Agenda of Council meeting - Wednesday, 27 April 2022

Council Meeting Agenda

27 April 2022

MINUTES OF A Council Meeting OF THE Central Otago District Council
HELD ON Microsoft Teams and Live Streamed
ON Wednesday, 9 March 2022 COMMENCING AT 10.30 am

PRESENT: His Worship the Mayor T Cadogan (Chairperson), Cr N Gillespie, Cr T Alley, Cr S Calvert, Cr I Cooney, Cr S Duncan, Cr S Jeffery, Cr C Laws, Cr N McKinlay, Cr M McPherson, Cr T Paterson

IN ATTENDANCE: S Jacobs (Chief Executive Officer), L Macdonald (Executive Manager - Corporate Services), L van der Voort (Executive Manager - Planning and Environment), S Righarts (Chief Advisor), A Crosbie (Senior Strategy Advisor), J McCallum (Roading Manager), L Webster (Regulatory Services Manager), L Stronach (Team Leader Statutory Property), C Martin (Property and Facilities Officer - Vincent and Teviot Valley), N Lanham (Economic Development Manager), I Evans (Water Services Manager), Quinton Penniall (Environmental Services Manager), M De Cort (Communications Coordinator), R Williams (Governance Manager) and W McEnteer (Governance Support Officer)

1 Apologies

Apology

Resolution

Moved: Paterson

Seconded: Cadogan

That the apology received from Cr Claridge be accepted.

Carried

2 Public Forum

Glen Christiansen – Chair, Central Otago Community Housing Trust

Mr Christiansen spoke about Council’s role in affordable housing, and specifically the paper being considered on the agenda. He discussed the formation of the trust, and the current housing and rental market situation in Central Otago. He advocated for the secure homes model to be initiated in Central Otago. Mr Christiansen then responded to questions.

3 Confirmation of Minutes

Resolution

Moved: Duncan

Seconded: McPherson

That the public minutes of the Ordinary Council Meeting held on 26 January 2022 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

Note: Cr Duncan assumed the Chair as the Roading portfolio lead.

22.2.2 Safer Speeds Bylaw

To consider approving the Statement of Proposal for the proposed Speed Limits Bylaw 2022 for public consultation.

Resolution

Moved: Alley

Seconded: Jeffery

That the Council

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

B. Agrees that a bylaw is the most appropriate way of addressing the perceived problem, and the proposed bylaw is the most appropriate form and does not give rise to any implications under the Bill of Rights Act 1990.

C. Approves the Statement of Proposal for the proposed Speed Limit Bylaw 2022 for public consultation.

D. Appoints Crs Alley, Duncan and Paterson to hear submissions, if necessary.

Carried

Note: Cr Jeffery assumed the Chair as the Economic Development and Community Facilities portfolio lead.

22.2.3 Economic Development Work Programme Progress Report

To provide an update on the implementation of the Economic Development Work programme for 2021/22.

Resolution

Moved: Duncan

Seconded: Alley

That the report be received.

Carried

Note: Cr Gillespie assumed the Chair as the Planning and Regulatory portfolio lead.

22.2.4 Dangerous and Insanitary Buildings Policy

To consider the adoption of the proposed Dangerous and Insanitary Buildings Policy.

Resolution

Moved: Calvert

Seconded: Cadogan

That the Council

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

B. Adopts the proposed Dangerous and Insanitary Buildings Policy.

Carried

Note: Cr McKinlay assumed the Chair as the Three Waters and Waste portfolio lead.

22.2.5 Taumata Arowai Consultation January 2022

To inform elected members of consultation documents recently circulated by Taumata Arowai.

Resolution

Moved: Jeffery

Seconded: Laws

That the report be received.

Carried

22.2.6 Emissions Trading Scheme Costs

To consider the cost increases associated with the Emissions Trading Scheme for 2021 and 2022. A question was raised if the carbon credits were a district or ward asset.

Resolution

Moved: McPherson

Seconded: Cadogan

That the Council

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

B. Approves a budget increase of $103,000 for 2021, and $326,000 for 2022, for payment of increased emissions trading scheme costs to be funded from the sale of carbon credits.

Carried

Note: The Mayor assumed the Chair.

Note: Cr Duncan left the meeting at 12:07 pm.

22.2.7 Review into the future for local government

To consider the key questions in the interim report on the Review into the Future for Local Government and the key shifts the Panel believe are required in advance of a discussion with the Panel on 24 March 2022.

Resolution

Moved: Cadogan

Seconded: McPherson

That the report be received.

Carried

Note: Cr Duncan returned to the meeting at 12:38 pm.

22.2.8 Council's role in affordable housing: Policy direction

To agree on the policy direction for Council’s role in affordable housing.

After discussion it was agreed that staff would develop options for consultation to gauge the support for an affordable housing model in Central Otago. Staff would present those options to Council at a future meeting. The resolution was amended accordingly.

Resolution

Moved: Gillespie

Seconded: Cadogan

That the Council

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

B. Notes the updated information on progressive home ownership (secure homes) and urban design innovation (promoting different housing typologies)

C. Notes that both the progressive home ownership (secure homes) and urban design innovation (promoting different housing typologies) models will likely promote affordable housing in Central Otago.

D. Agrees that council led developments should consider including provision for different housing typologies using the urban design innovation model, subject to market conditions.

E. Directs staff to produce a policy document that reflects this position.

F. Directs staff to apply for external funding to further explore opportunities to deliver affordable housing (such as the progressive home ownership model – secure homes).

G. Directs staff to work with sector partners in the region to build a full picture of the housing model for Central Otago and look for opportunities to collaborate to achieve better housing outcomes for the district.

The motion was carried on a division 8:3

In Favour: Crs T Cadogan, N Gillespie, T Alley, S Calvert, I Cooney, S Duncan, S Jeffery and C Laws

Against: Crs N McKinlay, M McPherson and T Paterson

Carried 8/3

Note: The meeting adjourned at 1:03 pm and resumed at 1:31 pm.

Note: Crs Cooney and McKinlay returned to the meeting at 1:33 pm.

Note: Cr Laws returned to the meeting at 1:34 pm.

Note: Cr Duncan returned to the meeting at 1:36 pm.

22.2.9 William Fraser Office Renovation Project (Stage Six)

To consider additional funding of the William Fraser Office Renovation Project (stage six) to upgrade the main bathroom facilities of the building.

Resolution

Moved: Paterson

Seconded: Calvert

That the Council

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

B. Approves additional funding of $177,000 towards the William Fraser Office Renovation Project (stage six) to upgrade the main bathroom facilities. This additional funding is to be drawn from District Reserves.

Carried

22.2.10 Application to Lease site at the Cromwell Wastewater Treatment Plant

To consider granting a lease to Climate Solutions Aotearoa Limited over part of Section 1 Survey Office Plan 20776 being part of the Cromwell Wastewater Treatment Plant land.

After discussion it was clarified that environmental waste was the type of waste to be collected for the purpose of a worm farm and associated activities.

Resolution

Moved: Calvert

Seconded: Cadogan

That the Council

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

B. Agrees to grant Climate Solutions Aotearoa Limited a lease over approximately one hectare of the Cromwell Wastewater Treatment Plant land, being part of Section 1 Survey Office Plan 20776 (as shown in figure 1), for the purpose of establishing and operating an environmental waste collection (worm farm and associated activities) and material recovery business, on the following terms and conditions:

- Initial term: Five (5) Years

- Renewals: Three (3) Rights of Renewal of Five (5) Years each

- Rental: Market Rental (at valuation by independent valuer)

- Rent Reviews: On first renewal and two yearly thereafter

- Rent Review Methodology: Market Rental (at valuation by independent valuer)

- Area: Approximately 1 hectare

Subject to the Climate Solutions Aotearoa:

- Obtaining all consents and permits associated with the operation of the business.

- Erecting security (deer) fencing along the northern and eastern (internal) boundaries.

- Installing security (deer) gates to provide for access from Richards Beach Road and for exit via the unnamed road to the south of the lease area.

- Paying all costs associated with preparing the lease area for their purposes.

- Paying all costs associated with connecting the services and to utility networks.

- Not impacting on the day to day operation of the wastewater treatment plant.

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

Carried

22.2.11 Financial Report For The Period Ending 31 December 2021

To consider the financial performance for the period ending 31 December 2021.

Resolution

Moved: Cadogan

Seconded: McKinlay

That the report be received.

Carried

22.2.12 Appointments to External Bodies

To consider the Council’s appointments to external organisations.

Resolution

Moved: Cadogan

Seconded: McPherson

That the Council

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

B. Agrees that the delegations register is updated to remove the Alexandra District Museum Inc. from the list of external appointments.

C. Work with the committees of Central Otago Wilding Conifer Control Group and the Maniototo Curling International to change its representative roles to liaison positions.

Carried

22.2.13 Updated 2022 Meeting Schedule

To approve an updated schedule of meetings for 2022.

Resolution

Moved: Cadogan

Seconded: Calvert

That the Council

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

B. Adopts the updated 2022 meeting schedule.

Carried

Note: His Worship the Mayor recognised the contribution of the Governance Manager during her tenure and wished her well for her new role.

6 Mayor’s Report

22.2.14 March 2022 Mayor's Report

His Worship the Mayor spoke to his report. In addition he outlined the recommendations of the Three Waters Working Group he had been sitting on, whose recommendations had recently become public. He then responded to questions.

Resolution

Moved: Cadogan

Seconded: Gillespie

That the Council receives the report.

Carried

7 Status Reports

22.2.15 March 2022 Governance Report

To report on items of general interest, receive minutes and updates from key organisations, consider Council’s forward work programme, business plan and the legacy and current status report updates.

Resolution

Moved: Cadogan

Seconded: Laws

That the Council receives the report.

Carried

8 Community Board Minutes

22.2.16 Minutes of the Vincent Community Board Meeting held on 1 February 2022

Resolution

Moved: Cadogan

Seconded: McPherson

That the unconfirmed Minutes of the Vincent Community Board Meeting held on 1 February 2022 be noted.

Carried

22.2.17 Minutes of the Teviot Valley Community Board Meeting held on 3 February 2022

Resolution

Moved: Cadogan

Seconded: McPherson

That the unconfirmed Minutes of the Teviot Valley Community Board Meeting held on 3 February 2022 be noted.

Carried

22.2.18 Minutes of the Cromwell Community Board Meeting held on 15 February 2022

Resolution

Moved: Cadogan

Seconded: McPherson

That the unconfirmed Minutes of the Cromwell Community Board Meeting held on 15 February 2022 be noted.

Carried

22.2.19 Minutes of the Maniototo Community Board Meeting held on 17 February 2022

Resolution

Moved: Cadogan

Seconded: McPherson

That the unconfirmed Minutes of the Maniototo Community Board Meeting held on 17 February 2022 be noted.

Carried

9 Committee Minutes

22.2.20 Minutes of the Audit and Risk Committee Meeting held on 25 February 2022

Resolution

Moved: Cadogan

Seconded: McPherson

That the unconfirmed Minutes of the Audit and Risk Committee Meeting held on 25 February 2022 be noted.

Carried

10 Date of Next Meeting

Following item 22.2.13, the date of the next scheduled meeting was changed to 27 April 2022.

11 Resolution to Exclude the Public

Resolution

Moved: Cadogan

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 Council 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
22.2.21 - March 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
22.2.22 - Confidential Minutes of the Vincent Community Board Meeting held on 1 February 2022	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
22.2.23 - Confidential Minutes of the Cromwell Community Board Meeting held on 15 February 2022	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons 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
22.2.24 - Confidential Minutes of the Maniototo Community Board Meeting held on 17 February 2022	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
22.2.25 - Confidential Minutes of the Audit and Risk Committee Meeting held on 25 February 2022	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons 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)(c)(ii) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest s7(2)(d) - the withholding of the information is necessary to avoid prejudice to measures protecting the health or safety of members of the public s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege 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
22.2.26 - Chief Executive Officer's Contract	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

Carried

The public were excluded at 2.32 pm and the meeting closed at 2.53 pm.

27 April 2022

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22.3.3 Proposed Road Stopping - Unnamed Unformed Road off Poole Road (previously known as/part of Boundary Road).

Doc ID: 572027

1. Purpose of Report

To consider a proposal to stop an unnamed unformed road off Poole 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. Approves the proposal to stop the unnamed unformed road off the northern end of Poole Road, subject to:

- The provisions of the Local Government Act 1974.

- The public notification process outlined in the same Act.

- No objections being received within the public notification period.

- The Road being surveyed into three parcels as shown in figure 11 (overview of proposed stopping).

- The area marked “A” in figure 11, being stopped, classified as recreation reserve, then amalgamated with Lot 24 DP 3194 in accordance with the provisions of the Reserves Act 1977.

- The areas marked “B” and “C” in figure 11, being stopped, classified as recreation reserve, then vested in the Central Otago District Council in accordance with the provisions of the Reserves Act 1977.

- An easement (in gross) in favour of (and as approved by) Aurora Energy Limited being registered over the areas marked “A”, “B”, and “C”, as shown in figure 11 to protect the infrastructure identified in figure 13.

- The costs outlined in table 1 being paid from the Dunstan Park Development account.

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

2. Background

Boundary Road (Alexandra) used to run northeast from Alexandra Wastebusters, across the Alexandra-Clyde Road through Molyneux Park, to the Central Otago Netball pavilion. It then veered northwest through Dunstan Park to the Alexandra Golf Club (AGC) clubhouse.

The southern end of Boundary Road between Alexandra Wastebusters and the Clyde-Alexandra Road is formed and sealed. It has length of approximately 880 metres.

The middle section of Boundary Road, from the Clyde-Alexandra Road through Molyneux Park to the entrance to the Alexandra Netball pavilion, is formed and sealed. It has a length of approximately 550 metres.

In April 2021, this middle section of Boundary Road was renamed Poole Road. The purpose of the renaming was to resolve an historic street numbering issue.

The northern end of Boundary Road, between Molyneux Park and the AGC clubhouse, is unformed. It has a length approximately 1060 metres. It is now an unnamed section of legal road.

An overview of Boundary Road, prior to the renaming exercise, is shown in red below in figure 1.

An overview of Boundary Road, Poole Road, and the unnamed unformed section of the road, post the renaming, is shown below in figure 2.

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Figure 1 – Boundary Road prior to the renaming. Figure 2 – The three roads post renaming.

Poole Road and the unnamed unformed the road are shown on District Plan Maps 1, 2, and 42. The underlying zoning is residential. An extract from the District Plan showing Poole Road and the unnamed unformed section of legal road is shown below in figure 3.

The first 200 metres (southern end) of the unnamed unformed legal road is tagged ‘D10’ – “Road to be Stopped & Recreation Purposes”. D10 is magnified in figure 4.

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Figure 3 – Extract of District Plan. Figure 4 – Designation 10.

Poole Road and part of the unnamed unformed road (the Road) are also both shown in the Molyneux Park Reserve Management Plan 2021 (the Management Plan).

Noting that the Management Plan was adopted prior to the renaming exercise, Boundary Road (labelled ‘R’ below in figure 5) is described as being:

The main entry to Molyneux Park is from the intersection of Boundary Road with State Highway 8 (Centennial Avenue and Clyde-Alexandra Road). A driveway within the road reserve of Boundary Road East is located centrally within the park and provides access to most activities and car park areas.

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Figure 5 – Overview of Molyneux Park (noting the Road labelled ‘R’ is now Poole Road).

The Management Plan also details a proposal to develop new sports fields in an area to west of the Netball courts. While the new sports fields will form part of Molyneux Park once they are constructed. the land will remain relatively undeveloped until such time as they are needed. A plan of the proposed sports fields as extracted from the Management Plan is shown below in figure 6.

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Figure 6 – Proposed Sports Field Development Adjacent to the Existing Netball Pavilion & Courts.

Council is in the process of subdividing the land to the north of the proposed sports fields. The subdivision is a staged development which is known as Dunstan Park. Stage one titles have since been released with stage two titles scheduled for release in April. An overview of development which shows the released titles is shown in figure 7.

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Figure 7 – Overview of Dunstan Park Subdivision (to the north of the Proposed Sports Fields).

In conjunction with the Dunstan Park subdivision, it is proposed that the majority of the unnamed unformed section of the road (the Road) be developed into a greenway.

This does not include the square of the Road which adjoins Henderson Drive. As shown in figure 8 below, this square of the Road has been formed as part of Henderson Drive. It provides access to Stage 1 of the Dunstan Park subdivision.

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Figure 8 – Henderson Drive Extension (Portion of the Road which will not be stopped shaded in red).

Also identified in figure 7 is Lot 101 Deposited Plan (DP) 562079 (Lot 101). Council holds Lot 101 for future development. While plans for Lot 101 are still being finalised, the development is expected to include a new road connecting Dunstan Road to the Clyde – Alexandra Road, additional residential sections, and a greenway styled buffer zone on the southern end of Lot 24 DP 3194.

The new road is identified on District Plan map 1 as designations 9A, and on District Plan map 42 as designation 9B. Designations 9A are shown below in figure 9.

Should the new road be formed at some point in the future, the area of land required to link the two designation 9As will be taken at that time.

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Figure 9 – Extract of District Plan Map 1 showing the two Designations 9A.

While Lot 101 is held for future development, it is expected to be as residential sections. To provide separation between those sections and the Alexandra Golf Course, a greenway styled buffer zone is planned for the southern end of Lot 24. An example of the proposed buffer zone is shown in green below in figure 10.

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Figure 10 – Example of proposed Greenway Styled Buffer Zone

The proposed greenway styled buffer zone will provide recreational benefits and will increase connectivity between the residential subdivisions and Molyneux Park, the Rail Trail, and the Alexandra Golf Club.

An overview of the stopping, which is proposed to be affected in three sections, is shown below in figure 11.

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Figure 11 – Overview of Proposed Stopping.

The area marked “A” is occupied by the Alexandra Golf Club. It is proposed that area “A” be stopped and amalgamated with Lot 24 DP 3194 (Lot 24) as recreation reserve. This will allow the area marked “A” to be included in the lease held by the Alexandra Golf Club.

It is proposed that the areas marked “B” and “C” be stopped, freeholded, then vested in Council as recreation reserve. This will allow areas “B” and “C” to be developed into greenway which will secure and improve ongoing public access.

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 1, 2, and 42. The first 200 metres (southern end) of the unnamed unformed legal road is tagged ‘D10’ – “Road to be Stopped & Recreation Purposes”. As shown in figure 8, the span of the Road that intersects Henderson Drive has been formed and provides access to the Dunstan Park residential subdivision. This span of the Road will not be stopped. The balance of the Road 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 currently used by members of the public for recreational purposes. This use will be supported by changing the road to a reserve and greenway.
	Does it provide the only or most convenient means of access to any existing lots?	No. New roads have been formed or are to be constructed for the purpose of accessing Dunstan Park. The lots in Molyneux Estate are accessed via existing roads. The Central Otago Netball facility, the existing sports field and the proposed sports fields are all access via Poole Road. Footpaths and cycleways can be constructed within the greenway.
	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?	As above, Dunstan Park will be accessed via newly constructed roads as a requirement of the resource consent.
Future Use	Will the road be needed in the future to connect existing roads?	Yes. The part of Road which crosses Henderson Drive will not be stopped. This part of the Road will be formed to provide access to Dunstan Park from Molyneux Estate.
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 purpose of the proposed stopping is to enable the road to be developed as a greenway. Developing the Road as a greenway will improve its amenity value by creating and securing recreational access.
	Does the road have potential to be utilised by the Council for any other public work either now or potentially in the future?	As the surrounding area is developed, additional services may need to be installed in the greenway/road corridor. Should that be necessary, the services could be protected by the granting and registration of easements on the relevant record(s) of title.
	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. Both Transpower New Zealand Limited and Aurora Energy Limited have an assortment of infrastructure running through and over the Road.
Infrastructure	Can the existing services or infrastructure be protected by easements?	Yes. Easements will be created to protect the infrastructure belonging to Aurora Energy. The Transpower network is protected by virtue of the Electricity Act 1992.
Traffic Safety	Does the use of motor vehicles on the road constitute a danger or hazard?	Yes. There are a myriad of informal tracks through the area including on and over the Road. Walkers and cyclists use the road for recreational purposes which means using motor vehicles on the Road could constitute danger or hazard to the public.

4. Financial Considerations

As shown in the evaluation table, the southern end of the Road is identified as “Road to be Stopped & Recreation Purposes”. The balance of the Road, with the exception of the intersections of Henderson Drive and the ‘new road’ identified in figure 9, is not required for any other roading purpose.

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

Easements

Transpower have a 220kV overhead network which runs up the northern side of Molyneux Estate and Dunstan Park. Their network does cross the Road, but no easement is required to protect this infrastructure. The Transpower network is protected by virtue of the Electricity Act 1992.

Aurora have a high voltage underground cable and two fuse switches in the Road. The high voltage cable runs almost the length of the Road. The cable is dashed red below in figure 13. The two fuse switches are marked ‘FS’.

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Figure 13 – Aurora’s High Voltage Cable and Fuse Switches.

If the application to stop the Road is successful Aurora will require an easement (in gross) to protect their infrastructure. An easement will provide Aurora with right to access the land for the purpose of managing and maintaining their network.

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.

Community Board Recommendation

A report on this matter was presented to the Vincent Community Board (the Board) for consideration at their meeting of 22 March 2022.

On consideration the Board resolved (Resolution 22.2.6) to recommend to Council that they approve the proposal to stop the unnamed unformed road off the northern end of Poole Road.

5. Options

Option 1 – (Recommended)

To approve the proposal to stop the unnamed unformed road off the northern end of Poole Road, subject to:

- The provisions of the Local Government Act 1974.

- The public notification process outlined in the same Act.

- No objections being received within the public notification period.

- The Road being surveyed into three parcels as shown in figure 11 (overview of proposed stopping).

- The area marked “A” in figure 11, being stopped, classified as recreation reserve, then amalgamated with Lot 24 DP 3194 in accordance with the provisions of the Reserves Act 1977.

- The costs outlined in table 1 being paid from the Dunstan Park Development account.

Advantages:

· Public thoroughfare is maintained via the newly formed Henderson Drive extension.

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

· The land will be classified and developed as recreation reserve.

· Recreational connectivity will be enhanced.

· The area marked “A” will be able to be added to the lease held by the Alexandra Golf Club.

· The income received from previously completed stoppings will fund the stopping.

· Recognises the provisions of the:

- Local Government Act 1974,

- Reserves Act 1977,

- Electricity Act 1992,

- Council’s Operative District Plan; and,

- Council’s Roading Policy Bylaw.

Disadvantages:

· The balance of the Dunstan Park Development account will be reduced.

Option 2

To not recommend to Council to approve the proposal to stop the unnamed unformed road off the northern end of Poole Road.

Advantages:

· The balance of the Dunstan Park Development account will not be reduced.

Disadvantages:

· The land will not be classified as it is to be developed and used/occupied.

· The area marked “A” will not be able to be added to the lease held by the Alexandra Golf Club.

· Does not recognise the purpose for which income received from previously completed stoppings is held.

· Does not recognise the provisions and /or intentions of the:

- Local Government Act 1974,

- Reserves Act 1977,

- Electricity Act 1992,

- Council’s Operative District Plan; and,

- Council’s Roading Policy Bylaw.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic wellbeing of the community by enabling land that was held (but not required) for roading purposes to be repurposed as greenway which will increase the land’s amenity values and enhance recreational connectivity.
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 adopted. The recommendation also acknowledges the designations outlined in Council’s Operational District Plan.
Considerations as to sustainability, the environment and climate change impacts	Stopping the road, vesting it as recreation reserve, then developing it as a greenway enhances the environmental and amenity value of the land.
Risks Analysis	The proposal to stop the road will be subject to public consultation prior to a final decision being made. Consulting with the public manages the risk associated with public accessibility perceptions.
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.

7. Next Steps

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

1. Community Board approval March 2022

2. Council approval April 2022

3. Survey June 2022

4. Survey Plan approved June/July 2022

5. Public Notification commences Mid to late 2022

6. Public Notification Period ends Mid to late 2022

7. 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
24/03/2022	5/04/2022

27 April 2022

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22.3.4 Request for Minister of Conservation's Consent to the Granting of an Easement over Local Purpose Reserve [PRO: 65-7027-E1]

Doc ID: 571955

1. Purpose of Report

To consider granting the consent of the Minister of Conservation (under delegated authority) to the granting of an easement (in gross) to Aurora Energy over Part Section 142 Block I Teviot Survey District being the Roxburgh Local Purpose (Public Utility) Reserve.

Recommendations

That the Council

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

B. Agrees grant the consent of the Minister of Conservation (under delegated authority) to the granting of an easement (in gross) over Part Section 142 Block I Teviot Survey District to Aurora Energy Limited.

2. Background

Resolution 22.2.3

At its meeting of 24 March 2022, the Teviot Valley Community Board (the Board) considered an application for an easement over Part Section 142 Block I Teviot Survey District being Local Purpose (Public Utility) Reserve.

A copy of the report to the Board dated 24 March 2022 is attached as Appendix 1.

On consideration, the Board resolved (Resolution 22.2.3) as follows:

B. Agrees to grant an easement (in gross) to Aurora Energy Limited containing the right to convey electricity over Part Section 142 Block I Teviot Survey District for $1, subject to:

- Aurora Energy Limited (or their agents) obtaining all consents, permits, and other rights associated with installing the cable between the existing transformer and the new Point of Supply.

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

- The Minister of Conservation’s consent.

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

As noted in Resolution 22.2.3, the granting of the easement over Part Section 142 Block I Teviot Survey District 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)(d) of the Reserves Act 1977 (the Act) authorises the granting easements 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 defines an electrical installation or work 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”. Accordingly, the granting of an easement for the purpose of extending the existing network to service to the oxidation ponds on Section 175 Block I Teviot Survey District, is consistent with the Act.

Part Section 142 Block I Teviot Survey District is a Local Purpose (Public Utility) Reserve. It is held by Council (as the administering Body) subject to the Reserves Act 1977.

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.

An underground cable 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. Financial Considerations

There are no financial considerations or implications related to the recommendation.

5. Options

Option 1 – (Recommended)

To grant the consent of the Minister of Conservation (under delegated authority) to the granting of an easement (in gross) over Part Section 142 Block I Teviot Survey District to Aurora Energy Limited.

Advantages:

· The granting of the easement will not materially alter the reserve or compromise the 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.

Disadvantages:

· None.

Option 2

To not grant the consent of the Minister of Conservation (under delegated authority) to the granting of an easement (in gross) over Part Section 142 Block I Teviot Survey District to Aurora Energy 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.

6. 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 Authorities” dated 12 June 2013.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	There are no financial implications related to the recommendation.
Considerations as to sustainability, the environment and climate change impacts	The recommendation is consistent with the Reserves Act 1977 and with the “Instrument of Delegation to Territorial Authorities” dated 12 June 2013.
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.

7. Next Steps

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

1. Community Board Approval 24 March 2022

2. Consent of the Minister of Conservation 20 April 2022

3. Applicant advised of outcome Late April 2022

8. Attachments

Appendix 1 - Copy of the report to the Board dated 24 March 2022 ⇩

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Team Leader - Statutory Property	Executive Manager - Planning and Environment
25/03/2022	12/04/2022

27 April 2022

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22.3.5 Request for Minister of Conservation's Consent to the Granting of an Easement over Scenic Reserve [PRO: 65-3000-E1]

Doc ID: 576529

1. Purpose of Report

To consider granting the consent of the Minister of Conservation (under delegated authority) to the granting of the right to resurvey and increase the footprint of an existing easement (in gross) to Aurora Energy over Lot 7 DP 433991 being part of the Sugarloaf Scenic Reserve.

Recommendations

That the Council

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

B. Agrees grant the consent of the Minister of Conservation (under delegated authority) to the granting of the right to increase the footprint of an existing easement (in gross), to legalise the existing infrastructure, and to provide for the installation of an additional electrical cable, over Lot 7 DP 433991, being part of the Sugarloaf Scenic Reserve, to Aurora Energy Limited.

2. Background

Resolution 22.2.2

At its meeting of 29 March 2022, the Cromwell Community Board (the Board) considered an application to resurvey and increase the footprint of an existing easement Lot 7 DP 433991 being part of the Sugarloaf Scenic Reserve.

A copy of the report to the Board dated 29 March 2022 is attached as Appendix 1.

On consideration, the Board resolved (Resolution 22.2.2) as follows:

B. Agrees 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

As noted in Resolution 22.2.2, the granting of the extension to the footprint easement over Lot 7 DP 433991 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)(d) of the Reserves Act 1977 (the Act) authorises the granting of easements over a reserve or any part thereof for an electrical installation or work as defined in section 2 of the Electricity Act 1992.

Lot 7 DP 433991 is Scenic Reserve. It is held by Council (as the administering Body) subject to the Reserves Act 1977.

Increasing the footprint of an existing easement, to legalise existing infrastructure, and to provide for the installation of an additional electrical cable 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

4. Financial Considerations

There are no financial considerations or implications related to the recommendation.

5. Options

Option 1 – (Recommended)

To grant the consent of the Minister of Conservation (under delegated authority) to the granting of the right to increase the footprint of an existing easement (in gross), to legalise the existing infrastructure, and to provide for the installation of an additional electrical cable, over Lot 7 DP 433991, being part of the Sugarloaf Scenic Reserve, to Aurora Energy Limited.

Advantages:

· The existing infrastructure will be legalised.

· The additional cable will not materially alter the reserve or compromise the 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.

Disadvantages:

· None.

Option 2

To not grant the consent of the Minister of Conservation (under delegated authority) to the granting of the right to increase the footprint of an existing easement (in gross) over Lot 7 DP 433991, to Aurora Energy Limited.

Advantages:

· None.

Disadvantages:

· The existing infrastructure will not be legalised.

· 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.

6. 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 Authorities” dated 12 June 2013.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	There are no financial implications related to the recommendation.
Considerations as to sustainability, the environment and climate change impacts	The recommendation is consistent with the Reserves Act 1977 and with the “Instrument of Delegation to Territorial Authorities” dated 12 June 2013.
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 extend the footprint of an existing 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.

7. Next Steps

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

1. Community Board Approval 29 March 2022

2. Consent of the Minister of Conservation 27 April 2022

3. Applicant advised of outcome May 2022

8. Attachments

Appendix 1 - Copy of Report to the Board dated 29 March 2022 ⇩

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Team Leader - Statutory Property	Executive Manager - Planning and Environment
1/04/2022	12/04/2022

27 April 2022

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22.3.6 Alexandra Rugby Football Club Power Account

Doc ID: 576705

1. Purpose of Report

To consider a request from the Alexandra Rugby Football Club for reimbursement of a proportion of historical electricity invoices.

Recommendations

That the Council

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

B. Approves the Alexandra Rugby Football Club’s request for compensation for historical electricity invoices of $10,000.

C. Approves $10,000 from the Molyneux Park charge account to action payment of recommendation B.

2. Background

In June 2020 Council received a letter from the Alexandra Rugby Football Club (the Club) requesting that Council reimburse the Club $37,102.34 GST inclusive. The Club states that over the past ten years it has paid for electricity costs at Molyneux Park that it considers should have been paid for by the Council. Appendix 1.

A report was referred to the Vincent Community Board (the Board) at its meeting in November 2021. The matter was left on the table and staff were requested to meet with the Club to discuss the contents of the report and determine a way forward.

Staff and the Club held a meeting in early January. The Club expressed a willingness to resolve this matter and were of the view that for some years they have been paying for the electricity use of other users of the changing room showers. The Club consider they should receive some form of compensation for this.

The Board considered a report, Appendix 2, at their meeting on 22 March and resolved the following:

Moved: Garbutt

Seconded: Stirling-Lindsay

That the Vincent Community Board

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

B. Recommends to Council that they approve $10,000.00 from the General Development Alexandra reserves account to action payment for historical electricity invoices to the Alexandra Rugby Football Club as a final settlement.

3. Discussion

There are two separate electricity meters at Molyneux Park that the Club have paid the electricity invoices for. The groundsman shed and bunker are on one meter and the Molyneux Stadium’s Park side changing room showers on another.

Groundsman Shed and Bunker

The groundsman’s shed was built by the Molyneux Park Charitable Trust in 2006. The construction of the bunker predates this by many years.

Upon investigation it was found that the groundsmen shed, and the bunker were connected to the Club’s account. This occurred when Council upgraded the Molyneux Park irrigation system in late 2013. The original cable from the Stadium to the bunker had to be reburied at that time as the previous cable had failed and was non-compliant.

In discussions with a former Council staff member and the electrical contractor involved in this project, both recall a conversation with the Club seeking permission to connect this new cable to the Club’s lighting control box. Their recollection was that permission was granted, since very little power would be used. However, this agreement seems not to have been documented in writing by either the Council or the Club.

As it was not viable to redirect the groundsmen shed and bunker onto a Council electricity meter, to rectify the situation a “check” meter was installed in October 2020.

The “check” meter is read every month and reimbursement for electricity used at the bunker and groundsman shed is paid by Council to the Club. A reimbursement rate of 21 cents per kWh based on averages of previous electricity invoices was agreed to with the Club. This now forms part of the Club’s lease agreement with Council.

Council has on average compensated the Club $16.79 per month for the electricity used by the bunker and groundsman shed since October 2020 when the “check” meter was installed.

Stadium’s “park side” changing rooms

The changing rooms being connected to the Club’s electricity meter is historical and likely dates back to when the Molyneux Park Charitable Trust (the Trust) operated Molyneux Park.

In 2006 Council entered into a management agreement with the Trust. As part of this agreement the Trust were required to undertake a range of functions including:

· Collecting facility hire and rental charges

· Changing room cleaning and services

· Monitor water heating and report any problems to Council

· Manage and clean four sports club changing rooms under the rugby club

· Manage the changing rooms water heating system. (Council acknowledges that this system is overdue for replacement, which is not expected to be funded by the Trust)

The Trust received an annual funding grant from Council to assist with operations. The Trust also augmented its income from user charges.

The final year of charging undertaken by the Trust was 2011. That year the Rugby Club was charged the following:

- $2,100 for the season (including changing rooms).

- Daily charge main oval (including changing rooms) $185.00.

- Daily charge back fields (including Changing rooms) $125.00.

Records indicate Council took over the management of the park and changing rooms from the Trust on 1st September 2011.

Currently the changing rooms are used exclusively by the Club for rugby games and practice from April to August/September each year. It is used intermittently by cricket when 20/20 and other representative matches are held during summer. There is also the occasional casual booking that requires the use of the showers.

It should be noted that booking data for some years has not been well recorded and that for many years the Club would turn the power to the showers off when not required.

The Council’s booking data from 2013 is outlined in the table below. This indicates that of the 505 total number of bookings for the period, the rugby club has been the main user of the facilities with 312 or (60%) of bookings, mostly during the winter months. Bookings recorded by other user groups total 193 or 40% of bookings. How many of these other user bookings actually used the showers is not recorded.

Table 1: Bookings for the changing rooms since 2013.

	Rugby	Other		Rugby	Other

2013	44	22	2014	14	38

2015	56	23	2016	65	15

2017	29	30	2018	21	27

2019	32	15	2020	51	23
Total	161	90		151	103	505

Between 2013 and 2018, Council through its fees and charges levied the Club on an annual per field basis, which included the use of the changing rooms.

For 2019/20 the yearly charge was a lump sum including the use of all grounds and facilities.

When Council was advised by the Club it no longer felt it should pay for the hot water, Council redirected the power used for the changing rooms to the Council meter, this work was completed on 30 September 2020.

A “check” meter was also installed on the hot water cylinder to measure its power consumption. The average monthly use of the hot water cylinder since October 2020 is 583.26 kWh per month. Applying the 21c per kWh agreed compensation rate above equates to $122.48 per month.

Based on the past twelve months of electricity use, the total value of electricity used over a ten-year period equates to $14,697.00 for the park side changing rooms, and $1,763.00 for the groundsman shed and bunker over eight years and nine months.

Compensation

Council staff identified that many of the historic electricity accounts received by the Club from their electricity supplier were estimated accounts not actuals. Therefore, to simply compare one year to the next would not provide an accurate picture of electricity consumption over time.

The Club was advised in December 2020 that electricity usage data needed to be collected over a twelve-month period, to determine the actual amount of electricity used, before any form of compensation could be considered.

Council staff obtained the Club’s permission to work with their electricity company to resolve the issue of accounts being based on estimate readings only. This resulted in the Club being reimbursed $995.39 from their electricity company in July 2020. As of November 2020, smart meters were installed that are providing actual electricity consumption readings each month.

The situation of the Club covering the electrical costs of the “park side” changing rooms is one of long standing. The Club has asked Council to retrospectively cover costs for something the Club and presumably former Council staff had full knowledge of. The Club believes it has covered the costs of many other users of the changing room during the time they were paying for the electricity.

The Club have, over the years, paid the electricity for other users of the facility, therefore they have requested that they be compensated. The total value of electricity used, which is inclusive of that used by the Club, is approximately $14,697.00.

The recommendation in the 22 March Board report for compensation for the park side changing rooms was based on the Club utilising them 60% of the time, leaving 40% of the total of $14,697.00 to be reimbursed.

See calculations in the table below:

Area	Average monthly power use $.	Length of compensation	Total value of electricity used	Potential compensation
Bunker and groundmen shed	$16.79	8 years, 9 months	$ 1,763.00	$ 1,763.00
“Park side “changing rooms	$122.48	**10 years	$14,697.00	$ 5,878.00 (40% occupancy)
		Total		$ 7,641.00

Notes:

**The length of compensation is not able to be determined for the changing rooms. The Club was paying for the changing room hire within their fees since 2013. The proposed average monthly compensation is based up 21c kWh on 2020 prices. Electricity prices have risen over the last ten years. The Club is seeking 10 years compensation the calculation is based upon this rate. The figures have been rounded to the nearest dollar.

At its March meeting the Board considered the recommendation in the report to pay $7,641 to the Club, being 40% of the power usage over the subject period. Following discussion, and giving consideration to the views of the rugby club, specifically that they believe they should be compensated the full amount of $14,697.000, the Board agreed that to progress the matter $10,000 should be offered as final settlement.

4. Financial Considerations

There is no allocated budget to cover compensation, so reserve funds would need to be used for any compensation payment

The Board resolution was to use the General Development Alexandra account, however as that is solely a ward funded cost centre it is not appropriate in this instance.

Molyneux Stadium is both a district and ward facility, funded by the district (33%) and the Vincent Ward (66%) The Molyneux Park Stadium cost centre is therefore the most appropriate account from which to fund the compensation. While this account is forecast to close with a $376k deficit at the end of the 2021/22 financial year this deficit is predicted to reduce over time.

Council’s fees and charges for 2021/22 levied the Rugby Club for senior players $850 for the season. This included use of the grounds and facilities.

Since the receipt of the Club’s request for compensation council has been able to accurately determine what the actual energy usage is for the changing room showers. At today’s prices energy use for a month is approximately $123.00, or just under $5.00 per day. By including this as a new charge in the fees and charges schedule Council will be able to equitably charge all users for the cost of operating the showers in the future.

The fees and charges schedule for 2022/23 has a new line to reflect this $5.00 per day charge for shower users. This will be additional to any other charges for all users of the changing rooms.

5. Options

Option 1 – (Recommended)

That Council approves $10,000.00 from the Molyneux Park charge account to action payment for historical electricity invoices to the Alexandra Rugby Football Club as a final settlement.

Advantages:

· The Club is reimbursed as per their request.

· All electricity meters referenced in this report are now either being directly charged to Council or a check meter is in operation to record electricity use that is then reimbursed to the Club monthly.

Disadvantages:

· Money for compensation has not been budgeted.

· Users of the showers will be required to pay a daily usage rate.

Option 2

The Alexandra Rugby Football Club’s request for compensation for historical electricity invoices is declined.

Advantages:

· Unbudgeted money will not be required to cover a situation of long standing.

Disadvantages:

· The Club’s expectations of reimbursement are not achieved.

Option 3

The Council determines an alternative amount for compensation of historical electricity invoices.

Advantages:

· The Club will receive some compensation.

Disadvantages:

· There is no budget allocated for any retrospective payment.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by allowing the Council to consider the request for compensation by a locally based sporting club.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The decision is not inconsistent with any Council plan or policy. There is a Reserve Management Plan for Molyneux Park, however this request sits outside the polices within that plan.
Considerations as to sustainability, the environment and climate change impacts	This decision does not impact on the sustainability of the environment in the district.
Risks Analysis	There are no risks identified with the recommendation.
Significance, Consultation and Engagement (internal and external)	This is not significant under Council’s significance and engagement policy.

7. Next Steps

· The Council’s decision is communicated to the Alexandra Rugby Club.

8. Attachments

Appendix 1 - Alexandra Rugby Club Letter ⇩

Appendix 2 - Report to Vincent Community Board 22 March 2022 ⇩

Report author:	Reviewed and authorised by:

Gordon Bailey	Louise van der Voort
Parks and Recreation Manager	Executive Manager - Planning and Environment
4/04/2022	8/04/2022

27 April 2022

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22.3.9 Adoption of Central Otago Destination Management Plan

Doc ID: 573138

1. Purpose of Report

To adopt the Central Otago Destination Management Plan as the agreed approach for the district to manage its’ tourism future.

Recommendations

That the Council

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

B. Approves the Central Otago Destination Management Plan.

C. Adopts the Central Otago Destination Management Plan.

2. Background

Prior to COVID-19, many communities in Aotearoa were strained by the impacts of too many visitors. These strains were particularly evident in tourism hotspots where visitor demand was having negative impacts on infrastructure and the quality of life of residents.

While Central Otago had not experienced the same level of demand as other regions, there were some indicators that the risks of over tourism were beginning to emerge. The interest shown by external parties in developing souvenir shops in Clyde intended for the Chinese market is an example of this.

In 2018 Council adopted the 2018-2028 Central Otago Tourism Strategy. This strategy was a blend between destination marketing and destination management, based on tourism needing to bring value to the community, stakeholders, the environment and the visitor. The strategy outlined 16 strategic projects to enhance awareness of Central Otago and develop the destination for long term success.

Eighteen months after the strategy was adopted, COVID-19 saw New Zealand go into lockdown, international borders close and the entire tourism industry be shut down overnight. In response to the impacts on tourism, Central Government via Ministry of Business, Innovation and Employment established a fund to support the work of regional tourism organisations such as Tourism Central Otago.

Additional funding was provided to Tourism Central Otago to be spent in three areas; destination marketing, destination development and destination management, which included developing a formal written destination management plan for the district.

This aligned with the recently adopted Central Otago Tourism Strategy, which had identified the development of a destination management plan as a strategic project.

In late 2020, consultants Angus and Associates and The Pyjama Strategist were appointed to work alongside Tourism Central Otago and Aukaha to develop Central Otago’s destination management plan.

What happens if destination management is not prioritised?

There are identifiable risks. It should be noted this is not an exhaustive list;

· Tourism growth is driven by external forces, overrunning community aspirations

· Infrastructure cannot cope with tourism growth

· Overcrowding hotspots within the district, while other parts see fewer visitors

· Profits leave the district to external ownership

· Inability to access central government funding for destination management

· Industry becomes volume reliant and less resilient in times of crisis or market movement

3. Discussion

Foundations

The attached draft plan is built upon the shared and divergent values of mana whenua and Council’s Regional Identity program. The draft plan uses the model of values-based tourism to identify how tourism can enrich the four well-beings.

Economic data

Historic data sources focused solely on economic outcomes, which tell part the story, but are not aligned to measuring the holistic value of tourism:

· In 2019 tourism, accommodation and food services contributed 8.8% of Central Otago’s GDP, making it the third largest contributor to the district’s economy that year. Source Infometrics.

· In 2019 tourism was the second largest employer at 17% of the district’s workforce. Source Infometrics.

· 2019 Spending by visitors to Central Otago was equivalent to $9,080 per resident, putting Central Otago 12^th of New Zealand’s 61 territorial authorities for economic contribution by resident. Source Tourism New Zealand.

· Data for 2021 showed 65% ($85m) of electronic card spend in Central Otago was for non-tourism related purchases such as retail. Source MBIE’s Tourism Electronic Transaction Data.

Within existing available datasets, there are gaps which create planning and infrastructure challenges for local authorities;

· Volume of visitors, there is no metric to understand the number or origin of visitors in Central Otago. This can create significant issues for infrastructure and planning processes within council

· Flow of visitors, there is no data that provides insights into how visitors come into Central Otago and where they depart from, nor information on their movements within the district.

· Total spend by visitors to Central Otago’s economy as many transactions occur prior to arrival in Central Otago such as accommodation and activities

Research process and some key findings

Central Otago’s draft destination management plan is the result of comprehensive research that provides evidence and insights into what different stakeholder groups want the tourism future of Central Otago to look like.

In depth research interviews and workshops were undertaken to develop and inform the draft plan, methods included:

· Resident ‘Tourism Futures’ survey online and in person intercept - 406 respondents

· Community and interest groups qualitative focus groups - 80 participants

· One on one ‘challenger’ interviews - 25 interviews

· Central and Local (internal & external) Government agency officers – 42 individual officers

· Elected member workshop December 2021

Throughout the draft plan, relevant local and central government policies are referenced and the draft plan aligned to, ensuring consistency with policy and strategy across government agencies.

The research showed Central Otago communities expect tourism to be managed in such a way that the communities of Central Otago maintain their special character and identity. Broadly residents want a tourism future where people feel safe, have a sense of space, can enjoy the active natural environment and personalised experiences while inviting visitors to be part of the community during their travels.

The tourism futures research also provided further evidence that tourism is important to the community, not only as an economic driver:

· Over 65% of respondents not directly involved in tourism, stated tourism had a positive impact on their livelihood.

· 83% of residents stated international tourism was good for Central Otago

· 99% of residents stated domestic tourism was good for Central Otago

· 50% stated tourism has enhanced the profile or identity of the region

· 50% stated tourism has encouraged a greater appreciation of the district’s historic buildings and sites

· 50% stated they enjoy greater variety of goods and services being available than normally would be

· 45% stated as a result of tourism there are greater services available to Central Otago community

· 45% stated tourism has encouraged a greater appreciation of the district’s natural environment

· 44% stated the community is a more vibrant and friendly place to live due to tourism

Findings from the community research informed a fifty year vision for Central Otago, and tourism’s role in achieving it. To move towards that vision, the draft plan identifies key strategic projects to be delivered over the next ten years to guide tourism towards that vision

Leadership

The draft plan identifies a key project of year one is to finalise a governance and management structure to implement the plan. A plan by itself will not make change happen. There will need to be support and collective buy-in to a new way of managing tourism in Central Otago from community, council, tourism operators, local and national agencies.

Within the collective knowledge and work programmes of Council, the organisation is well positioned to manage the implementation of the plan. There would need to be additional resources allocated specifically towards the destination management function that would be responsible for the delivery of the strategic plan.

Ownership of the plan needs to sit across many different stakeholders, including youth from the community to ensure the actions taken today are in line with the views of future generations.

Mana whenua endorsement

In line with the partnership and co-design approach taken to develop the draft plan, the endorsement of mana whenua is being sort by Aukaha at the same time Council adoption is being considered.

Tourism Advisory Board endorsement

The Central Otago Tourism Advisory Board reviewed the draft destination management plan on the 31 March 2022 and gave it their endorsement.

Future thinking

As communities evolve, so too must the destination management plan. It is intended this work be updated every five years, with new tourism futures research and appropriately updated ten year plan to align with the refreshed 50 year vision.

4. Financial Considerations

Estimated resourcing and implementation costs are $250,000-300,000 per annum. With an additional allocation of $70,000-100,000 every five years for the research to be refreshed and the plan to be updated.

Preferred funding model

Staff are currently awaiting outcomes of a funding proposal put to Ministry of Business, Innovation and Employment and Tourism Minister Stuart Nash on behalf of Council by Regional Tourism New Zealand. That proposal would see $300,000 granted to Council for financial year 2022-23 for the delivery and implementation of the destination management plan. Subsequent years would be funded through a combination of council and central government funding collected through the International Visitor Levy. There is no indication from central government at what level that ratio may be.

Alternative model

Should that funding not become available via central government in the immediate financial year, Tourism Central Otago reserves would cover the implementation to the end of the 2022-23 financial year.

Funding beyond that period would need to be presented for consideration in future annual and/or long-term plans.

Alternative funding mechanisms are being explored such as user pays models for experiences and infrastructure. These are part of the strategic projects within the ten year plan, but it would be unrealistic to expect these to be set up and viable within two years, so some public funding would be required in the early stages of delivery.

5. Options

Option 1 – (Recommended)

Support and adopt the Central Otago Destination Management.

Advantages:

· Long term tourism future of Central Otago is managed and developed in a manner that aligns to community aspirations

· Work to deliver the plan can begin immediately

· Meeting obligations of funding agreement with central government

Disadvantages:

· Future funding models beyond July 2023 are not yet secured, there may be a requirement for funding up to $300,000 over and above what is currently allocated by Council

Option 2

Do not adopt the Destination Management Plan.

Advantages:

· Potential savings to the ratepayer of up to $300,000 per annum from July 2023 onward

Disadvantages:

· Council’s obligations to Ministry of Business, Innovation and Employment to deliver a destination management plan not met

· Tourism returns to a volume focus and provides limited value to fewer stakeholders

· Inability to retain knowledge and skills developed within Tourism Central Otago during plan development process

· Community aspirations for tourism not realised

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by adopting a destination management plan that has had significant community input. AND This decision promotes the social, cultural, economic and environmental wellbeing of communities, in the present and for the future by planning for a well managed and values based tourism system in Central Otago.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The 2018-28 Central Otago Tourism Strategy outlines the need to develop a ‘Tourism Masterplan’ to manage the future impacts of tourism and ensure tourism is delivered on the community’s terms in the future.
Considerations as to sustainability, the environment and climate change impacts	The destination management plan and 10 year strategic projects identify key areas in which tourism can enrich the natural environment of Central Otago. There is an acknowledgement tourism of the past has had a negative impact of the environment and climate change. This plan will seek to resolve that and enable tourism to be a vehicle to create positive change in these areas.
Risks Analysis	Limited direct risk to the organisation, with the exception of the community not feeling heard in the event the plan is not adopted.
Significance, Consultation and Engagement (internal and external)	As identified in the body of the report, a high level of consultation has already been undertaken with the community and stakeholders. Mana whenua have been represented by Aukaha and part of the process from the beginning in a co-design model. Internal updates and feedback has been provided by both council officers and elected councillors via workshops.

7. Next Steps

Upon receiving endorsement from mana whenua and Council adoption, staff will finalise design and publicly release the stylised plan.

8. Attachments

Appendix 1 - Draft Destination Management Plan (under separate cover) ⇨

Appendix 2 - Community Engagement Survey Results (under separate cover) ⇨

Report author:	Reviewed and authorised by:

Dylan Rushbrook	Sanchia Jacobs
General Manager Tourism Central Otago	Chief Executive Officer
08/04/2022	12/04/2022

27 April 2022

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22.3.10 Otago Museum's Draft Annual Plan 2022-2023

Doc ID: 576499

1. Purpose of Report

To present the 2022/2023 Draft Annual Plan from the Otago Museum Trust Board for review and feedback, and to consider their request for a three percent increase on the annual levy charged to this Council.

Recommendations

That the Council

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

B. Agrees to fund the proposed levy increase of three percent in 2022/23 for the Otago Museum (an additional $1,025, which will increase the payment from $31,502 to $32,527).

C. Notes that the existing budget accommodates $630 of the increase and the remaining $395 will be funded from operational savings within the activity’s budget.

2. Background

The Central Otago District Council is levied annually, alongside all other local authorities in the Otago region, to contribute towards the running of the Otago Museum. The levy recognises and acknowledges the regional importance of the Otago Museum. In addition to the opportunity for Central Otago families and schools to visit the Otago Museum in Dunedin, this levy contributes towards 40 hours per annum of technical support which our local museums receive from Otago Museum staff. Central Otago District Council’s contribution for 2021/22 was $31,502.

The Otago Museum Trust Board is seeking feedback on the 2022-2023 Draft Annual Plan (appendix 1) from contributing local authorities. No relevant feedback is noted aside from the proposed a levy increase of three percent for 2022/23, with an additional three percent increase sought in 2023/24. The draft plan signals that a further increase may be required for the 2023/24 year.

The proposed levy for the next two years, at this stage, is as follows:

Central Otago

2022/23 $32,527

2023/24 $33,502

3. Discussion

The Otago Museum continues to support the museums in the district and has been involved in Council’s work on investment in the sector. Their support and advice has been a valuable contribution as the sector implements the new trust and Council works through the various options.

Some of the specific work Otago Museum has been involved in within the district is as follows:

· Exhibitions

o Central Stories: 100 Women, 100 Words… Infinite Possibilities exhibited from 28 February until 28 March 2021, with 1,457 visitors attending.

o Cromwell Museum: Our Evolutionary Past: Branches through Time exhibited from 12 June 2021 until October 2021.

· Exhibitions and creative services

o Central Stories Museum and Art Gallery display consultation, 5 February 2021

o Clyde Historical Museum display consultation, 5 February 2021

· Science engagement

In addition to supporting in-house engagement, the Science Engagement team delivered in-person programmes to 70 communities throughout the Otago region as well as elsewhere in Aotearoa New Zealand; at festivals, agricultural and pastoral shows, school visits and other community events.

The breakdown of individuals engaged, by local authority area:

o Dunedin City Council: 11,857

o Waitaki District Council: 239

o Clutha District Council: 260

o Central Otago District Council: 948

o Queenstown Lakes District Council: 3,067

· Conservation and professional services

o Otago Museum’s Conservation Manager remotely attends the Vallance Cottage Working group meetings to provide conservation and collection care advice.

o The Conservation Manager and design team met with the Central Stories Museum and Art Gallery to review and advice on exhibition refresh options.

o The Conservation Manager and design team met with Clyde Museum to discuss and advise on possible targeted display alterations.

o Otago museum staff met with the Central Otago Heritage Trust team to provide external feedback on the district museum strategy, facilitated a workshop for Central Otago’s museum sector, and attended the Central Otago Museum Trust’s annual general meeting.

o Otago Museum staff hosted a regional museum meeting for 46 individuals from 21 organisations on the theme of reviewing, re-connecting and networking.

· Tu Tono project

Otago Museum has been involved with the Ministry for Culture and Heritage funded ‘Tū Tono’ project, which aims to understand the needs of regional museums. A recent example of this work is the offering of social media and marketing webinars for volunteers and those working in the museum and wider heritage sectors.

The 2022-2023 Draft Annual Plan provides a financial overview of the Otago Museum, with a breakdown of financial pressures that the museum is currently facing. The plan notes the uncertainty created by the pandemic and increasing inflationary pressures. The draft plan notes that the Museum is budgeting for a net loss of $1,219,519 in 2023 and is signalling a potential nine percent increase being sought for in the levy for the 2023-24 year.

Unfortunately, Otago Museum’s 2020-21 Annual Report has been held up due to the national shortage of auditors. The Museum hopes to approve their 2020-21 Annual Report at their April board meeting, for distribution in May.

4. Financial Considerations

$32,132 has been budgeted for the 2022/2023 Otago Museum levy, which included an estimated two percent increase from 2021/2022.

The increase being proposed by Otago Museum is three percent, which is $32,527, a difference of $395. It is proposed that this increase is met within Council’s existing Community and Engagement department budgets.

5. Options

Option 1 – (Recommended)

That Council approves the requested three percent levy increase, which would increase the annual levy to Otago Museum from $31,502 to $32,527.

Advantages:

· The Otago Museum continues to provide support and expertise to our heritage organisations in Central Otago.

· A number of Central Otago residents visit and make use of the Otago Museum when visiting Dunedin.

· Continuing to build the district’s relationship with the Otago Museum allows for future opportunities to gain local access to technical expertise and ongoing training.

· Council is compliant with Otago Museum Trust Board Act 1996, Schedule 2.^{^[1]}

Disadvantages:

· A slight increase in expenditure is required.

Option 2

That Council approves either no increase or a lesser increase for 2022/23.

Advantages:

· Less impact on budget.

Disadvantages:

· Not meeting the expectations of the Otago Museum

· Otago Museum may need to consider the services they can provide to the District.

6. 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 supporting the Otago Museum as a place of cultural importance in the Otago region.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	Yes, the recommended option requires an additional $395 of unbudgeted expenditure. This will cause an over-expenditure in the District Grant general ledger, but this will be offset by savings in Community and Engagement budget lines.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes – this decision is consistent with Council plans and polices, particularly the Central Otago District Museum Strategy.
Considerations as to sustainability, the environment and climate change impacts	There are no specific implications as a result of this decision, however the future sustainability of Otago Museum will need to be considered in future years.
Risks Analysis	There is a risk that the Otago Museum will continue to require ongoing levy increases.
Significance, Consultation and Engagement (internal and external)	This decision does not meet the threshold of the Significance and Engagement Policy.

7. Next Steps

Any feedback on the draft annual plan needs to be submitted by 31 May 2022. Once agreed, this will be communicated to the Otago Museum.

8. Attachments

Appendix 1 - Otago Museum's Draft Annual Plan 2022-23 ⇩

Report author:	Reviewed and authorised by:

Rebecca Williams	Sanchia Jacobs
Community Development Advisor	Chief Executive Officer
1/04/2022	13/04/2022

27 April 2022

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22.3.11 Central Otago District Council's Relationship with Aukaha

Doc ID: 575335

1. Purpose of Report

To consider a draft partnership protocol with Aukaha Ltd.

Recommendations

That the Council

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

B. Agrees to formalise its relationship with mana whenua through a partnership protocol agreement with Aukaha Ltd.

C. Endorses the draft partnership protocol, as attached as appendix two to the report.

D. Agrees to allocate $70,000 per annum towards the agreement, with $35,000 coming from existing budgets and $35,000 included as new expenditure.

2. Background

Te Rūnanga o Moeraki, Kāti Huirapa ki Puketeraki, Te Rūnanga o Ōtakou, and Hokonui Rūnanga (kā rūnaka) are the Otago-based Papatipu Rūnaka that represent mana whenua in the Central Otago District. Kā rūnaka are supported by Aukaha, their regional consultancy.

For the past five years, the Central Otago District Council has been continuing to build on its relationship with mana whenua. This has taken a number of forms, with a more recent examples being the involvement of mana whenua in Tourism Central Otago’s Destination Management Plan and work on the Vincent Spatial Plan.

Kā rūnaka submitted to the Central Otago District Council’s 2021-2031 Long-term Plan, seeking funding for engagement in Council’s workstreams under a Treaty partnership arrangement. A copy of the submission is attached as appendix 1.

As part of its deliberations on the 2021-31 Long-term Plan, Council resolved the following at its meeting held on 1 June 2021:

“That Council requests staff progress discussions around the scope of a partnership agreement with Kā Rūnaka, via Aukaha, and report back to Council for consideration in the 2022-23 Annual Plan.”

This report provides an update on those discussions and presents a draft agreement for Council’s consideration.

3. Discussion

Section 81 of the Local Government Act (the Act) states that a local authority must establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority; and consider ways in which it may foster the development of Māori capacity to contribute to the decision-making processes of the local authority.

To date, Aukaha have formal relationship agreements in place with the Otago Regional Council, Queenstown Lakes District Council and the Dunedin City Council.

As part of the deliberations on the Central Otago District Council’s 2021-2031 Long-term Plan, staff recommended there was value to negotiating a comprehensive partnership agreement with kā rūnaka, via Aukaha, that would see all parties contribute towards joint outcomes in Central Otago.

A draft protocol has since been received and this is attached as appendix 2. The draft protocol provides a framework to establish an enduring partnership between Kāi Tahu, as represented by kā rūnaka and the Central Otago District Council, and for the operational interface with Aukaha Ltd.

The draft protocol outlines the proposed resourcing and funding arrangements, planning and programmes, reporting and review, payment schedule, signatories and includes a schedule that clarifies which work programmes are included in the partnership funding, and which falls outside of that.

4. Financial Considerations

Historically, Aukaha engagement with the Central Otago District Council has been undertaken on a piecemeal, cost recovery basis. As per the submission to the Long-term Plan, Aukaha advise that partnership funding provides certainty that Aukaha staff can commit time and resource to engaging in Council’s strategic planning processes.

Following discussions across the Council, $35,000 from existing budgets could be reallocated to fund the draft partnership protocol to deliver on the work programmes it is budgeted for. This means that an additional $35,000 of new expenditure would be required to fund the agreement.

Any new expenditure will have an effect on the 2022/2023 proposed rate increase.

5. Options

Option 1 – (Recommended)

That the Central Otago District Council formalises its relationship with mana whenua through a partnership protocol agreement with Aukaha Ltd. That the draft partnership protocol agreement is endorsed. That $70,000 is allocated for the new agreement, with $35,000 of that being new expenditure.

Advantages:

· The partnership between the Council and Kāi Tahu, as represented by Kā Rūnaka is strengthened and formalised.

· A consistent Treaty partnership approach to the economic, social, environmental and cultural well-being of Kāi Tahu whānui, council staff and the broader community across all the relevant duties and functions of Council.

· Central Otago District Council will work with Aukaha on an annual work programme.

· Aukaha will engage with Kā Runaka to support the integrity of the partnership.

· Council enhances its fulfilment of s81 of the Local Government Act.

Disadvantages:

· New expenditure of $35,000 is required, which will result in an increase to the 2022/2023 proposed rates ($35,000 is approximately a .1% increase).

Option 2

That the Central Otago District Council formalises its relationship with mana whenua through a partnership protocol agreement with Aukaha Ltd and an amount less or more than $70,000 is allocated for the new agreement.

Advantages:

· The partnership between the Council and Kāi Tahu, as represented by Kā Rūnaka is strengthened and formalised.

· Central Otago District Council will work with Aukaha on an annual work programme.

· Aukaha will engage with Kā Runaka to support the integrity of the partnership.

· The financial contribution could be reduced.

Disadvantages:

· The financial contribution could be increased.

· The work programme would be reduced and Council may not be able to deliver the appropriate level of service.

Option 3

That the Central Otago District Council does not formalise its relationship with mana whenua through a partnership protocol agreement with Aukaha Ltd.

Advantages:

1. New expenditure is not required.

Disadvantages:

1. An opportunity to develop a partnership protocol with Kāi Tahu, as represented by Kā Rūnaka is lost.

1. Council is at risk of not meeting its obligations under s81 of the Act.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by developing a relationship with mana whenua. This gives partial effect to s81 of the Local Government Act, which states that a local authority must establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority; and consider ways in which it may foster the development of Māori capacity to contribute to the decision-making processes of the local authority. AND This decision promotes the social/cultural/economic/environmental wellbeing of communities, in the present and for the future by ensuring a consistent Treaty partnership approach is taken across the relevant duties and functions of the Council.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes – this decision is consistent with all other plans and policies and will enhance them.
Considerations as to sustainability, the environment and climate change impacts	A relationship with Aukaha will work towards enhancing Council’s environmental impacts.
Risks Analysis	Council is at risk of not meeting its obligations under s81 of the Local Government Act if a formal relationship agreement is not agreed with Aukaha.
Significance, Consultation and Engagement (internal and external)	This decision does not trigger external engagement under the Significance and Engagement Policy. The report is the result of a submission to the Long-term Plan. Internal consultation has taken place and annual work programmes will be negotiated to ensure all relevant departments are included.

7. Next Steps

Once a partnership protocol is approved, an appropriate signing opportunity will be arranged and then a work programme for the 2022-23 financial year will be developed and agreed.

8. Attachments

Appendix 1 - Aukaha's Submission to the 2021-31 Long-term Plan ⇩

Appendix 2 - Draft Partnership Protocol between Aukaha and Central Otago District Council ⇩

Report author:	Reviewed and authorised by:

Rebecca Williams	Sanchia Jacobs
Community Development Advisor	Chief Executive Officer
28/03/2022	5/04/2022

27 April 2022

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22.3.12 Engaging with the community over the Central Otago Affordable Housing Trust's request for a gift of land to establish a 'secure homes' model

Doc ID: 577433

1. Purpose of Report

To consider the plan to engage with the community on the request from the Central Otago Affordable Housing Trust for Council to gift them land to establish a ‘secure homes’ scheme in the region.

Recommendations

That the Council

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

B. Agrees on the engagement plan detailed in this paper to hear the views of the community about the request from the Central Otago Affordable Housing Trust for Council to gift land to enable the establishment of a ‘secure homes’ scheme.

2. Background

The project to determine a position on Council’s role in housing has been in development since early 2020. Following Council direction, staff have been investigating council involvement in several areas along the housing continuum (from an improved planning framework to providing social housing). At the last Council meeting on 9 March 2022, Council considered two outstanding areas. Namely, increased density (supporting promotion of different housing typologies in developments) and supporting progressive home ownership models (the ‘secure home’ model proposed by the Central Otago Affordable Housing Trust).

In the meeting Council resolved that a policy position be developed that any Council-led developments should consider including provision for different housing typologies using the urban design innovation model, subject to market conditions. Council decided to leave the decision on supporting the Central Otago Affordable Housing Trust on the table.

Given the challenges obtaining external funding to support the establishment of the Central Otago Affordable Housing Trust (such as a recent unsuccessful application to the Infrastructure Acceleration Fund), the only viable way forward for the Central Otago Affordable Housing Trust is for Council to gift a proportion of the land they require to get up and running. The Central Otago Affordable Housing Trust have indicated they would initially need approximately 1/3 of the remainder of Cromwell’s Gair Avenue development and then look to extend to Alexandra (the bare land value of 1/3 of Gair Avenue is approximately $4m and the opportunity for any development profit off that land would be foregone if it was gifted). Given the financial impact of this on future projects (which may not go ahead or have an additional rates impact), the paper recommended to not give up the land. Council directed that an engagement plan to be developed to ascertain the views of the community, and the results be brought back to help inform their decision on whether to support the Central Otago Affordable Housing Trust by gifting land.

3. Discussion

Under the current delegations, land is owned by Council though the benefits and costs are realised at a ward level. Council currently has two parcels of residential land being developed, one in Gair Avenue in Cromwell and the other in the Pines in Alexandra. There are no developments planned or likely in the Teviot Valley or Māniatoto. As such, it is proposed to focus this engagement on those residents most directly financially affected by the proposal – those in the Cromwell and Vincent wards.

The engagement plan proposal

It is proposed that council surveys residents of the Cromwell and Vincent wards for a period of approximately one month during early/mid May through to June 2022. Each ratepayer would be emailed a ‘postcard’ inviting them to participate in a short on-line survey to ascertain their views on Council supporting the Central Otago Affordable Housing Trust. The survey preamble will describe the challenges of housing in Central Otago, the Central Otago Housing Trust’s proposal (with a further link that will describe the ‘secure homes’ model in more detail), the relative cost to Council of supporting the proposal (i.e., that in order to be established they require approximately $4m of bare land - initially from Gair Avenue, and then from the Alexandra Pines subdivision). It will also outline that there would be a loss of profit on the developed land (which is approximately $16m being land plus profit) which would impact on the financial viability of future projects in these wards, or directly increase rates as consequence.

The survey will then ask the following:

1. Do you agree to Council supporting the development of affordable housing in Central Otago?

Yes/No

2. Do you agree with Council contributing land worth the equivalent of $8m ($4m each from the Cromwell and Vincent wards) to the Central Otago Affordable Trust to establish a secure homes model in this region? (note this would equate to a loss of return on developing the land of $16m - $8m worth of land value and $8m worth of net profit)

Yes/No

3. Do you have any other thoughts about Council’s role in providing affordable housing that you would like to share?

In addition to the postal invite, posters will be displayed in libraires and community centres in each of these wards. Council’s usual media outlets will be utilised also (eg Facebook).

4. Financial Considerations

The value of developed land is approximately double the value of the bare land (so $4m worth of bare land equates to a return on the developed land of $8m). Over both the Gair Avenue and the Pines development this would equate to $16 million dollar return to Council from land value plus profit. Further details on the financial ramifications of any decision to gift land will be provided in a future report.

The cost of the preferred engagement option can be met within the existing strategy projects budget. If a more comprehensive engagement approach is preferred, any additional costings will be considered in future advice.

5. Options

Option 1 – (Recommended)

Agrees to the engagement plan detailed in this paper to hear the views of the community about the proposal from the Central Otago Affordable Housing Trust.

Advantages:

· Enables the community sentiment to be captured in a timely way

· Is a cost effective and efficient approach

· Will enable advice about the communities’ view to be presented at the 3 July Council meeting.

Disadvantages:

· May result in lower participation rates than a more comprehensive engagement plan.

Option 2

Do not agree with the engagement plan outlined in this paper, and direct staff to come back to a future meeting with a more comprehensive engagement plan.

Advantages:

· A more comprehensive plan is likely to get more publicity, and therefore higher participation rates

Disadvantages:

· Is likely to delay any decision on supporting the Central Otago Affordable Housing Trust until after November 2022 due to the election period

· Further creates uncertainty for the Central Otago Affordable Housing Trust.

· May be more costly and may not be able to be meet within existing budgets.

6. 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 obtaining community views on ratepayer support for the proposal from the Central Otago Affordable Housing Trust.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes.
Considerations as to sustainability, the environment and climate change impacts	There are no considerations as to sustainability, the environment and climate change impacts as a consequence of this paper.
Risks Analysis	There is a risk with the method outlined in this paper that fewer responses are obtained compared to a more intensive engagement process.
Significance, Consultation and Engagement (internal and external)	The decision in this paper to survey the community does not trigger the threshold under the Significance and Engagement Policy. However, it is likely that the ultimate Housing Policy will require consultation using the special consultative procedure as outlined in the Local Government Act 2002.

7. Next Steps

Depending on Council direction, staff will seek community views during May and June and intend to report back to the 3 July 2022 Council meeting.

8. Attachments

Nil

Report author:	Reviewed and authorised by:

Saskia Righarts	Sanchia Jacobs
Chief Advisor	Chief Executive Officer
11/04/2022	12/04/2022

27 April 2022

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22.3.13 Elderly Persons Housing Rent Review

Doc ID: 572507

1. Purpose

To advise of the impact of the rent review for Council’s Elderly Persons Units for 2022/2023.

Recommendations

That the report be received.

2. Discussion

Council owns and maintains 98 Elderly Persons Housing units throughout the district which are predominately for accommodation of the elderly.

Council has a policy of charging market rent for new tenancies and market rent is set annually to provide for any movement in the market.

As part of the Long-term Plan 2018 – 28 (LTP 18/28), Council gave consideration to subsidising rents. However, Council did recognise that substantial costs would be placed on the ratepayers and reducing or subsidising the rents would have the effect of reducing any supplement that is provided to tenants by the Ministry of Social Development’s accommodation supplement. Therefore the status quo of charging market rents for Elderly Persons Units remains.

Annual rent reviews determine the new annual rent set each year for implementation. Rental increases are determined by a property valuer taking into account market rentals throughout the district.

The last rent review was undertaken in May 2019 and new rents became effective on 1 September 2019.

As part of the COVID-19 response plan Government by law, put a freeze on all rents for six months from 26 March - 25 June 2020.

A market rent assessment undertaken in July 2020 saw the market rents had remained static for the units. There were two tenants who were paying under market rent so their rent was increased to meet market rent.

Market Rent Assessment

For this rent review Quotable Value Limited (QV) reviewed the rent as at mid-2021. These market rentals will be applied to tenancies in the 2022/2023 financial year.

QV’s recommended market rentals have been derived in accordance with other comparable market rental evidence. That being other similar sized units in the same town locations. Additionally, the valuer has considered the density of the units, ability to tenant the units and that Council’s target market is predominately for the elderly. Essentially that does result in some moderating of rent levels often referred to as being at the “soft end” of the market rentals.

QV recognized the units have on-going maintenance work occurring, the units have all been double glazed and all units are compliant with the Healthy Homes standards. Occupancy rates at the time of QV’s rent review was within 94% - 96%.

QV noted:

“The property market has been affected by the Covid-19 outbreak with the market currently subject to a higher potential for change and uncertainty. The rental market has been characterised by gradually increasing rental levels and low vacancy rates. There is also a preference for more comfortable modern accommodation with less demand and higher vacancy rates for the older accommodation units.”

The recommended market rent increase is higher for the larger units at Alexandra, Clyde and in Cromwell where the units are more centrally located. There is either no increase or a small increase for the older units in Alexandra and Cromwell. Roxburgh and Ranfurly have a small increase with the exception of two bed-sit units in Roxburgh and 16 older units in Ranfurly where there is no increase.

Table 1 below shows the range of rental increases and gives a comparison with the last rental review undertaken in May 2019.

Table 1

Superannuation Rates

An increase to New Zealand Superannuation rates that was announced on 14 March 2022 will take effect from 1 April 2022. These rates have been applied when reviewing the percentage of income spent on rent after the accommodation supplement has been applied.

Accommodation Supplement and Community Services Card

The Ministry of Social Development’s accommodation supplement (AS) is available to assist with rental costs for those on a low income. For the purpose of this report, consideration has been given to those who receive New Zealand Superannuation and have a Community Services Card.

The accommodation supplement is asset tested, based on cash assets such as money in the bank or other assets that can clearly be converted into cash such as a house or flat that is owned but not tenanted by the owner.

Council does not means/income test prospective tenants but since 1 July 2018 applies the following criteria to prioritise applications:

1. Aged over 65 with a Community Services Card

2. Aged 60 plus with Community Service Card

3. Aged 60-64 with no Community Services Card, where long standing vacancies exist

4. Aged under 60 with clear social need, where there are long standing vacancies (CEO's discretion)

The Community Services Card is means/income tested and the threshold eligibility rate of additional income that can be earned is:

· Single superannuitant - $104.96 per week (gross)

· Couple receiving superannuation - $178.33 per week (gross)

Those with a Community Services Card are entitled to an accommodation supplement.

Effect of Applying Market Rental on Income

Net income shown in the tables below does not include Winter Energy Payments which are paid from 1 May 2022 and end on 1 October 2022 for a period of 22 weeks. A single superannuitant receives $20.46 weekly or a total amount of $450.12 for the 22 week period. A couple receives $31.82 weekly or $700.04 for the 22 week period.

Table 2 below shows the impact the rent increase has, as a percentage rate of income spent after the accommodation supplement has been applied for single occupancies.

Table 3 below, shows the percentage of income spent on rent for couples residing in larger units.

Market Rent Increase Summary

Of the 26 units in Alexandra and Clyde, 8 units have no rent increase, 8 have a $5.00 increase and 10 have a $10.00 increase.

All 31 Cromwell units have a rent increase, 19 units have a rent increase of $5.00. 12 units rent increases by $10.00.

All units in Roxburgh have a rent increase of $5.00 except for the 2 bed-sit units where there is no rental increase.

Ranfurly has 26 rental units,10 units have a $5.00 rent increase, 16 units have no rent increase.

Financial

Currently as at the end of February 2022 income from rent is favourable by 2.65%: $13,241.

The annual rental budgeted in the current Long-term Plan for years 2 and 3 is $725,000. This was a conservative approach based on the uncertainty of the rental market and factoring in a lower rental occupancy.

Based on the static occupancy rate of 93% at the time of writing this report the rental income may increase from the forecasted budget of $725,000 to $761,280, an estimated increase of $36,280 per annum.

Implementation

The process to increase rents has a statutory requirement under the Residential Tenancies Act 1986. Tenants must be given 60 days’ notice of a rent increase.

Action:

· The first letter of notification of a rental increase will be posted, or delivered, to affected tenants no later than 29 April 2022 advising of the proposed rent increase effective 1 July 2022.

· A second notification letter will be posted as a reminder in May 2022.

3. Attachments

Nil

Report author:	Reviewed and authorised by:

Janice Remnant	Louise van der Voort
Property and Facilities Officer (Māniatoto)	Executive Manager - Planning and Environment
1/04/2022	8/04/2022

Council meeting Agenda

27 April 2022

I. Statement of Financial Performance for the period ending 28 February 2022

2021/22	8 MONTHS ENDING 28 FEBRUARY 2022					2021/22
		YTD	YTD	YTD
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
	Income
33,270	Rates	22,606	22,517	89	˜	33,270
7,248	Govt Grants & Subsidies	9,194	11,210	(2,016)	˜	16,217
7,323	User Fees & Other	4,299	4,788	(489)	˜	7,866
17,286	Land Sales	3,778	4,750	(972)	˜	14,650
2,155	Regulatory Fees	1,893	1,633	260	˜	2,155
2,104	Development Contributions	1,399	1,403	(4)	˜	2,104
388	Interest & Dividends	53	258	(205)	˜	388
-	Reserves Contributions	237	-	237	˜	-
-	Profit on Sale of Assets	1	-	1	˜	-
55	Other Capital Contributions	95	2	93	˜	55
69,829	Total Income	43,555	46,561	(3,006)	˜	76,705

	Expenditure
13,565	Staff	8,270	8,888	618	˜	13,529
587	Members Remuneration	339	392	53	˜	587
8,904	Contracts	5,738	6,791	1,053	˜	9,724
2,902	Professional Fees	2,021	2,615	594	˜	3,881
9,997	Depreciation	7,000	6,665	(335)	˜	9,997
13,926	Costs of Sales	1,962	100	(1,862)	˜	7,290
3,920	Refuse & Recycling Costs	2,229	2,288	59	˜	3,920
1,723	Repairs & Maintenance	994	1,180	186	˜	1,739
1,410	Electricity & Fuel	919	931	12	˜	1,410
-	Loss on Sale of Asset	262	-	(262)	˜	-
652	Grants	426	483	57	˜	652
1,115	Technology Costs	640	738	98	˜	1,099
303	Projects	687	804	117	˜	1,206
639	Rates Expense	523	567	44	˜	634
423	Insurance	450	423	(27)	˜	423
2,037	Other Costs	964	1,352	388	˜	2,041
62,103	Total Expenses	33,422	34,217	795	˜	58,132

7,726	Operating Surplus / (Deficit)	10,133	12,344	(2,211)		18,573

This table has rounding (+/- 1)

The financials for February 2022 show an overall unfavourable variance of ($2.211M). Government grants and subsidies are unfavourable by ($2M). This is due to the timing of funding received for the Three Waters Stimulus funded projects which is behind budget by ($1.74M). Cost of Sales of $1.962M have come through for stage one of the Dunstan Park subdivision. The budgets for subdivision cost of sales are recognised in June, so purely timing.

Income of $43.555M against the year-to-date budget of $46.561M

Overall income has an unfavourable variance against the revised budget of ($3M). This relates to the timing of funding received for the Three Waters Stimulus funded projects which is behind budget by ($1.74M). Payment of $2.3M was received in March bringing the actuals back into alignment with the budget. Other factors include the land sale revenue for a parcel of Three Waters land and the timing of the roading Waka Kotahi subsidies and other grants.

The main variances are:

· Government grants and subsidies revenue has an unfavourable variance of ($2.016M). The unfavourable variance relates to the timing of funding received for the Three Waters Stimulus funded projects which is behind budget by ($1.74M), as mentioned above payment of $2.3M was subsequently received in March. The timing of the Waka Kotahi New Zealand Transport Agency (Waka Kotahi) roading subsidy is contributing an unfavourable variance of ($700k). Subsidies are claimed for both the operational and capital roading work programmes. This is offset by revenue of $207k from Tourism Infrastructure Funding (TIF) for the new Clyde toilet and Miners Lane carparks. The budgets for these activities are included in ‘user fees and other’. This will be re-aligned in the next revision of the budget. There is a favourable variance for Tourism Central Otago funding of $166k, received from the Ministry of Business, Innovation and Employment.

· User fees and other has an unfavourable variance of ($489k). Of this variance, ($341k) is due to the grants budget being included in ‘other income’ rather than the correct place of ‘grants and subsidies’. This budget includes the TIF funding for the new Clyde toilet and Miners Lane carparks. As mentioned above, this will be corrected in the next revision of the budget. Year-to-date revenue for this category is also down ($33k) in waste levy income and ($118k) for water meter readings. Water meter readings is believed to be a timing issue which is expected to correct as the year progresses.

· Land sales have an unfavourable variance of ($972k). Of this ($750k) relates to Three Waters land that Council agreed to sell as part of the long-term planning process with the remaining ($222k) variance relating to the Dunstan Park subdivision.

· Regulatory fees have a favourable variance of $260k. This variance continues to be driven by building consent revenue received, which year-to-date is $262k ahead of budget.

· Interest and dividends revenue is unfavourable against budget by ($205k). Interest rates received on term deposit investments are continuing to remain low, due to low market interest rates. Large project costs are also being managed with current cashflows while waiting for income to be received. This includes subdivision development costs and Three Waters Stimulus funding. This results in less cash available to be invested and also reduces the length of time term deposits can be locked in for. The current investment with Kiwibank is only returning 0.07% interest.

· Reserves contributions have a favourable variance of $237k. These contributions are dependent on developers’ timeframes and therefore difficult to gauge when setting budgets.

Expenditure of $33.422M against the year-to-date budget of $34.217M

Expenditure has a favourable variance of $795k. The main drivers behind the favourable variance are contracts, staff, professional fees, and other costs. Offsetting this favourable variance is the cost of sales from stage 1 of the Dunstan Park subdivision, along with loss on sale of assets and depreciation.

The main variances are:

· Staff costs have a favourable variance of $618k. The is due in part to the lag between staff movement and the replacement of new staff, plus the relevant recruitment costs. It also includes staff training, made up of conferences and planned attendance at workshops, travel and accommodation. Attendance and travel plans have been delayed due to the on-going impact of COVID-19.

· Contracts have a favourable variance of $1.053M. Contract expenditure is determined by workflow and the time of the contract. The outcome of this is that the phased budgets will not necessarily align with actual expenditure, meaning some work appears favourable, and some contracts spend year-to-date appear unfavourable. Planned maintenance $298k; contracts $590k; physical works contract $354k; and roading contracts ($260k) are the key timing variances year-to-date. The contracts variance of $590k is being driven by the timing of the Three Waters Stimulus operational improvements projects.

· Professional fees have a favourable variance of $594k. This is similar to contract expenditure where budget and actuals do not align throughout the year but typically align by the end of year. Major variances include: asset management plans and management costs ($69k); engineers fees $105k; management consultants $356k; planning consultants $145k and recoverable professional fees ($205k).

· Depreciation has an unfavourable variance of ($335k). This is mainly due to a difference between the actual and budgeted wastewater depreciation. Wastewater assets reflect the updated valuations which occurred after the 2021-31 Long-term Plan was approved. The depreciation budget has been brought into alignment for the Annual Plan 2022/23. Areas with major variances include: libraries ($40k); information services ($45k); parks reserves recreation $298k; property $39k; wastewater ($391k); and waste management ($56k).

· Costs of sales has an unfavourable ($1.862M). This is due to the costs incurred for stage 1 of the Dunstan Park subdivision and is offset by land sales revenue of $3.7M received for the first stage of this development. The costs of sales budget is reflected in June and will continue to show as an unfavourable variance as this has not been adjusted during the second budget revision.

· Repairs and maintenance has a favourable variance of $186k, mainly due to the timing of various projects as well as building maintenance requirements. Weed control $67k, buildings repairs and maintenance $58k and sludge treatment $30k are the key timing variances.

· Loss on sale of asset has an unfavourable variance of ($262k). This is due to the disposal of District Rural Fire building assets to Fire and Emergency New Zealand (FENZ) as part of Council resolution 21.2.6 dated March 2021. This includes the Omakau Fire Depot and the Tarras Fire Station.

· Projects have a favourable variance of $117k, due to the phasing schedule of Tourism Central Otago projects.

Other costs breakdown is as below:

2021/22		YTD Actual	YTD Revised Budget	YTD Variance		2021/22
Annual Plan	Other Costs breakdown	YTD Actual	YTD Revised Budget	YTD Variance		Revised Budget
$000		$000	$000	$000		$000
535	Administrative Costs	213	365	152	˜	550
690	Office Expenses	342	449	107	˜	666
234	Operating Expenses	147	157	10	˜	234
327	Advertising	117	208	91	˜	329
175	Valuation Services	108	118	10	˜	175
76	Retail	37	55	18	˜	87
2,037	Total Other Costs	964	1,352	388		2,041

This table has rounding (+/- 1)

· Other costs have been configured to include only need based costs which will fluctuate against budget from time to time. There are no significant variances of note to report on at present.

II. Profit and Loss by Activity for the period ending 28 February 2022

This table has rounding (+/- 1)

* The funding activity has been removed as this is not an operational activity.

· Infrastructure – expenditure has an unfavourable variance of $61k. This department is fully on-charged as an overhead. The overspend of $61k is due to the timing of staff salaries being charged out to capital projects.

· Roading – income has an unfavourable variance of ($878k). This is predominately due to the Waka Kotahi subsidy. This subsidy moves in conjunction with the subsidised roading operating and capital work programmes. Operating expenditure is on schedule with the budget, with a favourable variance of $99k. The capital work programme is currently behind budget with a year-to-date variance of $642k.

· Waste Management - income has an unfavourable variance of ($143k). User fee revenue of $858k is lower than budget, though remains on par with last years’ actuals of $844k. Expenditure has an unfavourable variance of ($177k). Asset management costs have increased by ($108k) due to the waste services tender that is being reviewed, along with additional traffic management that was needed early in the financial year. Depreciation has also increased year-to-date by ($56k). Waste assets were revalued 1 July 2021 which was post adopting the 2021-31 long-term Plan.

· Parks and Recreation – income has a favourable variance of $30k. This is mainly due to a Ministry of Business Innovation and Employment (MBIE) responsible camping funding carried over from the prior year. Expenditure has a favourable variance of $693k. A large portion of this is due to depreciation being $299k lower than budget. The remaining favourable variance is due to the timing of workplans and staffing requirements with underspends in; contracts $211k; other costs $93k; grants $25k; and staff costs $41k.

· Corporate Services – income has a small favourable variance of $11k. Expenditure has an unfavourable variance of ($37k). This is mainly due to a ($262k) loss of sale of assets from the disposal of District Rural Fire building assets to FENZ as part of Council resolution 21.2.6 dated March 2021. This includes the Omakau Fire Depot and the Tarras Fire Station. The loss is offset by underspends in computer maintenance and support $57k, office expenses $39k, professional fees $34k and contracts $29k.

· People and Culture – income has an unfavourable variance of ($41k). Impacting income is the loss of the shared services arrangement with the Otago Regional Council by ($17k) and the timing of grant funding received for New Zealand Libraries Partnership Programme ($22k). Expenditure has a favourable variance of $135k. Driving these variances are underspends in human resources $56k, health and safety $31k and libraries $68k. This is offset by an unfavourable variance in service centres of ($37k). Staff budgets in the 2021-31 Long-term Plan were consolidated into fewer costs centre. As a result, the actuals are not aligned with the budgets.

· CEO – income has an unfavourable variance of ($11k). Expenditure has a favourable variance of $464k. This is mainly due to the timing and need for: consultants $215k, staff costs $146k and other costs $43k.

· Property – income has an unfavourable variance of ($50k). The Dunstan Park subdivision sales from stage one came through in January 2021. Expenditure has an unfavourable variance of ($1.66M). This is mainly due to the costs of sales from stage one of the Dunstan Park subdivision of $1.9M. As discussed above the budget for the costs of sales will come through in June. This is offset by underspends in community buildings $129k, commercial and other property $91k, airports $56k and elderly person housing $29k.

· Governance and Community Engagement – income has a favourable variance of $244k. This continues to be driven by the budget phasing of tourism grants, in particular Strategic Tourism Assets Protection Programme (STAPP), Tourism Communities Support and Recovery and Re-set plan (SRR) funding. Expenditure has a favourable variance of $623k. This is due to underspends in promotions and tourism $252k, governance $80k, community development $114k, visitor centres $52k and regional identity $114k. The promotions and tourism variance relates to the phasing schedule for the Tourism Central Otago projects.

· Planning (Regulatory) – has a favourable income variance of $334k. This is mainly due to an increase in building permit revenue of $262k. Expenditure has a favourable variance of $243k. This is due to the timing and need of training and compliance costs $63k, staff costs $69k and contracts $61k.

· Three Waters – income has an unfavourable variance of ($2.63M). This is mainly due the timing of grants ($1.74M), metered water sales ($118k) and land sales of ($750k). As discussed earlier the grants variance is being driven from the timing of Three Waters Stimulus funding, payment which has since been received in March. Expenditure has a favourable variance of $472k. Driving this favourable variance are contracts by $676k; cost of sales $100k and professional fees $112k. This is offset by higher than budgeted depreciation of ($484k). Of the contracts variance, $535k is being driven by the timing of the Three Waters Stimulus operational improvements projects.

III. Capital Expenditure

Year-to-date, 32% of the total capital spend against the full year’s revised capital budget, has been expensed.

Due to supply chain and resource issues related to COVID-19, the capital works programme is behind the revised annual plan schedule. The second forecast of the 2021-22 Annual Budget is being tabled in the same council meeting as this report. It discusses any major adjustments to budget requirements.

2021/22						2021/22	Progress to date against revised budget
Annual Plan	CAPITAL EXPENDITURE	YTD Actual	YTD Revised Budget	YTD Variance		Revised Budget
$000		$000	$000	$000		$000

6,058	Council Property and Facilities	895	5,768	4,873	˜	9,146	10%
382	Waste Management	377	913	536	˜	913	41%
-	i-SITEs	-	4	4	˜	4	0%
50	Customer Services and Administration	15	41	26	˜	62	24%
204	Vehicle Fleet	108	93	(15)	˜	256	42%
248	Planning	-	190	190	˜	348	0%
352	Information Services	175	621	446	˜	1,386	13%
164	Libraries	79	123	44	˜	512	15%
1,713	Parks and Recreation	602	2,682	2,080	˜	3,755	16%
7,420	Roading	4,658	5,300	642	˜	7,950	59%
14,243	Three Waters	13,431	25,283	11,852	˜	38,726	35%

30,834	Grand Total	20,340	41,018	20,678		63,058	32%

Council Property and Facilities $4.873M favourable against budget:

Cromwell Town Centre projects are driving the majority of this variance by $3.3M. The work programme is currently in the investigation and design phase for the Cromwell Memorial Hall and Events Centre. Other areas behind budget include community buildings $362k, council offices $875k and elderly person housing $210k.

Waste Management $536k favourable against budget:

The transfer station reconfiguration projects are contributing to $381k of the underspend. Some of this work in underway but not all work will be completed this year. The Glass Crushing plant still has some work to be carried out including bunkers and some extraction work.

Vehicle Fleet ($15k) unfavourable against budget:

Vehicle renewals and purchases are slightly ahead of budget with 42% of the $256k total revised budget being already spent. The timing will balance out by end-of-year.

Information Services $446k favourable against budget:

Information Services projects are behind budget. Projects include Geographic Information Services $102k, enhanced customer experience digital services $47k, enterprise resource planning information services $163k and financial performance improvement $96k.

Parks and Recreation $2.08M favourable against budget:

This favourable variance is driven by a mixture of the timing of project budgets and contractor’s availability to perform the work. Projects include landscaping, signage and irrigation. The Cromwell pool replacement heat pump accounts for half of the capital budget variance. The work on installing the heat pump will begin after Easter.

Roading $642k favourable against budget:

Roading projects are behind schedule, this is mainly due to the timing of the capital programme which tend to ramp up over the summer construction season. Projects include footpath renewals $143k, carpark renewals $326k, structures renewals $354k and minor improvements $527k.

Three Waters is $11.8M favourable against budget:

The favourable variance is due to the timing of construction projects. The main drivers include the Lake Dunstan water supply $3.7M, water treatment plant and capacity upgrades $2.3M, water supply renewals $1.23M and water stimulus fund projects $1.8M.

IV. Statement of Financial Position

The Statement of Financial Position (Balance Sheet) is to show the comparisons between actual and budget for control accounts. Comparing the assets, liabilities and equity to the prior financial year actuals and the current year-to-date actuals, along with the full year revised budget and Annual Plan.

2020/21 Full Year Actual	2020/21 YTD February Actual	STATEMENT OF FINANCIAL POSITION	2021/22 YTD February Actual	2021/22 Revised Budget	2021/22 Annual Plan
$000	$000	for the period ended 28 February 2022	$000	$000	$000
		EQUITY
392,456	382,765	Ratepayers equity	404,067	414,890	393,593
12,321	8,464	Surplus/(Deficit)	10,135	18,491	7,644
7,035	14,580	Council Reserves	7,822	4,258	4,178
487,465	483,494	Property revaluation reserve	488,077	496,629	496,629
(17)	(20)	Investment shares fair value revaluation reserve	(17)	(20)	(20)
80	80	Restricted reserves	80	80	80
899,340	889,363	Total equity	910,164	934,328	902,104
		REPRESENTED BY:
		Current assets
6,514	11,329	Cash and cash equivalents	7,171	19,896	19,896
10,000	8,500	Other financial assets	4,000	8,000	8,000
4,852	2,297	Receivables	3,948	3,171	3,171
-	-	Non Current assets held for sale	-	-	-
5,394	3,615	Inventories	6,720	1,509	1,509
-	-	Investment Bond	-	625	625
26,760	25,741	Total current assets	21,839	33,201	33,201
		Less current liabilities
256	435	Agency and deposits	686	273	273
13,254	6,839	Payables and deferred revenue	10,922	4,705	4,705
673	551	Employee entitlements	675	1,010	1,010
-	-	Borrowings and other financial liabilities	-	-	-
14,183	7,825	Total current liabilities	12,283	5,988	5,988
12,577	17,916	Working capital	9,556	27,213	27,213
		Non-current assets
111	109	Available for sale financial assets	111	109	109
282	299	Loans and receivables	245	333	333
26,030	24,119	Work in Progress	42,274	63,058	30,834
852,712	844,047	Property, plant and equipment	850,361	864,309	864,309
1,272	845	Intangible assets	1,261	2,271	2,271
431	355	Forestry assets	431	357	357
5,925	1,675	Investment property	5,925	1,683	1,683
886,763	871,449	Total non-current assets	900,608	932,120	899,896
		Less non-current liabilities
-	2	Provisions	-	5	5
-	-	Borrowings and other financial liabilities	-	25,000	25,000
-	2	Total non-current liabilities	-	25,005	25,005

899,340	889,363	Net assets (assets minus liabilities)	910,164	934,328	902,104
* year-to-date actual values are subject to change and are only indicative of the end of year totals. This table has rounding (+/- 1)

V. Internal Loans

Forecast closing balance for 30 June 2022 is $4.075M.

OWED BY	Original Loan	1 July 2021	30 June 2022 Forecast
OWED BY	Original Loan	Opening Balance	Closing Balance
Public Toilets	670,000	491,239	468,048
Tarbert St Bldg	25,868	13,067	11,574
Alex Town Centre	94,420	49,759	44,545
Alex Town Centre	186,398	91,041	79,921
Alex Town Centre	290,600	155,412	139,137
Centennial Milkbar	47,821	21,284	18,192
Vincent Grants	95,000	19,000	9,500
Pioneer Store Naseby	21,589	10,949	9,609
Water	867,000	717,829	691,212
ANZ Bank Seismic Strengthening	180,000	149,030	143,504
Molyneux Pool	650,000	571,900	539,400
Māniōtoto Hospital	1,873,000	1,775,142	1,723,630
Alexandra Airport	218,000	204,485	197,216
Total	5,219,695	4,270,138	4,075,488

This table has rounding (+/- 1)

VI. External Loans

The total amount of external loans at the beginning of the financial year 2021-22 was $189k. As at 28 February 2022, the outstanding balance was $152k. Council has received $36.7k in principal payments and $6.5k in interest payments.

Owed By	Original Loan	1 July 2021 Actual Opening Balance	Principal	Interest	28 February 2022 Actual Closing Balance
Cromwell College	400,000	130,770	23,382	4,696	107,388
Māniōtoto Curling	160,000	35,662	9,091	1,057	26,571
Oturehua Water	46,471	22,623	4,307	795	18,316
	606,471	189,055	36,780	6,548	152,275

This table has rounding (+/- 1)

Reserve Funds table

· As at 30 June 2021 the Council has an audited closing reserve funds balance of $7.035M. This reflects the whole district’s reserves and factors 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 whole district is projected to end the 2021-22 financial year with a closing deficit of ($10.772M).

3. Attachments

Appendix 1 - Reserves 2021_22 .pdf ⇩

Report author:	Reviewed and authorised by:

Ann McDowall	Leanne Macdonald
Finance Manager	Executive Manager - Corporate Services
1/04/2022	4/04/2022


AGENDA Ordinary Council Meeting Wednesday, 27 April 2022
Date:	Wednesday, 27 April 2022
Time:	10.30 am
Location:	Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra (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:

Ian Evans	Julie Muir
Water Services Manager	Executive Manager - Infrastructure Services
24/03/2022	30/03/2022

Report author:	Reviewed and authorised by:

Morgan Potter	Sanchia Jacobs
TCO Marketing and Event Support	Chief Executive Officer
22/02/2022	12/04/2022

Local Government Act 2002 Purpose Provisions	This decision promotes the cultural and economic wellbeing of communities, in the present and for the future by enabling communities to choose for themselves whether or not to trade on Easter Sunday.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes
Considerations as to sustainability, the environment and climate change impacts	There is no environmental impact.
Risks Analysis	No risks have been identified in the renewal of this policy.
Significance, Consultation and Engagement (internal and external)	The special consultative process has been followed as required under legislation.

Report author:	Reviewed and authorised by:

Alix Crosbie	Sanchia Jacobs
Senior Strategy Advisor	Chief Executive Officer
1/04/2022	12/04/2022

Local Government Act 2002 Purpose Provisions	The recommendation, in this case, relates to the Civil Defence Emergency Management Act 2002
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes
Considerations as to sustainability, the environment and climate change impacts	There is no negative implication to these areas by a decision either in support of or against this recommendation.
Risks Analysis	The recommendation increases capacity within the council’s Civil Defence Emergency Management Team. This assists with succession planning while reducing exposure to risk by having insufficient trained or available Local Controllers.
Significance, Consultation and Engagement (internal and external)	Expressions of Interest were sought from within the council for this position and this recommendation is the result of that process.

Report author:	Reviewed and authorised by:

Derek Shaw	Sanchia Jacobs
Emergency Manager - Central Otago	Chief Executive Officer
7/04/2022	13/04/2022