Agenda of Council meeting - Wednesday, 29 May 2024

Council Meeting Agenda

29 May 2024

MINUTES OF A Council Meeting OF THE Central Otago District Council
HELD AT Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Wednesday, 24 April 2024 COMMENCING AT 10.30 am

PRESENT: His Worship the Mayor T Cadogan (Chairperson), Cr N Gillespie (via Microsoft Teams), Cr T Alley, Cr S Browne, Cr I Cooney, Cr S Duncan, Cr S Feinerman, Cr C Laws, Cr N McKinlay, Cr M McPherson, Cr T Paterson

IN ATTENDANCE: P Kelly (Chief Executive Officer), L van der Voort (Group Manager - Planning and Infrastructure), J Muir (Three Waters Director), S Righarts (Group Manager - Business Support), D Rushbrook (Group Manager - Community Vision), D Scoones (Group Manager - Community Experience), V Chopra (Contract CFO), A Longman (Head of Destination), G Bailey (Parks and Recreation Manager), G Robinson (Property and Facilities Manager), L Stronach (Team Leader – Statutory Property), A Lines (Risk and Procurement Advisor), N McLoed (Chief Information Officer), D McKewen (Systems and Corporate Accountant), W McEnteer (Governance Manager)

1 Karakia

Cr McPherson gave a karakia to begin the meeting.

2 Apologies

Apology

Resolution

Moved: Cadogan

Seconded: Alley

That the apology received from Cr Claridge be accepted.

Carried

3 Public Forum

Colin Faulkner – Resource Consents

Mr Faulkner spoke to his recent resource consent and in particular was critical of the recommendations that went through for the Hearings Panel to consider. He then responded to questions.

4 Confirmation of Minutes

Resolution

Moved: Gillespie

Seconded: McPherson

That the public minutes of the Ordinary Council Meeting held on 20 March 2024 and the Extraordinary Council Meeting held on 28 March 2024 be confirmed as a true and correct record.

Carried

5 Declarations of Interest

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

6 Reports

24.5.2 2024/25 Annual Plan: Draft Budgets, Consultation Document and Supporting Documentation

To consider approving the draft budgets and adopting the supporting documentation and Consultation Document for the Annual Plan 2024/25.

After discussion it was noted that there were incorrect capex figures for the Teviot Valley Community Board and that the potential grant for the Maniototo Area School hockey turf was deferred to the Long-term Plan and would be taken out of that budget

Resolution

Moved: Cadogan

Seconded: Gillespie

That the Council

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

B. Agrees that the Council specific budgets and information contained in Appendices 1, 2 and 3 of the report, be included in the full draft 2024/25 Annual Plan.

C. Agrees that the recommendations of budgets and fees and charges, for the 2024/25 Annual Plan, from the community boards be included in the full draft 2024/25 annual plan and consultation document. With the following adjustments:

· Notes the Maniototo Community Board’s decision to defer a potential grant to the Maniototo Area School Hockey Turf project until the 2025-34 Long-term Plan

· Notes the revised capex figures for the Teviot Valley Community Board that will be added to the consultation document.

D. Adopts the Supporting Information for the Annual Plan 2024/25 Consultation Document.

E. Adopts the Consultation Document for the Annual Plan 2024/25 for Public Consultation subject to any minor editorial amendments.

Carried

Attachments

1 Updated Capex Budget for Teviot Valley Community Board

2 Updated Annual Plan 2024-25 Consultation Document

Note: Cr Alley assumed the Chair as the Community Vision and Experience portfolio lead.

Note: With the permission of the meeting, items 24.5.4 and 24.5.5 were moved forward.

24.5.4 Freedom Camping Enforcement Options

To consider option for controlling freedom camping within the Central Otago District.

Resolution

Moved: Paterson

Seconded: Feinerman

That the Council

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

B. Agrees to monitor the effectiveness of recent changes to freedom camping rules and enforcement provisions in freedom camping legislation over the 2024/25 summer season including any public feedback from freedom camping and camping related impacts. That this information is reported back to Council at its April 2025 meeting.

C. Defers a decision to develop a Freedom Camping Bylaw until after the April 2025 Council meeting.

D. Agrees that any Freedom Camping enforcement actions required in the interim will be undertaken using existing legislation.

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

Carried

24.5.5 Request for Minister of Conservation's Consent to Easement over Recreation Reserve [PRO: 2000-L8]

To consider granting (pursuant to delegated authority) the consent of the Minister of Conservation, to the granting an easement over Lot 8 Deposited Plan 492123, being part of the Alexandra Town Belt (recreation reserve).

Resolution

Moved: Cooney

Seconded: Laws

That the Council

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

B. Agrees to grant the consent of the Minister of Conservation (pursuant to delegated authority), to an easement in gross being granted in favour of 2 Degrees Networks Limited over Lot 8 Deposited Plan 429123 (recreation reserve), in accordance with section 48 of the Reserves Act 1977.

Carried

Note: Glen Christiansen from The Gate, Cromwell joined the meeting for item 24.5.3.

24.5.3 Tourism Central Otago - Destination Management Update

To provide an update on the Central Otago Destination Management Plan implementation and Tourism Central Otago workstreams.

Staff and Mr Christiansen gave an update on current developments in the tourism space before responding to questions.

Resolution

Moved: Alley

Seconded: Feinerman

That the report be received.

Carried

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

24.5.6 Proposal to Stop Unformed Legal Road

To consider an application to stop 1,900 square metres of unformed legal road adjacent to the intersection of River Street and Hindon Street, Omakau.

Resolution

Moved: McPherson

Seconded: Paterson

That the Council

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

B. Agrees to stop approximately 1,900 square metres of unformed legal road adjacent to the intersection of River Street and Hindon Street as shown in figure 5 (the final plan) subject to:

- The Applicants paying for the land at valuation as prescribed in the Public Works Act 1981.

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

- A seven metres wide carriageway being retained between the stopped road and Section 13 Block I Town of Manuherikia.

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

- The stopped road being amalgamated with Sections 6 – 7 Block IV Town of Manuherikia (as currently contained in Record of Title OT325/90).

- The stopping being approved by the Minister of Lands.

- The Applicants obtaining and paying all costs associated with the Licence to Occupy the residual area as shown in figure 6.

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

Carried

Note: His Worship the Mayor resumed the Chair.

24.5.7 Fraud, Bribery and Corruption Policy

To consider an update to the Fraud, Bribery and Corruption Policy.

Resolution

Moved: Cadogan

Seconded: Duncan

That the Council

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

B. Adopts the Fraud, Bribery and Corruption Policy.

Carried

Note: Cr Alley left the meeting at 12.05 pm and returned at 12.06 pm.

Note: Cr Cooney left the meeting at 12.05 pm and retuned at 12.07 pm.

Note: With the permission of the meeting, item 24.5.9 was moved forward.

24.5.9 Financial Report for the Period Ending 29 February 2024

To consider the financial performance for the period ending 29 February 2024.

Resolution

Moved: Alley

Seconded: Browne

That the report be received.

Carried

Note: Cr McKinlay left the meeting at 12.16 pm and returned at 12.20 pm.

24.5.8 Use of Artificial Intelligence Policy

To inform Council about the development of the Use of Artificial Intelligence Policy.

Resolution

Moved: Alley

Seconded: McPherson

That the report be received.

Carried

7 Mayor’s Report

24.5.10 Mayor's Report

His Worship the Mayor spoke to his report before responding to questions.

Resolution

Moved: Cadogan

Seconded: Duncan

That the Council receives the report.

Carried

8 Status Reports

24.5.11 April 2024 Governance Report

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

Resolution

Moved: Alley

Seconded: Browne

That the report be received.

Carried

9 Community Board Minutes

24.5.12 Minutes of the Vincent Community Board Meeting held on 2 April 2024

Resolution

Moved: Cadogan

Seconded: Duncan

That the unconfirmed Minutes of the Vincent Community Board Meeting held on 2 April 2024 be noted.

Carried

24.5.13 Minutes of the Cromwell Community Board Meeting held on 2 April 2024

Resolution

Moved: Cadogan

Seconded: Duncan

That the unconfirmed Minutes of the Cromwell Community Board Meeting held on 2 April 2024 be noted.

Carried

24.5.14 Minutes of the Teviot Valley Community Board Meeting held on 4 April 2024

Resolution

Moved: Cadogan

Seconded: Duncan

That the unconfirmed Minutes of the Teviot Valley Community Board Meeting held on 4 April 2024 be noted.

Carried

24.5.15 Minutes of the Maniototo Community Board Meeting held on 4 April 2024

Resolution

Moved: Cadogan

Seconded: Duncan

That the unconfirmed Minutes of the Maniototo Community Board Meeting held on 4 April 2024 be noted.

Carried

10 Committee Minutes

24.5.16 Minutes of the Assessment Committee Meeting held on 18 March 2024

Resolution

Moved: Cadogan

Seconded: Duncan

That the unconfirmed Minutes of the Assessment Committee Meeting held on 18 March 2024 be noted.

Carried

24.5.17 Minutes of the Audit and Risk Committee Meeting held on 8 March 2024

Resolution

Moved: Cadogan

Seconded: Duncan

That the unconfirmed Minutes of the Audit and Risk Committee Meeting held on 8 March 2024 be noted.

Carried

11 Date of Next Meeting

The date of the next scheduled meeting is 29 May 2024.

12 Resolution to Exclude the Public

Resolution

Moved: Cadogan

Seconded: Alley

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	Plain English Reason
Confidential Minutes of Ordinary Council Meeting	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	Commercial sensitivity Legal professional privilege To enable commercial activities To enable commercial or industrial negotiations
24.5.18 - Plan Change 19 Decision	s48(1)(d) - that a right of appeal lies to any court or tribunal against the decision of the Central Otago District Council in these proceedings	That the right of appeal lies to any Court or Tribunal against the CODC in these proceedings.
24.5.19 - Cromwell Town Centre - Detailed Investigation and Analysis	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)	To enable commercial or industrial negotiations
24.5.20 - Cromwell Town Centre Property Acquisition	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)	To enable commercial or industrial negotiations
24.5.21 - April 2024 Confidential Governance Report	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	Legal professional privilege To enable commercial activities To enable commercial or industrial negotiations To prevent use of the information for improper gain or advantage
24.5.22 - Confidential Minutes of the Vincent Community Board Meeting held on 2 April 2024	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)	To enable commercial or industrial negotiations
24.5.23 - Confidential Minutes of the Cromwell Community Board Meeting held on 2 April 2024	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)	To enable commercial or industrial negotiations
24.5.24 - Confidential Minutes of the Audit and Risk Committee Meeting held on 8 March 2024	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	Legal professional privilege To enable commercial or industrial negotiations To prevent use of the information for improper gain or advantage

Carried

The public were excluded at 12.35 pm and the meeting closed at 3.18 pm.

29 May 2024

24.6.4 Representation Review - Final Proposal

Doc ID: 1495565

Report Author:	Wayne McEnteer, Governance Manager
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

1. Purpose of Report

To consider the final proposal for the Representation Review 2024.

Recommendations

That the Council

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

B. Notes and considers the submissions made to the initial proposal for the Representation Review 2024.

C. Decides which statements should be part of the final proposal for the Representation Review 2024.

D. Agrees to publicly notify the Final Proposal for the Representation Review 2024.

2. Background

A representation review occurs every six years and is used as a tool to assess all facets of representation in the district. Included in the scope of this review are the number of elected members, ward boundaries and ward names.

3. Discussion

The initial consultation was held from 28 March 2024 to 28 April 2024. In it there was a statement of the proposition for each of the constitutional matters required under the Local Electoral Act 2001. A total of fourteen responses were received during this time, nine in support of the proposal, four against part of the proposal and one was unsure. Amongst the four that disagreed, two provided a written submission to support their decision. There were two submitters who indicated that they wished to speak to their submission, however one later decided to withdraw that wish to speak. A summary of the written submissions are below and they can be found in their entirety in appendix 1. Given the political nature of this decision, staff have not provided staff comments alongside each submission.

Written submissions received

There were three written submissions received. One was generally in support of the proposal and addressed other matters that are not in the scope of this review. The two submitters who did not agree have raised the following concerns:

· A desire for the Maniototo Community Board and Maniototo Ward to use the spelling Māniatoto.

· A concern about workload in the reduction of numbers for community boards, especially on external boards.

· A risk of decreased diversity with having less members on a community board.

In addition there were some other issues that fell outside the parameters of this review. In those cases, staff have reached out to those submitters to address those issues.

4. Financial Considerations

There are no financial considerations to be made as a result of this decision as money for this activity comes from existing budgets.

5. Options

Councillors have the decision to either ratify the initial consultation arrangements or amend any part of them as they see fit as part of the final resolution. If there is amendment to the initial proposal, it must be accompanied with a reason for the change.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by allowing input into how the community is represented by their elected members.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The guidelines for the Representation Review are determined by legislation.
Considerations as to sustainability, the environment and climate change impacts	There are no considerations to be made at this stage.
Risks Analysis	The objection process is guided by the Local Government Commission from this stage of the review.
Significance, Consultation and Engagement (internal and external)	Consultation with the community forms part of the Representation Review 2024.

7. Next Steps

The final proposal will be publicly notified for 1 month. If there are any further objections, they will be forwarded on to the Local Government Commission.

8. Attachments

Appendix 1 - Representation Review Report and Submissions for Initial Proposal ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.6 Tūhura - Otago Museum's Draft Annual Plan 2024-25

Doc ID: 1480119

Report Author:	Rebecca Williams, Community Development Advisor
Reviewed and authorised by:	Dylan Rushbrook, Group Manager - Community Vision

1. Purpose of Report

To present the draft Annual Plan 2024-25 from the Tūhura - Otago Museum Trust Board for review and feedback, and to consider their request for a six percent increase on the annual levy charged to Central Otago District Council.

Recommendations

That the Council

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

B. Considers the request to fund a proposed levy increase of six percent in 2024/25 for the Tūhura - Otago Museum, noting this is an additional $2,149, and will increase the payment from $34,381 to $36,530.

C. Notes the existing budget allows for a three percent increase of $1,031 to $35,412

D. Decides how to fund the additional three percent increase in the levy of $1,118, if the six percent increase is accepted.

E. Considers the request for a contribution towards the $200,000 required for stage 2 of the sprinkler upgrade project, of which Central Otago District Council’s contribution could be $1,325.54

2. Background

The Central Otago District Council is levied annually, alongside all other local authorities in the Otago region, to contribute towards the running of the Otago Museum. The levy recognises and acknowledges the regional importance of the Otago Museum. In addition to the opportunity for Central Otago families and schools to visit the Otago Museum in Dunedin, this levy contributes towards 40 hours per annum of technical support which our local museums receive from Otago Museum staff. Central Otago District Council’s contribution for 2023/24 was $34,381[1].

The Otago Museum Trust Board is seeking feedback on the 2024-2025 Draft Annual Plan (appendix 1) from contributing local authorities. No relevant feedback is noted aside from the proposed a levy increase of six percent for 2024/25.

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

Central Otago

2023/24 $34,381

2024/25 $36,530

2025/26 $39,918

3. Discussion

The 2024-2025 Draft Annual Plan provides a financial overview of the Otago Museum, with a breakdown of financial pressures that the museum is currently facing.

The plan notes the unprecedented fiscal pressures being faced by the Museum post COVID-19 and the challenges to their financial sustainability.

The Museum has taken a number of steps to address the challenges it faces, such as proactively restructuring its operations and ending the previously MBIE funded Participatory Science Platform by 2025. The Museum has also been part of an ongoing national campaign to address the funding sustainability of museums nationally.

Despite these efforts, the Museum is forecasting a net loss, after depreciation, of $1,178,725 for the 2024/25 financial year. The Museum notes that a critical goal for the next twelve months is finding a new and more sustainable business model.

In addition to the six percent levy increase, the Museum is also seeking a capital contribution of $200,000 towards the next stage of the capital cost of installing a sprinkler system in key areas of the Museum. Further clarification was sought from Tūhura – Otago Museum about this request, and their response is provided as Appendix 3. It notes that the Dunedin City Council has provided capital grants in the past, however noted that any contribution from the Central Otago District Council would be appreciated.

There is no record of the Central Otago District Council contributing to capital projects at Tūhura – Otago Museum in the past.

Tūhura - Otago Museum continues to support the museums in the Central Otago district and provides quarterly updates of their activities to the Council. Of note was the Tū Tono Regional Museums and Collection project and the production of a report earlier in the year, that provided an overview of the sector in Central Otago. Work continues on the development of the Tū Tono website.

The Museum is also continuing to work with the Kyeburn community to establish an information panel near the site of the Moa footprint discovery in association with the Kyeburn Historical Library Society and Tiaki Maniototo.

4. Financial Considerations

Council has budgeted $35,412 for the 2024/2025 Otago Museum levy, which includes a three percent increase from the 2023/2024 budgeted amount. This is the amount indicated by the Museum in their 2023/2024 Annual Plan.

Schedule Two of the Otago Museum Trust Board Act 1996^{^[2]} provides a formula for apportioning annual contributions from contributing authorities (see appendix 2). The schedule states that if the authorities fail to reach agreement on a change to their collective contribution, the levy increase will be adjusted in accordance with that year’s Consumer Price Index (CPI). The CPI rate as at December 2023 was 4.7 percent[3].

The increase being proposed by Otago Museum is six percent, which is $36,530, an additional $1,118 to what has been budgeted.

If the same distribution equation was applied to the $200,000 capital request, as is applied to the levies, CODC’s contribution would be $1,325.54.

If Council was of a mind to fund the increase requested, and/or the contribution towards the sprinkler upgrade, there are two options to fund it, either through rates funding or by potentially decreasing the community grants budget.

When considering the potential of reducing the grant budget it is worth noting that the annual district wide grants budget is $151,000. In the 2023/24 financial year, $146,000 of this budget has been allocated to organisations such as Sport Otago, the Central Otago Heritage Trust and Central Otago District Arts Trust, amongst others. If Council were to fund those organisations at the same level as they were funded in the 2023/24 year, there would be $5,000 left in the grants budget for other district wide community grants to be considered. In the 2023/24 financial year demand was such that Council fully committed its community grants budget in the first funding round.

5. Options

Option 1 – (Recommended)

That Council approves the requested six percent levy increase which would increase the annual levy to Otago Museum from $34,381 to $36,530, with the additional expenditure to be funded through a rates increase in the Annual Plan, and declines the request to contribute to the sprinkler upgrade project.

Advantages:

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

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

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

· The Museum’s budgetary constraints are acknowledged and Central Otago District Council contributes its share to the required increase.

· Council is compliant with Otago Museum Trust Board Act 1996, Schedule 2^{^[4]} (appendix 2).

Disadvantages:

· An increase in expenditure is required, resulting in a rates increase.

· Central Otago District does not contribute to the sprinkler upgrade project.

Option 2

That Council approves the requested six percent levy increase which would increase the annual levy to Otago Museum from $34,381 to $36,530, and contributes $1,325.54 towards the sprinkler upgrade with the additional expenditure to be funded through a rates increase in the Annual Plan.

Advantages:

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

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

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

· The Museum’s budgetary constraints are acknowledged and Central Otago District Council contributes its share to the required increase.

· Council is compliant with Otago Museum Trust Board Act 1996, Schedule 2^{^[5]} (appendix 2).

· The Council contributes to the sprinkler upgrade project.

Disadvantages:

· A higher increase in expenditure is required, resulting in a larger rates increase.

· Future requests for contributions towards capital projects may be received.

Option 3

That Council approves the requested six percent levy increase and/or a contribution towards the sprinkler project and funds the increase and contribution through a decrease in the district community grants budget.

Advantages:

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

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

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

· The Museum’s budgetary constraints are acknowledged and Central Otago District Council contributes its share to the required increase.

· Council is compliant with Otago Museum Trust Board Act 1996, Schedule 2.

Disadvantages:

· An increase in expenditure is required.

· The district wide grants budget was fully expended in round one of the contestable grants process in the 2024/25 financial year, and any decrease could negatively impact other community projects.

Option 4

That Council approves either no increase or a lesser increase for 2024/25.

Advantages:

· Less impact on budget.

Disadvantages:

· Not meeting the expectations of the Otago Museum

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

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by supporting the Otago Museum as a place of cultural importance in the Otago region.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes – this decision is consistent with Council plans and polices, particularly the Central Otago District Museum Strategy.
Considerations as to sustainability, the environment and climate change impacts	There are no specific implications as a result of this decision, however the future sustainability of Otago Museum will need to be considered in future years.
Risks Analysis	There is a risk that the Otago Museum will continue to require ongoing levy increases.
Significance, Consultation and Engagement (internal and external)	This decision does not meet the threshold of the Significance and Engagement Policy.

7. Next Steps

Any feedback on the draft annual plan needs to be submitted by 31 May 2024. Once agreed, this will be communicated to the Otago Museum.

8. Attachments

Appendix 1 - Tuhura Otago Museum Draft Annual Plan 2024-2025 ⇩

Appendix 2 - Otago Museum Trust Board Act Schedule ⇩

Appendix 3 - Response to Levy Clarification ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.7 Delivery Approach for Water Services Operations

Doc ID: 1502451

Report Author:	Neil Jorgensen, Water Services Manager
Reviewed and authorised by:	Julie Muir, Three Waters Director

1. Purpose of Report

To consider the future direction of delivery for the Water Services Operations in Central Otago.

Recommendations

That the Council

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

B. Agrees to separate out different types of works contained in the Water Services Maintenance and Operations Contract into a mixture of individual contracts and inhouse delivery.

C. Notes that procurement plans will be presented back to council for tendering separate components as required by council’s procurement policy.

D. Agrees to bring the sampling and monitoring work inhouse, noting that a transition plan will be developed over the next two months.

E. Notes that the proposed changes will be structured to enable the scope of work to be amended where necessary to meet the budgets provided in the annual plan and future long-term plans.

2. Background

Council has contracted the delivery of maintenance and operations tasks of its three waters activities through a single traditional contract since 2013. The current contract has been in place since 1 July 2022 and was renegotiated with the incumbent. Council will spend around $3.7m for drinking water, $2.2m for wastewater, and $0.2m for stormwater operations and minor renewals under this contract in 2023/24. The current contract expires on 1 July 2025.

Longer term responsibility for the delivery of three waters has been uncertain and has changed several times over the last four years due to changes in Government policy. Further changes are anticipated, which may result in groups of councils collectively establishing council-controlled organisations (CCO) for delivery in the future. It is expected that if these proceed then the establishment of the CCO will be some years away.

Taumata Arowai were established in 2020 as the drinking water regulator and the Water Services Act was enacted in 2021 to provide Taumata Arowai with the regulatory framework to set requirements and take enforcement action. New compliance rules were also implemented through the Drinking Water Quality Assurance Rules in 2022. This legislative framework has been largely endorsed by all political parties and is requiring a step change in the delivery of drinking water by councils.

There has also been an increased focus on resource consent compliance for wastewater activities and enforcement action being taken for non-compliances. New consents are requiring higher treatment standards and increased environmental monitoring.

The current contract places responsibility for identifying and managing work programmes with the contractor, and the council function is primarily oversight and auditing. The contract anticipates the allocation of risk to the contractor for the adequate management of treatment sites.

As the drinking water supplier, and the consent holder for wastewater activities councils are the organisation that enforcement or legal action is taken against for non-compliances, not the contractor. Consequently, many councils are taking a greater level of management oversight over the delivery of these services.

The cost to deliver work has outpaced inflation resulting in large rate increases.

Due to budget restrictions and programming limitations minor renewals work has been restricted to replacing assets at failure instead of implementing proactive renewals programs. The outcome is a high ratio of reactive work proactive work and results in reduced productivity and higher costs.

This has an impact on the community creating dissatisfaction, confused communications, high costs, rework, the perception of inefficient work practices and repeat customer calls.

The end of the existing contract provides an opportunity to revisit how these services are delivered and identify if there are different options which will improve cost effectiveness and improved performance.

3. Discussion

Council has difficulty measuring contract performance and accessing operational data which is contained within the contractor’s information management systems. Council has limited ability to use maintenance data to develop forward works programmes and renewal planning.

Single Contract Model (status quo)

To reduce future cost increases improved productivity and performance is required, and overhead costs need to be reduced. The contract payment structures need to enable cost savings from continuous improvement to be passed on to ratepayers. To achieve this there needs to be changes to the delivery method. This includes identifying where it may be more cost effective to:

· include components of specialist work within other council contracts for similar activities,

· employ staff directly to undertake some work rather than outsourcing,

· engage specialist contractors directly instead of as subcontractors to a main contractor.

· improve productivity through improved co-ordination of operations and renewals work.

In some cases, there may initially be increased costs for some activities while changes are implemented, but longer-term savings would occur as new practices are embedded.

4. Financial Considerations

The costs to deliver wastewater and water have increased significantly in the 2024/25 Annual Plan to reflect the increased work required to meet the required standards and the increased costs of doing this work.

The budgets for work delivered under the current contract have been increased for 2024/25 to reflect actual costs as follows:

$1.2m on Management Costs

$2.85m on Plant Operations (Water $1.08m, Wastewater $1.78m)

$1.96m on Reticulation (Water $1.2m, Wastewater $530k, Stormwater $227k)

$631k on Sampling and Monitoring (Water $360k, Wastewater $271k)

$135k on Water Meter Reading

The plant operations budgets include mechanical and electrical repairs undertaken by subcontractors. The sampling and monitoring budgets for 2025/26 are lower than the actual cost of $770k in 2023/24 on the assumption that this work will transition in-house and cost less.

It is anticipated that cost savings that can be achieved through the changes proposed would help offset cost increases to meet higher standards. This would result in lower future rates increases than the status quo will deliver.

5. Options

Option 1 – Transition of management and delivery of some tasks via a hybrid option; (recommended)

This option moves towards council undertaking more of the management functions and having increased input into the allocation of resources. It is contingent on council successfully filling the two vacant roles of treatment plant engineer and electrical / telemetry engineer. This option has been assessed as best in relation to resolving the challenges council is facing both now and into the future.

It is proposed that the current water services contract would be unbundled as below:

· Water and wastewater treatment plant operations paid on a cost-plus basis with a budget ceiling set through council budgets and managed by a council employed Treatment Plant Manager.

· Mechanical and electrical contract outsourced and managed in-house.

· Outsourced reticulation contract, with a renewal component, paid on a measure and value basis.

· Sampling and monitoring delivered in-house with an external contract for laboratory services.

· In-house meter reading delivery to be considered if appropriate.

· Treatment plant and other facility grounds maintenance to be delivered via the Parks Maintenance Contract.

Advantages:

· More in-house delivery will give greater flexibility to respond to community needs, compliance matters and Central Government direction.

· Council staff develop the forward work programmes, with their knowledge of the broader context.

· Direct access to specialist service providers such as mechanical, electrical, and telemetry contractors, with their insights being included in decision making and planning.

· Council has greater oversight of high-risk activities such as treatment and sampling.

· There is the ability to divert resources and reduce activities as circumstances require without increasing budgets.

· Council has more responsibility in decision making and forward planning and driving proactive activities to reduce reactive maintenance.

· It is anticipated that there will be longer term savings due to efficiencies over the longer term, compared to the status quo delivery model.

· Smaller contracts could encourage more local interest amongst a greater number of suppliers.

· Sampling and monitoring

o Direct management of risks of not meeting consent and legislated sampling and monitoring requirements.

o Earlier access to information and results.

o Greater flexibility when emergency monitoring is required.

Disadvantages:

· Contracts will need to be carefully scoped and managed.

· Additional experienced inhouse management resources needed to manage multiple contracts.

· Complexities in establishment and implementation.

· Potential for disputes between the different contracts if something goes wrong or if roles are unclear.

· Smaller contracts may reduce interest from the larger companies.

Option 2 – Maintain the status quo via single contract – not recommended.

The status quo model would be retained with all water services delivered under a single outsourced contract where the contractor is primarily responsible for operational decisions and management. There would be the potential to review the current contract and the basis of payment to provide improved clarity and performance.

Advantages:

· Single contract to manage with a single point of contact.

· Familiarity with the status quo and easiest option to implement with model already in place.

· Scale of contract would provide interest for potentially three major Contractors.

· Less council staff input.

· Contract specifications can be adjusted to mitigate some of the risks and current problems.

Disadvantages:

· No changes in delivery model will limit ability to address issues.

· Reduced management, ownership, and transparency than in-house / hybrid options

· Less ability to have work available for smaller operators.

· Decision making lies primarily with contractor, with council having minimal input.

· Council has limited ability to influence operational cost increases.

· There is more risk of cost overruns and reactive works increasing.

· Council will have less control and more organisational risk.

Option 3 – Immediate transition to all works delivered in-house.

Council would bring all water services works in-house, employing management and operational personnel, purchasing plant and equipment. This was the setup used in a lot of councils in the 1990’s.

A full implementation would not be feasible by 1 July 2025 but, Council could transition towards more inhouse delivery as it became advantageous to do so.

Advantages:

· Full control and transparency in delivery of the water services

· Better supports in-house planning and programming.

· Full operation is targeted towards meeting community outcomes.

Disadvantages:

· Council would carry the risk of recruitment and retention for in-house activities.

· Reduced ease of access to technical specialists.

· Could be perception that the work is not value for money.

· Harder to monitor and assess performance.

· High set-up costs.

· A lot of work to setup.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social, cultural, economic and environmental wellbeing of communities, in the present and for the future by Council taking more ownership of decision making relating to operational waters delivery.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes
Considerations as to sustainability, the environment and climate change impacts	The changes proposed will improve direct council ownership and management of activities which contribute to compliance with resource consents. This is expected to reduce the risks of non-compliance.
Risks Analysis	There are risks associated with the unbundling of the Water Services Contract, the key ones are: · Unknowns of new services delivered in-house – reduce this risk through discussion with other councils delivering / managing similar in-house activities e.g. treatment. · Potential reduced market interest in smaller outsourced contracts – risk can be reduced through early market engagement. · Recruitment and In-house technical capability (treatment) – risk reduced through prioritising recruitment process. · In-house management capability and capacity – reduce this risk through a gap analysis of the current team, and prioritising recruitment process. · Management of interface between treatment and reticulation activities – risk can be reduced through appropriate provisions in the contracts and in-house management capability. · Possible implications of removing services provided under the current contract i.e. compensation costs – risk can be reduced by entering into negotiation with the current contractor at an early stage.
Significance, Consultation and Engagement (internal and external)	This decision is not considered significant under Council’s Significance and Engagement Policy. The main factor in this decision is about how a service is delivered, not what is delivered.

7. Next Steps

Contract extended to 30 June 2025	1 July 2024
In-house sampling and monitoring transition plan to detail transition within existing budgets.	To commence immediately with implementation in mid-2024/25
Transfer of facilities ground maintenance to parks maintenance contract.	To commence immediately with variations to respective contracts
Recruitment of in-house treatment plant engineer and electrical / telemetry engineer.	To commence immediately
Prepare procurement plan, including early market engagement. Report to Council for approval of procurement plan as per procurement policy	June - August 2024 28 August to Council
Prepare tender and contract documents	July – Sept 2024
Procurement period	Sept 2024 – March 2025
New contracts start	1 July 2025

The current Water Services Contract is due to expire 30 June 2025 and new arrangements need to be in place by that date.

8. Attachments

Nil

29 May 2024

A brown and white logo

Description automatically generated

24.6.8 Ranfurly Water Incident February 2023 Update

Doc ID: 1493835

Report Author:	Philippa Bain, Water Services Customer and Compliance Team Leader
Reviewed and authorised by:	Julie Muir, Three Waters Director

1. Purpose

To provide an update to the February 2023 Ranfurly Water Incident report present to Council in September 2023 with the insight of managing the water supply through the summer period 2023/2024.

Recommendations

That the report be received.

2. Background

During the first two weeks of February 2023 a water supply event at Ranfurly resulted in a boil water notice being in place for eight days from 8 February to 16 February 2023. This event caused significant disruption and impact to the community as well as considerable financial cost. A report presented to council in September 2023 reviewed the incident and the contributing factors that lead to the event. The report concluded that the contractor’s response and council oversight was inadequate. A set of actions were outlined to ensure improved operation and oversight to avoid a reoccurrence of the event.

This report seeks to provide a review of the actions taken since the event and compare the 2022/2023 and 2023/2024 summer periods.

3. Discussion

The 2023/2024 summer presented an opportunity to implement the learnings from the previous period and address the inconsistencies in response identified after the February 2023 incident.

The New Zealand Drought Index showed the 2022/2023 Central Otago summer to be the driest since 2018, with 32 days within the dry or very dry category. This was followed by a drier than average autumn and winter (Ranfurly Harvest weather station data reviewed against the NIWA climate report) leading into the 2023/2024 summer period.

The accumulation of dry seasons was reflected in the wider catchments, with Falls Dam levels reaching the lowest mark in a quarter of a century and dropping levels in the Eweburn Dam leading to restrictions for both irrigators and the Naseby community.

With conditions showing evidence of a dry season, in the lead up to summer, staff implemented a range of actions to proactively monitor and manage the supply.

Monitoring software

Lutra software – Infrastructure Data (ID), was utilised for detailed analysis of trends in inflow and water demand to inform decision making. The software pulls data from multiple sources including SCADA and weather data into an easily accessible and adaptable format.

A districtwide dashboard was created for all water treatment sites. This provided early indication of stress in the network allowing CODC staff to take a proactive approach to water conservation. This was utilised specifically for Ranfurly to easily view reduction of inflow to the plant, triggering an inspection of the upper intake screen.

Alarms were also able to be incorporated, these gave instant indication to staff on a range of parameters, including lower than normal level in a reservoir or higher than normal outflow, potentially an indication of a main failure or major leak in the network.

Establish clear lines of communication.

The review of the February 2023 event showed a lack of appropriate communication between council staff, Fulton Hogan, and a lack of clarity around access to maintain the East Eweburn weir intake. In the leadup to summer 23/24 this was addressed through the documentation of all stakeholders contact details, regular communication throughout the season and a site meeting with CODC staff, Fulton Hogan, and landowners.

Improved communication across the board allowed for safe unrestricted access to maintain the intake and early communication to elected members prior to water restrictions being put in place.

Monitoring of the supply and regular communication and support from the CODC Parks team allowed for a largely uninterrupted irrigating season despite dry conditions. Irrigation of the show grounds was turned off on 1 March when Ranfurly moved to the red drop restriction level.

Wier maintenance

From late November 2023 fortnightly checks and cleaning of the intake weir were performed by Fulton Hogan. Additional maintenance events were directed by CODC staff through the close monitoring of inflow levels. Figure 1 highlights the reduction in flow at the weir (green) capturing the immediate increase after cleaning of the intake screen on 30 January 2024.The contractor reported that on every visit there was a buildup of didymo that was causing significant reduction in the flow to the treatment plant. Image 1 providing insight into the growth of algae within a 6-day period (between 24 January and 30 January 2024). An inspection of the creek above the weir showed substantial algae growth.

The existing contract requires quarterly inspections of the weir or as required. This increased requirement for clearing will be taken into consideration with the new operations and maintenance contract as well as exploring options to eliminate the requirement for manually clearing the screen.

The contractor can work at any time as directed by CODC, if directed to carry out work that is out of their normal working hours as per the Operations and Maintenance Contract 2022, there will be claim for this work as part of the claim process. There will be further clarification of this process included in the new contract.

The emergency supply was not needed as flows were maintained through the dry season.

29 May 2024

A brown and white logo

Description automatically generated

24.6.9 May Wastewater Compliance Status Update

Doc ID: 1494795

Report Author:	Joyce Thomas, Water Services Monitoring/Compliance Officer
Reviewed and authorised by:	Julie Muir, Three Waters Director

1. Purpose

To consider progress on achieving Otago Regional Council Consent (ORC) compliance for Central Otago District Council (CODC) wastewater activities.

Recommendations

That the report be received.

2. Discussion

Council has seven wastewater treatment plants located at Cromwell, Alexandra, Lake Roxburgh Village, Roxburgh, Omakau, Ranfurly and Naseby.

In January 2023, the Otago Regional Council (the ORC) audited the wastewater treatment plants. The audit identified several maintenance issues and non-compliances with resource consent conditions, resulting in issuing of abatement notices for five of our wastewater treatment plants. The Omakau and Lake Roxburgh Village plants are operating within the consent limits, however, the remaining plants are operating under abatement notices.

This report provides an update on the progress of the works to address these issues.

Site Auditing

The ORC staff audited all seven wastewater treatment plants, accompanied by CODC staff and contractor, in April 2024. All treatment plants were in acceptable condition, with vegetation cleared and managed.

The audits were conducted over two days, during which the ORC staff provided positive verbal feedback multiple times regarding the progress made across all our wastewater sites over the past year. They acknowledged the improvements made in the last 12 months and appeared generally satisfied with the site maintenance, our commitment to consent compliance, and frequency of communication. Staff are awaiting audit reports from the ORC which will provide compliance grading.

Site Specific Status Updates

The detailed work programs for each site are attached and changes since January 2024 are shown in bold.

A high-level summary of each site is provided below.

Alexandra

As of the April 2024 sample, all abatement notices requirements have been met, and the plant continues to show improvement in the performance.

The Alexandra plant is now operating within its consent limits.

Cromwell

The nitrogen levels were compliant with resource consent limits in both March and April 2024, April being the sixth consecutive month with consistently low nitrogen levels since November 2023. Staff believe that this improvement in the nitrogen levels is due to the additional aeration and warm temperatures in the last six months and will continue to monitor any changes in the coming colder months.

The Cromwell plant is currently operating within its consent limits.

Roxburgh

The work to desludge the ponds is progressing, the completion date has been extended to mid-May 2024 due to mechanical issues with the dredge. One of the redundant aerators from Cromwell will be installed after the desludging.

A machine with a brush in the water

Description automatically generated A construction site with a pond and trees

Description automatically generated

Additional monitoring has been scheduled from May 2024 until February 2025, to determine if desludging and improved aerations has helped to address the nitrogen issues.

The desludging of the ponds has highlighted the volume of wipes and rags coming into the treatment plant. The investment into the inlet screen in 2023 will prevent accumulation of these wipes in the ponds in future.

Naseby

The testing to identify the effectiveness of the infiltration beds has been completed. The report has been received and is currently under review. The report will outline next steps and if additional work is required to achieve compliance.

Ranfurly

The performance of the Imhoff tank is improving since the sudden and abnormal discharge of material into the Ranfurly wastewater network in February 2024.

A sludge survey of the pond was completed in April 2024. The pond comprises of 38% sludge.

3. Attachments

Appendix 1 - 2024 May Council Update Attachment.docx ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.11 Community and School Speed Limits

Doc ID: 1504453

Report Author:	Quinton Penniall, Infrastructure Manager
Reviewed and authorised by:	Louise van der Voort, Group Manager - Planning and Infrastructure

1. Purpose of Report

To consider changes to speed limits in Central Otago, including updates made through consultation.

Recommendations

That the Council

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

B. Notes the level of engagement and thanks all submitters for their contribution.

C. Approves the change of St John’s Ranfurly to a Category 2 school.

D. Recommends to the following changes be made to speed limits in Central Otago:

· Accept the proposal as indicated on the map on page 183 of the agenda (Clyde).

· Accept the proposal as indicated on the map on page 185 of the agenda (Clyde North).

· Accept the proposal as indicated on the map on page 178 of the agenda (Alexandra).

· Accept the proposal as indicated on the map on page 199 of the agenda (Lauder).

· On page 196 of the agenda (Patearoa), change the indicated part of McSkimming Road to 50 km and keep Aitkin Road as open road with a minor adjustment to speed at the McSkimming Road end.

· Accept the proposal as indicated on the map on page 193 of the agenda (St Bathans).

· Accept the proposal as indicated on the map on page 194 of the agenda (Cambrians).

· Accept the proposal as indicated on the map on page 195 of the agenda (Oturehua), but leave Hills Creek Road unchanged.

· On page 188 of the agenda (Cromwell North), keep existing road speeds at 50kph, however change Partridge Road to 50kph to align with the rest of the network.

· On page 190 of the agenda (Cromwell South), keep existing speeds for Bannockburn Road and Pearson Road, however accept the other changes as indicated.

· Accept the proposal as indicated on the map on page 192 of the agenda (Pisa Moorings).

· Accept the proposal as indicated on the map on page 191 of the agenda (Bannockburn).

· Accept the proposal as indicated on the map on page 201 of the agenda (Tarras).

· Accept the proposal as indicated on the map on page 179 of the agenda (Dunstan High School and The Terrace School).

· Accept the proposal as indicated on the map on page 182 of the agenda (Alexandra Primary School).

· Accept the proposal as indicated on the map on page 181 of the agenda (St Gerard’s School).

· Accept the proposal as indicated on the map on page 184 of the agenda (Clyde School) with additional static advisory signage at the top of Whitby Street and Sunderland Street.

· On page 200 of the agenda (Poolburn School), to keep the existing speed limit, with a variable speed of 50kph around Poolburn School with additional static advisory signage at either end.

· Accept the proposal as indicated on the map on page 177 of the agenda (Omakau School).

· Accept the proposal as indicated on the map on page 189 of the agenda (Cromwell College and Cromwell Primary School).

· Accept the proposal as indicated on the map on page 186 of the agenda (Roxburgh Area School).

· Accept the proposal as indicated on the map on page 187 of the agenda (Millers Flat School).

· Accept the proposal as indicated on the map on page 197 of the agenda (Maniototo Area School).

· On page 198 of the agenda (St John’s School), to keep the existing speed limit, with a additional flashing advisory signage at either end.

E. Recommends the following roads be considered in future speed management planning consultation:

· Pisa Moorings residential area.

F. Directs staff to provide submissions relating to State Highways to the New Zealand Transport Agency.

G. Approves the 2024 Speed Management plan following updates in-line with Recommendation D.

2. Background

Council approved the Statement of Proposal for the proposed Speed Management Plan for consultation on 29 November 2023 (Resolution 23.11.6).

Consultation was open from 1 December 2023 to 11 February 2024. The ‘Let’s Talk - Kōrero Mai’ platform received a total 1,400 visitors across the consultation period.

The consultation involved two surveys:

· 84 responses were received relating to Survey 1: Extent of school speed zones

· 126 responses were received relating to Survey 2: Community speed limits

Full analysis of the consultation data, and full copies of all written submissions are attached.

During consultation the guidance from Central Government changed with a commitment to halt blanket reductions of speed limits.

Central Otago District Council’s consultation was consistent with the new guidance by focusing on a tailored approach to reviewing speed limits, implementing variable speed limits on roads approaching schools, where possible, rather than permanent speed reductions.

The overall approach is consistent with the guidance from Government and the proposed changes consider economic impacts, travel times, views of road users, concerns of local communities, while keeping safety a priority.

School Speed Zones

The report reflects general support for the extent of the proposed school zones at all surveyed schools: Dunstan High School; The Terrace School; Alexandra Primary; St Gerards School; Clyde School; Poolburn School; Omakau School; Cromwell College; Cromwell Primary School; Roxburgh Area School; Millers Flat School; Maniototo Area School; St John’s School.

Key themes in those supporting a reduction in speed settings were:

· Safety increases.

· Promoting walking and cycling to school from home.

· Requests to extend parts of the school zones.

· Requests for other traffic calming measures to increase safety.

Key themes in those opposing a reduction in speed settings were:

· Insufficient evidence or no need for change.

· Request to ensure school zones were clearly marked and were not used for revenue gathering.

· Request to reduce school zones in particular streets.

Community Speed Limits

Feedback resulted in general support for community speed limits at ten locations:

Location	Support	Oppose	Comments
Clyde	56	32	26
Clyde North	48	37	27
Alexandra	49	28	20
Lauder	52	19	15
St Bathans	31	20	16
Cambrians	30	21	14
Oturehua	31	19	11
Cromwell South	45	30	19
Pisa Moorings	44	26	12
Bannockburn	50	21	11

Results were split by just one or two submissions at three locations. In Tarras-Maori Point Road and Patearoa the submission numbers marginally favoured opposition to the reduction in speed setting.

Location	Support	Oppose	Comments
Cromwell North	39	38	22
Tarras-Maori Point Road	39	40	32
Patearoa	22	24	11

Key themes in those supporting a reduction in speed settings were:

· References to growth or changes in road use.

· Increasing safety, particularly for cyclists, children, and people walking.

· General support.

· And requests for consideration of lower speeds at some areas.

Key themes in those opposing a reduction in speed settings were:

· Insufficient evidence or no need for change

· Acceptance of change in part only.

· Concern with the cost.

· Concern the changes had been proposed by government sources.

Feedback was also received in 44 comments on additional roads or as general commentary.

3. Discussion

Central Otago District Council, as a Road Controlling Authority (RCA), has responsibility for both setting speeds limits on local roads within the district and speed management planning.

Keeping everyone safe is our priority, whether they are walking, cycling, or in a vehicle. Speed management is a key tool we can use to make our roads as safe as possible for all road users.

The Speed Management Plan (SMP) is focussed on setting safer speeds around our schools and meeting the needs and interests of our communities. The SMP will enable Council to deliver this target, through a staged implementation of speed limit changes on local roads and around schools.

Following consultation, a hearing was held on Wednesday 3 April 2024, at which 12 people/ groups spoke to their submissions. A copy of the submitter feedback is attached in Appendix 3 with the hearing report in Appendix 4 and hearing minutes Appendix 5.

A summary of the panel recommendations from the hearing is below. Maps relating to each location is available in Appendix 2.

Community Speed Limits

Location	Panel Recommendation
Clyde	Accept
Clyde North	Accept
Alexandra	Accept
Lauder	Accept
St Bathans	Accept
Cambrians	Accept
Oturehua	Accept, however, leave Hills Creek Road unchanged
Cromwell South	Keep existing speeds for Bannockburn Road and Pearson Road, however, accept the other changes as indicated.
Pisa Moorings	Accept
Bannockburn	Accept
Cromwell North	Keep existing road speeds at 50km/h, however, change Partridge Road to 50km/h to align with the rest of the network.
Tarras-Maori Point Road	Accept
Patearoa	Change the indicated part of McSkimming Road to 50km/h and keep Aitkin Road as open road with a minor adjustment to speed at the McSkimming Road end.

School Speed Zones

Location	Panel Recommendation
Dunstan High School	Accept
The Terrace School	Accept
St Gerards School	Accept – Note requires State Highway speed change
Alexandra Primary	Accept – Note requires State Highway speed change
Clyde School	Accept – Install additional school signage on Sunderland Street.
Poolburn School	Remove proposed 80km/h transition zone. Extend proposed variable school speed signage (50km/h). Install additional static school signage.
Omakau School	Accept
Cromwell College	Accept
Cromwell Primary School	Accept
Roxburgh Area School	Accept – Note requires State Highway speed change
Millers Flat School	Accept
Maniototo Area School	Accept – Note requires State Highway speed change
St John’s School	Re-categorise St John’s to a category 2 school. Install flashing school signage on Ranfurly Patearoa Road and Stuart Road.

Under the Setting of Speed Limits 2022 Rule, all schools are category 1 schools unless a Road Controlling Authority reviews a school on a road under its jurisdiction and assigns it to category 2.

· Category 1 schools require a safe and appropriate speed limit on the roads and/or streets outside the school to be 30km/h (permanent or variable), or where pre-existing 40 km/h speed limits are retained as in interim measure.

· Category 2 schools are those where the RCA deems a safe and appropriate speed limit of 60km/h or less (permanent or variable) is suitable for the roads and/or streets outside the school.

Category one schools are more likely to be in areas with existing 50 km/h speed limits. These areas potentially have high numbers of more vulnerable road users in the vicinity (adult/child pedestrians, cyclists, micro-mobility users) with consequently higher risk. This may be from more housing in the school vicinity, making it more suitable to use active transport modes.

Schools in Category two are more likely to be in areas with less comparative risk to vulnerable road users (for example, where pupils are generally driven or bussed to school, as distances make active transport modes less practical, and pick up/drop off space is provided off-road).

In considering the safe speed for St John’s Ranfurly the panel considered

· Location of main entrance and any other entrances.

· Typical or expected routes for active travel to school.

· The objective of making people feel safe walking or using other active modes to and from school.

Following the hearing staff confirmed with St John’s school principal the typical active travel from school and presence and use of entrances.

In re-categorising St John’s Ranfurly to category 2 the current speed environment of 50km/h aligns with the Setting of Speed Limits rule maximum 60 km/h speed limit. It is proposed electronic flashing ‘school’ signage is installed each side of the school during times when children will be going to or leaving school.

Implementation of Changes

Schools where speed limit reductions are proposed only on local roads - and other permanent speed limit changes in the district - will require the purchase and installation of signs.

Arrangements are in-place to ensure that these signs can be purchased early and support a prioritised implementation of key changes. Any speed reductions approved and certified in this SMP will have appropriate signs installed in the 2024-27 period.

Staff will control timings and management of electronic signs and Variable Speed Limit signs, in conjunction with the schools’ support of appropriate periods for drop-off and pick-up times.

These take into account the expected times when children arrive at and leave school based on the individual school timetable, but also allow for alignment of the times when Variable Speed Limit s are operating between schools which are close together in Alexandra and Cromwell.

Further Consultation Considerations

The panel recommended the following roads be considered in future speed management planning consultation:

• Pisa Moorings residential area.

4. Financial Considerations

All physical changes, including signage and other works, have been accounted for under current budgets for both 2023/24 and 2024/25.

Further consultation can be planned for and budgeted as part of the next iteration of the Speed Management Plan.

5. Options

Option 1 – (Recommended)

Approve the Speed Management Plan.

Advantages:

· Safer speeds will be implemented around schools.

· Updates to speed limit settings would take place and safety risks with current speed settings addressed.

Disadvantages:

· Some members of the community may disagree with the changes.

Option 2

Stop progressing work on the Speed Management Plan and subsequent changes.

Advantages:

· Some members of the community may support this and with no changes to current speed settings.

Disadvantages:

· Safer speed limits will not be implemented around schools.

· Updates to speed limit settings would not take place and safety risks with current speed settings addressed.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by regularly reviewing speed settings, with community input, to ensure they are set correctly for the district.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Consistent with other council plans, including previous speed setting approaches.
Considerations as to sustainability, the environment and climate change impacts	Lower speed limits may encourage more walking and cycling in some areas.
Risks Analysis	No new risks identified.
Significance, Consultation and Engagement (internal and external)	Consultation with community undertaken.

7. Next Steps

Finalise the Speed Management Plan (SMP):

· Implement any required amendments based on the Council recommendation.

Submit the SMP to the New Zealand Transport Agency for Certification:

· Ensure the plan is complete and accurate for submission.

Certification of NSLR Speed Limit Records:

· The Director of Land Transport certifies the speed limit records.

· Council will be notified of the certification of the 2024-2027 SMP.

Enter New Speed Limits into the National Speed Limit Register (NSLR):

· Use the NSLR, an online register with a geospatial map, as the single source of truth for speed limits on New Zealand’s roads.

· Include map records of the extent of all legal speed limits.

· Record the effective date from which new speeds will become enforceable.

· Detail the times for Variable Speed Limits.

Planning and Communication by Council and Roading Physical Works Contractor:

· Plan for the installation of new road signs.

· Communicate the changes to stakeholders and all road users over a 4-week period.

Install New Road Signs:

· Install the new signs and cover them if necessary until the effective date.

Enforcement of New Speed Limits:

· Once the effective date arrives, the new speed limits become enforceable by the New Zealand Police.

· This programme of infrastructure works will form part of Council’s programme over the 2024-27 NLTP period.

8. Attachments

Appendix 1 - Statement of Proposal ⇩

Appendix 2 - Speed Limit Survey Report ⇩

Appendix 3 - Speed Limit Maps ⇩

Appendix 4 - Submitter Feedback with Staff Comments ⇩

Appendix 5 - Speed Limit Hearing - Report ⇩

Appendix 6 - Speed Limit Hearing - Minutes ⇩

Appendix 7 - Speed Limit Panel Recommendation Maps.pdf ⇩

Appendix 8 - Speed Management Plan ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.12 Plan Change 19 - Recommended Decision of the Hearings Panel

Doc ID: 1508710

Report Author:	Ann Rodgers, Principal Policy Planner
Reviewed and authorised by:	Louise van der Voort, Group Manager - Planning and Infrastructure

1. Purpose of Report

To adopt the decision of the Hearings Panel on Plan Change 19.

Recommendations

That the Council

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

B. Adopts the decision on Plan Change 19.

C. Approves the notification of the decision in accordance with clause 11 of the First Schedule to the Resource Management Act 1991.

2. Background

The draft decision (recommendations of the Hearings Panel) was considered at the general meeting of Central Otago District Council on Wednesday 24^th April 2024.

In the week prior to draft decision being considered by Council, a new Environment Court Decision was released in relation to a matter that directly related to evidence received in support of two submissions, (Environment Court Decision No. [2024] NZEnvC 83, dated 18 April 2024).

The Panel brought this matter to the attention of the Council who decided to leave consideration of the decision on PC19 on the table and provide the Panel with the opportunity to consider the impact the Court decision might have on the recommendations in relation to zoning requests on land subject to the National Policy Statement for Highly Productive Land.

Environment Court Decision No. [2024] NZEnvC 83, dated 18 April 2024 considered the following legal issue:

“…can more detailed mapping undertaken since 17 October 2022 using the Land Use Capability (LUC) classification prevail over the identification of land as Land Use Capability Class 1, 2, or 3, as mapped by the New Zealand Land Resource Inventory (NZLRI) and determine for the purposes of cl 3.5(7) of the NPS-HPL whether land is highly productive land (HPL)?”

Judge Steven found that “…the definition of LUC 1, 2 or 3 land in cl 1.3 of the NPS-HPL applies to all references to LUC 1, 2 or 3 land in the NPS-HPL. It does not apply only to the transitional period meaning of HPL in cl 3.5(7). “More detailed mapping” after the commencement date might reveal that the land is or is not LUC 1, 2 or 3 land. However, the purpose of the NPS-HPL and in particular the transitional period, is that any new information concerning LUC classification is to be fed into the Schedule 1 mapping process to be undertaken by regional councils.”

The Panel received legal and planning submissions on behalf of two submitters that considered it was possible to undertake site-specific assessments during the transitional period of the NPS-HPL that would change the classification of land.

The Panel issued Minute 5 on 26^th April 2024 inviting the following parties to provide written comment in relation to the recent Environment Court case, should they choose to do so, to enable them to provide an updated recommendation to the Council:

· Ms Rebecca Wolt, legal counsel on behalf of Mr Stephen Davies (#147) and Lowburn Viticulture Limited (#123)

· Mr Jake Woodward on behalf of Mr Stephen Davies (#147) and Lowburn Viticulture Limited (#123)

· Ms Liz White, s42A report writer

· Ms Jayne Macdonald, legal counsel for Central Otago District Council

3. Discussion

In response Minute 5, comments have been received from the Council reporting officer Ms White and Mr Jake Woodward and legal counsel, Ms Rebecca Wolt (on behalf of submitters #123 and #147)

The Panel has considered the information received, and this consideration and amended recommendation is shown highlighted in yellow in the draft decision in Appendix 1. Provisions as amended by the recommendations of the Hearings Panel are attached to this report in Appendix 2.

4. Financial Considerations

The decision requested has no funding implications. The processing of the plan change has been undertaken utilising the District Plan review budget.

5. Options

Option 1 – (Recommended)

Adopt and notify the decision of the Hearings Panel on Plan Change 19 in accordance with clause 11 of the First Schedule to the Resource Management Act 1991.

Advantages:

· Facilitates the release of new residential zoned land for development in Cromwell, Alexandra, and Clyde; and

· Gives effect to the outcomes of the Cromwell and Vincent Spatial Plans.

Disadvantages:

· No known disadvantages.

Option 2

Decline to adopt and notify the decision of the Hearings Panel on PC 19.

Advantages:

· No known advantages.

Disadvantages:

· Declining would require re-notification of the plan change.

· Loss of development opportunities while the plan change is re-notified.

· Reputational damage as PC 19 gives effect to the outcomes of the Cromwell and Vincent Spatial Plan.

· The Panel has heard and considered significant evidence from many submitters, who gave their time to speak to their submissions and who may feel let down by a decision not being issued.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by and on behalf of communities as Plan Change 19 has been through a publicly notified process in accordance with the provisions of the Resource Management Act 1991. AND/OR This decision promotes the (social/cultural/economic/environmental) wellbeing of communities, in the present and for the future by providing for consolidated urban growth in a manner that can be serviced by critical infrastructure.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Plan Change 19 amends the District Plan in a manner that is consistent with National Planning Standards and that reflects the outcomes of the Cromwell and Vincent Spatial Plans. https://www.codc.govt.nz/publications/policies
Considerations as to sustainability, the environment and climate change impacts	Plan Change 19 has been developed in accordance with the provisions of the Resource Management Act 1991 (RMA). The purpose of the RMA is “….to promote the sustainable management of natural and physical resources.” Section 5 of the RMA defines what is meant by sustainable management as “… managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people and communities to provide for their social, economic, and cultural well-being and for their health and safety while— (a)sustaining the potential of natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs of future generations; and (b)safeguarding the life-supporting capacity of air, water, soil, and ecosystems; and (c)avoiding, remedying, or mitigating any adverse effects of activities on the environment.” https://www.codc.govt.nz/repository/libraries/id:2apsqkk8g1cxbyoqohn0/hierarchy/sitecollectiondocuments/strategies-and-policies/infrastructure/Sustainability Strategy.pdf
Risks Analysis	The provisions of the Resource Management Act stipulate a statutory process to be followed. That process has been followed. There are no identifiable risks associated with the acceptance of the recommendation other than a risk of appeal to the Environment Court.
Significance, Consultation and Engagement (internal and external)	There is a high degree of significance and all legislative process requirements under the provisions of the Resource Management Act 1991 have been followed, including consultation and engagement.

7. Next Steps

Publicly notify the decision on the plan change in accordance with clause 11 of the First Schedule to the Resource Management Act. The decision will be subject to an appeal period of 30 working days under the provisions of the Resource Management Act 1991.

If no appeals are received the plan change will become operative and the provisions of PC 19 will become fully operative.

If an appeal is received on the plan change, the provisions subject to an appeal will not become operative until those appeals have been resolved

8. Attachments

Appendix 1 - PC 19 Decision ⇩

Appendix 2 - PC 19 Provisions ⇩

Appendix 3 - PC 19 Table of Decisions ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.13 Cemeteries Handbook update

Doc ID: 1500807

Report Author:	Gordon Bailey, Parks and Recreation Manager
Reviewed and authorised by:	David Scoones, Group Manager - Community Experience

1. Purpose of Report

To approve amendments to the existing Central Otago District Council Cemeteries Handbook 2020.

Recommendations

That the Council

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

B. Adopts the proposed changes to the Central Otago District Council Cemeteries Handbook 2020.

2. Background

In November 2020 Council approved the Cemeteries Bylaw 2020 which regulates the operation of Council managed cemeteries within the district. The Bylaw references the Cemeteries Handbook which sets out in more detail that the Bylaw rules relating to activities and behaviour in cemeteries.

The Handbook enables Council to amend rules without having to undertake to amend the bylaw itself.

The handbook can more easily be kept up to date instead of having to undertake a full consultative processes each time an amendment is required.

3. Discussion

Since the adoption of the Bylaw and Handbook in 2020, two additional cemeteries have been transferred to Council from Cemetery Trusts. These are.

- Roxburgh Cemetery

- Ettrick Cemetery

There have been a few minor amendments to update the handbook including a clear statement that the spreading of ashes is not permitted within a cemetery, and changes to online documentation.

All changes can be seen as tracked changes in Appendix 1. Central Otago District Council Cemeteries Handbook.

Council does have the option to seek public feedback on the changes to the handbook if it considers the changes are significant enough.

In this case the amendments are minor and operational in nature so seeking feedback is not recommended.

4. Financial Considerations

There are no financial implications in adopting the proposed amendments.

5. Options

Option 1 – (Recommended)

Council adopts the proposed changes to the Central Otago District Council Cemeteries Handbook

Advantages:

· The handbook is updated to reflect the current situation.

Disadvantages:

· No disadvantages are identified.

Option 2

Council does not adopt the proposed changes to the Central Otago District Council Cemeteries Handbook

Advantages:

· No advantages are identified.

Disadvantages:

· The Cemeteries Handbook will contain out of date information.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the (social/cultural/economic/environmental) wellbeing of communities, in the present and for the future by ensuring the districts Cemeteries are operated in a safe and caring manner that is reflective of society expectations.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Central Otago Cemeteries Bylaw 2020.
Considerations as to sustainability, the environment and climate change impacts	Not applicable to this report.
Risks Analysis	There is no risk with adopting the resolution.
Significance, Consultation and Engagement (internal and external)	Not significant under Councils policy.

7. Next Steps

Cemeteries Handbook is updated and added to Councils website.

8. Attachments

Appendix 1 - Cemeteries Handbook ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.14 Elderly Persons Housing Rent Review

Doc ID: 1487569

Report Author:	Janice Remnant, Asset Management Team Leader - Property
Reviewed and authorised by:	Louise van der Voort, Group Manager - Planning and Infrastructure

1. Purpose

To advise of the impact of the rent review for Council’s Elderly Persons Units for 2024/2025 financial year.

Recommendations

That the report be received.

2. Discussion

Council owns and maintains 98 Elderly Persons Housing Units throughout the district which predominantly provides accommodation for the elderly.

In 2018, as part of the Long-term Plan, the Council thought about providing financial assistance to lower rents. However, Council realised that this would require a significant amount of money from ratepayers. If Council had reduced or provided subsidies for rents, it would have also led to a decrease in the additional financial support that tenants receive from the Ministry of Social Development's accommodation supplement. As a result, the Council decided to maintain the current policy of charging market rents for Elderly Persons Units.

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

Market Rent Assessment

For this rent review Quotable Value Limited (QV) reviewed the rent as at mid-2023. These market rentals will be applied to tenancies from 1 August 2024.

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

QV recognized that the units have on-going maintenance work occurring, the units have all been double glazed and all the units are compliant with Health Homes standards. Occupancy rates at the time the QV’s rent assessment was undertaken were steady between 95% - 97% range.

QV indicated that their “discussions with local letting agents indicated that the property rental market is steady with a good level of enquiry for all property types. The rental market has been characterised by low vacancy rates and increasing rental levels. Rental preference is given to more modern accommodation with less demand and higher vacancy rates for older accommodation. We note that employers have also re-entered the market in an effort to secure employee accommodation”.

The recommended market rent increase is $5.00 and $10.00 per week for older, smaller units in Alexandra, Roxburgh and Ranfurly. For the larger and newer units across the district the rent increase is $15.00 per week.

Table 1 below shows the range of rental increases and give a comparison with the last rental review undertaken in April 2023.

Superannuation Rates

An increase to New Zealand Superannuation rates were formally announced on 28 March 2024 and take effect from 1 April 2024.

New Zealand Superannuation Recipients

2023

2024

Net Increase per Week

Single living alone

496.37

519.47

23.10

Couple

763.64

799.18

35.54

These rates have been applied when reviewing the percentage of income spent on rent after the accommodation supplement has been applied.

Community Services Card and Accommodation Supplement

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

Council does not mean or income test tenants but since 1 July 2018 applies the following criteria to prioritise applications:

1. Aged over 65 with a Community Services Card

2. Aged 60 plus with a Community Services Card

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

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

The Community Services Card is means/income tested. To be eligible for a Community Services Card the threshold of additional income received in addition to NZ Superannuation is:

· Person living alone can earn: $5,984.18 gross per annum or $115.89 per week

· Couple can earn: $8,340.36 gross per annum or $160.40 per week

The additional income includes interest or dividends from investments, ACC payments and overseas pensions.

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

The accommodation supplement is asset/income tested and is dependent on income and accommodation costs. For those who do not have a Community Services Card the threshold for eligibility to receive the accommodation supplement varies dependant on income, rent or accommodation costs and location.

Effect of Applying Market Rent on Income

Net income shown in the tables below does not include Winter Energy Payments which are paid from 1 May 2024 and end on 1 October for a period of 22 weeks:

· A singe super annuitant receives $20.46 weekly, a total of $450.12

· A couple receives $31.82 weekly, a total of $70.04

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

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

Market Rent Summary

41 smaller, older units in Alexandra, Roxburgh and Ranfurly will have a $5.00 per week increase while 4 Alexandra units that are older but larger will have a rent increase of $10.00 per week.

The 19 older units in Cromwell will have a rent increase of $10.00 per week.

Across the district 34 newer larger units will have a rent increase of $15.00 per week.

A change to the Residential Tenancy Act in August 2022, limited rent increases to once every 12 months. Because Council reviews the rent charges annually there will be 10 tenancies where rent cannot be increased as the tenancies are less than 12 months old.

Four tenants whose rent could not be adjusted in the 2023 rent review will have a $20.00 per week rent increase to align their rent with the recommended market rent.

Waiting List

The number of people on the waiting list is fluid. When contacted many on the waiting list are not ready to take up a tenancy for various reasons. Some applicants have a location preference for the newer larger units which are in their affordability range and are prepared to wait until they become available.

For some, although they are in a rental situation, they feel that the Council rental units offer better long-term security than in the private market. Others are not looking to the private market and can remain in their current accommodation until a unit becomes available.

When a unit becomes available, staff review those on the waiting list, update their current situation and where applicable prioritise according to the four criteria set out previously to create a prioritised short list. Staff then work through the short list to fill the vacant tenancy.

Financial

Currently as at the end of March 2024 income from rent is unfavourable by 3.13%, This is due to the turnaround time when internal refurbishments are required before vacant units can be tenanted.

The revised rental budget for the current year is $827,060. This was based on 2 low value units not occupied (an occupancy rate of 98%) and 7 tenants who would not have their rent increased on 1 July 2023.

Based on the static occupancy rate of 93% at the time of writing this report and allowing for the 10 tenancies where the new rental rate cannot be applied, the rental income may increase from $827,060 to $843,440. An expected income increase of $16,380.

Implementation

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

Action:

· The first letter of notification for the rent increase will be posted or delivered, to affected tenants no later than 31 May 2024

· A second notification letter will be posted as a reminder in June 2024

· New rents will apply from 1 August 2024

3. Attachments

Nil

29 May 2024

A brown and white logo

Description automatically generated

24.6.15 Cromwell Town Centre

Doc ID: 1510594

Report Author:	Garreth Robinson, Property and Facilities Manager
Reviewed and authorised by:	Louise van der Voort, Group Manager - Planning and Infrastructure

1. Purpose of Report

To provide a comprehensive breakdown of the budget allocated for the detailed investigation and analysis phase of the Cromwell Town Centre Masterplan project, and propose the governance oversight structure for the project.

Recommendations

That the Council

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

B. Agrees to the proposed work programme and breakdown of costs for the Cromwell Town Centre project as presented in Appendix II of the report.

C. Agrees that governance oversight and decisions for the Cromwell Town Centre project are the primary responsibility of the Council, and that all reports to Council on the project include for consideration the views and feedback from the Cromwell Community Board.

2. Background

At the meeting on 24 April 2024 the Council received a report to on the Cromwell Town Centre project, which provided an update and recommendation to progress with further investigation and analysis.

The report attached as Appendix 1.

The Council made the following resolutions.

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

B. Agrees to progress the next stages of detailed investigation and analysis for the Cromwell Town Centre Masterplan including development of a preferred way forward to be consulted on in the 25-34 Long-term Plan.

C. Directs the Chief Executive Officer to bring a detailed work programme and a breakdown of costs to Council for its consideration.

D. Agrees that a paper outlining a plan for governance oversight of the Cromwell Town Centre development comes to the next council meeting.

E. Agrees that communications will be released outlining the council decision and that the report will be released when the information is deemed no longer commercially sensitive.

A comprehensive work program has been prepared in accordance with Resolution C showing the various stages and decision points, together with a breakdown of inputs and costs. The total estimated cost is $495,000.

Work Programme

Cost

Re-Establish Project

1. Identify the inputs required for investment analysis from all project partners.

2. Confirm key deliverables and timing.

3. Identify data requirements and sources for benefits management.

$30,000

Identifying the shortlist for further analysis in order to engage key stakeholders.

1. Financial modelling: build a high-level financial model using cost estimates from Jasmax outputs.

2. Revenue Projections: potential revenue projections based on data from Property workstream.

3. Funding & Financing: Investigate various financing options, including different ownership models.

4. NPV: Determine present value of future costs and cashflows.

5. Net-cost to Ratepayers: understand net-cost to ratepayers including district vs. ward impact.

6. Sensitivity analysis: evaluate the impact of changes in key assumptions.

7. Stakeholder workshop: Present shortlist to key stakeholders.

8. Cost-benefit analysis: Integrate non-cash benefits identified through stakeholder engagement into CBA.

$224,000

Improve shortlist & evidence, carry out community & visitor engagement.

1. Refine Financial Model: with more accurate cost estimates from Jasmax.

2. Refine MCA: with greater certainty around costs, benefits, and rates impact.

3. Update Cost-Benefit Analysis with Feedback: Incorporate feedback from community and visitor engagement sessions to further refine the cost-benefit analysis, including non-cash benefits.

$126,000

Confirm shortlist & detailed analysis for Draft LTP

1. Maintain and Improve Financial Model: Refine the financial model with the latest cost estimates from Jasmax.

2. Enhance CBA: Incorporate new and improved benefits analysis.

3. Evaluate Implementation Options: Assess various implementation options, considering timeframes, revenue projections, rates impact, and generated benefits.

4. Update Rates Impact: Based on the chosen implementation option.

5. Confirm Benefits: Validate the benefits map and expected benefits.

6. Confirm NPV: Finalise the net-present value calculations.

7. Finalise MCA: With the detailed findings to determine the preferred way forward.

$114,600

The full detail of the work programme showing the time frames and decision points is attached as Appendix III.

Resolution D requires a plan for governance oversight of the Cromwell Town Centre project. It is recognised that the project includes both ward and district components. The service centre and library are funded at the district level and decisions are made by Council, whereas the town centre hard landscaping is funded through general property budgets which are ward-based, so decisions would normally be made by the Cromwell Community Board.

Because the significant parts of the project sit with Council, it is appropriate that Council be the decision maker for all parts of the project. The Cromwell Community Board are clearly invested in the Cromwell Town Centre project in its entirety and would normally have responsibility for decisions in the Cromwell Town Centre, so it is essential that the view of the Board is considered in decision making.

It is therefore proposed that prior to any report to Council, the matter be referred to the Community Board for discussion in the informal part of the Board meeting (or at a separate meeting). The Board’s feedback will be clearly documented and incorporated into the report to the Council under a separate heading.

3. Financial Considerations

The costs for analysis described in this report is estimated at $495,000.

$665,000 will be carried forward from 23/34 financial to cover the further investigation work.

4. Options

Option 1 – (Recommended)

Agrees to the proposed work programme and estimated costs for the further investigation and analysis for Cromwell Town Centre project.

Approves that governance oversight and decision making for the Cromwell Town Centre project sits with Council with input from the Cromwell Community Board.

Advantages:

· Continues the work that was signalled as part of the Cromwell Masterplan and aligns with community expectations.

· Provides an appropriate level of analysis to enable informed decision making.

· Provide the appropriate level of governance for a project of this scale.

· Is an efficient decision-making structure.

Disadvantages:

· Will have budget implications and takes staff time.

Option 2

Does not agree to the proposed work programme and estimated costs, and that governance oversight and decision making for the Cromwell Town Centre project sit with Council.

Advantages:

· May have less budget allocation.

· May give the Community Board more autonomy over aspects of the project that are ward funded.

Disadvantages:

· Will not enable the level of analysis to enable robust decision making.

· Will not deliver a simple and efficient governance structure.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the (social/cultural/economic/environmental) wellbeing of communities, as will enable the town centre project to progress.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Eye to the Future Cromwell Masterplan, Economic Development strategy and Destination Management plan.
Considerations as to sustainability, the environment and climate change impacts	Does not impact on sustainability or climate change.
Risks Analysis	There is no significant risk.
Significance, Consultation and Engagement (internal and external)	Progressing the town centre work will be a significant decision and will be consulted on through the 25/34 LTP.

6. Next Steps

1. Progress with benefits mapping, cost benefits analysis and financial analysis.

2. Progress with engagement.

7. Attachments

Appendix 1 - Appendix I - Cromwell Town Centre - Detailed Investigation and Analysis Report ⇩

Appendix 2 - Appendix II - Cromwell Town Centre proposed programme and estimated fees v4.0.pdf ⇩

Appendix 3 - Appendix III - Detailed Work Programme and Costs Report v2.0.pdf ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.17 Membership of the Audit and Risk Committee

Doc ID: 1472570

Report Author:	Wayne McEnteer, Governance Manager
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

1. Purpose of Report

To consider a change in membership of the Audit and Risk Committee.

Recommendations

That the Council

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

B. Agrees that Cr Feinerman will replace Cr Gillespie on the Audit and Risk Committee with the following appointment dates:

· Cr Gillespie will finish his duties on 30 June 2024

· Cr Feinerman will start her duties on 1 July 2024

2. Background

The constitution of the Audit and Risk Committee is defined in the Register of Delegations as being comprised of His Worship the Mayor, three councillors and an independent chair.

3. Discussion

Cr Gillespie has indicated that he wishes to step down from his Audit and Risk Committee duties. Currently, Cr Feinerman is an observer at the Audit and Risk Committee meetings and has agreed to step into the vacant role.

It is proposed Cr Gillespie will officially finish his duties on the Audit and Risk Committee on 30 June 2024 and Cr Feinerman will take up her new role the following day, 1 July 2024.

4. Financial Considerations

There are no considerations to be made as any remuneration for elected members is already covered by existing budgets.

5. Options

Option 1 – (Recommended)

Agree to Cr Feinerman replacing Cr Gillespie on the Audit and Risk Committee

Advantages:

· Cr Feinerman has been attending Audit and Risk Committee meetings as an observer and is already familiar with the meetings function.

Disadvantages:

· None identified.

Option 2

Do not agree to Cr Feinerman replacing Cr Gillespie on the Audit and Risk Committee

Advantages:

· None identified.

Disadvantages:

· It will leave a space free on the Audit and Risk Committee, so it would not be functioning according to its requirements in the Register of Delegations.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by ensuring that there are the correct numbers of elected members providing audit and risk oversight.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, it is consistent with the Register of Delegations.
Considerations as to sustainability, the environment and climate change impacts	There are no considerations to be made regarding sustainability, environmental or climate change impacts.
Risks Analysis	There are no risks associated with the decision.
Significance, Consultation and Engagement (internal and external)	This decision does not trigger the Significance and Engagement Policy.

7. Next Steps

· The Remuneration Committee will be informed to amend their determination accordingly.

· Cr Feinerman will be an official member of the Audit and Risk Committee for their September meeting.

8. Attachments

Nil

29 May 2024

A brown and white logo

Description automatically generated

24.6.18 Register of Delegations - Update to Council Representation on External Committees

Doc ID: 1508942

Report Author:	Wayne McEnteer, Governance Manager
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

1. Purpose of Report

To consider an addition to the Council representation on the external committees list.

Recommendations

That the Council

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

B. Agrees to add Naseby Dark Sky Committee to the Council Representation on External Committees list in the Register of Delegations.

C. Agrees Cr Claridge will act as liaison for the Naseby Dark Sky Committee.

D. Notes that all appointments to external committees will be reviewed following the 2025 election cycle.

E. Adopts the updated Register of Delegations.

2. Background

The Register of Delegations on page 31, covers the external committees that the Council either appoints one of its members to or appoints an external representative.

3. Discussion

The Naseby Dark Sky Committee have approached council to request that a councillor be available to act as a liaison. Cr Claridge has agreed to fill this role. The change to the Register of Delegations to allow this must be agreed by Council. If agreed, Cr Claridge will hold the position initially until the next election. Following the election all external appointments are discussed as part of the inaugural meeting.

4. Financial Considerations

There are no financial considerations to be made as a result of this decision, as Cr Claridge will add this to her existing role.

5. Options

Option 1 – (Recommended)

Agree to the change to the Register of Delegations and appoint Cr Claridge as the external liaison to the Naseby Dark Sky Committee.

Advantages:

· Cr Claridge has agreed to the appointment.

· It will provide a conduit between the group and Council especially with the work being done on Plan Change 22.

Disadvantages:

· None identified.

Option 2

Do not agree to the change to the Register of Delegations nor appoint Cr Claridge as the external liaison to the Naseby Dark Sky Committee.

Advantages:

· None identified.

Disadvantages:

· A potential connection to a group within the community will be lost.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the social and cultural wellbeing of communities, in the present and for the future by allowing the Naseby Dark Sky Committee to have a liaison with Council.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, it is consistent with a desire to support groups in the community.
Considerations as to sustainability, the environment and climate change impacts	There are no implications to this decision in regard to sustainability or climate change.
Risks Analysis	There are no risks associated with this appointment.
Significance, Consultation and Engagement (internal and external)	This does not meet any threshold in the Significance and Engagement Policy.

7. Next Steps

The Register of Delegations will be changed to reflect the decision and the Naseby Dark Sky Committee will be notified.

8. Attachments

Appendix 1 - Register of Delegations - External Committee Update ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.19 International Swaps and Derivatives Association (ISDA) agreement and an overdraft facility

Doc ID: 1797761

Report Author:

Saskia Righarts, Group Manager - Business Support

Susan Finlay, Chief Financial Officer

Reviewed and authorised by:

Peter Kelly, Chief Executive Officer

1. Purpose of Report

To consider agreeing to entering into an International Swaps and Derivatives Association (ISDA) agreement and authorising an overdraft facility.

Recommendations

That the Council

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

B. Authorises the Chief Executive Officer to enter into the International Swaps and Derivatives Association Master Agreement with BNZ, which appears in appendix 1 of the report.

C. Authorises the Chief Executive Officer to enter into an overdraft facility of $5 million dollars.

D. Authorises the Chief Executive Officer to utilise the swap line and overdraft facilities as required to effectively manage treasury functions on behalf of the Council.

2. Background

Council entered into debt for the first time at the end of 2022. Council currently has debt of $25 million dollars, of which is attributed to three waters activity.

How council oversees and manages its treasury functions is set out in the 2021-31 Long-term Plan documentation. Of particular relevance is the Liability Management Policy, which councils are required to adopt under s102(2)(b) and s104 of the Local Government Act 2002. This policy sets out the framework for council’s borrowing, interest rate exposure, liquidity, credit exposure and debt repayment.

At the last Audit and Risk Committee meeting in February 2024, Council’s treasury consultant (Bancorp) presented a report that revealed council is currently non-complaint with it’s fixed rate hedging bands. Below are graphs from this report that demonstrate council’s overall borrowing and where council is non-complaint with policy.

A white paper with black text

Description automatically generated

A white rectangular sign with black text

Description automatically generated

Entering into an ISDA agreement will help staff more effectively manage interest rate risks. The nature of this agreement is described below. Council also has some challenges in managing cashflow (with manual systems in place) and the benefit of entering into an overdraft facility to help manage some risks with this is also described below.

3. Discussion

ISDA agreement

The ISDA master agreement (attached as appendix 1) is a standard financial document used to govern swap rate transactions between two parties (in this case Council and the Bank of New Zealand - BNZ). The BNZ require this agreement prior to entering into any swap agreements on Council’s behalf.

A swap rate is an interest rate that Council will pay in return for the BNZ covering the uncertainty of having to pay a short-term floating rate over time. In essence swap rates protect the Council from interest rate fluctuations over time. This mechanism will enable agreements to be put in place that ensure Council’s 2-4 year fixed rate hedging band becomes compliant with policy.

Short-term borrowing – an overdraft facility

Council currently does not have good mechanisms to manage cashflow and predict current account balances. The current practice relies on activity managers liaising with the finance team on work programmes and estimating when key costs will occur and need to be paid. This is a highly manual process, that is subject to work programme pressures and can be overlooked. There is a risk in the current practice that creditors may not be able to be paid until further debt is drawn down (a process that can take a week or more). This risk is increased in the following financial year with the planned capital programmes in Three Waters and the development of the Cromwell Hall.

Staff are investigating tools to more effectively forecast cashflow, which will be presented as part of the 2025-34 Long-term Plan considerations. In the meantime approval of a $5 million overdraft facility will help reduce the risk of not paying creditors in a timely manner, and the associated reputational risks that would ensue.

4. Financial Considerations

There are no immediate financial implications of entering into the ISDA agreement. However, having this agreement in place will assist Council in managing risk around changing future interest rates.

The cost for the overdraft facility can be accommodated in the current finance budget.

5. Options

Option 1 – (Recommended)

Agree for the Chief Executive Officer to enter into the International Swaps and Derivatives Association Master Agreement with BNZ and an overdraft facility of $5 million.

Advantages:

· Will ensure Council has mechanisms to more effectively manage treasury functions

· Will ensure Council becomes compliant with the interest rate requirements under the Liability Management Policy

· An overdraft facility will assist Council in manging it’s cashflow until a more automated solution is adopted.

Disadvantages:

· There is a cost to enter into an overdraft facility with BNZ being a Line fee of 0.35%. This in s on the approved limit and is charged quarterly in advance. Indicative interest rates for any drawdown are 8.40% - 8.55% charged monthly in arrears.

Option 2

Does not agree for the Chief Executive Officer to enter into the International Swaps and Derivatives Association Master Agreement with BNZ and an overdraft facility of $5 million.

Advantages:

· No additional costs for an overdraft facility will occur.

Disadvantages:

· Council will continue to be non-complaint with the Liability Management Policy

· A risk that cashflow will not be adequately predicted and delays to creditor payments remains.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic wellbeing of communities, in the present and for the future by ensuring Council has the appropriate tools in place to effectively manage treasury functions.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes this decision is consistent with the 2021-31 Long-term Plan, particularly the requirements under the Liability Management Policy.
Considerations as to sustainability, the environment and climate change impacts	No immediate considerations as to sustainability, environment or climate change impacts.
Risks Analysis	There are no risks with agreeing to either the overdraft facility or entering the ISDA agreement.
Significance, Consultation and Engagement (internal and external)	This decision does not reach the threshold for public consultation under the Significance and Engagement Policy.

7. Next Steps

Once approved, the ISDA agreement will be signed by the Chief Executive Officer and an overdraft facility put in place.

8. Attachments

Appendix 1 - ISDA agreement ⇩

29 May 2024

A brown and white logo

Description automatically generated

24.6.20 Financial Report for the Period Ending 31 March 2024

Doc ID: 1510887

Report Author:	Donna McKewen, Systems and Corporate Accountant
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

1. Purpose

To consider the financial performance for the period ending 31 March 2024

Recommendations

That the report be received.

2. Discussion

The presentation of the financials includes two variance analysis reports against both the financial statement and against the activities. This ensures Council can sight the variances against the ledger, and against the activities at a surplus/(deficit) value. The second variance analysis is to demonstrate the overall relationship between the income and expenditure at an activity level.

The third report details the expenditure of the capital works programme across activities. This helps track key capital projects across the year and ensures the progress of these projects remains transparent to Council.

The fourth and fifth reports detail the internal and external loans balances. The internal loans report forecasts the balance as at 30 June 2024, whereas the external loans show the year-to-date current balances due to payments throughout the year.

The sixth report details the external debt balances. External debt is managed using operating cashflows before being uplifted from the Local Government Funding Agency.

This report uses the below key to identify the favourable or unfavourable variances.

Abbreviation key for report

F = Favourable

U = Unfavourable

I. Statement of Financial Performance for the period ending 31 March 2024

2023/24	9 MONTHS ENDING 31 MARCH 2024					2023/24
		YTD	YTD	YTD
Annual Plan		Actual	Revised Budget	Variance		Revised Budget
$000		$000	$000	$000		$000
	Income
41,869	Rates	31,612	31,527	85	˜	41,869
8,078	Govt Grants & Subsidies	6,804	7,586	(782)	˜	9,111
8,100	User Fees & Other	5,793	6,374	(581)	˜	8,100
10,589	Land Sales	1,489	-	1,489	˜	10,589
2,510	Regulatory Fees	1,872	1,882	(10)	˜	2,510
1,717	Development Contributions	3,418	1,288	2,130	˜	1,717
500	Interest & Dividends	526	375	151	˜	500
-	Reserves Contributions	367	-	367	˜	-
-	Profit on Sale of Assets	338	-	338	˜	-
555	Other Capital Contributions	590	467	124	˜	555
73,917	Total Income	52,809	49,498	3,311	˜	74,950

	Expenditure
14,849	Staff	11,493	12,009	516	˜	16,021
732	Members Remuneration	549	549	-	˜	732
10,357	Contracts	8,398	8,603	205	˜	11,471
3,336	Professional Fees	2,897	3,309	412	˜	4,361
17,528	Depreciation	14,216	13,146	(1,070)	˜	17,528
6,774	Costs of Sales	1,624	-	(1,624)	˜	6,774
3,857	Refuse & Recycling Costs	2,957	2,893	(64)	˜	3,857
1,958	Repairs & Maintenance	2,028	2,165	137	˜	2,887
1,436	Electricity & Fuel	975	1,129	154	˜	1,506
-	Loss on Sale of Asset	19	-	(19)	˜	-
714	Grants	1,007	958	(49)	˜	1,137
1,249	Technology Costs	897	948	51	˜	1,251
299	Projects	296	302	6	˜	396
688	Rates Expense	679	679	-	˜	688
655	Insurance	888	888	-	˜	944
1,364	Interest Expense	1,137	986	(151)	˜	1,364
2,092	Other Costs	1,244	1,534	290	˜	2,045
67,888	Total Expenses	51,303	50,098	(1,205)	˜	72,962

6,029	Operating Surplus / (Deficit)	1,506	(600)	2,106	˜	1,988

This table has rounding (+/- 1)

The financials for March 2024 show an overall favourable variance of $2.1M. Budgets have been adjusted to remove Cromwell land sales of $10.5M and the associated cost of sales of $6.7M, as this activity will not happen in this financial year. This has helped to show a clearer picture of the end of financial year results.

Income of $52.8M against the year-to-date budget of $49.4M

Development and reserve contributions are higher than budget, this is due to the timing of subdivisions in Cromwell and Clyde. Grants and subsidies are behind budget due to the timing of the Better Off Funding grants. User fees and charges are ($581k) behind budget, due to the timing of metered water. Land sales are from Stage 3 of Dunstan Park, and the budget was recognised in the previous financial year.

Expenditure of $51.3M against the year-to-date budget of $50M

Expenditure has an unfavourable variance of $1.2M. The main drivers behind this are contracts, staff, professional fees, repairs and maintenance, electricity and fuel and other costs. Offsetting the favourable variance are unfavourable variances in depreciation, cost of sales, refuse and recycling, interest expense and grants. Depreciation is higher than budget, this is due to the asset revaluations in June 2023 which were unable to be included in the 2023/24 Annual Plan. The cost of sales expenses relate to stage 3 of Dunstan Park and are linked to the land sales, as mentioned above this subdivisions budgets were recognised in the previous financial year. Interest expense is higher than budget by $151k, while external loans have remained consistent during the year, the market interest rates continue to remain higher than planned. The community and promotions grant budgets can differ to the year-to-date budgets due to the value issues in each grants round. The district wide community grants applications exhausted the full year budget at the September 2023 Council meeting.

Other costs $290k F - A detailed breakdown for other costs is tabled below.

2023/24		YTD Actual	YTD Revised Budget	YTD Variance		2023/24
Annual Plan	Other Costs breakdown	YTD Actual	YTD Revised Budget	YTD Variance		Revised Budget
$000		$000	$000	$000		$000
530	Administrative Costs	250	383	133	˜	511
675	Office Expenses	483	485	2	˜	647
236	Operating Expenses	114	177	63	˜	236
394	Advertising	177	296	119	˜	394
181	Valuation Services	155	136	(19)	˜	181
76	Retail	65	57	(8)	˜	76
2,092	Total Other Costs	1,244	1,534	290		2,045

This table has rounding (+/- 1)

· There is no significant variance of note to report on at present.

II. Profit and Loss by Activity for the period ending 31 March 2024

This table has rounding (+/- 1)

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

· Infrastructure $2.17M F – Income has a favourable variance of $2.3M. This is due to the timing of development contribution revenue. Cromwell and Clyde development contributions in water, roading and wastewater are higher than budgeted. Expenditure has an unfavourable variance of ($189k). This is due to the under capitalisation of staff costs to projects compared to what has been budgeted.

· Roading $506k F – Income has a favourable variance of $700k. This is being driven by income received for a Muttontown road stopping (Res 21.5.10) and the timing of the Waka Kotahi subsidies $399k. Expenditure has an unfavourable variance of ($194k). This is due the timing of the roading maintenance work programme which results in a fluctuation from the budget.

· Waste Management $50k F – Income has a favourable variance of $413k. This variance is being driven by grants and subsides $464k and is offset by other revenue being under budget ($50k). Other revenue includes fees and charges for the transfer stations, these fluctuate based on transfer station users. Expenditure has a favourable variance of $332k, this is due to the emission trading budget of $224k which the invoice is received in May 2024. The waste management operating expenditure is overall favourable against budget $169k. There have been some delays in receiving invoices for the contract, which has offset an overspend in the landfill charges of ($438k). This overspend relates to the cost of disposal of contaminated green bins at the beginning of the new bin rollout.

· Parks and Recreation ($19k) U – Income has a favourable variance $142k. This is driven by Trust donations in Ranfurly, swim school and pool income. Expenditure has an unfavourable variance by ($161k). This is due to staff costs of ($281k), grants expense relating to Sport NZ grants ($12k), depreciation ($61k). This is offset by the timing of maintenance costs of $123k. Staff costs are higher due to seasonal demand at the swimming pools and the increases to the living wage.

· Corporate Services ($116k) U – Income has an unfavourable variance of ($153k). This is driven by subsidies and grants and is due to the timing of the Better Off Funding for the digitisation of the rateable property files project. Expenditure shows a favourable variance of $37k. This is made up of finance $39k, audit risk and procurement of $171k and information services of ($174k). The information services variance is due to leasing costs of ($89k) and depreciation cost of ($74k). The audit risk and procurement underspend is due to the LTP audit budget, this will be carried forward to 2024/25.

· People and Culture ($883k) U – Income has an unfavourable variance of ($973k). Subsidies and grants are behind budget. Better Off Funding is expected for the RFID Installation at the Libraries and the Alexandra library renovation. Expenditure shows a favourable variance of $90k. This is made up of administration ($78k), human resources ($2k), and is offset by underspends in health and safety $31k, libraries $82k and service centre $56k. The unfavourable variance for administration is due to staff costs of ($55k). An adjustment will be carried out at the end of the financial year to service centres and libraries to correct this, which is due to the combined staffing roles at the Roxburgh service centre and library. Depreciation is also higher than budgeted by ($17k).

· CEO $85k F – Income has a favourable variance of $24k. Expenditure shows a favourable variance of $61k. This variance is being driven by staff costs of ($77k), depreciation ($37k), operating contracts of $53k and professional fees $159k. The staff costs variance created by the executive team restructure is being managed using underspends in professional fees.

· Property $145k F – Income shows a favourable variance of $1.1M. This variance is driven by the stage 3 of Dunstan Park land sales of $1.4M, this is offset by an unfavourable subsidies and grant budget of ($439k). The subsidies and grants variance is due to the timing of the Better Off funding for the Alexandra Community Centre project. The budgets for the Cromwell subdivisions have been forecasted to zero, this includes the land sales and the related cost of sales. Expenditure has an unfavourable variance of ($1M). Driving this variance is cost of sales for stage 3 of Dunstan Park of $1.6M. This is offset by the timing of property maintenance of $401k.

· Governance and Community Engagement $485k F – Income has a favourable variance of $168k. Main drivers is unbudgeted income in Economic Development relating to New Mayors Taskforce for jobs. Expenditure has a favourable variance of $317k. Main drivers include: Tourism $43k, Regional Identity $92k, Economic Development $12k, Community Development $140k, Community Engagement ($11k) and Visitor Information Centres ($29k). Underspends are due to the timing of projects being carried out including the Mayors Taskforce for Jobs.

· Planning (Regulatory) $1.33M F – Income has an unfavourable variance of ($11k). Expenditure has a favourable variance of $1.34M. This is primarily due to professional fees of $658k and staff costs of $595k. Staff costs are due to staff vacancies and professional fees are dependent on need and the district plan requirements.

· Three Waters ($3M) U – Income has an unfavourable variance of ($1.1m). This is predominately due to the timing of metered water sales ($1.14k) and the budget alignment. Expenditure has an unfavourable variance of ($1.8M). This variance relates to external interest on loans funding capital expenditure and depreciation ($1.2M).

III. Capital Expenditure

Year-to-date against the revised budget (including carry forwards and Council resolutions) 39% of the total capital spend against the full year’s revised capital budget has been expensed.

2023/24						2023/24	Progress to date against revised budget
Annual Plan	CAPITAL EXPENDITURE	YTD Actual	YTD Revised Budget	YTD Variance		Revised Budget
$000		$000	$000	$000		$000
2,123	Better Off Funding DIA	1,172	1,558	386	˜	2,691	44%
17,140	Council Property and Facilities	3,051	6,363	3,312	˜	8,484	36%
50	Customer Services and Administration	7	81	73	˜	108	7%
326	Vehicle Fleet	295	647	352	˜	838	35%
201	Information Services	399	677	278	˜	1,232	32%
164	Libraries	109	349	240	˜	466	23%
1,841	Parks and Recreation	529	1,423	894	˜	2,428	22%
58	Planning	-	289	289	˜	385	0%
5,020	Roading	4,936	7,550	2,614	˜	10,067	49%
12,172	Three Waters	7,658	16,260	8,602	˜	21,672	35%
-	Waste Management	1,546	1,287	(259)	˜	1,716	90%

39,094	Grand Total	19,702	36,485	16,783		50,086	39%

This table has rounding (+/- 1)

*Three Waters carry forwards to be presented in a separate report to Council.

· Better Off Funding DIA $386k F – The Alexandra and Cromwell pool liner projects are completed, along with the Clyde Hall upgrades. The Cromwell bike park toilet, Alexandra Community Centre upgrades and the digitisation of rateable property files are progressing. Grant funding from the Department of Internal Affairs is uplifted as milestones are meet.

· Council Property and Facilities $3.3M F – Property and facilities are under budget. Projects include: airports $1M, commercial and other property $1.2M, Council offices $410k, elderly persons housing $186k and public toilets $142k. The Alexandra Aerodrome projects have not started as runway work needs to be carried out in spring. Commercial and other property budgets have been adjusted to reflect the Council’s decision on the Cromwell Town centre, with the project to be revisited for the Long-term Plan. The Cromwell Memorial Hall project has had the tender awarded. Council buildings are behind budget, work although started in May 2024 on the William Fraser building garages asbestos removal and upgrade. Elderly person housing projects are dependent on vacancies and also contractor availability. The public toilet variance relates to the settlement of the Masonic Lodge land purchase that has not been completed.

· Vehicle Fleet $352k F – Vehicle renewals and purchases are under budget. The vehicle renewals programme is being assessed before vehicles are being renewed due to a change in the vehicle policy. The current budgets will be reviewed in depth before the end of the year to ensure that the budgets are required to be carried forward.

· Information Services $278k F – Information service projects are behind budget. Projects include enhanced customer enterprise digital services $59k, enhanced user ICT programme $52k, enterprise information systems programme $36k with the remaining variance in Internet/Network Programme, Server, Storage and Back up.

· Libraries $240k F – At present the library book renewals are aligned with budget, with the variance relating to the delayed Alexandra Library building upgrade project with the execution of the construction contract underway.

· Parks and Recreation $894k F – This is driven by a mixture of the timing of project budgets, work programmes and contractors’ availability to perform the work. The variance is mainly in Parks and Reserves of which $105k relates to Molyneux Park and $121k to Cromwell Reserves.

· Planning $289k F – The dog registration software and the dog pounds projects has not yet started.

· Roading $2.6M F – This is due to the timing of the work programme and budget. Projects include: Carparking renewals $231k, Cornish Point Road seal extension $299k, drainage renewals $55k, Footpath renewals $367k, gravel road renewals ($138k), minor improvements $1.1M, sealed road renewals $104k, structure renewals $566k and traffic services renewals ($36k). Minor improvements includes the Clyde Heritage Precinct project which is expected to fully utilise the budget and will carryforward the budget if needed for the 2024/25 financial year. Budgets relating to Cromwell roundabouts and realignment will be carried forward. Footpath renewals are scheduled to be completed by the end of the year. Cornish point project budget will be released as per res 24.1.5.

· Three Waters $8.6M F – This is predominately due to timing of construction works, these can be ahead of budget or behind due to the work programme. The main drivers include the Cromwell rising main $3.7M, water supply renewals across the district of $1.3M, with the balance in Wastewater renewals $851k and Stormwater renewals of $430k.

· Waste Management ($259k) U – The transfer station reconfiguration and upgrade projects are progressing.

IV. Internal Loans

Forecast closing balance for 30 June 2024 is $4.32M.

OWED BY	Original Loan	1 July 2023	30 June 2024 Forecast
OWED BY	Original Loan	Opening Balance	Closing Balance
Public Toilets	670,000	443,899	418,752
Tarbert St Bldg	25,868	10,019	8,400
Alex Town Centre	571,418	229,971	194,949
Centennial Milkbar	47,821	14,973	11,621
Pioneer Store Naseby	21,589	8,213	6,760
Water	867,000	663,496	634,634
ANZ Bank Seismic Strengthening	180,000	137,750	131,758
Molyneux Pool	650,000	531,150	498,650
Maniototo Hospital	1,873,000	1,670,314	1,615,133
Alexandra Airport	218,000	189,135	180,720
Roxburgh Community Pool Upgrade	250,000	241,384	232,446
Molyneux Pool - Iceinline Roof Upgrade	400,000	400,000	386,215
Total	5,774,695	4,540,304	4,320,038

This table has rounding (+/- 1)

V. External Loans

The total amount of external loans at the beginning of the 2023/24 financial year was $76k. As at 31 March 2024, the outstanding balance was $34k. Council has received $41k in principal payments and $2.4k in interest payments. The Maniototo Curling loan was fully paid in December 2023.

Owed By	Original Loan	1 July 2023 Actual Opening Balance	Principal	Interest	31 March 2024 Actual Closing Balance
Cromwell College	400,000	57,807	29,628	1,959	28,179
Maniototo Curling	160,000	7,456	7,456	108	-
Oturehua Water	46,471	10,771	4,757	345	6,014
	606,471	76,034	41,841	2,412	34,193

This table has rounding (+/- 1)

VI. External Debt

The total of external debt is $25M with a planned external debt of $70.7M at the end of this financial year. External debt is managed using operating cashflows to reduce the impact from interest rates. Debt is currently being uplifted in the three waters area.

Reserve Funds table

· As at 30 June 2023 the Council had an audited closing reserve funds balance of $11.016M. This reflects the whole district’s reserves and factors in the district-wide reserves which are in deficit at ($24.69M). Refer to Appendix 1. This has been updated for forecast and carry-forwards including Three Waters and is now forecast to end this financial year, 30 June 2024 with a deficit of $2.3M.

3. Attachments

Appendix 1 - 2023-24 Reserve Funds Table - Including Carry Forwards ⇩

29 May 2024

A brown and white logo

Description automatically generated

8 Mayor’s Report

24.6.22 Mayor's Report

Doc ID: 1500004

1. Purpose

To consider an update from His Worship the Mayor.

Recommendations

That the Council receives the report.

The past month has been dominated with communicating to the public the reality of our Annual Plan and the rates increases it will bring to people this year. As part of our consultation, we have had live drop-in events around the district which have had approximately 90 people attend. We have also trialled this year doing virtual drop-in sessions as well, which have proven popular and is something we should continue to use in the future, although I would never want to see this format replacing kanohi ki te kanohi discussions. The big benefit of a virtual drop-in however is that it stays up on our you tube channel for people to watch at their leisure.

I mentioned last month a meeting held with Minister Reti, Mayor Glyn and our three local MP’s on a plan we have developed where we would assist in bringing private and public health providers together to work on a plan to meet the health needs in Inland Otago into the future. A proposal has been put to Dr Reti which he will receive alongside Te Whata Ora’s business as usual approach, which does not do enough to I don’t believe bring in the significant cooperation with the burgeoning private health sector in the area that is needed. We will keep fighting our corner, but it is easy to see the outcome we have been working hard to avoid, being a piecemeal approach with disjointed, mostly private, facilities being scattered across the area, an approach that will bring significant inefficiency, massive delay and potentially leave us with a very wealth-based health response in Inland Otago. While the promulgators of the new hospital for Wānaka deserve congratulations, this is exactly the outcome we are trying to avoid.

On the 11^th and 12^th of April, Peter and I attended an LGNZ combined sector meeting followed by a rural and provincial sector meeting. The combined sector meeting started with a very useful talk by Greater Manchester Mayor Andy Burnham. Greater Manchester is the birthplace in many ways of the much-touted concept of city and regional deals. This was a very useful and interesting talk which included, as a point of interest, that there are only five developed countries without a written constitution which includes the UK and NZ. This leads, in part, to a lack of clarity to the role of local government and that role being changed every 6-9 years based on political whim from the Beehive. He also spoke of the crisis in local government in the UK with several councils becoming bankrupt including Birmingham.

We also heard from Minister of Tourism Matt Doocey and we were joined in person by a number of MP’s that evening. The next day we heard from Associate Minister of Agriculture Andrew Hogarth. Events such as these show part of the value of our continued LGNZ membership at a time when some councils are walking away, including small ones such as us. Opportunities to hear from and question national and international leaders in our space simply would not come along if we were on our own and the information that we gain from such discussions is vital to our ability to negotiate the ever-changing and choppy seas we sail upon.

I attended and spoke at very cold ANZAC Day services at Clyde and Lowburn which both enjoyed significant turn-outs, and speaking of chilly events, I attended the farewell to the Cromwell Memorial Hall on a very cold and moody Monday morning.

On Saturday 4 May I got to do something new when I dedicated the new NZ Coastguard boat at Clyde getting to pour champagne (well, Lindaur) over the magnificent new vessel. I was glad not to have to smash the bottle as the tradition dictates as I’ve always thought that a terrible waste. This was a great day for the local coastguard as the new boat, purpose built with recovering people from our lake and riverside bike trails in mind, took a lot of hard work to get on the water. I am sure it will be well used in years to come.

An application for the Falls Dam project alongside a catchment-wide approach to water storage for the greater Manuherekia/Ida Valley area has been put forward to the government process. As part of this, I have been involved in meetings getting to this point and contributed a letter outlining councils’ position on the project, which I table with this report.

Speaking of big projects, I have had a meeting with folk concerned about a proposed solar farm in the Māniatoto. I have been told that it is expected to take 600 workers to build this operation and if it goes ahead, when completed it will be one of the largest solar arrays in the world. There is a resource consent application before council at present for this.

I enjoyed immensely an evening spent star-gazing at a local winery that is looking at making such events part of its tourism offering. Even though I have lived under the clear dark Central skies for three decades, looking up through 15x power binoculars with someone who knew where to look giving guidance was absolutely breath-taking and a timely reminder of the incredible taonga we have here. If I as a local was blown away, imagine what it would be like for someone from a city who rarely sees stars.

I also enjoyed an event of celebration with our Filipino community. There are approximately 250 Filipinos living and working in Central Otago and they are universally regarded as hard working, honest people. It was a pleasure to be able to share in the culture for a couple of hours and thank them for their efforts in our community.

2. Attachments

Appendix 1 - Letter of Support - Falls Dam Fast Tack Application ⇩

Vincent Community Board Minutes

30 April 2024

Unconfirmed

MINUTES OF A mEETING OF THE
Vincent Community Board
HELD IN THE Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Tuesday, 30 April 2024 COMMENCING AT 10.02 am

PRESENT: Cr T Alley, Dr R Browne, Mr J Cromb, Mr T Hammington, Mr D Johns, Cr M McPherson, Cr T Paterson

IN ATTENDANCE: T Cadogan (Mayor), P Kelly (Chief Executive Officer), D Scoones (Group Manager - Community Experience), L van der Voort (Group Manager - Planning and Infrastructure), S Righarts (Group Manager - Business Support), D Rushbrook (Group Manager - Community Vision), A Longman (Head of Destination), A Mason (Media and Marketing Manager), G Bailey, (Parks and Recreation Manager), S Reynolds (Governance Support Officer)

1 Apologies

There were no apologies.

Note: Cr Macpherson declared an interest in item 24.4.2 and item 24.4.3 and left the meeting at 10.03 am. He did not vote on either item and did not return to the meeting.

2 Public Forum

Tim Coughlan – Alexandra Blossom Festival

Mr Coughlan spoke to the Blossom Festival application for a promotions grant before responding to questions.

Neil Gellately – Spirited Women and Goldrush

Mr Gellately spoke to the promotions grant applications for both the Spirited Women event and the proposed re-established Goldrush event, before responding to questions.

Tom Heath – Clyde Classic

Mr Heath spoke to the application for a promotions grant for Clyde Classic and responded to questions. He noted that he has been communicating with local businesses and working through required permissions needed to prepare for this inaugural event.

Ken Churchill – Progress at the Half Mile Reserve

Mr Churchill spoke with regards to the progress at the Half Mile Reserve and responded to questions.

3 Confirmation of Minutes

Committee Resolution

Moved: Johns

Seconded: Browne

That the public minutes of the Vincent Community Board Meeting held on 2 April 2024 be confirmed as a true and correct record.

Carried

Note: Mr Cromb left the meeting at 10.46 am and returned at 10.48 am.

4 Declarations of Interest

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

5 Reports

24.4.2 Alexandra Blossom Festival 2023 Grant Accountability

To consider the Alexandra Blossom Festival Grant Accountability for the 2023 event.

Mr Coughlan noted in his public forum comment that draft accounts submitted in their report have now been confirmed.

Committee Resolution

Moved: Paterson

Seconded: Browne

That the report be received.

Carried

24.4.3 2024/25 Promotions Grant Applications

To consider applications for promotions grants in the 2024/25 financial year.

The timing of the grant application period was discussed, specifically the requirement to approve grants for money that is not yet guaranteed through the Annual Plan or Long-term Plan process. The grants policy will be reviewed prior to the 2025/26 application round.

The board emphasised that successful grants should be seen as a launching pad for establishing events, with groups aiming to become financially self-sustaining after a period.

Committee Resolution

Moved: Browne

Seconded: Cromb

That the Vincent Community Board:

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

B. Allocates $20,000 to Alexandra Blossom Festival Inc for staging, technical electrical cleaning fencing and waste cost for the September 2024 event from the promotions grants budget in the 2024/2025 financial year. Noting that the Vincent Community Board will engage with the Alexandra Blossom Festival committee around financially self-sustaining the event.

C. Declines the application for $4,000 to Dare 2 Sweat Events for marketing and promotion of the Feb 2025 Spirited Women Adventure Race.

D. Allocates $5,000 to Alexandra Musical Society for marketing and promotion of the 2024 Blossom Festival production, from the promotions grants budget in the 2024/2025 financial year, subject to confirmation of their choice of production.

E. Allocates $8,500 to WoolOn Creative and Fashion Society Inc for lighting, sound and catwalk for the WoolOn Creative Fashion Event 2024 from the promotions grants budget in the 2024/2025 financial year.

F. Allocates $1,500 to St Bathans Area Community Association Inc for traffic management, road closure costs, equipment hire and programmes for the St Bathans Fete January 2025 from the promotions grants budget in the 2024/2025 financial year.

G. Allocates $5,000 to Clyde Classic for traffic management, LINZ costs and equipment hire for the Clyde Classic event 2024 from the promotions grants budget in the 2024/2025 financial year. The approved grant is subject to the Clyde Classic organisers establishing the appropriate entity as indicated in their application.

H. Allocates $10,000 to Dare 2 Sweat Events for event promotion, signage, marshals and local staff costs for the Goldrush Multi-sport event 2025 from the promotions grants budget in the 2024/2025 financial year.

I. Grants allocated from the 2024/25 year budgets are subject to the approval and adoption of the 2024 – 2025 Annual Plan.

J. Notes that it is each recipients’ responsibility to obtain and have in place the appropriate consents, plans and licences (including resource consent, health and safety plans etc) as required by legislation, agencies, property owners and/or individuals to undertake the project and engagement with affected communities and businesses.

Carried

6 Mayor’s Report

24.4.4 Mayor's Report

His Worship the Mayor gave an update on his recent activities in the Vincent ward and responded to questions.

· Spoke at U3A organised by Dr Browne. Noted that unfortunately he tested positive for Covid the afternoon prior to this but was able to continue with the presentation via Teams, that he thoroughly enjoyed.

· Attended and spoke at Clyde ANZAC Day Dawn Service.

· Attended a function for the Eden Hore Central Otago collection at Central Stories, which was a marvellous event celebrating this taonga.

· Noted that he had been very busy with the Annual Plan process alongside work progressing the case for an inland Otago hospital as well as attending meetings in relation to the future of the Falls Dam.

Committee Resolution

Moved: Alley

Seconded: Cromb

That the Vincent Community Board receives the report.

Carried

7 Chair's Report

24.4.5 Chair's Report

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

· Attended the BLAST graduation, for 20 students from Dunstan High School. Acknowledged the hard work and dedication required to complete this training, including 6am starts three mornings a week.

· Attended Speed limit hearings, noting it was great to have students from Clyde School in attendance.

· Attended a very informative council workshop on the subject of managing wastewater treatment.

· Attended the Eden Hore event, noting the privilege to have Derek Henderson in the area for this work.

· Attended Anzac Day services noting good attendance at these events.

· Attended the farewell of the Cromwell Memorial Hall.

· Noted that her and Cr Paterson would be holding an informal community drop-in session at Olivers, Friday 3 May 10am – 11am and invited members of the community to attend.

Committee Resolution

Moved: Alley

Seconded: Paterson

That the report be received.

Carried

8 Members' Reports

24.4.6 Members' Reports

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

Dr Browne reported on the following:

· Attended a meeting of members of the Lower Manorburn Recreation Reserve Committee plus two council staff to discuss the future of the committee.

· Attended a meeting of the Creative Writers Circle

· Attended a U3A session addressed by Tim Cadogan via Teams

· Performed with the Central Otago Regional Orchestra in Alexandra and in Queenstown

· Attended a meeting of the Dunstan Friendship Club

· Attended a meeting of the Central Otago REAP board

· Attended the AGM of Keep Alexandra / Clyde Beautiful (with guest speaker David Scoones)

· Hosted visitors from Australia who used the Molyneaux pool on two occasions and spoke very highly of the experience

Mr Johns reported on the following:

· Has been in contact with the Vallance Cottage committee.

· Attended a successful 7-aside rugby tournament in Alexandra.

· Attended the Anzac Day service in Alexandra.

Mr Hammington reported on the following:

· Attended Blossom Festival AGM

· Attended the Anzac Day dawn service in Clyde

Cr Paterson reported on the following:

· Attended an informative session on waste water treatment.

· Sat on the Speed limit committee meeting.

· Attended a ‘Making Good Decisions ’ RMA training programme in Auckland.

· Attended a Central Otago Health Incorporated meeting

· Visited Central Stories, a noted the very good ‘A Place to Stand Exhibition’ showcasing Bannockburn residents.

· Attended the Anzac Day service in Omakau

Mr Cromb reported on the following:

· Expressed disappointment around the governments direction regarding Māori wards, noting that being part of a minority population in a rural town can be challenging, and that he empathised with Māori and regrets the divisive politics around this matter.

Committee Resolution

Moved: Alley

Seconded: Cromb

That the report be received.

Carried

9 Status Reports

24.4.7 April 2024 Governance Report

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

Committee Resolution

Moved: Alley

Seconded: Hammington

That the report be received.

Carried

10 Date of The Next Meeting

The date of the next scheduled meeting is 4 June 2024.

11 Resolution to Exclude the Public

Committee Resolution

Moved: Cromb

Seconded: Browne

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

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Plain English Reason
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
24.4.8 - April 2024 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)	To enable commercial or industrial negotiations

Carried

The public were excluded at 12.01 pm and the meeting closed at 12.02 pm

Cromwell Community Board Minutes

7 May 2024

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 Tuesday, 7 May 2024 COMMENCING AT 2.00 pm

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

IN ATTENDANCE: T Cadogan (Mayor), D Scoones (Acting Chief Executive Officer), L van der Voort (Group Manager - Planning and Infrastructure), D Rushbrook (Group Manager - Community Vision), L Fleck (General Manager – People and Culture), G Robinson (Property and Facilities Manager), G Bailey (Parks and Recreation Manager), R Williams (Community Development Advisor), A Mason (Media and Marketing Manager), C Getson (Aquatics Manager), M Tohill (Communications Officer), S Reynolds (Governance Support Officer)

1 Apologies

Committee Resolution

Moved: Laws

Seconded: Sanford

That an apology from Ms M McConnell be received and an apology for lateness from Cr Gillespie be accepted.

Carried

2 Public Forum

Laurel Brent - Eagles Golf Under 17 Tournament

Ms Brent spoke to the Eagles Golf Under-17 Tournament grant application, emphasising the events potential to draw players and supporters from all over New Zealand to Cromwell. Additionally, she outlined the organisations fundraising initiatives for the Halberg Foundation and their aim to promote the game to young players. Ms Brent then responded to questions.

Carolyn Murray - Cromwell and Districts Promotions Group

Ms Murray spoke to the application for funding towards the groups three major annual events. She made special mention to the application for their Light Up Winter event that had received media scrutiny following new information from Fire Emergency New Zealand of the potential hazards of releasing sky lanterns. Ms Murray emphasised the work that had been undertaken in response to this, putting in controls and compiling a robust health and safety plan to mitigate any potential fire risk. She 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 2 April 2024 be confirmed as a true and correct record.

Carried

4 Declarations of Interest

Members were reminded of their obligations in respect of declaring any interests.

5 Reports

Note: Cr Gillespie joined the meeting at 2.31pm

Note: During item 24.4.2 Mr Scott declared an interest in the promotion grants application. He left the table for discussions and did not vote on the promotions grants.

24.4.2 2023/24 Community and Promotions Grants Applications - 2nd Round

To consider the second round of the community and promotions grant applications for the 2023/24 financial year. It was noted that the staff assessment for the application from Cromwell and Districts Promotions Group for Light Up Winter was completed prior to the extra health and safety work being completed by the group.

Committee Resolution

Moved: Laws

Seconded: Browne

That the Cromwell Community Board:

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

B. Allocated $36,533.20 to Dunstan East Side Trail Trust for the Feasibility Study and Concept Trail Design Plans to be funded from the community grants budget in the 2023/2024 financial year.

Carried

Committee Resolution

Moved: Browne

Seconded: Sanford

That the Cromwell Community Board:

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

D. Allocated $5,000 to Eagles Golfing Society Otago Inc for accommodation and/or catering costs for the Eagles National Under-17 Tournament October 2024 to be funded from the promotions grants budget in the 2023/2024 financial year.

E. Allocated $95,000 to Cromwell and Districts Promotions Group for Light Up Winter, Street Party and Fireworks, Cherry Festival events in the 2024-2025 year from the promotions grants budget in the 2024/2025 financial year.

F. Grants allocated from the 2024/25 year budgets are subject to the approval and adoption of the 2024 – 2025 Annual Plan.

G. Notes that it is the grant recipients’ responsibility to obtain and have in place the appropriate consents, plans and licences (including resource consent, health and safety plans etc) as required by legislation, agencies, property owners and/or individuals to undertake the project and also engagement with affected communities and businesses.

Carried

6 Mayor’s Report

24.4.3 Mayor's Report

His Worship the Mayor gave an update on his recent activities in the Cromwell ward.

· Attended the Anzac Day service at Lowburn.

· Attended the closing of the Cromwell Memorial Hall noting the significant event for the ward.

· Attended the Annual Plan drop in in Cromwell, acknowledging the good discussions at this session.

Committee Resolution

Moved: Laws

Seconded: Browne

That the Cromwell Community Board receives the report.

Carried

7 Chair's Report

24.4.4 Chair's Report

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

· Noted that she was disappointed that she was unable to attend the Cromwell Anzac Day service due to a rescheduled trip to Australia.

· Attended and spoke at the Cromwell Memorial Hall farewell event, noting it was special event.

· Attended the Māori Achievements Collaborative national conference at Waitangi with 200 other delegates.

Committee Resolution

Moved: Browne

Seconded: Scott

That the report be received.

Carried

8 Members' Reports

24.4.5 Members' Reports

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

Cr Laws reported on the following:

· Attended Cromwell Community House meeting, noting a long-time volunteer driver has finished up and that they are actively recruiting new drivers.

· Attended an Old Cromwell meeting.

· Attended the farewell for the Cromwell Memorial Hall, acknowledging the moving ceremony and fitting farewell.

· Gave an update from the April Council meeting.

· Attended the Anzac Day service in Tarras.

· Attended the Cromwell Annual Plan drop, and conceded a disappointing attendance and growing concern around the increased rates amongst the community.

· Attended a Cromwell Community House meeting, noting they are trialling a new food distribution service with the food bank that is a very exciting initiative.

Mr Sanford reported on the following:

· Attended a Queenstown Earthworks Field Day hosted by ORC and International Erosion Control Organisation.

· Attended a Survey and Spatial NZ Central Otago Branch Meeting, noting the presentation from QLDC on RMA Sec 224c processing and a discussion on the recent difficulty of obtaining engineering approvals and 224c in CODC for subdivision projects.

· Completed St Bathan’s Rogaine in the rain.

· Attended Anzac Day at Cromwell Hall.

· Cycled from Lawrence to Waihola and then around Port Chalmers to Portobello.

· Attended the Cromwell Memorial Hall farewell function.

· Attended a Cromwell Business Network, evening event at Arthurs Cinema, with a presentation from Otago Goldfields Heritage Trust on the World Gold panning Championships coming to Cromwell in September 2026. He hoped the new Memorial Hall will be completed to be able to host this event.

· Noted the kids football season has begun.

· Acknowledged concern in the community around the rates increases.

· Requested that public submissions for the partial review of the Neplusultra Street Reserve Management Plan were more widely advertised.

· Noted continued issues liaising with LINZ in work for Connect Cromwell and stated that he will continue to attempting to bring this matter to central governments attention.

Cr Gillespie reported on the following:

· Addressed the Care and Friendship group.

· Noted the commentary on the Annual Plan noted he was disappointed about the misinformation on this.

· Attended the Annual Plan drop in session in Cromwell and the online session with His Worship the Mayor and Cr Alley.

· Attended the Anzac Day ceremony at Lowburn and acknowledged the special community occasion.

· Attended the Cromwell Memorial Hall farewell and recognised the importance of commemorating the buildings history prior to the rebuild.

Cr Browne reported on the following:

· Has been involved in the formation of a Emergency Response Group as a liaison.

· Attended a Mums4Mums kids clothing swap day, a great resource and a great community group.

· Was privileged to lay the wreath for Cromwell Anzac Day ceremony, noting the 600 people in attendance.

· Attended the Cromwell Memorial Hall Farewell.

· Attended the Annual Plan drop in session, voicing that some attendees felt disconnected with elected members and council activities and have questions around social housing and affordability.

Mr Scott reported on the following:

· Attended a Cromwell and Districts Promotions Group meeting.

· Was privileged to lay the wreath at the Bannockburn Anzac Day ceremony, noting good attendance and a moving service.

· Attended the farewell to the Cromwell Memorial Hall.

· Attended a Cromwell Football Club committee meeting.

· Attended a Health Action Wānaka meeting, who are campaigning to get a hospital built in Cromwell.

Committee Resolution

Moved: Browne

Seconded: Laws

That the report be received.

Carried

Note: Mr Scott left the meeting at 3.03 pm and returned at 3.06 pm.

9 Status Reports

24.4.6 May 2024 Governance Report

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

A verbal update was given on the planting scheme for the Cromwell Memorial Hall, as attached.

Committee Resolution

Moved: Laws

Seconded: Sanford

That the report be received.

Carried

Attachments

1 20240507 CCB Cromwell Memorial Hall Update.pdf

10 Date of The Next Meeting

The date of the next scheduled meeting is 4 June 2024.

11 Resolution to Exclude the Public

Committee Resolution

Moved: Browne

Seconded: Laws

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

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Plain English Reason
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
24.4.7 - May 2024 Confidential Governance Report	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information	Commercial sensitivity

Carried

The public were excluded at 3.19 pm and the meeting closed at 4.37 pm.

Maniototo Community Board Minutes

9 May 2024

MINUTES OF A meeting of the
Maniototo Community Board
HELD IN THE Ranfurly Service Centre, 15 Pery Street, Ranfurly
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Thursday, 9 May 2024 commencing AT 2.00 pm

PRESENT: Mr R Hazlett (Chair), Mr M Harris, Cr S Duncan, Mr D Helm, Ms R McAuley

IN ATTENDANCE: T Cadogan (Mayor), D Scoones (Acting Chief Executive Officer), L van der Voort (Group Manager - Planning and Infrastructure), Q Penniall (Infrastructure Manager), J Remnant (Property Facilities), S Reynolds (Governance Support Officer)

1 ApologiES

There were no apologies.

2 Condolences

The chair referred to the deaths of June Spooner, Audrey Johnston, Jennifer Smith and Dawn Becker. Members stood for a moment’s silence as a mark of respect.

3 Public Forum

Meg Garner and Elly Campbell – Naseby Vision

Ms Garner and Ms Campbell spoke to the promotion grant application from Naseby Vision to fund a new information sign that would serve to inform visitors of sites of interest and activities in the village. They have observed that many visitors use the public toilets and don’t take the time to explore the tourist attractions any further, but their hope is that the sign would encourage visitors to stay longer in the village. They noted they are keen to work with the Information Centre and the community to complete this project. Ms Garner and Ms Campbell then responded to questions.

4 Confirmation of Minutes

Committee Resolution

Moved: Duncan

Seconded: Harris

That the public minutes of the Maniototo Community Board Meeting held on 4 April 2024 be confirmed as a true and correct record.

Carried

5 Declarations of Interest

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

6 Reports

24.4.2 2023/24 Community and Promotions Grants Applications - 2nd Round

To consider the second round of the community and promotions grant applications for the 2023/24 financial year.

It was noted that the information around sizing and location of the sign will be subject to change and that any consenting required would be applied for by the group.

Committee Resolution

Moved: Duncan

Seconded: Helm

That the Maniototo Community Board:

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

B. Allocated $2,500 to Naseby Vision for a Naseby Town sign from the promotions grants budget in the 2023/2024 financial year. The grant is subject to meeting consent requirements and Council staff approval of the location, size and design.

Carried

7 Mayor’s Report

24.4.3 Mayor's Report

His Worship the Mayor gave an update on his recent activities in the ward.

· Noted that he was an apology for the last meeting as he was in Queenstown attending a meeting with the Minister of Local Government

· Attended a Ranfurly Business Breakfast, and had been pleased to note increasing attendance. As the format moves to a late afternoon meeting it may prove more challenging to make but he still intends to attend when possible.

· In his role as LGNZ National Council representative joined LGNZ President Sam Broughton and their Chief Executive Susan Freeman-Greene and discussed issues for Council and how LGNZ can support elected members

· Attended the LGNZ National Council meeting as part of which it was decided to make Akona, the LGNZ training and education tool, part of membership fees for 2024-25.

· Alongside Peter Kelly and Vincent Councillor Tamah Alley, I attended the Zone 5 and 6 (South Island) Conference in Christchurch. Gave congratulations to Cr Alley for being elected the Chair of Zone 6 Guest speakers included Min. Chris Bishop, Min Mark Patterson, Ngai Tahu kaiwhakahaere [chairman] Justin Tipa and Min Local Government Simeon Brown who joined us for dinner amongst others.

· Council has been fortunate to get funding through the Mayor’s Taskforce for Jobs programme which is a nationwide partnership between Local Government New Zealand (LGNZ) and the Ministry of Social Development (MSD). He requested anyone who The programme focuses on getting young people into sustainable employment while promoting community-led solutions for youth employment, education and training.

· Attended and spoke at and enjoyed the Maniototo Trust 50^th Anniversary long lunch a

· Noted the huge focus recently has been the Annual Plan and as part of that, I attended a thoroughly enjoyable drop in here in the Ranfurly Chambers discussing the reasons behind the huge rates rise and what, if anything, can be done about it now and into the future, alongside a broad discussions on all things Central Otago.

· Noted that CODC had joined an appeal with QLDC against a recent ORC decision relating to essentially banning future discharge of treated wastewater to water bodies.

Committee Resolution

Moved: Duncan

Seconded: Harris

That the Maniototo Community Board receives the report.

Carried

8 Chair's Report

24.4.4 Chair's Report

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

· Noted he had caught up with the contractors doing the waste water works.

· Had a walk around some streets in Ranfurly looking at some issues with street lighting and kerbing.

· Attended the Anzac Day service in Ranfurly.

· Attended the Annual Plan drop in at Ranfurly noting community concern around the increased rates.

· Had a discussion with the forest manager about the removal of trees around the adventure park.

· Noted that the solar farm application is likely to be a publicly notified consent and that he had circulated some information about this with the board.

· Attended the Maniototo Community Trust lunch.

· Had been in phone discussions with dog control about dogs roaming around the town and requests that any members of the community who sees dogs not being controlled video or photograph them.

Committee Resolution

Moved: Duncan

Seconded: Harris

That the report be received.

Carried

9 Members' Reports

24.4.5 Members' Reports

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

Mr Harris reported on the following:

· Attended the Trust fund lunch

· Noted the issues with aggressive dogs in the town.

Ms McAuley reported on the following:

· Noted she was pleased to see the fire dangers has now reduced and the Naseby Forest is open for bikers and walkers once again.

· Acknowledged that the road works on the main street are now completed and expressed that this work had caused issues for access to the shop for some elderly members of the community.

· Noted that the ramp at the stadium is dangerous and could this please be accessed.

· Has received complaints about the stormwater run-off on Swimming Dam Road, can this be addressed as the road is narrow and it is well used.

· Gave an update on Maniototo Turf update, noting that they are still waiting to hear back from the Ministry of Education on the proceeds of the house sales. Noted that she would suggest that the group came to the next meeting to give an update.

Mr Helm reported on the following:

· Attended the Ranfurly and Patearoa Anzac Day services.

Cr Duncan reported on the following:

· Attended the Annual Plan drop in session in Ranfurly noting it was good to meet some more people in the community.

· Attended the Maniototo Trust lunch

· Attended the Ranfurly, Patearoa and Oturehua Anzac Day services

· Noted that the new fire truck will be arriving very soon, and they were fortunate to a grant from Otago Community Trust.

· Gave an update on the recent Council meeting.

Committee Resolution

Moved: Helm

Seconded: McAuley

That the report be received.

Carried

10 Status Reports

24.4.6 April 2024 Governance Report

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

Committee Resolution

Moved: Duncan

Seconded: Harris

That the report be received.

Carried

11 Date of the Next Meeting

The date of the next scheduled meeting is Wednesday 5 June 2024.

The meeting closed at 2.46 pm

...................................................

CHAIR / /

Council Meeting Agenda

29 May 2024

13 Resolution to Exclude the Public

Recommendations

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

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Plain English Reason
Confidential Minutes of Ordinary Council Meeting	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	Legal professional privilege To enable commercial activities To enable commercial or industrial negotiations To prevent use of the information for improper gain or advantage
24.6.28 - Proposal to Freehold Ground Lease	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)	To enable commercial or industrial negotiations
24.6.29 - Electricity Contract Award	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	Commercial sensitivity To enable commercial or industrial negotiations
24.6.30 - May 2024 Confidential Governance Report	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	Legal professional privilege To enable commercial activities To enable commercial or industrial negotiations To prevent use of the information for improper gain or advantage
24.6.31 - Confidential Minutes of the Vincent Community Board Meeting held on 30 April 2024	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)	To enable commercial or industrial negotiations
24.6.32 - Confidential Minutes of the Cromwell Community Board Meeting held on 7 May 2024	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information	Commercial sensitivity

[1] As invoiced by the Otago Museum for the 2023/24 financial year. Please note this figure varies slightly from the amount quoted by Otago Museum in the attached Annual Plan ($35,023)


AGENDA Ordinary Council Meeting Wednesday, 29 May 2024
Date:	Wednesday, 29 May 2024
Time:	10.30 am
Location:	Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra (A link to the live stream will be available on the Central Otago District Council's website.)
Peter Kelly Chief Executive Officer

Report Author:	Patrick Keenan, Capital Projects Programme Manager
Reviewed and authorised by:	Julie Muir, Three Waters Director

Report Author:	Nathan McLeod, Chief Information Officer
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

Report Author:	Sarah Reynolds, Governance Support Officer
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support