Minutes of Council meeting - Wednesday, 29 January 2025

MINUTES OF A Council Meeting OF THE Central Otago District Council
HELD AT Ngā Hau e Whā, William Fraser Building, 1 Dunorling Street, Alexandra
AND LIVE STREAMED VIA MICROSOFT TEAMS ON Wednesday, 29 January 2025 COMMENCING AT 10.30 am

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

IN ATTENDANCE: P Kelly (Chief Executive Officer), L Fleck (General Manager - People and Culture), J Muir (Three Waters Director), S Righarts (Group Manager - Business Support), D Rushbrook (Group Manager - Community Vision), D Scoones (Group Manager - Community Experience), L Webster (Acting Group Manager - Planning and Infrastructure), P Morris (Chief Financial Officer), Q Penniall (Infrastructure Manager), P Fleet (Roading Manager), P Keenan (Capital Projects Programme Manager), J Thomas (Water Services Sampling & Monitoring Team Leader), A Rodgers (Principal Policy Planner), A Lines (Risk and Procurement Manager) and W McEnteer (Governance Manager)

1 Karakia

Cr Gillespie gave a karakia to begin the meeting.

2 Apologies

Apology

Resolution

Moved: Alley

Seconded: Laws

That the apology received from Cr Claridge be accepted.

3 Public Forum

There was no public forum.

4 Confirmation of Minutes

Resolution

Moved: Browne

Seconded: Cooney

That the public minutes of the Ordinary Council Meeting held on 18 December 2024 be confirmed as a true and correct record.

5 Declarations of Interest

Members were reminded of their obligations in respect of declaring any interests. It was noted that Cr Gillespie had an update for the register that would be sent to Governance.

6 Community Board Chair Update

25.1.2 Community Board Chair Update

There was no update.

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

25.1.3 Naseby Link Road - Ongoing Maintenance

To consider a reduction in level of service on Naseby Link Road in the Māniatoto Ward.

Resolution

Moved: McKinlay

Seconded: Gillespie

That the Council

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

B. Approves the re-classification of Naseby Link Road to “Unmaintained”

25.1.4 CAPEX Reporting - Little Valley Bridge

To consider an update on the Little Valley Bridge capex project.

Resolution

Moved: Duncan

Seconded: Paterson

That the report be received.

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

25.1.5 January Wastewater Compliance Status Update

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

It was noted that the abatement notice extensions for Ranfurly and Naseby were successful.

Resolution

Moved: McPherson

Seconded: Duncan

That the report be received.

25.1.6 Alexandra Water Renewals procurement

To consider the procurement plan for tendering of water pipe renewals for the 2024 - 2026 period.

After discussion it was agreed that part D of the resolution could only be enacted if the revised procurement policy was adopted and that the resolution should be changed to reflect this.

Resolution

Moved: Paterson

Seconded: Feinerman

That the Council

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

B. Notes that the priority water pipe renewal sites are Bridge Hill Rising Main, Enterprise Street (Alexandra) and Northland Street (Ranfurly).

C. Approves the procurement plan for tendering of water pipe renewals on Bridge Hill and Enterprise Street, Alexandra, including the following

(a) Tenders to be evaluated using the Weighted Attribute Method with a 40% price weighting.

D. Authorises the Chief Executive Officer to award the work to the preferred contractor following the procurement process, provided that the tendered amounts are within the approved budget and subject to the revised Procurement Policy being adopted (25.1.14).

25.1.7 Cromwell Water Treatment Plant and Borefield Upgrade Procurement

To consider the procurement plan for the Cromwell water treatment plant and borefield upgrade.

After discussion it was agreed that part C of the resolution could only be enacted if the revised procurement policy was adopted and that the resolution should be changed to reflect this.

Resolution

Moved: McKinlay

Seconded: Gillespie

That the Council

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

B. Approves procurement of a new treatment plant at the reservoir site near McNab Road and an upgrade of the borefield between Lake Dunstan and the Alpha Street recreation reserve, with tenders evaluated using the weighted attribute method with a 40% price weighting.

C. Authorises the Chief Executive Officer to award the work to the preferred contractor following the procurement process provided that the tendered amounts are within the approved budget and subject to the revised Procurement Policy being adopted (25.1.14).

D. Notes that consideration of the future use of the existing treatment buildings will occur within the next 12 months.

25.1.8 Ranfurly Water Treatment Plant - Protozoa Barrier

To consider procurement of protozoa barrier treatment for the Ranfurly Water Treatment Plant.

After discussion it was agreed that part E of the resolution could only be enacted if the revised procurement policy was adopted and that the resolution should be changed to reflect this. It was also noted that staff planned to procure both of the protozoa barrier projects together.

The proposed procurement schedules were tabled for Councillors to consider the timeframes for these projects.

Resolution

Moved: Feinerman

Seconded: Duncan

That the Council

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

B. Approves installation of a cartridge and ultraviolet (UV) treatment solution as an affordable option to meet the New Zealand Drinking Water Quality Assurance Rules

C. Notes that a cartridge and ultraviolet (UV) treatment solution:

(a) will have a treatment capacity limit is likely to require water conservation measures when source water experiences high turbidity

(b) operational costs will rise to meet increased electricity and plant operations associated with additional treatment processes

D. Approves the procurement plan for protozoa barrier treatment at the Ranfurly Water Treatment Plant using a Weighted Attribute Method with a price weighting of 40%.

E. Authorises the Chief Executive Officer to award the contract to the preferred contractor following the procurement process provided that the tendered amounts are within the approved budget and subject to the revised Procurement Policy being adopted (25.1.14).

1 Procurement Schedule for Ranfurly and Patearoa Protozoa Barriers

25.1.9 Patearoa Water Treatment Plant - Protozoa Barrier

To consider procurement of protozoa barrier treatment for the Patearoa Water Treatment Plant.

After discussion it was agreed that part E of the resolution could only be enacted if the revised procurement policy was adopted and that the resolution should be changed to reflect this. It was also noted that staff planned to procure both of the protozoa barrier projects together.

The proposed procurement schedules were tabled for Councillors to consider the timeframes for these projects.

Resolution

Moved: Alley

Seconded: Paterson

That the Council

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

B. Approves installation of a cartridge and ultraviolet (UV) treatment solution as an affordable option to meet the New Zealand Drinking Water Quality Assurance Rules

C. Notes that a cartridge and ultraviolet (UV) treatment solution:

(a) Will have a treatment capacity limit that is likely to require water conservation measures when source water experiences high turbidity

(b) Operational costs will rise to meet increased electricity and plant operations associated with additional treatment processes

D. Approves procurement of protozoa barrier treatment for the Patearoa Water Treatment Plant.

(a) Tenders to be evaluated on a Weighted Attribute Method with a price weighting of 40%.

E. Authorises the Chief Executive Officer to award the contract to the preferred contractor following the procurement process provided that that the tendered amounts are within the approved budget and subject to the revised Procurement Policy being adopted (25.1.14).

1 Procurement Schedule for Ranfurly and Patearoa Protozoa Barriers

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

25.1.10 Stage 2 of District Plan Review Program Approval

To consider Stage 2 of the District Plan review programme.

Resolution

Moved: McPherson

Seconded: Cooney

That the Council

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

B. Approves Stage 2 of the District Plan review programme as outlined

Note: Her Worship the Mayor resumed the Chair.

Note: Cr Feinerman left the meeting at 12.00 pm and returned at 12.01 pm.

Note: Cr McPherson left the meeting at 12.00 pm and returned at 12.02 pm.

25.1.11 Community Boards Grant Budgets for the 2025-34 Long-term Plan

To consider inclusion of the community and promotion grant budgets for each community board in the draft budgets for the 2025-34 Long-term Plan.

Resolution

Moved: Duncan

Seconded: McPherson

That the Council

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

B. Approves $38,000 be allocated through the 2025-34 Long-term Plan budget process for Vincent community grants for the nine years of this plan.

C. Approves $50,000 be allocated through the 2025-34 Long-term Plan process for Vincent promotions and event grants for the nine years of this plan.

D. Approves a maximum of $21,774 be available to the Teviot Valley Community Board through their reserves to fund community grants in 2025/26 and 2026/27 financial years.

E. Approves a maximum of $16,948 be available to the Teviot Valley Community Board through their reserves to fund promotions and events grants in 2025/26 and 2026/27 financial years.

F. Approves $3,000 be allocated through the 2025-34 Long-term Plan budget process for Teviot Valley community grants from the 2028/29 financial year onwards.

G. Approves $2,000 be allocated through the 2025-34 Long-term Plan budget process for Teviot Valley promotions and event grants from the 2028/29 financial year onwards.

H. Agrees that the Teviot Valley Community Board does not need seek Council approval to spend reserve funds for community or promotions grants within the 2025/26 and 2026/27 financial years.

I. Approves $50,000 be allocated through the 2025-34 Long-term Plan budget process for Cromwell community grants for the nine years of this plan.

J. Approves $106,210 be allocated through the 2025-34 Long-term Plan budget process for Cromwell promotions and event grants for the nine years of this plan

K. Approves $6,700 be allocated through the 2025-34 Long-term Plan budget process for Maniototo community grants for the nine years of this plan.

L. Approves $5,000 be allocated through the 2025-34 Long-term Plan budget process for Maniototo promotions and event grants for the nine years of this plan.

25.1.12 Assigning Role of Controller

To consider supporting a recommendation to the Otago Group Manager of Civil Defence Emergency Management that Central Otago District Council employee, Patrick Keenan, be appointed as a Local Controller in accordance with the Civil Defence Emergency Management Act.

Resolution

Moved: McPherson

Seconded: Feinerman

That the Council

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

B. Recommends to the Otago Civil Defence Emergency Group Manager that Patrick Keenan, a Central Otago District Council employee be appointed as a Local Civil Defence Controller (statutory position).

Note: With the permission of the meeting, item 25.1.15 was moved forward.

8 Mayor’s Report

25.1.15 Mayor's Report

Her Worship the Mayor spoke to her report.

Resolution

Moved: Alley

Seconded: Gillespie

That the Council receives the report.

25.1.13 Risk Management Policy and Risk Appetite Statement

To consider updates made to the Risk Management Policy as part of its soft review and to consider the newly created Risk Appetite Statement.

Resolution

Moved: McPherson

Seconded: Browne

That the Council

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

B. Adopts the revised Risk Management Policy.

C. Adopts the new Risk Appetite Statement.

25.1.14 Revised Procurement Policy

To consider revisions made to the Procurement Policy as part of its scheduled review.

Resolution

Moved: Feinerman

Seconded: McKinlay

That the Council

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

B. Adopts the revised Procurement Policy.

Note: The meeting adjourned at 12.27 pm and resumed at 1.01 pm.

Note: With the permission of the meeting, item 25.1.24 was moved forward.

Note: Tom Lucas from Rationale joined the meeting for item 25.1.24.

Note: Cr Duncan returned to the meeting at 1.02 pm.

Note: Cr Gillespie left the meeting at 1.16 pm and returned at 1.17 pm.

Note: Cr Paterson left the meeting at 1.58 pm and returned at 2.21 pm.

Note: Cr McPherson left the meeting at 3.01 pm.

25.1.24 Draft Consultation Document and Supporting Material for the 2025-34 Long-term Plan for Audit New Zealand

To consider approving the 2025-34 draft Consultation Document for the Long-term Plan and supporting information to the Consultation Document be provided to Audit New Zealand.

Mr Lucas from Rationale discussed the draft Development and Financial Contributions Policy before responding to questions.

Version 4 of the draft consultation document was tabled at the meeting, which reflected a number of changes identified by the Audit and Risk committee.

Staff then went through the draft consultation document and discussed the budgets as they were at the present moment. It was noted there were a number of changes following the last Audit and Risk meeting to the draft consultation document. The following changes were suggested in addition to changes identified by the Audit and Risk committee:

· Change the title Focus on Water to Water.

· What else do we want your feedback on? page to be turned into item 9.

· It was acknowledged that there were a number of typos that were being changed.

Resolution

Moved: Alley

Seconded: Gillespie

That the Council

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

B. Approves that the draft Consultation Document be provided to Audit New Zealand for audit as required under the Local Government Act 2002, subject to the changes identified.

C. Approves the following supporting information to the Consultation Document be provided to Audit New Zealand to facilitate the audit:

(a) Infrastructure Strategy

(b) Financial Strategy

(c) Development and Financial Contributions Policy

(d) Fees and Charges

(e) Significance and Engagement Policy

(f) Revenue and Financing Policy

(g) Rates Remission and Postponement Policy

(h) Liability Management Policy

(i) Investment Policy

(j) Prospective Financial Statements and Prospective Funding Impact Statements

(k) Community Outcomes Development

(l) Significant Forecasting Assumptions and Risks

(m) Capital Expenditure for Activity Groups

D. Agrees that the consultation item for the Supercars grant that the preferred option is to support the grant of $250,000 with funding from the tourism reserves.

E. Agrees that the Chief Executive Officer is authorised, in consultation with the Mayor, to make any necessary formatting or editorial changes, or other such changes required by Audit New Zealand, to finalise the material ahead of presentation back to Council in March 2025.

1 Version 4 of the draft consultation document tabled at meeting.

Note: Cr McPherson returned to the meeting at 3.04 pm.

9 Status Reports

25.1.16 January 2025 Governance Report

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

Resolution

Moved: Feinerman

Seconded: McKinlay

That the report be received.

10 Community Board Minutes

25.1.17 Minutes of the Vincent Community Board Meeting held on 3 December 2024

Resolution

Moved: McKinlay

Seconded: Browne

That the unconfirmed Minutes of the Vincent Community Board Meeting held on 3 December 2024 be noted.

25.1.18 Minutes of the Teviot Valley Community Board Meeting held on 5 December 2024

Resolution

Moved: McKinlay

Seconded: Browne

That the unconfirmed Minutes of the Teviot Valley Community Board Meeting held on 5 December 2024 be noted.

25.1.19 Minutes of the Maniototo Community Board Meeting held on 12 December 2024

Resolution

Moved: McKinlay

Seconded: Browne

That the unconfirmed Minutes of the Maniototo Community Board Meeting held on 12 December 2024 be noted.

11 Committee Minutes

25.1.20 Minutes of the Audit and Risk Committee Meeting held on 28 January 2025

Resolution

Moved: McKinlay

Seconded: Browne

That the unconfirmed Minutes of the Audit and Risk Committee Meeting held on 28 January 2025 be noted.

12 Date of Next Meeting

The date of the next scheduled meeting is 26 February 2025.

13 Resolution to Exclude the Public

Resolution

Moved: Alley

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 Minutes	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information	To protect a person's privacy Commercial sensitivity
25.1.21 - Risk Register Update	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	To prevent use of the information for improper gain or advantage
25.1.22 - January 2025 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
25.1.23 - Confidential Minutes of the Audit and Risk Committee Meeting held on 16 December 2024	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(f)(ii) - the withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of Council members, officers, employees, and persons from improper pressure or harassment s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege 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	To protect a person's privacy Commercial sensitivity To protect people from harassment Legal professional privilege To prevent use of the information for improper gain or advantage

The public were excluded at 3.06 pm and the meeting closed at 3.16 pm.