The Dunedin City Council is set to approach other councils in the region to propose an initial meeting early next year.
However, the push from the city council to gauge levels of interest in talks about potential options barely crossed the line.
A vote to ditch the idea was tied 7-7 yesterday and Dunedin Mayor Jules Radich used his casting vote to defeat the motion.
A resolution to progress discussions then passed on the mayor’s casting vote after another 7-7 tie.
Mr Radich described the council’s decision as a trigger for talks with other councils in the region to canvass their views.
The city council would look to find common ground with its neighbours, rather than trying to devise a scheme by itself, he said.
"We’re better to talk to the neighbours, have some kōrero and kick it around a bit and see what comes out."
Cr Kevin Gilbert, who led the drive to start discussions, said the subject had been skirted for years.
In response to arguments the timing was poor, Cr Gilbert said any wait for perfect conditions would be a long one.
Cr Lee Vandervis led a series of speeches against the proposal, arguing it had no chance of succeeding.
Cr Vandervis said a unitary authority — taking on Otago Regional Council functions — should apply to the territory covered by the city council only and include Port Otago.
He described failure under the existing organisation of local government to develop the harbourside area of the city.
Cr Vandervis said a discussion about all of Otago was never going to go anywhere.
In a staff report about options, an opportunity to "explore issues of mutual interest" was listed as an advantage of progressing talks.
"If there is enough interest among councils for further discussion, then it allows for open consideration of a range of unitary authorities in a form-follows-function manner."
Additional resourcing to carry out initial discussions was one disadvantage.
Cr Christine Garey was worried about staff resources being stretched by unnecessary work.
"This is not the time to be throwing another bomb in the box," she said.
Cr David Benson-Pope said a unitary authority for all of Otago would only happen through statutory change brought by central government.
Cr Carmen Houlahan said other councils felt they had been "brushed off" by the city council when it came to the likelihood of joining forces in a Three Waters entity.
She suggested pursuing talks about potential for a unitary authority was at odds with this.
Cr Mandy Mayhem said she had heard a lot of naysaying around the table about what might happen.
"Well, how do we know unless we all sit down and have that discussion?"
The vote
That the council progresses discussions about a possible unitary authority for Otago with an initial meeting in early 2025 of elected members of the councils in Otago or their representatives:
For (7): Mayor Jules Radich and Crs Kevin Gilbert, Cherry Lucas, Sophie Barker, Mandy Mayhem, Brent Weatherall, Andrew Whiley.
Against (7): Crs Christine Garey, Lee Vandervis, Bill Acklin, David Benson-Pope, Carmen Houlahan, Marie Laufiso, Steve Walker.
Resolution passed on mayor’s casting vote.
Absent: Cr Jim O’Malley.