Agenda of Council meeting - Wednesday, 30 June 2021

D. Sets the 2021-22 Fees and Charges as detailed in Appendix 1.

5 Reports for Decisions

21.5.2 Adoption of the 2021-31 Long-term Plan and the 2021/22 Rates Resolution

Doc ID: 537508

1. Purpose of Report

To adopt the 2021-31 Long-term Plan and resolve the setting of the rates, due dates and penalties for rates during the 2021-22 financial year.

Recommendations

That the Council:

A. Receives the report and accepts the level of significance.

B. Accepts the decisions recommended as part of the submissions and deliberations process.

C. Adopts the following policies and strategies to be included in the 2021-31 Long-term Plan;

· Infrastructure Strategy

· Financial Strategy

· Revenue and Financing Policy

· Rating Policy

· Investment Policy

· Liability Management Policy

· Significance and Engagement Policy

· Significant Forecasting Assumptions and Risks

· Development and Financial Contributions Policy

E. Adopts the 2021-31 Long-term Plan in accordance with Section 93 of the Local Government Act 2002, as detailed in Appendix 2.

F. Requests the Chief Executive Officer prepare the final 2021-31 Long-term Plan for publication.

G. Requests the Chief Executive Officer to formally advise submitters of its decisions.

It is Recommended, for the setting of rates, that the Council:

H. Acknowledges that the rates, the subject of this report, relate to the financial year 1 July 2021 to 30 June 2022, and are all GST inclusive.

I. Sets the rates for 2021-22, for the year commencing 1 July 2021, as detailed in Appendix 3 - Schedule of Rates, as included in the 2021-31 Long-term Plan in accordance with section 23 of the Local Government (Rating) Act 2002.

J. Resolves that the rates for 2021-22 (other than for metered water) be payable in four equal instalments on the dates as detailed below:

· 20 August 2021

· 22 November 2021

· 21 February 2022

· 20 May 2022.

K. Resolves that Council charge postponement fees on postponed rates in accordance with Council’s postponement of rates policy and sections 87 and 88 of the Local Government (Rating) Act 2002.

L. Resolves that Council set penalties for 2021-22 on unpaid rates (other than for metered water) under sections 24, 57 and 58 of the Local Government (Rating) Act 2002 on unpaid rates as follows:

· 10% on any outstanding amount of any instalment not paid by the due date. The penalty will be applied on 27 August 2021, 26 November 2021, 28 February 2022 and 27 May 2022 respectively for each instalment;

· 10% on amounts outstanding from earlier years, such penalty being applied on 1 October 2021 and 1 April 2022.

· Requests for waiver of penalties, should be sent, in writing, to the Rates Officer, in accordance with the Council’s Remission of Penalties Policy;

M. Sets the due dates for 2021-22, for the year commencing 1 July 2021 for metered water billing as follows:

Bannockburn, Ranfurly, Naseby, Patearoa, Omakau, Clyde and Roxburgh:

i. 21 October 2021, reading taken in September 2021

ii. 21 April 2022, reading taken in March 2022

Cromwell and Pisa:

iii. 23 December 2021, reading taken in November 2021

iv. 23 June 2022, reading taken in May 2022

Alexandra:

v. 25 November 2021, reading taken in October 2021

vi. 26 May 2022, reading taken in April 2022

N. Resolves set penalties for 2021-22 under sections 57 and 58 of the Local Government (Rating) Act 2002 on unpaid metered water rates as follows:

O. Sets a charge 10% on any metered water rates unpaid after the due date. The penalty will be applied on the date below for the respective instalments:

Bannockburn, Ranfurly, Naseby, Patearoa, Omakau, Clyde and Roxburgh

i. 29 October 2021 and 29 April 2022

Cromwell and Pisa Moorings

ii. 21 January 2022 and 30 June 2022

Alexandra

iii. 03 December 2021 and 03 June 2022

2. Background

A number of workshops were held with Council and community boards which included activity budgets, fees and charges, policies, strategies, content for the consultation process, and community engagement. Each community board made recommendations back to Council on fees and charges, activity budgets for their wards, and content to be included in the consultation document. Council accepted these recommendations.

This resulted in five key proposals, being presented to the community as part of the 2021-31 consultation document Ka Aka Whakamua - Framing our Future. These five proposals were:

1 District Museum Function

2 Cromwell Masterplan

3 Alexandra Riverside Park Development

4 Omakau Community Hub and the

5 Roxburgh Community Pool

Council presented several options to the communities on these five topics and included Council’s preferred option for each of the topics. Council received 852 submissions as a result of the month-long consultation process. This was a record number of submissions since the 2018-28 Long-term Plan were received, 478 submissions. Hearings and deliberations were held in the last two weeks of May for the community boards where they considered their ward-specific proposals and made recommendations to Council for consideration in the 2021-31 Long-term Plan. Council hearings and deliberations were held on 1 and 2 June 2021. As a result of this deliberations process, the 2021-31 Long-term Plan has been prepared and is now ready for adoption by Council. The community supported Council’s preferred option for each of the five proposals.

The Local Government Act 2002 (section 93) requires that the Long-term Plan is adopted by 30 June preceding the financial year it relates to. The Local Government (Rating) Act 2002 states that the rates be set by Council resolution (Section 23), that due dates be set by resolution of Council (Section 24) and that penalties be set by resolution of Council (Sections 57 and 58).

Once adopted, the 2021-31 Long-term Plan will see an average rate increase across the District of 6.7% for Year 1.

3. Discussion

The rates, due dates, amounts and matters for differential rating have all been included in Council’s 2021-31 Long-term Plan. The resolution to set rates permits Council to charge the rates planned for year one of 2021-31 Long-term Plan.

Council have elected to remain with their five preferred options, as supported by the community feedback. However, Council have also asked to review the district-wide component of the Cromwell MasterPlan after Year two once the urban design has been completed. This helps address the community’s concern that Council may be unnecessarily removing buildings that could continue to be used as their current function or possibly be repurposed. Council has also elected to remain with the preferred option for the District Museum strategy but has delayed implementation to enable sector feedback on alternative strategy options to be worked through and reported back to Council within three months for final determination. Audit New Zealand carried out an audit of the Consultation Document and all supporting documentation, including the Infrastructure Strategy and Financial Strategy and issued an unmodified audit opinion in March 2021.

At the time of writing this paper Audit New Zealand is back on-site auditing the final 2021-31 Long-term Plan. A key focus from Audit New Zealand, is on the ability of Council to complete the capital works programme due to multiple councils competing for the same set of resources across New Zealand. This has been compounded with the additional proposed spending in the three-waters area because of the stimulus funding packages. In regard to the financial model, proposed debt and rating impact, staff are not expecting there to be any significant changes to the attached 2021-31 Long-term Plan as there have not been any changes to the initial budgets presented to Audit New Zealand pre-consultation.

4. Options

Option 1 – (Recommended)

Council adopts a long-term plan in order to communicate to the community what services and infrastructure Council plan to offer the community, and how these services and infrastructure will be funded. Council adopts to set the rates, due dates and penalties for the 2021/22 year by resolution. This resolution sets the rates per Council’s Long-term Plan 2021-31 and according to the Revenue and Financing Policy.

Advantages:

· Council can collect rates and penalties for the 2021/22 year

· Council has a mechanism to fund the activities detailed in the 2021-31 Long-term Plan

· Council will meet legislative requirements

· Adopting the Long-term Plan and setting the rates is a requirement by Council so they can subsequently strike the rates and invoice the community for the activities contained within the 2021-31 Long-term Plan.

Disadvantages if this option is not followed:

· Council would not be able to strike the rates and collect the rating income and penalties for the 2021/22 year

· Council may not be able to borrow the required funds needed to support the proposed infrastructure developed contained in the 2021-31 Long-term Plan

· Council will breach its legislative requirements which may harm the reputation of Council.

· This will lead to the Long-term Plan being delayed for adoption and may require additional auditing, which may lead to a breach of statutory deadlines and a delay in the striking of the rates.

Option 2

Request additional changes to the attached 2021-31 Long-term Plan document.

Advantages:

· Allows for further changes to be made to the Long-term Plan.

Disadvantages:

· Breach of the Local Government Act 2002 Sec 93(3) - A Long-term Plan must be adopted before the commencement of the first year to which it relates and continues in force until the close of the third consecutive year to which it relates

· Rates cannot be set or collected before the Long-term Plan is adopted

· Additional costs.

5. Compliance

Local Government Act 2002 Purpose Provisions	Delivering on all four well-beings by financially enabling projects in the 2021-31 Long-term Plan to progress. The resolution to set rates, due dates and penalties is a direct result of Council’s adherence to the Local Government (Rating) Act 2002 and the Local Government Act 2002.
Financial implications – Is this decision consistent with proposed activities and budgets in Long-term Plan/annual plan?	The adoption of the plan will result in an average, rates increase of 6.7% for the 2021/22 year. This process ensures Council is able to fund the new activities it has consulted on as part of the consultation process plus fund the on-going activities also contained within the 2021-31 Long-term Plan.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes. Local authorities must have at all times a Long-term Plan under Section 93 of the Local Government Act 2002.
Considerations as to sustainability, the environment and climate change impacts	Environmental and climate change impacts are considered throughout the Long-term Plan and the Infrastructure Strategy.
Risks Analysis	A failure to set the rates by resolution would result in Council not being able to set and collect rates or penalties within the projected timeframes schedueld for the 2021/22 year. Council may not be able to borrow funds. Council may damage its reputation.
Significance, Consultation and Engagement (internal and external)	The decision to adopt this report is significant as adoption will approve the 2021-31 Long-term Plan and the consequential setting of the 2021/22 rates. It also details Council’s activities and budgets to fund these activities.

6. Next Steps

Once Council resolves to set the rates for 2021/22 the rates will be calculated for each property and struck in July 2021. Notification of these rates will be sent to the appropriate property owners by way of rates assessments and rates invoices in accordance with the Local Government (Rating) Act 2002.

Once the 2021-31 Long-term Plan has been adopted, it will be printed and distributed within a month, along with the response letters to submitters.

Appendix 1 - Fees and Charges 2021-22 ⇩

Appendix 2 - LTP 2021-2031 ⇩

Appendix 3 - Rating Policy 2021-22 ⇩

Report author:	Reviewed and authorised by:

Leanne Macdonald	Sanchia Jacobs
Executive Manager - Corporate Services	Chief Executive Officer
11/06/2021	23/06/2021

21.5.4 Revocation of Part of Greenway Reserve off Waenga Drive

Doc ID: 541066

1. Purpose of Report

To revoke the Local Purpose (Amenity) Reserve classification for 619m² (subject to survey) from Lot 201 DP 359519, which is part of Waenga Drive Greenway Reserve.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to progress the revocation of the Local Purpose (Amenity) Reserve classification from the specified 619m² (subject to survey) area from Lot 201 DP 359519.

C. Agrees public notification of the proposed revocation in accordance with section 24(2)(b) of the Reserve Act 1977.

D. Agrees (following the successful completion of the public notification process, and decision) that the Minister of Conservation is notified in writing of the Council decision and request that the specified part of Waenga Drive Greenway Reserve be approved for revocation and notified in the Gazette.

E. Agrees that if reserve status of the specified Part of Waenga Drive Greenway Reserve is successfully revoked via Gazette notice, that all affected parties are notified and the underlying land is disposed of, subject to subdivision, to the adjoining landowner being Foodstuffs South Island Properties Limited on behalf of Cromwell New World.

F. Agrees that the remainder of Lot 201 DP 359519 of the Waenga Drive Greenway Reserve (excluding the relevant part of Waenga Drive Greenway Reserve in recommendation B above) remain as Local Purpose (Amenity) Reserve.

2. Background

A request from Foodstuffs South Island Properties Ltd (Foodstuffs) to purchase 619m² of greenway adjacent to the New World site in Waenga drive was considered by the Cromwell Community Board (the Board) at its meetings of 5 February 2019 and 30 June 2020.

At its meeting on 15 June 2021 the Board recommended that Council agree to sell the specified Part of the Waenga Drive Greenway Reserve on terms and conditions which included the requirement for public notification of the revocation of the reserve status and the Minister of Conservation consenting to the revocation of the reserve status. Foodstuffs are to meet the costs of this process.

The part of the reserve sought to be revoked is 619m² more or less (subject to survey) and part of Lot 201 DP 359519, which was vested in the Central Otago District Council (Council), as a Local Purpose (Amenity) Reserve in 2006. It forms part of the Waenga Drive Greenway Reserve which is an open space system with pathways linking residences and the town centre. It provides a safe route for members of the community for running, walking and cycling while staying off the roads.

A conditional agreement for sale and purchase has been entered into with Foodstuffs. This report seeks to advance the revocation of that Part of the Greenway Reserve off Waenga Drive. If the revocation process is approved the land can then be disposed of by sale to the adjoining landowner, Foodstuffs. The relevant part of the Waenga Drive Greenway Reserve is outlined in red on the below plan:

Reserve status and relevant statutory provisions

The reserve is subject to section 23 of the Reserves Act 1977 (the Act). Council is the administering body of the reserve.

The reserve is classified as a Local Purpose (Amenity) Reserve. The purpose of a Local Purpose reserve is for providing and retaining areas for such local purpose or purposes as are specified in any classification of the reserve.

Pursuant to section 24 and 24A of the Reserves Act 1977, the Council (as administering body) should:

· Resolve that the reservation of the reserve should be revoked and provide reasons.

· Publicly notify the proposal and specify the reasons for the proposal.

· Council’s Hearings Panel will hear any submissions received and make recommendations to Council.

· Council makes a resolution on the recommendations received from the Hearings Panel.

· If the recommendation is to revoke the reserve status, notify the Minister of Conservation in writing of the resolution and request the revocation be approved and notified by Gazette notice; and

· Receive the decision of the Minister of Conservation, and notify the affected parties.

· On receipt of the Gazette notice record the revocation and arrange disposal.

If revocation of the reserve status is confirmed it will remain Council land prior to being subdivided, then disposed of.

It is Council’s statutory duty to consult with the community in its decision making under the Reserves Act 1977. The proposal to revoke the reserve status and dispose of the Part of the Waenga Drive Greenway Reserve will be publicly notified, giving the opportunity for the public to make submissions.

The proposed Public Notice is attached as Appendix 1, and the Statement of Proposal is attached as Appendix 2.

Council’s Hearings Panel is delegated to hear submissions that relate to section 24(2)(b) and 24(2)(c) of the Reserves Act 1977. This process falls under these sections of the Act.

3. Discussion

Benefits from renewal of residual reserve

Alternative expanded store layouts/designs and feasible relocation options within the town centre have been investigated by Foodstuffs and were found to be unviable. The existing supermarket is surrounded by three road frontages (Waenga Drive, Murray Terrace and Elspeth Street). This means expansion options are limited. Foodstuffs preferred option is to purchase part of the Waenga Drive Greenway Reserve adjacent to New World.

The existing greenway was developed 38 years ago, and at some time in the future the concrete path, lighting, irrigation, and plants will need to be renewed.

Foodstuffs' proposal will result in the remaining part of the greenway being redeveloped at no cost to Council.

Key things to note:

· The remaining adjacent local purpose reserve will be developed to ensure a safe, inviting and improved landscaped and amenity space (at Foodstuffs’ cost)

· Its function will not be lost. An open space pathway will continue to link Waenga Drive into the Cromwell Western Greenway network providing a safe and attractive route for the community; and

· As part of this upgrade, improved connectivity will be provided to the Cromwell Town Centre.

· The redevelopment extends the timeframe of when renewal works would be required. This represents a saving to ratepayers.

These associated improvements will ensure that the residual reserve is not adversely affected by the revocation of the reserve status from part of the Greenway Reserve.

Other community benefits

The community will benefit financially from the sale of the specified Part of Waenga Drive Greenway Reserve. As well as the benefit from an upgraded reserve, there will be a financial sum to reinvest in other reserve areas.

Proceeds received from the sale are to be used for the future development and enhancement of other reserve areas within the Cromwell Ward. This is consistent with sections 78-80 of the Act.

Council will hold proceeds from the sale of the specified Part of Waenga Drive Greenway Reserve in its Cromwell Reserves account to use when required for future development, purchase or enhancement of reserves and reserves assets within the Cromwell ward.

Furthermore, the longevity and viability of a key business within the Cromwell community will be maintained. Foodstuffs are a co-operative company, owned by local store operators, and the wholesale supplier to New World supermarkets, including Cromwell New World. Grocery provision is an essential service to meet food and household needs for the community. An improved retail offering strengthens the Cromwell community to shop and support local (with flow-on employment benefits).

Finally, the upgrade will provide significant investment in the town centre and the community. The estimated build cost is $7 million and construction time 12 months. Local contractors and sub-contractors will be used where possible.

Giving effect to the upgrade of the greenway adjacent to the supermarket

Should the reserve status be revoked, Foodstuffs will need to apply for subdivision consent to create a section for disposal. Foodstuffs will then develop the residual land (at their own cost) in accordance with the approved landscape plan for this area.

4. Options

Option 1 – (Recommended)

Proceed to revoke the Local Purpose (Amenity) Reserve classification of the specified 609m² (subject to survey) from Lot 201 DP 359519, known as Waenga Drive Greenway Reserve, for disposal as recommended in this report.

Advantages:

· The community receives an upgraded greenway reserve.

· The community gains funding that can be used to redevelop other reserves within the ward.

· A business providing community benefit within Cromwell is able to expand to provide increased benefit.

Disadvantages:

· Reserve land can be an emotive matter, and revocation of its status could be viewed negatively by some in the community. However, fair consideration of community views is the reason for public notification and hearings processes being undertaken.

Option 2

Do not proceed to revoke the Local Purpose (Amenity) Reserve classification of the specified 609m² (subject to survey) from Lot 201 DP 359519, known as Waenga Drive Greenway Reserve.

Advantages:

· Reserve land area is not reduced in size by revocation and sale of a portion of the land.

Disadvantages:

· This may have legal implications, as Council has entered into a conditional sale and purchase agreement with the applicant. Conditions include Council agreeing to sell the specified part of the reserve which include proceeding with the public notification process for revocation of reserve status and its disposal.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social, economic, and environmental wellbeing of the community, in the present and for the future, by enabling a business providing community benefit to reconfigure its options for growth; as well as through renewal of the residual reserve.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	All costs of the revocation process will be borne by Foodstuffs. Proceeds received from the future sale are to be used for the future development and enhancement of other reserves areas within the Cromwell Ward.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Foodstuffs is responsible for all costs. Resource consent and written permission from the Council is required to undertake any subdivision and development of the specified Part of Waenga Drive Greenway Reserve. The proposed landscape plan for the residual reserve has already been approved by the Community Board. The revocation of the reserve status will not affect compliance with any conditions of existing resource consents or existing Council infrastructure (which can be considered and protected via easement as part of any future subdivision from the wider reserve). The Proposal is consistent with the proposed Cromwell Masterplan and its strategic objectives including by revitalising the town centre and associated improved access (Objective 6) and enhancing the greenways of Cromwell (part of Objective 5, residential development and amenity).
Considerations as to sustainability, the environment and climate change impacts	There will be a small loss of greenspace of 619m² which is not anticipated to have an impact on sustainability or climate change matters.
Risks Analysis	The loss of 619m² from the local purpose reserve is not considered to materially affect the purpose for which the reserve is held, particularly as Foodstuffs' proposal will result in the remaining greenway being redeveloped. A potential precedent for selling off reserve land may be set; however, this will be mitigated by all future applications or proposals being assessed on their own merits on a case-by-case basis.
Significance, Consultation and Engagement (internal and external)	The public will have the opportunity to formally submit on the revocation proposal.

6. Next Steps

Advertise proposal to revoke reserve.	8 July – 9 August 2021
Board Hearings Panel considers submissions.	14 September 2021
Hearing Panel recommendation presented to Council.	3 November 2021
Council adopts or rejects Hearings Panel recommendation.	3 November 2021
Request the Minister of Conservation’s consent to revoke the reserve status.	5 November 2021
Foodstuffs apply for resource consent if Minister of Conservation consent is approved.	TBC
Upon Foodstuffs providing survey plan, request Department of Conservation to publish Gazette Notice to revoke reserve.	TBC
Settlement of the sale contract 10 working days after all consents and title issued.	TBC

Appendix 1 - Proposed Public Notice ⇩

Appendix 2 - Proposed Statement of Proposal ⇩

Report author:	Reviewed and authorised by:

Gordon Bailey	Louise van der Voort
Parks and Recreation Manager	Executive Manager - Planning and Environment
15/06/2021	16/06/2021

21.5.5 Hardship Grant Application for Alexandra District Museum Inc.

Doc ID: 540373

1. Purpose of Report

To consider a hardship grant application from the Alexandra District Museum Inc.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Declines a hardship grant application request of $12,242 plus GST.

2. Background

Alexandra District Museum Incorporated. (ADMI), operating as Central Stories Museum and Art Gallery, has received an annual grant from Central Otago District Council since 2005. The grant amount from Council for the past three years has been $48,967.80 plus GST per annum, which is in addition to the annual grant received from the Vincent Community Board, of $73,451.52 per annum. Both grants contribute to the operational costs of the museum and art gallery and are linked to service level agreements with the Council and Community Board respectively.

The Central Stories website states, “Central Stories is the major public art gallery for Central Otago. It is the main public Museum for the Central Otago region covering human and natural history with features on gold mining, gold dredging, geology and an indoor enclosure for live Otago Skinks. The Good Art Shop features exclusive and quality artworks and bespoke quality craft items”.^{^[1]}

3. Discussion

At the meeting on 5 May 2021, Council agreed to leave this item to lie on the table, pending a decision on the district museum function as part of the Long-term Plan 2021-2031 process. At the Long-term Plan deliberations meeting on 2 June 2021, Council decided not to support the status quo option to fund ADMI as a district museum carrying out associated district functions. On 9 June 2021, the Vincent Community Board considered a hardship grant application from ADMI and resolved to grant them $18,364.

The 2019 Grants Policy requires all community and promotions grant funding be allocated through a contestable process at six-monthly funding rounds, in October and April each year. The transition to this funding timeline will commence from the adoption of the 2021-2031 Long-term Plan from 1 July 2021. As this is a change in operational timelines for Council funding rounds, a hardship grant application has been set up for groups who have been reliant on Council grants to pay staff wages and will be at risk of being unable to continue paying these wages without this funding.

The hardship grant application process is independent to Council and community board contestable grant funding rounds and will not influence future eligibility in these decision-making processes. However, any hardship grant funding will be sourced from contestable grant budgets, thus reducing the amount of funding for future distribution in the next financial year.

ADMI has applied to both the Council and Vincent Community Board for hardship grants to enable their continued operation until their grant applications to Council and the community board contestable funding rounds can be heard.

ADMI has applied for a total of $30,606 in hardship grant funding to cover operating costs for three months (July through September) – $12,242 from Council and $18,364 from the Vincent Community Board. According to ADMI’s three monthly profit and loss report, the average monthly cost to keep the doors open and staff paid is approximately $10,675.

ADMI’s financial balance sheet as of 31 March 2021 (Appendix 2) states that the group has $215,429 in the bank. According to the Trust’s accountant, ADMI currently has $180,000 in the bank which is tagged to the Elizabeth Heafy Bequest (Appendix 7), which means that ADMI has $35,429 left in the bank for operational expenses. Furthermore, the Trust now also has the money they have been granted by the Vincent Community Board, which they will receive after the Long-term Plan is signed off on 30 June 2021. It is understood that while the Elizabeth Heafy Bequest money was not bequeathed for any specific purpose, the Trust Board resolved “that the Heafy Bequest monies be retained as a capital investment with the interest being accumulated to purchase a specific artwork or artifact acquisition for the Museum Collection” (Appendix 5). It is not the preference of the Trust to use these funds for operational expenses.

It should be noted that the purpose of this hardship grant is to tide community organisations over who have no other options to continue operating, based on demonstrated financial need and where there is a clear gap in funding.

ADMI’s financial report demonstrates that in addition to the funding they receive from Council and the Vincent Community Board, they have also received grants from external sources over the past 12 months to assist them to carry out their activities.

During the first quarter of the 2021/22 financial year, projects that ADMI intends to carry out include:

· Refreshing existing and establish new exhibits/displays in the museum

· “Winterstella” exhibition

· Arts Gold Awards

· Activities supporting the 65^th Anniversary of the Alexandra Blossom Festival

ADMI Funds 1 July 2021 -30 September 2021

Elizabeth Heafy Bequest money	$180,000
ADMI untagged available funds	$35,429
ADMI VCB hardship grant application funds (approved)	$18,364
ADMI Council hardship grant application funds (undecided)	$12,242
ADMI operational expenses (approximately)	$32,025

4. Options

Option 1 – (Recommended)

Council declines a grant request of $12,242 plus GST to ADMI.

Advantages:

· This decision is in line with Council’s hardship grant application criteria, which states that “grants will be awarded based on demonstrated financial need where it is clear that the gap in funding will severely threaten the applicant’s ability to operate”.

· Council’s grant budgets would remain intact for the community grants funding round, which opens on 1 July 2021.

Disadvantages:

· No perceived disadvantages due to ADMI securing funding from Vincent Community Board through the hardship grant application process.

Option 2

Council approves a grant request of $12,242 plus GST to ADMI.

Advantages:

· ADMI will have additional funds to continue their operations.

Disadvantages:

· Any allocated funds will be removed from the contestable funding round that will open 1 July 2021.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social, cultural, economic, and environmental wellbeing of communities, in the present and for the future by ‘awarding grants primarily for ‘local community infrastructure’ and ‘local services’ as these are interpreted in the Central Otago context.’
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	Yes, the Council has agreed to use budgeted funds in the 2021-2031 Long-term Plan for hardship grant applications. Funds will be made available 1 July 2021.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, the recommended decision is consistent with the Central Otago District Council Grants Policy.
Considerations as to sustainability, the environment and climate change impacts	There are no implications.
Risks Analysis	There is no perceived risk to this decision.
Significance, Consultation and Engagement (internal and external)	This application does not require consultation and is not considered significant.

6. Next Steps

The Council agrees on and resolves the grant amount for the applicant.

The applicant will be advised in writing of the Council’s decision, with information about any conditions applied to the approved grant, and the process for uplifting the grant if relevant.

If approved, payment of the approved grant is made once an invoice is received.

Nil

Report author:	Reviewed and authorised by:

Nikki Aaron	Sanchia Jacobs
Community Development Officer	Chief Executive Officer
23/06/2021	23/06/2021

21.5.7 Central Otago District Council Emissions Inventory and Management Plan

Doc ID: 540665

1. Purpose of Report

To consider Council’s 2019-2020 emissions inventory and emissions management and reduction plan.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Notes council’s 2019-2020 emissions inventory report.

C. Agrees to set a target of reducing gross emissions by 52% over the next 5 years.

D. Approves council’s emissions management and reduction plan.

2. Background

Central Otago District Council has been working to understand, mitigate and adapt to the impacts of climate change since 2017. A report on climate change implications for the Central Otago District was commissioned and prepared by Bodeker Scientific: “The Past, Present, and Future Climate of Central Otago: Implications for the District.”

A resilience plan has been prepared to identify risks to critical council infrastructure. The plan includes actions and funding required to improve the resilience to events such as those caused by climate change.

Council adopted its Sustainability Strategy in February 2019. The strategy outlines steps that Council will take to be more sustainable; including measuring and reducing Council’s emissions through Toitū Carbonreduce Programme. The strategy has been developed to focus on issues Council directly controls in the first instance.

Council impacts on the sustainability of the community through both the services it provides and the regulatory processes it applies. The manner in which infrastructure services are provided can have a direct environmental impact. Council’s regulatory processes are designed to mitigate the impacts of today's development on the future.

Council declared a climate crisis in September 2019. This declaration was an acknowledgement of the urgency and scale of change needed to avoid the worst impact of climate change.

There are opportunities to reduce council’s carbon footprint, reduce environmental impacts and streamline business processes across all activities. Council will demonstrate community leadership by setting targets and measuring emissions. The Toitū Carbonreduce Programme will support engagement with the community in wider sustainability discussions.

3. Discussion

The ‘2019-20 CODC Emissions Inventory Report’ (Appendix 1) is the first such report to be produced; it sets out Central Otago District Council’s operational emissions (ie. emissions resulting from delivering Council activities) during the 2019-20 financial year. This report and the associated source data have been independently audited by Toitū Envirocare, giving Council and external partners assurance that the figures contained within are accurate.

The Central Otago District Council emissions inventory report is compiled from usage and emissions data from the following emissions sources: electricity, diesel (fuel), petrol, diesel (heating), lpg, coal, wastewater treatment, refrigerants (heatpumps), CO₂gas, air travel, rental cars, fertiliser use and waste to landfill.

As adapted from the Greenhouse Gas (GHG) Protocol, these emissions were classified into the following categories:

· Direct GHG emissions (Scope 1): GHG emissions from sources that are owned or controlled by the company.

· Indirect GHG emissions (Scope 2): GHG emissions from the generation of purchased electricity, heat and steam consumed by the company.

· Indirect GHG emissions (Scope 3): GHG emissions required by the Programme that occur as a consequence of the activities of the company from sources not owned or controlled by the company. Inclusion of other Scope 3 emissions sources is done on a case-by-case basis.

Central Otago District Council’s greenhouse-gas emissions (GHG) by scope is shown in Figure 1.

Figure 1: GHG emissions (tonnes CO2e) by scope

Central Otago District Council has been divided into seven separate business units to provide more detailed information: Three Waters, Roading, Property and Facilities, Parks and Reserves, Pools, Solid Waste and General Council. These better reflect the major greenhouse-gas emission producers within Council’s organisational structure.

An overview of Central Otago District Council’s greenhouse-gas emissions (GHG) by business unit is shown in Figure 2.

Figure 2: GHG emissions by business unit

Council’s top 10 greenhouse-gas emissions by source is shown in Figure 3.

Figure 3: GHG emissions by source - top 10

Council’s largest emissions source is from the disposal the districts waste landfill. Central Otago District Council contracts the management of four transfer stations, kerbside collection and transfer to landfill to All Waste. All of Council’s kerbside and transfer station waste goes to Victoria Flats Landfill. The landfill is located within the Queenstown Lakes district.

The landfill is operated by SCOPE Resources under a build own operate transfer (BOOT) contract with Queenstown Lakes District Council. An agreement permits waste collected in the Central Otago district to be disposed at the landfill through to 2029.

Disposal of the districts waste to landfill is a Scope 3 additional emission and accounts for 72% of Council’s gross emissions.

Council’s second largest emissions source is a result of wastewater treatment throughout the district. It is a substantial source because it accounts for the entire districts’ wastewater production and treatment.

Waste (sludge and screenings) generated from wastewater treatment accounts for 8% of Council’s mandatory emissions. The incorporation of modern technology and processes during future upgrades will result in lower emissions when compared to the current facilities.

Another large emissions source is from electricity. Council has 165 metered sites under this source. Some reduction projects outlined in Appendix 2 (Table 1), while reducing other fuel use, will increase emissions from electricity.

Emissions from LPG and coal fired boilers account for over 9% of Council’s mandatory emissions.

Central Otago District Council is committed to managing and reducing its emissions in accordance with the Programme requirements. The ‘2019-20 CODC Emissions Management and Reduction Plan’ (Appendix 2) provides details of the emission reduction targets to be implemented. These are ‘SMART’ targets (specific, measurable, achievable, realistic, and time-constrained).

Key projects to reduce emissions include:

· Cromwell swimming pool LPG boiler replacement.

· Alexandra office coal fired boiler replacement.

· Double glazing of Alexandra council office.

· Continued transition to electric/hybrid vehicles.

· Replacement of diesel heating at Tarras hall.

· Improved waste diversion.

· Waste transferred to a landfill with gas capture and destruction system.

This emissions management and reduction plan has set the target for emission reductions from Scope 1, Scope 2 and mandatory Scope 3 emissions at 8% over the 5-year life of this plan. These emissions account for 26% of Council’s gross footprint and excludes emissions from the collection and transfer of district waste to landfill. This emissions reduction target will be measured on the basis of emissions per rateable property.

The report has also set a target of reducing gross carbon emissions reported in 2019/20 by 52%. This 5-year target is on the basis of absolute reductions in GHG emissions rather than a reduction in emissions intensity. A key challenge will be managing emissions reduction targets as the district continues to grow.

4. Options

Option 1 – (Recommended)

Agree to measure Council’s carbon footprint set carbon targets through the emissions management and reduction plan.

Advantages:

· Highlights Council’s commitment to sustainability.

· Sets targets for Council’s emissions management and reduction.

· Shows strong community leadership.

· Places the ownership of sustainability improvements on activities delivered by Council on Council.

· Contribute to emissions reduction targets for New Zealand set through the Climate Change Response (Zero Carbon) Amendment Act 2019.

Disadvantages:

· There is a cost associated with obtaining and maintaining certification with Toitu.

· Investment will be required to further reduce Council emissions.

Option 2

Do nothing

Advantages:

· No ongoing measurement and certification costs.

· No agreement to meet carbon targets.

Disadvantages:

· Does not demonstrate ownership or leadership on sustainability by Council.

· Is unlikely to reduce Council’s carbon footprint, as projects and programmes would not consider their relevant emissions.

· Council will not meet its obligations under the Climate Change Response (Zero Carbon) Amendment Act 2019.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the environmental wellbeing of communities, in the present and for the future by understanding and reducing emissions from Council related activities.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	No – projects outlined in the emissions management and reduction plan are consistent with proposed activities in the long term and annual plans.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, The following Council policies were considered: · Sustainability strategy · Long term plan
Considerations as to sustainability, the environment and climate change impacts	The emissions inventory report and emissions management and reduction plan supports the actions of Council’s Sustainability Strategy. The emissions management and reduction plan sets targets for Council to reduce its operational emissions.
Risks Analysis	There is reputational risk to Council if the proposed emissions management and reduction plan initiatives are not delivered.
Significance, Consultation and Engagement (internal and external)	The emissions inventory report and emissions management and reduction plan does not meet Council’s significance policy.

6. Next Steps

Following certification Council’s emissions inventory report and emissions management and reduction plan will be made available on Council’s website.

Table 2: Gross organisation GHG emissions by scope for current measurement year.

Appendix 1 - Emissions inventory report 2019-20 ⇩

Appendix 2 - Emissions management and reduction plan 2019-20 ⇩

Report author:	Reviewed and authorised by:

Quinton Penniall	Julie Muir
Environmental Engineering Manager	Executive Manager - Infrastructure Services
21/06/2021	21/06/2021

Greenhouse Gas Emissions Inventory summary

Table 1: GHG emissions data summary.

	2020
Scope 1	2,428.81
Scope 2	713.19
Scope 3 Mandatory	329.96
Scope 3 Additional	10,006.07
Scope 3 One time	0.00
Total gross emissions	13,478.03

Certified green electricity	0.00
Purchased emission reductions	0.00
Net GHG emissions (all scopes)	13,478.03

Total gross GHG emissions per Full-Time-Equivalent Staff - tCO₂e per FTE staff	91.69
Total mandatory GHG emissions per Full-Time-Equivalent Staff - tCO₂e per FTE staff	23.62
Total gross GHG emissions per Head of Population - tCO₂e per Head of Population	0.63
Total mandatory GHG emissions per Head of Population - tCO₂e per Head of Population	0.16
Total gross GHG emissions per Rateable Property - tCO₂e per Rateable Property	0.96
Total mandatory GHG emissions per Rateable Property - tCO₂e per Rateable Property	0.25
Total gross GHG emissions per Turnover/revenue ($Millions)	204.80
Total mandatory GHG emissions per Turnover/revenue ($Millions)	52.76

Note: total mandatory emissions includes scope 1, scope 2, and scope 3 (i.e. excludes scope 3 one-time and scope 3 additional). Refer to inventory spreadsheet for full time series.

Indicator	tCO₂e
Scope 1
Other	17.77
Other fuels	249.22
Other fuels - coal	78.60
Other gases	5.86
Passenger vehicles - default age	0.20
Stationary Energy	21.94
Transport fuels	98.08
Water & Wastewater	1,957.14
Scope 2
Electricity	713.19
Scope 3
Electricity	3.57
Scope 3 Additional	10,006.07
Transport - other	37.40
Waste	288.99
Total	13,478.03

Table 3: GHG emissions inventory summary by scope and business unit.

Component gas	Scope 1	Scope 2	Scope 3	Total	Removals	After removals
CH₄	1.09	32.05	9,824.62	9,857.75	0.00	9,857.75
CO₂	2,406.99	680.49	507.94	3,595.42	0.00	3,595.42
HFCs	0.00	0.00	0.00	0.00	0.00	0.00
N₂O	20.73	0.66	3.48	24.86	0.00	24.86
NF₃	0.00	0.00	0.00	0.00	0.00	0.00
PFCs	0.00	0.00	0.00	0.00	0.00	0.00
SF₆	0.00	0.00	0.00	0.00	0.00	0.00
Total	2,428.81	713.19	10,336.03	13,478.03	0.00	13,478.03

Table 4: Mobile and stationary combustion of biomass.

Biomass	Quantity	Tonnes Biogenic CO₂
No activity recorded	n/a	n/a

Table 5: Deforestation of two hectares or more.

Source	Mass	tCO₂e
Deforestation tCO₂e (tCO₂e)	4,273.00	4,273.00

Table 6: GHG stock liability (see Table 13: for mass of individual gases).

Source	Units	Quantity	Potential Liability tCO₂e
CO₂	kilograms, tonnes	942.30	314.93
Diesel stationary combustion	litres	1,700.00	4.61
HCFC-22 (R-22, Genetron 22 or Freon 22)	kilograms	132.30	239.46
HFC-32	kilograms	19.28	13.01
LPG stationary commercial	kilograms	720.00	2.18
R-410A	kilograms	185.15	386.59

Table 7: Land-use liabilities.

Type of sequestration	Liability tCO₂e
Contingent liability (carbon sequestered this reporting period)	3,220.00
Potential sequestration liability (total carbon stock)	114,112.00

Table 8: Renewable electricity generation on-site.

Renewable generation on-site	kWh generated	tCO₂e avoided
No activity recorded	n/a	n/a

Table 9: Purchased emissions reductions.

Type of emission reductions purchased	Amount	tCO₂e
Certified green electricity (tCO₂e)	0.00	0.00
Purchased emission reductions (tCO₂e)	0.00	0.00
Total	0.00	0.00

Table 11: GHG emissions sources included in the inventory

Emissions source	Emissions source quantity	Data unit	Business unit	Scope	Data source notes	Level of Uncertainty
Diesel - Council Cars	11,725.27	L	General Council	Scope 1	Fuel Invoices - Challenge, Caltex, Z Cromwell, Z-Energy	Low
Petrol - Council Cars	25,474.47	L	General Council	Scope 1	Fuel Invoices - Challenge, Caltex, Z Cromwell, Z-Energy	Low
Diesel - Heating	8,096.4	L	Property & Facilities	Scope 1	Fuel invoices - Mini Tankers, McKeown, Z-Energy	Low-moderate
LPG - Reticulated	1145564.85859	kWh	Pools	Scope 1	Contact Energy invoices, Rockgas invoices.	Low
LPG - Bottled	1305	kg	Parks & Reserves	Scope 1	Genesis Energy invoices. (Clyde Rec Reserve/Omakau Domain no longer within CODC operational boundary)	Low-moderate
Refrigerants - heatpumps	0	kg R407c	Property & Facilities	Scope 1	Invoice from HVAC technicians - Shannons HVAC Limited	Low
Rental car	944	km	General Council	Scope 1	Avis Rent-A-Car invoices	Low
Coal - Sub-bituminous - Boiler-fuel	39197.82609	kg	Property & Facilities	Scope 1	Ohai Invoices	Low-moderate
Wastewater Treatment Plants Emissions	1957.13735	tCO₂e	3 Waters	Scope 1	Testing and measurements taken from CODC WWTPs used to calculate GHG emissions by Toitū-provided program.	Moderate
CO₂ - Alexandra and Cromwell Pools	5855.8	kg	Pools	Scope 1	BOC invoices	Low
Fertiliser used on CODC reserves	1,380.00	kg	Parks & Reserves	Scope 1	Delta reporting	Low
Electricity-Time of Use	3,054,709.55	kWh	3 Waters	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Time of Use	270,517.58	kWh	Roading	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Time of Use	201,460.73	kWh	Property & Facilities	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Time of Use	1,660,779.15	kWh	Pools	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Non half Hourly	1,342,794.64	kWh	3 Waters	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Non half Hourly	38.27	kWh	Roading	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Non half Hourly	566,276.21	kWh	Property & Facilities	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Non half Hourly	147,676.66	kWh	Parks & Reserves	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Non half Hourly	55,555.50	kWh	Pools	Scope 2	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Time of Use-Transmission and distribution losses	284,536.42	kWh	3 Waters	Scope 3 Mandatory	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Time of Use-Transmission and distribution losses	23,573.52	kWh	Roading	Scope 3 Mandatory	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Time of Use-Transmission and distribution losses	19,026.37	kWh	Property & Facilities	Scope 3 Mandatory	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Time of Use-Transmission and distribution losses	155,269.31	kWh	Pools	Scope 3 Mandatory	Genesis Energy Invoices, Genesis Energy Spreadsheets	Low
Electricity-Non half Hourly-Transmission and Distribution losses	1,342,794.64	kWh	3 Waters	Scope 3 Additional	NHH electricity-use used to estimate NHH losses. Genesis Energy Invoices, Genesis Spreadsheets	High
Electricity-Non half Hourly-Transmission and Distribution losses	38.27	kWh	Roading	Scope 3 Additional	NHH electricity-use used to estimate NHH losses. Genesis Energy Invoices, Genesis Spreadsheets	High
Electricity-Non half Hourly-Transmission and Distribution losses	566,276.21	kWh	Property & Facilities	Scope 3 Additional	NHH electricity-use used to estimate NHH losses. Genesis Energy Invoices, Genesis Spreadsheets	High
Electricity-Non half Hourly-Transmission and Distribution losses	147,676.66	kWh	Parks & Reserves	Scope 3 Additional	NHH electricity-use used to estimate NHH losses. Genesis Energy Invoices, Genesis Spreadsheets	High
Electricity-Non half Hourly-Transmission and Distribution losses	55,555.50	kWh	Pools	Scope 3 Additional	NHH electricity-use used to estimate NHH losses. Genesis Energy Invoices, Genesis Spreadsheets	High
Air travel domestic (average)	128,551	passenger-km	General Council	Scope 3 Mandatory	Flight charges to credit cards	Low-Moderate
Air travel short haul (economy)	39,020	passenger-km	General Council	Scope 3 Mandatory	Flight charges to credit cards	Low-Moderate
Waste landfilled - No LandFill Gas Recovery - General Waste from office wheelie bins	2,475.70	kg	Property & Facilties	Scope 3 Mandatory	Estimate based on total contractor (AllWaste) collection weights	High
Waste landfilled - No LFGR - General Waste from pool skip	1,180	kg	Pools	Scope 3 Mandatory	Contractor (AllWaste) measured weights of skips as they were emptied	Low
Waste landfilled - No LFGR - General Waste from office skip	6,740	kg	Property & Facilties	Scope 3 Mandatory	Contractor (AllWaste) measured weights of skips as they were emptied	Low
Waste landfilled - No LFGR - General Waste from campground skips	8,910	kg	Parks & Reserves	Scope 3 Mandatory	Contractor (AllWaste) measured weights of skips as they were emptied	Low
Waste landfilled - No LFGR - Screenings (from wastewater)	95,240	kg	3 Waters	Scope 3 Mandatory	Disposal invoices from Contractor (Scope Resources Limited) of screenings from wastewater treatment process	Low
Waste landfilled - No LFGR - Sludge (from wastewater)	171,140	kg	3 Waters	Scope 3 Mandatory	Contractor (SJ Allen Holdigns Limited, Scope Resources Limited) invoices of sludge from wastewater treatment	Low
Waste landfilled - No LFGR - Parks/Reserves/Street litter bins	58,830	kg	Parks & Reserves	Scope 3 Additional	Information provided by waste contractor.	Low - Moderate
Waste landfilled - No LFGR - District Waste	8,312.94	tonnes	Solid Waste	Scope 3 Additional	Invoices from Landfill Management company (Scope Resources), and Contractor (AllWaste) invoices	Low
Diesel used during kerbside-collection of refuse	26535.82	L	District Waste	Scope 3 Additional	Contractor reporting (AllWaste)	Low
Diesel used during kerbside-collection of recycling	27915.51	L	District Waste	Scope 3 Additional	Contractor reporting (AllWaste)	Low
Diesel Fuel used to transfer Waste from Transfer Station to Landfill	13513.93153	L	District Waste	Scope 3 Additional	Contractor reporting (AllWaste)	Low
Transport of Screenings from WWTPs to landfill via ute-towed trailers	4,021.28	t.km	3 Waters	Scope 3 Additional	Contractor reporting, scope invoices.	Low-Moderate
Transport of Sludge from WWTPs	44,426.46	t.km	3 Waters	Scope 3 Additional	Contractor invoices (SJ Allen, Fulton Hogan), calculations	Low-Moderate

6.1 Other emissions – HFCs, PFCs and SF₆

We use hydrofluorocarbons (HFCs) in our operations, and these have been included in the inventory.

No operations use perfluorocarbons (PFCs), Nitrogen Trifluoride (N3) nor sulphur hexafluoride (SF₆), therefore no holdings of these are reported and no emissions from these sources are included in this inventory.

6.2 Other emissions – biomass

No biomass is combusted in the operations and therefore no emissions from the combustion of biomass are included in this inventory.

6.3 Other emissions – deforestation

Deforestation has been undertaken and is shown in Table 5. Forestry consisting of Pinus radiata was cleared from Council-owned land in Alexandra. New Zealand carbon credits (4,273 units, equivalent to 4,273 tCO₂e) were purchased from the Emissions Trading Scheme to offset the carbon-liability being removed. The emissions inventory report does report directly on deforestation and the associated purchased reductions. They have been included for transparency.

6.4 Pre-verified data

No pre-verified data is included within the inventory.

7 GHG emissions source exclusions

Emissions sources in Table 12 have been identified and excluded from the GHG emissions inventory.

Table 12: GHG emissions sources excluded from the inventory

Business unit	GHG emissions source	GHG emissions level scope	Reason for exclusion
General Council	Office Supplies	Scope 3 Additional	Carbon emissions originating from the manufacture of office supplies including paper, pens, computers etc. These are accounted de minimis.
General Council	Freight	Scope 3	Freight emissions have been excluded from this inventory as currently data can not be collated with current purchasing and courier systems.
General Council	Fugitive Refrigerant - Council Cars	Scope 1	Refrigerants estimated to have leaked from the air-conditioning systems in Council cars. Due to Council's cars being well maintained, this is accounted de minimis.
Property and Facilities	Electricity (tenanted sites)	Scope 2 and Scope 3	Electricity for tenanted sites is on-charged. This has been excluded from the inventory as it is not paid for or controlled by Council.

8 Data collection and uncertainties

Table 11 provides an overview of how data were collected for each GHG emissions source, the source of the data and an explanation of any uncertainties or assumptions made. Estimated numerical uncertainties are reported with the emissions calculations and results.

All data was calculated using Toitū emanage and GHG emissions factors as provided by the Programme (see Appendix 1 - data summary.xls).

A calculation methodology has been used for quantifying the GHG emissions inventory using emissions source activity data multiplied by GHG emissions or removal factors.

The table in the Sources section of this report details, for each emissions source, from where data was collected and a brief explanation of any uncertainties and assumptions made in the collection of that data.

The raw collected-data was processed by Toitū Envirocare using their E-Manage reporting-program and greenhouse-gas emissions factors provided by them. During this process all emissions sources are multiplied by an emissions factor which converts the quantity of source activity to tonnes of carbon dioxide equivalent emissions.

9 GHG emissions calculations and results

GHG emissions for the organisation for this measurement period are provided in Table 1 where they are stated by greenhouse gas, by scope, by business unit and as total emissions.

Greenhouse-gas emissions for Central Otago District Council for this measurement period are displayed in Figures 2-4 where they are stated by Scope, by Business unit, and as the top-10 Emissions by source.

The organisation will have a management plan in place for managing and reducing emissions in the future to obtain programme certification.

Figure 2: GHG emissions (tonnes CO₂e) by scope

Figure 3: GHG emissions (tonnes CO₂e) by business activity.

Figure 4: GHG emissions sources by source.

The inventory report and any GHG assertions are expected to be verified by a Programme-approved, third-party verifier. The level of assurance is reported in a separate Assurance Statement provided to the directors of the certified entity.

10 emissions reductions and removals enhancement

The organisation will have an updated management plan in place for managing and reducing emissions in the future in order to maintain Programme recertification.

11 Liabilities

11.1 GHG stocks held ^{^[5]}

HFCs, PFCs and SF₆ represent GHGs with high global warming potentials. Their accidental release could result in a large increase in emissions for that year, and therefore the stock holdings are reported under the Programme (Table 13).

GHG stocks have been reported in this inventory and added into the GHG Stock Liability questionnaire. Central Otago District Council's greenhouse gas liability is composed of gases/fluids necessary to the operation of refrigeration/heating equipment in Council facilities e.g. heatpumps, coal stockpiled for use in a boiler, LPG used at campgrounds, diesel used for heating, and CO₂ used to maintain Pools water quality.

Table 13: HFCs, PFCs and SF₆ GHG emissions and liabilities.

Business Unit	Source	Units	Amount held - end of reporting period	Potential Liability tCO₂e
Pools	CO₂	kilograms	870.56	243.19
Property & Facilities	CO₂	tonnes	71.74	71.74
Property & Facilities	Diesel stationary combustion	litres	1,700.00	4.61
Pools	HCFC-22 (R-22, Genetron 22 or Freon 22)	kilograms	100.00	181.00
Property & Facilities	HCFC-22 (R-22, Genetron 22 or Freon 22)	kilograms	32.30	58.46
Property & Facilities	HFC-32	kilograms	16.20	10.94
3 Waters	HFC-32	kilograms	3.08	2.08
Parks & Reserves	LPG stationary commercial	kilograms	720.00	2.18
3 Waters	R-410A	kilograms	1.10	2.30
Pools	R-410A	kilograms	5.55	11.59
Property & Facilities	R-410A	kilograms	178.50	372.71

11.2 Land-use change

Organisations that own land subject to land-use change may achieve sequestration of carbon dioxide through a change in the carbon stock on that land. Where a sequestration is claimed, then this also represents a liability in future years should fire, flood or other management activities release the stored carbon.

Land-use change has been included in this inventory. Council owns 122 hectares of commercial forests of predominantly Radiata Pine, along with two small areas of Corsican Pine.

12 Purchased reductions

Purchased reductions could include certified “green” electricity, verified offsets or other carbon-neutral-certified services. Organisations may choose to voluntarily purchase carbon credits (or offsets) or green electricity that meets the eligibility criteria set by a regulatory authority. The reported gross emissions may not be reduced through the purchase of offsets or green tariff electricity.

Purchased emission reductions have not been included in this inventory. Council purchased 4,273 units from the New Zealand Emissions Trading Scheme on 31 July 2020 to offset the deforestation that occurred in the 2019/20 year. The deforestation and purchased reductions do not form part of Council’s emissions inventory report.

We do not generate on-site renewable electricity.

13 Double counting / double offsetting

Double counting/offsetting refers to situations where:

· Parts of the organisation have been prior offset.

· The same emissions sources have been reported (and offset) in both organisation and product.

· Emissions have been included and potentially offset in the GHG emissions inventories of two different organisations, e.g. a company and one of its suppliers/contractors. This is particularly relevant to indirect (Scope 2 and 3) emissions sources.

· The organisation generates renewable electricity, uses or exports the electricity and claims the carbon benefits.

· Emissions reductions are counted as removals in an organisation’s GHG emissions inventory and are counted or used as offsets/carbon credits by another organisation.

Double counting / double offsetting has not been included in this inventory.

14 References

International Organization for Standardization, 2006. ISO14064-1:2006. Greenhouse gases – Part 1: Specification with guidance at the organisation level for quantification and reporting of greenhouse gas GHG emissions and removals. ISO: Geneva, Switzerland.

World Resources Institute and World Business Council for Sustainable Development, 2004 (revised). The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. WBCSD: Geneva, Switzerland.

15 Appendix 1: GHG emissions data summary

More GHG emissions data is available on the accompanying spreadsheet to this report:

CEMARS Emissions Calculator-17-18.xlsx, CEMARS Emissions Calculator-18-19.xlsx, CEMARS Emissions Calculator-19-20.xlsx

Introduction

This report is the annual greenhouse gas (GHG) Emissions Management and Reduction Plan prepared for Central Otago District Council and forms the manage step part of the organisation’s application for Programme certification.^{^[6]}^{^[7]}

Rationale

New Zealand has declared a climate emergency committing to urgent action on reducing emissions.

The Climate Change Response (Zero Carbon) Amendment Act 2019 provides a framework by which New Zealand can develop and implement clear and stable climate change policies that:

· contribute to the global effort under the Paris Agreement to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels

· allow New Zealand to prepare for, and adapt to, the effects of climate change.

The changes do four key things:

· set a new domestic greenhouse gas emissions reduction target for New Zealand to:

§ reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050

§ reduce emissions of biogenic methane to 24–47 per cent below 2017 levels by 2050, including to 10 per cent below 2017 levels by 2030

· establish a system of emissions budgets to act as stepping stones towards the long-term target

· require the Government to develop and implement policies for climate change adaptation and mitigation

· establish a new, independent Climate Change Commission to provide expert advice and monitoring to help keep successive governments on track to meeting long-term goals.

Central Otago District is predicted to warm by several degrees by the end of the century. Total precipitation is not projected to change much in the district. The distribution and intensity of rainfall is likely to alter, however, with a greater likelihood there will be longer dry periods and more frequent extreme rainfall events. These events have occurred in the past, though infrequently, providing valuable information as to the consequences of these events and improving planning for the future.

Council adopted its Sustainability Strategy in February 2019. The strategy outlines steps that Council will take to be more sustainable; including measuring and reducing Council’s emissions through Toitū carbonreduce programme. The strategy has been developed to focus on issues Council directly controls in the first instance.

Council impacts on the sustainability of our community through both the services we provide and the regulatory processes we apply. The manner in which we provide infrastructure services can have a direct environmental impact. Our regulatory processes are designed to mitigate the impacts of today's development on our future.

Council declared a climate crisis in September 2019. This declaration was an acknowledgement of the urgency and scale of change needed to avoid the worst impact of climate change.

There are opportunities across all these activities to reduce our carbon footprint, reduce environmental impacts and streamline our business processes. By getting our own house in order first, we can better lead the community in wider sustainability discussions.

Top management commitment

This emissions management and reduction plan has been approved by the Council’s Executive Leadership Team and Elected members, who are committed to implementing the actions listed in the plan.

While this is Council’s first year reporting to the Toitū carbonreduce programme, Council has been committed to reducing its emissions and leading the delivery of sustainable outcomes since 2017. Council has:

· Adopted a Sustainability Strategy (2019-2024).

· Declared a ‘climate crisis’ in the Central Otago region.

· Included considerations about sustainability, the environment and climate impacts on all reports provided to the council and boards.

· Installed publicly accessible electric vehicle charging stations on Council land in main centres throughout the district.

· Replaced 1850 street lights with LED lights which use 60% less electricity.

· Contributed to a heat transfer system between the Molyneux pool and IceInLine reducing the energy consumption for both facilities.

· Replaced 40% of the Council vehicle fleet with hybrid vehicles.

· Supported an application from the Otago Polytech to the United Nations to develop a regional centre of excellence to deliver projects aligned with the Global Sustainable Development Goals.

Person responsible

The officer responsible for overall emission reduction performance and reporting to the Executive team and Elected members is the Environmental Engineering Manager (Infrastructure Services).

Awareness raising and training

Climate change is an incredibly complex issue, presenting challenges in awareness raising and training across a large organisation.

Good practice management approaches must be in place to engage with a wide range of staff on energy consumption, controlling emissions, and the related costs. Data must be regularly collected and collated and the results of projects to reduce emissions must be measured and evaluated.

Achieving ‘best practice’ in carbon and energy management requires the sustained focus of a core group draw from across council. Ongoing senior management support and financial support are vital.

Council’s organisational sustainability team was established in 2019 to provide greater environmental consciousness within the organisational culture. A 12-week sustainability plan (Appendix 1) was developed by the sustainability team with many of the initiatives delivered.

The COVID-19 pandemic required existing resourcing be refocused on responding the immediate pandemic response and on progressing projects that improve the economic wellbeing of our community.

As part of our emissions management and reduction plan the sustainability team will be re-established as the Carbon and Energy Management team to focus on reducing emissions and delivering sustainability initiatives throughout the organisation.

Staff will be made aware of the Council's emissions reduction commitments and the benefits of reducing emissions, and supported to manage their activities’ emissions by:

· making training opportunities, such as relevant Toiutu Envirocare webinars and Energy and Carbon Management Network events, available to relevant staff; particularly group and activity managers of major GHG-emitting activities;

· improving accessibility and timeliness of data delivery to relevant staff;

· providing training on the Council’s sustainability principles as part of an induction programme for all new staff;

· sharing our Toitū carbonreduce certification, reduction targets and successful emission-reduction actions

The community will be made aware of the Council’s emission reduction commitment and actions by:

· Making emission inventories and management and reduction plans available on the Council’s website

Significant emissions sources

2. Figure 1: GHG emissions by source.

Disposal of the districts waste to landfill is a Scope 3 additional emission and accounts for 72% of Council’s gross emissions.

Council’s second largest emissions source is a result of wastewater treatment throughout the district. It is a substantial source because it accounts for the entire districts wastewater production and treatment.

Another large emissions source is from electricity. Council has 165 metered sites under this source. Some reduction projects outlined in Table 1, while reducing other fuel use, will increase emissions from electricity.

Emissions from LPG and Coal fired boilers account for over 9% of Council’s mandatory emissions. Projects to address emissions from these sources are detailed in Table 1.

Targets for emissions reduction

The organisation is committed to managing and reducing its emissions in accordance with the Programme requirements. Table 1 provides details of the emission reduction targets to be implemented. These are ‘SMART’ targets (specific, measurable, achievable, realistic, and time-constrained).

This emissions management and reduction plan has set the target for emission reductions from Scope 1, Scope 2 and mandatory Scope 3 emissions at 8% over the 5-year life of this plan. Scope 1, Scope 2, and mandatory Scope 3 account for 26% of Council’s gross footprint. This emissions reduction target will be measured on the basis of emissions per rateable property.

Specific emissions reduction projects

In order to achieve the reduction targets identified in Table 1 specific projects have been evaluated to achieve these targets. These are detailed below.

4. Table 2: Projects to reduce emissions

Number	Measure	Detail	Responsibility	Completion Date
1	Form carbon and energy management team to oversee delivery of this plan and its measures.	A team shall be formed in-line with our sustainability working group. The team should include representatives from the following groups: 3 Waters, Roading, Property and Facilities, Parks and Reserves (Pools).	Environmental Engineering Manager	Commencing in 2021 and on-going
2	Report on energy use, emissions and plan progress to executive team and councillors	Council's greenhouse gas emissions inventory report and emissions management and reduction plan will be presented to Council for approval annually in-line with certification.	Environmental Engineering Manager	Commencing in 2021 and on-going
3	Run an ongoing staff awareness campaign focussed on areas where staff behaviour can make the most difference.	This may include working with staff on efficient driving, use of electrical devices (on/off), composting food waste, setting heatpump timers. A summary of what staff awareness and training work has been carried out will be included in the annual update of this plan.	Relevant Managers	Commencing in 2021 and on-going
4	Require a carbon and energy management review process of major projects.	It will be policy for the Programme Manager responsible for a new capital project over $1M value to convene a carbon and energy review group, including the Environmental Engineering Manager, the project manager, themselves and others as appropriate at the project’s outset. The purpose of the review will be to identify ways to minimise the project’s carbon footprint and ongoing energy costs and improve resilience. The recommendations of the review will be reported to decision makers before Council commits to a final design.	Relevant Programme Manager	Commencing in 2021 and on-going
5	Require energy performance optimisation to be carried out on new facilities in their first two years.	The Council will intensively monitor its new facilities to identify and correct energy performance issues to ensure they live up to the design potential.	Property and Facilities Manager	Commencing in 2021 and on-going
6	Develop business case for installing solar photovoltaics (PV) at suitable sites	Council has many sites with peak daytime electricity loads that PV installed there could offset electricity bills. A business case will be developed to assess suitable sites.	Property and Facilities Manager supported by Environmental Engineering Manager	June 2023
7	Continue to review, investigate and develop other emission reduction options as opportunities emerge.	Technologies are continually evolving and their costs reducing. Options which do not appear viable at present may become so in future. New measures may be included in the plan annually when it is updated.	Environmental Engineering Manager	On-going
8	Replacement of LPG fired boiler at Cromwell Pool	Replace Cromwell Pool Boiler with Water-Source-Heatpump	Parks and Reserves Manager	December 2021
9	Replacement of Coal fired boiler at Alexandra Council office	The coal fired boiler at the Alexandra Council office will be replaced with an energy efficient alternative. Options are currently being investigated for a suitable replacement.	Property and Facilities Manager	May 2022
10	Double glazing of Alexandra Council office	The Council office in Alexandra will be retrofit with double glazing. This will keep offices warmer and reduce energy costs.	Property and Facilities Manager	June 2022
11	Reduce office waste by diverting recyclable and compostable materials.	Implement an waste reduction systems at Council sites. Remove desk-side rubbish bins and replace with centralised systems with mixed recycling, glass and composting options.	Waste Minimisation Officer	June 2021 and on-going
12	Transition to electric / hybrid vehicles.	The current vehicle fleet will continue to be progressively replaced with electric/hybrid vehicles where practical.	Fleet Manager	On-going
13	Replacement of diesel heating at Tarras hall with energy efficient heatpump.	The diesel heating system is nearing the end of its useful life and will be replaced with energy efficient heatpumps.	Property and Facilities Manager	June 2021
14	Waste going to a landfill with gas capture and destruction system	A landfill gas capture and destruction system is being installed at Victoria Flats Landfill operated by Scope Resources. The system will reduce emissions associated with waste screenings and general waste collected at Council sites.	External - This work is being undertaken by Queenstown Lakes District Council	December 2020
15	Reduce district waste by increasing diversion of recyclables and greenwaste	Continued education and initiatives to promote diversion of waste from landfill. Further opportunities for greenwaste and construction and demolition waste are being explored.	Environmental Engineering Manger	June 2024 and on-going

Table 3: highlights emission sources that contributed to poor data quality and describes the actions that will be taken to improve the data quality in future inventories.

5. Table 3: Projects to improve data quality

Number	Emissions source	Actions to improve data quality	Responsibility	Target Date
16	Waste to landfill (Office, Pools, Skips Waste)	Investigate options for recording data on the corporate waste sent to landfill by Council's operations.	Environmental Engineering Manager	June 2022
17	District waste to landfill.	Composition of waste to landfill is collected to enable more accurate emission calculations.	Environmental Engineering Manager	June 2022
18	Sludge to landfill.	Sludge volumes to be provided per site.	Water Services Manager	June 2022

The emissions inventory identified various emissions liabilities. Table 4 details the actions that will be taken to prevent GHG emissions from these potential emissions sources.

6. Table 4: Projects to prevent emissions and reduce liabilities

Number	Emissions source	Actions to reduce liabilities	Responsibility	Target date
19	Refrigerants	Ensure appropriate procedures and maintenance are in place to limit potenital GHG losses from liability sources.	Property and Facilities Manager	Ongoing

Unintended environmental impacts

Project reference number	8	9	10	11	12	13	14	15
	Replacement of LPG fired boiler at Cromwell Pool	Replacement of Coal fired boiler at Alexandra Council office	Double glazing of Alexandra Council office	Reduce office waste by diverting recyclable and compostable materials.	Transition to electric / hybrid vehicles.	Replacement of diesel heating at Tarras hall with energy efficient heatpump.	Waste going to a landfill with gas capture and destruction system	Reduce district waste by increasing diversion of recyclables and greenwaste
Resource Use
Electricity Consumption
Fuel Consumption
Water Consumption
Wastewater Discharge
Waste to landfill
Air, land and water quality
Transport Congestion
Biodiversity
Land Use
Flooding
Local Economy

Dark Green	Significant positive impact
Light Green	Some positive impact
White	No change
Yellow	Some adverse impact
Red	Significant adverse impact

Key performance indicators

7. Table 5: Key Performance Indicators (KPI)

KPI	2020
Full-Time-Equivalent Staff - tCO₂e per FTE staff	147.00
Head of Population - tCO₂e per Head of Population	21,558.00
Rateable Property - tCO₂e per Rateable Property	14,063.00
Turnover/revenue ($Millions)	65.8100

Council’s mandatory emissions intensity in 2019/20 was 39.11 tonnes of CO₂e per $M gross turnover. Operating revenue will relate weakly to footprint as greater levels of service or growth in population will both tend to increase revenue and emissions. However, there are much stronger short-term influences, such as the timing of major infrastructure projects. A drop in Council carbon footprint per dollar turnover should occur through the implementation of this plan.

Council emissions, in theory, will have a closer relationship with the number of rateable properties in the district and the district population as these relate back to the extent of the services Council must provide and therefore the size of its operation. The emissions intensity by these measures shown in the Table 6.

8. Table 6: GHG emissions per KPI

KPI	2020
Total gross GHG emissions per Full-Time-Equivalent Staff - tCO₂e per FTE staff	91.69
Total mandatory GHG emissions per Full-Time-Equivalent Staff - tCO₂e per FTE staff	23.62
Total gross GHG emissions per Head of Population - tCO₂e per Head of Population	0.63
Total mandatory GHG emissions per Head of Population - tCO₂e per Head of Population	0.16
Total gross GHG emissions per Rateable Property - tCO₂e per Rateable Property	0.96
Total mandatory GHG emissions per Rateable Property - tCO₂e per Rateable Property	0.25
Total gross GHG emissions per Turnover/revenue ($Millions)	204.80
Total mandatory GHG emissions per Turnover/revenue ($Millions)	52.76

Monitoring and reporting

The key emission sources will be reported to activity managers quarterly. Other emission sources will be reported at least annually for CEMARS emissions inventory but more regular reporting will be implemented where efficient and useful for emissions management.

Emissions reduction calculations

9. Table 7: GHG inventory results

	2020
Scope 1	2,428.81
Scope 2	713.19
Scope 3 Mandatory	329.96
Scope 3 Additional	10,006.07
Scope 3 One time	0.00
Total gross emissions	13,478.03
Reporting reductions
5-year average (tCO₂e)	13,478.03
5-year average (tCO₂e) (scope 1 & 2)	3,142.00
Emissions intensity reductions
Turnover/revenue ($Millions)	65.81
GDP deflator values Yr1 prices (assumed)
Adjusted turnover ($M)
Emissions intensity (tCO₂e/$M)	204.80
5-year average emissions intensity (tCO₂e/$M)	204.80

Performance against plan

This is the first year Central Otago District Council has reported against the Toitū carbonreduce programme.

Appendix 1 – 12 Week Sustainability Plan

21.5.8 Proposed Road Stopping - Unnamed Road off Earnscleugh Road

Doc ID: 535191

1. Purpose of Report

To consider a proposal to stop an unnamed unformed road off Earnscleugh Road in accordance with the Local Government Act 1974.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Approves the proposal to stop the unnamed unformed road off Earnscleugh Road, subject to:

- Public notification and advertising in accordance with the Local Government Act 1974.

- No objections being received within the objection period.

- Easements (in gross) in favour of (and as approved by) Earnscleugh Irrigation Society being registered the areas marked “A”, “B”, and “C” in figure 5.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over Lot 3 DP 352186 and the area marked “B” as shown in figure 5.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over the area marked “C” as shown in figure 6.

- The Road being surveyed into three parcels (“A”, “B”, and “C”), and amalgamated in accordance with the plan shown in figure 3.

- Each applicant paying for their respective parcel of land at valuation.

- The applicants sharing all other costs associated with the stopping.

C. Authorises the Chief Executive to do all that is necessary to give effect to the resolution.

2. Background

An unnamed unformed road runs parallel to the northern end of Earnscleugh Road. Legal access to the unnamed road (the Road) can be gained from either Earnscleugh or Fruitgrowers Road. It is a short road, approximately 320 metres in length having an area of just over 6000 square metres.

The Road is shown highlighted in red below in figure 1.

Figure 1 – The unnamed unformed road off Earnscleugh Road

The Road dissects Records of Titles OT13B/77, 214078, and 275687. The greater portion of each of these titles is located on the western side of the Road. A small, alienated parcel of land belonging to each record of title is located on the eastern side of the Road.

A fourth parcel of land sits to the north of the alienated parcels. Part of Fruitgrowers Road has been formed over the parcel. The land is Bridge Reserve, held in the name of Land Information New Zealand (LINZ).

A plan of the dissected Records of Titles is shown in figure 2 below.

Figure 2 – Records of Titles OT13B/77, 214078, and 275687

The owners of Records of Titles OT13B/77, 214078, and 275687, have now applied (individually and jointly) to stop the section(s) of legal Road between their dissected land parcels.

A plan of the proposed stopping is shown below in figure 3. The plan provides for the road to be surveyed into three new lots. The new lots would then be amalgamated with the adjoining record of title to provide each applicant with a single undissected title.

Figure 3 – Plan of proposed stopping

3. Discussion

Evaluation of Application

An evaluation of the proposal to stop the Road is shown in the table below.

Item	Criteria to be considered	Evaluation
District Plan	Has the road been identified in the District Plan for any specific use or as a future road corridor?	The Road is shown on District Plan Maps 9 and 10. It is not identified for any specific purpose or as a future road corridor.
Current Level of Use	Is the road used by members of the public for any reasons?	The Road is not used by members of the public for any reason.
	Does it provide the only or most convenient means of access to any existing lots?	The Road does not provide access to any other land than that owned by the Applicants.
	Will stopping the road adversely affect the viability of any commercial activity or operation?	No commercial activity is located on land adjacent to, or accessed from, the Road.
	Will any land become landlocked if the road is stopped?	No.
Future Use	Will the road be needed to service future residential, commercial, industrial or agricultural developments?	Access to any potential development would be gained from the already formed Fruitgrowers and Earnscleugh Roads.
Future Use	Will the road be needed in the future to connect existing roads?	The Road does offer any greater level of connectivity than already exists.
Non-traffic Uses	Does the road have current or potential value for amenity functions, e.g., walkway, cycleway, recreational access, access to conservation or heritage areas, park land?	The Road has no existing or future recreational or amenity potential functions. The area is serviced by a variety of cycling and walking tracks. The well-established Millennium Track links Clyde to Alexandra and provides recreational access to the Clutha River Mata-Au. Marked cycle paths also direct walkers and cyclists to the start of the Rail Trail at the Clyde Railhead. Once completed, the Cromwell Gorge Cycle Trail will enhance the existing connectivity. A myriad of informal tracks through reserves along the banks of the Clutha River Mata-Au provide additional recreational opportunities.
	Does the road have potential to be utilised by the Council for any other public work either now or potentially in the future?	The Road does not have the potential to be used for any other public work.
	Does the road have significant landscape amenity value?	The Road does not have any significant landscape amenity value.
Access to Waterbody	Does the road provide access to a river, stream, lake or other waterbody?	The Road does not provide access to any waterbody.
Access to Waterbody	If so, there is a need to consider Section 345 of the Local Government Act, which requires that after stopping the land be vested in Council as an esplanade reserve	N/A (refer above).
Infrastructure	Does the road currently contain any services or other infrastructure, such as electricity, telecommunications, irrigation or other private infrastructure?	Yes. The Earnscleugh Irrigation Company Limited has a waterpipe in the Road. Aurora Energy Limited have lines running across the road. The lines services houses owned by two of the Applicants.
Infrastructure	Can the existing services or infrastructure be protected by easements?	Yes. Easements will be created to protect the irrigation and power infrastructure.
Traffic Safety	Does the use of motor vehicles on the road constitute a danger or hazard?	There is no danger or hazard associated with using a motor vehicle on the Road.

As shown in the evaluation table, the Road is not identified or required for any other roading purpose. The proposal to stop the Road will have no effect on the existing roading network. It does not provide access to a waterbody or to any public or other land that cannot be otherwise accessed via Fruitgrowers or Earnscleugh Roads.

The Road does contain infrastructure belonging to the Earnscleugh Irrigation Company Limited and to Aurora Energy Limited (Aurora). Protection for this infrastructure is discussed next.

Easements

The Earnscleugh Irrigation Company Limited (the Company) have an irrigation main running the length of the Road. The irrigation main services the Earnscleugh district. When the main was constructed, the Company had its coordinates mapped and recorded by a surveyor.

If the application to stop the Road is successful the Company will require an easement (in gross) over the areas marked “A, “B”, and “C”. The Company have advised that they have a standard easement agreement which can be registered to protection the main. The easement will also provide the Company with ongoing right of access to manage and maintain the main.

Aurora have a power network running along Earnscleugh Road. All three applicants are connected to this network. The network and the connections to the applicant’s properties are shown in red below in figure 4.

Figure 4 – Extract of Aurora’s network shown in red

If the application to stop the Road is successful Aurora will require easements (in gross) over Lot 3 DP 352186 and the area marked “B”, and over the area marked “C”. This will protect the existing infrastructure and provide Aurora with right to access the land for the purpose of managing and maintain their network.

An indicative plan of the easement over Lot 3 DP 352186 and the area marked “B is outlined in blue below in figure 5. This easement will need to be registered against the Murray and Stewart’s record of title.

Figure 5 – Indicative plan of easement over Lot 3 DP 352186 and the area marked “B”

An indicative plan of the easement over the area marked “C” is outlined in blue below in figure 6. This easement will need to be registered against the Kiener’s record of title.

Figure 6 – Indicative plan of easement over the area marked “C”

Legislation and Policy

Council’s Roading Policy determines the appropriate statutory procedure for stopping a legal road or any part thereof. The policy for selecting the correct statutory process is as follows:

The Local Government Act 1974 road stopping procedure shall be adopted if one or more of the following circumstances shall apply:

a) Where the full width of road is proposed to be stopped and public access will be removed as a result of the road being stopped; or

b) The road stopping could injuriously affect or have a negative or adverse impact on any other property; or

c) The road stopping has, in the judgment of the Council, the potential to be controversial; or

d) If there is any doubt or uncertainty as to which procedure should be used to stop the road.

The Local Government Act process requires public notification of the proposal. This involves erecting signs at each end of the road to be stopped, sending letters to adjoining owners/occupiers and at least two public notices a week apart in the local newspaper. Members of the public have 40 days in which to object.

The Public Works Act 1981 road stopping procedure may be adopted when the following

circumstances apply:

e) Where the proposal is that a part of the road width be stopped and a width of road which provides public access will remain.

f) Where no other person, including the public generally, are considered by the Council in its judgment to be adversely affected by the proposed road stopping;

g) Where other reasonable access will be provided to replace the access previously provided by the stopped road (i.e. by the construction of a new road).

As the full width of the road is to be stopped and public access removed, it is proposed that Local Government Act 1974 procedure be adopted for this application.

An application to stop a road under the Local Government Act 1974 requires public consultation with the members of the public having a right to object to proposal.

Council’s Roading Policy states that:

If an objection is received then the applicant will be provided with the opportunity to consider the objection and decide if they wish to continue to meet the costs for the objection to be considered by the Council and the Environment Court.

If an objection is received and it is accepted by the Council then the process will be halted and the Council may not stop the road.

If the objection is not accepted by the Council then the road stopping proposal must be referred to the Environment Court for a decision. The applicant is responsible for meeting all costs associated with defending the Council’s decision in the Environment Court.

Financial

In accordance with Legislation and Policy, the applicants are required to pay all costs associated with the proposal to stop the Road. Road stopping costs include valuation, survey, legal and consultancy fees. In this instance, costs will also include those associated with:

· creating and erecting signs at each end of the road to be stopped;

· sending letters to adjoining owners/occupiers; and,

· publishing the two public notices in a local newspaper.

Community Board Recommendation

A report on this matter was presented to the Vincent Community Board (the Board) for consideration at their meeting of 09 June 2021.

On consideration the Board resolved (Resolution 21.5.6) as follows:

B. Recommends to Council to approve the proposal to stop unnamed unformed road off Earnscleugh Road subject to:

- Public notification and advertising in accordance with the Local Government Act 1974.

- No objections being received within the objection period.

- Easements (in gross) in favour of (and as approved by) Earnscleugh Irrigation Society being registered the areas marked “A”, “B”, and “C” in figure 5.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over Lot 3 DP 352186 and the area marked “B” as shown in figure 5.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over the area marked “C” as shown in figure 6.

- The Road being surveyed into three parcels (“A”, “B”, and “C”), and amalgamated in accordance with the plan shown in figure 3.

- Each applicant paying for their respective parcel of land at valuation.

- The applicants sharing all other costs associated with the stopping.

4. Options

Option 1 – (Recommended)

To approve the proposal to stop the unnamed unformed road off Earnscleugh Road, subject to:

- Public notification and advertising in accordance with the Local Government Act 1974.

- No objections being received within the objection period.

- Easements (in gross) in favour of (and as approved by) Earnscleugh Irrigation Society being registered the areas marked “A”, “B”, and “C” in figure 5.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over Lot 3 DP 352186 and the area marked “B” as shown in figure 5.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over the area marked “C” as shown in figure 6.

- The Road being surveyed into three parcels (“A”, “B”, and “C”), and amalgamated in accordance with the plan shown in figure 3.

- Each applicant paying for their respective parcel of land at valuation.

- The applicants sharing all other costs associated with the stopping.

Advantages:

· Public thoroughfare is maintained via the existing formed roading network.

· Provision has been made for the protection of the existing utility networks.

· Legal road will no longer dissect the applicant’s records of titles.

· All costs associated with the stopping will be paid by the applicants.

· The income received will be used to address other public roading issues.

Disadvantages:

· None.

Option 2

To not approve the proposal to stop the unnamed unformed road off Earnscleugh Road.

Advantages:

· None.

Disadvantages:

· Legal road will continue to dissect the applicant’s records of titles.

· Additional income will not be available to address other public roading issues.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic wellbeing of the community by generating income from the disposal of land that is held (but not required) for roading purposes which has limited other use.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	There are no negative financial implications associated with the recommended option. The applicants are required to pay market value for the land, as well as all other associated costs.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Council’s Road Stopping Policy applies to this application. Consideration of this policy has ensured that the appropriate statutory process, being to stop the road in accordance with the provisions of the Local Government Act 1974, has been chosen.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision to stop this short unnamed unformed road.
Risks Analysis	No risks to Council are associated with the recommended option.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered, with none of the criteria being met or exceeded. Public notices and advertising in accordance with the provisions of the Local Government Act 1974 will be posted. Notice of the completed road stopping will be published in the New Zealand Gazette.

6. Next Steps

The following steps have been/will be taken to implement the road stopping:

1. Community Board Approval June 2021

2. Council Approval June 2021

3. Public Notification Commences July 2021

4. Public Notification Period Ends August 2021

5. Valuation Late August 2021

6. Survey September/October 2021

7. Survey Plan Approved Late 2021

8. Gazette notice published Early 2022

Nil

Report author:	Reviewed and authorised by:

Linda Stronach	Julie Muir
Property Officer - Statutory	Executive Manager – Infrastructure Services
10/06/2021	22/06/2021

21.5.9 Proposed Road Stopping - Unnamed Road off McArthur Road

Doc ID: 535197

1. Purpose of Report

To consider a proposal to stop part of an unnamed unformed road off McArthur Road in accordance with the provisions of the Local Government Act 1974.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to approve the proposal to stop the western end of the unnamed unformed road off McArthur Road, (outlined in red, in figure 4), in subject to:

- Public notification and advertising in accordance with the Local Government Act 1974.

- No objections being received within the objection period.

- The right of way (new access to Lots 27 and 28) being formed over Lot 4 DP 498411.

- The Road being surveyed into two parcels (“A” and “B”) as shown in figure 3.

- Parcel “A” being amalgamated with new Lot 27 and parcel “B” being amalgamated with new Lot 28 as shown in figure 3.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Leaning Rock Services Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Rabbit Developments Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Pioneer Energy Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- The applicants paying for the land at valuation.

- The applicants paying all costs associated with the stopping.

C. Authorises the Chief Executive to do all that is necessary to give effect to the resolution.

2. Background

McArthur Road provides access to an assortment of farming and lifestyle blocks in Springvale. The first 2.6 kilometres of McArthur Road is sealed. The remaining approximately 3.4 kilometres is gravel.

At the 5.1 kilometre mark an unnamed unformed road adjoins the western side of McArthur Road. The unnamed unformed road (the Road) is highlighted in red below in figure 1. It is a no exit road being approximately one kilometre in length.

Figure 1 – The unnamed unformed legal road off McArthur Road, Springvale.

Lot 1 Deposited Plan (DP) 552897 is located at the western end of the Road. The owners of Lot 1 DP 552897 have obtained approval to subdivide the property into four new lots.

An extract of the subdivision plan showing New Lot 4 at the western end of the Road is shown below in figure 2.

Figure 2 – New Lot 4 (ex Lot 1 DP 552897 as shown in figure 1) and existing Lot 4 DP 498411.

The owners of Lot 4 DP 498411 (adjacent lot) have an agreement to purchase the New Lot 4. On settlement the two Lot 4s will be amalgamated then redeveloped as part of a greater 32 Lot subdivision.

An extract of the 32 Lot plan showing Lots 27 and 28 at the western end of the Road is shown below in figure 3. Access to Lots 27 and 28 (and several other lots) will be provided via a right of way that is to be formed over Lot 3 DP 498411 as a provision of the consent.

Figure 3 – Plan of new Lots 27 and 28 at the western ends of the Unformed Legal Road.

As access to Lots 27 and 28 will be gained via the new right of way, the consent holder has applied to stop a section of the western end of the Road. A plan of the section they propose to stop, which has an area of approximately 1.0370 hectares, is shown below in figure 4.

Figure 4 – Plan of the legal road which the consent holder proposes to stop (outlined in red).

If the stopping is approved the applicant proposes to have the road surveyed into two parcels of approximately 4175 and 6195 square metres each. The proposed parcels are marked “A” and “B” below in figure 5.

The applicants then propose to undertake a boundary adjustment between Lots 27 and 28 and to amalgamate one parcel of stopped road with each lot. This will result in two more regularly shaped parcels of land on completion of the stopping.

A plan of the proposed final boundaries, including the parcels of stopped road, is shown below in figure 5.

Figure 5 – Plan of stopped road parcels contained in regularised Lots 27 and 28 (following boundary adjustment)

3. Discussion

Evaluation of Application

An evaluation of the proposal to stop a portion of the Road is shown in the table below.

Item	Criteria to be considered	Evaluation
District Plan	Has the road been identified in the District Plan for any specific use or as a future road corridor?	The Road is shown on District Plan Map 56. No part of the Road identified for any specific purpose or as a future road corridor.
Current Level of Use	Is the road used by members of the public for any reasons?	The Road is not used by members of the public for any reason.
	Does it provide the only or most convenient means of access to any existing lots?	All existing lots adjacent to the Road have dual legal access from the unnamed unformed legal Road and either Vercoe Road or McArthur Road. McArthur Road is the most convenient means of access for most existing lots. Lot 2 476070 and 4 DP 498411 are more conveniently accessed from Vercoe Road. With the exception of Lot 2 DP 476070, which will be accessed from Vercoe Road, and Lot 4 DP 498411, which is being subdivided, all existing lots will retain dual legal access.
	Will stopping the road adversely affect the viability of any commercial activity or operation?	No commercial activity is located on land adjacent to, or accessed from, the Road.
	Will any land become landlocked if the road is stopped?	No.
Future Use	Will the road be needed to service future residential, commercial, industrial or agricultural developments?	On completion of the proposed stopping Lot 2 DP 476070, Lot 4 DP 498411 and New Lot 27 will no longer have legal access from the remaining length of the unformed unnamed road. Access to these lots will be gained via either Vercoe Road or via the right of way that is being formed over Lot 3 DP 498411 in conjunction with 32 Lot subdivision. All other adjacent lots will retain dual legal access from the remaining length of the unnamed unformed road or from McArthur Road which is an existing formed road.
Future Use	Will the road be needed in the future to connect existing roads?	The Road is a no exit road. It does offer any level of connectivity to any other legal road.
Non-traffic Uses	Does the road have current or potential value for amenity functions, e.g., walkway, cycleway, recreational access, access to conservation or heritage areas, park land?	The Road does not provide access to any recreational area, conservation land, or to a heritage area.
	Does the road have potential to be utilised by the Council for any other public work either now or potentially in the future?	The Road does not have the potential to be used for any public work.
	Does the road have significant landscape amenity value?	The Road does not have any significant landscape amenity value.
Access to Waterbody	Does the road provide access to a river, stream, lake or other waterbody?	The Road does not provide access to any type of waterbody.
Access to Waterbody	If so, there is a need to consider Section 345 of the Local Government Act, which requires that after stopping the land be vested in Council as an esplanade reserve	N/A (refer above).
Infrastructure	Does the road currently contain any services or other infrastructure, such as electricity, telecommunications, irrigation or other private infrastructure?	Yes. Aurora Energy Limited have advised that they have underground cables, a ground mounted electricity distribution transformer, and other ancillary equipment in the Road. Three companies have water infrastructure in the Road. They are Leaning Rock Services Limited, Rabbit Developments Limited, and Pioneer Energy Limited.
Infrastructure	Can the existing services or infrastructure be protected by easements?	Yes. Easements can be created to protect the power infrastructure.
Traffic Safety	Does the use of motor vehicles on the road constitute a danger or hazard?	There is no danger or hazard associated with using a motor vehicle on the Road.

Roading Network and Public Access

As shown in the evaluation table, the Road is not identified in the District Plan as being required for any specific use or other roading purpose. The proposal to stop the end of the Road will have no effect on the existing roading network or other parties right of access.

The portion of the Road that the applicants propose to stop does not provide access to a waterbody or to any other land that cannot otherwise be accessed via the preceding length of the Road.

The Road does contain infrastructure belonging to Aurora Energy Limited (Aurora). Protection for this infrastructure is discussed next.

Easements

Aurora Energy Limited (Aurora) have underground cables, a ground mounted electricity distribution transformer and other ancillary equipment in the western end of the Road. The infrastructure comes into the road via Lot 4 DP 498411. A plan of Aurora’s infrastructure is shown in red and blue below in figure 6.

Figure 6 – Aurora Infrastructure in the section of road which the applicant proposes to stop

If the application to stop the end of the Road is successful Aurora will require an easement (in gross) over the areas marked “A” and “B”. This will protect the existing infrastructure and provide Aurora with right to access the land for the purpose of managing their network.

An indicative plan of the easement (in gross) in favour of Aurora over Sections “A” and “B” is outlined in pink below in figure 7.

Figure 7 – Indicative plan of easement (in gross) in favour of Aurora

Leaning Rock Services Limited have a potable water supply running through the Road. This supply has been installed as part of the 32 Lot subdivision. It will service new Lots 27 and 28.

The potable supply pipe runs adjacent to the electrical infrastructure shown above in figure 7.

Rabbit Developments Limited and Pioneer Energy Limited both have irrigation infrastructure in the Road. The irrigation infrastructure services a variety of properties in the area. The irrigation infrastructure also runs adjacent to the electrical infrastructure shown in figure 7.

All three water companies have confirmed that their infrastructure can be protected by the registration of easements (in gross) if the stopping is approved.

Legislation and Policy

Council’s Roading Policy determines the appropriate statutory procedure for stopping a legal road or any part thereof. The policy for selecting the correct statutory process is as follows:

The Local Government Act 1974 road stopping procedure shall be adopted if one or more of the following circumstances shall apply:

a) Where the full width of road is proposed to be stopped and public access will be removed as a result of the road being stopped; or

b) The road stopping could injuriously affect or have a negative or adverse impact on any other property; or

c) The road stopping has, in the judgment of the Council, the potential to be controversial; or

d) If there is any doubt or uncertainty as to which procedure should be used to stop the road.

The Public Works Act 1981 road stopping procedure may be adopted when the following

circumstances apply:

e) Where the proposal is that a part of the road width be stopped and a width of road which provides public access will remain.

f) Where no other person, including the public generally, are considered by the Council in its judgment to be adversely affected by the proposed road stopping;

g) Where other reasonable access will be provided to replace the access previously provided by the stopped road (i.e. by the construction of a new road).

As the full width of the end of the road is to be stopped and public access removed, it is proposed that Local Government Act 1974 procedure be adopted for this application.

An application to stop a road under the Local Government Act 1974 requires public consultation with the members of the public having a right to object to proposal.

Council’s Roading Policy states that:

If an objection is received and it is accepted by the Council then the process will be halted and the Council may not stop the road.

Financial

· creating and erecting signs at each end of the road to be stopped;

· sending letters to adjoining owners/occupiers; and,

· publishing the two public notices in a local newspaper.

Community Board Recommendation

A report on this matter was presented to the Vincent Community Board (the Board) for consideration at their meeting of 09 June 2021.

On consideration the Board resolved (Resolution 21.5.5) as follows:

B. Recommends to Council to approve the proposal to stop the western end of the unnamed unformed road off McArthur Road, (outlined in red, in figure 4), in subject to:

- Public notification and advertising in accordance with the Local Government Act 1974.

- No objections being received within the objection period.

- The right of way (new access to Lots 27 and 28) being formed over Lot 4 DP 498411.

- The Road being surveyed into two parcels (“A” and “B”) as shown in figure 3.

- Parcel “A” being amalgamated with new Lot 27 and parcel “B” being amalgamated with new Lot 28 as shown in figure 3.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Leaning Rock Services Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Rabbit Developments Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Pioneer Energy Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- The applicants paying for the land at valuation.

- The applicants paying all costs associated with the stopping.

4. Options

Option 1 – (Recommended)

Agrees to approve the proposal to stop the end of the unnamed unformed road off McArthur Road subject to:

- Public notification and advertising in accordance with the Local Government Act 1974.

- No objections being received within the objection period.

- The right of way (new access to Lots 27 and 28) being formed over Lot 4 DP 498411.

- The Road being surveyed into two parcels (“A” and “B”) as shown in figure 3.

- Parcel “A” being amalgamated with new Lot 27 and parcel “B” being amalgamated with new Lot 28 as shown in figure 3.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Leaning Rock Services Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Rabbit Developments Limited being registered over the areas marked “A” and “B” as shown in figure 7.

- An easement (in gross) in favour of (and as approved by) Pioneer Energy Limited being registered over the areas marked “A” and “B” as shown in figure 7.

The applicants paying for the land at valuation.

- The applicants paying all costs associated with the stopping.

Advantages:

· The newly formed right of way over Lot 4 DP 498411 will provide access to Lots 27 and 28 (and to other lots in the 32 Lot subdivision).

· All costs associated with the stopping will be paid by the applicants.

· The income received will be used to address other public roading issues.

Disadvantages:

· None.

Option 2

Does not agree to the proposal to stop the unnamed unformed road off McArthur Road.

Advantages:

· None.

Disadvantages:

· The applicant’s occupations of the unformed legal road will not be legalised.

· Additional income will not be available to address other public roading issues.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic wellbeing of the community by generating income from the disposal of land that is held, (but not required) for roading purposes, and where it has limited other use.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	There are no negative financial implications associated with the recommended option. The applicants are required to pay market value for the land, and all other associated costs.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Council’s Road Stopping Policy applies to this application. Consideration of this policy has ensured that the appropriate statutory process, being to stop the road in accordance with the provisions of the Local Government Act 1974, has been chosen.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision to stop the western end of the unnamed unformed road.
Risks Analysis	No risks to Council are associated with the recommended option.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered, with none of the criteria being met or exceeded. Public notices and advertising in accordance with the provisions of the Local Government Act 1974 will be posted. Notice of the completed road stopping will be published in the New Zealand Gazette.

6. Next Steps

The following steps have been / will be taken to implement the road stopping:

1. Community Board Approval June 2021

2. Council Approval June 2021

3. Public Notification Commences July 2021

4. Public Notification Period Ends August 2021

5. Valuation Late August 2021

6. Survey September/October 2021

7. Survey Plan Approved Late 2021

8. Gazette notice published Early 2022

Nil

Report author:	Reviewed and authorised by:

Linda Stronach	Julie Muir
Property Officer - Statutory	Executive Manager – Infrastructure Services
10/06/2021	21/06/2021

21.5.10 Proposed Road Stopping and Legalisation - Mutton Town Road

Doc ID: 535204

1. Purpose of Report

To consider a proposal to legalise the existing formation of the northern end of Mutton Town Road and to stop a portion of legal road adjacent to the proposed legalisation.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to:

1. Legalise the portion of Mutton Town Road that is formed over Section 3 Block LV Town of Clyde by taking the land shown as Section 2 in figure 3, being approximately 3008 square metres, and vesting it as legal road, subject to:

- Approval of the Minister of Health.

- Council paying the Southern District Health Board’s legal fees.

- Ngāi Tahu approval.

- Waka Kotahi New Zealand Transport Agency agreeing to remove the reference to gazette notice 440764 and/or approval to the vesting.

2. Stop approximately 4970 square metres of Mutton Town Road, shown as Section 1 in figure 3, subject to:

- The legalisation of the portion of Mutton Town Road that is formed over Section 3 Block LV Town of Clyde.

- Council and the applicants sharing the survey costs, LINZ fees, and the costs of the LINZ Accredited Supplier.

- Each party to the stopping paying their own legal costs.

- The applicants paying for the land at valuation ($300,000 plus GST (if any)).

- The road to be stopped being amalgamated with Record of Title OT17D/237

C. Authorises the Chief Executive to do all that is necessary to give effect to the resolution.

2. Background

Mutton Town Road (the Road) adjoins the western side of the Clyde-Alexandra Road, about 5.5 kilometres north of the Alexandra township. The Road is a sealed road being approximately 1.3 kilometres long. At its northern end the Road intersects Hospital Street then joins Sunderland Street. An overview of the Road is shown below in figure 1.

Figure 1 – Overview of Mutton Town Road.

At its northern end, much of the Road has been formed over Section 3 Block LV (55) Town of Clyde (Section 3). Section 3 is owned by the Southern District Health Board. When legal road is formed over private property it is called an encroachment. Most encroachments are historic.

The Public Works Act 1981 provides for the legalisation of encroachments. To legalise an encroachment the land under the formed road can be taken (purchased) and vested as legal road. The encroachment can be seen below in figure 2.

Figure 2 – The northern end of Mutton Town Road as formed over Section 3 Block LV Town of Clyde.

In 2019 the owners of Lot 2 Deposited Plan (DP) 18990 (the applicants) applied to stop the legal road adjacent to their property. In conjunction with the stopping, the applicants proposed that Council legalise the encroachment. A plan of the applicant’s proposal is shown below in figure 3.

Figure 3 – Applicant’s plan of the proposed stopping and legalisation.

Legalisation

As the proposed stopping is subject to the legalisation of the encroachment, the Southern District Health Board (SDHB) were notified of the proposal. The SDHB were given a copy of the plan shown in figure 3 and were asked if they would agree to Council purchasing Section 2 in accordance with the Public Works Act 1981.

The SDHB advised that disposal of any Health Board land requires a resolution of their board, and the approval of the Minister of Health. To understand the full implication of the legalisation the SDHB asked Council to advise how much compensation would be paid for the land.

Valuers were then engaged, and the value of Section 2 determined at $27,500 plus GST (if any). On consideration, the SDHB accepted the valuation and resolved to dispose of the land.

The SDHB further advised that they will obtain Ministerial approval to dispose of the land on receipt of the associated Sale and Purchase Agreement.

Record of Title OT4C/1309

Section 3 is part of record of title OT4C/1309, which is Crown land. Crown land is subject to the Ngāi Tahu Claims Settlement Act 1998. This means Ngāi Tahu have the right of first refusal to the land which is required for the purpose of legalising the formed road. For the SDHB to dispose of the land they will also require a waiver from Ngāi Tahu.

In addition to Ngāi Tahu’s approval, the SDHB will also require the consent of LINZ to remove a memorial from the record of title that relates to water race inspection and maintenance rights, and from Waka Kotahi New Zealand Transport Agency (Waka Kotahi), to remove a reference to gazette notice 440764.

The reference to gazette notice 440764 relates to when State Highway 8 passed across the front of the SDHB land prior to being realigned during construction of the Clyde Dam. While the reference is no longer applicable, Waka Kotahi must either consent to the removal of the reference, or consent to the land being taken being declared road.

Applicant’s Confirmation

The applicants have since been advised that the SDHB have agreed to the legalisation of the formed road. They were also advised that Section 1, the road to be stopped, had been valued at $300,000 plus GST (if any). As a considerable period of time has passed since the application was lodged, the applicants were also asked to confirm that they wanted to proceed with the stopping.

The applicants have now accepted the valuation and have confirmed they would like to proceed with the stopping.

3. Discussion

Legislation and Policy

Council’s Roading Policy determines the appropriate statutory procedure for stopping a legal road or any part thereof. The policy for selecting the correct statutory process is outlined in section 8.5 of Council’s Roading Policy. The options are as follow:

The Local Government Act 1974 road stopping procedure shall be adopted if one or more of the following circumstances shall apply:

a) Where the full width of road is proposed to be stopped and public access will be removed as a result of the road being stopped; or

b) The road stopping could injuriously affect or have a negative or adverse impact on any other property; or

c) The road stopping has, in the judgment of the Council, the potential to be controversial; or

d) If there is any doubt or uncertainty as to which procedure should be used to stop the road.

The Public Works Act 1981 road stopping procedure may be adopted when the following

circumstances apply:

e) Where the proposal is that a part of the road width be stopped and a width of road which provides public access will remain.

f) Where no other person, including the public generally, are considered by the Council in its judgment to be adversely affected by the proposed road stopping;

g) Where other reasonable access will be provided to replace the access previously provided by the stopped road (i.e. by the construction of a new road).

It is proposed that Public Works Act 1981 procedure be adopted for this application for the following reasons:

· The proposal is to stop part of the road width only.

· Public access will not be adversely affected.

· The existing formation (encroachment) of Mutton Town Road will be legalised in conjunction with the stopping.

The Public Works Act 1981 further provides for legal road to be stopped, sold, and amalgamated with an adjacent title. In this instance, the stopped road would be amalgamated with the applicants Record of Title OT17D/237.

Financial

Council’s Roading Policy determines that the applicant is responsible for all costs and expenses associated with the road stopping. It also states that Council may, in its discretion, determine that there is an element of public benefit to the proposed road stopping, and may agree to share those costs.

As the application to stop part of the Road is subject to the legalisation of the formed road it is proposed that the survey, LINZ fees, and gazettal costs be shared between Council and the applicants.

It proposed that the applicants and Council meet their own legal costs, with Council also meeting the SDHB’s legal costs. On that basis, Council’s shared of the legal fees is estimated to be approximately $3,800.

A summary of the estimated costs (exclusive of GST) are shown in the table below.

Table 1 – Summary of Costs

Community Board Recommendation

A report on this matter was presented to the Vincent Community Board (the Board) for consideration at their meeting of 09 June 2021.

On consideration the Board resolved (Resolution 21.5.7) as follows:

B. Recommends to Council to agree to the proposal to:

- Approval of the Minister of Health.

- Council paying the Southern District Health Board’s legal fees.

- Ngāi Tahu approval.

- Waka Kotahi New Zealand Transport Agency agreeing to remove the reference to gazette notice 440764 and/or approval to the vesting.

2. Stop approximately 4970 square metres of Mutton Town Road, shown as Section 1 in figure 3, subject to:

- The legalisation of the portion of Mutton Town Road that is formed over Section 3 Block LV Town of Clyde.

- Council and the applicants sharing the survey costs, LINZ fees, and the costs of the LINZ Accredited Supplier.

- Each party to the stopping paying their own legal costs.

- The applicant’s paying for the land at valuation ($300,000 plus GST (if any)).

- The road to be stopped being amalgamated with Record of Title OT17D/237.

4. Options

Option 1 – (Recommended)

To agree to:

- Approval of the Minister of Health.

- Council paying the Southern District Health Board’s legal fees.

- Ngāi Tahu approval.

- Waka Kotahi New Zealand Transport Agency agreeing to remove the reference to gazette notice 440764 and/or approval to the vesting.

2. Stop approximately 4970 square metres of Mutton Town Road, shown as Section 1 in figure 3, subject to:

- The legalisation of the portion of Mutton Town Road that is formed over Section 3 Block LV Town of Clyde.

- Council and the applicants sharing the survey costs, LINZ fees, and the costs of the LINZ Accredited Supplier.

- Each party to the stopping paying their own legal costs.

- The applicants paying for the land at valuation ($300,000 plus GST (if any)).

- The road to be stopped being amalgamated with Record of Title OT17D/237.

Advantages:

· The existing formation (encroachment) of Mutton Town Road will be legalised.

· Income received from the associated stopping will fund the legalisation, with the balance then being available to address other road encroachment or access issues.

· Once the encroachment is legalised, the road which the applicants propose to stop will not be required for roading purposes.

· Legalising the encroachment and stopping the road as one project will reduce costs.

· Recognises the provisions of Council’s Roading Policy.

· The proposal is consistent with the Public Works Act 1981.

Disadvantages:

· None, as the stopping will not have any effect on the existing formation of the road, and a roading corridor approximately 23 metres wide will be retained.

Option 2

To not agree to legalise the encroachment of Mutton Town Road or to stop the road adjacent to Record of Title OT17D/237.

Advantages:

· None, as the stopping will not have any effect on the existing formation of the road, and a roading corridor approximately 23 metres wide will be retained.

Disadvantages:

· The existing formation (encroachment) of Mutton Town Road will not be legalised (or funded by the associated stopping).

· Additional income (the balance) will not be available to address other road encroachment or access issues.

· Does not recognise the provisions of Council’s Roading Policy.

· Does not recognise that the proposal is consistent with the Public Works Act 1981.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic wellbeing of the community by generating income from the disposal of land that is held (but not required) for roading purposes which has limited other use.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	There are no negative financial implications related to the recommended option. The applicants are required to pay market value for the land, as well as all other associated costs. The income received from disposing of the road adjacent to Lot 2 DP 18990 will fund the legalisation of the portion of Mutton Town Road that is formed over Section 3 Block LV (55) Town of Clyde. The balance of funds will then be available to address other encroachment or access issues.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Council’s Road Stopping Policy applies to this application. Consideration of this policy has ensured that the appropriate statutory process, being to stop the road in accordance with the provisions of the Public Works Act 1981.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision to stop this short unnamed unformed road.
Risks Analysis	No risks to Council are associated with the recommended option.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered, with none of the criteria being met or exceeded. Notice of the completed road stopping will be published in the New Zealand Gazette.

6. Next Steps

The following steps have been / will be taken to implement the road stopping:

1. Community Board Approval June 2021

2. Council Approval June 2021

3. Survey and LINZ Accredited Supplier Engaged September/October 2021

4. Survey Plan Approved Late 2021

5. Gazette notice published Early 2022

Nil

Report author:	Reviewed and authorised by:

Linda Stronach	Julie Muir
Property Officer - Statutory	Executive Manager – Infrastructure Services
10/06/2021	21/06/2021

21.5.11 Plan Change 17 - Operative District Plan Mapping to GIS

Doc ID: 535987

1. Purpose of Report

To consider a plan change to enable correction of anomalies in District Plan mapping and enable conversion to electronic format.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Recommends that Plan Change 17 be notified in accordance with Clause 5 of the First Schedule to the Resource Management Act 1991

2. Background

On 24 March 2021 Council approved the District Plan review programme. The re-housing of District Plan maps into electronic format to enable development of an online interactive format (ePlan) was identified as task one of that programme.

Conversion of District Plan mapping from CAD drawn page by page plans to GIS mapping is necessary to enable development of an ePlan in compliance with the National Planning Standard requirements.

Clause 20A of the Resource Management Act 1991(RMA) provides that “A local authority may amend, without using the process in this schedule, an operative policy statement or plan to correct any minor errors.” While some very minor errors can be corrected in accordance with clause 20A, a plan change is considered necessary to correct some anomalies and errors that have been identified where the necessary correction is considered to be outside the scope of Clause 20A. In these cases a plan change is considered appropriate. The areas where a plan change is considered necessary to reflect accurately where infrastructure or items are located, and for consistency, are:

· The mapping of some High Voltage Transmission Lines

· Mapping of Water Surface and Margin Resource Areas

· The mapping of some heritage items

The intention of this plan change is to enable the conversion of the operative District Plan Maps into a GIS format that is compatible with the future ePlan. This plan change does not intend to change the zoning of any property or District Plan provisions, nor does it seek to provide for or hinder any development opportunities that do not already exist. It seeks only to clarify what is clearly intended by the operative District Plan and provide a level of accuracy.

The new District Plan GIS layer is available for viewing The new GIS layer, including the matters subject to Plan Change 17, can be viewed through the following link District Plan GIS Layer or on the Central Otago District Council website. and a draft section 32 evaluation prepared for the notification of the Plan Change is attached to this report.

3. Discussion

Council has commenced the ePlan project. The text of the operative District Plan has been imported into the electronic format and is in the process of being tested by planning staff. The conversion to GIS mapping is an essential part of the transition to the interactive electronic format (ePlan) required by the National Planning Standards.

The Council is not being asked to consider the merits of the plan change as these will be fully considered and assessed through the statutory process under the provisions of the RMA. Approving the processing of the plan change is not making a judgement on the merits of the request but is providing agreement to process plan.

4. Options

Option 1 – (Recommended)

Approve notification of Plan Change 17 in accordance with Clause 5 of the First Schedule to the Resource Management Act 1991

Advantages:

· Will enable the conversion of the operative District Plan from a paper-based plan to an online interactive format (ePlan) as required by National Planning Standards

· Ease of use for users of the plan

Disadvantages:

· No obvious disadvantages

Option 2

Not approve notification of Plan Change 17 in accordance with Clause 5 of the First Schedule to the Resource Management Act 1991

Advantages:

· No obvious advantages

Disadvantages:

· Transitioning to online interactive format (ePlan) for the operative District Plan and compliance with National Planning Standards will be delayed.

5. Compliance

Local Government Act 2002 Purpose Provisions	The Council has functions under the RMA and by carrying out these functions. The plan change process under the Resource Management Act is a democratic public process and requires an assessment of the social, economic, environmental, and cultural well-being has been included in the section 32 analysis.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	No. The costs associated with the processing of the plan change will be borne internally through staff time in Planning and Environment and Information Services. Any appeals to the Environment Court would result in additional costs in terms of legal advice.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes. The following Council Policies were considered: · Central Otago District Plan The plan change seeks to reflect the provisions of the operative Central Otago District Plan.
Considerations as to sustainability, the environment and climate change impacts	The plan change process does not impact on these matters and the merits of the plan change are considered against the RMA framework.
Risks Analysis	There are no risks associated with this request.
Significance, Consultation and Engagement (internal and external)	The plan change will be publicly notified in accordance with the First Schedule to the RMA, which provides a right of submission and further submission.

6. Next Steps

The request for plan change will proceed through the Resource Management Act process and be publicly notified as soon as practicable following the Council’s acceptance of the plan change.

The Hearings Panel/appointed commissioners is/are delegated to hear submissions to requests for plan changes in Council’s Register of Delegations.

Appendix 1 - Draft s32.pdf ⇩

Appendix 2 - Plan Change 17 Appendix 1.pdf ⇩

Appendix 3 - Plan Change 17 Appendix 2.pdf ⇩

Report author:	Reviewed and authorised by:

Ann Rodgers	Louise van der Voort
Principal Policy Planner	Executive Manager - Planning and Environment
17/06/2021	25/06/2021

21.5.12 Cromwell Menz Shed - New Lease

Doc ID: 532028

1. Purpose of Report

To consider granting permission to locate the Cromwell Menz Shed on a portion of the Cromwell Transfer Station and grant a lease to the Cromwell Menz Shed.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to lease the proposed area to the Cromwell Menz Shed

C. Agrees to a lease over 1000m² (more or less) of land (shown in Figure 1) located on the Cromwell Transfer Station/Closed Landfill site, being part of Lot 3 DP526140.

D. Authorise the Chief Executive to do all that is necessary to give effect to this resolution.

2. Background

In 2018, the Menz Shed began looking for a permanent site. A proposed site on Litany Street was later ascertained not to be available under the Neplusultra Street Reserve Management Plan. Discussions were then held between the Central Otago Vintage Car Club and the Menz Shed to determine if they could share the club’s lease area as it did not appear fully utilised. However, the Central Otago Vintage Car Club preferred to occupy their current site solely.

There has been ongoing discussion in relation to the Menz Shed being able to occupy a portion of the Cromwell Transfer Station. However, as these discussions were not progressing quickly enough for the Menz Shed the Central Otago Equestrian Club Inc. offered an area at the Cromwell Racecourse. The Menz Shed accepted and have been located there since December 2019. However, under the Cromwell Racecourse Reserve Management Plan the Menz Shed activity does not fit the criteria for occupying an area of this reserve. Therefore, Council has been working with the Menz Shed to locate other land suitable for their group, and has identified a site at the Cromwell Transfer Station/Closed Landfill.

On 4 May 2021 a report was presented to the Cromwell Community Board to consider recommending to Council to grant permission to locate the Cromwell Menz Shed on a portion of the Cromwell Transfer Station and grant a lease to the Cromwell Menz Shed. The report is attached as Appendix 1. The resolution was:

21.3.4 Committee Resolution

B. Agrees to lease the proposed area to the Cromwell Menz Shed.

C. Recommends to Council to approve a lease for Cromwell Menz Shed over 1000m² (more or less) of land (shown in Figure 1) located on the Cromwell Transfer Station/Closed Landfill site, being part of Lot 3 DP 526140.

3. Discussion

The Transfer Station/Closed Landfill is accessed off Bannockbun Road and is located in the northern section of Lot 3 DP 526140 (shown on Figure 1 below) occupying an area of approximately 3.8 ha within the entire site area of approximately 52 ha.

The site is bound to the north by a new developed commercial/industrial lot, to the east by mixed agricultural and residential, to the south by a recreational area (biking tracks and a paintball shooting range) and to the west by commercial/industrial areas.

The proposed area is indicated on Figure 2 below. The area is 1000m² (more or less) with a proposed entrance from Bannockburn Road. The entrance would be created by opening a section of the existing fence off a dirt road allowing the Menz Shed to have direct access into their fenced compound as outlined below.

Figure 1 – Lot 3 DP 526140 Figure 2 – Proposed 900m² Menz Shed lease area

Council’s Infrastructure Department supports the lease of the land to Menz Shed at the Cromwell Transfer Station/Closed Landfill.

A targeted soil assessment was undertaken by ENGEO Ltd on the proposed Cromwell Menz Shed site to ensure there was no contaminated material or buried waste beyond the landfill cap. All four 1.5m deed test pits excavated in the proposed development area showed no sign of waste material, staining or indicators of contamination. Soil samples were collected from each test pits and analysed. All soil samples reported concentrations of heavy metals below the NES (National Environment Standards) recreational and NES commercial/industrial outdoor worker criteria.

As ground gas has not been investigated for the site there is a potential for landfill gas to be present in the subsurface. It is recommended that foundation solutions include ground gas protection measures should a permanent structure be constructed.

A site management plan is required to outline procedures to identify and mitigate exposure to unidentified contamination, if encountered during the redevelopment works.

It is proposed that the Menz Shed meet the following costs associated with the development of their site:

· Site Management Plan

· Potable water connection to dog pound existing pipework

· Connection to permanent water network when established

· All costs associated with power and wastewater

· All costs in relation to ground being fit for purpose due to the nature of the site

It is proposed that Council meet the following costs:

· Fencing 3 sides of the proposed area as per quote attached Appendix 2

There are many synergies and opportunities to be gained from the Menz Shed being located within the boundary of the Cromwell Transfer Station, such as recycling of unwanted materials brought to the transfer station.

Proposed lease conditions could include

Lease Parties: Central Otago District Council and the Cromwell Menz Shed

Conditions Rent: $1 per annum

Term: 5 years two rights of renewal

Rent review: On renewal

Permitted use: The operations of a Menz Shed

Outgoings: Lessee pays 100% of outgoings

Termination: If either party wish to terminate the lease six month’s notice in writing may be given by either party

If the Menz Shed ceased to exist, then any improvements on the land would revert to Council

The Community Leasing and Licencing Policy is not applicable as there is no subscription income received by the Menz Shed.

4. Options

Option 1 – (Recommended)

Recommend to Council to approve a lease for Cromwell Menz Shed over 1000m² (more or less) of land (shown in Figure 1) located on the Cromwell Transfer Station/Closed Landfill site, being part of Lot 3 DP536140.

Advantages:

· Realised the opportunity to support a local community group, assisting the Council in achieving its desired community outcomes

· The synergies and opportunities of the Menz Shed and Cromwell Transfer Station can be fully explored with sites being nearby each other

Disadvantages:

· None

Option 2

Decline to recommend to Council to approve a lease for Cromwell Menz Shed over 1000m²

(more or less) of land (shown in Figure 1) located on the Cromwell Transfer Station/Closed Landfill site, being part of Lot 3 DP 526140.

Advantages:

· None

Disadvantages:

· Does not realise the opportunity to support a local community group, assisting the Council in achieving its desired community outcomes

· The synergies and opportunities of the Menz Shed and Cromwell Transfer Station cannot be fully explored by sites being nearby each other.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social wellbeing of the community, in the present and for the future by facilitating clubs and groups such as the Menz Shed who add to the social fabric of communities. This decision promotes the environmental wellbeing of the community, in the present and in the future by enabling the Menz Shed to be located adjacent to the Cromwell Transfer Station which will encourage diversion from landfills and use of recycled materials in the Menz Sheds various projects.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	Yes, the Initial cost of fencing to Council $7710 plus GST No income had been anticipated from the proposed area, so no other financial implication.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes it is consistent with the Economic Development strategy.
Considerations as to sustainability, the environment and climate change impacts	This decision promotes opportunities for increased sustainability by developing working relationships between the Menz Shed and Cromwell Transfer Station.
Risks Analysis	Any construction would be subject to the normal appropriate health and safety practices under the construction contract.
Significance, Consultation and Engagement (internal and external)	This decision does not require consultation.

6. Next Steps

Advise Menz Shed of Council resolution

Draw up appropriate lease if approved by Council

A targeted soil assessment was undertaken by ENGEO Ltd on the proposed Cromwell Menz Shed site to ensure there was no contaminated material or buried waste beyond the landfill cap. All four 1.5m deep test pits excavated in the proposed development area showed no sign of waste material, staining or indicators of contamination. Soil samples were collected from each test pits and analysed. All soil samples reported concentrations of heavy metals below the NES (National Environmental Standards) recreational and NES commercial/industrial outdoor worker criteria.

Appendix 1 - Previous report to CCB ⇩

Appendix 2 - Fencing Quote ⇩

Report author:	Reviewed and authorised by:

Debbie Shaw	Louise van der Voort
Property and Facilities Officer (Cromwell)	Executive Manager - Planning and Environment
15/06/2021	16/06/2021

Council meeting

30 June 2021

21.3.4 Request for new Lease: Cromwell Menz Shed

Doc ID: 529373

1. Purpose of Report

To consider granting permission to locate the Cromwell Menz Shed on a portion of the Cromwell Transfer Station and grant a lease to the Cromwell Menz Shed.

Recommendations

That the Cromwell Community Board

A. Receives the report and accepts the level of significance.

B. Agrees to lease the proposed area to the Cromwell Menz Shed.

D. Authorise the Chief Executive to do all that is necessary to give effect to this resolution.

2. Background

The Cromwell Menz Shed (Menz Shed) began looking for a permanent site in 2018. A proposed site on Litany Street was later ascertained not be available under the Neplusultra Street Reserve Management Plan. Discussions were then held between the Central Otago Vintage Car Club and the Menz Shed to determine if they could share the club’s lease area as it did not appear fully utilised. However, the Central Otago Vintage Car Club preferred to occupy their current site solely.

There have been ongoing discussions in relation to the Menz Shed being able to occupy a portion of the Cromwell Transfer Station. However, as these discussions were not progressing quickly enough for the Menz Shed the Central Otago Equestrian Club Inc. offered an area at the Cromwell Racecourse. The Menz Shed accepted and have been located there since December 2019. However, under the Cromwell Racecourse Reserve Management Plan the Menz Shed activity does not fit the criteria for occupying an area of this reserve.

3. Discussion

Infrastructure has agreed to the lease of the land to the Menz Shed at the Cromwell Transfer Station/Closed Landfill.

The Transfer Station/Closed Landfill is accessed off Bannockburn Road and is located in the northern section of Lot 3 DP 526140 (shown on Figure 1 below) occupying an area of approximately 3.9 ha within the entire site area of approximately 52 ha.

The site is bound to the north by a newly developed commercial/industrial lot, to the east by mixed agricultural and residential, to the south by a recreational area (biking tracks and a paintball shooting range) and to the west by commercial/industrial areas.

The proposed area is indicated on Figure 2 below. The area is 1000 m²(more or less) with a proposed entrance from Bannockburn Road. The entrance would be created by opening a section of the existing fence off a dirt road allowing the Menz Shed to have direct access into their fenced compound as outlined below:

Figure 1 – Lot 3 DP 526140 Figure 2 – Proposed 900m² Menz Shed lease area

A site management plan is required to outline procedures to identify and mitigate exposure to unidentified contamination, if encountered during the redevelopment works.

It is proposed that the Menz Shed meet the following costs associated with the development of their site:

· Site Management Plan

· Potable water connection to dog pound existing pipework

· Connection to permanent water network when established

· All costs associated with power and wastewater

· Installation of gate on southern boundary

· All costs in relation to ground being fit for purpose due to the nature of the site

It is proposed that Council meet the following costs:

· Fencing 3 sides of the proposed area

o Quote being undertaken on 9 April 2021

Proposed lease conditions could include:

Lease	Parties: Central Otago District Council and the Cromwell Menz Shed
Conditions	Rent: $1 per annum
	Term: 5 years two rights of renewal
	Rent review: on renewal
	Permitted use: The operations of a Menz Shed
	Outgoings: Lessee pays 100% of outgoings
	Termination: If either party wish to terminate the lease six months’ notice in writing may be given by either party.
	If the Menz Shed ceased to exist, then any improvements on the land would revert to Council

4. Options

Option 1 – (Recommended)

Advantages:

· Realises the opportunity to support a local community group, assisting the Council in achieving its desired community outcomes

· The synergies and opportunities of the Menz Shed and Cromwell Transfer Station can be fully explored with sites being nearby each other

Disadvantages:

· None

Option 2

Decline to recommend to Council to approve a lease for Cromwell Menz Shed over 1000m² (more or less) of land (shown in Figure 1) located on the Cromwell Transfer Station/Closed Landfill site, being part of Lot 3 DP 526140.

Advantages:

· None

Disadvantages

· Does not realise the opportunity to support a local community group, assisting the Council in achieving its desired community outcomes

· The synergies and opportunities of the Menz Shed and Cromwell Transfer Station cannot be fully explored by sites being nearby each other

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social wellbeing of the community, in the present and for the future by facilitating clubs and groups such as the Menz Shed who add to the social fabric of communities. This decision also promotes the environmental wellbeing of the community, in the present and the future by enabling the Menz Shed to be located adjacent to the Cromwell Transfer Station which will encourage diversion from landfills and use of recycled materials in the Menz Sheds various projects.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	No income had been anticipated from the proposed area, so no financial implication.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, consistent with the Economic Development strategy.
Considerations as to sustainability, the environment and climate change impacts	This decision promotes opportunities for increased sustainability by developing working relationships between the Menz Shed and Cromwell Transfer Station.
Risks Analysis	Any construction would be subject to the normal appropriate health and safety practices under the construction contract.
Significance, Consultation and Engagement (internal and external)	This decision does not require consultation.

6. Next Steps

Advise the Cromwell Menz Shed of the resolution

Report to Council for approval of Board recommendation

Draw up appropriate lease if approved by Council

7. Attachments

Nil

Report author:	Reviewed and authorised by:

Debbie Shaw	Louise van der Voort
Property and Facilities Officer (Cromwell)	Executive Manager - Planning and Environment
8/04/2021	9/04/2021

The following steps have/will be undertaken in association with having the easement registered:

21.5.13 Request for Minister of Conservation's Consent to Easement over Recreation Reserve [PRO 62-2000-00]

Doc ID: 530052

1. Purpose of Report

To consider granting consent (under delegated authority), on behalf of the Minister of Conservation, to Council granting an easement over Lots 7 and 8 Deposited Plan 492123, being part of the Alexandra Town Belt (recreation reserve).

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to grant consent (under delegated authority), on behalf of the Minister of Conservation, to Council granting an easement over Lots 7 and 8 Deposited Plan 429123 (recreation reserve) in favour of Lot 1 Deposited Plan 27556 being the lease area occupied by Spark Trading New Zealand Limited.

2. Background

At their meeting of 09 June 2021, the Vincent Community Board (the Board) considered an application for an easement over Lots 7 and 8 Deposited Plan (DP) 492123 being part of the Alexandra Town Belt (recreation reserve).

A copy of the report to the Board dated 09 June 2021 is attached as Appendix 1.

On consideration the Board resolved (Resolution 21.5.4) as follows:

B. Agrees to grant easement containing the right to convey power and telecommunications, and right of way, over Lots 7 and 8 DP 492123 (recreation reserve) in favour of Lot 1 DP 27556 (Spark New Zealand Trading Limited lease parcel), for $1, subject to:

- The easement being aligned with the lease over Lot 1 DP 27556.

- All costs associated with preparing and registering the easement being met by Spark Trading New Zealand Limited.

- The Minister of Conservation’s consent.

As noted in Resolution 21.5.4, the granting of the easement over Lots 7 and 8 DP 492123 is subject to the consent of the Minister of Conservation. The role of the Minister of Conservation in this matter is to:

· be satisfied that the granting of the easement conforms with the provisions of the Reserves Act 1977.

· ensure that due process under the Act has been followed.

· consider submissions resulting from public notification (when required if applicable).

3. Discussion

Due Process – Easements over Reserve Land

Section 48(1) of the Reserves Act 1977 (the Act) authorises the granting rights of way and other easements over a reserve or any part thereof to facilitate access to an area leased or licenced under the Act, or to provide for electrical installations or works. Therefore, the granting of an easement for the purpose of legalising the lessee’s access and services is consistent with provisions of the Act.

While public notice can be required when easements or other rights are granted over reserves, section 48(3) of the Act states that public notification is not required where the reserve is vested in an administering body and is not likely to be materially altered or permanently damaged; and the rights of the public in respect of the reserve are not likely to be permanently affected.

Lots 7 and 8 DP 429123 were transferred to Council in 2002. They were then vested as recreation reserve. Lot 1 DP 27556 was included in the transfer as a lease parcel with Council becoming the lessor. For business continuity, it would have been anticipated that ongoing access and protection for the services would be provided by Council.

As the proposal will legalise the existing access and services but not require additional works, the granting of the easement will not materially alter the reserve or affect the rights of the public. Therefore, public consultation is not required in this instance.

Minister of Conservation’s Consent

Under the Reserves Act 1977, the Minister of Conservation’s consent is required by the administering body when granting an easement over recreation reserve. The purpose of the Minister’s consent is to ensure due process under the Act has been followed by the administering body.

Pursuant to section 10 of the Act, and in accordance with the ‘Instrument of Delegation to Territorial Authorities’ dated 12 June 2013, the Minister of Conservation has delegated the granting of that consent to the Council.

4. Options

Option 1 – (Recommended)

To grant consent (under delegated authority), on behalf of the Minister of Conservation, to Council granting an easement over Lots 7 and 8 Deposited Plan 429123 (recreation reserve) in favour of Lot 1 Deposited Plan 27556, being the lease area occupied by Spark Trading New Zealand Limited.

Advantages:

· The granting of the easement will not materially alter the reserve or compromise the public’s ongoing use of the land.

· Recognises that the purpose of the easement is consistent with the Reserves Act 1977.

· Recognises the provisions of the Instrument of Delegation dated 12 June 2013.

· Recognises that due process has been followed (retrospectively).

Disadvantages:

· None.

Option 2

To not grant consent (under delegated authority), on behalf of the Minister of Conservation, to Council granting an easement over Lots 7 and 8 Deposited Plan 429123 (recreation reserve) in favour of Lot 1 Deposited Plan 27556 Lot 1 Deposited Plan 27556, being the lease area occupied by Spark Trading New Zealand Limited.

Advantages:

· None.

Disadvantages:

· Does not recognise that the purpose of the easement is consistent with the Reserves Act 1977.

· Does not recognise the provisions of the Instrument of Delegation dated 12 June 2013.

· Does not recognise that due process has been followed (retrospectively).

5. Compliance

Local Government Act 2002 Purpose Provisions

The Local Government Act 2002 does not apply to this decision.

The Minister of Conservation’s consent is delegated to Council in accordance with the Reserves Act 1977, and the “Instrument of Delegation to Territorial Authority’s” dated 12 June 2013.

Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?

There are no financial implications related to the recommendation.

Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.

The recommendation is consistent with the Reserves Act 1977 and with the “Instrument of Delegation to Territorial Authority’s” dated 12 June 2013.

Considerations as to sustainability, the environment and climate change impacts

No sustainability, environmental or climate change impacts are related to the decision as the legalising the existing will have no material effect on the land.

Risks Analysis

There are no risks to Council associated with the recommended option.

Significance, Consultation and Engagement (internal and external)

The Significance and Engagement Policy has been considered, with none of the criteria being met or exceeded.

Pursuant to section 48(3) of the Reserves Act 1977, public advertising of the intention to grant of an easement over a reserve or any part thereof is not required where the reserve is not likely to be materially altered or permanently damaged; and the rights of the public in respect of the reserve are not likely to be permanently affected.

6. Next Steps

1. Community Board Approval 09 June 2021

2. Consent of the Minister of Conservation 30 June 2021

3. Applicant advised of outcome Early July 2021

Appendix 1 - Copy of Report Dated 09 June 2021 ⇩

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Property Officer - Statutory	Executive Manager - Planning and Environment
10/06/2021	6/01/2021

Council meeting

30 June 2021

21.5.4 Application for easement to provide access to lease parcel occupied by Spark New Zealand Trading Limited.

Doc ID: 529793

1. Purpose of Report

To consider granting an easement over Lots 7 and 8 Deposited Plan 429123 (recreation reserve), in favour of Lot 1 Deposited Plan 27556, being a lease parcel occupied by Spark New Zealand Trading Limited.

Recommendations

That the Vincent Community Board

A. Receives the report and accepts the level of significance.

B. Agrees to grant an easement containing the right to convey power and telecommunications, and right of way, over Lots 7 and 8 DP 492123 (recreation reserve) in favour of Lot 1 DP 27556 (Spark New Zealand Trading Limited lease parcel), for $1, subject to:

- The easement being aligned with the lease over Lot 1 DP 27556.

- All costs associated with preparing and registering the easement being met by Spark Trading New Zealand Limited.

- The Minister of Conservation’s consent.

C. Authorises the Chief Executive to do all that is necessary to give effect to the resolution.

2. Background

In 2006 Council agreed to an exchange of land to enhance the layout of the Alexandra Town Belt around Gilligans Gully. The land was then subdivided to enable the exchange to proceed. The land disposed of in the exchange was declassified and is now privately owned.

The land received in the exchange is described as Lots 7 and 8 Deposited Plan (DP) 429123 (Lot 7 and Lot 8). Lot 7 and Lot 8 were classified as recreation reserve and are now held subject to the Reserves Act 1977. Lots 7 and 8 are contained in Record of Title 514253.

In 2002, prior to the exchange, Telecom Mobile Limited (Telecom) leased 105 square metres of the land now contained in Lot 8. The lease area is described as Lot 1 DP 27556 (Lot 1). The lease is registered on Record of Title 514253. Lots 7 and 8, and Lot 1 are shown below in figure 1.

Telecom have constructed a communications station (the station) on the site. The station services the Alexandra basin. Council became the lessor of Lot 1 on transfer and settlement of the exchange.

Renewal of the lease commenced in 2020. During the renewal process it was noted that the lease does not provide the lessee with any right of access over Lot 7 or Lot 8. There is also no legal provision for the conveyance of the services which are connected the station to the utility networks in Gilligans Gully. Effectively, Lot 1 DP 27556 is a landlocked lease parcel.

Figure 1 – Lots 7 & 8 DP 429123 (recreation reserve) and Lot 1 DP 27556 (lease area). Proposed easement shown in red.

To legalise their access and the existing services, Telecom have now applied for an easement over Lots 7 and 8 DP 429123. It is proposed that the easement be granted to provide Telecom with right of way, and the right to convey electricity and telecommunications, over Lots 7 and 8, to Lot 1.

The proposed easement would be aligned with the lease. It would not operate as a separate ongoing right. For example, should the lease be transferred or cancelled, the easement would also transfer or cancel.

Telecom are now known as Spark New Zealand Trading Limited. On renewal, they have asked for the lessee’s detail to be updated accordingly. They have also asked for the proposed easement to be granted in the name of Spark New Zealand Trading Limited as lessee.

3. Discussion

Legal

Section 48 of the Reserves Act 1977 (the Act) states that in the case of reserves vested in an administering body, the administering body may, with the consent of the Minister (of Conservation) and on such conditions as the Minister thinks fit, grant easements over a reserve or any part thereof.

The proposed granting of a right of way is consistent with section 48(1)(b) of the Act which provides for access to ‘any area included in an agreement, lease, or licence granted under the powers conferred by this [the] Act’.

Section 48(1)(d) of the Act authorises the granting of an easement to provide for ‘an electrical installation or work as defined in section 2 of the Electricity Act 1992’.

Section 2 of the Electricity Act 1992 defines an electrical installation as “all fittings beyond the point of supply that form part of a system that is used to convey electricity to a point of consumption”.

The power cables connecting the station to the network in Gilligans Gully convey power to the point of consumption which is inside the boundary of Lot 1. This means the proposal to grant the right to convey power is consistent with the Act.

Section 48A(1)(a) and (b) of the Act authorises the use of a reserve for a communications station. It also authorises the construction masts, and other structures, and works associated with transmission, emission, or reception of communications. This means the proposal to grant the right to convey telecommunications is also consistent with the Act.

Any easement or other right granted under section 48(1) is granted subject to section 48(2) of the Act which states:

Before granting a right of way or an easement under subsection (1) over any part of a reserve vested in it, the administering body shall give public notice in accordance with section 119 specifying the right of way or other easement intended to be granted, and shall give full consideration, in accordance with section 120, to all objections and submissions received in respect of the proposal under that section.

Section 48(2) of the Act further requires the proposal to grant the easement to be publicly notified unless:

(a) The reserve is vested in the administering body and is not likely to be materially altered or permanently damaged; and

(b) The rights of the public in respect of the reserve are not likely to be permanently affected.

The purpose of the Reserves Act 1977 is to provide for and to protect reserves for the benefit of the community. Therefore, the issuing of rights over a reserve is generally accepted as being a last resort in the absence of other practical alternatives, particularly where there is likely to be a material effect on the reserve.

The granting of the proposed easement will not materially alter the land nor compromise its use as no new or additional works are required. The proposed easement will legalise rights that should have been created prior to the land exchange.

Council Policy

Lots 7 and 8 DP 429123 and Lot 1 DP 27556 are identified on District Plan Map 2 of Council’s Operative District Plan. It is situated in the Rural Resource Area.

Rule 13.7.11 provides for the construction of Telecommunication and Radiocommunication Structures in Rural Resource Areas. The telecommunications station on Lot 1 DP 27556 is permitted under rule 13.7.11 of the Operational District Plan.

Financial

Historically, easements of this nature are exchanged for a nominal rate of $1, with all costs associated with preparing and registering the easement being payable by the grantee.

As Spark New Zealand Trading Limited are seeking to legalise the existing access and services it is also proposed the nominal fee also be applied in this instance.

4. Options

Option 1 – (Recommended)

To grant an easement containing the right to convey power and telecommunications, and right of way, over Lots 7 and 8 DP 492123 (recreation reserve) in favour of Lot 1 DP 27556 (Spark New Zealand Trading Limited lease parcel), for $1, subject to:

- The easement being aligned with the lease over Lot 1 DP 27556.

- All costs associated with preparing and registering the easement being met by Spark Trading New Zealand Limited.

- The Minister of Conservation’s consent.

Advantages:

· The lessee’s access will be legalised and the lease parcel will no longer be landlocked.

· The existing services, which are required by the lessee for the purposes of operating their business activity on Lot 1 DP 27556, will be legalised, and protected.

· The lessee will be able to repair and maintain the accessway and/or services as required.

· Represents good business practice which will maintain the relationship between the lessor and lessee.

· The granting of the easement is consistent with section 48(1) of the Reserves Act 1977.

· The business activity on Lot DP 27556 is consistent with section 48(A) of the Reserves Act 1977.

Disadvantages:

· None.

Option 2

To not grant an easement over Lots 7 and 8 DP 492123 (recreation reserve) in favour of Lot 1 DP 27556 (lease parcel).

Advantages:

· None.

Disadvantages:

· The lessee’s access will not be legalised and the lease parcel will remain landlocked.

· The lessee’s services will be not be legalised or protected.

· Would not represent good business practice and could negatively impact the relationship between the lessor and lessee.

· Does not recognise the provisions of the Reserves Act 1977.

5. Compliance

Local Government Act 2002 Purpose Provisions	While this decision does not relate to any Local Government Act purpose or provision, it does promote economic wellbeing by enabling the lessee to continue to access and operate their business, and to provide services, from the Council owned lease site.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	There are no financial implications for Council relating to this decision as all costs associated with the works and the creation of the easement will be met by the lessee, Spark New Zealand Trading Limited.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The construction of a telecommunications station on recreation reserve is consistent with section 48(A) of the Reserves Act 1977 and is a permitted activity under rule 13.7.11 of Council’s Operative District Plan.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision as the associated works will have no material effect on the land.
Risks Analysis	There are no risks to Council associated with the recommended option.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered, with none of the criteria being met or exceeded. As the easement will apply retrospectively to works that were undertaken prior to the land being vested a reserve, consultation in accordance section 48(2) of the Reserves Act 1977 is not required in this instance.

6. Next Steps

The following steps will be undertaken in association with having the easement registered:

1. Community Board Approval 09 June 2021

2. Consent of the Minister of Conservation 30 June 2021

3. Applicant advised application approved July 2021

7. Attachments

Nil

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Property Officer - Statutory	Executive Manager - Planning and Environment
6/04/2021	26/05/2021

A. Receives the report and accepts the level of significance.

21.5.14 Request for Minister of Conservation's consent to grant easements over, and to reclassify part of, the Clyde Recreation Reserve [PRO: 63-4066 and PRO: 63-4068]

Doc ID: 540489

1. Purpose of Report

To consider granting the consent of the Minister of Conservation (under delegated authority) to the granting of easements over and to the reclassification of part of, the Clyde Recreation Reserve.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to grant consent (under delegated authority), on behalf of the Minister of Conservation, to Council:

1. Reclassifying part of Section 4 Block XLIX Town of Clyde (site 1) and part of Section 34 Bock IV Town of Clyde (site 2), being part of the Clyde Recreation Reserve, as Local Purpose (Pumping Station) Reserve.

2. Granting easements containing the right to convey water, wastewater, and power over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde (as required).

3. Grant an easement, (in gross) in favour of Central Otago District Council, containing the right to convey wastewater, over Sections 26, 27, 28, and 29 Block VII Town of Clyde

2. Background

Resolution 21.3.2

At its meeting of 12 April 2021, the Vincent Community Board considered a report proposing the granting of easement over, and the reclassification of two sites on the Clyde Recreation Reserve to Local Purpose (Pumping Station) Reserve.

The purpose of the proposed reclassifications is to provide for the construction of two ‘inter-stage’ pumping stations. The two ‘inter-stage’ pumping stations are integral to the construction of the Clyde Wastewater Reticulation Project.

The purpose of the proposed easements is to:

· Facilitate the connection of each pumping station to the water, wastewater, and electricity networks.

· Connect new (proposed) public toilets Section 34 Bock IV Town of Clyde to the new pumping station on site 1, and.

· Enable 95 Sunderland Street to be connected to the new wastewater main in O’Reilly Avenue.

A copy of the report to the Board, dated 12 April 2021, is attached as Appendix 1.

On consideration, the Board resolved (Resolution 21.3.2) as follows:

B. Agrees to:

1. Reclassify part of Section 4 Block XLIX Town of Clyde (site 1) and part of Section 34 Bock IV Town of Clyde (site 2), being part of the Clyde Recreation Reserve, as Local Purpose (Pumping Station) Reserve.

2. Grant easements containing the right to convey water, wastewater, and power over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde (as required).

3. Grant an easement, (in gross) in favour of Central Otago District Council, containing the right to convey wastewater, over Sections 26, 27, 28, and 29 Block VII Town of Clyde.

Subject to:

· The Chief Executive approving the final pumping station design and survey boundaries.

· Public consultation of the proposal to reclassify sites 1 and 2 in accordance with the Reserves Act 1977.

· The consent of the Minister of Conservation.

C. Authorises the Chief Executive Officer to do all that is necessary to give effect to the resolution.

Consultation

In accordance with Resolution 21.3.2 and pursuant to the provisions of the Reserves Act 1977, Council publicly advertised their Notice of Intention in the Central Otago News edition of 15 April 2021.

The public notice advised that a Statement of Proposal was available in hard copy at the Alexandra Council Office or online via Council’s website.

The notice invited the public to make submissions to the proposal to reclassify two sites on the Clyde Recreation Reserve to Local Purpose (Pumping Station) Reserve.

A copy of the Notice of Intention [as advertised] is attached as Appendix 2.

A copy of the Statement of Proposal [with submission form] is attached as Appendix 3.

As noted in the Statement of Proposal, submissions closed at 5pm on 17 May 2021 with one electronic submission in support of the proposal being received.

A copy of the submission as extracted from the submission portal is attached as attached as Appendix 4.

The details of that submission and an overview of the proposal were then collated into a report for Council’s Hearing Panel.

Consideration of Submissions

In accordance with the “Register of Delegations to Community Boards, Portfolios, Committees and the Chief Executive Officer” dated 14 April 2020, Council has delegated the hearing of submissions to proposals to change reserve classifications to the Hearings Panel.

Accordingly, at its meeting of 08 June 2021, the Hearings Panel considered the report detailing the proposal and the submission.

A copy of the report the Hearings Panel, dated 08 June 2021, is attached as Appendix 5.

Following deliberation, the Hearings Panel resolved (Motion 21.6.1) as follows:

21.6.1 Proposal to Reclassify Two Areas of Recreation Reserve, Section 4 Block XLIX Town of Clyde (2846127500)

A report to consider the submissions to the proposal to reclassify two sites on the Clyde Recreation Reserve as Local Purpose (Pumping Station) Reserves had been circulated.

Also circulated was the report of the Property Officer in relation to the proposal.

RESOLVED that the report of the Property Officer be approved.

Nixon / Jeffery

3. Discussion

Due Process – Reclassification of Reserve Land

Section 24 of the Reserves Act 1977 provides the mechanism for changing the classification or purpose of a reserve. It also provides for the revocation of reserve status.

The proposal to reclassify the two areas of recreation reserve to ‘Local Purpose (Pumping Station) Reserve’ is consistent with section 24(1)(b) of the Reserves Act which states that where:

the local authority within whose district a reserve is situated or the administering body of any reserve notifies the Commissioner in writing that, pursuant to a resolution of the local authority or of the administering body, as the case may be, it considers for any reason, to be stated in the resolution, that the classification or purpose of the whole or part of the reserve should be changed to another classification or purpose, or that the reservation of the whole or part of the land as a reserve should be revoked,—

then, subject to the succeeding provisions of this section, the Minister [of Conservation] may, in his or her discretion, by notice in the Gazette, change the classification or purpose of the whole or part of the reserve, which thereafter shall be held and administered for that changed classification or purpose, or revoke the reservation of the whole or part of the land as a reserve.

The succeeding provisions which are applicable to the proposal to reclassify part of the recreation reserve are found in sections 24(2)(b) – (h). These include:

· the requirement to publicly notify the proposal to change the classification and to specify the reason or reasons for the proposal.

· the requirement to invite every person claiming to be affected by the proposed reclassification to give notice in writing of his or her objections to the proposed change.

· having the Minister of Conservation consider the proposed change of classification and all objections received during the submission period.

For the purpose of confirming due process, the following steps have been undertaken in preparation of the change of reclassification are outlined below:

Step Date

1. Resolution of the Vincent Community Board 12 April 2021

2. Notice of Intention and Statement of Proposal Advertised 15 April 2021

3. Submission Period Closed 17 May 2021

4. Submission heard (by Hearings Panel under Delegation) 08 June 2021

Due Process – Rights of Way and other Easements over Reserve Land

Section 48 of the Reserves Act 1977 authorises the granting of rights of way and other easements over a reserve.

In the case of reserves vested in an administering body, the administering body may, with the consent of the Minister, grant rights of way and other easements over any part of the reserve for—

Should the Minister consent to the proposal to reclassify sites 1 and 2, an ‘inter-stage’ pumping station will be constructed on each site as part of the greater Clyde Wastewater Reticulation Project.

To connect each pumping station to the water, wastewater, and electricity networks, easements (in gross, in favour of Council) will be required over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde, being recreation reserve.

To connect 95 Sunderland Street to the new wastewater main in O’Reilly Avenue an additional easement (also in gross, in favour of Council) will be required over Sections 26, 27, 28, and 29 Block VII Town of Clyde, also being recreation reserve.

The granting of the proposed easements is consistent with section 48 of the Reserves Act as they are required to facilitate access to and the operation of the pumping station which has a public purpose.

While public notice can be required when easements or other rights are granted over a reserve, section 48(3) states that public notification is not required when:

• the reserve is vested in an administering body, and;

• is not likely to be materially altered, or permanently damaged, and;

• the rights of the public in respect of the reserve are not likely to be permanently affected.

As the services will all be located underground, they will not materially alter the reserve or affect the rights of the public. Accordingly, public consultation is not required in this instance.

Minister of Conservation

When an administering body proposes to reclassify a reserve (or any part thereof) in accordance with section 24 of the Reserves Act 1977, they must obtain the consent of the Minister of Conservation.

The Minister’s must also consent to the granting an easement or other rights over recreation reserve under section 48 of the Reserves Act.

The role of the Minister is to ensure that the provisions of the Reserves Act are applied appropriately. Those provisions include the Minister of Conservation:

• being satisfied that the reclassification or easement conforms with the provisions of the Reserves Act,

• ensuring that due process under the Reserves Act has been followed,

• considering submissions resulting from public notification (when required).

Section 10 of the Reserves Act provides for delegation of the Minister’s consent in certain circumstances.

In the “Instrument of Delegation to Territorial Authority’s” dated 12 June 2013 the Minister delegated the following rights to Council:

• the right to consider all objections received to a proposed change of classification or purpose to Council.

• the right to consent or refuse consent to the administering body granting rights of way and other easements over any part of a vested reserve for any of the purposes specified in section 48(1).

Summary

In summarising the discussion points above, due process under the Reserves Act 1977 has been confirmed as being followed.

Accordingly, the Minister of Conservation’s consent may now be granted to the proposal outlined in Resolution 21.3.2, being to:

2. Grant easements containing the right to convey water, wastewater, and power over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde (as required).

3. Grant an easement, (in gross) in favour of Central Otago District Council, containing the right to convey wastewater, over Sections 26, 27, 28, and 29 Block VII Town of Clyde.

4. Options

Option 1 – (Recommended)

To grant consent (under delegated authority), on behalf of the Minister of Conservation, to Council:

2. Granting easements containing the right to convey water, wastewater, and power over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde (as required).

3. Grant an easement, (in gross) in favour of Central Otago District Council, containing the right to convey wastewater, over Sections 26, 27, 28, and 29 Block VII Town of Clyde.

Advantages:

· Recognises that the proposal to reclassify sites 1 and 2 of the reserve conforms with the provisions of the Reserves Act 1977.

· Recognises that the proposal to grant easements (in gross, as required) conforms with the provisions of the Reserves Act 1977.

· Recognises that due process has been followed.

· ‘Inter-stage’ pumping stations will be able to be constructed on sites 1 and 2.

· Services connecting each ‘inter-stage’ pumping station to utility networks will be able to be installed.

Disadvantages:

· None.

Option 2

To not grant consent on behalf of the Minister of Conservation to the proposal outlined in Option 1.

Advantages:

· None.

Disadvantages:

· Does not recognise that the proposal to reclassify sites 1 and 2 of the reserve conforms with the provisions of the Reserves Act 1977.

· Does not recognise that the proposal to grant easements (in gross, as required) conforms with the provisions of Reserves Act 1977.

· Does not recognise that due process has been followed.

· ‘Inter-stage’ pumping stations will not be able to be constructed on sites 1 and 2.

· Services connecting each ‘inter-stage’ pumping station to utility networks will not be able to be installed.

5. Compliance

Local Government Act 2002 Purpose Provisions	The Local Government Act 2002 does not apply to this decision. The Minister of Conservation’s consent is delegated to Council in accordance with the Reserves Act 1977, and the “Instrument of Delegation to Territorial Authority’s” dated 12 June 2013.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	Council will be required to pay the costs associated with the reclassification of the land and the surveying and registering of the easements. The costs (approximately $7,500) will form a very minor component of the greater budget associated with the installation of the Clyde Wastewater Reticulation Project.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The recommended option is consistent with the Reserves Act 1977.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision to reclassify sites 1 and 2, or to the granting of the proposed easements.
Risks Analysis	There are no risks to Council associated with the recommended option.
Significance, Consultation and Engagement (internal and external)	The proposal to reclassify part of the Clyde Recreation Reserve to Local Purpose (Pumping Station) Reserve has already been publicly advertised and consulted upon in accordance with the provisions of the Reserves Act 1977. Pursuant to section 48(3) of the Reserves Act 1977, public advertising of the intention to grant the required easements is not required in this instance.

6. Next Steps

Construction of the ‘inter-stage’ pumping stations: 2021/2022

Survey of the land and registration of required easements: Early 2022

Gazettal and completion of proposed reclassification: Early 2022

To consider the submissions to the proposal to reclassify two sites on the Clyde Recreation Reserve as Local Purpose (Pumping Station) Reserves.

Appendix 1 - Copy of report to the Board dated 12 April 2021 ⇩

Appendix 2 - Notice of Intention (Public Notice) ⇩

Appendix 3 - Statement of Proposal ⇩

Appendix 4 - Copy of Electronic Submission ⇩

Appendix 5 - Copy of report to Hearings Panel dated 08 June 2021 ⇩

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Property Officer - Statutory	Executive Manager - Planning and Environment
14/06/2021	16/06/2021

Council meeting

30 June 2021

21.3.2 Proposal to Reclassify Parts of Reserves and to Grant Easements (PRO: 63-4019-00 and PRO: 63-4068-00)

Doc ID: 527745

1. Purpose of Report

To consider reclassifying, and granting easements over, Sections 4 Block XLIX, 34 Bock IV, and Part Sections 26, 27, 28, and 29 Block VII, Town of Clyde, being part of the Clyde Recreation Reserve, as Local Purpose (Pumping Station) Reserve, to facilitate the construction of the Clyde Wastewater Reticulation Network.

Recommendations

That the Vincent Community Board

A. Receives the report and accepts the level of significance.

B. Agrees to:

2. Grant easements containing the right to convey water, wastewater, and power over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde (as required).

3. Grant an easement, (in gross) in favour of Central Otago District Council, containing the right to convey wastewater, over Sections 26, 27, 28, and 29 Block VII Town of Clyde.

Subject to:

· The Chief Executive approving the final pumping station design and survey boundaries.

· Public consultation of the proposal to reclassify sites 1 and 2 in accordance with the Reserves Act 1977.

· The consent of the Minister of Conservation.

C. Authorises the Chief Executive Officer to do all that is necessary to give effect to the resolution.

2. Background

The Clyde Wastewater Reticulation Project

In July 2019, the Vincent Community Board (the Board) considered a report proposing to reclassify part of the Clyde Recreation Reserve. The proposed reclassification was to provide for the construction of a wastewater pumping station at the southern end of the Clyde township.

A copy of the report to the Board dated 02 July 2019 is attached as Appendix 1.

On consideration, the Board resolved (Resolution 19.4.11) as follows:

A. RESOLVED that the report be received and the level of significance accepted.

B. APPROVED the construction of the Clyde Main Wastewater Pumping Station on site option ‘F’, an unused area of land within the Dunstan Golf Club lease adjacent to an area of recreation reserve, being part of Section 1 Block LVI Town of Clyde.

C. AGREED to the area of recreation reserve in Recommendation B being reclassified Local Purpose (Pumping Station) Reserve.

D. APPROVE the granting of an easement over the land in Recommendation B for access, and for the conveyance of services, over Lot 1 DP 12265, and Closed Road Block LV Town of Clyde

E. AGREE that the final boundaries and easement route be determined by the CEO.

In accordance with Resolution 19.4.11 the surveying of site ‘F’ and the easement areas has been completed. Final steps associated with the reclassification are underway with construction of the main wastewater pumping station expected to commence mid-2021.

As noted in the report dated 02 July 2019 the construction of the ‘main’ pumping station at the southern end of the Clyde township was integral to the Clyde Wastewater Reticulation Project.

Other significant infrastructural requirements of the project include two ‘inter-stage’ pumping stations inside the township. Inter-stage pumping stations components include an underground valve chamber with wet well and storage tank(s). Hatches provide access to this infrastructure. These components have very little visual impact on the land. An example of this componentry is shown below in figure 1.

Figure 1 – Example of valve chamber and wet well with storage tank (underground componentry)

Each pumping station requires a control cabinet and odour dome. These are constructed above ground on concrete pads. These components are relatively small and unobtrusive. Visual impact can be further minimised with plantings and landscaping.

An example of a completed pumping station, very similar to those proposed, is shown below in figure 2.

Figure 2 – Example of completed pumping station with landscaping

As the pumping stations will be gravity fed, they must be constructed on sites lower than the areas they service. All wastewater captured will be pumped on to the main pumping station at the southern end of Clyde. It will then be pumped to the Wastewater Treatment Plant in Alexandra.

Site 1

The first pumping station will capture wastewater from properties in and around the Clyde Heritage Precinct. The proposed site for this pumping station (site 1) is on Section 4 Block XLIX Town of Clyde (Section 4). Section 4 is the land between the Clyde Heritage Precinct and the Clutha River Mata-Au. It is recreation reserve.

Easements will be required to connect the pumping station to the utility networks in Miners Lane and Sunderland Street. The proposed easements will contain the right to convey water, wastewater, and power.

Long term plans for Section 4 are to develop the land into a River Park. Development plans include the construction of a playground, car parking, and a footpath with viewing platforms. The footpath will link the River Park to the Clyde Heritage Precinct above.

To enhance the usability of the River Park, a public toilet is to be built adjacent to the proposed pumping station. Another easement will be required to connect the public toilet to the wider network via the pumping station on site 1.

A plan of the proposed infrastructure and easements on Section 4 is shown below in figure 3.

Figure 3 – Example of Clyde Heritage Precinct Pumping Station, Public Toilets, and Easements on Section 4

Site 2

The second pumping station needs to capture wastewater from properties around and above Sunderland Street. The site chosen for this pumping station (site 2) is on Section 34 Bock IV Town of Clyde (Section 34). Section 34 is a located on the corner of Pyke and Whitby Streets. This land is occupied by the Clyde Camping Ground.

A third easement containing the right to convey water, wastewater, and power, will connect the pumping station on Section 34 to the utility networks in Pyke and Whitby Streets. A plan of the proposed pumping station and the associated easement is shown below in figure 4.

Figure 4 – Sunderland Street Area Minor Pumping Station and Easement on Section 34

Sites 1 and 2 meet the gravitational fall requirements of the pumping stations. They also provide enough space to house the underground tanks that will hold the wastewater before it is pumped onto the main pumping station.

A preliminary layout plan of the pumping station on site 1 is attached as Appendix 2.

A preliminary layout plan of the pumping station on site 2 is attached as Appendix 3.

Additional Easement

The properties at 95 and 97 Sunderland Street slope away from Sunderland Street. This means they will not be able to drain into the new sewer main in Sunderland Street. Instead, these properties will be connected to the main in O’Reilly Avenue. As 95 Sunderland does not have a frontage on O’Reilly Avenue an additional easement is proposed.

The additional easement will allow the Central Otago District Council (Council) to convey wastewater over Part Sections 26, 27, 28, and 29 Block VII Town of Clyde (Part Sections 26 – 29). This will enable 95 Sunderland Street to be connected to the new sewer network. Part Sections 26 – 29 are also occupied by the Clyde Camping Ground. The additional easement is shown below in figure 5.

Figure 5 – Easement (to provide for extension of main) over Part Sections 26 – 29

Land Status

Section 4, and 34, and Part Sections 26 – 29 form part of the Clyde Recreation Reserve. The land is held subject to the Reserves Act 1977.

Section 4 was reserved as a site for recreation pursuant to the Land Act 1924 in 1936. In 2012 it was classified as recreation reserve and vested in Council in pursuant to the Reserves Act 1977. Section 4 is not subject to any lease or other right to occupy.

Section 34 was declared a reserve for recreation purposes, subject to the Reserves and Domains Act 1953, in 1958. In 2009 it was classified as recreation reserve and vested in Council pursuant to the Reserves Act 1977. Section 34 is held by Council as part of fee simple Record of Title OT7C/1075. It forms part of the Clyde Camping Ground lease area.

Part Sections 26 – 29 were gazetted as reserve in 1879. In 2009 they were also classified as recreation reserve and vested in Council pursuant to the Reserves Act 1977. Part Sections 26 – 29 are held by Council in fee simple Record of Title OT14A/650. Record of Title 14A/650 also forms part of the Clyde Camping Ground lease area.

3. Discussion

Easements over Recreation Reserve

Section 48 of the Reserves Act 1977 (the Act) provides for the granting of easements over reserves. Section 48(1) states that in the case of reserves vested in an administering body, the administering body may, with the consent of the Minister of Conservation and on such conditions as the Minister thinks fit, grant easements over any part of a reserve.

The proposed easements as shown in figures 3, 4, and 5, are consistent with sections 48(1)(a) – (f) of the Reserves Act which include:

(a) any public purpose; or

(d) an electrical installation or work, as defined in section 2 of the Electricity Act 1992; or

(f) providing or facilitating access or the supply of water to or the drainage of any other land not forming part of the reserve or for any other purpose connected with any such land.

Any easement granted under section 48(1) is granted subject section 48(2) which states:

However, section 48(3) of the Act states that subsection 48(2) shall not apply if:

a) the reserve is vested in the administering body and is not likely to be materially altered or permanently damaged; and

b) the rights of the public in respect of the reserve are not likely to be permanently affected.

Many public reserves contain underground infrastructure. This is because underground infrastructure has no material effect on the land and does not compromise the public’s use of the reserve. Accordingly, public consultation is not required in this instance.

Public Toilets on Recreation Reserve

Section 53(1)(h)(i) of the Reserves Act 1977 allows an administering body to construct facilities or amenities on a recreation reserve. Facilities and amenities are described as being necessary to, or for the enjoyment of, the public using the reserve. This means the construction of a public toilet on Section 4 as shown in figure 3 is consistent with the Act.

Pumping Stations on Recreation Reserve

The construction of pumping stations on recreation reserve is not consistent with section 53 or any other section of the Reserves Act 1977. To enable the pumping stations to be constructed on Sections 4, and 34, each site will need to be reclassified as ‘Local Purpose (Pumping Station) Reserves’.

Reclassification of Recreation Reserve

Section 24 of the Reserves Act 1977 provides the mechanism for changing the classification or purpose of a reserve. It also provides for the revocation of reserve status.

The proposal to reclassify part of Section 4, and 34, as ‘Local Purpose (Pumping Station) Reserve’ is consistent with section 24(1)(b) of the Reserves Act which states:

then, subject to the succeeding provisions of this section, the Minister [of Conservation] may, in his or her discretion, by notice in the Gazette, change the classification or purpose of the whole or part of the reserve, which thereafter shall be held and administered for that changed classification or purpose, or revoke the reservation of the whole or part of the land as a reserve.

The succeeding provisions which are applicable to a proposal to reclassify part of a recreation reserve are found in sections 24(2)(a) – (h). These include:

· the administering body being required to publicly notify their intention to change the classification of a reserve or any part thereof and to specify the reason or reasons for the proposal.

· the requirement to invite every person claiming to be affected by the proposed reclassification to give notice (make a submission) in writing of his or her objections to the proposed change.

· having the Minister of Conservation consider the proposed change of classification and all objections received during the submission period.

Public Notification

Section 119 of the Reserves Act 1977 outlines the process for public notification. In particular section 119(1)(b) requires the administering body’s proposal to reclassify part of a recreation reserve to be advertised once in a newspaper circulating in the area in which the reserve is situated, and in any other newspaper that the administering body sees fit.

In this instance public notice will be placed in the Central Otago News, in the Council’s ‘Noticeboard’ section.

Submissions

Sections 24(2)(c) – (h) of the Reserves Act 1977 in particular relate to the making, receiving and consideration of submissions.

In accordance with section 24(2)(c) of the Act every person claiming to be affected by the proposed change of classification has the right to object. Objections must be received within one month of the date of the first public notice.

Sections 24(e) – (f) gives the Minister of Conservation the power to receive submissions and make any inquiries on the proposal as he or she thinks fit. The proposal and the submissions must then be considered in terms of the Reserves Act 1977 with anyone not making a submission deemed to have agreed with the proposal.

By the ‘Instrument of Delegation for Territorial Authorities’ dated 12 June 2013, the Minister of Conservation’s responsibilities under section 24 are delegated to Council. In accordance with that delegation and Council’s delegation register, Council’s Hearings Panel will consider the proposal and any submissions received.

The Hearings Panel will then make a recommendation to Council as the Minister of Conservation.

Minister of Conservation

In addition to the responsibilities outlined above, the Minister of Conservation must also:

· be satisfied that the reclassification conforms with the provisions of the Reserves Act 1977.

· ensure that due process has been followed.

If the Minister of Conservation agrees that proposal conforms with the provisions of the Reserves Act and can verify that due process has been followed, the reclassification can proceed.

Effect on the Land/Lease

The majority of the infrastructure will be located underground. While initial construction of each pumping station will require excavation of the land, once remediated there will be little to indicate the systems existence. In the long term this means the reserve is not likely to be materially altered. It also means the rights of the public in respect of the reserve are not likely to be permanently affected.

Section 34 is contained in the Clyde Camping Ground lease area. Council Staff met with the lessee to discuss the proposal to construct a pumping station on part of the lease area. The lessee has confirmed that constructing a pumping station on Section 34 (site 2) was preferable as it would have little impact on the ongoing operation of his business.

Part Sections 26 – 29 are also contained in the Clyde Camping Ground lease area. As the easement to connect 95 Sunderland to the main in O’Reilly Avenue relates to underground pipes only, it was agreed this will have no impact on the ongoing operation of the business.

Financial

If the proposal to reclassify the two pumping station sites is approved, they will need to be surveyed. The easement areas will also be surveyed, and encumbrances registered on the associated records of title. As there is no record of title for section 4, a title will need to be applied for. Notice of the reclassification will then be published in the New Zealand Gazette.

The two sites will then need to be designated for wastewater purposes and included in the Central Otago District Council’s District Plan.

Approximate costs associated with the exercise are shown below in figure 4.

Description	Approximate cost to Council
Public Notification	$ 500
Hearing Panel Fees	$1,500
Application for Record of Title (Section 4)	$1,500
Survey & LINZ Fees	$10,000
LINZ Accredited Supplier (Gazettal)	$5,000

Approximate total cost to Council	$17,000

Figure 4 – Approximate costs of reclassification and designation

These costs will be funded as part of the Clyde Wastewater Reticulation Capital Project.

4. Options

Option 1 – (Recommended)

To agree to:

2. Grant easements containing the right to convey water, wastewater, and power over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde (as required).

3. Grant an easement, (in gross) in favour of the Central Otago District Council, containing the right to convey wastewater, over Sections 26, 27, 28, and 29 Block VII Town of Clyde.

Subject to:

· Public consultation of the proposal to reclassify sites 1 and 2 in accordance with the Reserves Act 1977.

· The consent of the Minister of Conservation.

· The Chief Executive approving the final pumping station design and survey boundaries.

Advantages:

· Will facilitate the construction of two ‘inter-stage’ pumping stations which are integral to the Clyde Wastewater Reticulation Network.

· Reclassifying part of a reserve is consistent with section 24 of the Reserves Act 1977.

· Granting easements over a reserve is consistent with section 48 of the Reserves Act 1977.

· The majority of the infrastructure will be located underground and will have no material effect on the land.

· The Clyde Camping Ground lessee has agreed to a pumping station being constructed on site 2.

Disadvantages:

· None.

Option 2

To not reclassify part of Section 4 Block XLIX Town of Clyde (site 1) or part of Section 34 Bock IV Town of Clyde (site 2), or to grant easements.

Advantages:

· None.

Disadvantages:

· Will not facilitate the construction the pumping stations which are integral to the Clyde Wastewater Reticulation Network.

· Does not recognise that the proposal to reclassifying part of a reserve is consistent with section 24 of the Reserves Act 1977.

· Does not recognise that the granting of the easements is consistent with the provisions of section 48 of the Reserves Act 1977.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social, economic, and environmental wellbeing of communities, in the present and for the future by facilitating the construction of the Clyde Wastewater Reticulation Network. While the Local Government Act 2002 does not apply to the reclassification it is consistent with the provisions of the Reserves Act 1977.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	The financial implications are outlined in figure 4. Costs will be funded as part of the Clyde Wastewater Reticulation Capital Project which was included in the 2108 Long Term Plan.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The recommended option is consistent with the provisions of the Reserves Act 1977.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision to reclassify part of the reserve or to the granting of the easement. Should the recommended option not be approved, it will impact on Council’s ability to construct the Clyde Wastewater Reticulation Network. This could have a negative impact on the environment.
Risks Analysis	There are no risks to Council associated with the recommended option.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered, and none of the thresholds or criteria relating to public engagement are considered to have been met. Public consultation of the proposal to reclassify sites 1 and 2 will be undertaken in accordance with the provisions of the Reserves Act 1977.

6. Next Steps

1. Public consultation of proposal to reclassify April/May 2021

2. Consideration of Submissions (by Hearings Panel) 09 June 2021

3. Application for consent of Minister of Conservation 30 June 2021

4. Reclassification commences July 2021

7. Attachments

Appendix 1 - Copy of Report Dated 09 July 2019

Appendix 2 - Site 1 - Preliminary Layout Plan

Appendix 3 - Site 2 - Preliminary Layout Plan

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Property Officer - Statutory	Executive Manager - Planning and Environment
18/03/2021	29/03/2021

Council meeting

30 June 2021

Hearings Panel

8 June 2021

Report for Decision

PROPOSAL TO RECLASSIFY TWO AREAS OF RECREATION RESERVE

(PRO: 63-4066-00 and PRO: 63-4068-00)

PURPOSE OF REPORT

BACKGROUND

At its meeting of 12 April 2021, the Vincent Community Board (the Board) considered a report proposing the reclassification of two sites on the Clyde Recreation Reserve. The purpose of the reclassifications is to provide for the construction of two interstage (minor) wastewater pumping stations.

A copy of the report to the Board dated 12 April 2021 is attached as Appendix 1.

On consideration, the Board resolved (Resolution 21.3.2) as follows:

A. Receives the report and accepts the level of significance.

B. Agrees to:

2. Grant easements containing the right to convey water, wastewater, and power over Section 4 Block XLIX Town of Clyde and Section 34 Bock IV Town of Clyde (as required).

3. Grant an easement, (in gross) in favour of Central Otago District Council, containing the right to convey wastewater, over Sections 26, 27, 28, and 29 Block VII Town of Clyde.

Subject to:

· The Chief Executive approving the final pumping station design and survey boundaries.

· Public consultation of the proposal to reclassify sites 1 and 2 in accordance with the Reserves Act 1977.

· The consent of the Minister of Conservation.

C. Authorises the Chief Executive Officer to do all that is necessary to give effect to the resolution.

STATUTORY PROCESS

Section 24 of the Reserves Act 1977 provides the mechanism for changing the classification or purpose of a reserve. It also provides for the revocation of reserve status.

The proposal to reclassify two sites on recreation reserve as ‘Local Purpose (Pumping Station) Reserve’ is consistent with section 24(1)(b) of the Reserves Act which states that where:

The succeeding provisions which are applicable to the proposal to reclassify part of the recreation reserve are found in sections 24(2)(b) – (h). These include:

· the requirement to publicly notify the proposal to change the classification and to specify the reason or reasons for the proposal.

· the requirement to invite every person claiming to be affected by the proposed reclassification to give notice in writing of his or her objections to the proposed change.

· having the Minister of Conservation consider the proposed change of classification and all objections received during the submission period.

The role of the Minister of Conservation also includes:

· being satisfied that the reclassification conforms with the provisions of the Reserves Act, and;

· ensuring that due process has been followed.

PROVISIONS FOR CONSIDERING SUBMISSIONS

While section 24(2)(c) of the Reserves Act 1977 provides every person claiming to be affected by the proposed change of classification with a right of objection, those objections must relate specifically to the proposal to change the classification of the reserve.

Consideration should also be given to the section 24(2)(h) of the Reserves Act 1977 which specifies that:

any person who does not lodge an objection in accordance with this subsection [24(2)] shall be deemed to have assented to the change of classification or purpose or the revocation of reservation set forth in the public notification.

STATUS OF THE PROPOSAL

In accordance with Resolution 21.3.2 and pursuant to the provisions of the Reserves Act 1977, Council publicly advertised their Notice of Intention in the Central Otago News edition of 15 April 2021.

The public notice advised that a Statement of Proposal was available in hard copy at the Alexandra Council Office or online via Council’s website.

The notice invited the public to make submissions to the proposal to reclassify two sites on the Clyde Recreation Reserve to Local Purpose (Pumping Station) Reserve.

A copy of the Notice of Intention [as advertised] is attached as Appendix 2.

A copy of the Statement of Proposal [with submission form] is attached as Appendix 3.

As noted in the Statement of Proposal, submissions closed at 5pm on 17 May 2021.

SUBMISSIONS

One (electronic) submission was received by the closing date of 17 May 2021.

The submission supports the proposal to reclassify the two sites. It does not offer any other comment or feedback. The submitter did not opt to present their submission.

A copy of the submission as extracted from the submission portal is attached as Appendix 4.

RECOMMENDATION

Construction of the two interstage (minor) wastewater pumping stations is integral to the Clyde Wastewater Reticulation Project. As the two stations are gravity fed, engineering requirements have determined their general location.

Should Sites 1 and 2 not be reclassified, and the two interstage (minor) wastewater pumping stations not be constructed on these sites, they would have to be constructed elsewhere in the immediate vicinity. Noting that all available land in the immediate vicinity is recreation reserve, the reclassification of recreation reserve land is unavoidable.

The installation of the new wastewater network is recognised as being essential to the health and wellbeing of Clyde residents. The lack of objections would seem to reflect the public’s understanding of the overall benefit of the reclassifying the two sites.

Therefore, in accordance with Resolution 21.3.2 and in consideration of the provisions of the Reserves Act 1977, I recommend that the land contained in the Schedule below be reclassified as Local Purpose (Pumping Station) Reserves:

SCHEDULE OF LAND

Site 1: 250 square metres more or less, being part of Section 4 Block XLIX Town of Clyde

Site 2: 240 square metres more or less, being part of Section 34 Bock IV Town of Clyde

ATTACHMENTS

Appendix 1: Report to Vincent Community Board dated 12 April 2021

Appendix 2: Notice of Intention (Public Notice)

Appendix 3: Statement of Proposal

Appendix 4: Copy of Electronic Submission

Report author:	Reviewed and authorised by:
Linda Stronach	Louise Van der Voort
Statutory Property Officer	Executive Manager - Planning and Environment
18/05/2021	19/05/2021

21.5.15 Cromwell Aerodrome Licence to Occupy

Doc ID: 540086

1. Purpose of Report

To consider granting of new licence to occupy to the Central Lakes Equestrian Club on the Cromwell Aerodrome Reserve.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Agrees to grant a new licence to occupy to the Central Lakes Equestrian Club over a reduced area of 7.3 hectares on the Cromwell Aerodrome Reserve for a period of five 5 years commencing from 1 July 2021.

C. Approves that the licence will be under the same terms and conditions as the previous licence with the following amendments and additional conditions.

a. Annual rental of $525 plus GST

b. Remove requirement for the Club to mow Aerodrome runways in lieu of rental.

c. Allowance for either party to terminate the licence to occupy with 6 months written notice.

D. Authorises the Chief Executive Officer to do all that is necessary to give effect to the resolutions.

2. Background

On 30 June 2020 the Cromwell Community Board (the Board) considered granting a new licence to occupy to the Central Lakes Equestrian Club (the Club) over a reduced area at the Cromwell Aerodrome Reserve (the Aerodrome).

The previous licence to occupy expired on 30 June 2019 and covered a total area of 11.6613 hectares more or less, as shown hatched on the plan below.

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Due to potential demand for more hangar sites along the Ord Road boundary of the Aerodrome, area (a) above was to be excluded from the proposed new licence. About 30% of that area now has new hangar sites.

The Board resolved the following:

20.3.10:

B. Agree to grant a new licence to occupy to the Central Lakes Equestrian Club over a reduced area of 7.3 hectares on the Cromwell Aerodrome Reserve for a period of five (5) years commencing from 1 July 2020.

C. Agree that the licence will be under the same terms and conditions as the previous licence with the following amendments and additional conditions:

a. The rent to be reviewed on adoption of Council’s proposed Community Occupation Policy.

b. Allowance for either party to terminate the licence to occupy with 6 months written notice.

During the course of further investigation into this matter it was identified that an error had been made in presenting the report regarding the licence to occupy to the Board in June 2020.

Council as a local authority is the Airport Authority for Cromwell Aerodrome and as a result is granted powers under the Airport Authority Act 1966 (the Act) including the granting of leases and licences. Under the Act those powers cannot be delegated without an Order in Council by the Governor General. In addition, Council’s aerodromes are a district responsibility and are therefore funded accordingly.

As the Board has previously considered this matter it is appropriate that Council consider their recommendation. However, any future decisions regarding issuing of leases and licences on the Cromwell Aerodrome should be considered by Council only. Staff will continue to keep relevant boards advised of aerodrome developments in their area and board input will still be considered where appropriate.

Following the Board’s resolution a new licence was prepared under the same terms and conditions as previous and sent to the Club for signing. However, the Club did not agree that it should continue to mow the airstrip as part of its obligations under the licence and returned the licence with that condition crossed out.

The Club wrote to Council to provide more background information around why they had stopped mowing the airstrip, letter attached as Appendix 1.

The Club suggest in the letter that they had historically mowed the air strips for nothing as part of being a good neighbour. However, it is clearly the intention of all licences granted to the Club on Cromwell Aerodrome since 2000 that nil rental was approved in exchange for the Club mowing the runway strips at a minimum.

See timeline below of previous approvals for Licence to Occupy granted to the Club:

· September 2000

The Cromwell Community Board approved a licence to occupy over the entire Aerodrome Reserve for nil rental on condition that ‘no rental be charged so long as the Club accepts responsibility for grounds maintenance.’ The Board also provided a grant of $6,000 to develop lucerne stand on the Aerodrome Reserve.

The licence was granted from 1 July 2000 for a term of five years with no right of renewal.

· March 2006

Council’s Operations Committee granted a licence to occupy for term of five years with no right of renewal over those parts of the Aerodrome not required for aerodrome purposes on same terms and conditions. The condition that the Club mowed the strips in exchange for nil rental remained in place.

· December 2012

A report was presented to Council’s Infrastructure Committee requesting that the Club renew the licence to occupy. The report lays out how the previous licence to occupy was granted for the purpose of lucerne harvesting but little lucerne was harvested. The Club then allowed a local farmer to graze sheep on both the racecourse and aerodrome reserve for an annual return.

The grazing was actually contrary to the permitted use of the licence and a complaint was received by council about risk of stock remaining on the airstrip for long periods of time.

As a result, it was agreed at a meeting with the Club that they make a request to Council to partially fence the aerodrome to allow grazing to continue without impacting on the runway.

The report does discuss that the licence was unclear as to whether the Club needed to keep the grass mown to prevent fire hazard to just the runways or to the whole of the aerodrome reserve. However, there is no question that the Club was responsible for mowing the runways at a minimum in lieu of rental.

Council resolved to renew the licence on the same terms and conditions but with clear boundaries of the licence area shown on a plan and with the purpose of the licence changed from ‘farming lucerne’ to grazing sheep’.

3. Discussion

The previous licence to occupy expired on 30 June 2019 but has been allowed to continue on a month-to-month basis. The Club wish to continue to use the remaining available area of approximately 7.2 hectares for grazing purposes for nil rental without the condition that the Club keep the runway strips mown in lieu of rental.

The Board resolved in June 2020 that the licence should be renewed under the same terms and conditions including the requirement to mow the runways in lieu of rental.

Since 2013 when the latest licence to occupy was granted the use of the Aerodrome has increased and for safety reasons the frequency of mowing of both the runway strips and the surrounding aerodrome reserve has also increased.

Council has been engaging a contractor to mow the runways for some time contrary to the terms under the previous licence to occupy by the Club. The annual cost for mowing has been between $2,500 - $4,000 per annum for the last two years.

To assist with this decision a valuation was obtained for a fair annual grazing rental for the bare land area of the licence and the rental was assessed as $525 plus GST per annum.

Therefore, in light of the recent rental assessment it is considered that the requirement for the Club to mow the runways in lieu of rent is no longer a fair exchange.

Community Leasing and Licencing Policy

The Board also resolved that the rental should be reviewed once the Community Leasing and Licencing Policy (the Policy) was completed.

The Policy is now complete and states that ‘Annual rentals will be calculated at 2.5% of the tenant’s subscription income less any affiliation fees’.

The Club does not receive income from membership subscriptions as such so it is not possible to calculate a rental based on this criteria. However, the Club does generate substantial annual income from course rental, buildings rental, grazing rental and camping and other sources which was estimated at $91,400 for the year ending 31 May 2021 in their recent Business Plan.

It is understood that the Club held the previous licence to occupy over land at the Aerodrome for purpose of allowing the area to be grazed to generate income.

The Policy also states that ‘In exceptional circumstances, the tenants and the Council may agree to an alternative method of determining rent if it is considered that the standard method will produce an unjust outcome.’

It is not considered fair that the Club continue to pay nil rental for a licence to occupy. This would not be consistent with the Policy and the approach taken for charging rental for other sports clubs. It is also not considered fair that the Club pay 2.5% of $91,400 ($2,285), in view of the grazing rental valuation at $525 plus GST per annum and the purpose of the previous licence to occupy being income generation through grazing.

Therefore, it is proposed that Council offer to issue a new licence to occupy to the Club over 7.2 hectares of land at Cromwell Aerodrome for rental of $525 plus GST per annum. The previous condition for the Club to mow the aerodrome runways in lieu of rental will be removed.

An additional condition is also recommended to be added to allow either party to terminate the licence to occupy with 6 months written notice. This is a standard condition for many council leases to allow for termination if the land is needed for other purposes.

4. Options

Option 1 - (recommended)

To agree to grant the Club a new licence to occupy for another 5 years at $525 plus GST annual rental over 7.2933 ha at the Cromwell Aerodrome excluding the obligation to mow air strips.

Advantages:

· If the Club agrees to pay the annual rental they can continue to occupy the 7.2933ha for grazing and keep the area tidy and free of weeds.

· To be consistent with the Community Leasing Policy and fair to other sports clubs the Club should pay some rental for the licence to occupy for grazing purposes.

· The rental has been assessed by a valuer as a fair rental for grazing the area.

· Charging a fair rental acknowledges that although the Club has previously paid nil rental the value of the land was reflected in the previous obligation for mowing of the air strips.

Disadvantages:

· The Club may not want to pay any rental so new licence will not be issued. The Club will need to remove their fence and Council will have to maintain the 7.2 hectare area in the future.

Option 2

To agree to grant the Club a new licence to occupy for another 5 years at nil rental over 7.2933 ha at the Cromwell Aerodrome excluding the obligation to mow air strips.

Advantages:

· The Club saves $525 per year.

Disadvantages:

· Nil rental would be inconsistent with the Community Leasing Policy which requires all sports clubs to pay some rental for leases and licences based on set criteria. The Club generates substantial annual income and the proposed annual rental of $525 plus GST is minor.

· Nil rental would also be inconsistent with intention of other licences which were previously granted to Club not simply for nil rental but which had a requirement for mowing runways in lieu of rent.

Option 3

Do nothing and decline to grant a new licence to occupy to the Club.

Advantages:

· A larger area of the aerodrome would be available for possible future development of hangar sites.

Disadvantages:

· The Club would no longer be able to use the area for grazing and Council would need to maintain the area.

5. Compliance

Local Government Act 2002 Purpose Provisions	Increase of income streams for Council aerodromes helps to reduce impact on rates while continuing to provide good-quality local infrastructure. That income stream could also potentially help fund other Council services in the future.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	The proposed rental for the new hangar site at the Aerodrome is $525 plus GST per annum and is unbudgeted income for council airports.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The decision is consistent with other Council plans and policies.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision.
Risks Analysis	There are no risks identified with this decision.
Significance, Consultation and Engagement (internal and external)	The proposal does not exceed any of the thresholds or meet any of the criteria in the Significance and Engagement Policy and it is not considered that public consultation is required.

6. Next Steps

1. Advise the Club of the decision.

2. Prepare a new Licence to Occupy if applicable.

Appendix 1 - 20200703 Central Lakes Equestrian Club Letter ⇩

Report author:	Reviewed and authorised by:

Tara Bates	Louise van der Voort
Property Officer	Executive Manager - Planning and Environment
14/06/2021	16/06/2021

21.5.16 Roxburgh Aerodrome - Request for hangar site

Doc ID: 527675

1. Purpose of Report

To consider a request for hangar site lease at Roxburgh Aerodrome.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Approves a lease for a hangar only site at Roxburgh Aerodrome to Central Heliwork Ltd for 841m2 of land described as part of Lot 3 DP 8420 situated at Teviot Road, Roxburgh.

C. Authorise the Chief Executive Officer to do all that is necessary to give effect to the resolutions.

2. Background

The Roxburgh Aerodrome (The Aerodrome) is located on 26.0795 hectares of council-owned freehold land at Teviot Road, Roxburgh, described as Lots 2 and 3 DP 8420.

The land was purchased by the former Tuapeka County Council in 1985. The land is not classified as aerodrome reserve but is designated for aerodrome purposes under the District Plan.

The Aerodrome has a 1200m grass runway strip and no further services or amenities.

The Aerodrome is primarily used by a local top-dressing company whose land shares a boundary with the Aerodrome. A fuel pump is also located on the adjacent land. The aerodrome is also used by occasional general aviation recreational users.

There is currently no accurate data on usage of the aerodrome However, a system is being installed at all council’s airports in the next financial year which will record the number of landings.

A request has been received for a new hangar site at Roxburgh Aerodrome with the intention of erecting a 29m x 29m hangar for the purposes of housing aircraft and operating a helicopter business.

The nominated site is shown highlighted in light blue on Figure 1 below.

Figure 1

The site has sufficient room to accommodate the proposed 29m x 29m hangar and is not required for other purposes. The location of the proposed hangar is acceptable in terms of Civil Aviation Authority rules regarding height restrictions adjacent to the runway. Access to the site will be from the existing Awiki Road.

The intention is to issue the lease for the new site using the standard terms and conditions previously adopted for Cromwell Aerodrome leases. The term of the lease is 15 years with one right of renewal of 15 years. Leases are subject to three yearly rent reviews.

The Aerodrome land is freehold and could potentially be sold in the future if no longer needed for aerodrome purposes. Therefore, a term of 30 years is considered more appropriate than the 49 year term provided for in Alexandra Aerodrome leases.

As there are no water or power services available at the Aerodrome, it is proposed that a lease is approved for a hangar only site. This would exclude attached accommodation as is being provided for at Alexandra Aerodrome and would be consistent with the lease sites at Cromwell Aerodrome which are also un-serviced.

3. Discussion

There are currently no services available at the Aerodrome so if the proposed lessee wishes to provide power and water to their hangar it will be at their cost.

The Roxburgh Aerodrome is zoned rural in the District Plan and a resource consent would be required to operate a commercial business or to build residential accommodation on the site. Any consents required would also be the lessee’s responsibility.

The main known users of the Aerodrome have been consulted and have no issues with a hangar being built on the proposed site.

The proposed rental for the new hangar site at Roxburgh is $1500 plus GST per annum which was assessed by a registered valuer.

The Roxburgh Community Board at their meeting on 17 June 2021 were informed that Council would be considering approving a request for a hangar site lease at the Aerodrome. The Board verbally confirmed they had no issues with the proposal to issue a lease for a term of 30 years.

4. Options

Option 1 – (Recommended)

Approve a lease for a hangar site to Central Heliwork Ltd over 841m2 of land described as part of part of Lots 2 and 3 DP 8420 situated at Teviot Road, Roxburgh.

Advantages:

· The lease will add to the income stream for council airports.

Disadvantages:

· If use of the Aerodrome decreases in the future it may be considered that the Aerodrome land is no longer needed and could be sold. The proposed lease would prevent the land being sold during the 30 year term of the lease.

Option 2

Do not approve a lease for a hangar site to Central Heliworx Ltd over 841m2 of land described as part of part of Lots 2 and 3 DP 8420 situated at Teviot Road, Roxburgh.

Advantages:

· If use of the Aerodrome decreases in the future it may be considered that the Aerodrome land is no longer needed and could be sold.

Disadvantages:

· A potential source of income from Roxburgh Aerodrome is no longer available.

5. Compliance

Local Government Act 2002 Purpose Provisions	Increase of income streams for council aerodromes supports economic wellbeing by reducing impact on rates while continuing to provide good-quality local infrastructure. That income stream could also potentially help fund other council services in the future.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	No rental income for Roxburgh Aerodrome has previously been budgeted for and any new leases for hangar sites will add to the income stream for aerodromes. The proposed rental for the new hangar site at the Aerodrome is $1500 plus GST per annum per site which was assessed by a registered valuer.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The Roxburgh Aerodrome is designated for Aerodrome Purposes under the District Plan and a lease for a hangar site is considered compatible. The underlying status is Rural Resource Area. Erection of hangars in the Rural Resource Area is a permitted activity under the District Plan. However, any residential or commercial activity is a discretionary restricted activity and will be subject to resource consent.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision as the associated works will have no material effect on the land.
Risks Analysis	There are no apparent risks to Council.
Significance, Consultation and Engagement (internal and external)	The proposal does not exceed any of the thresholds or meet any of the criteria in the Significance and Engagement Policy and it is not considered that public consultation is required. The main known users of the Aerodrome were consulted and had no issues with the proposal.

6. Next Steps

1. Proposed lessee informed of Council resolution

2. Lease drafted and executed

Nil

Report author:	Reviewed and authorised by:

Tara Bates	Louise van der Voort
Property Officer	Executive Manager - Planning and Environment
8/06/2021	16/06/2021

21.5.17 Sensitive Expenditure Policies

Doc ID: 540117

1. Purpose of Report

To adopt the Sensitive Expenditure Policy, the Travel Policy and the Credit Card Policy.

Recommendations

That the Council

A. Receives the report and accepts the level of significance

B. Adopts the Sensitive Expenditure Policy, the Travel Policy and the Credit Card Policy

C. Resolves to amend clause 3.3 of the Elected Members Allowances and Reimbursement Policy by adding the words “and the Executive Manager – Corporate Services” to the following statement:

3.3 The process for reimbursement of claims includes the following principles:

· The “one-up” principal must be applied to the maximum extent possible, in the case of the Mayor, approval is required from the Deputy Mayor and the Executive Manager – Corporate Services, and in the case of the Deputy Mayor, approval is required from the Chief Executive.

2. Background

At their 04 June 2021 meeting, the Audit and Risk Committee considered the attached three documents. All three relate to sensitive expenditure. These documents were recommended to be presented to Council for adoption, subject to the Committee’s recommended changes, which may be seen in red text in the Appendices.

Council’s Sensitive Expenditure Policy has been reviewed earlier than scheduled, following the updated good practice guide on controlling sensitive expenditure distributed by the Controller and Auditor-General. As a result of this review, it was recommended that the policy be revised and expanded. This resulted in a separation of the Sensitive Expenditure Policy into three policies – Sensitive Expenditure, Travel and Credit Card Policy for ease of use and compliance.

Official Information Requests surrounding sensitive expenditure and gifts are regularly received by Council, with spending practices scrutinised by the public. Sensitive expenditure covers a broad range of topics and it is important that both staff and elected members have clarity and guidance surrounding these, often controversial, topics.

3. Discussion

The Controller and Auditor-General have provided updated guidance around best practice, reinforcing the importance of performing in a manner which stands up to public scrutiny. Issues of sensitive expenditure arise often, and it is important that guidelines are in place and sensitive expenditure is managed diligently and robustly.

The Sensitive Expenditure Policy, Travel Policy and Credit Card Policy all provide practical guidance on specific types of expenditure and outline principles for decision-making for situations which are not clear-cut. Managing sensitive expenditure, and perceived sensitive expenditure, requires good judgement, and these policies provide a guide from which to base decisions.

4. Options

Option 1 – (Recommended)

Adopt the Sensitive Expenditure Policy, the Travel Policy and the Credit Card Policy.

Advantages:

· Protects Elected Members and Council staff by providing comprehensive guidance surrounding expenditure of a sensitive nature.

· Protects Council’s reputation

· Generates awareness of the topic of Sensitive Expenditure

· Reinforces a financially prudent approach to expenditure.

Disadvantages:

· None.

Option 2

Council retains the existing Sensitive Expenditure Policy.

Advantages:

· None.

Disadvantages:

· Lack of comprehensive, up-to-date guidance on sensitive expenditure

· Heighten risk of public scrutiny on an item of importance

· Not meeting the Controller and Auditor-General’s recommended best practice.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision ensures the organisation conducts business in an open, transparent and democratically accountable manner.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	Yes. The review of this policy, and consequential creation of additional policies, have been conducted in house and have not raised any financial implications. There are no costs associated with the recommendation to adopt these policies. Adequate guidance around sensitive expenditure will reduce the likelihood of financial or reputational damage to Council.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes. The suite of policies is a revision of the Sensitive Expenditure Policy. The policies maintain consistency with other Council policies and processes.
Considerations as to sustainability, the environment and climate change impacts	There are no implications.
Risks Analysis	The existing policy is outdated. Before the draft of these policies there was no comprehensive policy for travelling or the use of credit cards, which provides uncertainty and therefore the risk of inappropriate spending, leaving many aspects open for scrutiny and creating a significant risk to the organisation. These policies aim to reduce the risk to the organisation.
Significance, Consultation and Engagement (internal and external)	The changes proposed to the policy are not significant and are therefore unlikely to generate community or media interest. No consultation is required as this is not significant under the Significance and Engagement Policy.

6. Next Steps

Staff will then be notified of the updated policy through the staff intranet.

Appendix 1 - Sensitive Expenditure Policy.pdf ⇩

Appendix 2 - Travel Policy.pdf ⇩

Appendix 3 - Credit Card Policy.pdf ⇩

Report author:	Reviewed and authorised by:

Gabi McFarlane	Leanne Macdonald
Risk and Procurement Manager	Executive Manager - Corporate Services
14/06/2021	15/06/2021

o Oversight of unbudgeted legal claims or other proceedings other than those which relate to employment matters.

21.5.18 Register of Delegations

Doc ID: 540134

1. Purpose of Report

To consider a change to the “Register of Delegations to Community Boards, Portfolios, Committees, and the Chief Executive Officer” in respect to the delegations to staff.

Recommendations

That the Council

A. Receives the report and accepts the level of significance.

B. Approves the following change to the Register of Delegations;

Replace the current paragraph in section 76 as follows:

o The Chief Executive Officer may approve all unbudgeted legal claims or other proceedings, such as the authorisation to undertake settling actions and prosecutions taken against Council, where it is in the CEO’s opinion that such settlement best protects Council’s interest, up to a value of $500,000. Where claims or other legal proceedings are likely to exceed $500,000, the CEO is required to communicate with relevant elected members prior to entering into mediation.

o The Chief Executive Officer may delegate to council officers the authority to represent Central Otago District Council in legal claims or other proceedings.

o Confidential settlements, other than those which relate to employment matters, may be presented in a separate report to the Audit and Risk Committee.

C. Approves the following change to the Register of Delegations

Add the following to Part V – Delegations to Committees of Council – Audit and Risk Committee – Scope of Activity:

2. Background

The Register of Delegations to Community Boards, Portfolios, Committees, and the Chief Executive Officer (the Register of Delegations) was adopted by Council in January 2020. A change made at the 5 May 2021 Council meeting included additional wording to Section 76, Other Legal Actions. This alteration was recognised as being temporary, with greater clarity being required around this section.

3. Discussion

The current section titled Other Legal Actions contained in the Register of Delegations, adopted in January 2020 and amended in May 2021, does not effectively enable the Chief Executive Officer to take necessary steps to protect the Council’s interests in the case of legal action against the Council. The proposed addition ensures adequate reporting, ensuring accountability and transparency.

The following proposed addition to this section enables operational efficiency, ensuring situations which require legal input are managed appropriately, and within adequate timeframes.

o The Chief Executive Officer may delegate the authority to represent Central Otago District Council in legal claims or other proceedings.

o Confidential settlements, other than those which relate to employment matters, may be presented in a separate report to the Audit and Risk Committee.

A second proposed alteration, leading on from the change to Section 76, allows the Audit and Risk Committee oversight of unbudgeted legal claims or other proceedings, other than those which relate to employment matters, ensuring transparency and accountability.

4. Options

Option 1 – (Recommended)

Adopt the proposed changes to the Register of Delegations.

Advantages:

· Creating a more efficient operating environment, ensuring situations which require legal input are managed appropriately, and within adequate timeframes

· Ensuring the Chief Executive Officer has capacity to conduct operational and strategic functions required for the role

· Reporting visibility for Audit and Risk

· Decreases risk through greater oversight by the Chief Executive Officer.

Disadvantages:

· None.

Option 2

Maintain the current status contained within the delegations register.

Advantages:

· Maintain the status quo in relation to risk.

Disadvantages:

· Inefficient operating environment, which increases operational costs and delays

· Lack of clarity and transparency around delegation amounts in relation to other legal matters.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social and economic wellbeing of communities, in the present and for the future by prudently managing the delegations of the Council on their behalf.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	This decision remains consistent with proposed activities and budgets in both the Annual Plan and the Long-term Plan.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	This is a procedural decision and is in alignment with financial delegation levels.
Considerations as to sustainability, the environment and climate change impacts	There are no implications from this decision.
Risks Analysis	There are no inherent risks with the recommended option. This option decreases risk through greater oversight by the Chief Executive Officer, and increased reporting.
Significance, Consultation and Engagement (internal and external)	This is a procedural matter and, therefore, no external consultation or engagement is required.

6. Next Steps

The revised version will be published on the Central Otago District Council’s website. This policy will be reviewed and revised, for adoption in early 2022.

Appendix 1 - Register of Delegations June 2021.pdf ⇩

Report author:	Reviewed and authorised by:

Gabi McFarlane	Leanne Macdonald
Risk and Procurement Manager	Executive Manager - Corporate Services
14/06/2021	22/06/2021

21.5.19 Financial Reserves Policy

Doc ID: 541014

1. Purpose of Report

To adopt the Financial Reserves Policy.

Recommendations

That the Council

A. Receives the report and accepts the level of significance

B. Adopts the Financial Reserves Policy.

2. Background

Council has a long record of managing financial reserves in a financially prudent manner that promotes and protects the current and future interests of the community.

Council is required to maintain a range of financial reserves and has chosen to create other financial reserves for the purpose of separately managing funds. Over time these funds have accumulated and now total significant sums. It is therefore important that they are managed consistently, accurately, and transparently.

This policy was presented to Audit and Risk Committee at their 4 June 2021 meeting where the Committee reviewed the policy, provided feedback and noted that this policy would be presented to Council for consideration.

The Audit and Risk Committee suggested one change to the word ‘must’ in the final bullet point on page four of the policy:

Further to this any council or community board report and resolution pertaining to the use of a reserve, the resolution must be forwarded to the Finance Manager or Executive Manager, Corporate Services to ensure the funds are recorded accordingly.

3. Discussion

Council staff seek to manage the reserves in a clear and transparent manner, to enable elected members comfort when authorising the use of these reserves. The reserves form part of the end of year annual report audits.

Reserves serve as a “rainy day fund” to lessen the impact on rates or to fund unplanned, additional, or delayed programmes of work as per Council or community board resolutions. Whether reserves have accumulated by way of under-spending of an activity in a specific year or collected for a specific targeted activity (such as an emergency event), the expectation applies that the use of the reserves is in a consistent manner that supports the initial intention behind the collection of the income relating to the activity it has originated from.

This policy will give staff guidance when seeking permission to use these funds to support operational and capital expenditure in the later years and ensure that the use of these funds reflects the intent behind the collection of these reserves, while offering transparency in the use of these funds.

4. Options

Option 1 – (Recommended)

Council adopts the Financial Reserves Policy

Advantages:

· Maintain a consistent approach to the creation and implementation of Council policies

· Supports the intention to maintain transparency, consistency, and accurate management of reserve funds

· Protects Council reputation

· Supports the community’s expectation that council will use funds for the intention that they were collected for.

Disadvantages:

· None identified.

Option 2

Council does not adopt the Financial Reserves Policy.

Advantages:

· None identified.

Disadvantages:

· A lack of policy causes confusion for staff and Council at times when determining how and when to use reserves

· Currently there is confusion across Council and community boards as to which reserves to use for which purpose when requiring additional support to fund for operational and capital expenditure in years when funding is not available

· Inconsistencies in the recording of such reserves may not balance with the expectation of staff or elected members when seeking to use or when approving the use of specific reserves

· Lack of guidance to council staff

· As part of the annual budgeting process staff may request council rates for activities that have appropriate reserves.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities through the annual planning and reporting process. AND This decision promotes the economic well-being of communities, in the present and for the future by prudently managing the financial reserves of the Council on their behalf.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	The financial implications of this new policy have been considered and is consistent with the proposed activities contained within the long-term and annual planning processes.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Other council policies and plans have been considered when creating this policy.
Considerations as to sustainability, the environment and climate change impacts	There are no implications.
Risks Analysis	Whilst there is no current policy to consider, this new policy supports best practice with no known risks.
Significance, Consultation and Engagement (internal and external)	No consultation is required in the creation of this policy. There are no significant issues arising from this new policy and should not generate media or community interest.

6. Next Steps

Staff will be notified of the updated policy through the staff intranet.

Appendix 1 - Financial Reserves Policy.pdf ⇩

Report author:	Reviewed and authorised by:

Leanne Macdonald	Sanchia Jacobs
Executive Manager - Corporate Services	Chief Executive Officer
14/06/2021	21/06/2021

6 Reports for Information

21.5.20 Financial Report For The Period Ending 31 March and 30 April 2021

Doc ID: 531114

1. Purpose

To consider the financial performance for the period ending 30 April 2021 and to receive the financial report for the period ending 31 March 2021.

Recommendations

That the report be received.

2. Discussion

The presentation of the financials includes two variance analysis against both the financial statement and against the activities. This ensures Council can understand the variances against the ledger, and against the activities at a surplus/(deficit) value. The reason for the second variance analysis is to demonstrate the overall relationship between the income and expenditure at an activity level.

The third report details the expenditure of the capital works programme across activities. This helps track key capital projects across the year and ensures the progress of these projects remains transparent to Council.

The fourth and fifth reports detail the internal and external loans balances. The internal loans report forecasts the balance as at 30 June 2021, whereas the external loans show the year-to-date current balances due to payments through-out the year.

The financial report for the period ending 31 March 2021 is attached for information only. This has arisen due to the deliberations and hearings preventing this report being presented at the early June Council meeting. For completeness we have included the March report as an appendix.

Statement of Financial Performance for the period ending 30 April 2021

	10 MONTHS ENDING 30 APRIL 2021				2020/21	2020/21
	YTD	YTD	YTD
	Actual	Revised Budget	Variance		Annual Plan	Revised Budget
	$000	$000	$000		$000	$000
Income
Development Contributions	1,118	1,710	(592)	˜	2,347	2,365
Interest & Dividends	443	334	109	˜	401	401
Rates	25,720	25,664	56	˜	30,437	30,437
Reserves Contributions	262	-	262	˜	-	-
User Fees & Other	6,782	6,415	367	˜	7,066	7,796
Profit on Sale of Assets	168	124	44	˜	-	124
Other Capital Contributions	289	268	21	˜	1	268
Regulatory Fees	1,852	1,764	88	˜	2,356	2,036
Land Sales	6,236	4,016	2,220	˜	-	4,016
Govt Grants & Subsidies	8,896	9,457	(561)	˜	5,102	10,257
Total Income	51,766	49,752	2,014	˜	47,710	57,700

Expenditure
Costs of Sales	3,728	1,797	(1,931)	˜	-	1,797
Rates Expense	423	432	9	˜	406	432
Electricity & Gas	1,177	1,175	(2)	˜	1,311	1,433
Depreciation	8,547	8,513	(34)	˜	10,209	10,209
Loss on Sale of Asset	27	-	(27)	˜	-	-
Grants	603	638	35	˜	628	725
Cost Allocations	(12)	(10)	2	˜	-	(9)
Building Repairs & Mtce.	594	668	74	˜	832	846
Members Remuneration	440	520	80	˜	640	608
Contracts	6,723	7,255	532	˜	7,949	8,792
Technology Costs	696	745	49	˜	1,006	907
Refuse & Recycling Costs	2,931	2,649	(282)	˜	3,476	3,534
Insurance	393	393	-	˜	481	404
Staff	8,987	9,627	640	˜	11,635	11,974
Professional Fees	2,073	2,843	770	˜	2,604	3,653
Other Costs	3,078	3,739	661	˜	3,861	5,274
Total Expenses	40,408	40,984	576	˜	45,038	50,579

Operating Surplus / (Deficit)	11,358	8,768	2,590		2,672	7,121

This table has rounding (+/- 1)

The financials for April 2021 show an overall favourable variance of $2.59M. The main driver is in land sales at $2.2M being the delayed settlement of the Cemetery Road/Harvest Road land sale from 2018.

Overall income has a favourable variance against the revised budget of $2.01M. This relates to the above delayed settlement of Cemetery Road/Harvest Road.

Expenditure has a favourable variance of $576k. The main drivers behind the favourable variance are contracts, staff, professional fees, and other costs. Offsetting this favourable variance is the cost of sales (being the land value) relating to the settlement of Cemetery Road/Harvest Road, along with refuse and recycling costs.

Income of $51.766M against the year-to-date budget of $49.752M

The main variances are:

· Development contributions has an unfavourable variance of ($592k). Lower than expected contributions are linked with the timing of developments in Cromwell and Alexandra with the balance in district roading. This includes $417k that has been received from two developments in April.

· Government grants and subsidies revenue of $8.89M is ($561k) unfavourable against budget. The unfavourable variance is due to the timing of the Waka Kotahi New Zealand Transport Agency (Waka Kotahi) roading subsidy. These subsidies are claimed based on the roading work programme. The capital roading work programme is running behind schedule largely due to the timing of the Clyde Heritage Precinct project.

· Interest and dividends revenue is favourable against budget by $109k. This is partly due to interest received from the delayed settlement of Cemetery Road offsetting the lower interest rates received on term deposit investments.

· Reserves contributions has a favourable variance of $262k. These contributions are dependent on developers’ timeframes and therefore difficult to gauge when setting budgets.

· User fees and other has a favourable variance of $367k. The main driver for the favourable variance is planning (regulatory) income of $189k. Other areas with favourable variances include Ministry of Business Innovation and Employment (MBIE) tourism grant of $48k, property rental and hire income of $49k from Murray Terrace and metered water sales of $86k.

Expenditure of $40.408M against the year-to-date budget of $40.984M

The main variances are:

· Costs of sales has an unfavourable variance of ($1.9M). As mentioned above, this relates to the delayed settlement of Cemetery Road/Harvest Road from 2018. This cost reflects the book value of the land.

· Refuse and recycling costs has an unfavourable variance of ($282k). This is mainly due to the payment of the Central Otago District Council emission trading scheme contribution of ($277k) occurring ahead of the anticipated budget, which as planned to occur in May 2021.

· Contracts has a favourable variance of $532k. The main favourable variances are planned maintenance of $98k, district-wide un-subsidised roading work of $76k, subsidised roading work of $219k and physical works of $117k. As with income, the capital roading programme is running behind schedule due to the timing of the Clyde Heritage Precinct Project.

· Staff costs has a favourable variance of $640k. This relates to the timing of vacant positions and positions that are in the process of being recruited.

· Professional fees have a favourable variance of $770k. This is due to the timing of professional fees within the District Plan along with the timing of management consultant fees in water and wastewater.

Other costs breakdown is as below:

Other Costs breakdown	YTD Actual	YTD Revised Budget	YTD Variance		2020/21 Annual Plan	2020/21 Revised Budget
Other Costs breakdown	$000	$000	$000		$000	$000
Operating Expenses	187	297	110	˜	284	357
Minor Repairs & Maintenance	140	143	2	˜	168	180
Staff Expenses	24	33	9	˜	44	41
Valuation Services	111	139	28	˜	170	170
Water Costs	101	148	47	˜	214	223
Minor Equipment	211	285	74	˜	328	358
Retail	58	66	8	˜	61	83
Sludge Treatment	172	202	30	˜	252	437
Health & Safety	8	26	18	˜	58	40
Vehicles	89	122	33	˜	153	155
Advertising	129	196	66	˜	273	262
Office Expenses	501	606	105	˜	739	750
Administrative Costs	605	738	133	˜	732	1,205
Projects	741	739	(2)	˜	386	1,013
Total Other Costs	3,078	3,739	661		3,862	5,274

This table has rounding (+/- 1)

· Operating expenses has a favourable variance of $110k. This is largely due to underspends in wastewater operations.

· Advertising and office expenses have a favourable variance of $171k. This is largely due to underspends across the organisation.

· Administrative costs have a favourable of $133k. This is largely due to an underspend in track maintenance and compliance schedules.

Profit and Loss by Activity – 30 April 2021

This table has rounding (+/- 1)

* The funding activity has been removed as this is not an operational activity.

· Infrastructure – income has an unfavourable variance of ($571k). This variance is due to development contributions received being lower than budgeted. Lower than expected contributions are linked with the timing of subdivision developments in Cromwell and Alexandra. It is expected that development contribution income will remain lower than budget due to subdivision developments being pushed into the next financial year. Expenditure has an unfavourable variance of ($26k).

· Roading – income has an unfavourable variance of ($662k). This is predominately due to the Waka Kotahi subsidy. The subsidy moves in tandem with subsidised roading operating and capital expenditure. Both are due to the timing of the capital work programme which is running behind schedule largely due to the Clyde Heritage Precinct Project.

· Waste Management - income has a favourable variance of $34k. This is mainly due to the timing of green waste income. Expenditure has an unfavourable variance of ($298k). This is mainly due to the timing of the Central Otago District Council emission trading scheme contribution of ($277K).

· Parks and Recreation – income has an unfavourable variance of ($3k). Lower than expected swimming pool revenue of ($50k) is being offset by the $48k MBIE Tourism grant. Expenditure has a favourable variance of $114k. This relates to a contestable grant for trail maintenance that is subject to funding applications being received.

· Corporate Services – income has a favourable variance of $22k. This is due to profit on the sales of vehicle assets. Expenditure has a favourable variance of $231k. This is mainly due to the timing of information services operating expenditure.

· People and Culture – income has a favourable variance of $40k driven by a grant received from New Zealand Libraries Partnership Programme. Expenditure has a favourable variance of $124k. Driving this favourable variance are underspends in Human Resources $42k, Health and Safety $50k and Administration $28k.

· CEO – Expenditure has a favourable variance of $328k which is mainly due to the strategic pay allocation which by end of year should be reflected in increased costs across the organisation, as the pay review impacts across the activities.

· Property – favourable income of $2.5M relates to the delayed settlement on Cemetery Road from 2018. Expenditure has an unfavourable variance due to the costs associated with this delayed settlement.

· Governance and Community Engagement – income has a favourable variance of $56k due to grants received in tourism. Expenditure has a favourable variance of $537k. This is due to underspends in promotions and tourism $225k, governance $118k, economic development $51k, community development $79k, visitor centres $53k and regional identity $24k.

· Planning (Regulatory) – has a favourable income variance of $296k, this is mainly due to the recovery of costs incurred from external professionals related to resource consents and an increase in building permit revenue. The favourable expenditure variance of $608k is due to lower-than-expected staff costs and planning consultant (review) fees with further work required to progress the District Plan programme.

· Three Waters – income has a favourable variance of $52k. This is due the timing of metered water sales and is offset by lower revenue from septage fees. Expenditure has a favourable variance of $463k due to lower-than-expected management consultants and operating costs.

Capital Expenditure

Year-to-date, 38% of the total capital spend against the full year’s revised capital budget, has been expensed.

CAPITAL EXPENDITURE	YTD Actual	YTD Revised Budget	YTD Variance		2020/21 Revised Budget	Progress to date
CAPITAL EXPENDITURE	$000	$000	$000		$'000

Council Property and Facilities	6,432	5,774	(658)	˜	10,763	60%
Waste Management	198	2	(196)	˜	860	23%
i-SITEs	-	5	5	˜	5	0%
Customer Services and Administration	30	14	(16)	˜	61	49%
Vehicle Fleet	301	172	(129)	˜	353	85%
Planning	-	-	-	˜	193	0%
Information Services	524	610	86	˜	1,992	26%
Libraries	115	135	20	˜	500	23%
Parks and Recreation	749	1,163	414	˜	2,908	26%
Roading	4,957	5,979	1,022	˜	7,461	66%
Three Waters	4,905	11,592	6,687	˜	23,091	21%

Grand Total	18,211	25,446	7,235		48,187	38%

Council Property and Facilities ($658k) unfavourable against budget:

The forecast recognised the cash payment for the Murray Terrace land, but it did not recognise the non-cash component in the forecast. This needs to be recognised as per Council’s resolution 20.40.3 in July 2020. Offsetting the unfavourable variance created by Murray Terrace, is the redirection of the subdivision expenditure. Subdivision expenditure is now being recognised on the balance sheet until sections are sold.

Waste Management ($196k) unfavourable against budget:

This variance is due to the progression of the glass crushing plant project, which Council authorised as per resolution 20.7.31 in August 2020.

Vehicle Fleet ($129k) unfavourable against budget:

Vehicle replacements are tracking well against the full year budget. At the end of April 2021, all vehicles have been purchased and should be delivered by the end of the year and remain within the full-year budget.

Information Services $86k favourable against budget:

Information services projects are behind budget. Projects include Enhanced Customer Experience Digital Services $23k and Enterprise Resource Planning Information Services $29k.

Libraries $20k favourable against budget:

A small favourable variance relating to the timing of library book and e-book purchases.

Parks and Recreation $414k favourable against budget:

Parks and recreation have a favourable variance of $414k. This variance is driven by a mixture of the timing of project budgets and contractor’s availability to perform the work. Projects include open spaces contract and Cromwell pool heat pump replacement.

Roading $1.02M favourable against budget:

Subsidised roading projects are behind, this is mainly due to delays to the capital programme. A month in the work programme has been lost due to the flooding event in January 2021.

Three Waters is $6.68M favourable against budget:

The favourable variance is due to the timing of construction projects. The main drivers include the Cromwell and Omakau water supply improvements and the Clyde wastewater reticulation network construction.

Internal Loans

Forecast closing balance for 30 June 2021 is $4.27M

OWED BY	Original Loan	1 July 2020 Opening Balance	30 June 2021 Forecast Closing Balance
Public Toilets - Roxburgh & Cromwell	670,000	513,510	491,239
Tarbert St Building	25,868	14,502	13,067
Alexandra Town Centre	94,420	54,766	49,759
Alexandra Town Centre	186,398	101,720	91,041
Alexandra Town Centre	290,600	170,912	155,412
Centennial Milkbar	47,821	24,252	21,284
Vincent Grants	95,000	28,500	19,000
Pioneer Store Naseby	21,589	12,236	10,949
Roxburgh Water	867,000	743,391	717,829
ANZ Bank Seismic Strengthening	180,000	154,337	149,030
Molyneux Pool	262,000	604,000	571,900
Maniototo Hospital	1,873,000	1,824,913	1,775,142
Alexandra Airport	218,000	211,407	204,485
Total	4,831,696	4,458,446	4,270,137

External Loans

The total amount of external loans at the beginning of the financial year 2020-21 was $241k. As at 30 April 2021, the outstanding balance was $198k. Council has received $42.6k in principal payments and $10.2k in interest payments.

3. Attachments

Appendix 1 - Financial Report March 2021 ⇩

Appendix 2 - Reserve Funds 2021 ⇩

Report author:	Reviewed and authorised by:

Donna McKewen	Leanne Macdonald
Accountant	Executive Manager - Corporate Services
19/04/2021	30/04/2021