Policy on Significance

Introduction

This policy on significance outlines the council's general approach to determining the significance of proposals and decisions, and includes procedures, criteria and some thresholds the Council will use in assessing which issues, proposals, decisions and other matters are significant.

It also lists assets the Council considers to be strategic assets.

Statutory Requirements

Council is required to have a Policy on Significance under section 90 of the Local Government Act 2002 (the Act). The first Policy on Significance was adopted as part of the 2003/2004 Annual Plan process in accordance with section 278. The policy, and any amendment to it, must be adopted by special consultative procedure. A summary of the policy must be included in the Long Term Council Community Plan (LTCCP).

Section 5 of the Act defines "significant" and "significance" as follows:

significance, in relation to any issue, proposal, decision, or other matter that concerns or is before a local authority, means the degree of importance of the issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for, -

a. the current and future social, economic, environmental, or cultural well-being of the district or region:
b. any persons who are likely to be particularly affected by, or interested in, the issue, proposal, decision or matter:
c. the capacity of the local authority to perform its role, and the financial and other costs of doing so significant, in relation to any issue, proposal, decision, or other matter, means that the issue, proposal, decision, or other matter has a high degree of significance.

Reasons For The Policy

Degree of compliance

The significance of a decision will help determine the appropriate nature, extent and degree of compliance required with the decision-making process set out in Part 6 of the Act.

Section 79 of the Act provides that it is the responsibility of the Council to make judgments about how to achieve compliance with sections 77 and 78 that are largely in proportion to the significance of the matters affected by the decision. In making such judgments the Council must have regard to the significance of all relevant matters, and the principles relating to local authorities, the Council's resources and the extent to which the nature of the decision and the circumstances allow consideration of a range of options or the views of other people.

In essence, the more significant the issue the higher the standard of compliance required.

Council decision-making processes must promote compliance with the requirements of sections 77, 78, 80, 81 and 82. For significant decisions, the Council must ensure appropriate compliance.

Consultation

The significance of a matter will also guide the local authority's decisions concerning the extent and nature of the consultation to be undertaken with the persons likely to be affected or interested in the decision or matter.

Council must comply with the principles of consultation set out in section 82 in such a manner that Council considers, at its discretion, to be appropriate. In determining what is appropriate Council must have regard to various matters including the nature and significance of the decision or matter (including its likely impact from the perspective of the persons who will or may be affected by the decision).

The more significant a matter from the perspective of the persons who may be affected by the decision, the more likely Council will need to consult with them on their views.

Public information

The significance of a decision will assist in determining the extent and detail of information to be provided by the local authority when consulting with or reporting to the community.

The principles of consultation (section 82) include the principle that persons interested in decisions should be provided with reasonable access to relevant information, and should be given clear information concerning the purpose of the consultation. In addition, persons who present views to the Council should be provided information concerning both the relevant decisions and the reasons for those decisions. In determining how to comply with these, and the other principles of consultation, Council will take into account the nature and significance of the decision.

If a decision is significantly inconsistent with, or will have consequences significantly inconsistent with a plan or policy of Council, then Council must, when making the decision, identify the inconsistency, give reasons for it and any intention of Council to amend the policy or plan to accommodate the inconsistency (section 80).

In reporting to the community in its Annual Report, Council must give reasons for any significant variance between actual service provision and expected service provision. It must also describe any significant acquisitions or replacement of assets, giving reasons for them. It must explain any significant variation between the projected acquisitions and replacements in the LTCCP and those actually made. The report must also, in relation to each council-controlled organisation, report on the extent to which the council's significant policies and objectives in regard to ownership and control of the organisation have been implemented or attained during the year.

Inclusion in LTCCP and use of Statement of Proposal

Significance may also determine whether a decision on a matter must be explicitly included in the LTCCP, and in a Statement of Proposal which has been considered under a special consultative procedure, before the decision can be made (section 97).

A Council must provide for a decision in its LTCCP or Statement of Proposal if the decision would:

• significantly alter the intended level of service provision for any significant activity (including a decision to commence or cease such activity)
• significantly affect the capacity of Council, or the cost to Council, in relation to any activity in the LTCCP.

Council must use the special consultative procedure in relation to any proposal for an alteration in the mode in which a significant activity is undertaken. (Section 90(4))

In addition, the Policy on Significance identifies the assets the Council considers to be strategic assets. Any decision to transfer ownership or control of a strategic asset, or a decision to construct, replace or abandon a strategic asset cannot be made unless it has first been included in the LTCCP, and in a statement of proposal relating to the LTCCP.

General Approach

Council will consider each proposal or decision on a case by case basis to determine whether the decision is significant. In determining this issue, Council will apply the criteria and procedures and consider the thresholds set out in this policy and will also consider each of the following

• the likely impact/consequences of the decision or proposal on the current and future social, economic, environmental, and cultural well-being of the community
• the parties who are likely to be particularly affected by or interested in the decision or proposal
• the likely impact or consequences of the decision or proposal from the perspective of those parties
• the financial and non-financial costs and implications of the decision or proposal having regard to Council's capacity to perform its role.

The more significant or material the impact or consequences of the decision or proposal, the higher the standard of compliance required with Part 6 of the Act, and the more likely the matter will be 'significant'.

It is helpful to bear in mind that the references to 'significance' in the Act are intended to ensure that appropriate attention and consideration is given to matters based on their relative importance to the District or Region.

Council will not make a decision or proceed with a proposal which it considers to be significant, unless it is first satisfied that sections 77, 78, 80, 81 and 82 of the Act have been appropriately observed. The procedures below are designed to ensure observance of this policy.

Prior to delegating a decision on any specific matter to officers or committees, Council as a whole will consider the significance of the matter being delegated.

Thresholds, Criteria And Procedures

Thresholds:

Application of the thresholds is not necessarily conclusive. A matter which does not meet any particular financial threshold may still be significant if the criteria below suggest that it is.

Proposals or decisions which are likely to have financial implications in excess of the following thresholds will be treated as significant:

Decision or Proposal Threshold

Any: 5 per cent of total rates revenue.

Criteria

If a decision or proposal satisfies one or more of the following criteria, the matter is likely to have a high degree of significance:

• the decision or proposal affects all or a large portion of the community in a way that is not inconsequential;
• the impact or consequences of the decision or proposal on the affected persons (being a number of persons) will be substantial;
• the financial implications of the decision on Council's overall resources are substantial.

Matters which do not satisfy these criteria may have a high degree of significance where it is known that the decision will nevertheless generate a high degree of controversy.

Procedures

Every report to Council must include a statement indicating that the issue of significance has been considered, with a recommendation to Council assessing the significance of the proposal or decision.

If the proposal or decision is considered to be significant, the report will also include a statement addressing the appropriate observance of such of sections 77, 78, 80, 81 and 82 as are applicable.

Strategic Assets

Section 5 of the Act defines strategic asset as follows:

strategic asset, in relation to the assets held by a local authority, means an asset or group of assets that the local authority needs to retain if the local authority is to maintain the local authority's capacity to achieve or promote any outcome that the local authority determines to be important to the current or future well-being of the community; and includes -

a. any asset or group of assets listed in accordance with section 90(2) by the local authority; and
b. any land or building owned by the local authority and required to maintain the local authority's capacity to provide affordable housing as part of its social policy; and
c. any equity securities held by the local authority in -
i. a port company within the meaning of the Port Companies Act 1988:
ii. an airport company within the meaning of the Airport Authorities Act 1966.

For the purposes of section 90(2) of the Act, the Council considers the following assets to be strategic assets:

ACTIVITY/GROUP OF ACTIVITIES	ASSET
Investments	100% Ownership of Westland Holdings Limited
Roading	55 kms of urban roads 650 kms of rural roads 269 bridges 65 kms of footpaths
Water Supplies	10 reticulated water supplies 84,081 metres of water reticulation
Wastewater Systems	4 wastewater schemes 48,070 metres of wastewater reticulation
Stormwater Reticulation	15 stormwater systems 40,000 metres of stormwater reticulation
Community Housing	46 Elderly persons housing units
Parks, Reserves Halls and Domains	Cass Square Community Reserves Community Halls Community Domains
Cemeteries	Hokitika Cemetery Kumara Cemetery
Community Facilities	Hokitika Museum/Carnegie Building Public Toilets Jackson Bay Wharf Hokitika Public Library Council Headquarters Hokitika Swimming Pool

'Significant' And 'Significance' In Other Contexts

The Local Government Act 2002 uses the term significant and significance in a number of contexts. Unless it is inappropriate in the context, the criteria set out in this policy and in the statutory definitions will apply.

sitemap | web design by hairyLemon