Agenda of Teviot Valley Community Board meeting

Teviot Valley Community Board Agenda

23 March 2023

MINUTES OF A mEETING OF THE
Teviot Valley Community Board
HELD IN THE Roxburgh Service Centre, 120 Scotland Street, Roxburgh
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Thursday, 2 February 2023 COMMENCING AT 2.02 pm

PRESENT: Cr N Dalley (Chairperson), Mr M Jessop, Cr S Feinerman, Ms G Booth, Mr R Read

IN ATTENDANCE: S Jacobs (Chief Executive Officer), D Rushbrook (Group Manager - Community Vision), L van der Voort (Group Manager - Planning and Infrastructure), W McEnteer (Governance Manager), S Reynolds (Customer Service Officer)

1 Apologies

There were no apologies.

2 Public Forum

There was no public forum.

3 Confirmation of Minutes

Committee Resolution

Moved: Feinerman

Seconded: Jessop

That the public minutes of the Teviot Valley Community Board Meeting held on 24 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

In accordance with item 9.9 of the Standing Orders, the Chief Executive informed the Chair that item 23.1.2 of the agenda had been withdrawn.

6 Mayor’s Report

23.1.3 Mayor's Report

His Worship the Mayor was not present at the meeting.

7 Chair's Report

23.1.4 Chair's Report

The Chair gave an update and reflected on his first four months in the Chair and his focus for the triennium. In particular he noted that a number of community members did not understand the process for requesting a service from the council and that work needed to be done to improve that.

Committee Resolution

Moved: Jessop

Seconded: Dalley

That the report be received.

Carried

8 Members' Reports

23.1.5 Members' Reports

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

Cr Feinerman reported on the following:

· Attended Teviot Prospects meeting.

· Attended Walkways meeting.

· Attended Teviot Hubs meeting.

· Attended Swimming Pool meeting and gave an update to members on current developments.

· Noted an issue with rubbish at Three Beaches. Also expressed concern for potential fire hazard at a road closure at Three Brothers Road, Teviot.

Mr Read reported on the following:

· Noted the need for more trees to be planted in the main street of Roxburgh.

· Attended a I & H McPhail Charitable Trust meeting.

· Noted that the assets of the squash club have been given to the Roxburgh Area School.

Ms Booth reported on the following:

· Attended a LGNZ meeting in Dunedin.

· Attended a Medical Services Trust meeting.

Mr Jessop reported on the following:

· Attended a Museum meeting.

· Attended a Teviot Prospects meeting.

· Attended a CODC Onslow meeting.

· Attended Millers Flat Community meeting.

· Noted recent enquiries related to the proposed Gold Mine in Millers Flat, and to the forthcoming changes in green waste collection.

· Noted that the Cavalcade would finish in Millers Flat on Saturday 4^th March.

Committee Resolution

Moved: Dalley

Seconded: Feinerman

That the report be received.

Carried

9 Status Reports

23.1.6 February 2023 Governance Report

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

Committee Resolution

Moved: Dalley

Seconded: Booth

That the report be received.

Carried

10 Date of The Next Meeting

The date of the next scheduled meeting is 23 March 2023.

11 Resolution to Exclude the Public

Committee Resolution

Moved: Jessop

Seconded: Feinerman

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
23.1.7 - 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

The public were excluded at 2.27pm and the meeting closed at 2.36pm

23 March 2023

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5 Reports

23.2.2 Application to Stop Part of Branxholm Street

Doc ID: 619690

1. Purpose of Report

To consider an application to stop an unformed section of Branxholm Street, to legalise an historic encroachment, in accordance with the provisions of the Public Works Act 1981.

Recommendations

That the Teviot Valley Community Board

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

B. To recommend to Council to approve the proposal to stop the unformed portion of Branxholm Street identified as Section 1 in figure 5, being approximately 268 square metres, subject to:

- The Applicants paying all costs associated with the stopping, including purchase of the land at valuation.

- The Applicants obtaining the consent of the owner of Lot 1 DP 7225.

- The land being amalgamated with record of title OT400/197 (Lot 1 DP 4138).

- The stopping being approved by the Minister of Lands.

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

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

2. Background

This matter was originally to be considered by the Teviot Valley Community Board (the Board) at their meeting of 02 February 2023. The report was withdrawn at the request of the applicants lawyer on the day of the meeting.

A copy of the original report, which discusses imperial survey plans, geographical information systems (and the ownership of the data contained in them), and the identification of legal property boundaries, is attached as Appendix 1.

A copy of the applicant’s lawyer’s letter received on 1 February 2023, which raised a number of points about the original report, is attached as Appendix 2.

While this report is similar to the original report, some of the content has been updated in consideration of the points raised in the letter dated 01 February 2023.

Encroachment

A property encroachment occurs when something traverses the legal property boundary.

A roading encroachment occurs when public access to a legal road is restricted, or where an area of legal road has been occupied for private use. For example, a building or a fence which extends onto the legal road, or a balcony which protrudes over the legal road.

If an encroachment is identified, the current owner of the property is responsible for the encroachment regardless of when they purchased the property or when the structure was erected.

Branxholm Street

Branxholm Street (the Road) starts at Edinburgh Street. It runs southwest, parallel to Scotland Street, then terminates at the intersection of Till Street.

It is a low volume road which is somewhat disjointed, and only partially formed. The road has an overall length of approximately 1,360 metres. Its width varies from around 15 to 22 metres.

An overview of the road is shown below in figure 1.

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Figure 1 – Overview of Branxholm Street.

The Property

Noel and Sharyn Miller (the Applicants) own the property at 150 Branxholm Street (the Property). The Property is situated at the southernmost end of Branxholm Street, adjacent to the western end of Till Street.

The Property is contained in records of title OT400/197 and OT1C/1032. Record of title OT400/197 consists of two parcels of land, both parcels are described as Lot 1 Deposited Plan (DP) 4138.

Record of title OT1C/1032 consists of a single parcel of land which is described as Section 15 Block XXIV Town of Roxburgh (Section 15).

Section 15 was originally part of a Crown owned water race which ran through or behind a number of properties off the western side of the Road. In 1964, several titles were issued for the land under the water race with the Crown then disposing of those titles to the adjacent landowners.

Section 15 dissects Lot 1 DP 4138 which is why Lot 1 is contained in two parcels. The Property has a total area of 1,043 square metres more or less.

An overview of the Applicant’s Property is shown below in figure 2.

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Figure 2 – Overview of the Property situated at 150 Branxholm Street.

The Applicant’s purchased the Property in June 1990. Improvements on the Property include an historic stone cottage (the Cottage), and a sleepout with ablutions and a small deck.

Records indicate that the Cottage was constructed in the 1870’s. The Applicant’s moved the sleepout onto the Property in 2009 after obtaining building and land use (resource) consents.

Boundary Issues and Geographic Information Systems

Notes attached to the building consent file indicate that the Applicant’s first contacted Council regarding their plans to relocate the sleepout to the Property in early 2008. The file also indicates that there were concerns regarding the identification of the true legal property boundary.

In that same year (2008) the Applicants engaged a surveyor to identify their true legal boundaries.

While carrying out that work, the surveyor recorded the northern and southern boundaries as being ‘out’ slightly and the eastern and western boundaries as being ‘out’ quite significantly in comparison to the cadastral boundaries and aerial photography overlay on the Geographic Information System records.

In 2015, the Applicant’s surveyor submitted the new digitised survey data to LINZ, and they were asked to correct the base parcel layer.

3. Discussion

Application to Stop

Since having their true legal boundaries identified in 2008, the Applicants have contacted Council a number of times to discuss remedying the encroachment. The Applicants have been advised that a simple road stopping, undertaken in accordance with Council’s Roading Policy, would legalise the encroachment.

In July 2022, the Applicant’s lawyer submitted an application to stop a 268 square metre portion of Branxholm Street.

A plan of the road to be stopped, which is described as Section 1, is shown below in figure 3.

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Figure 3 – Plan of Section 1 (Road to Stopped).

In a cover letter attached to the application, the purpose of the stopping was noted as being to resolve an historic encroachment issue that had resulted during a surveying exercise that was undertaken in the 1930s. The letter noted that the Crown had undertaken the survey, and that the survey had resulted in the culturally significant cottage encroaching onto Council’s legal road.

The letter further noted that the Applicant’s had unwittingly inherited mistakes of the past and that they had always maintained the berm at their own expense, even though the berm is located on Council's legal road.

On that basis, the Applicants offered to pay all survey and legal costs associated with the proposal and requested that the stopped road be transferred to them for nominal legal consideration, being $1.00.

In consideration of the Applicant’s request, and to understand the value of the road to be stopped, it was agreed that Section 1 would be valued (at the Applicant’s cost) prior to the presentation of this report.

Roading Network

As noted previously, Branxholm Street is a low volume road which is somewhat disjointed, and only partially formed with the legal road width varying from around 15 to 22 metres.

The section of road which the Applicants propose to stop varies from approximately 3.6 metres wide to 6.8 metres wide. This would leave a clearance of around 2 metres between the proposed new boundary and the formed carriageway.

Overall, a legal road width of approximately 15 to 17 metres would be retained as shown below in figure 4, which is sufficient for roading purposes.

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Figure 4 – Legal Roading Corridor and Formed Carriageway.

Legislation and Policy

The Central Otago District Council’s Roading Policy determines the appropriate statutory procedure for stopping a legal road or any part thereof that is under their control.

The policy for selecting the correct statutory process is outlined in section 8.5 of Council’s Roading Policy. The options are as follow:

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

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

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

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

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

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

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

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

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

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

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

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

· Public access will not be adversely affected.

The Public Works Act further provides for legal road to be stopped, sold, and amalgamated with an adjacent title. In this instance, Section 1 (the stopped road) would be amalgamated with Lot 1 DP 4138, with a new record of title being issued for the three parcels of land.

Public Notification and Consultation Requirements

As outlined in Section 116 of the Public Works Act, road stoppings are not subject to public consultation if:

· the road is under the control of the territorial authority,

· the territorial authority agrees to the proposed stopping, and:

· adequate road access to land adjoining the road is left or provided; or

· the owners of the land adjoining the road or part of the road consent in writing to the stopping.

If the stopping is approved, the Applicants will require the written approval of the owner of Lot 1 DP 7225 as their road frontage would be reduced by about 3.6 metres.

About 20 metres of the northern boundary of Lot 1 DP 7225 fronts the intersection of Branxholm and Till Streets. Another 14 metres of that boundary is mutual as shown below in figure 5.

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Figure 5 – Northern Boundaries of Lot 1 DP 7225.

A low retaining wall and stone steps have been constructed on the road immediately adjacent to the edge of the formed carriageway. The retaining wall reinforces the grassed area in front of the cottage with the stone steps providing pedestrian access to the Property.

The retaining wall abuts the building on Lot 1 DP 7225 as shown below in figure 6.

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Description automatically generated Figure 6 – View of Retaining Wall and Stone Steps from the Formed Carriageway.

Toward the end of 2022, the owner of Lot 1 DP 7225 approached Council to ask about the process for stopping legal road.

After the process was explained, they indicated that they had some concerns about this proposal as it could impact their ability to access to the rear of their property, and that the visibility from the small window fronting the legal road (to be stopped) could be impaired by a building or plantings.

A plan of the building on Lot 1 DP 7225 as it front Till Street is shown below in figure 7.

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Figure 7 – Till Street frontage of Lot 1 DP 7225.

While there are a number of ways that those concerns could be addressed, such as by registration of a covenant prohibiting the construction of improvements or the growing trees in an agreed area, that agreement would be between the Applicants and the owner of Lot 1.

As an example an area which could be subject to a covenant is shown below in figure 8.

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Figure 8 – Example of covenanted area.

Utility Networks

Many legal roads, whether formed or not, contain electrical, telecommunication, or water infrastructure. If there are any services in a road that is to be stopped, these can be protected by registering an easement on the resulting title.

Network operators have confirmed that there is no utility infrastructure in the section of the road which the Applicants propose to stop.

Financial

Council’s Roading Policy determines that the Applicant is responsible for all costs associated with the road stopping. This includes purchase of the land at market valuation.

In November 2022 a registered independent valuer valued Section 1 at $35,000 including GST (if any). This means the road has a value of approximately $131 per square metre.

While the Applicants have requested that the land be transferred to them for $1.00, this would be contrary to Roading Policy. It could also be seen to set a precedent implying that Council did not agree that the identification of property boundaries on the ground (now or historically) is the responsibility of the landowner.

An alternate solution, which is consistent with Council’s Roading Policy, and which may be more affordable to the Applicants, would be to stop a much smaller section of the Road.

For example, the encroachment could be resolved by stopping just 46 square metres of unformed legal road at a cost of approximately $6,025 including GST (if any).

A plan of the smaller stopping, which may also be preferable to the owner of Lot 1 DP 7225, is shown below in figure 9.

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Figure 9 – Plan of less expensive option for legalising the encroachment.

Rating Implications

The total local authority rates payable on the Property for the 2022/2023 rating year have been assessed at $2,056.55 including GST.

If the current land value was increased by $35,000 and the annual rates recalculated using the same rating factors, this would equate an increase of about 2.8% per annum, or around $58 including GST.

A breakdown of those calculations is shown below in table 1.

Description of Rate	Category	Factor	Factor Value	Rate	Total for the Year
General Rate	All except Dams	Land Value	35,000	$0.0011100	$ 38.85
Planning and Environment	District	Capital Value	35,000	$0.0002438	$ 8.53
Works and Public Toilets	District	Capital Value	35,000	$0.0001606	$ 5.62
Economic Development	District	Capital Value	35,000	$0.0000208	$ 0.73
Tourism	Residential	Capital Value	35,000	$0.0000721	$ 2.52
Teviot Valley Promotions	Residential	Capital Value	35,000	$0.0000024	$ 0.08
Ward Services Rate	Teviot Valley	Capital Value	35,000	$0.0000500	$ 1.75
Additional Rates per Annum					$ 58.09

Table 1 – Rating Implications associated with $35,000 increase in Land Value (Teviot Valley Ward 2022/2023).

Alternatively, a $6,000 increase to the land value would result in an annual rates increase of about 0.5% per annum, or around $10 including GST, as shown in table 2.

Description of Rate	Category	Factor	Factor Value	Rate	Total for the Year
General Rate	All except Dams	Land Value	6,000	$0.0011100	$ 6.66
Planning and Environment	District	Capital Value	6,000	$0.0002438	$ 1.46
Works and Public Toilets	District	Capital Value	6,000	$0.0001606	$ 0.96
Economic Development	District	Capital Value	6,000	$0.0000208	$ 0.12
Tourism	Residential	Capital Value	6,000	$0.0000721	$ 0.43
Teviot Valley Promotions	Residential	Capital Value	6,000	$0.0000024	$ 0.01
Ward Services Rate	Teviot Valley	Capital Value	6,000	$0.0000500	$ 0.30
Additional Rates per Annum					$ 9.96

Table 2 – Rating Implications associated with $6,000 increase in Land Value (Teviot Valley Ward 2022/2023).

This means the rating implications associated with the proposal will be no more than minor.

4. Options

Option 1 – (Recommended)

To recommend to Council to approve the proposal to stop the unformed portion of Branxholm Street identified as Section 1 in figure 5, being approximately 268 square metres, subject to:

- The Applicants paying all costs associated with the stopping, including purchase of the land at valuation.

- The Applicants obtaining the consent of the owner of Lot 1 DP 7225.

- The land being amalgamated with record of title OT400/197 (Lot 1 DP 4138).

- The stopping being approved by the Minister of Lands.

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

Advantages:

· The Applicants occupation (encroachment) of the legal road will be legalised.

· Will not compromise the roading network.

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

· Is consistent with the provisions of Council’s Roading Policy.

· Is consistent with the Public Works Act 1981.

Disadvantages:

· The Applicants may not have anticipated having to purchase the land at valuation.

Option 2

To recommend to Council to approve the proposal to stop the unformed portion of Branxholm Street identified as Section 1 in figure 5, being approximately 268 square metres, subject to:

- The Applicants paying all other costs associated with the stopping.

- The land identified as Section 1 in figure 5, being transferred to the Applicants for $1.00.

- The Applicants obtaining the consent of the owner of Lot 1 DP 7225.

- The land being amalgamated with record of title OT400/197 (Lot 1 DP 4138).

- The stopping being approved by the Minister of Lands.

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

Advantages:

· Would be agreeable to the Applicants.

· The Applicant’s occupation (encroachment) of the legal road will be legalised.

· Would not compromise the roading network.

Disadvantages:

· No income will be received for the purpose of addressing other public roading matters.

· Is not consistent with the provisions of Council’s Roading Policy.

· Is not consistent with the provisions of the Public Work Act as it relates to the assessment and payment of compensation.

· Would create a precedent.

Option 3

To recommend to Council to approve the proposal to stop the smaller unformed portion of Branxholm Street, as shown in figure 9, being approximately 46 square metres, subject to:

- The Applicants paying all costs associated with the stopping, including purchase of the land at $6,025 including GST (if any).

- The Applicants obtaining the consent of the owner of Lot 1 DP 7225.

- The land being amalgamated with record of title OT400/197 (Lot 1 DP 4138).

- The stopping being approved by the Minister of Lands.

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

Advantages:

· The Applicant’s occupation (encroachment) of the legal road will be legalised.

· Will not compromise the roading network.

· May be more palatable to the owner of Lot 1 DP 7225.

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

· Is consistent with the provisions of Council’s Roading Policy.

· Is consistent with the Public Works Act 1981.

Disadvantages:

· The Applicants may not have anticipated having to purchase the land at valuation.

· Stopping a smaller section of the road may not suit the Applicant’s requirements.

Option 4

To recommend to Council to approve the proposal to stop the smaller unformed portion of Branxholm Street as shown in figure 19, being approximately 46 square metres, subject to:

- The Applicants paying all costs associated with the stopping.

- The land being transferred to the Applicants for $1.00.

- The Applicant’s obtaining the consent of the owner of Lot 1 DP 7225.

- The land being amalgamated with record of title OT400/197 (Lot 1 DP 4138).

- The stopping being approved by the Minister of Lands.

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

Advantages:

· The Applicant’s occupation (encroachment) of the legal road will be legalised.

· Will not compromise the roading network.

· May be more palatable to the owner of Lot 1 DP 7225.

· Recognises the provisions of Council’s Roading Policy.

· Is consistent with the Public Works Act 1981.

Disadvantages:

· No income will be received for the purpose of addressing other public roading matters.

· Is not consistent with the provisions of Council’s Roading Policy.

· Is not consistent with the provisions of the Public Work Act as they relate to the assessment and payment of compensation.

· Stopping a smaller section of the road may not suit the applicant’s requirements.

· Would create a precedent.

Option 5

To not recommend to Council to approve the proposal to stop an unformed section of Branxholm Street.

Advantages:

· None, as the proposal to legalise the encroachment will not compromise the roading network.

Disadvantages:

· The Applicant’s occupation (encroachment) of the legal road would not be legalised.

· Would resolve the concerns of the owner of Lot 1 DP 7225.

· Additional income will not be received for the purpose of addressing other public roading matters.

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

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

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic wellbeing of the community by generating income from the disposal of land that is held (but not required) for roading purposes.
Financial implications – Is this decision consistent with proposed activities and budgets in long term plan/annual plan?	There are no negative financial implications associated with the recommended option as the Applicants are required to all costs associated with the proposal including purchase of the land at valuation. The proceeds of the sale will be used to address other public roading matters.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Council’s Road Stopping Policy applies to this application. Consideration of this policy has ensured that the appropriate statutory process, being to stop the road in accordance with the provisions of the Public Works Act 1981, has been followed.
Considerations as to sustainability, the environment and climate change impacts	No sustainability, environmental or climate change impacts are related to the decision to stop this short unnamed unformed road.
Risks Analysis	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. Notice of the completed road stopping will be published in the New Zealand Gazette.

6. Next Steps

1. Community Board approval 23 March 2023

2. Council approval 30 March 2023

3. Surveyor and LINZ Accredited Supplier engaged On release of CNL Resolution

4. Survey Plan approved Mid to late 2023

5. Gazette notice published Late 2023/Early 2024

7. Attachments

Appendix 1 - Originial Report dated 02 February 2023 ⇩

Appendix 2 - Letter to Council dated 01 February 2023 ⇩

Appendix 3 - Letter to Council dated 07 July 2022 ⇩

Report author:	Reviewed and authorised by:

Linda Stronach	Louise van der Voort
Team Leader – Statutory Property	Acting Chief Executive Officer
9/03/2023	14/03/2023

23 March 2023

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23.2.3 Roxburgh Entertainment Centre Maintenance Project

Doc ID: 604319

1. Purpose of Report

To consider the proposed maintenance programme and funding for the Roxburgh Entertainment Centre.

Recommendations

That the Teviot Valley Community Board

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

B. Approves the Roxburgh Entertainment Centre roof repair costs, estimated at an initial cost of $61,000 and ongoing of $1,500, are included in the Long-term Plan 2024-34.

C. Notes the Roxburgh Entertainment Centre is no longer required to be earthquake strengthened to 67% NBS IL4. This is because the Central Otago Emergency Management is going to execute a memorandum of understanding with the Roxburgh Area School to use their hall as the ward’s Civil Defence Centre.

D. To approve the reallocation of $336,000 of the $362,000 capital budget no longer required to earthquake strengthen the Roxburgh Entertainment Centre to the full replacement of the southwall (WSP Report Option 3), and an Asbestos Refurbishment Survey and Building Condition Assessment.

E. To approve the reallocation of $15,900 of the $26,251 operational budget no longer required for the Roxburgh Entertainment Centre earthquake strengthening to carry out a Conservation Plan.

2. Background

In the last year several maintenance items, both programmed and unprogrammed, have been identified. These include:

· Fire system upgrade

· LED lighting upgrade

· Earthquake strengthening

· Rot to the exterior south wall

· Roof repairs

· Conservation Plan

A project plan was developed to bring these various maintenance items together. The aim of this project is to provide economical gains by bringing like projects together, gaining a better understanding of the building significance and have a better ability to plan for future maintenance items.

3. Discussion

Fire System Upgrade

In year two of the Long-term Plan 2021-31, $132,000 is approved for the upgrade of the fire alarm system in the building. This is as per the Teviot Valley Community Board (the Board) resolution 20.2.8 below.

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With the current restriction of occupant numbers in place, community members are very keen to have this work made a priority. This was communicated by the Chair of the Board at their meeting on 3 February 2022.

The Board also agreed at this meeting to transfer cost savings from the Stage Upgrade Project into this budget. As per resolution 22.1.2 below.

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The total budget for this project is $203,254.

A potential budget surplus was identified. This project will be extended to include the replacement of the existing lights with LED lights. This will improve the energy efficiency of the building and maximise the use of the scaffolding that will be required for the fire alarm installation.

A tender for the fire alarm and LED lighting upgrade was carried out. The tender was awarded to Aotea Electrical Limited. The preliminary design work for the fire alarm is underway.

Earthquake Strengthening

In 2017, the building was strengthened to above 34% NBS IL4. Due to updated building regulations the building strengthening needs to be increased to 67% NBS IL4 if it is to be used as a Civil Defence Centre.

The following budgets were included in the Long-term Plan 2021-31.

Year 1	Detailed Seismic Assessment	$26,450	Operational budget
Year 2	Detailed design and construction costs	$362,000	Capital budget

The Central Otago Emergency Management Officer is in the process of executing a memorandum of understanding to use the Roxburgh Area School Hall as the areas Civil Defence Centre. Once this agreement is executed the Roxburgh Entertainment Centre will no longer require further strengthening.

Roof Repairs

In 2022 a roof inspection was undertaken as there had been several roof leaks in the past few years.

The roof inspection report identified the following one-off work programme:

Hall roof

1. Surface rust to be treated with scotch brite, rust converter, layer of zinc rich paint, then painted with galvanised matched paint to help prevent more corrosion.

2. Roofing iron laps to be re screwed down with profile washers and rubber ethylene propylene diene monomer (EPDM).

3. Install two soaker/cover trays over roofing patches to cover from weather and keep water off.

4. Install profile foam to the top side of the change of pitch underneath roofing iron and on top of flashing to stop any wind-blown water reaching where the roofing screws have penetrated the flashing.

5. Re fix all barge flashings on the main gable roof.

Theatre roof

1. Roofing iron and flashings with surface rust could be scotch brite then treated with rust converter, layer of zinc rich paint then painted with galvanised matched paint to help prevent more corrosion.

2. Ridging to main building to be replaced with new.

3. Apron flashings to dutch gable and man entry to roof to be replaced.

4. Roofing nails to be replaced to entire roof including roof flashings with new roofing screws, profile washers & rubber EPDMs.

5. Holes to be filed where required with pop rivets.

6. Parapet capping joins to be re sealed and fixed. Fixing holding to be checked and replaced where needed. Missing parapet cap to be re used and fitted.

7. Roofing and required flashing to man entry roof to access roof to be replaced with new.

8. Replace flashings to base of roof vent.

Cost estimate

$61,000

The roof inspection report identified the following annual maintenance programme:

Hall Roof

1. All gutters to be cleaned and maintained often.

2. Butynol to gable wall junction (chase flashing) to be monitored.

Theatre Roof

1. All internal gutters to be cleaned and maintained often.

2. Chase flashing to be monitored.

Cost estimate

$1,500pa

Exterior Rot Repair

In 2021 water damage to the south wall of the Roxburgh Entertainment Centre was discovered. See photos below.

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WSP structural engineers assessed the wall and provided the following recommendations in their report dated 2022.

Repair Options

WSP provided the following options for consideration:

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A quantity surveyor provided the following cost estimates for the three options.

Option 1 – do minimal	$105,000
Option 2 – do medium	$165,000
Option 3 – do maximum	$236,000

While the most expensive, WSP recommends option 3. WSP recommended this option as it resolves not only the moisture damage it also addresses the existing design issues around the windows and provides for the most longevity of the repair options.

The report also identified several risks that will be associated with this project.

· The extent of the rot is unknown.

“The exact extent of work is unknown and hence the biggest project risk. The only way to determine this with confidence is to expose the existing structure.”

This could be confirmed by either of the following options.

1. Carry out an intrusive investigation prior to starting works from the inside of the hall. This would involve removing the internal wall linings up to the roof height.

Ø Rough cost estimate of $5,000.

2. Determine the extent of repair required on-site during construction.

Ø Procure a construction partner to work alongside the engineer to determine the extent of work and then quote on construction at pre-determined rates.

· Potential for asbestos being present in the plaster cladding. Asbestos refurbishment survey recommended.

Ø WSP quote for an asbestos refurbishment survey is $4,680

· Lack of sub-floor ventilation throughout the complex.

“We noted the lack of sub-floor ventilation and moisture issues during the site walk over and consider that this is a major factor in the deterioration of the subfloor members. We recommend that ventilation and moisture control is looked at across both buildings to increase the longevity of the proposed repair works. Therefore, we recommend a detailed condition assessment.”

Ø WSP quote for a Building Condition Assessment is $12,350

This condition assessment will also assist with understanding the expected life of the building.

Conservation Plan

The theatre was built in 1930 and the hall added on in 1959.

The building is not listed on the New Zealand Heritage List/Rārangi Kōrero nor the District Plan’s Heritage Building, Place, Sites, Object and Trees List. However, the Roxburgh Entertainment Centre Promotion and Improvement’s Group (RECIP) have identified the Cinema as the longest running in New Zealand. See RECIP’s document below.

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To assist the Council in understanding the significance of the building it is prudent of Council to consider undertaking a Conservation Plan.

The purpose of a Conservation Plan is to:

· Research and provide an account of the history of the place

· Evaluate the heritage significance of the place and its features

· Assess the condition of vulnerability of the place and its features

· Formulate a set of conservation policies to provide protection and guide decisions about future management and use

· Translate these policies into detailed guidance for conservation, restoration, and maintenance actions

Ø WSP quote for a Conservation Plan is $21,500.

4. Financial Considerations

Fire system and LED lighting upgrade

Is due to be completed within budget. Therefore, there is no new financial impact.

Earthquake Strengthening

As the Roxburgh School hall is going to be used as the ward’s Civil Defence Centre, the Roxburgh Entertainment Centre no longer needs to be strengthened beyond the current 34% NBS IL4 level.

The $26,451 operational budget is no longer required to provide a Detailed Seismic Assessment.

The $362,000 capital budget is no longer required to provide an earthquake strengthening detailed design and construction costs.

Roof Repairs

It is proposed that the one-off cost of the roof repairs of $61,000 and annual maintenance costs of $1,500 per annum are considered in the Long-term Plan 2024-34.

Wall Replacement

If option 3 recommended above is adopted together with provision of intrusive investigation, an asbestos refurbishment survey and a detailed building assessment, plus a 30% contingency, the estimated budget required is $336,000.

As the full wall is being replaced this is therefore a capital expense. It is proposed that $336,000 of the $362,000 capital budget for earthquake strengthening design and construction costs, which is no longer required, is reallocated to this repair. This budget is funded by the building’s reserve account. This reserve account will go into deficit if this capital is spent. As at February 2023 this will leave the Teviot Ward with an overall balance of $300,000 in reserves.

Conservation Plan

A Conservation Plan is an operational building expense. If the Conservation Plan is carried out at the same time of the Building Condition Assessment, then there is a reduction of $5,300 due to staff efficiencies gained through the same personnel carrying out both items. Total cost is $15,900.

The Council has been successful in gaining funding for Conservation Plans through the Lottery’s Environment and Heritage Fund. However, these applications take a considerable amount of staff time in preparing and the fund is often oversubscribed so funding is not guaranteed. The next round of funding applications are due to be considered in the latter half of the year. Therefore, if this funding option is adopted the saving from combining the Conservation Plan and the Building Condition Assessment are not achieved.

It is proposed that the $26,451 operational budget no longer required for the earthquake strengthening is reallocated to this expense and the Building Condition Assessment and the Conservation Plan is carried out at the same time.

5. Options

Option 1 – (Recommended)

To approve the Roxburgh Entertainment Centre roof repair costs, estimated at an initial cost of $61,000 and ongoing of $1,500, are included in the Long-term Plan 2024-34.

To note the Roxburgh Entertainment Centre is no longer required to be earthquake strengthened as the Central Otago Emergency Management is executing a memorandum of understanding with the Roxburgh Area School to use their school hall as the wards Civil Defence Centre.

To approve the reallocation of $336,000 of the $362,000 capital budget no longer required for the Roxburgh Entertainment Centre earthquake strengthening to the replacement of the full replacement of the south wall (WSP Report Option 3), and an Asbestos Refurbishment Survey and Building Condition Assessment reports.

To approve the reallocation of $15,900 of the $26,251 operation budget no longer required for the Roxburgh Entertainment Centre earthquake strengthening to carry out a Conservation Plan at the same time the Building Condition Assessment report is commissioned.

Advantages:

· Provides for the current and ongoing maintenance of the roof.

· Provides for the most appropriate long-term solution to make good the rot found on the exterior south wall. The methodology of repair will resolve both current moisture damage, and the design issues around the windows.

· Provides for an asbestos refurbishment report to ensure the health and safety requirements are met during construction.

· Provides for a Building Condition Assessment which will be used to identify any building ventilation issues to ensure the longevity of the wall replacement.

· Provides for a Conservation Plan that will help formalise the significance of the building and formulate a set of conservation policies to provide protection and guidance for conservation, restoration and maintenance actions.

· Provides for reallocation of current capital and operation budget no longer required for earthquake strengthening to achieve the above.

Disadvantages:

· Operational and capital budget savings due to the cancellation of the earthquake strengthening of the building will be reduced.

Option 2

To not adopt option 1 or adopt a variation to option 1.

Advantages:

· Potentially increases the operational and capital budget savings due to the cancellation of the earthquake strengthening of the building.

Disadvantages:

· May not provide for the current and ongoing maintenance of the roof.

· May not provide for the most appropriate and long-term solution to make good the rot found in the exterior south wall. The methodology of repair may not resolve both current moisture damage, and the design issues around the windows.

· May not provide for an asbestos refurbishment report to ensure the health and safety requirements are met during construction.

· May not provide for a building condition assessment which will be used to identify any building ventilation issues to ensure the longevity of the wall replacement.

· May not provide for a Conservation Plan that will help formalise the significance of the building and formulate a set of conservation policies to provide protection and guidance for conservation, restoration and maintenance actions.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by determining the most appropriate building maintenance repairs and funding for the Roxburgh Entertainment Centre. AND This decision promotes the social and cultural wellbeing of communities, in the present and for the future by continuing to preserve and gain further understanding of the significance of this iconic community building.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, this decision is consistent with other Council plans and policies. The procurement of engineering services is within the minor spend category parameters of the Council’s Procurement Policy. Therefore, a direct source via a written quote is deemed appropriate where there are economical savings when the standardisation of one contractor carrying out multiple reports is desirable. The procurement of the construction contract is potentially in the high spend category of the Council’s Procurement Policy. Therefore, a market tender is proposed.
Considerations as to sustainability, the environment and climate change impacts	This decision does not impact on the sustainability, environmental, and climate change of district.
Risks Analysis	There is a risk that if the recommended option is not adopted then health and safety obligations to the contractor and the community are not upheld, that the longevity of the wall repair is not obtained, the building condition will deteriorate, and the historic significance of the building is not protected.
Significance, Consultation and Engagement (internal and external)	None of the thresholds/criteria in the Significance and Engagement Policy have been met or exceeded by the proposal and so the proposal is not considered significant.

7. Next Steps

· RECIP are notified of the Board decision

· WSP are engaged to undertake the engineering work

· A building contractor is engaged to undertake the intrusive investigation work under the engineer’s guidance

· Engineering reports received and appropriate action is taken with regards to their recommendations

· Construction work is tendered

· Construction work is completed

· The roof maintenance budget is included in the Long-term Plan 2024-34

8. Attachments

Nil

Report author:	Reviewed and authorised by:

Christina Martin	Louise van der Voort
Property and Facilities Officer (Vincent and Teviot Valley)	Acting Chief Executive Officer
13/03/2023	14/03/2023

23 March 2023

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23.2.4 2023-24 Annual Plan Budget and Fees and Charges Schedule

Doc ID: 614366

1. Purpose of Report

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

Recommendations

That the Teviot Valley Community Board

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

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

C. Agrees to accept the Teviot Valley 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 Teviot Valley Ward have been prepared on Council’s request to keep the 2021-31 Long-term Plan (year three) budgets relatively unchanged. The year three budgets of the Long-term Plan 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 factor of 1.9%.

The 2023-24 Annual Plan draft budget for the Teviot Valley Ward has a decrease in rates of ($6.6k) or (1.3%). This ensures we deliver the level of service the board has requested through both the 2021-31 Long-term Plan and resolutions for the year ahead.

In addition to adopting the 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 meetings. Once accepted, the community board budgets will be provided to Council to consider including in the 2023-24 Annual Plan.

There are several factors which account for the district 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 of Council buildings reflect the increases in the depreciation expense and therefore rate funding for the depreciation.

Appendix 2 shows the cost centres that are funded by Teviot Valley Ward Rates and outlines the changes made. Please note that the ward rate is specific to rateable units in the ward only and does not include the district wide rate and does not allow for increased growth.

4. Financial Considerations

The 2023-24 Annual Plan draft budget for the Teviot Valley Ward has a decrease in rates of ($6.6k) or (1.3%)

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 LTP to ensure appropriate repayment of both external debt and reserve deficits occur.

5. Options

Option 1 - (recommended)

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.

Advantages:

· Meets statutory requirements

· Provides transparent expenditure management

· The Teviot Valley Ward’s budget will feed into Council’s Annual Plan budget for 2023-24

· Meets the ratepayers’ expectations of what was consulted on in the 2021-31 Long-term Plan

· Allows changes to reflect 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 district 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 or Fees and Charges.

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 will be 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 - TVCB Draft 2023-24 Annual Plan Budgets. ⇩

Appendix 3 - TVCB Draft 2023-24 Annual Plan Budgets - Capital Expenditure. ⇩

Appendix 4 - TVCB Draft 2023-24 Annual Plan Budgets - 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

23 March 2023

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23.2.5 Teviot Valley Financial Report for the Period Ending 31 December 2022

Doc ID: 615444

1. Purpose

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

Recommendations

That the report be received.

2. Discussion

These statements are designed to give an overview of financial performance.

The operating statement for the six months ending 31 December 2022 shows an unfavourable variance of ($494k) against the revised budget.

2022/23	6 MONTHS ENDING 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:
22	Internal Interest Revenue	16	11	5	˜	22
18	User Fees & Other	12	9	3	˜	18
-	Reserves Contributions	2	-	2	˜	-
529	Rates	280	263	17	˜	529
28	Other Capital Contributions	-	14	(14)	˜	28
					˜
596	Total Income	310	297	13	˜	596
	Expenditure
11	Rates Expense	12	6	(6)	˜	11
147	Cost Allocations	74	74	-	˜	147
47	Other Costs	13	24	11	˜	91
10	Staff	9	5	(4)	˜	10
13	Fuel & Energy	7	6	(1)	˜	13
137	Contracts	57	66	9	˜	137
24	Building Repairs and Mtce	20	12	(8)	˜	24
42	Grants	537	21	(516)	˜	42
18	Members Remuneration	8	9	1	˜	18
6	Internal Interest Expense	-	2	2	˜	6
146	Depreciation	68	73	5	˜	146
602	Total Expenses	805	298	(507)	˜	646
(6)	Operating Surplus / (Deficit)	(495)	(1)	(494)		(49)
	This table has rounding (+/-1)

Income for period ending 31 December 2022

Operating income has a favourable variance of $13k to the revised budget.

· Internal interest revenue is trending higher than budget. This is due to the Roxburgh pool grant that has been released in this financial year, resulting in the opening Roxburgh pool and general reserves balance being higher than forecasted. Market interest rates are higher than expected.

· Rates has a favourable variance of $17k. This is mainly due to the rates adjustment increasing depreciation reserves which normally happens at the end of the financial year.

· Other capital contributions has an unfavourable variance of ($14k). Capital donations for the Millers Flat Hall project are still waiting to be received. Applications to external funders will be made upon the availability of quotes.

Expenditure for period ending 31 December 2022

Expenditure has an unfavourable variance of ($507k) to revised budget.

· Rates expense shows an unfavourable variance of ($6k). The key reason being that Central District Otago Council property annual rates for 2022-23 has been paid in full this period. This will be aligned with the budget at the end of the financial year.

· Other costs have a favourable variance of $11k. This includes compliance schedule $10k and professional fees $5k. This is offset by weed control unfavourable variance of ($4k).

· Contracts has a favourable variance of $9k. These expenses are needs-based and will vary against budget from time to time.

· Grants has an unfavourable variance of ($516k). This is due to the $500k capital contribution made towards the Roxburgh community pool upgrade. This is 50% loan and 50% reserve funded. This was in the 2020/21 Long-term plan budget.

Capital Expenditure

Capital expenditure (CAPEX) for the period ending 31 December 2022 reflects that CAPEX spending is $10k favourable to revised budget. This quarter did not record any actual capital expenditure during the period. The actual capital spend year to date is 2.5% of the revised budget.

2022/23	6 MONTHS ENDING 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 & Reserves:
1	Roxburgh Reserves - Landscaping & Planting	4	1	(3)	˜	3
31	Roxburgh Reserves - Bins, Signs, Structures	4	17	13	˜	46
2	Millers Flat Recreation Reserve - Tennis Courts	-	3	3	˜	6
34	Total Parks & Reserves:	8	21	13	˜	54
	Property:
494	Roxburgh Town Hall	8	5	(3)	˜	575
494	Total Property:	8	5	(3)	˜	575
528	Total Capital Expenditure	16	26	10	˜	629
	This table has rounding (+/-1)

Parks and reserves – have an overall favourable variance of $13k.

· Roxburgh reserves bins, signs, structures – the King George Park playground equipment (roundabout) replacement project has been delayed due to availability of the contractor to start the work.

Property – have an overall unfavourable variance of ($3k).

· Roxburgh Town Hall has an unfavourable variance of ($3k). Main construction of the project is on hold. This work will be done in conjunction with the community project to replace the cinema screen. This has been carried forward from last financial year and expected to be completed by the end of 2022-23 financial year.

Reserve Funds table for Teviot Valley Ward

· As at 30 June 2022 the Teviot Valley Ward has an audited closing reserve funds balance of $1.496M. 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 Teviot Valley Ward is projected to end the 2022/23 financial year with a closing balance of $315k.

3. Attachments

Appendix 1 - 202212 Teviot Valley 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

23 March 2023

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23.2.6 Plan Change 19 Update

Doc ID: 620835

1. Purpose

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

Recommendations

That the report be received.

2. Discussion

Background

The operative Central Otago District Plan (the Plan) was publicly notified on 18 July 1998 and was amended by decisions on submissions on 1 July 2000. It became operative on 1 April 2008 after references to the Environment Court were settled.

The Residential chapter of the Central Otago District Plan has not been subject to a full review since it was originally drafted in 1998. Minor alterations have been made to the residential provisions as a result of private plan change requests and Council initiated plan changes. Plan Change 19 (PC19) is the most significant Council initiated plan change since the Plan Change 5 series which was a full landscape classification and review of the development and subdivision provisions in the Rural Resource Area. Given its significance it is appropriate to update the Council and Community Boards on the progress of the plan change.

Council has chosen to approach planning for growth through extensive community consultation and the development of spatial plans. The Cromwell Spatial Plan was adopted by Council in 2018 followed by the Vincent Spatial Plan that was adopted by Council in January 2022. In late 2022 Council approved the development of the Teviot Valley Spatial Plan which is now underway. This approach provides certainty and allows for decisions to be made around investment in infrastructure.

The spatial plans have been prepared by the Council to respond to demand for residential land and housing affordability concerns in the district, and to plan for the anticipated growth over the next 30 years.

PC19 implements the direction set by the Cromwell and Vincent spatial plans by proposing rezoning of land for residential use, identifying some areas for future growth, and includes new provisions for managing land use and subdivision within the residential zones.

Plan Change 19

Plan change 19 proposes to make a complete and comprehensive change to the way the district’s residential areas are zoned and managed. It is consistent with the National Planning Standards, being the Government templated format for district plans.

PC19 proposes to:

· Replace the current Section 7 Residential Resource Area of the Plan with a new Residential Zone Section, comprising chapters on:

o Large Lot Residential Zones;

o Low-Density Residential Zones;

o Medium Density Residential Zones (including medium density design guidelines);

o Residential Subdivisions; and

· Amend the planning maps to rezone land in general accordance with what has been identified in the Vincent and Cromwell Spatial Plans and to reflect the new zone names above; and

· Amend Section 18 definitions to insert new definitions that apply in the Residential Zones chapter and make consequential amendments to existing definitions to clarify the sections of the Plan where they apply; and

· Make consequential changes to other sections of the Plan to reflect the proposed new zones.

Medium density guidelines and heritage guidelines have also been developed to ensure higher density developments achieve good urban design, access to open space and protect heritage values in heritage precincts.

PC19 proposes to align with current best planning practice and the National Planning Standards. Where changes to the current approach are not considered necessary to achieve the outcomes sought for residential areas, the current provisions are proposed to be rolled over into the new residential zone chapters, albeit in a refined manner.

The National Planning Standards have been implemented through PC 19 to the extent that it has been possible to do so ahead of the full District Plan Review; including the adoption of the Zone Framework Standard for the new Residential Zones and Residential chapter, and the adoption of definitions insofar as they apply to the provisions proposed in the Residential chapter.

Plan Change 19 Process Timeline – to date

Date	Process
26 January 2022	Vincent Spatial Plan adopted by Council
February – May	Plan Change 19 and Medium Density Guidelines finalised and engagement with statutory parties undertaken.
1 June 2022	Plan Change 19 (including medium density guidelines) approved for release by Council
9 July 2022	Plan Change 19 publicly notified
Week of 25^th July	PC 19 drop-in sessions Alexandra
Week of 1^st August	Drop-in sessions Alexandra and Cromwell
Week of 22^nd August	Drop-in sessions Alexandra (including evening timeslot)
Week of 29^th August	Drop-in sessions Cromwell (including evening timeslot)
2 September 2022	Submissions Closed (171 submissions received)
1 December 2022	Submissions on summary of decisions requested in submissions publicly notified
19 December 2022	Submissions on summary of decisions requested in submissions closed (77 further submissions received)

This is a complex plan change which has attracted a large number of submissions covering a broad range of plan provisions and topics.

Potential Private Plan Changes

Prior to notification of PC19 Council staff sought legal advice on the potential impact of receiving and processing requests for private plan changes to the Residential Chapter of the operative District Plan alongside a comprehensive review of the residential provisions.

If Council were to accept a private plan change on the operative District Plan, it would potentially be faced with considering a request to change the Plan at the same time it is undertaking a comprehensive change to the objectives and policies of the plan. This is not what is contemplated by the legislation and is not considered to be sound resource management practice. As noted above PC19 is a comprehensive re-write of a whole chapter of the operative plan with a new suite of objectives, policies, and rules. The running of the two processes side by side would also likely cause confusion, particularly as the comprehensive review of the residential chapter of the plan will effectively rewrite the provisions of a private plan change.

When deciding whether to adopt, accept, convert, or reject a private plan change, one of the things Council considers is the integrated effects of the change. And Clause 25 (4) (c) of the First Schedule to the Resource Management Act 1991 allows Council to reject a request on the basis that the request is not in accordance with sound resource management practice.

Council has two years to process a private plan change from notification to decisions, which is the same timeframe for processing of a Council initiated plan change. PC 19 is progressing well within that two-year period and hearings are anticipated to be around ten months from notification. A private plan change proposal that reflects the residential zoning in the Vincent Spatial Plan (adopted by Council January 2022), is unlikely to be disadvantaged by the request being processed as part of PC 19.

If a private plan change request was received that proposed to adopt the provisions of proposed PC19, but were not contemplated by the spatial plans, it would not create the same issues and could potentially be accepted.

Giving Effect to a Plan Change

In terms of when a plan change can be relied upon for the purpose of the lodging of a resource consent, until hearings on submissions have been conducted, submitters have had the opportunity to participate, a decision has been issued that is beyond the appeal period, the provisions cannot be relied upon.

A plan change process is by no means a rubber stamp. During the processing and hearing of a plan change, (council initiated or private), the provisions may change as the Hearings Panel considers the submission received. This process is transparent, and it is important that the submitters feel heard.

Applications for resource consent are not able to be processed under the new provisions until the plan change decisions have been issued and are beyond challenge. This is because the plan change provisions have no legal effect and there is no certainty that a plan change will be approved in its notified form.

Similarly, there can be no certainty of the outcome of any future subdivision or resource consent granted under the proposed rules, until those provisions are beyond challenge. Any expectation regarding the outcome of a plan change, and any future resource consent to be processed under those provisions, should be undertaken with an understanding of the risk that the provisions may change. Council has two years to process the plan change and a decision on PC 19 is required by 9 July 2024.

Next Steps

While the dates for hearings are yet to be set, Council is intending to progress to the next stages of the plan change in the first quarter of 2023, starting with consideration of whether pre-hearing meetings would be appropriate in relation to some issues raised in submissions, and the preparation of the section 42A recommendation to the Hearings Panel. The next stages of the process are outlined below:

1. Pre-Hearing Meetings (if required).

2. Preparation and circulation of section 42A recommendation report and evidence exchange.

3. Hearings held.

4. Decisions released.

5. Appeals (if any)

It is hoped that hearings may be able to be scheduled in April/May, however that will be dependent on the outcome of any pre-hearing meetings (if required).

3. Attachments

Nil

Report author:	Reviewed and authorised by:

Ann Rodgers	Louise van der Voort
Principal Policy Planner	Acting Chief Executive Officer
16/01/2023	14/03/2023


AGENDA Teviot Valley Community Board Meeting Thursday, 23 March 2023
Date:	Thursday, 23 March 2023
Time:	2.00 pm
Location:	Roxburgh Service Centre, 120 Scotland Street, Roxburgh (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
06/03/2023	06/03/2023