I hereby give notice that a Finance and Planning Committee Meeting will be held on:

 

Date:

Thursday, 28 March 2019

Time:

at the conclusion of the public forum which commences at 9.00am

Location:

Council Chamber

28-32 Ruataniwha Street

Waipawa

 

AGENDA

 

 

Finance and Planning Committee Meeting

28 March 2019

 

Our vision for Central Hawke’s Bay is a proud and prosperous district made up of strong communities and connected people who respect and protect our environment and celebrate our beautiful part of New Zealand.

Monique Davidson

Chief Executive

 


Finance and Planning Committee Meeting Agenda                                                      28 March 2019

Order Of Business

1          Apologies. 3

2          Declarations of Conflicts of Interest 3

3          Standing Orders. 3

4          Confirmation of Minutes. 3

5          Report Section. 12

5.1            Finance and Planning Committee - Work Programme Update. 12

5.2            Adoption of the Rating Review Scope and Timing. 15

5.3            Draft Dust Suppression Policy. 29

5.4            Land Transport Programme Update. 42

6          Public Excluded. 45

6.1            Public Excluded  Minutes of the District Plan Subcommittee. 45

7          Date of Next Meeting. 45

8          Time of Closure. 45

 

 


1            Apologies

2            Declarations of Conflicts of Interest

3            Standing Orders

RECOMMENDATION

THAT the following standing orders are suspended for the duration of the meeting:

·      20.2 Time limits on speakers

·      20.5 Members may speak only once

·      20.6 Limits on number of speakers

And that Option C under section 21 General procedures for speaking and moving motions be used for the meeting.

Standing orders are recommended to be suspended to enable members to engage in discussion in a free and frank manner.

 

4            Confirmation of Minutes

Finance and Planning Committee Meeting - 14 February 2019


Finance and Planning Committee Meeting Agenda                                                      28 March 2019

   MINUTES OF Central HAwkes Bay District Council
Finance and Planning Committee Meeting
HELD AT THE
Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON
Thursday, 14 February 2019 AT at the conclusion of the Public Forum which commences at 9.00am

 

PRESENT:              Cr Ian Sharp (Deputy Mayor)

                                 Mayor Alex Walker

Cr Tim Aitken

Cr Kelly Annand

Cr Shelley Burne-Field

Cr Tim Chote

Cr Gerard Minehan

Cr Brent Muggeridge

Cr David Tennent

IN ATTENDANCE: Joshua Lloyd (Group Manager, Community Infrastructure and Development)

Monique Davidson (CEO)

Bronda Smith (Group Manager, Corporate Support and Services)

Doug Tate (Group Manager, Customer and Community Partnerships)

Nicola Bousfield (People and Capability Manager)

Leigh Collecutt (Governance and Support Officer)

1            Apologies

             

Committee Resolution  

Moved:       Cr Ian Sharp

Seconded:  Mayor Walker

That Dr Roger Maaka is tabled as an apology for the meeting.

Carried

 

2            Declarations of Conflicts of Interest

None

3            Standing Orders

Committee Resolution  

Moved:       Cr Gerard Minehan

Seconded:  Cr Shelley Burne-Field

THAT the following standing orders are suspended for the duration of the meeting:

·   20.2 Time limits on speakers

·   20.5 Members may speak only once

·   20.6 Limits on number of speakers

AND THAT 21.4 Option C under section 21 General procedures for speaking and moving motions be used for the meeting.

Carried

 

 

 

4            Confirmation of Minutes

Committee Resolution  

Moved:       Cr Gerard Minehan

Seconded:  Cr Tim Aitken

That the minutes of the Finance and Planning Committee Meeting held on 29 November 2018 as circulated, be confirmed as true and correct.

Carried

 

 

5            Local Government Act Compliance – Planning, Decision Making and Accountability

Council is required to make decisions in accordance with the requirements of Part 6 Subpart 1 of the Local Government Act 2002.

Committee Resolution  

Moved:       Cr Ian Sharp

Seconded:  Cr David Tennent

THAT Council has read the reports associated with items 6.1 to 6.5 and considers in its discretion under Section 79(1)(a) that sufficient consultation has taken place in addition to the Councillors knowledge of the items to meet the requirements of Section 82(3) in such a manner that it is appropriate for decisions to be made during the course of this meeting.

 

Amendment

Moved:       Cr Ian Sharp

Seconded:  Cr David Tennent

That item 5 - Local Government Act Compliance  - Planning, Decision Making and Accountability is removed from all Finance and Planning Committee Meeting Agendas going forward.

Carried

 

6            Report Section

6.1         Finance and Planning Committee Work Programme Update

PURPOSE

The purpose of this report is to provide an update to the Finance and Planning Committee on the key priorities as identified in the Terms of Reference and work programme for the committee.

 

Committee Resolution  

Moved:       Cr Tim Aitken

Seconded:  Cr Shelley Burne-Field

That, having considered all matters raised in the report, the report be noted.

Carried

 

·    Mayor Walker asked officers about progress of the rates review.

It was confirmed that it was a long term review over a 12-24 month period and that it was currently on track.

 

·    Cr Tennent asked whether if the Counci made a decision on the scope of work for the rates review, if this would bind the next Council in any way.

It was confirmed by Cr Sharp and officers that this could be rescoped if needed.  The intention of the review is that it is a guideline which outlined milestones, rather than a binding strategy.

 

 

 

6.2         Quarterly Financial Reporting for December 2018

PURPOSE

Provide Council with a summary of Council's second quarter financial performance for the 2018/19 financial year.

 

Committee Resolution  

Moved:       Cr Gerard Minehan

Seconded:  Cr Kelly Annand

That, having considered all matters raised in the report, the report on Council's second quarter financial performance for the 2018/19 financial year be noted.

 

Carried

 

 

·    Cr Muggeridge asked whether officers were confident that project work was going to be completed and that contractors were going to be available, given a large proportion of work is phased for the last 6 months of the year. 

Officers confirmed that the capital works programme was a priority and that sound programme management would help to achieve milestones.  Where officers are not confident that deliverables would be met, these have been signalled to Council.

It was also confirmed that while finding qualified contractors is potentially a risk, that a good amount of interest has been generated for projects through the use of different engagement tools.

 

·    Mayor Walker asked about income subsidies from NZTA for emergency work and whether this was included in the figures.  It was confirmed that some of it was included and that most of the emergency work from weather events had either been programmed or completed, however a paper would be coming to Council to discuss further work needed after the December weather event.

 

·    Cr Aitken asked officers how they had achieved the reduction of $202,032 for bad debts since September.  It was confirmed that this was managed thorugh various channels, including officers actively working to make payment arrangements, mortgage demands and outsourcing some debt management.

 

·    Cr Tennent discussed roading issues after rain events and asked whether the regional council accepted responsibility for remedial work required when roads were impacted by rivers or waterways.  Mr Lloyd confirmed that although the regional council were not directly giving a financial contribution, that they were assisting officers by making the process as easy as possible and assisting with storage.

The Chief Executive noted that there were continuing discussions with the regional council about long term sustainability in terms of funding for extreme events.

 

 

6.3         Quarterly Activity Reporting - October to December 2018

PURPOSE

The purpose of this report is to provide Council with a summary of the organisation’s quarterly activity reporting for the period October to December 2018.

 

Committee Resolution  

Moved:       Cr Kelly Annand

Seconded:  Cr David Tennent

That, having considered all matters raised in the report, the report be noted.

Carried

 

·    Cr Minehan indicated that stakeholders would like to have ongoing meetings with Building Control officers to discuss changes in legislation and other relevant matters. 

 

·    Discussion took place about growth assumptions made in last year’s Long Term Plan and given the significant growth in some areas of the district it was agreed that this would need to be re forecast.

 

·    Cr Tennent asked what the Council’s obligations were in terms of dealing with animal welfare.  It was confirmed that the recent review of the animal control service highlighted that some improvements needed to be made in this area.  It was also noted that there is a lack of clarity about the Council’s role in conjunction with other agencies.

 

·    Cr Burne-Field asked what could be expected in terms of responsiveness when an additional animal control staff member was appointed.  The Chief Executive confirmed that it would enable the organisation to be more proactive and visible, rather than strictly just dealing with animal control enforcement.

 

·    Cr Burne-Field also requested that the organisation have more proactive communication about what to do when people need support or help with animal control.  This was noted by officers.

 

·    Cr Aitken asked about the large pile of metal at the transfer station and whether this could be moved. It was confirmed that contractors were working to deal with this.

 

·    Cr Tennent asked whether watering was still taking place at Russell Park.  Officers indicated while there would still be some watering taking place that recent rainfall has not meant that this had not been necessary.

 

·    Cr Annand requested that the target for number of users of the Memorial Hall be clarified for future reporting.

 

·    Cr Burne-Field noted concerns about the number of ammonia exceedences for wastewater treatment.

 

·    Cr Muggeridge asked for clarification about wastewater flow volumes and the point at which officers would be highly concerned about exceedences.

It was confirmed that exceedences were reported to the regional council and that the council was working with them on planning to help reduce these issues.

 

 

 

6.4         Elected Members Expenses for July to December 2018

PURPOSE

The purpose of this report is to update Council on the Elected Members’ Expenses for the six month period of July to December 2018.

 

Committee Resolution  

Moved:       Cr Tim Aitken

Seconded:  Cr David Tennent

That, having considered all matters raised in the report, the Elected Members Expenses for July to December 2018 report be noted.

Carried

 

 

 

6.5         Key Project Status Report #4 - Big Water Story

PURPOSE

The purpose of the report is to provide information to Council on the progress and status of #thebigwaterstory programme.

 

Committee Resolution  

Moved:       Mayor Alex Walker

Seconded:  Cr Gerard Minehan

That, having considered all matters raised in the report, the report be noted.

Carried

 

·    Cr Sharp offered congratulations around supplier mangement and engagement for these projects.

 

·    Cr Minehan sought clarification about timeframes for consents from the regional council. 

 

·    Cr Annand sought clarification about what the indicators were for bore locations.  Mr De Klerk confirmed that locations were dictated by seismic testing and locations of surrounding bores.

 

·    Cr Aitken sought clarification about the impact that establishing new bores would have on existing bores.  It was confirmed that testing would be done to ensure that there was not an impact.  If if was determined that there was an impact, officers would explore other options.

 

·    Mayor Walker asked whether the required resourcing would likely have implications for the annual plan.  It was confirmed that this has been accounted for.

 

·    Cr Tennent sought clarification of the consent process for farm supply in terms of the taking of water.  Mr De Klerk clarified that initially consent would be sought for a test bore.  Once it was determined that a test bore was fruitful and that testing was satisfactory, consent would then be sought for a production bore and associated water take.

 

·    Mayor Walker noted the recent discussion at the regional council meeting around delivery of infrastructure projects in the district.  It was tabled that there was confidence in the processes officers were following for programme delivery.

 

7            Date of Next Meeting

Committee Resolution  

Moved:       Cr David Tennent

Seconded:  Cr Tim Chote

THAT the next meeting of the Central Hawke's Bay District Council be held on 28 March 2019.

 

Carried

 

8            Time of Closure

 

The Meeting closed at 10.10am.

 

The minutes of this meeting were confirmed at the Finance and Planning Committee Meeting held on 28 March 2019.

 

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

CHAIRPERSON

 


Finance and Planning Committee Meeting Agenda                                                      28 March 2019

 

 

 

5            Report Section

5.1         Finance and Planning Committee - Work Programme Update

File Number:           COU-1410

Author:                    Monique Davidson, Chief Executive

Authoriser:             Monique Davidson, Chief Executive

Attachments:          Nil

 

PURPOSE

The purpose of this report is to provide an update to the Finance and Planning Committee on the key priorities as identified in the Terms of Reference and work programme for the committee.

 

Recommendation

That, having considered all matters raised in the report, the report be noted.

 

significance and engagement

This report is provided for information purposes only and has been assessed as being of some importance.

DISCUSSION

The role of the Finance and Planning Committee is to assist Council to discharge its responsibilities for:

 

•        Preparation and promotion of key planning documents including the Long Term Plan, Annual Plan and District Plan

•        Assess and progress current and future projects

•        Policy review and development relevant to finance, planning and infrastructure

 

Specific responsibilities include:

 

•        Discussion and preparation of the Annual Plan

•        Discussion and preparation of the Long Term Plan

•        Discussion and preparation of the District Plan

•        Approval of appropriate draft strategies, plans and policies for public consultation

•        Recommend appropriate strategies plans and policies to council for adoption

•        Council owned infrastructure

•        Finance policies

•        Infrastructure policies

 

The purpose of this report is to provide a regular update on key areas of focus for the Finance and Planning Committee.

 

Annual Plan 2019/20

The annual plan process focuses on year-to-year budgets. Councils prepare an annual plan in each of the two years between LTP reviews, and it sets out what the council plans to do in the next 12 months to move towards achieving its goals.

The Annual Plan Consultation Document was adopted by Council on 28 February 2019 and the consultation period began on the 18 March 2019. The consultation period closes on the 12 April 2019. A number of Have Your Say meetings have been scheduled during the consultation period and the supporting information is available on the website, at the libraries and at the Council office.

 

Have Your Say Meetings

Where

Date

Location

Waipukurau

27 March

Waipukurau Memorial Hall, River Terrace

Elsthorpe/Omakerei

28 March

Elsthorpe Hall, Kenderdine Road

Otane

1 April

Otane Hall, Higginson Street

Porangahau

2 April

Porangahau Hall, Abercromby St

Takapau

3 April

Takapau Hall, 37 Charlotte Street

Tikokino/Ongaonga

8 April

Tikokino Hall, Owen Street

Waipawa

9 April

CHB Municipal Theatre, 18 Kenilworth Road

 

The hearing of Submissions is scheduled for 9 May 2019 and deliberations are on 23 May 2019, with the final adoption of the Annual Plan 2019/2020 scheduled for 20th June 2019.

 

District Plan

 

The District Plan Sub-committee met on February 26th to consider issues, objectives and policies for the new Landscape provisions of the draft and met again yesterday, 27th March, to consider the introduction of rules relating to the Landscape provisions in the draft.  Adopting and integrating the landscape provisions as part of the natural Environment Chapter effectively finalizes the completion of the draft and the Sub-committee meet again on April 9th to adopt this final chapter of the Plan.

The completed draft will then be presented to Council on April 10th for adoption.  A workshop for Council on April 10th has also been arranged to present the District Plan Communication Strategy to elected members.  This presentation will provide information about the roll out of the draft to the CHB community and when and where public meetings on the plan will be held and how elected members can participate at these meetings.  Information packs explaining key messages and frequently asked question will be provided to Councilors at the workshop. 

Once the Plan is adopted on April 10th officers will arrange a meeting with key stakeholders, (e.g., Hawkes Bay Regional Council, Department of Conservation and Federated Farmers NZ) to explain the new provisions relating to significant natural areas and outstanding landscapes in the rural zone.  Letters will also be sent to property owners with these special areas on their land introducing the review and inviting them to meetings in the community so that Council can share information about the new provisions in the plan and also hear from landowners and receive their feedback on this issue. 

The progress with the draft and meeting key milestones means the draft remains on schedule for release to the public on June 3rd.

 

External Funding Strategy

On the 14th March a Draft External Funding Strategy was presented to Council for feedback. Elected Members provided guidance, Officers will now made some minor amendments to the Draft External Funding Strategy before been presented on the 10th April for Council to consider. Once adopted the Finance and Planning Committee will be updated on implementation progress.

 

 

 

Rates Review

As part of the Financing and Planning Committee meeting, a report to adopt the scope and timing of the Rates Review has been tabled for consideration by the Committee.

 

Key items for the Finance and Planning Committee work programme in the coming months are:

-     Completion of External Funding Strategy

-     Completion of Annual Plan 2019/2020

-     Progression of Rates Review

-     Progress of District Plan Review

Financial and Resourcing Implications

There are no financial or resourcing implications highlighted in this report.

Implications ASSESSMENT

This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002.  Specifically:

·          Council staff have delegated authority for any decisions made;

·          Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;

·          Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;

·          Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;

·          Any decisions made are consistent with the Council's plans and policies; and

·          No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

 

Recommendation

That, having considered all matters raised in the report, the report be noted.

 

 


5.2         Adoption of the Rating Review Scope and Timing

File Number:           COU-1410

Author:                    Bronda Smith, Group Manager, Corporate Support and Services

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       Rates Review Process  

 

PURPOSE

The matter for consideration by the Council is the adoption of the Rating Review Scope and Timeline

 

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a)         That the Rating Review Scope and timing be adopted.

 

 

 

compliance

 

Significance

This matter is assessed as being of some importance

Options

This report identifies and assesses the following reasonably practicable options for addressing the matter:

 

1.   That the Rating Review Scope and Timing be adopted.

 

2.   That the Rating Review Scope and Timing not be adopted and officers are given guidance to the changes required.

 

Affected persons

The persons who are affected by or interested in this matter the officers, Elected Members and the wider community of Central Hawke’s Bay

Recommendation

This report recommends option 1 for addressing the matter.

Long-Term Plan /
Annual Plan Implications

None

Significant
Policy and Plan Inconsistencies

None

BACKGROUND

A formal Rating Review was last conducted in late 2008 and applied to the Revenue and Financing Policy and Funding Impact Statement as part of the 2009/10 financial year. Since this time Council has made minor changes to the Revenue and Financing Policy with a move to more private funding for activities that are considered to have a higher individual benefit.

As part of the Long Term Plan Consultation, Council considered the proposal to change the funding for drinking water and wastewater and to include a District Wide Targeted Rate set on a uniform base that would be paid by all ratepayers in the district whether or not you are connected to the network. As part of the deliberations, Council resolved the following:

Retain the current funding for drinking water and wastewater with targeted rates for those connected to the network and initiate a full Rating Review only after all the information is gathered and known about the extent of the CHB drinking water and wastewater future expenditure.

Based on the above resolution and the time taken to conduct a Rating Review, officers have reviewed the scope and timing of the Rating Review.

 

scope and timing

There are generally two types of rating reviews:

•        A first principles review; and

•        An amendment review.

 

First principles review

A first principles review happens when the evidence or perception is that the current rating allocation model is not appropriate.

A first principles review may arise because there:

1.   has not been a full review of rates and /or Revenue & financing policy for a considerable length of time;

2.   is significant change in rating valuations;

3.   is change in focus, direction or objectives of Council;

4.   is community dissatisfaction with existing rates or rating methods;

5.   is a significant change in levels of service for a number of activities or a change to the regulations or required standard;

6.   is poor understanding of how rates are allocated;

7.   is a shift in land use;

8.   is loss or gain of a major industry;

9.   is population change;

10. is financial necessity; or

11. a natural disaster.

Of the 11 items listed above, the first 6 are applicable to the Council, therefore a first principles approach is recommended to be used in the rates review.

A first principles review goes back to basics and considers all the required background information as if there were no previous funding decisions or existing funding related policies.

A rates or funding review needs to following the steps below, otherwise there is a risk that the Council’s final decision could be over turned following the election.  It is expected that this process can take between 12 and 18 months.

 

Amendment reviews

An amendment review happens when a council wants to make one or more changes within the existing framework.

Typically, these reviews will happen to:

•        introduce a new rate;

•        modify a rate;

•        remove a rate;

•        change differentials.

These reviews may change the Funding Needs Analysis, the Revenue and Financing Policy and/or the Remission and Postponement Policies in a small way.

An amendment review is administratively easier to do and only involves specific changes. Depending on the change many of the steps above need to be replicated to a lesser scale depending on the changes made.

While an amendment may be an option, there is a significant risk that while attempting to resolve one issue, other issues may be created as an unintended consequence as a rating review is only redistribution of the total rate requirement.  A rate review will always result will in some ratepayers paying more with others paying less.

 

Suggested Process and High Level Timetable

As discussed above, it is important to note that if a rates or funding review is consulted on as part of the Long-Term Plan process, then this can “high jack” the LTP process.  As this review process takes between 12 to 18 months, the most appropriate time to commence the process is now, with the aim to consult any changes as part of the Annual Plan 2020/21.

There are two options for how this can be achieved.  Council could defer the start of the process until after the 2019 election, however this is likely to result either in uncompleted process to consult as part of the 2020/21 Annual Plan or being the review before the election and complete the process after the election in time to consult in conjunction with the Annual plan 2020/21.

As the recommend option is to commence the process now with the aim to consult any changes as part of the Annual Plan 2020/21, set out below are the required steps that can be completed prior to the election and those steps that are required to be completed post-election.

 

Steps required

Details

Date

Before election

 

Session one

1.   Set out the process required and how the Council will consider section 101 (3) (a)

2.   Agree the template that will be used to assess benefits for each activity

3.   Use an activity that has most of five criteria of 101 (3) (a) that need to be considered

4.   Agree the order that activities will be considered

02/05/19

Extra workshop

Session two

Consider selected activities

16/05/19

Extra workshop

Session three

Consider selected activities

05/06/19

Session four

Consider selected activities

20/06/19

Session five

Consider selected activities

If Required

Session

Summarise the results of the allocation

01/08/19

 

After the election

 

Briefing with new Council

Brief on allocations made to date

Confirm or modify the allocation

TBC

Session

Consider the tools (e.g. Types of rates, debt and fees) that reflect the benefits in step one

TBC

Model the tools

Impacts of rates on ratepayers

TBC

Session

Consider the results of the models

TBC

Re model tools

Impacts of rates on ratepayers

TBC

Session

Confirm tools to be used

TBC

Develop consultation process

Report to Council

TBC

Draft Revenue & financing policy and supporting rating policies

Report to Council

TBC

Draft the proposal and supporting information for consultation

Report to Council

TBC

 

SIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as of some importance because as the Rating Review scope and timing has an impact on the rates levied on an annual basis.

OPTIONS

The following analysis applies to all options.

 

a)         Financial and Resourcing Implications

The financial and resourcing implications of both options have been included in current budgets.

 

b)         Alignment to Project Thrive and Community Outcomes

All options align with Project Thrive and will allow us to achieve our key community outcomes.

 

c)         Statutory Responsibilities

Section 101(3) of the Local Government Act 2002 needs to be complied with in setting the funding needs of the local authority.

 

d)         Consistency with Policies and Plans

This report is consistent with all policies and plans

 

e)         Participation by Māori

The scope and timing of the Rating Review has not been identified as requiring specific engagement with Maori.

 

f)          Community Views and Preferences

The community views and preferences were gathered as part of the Long Term Plan 2018-28 and the resolution during the Long Term Plan is a reflection of consultation.

 

 

Option 1         That the Rating Review Scope and Timing be adopted

 

a)         Risk Analysis

 

The scope of this option takes into account the possibility of the rating review having unintended consequences if it was performed as an amendment review rather than a full review. The timing of the option has also considered the election process and the impact this may have on the process.

 

b)         Advantages and Disadvantages

The advantages include the ability for the scope and timing to be completed within the time required for the consultation to occur during the Annual Plan 2020/21 consultation.

The disadvantages include the length of time a full rates review takes and the resourcing required from both Elected Members and officers.

Option 2         That the Rating Review Scope and Timing not be adopted and officers are given guidance to the changes required.

 

a)         Risk Analysis

Delaying the start of the rating review may affect the Council’s ability to complete the review in time for the consultation of the outcomes as part of the Annual Plan 2020/21 Consultation. If the scope of the review was reduced to an Amendment Review there is a possibility that there are unintended consequences of changing the incidence of rating.

 

b)         Advantages and Disadvantages

The advantages include the possible reduction in length of time a rates review may take and the resourcing required from both Elected Members and officers.

The disadvantages include the effect this may have on the ability for the scope and timing to be completed within the time required for the consultation to occur during the Annual Plan 2020/21 consultation

 

RECOMMENDATION FOR CONSIDERATION

That having considered all matters raised in the report:

a)      That the Rating Review Scope and Timing be adopted

 


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5.3         Draft Dust Suppression Policy

File Number:           COU1-1410

Author:                    Josh Lloyd, Group Manager - Community Infrastructure and Development

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       Dust Supression Policy

2.       Dust Supression Guidelines  

 

PURPOSE

The matter for consideration by the Council is the adoption of the draft Dust Suppression Policy.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a)         The Finance and Planning Committee adopt the Draft Dust Suppression Policy.

 

 

 

compliance

 

Significance

This matter is assessed as being of some importance

Options

This report identifies and assesses the following reasonably practicable options for addressing the matter:

 

1.       That the Finance and Planning Committee adopt the Draft Dust Suppression Policy.

 

2.       That the Finance and Planning Committee do not adopt the Draft Dust Suppression Policy and request further work on the policy.

Affected persons

The persons who are affected by or interested in this matter are Council Officers (particularly those managing contracts in the Land Transport Team), Contractors, Ratepayers (particularly those in rural areas).

Recommendation

This report recommends Option 1 for addressing the matter.

Long-Term Plan /
Annual Plan Implications

No

Significant
Policy and Plan Inconsistencies

Yes – the draft Dust Suppression Policy replaces existing policy reference number 3.3 (Dust Suppression Policy 2014).

BACKGROUND

Council own and operate a 403km network of unsealed roads across the district that are maintained and serviced to a standard in line with national ONRC guidelines. NZTA provide funding assistance to operational and capital expenditure on these roads as per programmes of investment that are created by Council, based on risk and aligned with NZTA criteria.

 

Dust is one of several issues that Council manages on its unsealed road network and in the past two years has invested in trials of new and existing products to mitigate dust levels in problem areas. NZTA provide a mechanism for Council’s to obtain funding assistance for dust suppression (either through sealing or other means), but strict criteria need to be met. Council are confident through experience that none of our roads meet the NZTA criteria for dust-related funding assistance with this primarily due to low population densities on unsealed roads and low traffic volumes.

 

Due primarily to a lack of funding support, Council in 2014 adopted a simple Dust Suppression Policy (the Policy) that provided residents the right to apply to Council to seal 200m sections of road in front of their properties at their cost.

Under this policy, Council has not invested any of its own funds in sealing roads for the specific purpose of dust suppression.

 

In 2018, due to an increase in public concern about dust in certain areas, Council requested the creation of a new policy that allowed for Council to invest in sealing roads to control dust where sensible criteria were met.

 

Appended to this report are a revised Dust Suppression Policy and a set of guidelines that Council intend to use to evaluate areas for sealing to control dust. Importantly, the revised Policy allows for Council to consider who will bear the financial and physical responsibility for carrying out works in line with a set of guidelines based on transparent and sensible criteria.

SIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as of some importance because the Council has received past enquiries into the policy for sealing new roads and Councils investment in these activities.

OPTIONS

Option 1    That the Finance and Planning Committee adopt the Draft Dust Suppression Policy

a)         Financial and Resourcing Implications

By adopting the draft Policy and the supporting guidelines, Council will create room to invest in sealing roads to control dust and the potential to contribute resources or funds to do so. The Policy and guidelines are not in explicit in how or when Council will contribute to works. This means that financial (budget) implications can be managed in any given year and Council can/will only invest where benefits outweigh costs and investment can be prioritised.

Resourcing to administer the Policy is considered to have no additional impact on Council Officers who are already dealing with a number of known problem dust areas and engaging with affected residents, trialling alternate methods etc. The ability to seal some sections of road may reduce the workload on Council officers in the medium to long term as repeat problem areas are permanently resolved.

 

b)         Risk Analysis

The primary risk with adopting the draft Policy is potential ambiguity or miscommunication of the policy drivers and intent. That is, Council will need to manage and clearly communicate what the policy means to residents so that we do not create sentiment in the community that all roads are going to be sealed.

 

c)         Alignment to Project THRIVE and Community Outcomes

Adopting the draft Policy is considered to directly support the objectives from Project THRIVE and our Community Outcomes in allowing Council the ability to address known long-running issues on the infrastructure network. Thinking Smarter, Doing it Together and Durable Infrastructure are all drivers supported by the draft policy.

 

d)         Statutory Responsibilities

Council is not mandated under any statute to seal roads to control dust and believes other valid options do exist to control dust where it is a genuine problem. The draft policy however simply allows Council another option to control dust (through sealing) where it makes sense.

 

e)         Consistency with Policies and Plans

The draft Policy supersedes/replaces the existing Dust Suppression Policy. No additional funding has been allocated through the Long Term or Annual Plans to invest in sealing. The draft Policy and supporting guidelines allow for a reinvestment of funds if and where needed.

 

f)          Participation by Māori

Maori have not been specifically engaged on this topic or considered under this option.

 

g)         Community Views and Preferences

Council has engaged with affected residents for many years and is aware of the issues caused by dust in a handful of areas. Officers consider that the draft Policy directly enables Council to progress with what will be the best value option in some areas (sealing).

 

h)         Advantages and Disadvantages

The primary advantages of adopting the draft Policy are:

·    Simplicity and ease to roll out. The draft Policy allows Council room to invest but does not mandate or control exactly when and where, instead it refers to simple and transparent guidelines for decision making at an operational level and to prioritise against other investment options.

·    Alignment with community expectations and need. Officers have worked with affected residents for a long time and consider that sealing may be the best option in some cases. The draft policy allows this to be considered amongst other options.

·    Affordability. The draft policy will allow Officers to consider seal extensions where affordable only and when they are demonstrated as value for money against other options and as prioritised within the total land transport investment programme. Alternate funding sources (NZTA or Private) are considered preferable under the draft policy and guidelines.

The primary disadvantages of adopting the draft policy are:

·    The potential for residents to question Council’s decision making approach, particularly with regard to funding contribution for seal extension. This is not spelt out in the policy as it is considered an operational process. Instead it is guided by clear and rigorous guidelines that could be communicated to the public.

Option 2         That the Finance and Planning Committee do not adopt the Draft Dust Suppression Policy and request further work on the Policy.

a)         Financial and Resourcing Implications

It is difficult to consider the financial implications of this option as they will be dependent on whatever revisions to the draft policy are required. Any changes that mandate Council investment or directly set out where Council will invest in sealing will need to be considered within the complete Land Transport investment programme that currently has no allocation for seal extension.

Additional officer time will be required to re-draft the policy but this is considered negligible. Any changes made the draft policy will need to consider resource requirements to implement the Policy.

 

b)         Risk Analysis

The primary risk with this option is the extension in time before a policy is implemented. This is not considered a major but will need to be communicated with affected residents who have been watching progress on this matter closely.

 

c)         Alignment to Project THRIVE and Community Outcomes

Any re-drafted policy will need to ensure continued alignment with project THRIVE, specifically in addressing Thinking Smarter, Doing it Together and Durable Infrastructure.

 

d)         Statutory Responsibilities

It is unlikely any re-drafted policy would or could be misaligned with statutory requirements due to the limited amount of statute for dust suppression.

 

e)         Consistency with Policies and Plans

No investment has been set out in the Long Term or Annual Plans for sealing roads to control dust. Any re-drafted policy will need to consider available funding sources.

f)          Participation by Māori

Maori have not been specifically engaged on this topic and it is not considered likely that Maori would need to be specifically engaged on any future revision or re-drafting of the policy.

 

g)         Community Views and Preferences

Any re-drafted policy will need to ensure commitment to addressing the known needs of affected residents/communities in controlling dust. Council has a good working knowledge of problem areas and the effectiveness of available solutions. It is considered that sealing is likely to be the best solution in some cases.

 

h)         Advantages and Disadvantages

The primary advantages of not adopting the draft policy are:

·    The ability to take more time and consider more elements and drivers in the policy

The primary disadvantages of not adopting the draft policy are:

·    The delay in time to produce a new policy

 

 

Recommended Option

This report recommends option 1 – adopt the draft Dust Suppression Policy for addressing the matter.

 

NEXT STEPS

Should the draft policy be adopted, officers will formalise it as a controlled document and begin working internally to assess known sites against the guidelines. This will then lead to an operational review of available budgets and a potential plan to invest in the 2019/20 construction season.

 

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a)         The Finance and Planning Committee adopt the Draft Dust Suppression Policy.

.  


Finance and Planning Committee Meeting Agenda                                                        28 March 2019

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Finance and Planning Committee Meeting Agenda                                                      28 March 2019

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5.4         Land Transport Programme Update

File Number:           COU1-1410

Author:                    Josh Lloyd, Group Manager - Community Infrastructure and Development

Authoriser:             Monique Davidson, Chief Executive

Attachments:          Nil

 

PURPOSE

The purpose of this report is to provide the Finance and Planning Committee with an update on the Land transport Capital and Maintenance programmes.

 

Recommendation

That, having considered all matters raised in the report, the report be noted.

 

significance and engagement

This report is provided for information purposes only and has been assessed as being of some importance.

DISCUSSION

Council’s annual capital and maintenance programmes of work for Land Transport total in excess of $11M and comprise Councils single largest area of investment (by activity). Officers, supported by Professional Service contracted consultants have routinely worked to deliver value on the programmes and ensure their completion each year. Reports are regularly brought to Council tracking financial progress of the programmes of work and in 2018/19 have shown actual expenditure falling below budgets and forecasts. A combination of extreme weather events diverting internal and contracting resources, as well as a change in Councils Professional Services provider have meant delays in the programme that have been prioritised based on risk.

The remainder of this report provides detail on key components of the Land Transport programme, the likelihood of completing the planned work in the financial year and the impact of carrying work forward.

Maintenance – no deferral/carry forward.

For the most part, the maintenance programme is delivered via a single contract held by Downer. The works total on average $4.2m per year and comprise a range of planned and reactive activities including:

·    Grading

·    Unsealed pavement maintenance (including pre-seal repairs)

·    Routine Drainage maintenance (culvert cleaning and drain re-profiling) and some drainage renewals

·    Structures Maintenance

·    Traffic Services Maintenance (sign installation and maintenance)

·    Street sweeping

·    Initial response to emergency events

·    Responding to customer requests

The maintenance programme will be completed with the exception of Activity 140 (Minor Events). This is an activity which is funded to effect clean-up of small weather events under $100,000 that do not qualify for Emergency Event funding. As such the expenditure is completely weather dependent. There is currently $111,000 remaining in the fund. There may be budget adjustments between maintenance activities based on network requirements but the overall budget will not be expended.

 

Re-Seals – no deferral/carry forward.

The re-seal programme is delivered through a single contract held by Higgins and comprises a list of roads requiring re-seal each year based on network information and condition analysis. The programme averages $1.5M per year and has been completed in full for the 2018/19 year with crews making excellent progress leading up to Christmas supported by good weather.

 

Area Wide Pavement Treatments – no deferral/carry forward.

The AWPT programme comprises large projects to renew the surface and sub-surface of identified routes. The projects are taken to market and this year have been awarded as two separate contracts to Higgins. Planned works are set for Wimbledon Road and are programmed to commence in March 2019. The total value of the projects combined is $1.1M and there is no expectation of carry forward.

 

Footpaths – no deferral/carry forward.

Council invests in footpaths through maintenance, renewals and (beginning in 2019) the construction of new footpaths. The complete programme is valued at $600k. The maintenance and renewal programmes are underway and a “new footpath” construction contract is being prepared and will be put to market in April. This work can be accomplished throughout the year in most weather patterns. The contract being put to market encompasses 5 sections of new footpath for construction in 2019 as have been prioritised using Council’s prioritisation tool.

 

Structural Repairs - $1.1M deferral/carry forward.

Structural repairs include planned works to upgrade and repair bridges, retaining walls and large culverts. This work is identified through asset inspections and condition assessment and is prioritised based on risk. A total value of $1.4M is routinely allocated to this programme of work and is designed by engineering consultants and taken to market for construction.

Due to the series of extreme weather events in 2018, construction crews have indicated an inability to complete structural work. Council’s in-house Professional Services provider (Stantec) have also been unable to dedicate resource to the detailed design elements of bridge work due to their required oversight of the storm repairs.

$1,099,000 (estimated) of work will be carried into 2019/20. Stantec have evaluated all sites identified for work, and while none can be permanently or long-term deferred, all are able to be delayed by a number of months without significantly increasing risk.

 

Minor Safety Improvements – no deferral/carry forward.

Minor Safety Improvements include improvements to intersections, safety near schools and minor road widening. This work is programmed in advance based on network inspections, statistics and information brought to Council by road users. The work programme is $300k per year and all is expected to be completed this financial year.

 

 

 

NZTA Implications and Considerations.

NZTA agree to a three-year programme in line with the LTP cycle. 2018/19 is the first year in this programme and discussions with NZTA throughout the year (particularly following storm events) have provided confidence that NZTA are satisfied with our approach and will carry forward their contribution to our programme.

 

Financial and Resourcing Implications

Carrying forward funds from 2018/19 into 2019/20 to complete the planned work programmes will not have adverse effects on budgets. The assumptions detailed in this report about project and programme progress and forecasts have been built into the latest reforecasting exercise and modelled accordingly for the remainder of the year. Council do not intend to alter any programmes of work and the allocated funds will be spent just some 6 months later than first budgeted. Council has confidence that NZTA funding will not be impacted.

Implications ASSESSMENT

This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002.  Specifically:

·          Council staff have delegated authority for any decisions made;

·          Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;

·          Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;

·          Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;

·          Any decisions made are consistent with the Council's plans and policies; and

·          No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

Next Steps

Officers will continue to work to ensure the completion of already programmed work and will progress designs and procurement for the structural works that are scheduled to be carried forward.    

 

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a)         The Finance and Planning Committee adopt the Draft Dust Suppression Policy.


Finance and Planning Committee Meeting Agenda                                                      28 March 2019

6            Public Excluded   

RESOLUTION TO EXCLUDE THE PUBLIC

Recommendation

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

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

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

6.1 - Public Excluded  Minutes of the District Plan Subcommittee

s7(2)(c)(ii) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

 

 

 

 

 

7            Date of Next Meeting

Recommendation

THAT the next meeting of the Finance and Planning Committee be held on 15 Augustnd Planning Commitee 2019.

8            Time of Closure