2014-01-13 Item 6.3 Appendices 1-5

In cases where the continuing council and transfer manager are unable to agree on
whether the continuing council should enter into the contract and the Minister is
required to make a decision pursuant to section 57(3) of the LGDIR, the CCEO
should write to the Minister setting out:

      the purpose of the contract

      the monetary value of the contract

      why it is desirable to enter into the contract prior to the changeover day

      the impact of the contract on both the new and continuing council after the
       changeover day.

The transfer manager should also write to the Minister setting out the reasons for
not agreeing to the contract.


9.3. New contracts for the new council
It is acknowledged that in order to ensure continuity of service delivery from
changeover day, the transfer manager may need to enter into contracts that will bind
the new council. This power is provided for in section 16 of the LGDIR.

Section 16(3) of the LGDIR provides that the transfer manager must obtain the
approval of the Director-General prior to entering into the contract. In seeking this
approval, the transfer manager should write to the Director-General setting out:

      the purpose of the contract

      the monetary value of the contract

      why it is desirable to enter into the contract prior to the changeover day

      provide an explanation as to the likely impact on the new council if the
       contract is not finalised prior to changeover day.

The transfer manager will ensure that these contracts are, unless absolutely
necessary or the action would be detrimental to the continuing council, entered into
on an interim basis so as to allow the new council to make a new decision in due
course.

Consideration should also be given by the transfer committee as to whether short-
term or long-term shared services arrangement between the new and continuing
council may be of benefit. This is particularly important in the corporate services
space where continuity of corporate knowledge and systems is essential.

All costs incurred by the transfer manager in establishing these contracts will be de-
amalgamation costs pursuant to section 35(1)(d) of the LGDIR.




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