Redefinition of Land Titles Moved: Cr McLachlan Seconded: Cr Glen 1. That this report be received. 2. That, as per Option B and Section 14(2) of the Reserves Act, Council approve public notices of its intention to declare Sections 1 and 6 of SO Plan as Recreation Reserve, and for Section 5 of SO Plan to be set aside as Esplanade Reserve. 3. Further to the close of the objection period under Section 14(2) of the Reserves Act, Council staff will present any objections received to Council in order for a resolution to be made as to whether the land is formally gazetted under the Reserves Act. 4. Subject to confirmation of the gazette declaring the area of land to be leased to Sport Northland to be Recreation Reserve, the process to give effect to the lease agreement with Sport Northland will commence. This process will then require public notice of the proposed lease agreement in accordance with Section 54(2) and Section 119 of the Reserves Act On the motion being put Cr Halse called for a division: For the motion: Crs Hermon, Innes, Morgan, Deeming, Martin, McLachlan, Williamson, Christie, Glen, Bretherton and Her Worship the Mayor (11) Against: Crs Halse and Bell (2) Absent: Cr Cutforth CARRIED 11. Free Parking Review Central City Car Park Moved: Cr Hermon Seconded: Cr Williamson 1. That the information is received. 2. That Council approve a six month trial from 1 November 2015 to 30 April 2016 for two hours free parking on the top level of the Central City Car Park. 3. That a summary of the trial data be presented to Council at the May 2016 Council meeting. 4. That the information be considered as part of the CBD wider parking strategy. Amendment Moved: Cr Halse Seconded: Cr Deeming 1. That the information is received. Whangarei District Council 25 November 2015

11 9 2. That Council approve a six month trial from 1 November 2015 to 30 April 2016 for two hours free parking on the top level of the Central City Car Park. 3. That a summary of the trial data be presented to Council at the May 2016 Council meeting. 4. That the information be considered as part of the CBD wider parking strategy. 5. That any of the options listed above can be terminated by Council by way of one months notice. On the amendment being put Cr Halse called for a division: For the amendment: Crs Halse, Deeming and McLachlan (3) Against the amendment: Crs Hermon, Innes, Morgan, Martin, Williamson, Christie, Glen, Bretherton, Bell and Her Worship the Mayor (10) Absent: Cr Cutforth The amendment was LOST The motion was CARRIED 12. Review of the Food Premises Grading Bylaw 2005 Moved: Cr Williamson Seconded: Cr Innes 1. That Council, in considering the issue of the promotion of safe food practices, determine that: a) A bylaw is the most appropriate way of addressing the perceived problem. b) The proposed bylaw, as attached to the agenda report, is the most appropriate form of bylaw. c) The proposed bylaw does not give rise to any implications under the New Zealand Bill of Rights Act That pursuant to sections 83 and 87 of the Local Government Act 2002 the Statement of Proposal and proposed draft Food Business Grading Bylaw 2005 (Attachment A) be approved for public consultation. CARRIED 13. Setting of Fees for Functions Under the Food Act 2014 Moved: Cr McLachlan Seconded: Cr Glen 1. That Council adopts the Statement of Proposal for the setting of fees under the Food Act 2014 for the period 1 March 30 June Whangarei District Council 25 November 2015

12 10 2. That Council publicly notify the statement of proposal and progress the proposal in accordance with the special consultative procedure of the Local Government Act CARRIED 14. Regional Transport Committee Membership Moved: Cr Deeming Seconded: Cr Williamson 1. That the information be received. 2. That Councillor P R Halse be nominated as Council s Alternate member to the Northland Regional Transport Committee. 3. That the Chief executive inform Northland Regional Council of Council s nominee and that Whangarei District Council s list of Outside Organisation Elected member appointments be updated once the appointment has been ratified by the Regional Council. CARRIED Exclusion of the public Moved: Cr Hermon Seconded: Cr Martin That the public be excluded from the following parts of proceedings of this meeting. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: General subject of each matter to be considered C.2 Confidential Minutes of the Extra ordinary Whangarei district Council meeting held 30 September 2015 C.3 Confidential Minutes of the 20/20 Inner City Revitalisation Committee meeting held 6 October 2015 Reason for passing this resolution in relation to each matter Good reason to withhold information exists under Section 7 Local Government Official Information and Meetings Act 1987 Ground(s) under Section 48(1) for passing this resolution Section 48(1)(a) Whangarei District Council 25 November 2015

13 11 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 which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public, are as follows: Item Grounds Section C.2 To enable the Council to carry on without prejudice or disadvantage negotiations Section 7(2)(i). C.3 For the reasons as stated in the open minutes. CARRIED The meeting closed at 2.17pm Confirmed this 25 th day of November 2015 S L Mai (Chairperson) Whangarei District Council 25 November 2015

14 12 3. Review of the Fire Prevention Bylaw 2005 Reporting officer: Mike Henehan (Compliance Officer) Date of meeting: 25 November Purpose To hear a submission from Transpower on the review of the Fire Prevention Bylaw. 2 Recommendation 1. That the submission for the review of the Fire Prevention Bylaw 2005 be received and heard. 3 Background At a meeting of Council on 23 September 2015, Council adopted a statement of proposal for the review of the Fire Prevention Bylaw A consultation period commenced on Monday 5 October 2015 and concluded on Friday 6 November One submission was received. 4 Significance and Engagement The decisions or matters of this Agenda do not trigger the significance criteria outlined in Council s Significance and Engagement Policy. The public will be informed via website and Council News, of the final form of the bylaw. 5 Next Steps Councillors can consider the submission. A further agenda item will be prepared for the final form of the bylaw at the 16 December meeting of Council. Attachment Submission (Transpower) Whangarei District Council 25 November 2015

15 13

16 14

17 15

18 16

19 17

20 18 4. Draft alcohol fees bylaw Reporting officers: Date of meeting: 25 November 2015 Grant Couchman (Regulatory Services Manager); Shireen Munday (Policy & Bylaws Analyst) 1 Purpose To introduce a proposal to set fees for alcohol licensing functions through a new bylaw and for Council to adopt a statement of proposal for public consultation on the proposed bylaw. 2 Recommendations 1. That the draft Alcohol Fees Bylaw 2016 and associated Consultation Document be adopted for consultation. 2. That pursuant to the Sale and Supply of Alcohol Act 2012 notification of the draft Alcohol Fees Bylaw and associated Consultation Document is provided to all current licencees and identified representative organisations. 3. That Council authorises the Chief Executive to make any necessary minor drafting, typographical or presentation corrections to the draft Alcohol Fees Bylaw and Consultation Document prior to the documents going to print. 3 Background One of Council s regulatory prescribed roles is to undertake licensing and monitoring functions in relation to the sale of alcohol. To date, the fees Council can charge to premises and licensees for the provision of these activities have been set through the Sale of Liquor Act 1989 and the associated Sale of Liquor (fees) Regulations The Sale of Liquor Act 1989 and the associated regulations were repealed in December The Sale and Supply of Alcohol Act 2012 (the Act) came into force in December 2012 and since November 2013 Council s fees have been prescribed and charged in accordance with the Sale and Supply of Alcohol (Fees) Regulations 2013 (the Regulations). The Regulations set out fees payable to territorial authorities and the Alcohol Regulatory and Licensing Authority to ensure that, so far as is practicable, their costs relating to licensing and other matters under the Act are recovered. Recognising that the fee regime may not permit total cost recovery for all territorial authorities across New Zealand, the Act includes a provision that the Governor-General may, by Order in Council, authorise territorial authorities to set their own fees for functions under the Act through a bylaw. Such bylaws allow territorial authorities to set fees above those set by the Regulations, where necessary, to recover total costs. The Sale and Supply of Alcohol (Fee-setting Bylaws) Order 2013 (the Order) came into force on 18 November This order now allows territorial authorities to set fees for relevant Whangarei District Council 25 November 2015

21 19 council processes in accordance with the Regulations. Any such fees must be set through a bylaw. Council is now able to review the fees charged for alcohol related activities to determine whether it wishes to make changes to these fees and to then consider proposing and subsequently adopting a bylaw to set new fees. During the setting of fees and charges for the 2015/2016 financial year, this issue was raised with Council, with the fees and charges report tabled at the Extra-ordinary Council meeting on 19 March 2015 outlining the issues addressed in this report. At that time it was intended to report back to Council and prepare a draft bylaw for consultation for adoption soon after the beginning of the 2015/2016 financial year. Due to other priorities taking precedence, this work had to be deferred and it is now being presented to Council for re-consideration and discussion. 4. Discussion Under the previous legislative framework, Council succeeded in recovering about 30% of cost of the alcohol licensing functions. The balance of costs (approximately 70%) therefore had to be funded through general rates. Since the Act came into force, Council has incurred additional costs to meet legislative requirements in relation to alcohol related activities. This includes the new requirements to establish and maintain the District Licensing Committee and paying members of the committee to determine applications. The Act also prescribes expanded monitoring and reporting requirements of Licensing Inspectors, adding to staff resourcing costs. While most applications are straightforward and proceed unopposed, those that are opposed are required to be determined by way of public hearings before a full committee and to date such hearings have ranged from half a day to two days of sitting time. The new Regulations have increased Council s cost recovery related income but this has to be balanced against the additional workload required. As such, Council has only been able to increase its cost recovery to approximately 40% of the costs incurred in providing the required services. Council s Revenue and Finance Policy provides that for regulatory services activities, the major funding source is to be from fees or subsidies and the minor funding source is to be from general rates. Appendix 1 of the Policy provides a more detailed practice note for each activity. The practice note for Planning and Regulatory Services - liquor (Attachment A) outlines a 65% cost recovery for liquor licensing for fees set by way of a alcohol fees bylaw. The proposal included in this report includes a fee structure that aims to achieve a 65% cost recovery in accordance with the Revenue and Finance Policy framework. It is noted here for completeness that the Act does allow territorial authorities to set fees to recover total costs if they choose to. Staff resources The functions under the Act are provided through Council s Regulatory Services Department as follows: Position Total number of staff Percentage of staff time allocated to alcohol licensing functions Environmental Health 5 60% 3 Total of full-time equivalent staff time allocated to alcohol licensing functions Whangarei District Council 25 November 2015

22 20 Officer (Licensing Inspector) Administrative Support Officer District Licensing Committee Support Officer 2 50% % 0.6 The resources outlined are considered the minimum required to ensure Council is able to meet its responsibilities under the Act. Expenditure and income For the 2014/2015 financial year, Council s records show 275 licences held (noting that this is not the total number of premises, as some premises hold both on and off licences). New applications and renewals were Number processed as follows: Type On Licences 46 Off Licences 29 Club Licences 17 Other applications were processed as follows: Type Number Special Licences 166 Temporary Authority 34 Manager s Certificates 331 Total applications 623 Analysis is provided in table 1 below for the financial year 1 July 2014 to 30 June 2015 and is based on costs incurred for activities under the Act and the relevant fees charged as prescribed through the Regulations. All figures provided are GST exclusive. The expenditure listed is split into two categories: operational expenditure associated with the day to day operation of the alcohol licensing functions as well as the operating costs associated with the District Licensing Committee corporate overhead costs allocated to the alcohol licensing cost centre. Corporate overhead costs are allocated proportional to the full time employee ratio (FTE) across all departments of council and recover the cost to the organisation of providing the specialised internal services across all departments. All governance related matters for alcohol licensing functions are performed by the District Licensing Committee. As such, general governance overhead costs (ie the costs allocated to the governance functions and salaries of the elected members of Council) are excluded from the costs listed below. The costs associated with the development and implementation of the Local Alcohol Policy are allocated to a different cost centre and as such are also excluded from the analysis and proposed fee structure. Whangarei District Council 25 November 2015

23 21 Table 1 Income and expenditure for 2014/2015 financial year (excluding GST) Income Licence fees $ 260,649 Expenditure - operational costs Salary and wages $ 213,568 Holiday leave $ 1,460 Overtime $ 6,237 Staff training $ 2,000 ACC levies $ 309 Refreshments provided $ 63 Other insurance $ 1,389 Travelling expenses $ 121 Office stationary $ 657 Bank fees and charges $ 410 Fee proportion to ARLA $ 18,330 Committee member fees /payments $ 22,599 Legal fees $ 10,000 Vehicle costs $ 2,520 Photocopy costs $ 7,784 Sub-total $ 300,648 Expenditure - corporate overheads Regulatory Services $ 145,841 Human Resources $ 18,411 Offices $ 23,461 Organisation management $ 8,098 Customer Services $ 40,049 Financial Services $ 19,758 Information Technology $ 66,818 Sub-total $ 322,436 Total Expenditure $ 609,883 Analysis The cost recovery achieved for the 2014/2015 financial year from total income against total expenditure was 43%. As the 2014/2015 financial year was the first full year that the new fee structure in accordance with the Regulations has applied, data from the preceding years cannot be used for comparison as different fee structures applied to those years. However, historically, the number of new applications and renewals has been relatively consistent across recent years. Additionally, Council s costs as provided above are largely fixed costs and it is anticipated that any changes to the costs will be predominantly in line with any CPI/LGCI index increases as determined through Council s annual planning process rather than any considerable variability in actual costs. Section 5 further outlines a recommendation that Council reassesses the fees of the bylaw in 2018 to confirm their appropriateness at that time. Whangarei District Council 25 November 2015

24 22 The Regulations provide that bylaw fees relating to manager s certificates must be the same across all territorial authorities. There is no current agreement among all territorial authorities to charge a different fee for manager s certificates than is currently provided for in the Regulations. This means that currently the fee for manager s certificates must be set at the same rate as is provided for in the Regulations. Therefore any changes in fees can only be applied to the remaining fees charged in relation to alcohol licensing activities. Using the 2014/15 figures as a baseline, the following table outlines the total increase in fees required to achieve a cost recovery of approximately 65% per annum. It is noted here that this is a forecast figure and final results for each year may vary depending on the total number and type of fees charged. 2014/2015 Actual 2017/2018 Budget Income $260,649 $407,000 (increase of $147,000) Expenditure $623,084 $623,000 % Cost Recovery 43% 65% It is proposed to increase the fees by the same percentage amount across all categories (excluding manager s certificates) to preserve the relatively of the fee structure of the Regulations and to ensure consistency as required by the Act. In this context it is important to note that the income derived from fees relating to manager s certificates accounts for approximately 35% of all the relevant fees charged. As such the costs of the overall increase in fees required will have to be borne by the remaining fee types. The proposed fee structure has applied increases uniformly across all fees. For example, the increase from a very low to a very high annual fee category under the current Regulations is 89%. The percentage increase of the proposed fees between the same fee categories is also 89%. To support licencees and applicants in transitioning to this new increased fee structure, it is considered appropriate to increase the fees in a stepped approach over a two year period. It is proposed that the fees are increased by an additional $80,500 per annum for the first period to then increase to the full fee structure in the following financial year to recover the additional $147,000 currently budgeted. As mentioned in section 3 of this report, it was originally intended to bring this item back to Council earlier in the year. Due to the deferral of this work it is now proposed to apply the first step in the fee increase to the remainder of the 2015/2016 financial year (anticipated to be 1 April to 30 June 2016) as well as the full 2016/2017 financial year. The full increase in fees is proposed to start applying from 1 July 2017 onwards. Prescribed fee structure The Order requires that any bylaw must be consistent both with the Act and any regulations. The Regulations provide the framework within which territorial authorities are enabled to charge fees for their costs relating to licensing and other matters under the Act. This includes: application fees (which cover the cost of the licence application and grant) annual fees (which cover the cost of monitoring) for on licences, off licences, and club licences fee categories for on, off and club licences. The fees category for any premises is determined by reference to its cost/risk rating, which is arrived at on the basis of three factors: type of premises (e.g., class of restaurant, class of club, hotel or grocery store) latest alcohol sales times, and number of recent enforcement actions. There are five categories for premises: very low, low, medium, high and very high Whangarei District Council 25 November 2015

25 23 for special licences, the Regulations prescribe a range of licence fees that reflect the number and size of the event(s) to be held in the relevant premises manager's certificates. The Regulations further provide in regulation 7 that fees set through a bylaw must be set in the context of that framework. The proposed fee structure mirrors this framework and shows a uniform increase in all fee classes. A copy of the Regulations is attached in Appendix 2. Proposed fees Table 2 below shows the current fees as set by the Regulations and the proposed fees with the stepped increase approach. All fees are GST exclusive. Table 2 Application fee Existing fee Proposed fees 1 April June 2017 (15 months) Proposed fees 1 July 2017 onwards Very low $ 320 $ 480 $ 600 low $ 530 $ 795 $ 994 Medium $ 710 $ 1,165 $ 1,456 High $ 890 $ 1,335 $ 1,669 Very high $ 1,050 $ 1,575 $ 1,969 Annual fee Very low $ 140 $ 210 $ 262 Low $ 340 $ 510 $ 637 Medium $ 550 $ 825 $ 1,031 High $ 900 $ 1,350 $ 1,687 Very high $ 1,250 $ 1,875 $ 2,344 Special licence fee Class 1 $ 500 $ 750 $ 937 Class 2 $ 180 $ 270 $ 337 Class 3 $ 55 $ 82 $ 102 Other fees Temporary Authority $ 258 $ 387 $ 484 Temporary Licence $ 258 $ 387 $ 484 Manager s Certificate* $ 275 $ 275 $ 275 *This fee is set through the Regulations not through the bylaw but is included here for completeness. Whangarei District Council 25 November 2015

26 24 Making a bylaw Statutory framework The proposed bylaw has to be made in accordance with Sections 405 and 403 of the Act as well as the Regulations and the Order. Section 405 of the Act includes the following relevant provisions: (2)(a) if a territorial authority has in force a bylaw prescribing a fee payable to it for a matter stated in the order, (i) the fee for the matter is the fee prescribed by the bylaw; and (ii) every reference in this Act to the fee prescribed for the matter by regulations under this Act is a reference to the fee for the matter prescribed by the bylaw (3) Section 403, with any necessary modifications, applies to the making of bylaws as if it were the making of regulations. (4) Before making a bylaw prescribing fees for any matter for which fees payable to territorial authorities can be prescribed by regulations under this Act a territorial authority must, to the extent that is reasonably practicable having regard to the circumstances of the particular case, consult the persons the authority has reason to believe are representative of interests likely to be substantially affected by the bylaw. Section 403 outlines consultation requirements when making a bylaw: Before recommending the making of regulations under section 397(1)(b) or (c), the Minister must, to the extent that is reasonably practicable having regard to the circumstances of the particular case, consult the persons the Minister has reason to believe are representative of interests likely to be substantially affected by the regulations. As Section 405(3) of the Act provides that Section 403 applies to the making of bylaws, legal advice has been sought and this is interpreted to mean that Council is required in making the bylaw to consult the persons it considers are representative of interests likely to be substantially affected by the bylaw. The Order provides that any bylaw made must be consistent with the Act and any regulations made under it. The Regulations provide in regulation 7 that fees set through a bylaw must be set in the context of that framework. As outlined in section 4 of this report, the proposed fees have been increased in a manner consistent with both the requirements of the Act as well the context of the framework provided in the Regulations. Bylaw development process The proposed bylaw would be made under the Act. Other than the requirements to consult under Sections (405)(3) and S403 no further specific consultation requirements are stated. It is considered the requirements of the Act provide a clear indication that consultation should be undertaken with current licence holders and any associated representative organisations Whangarei District Council 25 November 2015

27 25 as these can be considered persons whose interests are likely to be substantially affected by the bylaw. As the proposed fee structure is designed to recover only 65% of total costs, with the remainder to be funded through general rates, it is also considered this proposal may be of interest to the general public. Section 82 of the Local Government Act 2002 outlines the principles of consultation for any consultation activity of Council. The following consultation process supports transparency and community engagement and has been developed in accordance with the legislative requirements of Section 82: adoption of a draft bylaw and consultation document that provides further background information on the proposal and the reasons why by way of Council resolution public notification of the consultation document and draft bylaw inviting written submissions on the draft bylaw, with a submission period of 8 December 2015 to 12 February 2016, this is longer than usual, but is taking into account the busy season for licencees as well as the holiday period with a number of statutory holidays notification of the consultation process and invitations to submit (via or letter) to all licencees on Council s database and relevant industry organisations hearings to be held for those submitters who wish to speak to their submission after the submissions period closes deliberations on issues raised in submissions adoption of final bylaw at Council meeting (currently scheduled for 23 March 2016) bylaw in force 1 April Due to the nature of this proposed bylaw it is recommended that staff report back to Council on the fees as contained in the bylaw in early 2018 to allow Council to reassess the fees and their appropriateness, as at that time there will be a further two full years of financial data to review cost recovery achievement against. Significance and Engagement Significance The decisions or matters of this report are not considered to trigger the significance criteria outlined in Council s Significance and Engagement Policy. Engagement The engagement section of the Significance and Engagement Policy in relation to bylaws references the bylaw consultation requirements of the LGA As stated in section 5, the proposed process has taken these requirements into account and is considered appropriate because it gives an opportunity for key stakeholders to participate as well as allowing for input from the wider community. Both the industry and ratepayers are expected to have an interest in the proposed fees structure and funding model. Attachments Appendix 1 - Practice note for Planning and Regulatory Services - liquor Appendix 2 - Sale and Supply of Alcohol (Fees) Regulations 2013 Appendix 3 - Consultation document Appendix 4 - Draft bylaw Whangarei District Council 25 November 2015

28 26 Appendix 1 Activity Primary Community Outcome Why do we do it Who benefits Period of benefit (intergenerational equity) Whose actions or inactions contribute Assessment of Options Planning and Regulatory Services - Liquor Vibrant and healthy communities Promoting responsible consumption of alcohol and ensure public health and safety by the issue and monitoring of licences. Licensed premises primarily; Whole community; Visitors; Short and long term Requirements and negative effects controlled by Sale of Liquor Act. Charges controlled by the Sale of Liquor Act. Without licenses premises cannot operate. There is a benefit to licensed premises in ensuring controls are met. Managers need to be trained as well as premises licensed. There is also a benefit to users of those premises in knowing responsible consumption of alcohol will be promoted. There is also a wider community benefit in controlling the negative aspects of alcohol consumption. Private Benefit % 80% Public Benefit % 20% Assessment of overall impacts of allocation of revenue needs Operational Expenditure As government regulations set the fee which is chargeable, the revenue generated is not sufficient to meet the estimated private/public benefit. Therefore user fees are set at a level to meet 34 percent of the costs, with the 66 percent being met by ratepayers. Rates revenue sources are allocated after taking into account the relative benefits the Residential, Rural and Commercial sectors receive Type % Comments User Fees 35%- 45% Fee set by government regulation. New bylaws to be introduced. 65% cost recovery for liquor licensing for regulatory costs General Rates 55%- 65% Balance of funding

29 27 Appendix /452 Sale and Supply of Alcohol (Fees) Regulations 2013 Jerry Mateparae, Governor-General Order in Council At Wellington this 18th day of November 2013 Present: His Excellency the Governor-General in Council Pursuant to sections 397 and 402 of the Sale and Supply of Alcohol Act 2012, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council and in accordance with a recommendation of the Minister of Justice, makes the following regulations. Contents Page 1 Title 2 2 Commencement 2 3 Interpretation 2 Part 1 Fees On-licences, off-licences, and club licences 4 Fees framework for on-licences, off-licences, and club 3 licences 5 Cost/risk rating of premises 3 6 Fees categories for premises 6 1

30 28 Appendix 2 r 1 Sale and Supply of Alcohol (Fees) Regulations /452 7 Fees payable for premises in each fees category 6 8 Fees payable by territorial authorities to ARLA 7 Special licences 9 Special licence classes 7 10 Fees payable for special licences 8 Manager s certificates 11 Manager s certificates 8 Other fees 12 Other fees payable to territorial authorities 9 13 Other fees payable to ARLA 9 Part 2 Administration 14 Time when application fees are payable 9 15 Time when annual fees are payable for new licences Time when annual fees payable in relation to existing 10 licences 17 Time for paying annual fee for permanent club charters Fees are exclusive of GST Reporting by territorial authorities 11 Regulations 1 Title These regulations are the Sale and Supply of Alcohol (Fees) Regulations Commencement These regulations come into force on 18 December Interpretation In these regulations, unless the context otherwise requires, Act means the Sale and Supply of Alcohol Act 2012 application fee means the fee for any of the following: (a) an application for an on-licence, off-licence, or club licence: (b) an application to vary an on-licence, off-licence, or club licence: 2

31 29 Appendix /452 Sale and Supply of Alcohol (Fees) Regulations 2013 Part 1 r 5 (c) an application to renew an on-licence, off-licence, or club licence ARLA means the Alcohol Regulatory and Licensing Authority continued by section 169(1) of the Act. Part 1 Fees On-licences, off-licences, and club licences 4 Fees framework for on-licences, off-licences, and club licences (1) The fees payable by a licensee or an applicant in respect of premises for which an on-licence, off-licence, or club licence is held or sought comprise (a) an application fee; and (b) an annual fee. (2) Premises for which an on-licence, off-licence, or club licence is held or sought must be classified by the territorial authority on the basis of the premises cost/risk rating, as determined under regulation 5, and the fees category for the premises, as determined under regulation 6. 5 Cost/risk rating of premises (1) A territorial authority must assign a cost/risk rating to any premises for which an on-licence, off-licence, or club licence is held or sought. (2) The cost/risk rating of premises is the sum of the highest applicable weighting in each of subclauses (3) to (5). (3) The weightings relating to the type of licensed premises are as follows: Licence held or sought Type of premises Weighting On-licence Class 1 restaurant, night club, tavern, 15 adult premises On-licence Class 2 restaurant, hotel, function centre 10 On-licence On-licence Class 3 restaurant, other premises not otherwise specified BYO restaurants, theatres, cinemas, winery cellar doors 5 2 3

32 30 Appendix 2 Part 1 r 5 Sale and Supply of Alcohol (Fees) Regulations /452 Licence held or sought Type of premises Weighting Off-licence Supermarket, grocery store, bottle store 15 Off-licence Hotel, tavern 10 Off-licence Class 1, 2, or 3 club, remote sale 5 premises, premises not otherwise specified Off-licence Winery cellar doors 2 Club licence Class 1 club 10 Club licence Class 2 club 5 Club licence Class 3 club 2 (4) The weightings relating to the latest alcohol sales time allowed for premises are as follows: Type of premises Premises for which an on-licence or club licence is held or sought Latest trading time allowed by licence (during 24-hour period from 6 am to 6 am) Weighting 2 am or earlier 0 Between 2.01 am and 3 am 3 Any time after 3 am 5 Premises for which 10 pm or earlier 0 an off-licence is held or sought (other than Any time after 10 pm 3 remote sales premises) Remote sales premises Not applicable 0 (5) The weightings relating to the number of enforcement holdings in respect of the premises in the last 18 months are as follows: Number of enforcement holdings in last 18 months (applies to all types of premises) Weighting None or more 20 (6) In subclauses (3) to (5), BYO restaurant means a restaurant for which an on-licence is or will be endorsed under section 37 of the Act 4

33 31 Appendix /452 Sale and Supply of Alcohol (Fees) Regulations 2013 Part 1 r 5 class 1 club means a club that has or applies for a club licence and (a) has at least members of purchase age; and (b) in the opinion of the territorial authority, operates any part of the premises in the nature of a tavern at any time class 2 club means a club that has or applies for a club licence and is not a class 1 or class 3 club class 3 club means a club that has or applies for a club licence and (a) has fewer than 250 members of purchase age; and (b) in the opinion of the territorial authority, operates a bar for no more than 40 hours each week class 1 restaurant means a restaurant that has or applies for an on-licence and (a) has, in the opinion of the territorial authority, a significant separate bar area; and (b) in the opinion of the territorial authority, operates that bar area, at least 1 night a week, in the manner of a tavern class 2 restaurant means a restaurant that has or applies for an on-licence and (a) has, in the opinion of the territorial authority, a separate bar; and (b) in the opinion of the territorial authority, does not operate that bar area in the manner of a tavern at any time class 3 restaurant means a restaurant that has or applies for an on-licence and that, in the opinion of the territorial authority, only serves alcohol to the table and does not have a separate bar area enforcement holding means a holding as defined in section 288 of the Act, or an offence under the Sale of Liquor Act 1989 for which a holding could have been made if the conduct had occurred after 18 December 2013 remote sales premises means premises for which an off-licence is or will be endorsed under section 40 of the Act. 5

34 32 Appendix 2 Part 1 r 6 Sale and Supply of Alcohol (Fees) Regulations /452 6 Fees categories for premises (1) A territorial authority must assign a fees category to any premises for which an on-licence, off-licence, or club licence is held or sought. (2) The fees category must be assigned in accordance with the following table, except as provided in subclause (4): Cost/risk rating of premises Fees category 0 2 Very low 3 5 Low 6 15 Medium High 26 plus Very high (3) The date on which the fees category for premises must be determined is (a) for the purpose of an application fee, the day on which the application is made; and (b) for the purpose of the annual fee, the day on which the annual fee is payable. (4) A territorial authority may, in its discretion and in response to particular circumstances, assign a fees category to premises that is 1 level lower than the fees category determined under subclause (1); but no premises may be assigned a category lower than very low. 7 Fees payable for premises in each fees category (1) The application fees and annual fees are (except as described in subclause (2)) as follows: Fees category for premises Application fee ($) Annual fee ($) Very low Low Medium High Very high 1,050 1,250 (2) If a territorial authority makes bylaws in relation to the fees payable to it (as authorised by the Sale and Supply of Alcohol (Fee-setting Bylaws) Order 2013) in respect of on-licences, off-licences, and club licences, 6