Agenda of Cromwell Community Board meeting

Cromwell Community Board Agenda

22 March 2023

MINUTES OF A mEETING OF THE
Cromwell Community Board
HELD IN THE Cromwell Service Centre, 42 The Mall, Cromwell
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Thursday, 9 February 2023 COMMENCING AT 2.00 pm

PRESENT: Ms A Harrison (Chair), Mr B Scott, Cr S Browne, Cr N Gillespie, Cr C Laws, Ms M McConnell

IN ATTENDANCE: Q Penniall (Acting Chief Executive Officer), D Rushbrook (Group Manager - Community Vision) (via Teams), G Bailey (Acting Group Manager - Community Experience), L Webster (Acting Group Manager - Planning and Infrastructure), S Finlay (Chief Financial Officer), R Williams (Community Development Advisor), D Beange (Welcoming Communities Officer), G Robinson (Property and Facilities Manager), A Rodgers (Principal Policy Planner), M De Cort (Communications Coordinator), S Reynolds (Customer Services Officer) and W McEnteer (Governance Manager)

1 Apologies

There were no apologies

2 Public Forum

Rosanna Ottaway

Ms Ottaway provided an outline of an idea Connect Cromwell had for funding secure bike locks in Cromwell township. She then responded to questions.

Paula Clark and Mike Driscoll

Ms Clark and Mr Driscoll gave an update on the proposed renovations for the Cromwell Sports Club. They then responded to questions.

3 Confirmation of Minutes

Committee Resolution

Moved: Scott

Seconded: Browne

That the public minutes of the Cromwell Community Board Meeting held on 28 November 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: Martin Anderson and Jennifer Hay from Cromwell Museum joined the meeting for item 23.1.2.

23.1.2 Cromwell Museum - Updated Memorandum of Understanding and New Trustee

To consider an updated memorandum of understanding with the Cromwell Museum Trust and the endorsement of a new Trustee.

Committee Resolution

Moved: Gillespie

Seconded: Scott

That the Cromwell Community Board

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

B. Approves the updated memorandum of understanding with the Cromwell Museum Trust, as attached at appendix 1 of the report.

C. Endorses Donna Hipkins as the new trustee to the Cromwell Museum Trust.

Carried

23.1.3 Cromwell Sports Club Request for Funding

To consider a request for funding from the Cromwell Sports Club Incorporated to upgrade its facilities on Anderson Park Recreation Reserve.

Committee Resolution

Moved: Laws

Seconded: McConnell

That the Cromwell Community Board

A. Receives the report and accepts the level of significance for the release of the Cromwell Sports Club Reserve Fund.

B. Agrees to release the Cromwell Sports Club Fund reserve (3151) amount of $69,333 to the Cromwell Sports Club towards the upgrade of its facilities.

C. Agrees to consider any additional contribution towards the upgrade of the Cromwell Sports Club facilities on Anderson Park Recreation Reserve as part of the 2024-34 Long-term Plan process.

D. Agrees that the release of the Cromwell Sports Club Fund reserve (3151) is subject to the Sports Club achieving its fundraising targets from other funders.

Carried

Note: Rebekah de Jong from the Central Otago District Arts Trust joined the meeting for item 23.1.4.

23.1.4 Multicultural Mural on the Cromwell Football Club on Alpha Street

To approve the placement of a multicultural mural that reflects the diversity of the community on the Cromwell Football Club building on Alpha Street in Cromwell.

After discussion it was noted that the name of the building was the Alpha Street Pavilion and that this should be recognised in the resolution.

Committee Resolution

Moved: Browne

Seconded: Scott

That the Cromwell Community Board

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

B. Approves installation of a multicultural mural on the Alpha Street Pavilion building on Alpha Street in Cromwell.

C. Agrees to proceeding with installation on either the Southern and Western façade (facing playgrounds) or only Southern façade (facing Alpha Street), depending on upcoming building renovations.

Carried

23.1.5 Cromwell Memorial Hall/Events Centre Project Update

To present update on preliminary design for the Cromwell Memorial Hall/Events Centre.

After discussion it was agreed that the Board should endorse both the preliminary design and next steps, rather than just receive an update on them.

Committee Resolution

Moved: Browne

Seconded: McConnell

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

B. Endorses the preliminary design of the Cromwell Memorial Hall/ Events Centre for engagements with the community.

C. Endorses the next steps as outlined in the report:

· Preliminary design information released to public on the Let’s Talk – consultation section of the Central Otago District Council webpage.

· Schedule drop-in sessions for public feedback in March.

· Meeting with external funders.

· Completion of developed design.

· Project Advisory Group review in March and April.

· Developed design presented to the Board for approval at May meeting.

Carried

23.1.6 Plan Change 19 Update

To update the Community Board on the progress of Plan Change 19 including detailing the process, submissions received, and next stages.

Committee Resolution

Moved: Browne

Seconded: Laws

That the report be received.

Carried

6 Mayor’s Report

23.1.7 Mayor's Report

His Worship the Mayor was not present at this meeting.

7 Chair's Report

23.1.8 Chair's Report

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

· Attended the By-Election candidates public meeting.

· The Chair hoped that everyone has placed their vote for the Cromwell Community Board by-election.

Committee Resolution

Moved: Harrison

Seconded: Browne

That the report be received.

Carried

8 Members' Reports

23.1.9 Members' Reports

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

Mr Scott reported on the following:

· Attended the ‘A Very Central Christmas’ event at McNulty House.

· Attended the Cromwell and Districts Promotions Group meeting.

· Attended the By-Election candidates public meeting.

Cr Browne reported on the following:

· Attended the Tarras Community Group meeting.

· Attended the inaugural Cromwell Athletics Club meeting.

Cr Gillespie reported on the following

· Advised of some items of interest from the December Council meeting – Private Plan Change 21 was approved in principal. The Plan Change 22 - Dark Sky was reported on and will be reported back on for approval.

· Advised of some items of interest from the January Council meeting - Three Waters Forward Works Program to 30 June 2024. Noted the passing of the following policies: Memorials Policy, Roading Bylaw, Closed Circuit Television Policy, Fraud, Bribery and Corruption Policy and the Policies Policy.

· Noted concern around the extreme fire risk in the district.

Cr Laws reported on the following

· Apologies to the Historic Precinct Meeting

· Advised of an item of interest from the January Council meeting – noting that Waitaki District Council are running a training meeting which will be attended by some of the Council and Community Board members

Ms McConnell reported on the following:

· Attended the Central Otago symposium on the Resource Management Law Reform.

Committee Resolution

Moved: Scott

Seconded: Browne

That the report be received.

Carried

9 Status Reports

23.1.10 February 2023 Governance Report

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

Committee Resolution

Moved: Gillespie

Seconded: McConnell

That the report be received.

Carried

10 Date of The Next Meeting

The date of the next scheduled meeting is 22 March 2023.

11 Resolution to Exclude the Public

Committee Resolution

Moved: Gillespie

Seconded: Browne

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

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

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
Confidential Minutes of Ordinary Board Meeting	s7(2)(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
23.1.11 - Gair Avenue 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
23.1.12 - February 2023 Confidential Governance Report	s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

Carried

Note: The public were excluded at 3.45 pm and the meeting closed at 5.19 pm.

22 March 2023

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6 Reports

23.2.3 Request to extend the Lease held by Central Wormworx Limited (PRO: 3112 L2)

Doc ID: 614745

1. Purpose of Report

To consider a proposal to grant a short extension to the lease held by Central Wormworx Limited over part of Lot 4 Deposited Plan 526140.

Recommendations

That the Cromwell Community Board

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

B. Agrees to vary the lease held by Central Wormworx Limited, over part of Lot 4 DP 526140, as follows:

• Additional Right(s) of Renewal: One (1) of One (1) Year (commencing 01 July 2023), followed by One (1) of Two (2) Years (commencing 01 July 2024).

• Rental: No change.

• New Final Expiry Date: 30 June 2026.

• Right(s) of Assignment: Nil.

• Cancellation Clause: Post renewal dated 01 July 2024, (if exercised), either party may cancel the Lease with no less than six (6) months written notice.

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

2. Background

By Deed of Lease dated 8 September 2004, Council leases part of their endowment land between Bannockburn and Cemetery Roads to Wormworx Central Limited (Wormworx).

Wormworx operate a commercial worm farm on the site producing vermicast from organic waste sourced primarily from orchards, vineyards, and restaurants.

The lease area is described as being part of Lot 4 Deposited Plan (DP) 526140 (Lot 4). It has an area of is approximately 8,858 square metres.

Lot 4 is part of a 52 hectare block of endowment land which is held by Council for the “betterment of Borough funds”. The land is identified in the Cromwell Spatial Plan as being possible future industrial land.

A plan of the lease area, which is accessed off Cemetery Road, is shown below in figure 1.

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Figure 1 – Central Wormworx lease site on Cromwell endowment land

The original lease, which commenced in July 2004, was granted for a term of seven years. It included one right of renewal of seven years, with the final expiry date being June 2018.

In 2016, the Cromwell Community Board (the Board) agreed to vary the original lease to include an additional right of renewal of five years, with the final expiry being June 2023.

In June 2020, Wormworx asked Council to consider extending the lease by a further 11 years, to 30 June 2034. The lessee advised that this would align the expiry of the lease with the expiry of resource consents held for the purpose of operating the business.

On consideration, that request was declined as the land contained in the lease was (is) identified in the Cromwell Spatial Plan as being future industrial land. While deliberating, the Board noted that declining the 2020 application would not prevent the lessee from reapplying at a later date.

In October 2022, Council staff met with the lessee (onsite) to discuss the possibility of the lease extended again. During that meeting, it was agreed that a new report would be presented to the Board to recommend varying the current lease as follows:

· Additional Right(s) of Renewal: One (1) of One (1) Year (commencing 01 July 2023), followed by One (1) of Two (2) Years (commencing 01 July 2024).

· Rental: No change.

· New Final Expiry Date: 30 June 2026.

· Right(s) of Assignment: Nil.

· Cancellation Clause: Post renewal dated 01 July 2024, (if exercised), either party may cancel the Lease with no less than six (6) months written notice.

3. Discussion

As referred to above, Lot 4 is part of a larger parcel of endowment land. The land is currently zoned rural but is identified in the Cromwell Spatial Plan as being future industrial land, (pursuant to a Council initiated plan change process).

If the Board approves the variation outlined above, the lessee’s tenure of the site will be guaranteed until 30 June 2024. If the lease is renewed on 01 July 2024, that guarantee will be extended to 31 December 2024.

As the lessee has confirmed that he intends to use the extra time to wind the business down, the objectives of the Cromwell Masterplan will not be compromised as the lease may be cancelled by Council (or surrendered by the lessee) post 31 December 2024.

This is consistent with other leases on the land which also include cancellation clauses.

4. Financial Considerations

The lease provided for a rent review on 01 July 2021. On review, the market rental was determined as being $13,995 plus GST per annum. No additional rent reviews are not recommended.

The lessee will continue to be responsible for all outgoings and any charges levied against the land including local and regional council rates.

5. Options

Option 1 – (Recommended)

To agree to vary the lease held by Central Wormworx Limited, over part of Lot 4 DP 526140, as follows:

· Additional Right(s) of Renewal: One (1) of One (1) Year (commencing 01 July 2023), followed by One (1) of Two (2) Years (commencing 01 July 2024).

· Rental: No change.

· New Final Expiry Date: 30 June 2026.

· Right(s) of Assignment: Nil.

· Cancellation Clause: Post renewal dated 01 July 2024, (if exercised), either party may cancel the Lease with no less than six (6) months written notice.

Advantages:

· The lessee’s tenure will be guaranteed until 31 December 2024.

· Allows the lessee to vacate the site as and when required post 30 June 2024.

· Will not compromise the objectives of the Cromwell Spatial Plan.

· Income will be generated for longer than originally anticipated.

Disadvantages:

· None.

Option 2

To not agree to vary the lease held by Central Wormworx Limited.

Advantages:

· None

Disadvantages:

· The lessee will be required to vacate the site on expiry of the lease on 30 June 2023.

No additional income will be generated.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social and cultural wellbeing of the community, in the present and in the future by considering the implementation and objectives of the Cromwell Spatial Plan.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The decision is consistent with the Spatial plan being Stage 1 of the Cromwell – “Eye to the Future” Masterplan as adopted by the Board in May 2019.
Considerations as to sustainability, the environment and climate change impacts	The Cromwell – “Eye to the Future” Masterplan promotes for a well-considered and sustainable development of Cromwell and surrounding area
Risks Analysis	The Cromwell – “Eye to the Future” Masterplan promotes for a well-considered and sustainable development of Cromwell and surrounding area.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered, with none of the criteria being met or exceeded.

7. Next Steps

1. Community Board Approval 22 March 2023

2. Lease drafted and executed April 2023

8. Attachments

Nil

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Team Leader - Statutory Property	Acting Chief Executive Officer
8/02/2023	14/03/2023

22 March 2023

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23.2.4 Review of Proposal to Dispose of Part of Record of Title 13B/860 to Waka Kotahi New Zealand Transport Agency as Agents of the Crown (PRO: 62-3047-00).

Doc ID: 621471

1. Purpose of Report

To consider the compensation required in disposing approximately 1,740 square metres of Record of Title OT13B/860, to Waka Kotahi as agents of the Crown, for the purpose of constructing a roundabout at the intersection of State Highway 8B and Barry Avenue.

Recommendations

That the Cromwell Community Board

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

B. Notes the previous agreement with Waka Kotahi for the compulsory acquisition of this land.

C. Recommends to Council the Community Board resolution of 21 June 2022 to dispose of approximately 1,740 square metres of Record of Title OT13B/860 to Waka Kotahi New Zealand Transport Agency for $118,000 (One Hundred and Eighteen Thousand Dollars) plus GST (if any) be upheld.

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

2. Background

Original Report

At its meeting of 21 June 2022, the Cromwell Community Board (the Board) considered a proposal to dispose of approximately 1,740 square metres of land, Record of Title OT13B/860, for the purpose of constructing a roundabout at the intersection of State Highway 8B and Barry Avenue.

The report also recommended that Waka Kotahi be granted consent to erect temporary security fencing around a portion of Section 126 Block III Cromwell Survey District to provide for the safe construction of new footpaths which are being constructed as part of the project.

The June 2022 report superseded an existing report of 29 March 2022 which considered a proposal to dispose of approximately 2,720 square metres of land, Record of Title OT13B/860, for the purpose of constructing a roundabout at the intersection of State Highway 8B and Barry Avenue.

Waka Kotahi revised their plan of the works to remove the additional area taken for sight lines. Sight lines are used to provide unimpeded views of approaches to intersections, corners, and roundabouts. While sight lines are not a compulsory construction requirement, they do improve visibility which makes it safer for road users. As the roundabout is constructed on a flat road which has good visibility, sight lines were not required in this instance.

As a result of the reduced sightlines the area of land to be taken from Record of Title OT13B/860 (the areas marked ‘A’ and ‘B’) was reduced significantly, from 2,720 square to just 1,740 square metres.

A map of the 1,740 square metres taken for the purpose of the roundabout and the temporary compound is shown in Figure 1. The parcels marked “A” and “B” were acquired from Record of Title OT 13B/86.

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

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Figure 1: Plan of works/land to be taken from RT OT13B/860

The resolution of the Board (22.2.4) is as follows:

22.4.4 PROPOSAL TO DISPOSE OF PART OF RECORD OF TITLE 13B/860 TO WAKA KOTAHI NEW ZEALAND TRANSPORT AGENCY AS AGENTS OF THE CROWN (PRO: 62-3047-00).

To consider disposing of approximately 1,740 square metres of Record of Title OT13B/860, to Waka Kotahi as agents of the Crown, for the purpose of constructing a roundabout at the intersection of State Highway 8B and Barry Avenue, and to consider allowing Waka Kotahi to erect a secure compound around part of Section 126 Block III Cromwell Survey District for the duration of the construction of new footpaths and underpass.

COMMITTEE RESOLUTION

Moved: McKinlay

Seconded: Laws

That the Cromwell Community Board

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

B. Notes the previous agreement with Waka Kotahi for the compulsory acquisition of this land.

C. Agrees to:

1. Dispose of approximately 1,740 square metres of Record of Title OT13B/860, being the parcels marked “A” and “B” as identified in figure 2, to:

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

- In accordance with the provisions of the Public Works Act 1981.

- For $118,000 (One Hundred and Eighteen Thousand Dollars) plus GST (if any).

Subject to:

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

2. To agree to allow Waka Kotahi New Zealand Transport Agency to erect a secure compound around the area marked “E” as shown in figure 3 (Footpath Construction Zone), for the duration of the construction of the footpaths and underpass (as required), at no charge.

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

CARRIED with Mr Buchanan recording his vote against

This decision was ratified by Council 24 August 2022.

Acquisition and Compensation

Waka Kotahi did not formally notify Council of their intention to acquire the land. Instead, the land was taken through negotiation.

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

The land was valued (before acquisition), then again considering the reduced area (after acquisition). Compensation was assessed and paid as the difference between the two values being the overall reduction in the market value.

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

Valuation Summary

Quotable Value (QV) valued the land in January 2022 on the basis of the original acquisition area of 2,720 square metres.

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

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

As noted in the report dated 29 March 2022, Quotable Value (QV) valued the 2,720 square metres of land to be taken from Record of Title OT13B/860 at $184,000 (One Hundred and Eighty Four Thousand Dollars) plus GST (if any).

This equated to a square metre rate of $67.65 plus GST (if any).

The square meterage rate was applied to the revised area of 1,740 square metres, the value of the smaller area of land was calculated to be approximately $117,711 (One Hundred and Seventeen Thousand Seven Hundred and Eleven Dollars) plus GST (if any).

As the general rule of thumb a parcel of land increases in value as it reduces in size, therefore it was proposed that the compensation payable be rounded up to $118,000 (One Hundred and Eighteen Thousand Dollars) plus GST (if any).

3. Discussion

Veros Property (developer of Wooing Tree Estate) has requested a review its decision to dispose approximately 1,740 square metres of Record of Title OT13B/860 to Waka Kotahi for $118,000 plus GST (if any). A letter from Duarne Lankshear (Veros Property) is attached in Appendix 1.

The district plan requires Wooing Tree Estate to deliver a roundabout and underpass prior to a certain milestone of their development. Whilst the district plan does not specifically outline the who delivers and funds this infrastructure the responsibility does not sit with Council.

In September 2021 Waka Kotahi confirmed they would not be funding any part of the roundabout or underpass.

Following the decision of Waka Kotahi to fund the works, Wooing Tree Estate approached Council to consider:

(a) A fair and equitable contribution to the roundabout and underpass construction costs. Wooing Tree Estate will fund the roundabout.

(b) Entering into a developer’s agreement with Wooing Tree Estate whereby costs associated with the underpass are credited against roading development contributions.

At the Council meeting of 9 December 2021 Council considered contributing to funding of the underpass through a reduction of the remaining roading development contributions of up to $630,000.

The resolution of the 9 December 2021 Council meeting noted that construction of the underpass had been included in a previous Long-term Plan, however Waka Kotahi had not approved the funding given it was a condition of consent for the Wooing Tree development. Consequently, it was removed from the 2021 – 24 Long-term Plan and this had been made clear to the developer prior to the fast-track consent process application. Council declined the request to contribute to funding of the underpass.

Wooing Tree Estate are therefore funding the roundabout and pedestrian underpass at the intersection Barry Ave, State Highway 8B and Blondie Drive in full. This is at a cost of $4.4 million.

The attached letter talks to lack of recognition of the benefit of the Wooing Tree development and the infrastructure it provides to the Central Otago District.

The letter also refers to council staff committing in writing to contribute the land at zero cost due to the greater roading benefit. This correspondence with the developer was caveated with the fact it was not an officer decision and that approval from Council was required.

The option of providing the land at $Nil cost was not included for consideration in the previous reports presented to the Community Board on 22 June 2022. This new report provides an option for the Community Board to provide the land at $Nil cost.

The reason the $Nil cost was not included in the previous report is because the roundabout and underpass are located on a State Highway corridor and therefore the responsibility sits with the developer and Waka Kotahi.

The original discussion around zero cost was based on the recognition that Wooing Tree Estate were providing infrastructure that benefits the town and were funding the full cost when the roundabout was providing for growth in population beyond that of the Wooing Tree development.

That said, improvements within the State Highway corridor are considered to sit with Waka Kotahi not Council. Any further discussion should be between Wooing Tree Estate and Waka Kotahi only.

4. Financial Considerations

Amending the community boards recommendation to sell portion of Record of Title OT13B/860 for $118,000 plus GST (if any) to $Nil will reduce the availability of funds for the purpose of purchasing, enhancing, and/or maintaining land within the Cromwell ward.

5. Options

Option 1 – (Recommended)

To agree uphold the decision of 21 June 2022 to dispose of approximately 1,740 square metres of Record of Title OT13B/860, being the parcels marked “A” and “B” as identified in figure 1, for $118,000 (One Hundred and Eighteen Thousand Dollars) plus GST (if any).

Advantages:

· Recognises the provisions of the Public Works Act 1981.

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

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

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

Disadvantages:

· The full cost of growth sits with Wooing Tree Estate.

Option 2

To amend the decision of 21 June 2022 to dispose of approximately 1,740 square metres of Record of Title OT13B/860, being the parcels marked “A” and “B” as identified in figure 1, for $Nil cost.

Advantages:

· Would be agreeable to Wooing Tree Estate.

Disadvantages:

· Council would be providing land at $Nil cost for the benefit of upgrades in the state highway corridor.

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

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

· Will create a precedent.

· No income will be retained for the purpose of purchasing, enhancing, and/or maintaining land within the Cromwell ward.

6. Compliance

Local Government Act 2002 Purpose Provisions	The Local Government Act 2002 does not apply to this decision, but. The proposed disposal of the land and the payment of the compensation is consistent with the provisions of the Public Works Act.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Council has no policy regarding the sale and/ or disposal of land required for public works.
Considerations as to sustainability, the environment and climate change impacts	The disposal of the land to Waka Kotahi will have minimal environmental and climate change impacts. Construction of the roundabout will facilitate more efficient use of the transport network.
Risks Analysis	There are no risks associated with the recommendation. As the land is being taken/disposed of in accordance with the provisions of the Public Works Act 1981, the taking is compulsory.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered with none of the criteria being met or exceeded.

7. Next Steps

The recommendation is taken to Council 19 April 2023 for ratification.

8. Attachments

Appendix 1 - WTE_Land Aquistion Letter_CODC 18.11.22.pdf ⇩

Report author:	Reviewed and authorised by:

Quinton Penniall	Louise van der Voort
Infrastructure Manager	Acting Chief Executive Officer
10/03/2023	15/03/2023

22 March 2023

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23.2.5 2023-24 Annual Plan Budget and Fees and Charges Schedule

Doc ID: 614360

1. Purpose of Report

To approve the draft budgets and the Cromwell Ward 2023-24 fees and charges schedule for inclusion in Council’s Annual Plan 2023-24 process.

Recommendations

That the Cromwell Community Board

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

B. Agrees the draft Cromwell Ward 2023-24 Annual Plan budgets and recommend to Council for inclusion in the 2023-24 Annual Plan.

C. Agrees to accept the Cromwell Ward 2023-24 Fees and Charges schedule and recommend to Council for inclusion in the 2023-24 Annual Plan.

2. Background

The 2023-24 draft budgets for the Cromwell Ward have been prepared on Council’s request to keep the 2024-34 Long-term Plan (year three) budgets relatively unchanged. The year three budgets proposed an average rate increase across the district of 7.6%. This is including the impact of growth which was anticipated to be 1.9%. Currently the average increase across the district is 10.4%, after adjusting for the projected growth of 1.9%.

The 2023-24 Annual Plan draft budget figures result in a total increase to the Cromwell Ward rates of $349k or 10.9%. This ensures Council delivers the level of service the Board has requested through both the Long-term Plan and resolutions for the year ahead.

In addition to adopting the 2023-24 Annual Plan and striking the rates for the new year, Council also adopts the annual fees and charges. A complete copy of the Fees and Charges Schedule is attached for information. There are minimal changes to fees and charges from year one of the Long-term Plan to the proposed 2023-24 Annual Plan.

3. Discussion

Council staff are presenting draft budgets to each community board for consideration at their March 2023 meetings. Once accepted, the community board budgets will be provided to Council to consider for inclusion in the 2023-24 Annual Plan.

There are several factors which account for the increase which are detailed below.

Elected member remuneration has increased upon instruction from the Remuneration Authority.

Community board and Council property has been subjected to the three yearly revaluation.

The increases in the revaluations on Council buildings result in increases in the depreciation expense and, therefore, rate funding for the depreciation as per previous decisions.

Appendix 2 shows the cost centres that are funded by Cromwell Community Ward Rates and outlines the changes made. Please note that the ward rates are specific to rateable units in the ward and does not include the district wide rate, metered water charges an and does not allow for increased growth.

4. Financial Considerations

The 2023-24 Annual Plan draft budget figures result in a total increase to the Cromwell Ward rates of $349k or 10.9%.

During the compilation of the 2023-24 budgets council staff have identified the need to reconsider elements of the financial strategy ready for the compilation of the 2024-34 Long-term Plan to ensure appropriate repayment of both external debt and reserve deficits occur.

5. Options

To accept the draft 2023-24 budget and 2023-24 Fees and Charges Schedule for recommendation to Council for inclusion in the 2023-24 Annual Plan.

Option 1 - (recommended)

Advantages:

· Meets statutory requirements.

· Demonstrates transparent expenditure management.

· The Cromwell budget will feed into Council’s Annual Plan budget for 2023-24.

· Meets the ratepayers’ expectations.

· Allows changes to reflect prior Council and Community Board decisions post setting of the 2021-31 Long-term Plan.

· Allows for Fees and Charges to be updated to reflect the most accurate charges.

Disadvantages:

· Some members of the community may feel disadvantaged paying increased rates.

Option 2

Decline the draft 2023-24 budget and 2023-24 Fees and Charges Schedule for recommendation to Council for inclusion in the 2023-24 Annual Plan and do not recommend it to Council for inclusion in the 2023-24 Annual Plan process.

Advantages:

· Status quo remains and rate payers do not incur increased rates.

Disadvantages:

· The 2023-24 Annual Plan may not accurately reflect the Community Board’s prior decisions.

· Run the risk of delaying the annual plan process and therefore potentially miss the legislative deadlines.

· May not reflect a fair distribution of costs to the rate payer.

· Does not reflect the intention of the 2021-31 Long-term Plan (year three).

· Loss in revenue or a greater reliance on the ratepayer though not correctly the most up-to-date fees and charges.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of the community by involving community board members in robust and transparent financial decision making.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, consistent with all council plans and policies.
Considerations as to sustainability, the environment and climate change impacts	No implications, as this has been factored in the 2021-31 Long-term Plan and there have been no changes to these considerations and assumptions used to prepare the 2021-31 Long-term Plan.
Risks Analysis	The risk of not accepting this report is that Council will lose the ability to adopt the 2023-24 Annual Plan and set the rates for the income required to meet the activities Council is required to carry out. Council will not meet legislative requirements and may be exposed to legal challenges.
Significance, Consultation and Engagement (internal and external)	This is a significant step in the annual plan process, as it ensures the Community Board is across its ward-specific budget, and feedback to Council’s overall 2023-24 Annual Plan which will be consulted upon.

7. Next Steps

Once this report is accepted and changes made where necessary, it will be submitted to Council for inclusion in the 2023-24 Annual Plan, which is planned to be adopted for consultation on 30 March 2023.

A complete schedule of the fees and charges has been submitted to each of the relevant community boards for approval. Once approved, the total suite of fees and charges will be presented to Council with the recommendation that Council adopt the proposed fees and charges as part of the adoption process when adopting the 2023-24 Annual Plan.

8. Attachments

Appendix 1 - Fees and Charges 2023-24 ⇩

Appendix 2 - CCB Draft 2023-24 Annual Plan Budgets ⇩

Appendix 3 - CCB Draft 2023-24 Annual Plan - Capital Expenditure ⇩

Appendix 4 - CCB Draft 2023-24 Annual Plan - Sample Rates ⇩

Report author:	Reviewed and authorised by:

Susan Finlay	Saskia Righarts
Chief Financial Officer	Group Manager - Business Support
14/03/2023	14/03/2023

22 March 2023

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Description automatically generated

23.2.6 Cromwell Financial Report for the Period Ending 31 December 2022

Doc ID: 615235

1. Purpose

To consider the financial performance overview as at 31 December 2022.

Recommendations

That the report be received.

2. Background

These statements are designed to give an overview on the financial performance.

The operating statement for the six months ending 31 December 2022 show a favourable variance of $2.337M against the revised budget.

2022/23	AS AT 31 DECEMBER 2022					2022/23
Full Year		YTD	YTD	YTD		Full Year
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
	Income:
443	Internal Interest Revenue	278	209	69	˜	443
12,830	Land Sale Proceeds	-	-	-	˜	12,830
621	User Fees & Other	247	311	(64)	˜	621
-	Reserves Contributions	329	-	329	˜	-
-	External Interest & Dividends	3	-	3	˜	-
3,219	Rates	1,583	1,583	-	˜	3,219
17,113	Total Income	2,440	2,103	337	˜	17,113

	Expenditure
136	Rates Expense	132	68	(64)	˜	136
10,032	Cost of Sale of Land	72	2,008	1,936	˜	10,032
32	Professional Fees	1	16	15	˜	32
943	Cost Allocations	473	472	(1)	˜	943
262	Fuel & Energy	123	131	8	˜	262
197	Grants	197	102	(95)	˜	205
244	Other Costs	101	125	24	˜	251
577	Contracts	228	289	61	˜	577
158	Internal Interest Expense	18	40	22	˜	158
123	Building Repairs and Mtce.	42	60	18	˜	120
750	Staff	316	375	59	˜	750
44	Members Remuneration	16	22	6	˜	44
843	Depreciation	410	421	11	˜	843
14,341	Total Expenses	2,129	4,129	2,000	˜	14,353
2,772	Operating Surplus / (Deficit)	311	(2,026)	2,337	˜	2,760

This table has rounding (+/- 1)

Income for period ending 31 December 2022:

Operating income reflects a favourable variance to the revised budget of $337k.

· User fees and other has an unfavourable variance of ($64k). Pool/swim school ($64k) are the main unfavourable variances. This pool/swim school variance is being driven by a GST error of ($26k) for pool income. The implementation of a new point of sale system two years ago resulted in the council needing to voluntarily disclose to the Inland Revenue Department that the pools had not returned GST on most pool income received during this time.

· Internal interest revenue had a favourable variance of $69k. This is mainly due to Cromwell Memorial Hall and Cromwell Town Centre projects being carried forward to 2022/23, therefore property reserves are higher than planned. The higher surplus in reserves and increasing market interest rates are driving this favourable variance.

· Reserves contributions has a favourable variance of $329k. These are difficult to gauge when setting budgets and are dependent on developers’ timeframes.

2022/23	User Fees and Other Income					2022/23
Full Year		YTD	YTD	YTD		Full Year
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
114	Other Misc. Income	55	57	(2)	˜	113
231	Rentals & Hires	125	119	6	˜	238
268	Cromwell Pool / Swim School	62	127	(65)	˜	253
16	Cemeteries	5	8	(3)	˜	16
629	Total User Fees Income	247	311	(64)		620

This table has rounding (+/- 1)

Expenditure for period ending 31 December 2022:

Expenditure has a favourable variance of $2M against the revised budget. The variances are detailed below:

· Rates expense shows an unfavourable variance of ($64k). This is mainly due to Central Otago District Council property annual rates for 2022-23 financial year being paid in full in July 2022. This will be aligned with budget at the end of the financial year.

· Cost of sales of land had a favourable variance of $1.936M. This is due to no land sales made within the first half of the year. Land sales and the cost of sales move along side with each other.

· Grants have an unfavourable variance of ($95k) against revised budget. This is due to timing of the promotions grants and the budget. Of the $205k revised budget, $91k year-to-date has been allocated for promotional activities, and $105k has been spent on general grants. The Cromwell grant of $49k to the Cromwell bike park has been funded from the Cromwell reserves contribution fund (resolution 22.4.7).

· Other costs have a favourable variance of $24k. These costs are needs-based and will vary against budget from time to time. Of this variance the following are favourable against the year-to-date revised budget: compliance schedule $4k, pest eradication $5k, water charges $14k, weed control $8k and marketing and publicity $7k. Chemicals are unfavourable at ($14k). The cost of chemicals used to treat the Cromwell pool has increased significantly. Work is underway to see if a more cost-effective solution can be found.

· Staff costs has a favourable variance of $59k. Cromwell pool staff remuneration is behind budget due to staff shortages and the pool shut down at the beginning of the financial year. Recruitment is ongoing to ensure the pool is adequately staffed.

· Contracts has a favourable variance of $61k. These expenses are needs-based, and they will vary against budget from time to time. The contract variance is driven by timing of work carried out for planned maintenance work at Cromwell reserves.

Capital Expenditure:

Capital expenditure (CAPEX) for the period ending 31 December 2022 has a year-to-date favourable variance of $7.083M. The actual CAPEX spent to date is 6.7% of the total revised budget.

2022/23	AS AT 31 DECEMBER 2022					2022/23
Full Year		YTD	YTD	YTD		Full Year
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
	Parks and Reserves:
80	Cromwell Reserves - Playground equipment	2	49	47	˜	98
38	Cromwell Reserves - Irrigation	11	27	16	˜	64
20	Cromwell Reserves - Landscaping	41	20	(21)	˜	41
-	Cromwell Reserves - Recreation Equipment	13	20	7	˜	40
74	Cromwell Reserves - Fencing & Bins	42	70	28	˜	100
5	Cromwell - Fencing	3	-	(3)	˜	5
-	Cromwell Cemetery	-	-	-	˜	7
10	Anderson Park - Landscaping	1	20	19	˜	41
15	Anderson Park - Irrigation & Bins	3	14	11	˜	28
-	Anderson Park - Fencing	-	-	-	˜	9
-	Anderson Park - Lighting	-	-	-	˜	46
-	Cromwell - Other	-	17	17	˜	35
242	Total Parks & Reserves	116	237	121		514
	Cromwell Swimming Pool:
5	Building upgrades	-	3	3	˜	5
20	Machinery & Plant	71	167	96	˜	176
14	Recreation equipment / furniture & fittings	4	7	3	˜	14
39	Total Cromwell Swimming Pool	75	177	102		195
	Property:				˜
3,262	Cromwell Front Reserve	113	2,523	2,410	˜	5,039
7,617	Cromwell Memorial Hall	802	4,902	4,100	˜	9,803
550	Cromwell - Building Improvements	-	354	354	˜	708
35	Tarras Community Centre	3	-	(3)	˜	140
11,464	Total Property	918	7,779	6,860		15,690
11,745	Total Capital Expenditure	1,109	8,193	7,083	˜	16,399

This table has rounding (+/- 1)

Parks and Reserves has an overall favourable variance of $121k.

· Cromwell reserves irrigation has a favourable variance of $16k. The irrigation valves replacement project is expected to be completed in autumn.

· Cromwell reserves landscaping has an unfavourable variance of ($21k). Landscaping upgrades in Cromwell reserve parks is completed. This project has finished and is over the annual budget by ($12k). This is offset by other savings in Cromwell parks budgets.

· Cromwell reserves playground has a favourable variance of $47k. The installation of a drinking fountain at Alpha Street playground has started and installation of outdoor gym equipment is to be commenced in the third quarter.

Swimming Pool:

Cromwell swimming pool has an overall favourable variance of $102k.

· Machinery and plant have recorded a favourable variance of $96k. The pool heat pump project is waiting on practical completion prior to releasing retention payments.

Property:

Property has an overall favourable variance of $6.860M

· Cromwell front reserves (Town Centre upgrade) has a favourable variance of $2.41M. The Cromwell Town Centre project is still in early concept plan phase. A tender to find a designer/architect for the next phase of landscaping design and new civil facilities is expected to go out to market soon.

· Cromwell Memorial Hall recorded a favourable variance of $4.1M. The Cromwell Memorial Hall/Events Centre project is still in design phase with detailed design expected to be completed within the next few months. Demolition of the existing building and construction is expected to start by the end of 2023.

Reserve Funds table for Cromwell Ward

· As at 30 June 2022 the Cromwell Ward has an audited closing reserve funds balance of $19.528M. This is the ward specific reserves and does not factor in the district-wide reserves which are in deficit at ($27.8M). Refer to Appendix 1.

· Taking the 2021/22 audited Annual Report closing balance and adding 2022/23 income and expenditure, carry forwards and resolutions, the Cromwell Ward is projected to end the 2022/23 financial year with a closing balance of $3.89M.

3. Attachments

Appendix 1 - 202212 Cromwell Reserves 2022-23.pdf ⇩

Report author:	Reviewed and authorised by:

Donna McKewen	Saskia Righarts
Accountant	Group Manager – Business Support
10/03/2023	10/03/2023


AGENDA Cromwell Community Board Meeting Wednesday, 22 March 2023
Date:	Wednesday, 22 March 2023
Time:	2.00 pm
Location:	Cromwell Service Centre, 42 The Mall, Cromwell (A link to the live stream will be available on the Central Otago District Council's website.)
Louise van der Voort Acting Chief Executive Officer

Report author:	Reviewed and authorised by:

Wayne McEnteer	Saskia Righarts
Governance Manager	Group Manager - Business Support
9/03/2023	9/03/2023