Agenda of Council meeting - Wednesday, 30 October 2024

Council Meeting Agenda

30 October 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 Tuesday, 24 September 2024 COMMENCING AT 6.00 pm

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

IN ATTENDANCE: P Kelly (Chief Executive Officer), S Righarts (Group Manager - Business Support) (via Microsoft Teams), W McEnteer (Governance Manager)

1 Karakia

Cr Alley gave a karakia to begin the meeting.

2 Apologies

Apology

Resolution

Moved: Cadogan

Seconded: Alley

That the apology for lateness received from Cr McPherson be accepted.

Carried

Note: Cr Browne joined the meeting at 6.02 pm.

3 Submitters That Wish to be Heard

24.11.1 Submitters that wish to be Heard

Individual submitters will speak to their districtisation submission.

Alister Stuart

Mr Stuart spoke in support of his submission noting that districtisation would leave Council with too much control. He was also concerned about what it would mean for Cromwell endowment land. He advocated for a return to the Word of God in decision making. He then responded to questions.

Gurpreet Singh

Mr Singh spoke in support of his submission and noted the conditions of footpaths in the district. He noted the absence of mobility ramps on a number of footpaths which disadvantaged a number of the community. He advocated for a hierarchy system for assessing connectivity issues. He then responded to questions.

Kristy Rusher

Ms Rusher spoke in support of her submission and noted that the Gazette notice from the formation of the Central Otago District Council in 1989 was an agreement between the Crown and Council and that the Cromwell Community Board was not involved in that. She then responded to questions.

James Dicey

Mr Dicey spoke in support of his submission noting that he believed that this was an attempt to strip Cromwell of its assets and that details of the Long-term Plan were unknown at this time. He was also concerned about the delegations discussion and an attempt to strip the community boards of their powers. He then responded to questions.

Tom Pinckney

Mr Pinckney spoke in support of his submission noting that Cromwell is the fastest growing ward and will require investment in infrastructure to facilitate that growth. He then responded to questions.

Cam Withington

Mr Withington spoke in support of his submission noting that he did not think Alexandra should pay for Cromwell’s hall. He noted that each ward was different and had different need. He then responded to questions.

Note: The meeting adjourned at 6.44 pm

Note: Cr Duncan left the meeting at 6.44 pm and did not return before the meeting adjourned.

Note: The meeting resumed at 6.50 pm.

Trevor Goudie

Mr Goudie spoke in support of his submission and noted that costs given in the consultation document and recent discussions did not match. He then responded to questions.

Jane Lancaster, Central Otago Museum Trust

Ms Lancaster gave an overview of the museum trust in its current form and noted that there was a large sense of ownership among volunteers in the museum sector and that it would be a shame if that was lost. She then responded to questions.

George Collier

Mr Collier spoke in support of this submission. He noted that councillors represented the district, not just their ward. He also noted the current challenges in the three waters space. He then responded to questions.

Trevor Tinworth

Mr Tinworth spoke in support of his submission noting that he believed assets would be stripped from Cromwell. He then responded to questions.

Stephen Carruth

Mr Carruth spoke in support of his submission and noted that he believed that districtisation was driven by the control of assets. He believed that council was doing things beyond its core services and that it should also look at its workforce to find efficiencies. He then responded to questions.

Motion to Adjourn

Resolution

Moved: Cadogan

Seconded: Gillespie

That the meeting be adjourned until 10.30am on Wednesday 25 September 2024.

Carried

Note: The meeting was adjourned at 7.46 pm.

Note: The meeting resumed on Wednesday 25 September 2024 at 10.30 am in Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra

PRESENT: His Worship the Mayor T Cadogan (Chairperson), Cr N Gillespie, Cr T Alley, Cr S Browne, Cr L Claridge, 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 Fleck (General Manager - People and Culture), J Muir (Three Waters Director) (via Microsoft Teams), S Righarts (Group Manager - Business Support), D Rushbrook (Group Manager - Community Vision), D Scoones (Group Manager - Community Experience), L van der Voort (Group Manager - Planning and Infrastructure), G Robinson (Property and Facilities Manager), L Webster (Planning and Regulatory Services Manager), A Crosbie (Senior Policy Advisor), A Longman (Head of Destination), Q Penniall (Infrastructure Manager), P Bain (Water Services Customer and Compliance Team Leader), J Thomas (Water Services Sampling & Monitoring Team Leader), D Kirkman (Senior Land Development Engineer), M Hardman (Roading Asset Manager), W McEnteer (Governance Manager)

4 Public Forum

Peter Dymock – (Paterson Pitts) and Matt Tipa and Sean Aldrich (applicants) – Road Stopping in Ophir

Mr Dymock, Mr Tipa and Mr Aldrich spoke to the application made for a road stopping in Ophir. They noted that the issue was a historical one and based on that costs should be waived for the land. It was noted by Mr Dymock that the cost of the land to purchase would make fixing the boundary issue untenable. They then responded to questions.

5 Confirmation of Minutes

Resolution

Moved: Alley

Seconded: Claridge

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

Carried

6 Declarations of Interest

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

Note: With the permission of the meeting, item 24.11.4 was moved forward.

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

24.11.4 Road Stopping - Swindon Street, Ophir

To consider a proposal to stop and sell part of Swindon Street.

After discussion it was agreed that Council could not make a decision on the road stopping until the land valuation was known, to understand the cost that the applicants may incur in the stopping.

Resolution

Moved: Cadogan

Seconded: Paterson

That the item be left to lie on the table until a valuation can be obtained for the land at councils cost.

Carried

Note: His Worship the Mayor resumed the Chair.

7 Community Board Chair Update

24.11.3 Community Board Chair Update

Anna Harrison, Chair of the Cromwell Community Board, Norman Dalley, Chair of the Teviot Valley Community Board and Jayden Cromb, Deputy Chair of the Vincent Community Board joined the meeting to discuss item 24.11.5.

Ms Harrison discussed the districtisation and the delegations discussion that will follow it. She noted that the Board’s position was that they wanted to ensure that their voice was equitable and part of the decision making process. She also stressed that the lines of communication must stay open to ensure that their voice is heard.

Mr Dalley noted his agreement with the Cromwell Community Board’s position, but also noted should districtisation go ahead their preference would be for option two. He also noted that the Board was concerned with allowing growth and capital investment in the Valley and that the ward needed growth.

Note: Cr McKinlay left the meeting at 11.35 am and returned at 11.39 am.

Mr Cromb noted that while the Vincent Community Board supported districtisation there was concern that the community board voice should still be heard in decision making. He also noted that there was some distrust of council among younger members of the community and that a more formal structure of a youth council may help bridge that gap.

8 Reports

Note: Cr McPherson left the meeting at 11.50 am and returned at 11.52 am.

Note: Cr Gillespie left the meeting at 11.51 am and returned at 11.54 am.

Note: Cr Duncan left the meeting at 11.54 am and returned at 11.55 am.

24.11.5 One District: Central Otago Consultation results

To consider the results of the consultation and decide whether or not to further districtise council services.

Each councillor was invited to speak on their position regarding districtisation. Following the roundtable discussion, preferences for options one or two were explored further.

Resolution

Moved: Cadogan

Seconded: Gillespie

That the Council

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

B. Notes and considers the submissions made on the districtisation proposal.

Carried

After discussion it was agreed that option two of the consultation was the preference of the majority of councillors.

In addition, Council agreed that workshops with itself and each of the community boards should occur before the delegations report returned for a formal decision.

Resolution

Moved: Cadogan

Seconded: Gillespie

C. Agrees to the district-wide rating of all council activities including museums, excluding current community board grants, but including a rating adjustment for the Teviot Valley ward to offset pool costs.

D. Notes that prior to the December Council meeting, a workshop on the delegations with Council and Community Boards will occur.

Carried 9/3 on a show of hands

24.11.6 Mayor's Report

His Worship the Mayor gave an update on his activities since the last meeting.

Resolution

Moved: Cadogan

Seconded: Alley

That the Council receives the report.

Carried

Note: The meeting adjourned at 1.22 pm.

Note: His Worship the Mayor and Cr McPherson left the meeting at 1.22 pm and did not return.

Note: The meeting resumed at 1.52 pm.

Note: Cr Gillespie assumed the Chair.

Note: With the permission of the meeting, items 24.11.9 and 24.11.10 were moved forward.

24.11.9 Private Plan Change 21 (Fulton Hogan - Parkburn) Decision RATIFICATION

To consider the recommendation by an appointed independent hearings panel to approve proposed private Plan Change 21 to the Central Otago District Plan.

Resolution

Moved: Browne

Seconded: Laws

That the Council

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

B. Accepts the recommendation pursuant to clause 29 (4) (a) of the First Schedule of the Resource Management Act 1991 to approve Plan Change 21 to the Central Otago District Plan.

C. Serve a copy of its decision on the person who made the request and every person who made a submission/further submission along with a statement of the time within which an appeal may be lodged.

D. Publicly notify that it has approved the plan change.

Carried

24.11.10 Plan Change 20 (Heritage) Hearings Panel Decision Ratification

To adopt the decision of the Hearings Panel on Plan Change 20.

Resolution

Moved: Duncan

Seconded: Alley

That the Council

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

B. Adopts the decision on Plan Change 20.

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

D. That the Heritage Guidelines be included in Councils Policy Register.

E. That Councils Roading Policies be amended to include a requirement to seek heritage expertise input at the design phase of any upgrades undertaken in a Heritage Precinct that involve street furniture, paving or lighting upgrades.

Carried

24.11.7 Psychoactive Substances Policy Renewal

To consider the draft Psychoactive Substances Policy for consultation under the Psychoactive Substances Act 2013.

Resolution

Moved: Paterson

Seconded: Browne

That the Council

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

B. Approves the draft Psychoactive Substances Policy for consultation.

Carried

24.11.8 Alcohol Restrictions in Public Places Bylaw

To consider approving the draft Alcohol Restrictions in Public Places Bylaw and Statement of Proposal for public consultation.

After discussion it was agreed to leave the item to lie on the table in order for staff to investigate adding the Teviot Valley into the bylaw.

Resolution

Moved: Feinerman

Seconded: Alley

That the Council

Leave to lie on the table in order for staff to investigate adding the Teviot Valley to the bylaw.

Carried

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

Note: Mark Frood and Chris Roberts from the Destination Advisory Board joined the meeting for item 24.11.11.

24.11.11 Destination Management Update

To consider an update on destination management.

Resolution

Moved: Paterson

Seconded: Duncan

That the report be received.

Carried

Note: Crs Duncan and Feinerman declared an interest in item 24.11.12. They left the table and did not participate in the discussion or vote on the item.

24.11.12 Visitor Levy and Short Term accommodation

To consider Council’s position on localised visitors levies and give direction to staff whether they should progress a workstream on the rating of short-term rentals in preparation for consultation through the long-term plan.

Resolution

Moved: McPherson

Seconded: Paterson

That the Council

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

B. Adopts a formal supportive position of Queenstown Lakes District Council’s proposal to introduce a localised visitor levy.

C. Adopts a supportive position on the investigation of a localised visitor levy within Central Otago in the absence of a national visitor levy.

D. Instructs staff to provide a cost/benefit analysis on the introduction of a commercial or targeted rate on short-term rental properties within Central Otago.

Carried

Attachments

1 Visitor Levy Presentation

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

24.11.13 Procurement Panels - 3 Waters Strategic Planning, Technical Design and Operational Support Services

To consider implementing a Professional Services Panel to support three waters strategic planning, technical design and operational support services.

Resolution

Moved: Laws

Seconded: Feinerman

That the Council

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

B. Approves procurement of a panel for strategic planning, technical design and operational support services for three waters activities.

C. Approves a three-year term for the panel for strategic planning, technical design and operational support services for three waters activities.

Carried

24.11.14 Procurement Panels: Professional Services

To consider implementation of a Professional Services Panel to support 3-Waters capital programme delivery.

Resolution

Moved: Alley

Seconded: Feinerman

That the Council

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

B. Approves procurement of a panel for professional services panel for legal, planning and survey expertise for three waters activities.

C. Approves a three-year term for the professional services panel for legal, planning and survey expertise for three waters activities.

Carried

24.11.15 Status Reports for Cromwell Rising Main and Cromwell Drinking Water Upgrade

To consider status reports for the Cromwell Rising Main and Cromwell Drinking Water Upgrade projects.

Resolution

Moved: Duncan

Seconded: Paterson

That the reports be received.

Carried

24.11.16 September Wastewater Compliance Status Update

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

Resolution

Moved: Laws

Seconded: Alley

That the report be received.

Carried

Note: Cr Cooney left the meeting at 3.30 pm and returned at 3.32 pm.

24.11.17 Status Update for Clyde Street and Water Upgrade

To consider an update on the Clyde Street and Water Upgrade.

Resolution

Moved: Paterson

Seconded: Duncan

That the reports be received.

Carried

Note: Cr Gillespie resumed the Chair.

9 Status Reports

24.11.18 September 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.

Staff gave an update on NZTA funding for the 2024-27 period before responding to questions.

Resolution

Moved: Alley

Seconded: McKinlay

A. That the report be received.

B. That Council approves 24.6.2 from the Teviot Valley Community Board meeting dated 12 September 2024.

Carried

Attachments

1 2024-27 Confirmation of NZTA Funding and Implications for 2024-25

10 Community Board Minutes

24.11.19 Minutes of the Vincent Community Board Meeting held on 9 September 2024

Resolution

Moved: Alley

Seconded: Feinerman

That the unconfirmed Minutes of the Vincent Community Board Meeting held on 9 September 2024 be noted.

Carried

24.11.20 Minutes of the Teviot Valley Community Board Meeting held on 12 September 2024

Resolution

Moved: Alley

Seconded: Feinerman

That the unconfirmed Minutes of the Teviot Valley Community Board Meeting held on 12 September 2024 be noted.

Carried

11 Date of Next Meeting

The date of the next scheduled meeting is 23 October 2024.

12 Resolution to Exclude the Public

Resolution

Moved: Duncan

Seconded: Paterson

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)(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
24.11.21 - Cromwell Town Centre	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)	To enable commercial activities To enable commercial or industrial negotiations
24.11.22 - Improving Digital Connectivity in Central Otago	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
24.11.23 - September 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
24.11.24 - Confidential Minutes of the Vincent Community Board Meeting held on 9 September 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

Carried

The public were excluded at 3.55 pm and the meeting closed at 4.52 pm.

30 October 2024

7 Reports

24.12.3 Extraordinary Vacancy and Appointment of a new Mayor.

Doc ID: 1940538

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

1. Purpose of Report

To consider the appointment of a new Mayor and what should be done with the vacancy created.

Recommendations

That the Council

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

B. Agrees to the appointment of one of its members to the office of Mayor.

C. Notes that the new Mayor affirmed their Oath of Office.

D. Agrees to leave the vacancy created by that appointment unfilled until the end of the triennium.

2. Background

His Worship the Mayor Tim Cadogan stated his intention to resign on 26 October 2024. He is given the right to do so by the Local Government Act 2002 (schedule 7, clause 4), with the act of giving writing notice to the Chief Executive Officer. His notice will take immediate effect.

This creates an extraordinary vacancy which will need to be filled according to Sections 117 to 120 of the Local Electoral Act 2001 depending on the situation.

3. Discussion

Section 117 of the Local Electoral Act 2001 gives guidance on the creation of an extraordinary vacancy and options to resolve this.

There are two items of business that must be carried out:

1. The role of Mayor cannot remain vacant (s117(5)) and must be filled by a member of the local authority. Once a new Mayor has been appointed they must give their oath of office for the Mayor.

2. The member that is elected to the Mayoral role will be deemed to have vacated their seat (s117(6)). As the resignation has come within 12 months of an election, there is no need to hold a by-election and members can resolve whether to leave the vacancy unfilled or to appoint a member who is qualified to be an elected member (s117(3).

Part one is straightforward in that one of the councillors will be elevated to the role of Mayor. In part two, councillors need to decide whether or not they wish to nominate someone to the role or leave the position vacant.

There is no particular need to nominate a replacement, the number of councillors will mimic what has been decided by the representation review (10 councillors plus Mayor), though there is no guarantee that the ward representation will be the same.

4. Financial Considerations

There are no financial considerations to be made as the remuneration is already set for the year by the Remuneration Authority.

5. Options

The process of appointing a new Mayor is defined in legislation and it is very clear in its direction. Therefore there are no options to be considered for that.

The only options come in whether Council wishes to fill its extraordinary vacancy by appointing a member of the community or leaving the position vacant.

Option 1 – (Recommended)

Leave the position vacant.

Advantages:

· Avoids a by-election

Disadvantages:

· There will be one less representative around the Council table.

Option 2

Appoint a member of the community to the position.

Advantages:

· The position will be filled.

Disadvantages:

· It is uncertain who the nominee might be.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by adhering to legislation by installing a new Mayor and deciding upon the vacancy left from that appointment.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The decision is consistent with legislation.
Considerations as to sustainability, the environment and climate change impacts	There are no considerations to be made in this space.
Risks Analysis	There are no risks identified with this decision.
Significance, Consultation and Engagement (internal and external)	This decision does not trigger the Significance and Engagement Policy as it is defined in legislation.

7. Next Steps

Any decisions will be actioned.

8. Attachments

Nil

30 October 2024

24.12.4 Council's Role in Supporting Museums

Doc ID: 1957141

Report Author:	Dylan Rushbrook, Group Manager - Community Vision
Reviewed and authorised by:	Peter Kelly, Chief Executive Officer

1. Purpose of Report

To consider Council’s ongoing role in supporting museums across the District.

Recommendations

That the Council

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

B. Decides how Council will support each of the museum entities.

2. Background

Central Otago enjoys vibrant Arts, Heritage and Culture sectors with them all playing a collective role in establishing Central Otago’s unique identity.

They are often looked at as amenities for visitors, but that approach is disingenuous to the important function those sectors play in educating our communities and giving our communities a place of connection. Specifically, museums as community facilities give a chance for the people of Central Otago to appreciate the history of the district and a connection with the contributions of those who have gone before.

During the research phase of the Central Otago Destination Management Plan the community was asked to rank a series of ‘concept tourism futures’. The highest ranking concept with 65% of all respondents was ‘a place that understands and promotes the stories of its culture and heritage’.

Since 2020 Council has been reviewing the role of museums and seeking to create a more co-ordinated approach to the telling of the Central Otago story through the museums activity.

The Alexandra Districts Museum Incorporated was previously charged with the role of co-ordinating Central Otago’s museums but that agreement ceased in 2020.

In the 2021 Long Term Plan the majority of the community agreed that Council should take on the role of co-ordinating museum functions in Central Otago. The museums sector provided an alternative option after the consultation had closed, whereby the sector would develop a trust that would support the five Council or Community Board funded museums.

In 2021 the Central Otago Museums Trust was established and has received ongoing support from Council. The trust has developed a Museum Strategy, secured funding from the Ministry of Culture and Heritage for a key project and developed a co-ordinated sector. The trust has been acknowledged by staff in previous reports back to Council as being very successful in achieving the outcomes Council had desired for the sector.

Grants

Annually the museum sector receives circa $220k in grant funding combined from Council and respective Community Boards. This includes the legislatively required grant to Otago Museum of $36k. It should be noted the Clyde Museum Trust does not seek any grant funding from Council or Vincent Community Board.

The table below shows the level of investment per entity;

Central Otago Museum Trust	$50,000	Council
Alexandra Districts Museum	$82,000	VCB
Cromwell Museum	$40,000	CCB
Clyde Museum Trust	$0	N/A
Teviot Valley Museum	$2,000	TVCB
Maniototo Eary Settlers Museum	$8,300	MCB
Otago Museum	$36,000	Council

Property

Some museums are housed in Council owned facilities, whereas other museums have sourced their own buildings from which to operate.

The property costs related to each museum housed in a Council facility are covered by the ratepayer. However, while some of these costs are high, it isn’t as a result of a museum being the tenant, rather the Council owned building itself. If the property wasn’t tenanted by a museum, it would still require the same level of upkeep while it remained in Council ownership. There are only a few options available to Council to reduce the property costs at selected sites, which are sell or lease.

Clyde is very complex with multiple land holdings under different titles with different designations. Some property is freehold and some is on reserve land. Council’s Property team have supplied high level information to help develop this paper. There would need to be further work undertaken by Property to work through various options in Clyde should that be the direction of Council today.

A high level outline of property, its known status and options is noted below;

Site	Opex (excl Depreciation)	Depreciation	Status	Options
Cromwell Museum (The Mall)	$8229	$1056	Freehold	Retain, Lease, Sell
Clyde Museums sites*	$36720	$62028	Freehold and Reserve	Mixed – property to investigate if directed
Alexandra Districts Museum*	$36497	$76160	Reserve	Limited

Notes to accompany this table

Clyde Museums sites includes all museum sites in Clyde – Blyth Street, Railway Station, Briar herb factory, Police Lockup, etc.

Alexandra Districts Museum is the ADMI portion of Central Stories building, being 68% of the total floorplan.

None of these buildings have any future earthquake strengthening expense tagged to them.

The Art Deco Museum in Ranfurly occupies a portion of the Centennial Milk Bar which is also a Council owned building. Options for this site have not been included as that museum was not in scope for this work. Like Clyde Museum they do not seek Community Board or Council funding for their operation. To bring equity to any decision that may be made in relation to the Blyth Street site, there should be consideration given to any unintended consequences for the Art Deco Museum.

It should also be noted, Council owns the Cromwell Museum collection, all other collections are owned by the respective museums.

3. Discussion

Since this work began in 2020 there have been significant shifts in the financial position of Council and in how the museum sector manages itself.

In the most recent Annual Plan Council approved a 18.8% average rates rise across the district. As staff prepare budgets for the 2025/26 Long Term-plan all areas of spending are coming under close scrutiny. The provision of grants is one such area, as is the provision of property that carries a true cost to the ratepayer.

At the same time and as noted earlier in this report, the museum sector is delivering primarily through the Central Otago Museum’s Trust on a much more co-ordinated approach to our region’s story as was sought by Council in the 2021 Long term-plan.

In this paper, staff have provided Councillors with all the options available for each site but have not made any recommendations.

In the weeks leading up to presenting this paper staff have met with representatives from the Museums Trust, Cromwell, Alexandra and Clyde Museums as those are the ones most likely impacted through this process.

Those meetings also offered an opportunity for the sector representatives to share any other options that staff might not have considered when developing the paper.

It was noted by most representatives the unknown sector future has put stress on volunteer committees and staff.

Attached in Appendix 1 is a report on each museum entity and the different options available to Councillors. Some options that relate to property need to be further worked through as they will attract cost for valuations or assessments that are not currently budgeted. These are noted in the attached report.

As Council works through all the options, there are three questions;

· Does Council want to specify how the museum sector in Central Otago will operate by taking a more directive approach to how it funds and supports the sector?

· Would Council prefer to ringfence a finite ‘pot’ of funding and property support in Central Otago for the museum sector to determine how that is best utilised? In doing so acknowledging;

1. It likely will not be enough to meet all of the sector’s needs, and

2. Council will have a lower level of influence

· In the face of increasing cost pressures across the organisation, does Council need to remove itself partially or fully from supporting the museum sector?

4. Financial Considerations

Financial impacts are explained in the attached appendix. Some of these need to be worked through in more detail, but are based on best information available at the time of writing.

Some options may require inclusion in the 2025/26 Long Term-plan consultation process.

5. Options

Refer to the attached Appendix for options

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by providing transparency around who ratepayer funds are used.
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	No known impacts
Risks Analysis	There are various risks associated with each option. Many are reputational, but there are also some minor financial and process risks that will be worked through once direction is given.
Significance, Consultation and Engagement (internal and external)	Representatives from the museum sector have been updated on the various options available to Council to enable them to prepare their response. Some options won’t require further consultation, but some others would trigger a consultation. Staff will review this after Council has provided direction and undertake any consultation required.

7. Next Steps

Staff will engage with the museum sector and once given direction from Council.

8. Attachments

Appendix 1 - Museum Report - Options ⇩

30 October 2024

24.12.6 Draft Open Spaces and Recreation Strategy

Doc ID: 1830888

Report Author:

Maria Burnett, Parks Officer - Planning and Strategy

Gordon Bailey, Parks and Recreation Manager

Reviewed and authorised by:

David Scoones, Group Manager - Community Experience

1. Purpose of Report

To consider the draft Open Spaces and Recreation Strategy 2024 and approve it for public consultation.

Recommendations

That the Council

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

B. Approves the draft Open Spaces and Recreation Strategy 2024 for consultation.

2. Background

Lifestyle is part of the cultural identity for many of the people that choose to live or visit in Central Otago. Local parks provide residents with many opportunities to see and enjoy a range of open space, as well as opportunities for Kāi Tahu cultural connection.

Central Otago District Council (the Council) manages a variety of open spaces and parks, some of which are highly developed urban parks and some of which are relatively undeveloped natural areas.

Council is responsible for a total of approximately 1,162 hectares of parks and recreation land. Of this total 492 hectares is available to the public. The remainder is leased for specific purposes.

A total of 260 hectares of actively maintained parks is managed by the Council.

A total of 34 playgrounds are provided. Many of these playgrounds provide poor play experiences for users.

The provision of cemeteries assists with peace of mind for people, knowing their loved ones will rest in peaceful well-kept environments. Council is responsible for eleven cemeteries and Cemetery Trusts manage the other ten cemeteries. There are 57 hectares of Cemetery land within the district.

Population growth continues to generate high levels of subdivision and development (including high density developments) which places increasing pressure on the use of

existing open spaces network, with more people seeking access to these open space areas. Particularly in the more urban areas of the district.

Provision, development and protection of the open space network to provide quality open space is increasingly important. There are challenges in acquiring, maintaining or improving the quality, quantity and accessibility of open space.

The draft Open Spaces and Recreation Strategy 2024 (the Strategy) provides a strategic approach for the provision, protection and enhancement of the Central Otago District public open space network, and how this will meet the district’s future growth predictions.

The Strategy sets out a vision, objectives and key methods for managing the Central Otago District Council’s open space network including development of park types, minimum walking distance from open space to residential areas (500m), design guidance for the configuration of reserves, the types of facilities to be found on the different park types and provision guidelines for greenfield developments.

This Strategy addresses open space provision in residential growth areas and for the increase in visitor numbers predicted over the life of the Strategy. New subdivisions and intensification of existing urban areas requires a qualitative approach to be taken by this Strategy. This Strategy will focus on:

· Stronger provision guidelines

· Stronger wording in the provision guidelines, specifying what park types are required, minimum sizes, and where they are required to be located in order to service residential areas; and

· For open space to be ‘accessible’ a Neighbourhood Park should be within a 500m walk (5 to 10 minutes easy walking) from most residential dwellings.

The Strategy is required to ensure that the existing open space network and any new open spaces provided meet the needs of the community, can provide for growth and will continue to be protected and enhanced.

Competing usage demands, future growth and visitor projections and uneven distribution of open space (relative to some areas) creates a need for more proactive management by Council into provision and type of open space required in different parts of the district.

Why a Strategy is needed

The absence of a Strategy has made it challenging to ensure sufficient quality Neighbourhood, Sport and Recreational Parks and other open spaces are being provided, particularly in new and high growth areas. The Strategy has been developed:

· To address the cumulative impact of small subdivisions that, when combined, result in a large population, to ensure adequate open space is available to residents.

· To introduce the concept of ‘reserve capacity’ for existing residential areas to ensure in-fill developments contribute adequate land or money to improve the open space network. (e.g. provide Council with evidence that additional open space land or funding for upgrading existing open spaces, is appropriate).

· To address impacts of increasing density of developments on the open space network.

· Introduce priority areas for investment and land acquisition (high growth areas or existing areas with inadequate provision).

· To inform Council’s Development Contributions Policy.

· Identification of the need to provide land for Sport and Recreation for current population and for predicted growth.

3. Discussion

Pre-consultation

Pre-consultation to help inform the development of this Strategy was undertaken with the community through a survey in 2022 and a follow-up survey in November 2023.

From those surveys some respondents provided feedback on activities that have been traditionally outside Councils capacity to cater for, such as horse trails, mountain bike trails and mixed-use trails. Other landowners and agencies have typically provided for these.

It was noted that physical wellbeing (93%) and mental wellbeing (85%) are the key reasons that respondents get out and use public spaces, followed closely by social wellbeing.

Respondents predominantly travel by car to get to public spaces they use. Some walk, run or bike.

When looking at the future, respondents suggest Council focus on walking and cycling tracks, linkages and greenways. Continuing to provide sports facilities also ranked highly. Respondents felt that Council should be exploring ways to encourage more physical activity, including considering a wide range of new and innovative sports and activities that are offered elsewhere.

To foster wellbeing, Council was encouraged to maintain existing facilities, but also partner to support community activities and provide additional seating for picnics, events and green spaces.

To make our communities more welcoming, respondents felt that information needed to be accessible showcasing the clubs, events and activities available. Roughly two-thirds of respondents expressed satisfaction with the way open spaces look in their area.

When looking ahead 30 years, respondents wanted to see a continued focus on protecting open spaces and increase native plantings where appropriate.

Barriers to visiting parks and open spaces by foot or bike include inadequate trails and cycleways connecting those spaces, as well as living rurally although more than half of respondents reported satisfaction with the off-road connections to greenways in their area.

When asked what role Council should play in supporting speciality activities such as motocross or equestrian, more than half of respondents felt that role should be one of support/facilitation as opposed to a leading role. Feedback from the surveys provides important insights into the priorities of Central Otago and its open spaces for the future.

The Strategy sets Councils intention for the supply and development of open spaces and parks network for the next 30 years.

Over the next 30 years consideration will be given to:

· Increasing greenway networks

· Providing the right parks and open spaces in the right places

· Improved connections between parks, open spaces and residential areas

· Enhancing existing parks and open spaces

· Upgrade existing playgrounds by providing quality play experiences where needed

· Ensuring town centres are attractive and vibrant

· Strengthen our relationships with mana whenua

· Working smarter with other agencies and volunteer groups

· Work with developers to ensure new developments provide adequate open spaces and connections to ensure liveable communities are developed.

· Using open spaces to tell our local stories.

· Enhancing natural areas under Council control.

Within the Strategy Council’s open space areas have been split into nine categories, based on the New Zealand Recreation Association (NZRA) parks categories framework 2017. The Strategy contains a full description of each Park category:

· Sport and Recreation

· Neighbourhood

· Public Gardens

· Nature

· Cultural Heritage

· Outdoor Adventure

· Civic

· Recreation and Ecological

· Linkages

· Other (Specialist and Leased)

The area of land in each category and in each ward can be found in the policy. This also identifies where Councils open spaces are and what category or use they have.

Strategy Aim and Principles

The Vision

Our network of open spaces and parks meets the recreation needs of our community

The Principles

· Maintain and enhance our parks & open spaces network

· Plan ahead for future changes (to cover future growth and changing recreation needs) including community use and provision of open space

· Recognise our natural, cultural, and historical heritage in open spaces we managed

· Informed decision making

· Working with others to enhance open space and biodiversity where appropriate on open space we manage

What does the Strategy do

The Strategy describes the range of park types that provide a diverse recreation and

open space experience. Mana Whenua aspirations have also been incorporated.

The Strategy provides more detail and clarity around how much public open space should be provided in existing urban areas and new subdivisions, and what type of land and improvements will be accepted. This plan provides guidance for the Central Otago District Council Financial and Development and Reserves Contributions Policy and how Reserve Contributions should be applied going forward.

The Strategy describes how and when new parks and open space areas will be provided through new development. It sets direction on:

· Which areas require new reserves to accommodate growth, and which areas have

sufficient open space areas.

· Priority areas in the district for acquisition and investment, particularly in high growth and high-density areas.

· When developments should provide open space land and when Council should acquire open space land.

· Expanded Provisions Guidelines with stronger and clearer wording that removes ambiguity in what open space Council will accept, to ensure new open space areas are high quality and can provide for a range of recreation infrastructure and activities to meet the community’s needs now and into the future.

· Supports a stronger and more specific Development and Reserves Contributions Policy, to ensure reserves are fit for purpose and reserve improvements caused by population growth are programmed and funded appropriately.

· Recommendations for a stronger and more specific reference to recreation in Councils planning documents.

An Action Plan is included with the Strategy that sets out how the strategy will be

implemented.

Consultation of draft Open Spaces and Recreation Strategy

It is proposed that this draft Open Spaces and Recreation Strategy is notified for public consultation. This will assist in refining Strategy with the public’s view of open space provision into the future.

Consultation

Consultation will include both targeted and general consultation. Targeted consultation will include Developers, Aukaha and sports groups. Drop-in sessions will be held in each ward and general consultation taking place through Councils Let’s Talk platform.

Aukaha

Council entered into a partnership with Aukaha, in 2022. Staff have engaged with Aukaha during the drafting of this Strategy. Aukaha have not had the capacity to provide input at this stage but may do so during the public consultation phase. Staff will continue to work with Aukaha on this.

4. Financial Considerations

There is no current financial implication however the Strategy does identify areas for future investment. These will be included in the draft Lang Term Plan 2025/34.

5. Options

Option 1 – (Recommended)

Approve the draft Strategy to be notified for public consultation.

Advantages:

· Once adopted the district will have an Open Spaces Strategy that will ensure the existing open space network meet the future needs of the community.

· Public consultation will ensure the Strategy is informed by the community and will best reflect the needs and desires of the district.

· The community will feel like their input has been considered and valued.

Disadvantages:

· No disadvantages can be identified from this action.

Option 2

Do not approve the draft Strategy to be notified for public consultation.

Advantages:

· No advantages can be identified from this action.

Disadvantages:

· Not seeking public feedback will mean the Strategy is less informed by the community and will not reflect the needs and desires of the district. The community will not feel like their input has been considered and valued. Council will not be responding to the needs of the community and the Strategy will be less relevant to residents and ratepayers.

· Council will not have a clear strategy to manage the growth and development of its open spaces.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by consulting the public on the Open Spaces and Recreation Strategy and including relevant suggestions that will improve the Strategy.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes. Such as: · Reserve Management Plans · Parks Asset Management Plan
Considerations as to sustainability, the environment and climate change impacts	Strategy does not impact on the environment.
Risks Analysis	No risks have been identified in adopting the Draft Strategy for public consultation.
Significance, Consultation and Engagement (internal and external)	Consultation is not required under the Local Government Act 2002, using the Special Consultative Procedure. It is also not required by any other legislation. However, approval to take the draft Strategy 2024 out for consultation is being sought as engagement is required under Council’s Significance and Engagement Policy, because: - The draft Strategy involves strategic assets that are essential to the continue delivery of Council services or activities (The Council’s portfolio of reserves as a whole and the Council’s portfolio of cemeteries as a whole). - The draft Strategy is likely to have consequences for the current and future social, economic, environmental and cultural wellbeing of the district. - The wider community are likely to be affected by and interested in this matter. There is an identified strong community interest in matters related to the future of the District’s Open Spaces Network. - The draft Strategy is likely to have an influence on the function of a strategic asset i.e. the District’s Open Spaces Network.

7. Next Steps

Public consultation will take place.

Specific engagement will take place with required (and other) agencies and partners.

Following public consultation, a report will be prepared for Council to consider the submissions and recommend any changes to the draft Strategy before adopting a final Strategy.

8. Attachments

Appendix 1 - 20230623 Draft Parks and Recreation Strategy.docx ⇩

Appendix 2 - Open Space Locations and Buffer Zone Maps ⇩

30 October 2024

24.12.7 Wilding Conifer Control Policy

Doc ID: 1925558

Report Author:

Gordon Bailey, Parks and Recreation Manager

Alix Crosbie, Senior Strategy Advisor

Reviewed and authorised by:

David Scoones, Group Manager - Community Experience

1. Purpose of Report

To consider renewing the Wilding Conifer Control Policy for an additional three year period.

Recommendations

That the Council

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

B. Adopts the Wilding Conifer Control Policy for an additional three years.

2. Background

Council have had a Wilding Conifer Control Policy since 6 July 2022.

The Policy was initiated after community requests to address the spread of wilding pines in the district. The Policy provides clear direction on Council’s intention for controlling wilding conifers on land owned or managed by Council, with the exception of Council owned commercial forestry areas which would be managed within the scope of the District Plan.

Advice at the time noted that, of the more than 2500 non-native plant species naturalised in New Zealand, wilding conifers are among the most invasive.

The Policy responds to concerns from the public, and to regional and national attempts to control the invasion of this species.

It is noted that any control operation must be undertaken as a single activity.

3. Discussion

The Wilding Conifer Control Policy was reviewed by the Parks and Recreation Manager and the Senior Strategy Advisor. The review included a review of the Policy itself and its operation over the past twelve months.

The review has found that the Policy remains fit for purpose with no changes required.

The Policy enables a consistent district wide approach to conifer removal with new plantings to enhance biodiversity over time.

Wilding conifers continue to present a risk to tussock grasslands, frost flats, alpine areas, and the wider Central Otago ecosystem.

For these reasons, staff recommend the Policy is renewed for an additional three year period.

4. Financial Considerations

Council agreed to include ward-based funding in the 2021-2031 Long-term Plan for a period of 3 years to address wilding pines on identified Council owned properties. $150,000 was approved over three years on the understanding that most of the cost of removal would be funded by the national programme.

Form that funding Council was able to remove wilding conifers from the Sugar Loaf Scenic Reserve, Half Mile Recreation Reserve and several other smaller pockets of trees within the district.

The national wilding conifer control programmed has been significantly scaled back and is currently focused on maintenance of already cleared areas rather than removal of wilding conifers from new areas.

It is hoped that national funding may be boosted in the coming years.

5. Options

Option 1 – (Recommended)

Council renews the Wilding Conifer Control Policy.

Advantages:

· There is a consistent district wide approach to wilding conifer removal.

· Council meets responsibilities as a landowner by controlling wilding conifers.

· Reduction of known pest species and the significant risks associated with this.

· Reduction of the risk of wildfire to neighbouring properties.

· Council can work with community groups and volunteers to develop areas where wildings have been removed.

· New plantings if appropriate will enhance biodiversity over time.

· Wilding conifers are removed as a seed source to neighbouring properties.

Disadvantages:

· No disadvantages are identified

Option 2

Council does not renew the Wilding Conifer Control Policy.

Wilding conifer control decisions are made at a ward level.

Advantages:

· No advantages

Disadvantages:

· There is no district wide consistency in controlling wilding conifers.

· Inconsistent decision making on the removal of wilding conifers could occur.

· Potential and progress to improve sites following the removal of wildings is lost.

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 removing a recognised weed pest and enhancing the area for greater community enjoyment.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	This decision is consistent with the Central Otago District Council Long-term Plan 2021 – 2031. It is also consistent with the District Plan; the Otago Regional Council Regional Pest Management Plan; the Central Otago Wilding Conifer Control Groups Wilding Conifer Strategy 2020-2025; the Kāi Tahu ki Otago Natural Resource Management Plan 2005; and reporting from the Parliamentary Commissioner for the Environment.
Considerations as to sustainability, the environment and climate change impacts	Wilding conifers are a recognised weed tree, their removal over time will enhance the sustainability and ecological environment of Council owned land across the district. Wilding conifers are not eligible for carbon credits.
Risks Analysis	Risks identified relating to wilding conifers include risks to biodiversity and wildfire threats. There is also a risk that the cost of control increases over time due to continue seed dispersal to neighbouring properties.
Significance, Consultation and Engagement (internal and external)	The policy gives effect to funding allocated for this purpose through the 2021-31 Long-term Plan. Additional consultation is not required.

7. Next Steps

The Wilding Conifer Policy is renewed and will be reviewed after three years.

8. Attachments

Appendix 1 - Wilding Conifer Control Policy ⇩

30 October 2024

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Description automatically generated

24.12.8 Libraries Guidelines

Doc ID: 1895385

Report Author:	Alix Crosbie, Senior Strategy Advisor
Reviewed and authorised by:	Dylan Rushbrook, Group Manager - Community Vision

1. Purpose of Report

To consider the operational Libraries Guidelines.

Recommendations

That the Council

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

B. Adopts the Libraries Guidelines for a three-year period.

2. Background

Council has had a number of policy documents relating to library services in place in the past. This includes policies and documents relating to the shared service with Queenstown Lakes District Council, and a variety of policies and procedures covering various operations.

The Libraries Manager and Senior Strategy Advisor sought to streamline these documents, working with Library Team Leaders and the Collections Manager. As a result of this work, the following framework is proposed:

· One policy document, such as a Memorandum of Understanding or other similar mechanism, to govern the shared service operating with Queenstown Lakes District Council. This is currently in place, and the Libraries Manager and Group Manager – Community Experience are working with our partners at QLDC to update it.

· A framework relating to collection development and management. This is in development by the Collections Manager and expected to be in place by the end of 2024.

· A singular policy relating to library operations and patron behaviour.

3. Discussion

The Libraries Guidelines on the agenda today is the third item – a singular policy outlining the rights and responsibilities of patrons using the library, expectations around unaccompanied children in the library, and how lost property will be handled.

All three areas of focus are in response to operational needs identified by library staff. They have been drawn from successful initiatives at QLDC and other libraries.

The rights and responsibilities include outlining the need to treat other library patrons and staff with courtesy and note that staff have a responsibility to ensure libraries are a pleasant place to visit. Libraries staff intend to display them at all libraries to assist in managing instances of poor behaviour, both in a gentle reminder of expectations and the guidance for staff to point to.

In response to instances where unaccompanied children have been left in libraries for extended periods, staff propose adding a section outlining the ages and expectations for children to be alone in the library. The policy asks that children under the age of ten are actively supervised by a person aged 14 or over.

The policy also outlines how lost property is treated.

4. Financial Considerations

No financial considerations.

5. Options

Option 1 – (Recommended)

Adopt the Libraries Guidelines.

Advantages:

· Streamlining and overall reduction in policy and procedural documentation relating to libraries and their operations

· Improved tools for staff to use in managing rare instances of poor behaviour from patrons

· Consistency with shared service partner

Disadvantages:

· No disadvantages

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 assisting to manage incidents and maintain a pleasant and welcoming atmosphere in libraries.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The policies are consistent with those adopted by Queenstown Lakes District Council, with whom Council operates a shared service.
Considerations as to sustainability, the environment and climate change impacts	No sustainability impacts.
Risks Analysis	No risks.
Significance, Consultation and Engagement (internal and external)	Engagement is not required under Council’s Significance and Engagement Policy or any Act.

7. Next Steps

The Guidelines will be reviewed at three-year intervals.

Library staff will notify patrons through notices and other communications as required.

8. Attachments

Appendix 1 - Libraries Guidelines ⇩

30 October 2024

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24.12.9 Gambling and Board Venue Policy

Doc ID: 655761

Report Author:	Alix Crosbie, Senior Strategy Advisor
Reviewed and authorised by:	Dylan Rushbrook, Group Manager - Community Vision

1. Purpose of Report

To consider approving the draft Class 4 Gambling and Board Venue Policy public consultation.

Recommendations

That the Council

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

B. Directs staff to engage with the community on a proposal to introduce a sinking lid approach to class 4 gambling.

C. Approve the draft statement of proposal for consultation.

D. Appoint two members to hear submissions if required.

2. Background

The Class 4 Gambling and Board Venue Policy is a legislative requirement. It is a combined policy, meeting the requirements of both the Gambling Act 2003 and the Racing Industry Act 2020.

Gambling Act 2003

The provisions of the Gambling Act (the Act) discussed in this report relate to Class 4 gambling only. Council does not have authority over other classes of gambling within the Gambling Act.

Class 4 gambling refers to gaming machines in pubs and clubs (i.e. outside a casino). These machines are commonly referred to in public as ‘pokies’ and in government and health sector documents as ‘EGMs’ (Electronic Gaming Machines).

The Act classifies this as high-risk, high-turnover gambling. Strict conditions in the Act permit EGM gambling only when it is conducted by a corporate society, and only to raise money for an authorised (community) purpose. EGM gambling is not permitted for commercial purposes. Operators are expected to minimise the operating costs of the machines and maximise the return to the community.

Under the Act [sections 101-102], a territorial authority must:

· Adopt a policy on Class 4 Venue that:

o Gives regard to the social impact of gambling in the district.

o Specifies any restrictions on the maximum number of machines.

o May include a relocation policy.

o Have considerations on location of the venue regarding a number of facilities or functions of the district (schools, churches, and other areas).

· The policy may be reviewed or replaced only in accordance with the special consultative procedure (as laid out in the Local Government Act 2002).

o The policy must be reviewed at three-year interviews.

o A policy does not cease to have effect because it is due for review or being reviewed.

o Provisions in the Act require council to notify:

§ Each corporate society in the district that holds a class 4 licence.

§ Organisations representing Māori in the district.

· Amendments were made to the Act in May 2023 designed to prevent and minimise harm. This included new requirements for corporate societies licensed to conduct class 4 gambling, including new training requirements, to better equip venue supervising staff to identify and help problem gamblers, and new monitoring and recording obligations.

The restrictions on the number of machines under the Act are:

Licences granted after 17 October 2001 but before the commencement of the Act in 2003	All other licences
Maximum of 18 machines	Maximum of 9 machines

The Act notes a licence must be refused unless the Secretary for Internal Affairs is satisfied with a number of factorings, including that:

· The applicant will maximise the net proceeds and minimise the operating costs.

· Net proceed will be applied to or distributed for authorised purposes.

Central Otago has consistently held a policy on Class 4 gambling that is renewed at regular intervals. This approach:

· Caps EGMs at the levels prescribed in the Act.

· Allows new venues a maximum of 9 machines.

· Venues that held licences before amendments to the Act [17 October 2019] may be allowed a maximum of 18 machines.

· Where two clubs merge, the maximum number of machines allowed is the lesser figure between 30 machines and the sum of the machines that were in operation at the venues prior to the merge.

· Allows for the relocation of a venue with the same maximum number of machines.

Racing Industry Act 2020

Section 96 of the Racing Industry Act 2020 requires a territorial authority to:

· Adopt a policy on TAB venues that:

o Have regard to the social impact of gambling within the district.

o Specify whether or not new TAB venues may be established in the district and, if so, where they may be located.

o Consider relevant matters include characteristics of the district, the location of certain facilities, and the cumulative impact of additional gambling.

· Provisions relating to review include:

o Provide notice to TAB NZ when reviewing the policy.

These provisions apply only to stand alone board venues. Council does not regulate TAB facilities in pubs and clubs – these are established without territorial consent.

The Racing Industry Act 2020 came into effect since the current policy was last reviewed, replacing the Racing Act 2003. However, there were no material changes to the requirements for Council as a result of this update.

In 2023, government announced a partnership between TAB NZ and British company Entain. This proposal has the potential to ring fence online gambling, utilising geoblocking. Council staff will monitor how the growth of this partnership impacts legislative settings.

The existing Central Otago provisions under the Racing Act are:

· There are no stand-alone TAB/board venues in Central Otago.

· Policy settings allow the establishment of a venue, with controls on the location.

3. Discussion

The Policy was reviewed by the Senior Strategy Advisor and the Regulatory Services Manager.

As this report contains several attachments, it is summarised here:

· Central Otago has a relatively static number of machines and venues for EGM.

· EGM (pokies) continue to increase the profit per machine.

· Class 4 gambling is the most addictive form of gambling.

· Considerable time was taken to clarify the level of funding provided in grants by gaming societies operating in the district.

· There is no specialised gambling support in Central Otago or Queenstown. The nearest specialised gambling support is located in Dunedin. Reported figures are remaining relatively static, and below the national average, however staff are unable to determine if this relates to a low level of problem gambling, or low identification of problem gambling due to a lack of support.

· This report recommends introducing a sinking lid policy for consultation with relation to Class 4 Gambling.

· The report recommends maintaining the status quo approach to board venues.

Full data sets of both EGM profit and return to the community are publicly available from on Department of Internal Affairs data sites: data.govt.nz

Gaming Machine Profit

Commentary provided by the Gaming Machines Statistics Dashboard is examined quarterly, using the quarter to March 2015 as a baseline. The following national and local commentary was drawn from this source as accessed in May 2023; with updates in July 2024.

This data source defines gaming machine profits as expenditure or player loss on electronic gaming machines.

Nationally:

· Since the 2015 baseline, profit has increased by 35.5% ($68,580,663) [May 2023]

· A 4% increase in profit was recorded between December 2022 and December 2023 ($40,184,175).

· The number of venues has decreased nationally with a reduction of 274 venues (-21.5%) from the baseline to December 2023. The number of machines decreased by 2,388 or -14.4%.

· This data source compares gaming machine profit as a proportion of electronic gaming machines to compare year on year expenditure. This analysis noted an increase of 58.2% ($6,772.97) in profit per machine, suggesting that one of the following is occurring:

o Players are spending longer hours at machines; and/or

o Players are betting more per game; and/or

o More players are using machines.

Locally:

· Gaming machine profit has increased by 35.5% in Central Otago since the 2015 baseline. [May 2023]

· Central Otago district recorded $4,594,254.19 in electronic gaming machine profit in 2023.

o This is a 3.7% increase, $163,020.34, on 2022 ($4,431,233.85)

· Central Otago reflects a similar downward trend in the number of machines and venues to the national average.

· Central Otago reflects an increase in profit per machine of 51.2% ($3,377 to $9,970).

o This is below the national average of 58.2%.

2023 Regulatory Interventions

The Gambling Harm Prevention and Minimisation Amendment Regulations 2023 aimed to strengthen gambling harm minimisation.

The new regulations were designed to ensure venues and gambling societies meet their responsibilities in preventing problem gambling. They include:

· Changes to advertising and branding regulations.

· Establishing clearer procedures to enable the identification of problem gamblers through strengthening monitoring practices.

· Establishing infringement offences for breach of these requirements.

Recent legislative finding – Gambling Act

The New Zealand High Court heard a case in February 2024 regarding the relocation of venues. This judgement found that venues can only relocate if the territorial authority and their class 4 gambling policy allow them to do so.

This update increases Central Otago District Council’s ability to restrict electronic gaming machine locations if it chooses to do so.

EGM Policy Interventions

Many territorial authorities have adopted stronger regulations than the baseline of the Gambling Act, including:

· Sinking lid policies

· Absolute caps

· Per capita caps

The Problem Gambling Foundation report 33 of the 65 territorial authorities they have data on have a sinking lid approach (August 2023). Central Otago’s current policy operates at the legislative baseline.

AUT reported on the effectiveness of interventions in 2020. This report was published prior to the 2023 amendment to the Act. The report found:

· All three forms of policy intervention are effective in reducing Class 4 venues and EGMs relative to the reference group (with no restrictions beyond those in the Gambling Act).

· Absolute caps are estimated to reduce the number of EGMs by 67 (15 percent) and the number of venues by 7 (16.9 percent. Estimated reductions are similar for per capita caps (85 EGMs and 8 venues, respectively).

· Sinking lids and per capita caps are equally the most effective at reducing machine spending.

· There are mixed findings with respect to the impact of gambling policies on use of intervention services. For example, an increase in service use is found a year after implementation of per capita caps; whereas a decrease is detected in the year of implementing a sinking lid policy.

Te Whatu Ora Health New Zealand Southern approached staff to discuss the Gambling and Board Venue Policy, indicating a preference for a sinking lid policy as the preferred intervention in reducing gambling harm.

Staff assessed these options as follows:

Intervention

Explanation

Absolute or per capita caps

Council could choose to place an absolute cap or maximum number of venues and/or class 4 machines.

The current cap is 9 machines per venue – with provisions for mergers – however there is no cap on the number of venues.

Under absolute caps, council would choose a number of venues and machines that can be licenced in the district and decline any application beyond that number.

Under per capita caps, council would choose a number of venues and machines that can be licenced in the district relative to the population. That means, the number of machines and venues licenced would grow with the population.

If the status quo was as the absolute cap, it would sit at 107 machines across 9 venues. An absolute cap above this may lead to increased applications for licences. A cap below could be chosen.

The latest official population figure for Central Otago is 23,100 as of June 2020. The current per capita level of EGM is:

· 1 machine permitted per 215 people.

· 1 venue permitted per 2,566 people.

Sinking lid policies

A sinking lid means council would not consent to any new venues being established in the area, and when an existing class 4 venue closes, consent is not given for another to open.

Venues cannot increase the number of gaming machines, nor can they relocate. Over time, this approach leads to a decrease in the number of venues and machines and, theoretically, EGM gambling related harm.

This option would see no new machines or venues licenced in Central Otago. Existing venues would continue to operate with their licenced level of machines – Council has no ability to alter these licences. Venues would be unable to increase the number of machines or relocate them.

Mergers would be permitted only from existing licenced venues, with a cap set on the maximum number of machines. This cap would be determined by elected members. Staff have recommended 18 machines as a starting point for this discussion.

If a change in policy direction is preferred, staff recommend a sinking lid over an absolute or relative cap. This is due to the risk of unintended consequences with the caps in increasing the value of class 4 licences and the venues that hold them in the district – and the advice of health sector partners that the sinking lid policy is the most effective available intervention.

A sinking lid is a slow intervention that would not have a short term impact on either the number of machines in the district, or their associated profit (and therefore level of community grant funding required to distribute).

Existing licences would continue to operate and can be sold with the businesses that hold them. Provisions in the Gambling Act enable short lapses of licences.

As the amount of gaming machine profit per machine continues to increase, the level of grant returned is expected to continue to increase.

There is, however, a risk that Council are perceived to restrict funding to community groups further in an already tight economic environment. Furthermore, gambling societies are not required to return grants to their community of origin. There is a risk these groups may reduce their return in the Central Otago community.

The number of venues and machines has decreased over time under the current settings, despite the absence of a cap.

Relocation Policy

The Gambling Act requires council to consider a relocation policy. A relocation policy is designed to facilitate the movement of class 4 venues out of high deprivation venues and into areas such as central business districts. Presently, all 9 venues are located in areas with medium low deprivation, as preferred by the Act.

Council does not have specific reference to deprivation in the relocation provisions, but does restrict licence locations as follows:

· Not located close to or adjacent to any school, early childhood centre, kindergarten, place of worship or other community facility. The applicant must demonstrate that the proposed venue will not adversely impact on such institutions.

· Not located so as to provide for a concentration of gambling venues.

· Not being located at a venue at which the primary activity is associated with family or children’s activities.

· The electronic gaming machines being located within the venue to minimise their visibility from the street and from underage patrons at the venue.

Board Venues (TAB)

The Racing Act establishes TAB NZ as a legal entity to facilitate and promote sports betting subject to ensuring that risks or problem gambling and underage gambling are minimised, and to maximise profits for the long-term benefit of New Zealand racing and its returns to sports in accordance with the Act. TAB has a monopoly on sports betting.

Council has a limited role in regulating board venues. Council must have a policy stating whether new venues can be established or not; and has a role in consenting new values if they comply with the policy. This policy can only apply to standalone TAB board venues which are owned or leased by the New Zealand Racing Board – council consent is not required under the Racing Act to establish a TAB facility in a bar, hotel, or club.

While not as addictive as pokies, racing and sports betting also poses a risk of harm and addiction. Many TAB venues also host EGM machines, returning funds to sports and racing related community purposes.

As technology changes, there has been an increase in the availability and volume of online gambling – though it remains outside of Council’s control.

Aside from the Lotteries Commission and TAB NZ, conducting gambling online is currently illegal in New Zealand. This means any other online gambling New Zealanders engage in is hosted by an overseas company and sits outside of New Zealand regulatory oversight.

A 25-year partnership between TAB New Zealand and global sports betting and entertainment group ‘Entain’ was announced in 2023 and commenced on 1 June 2023. The partnership includes harm minimisation measures - including the option to introduce geoblocking preventing New Zealanders from accessing gambling on overseas websites.

The current policy for Central Otago states new Board TAB venues may only be established where the primary activity of the venue is the conducting of race and sports betting under the Racing Industry Act 2020.

Council does not have a stand-alone TAB operating in the district. If one were to be established, it would be required to follow the harm minimisation principles of the Entain partnership and the location provisions in the Policy.

Given the relatively minor regulatory role Council has, and the relatively recent partnership initiative, staff recommend retaining the status quo approach to board venues. Staff recommend retaining a shared Class 4 Gambling and Board Venue approach as it allows members to assess all gambling within council regulation as one package.

Aukaha

Council entered into partnership with local rūnaka, represented by Aukaha, in 2022.

Engagement with Aukaha will take place, regardless of the option resolved. This engagement will inform the final recommendation.

Consultation

Staff seek to undertake both target and general consultation. It will be advertised alongside our other regulatory consultations. This advertising will encourage participation from all interested members of the community.

4. Financial Considerations

Minor budgeted costs related to consultation and publication only.

5. Options

Option 1: Consult on a proposal to introduce a sinking lid (Recommended).

Consult on a proposal to introduce a sinking lid policy under which no new venues or machines will be licenced. Board venue provisions remain as the status quo.

Advantages:

· Preferred option for public health providers and groups.

· Aligns with recommendation of community health partners, as provided for through Te Whatu Ora Southern submission.

· This option utilises the most effective known policy tools in reducing harm from class 4 gambling.

Disadvantages:

· Risk this will be seen to restrict funding availability to community providers.

· Imposition on freedom of choice across the community.

Option 2: Consult on a proposal to retain the current policy approach.

Consult on a proposal to retain the current policy approach, including to board venues.

As the current level of harm is relatively static, and new legislation has recently been introduced specifically targeting harms, retaining the status quo allows a wider conversation on ethical funding to take place at the appropriate time.

Advantages:

· This approach recognises that gambling, and the associated harms, is the responsibility of Central Government.

· New harm minimisation measures were introduced in 2023 that are more likely to have an immediate impact on problem gambling, relating to the specific associated harms of the machines themselves. This option allows Council to see the impact of this legislation.

· This option recognises the current economic constraints on community funding and does not risk further erosion of this financing.

Disadvantages:

· A known level of harm is not addressed to the extent it could be.

· Gaming societies are not challenged on the relatively low level of return to the community of origin.

· This option is not aligned with the health approach of Te Whatu Ora Southern.

Option 3: Consult on a proposal with an absolute cap

Consult on a proposal to introduce an absolute cap policy, where council would specify a number of venues and machines that can be licenced in the district and decline any application beyond that number. Board venue provisions remain as the status quo.

Advantages:

· Council can specify the number of venues and machines that can be licenced.

· This option recognises the current economic constraints on community funding and does not risk further erosion of this financing.

Disadvantages:

· A known level of harm is not addressed to the extent it could be.

· Gaming societies are not challenged on the relatively low level of return to the community of origin.

· Some may view this a constraining growth.

· This option is not aligned with the health approach of Te Whatu Ora Southern.

Option 4: Consult on a proposal with a per capita cap

Consult on a proposal to introduce a per capita cap. Board venue provisions remain.

Under per capita caps, council would choose a number of venues and machines that can be licenced in the district relative to the population.

Advantages:

· This option recognises the current economic constraints on community funding and does not risk further erosion of this financing.

Disadvantages:

· There is a potential for the level of harm increasing with an increase in venues or machines.

· The current level of harm is not addressed to the extent it could be.

· The number of machines and venues licenced would likely increase with the population.

· Gaming societies are not challenged on the relatively low level of return to the community of origin.

· This option is not aligned with the health approach of Te Whatu Ora Southern.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by enabling public consultation.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Consistent with Council plans and legislation.
Considerations as to sustainability, the environment and climate change impacts	No impact.
Risks Analysis	No specific risks identified.
Significance, Consultation and Engagement (internal and external)	Consultation is required under both Acts, using the Special Consultative Procedure.

7. Next Steps

Consultation will take place as required by legislation.

The consultation will be packaged with the other regulatory consultations. Specific engagement will take place with required and other agencies and partners.

8. Attachments

Appendix 1 - Class 4 Gaming Venues in Central Otago ⇩

Appendix 2 - Allocation Requirements of the Gambling Act ⇩

Appendix 3 - Social Impact Statement ⇩

Appendix 4 - Class 4 Gambling and Board Venue Policy Sinking Lid Version ⇩

Appendix 5 - Statement of Proposal ⇩

Appendix 6 - Class 4 Gambling and Board Venue Policy Retention of the Status Quo Version ⇩

Appendix 7 - Letter from Te Whatu Ora ⇩

Appendix 8 - Links to research received via Problem Gambling Foundation ⇩

Appendix 9 - Gaming Machine Gambling Statistics and Research Paper - Information for Territorial Authorities (provided by gaming sector) ⇩

30 October 2024

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24.12.10 Private Plan Change 23 (Hartley Road Partnership) - Decision on Acceptance

Doc ID: 1899764

Report Author:	Ann Rodgers, Principal Policy Planner
Reviewed and authorised by:	Lee Webster, Acting Group Manager - Planning and Infrastructure

1. Purpose of Report

To consider acceptance of Private Plan Change 23.

Recommendations

That the Council

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

B. Resolves that Plan Change 23 be accepted under Schedule 1, Clause 25 (2) (b) of the Resource Management Act 1991 and notified as a private plan change under Schedule 1, Clause 26.

2. Background

Hartley Road Partnership (“HRP”) requests a change to the Operative Central Otago District Plan (“the ODP”) to re-zone approximately 5.6ha of land, located at the intersection of State Highway 8 (“SH8”) and Springvale Road, from Rural Resource Area to Industrial Resource Area. A copy of the request is attached in Appendix 1.

The site is legally described as Section 1 Block XXXIV Town of Clyde; Part Block XXXI Town of Clyde; Block XXXII Town of Clyde; Part Block XXXIII and Part Block XXXIV Town of Clyde contained in Record of Title 51710 (title area 6.1663 ha).

The requested amendments the Plan are:

· The addition of 5.62ha of Industrial Resource Area zoning to the Council’s on-line GIS planning maps as shown in Figure 1.

· An addition to Rule 12.7.1. (iii) Access to Rural State Highways and Arterial Roads to provide that there be no direct access to any subdivided allotment from the site to SH8 and Springvale Road and to provide for a suitable left turning lane from State Highway 8 into Springvale Road.

· An addition to Rule 9.3.5 (iv) Screening to provide for a landscaped buffer and prevention of development on the terrace riser above the historic water race traversing the site.

No changes are proposed to the issues, objectives, methods of implementation, principle reasons for adopting objectives, policies and methods and environmental results anticipated in Sections 9 and 12 of the Plan.

A map of land with numbers and numbers

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Figure 1 – Site Plan

The requestor is proposing minor changes to the operative Central Otago District Plan Chapters 9 (Industrial) and 12 (District Wide), providing for no access to State Highway 8; no direct access to Springvale Road for individual properties and the provision of a landscaped bund adjacent to the adjacent Cemetery Reserve.

An evaluation pursuant to section 32 of the Resource Management Act 1991 (RMA) has been provided by the requestor along with other supporting documentation (Appendix 2).

An Assessment of Environmental Effects (AEE) along with Assessments for Market Economics; Transportation; Soil; Infrastructure; Geotechnical; Landscape and Land Productivity have also been received to support the request.

3. Discussion

Clause 25 of the First Schedule to the Resource Management Act 1991 outlines the options available to Council in relation to decisions on the processing of a requested plan change.

Council can choose to accept the request in whole or part and process as a private plan change; adopt the request as if it were a plan change made by Council; deal with the request as if it were an application for a resource consent; or reject the request. These options are discussed below.

Clause 25 (4) of the First Schedule to the Resource Management Act 1991 limits the grounds under which Council can reject a request as follows:

The local authority may reject the request in whole or in part, but only on the grounds that

a) the request or part of the request is frivolous or vexatious; or

b) within the last 2 years, the substance of the request or part of the request –

i. has been considered and given effect to, or rejected by, the local authority or the Environment Court; or

ii. has been given effect to by regulations made under section 360A; or

c) the request or part of the request is not in accordance with sound resource management practice; or

d) the request or part of the request would make the policy statement or plan inconsistent with Part 5; or

e) in the case of a proposed change to a policy statement or plan, the policy statement or plan has been operative for less than 2 years.

In terms Clause 25 (4) (a) – (e), the proposal is not considered to be frivolous or vexatious; and there has been no consideration of the request or part of the request by the Central Otago District Council or the Environment Court, and section 360A is not applicable to the site.

In terms of Clause 25 (4) (c), the request proposes to utilise the existing Industrial zone framework and has been accompanied by an assessment under section 32 of the RMA/supporting documentation and is not considered to be contrary to sound resource management practice.

The proposed plan change will not result in the Operative District Plan being inconsistent with Part 5 and does not affect a plan that has been operative for less than two years.

Given the above there are no grounds to reject the request.

Clause 25 (4) of the First Schedule to the RMA provides a number of options in terms of how the proposed plan change is processed, as indicated below:

1. Deal with the request as if it were a resource consent

The proposed plan change is a significant departure from the current rural zoning (Rural) in terms of allotment size/intended use and it would trigger multiple subdivision and land use consents if processed as a resource consent. Given the current zoning provisions, a resource consents process is unlikely to be successful.

2. Adopt the request as if it were a plan change made by Council

A proposed plan change at the site was not considered by Council or the community as part of the Vincent Spatial Plan process and has not been developed through the Schedule 1 process required of Council initiated plan changes. Council has not undertaken any consultation or engagement in relation to the proposed plan change.

If Council were to consider adopting the plan change the costs associated with the plan change would also be borne by Council.

3. Accept the request and proceed to notify as a private plan change

This would seem the most appropriate option for the processing of the proposed Plan Change 23 and reflects the request. The proponent has expressed a preference for the plan change to be processed as a private plan change. All costs associated with the processing of a private plan change are to be borne by the proponent.

Conclusion

Pursuant to Clause 25 (4) of the First Schedule to the Resource Management Act 1991 there are no grounds to reject the proposed plan change. The matter for Council to decide at this time is procedural, specifically how the plan change will be processed. The merits of the request will be determined through the notification and hearing process.

4. Financial Considerations

All costs associated with the processing of a private plan change are borne by the requestor.

5. Options

Option 1 – (Recommended)

Accept the request and proceed to notify as a private plan change under Clause 26 of the First Schedule to the Resource Management Act 1991.

Advantages:

· Provision of Industrial zoned land in Clyde with access to good transport routes.

· All costs associated with the processing of the plan change will be met by the proponent.

Disadvantages:

· No obvious disadvantages.

Option 2

Accept the request and notify the request as if it were a Council initiated plan change.

Advantages:

· No obvious advantages.

Disadvantages:

· Costs associated with the plan change will be met by Council

· Additional resource would be required in terms of engagement with key stakeholders.

6. Compliance

Local Government Act 2002 Purpose Provisions	The Council has functions under the Resource Management Act 1991 and by carrying out these functions this decision enables democratic local decision making and action by, and on behalf of communities. This decision promotes the social, economic and environmental wellbeing of communities, in the present and for the future by providing for additional industrial zoned land.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	The plan change is not inconsistent with this key action as it provides for growth demand related industrial zoning within the current District Plan rule framework.
Considerations as to sustainability, the environment and climate change impacts	The decision on acceptance and plan change process does not impact on these matters as the merits of the plan change are considered against the RMA framework as part of the processing of the plan change.
Risks Analysis	There are minimal risks associated with the recommendation to accept the request.
Significance, Consultation and Engagement (internal and external)	The plan change will be publicly notified in accordance with the First Schedule to the Resource Management Act, provides a right of submission and further submission.

7. Next Steps

Prepare Plan Change for public notification in accordance with Schedule 1 to Resource Management Act 1991.

8. Attachments

Appendix 1 - PC00023 02 - Updated The Request Received 20241001.pdf ⇩

Appendix 2 - PC00023 Appendix E - Updated s32 Assessment Received 20241001.pdf ⇩

30 October 2024

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24.12.11 Legalisation of Fennessy Road

Doc ID: 1936891

Report Author:	Garreth Robinson, Property and Facilities Manager
Reviewed and authorised by:	Lee Webster, Regulatory Services Manager

1. Purpose of Report

To consider a proposal to legalise the current formation of Fennessy Road.

Recommendations

That the Council

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

B. Agrees to legalise the start of Fennessy Road, as formed, and to stop part of the unformed legal road, in accordance with Schedule 1, subject to:

- The provisions of the Public Works Act 1981.

- The existing fence lines becoming the new legal boundaries.

- The land identified in the schedule as Parcels A – E being taken, then vested in Council as legal road.

- The road identified in the schedule as Parcels F – G being stopped, then amalgamated as outlined in the schedule above.

- The land being taken for road being exchanged for the road that being stopped.

- Easements (in gross) in favour of, and as approved to the satisfaction of OtagoNet, being registered on the resulting titles.

- Helios Energy Limited (as the applicants) paying all easement and surveying costs and LINZ fees.

- Council’s paying the LINZ Accredited Supplier’s costs.

- Each party paying their own legal fees.

- The stopping and legalisation being approved by the Minister of Lands.

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

2. Background

On 19 September, The Maniototo Community Board was presented with the Fennessy Road report.

The Board agreed with the recommendation below.

The Road

Fennessy Road (the Road) runs northward off the Ranfurly – Naseby Road for about 3.5 kilometres, to its end at an intersection with an unnamed gravelled road. This end of the Road is gravelled and is in a poor condition as it predominantly used to access the surrounding forestry blocks.

The start of the Road, about 2.2 kilometres, is the most used stretch of the Road. It is well formed, gravelled, and is in reasonably good condition. This stretch of the Road provides access to the surrounding farmland, a forestry depot, and to a Transpower substation.

An overview of the Road, which adjoins the western side of the Ranfurly – Naseby Road, about 4.5 kilometres south of the Naseby township, is shown below in figure 1.

Figure 1 – Overview of the Start of Fennessy Road.

While the first 2.2 kilometres of the Road is well formed, over two thirds of it encroaches onto the neighbouring farmland. The most significant encroachment of the formed road is through the first 1.3 kilometres. Through this area, the formed road encroaches the western boundary in varying degrees, including its full width in some places. Less significant encroachments of the formed road occur at the corner before, and adjacent to, the Transpower substation. In this area, parts of the formed road encroach the eastern boundary.

Most of the unformed legal road to the east of the start of Fennessy Road has come to be occupied by, and fenced into, the adjacent farm. The opposite has taken place at the corner before, and adjacent to the Transpower substation, where the western side of the legal road has come to be fenced into the surrounding farm.

An overview of the formed road as it encroaches the legal boundaries, is shown in two parts, below in figures 2 and 3.

Figure 2 – Encroachment of the formed road through upper half of the start of Fennessy Road

Figure 3 – Encroachment of the formed road through the lower half of Fennessy Road.

The Applicants and Application

Helios Energy Limited (Helios) specialise in the development of large-scale solar projects. In October 2023, Helios announced that it was planning to construct a 300-megawatt solar farm on land between Naseby and Ranfurly. If constructed, the solar farm will generate enough electricity to power the equivalent of around 70,000 homes annually.

The land that Helios propose to construct the solar farm on is on Fennessy Road. Helios had planned to convey electricity from the site down Fennessy Road, then out to the wider electrical network via an underground cable. While researching its plans, Helios noted that Fennessy Road, as formed, did not sit within the bounds of the legal road. This presented conveyance issues because the Electricity Act 1992 provides registered utility network operators with the right to construct electrical infrastructure within legal road. While infrastructure can be (and often is) constructed on private land, it is either protected by virtue of the Electrical Act, or by the registration of easements pursuant to an agreement between the two parties.

With the formed road being out of alignment, Helios concluded that there were three options for conveying energy from the site to the wider network. Those options were deemed to be:

- putting the cables in the legal road, meaning the cable would be constructed in land occupied by the adjacent farm,

- laying them beside the formed road, which would require an easement from the owner of that land; or,

- to apply to Council to legalise the formed road, which would mean their infrastructure could be constructed and protected in accordance with the Electricity Act 1992.

After considering those options and the possible implications, Helios contacted the owner of the adjacent land to discuss the same. After that discussion, it was agreed that Helios would apply to legalise Fennessy Road, as formed, on behalf of the landowner, and that Helios would also pay all costs associated with the proposed legalisation.

3. Discussion

Roading Network

As discussed above, the start of Fennessy Road is well used. It is also well fenced on both sides. This means reforming the road within its legal alignment would be disruptive to traffic and to the operation of the adjacent farm. As the Road is also well formed, this would also carry unnecessary expense.

In consideration of the above, it is proposed that the formed road be legalised by taking about 1.4945 hectares of land from the adjacent landowner. In conjunction with that, it is further proposed that about 1.5020 hectares of legal road, be stopped and disposed of to the same landowner, with the existing fences becoming the new legal boundaries. A breakdown of the proposed legalisation is shown below in Schedule 1.

Land to be Taken for Road			Road to be Stopped
Parcel	From RT:	Area (ha.)	Parcel	To amalgamate with RT:	Area (ha.)
A.	OT 9C/612	0.0265	F.	OT 9C/1041	0.1440
B.	OT 9C/612	0.0630	G.	OT 10B/788	1.1830
C.	OT 9C/1041	1.0730	H.	OT 9C/612	0.0750
D.	OT 9C/1041	0.2535
E.	OT 10B/788	0.0785
Total Area (approx. ha.):		1.4945	Total Area (approx. ha.):		1.5020

Schedule 1 – Breakdown of proposed legalisation (Note: All areas are approximate only).

A plan of the legalisation, which has been agreed to in principle by the Roading Manager, is shown on the following page, as figure 4.

Figure 4 – Legalisation Plan (Quick Key: Red = Road to be Stopped | Green = Land to be Taken for Road)

Utility Networks & Provider Requirements

OtagoNet has advised that it has an overhead pole network running up the eastern side of the formed road. For the greater part, most of the pole network is located on the outside of the fenced boundary. As the fenced boundary is well inside the bounds of the legal road, this means the existing pole network is protected by the Electricity Act 1992.

If the formed road is legalised as proposed, and the fenced boundary becomes the legal boundary, parts of the existing pole network could come to be located in, or overhang, private property. If this occurs, OtagoNet have agreed to support the stopping subject to easements being registered to protect any part of their network that is no longer contained within the legal road.

Legislation, Policy, & Statutory Procedure

Council’s Roading Policy determines the appropriate statutory procedure for stopping a legal road or any part thereof. The policy for selecting the correct statutory process is outlined in section 8.5 of Council’s Roading Policy, which says:

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

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

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

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

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

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

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

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

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

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

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

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

- Public access will not be adversely affected.

Additionally, the Public Works Act 1981 further provides for:

- Legal road to be stopped, sold, and amalgamated with an adjacent title.

- Private land to be taken, (bought by Council), then vested as legal road.

4. Financial Considerations

Policy & Costs

Council’s Roading Policy determines that the applicant is responsible for all costs associated with their road stopping. This includes purchase of the land at valuation, which is determined on a before and after basis, as prescribed in the Public Works Act 1981.

When legal road is stopped and sold, the income from the stopping is paid into the Roading Administration Management (Unsubsidised) cost centre. From there it is used to fund the correction of public roading issues or to contribute to stoppings that have an element of public benefit.

The policy also states that Council may, in its discretion, determine that there is an element of public benefit to the proposed road stopping, and may agree that the costs associated with the road stopping should be shared between the applicant and the Council in such proportions as the Council shall determine. This will normally only be considered in the situation where a section of formed road is located on private property, and a road stopping process is being undertaken in tandem with legalising the existing road alignment.

As the area of road that is to be stopped is about the same as the area of the formed road that is to be legalised, it is proposed that the costs be shared as follows:

- Helios (as the applicants) pay all surveying costs and LINZ fees.

- Helios (as the applicants) pay all costs associated with the surveying and registration of the OtagoNet easements and or any other relevant encumbrances.

- Council pays the LINZ Accredited Supplier’s Costs.

- Each party paying their own legal fees.

- The land being taken for road be exchanged for the road that is to be stopped.

An estimate of the costs outlined above is shown in the table below:

Cost description:	To be paid by:	Approximate Cost:
Surveying Costs and LINZ Fees	Helios	$15,000
Easement Registration & OtagoNet Costs	Helios	$ 5,000
LINZ Accredited Suppliers Costs	Council	$ 5,000
Council’s Legal Fees	Council	$ 3,500

Table 1 – Estimate of Overall costs

Council’s share of the costs will be paid from existing (Unsubsidised) Roading Administration Management budgets as provided for in the Roading Policy.

5. Options

Option 1 – (Recommended)

To recommend to Council that it agrees to legalise the start of Fennessy Road, as formed, and to stop part of the unformed legal road, in accordance with Schedule 1, subject to:

- The provisions of the Public Works Act 1981.

- The existing fence lines becoming the new legal boundaries.

- The land identified in the schedule as Parcels A – E being taken, then vested in Council as legal road.

- The road identified in the schedule as Parcels F – G being stopped, then amalgamated as outlined in the schedule above.

- The land being taken for road being exchanged for the road that being stopped.

- Easements (in gross) in favour of, and as approved to the satisfaction of OtagoNet, being registered on the resulting titles.

- Helios Energy Limited (as the applicants) paying all easement and surveying costs and LINZ fees.

- Council’s paying the LINZ Accredited Supplier’s costs.

- Each party paying their own legal fees.

- The stopping and legalisation being approved by the Minister of Lands.

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

Advantages:

· The formed road will be legalised which will enhance the roading network.

· The landowner’s occupation of the unformed legal road will be legalised.

· Provides a cost sharing opportunity.

· The solar farm’s electrical cables would be able to be constructed next to the formed road and would not require easements.

· Is consistent with the provisions of Council’s Roading Policy and the Public Works Act 1981.

Disadvantages:

· None.

Option 2

To not recommend to Council that it agrees to legalise the start of Fennessy Road, as formed, or to stop part of the unformed legal road.

Advantages:

· None.

Disadvantages:

· The integrity of the roading network will continue to be compromised.

· The landowner’s occupation of the unformed legal road will be legalised.

· A cost sharing opportunity would be lost.

· The solar farm’s electrical cables would have to be constructed in the legal road and would require easements.

· Does not recognise the provisions of Council’s Roading Policy or the Public Works Act 1981.

6. Compliance

Local Government Act 2002 Purpose Provisions	Road stopping applications are governed by Council’s Roading Policy, and the: - Public Works Act 1981, or the, - Local Government Act 1974. Road stoppings promote the economic wellbeing of the community by generating income from the disposal of land that is held (but not required) for roading purposes. Legalising formed road enhances the resilience of the existing roading network and is an effective method for addressing the encroachment of legal road.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Council’s Road Stopping Policy applies to the application. Consideration of this policy has ensured that the appropriate statutory process, being to legalise the road in accordance with the provisions of the Public Works Act 1981, will be followed.
Considerations as to sustainability, the environment and climate change impacts	Legalising the formed road as recommended is a sustainable and environmentally responsible option for resolving the current alignment issues. There are no climate change impacts related to the recommendation.
Risks Analysis	There are no risks to Council associated with the recommendation.
Significance, Consultation and Engagement (internal and external)	The Significance and Engagement Policy has been considered, with none of the criteria being met or exceeded. Notice of the completed road stopping will be published in the New Zealand Gazette.

7. Next Steps

1. Stopping/Legalisation approved 28 August 2024

2. Applicants advised of outcome On release of the resolution

3. Suppliers engaged August 2024

8. Attachments

Nil

30 October 2024

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24.12.12 Procurement of Three Waters Reticulation Operations Contract

Doc ID: 1961091

Report Author:	Kierie Zeelie, Water Services Planning and Policy Manager
Reviewed and authorised by:	Julie Muir, Group Manager - Three Waters

1. Purpose of Report

To consider the procurement plan for tendering of the Three Waters Reticulation Operations and Maintenance Contract.

Recommendations

That the Council

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

B. Approves the procurement plan for the Three Waters Reticulation Operations and Maintenance Contract, including the following:

(a) Scope to include reticulation only.

(b) Payment on a measure and value basis.

(d) Tenders to be evaluated on Weighted Attribute Method.

(e) Pricing information for all tenderers will only be opened following scoring of the non-financial attributes of all tenders

C. Notes that the outcome of the tender evaluation will be presented to Council in March 2025, for Council to consider approving award of the contract tender.

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 was renegotiated with the incumbent and has been in place since 1 July 2022. The current contract expires on 1 July 2025.

Council considered a report regarding the future direction of delivery for the Water Services Operations in Central Otago on 29 May 2024 and resolved:

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.

The option accepted was that the current water services contract would be unbundled as below:

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

Council has successfully recruited an experienced treatment plant engineer who commenced on 16 September 2024. The procurement of the facilities operations contract is considered in a separate report.

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

This report discusses the procurement plan for tendering of the reticulation operations contract.

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

Recruitment has been undertaken for the automation engineer to manage the electrical and telemetry work, with a person appointed who will commence in February 2025.

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

An internal appointment has been made to manage the sampling and monitoring services. Delivery of this work will continue under the existing contract until 30 June 2025. Planning for the transition to internal delivery will commence in early 2025.

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

No progress has been made on in-house meter reading. This will be considered in early 2025.

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

Vegetation maintenance at treatment plants and other facilities has been transferred to the park’s maintenance contractor from 1 July 2024.

This approach results in council undertaking more of the management functions and having a greater level of oversight and ownership. This will enable council to work with the contractors to improve efficiency, cost effectiveness, and deliver value for money solutions.

Staff have been working with consultants Morrison Low on procurement plans for the two significant contracts, Facilities Operations Contract and the Reticulation Operations Contract.

3. Discussion

Supplier briefings have been undertaken with the following contractors:

Tier 1	Tier 2
Apex (majority owned by City Care)	Pr Civil
City Care	Benchmark
Downer	Skevington
Veolia	HEB
Fulton Hogan	SouthRoads
	Wilson Contractors
	NorWest
	Whitestone Contracting

Tier 1 contractors are the large national contractors who have the resources and capability to undertake the treatment plant operations and the reticulation work.

Tier 2 contractors are medium sized regional and local contractors who would have the resources and capability to undertake the reticulation work, but do not have the experience or resources to undertake the treatment work.

Feedback from Supplier Briefings

The Tier 1 contractors prefer the contracts to be all inclusive, with treatment plant, reticulation, mechanical and electrical, and telemetry all included in one contract.

Council has previously resolved to debundle this work enable both Tier 1 and Tier 2 contractors to bid for the reticulation work. Debundling of electrical and mechanical work enables this work to also be competitively procured where appropriate.

Two of the Tier 1 contractors prefer the contractor to lead management with minimal council involvement.

This option has been discounted as council cannot contract out of its legal responsibilities under the Water Services Act, or consent requirements. Councils experience has been that there is a regulatory expectation that Council has a direct involvement and engagement in the delivery of its services and ensuring it is meeting its legal obligations.

The Tier 2 contractors are all interested whether it is as a lead contractor or as a subcontractor. Two Tier contractors currently hold Three Waters Operation and Maintenance contracts with neighbouring district councils. The Tier 2 contractors are in favour of pump stations being excluded from the reticulation contract and with the measure and value approach council plans to follow with the reticulation contract.

Procurement Plan

In accordance with the Council resolution of 29 May 2024 the new reticulation operations contract will be paid on a measure and value basis where the scope of the work is reasonably well-defined and captured within the contract schedule.

Council Procurement Policy

Councillors approve budgets annually and as required, which include planned procurement spend, and approve award of all contracts with a value of over $1,000,000 unless otherwise previously agreed.

The diagram below outlines the procurement overview process that is required to be followed under council’s procurement policy. This requires the procurement plan to be approved by the Activity Manager (or one-up) for procurement of work over $200,000 where a market tender is being undertaken. Only procurement plans for non-standard procurement over $1,000,000 require council approval.

As this procurement is being undertaken by a standard process through a market tender, the procurement plan does not require approval by council. Council procurement procedures are required to be used, however these are yet to be developed.

In the absence of approved council procedures the procurement plan for this contract is provided to council for information.

4. Financial Considerations

The reticulation operations and renewals budgets for 2025/26 are shown on the following table. The current 24/25 budgets are shown for comparison. The budgets are the same for the following years, with inflation applied.

	2025/26 (Draft)	2024/25 (Current)
Water Reticulation Operations	$1,067,500	$1,035,759
Water Reticulation Renewals	$1,300,000	$1,786,873
Wastewater Reticulation Operations	$300,000	$298,010
Wastewater Reticulation Renewals	$297,650	$297,650
Stormwater Reticulation Renewals	$110,000	$97,278
Stormwater Reticulation Renewals	$208,000	$200,000
Total	$3,283,150	$3,715,570

In addition to the above budgets minor improvements may also be included where it will provide value for money and subject to contractor performance.

5. Options

Option 1 – (Recommended)

Council approve the attached procurement plan for the Three Waters Operations Contract. This contract will be openly tendered using the Government Electronic Tenders Service (GETS).

The contract will include the operation of the water, wastewater and stormwater reticulation excluding pump stations, reservoirs and intakes/discharge structures which are included under the Water and Wastewater Facilities Operations and Maintenance Contract.

This will be a measure and value contract where the scope of the work is reasonably well-defined and captured within the contract schedule. This allows for a like-for-like comparison of rates from the market to obtain competitive prices.

The term of the contract will be for an initial four years, with a two year and then one year extension based on performance. This provides a potential seven-year contract. An initial four-year term provides suppliers a reasonable term to recover their investment into this contract, and therefore will be more cost effective.

In order to provide sufficient time for contractors to set-up and resource this contract by 1 July 2025, tenders need to close prior to the Christmas break and be evaluated following the Christmas break in early 2025. The expectation is that a preferred supplier will be identified by late February, and a report for approving award of the contract will be provided to Council in March 2025.

The tenders will be evaluated on weighted attributes including price, which is the most common methodology used in public sector procurement. The financial and non-financial attributes are defined and weighted to reflect their relative importance in achieving the stated outcome. The offer with the highest total weight score is the preferred supplier, thus meeting the required outcomes set out in the request for tender and providing the best value for money.

Advantages:

· The risks have been assessed and the proposed evaluation methodology has been adopted to mitigate these risks as far as possible.

· The selection criteria and weightings reflect the critical elements of the work.

· This enables the tenders to be compared on both non-financial and cost attributes, with the tender which provides the best value for money in terms of experience and cost to be awarded the contract.

· Restricting the scope of this contract to reticulation only and using the weighted attribute methodology provides opportunities for a wide range of contractors to competitively bid for this work. The price weighting has been set at 40% which is the highest provided for under the previous procurement strategy.

· A greater pool of contractors able to do this work may result in lower prices.

· The measure and value contract type provides clarity in terms of asset maintenance costs and knowledge of the work that is actually completed. This knowledge can be utilised in long-term asset management planning and delivery

Disadvantages:

· Unbundling the reticulation from the facilities operations and management will mean that council has two contracts to manage instead of one. This will increase contract management and administration workload.

Option 2

Do not proceed, or change the proposed tender approach.

Advantages:

· None identified. Significant work has been undertaken to identify the proposed approach as providing the outcome council requires.

Disadvantages:

· A new contract will not be able to be implemented prior to 1 July 2025, requiring a further extension to the existing contract.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic, environmental and cultural wellbeing of communities, in the present and for the future by ensuring that three waters reticulation operations are undertaken in a cost effective and efficient manner, and meet the required performance requirements.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	This decision is consistent with Councils Procurement Policy.
Considerations as to sustainability, the environment and climate change impacts	The delivery of three waters reticulation operations can have environmental impacts when this is not undertaken appropriately. The approach proposed mitigates this risk.
Risks Analysis	Previously outlined in the report to Council on 29 May 2024.
Significance, Consultation and Engagement (internal and external)	This decision does not trigger the significance threshold. Engagement has been undertaken with suppliers and feedback is included in this report.

7. Next Steps

If Council approves the recommendation to proceed with the proposed procurement plan as presented then the tender will be advertised on 4 November 2024, and close prior to the Christmas closedown period.

Evaluation will be undertaken from mid-January to early February.

The outcome of the tender evaluation will be presented to Council in March 2025, for Council to consider approving award of the tender.

The contractor will then undertake pre-commencement activities ready for the new contract to commence on 1 July 2025.

8. Attachments

Appendix 1 - CODC OM ProcPlan Retic final Oct24 ⇩

30 October 2024

A brown and white logo

Description automatically generated

24.12.13 Procurement of Three Waters Facilities Operations Contract

Doc ID: 1948718

Report Author:	Kierie Zeelie, Water Services Planning and Policy Manager
Reviewed and authorised by:	Julie Muir, Group Manager - Three Waters

1. Purpose of Report

To consider the procurement plan for tendering of the Water and Wastewater Facilities Operations and Maintenance Contract.

Recommendations

That the Council

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

B. Approves the procurement plan for the Water and Wastewater Facilities Operations and Maintenance Contract, including the following:

(a) Scope to include treatment plants, pump stations, reservoirs, intakes and outfalls

(b) Payment on a cost-plus basis

(d) tenders to be evaluated on non-priced attributes.

(e) Pricing information for all tenderers will be opened prior to negotiation to confirm that the pricing is at acceptable market levels, Council is getting overall value for money and the overall price is within Council’s budget envelope.

C. Notes that the outcome of the tender evaluation will be presented to Council in March 2025, for Council to consider approving award of the contract tender.

2. Background

Council considered a report regarding the future direction of delivery for the Water Services Operations in Central Otago on 29 May 2024 and resolved:

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.

The option accepted was that the current water services contract would be unbundled as below:

Council has successfully recruited an experienced treatment plant engineer who commenced on 16 September 2024. This report discusses the procurement plan for tendering of the facilities operations contract.

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

The procurement of the reticulation contract is considered in a separate report.

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

Recruitment has been undertaken for the automation engineer to manage the electrical and telemetry work, with a person appointed who will commence in February 2025.

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

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

No progress has been made on in-house meter reading. This will be considered in early 2025.

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

Vegetation maintenance at treatment plants and other facilities has been transferred to the park’s maintenance contractor from 1 July 2024.

Staff have been working with consultants Morrison Low on procurement plans for the two significant contracts, Facilities Operations Contract and the Reticulation Contract.

3. Discussion

Supplier briefings have been undertaken with the following Tier 1 contractors:

· Apex (Majority owned by City Care)

· City Care (reticulation only, treatment through Apex)

· Downers

· Veolia

· Fulton Hogan

Tier 1 contractors are the large national contractors who have the resources and capability to undertake the treatment plant operations and the reticulation work.

Feedback from Supplier Briefings

The Tier 1 contractors prefer the contracts to be all inclusive, with treatment plant, reticulation, mechanical and electrical, and telemetry all included in one contract.

Two of the Tier 1 contractors prefer the contractor to lead management with minimal council involvement.

Procurement Plan

In accordance with the council resolution of 29 May 2024 the new facilities operations contract will be paid on a cost-plus basis with council sharing risk. This means that council pays for the labour hours required to operate the sites, with an agreed overhead and profit margin applied. Council and the contractor management staff then work collaboratively in prioritising the tasks and resource allocation. Council staffing has been increased to provide this input and oversight.

Council Procurement Policy

Councillors approve budgets annually and as required, which include planned procurement spend, and approve award of all contracts with a value of over $1,000,000 unless otherwise previously agreed.

Given the significance of this contract and absence of approved council procedures the procurement plan for this contract is provided to council for approval.

4. Financial Considerations

The treatment plant operations and renewals budgets for 2025/26 are shown on the following table. The current 24/25 budgets are shown for comparison. The budgets are the same for the following years, with inflation applied.

	2025/26 (Draft)	2024/25 (Current)
Water Plant Operations	$1,147,500	$738,337
Water Plant Renewals	$450,000	$482,500
Wastewater Plant Operations	$1,015,000	$1,014,958
Wastewater Plant Renewals	$500,000	$992,500
Total	$3,112,500	$3,228,295

The above costs exclude the purchase of chemicals which is budgeted at $185,000. In addition to the above budgets minor improvements may also be included where it will provide value for money and subject to contractor performance.

5. Options

Option 1 – (Recommended)

Council approve the attached procurement plan for the Water and Wastewater Facilities Operations Contract. This contract will be openly tendered using the Government Electronic Tenders Service (GETS).

The contract will include the operation of the treatment plants, pump stations, reservoirs, and intake/discharge structures.

This will be a cost-plus contract which is paid based on the labour inputs with an overhead and profit margin applied. The contractors will provide pricing based upon an indicative Schedule of Prices. Labour Rates will be required (against various levels of experience), including qualified operators, as well as plant and materials rates.

On-site and off-site overhead percentages are provided including details on where these would apply. These will be reviewed, through negotiations, to confirm they are at appropriate market levels, Council is obtaining “good value” and to ensure the overall pricing is within Council’s budget envelope.

The tenders will be evaluated on non-priced attributes. The prices of all tenderers will be opened, and negotiation will commence with the highest scoring non-priced attribute tenderer. If a satisfactory price negotiation is not achieved, then negotiation will occur with the second highest scoring tenderer.

Pricing information for all tenderers will be opened to confirm that the pricing is at acceptable market levels, Council is getting overall value for money and the overall price is within Council’s budget envelope. This will be a focus for negotiations that are entered into with the preferred supplier. If negotiations are unsuccessful, Council will then move to the next preferred supplier. This will enable Council to compare, for example, proposed level of resourcing against price and give a stronger base for negotiations.

Council is seeking value for money under this contract, balancing quality and cost

Advantages:

· The risks have been assessed and the proposed evaluation methodology has been adopted to mitigate these risks as far as possible.

· Opening the price information of all tenderers enables the negotiating team to ensure council is achieving a quality service at a fair market price.

· This approach encourages council and contractor to work collaboratively to prioritise tasks and resource allocation. This ensures the best outcome for council within a set budget level.

Disadvantages:

· Council will require greater internal capability and capacity to drive value for money and innovation.

Option 2

Do not proceed, or change the proposed tender approach.

Advantages:

· None identified. Significant work has been undertaken to identify the proposed approach as providing the outcome council requires.

Disadvantages:

· A new contract will not be able to be implemented prior to 1 July 2025, requiring a further extension to the existing contract.

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision promotes the economic, environmental and cultural wellbeing of communities, in the present and for the future by ensuring that water and wastewater treatment and pump station operations are undertaken in a cost effective and efficient manner, and meet the required performance requirements.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	This decision is consistent with Councils Procurement Policy.
Considerations as to sustainability, the environment and climate change impacts	The delivery of treatment plant operations can have environmental impacts when this is not undertaken appropriately. The approach proposed mitigates this risk.
Risks Analysis	Previously outlined in the report to Council on 29 May 2024.
Significance, Consultation and Engagement (internal and external)	This decision does not trigger the significance threshold. Engagement has been undertaken with suppliers and feedback is included in this report.

7. Next Steps

Evaluation will be undertaken from mid-January to early February.

The outcome of the tender evaluation will be presented to Council in March 2025, for Council to consider approving award of the tender.

The contractor will then undertake pre-commencement activities ready for the new contract to commence on 1 July 2025.

1. Attachments

Appendix 1 - CODC OM ProcPlan Facilities final Oct24.docx ⇩

30 October 2024

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Description automatically generated

24.12.14 Staff Interests Policy

Doc ID: 1959057

Report Author:	Amelia Lines, Risk and Procurement Manager
Reviewed and authorised by:	Saskia Righarts, Group Manager - Business Support

1. Purpose of Report

To consider the revisions made to the Staff Interests Policy in line with its scheduled review.

Recommendations

That the Council

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

B. Approves the revised Staff Interests Policy.

2. Background

The Staff Interests Policy was last reviewed and approved in 2021. The policy details responsibilities of staff in relation to declaring any potential, perceived, or actual conflicts of interest. The revised policy was reviewed by the Audit and Risk Committee in October 2024 with subsequent updates being made.

3. Discussion

The policy has been reviewed and updates made to ensure it continues to be clear and reflect best practice and can be found at Appendix 1. Updates made include references to the system ELMO, which is now utilised to deliver the interest declaration and management processes. This system has replaced the need for a manual spreadsheet containing all staff interest declarations.

The policy now reflects the need for interest declarations to be completed annually.

Additional suggestions to help staff identify conflicts of interest have been added to provide further guidance to staff when completing declarations.

Other general updates have been made to ensure clarity and consistency throughout the policy.

4. Financial Considerations

There are no financial considerations in relation to the approval and adoption of this policy.

5. Options

Option 1 – (Recommended)

Council approves the adoption of the revised Staff Interests Policy.

Advantages:

· Up to date policy, reflective of current processes will be available to staff.

Disadvantages:

· None

Option 2

Council approves the adoption of the revised Staff Interests Policy with additional changes.

Advantages:

· Changes requested will be incorporated into the policy.

Disadvantages:

· None

Option 3

Council does not approve the adoption of the revised Staff Interests Policy.

Advantages:

· None.

Disadvantages:

· Changes will not be incorporated into the policy.

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 the responsibilities of staff in relation to conflicts of interest and acting in the public interest are clearly documented.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes
Considerations as to sustainability, the environment and climate change impacts	There are no implications relating to sustainability, the environment, or climate change.
Risks Analysis	Whilst this policy has strong links to risk management, there are no significant risks associated with the decision to recommend adoption. If for any reason this policy was not recommended for adoption and the review date of December was missed, the current policy would continue to be functional, providing guidance to staff.
Significance, Consultation and Engagement (internal and external)	There are no significance, consultation, or engagement implications relating to this decision.

7. Next Steps

Once approved and adopted, the policy will be made available to all staff. The annual cycle of interest declarations will continue, and all new employees will continue to be required to declare any interests as part of the on-boarding process.

8. Attachments

Appendix 1 - Staff Interests Policy 2024 - 2027 ⇩

30 October 2024

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24.12.15 Carry-Forwards from 2023/24 and Forecast Changes for the 2024/25 Financial Year

Doc ID: 1948932

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

1. Purpose of Report

To consider a revised budget for the financial year 2024/25 including carry-forwards from the 2023/24 financial year and forecast budget changes.

Recommendations

That the Council

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

B. Authorises carry-forwards to complete 2023/24 capital projects and the additional 2024/25 capital projects revised budget Appendix 1 in the report.

C. Authorises the Revised Operating Budgets including carry-forwards as per Appendix 1 in the report.

2. Background

Since setting the 2024/25 Annual Plan, year four of the 2021-31 Long-term Plan, there have been a number of changes to both operational and capital budgets as a result of changes in timing of the commencement or completion of projects, cost increases, or more clarity of information for council business requirements. As in prior years, this report has combined the identified capital carry-forwards, from the 2023/24 financial year, along with proposed changes to operational budgets to create a 2024/25 revised budget.

Carry-forwards relate to capital programmes of work that have already commenced or been committed to be undertaken in 2023/24, and approval will allow for completion of these programmes of work.

The capital budget carry forwards from 2023/24 total $14.4 million. The major capital carry forwards are, Three Waters $9.1 million, Community Experience (Pools, Parks, Reserves and Libraries) $1.8 million, Property $1.55 million, Roading $1 million and Information Services $621k. A high-level breakdown of the total list of capital projects is included in Appendix 1. Three waters reviewed the Annual Plan 2024/25 capital works programme to create a reduction of $13.5M from the Annual Plan 2024/25 budgets.

The forecast of operational budgets has an increase in revenue of $4.9M. Refer to Appendix 1 for detailed breakdown.

Operating revenue has increased due to land sales in Cromwell and grant funding for the Alexandra library and Alexandra River Park projects.

Operating expenditure has increased due to Long-term plan audit fees, community grants, Regional Identity event, District Vision project, district plan, planning staff salaries and Three Waters reform project. Operational expenditure increases have been reviewed against surplus reserve balances to ensure funding is available to fund the expenditure.

3. Financial Considerations

Total forecast budget for 2024/25 is $62M compared with the Annual Plan 2024/25 of $63.4M. Carry-forwards requests from 2023/24 into 2024/25 year total $14.8 million, with additional adjustments to the Annual Plan 2024/25 of ($17M). The capital works programme has been reviewed for Three Waters resulting in a reduction in the 2024/25 projects, further information is below and in Appendix 2.

Business Support

Operational carry forward for the Long-term Plan 2024-34 audit fee budget $187k has been carried over for the Long-term Plan 2025-34 (the funding has fallen to reserves at the end of 2023/24). The Council made a decision to adopt an enhanced Annual Plan 2024/25 and continue with the nine-year Long-term Plan 2025-34. The vehicle fleet has been moved to finance from administration. A review of the vehicle renewals has been carried out and only necessary budget has been carried forward. Information Services programs that are underway have been carried forward, such as implementation, cabling, and software.

Community Experience

Operational carry forward of grants related to Alexandra River Park and Library as well as corresponding capital carry forward for these projects.

Community Vision

Operational carry forwards include:

· Cromwell Community Grants – Cromwell Menz Shed Charitable Trust 2023/24 grant of $13,903.50 has not been issued in 2023/24 and will be issued when the grant application criteria is met.

· Tourism grant has been reduced by $25k as per Annual Plan 2024/25 Council resolution, along with $4k in computer costs for the visitor centre.

· Community development has increased by $35k for the District Vision project, reserve is available to fund this.

· Regional identity has increased by $18k, this is for the Regional Identity event that will carried out in 2024/25.

Infrastructure & Planning

Roading - relates to the unspent capital programme being carried forward to continue works such as the Clyde Heritage Precinct project.

Waste – relates to expenditure for the reconfiguration of the transfer station and the glass crusher project. These projects are progressing in 2024/25.

Property – relates to Alexandra Airport runway, Roxburgh Entertainment Centre, elderly housing, public toilets and Tarbet Street buildings. The Cromwell Town Centre business case budget was to moved from capital budgets to operational, this will be used for the Long-term Plan 2025-34 consultation.

Planning – 2023/24 District Plan underspend and staff cost underspends have fallen to reserves to be used this financial year.

Three Waters

The Change in Government direction on three waters, and the roll out of new legislation for Local Water Done Well requires revisiting of a number of projects to align these with anticipated changes in national standards. The Cromwell wastewater treatment plant is operating within its current consent limits, and it is prudent to delay the Cromwell wastewater nitrogen removal project until changes in standards are released.

The Dunstan Road water and wastewater pipelines were being accelerated to align with proposed development. These developments are progressing more slowly which provides the opportunity to ensure hydraulic modelling of the wider Alexandra wastewater network to be completed prior to undertaking design of pipe sizes for growth in the Dunstan Road area. Likewise, it is prudent to complete the wastewater modelling prior to progressing replacement of earthenware wastewater pipes in Alexandra to ensure these are upsized where required to service future growth in Alexandra. The hydraulic modelling will be completed in June, and tendering of both the 2024/25 and 2025/26 programmes will be incorporated into one tender. This will ensure that pipes which are likely to be sources of stormwater infiltration on the Alexandra network are prioritised for replacement.

Sludge removal on the Ranfurly and Naseby ponds needs to be progressed before the reconstruction of the wetland occurs, and work on the Naseby infiltration beds is undertaken. Funding for desludging will not be available until 2025/26.

Design of the Cromwell Water Treatment Plant and Ranfurly and Patearoa protozoa barriers is progressing and tendering of physical works will occur in early 2025. These projects have been cash flowed across two years, and updated forecasting indicates most expenditure will be incurred in early 2025/26 instead of late 2024/25.

4. Options

Option 1 – (Recommended)

Approve carry-forwards from 2023/24 financial year into 2024/25 financial year (Appendix 1 and 2) along with the changes to the 2024/25 revised budget as a result of the use of reserves to meet operational and capital work programmes.

Advantages:

· Carry-forwards relate to work that has already commenced or been committed to be undertaken in 2023/24, and approval will allow for completion of these programmes of work.

· This will meet the community’s expectation of projects being completed as identified in annual or long-term planning documents.

· Revising budgets allows Council the ability to track revised income and expenditure for both operational and capital budgets and monitor the progress.

· Authorising the revised budgets allows staff the delegation to proceed with the required activities of Council.

Disadvantages:

· Significant carry-forwards in capital budgets may cause new work to be pushed out to outer years.

· Potential increases in Council debt in order to fund the additional 2024/25 capital works.

· Decrease in the updated Council reserves.

Option 2

Do not accept the proposed changes detailed in Appendix 1.

Advantages:

· Would allow staff to commence all the 2024/25 planned capital projects or use the 2024/25 budgets to complete the work commenced in 2023/24.

· The enhanced Annual Plan 2024/25 budget is not revised.

· No decrease in Council reserves, or possible increase in Council debt would be required.

Disadvantages:

· Future year programmes of work are impacted creating further delays and /or non-completion of projects.

· Council staff would not have the financial delegations to continue with the required works, if there is no authority to spend last year’s budget under-spend, which have been transferred to reserves.

· Council is not meeting the intended purpose the income (rates and external funding) has been collected for.

Potential community concern with delays in council meeting their expectations.

5. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities as carry-forwards reflect work programmes already included in previous annual and long-term plans. Communities have been consulted on these programmes of work. Changes to the revised budget and use of reserves is reflecting allocating funds received in a prior year to the activity the funds were collected for initially.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Yes, this reflects work Council has approved in the prior years and the public have been consulted on these programmes through annual and long-term planning processes.
Considerations as to sustainability, the environment and climate change impacts	Already considered in previous annual and long-term planning documents.
Risks Analysis	The impact of budgets carry-forwards and forecasts of $14.8 M into financial year 2024/25, along with a reduction of the Annual Plan 2024/25 budgets of ($17.5M) brings the combined revised budget total for the year to $60.7 M. There is a risk that budgets have been decreased in Three Waters that is too low for the capital work programme and will need to be increased as the year progresses. It does however, free up external debt to be reprioritised in the Long-term Plan 2025-34.
Significance, Consultation and Engagement (internal and external)	Not applicable as the significant programmes of work have been consulted with the community as part of previous long-term and annual plans processes.

6. Next Steps

If approved the carry-forwards and forecast will form the new revised budget and will be included in all financial reports and reported on through-out the year.

7. Attachments

Appendix 1 - Capital Projects - carry forwards ⇩

Appendix 2 - Three Waters Capex Forecast 2024-25 ⇩

30 October 2024

A brown and white logo

Description automatically generated

24.12.18 Adoption of the Audited 2023/24 Annual Report

Doc ID: 1943721

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

1. Purpose of Report

To consider the adoption of the audited 2023-2024 Annual Report.

Recommendations

That the Council

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

B. Recommends to adopt the 2023-2024 Annual Report subject to Audit New Zealand issuing an audit opinion, and subject to any further amendments requested by Audit New Zealand.

2. Background

Under s98 of the Local Government Act 2002, Council must prepare a report assessing its performance against the activities and intended levels of performance, indicative costs, and sources of funds as set out in the 2021-31 Long-term Plan, 2023/24 (LTP Yr 3) and the Annual Plan 2023/24. This report contains specific financial statements as well as the auditor’s report on those statements and on the performance targets by which performance has been judged. Council adopts this report as part of the normal annual calendar of events. The statutory timeframe for the adoption of the Annual report is the 31 October 2024.

The draft annual report was presented to Audit and Risk committee on 3 October 2024. Since then, there have been no changes to the face of the accounts for the Annual Report 2023/24. Although there have been a few amendments to the notes, this has not changed the integrity of the Annual Report.

At the date of writing this report, verbal clearance from Audit New Zealand is anticipated forthwith. Staff continue to work with Audit New Zealand on the basis that verbal clearance will be received before the Council meeting on the 30 October 2024. The latest copy of the Annual Report 2023/24 is attached to this agenda for review. Once clearance has been received a final copy will be made available for review.

3. Discussion

The Annual Report will be made available to the public within one month after adoption and a Summary Annual Report will also be prepared subject to Audit New Zealand’s timeline.

4. Financial Considerations

Variances to the Annual Plan

The end of year result has a surplus of $8.756M, compared to the reported budget of $6.030M in the 2023/24 annual plan year three. The most significant variances in income were subsidies and grants and development and financial contributions. The most significant variances in expenses are depreciation and amortisation and personnel costs.

Details of all unaudited variances can be found below:

VARIANCE REPORT for the year ended 30 June 2024	2023/24 Actual $000		2023/24 Annual Plan $000	Variance Favourable / (Unfavourable) $000
REVENUE
Rates		43,992	43,754		238
Subsidies and Grants		9,692	7,493		2,199
Development and financial contributions		3,892	1,717		2,175
Fees and charges		5,737	5,787		(50)
Interest revenue		633	500		133
Other income		15,007	14,665		342
TOTAL REVENUE		78,953	73,916		5,037
EXPENSES
Personnel costs		15,154	14,599		(555)
Depreciation and amortisation		19,495	17,528		(1,967)
Finance costs		1,565	1,456		(109)
Other expenses		33,983	34,303		324
Total Expenditure		70,197	67,886		(2,311)
Surplus/(Deficit)		8,756	6,030		2,726

Capital expenditure

Capital expenditure of $29.267M is lower than the 2023/24 Annual Plan (LTP Yr 3) budget of $39.09M by $9.82M. The overspend in Roading of $1.83M and Environmental Services of $1.63k is off-set by underspends in property and community facilities of $12.76M and service centres and libraries of $0.76M.

2022/23 Actual $000	Capital Expenditure	2023/24 Annual Plan $000	2023/24 Actual $000	Variance $000
14,371	Water	7,971	7,868	103
9,235	Wastewater	3,867	4,072	(205)
376	Stormwater	380	569	(189)
4,856	Roading	5,020	6,852	(1,832)
146	Environmental Services	8	1,638	(1,630)
29	Community, Economic and Strategic Development	-	-	-
1,287	Pools Parks and Cemeteries	1,963	1,481	481
4,317	Property and Community Facilities	18,163	5,394	12,769
178	Service Centres and Libraries	1,105	335	769
13	Planning and Regulatory	222	0	222
603	Governance and Corporate Services	396	1,056	(660)
35,411		39,094	29,267	9,828

Three Waters

The overall assessment of Three waters activities has a small unfavourable variance of ($291k) against the Annual Plan 2023/24. When assessed against the revised budget there is a favourable variance of $9.2M. The main projects to be completed include: The Cromwell water treatment plant - UV treatment lamps have been procured to meet drinking water requirements and a tender will be going out for the new Cromwell water treatment plant construction in late 2024; Bridge Hill water main – project held back due to some operational issues in the network and will be packaged and put out for tender in 2024/25; and the Cromwell rising main project is continuing into 2024/25 and estimated completion late 2024.

Roading

This has unfavourable variance of ($1.83M) against the Annual Plan 2023/24. When assessed against the revised budget there is a favourable variance of $3.3M. This is mainly due to the Clyde Heritage precinct projects, which were started in 2022/23 and will continue into the 2024/25 financial year. Footpath renewals and structural renewals bridges have also underspent and will be looking to carry forward unspent budgets, taking into account the NZTA subsidy requirements.

Environmental Services

Environmental services projects include: organic bin roll out of $948k this has been partially funded by the Ministry of Environment grant funding of $569k; Transfer station reconfiguration projects are complete; and glass crushing plant has some customisation to be completed and will be completed in 2024/25.

Pools, Parks and Cemeteries

The favourable variance of $481k is mainly due to the: Alexandra River Park, Lowburn Hall playground, Omakau Recreation Reserve cabins, surface replacement for “The Rec” (Pioneer Park) and the Cromwell sand filter projects that will be carried out in 2024/25.

Property and Community Facilities

The favourable variance of $12.77M is mainly due to the timing of the Cromwell Master plan projects. This includes the Memorial Hall and Town Centre projects. During 2023/24 the Council approved the Cromwell Memorial Hall project, the budget timing has been adjusted through the Annual Plan 2024/25 and will continue into the Long-term Plan 2025/34. The Town Centre projects will be re-assessed and will be put forward for the Long-term Plan 2025-34.

Service Centres and Libraries

The favourable variance of $769k is due to the timing of the Alexandra Library upgrade, which is continuing into the 2024/25 financial year.

Planning Regulatory

Projects recognised in the Annual Plan and the Revised budgets have not yet started. The dog registration software project has been included in the information services MagiQ Cloud migration projects and the budget is no longer required. The dog pound projects are still being worked through and will be re-assessed for the Long-term Plan 2025/34.

Governance and Corporate Services

Information services has been working to tidy up historical projects. The Annual Plan included $201k of capital project with $833k being spent. The total revised budget for 2023/24 was $1.48M with a total of 56% being spent. It is estimated that $599k of projects will be carried forward into 2024/25. Projects include: cyber security, enterprise information systems programme, geographic information systems programme, enhanced digital customer experience programme and user ICT programme.

Vehicle fleet is being re-assessed as part of a change to the vehicle policy. A total of $295k was spent on the vehicle fleet with an Annual Plan budget of $326k. However, the vehicle fleet contributed to $838k of the 2024/25 revised budget a total of 35% of the revised budget being spent. Vehicle replacements will be reviewed for both the upcoming 2024/25 carry forward budgets and the Long-term Plan to ensure the renewals are aligned with the updated policy.

5. Performance measures overview

As part of the ten-year long-term plan, council is required to set performance measures. Every year, as part of council’s annual budgeting process, these measures are reviewed, although council is limited in what can be changed between long-term plan cycles. This allows the community to see the intended levels of service and how these will be measured.

A summary of the individual results is included below:

6. Compliance

Local Government Act 2002 Purpose Provisions	This decision enables democratic local decision making and action by, and on behalf of communities by formally adopting the Annual Report of the Council’s activities.
Decision consistent with other Council plans and policies? Such as the District Plan, Economic Development Strategy etc.	Adoption of the Annual Report is consistent with legislation.
Considerations as to sustainability, the environment and climate change impacts	There are no considerations to be made in this space.
Risks Analysis	There are no risks to adopting the Annual Report
Significance, Consultation and Engagement (internal and external)	This decision does not trigger the Significance and Engagement Policy, nor does it need to be consulted on.

7. Next Steps

Once the Council adopts the 2023-2024 Annual Report and Audit New Zealand issues the written audit opinion, this report will be published on Council’s website, along with the Summary 2023-2024 Annual Report.

Any recommendations from Audit New Zealand will be assessed and staff will respond accordingly.

8. Attachments

Appendix 1 - Annual Report 2023-24 ⇩

Cromwell Community Board Minutes

17 September 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, 17 September 2024 COMMENCING AT 2.00 pm

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

IN ATTENDANCE: T Cadogan (Mayor), P Kelly (Chief Executive Officer), L van der Voort (Group Manager - Planning and Infrastructure), D Rushbrook (Group Manager - Community Vision), D Scoones (Group Manager - Community Experience), A Mason (Media Marketing Manager), R Williams (Community Development Advisor), F Somerville (Roading Administration Assistant), W McEnteer (Governance Manager)

Note: The Chair and Deputy Chair attended the meeting remotely. In accordance with Standing Order 14.1, Cr Laws was chosen by members to be Chair for the meeting.

1 Apologies

Apology

Committee Resolution

Moved: Sanford

Seconded: Browne

That the apology for lateness received from Cr Gillespie be accepted.

Carried

2 Public Forum

Damian Spring (Executive Director and CEO) and Vicki Blakeborough (Engagement Manager) - Santana Minerals

Mr Spring and Ms Blakeborough spoke to the current activity with regard to mining in Bendigo. They spoke about the potential benefits for the Cromwell are and also noted upcoming drop in sessions at their offices and in Tarras. Mr Spring and Ms Blakeborough then responded to questions.

Odette Hopgood - Friends of Cromwell Cemetery

Ms Hopgood spoke about the group that was about to be formed that were concerned about the repair of the Cromwell Cemetery in particular the rabbit holes that had been dug in and around graves. They showed a video in support of their public forum appearance.

Note: Ms Harrison left the meeting at 2.20 pm and returned at 2.21 pm.

3 Confirmation of Minutes

Committee Resolution

Moved: Browne

Seconded: Sanford

That the public minutes of the Cromwell Community Board Meeting held on 6 August 2024 and the Extraordinary Cromwell Community Board Meeting held on 13 August 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. There were no further declarations of interest.

5 Reports

24.9.2 2024/25 Community and Promotions Grants Applications - 1st Funding Round

To consider the first round of the community and promotions grant applications for the 2024/25 financial year.

After discussion it was agreed that the Board could not support the purchase of the proposed infrastructure. It was noted that the event would still proceed without this funding.

Committee Resolution

Moved: Harrison

Seconded: Scott

That the Cromwell Community Board

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

B. Declines the application for $17,000 to Cromwell Radio Yacht Squadron for National Regatta 2024 floating jetty, gazebo and sound system.

Carried

24.9.3 ROAD NAME APPROVAL REPORT - OFF RITCHIES ROAD

To consider a request to name a private road off Ritchies Road, Cromwell.

Committee Resolution

Moved: Browne

Seconded: Sanford

That the Cromwell Community Board

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

B. Agrees that the road off Ritchies Road be named Fairview Lane.

Carried

24.9.4 2025-34 Long-term Plan: Timeline

To provide the Cromwell Community Board with a copy of the 2025-34 Long-term Plan process timeline.

Committee Resolution

Moved: Harrison

Seconded: McConnell

That the report be received.

Carried

6 Mayor’s Report

24.9.5 Mayor's Report

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

Committee Resolution

Moved: Laws

Seconded: Browne

That the Cromwell Community Board receives the report.

Carried

7 Chair's Report

24.9.6 Chair's Report

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

· Attended the districtisation session in Cromwell.

· Attended the Otago Regional Council air quality talk in Cromwell and noted she was the only attendee.

· Attended the last Council meeting and gave an update on topics discussed.

· Attended a Council Long-term Plan workshop..

· Attended the blessing of the new Wooing Tree cellar door building.

· Attended the AGM of Cromwell Community House.

· Attended a meeting of Old Cromwell and noted the fireworks are scheduled for 27 October.

Committee Resolution

Moved: Laws

Seconded: Sanford

That the report be received.

Carried

8 Members' Reports

24.9.7 Members' Reports

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

Ms Harrison reported on the following:

· Ran the Dunstan Zone primary swimming championships.

· Was a referee for the Central Otago primary school swimming championships.

· Attended the town centre workshop at Council on 28 August.

· Hosted Otago University medical students at Goldfields School as part of their community contact sessions.

· Attended a Central Otago Principals Association meeting and hosted and event at The Moorings with the Ministry of Education.

· Attended Wool On and noted the success of the event.

Mr Scott reported on the following:

· Attended the town centre workshop with Council.

· Attended the districtisation discussion that took place online.

Cr Browne reported on the following:

· Attended the Dunstan Zone primary swimming championships.

· Attended Automobile Association meetings and noted the bike ambassador programme.

· Noted recent meetings of the Community Response Group.

Mr Sanford report on the following:

· Attended the LGNZ community board conference.

· Took part in the Lake Dunstan trail marathon and noted approximately 160 participants in the day, which included supporters.

· Attended the districtisation meeting in Cromwell and the online session

· Attended the economic development session in Cromwell and in Alexandra.

· Noted that Lake Dunstan Charitable Trust was looking for a new Chair.

· Attended Council town centre workshop

· Attending business group meetings.

Committee Resolution

Moved: Laws

Seconded: Browne

That the report be received.

Carried

9 Status Reports

24.9.8 September 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: Scott

Seconded: Harrison

That the report be received.

Carried

10 Date of The Next Meeting

The date of the next scheduled meeting is 5 November 2024.

11 Resolution to Exclude the Public

Committee Resolution

Moved: Sanford

Seconded: Harrison

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 Extraordinary Board Meeting

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)

To enable commercial activities

To enable commercial or industrial negotiations

24.9.9 - Cromwell Town Centre

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)

To enable commercial activities

To enable commercial or industrial negotiations

B. That Cr Nigel McKinlay be able to stay after the public is excluded as a Cromwell Ward Councillor

Carried

The public were excluded at 3.08 pm and the meeting closed at 6.38 pm.

Maniototo Community Board Minutes

19 September 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, 19 September 2024 commencing AT 2.03 pm

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

IN ATTENDANCE: T Cadogan (Mayor), P Kelly (Chief Executive Officer) (via Microsoft Teams), Q Penniall (Infrastructure Manager), D Rushbrook (Group Manager - Community Vision), D Scoones (Group Manager - Community Experience), A Mason (Media Marketing Manager), R Williams (Community Development Advisor), G Robinson (Property and Facilities Manager), J Remnant (Asset Management Team Leader (Ranfurly)), W McEnteer (Governance Manager)

1 ApologiES

Apology

Committee Resolution

Moved: Helm

Seconded: Harris

That the apology received from Cr Duncan be accepted.

Carried

2 Public Forum

Hazel Harrison - Naseby Information and Craft Centre Inc

Ms Harrison spoke in support of grant application for Naseby Information and Craft Centre Inc. In addition she gave flyers from the Maniototo Early Settlers Museum in support of their grant application.

3 Condolences

The chair referred to the deaths of Norma Manson, Jenice Crossan, Eunice McMillan, Jane Morton and Joy Dundass. Members stood for a moment’s silence as a mark of respect.

4 Confirmation of Minutes

Committee Resolution

Moved: Harris

Seconded: Hazlett

That the public minutes of the Maniototo Community Board Meeting held on 8 August 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

24.9.2 2024/25 Community and Promotions Grants Applications - 1st Funding Round

To consider the first round of the community and promotions grant applications for the 2024/25 financial year.

After discussion it was noted that the Naseby Information and Craft Centre Inc could apply for additional funds in the second round of grants.

Committee Resolution

Moved: McAuley

Seconded: Harris

That the Maniototo Community Board

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

B. Decides the grants to be allocated to the applicants of the community and promotions grants.

C. Allocates $8,300 to the Maniototo Early Settlers Association Inc towards annual operating costs from the 2024/25 Maniototo Community Board community grants budget

D. Allocates $4,000 to the Naseby Information and Craft Centre Inc. towards operating costs from the 2024/25 Maniototo Community Board community grants budget

E. Approves a grant of $1,437 to Tiaki Maniototo for Taiari Wai River Festival 2025 portaloos.

F. Notes that it is each grant recipient’s responsibility to obtain and/or 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 projects.

Carried

24.9.3 Legalisation of Fennessy Road

To consider a proposal to legalise the current formation of Fennessy Road.

Committee Resolution

Moved: Harris

Seconded: Helm

That the Maniototo Community Board

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

B. Recommends to Council that it agrees to legalise the start of Fennessy Road, as formed, and to stop part of the unformed legal road, in accordance with Schedule 1, subject to:

- The provisions of the Public Works Act 1981.

- The existing fence lines becoming the new legal boundaries.

- The land identified in the schedule as Parcels A – E being taken, then vested in Council as legal road.

- The road identified in the schedule as Parcels F – G being stopped, then amalgamated as outlined in the schedule above.

- The land being taken for road being exchanged for the road that being stopped.

- Easements (in gross) in favour of, and as approved to the satisfaction of OtagoNet, being registered on the resulting titles.

- Helios Energy Limited (as the applicants) paying all easement and surveying costs and LINZ fees.

- Council’s paying the LINZ Accredited Supplier’s costs.

- Each party paying their own legal fees.

- The stopping and legalisation being approved by the Minister of Lands.

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

Carried

24.9.4 2025-34 Long-term Plan: Timeline

To provide the Maniototo Community Board with a copy of the 2025-34 Long-term Plan process timeline.

Committee Resolution

Moved: McAuley

Seconded: Helm

That the report be received.

Carried

7 Mayor’s Report

24.9.5 Mayor's Report

His Worship the Mayor was not present at this meeting.

8 Chair's Report

24.9.6 Chair's Report

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

· Noted roading issues, with edge break in Gimmerburn and at the Styx.

· Noted the planting of a row of redwoods being planted on the roadside coming into Naseby from Ranfurly.

· Noted a new mobile phone tower going up for fortysouth.

· Attended a meeting regarding the Naseby water supply and keeping it clean.

· Attended an amalgamation dinner for the water companies that will now make up Maniototo Irrigation Scheme.

· Noted the filming in Hills Creek for a film based on East of Eden.

· Watched the Long-term Plan session regarding Three Waters.

Committee Resolution

Moved: Hazlett

Seconded: Harris

That the report be received.

Carried

9 Members' Reports

24.9.7 Members' Reports

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

Mr Harris reported on the following:

· Noted waste issues and some confusion that the public had with recognising which plastics went in the recycle bin.

Ms McAuley reported on the following:

· Noted a lot of use of the stadium and hall in Ranfurly.

· Enquired whether there could be a lock box at the Naseby cricket oval.

· Noted that school athletics was coming up.

· Noted that a new business had opened in Ranfurly where the book store was.

· Noted the imminent opening of The Thirsty Moa in Ranfurly.

· Noted that the welcome signage committee was looking at locations at the moment.

· Asked who put up the nets at the tennis courts at Maniototo Stadium. It was noted that staff would organise that.

· Noted that the Ranfurly pool was getting prepared for painting.

Mr Helm reported on the following:

· Noted that broom had not been sprayed recently.

· Noted current challenges in the farming sector.

Committee Resolution

Moved: Helm

Seconded: McAuley

That the report be received.

Carried

10 Status Reports

24.9.8 June 2024 Governance Report

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

Staff gave an update on parks and recreation activities in the Maniototo.

Committee Resolution

Moved: Harris

Seconded: Helm

That the report be received.

Carried

11 Date of the Next Meeting

The date of the next scheduled meeting is 7 November 2024.

The Meeting closed at 2.48 pm.

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

CHAIR / /


AGENDA Ordinary Council Meeting Wednesday, 30 October 2024
Date:	Wednesday, 30 October 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:	Deborah Beange, Communication and Engagement Officer
Reviewed and authorised by:	Dylan Rushbrook, Group Manager - Community Vision