Decision Required Report To: Full Council
Meeting Date: 7 August 2014
Report Author: Maxine Day, Senior Policy Advisor Report Number: RCN14-08-05
File Reference: R14001
1 Summary
1.1 This report is to advise Council of the updated structure for Activity Management Plan (AMP) groupings for the Long Term Plan 2015-2025 (LTP), and to confirm that Council accepts this structure. Attachment 1 illustrates the new AMP structure.
1.2 The new AMP groupings reflect changes in activity management as a result of the reorganisation of Council’s Engineering, Governance, Community Development and Corporate Service departments over the last 12 months. They also incorporate changes required as a result of changes to the Local Government Act 2002 (LGA), and
recommendations from Audit NZ from the LTP 2012-2022.
1.3 The AMP groupings now provide improved transparency and connections between:
- delivery of activities;
- management and planning for those activities;
- budgets; and
- respective council departments.
1.4 The realignment of budget cost centres to mirror the new AMP groupings will also simplify reporting and measurement of performance.
2 Draft Resolution
That the Full Council:
1. receives the Activity Groupings for Activity Management Plans report RCN14-08-05;
and
2. adopts the structure of Activity Groupings for Activity Management Plans (2015- 2025), as contained in Attachment 1 to the report Activity Groupings for Activity Management Plans report RCN14-08-05.
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3 Purpose of the Report
3.1 The purpose of this report is to advise Council of the updated structure for AMP groupings for the LTP 2015-2025.
4 Background and Discussion
4.1 This report provides Council with an update on the structure of AMP groupings. Attachment 1 illustrates the new AMP structure.
4.2 The need to change the structure arose from the following:
4.2.1 The reorganisation of some departments within Council;
4.2.2 Changes indicated under the Local Government Amendment Act (No.3);
4.2.3 Feedback from Audit NZ on the LTP 2012 with regard to the structure of some information held within the AMPs; and
4.2.4 Feedback from members of the public on where the Waimea Community Dam budgets are held.
4.3 Firstly, the reorganisation of the Community Services, Strategic Development and Corporate Services departments within Council means that responsibility for some activities has
changed. It is appropriate that those departments responsible for managing activities hold responsibility for producing the corresponding AMPs.
4.4 Specifically, AMPs that are affected by the reorganisation are:
AMP Previously held by… Now held by…
Commercial Community Services &
Corporate Services
Corporate Services
Property Community Services Corporate Services
Corporate Services New Corporate Services
Community Relations New (previously in Strategic Development, Community Services & Environment and Planning)
Community Development
Strategic Planning New Community Development
Customer Services New Community Development
Governance Governance Governance (reduced
content)
4.5 Secondly, since the LTP 2012 was produced there have been a series of changes to the Local Government Act. A number of the changes affect the production of LTP’s. Many of the changes proposed (at time of writing this report) simply reflect ‘best practice’.
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4.6 Tasman District Council will not have to undertake significant changes to its AMP structure arising from the currently proposed, as at the date of writing this report, LGA Amendment Act (Bill No.3) legislative changes. However, a small number of changes may become necessary, should the legislation proceed. Specifically, these relate to greater transparency around significant activities (s.16, 17A). In this regard, the changes reflect good practice, and therefore Council is proposing to have a clearer relationship between significant
activities and the AMPs under which they will primarily be managed. The legislative changes are also seeking to achieve more transparent links between AMPs and the LTP itself.
4.7 The third driver for changing the structure of the AMP groupings relates to feedback from Audit NZ on the LTP 2012. Audit NZ feedback mirrored some of the legislative changes and sought greater transparency around significant activities, particularly the Waimea
Community Dam. Accordingly, the Waimea Community Dam is now in the Engineering – Water Supply AMP. The reasoning for this is that the primary skills for managing an asset and project of this size is held within the Engineering Services Department.
4.8 The NSRBU is also shifting from the Corporate AMP to the Engineering –Wastewater AMP to better reflect where the majority of Council management activities occur in regard to this facility.
4.9 The Nelson Provincial Museum sits within the Community Relations AMP, alongside the local museums. While, Nelson Tasman Tourism funding now sits within Corporate Services (Commercial AMP).
New Structure
4.10 Many of the AMPs have subcomponents and these now reflect the grouping and nature of activities undertaken in each department. The table below shows the subcomponents for each AMP. The subcomponents are essentially the range of activities captured within each AMP.
4.11 Work has been done to re-align all the cost centres attached to these activities to the correct departments. This will improve Council’s ability to manage budgets for each department, and simplify the reporting and performance measurement duties of Council.
NEW AMP GROUPINGS & SUBCOMPONENTS (LTP 2015-2025)
Department AMP Subcomponents
Corporate Services
Corporate Services Information Services; Corporate overhead;
and Finance; Human Resources; CE support
Commercial Forestry, Campgrounds and Aerodromes;
Property (e.g. Port Tarakohe, Mapua Wharf); and Council Controlled Organisations (CCO’s) including Port Nelson; Nelson Airport
Property Operational Property (e.g. Council offices);
Property not associated with any other AMP
Community Community Facilities Saxton Field complex; Community
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Development Facilities; Community Housing; Swimming Pools; Halls; other community buildings;Special Purpose Committees Libraries Richmond, Motueka, Takaka and
Murchison Libraries
Customer Services Richmond, Golden Bay, Motueka, and Murchison service centres
Strategic Planning Strategic Planning
Parks and Reserves Toilets; Sports fields; Playgrounds, Reserve land
Community Relations Grants; Communications (Newsline; radio;
support); Environmental Education, Community partnerships & Recreation (incl. Ecofest); Cultural Services (incl. local and regional museums and Suter Art Gallery)
ASB Aquatic Centre - Environment and
Planning
Public Health and Safety Environmental Health; and Building Control; Animal Control; Civil Defence Emergency Management; Rural Fire;
Maritime Safety; Parking Control Environmental
Management
Environmental Policy; Resource Consents and Environmental Information (including Hazards, Biodiversity, Water, Coasts, Land, Wetlands, Pest Management and Hydrology, monitoring and compliance) Engineering Solid Waste Landfills, collections, recycling
Transportation, Roads and Footpaths
Road construction, traffic management;
street cleaning, community signs cycleways, maintenance, car parks,
footpaths, bridges, pest plants/overhanging trees, street furniture, corridor access, minor safety projects, lighting,
streetscaping, undergrounding, seal extensions
Water Supply Urban water supply; community water schemes (existing and new); irrigation;
Waimea dam; Waiti dam
Stormwater Urban Drainage Areas, stormwater management rest of District
Coastal Structures Ports and wharves; boat ramps; coastal protection and seawalls; Old Mill walkway;
structures; Motueka Endowment Fund
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Flood Protection and River Control works
River management; flood control assets and projects; berms
Wastewater and Sewage Disposal
Areas with and without wastewater and sewerage systems; NRSBU
Governance Governance Democracy Support; Economic Development Agency funding (EDA);
elections
5 Options
5.1 In considering the options for the grouping of AMPs under each of the Departmental activities, it is important to maintain an understanding of the purpose of AMPs – that being documents that guide the detailed planning, activities and budgets for each unit within Council.
5.2 Options for allocation of activities were recently considered through the re-organisation of Council’s Engineering, Community Development, and Corporate Services departments.
The amended organisational structure has been approved by Council.
5.3 Staff consider it appropriate that the 2015 -2025 AMP structure reflects the current organisational structure. This avoids duplication of administrative process and improves process transparency. In particular this approach illustrates a clear relationship between activity management and the corresponding budgets in the LTP, annual plans and annual reports.
5.4 Options around the Waimea Community Dam have been considered. Responsibility for this project could have been split into at least two phases, with the first phase sitting in the Corporate AMP as the primary activity involves establishing the funding mechanisms and financing. The second phase could have then moved to Engineering –Water, for the construction and operation phases. This option could be adopted, however, for on-going clarity purposes, transparency and because Engineering are heavily involved with the funding and financing stages as well, staff considered it appropriate for the Waimea Community Dam activities to stay within the Engineering Water AMP.
6 Strategic Challenges / Risks 6.1 The risks are:
- If we do not change the structure of our AMP groupings we may fail to provide adequate transparency, fail to comply with legislative changes and consequently fail to gain
‘approval’ from Audit NZ for the LTP 2015-2025.
- That operational activities and budgets do not clearly align, creating management risks for the organisation and its assets.
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7 Policy / Legal Requirements / Plan7.1 The preparation of a LTP that details the activities of Council is a requirement of s.93 of the Local Government Act.
8 Consideration of Financial or Budgetary Implications
8.1 The total finances of Council are not affected by the new AMP structure. However, the budgetary requirements of each department are affected by the structure of AMP groupings.
9 Significance and Consultation
9.1 The decision in this report is of low ‘significance’ for most members of the public as it is largely an internal administrative matter. For a few members of the public, particularly those concerned with transparency of decision making, Council performance and Council budgets, it would be of high significance. Any significant financial decisions however for Council activities and levels of service will be made through the LTP process. Therefore no consultation is proposed for the proposed AMP structure.
10 Conclusion
10.1 Changes to the structure for AMP groupings for the LTP 2015-2025 are necessary for Council to provide clear and transparent links between the activities it undertakes and the finances used.
11 Next Steps / Timeline
11.1 Development of the LTP 2015-2025 and AMPs will incorporate the new structure, assuming Council approval through this report.
12 Attachments
1. LTP AMP Groupings and Funding structure 53
2. Engineering AMP Grouping 2015-2025 55
3. Corporate Services, E&P, Governance AMP Group 57
4. Community Development AMP Group 59