Agenda of Cromwell Community Board meeting

Cromwell Community Board Agenda

29 March 2022

MINUTES OF A mEETING OF THE Cromwell Community Board
HELD VIA MICROSOFT TEAMS AND lIVE STREAMED
ON Tuesday, 15 February 2022 COMMENCING AT 2.02 pm

PRESENT: Ms A Harrison (Chair), Mr W Murray (Deputy Chair), Cr N Gillespie, Cr C Laws, Cr N McKinlay, Mr B Scott

IN ATTENDANCE: T Cadogan (Mayor), S Jacobs (Chief Executive Officer), L Macdonald (Executive Manager - Corporate Services), J Muir (Executive Manager - Infrastructure Services), L van der Voort (Executive Manager - Planning and Environment), S Righarts (Chief Advisor), G Robinson (Property and Facilities Manager), G Bailey (Parks and Recreation Manager), M Gordon (Parks Officer – Projects), A McDowall (Finance Manager), K McCulloch (Corporate Accountant), F Somerville (Roading Administration Assistant), M De Cort (Communications Coordinator), R Williams (Governance Manager) and W McEnteer (Governance Support Officer)

1 Apologies

Apology

Committee Resolution

Moved: Laws

Seconded: McKinlay

That the apology received from Mr Buchanan be accepted.

Carried

2 Public Forum

There was no public forum.

3 Confirmation of Minutes

Committee Resolution

Moved: Murray

Seconded: McKinlay

That the public minutes of the Cromwell Community Board Meeting held on 23 November 2021 be confirmed as a true and correct record.

Carried

4 Declaration of Interest

Members were reminded of their obligations in respect of declaring any interests. There were no further declarations of interest.

5 Reports

22.1.2 Cromwell Cemetery Development Plan

To approve the proposed Cromwell Cemetery Development Plan 2021 and set aside land for future Cemetery purposes.

After discussion it was agreed to amend part B of the resolution to account for any land that was currently under contract to be sold.

Note: Councillor Gillespie left the meeting at 2.22 pm and returned at 2.25 pm.

Committee Resolution

Moved: Gillespie

Seconded: McKinlay

That the Cromwell Community Board

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

B. Subject to any land currently under contract for disposal, classify the remainder of Lot 3 Deposit Plan 505292 as Local Purpose – (Cemetery) Reserve under the provisions of the Reserves Act 1977.

Subject to

· Public consultation in accordance with the Reserves Act 1977.

· The consent of the Minister of Conservation

C. Extend designation 200 (subject to the process under the Resource Management Act 1991) to include the newly classified area above.

D. Approves the proposed Cromwell Cemetery Development Plan 2021.

E. That funding be included in future long-term plans to provide for implementation of the plan.

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

Carried with Mr Murray recording his vote against

22.1.3 Road Name Approval Report - Highlands Park, Cromwell

To consider a request to name seven private roads in the second stage of the Highlands Park development.

Committee Resolution

Moved: Scott

Seconded: Gillespie

That the Cromwell Community Board

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

B. Agrees to approve seven road names. Roads to be named Quinns Way, Harrys Place, Heather Lane, Spillane Grove, Wee Close, Leitch Lane and Highlands Avenue.

Carried

22.1.4 Appointments to External Bodies

To consider the Board’s appointments to external organisations.

During discussion it was noted that Cromwell Resource Centre Trust had recently changed its name to Cromwell Community House.

Committee Resolution

Moved: Laws

Seconded: Murray

That the Cromwell Community Board

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

B. Agrees that the delegations register is updated to:

(i) reflect that the Cromwell Resource Centre Trust is known as Cromwell Community House,

(ii) reflect the increase in the number of liaison positions to the Cromwell District Museum from one to two,

(iii) reflect the role of the Board in the facilitation of the appointment of representatives to the Central Otago Sports Trust and the Cromwell Resource Centre Trust.

C. That a liaison position to the Cromwell and Districts Promotions Group is added to the list of external appointments.

D. That the Board work with the committee of Old Cromwell Inc to change its representative role to a liaison position.

Carried

22.1.5 2022-23 Annual Plan Budget and Fees and Charges Schedule

For the Cromwell Community Board to approve the draft budgets for inclusion in Council’s Annual Plan 2022-23 process along with the 2022-23 fees and charges schedule.

Committee Resolution

Moved: McKinlay

Seconded: Laws

That the Cromwell Community Board

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

B. Agrees the draft Cromwell Ward 2022-23 Annual Plan budgets and recommend to Council for inclusion in the 2022-23 Annual Plan.

C. Agrees to accept the Cromwell Ward 2022-23 Fees and Charges schedule and recommend to Council for inclusion in the 2022-23 Annual Plan.

Carried

6 Mayor’s Report

22.1.6 Mayor's Report

His Worship the Mayor gave an overview of his recent activities in the Cromwell ward before responding to questions.

Committee Resolution

Moved: Gillespie

Seconded: Murray

That the Cromwell Community Board receives the report.

Carried

7 Chair's Report

22.1.7 Chair's Report

The Chair gave an update on activities and issues since the last meeting:

· Gave a radio interview on Radio Central.

· Spoke at the Central Otago Vintage Car Club Veterans rally.

· Volunteered at the Goldfields Duathlon.

· Attended a presentation of potential architects for the Memorial Hall contract.

· Attended a Cromwell Museum Trust meeting.

· Spoke to residents at Goldenview Lifestyle village and updated them on recent CCB activities.

· Attended a Cromwell Youth Trust meeting.

· Had an interview with Tim Brown from Radio New Zealand regarding growth in Cromwell and housing.

· Attended an Advisory Group meeting with Jasmax about the Hall project.

· Noted that she had written her fortnightly column in the Cromwell and Districts News.

· Attended a recent Kāhui Ako meeting.

Committee Resolution

Moved: Harrison

Seconded: Laws

That the report be received.

Carried

8 Members' Reports

22.1.8 Members' Reports

Members gave an update on activities and issues since the last meeting:

Mr Scott reported on the following:

· Noted that a number of meetings and activities had been cancelled due to covid-19.

· Attended the Cherry Festival in Cromwell

· Attended the recent BMX championships and noted the approximately 370 competitors at the event.

· Attended a meeting of the Cromwell Golf Club committee. Noted that they were looking to hold a seniors championship in May at the Cromwell and Alexandra golf courses.

· Attended a meeting of Cromwell and Districts Promotions Group. Noted that the Light Up Cromwell festival was still planned for July and that the group were in the process of ensuring compliance with the red traffic light settings.

Councillor Laws reported on the following:

· Attended the December Council meeting and updated Members on issues discussed at that meeting.

· Noted that she had been an apology for a few things recently.

· Attended the January Council meeting and updated Members on issues discussed at that meeting.

· Attended a visit to the Alpha Street pumpstation where new infrastructure was being installed.

· Attended a Cromwell Community House meeting. Noted recent refurbishment of their facilities. Also noted the recent resignation of Dave Crosson as treasurer.

Councillor Gillespie reported on the following:

· Attended the end of year function for the Cromwell Fire Brigade.

· Attended the unveiling of the pest free Pisa sign.

· Noted that a new police officer was set to start in Cromwell as a result of an internal promotion.

· Attended a meeting of the Hearings Panel. Updated Members on the issues discussed there.

· Attended the December Council meeting

· Attended the Elected Members Christmas lunch.

· Attended the Lions senior citizens lunch.

· Attended the December meeting of the Hearings Panel.

· Attended an induction day in Queenstown for licencing committee members.

· Attended the recent funeral of Tom Landreth.

· Attended a Project Governance Group meeting.

· Attended the February Hearings Panel meeting.

· Attended a Local Advisory Committee meeting for Fire New Zealand.

Councillor McKinlay reported on the following:

· Advised that he had been contact with community members regarding culverts in Queensberry and the Cromwell Transfer Station. Noted that he had passed the complaint regarding culverts on to staff for action.

· Attended the December Audit and Risk meeting.

· Attended the January Council meeting. Updated Members on the Alexandra Airport Masterplan item that was discussed at that meeting

· Updated Members on the Clyde waste water project and noted that contractors were now installing lateral connections.

· Attended a visit to the Alpha Street pumpstation where new infrastructure was being installed Attended an Advisory Group meeting with Jasmax about the Hall project.

Mr Murray reported on the following:

· Noted that a number of events had been cancelled recently.

· Noted that the Cromwell Community Trust meeting was tonight.

· Attended the Christmas in the Park celebrations.

· Attended a Connect Cromwell meeting. He noted that a number of activities had been cancelled. He also noted that the disc golf course was due to be installed starting next week.

· Attended the Cherry Festival in Cromwell.

· Attended a meeting of the Lake Dunstan Charitable Trust. Noted that the group was about to start public consultation on their lake plan. The plan had been developed in conjunction with LINZ.

Committee Resolution

Moved: Scott

Seconded: Laws

That the report be received.

Carried

9 Status Reports

22.1.9 February 2022 Governance Report

To report on items of general interest, receive minutes and updates from key organisations and consider the legacy and current status report updates.

During discussion it was noted that the tender was currently out for interest in painting the Big Fruit. Mr Scott also updated Members that the fireworks event scheduled for March would not go ahead due to covid-19 restrictions.

Committee Resolution

Moved: McKinlay

Seconded: Gillespie

That the report be received.

Carried

10 Date of The Next Meeting

The date of the next scheduled meeting is 29 March 2022.

11 Resolution to Exclude the Public

Committee Resolution

Moved: McKinlay

Seconded: Gillespie

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
Confidential Minutes of Ordinary Board Meeting	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
22.1.10 - Trustee Position for Cromwell College Charitable Trust	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
22.1.11 - February 2022 Confidential Governance Report	s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

Carried

The public were excluded at 3.45 pm and the meeting closed at 4.03 pm.

29 March 2022

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5 Reports

22.2.2 Application to Resurvey and Increase Easement Plan Area

Doc ID: 571439

1. Purpose of Report

To consider increasing the footprint of an existing easement corridor on Lot 7 DP 433991 being part of the Sugarloaf Scenic Reserve.

Recommendations

That the Cromwell Community Board

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

B. Agrees to the area of the easement corridor on Lot 7 DP 433991 being resurveyed and increased in size (as shown in figure 6), to legalise the existing infrastructure and to allow an additional power cable to be installed to meet the applicant’s increased power requirements, subject to:

- The applicants obtaining all permits and consents associated with installing the additional cable.

- The applicants paying all costs associated with surveying the infrastructure and with the preparation and registration of the revised easement agreement.

- The Chief Executive approving the new easement plan and agreement.

- The Chief Executive being satisfied with any reinstatement/remediation works following any earthworks on the Reserve.

- The consent of the Minister of Conservation.

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

2. Background

The Sugarloaf Scenic Reserve (the Reserve) consists of six parcels of land being Lots 6 – 7 Deposited Plan (DP) 433991, Lots 15 – 16 DP 418764, Lot 206 DP 404040, and Section 1 Survey Office Plan (SO) 24210. It has a total area of just over 147 hectares.

With the exception of Section 1 SO 24210, which was purchased in 1999, the land is vested in Council as scenic reserve on deposit of each plan referenced above.

The land is zoned in the Central Otago District Plan and has an ‘Outstanding Natural Feature” notation.

An overview of the Reserve is shown below in Figure 1.

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Figure 1 – Over view of the Sugarloaf Scenic Reserve thatched in red.

The plateau above the Reserve is privately owned. The land is used for a variety of purposes including pip and stone fruit orchards, and for general cropping and farming.

In 2012 Mervyn and Louise Shaw (the applicants) purchased the land that is now contained in Records of Title 772768 and 649764.

The land contained in Record of Title 772758 is legally described as Lot 2 Deposited Plan (DP) 508107 (Lot 2). The land contained in Record of Title 649764 is legally described as Lot 1 DP 474100 (Lot 1). The two lots have an overall area of just over 122 hectares.

An overview of the applicant’s two lots, as they adjoin the Reserve, is shown below in Figure 2.

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Figure 2 – The Applicant’s land as it adjoins the Sugarloaf Scenic Reserve.

The applicants farm the land with the assistance of three pivot irrigators. Water for the three irrigators comes from a bore on Lot 6 DP 433991 (Lot 6). Water from the bore is pumped across Lot 6 to Lot 206 DP 404040 (Lot 206), up a natural gully, across Lot 7 DP 433991 (Lot 7), to a storage dam on the north eastern corner of Lot 2 (the applicant’s property).

An overview of the storage dam on the north eastern corner of Lot 2 and the bore site on Lot 206 is shown below in Figure 3.

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Figure 3 – Overview of Lot 2 as it adjoins the Sugarloaf Scenic Reserve

Prior to the Reserve vesting in Council, easements were registered on Records of Title 528988, 528989, and 417250. The easements are in favour of the applicant’s land, Telecom New Zealand Limited (Telecom), and Aurora Energy Limited (Aurora).

The easement in favour of the applicants provides them with the right to drain water over Lots 6 and 7, and Lot 206. The easement in favour of Telecom provides them with the right to convey telecommunications over Lots 6 and 7, and 206, and the easement in favour of Aurora provides them with the right to convey power over the same three Lots.

A plan of the existing easement corridor (not to scale) is outlined in red below in Figure 4.

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Figure 4 – Plan of Existing Easement Corridor (Not to Scale).

Earlier this year the applicants engaged a surveyor to resurvey their boundary and the easement corridor. The purpose of resurveying the boundary and the easement corridor was to enable a bigger power cable to be installed to meet the applicant’s increasing power requirements.

During the surveying it was noted that an electrical transformer belonging to Aurora had been installed approximately six metres outside the boundary of the easement corridor. On further inspection it was determined that a short span of power cable either side of the electrical transformer also sat outside the easement corridor.

A plan of the transformer and the span of cables which sit outside the easement corridor is shown below in Figure 5.

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Figure 5 – Plan of Infrastructure which sits outside the Easement Corridor.

To rectify the matter, the applicants have now applied to have the area of the easement corridor on Lot 7 DP 433991 resurveyed and increased in size as shown below in figure 6.

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Figure 6 – Planned Addition to Easement Corridor (Not to Scale).

3. Discussion

The applicants were not aware that the transformer and two spans of cable were installed outside the easement corridor until the matter was bought to their attention by the surveyor. While they cannot explain why this has occurred, they have suggested it may have been due to one of the following reasons:

1. A survey peg may have been knocked out accidently during installation by one of the contractors and/or a rock may have rolled onto a peg

2. With the area marked AC [easement corridor] being very close to the terrace tread and very much rolling away over the hill, they [the electrical contractors] may have felt putting their Hiab truck lifting the transformer in place was either too dangerous or just simply mistakenly put the transformer 6m outside of the correct area, either way this is the result.

To rectify the matter, the applicants offered two solutions. They are to:

1. Dig up the areas around the transformer/cables and move this infrastructure back into the area marked AC [easement corridor], on the easement plan, or;

2. Enlarge the easement area to include the existing transformer/cable and the new cable which is to be installed.

While solution 1 sounds straightforward, the physical works associated with moving the infrastructure into the easement corridor are considerable. Those works would include:

- uplifting the transformer from the existing pad,

- creating a new pad for the transformer,

- reinstalling the existing transformer on the new pad,

- exposing the cables (opening the existing trench),

- digging a new trench,

- relaying the existing cable,

- installing the new cable, and,

- remediating the disturbed areas.

In comparison, the physical works associated with solution 2 are relatively minor. Those works would include:

- reopening the original trench,

- installing the new cable, and,

- remediating the disturbed area.

Other works associated with solution two would include:

- resurveying the easement corridor,

- drawing up a new easement plan and agreement, and,

- registering the new easement instrument on the relative record of title.

Practically speaking, solution 2 will have the least impact as this will not disturb the natural layout of the existing ground, particularly around the edge of the terrace tread.

Reserves Act

The purpose of the Reserves Act 1977 (the Act) 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.

Scenic Reserves are afforded the highest level of protection under the Act 1977 (the Act). In particular, section 19(1)(a) of the Act states that Scenic Reserves should be protected and preserved:

…in perpetuity for their intrinsic worth and for the benefit, enjoyment, and use of the public…

Section 48 of 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 rights of way and other easements over any part of a reserve.

Section 48(1)(d) of the Act further states that an easement may be granted over a reserve or any part thereof for:

an electrical installation or work, as defined in section 2 of the Electricity Act 1992…

Section 2 of the Electricity Act 1992 describes and 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, or used to generate or store electricity.

Any easement or other right granted under section 48 is granted subject to section 48(2) 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 granting 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.

While the rights of the public to walk and pass over the reserve are not permanently affected by underground pipes or cables, it could be argued that the transformer, which sits above the ground, does permanently affect the reserve. However, the reserve was vested with the easement in place and the transformer has been located outside of the easement. It is not the presence of the transformer that is the issue, but its location.

On that basis, legalising the existing transformer by resurveying the easement corridor is the most pragmatic solution with public consultation not being required in this instance.

4. Financial Considerations

All costs associated with the proposal are payable by the applicants.

5. Options

Option 1 – (Recommended)

To agree to the area of the easement corridor on Lot 7 DP 433991 being resurveyed and increased in size (as shown in figure 6), to legalise the existing infrastructure and to allow an additional power cable to be installed to meet the applicants increased power requirements, subject to:

- The applicants obtaining all permits and consents associated with installing the additional cable.

- The applicants paying all costs associated with surveying the infrastructure and with the preparation and registration of the revised easement agreement.

- The Chief Executive approving the new easement plan and agreement.

- The Chief Executive being satisfied with any reinstatement/remediation works following any earthworks on the Reserve.

- The consent of the Minister of Conservation.

Advantages:

· Recognises that the infrastructure was provided for prior to the land being vested in Council as a reserve

· The infrastructure that sits outside the existing easement corridor will be legalised

· Will have the least effect on the Reserve

· Is consistent with the provisions of the Reserves Act 1977

Disadvantages:

· A larger area of Lot 7 DP 433991 will be subject to the easement

Option 2

To not agree to increase the footprint of the existing easement corridor:

Advantages:

· A larger area of Lot 7 DP 433991 will not be subject to the easement

Disadvantages:

· Does not acknowledge that the infrastructure was provided for prior to the land being vested in Council as a reserve

· The infrastructure that sits outside the existing easement corridor will not be legalised.

· Does not recognise the provisions of the Reserves Act 1977

6. Compliance

Local Government Act 2002 Purpose Provisions	While the decision does not relate to a Council service or activity, the granting of the easement would legalise the existing infrastructure which is consistent with the provisions of the Reserves Act.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The granting of an easement over a reserve vested in Council is for an electrical installation (or to legalise an existing installation) is consistent with section 48(1)(d) of the Reserves Act 1977.
Considerations as to sustainability, the environment and climate change impacts	The recommended option has been chosen as it will have the least impact on the Reserve.
Risks Analysis	Lot 7 DP 433991 is part of the Sugarloaf Scenic Reserve which is classified as an Outstanding Natural Feature. As such it must be afforded the highest level of protection and reinstatement. This means that the trenching and construction should be undertaken by professional operators with the reinstatement/remediation works being approved to the satisfaction of the Chief Executive Officer.
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 consultation in accordance with the Reserves Act 1977 will not be required in this instance as the above ground infrastructure was provided for prior to the land vesting in Council as a reserve

7. Next Steps

1. Community Board approval 29 March 2022

2. Minister of Conservation’s consent requested 20 April 2022

3. Applicants advised of outcome Late April 2022

4. Works commence May 2022

8. Attachments

Nil

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Team Leader - Statutory Property	Executive Manager - Planning and Environment
1/03/2022	16/03/2022

29 March 2022

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22.2.3 Proposal to dispose of part of Record of Title OT13B/860 to Waka Kotahi New Zealand Transport Agency as agents of the Crown.

Doc ID: 572101

1. Purpose of Report

To consider disposing of approximately 2720 square metres of Record of Title OT13B/86, for the purpose of constructing a roundabout at the intersection of State Highway 8B and Barry Avenue, and to allow Waka Kotahi to exclude the public from a portion of Section 126 Block III Cromwell Survey District during construction of the roundabout and new footpaths.

Recommendations

That the Cromwell Community Board

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

B. Agrees to:

1. Dispose of approximately 2720 square metres of Record of Title OT13B/86, being the parcels marked “A” and “B” as identified in figure 2, to:

- Waka Kotahi New Zealand Transport Agency as agents of the Crown.

- In accordance with the provisions of the Public Works Act.

- For $184,000 (One Hundred and Eighty Four Thousand Dollars) plus GST (if any).

Subject to:

- The income being paid to the Cromwell Property General Account and held for the purpose of for the purpose of purchasing, enhancing, and//or maintaining, land within the Cromwell ward.

2. Agrees to allow Waka Kotahi New Zealand Transport Agency to construct a secure compound around the area marked “E”, for the duration of the construction of the footpaths as shown in figure 3, at no charge.

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

2. Background

Report for Information

At their meeting of 15 June 2021, the Cromwell Community Board (the Board) received a Report for Information titled ‘Roundabout Construction - Intersection State Highway 8B and Barry Avenue’.

The purpose of the report was to inform the Board of the Crown’s intention to acquire approximately 2960 square metres of the land contained in Record of Title OT13B/86.

Record of Title OT13B/86 consists of three parcels of land. They are Sections 122, 124, and 126, Block III Cromwell Survey District as shown below in figure 1. It has an overall area of approximately 49,568 square metres (4.9568 hectares).

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Figure 1 – Overview of Record of Title OT13B/86 (Sections 122,124, and 126, Block III Cromwell Survey District)

The purpose of the acquisition is to enable the construction of a roundabout at the intersection of State Highway 8B and Barry Avenue.

The roundabout is a public work which will provide access to the Wooing Tree development. It will be constructed by Waka Kotahi New Zealand Transport Agency (Waka Kotahi), the managers of the national roading network, as agents of the Crown.

A copy of the Report for Information dated 15 June 2021 is attached as Appendix 1.

3. Discussion

Authority to Acquire

When private land is required for a public work, it may be acquired by the requiring authority pursuant to the provisions of the Public Works Act 1981.

In this instance, the construction of the roundabout is the public work. The acquiring authority is Waka Kotahi.

The report attached as Appendix 1 states that approximately 2960 square metres of the land contained in Record of Title OT13B/86 is required by Waka Kotahi to enable the roundabout to be constructed. This has since been reviewed with the area of the land being taken now being slightly smaller at approximately 2720 square metres.

The Public Works Act 1981 provides for the land to be acquired compulsorily, or by agreement. It also provides for compensation to be paid to the party from whom the land is being acquired.

A copy of the revised (preliminary) plan of the land being acquired by Waka Kotahi is shown below in figure 2.

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Figure 2 – Revised (Preliminary) Plan of the ‘Wooing Tree’ Roundabout.

The parcels marked “A” and “B” will be acquired from Record of Title OT 13B/86. They have a revised total area of approximately 2720 square metres.

The parcel marked “C” has a revised area of approximately 2950 square metres. It will be taken from Section 3 Survey Office Plan (SO) 461514 (Section 3). Section 3 is owned by the developers of the Wooing Tree residential subdivision.

Acquisition and Compensation

Waka Kotahi have not formally notified Council of their intention to acquire the land. Instead, the land is to be taken by negotiation.

To enable the negotiations to take place, Quotable Value were engaged to value the land on a ‘before and after’ basis pursuant to the provisions of the Public Works Act 1981 (the Act).

This means the land will be valued as it is now (before acquisition), then again at the reduced area (after acquisition). Compensation is assessed and paid as the difference between the two values being the overall reduction in the market value.

The guiding principle of the Act is to ensure that the property owner is no better or worse off after the acquisition and that the acquiring authority is also no worse off due to the specific requirement for the property to be acquired.

Valuation Summary

Quotable Value (QV) valued the land in January 2022.

QV assessed the ‘before’ acquisition value of Record of Title OT13B/86 (at 4.9568 hectares) to be $3,370,000 (Three Million Three Hundred and Seventy Thousand Dollars) plus GST (if any).

QV assessed the ‘after’ acquisition value of Record of Title OT13B/86 (at 4.6848 hectares) to be $3,186,000 (Three Million One Hundred and Eighty Six Thousand Dollars) plus GST (if any).

This mean the compensation payable for the land being acquired (0.2720 hectares/2072 square metres) is $184,000 (One Hundred and Eighty Four Thousand Dollars) plus GST (if any).

Footpaths

As well as valuing the land being acquired for the roundabout, QV were also instructed to provide a market rental valuation of the area marked “E”. The area marked “E is shown below in figure 3. It has an area of approximately 0.4590 hectares.

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Figure 3 – Area E (Footpath Construction Zone)

In addition to the roundabout, Waka Kotahi are constructing footpaths through the area marked “E”. Waka Kotahi plan to erect a secure compound around the area marked “E” while the new footpaths are constructed. This will provide for the safety of both the contractors and the public.

QV assessed the market rental value of the area marked “E” at $4,583 per month (Four Hundred and Eighty Three Dollars) plus GST (if any), however.

As the footpaths will improve safety and connectivity between the Wooing Tree development and the Cromwell township, it is not recommended that a rental be charged instance.

Acquisition by Negotiation

Landowners may agree to sell their land to the Crown. In such a case both parties must negotiate and agree on appropriate terms and conditions including the amount of compensation payable under the Public Works Act.

The first step in the negotiation process is to determine if the value of the land. The valuation forms the basis for negotiation and agreement on compensation.

Other factors which can be considered during the negotiation process can also include:

- Why the land is being acquired.

- What the land is being acquired for; and,

- Who the acquiring party is

In this instance:

- The land is being acquired for roading purposes, to facilitate the construction of a roundabout at the intersection of State Highway 8B and Barry Avenue.

- The roundabout will provide access to the Wooing Tree development. Its construction is a condition of the Wooing Tree’s resource consent.

- The acquiring party is Waka Kotahi as agents of the Crown.

While the construction of the roundabout is a condition of the Wooing Tree’s resource consent, it is Waka Kotahi who determine the size and design of the roundabout. This is because Waka Kotahi are the managers of the national State Highway roading network.

Waka Kotahi are constructing a single lane roundabout now but are acquiring enough land to enable construction of a double lane roundabout in the future. This is not a requirement of the resource consent but a requirement of Waka Kotahi. Acquiring the extra land will future proof the roundabout by allowing Waka Kotahi to construct an extra lane at a later date.

While future proofing the roundabout by taking the extra land is a practical approach, it does mean that the value of the land is higher than might otherwise have been attributed to the Wooing Tree roundabout.

In addition to the taking of the extra land increasing costs associated with the project, Waka Kotahi, and the Wooing Tree developers both believe that there is an element of public benefit associated with the overall construction of the roundabout. On that basis they have asked Council to give consideration to those contributing factors when negotiating the sum of compensation payable.

4. Financial Considerations

Roundabout Construction

Waka Kotahi as managers of the national roading network will pay all costs associated with the construction of the roundabout.

As the acquiring party they are also required to pay all costs associated with the acquisition of the required land. This includes:

- Compensation for the land being taken.

- Valuation costs.

- Council’s (reasonable) legal fees.

- Rent for land under the secure compound.

It is anticipated that Waka Kotahi will recover many of the costs associated with the initial

project from the Wooing Tree developers.

Sale of the Land

Record of Title OT13B/86 is fee simple (freehold) land. While Section 126 is commonly referred to as the ‘Big Fruit’ Reserve, held is fee simple title. It consists of three parcels of land. They are Sections 122, 124, and 126, Block III Cromwell Survey District as shown below in figure 1. It has an overall area of approximately 49,568 square metres (4.9568 hectares).

As shown in figure 1, Record of Title OT13B/86 consists of three parcels of land. They are Sections 122, 124, and 126, Block III Cromwell Survey District. While Section 126 is commonly referred to as the ‘Big Fruit’ Reserve, the land is not a reserve.

Sections 122 and 126 are identified on District Plan Maps 13A and 14. They are both tagged Designation 82. Designation 82 is “Amenity Planting Purposes”. The underlying zoning is Business Resource Area.

As the land is part of a fee simple title, the proceeds of the sale will be paid into the Cromwell Property General Account. They can then be used for the purpose of purchasing, enhancing, and/or maintaining, other Council owned land within the Cromwell ward.

5. Options

Option 1 – (Recommended)

To agree to:

1. Dispose of approximately 2720 square metres of Record of Title OT13B/86, being the parcels marked “A” and “B” as identified in figure 2, to:

- Waka Kotahi New Zealand Transport Agency as agents of the Crown.

- In accordance with the provisions of the Public Works Act.

- For $184,000 (One Hundred and Eighty Four Thousand Dollars) plus GST (if any).

Subject to:

- The income being paid to the Cromwell Property General Account and held for the purpose of for the purpose of purchasing, enhancing, and//or maintaining, land within the Cromwell ward.

2. To agree to allow Waka Kotahi New Zealand Transport Agency to construct a secure compound around the area marked “E”, for the duration of the construction of the footpaths as shown in figure 3, at no charge.

Advantages:

· Recognises the provisions of the Public Works Act 1981.

· Is consistent with Council’s Roading Policies and with other Council initiated road stoppings.

· Is consistent with the agreement to dispose of the land being taken to construct the roundabout at the intersection of State Highways 6 and 8B (Junction of the Highways).

· The sale proceeds will be retained for the purpose of purchasing, enhancing, and/or maintaining, land within the Cromwell ward.

· Provides for the safety of both contractors and the public.

Disadvantages:

· There will be a loss of greenspace.

· The public will be excluded from the area marked “E” while the footpaths are constructed.

Option 2

To agree to:

1. Dispose of approximately 2720 square metres of Record of Title OT13B/86, being the parcels marked “A” and “B” as identified in figure 2, to:

- Waka Kotahi New Zealand Transport Agency as agents of the Crown.

- In accordance with the provisions of the Public Works Act.

- For $92,000 (Ninety-Two Thousand Dollars) plus GST (if any), which is half of the value of the land.

Subject to:

- The income being paid to the Cromwell Property General Account and held for the purpose of for the purpose of purchasing, enhancing, and//or maintaining, land within the Cromwell ward.

2. To agree to allow Waka Kotahi New Zealand Transport Agency to construct a secure compound around the area marked “E” for the duration of the construction of the footpaths as shown in figure 3, at no charge.

Advantages:

· Recognises the provisions of the Public Works Act 1981

· Recognises the public benefit associated with construction of the roundabout and the footpaths

· The sale proceeds will be retained for the purpose of purchasing, enhancing, and/or maintaining, land within the Cromwell ward

Disadvantages:

· Is not consistent with Council’s Roading Policies and with other Council initiated road stoppings

· Is not consistent with the agreement to dispose of the land being taken to construct the roundabout at the intersection of State Highways 6 and 8B (Junction of the Highways).

· Does not reflect the true value of the land

· There will be a loss of greenspace

· The public will be excluded from the area marked “E” while the footpaths are constructed

Option 3

To agree to dispose of approximately 2720 square metres of Record of Title OT13B/86, being the parcels marked “A” and “B” as identified in figure 2, and to allow Waka Kotahi to occupy the area marked “E” at sums determined by the Cromwell Community Board.

Advantages:

· Recognises the provisions of the Public Works Act 1981

· Presents an opportunity to consider the public benefits associated with construction of the roundabout and the footpaths

· Presents an opportunity to charge rent for the area marked “E”

Disadvantages:

· May not be consistent with Council’s Roading Policies or with other Council initiated road stoppings

· May not be consistent with the agreement to dispose of the land being taken to construct the roundabout at the intersection of State Highways 6 and 8B (Junction of the Highways)

· May not reflect the true value of the land

· Charging rent for the area marked “E” during construction of the footpaths does not recognise the wider benefit of the project to the community

· There will be a loss of greenspace

· The public will be excluded from the area marked “E” while the footpaths are constructed

Option 4

To not agree to the proposal to dispose of approximately 2720 square metres of Record of Title OT13B/86’ to Waka Kotahi New Zealand Transport Agency.

Advantages:

· There will be no loss of greenspace.

Disadvantages:

· Does not recognise the provisions of the Public Works Act 1981.

· Will not facilitate the construction of a roundabout at the intersection of State Highway 8B and Barry Avenue.

· Will not enable traffic congestion at the intersection during peak periods to be addressed.

6. Compliance

Local Government Act 2002 Purpose Provisions	The Local Government Act 2002 does not apply to this decision. The land is being acquired in accordance with the provisions of the Public Works Act 1981.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Council has no policy regarding the sale and/ or disposal of land required for public works.
Considerations as to sustainability, the environment and climate change impacts	The disposal of the land to Waka Kotahi will have minimal environmental and climate change impacts. Construction of the roundabout will facilitate more efficient use of the transport network.
Risks Analysis	There is no risk associated with the recommendation which is consistent with the provisions of the Public Works and Reserves Acts.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered with none of the criteria being met or exceeded. On completion of the disposal, the Crown will publish the vesting of the land as national highway in the New Zealand Gazette.

7. Next Steps

1. Community Board approval 29 March 2022

2. Disposal initiated April 2022

3. Works completed Mid – Late 2023

4. Gazettal and settlement effected; land transferred Late 2023

8. Attachments

Appendix 1 - Copy of the Report for Information dated 15 June 2021. ⇩

Report author:	Reviewed and authorised by:

Linda Stronach	Julie Muir
Team Leader - Statutory Property	Executive Manager – Infrastructure Services
7/03/2022	17/03/2022

29 March 2022

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22.2.4 Proposed Road Stopping - Part Melmore Terrace

Doc ID: 566083

1. Purpose of Report

To consider stopping part of Melmore Terrace, Cromwell in accordance with the provisions of the Public Works Act 1981, to maximise the design options and overall development of the new Cromwell Memorial Hall/Events Centre.

Recommendations

That the Cromwell Community Board

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

B. Recommends to Council to approve the proposal to stop an unformed portion of Melmore Terrace, being approximately 1640 square metres as shown in figure 4, subject to:

- All costs, including the land at valuation, being paid from the Cromwell Memorial Hall/Events Centre Project budgets.

- The land being amalgamated with Record of Title OT11A/234.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered on the new Record of Title.

- The final survey plan being approved by the Chief Executive Officer.

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

2. Background

Melmore Terrace

Melmore Terrace (the Road) runs south west off Inniscort Street. It terminates at a cul-de-sac at the entry to the historic Old Cromwell Town village precinct.

The Road is formed and sealed with footpaths constructed along the length of the northern boundary. There is a short span of footpath and some parking constructed on the southern boundary between the Cromwell Memorial Hall and the Old Cromwell Town village precinct.

The Road is approximately 845 metres long. Its width varies from about 20 to 30 metres. An overview of the Road is shown below in figure 1.

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Figure 1 – Overview of Melmore Terrace

The Cromwell Memorial Hall (the Hall) is located at 36 Melmore Terrace. The parcel of land which the Hall sits on is described as Part Lot 1 Deposited Plan (DP) 19148 (Part Lot 1).

Part Lot 1 has an area of approximately 4658 square metres. It is a long irregularly shaped parcel of land. The northern boundary of Part Lot 1 adjoins Melmore Terrace. The length of the mutual boundary is approximately 132 metres as shown below in figure 2.

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Figure 2 – The 132 Metre Mutual Boundary of Melmore Terrace and Part Lot 1 DP 19148

The legal road immediately to the north of the mutual boundary, between the Hall and the footpath, has been developed in conjunction with the Hall. The development on the legal road includes carparking, the entrance to the Hall, and gardens. The development is an encroachment.

The area of the encroachment, which is shown in red below in figure 3, is approximately 1640 square metres.

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Figure 3 – Encroachment/Area of Development in Front of Memorial Hall

In 2021, following consultation under the 2021 – 2031 Long Term Plan, demolition of the Hall and construction of a new Hall/Events Centre in its place was approved.

The new Hall/Events Centre will be approximately double the size of the existing Hall. In addition to the new Hall/Events Centre, a new Museum may be constructed on the same site at a later date.

To maximise the design and development potential of Part Lot 1, it is proposed that the 1640 square metres of legal road immediately to the north of the mutual boundary, be stopped and amalgamated with record of title OT11A/234 (Part Lot 1).

An overview of the proposed stopping is shown below in figure 4.

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Figure 4 – Overview of Proposed Stopping

3. Discussion

Roading Network

As shown in figure 5, the legal Road in front of the Hall is approximately 30 metres wide. The formed carriageway covers about 11 metres of that width with the footpaths covering about 7 metres between them.

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Figure 5 – Overview of the Legal Road Width in Front of the Hall

As the proposed stopping does not include the formed carriageway or the footpaths, the proposal will have no effect on the existing roading network.

Utility Networks

Aurora Energy Limited (Aurora) have both low and high voltage underground cables running through Part Lot 1.

The low voltage cable (dashed blue below in figure 6), connects the Hall and a streetlight to the electricity network in Melmore Terrace. Aurora do not require an easement over the low voltage cable as the point of supply will be unaffected by the proposed stopping.

The high voltage cable (dashed red) runs from a transformer on the adjacent Town and Country site to an overhead line in Monaghan Street. Aurora will require an easement to protect the span of the high voltage cable that passes through Part Lot 1.

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Figure 6 – Overview of Aurora Infrastructure

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 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).

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 Public Works Act 1981 provides for legal road to be stopped, sold, and amalgamated with an adjacent title. In this instance the stopped road would be amalgamated with Record of Title OT11A/234.

4. Financial Considerations

Council’s Roading Policy determines that the applicant is responsible for all costs associated with the road stopping. This includes purchase of the land at valuation as prescribed in the Public Works Act 1981.

In December 2021, Quotable Value Limited (QV) determined the value of the road proposed for stopping to be $550,000 plus GST (If any).

A summary of the estimated total costs is outlined below in table 1.

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Table 1 – Estimate of Costs Associated with the Proposed Stopping

All costs associated with the proposed stopping will be paid from the existing Cromwell Memorial Hall/Events Centre Project budgets.

5. Options

Option 1 – (Recommended)

To recommend to Council to approve the proposal to stop an unformed portion of Melmore Terrace, being approximately 1640 square metres as shown in figure 4, subject to:

- All costs, including the land at valuation, being paid from the Cromwell Memorial Hall/Events Centre Project budgets.

- The land being amalgamated with Record of Title OT11A/234.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered on the new Record of Title.

- The final survey plan being approved by the Chief Executive Officer.

Advantages:

· The additional area of land will maximise the design options and overall development of the new Cromwell Memorial Hall/Events Centre

· The stopping will have no impact on the existing formed carriageway or footpaths

· Aurora’s infrastructure will be protected by registration of an easement in their favour

· Income received will be used to address other public roading issues

· Recognises the provisions of Council’s Roading Policy

· The proposal is consistent with the Public Works Act 1981

Disadvantages:

· Will increase costs associated with the Cromwell Memorial Hall/Events Centre Project

Option 2

To not recommend to Council to approve the proposal to stop an unformed portion of Melmore Terrace.

Advantages:

• Costs associated with the Cromwell Memorial Hall/Events Centre will not increase.

Disadvantages:

· Additional land will not be available for use in conjunction with the new Cromwell Memorial Hall/Events Centre

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

6. 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.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	All costs associated with the stopping will be paid from the existing Cromwell Memorial Hall/Events Centre Project budget. Funds received from the disposal will then be available to address other public roading issues.
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 portion of unformed road. Increasing the footprint of the land available for the purpose of constructing the new Cromwell Memorial Hall/Events Centre (and possible museum) will assist with the future sustainability of the site.
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.

7. Next Steps

1. Community Board approval February 2022

2. Council approval March 2022

3. Survey and LINZ Accredited Supplier engaged March/April 2022

4. Survey Plan approved Mid to late 2022

5. Gazette notice published Late 2022

8. Attachments

Nil

Report author:	Reviewed and authorised by:

Linda Stronach	Quinton Penniall
Team Leader – Statutory Property	Acting Executive Manager – Infrastructure Services
10/02/2022	15/03/2022

29 March 2022

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22.2.5 Closing of the Cromwell Memorial Hall

Doc ID: 571179

1. Purpose of Report

To consider the closing of the Cromwell Memorial Hall and the project delivery process for the Cromwell Town Hall/Events Centre Project.

Recommendations

That the Cromwell Community Board

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

B. Approves the Cromwell Memorial Hall closure date of 2 May 2022 as well as the proposed demolition phase start date of July 2022.

C. Approves Cromwell Community Board and Project Advisory Group engagement and approval process during the project (Tables 2 and 3).

2. Background

A report outlining the timeframe and structure of the Cromwell Memorial Memorial/Event Centre project was presented to the Board and approved at the July 2021 meeting. This report outlined the different stages of this project and the timeframes to complete them. This original report and timeframe (Table 1) has now been reviewed and adjusted as recommended by the preferred design supplier Jasmax. The new recommended design and construction process timeline is outlined in tables 2 and 3 and shows the Cromwell Community Boards 2022 meetings and the approval stages the board will be engaged for.

The programme from this report is detailed below:

Table 1:

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The report is attached as Appendix 1.

3. Discussion

As shown in Phase 1 of the project timeline (Table 1), the project team and architect, Jasmax, need to scope the project and develop concept plans. This will involve an investigation of the current state of the land on which the hall is erected and whether any potential issues need resolving before the construction phase start date of early 2023. The proposed closure date of the Memorial Hall is 2 May 2022. This will allow the ANZAC ceremony to take place at the hall and allow engagement with the hall’s current users, and give them time to make alternative arrangements for their activities. This date will also give three months to carry out asbestos removal before the demolition phase which is planned to occur in July/August 2022.

A July/August demolition date will allow for an investigation of the land where the hall is currently situated prior to Phase 2 – project construction.

Below are the design/construction timelines for 2022 as well as the Board approval timelines.

Table 2:

Timeline

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Table 3:

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A workshop with the Board and consultants is being planned to finalise scope of the project in terms of scale, design and costings.

Regular communications are planned to update the community on progress. All communications will be distributed to the Board for feedback before releasing to the community.

4. Options

Option 1 – (Recommended)

The Board approves:

· The Cromwell Memorial Hall closure date of 2 May 2022 as well as the proposed demolition phase start date of July 2022.

· Cromwell Community Board and Project Advisory Group engagement and approval process during the project (Tables 2 and 3).

Advantages:

· Allows for the design process as recommended by architect to progress without delays

· Allows demolition and construction phases to stay on track with projected timelines

· Provides clear process for engagement and approval

· Earlier closure date provides more time for asbestos removal and site investigation

Disadvantages:

· The Cromwell Memorial Hall facility will no longer be available for use

Option 2

The Board declines to approve:

· The Cromwell Memorial Hall closure date of 2 May 2022 as well as the proposed demolition phase start date of July 2022.

· Cromwell Community Board and Project Advisory Group engagement and approval process during the project (Table 2 and 3).

Advantages:

· The Cromwell Memorial Hall facility will be available for a longer period for use

Disadvantages:

· A later closure date will cause delays in the design, demolition and construction process

· Declining to approve the proposed engagement and approval process will not allow the demolition and construction phases to stay on track with projected timelines

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social and cultural wellbeing of communities, in the present and for the future by delivering a hall/events centre to the community which will enable a range of events and community use and a hub for arts and culture.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	This decision is consistent with the “Eye to the Future” Cromwell Masterplan and the Long-term Plan.
Considerations as to sustainability, the environment and climate change impacts	The construction of the Hall/Events Centre on the existing site will not impact on sustainability of the environment.
Risks Analysis	Risks will be managed by project planning and close project management.
Significance, Consultation and Engagement (internal and external)	There has been significant consultation through the “Eye to the Future” Cromwell Masterplan and the project and funding was included in the consultation document for the 21/31 Long-term Plan. All communications will be distributed with the Board for feedback before releasing to the community.

6. Next Steps

· Progress as per approved programme of work

7. Attachments

Appendix 1 - Appendix 1 - 20210729 Cromwell Town Hall_Events Centre Project Report.DOCX ⇩

Report author:	Reviewed and authorised by:

Garreth Robinson	Louise van der Voort
Property and Facilities Manager	Executive Manager - Planning and Environment
15/03/2022	16/03/2022

29 March 2022

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22.2.6 Cromwell Financial Report for the Period Ending 31 December 2021

Doc ID: 568278

1. Purpose

To consider the financial performance overview as at 31 December 2021.

Recommendations

That the report be received.

2. Background

The operating statement for the three months ending 31 December 2021 show a favourable variance of $140k against the revised budget.

2021/22	AS AT 31 DECEMBER 2021					2021/22
Full Year		YTD	YTD	YTD		Full Year
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
	Income:
489	Internal Interest Revenue	103	244	(141)	˜	489
7,536	Land Sale Proceeds	-	-	-	˜	900
618	User Fees & Other	303	309	(6)	˜	618
-	Reserves Contributions	58	-	58	˜	-
-	External Interest & Dividends	4	-	4	˜	-
3,093	Rates	1,631	1,631	-	˜	3,093
-	Other Capital Contributions	-	-	-	˜	-
11,736	Total Income	2,099	2,184	(85)	˜	5,100

	Expenditure
130	Rates Expense	127	130	3	˜	130
7,536	Cost of Sale of Land	2	-	(2)	˜	900
47	Professional Fees	29	31	2	˜	47
905	Cost Allocations	475	471	(4)	˜	905
263	Fuel & Energy	143	132	(11)	˜	263
197	Grants	109	98	(11)	˜	197
245	Other Costs	68	115	47	˜	252
541	Contracts	250	275	25	˜	541
65	Internal Interest Expense	(15)	31	46	˜	65
133	Building Repairs and Mtce.	66	74	8	˜	142
729	Staff	292	354	62	˜	718
44	Members Remuneration	18	22	4	˜	44
736	Depreciation	312	368	56	˜	736
11,571	Total Expenses	1,876	2,101	225	˜	4,940
165	Operating Surplus / (Deficit)	223	83	140	˜	160

Income for period ending 31 December 2021:

Operating income reflects an unfavourable variance to the revised budget of ($85k).

· Internal interest revenue has an unfavourable variance of ($141k). This is due to low market interest rates plus property purchases post setting the Long-term Plan budget, resulting in lower cash in the bank.

· User fees and other has a small unfavourable variance of ($6k). A breakdown of this is provided in the table below. The small unfavourable variances across rentals and hires, swimming pool and cemeteries and for the majority is offset by the receiving of other miscellaneous income. Other miscellaneous income is primarily on-charging of rates and electricity charges.

· Reserves contributions has a favourable variance of $58k. These are difficult to gauge when setting budgets and are dependent on developers’ timeframes.

2021/22	User Fees and Other Income					2021/22
Full Year		YTD	YTD	YTD		Full Year
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
114	Other Misc. Income	71	56	15	˜	114
238	Rentals & Hires	112	120	(8)	˜	238
250	Cromwell Pool / Swim School	117	125	(8)	˜	250
16	Cemeteries	3	8	(5)	˜	16
618	Total User Fees Income	303	309	(6)		618

Expenditure for period ending 31 December 2021:

Expenditure has a favourable variance of $225k against the revised budget. These variances are detailed below:

· Fuel and energy has an unfavourable variance against budget by ($11k). Gas costs for running the pools heating system have increased. When the new heating unit is commissioned, there will be savings created from the reduction of gas use.

· Grants are unfavourable against budget by ($11k). This is due to timing of the promotions grants and the budget. Of the $106k promotions grants annual budget, year-to-date $79k has been allocated for promotional activities. For the general grants year-to-date, $5k has been spent of the $50k general grants annual budget with a further $30k being issued to the Cromwell Museum Trust for payment of services from an annual budget of $40k. In addition there is a $5k credit against the Bannockburn Hall from 2021.

· Other costs are favourable to budget by $47k. The other expenses are more needs-based and will vary against budget from time to time. Water charges are lower than expected by $15k and chemicals by $9k.

· Contracts are favourable to budget by $25k. This is due to the timing of the maintenance programme.

· Internal interest expense has a favourable variance of $46k. Low market interest rates are driving this variance.

· Staff costs have a favourable variance of $62k. This is due to the seasonal staff recruitment and associated costs.

· Depreciation has a favourable variance of $56k. The Cromwell Pool’s depreciation is higher than budget by ($118k). This is offset by lower-than-expected deprecation in park assets of $151k. The districts pools were revalued as at 30 June 2020 as part of the parks and reserves valuation. After the pool values increased significantly, Council elected to phase the rating of the increased depreciation over the next three years to reduce the impact of rates. This will appear as an over-spend due to not being fully funded through rates.

Capital Expenditure:

Capital expenditure for the period ending 31 December 2021 has a year-to-date favourable variance of $3.39M. The actual CAPEX spend ended with 4% of the total revised budget being spent.

2021/22	AS AT 31 DECEMBER 2021					2021/22
Full Year		YTD	YTD	YTD		Full Year
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
	Parks and Reserves:
4	Cromwell Reserves - Playground equipment	-	11	11	˜	13
107	Cromwell Reserves - Irrigation	2	129	127	˜	167
21	Cromwell Reserves - Landscaping	2	15	13	˜	30
-	Cromwell Reserves - Recreation Equipment	-	-	-	˜	40
35	Cromwell Reserves - Fencing & Bins	4	10	6	˜	134
5	Cromwell - Fencing	-	-	-	˜	5
-	Cromwell - Lighting	-	5	5	˜	5
15	Cromwell - Cemetery	5	-	(5)	˜	15
10	Anderson Park - Landscaping	111	124	13	˜	141
15	Anderson Park - Irrigation & Bins	-	48	48	˜	81
9	Anderson Park - Fencing	-	9	9	˜	9
33	Anderson Park - Lighting	2	-	(2)	˜	33
140	Cromwell - Other	-	-	-	˜	140
394	Total Parks & Reserves	126	351	225		813
	Cromwell Swimming Pool:
8	Building upgrades	10	30	20	˜	42
11	Machinery & Plant	89	538	449	˜	1,076
23	Recreation equipment / furniture & fittings	-	31	31	˜	31
42	Total Cromwell Swimming Pool	99	599	500		1,149
	Property:				˜
75	Cromwell Front Reserve	8	67	59	˜	1,875
2,460	Cromwell Memorial Hall	7	2,457	2,450	˜	2,457
160	Cromwell - Building Improvements	1	160	159	˜	160
2,695	Total Property	16	2,684	2,668		4,492
3,131	Total Capital Expenditure	241	3,634	3,393	˜	6,454

Parks and Reserves:

· Cromwell parks and reserves has a collective favourable variance of $225k. Gair Ave and Jolly’s Road irrigation installation are programmed to commence in March.

Swimming Pool:

· Machinery and plant have a favourable variance of $449k. The replacement heating system is on order, with installation work expected to commence in late April 2022.

Property:

· Cromwell Front Reserve (Town Centre upgrade) - Investigation and design brief phase commenced in December 2021 including mall upgrade and service centre, library and resource centre buildings. Structural and asbestos assessments were completed on existing buildings and an unmanned aerial vehicle survey (drone) carried out on the town centre. First design workshop was held on 28 February 2022.

· Cromwell Memorial Hall - The work programme is in the design phase. Site survey is almost complete and concept design workshops underway.

Reserve Funds table for Cromwell Ward

· As at 30 June 2021 the Cromwell Ward has an audited closing reserve funds balance of $18.9M. This is the ward specific reserves and does not factor in the district-wide reserves which are in deficit at ($16.7M). Refer to Appendix 1.

· Taking the 2020-21 audited Annual Report closing balance and adding 2021-22 income and expenditure, carry forwards and resolutions, the Cromwell Ward is projected to end the 2021-22 financial year with a closing balance of $16.0M.

3. Attachments

Appendix 1 - 202112 Cromwell Reserves 2021-22.pdf ⇩

Report author:	Reviewed and authorised by:

Donna McKewen	Leanne Macdonald
Accountant	Executive Manager - Corporate Services
3/03/2022	3/03/2022


AGENDA Cromwell Community Board Meeting Tuesday, 29 March 2022
Date:	Tuesday, 29 March 2022
Time:	2.00 pm
Location:	Microsoft Teams and Live Streamed (Unless there is a move from the current Red Alert level, in which case it may be held in Cromwell Service Centre, 42 The Mall, Cromwell. In both cases, due to COVID-19 restrictions and limitations of the physical space, public access will be available through a live stream of the meeting. The link to the live stream will be available on the Central Otago District Council's website.)
Sanchia Jacobs Chief Executive Officer

Report author:	Reviewed and authorised by:

Wayne McEnteer	Sanchia Jacobs
Governance Support Officer	Chief Executive Officer
17/03/2022	17/03/2022