Finance and Infrastructure Committee Meeting Agenda

Thursday, 22 April 2021

9.00am

Council Chamber, 28-32 Ruataniwha Street, Waipawa

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

Order Of Business

1          Karakia. 3

2          Apologies. 3

3          Declarations of Conflicts of Interest 3

4          Standing Orders. 3

5          Confirmation of Minutes. 3

6          Report Section. 13

6.1            Resolution Monitoring Report 13

6.2            Finance and Infrastructure Committee Monitoring Report 18

6.3            Roading Control Authority Performance Report 22

6.4            Review of the Adverse Events and Catastrophic Events Funds. 31

6.5            Key Project Status Report - Porangahau to Wimbledon Roads PGF Programme. 43

6.6            Key Project Status Report - 3 Waters Tranche One Stimulus. 62

6.7            Elected Members Expenses for January 2020 to February 2021. 86

6.8            Whenua Māori Rating Amendment Bill 88

6.9            Nga Ara Tipuna ki Tamatea - Project Update. 90

6.10          Financial Reporting for the eight months to February 2021. 114

7          Public Excluded. 130

7.1            Resolution Monitoring Report 130

7.2            Water Rates Remission due to water leak. 130

8          Date of Next Meeting. 130

9          Time of Closure. 130

 

 


1            Karakia

2            Apologies

3            Declarations of Conflicts of Interest

4            Standing Orders

RECOMMENDATION

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

·      21.2 Time limits on speakers

·      21.5 Members may speak only once

·      21.6 Limits on number of speakers

And that Option C under section 22 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.

 

5            Confirmation of Minutes

Finance and Infrastructure Committee Meeting - 25 February 2021

 

Recommendation

That the minutes of the Finance and Infrastructure Committee Meeting held on 25 February 2021 as circulated, be confirmed as true and correct.

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

   MINUTES OF Central HAwkes Bay District Council
Finance and infrastructure Committee Meeting
HELD AT THE Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON Thursday, 25 February 2021 AT 9.00am

 

PRESENT:              Mayor Alex Walker

Cr Tim Aitken

Deputy Mayor Kelly Annand

Cr Gerard Minehan

Cr Brent Muggeridge (Chairperson)

Dr Roger Maaka

Cr Jerry Greer

Cr Kate Taylor (zoom)

Cr Exham Wichman

Cr Pip Burne

IN ATTENDANCE:

Monique Davidson (Chief Executive)

Nicola Bousfield (People and Business Enablement Manager)

Brent Chamberlain (Chief Financial Officer)

Kim Parker (Communications & Engagement Manager)

Darren de Klerk (Director Projects & Programmes)

1            Apologies

NIL

2            Declarations of Conflicts of Interest

Nil

3            Standing Orders

 

Committee Resolution  

Moved:       Deputy Mayor Kelly Annand

Seconded:  Cr Gerard Minehan

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 mannerCarried

 

4            Confirmation of Minutes

Committee Resolution  

Moved:       Cr Jerry Greer

Seconded:  Cr Exham Wichman

That the minutes of the Finance and Infrastructure Committee Meeting held on 8 October 2020 as circulated, be confirmed as true and correct.

Carried

 

 

5            Report Section

6.1         Finance and Infrastructure Committee Monitoring Report

PURPOSE

The purpose of this report is to present to the Finance and Infrastructure Committee an update on key priorities.

 

 

Committee Resolution  

Moved:       Cr Tim Aitken

Seconded:  Cr Gerard Minehan

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

 

6.2         Resolution Monitoring Report

PURPOSE

The purpose of this report is to present to the Committee the Finance and Infrastructure Resolution Monitoring Report. This report seeks to ensure the Committee has visibility over work that is progressing, following resolutions from Council.

 

Committee Resolution  

Moved:       Cr Exham Wichman

Seconded:  Deputy Mayor Kelly Annand

PURPOSE

The purpose of this report is to present to the Committee the Finance and Infrastructure Resolution Monitoring Report. This report seeks to ensure the Committee has visibility over work that is progressing, following resolutions from Council.

Recommendation

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

 Carried

 

6.3         Funding Assistance Rate Rebate - NZTA

PURPOSE

The matter for consideration by the Committee is deciding where to apply the NZTA rebate of $279,973 refunded from a miscalculation of the funding assistance rate by NZTA.

 

Committee Resolution  

Moved:       Mayor Alex Walker

Seconded:  Cr Gerard Minehan

That having considered all matters raised in the report:

a)   That the Committee allocate the rebated funds of $279,973.00 to replenish the Adverse Events Contingency

Change Resolution: The committee allocate the rebated funds of $279,973.00 to be held in reserve while officers explore for leveraging additional funding within the priorities of the Land Transport strategic framework

Additional resolution: That officers prepare for the next Finance and Infrastructure meeting, a report on the status and replenishment of the special funds for Land Transport.

Carried

6.4         Adoption of Sustainable Water Management Plan

PURPOSE

The matter for consideration by the Council is to adopt the Sustainable Water Management Plan.

 

Committee Resolution  

Moved:       Cr Gerard Minehan

Seconded:  Cr Jerry Greer

That having considered all matters raised in the report:

a)         The Finance and Infrastructure Committee endorse and adopt the sustainable water management plan for implementation.

Carried

 

6.5         Preferred Option for Design and Construction of Kairakau Water Upgrade

PURPOSE

The matter for consideration by the Council is to provide Council with an update on the Kairakau Water System Upgrade and request approval from Council to progress with the options and recommendations developed following analysis of technical reviews, public and Iwi consultations.

 

Committee Resolution  

Moved:       Deputy Mayor Kelly Annand

Seconded:  Cr Pip Burne

That having considered all matters raised in the report:

a)   The Finance and Infrastructure Committee approve Option 1 to upgrade and construct a water treatment plant to meet DWSNZ and safeguard ongoing water supply.

b)   The Finance and Infrastructure Committee approve to locate the new treatment plant on land outlined in Scenario 2 – being to lease the existing Manawarakau Trust land neighbouring the existing spring and raw water storage

c)   The Finance and Infrastructure Committee approve to increase the project budget to $850,000 using existing waters budgets and/ or Tranche One – 3 Waters stimulus funding while ensuring no impact on rates.

d) That officers do additional work on the removal of the hardness in the water to meet community outcomes and report back to the Finance and Infrastructure Committee for consideration as part of the Long Term Plan 2021 – 2031

e) That Council continue to monitor changes in regulations and guidance from Taumata Arawai on the roof water supply

Carried

 

6.6         Waipukurau Second Water Supply - Project Update

PURPOSE

Further to the Finance and Infrastructure decision 8 October 2020, the matter for consideration by the Committee is to receive a progress update on the project and endorse continuation of developing the intended Option Four Blue Route (the Waipawa / Waipukurau Link) into land access, due diligence, landowner compensation negotiation and continued detailed design.  

 

Committee Resolution  

Moved:       Cr Tim Aitken

Seconded:  Cr Gerard Minehan

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

Carried

 

6.7         Key Project Status Report - BigWaterStory

 

 

Committee Resolution  

Moved:       Cr Gerard Minehan

Seconded:  Cr Exham Wichman

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

Carried

 

6.8         Key Project Status Report - BigWastewaterStory

PURPOSE

Following the conception of #thebigwaterstory, Council set about implementing the programme that makes up #thebigwaterstory. A programme manager was appointed and focus given to defining the projects that form the programme in greater detail.

The six wastewater plants form a significant programme of works themselves, and we have prudently decided to report on the progress of these six wastewater plants and their subsequent upgrades and re-consenting separately from #thebigwaterstory.

The purpose of this key project status report serves as an opportunity to formally report to elected members on the progress of each of the projects and their expected delivery against time, scope, budget and quality standards against the larger programme objectives.

 

Committee Resolution  

Moved:       Mayor Alex Walker

Seconded:  Cr Exham Wichman

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

Carried

 

 

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

1.1 - Electricity Supply Contract

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)(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)

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

 

 

 

 

Committee Resolution

That Council moves out of Open Council into Closed Council. 

Moved:       Cr Exham Wichman

Seconded:  Cr Jerry Greer

 

Carried

 

 

6            Date of Next Meeting

Committee Resolution  

Moved:       Cr Tim Aitken

Seconded:  Cr Jerry Greer

THAT the next meeting of the Central Hawke's Bay District Council FINANCE AND INFRASTRUCTURE be held on 22 April 2021.

Carried

 

7            Time of Closure

 

The Meeting closed at 12.25PM

 

The minutes of this meeting were confirmed at the Finance and Infrastructure Committee Meeting held on 22 April 2021.

 

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

CHAIRPERSON

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

 

6            Report Section

6.1         Resolution Monitoring Report

File Number:           COU1-1410

Author:                    Monique Davidson, Chief Executive

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       Finance and Infrastructure Committee Resolution Monitoring Report April  

 

 

PURPOSE

The purpose of this report is to present to the Committee the Finance and Infrastructure Resolution Monitoring Report. This report seeks to ensure the Committee has visibility over work that is progressing, following resolutions from Council.

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 not significant.

DISCUSSION

The monitoring report is attached.

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

An updated Resolution Monitoring Report will be presented at the next Committee meeting on 17 June 2021.

RECOMMENDATION 

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

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

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Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.2         Finance and Infrastructure Committee Monitoring Report

File Number:           COU1-1410

Author:                    Monique Davidson, Chief Executive

Authoriser:             Monique Davidson, Chief Executive

Attachments:          Nil

 

PURPOSE

The purpose of this report is to present to the Finance and Infrastructure Committee an update on key priorities.

 

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 not significant.

BACKGROUND

Following the 2019 Triennial Local Body Elections, Council took the time to reset Council priorities, and agree on priorities for Committees.

The role of the Finance and Infrastructure Committee is:

·      To assist Council to oversee financial and non-financial performance, including the delivery of the Council’s Capital Programme.

·      To monitor Council activities and services performance against budget, Annual Plans, the Long Term Plan, Annual Reports and corporate and financial policies.

·      The Finance and Infrastructure Committee also receives enforcement and compliance performance activity reporting to ensure financial and non-financial performance oversight of its regulatory functions.

·      To provide governance oversight of Council’s operational programmes, services, activities and projects related to infrastructural assets.

·      To enable the progress of the Council’s operational activities, projects and services.

The Finance and Infrastructure Committee has delegations to:

·      Develop and adopt plans, projects and policies that advance the Council’s vision and goals in relation to its key Financial Strategy and Infrastructure Strategy while complying with the purpose of the Local Government.

·      Monitoring the financial and non-financial performance of the organisation with a particular emphasis on the delivery of the capital works programme. Implementation and effectiveness of strategies, plans and policies.

·      Specifically monitor and provide oversight of significant projects, including reviewing business cases and agreed on next steps of significant projects.

·      The Finance and Infrastructure Committee is responsible for assisting Council in its general overview of procurement and tender activity. The Committee will accept and consider tenders which exceed the Chief Executive’s delegated authority to approve, for projects approved by Council through an Annual Plan or Long Term Plan. The Committee will make a recommendation to Council on the outcome of a tender process for resolution when above delegations.

·      The Finance and Infrastructure Committee has delegation to approve or award contracts beyond the Chief Executive’s delegated authority within the parameters of approved AP/LTP Budgets up to $4 million.

·      To establish a special committee, working group or community forum as needed.

 

The monitoring report which provides an update on the key priorities of the committee is below:

DISCUSSION

 

Key Priority

Responsible Officer

Progress Update

Lead and monitor the Wastewater Treatment Plan projects for across Central Hawke’s Bay.

 

Darren de Klerk

On Track - A Specific Key Project Status Report will be included in June 2021 committee meeting.  

Monitor the implementation of #thebigwaterstory

 

Darren de Klerk

On Track - A Specific Key Project Status Report will be included in June 2021 committee meeting.  

Complete and lead the Rates Review

 

Brent Chamberlain

Completed - The committee have completed this work, following the adoption of the Revenue and Financing Policy in October 2020. The decisions from the Rates Review, will be implemented from 1 July 2021.  

Monitor the implementation and progress of Provincial Growth Fund projects.

 

Darren de Klerk

On Track - A Specific Key Project Status Report on this project is included in the agenda.  

 

Lead the review of the Financial Strategy and associated policies that input into the Long Term Plan 2021-2031.

Brent Chamberlain

Completed – Council have now adopted the Draft Financial Strategy for community consultation as part of the Draft Long Term Plan 2021 – 2031.  

Review the current Treasury Policy – Investment, Debt and Liability Management policies.

Brent Chamberlain

On Track – Council have now adopted the Draft Treasury for community consultation as part of the Draft Long Term Plan 2021 – 2031.  

However, Officers have been separately asked to review the investment component of this policy in late 2021, and in particular the revenue streams available to special/trust funds.

Monitor the implementation of the non-rateable income strategic framework.

Monique Davidson

On Track - Considerable effort continues to be given to the attraction of non-rateable income.  The COVID-19 context has provided considerable opportunity for Council in the acceleration of capital investment to act as an economic stimulus. Council are actively working with the government on seeking external funding to deliver on Council and community priorities. At the time of writing this report, key achievements that align with this framework include funding for Mayors Taskforce for Jobs pilot and beyond, redeployment capital packages, water reform and PGF projects. Government have recently announced the opening of the Tourism Infrastructure Fund, and Officers are turning attention to preparing applications for this fund.

 

Further work will continue over the coming months following the adoption of the Long Term Plan 2021 – 2031, to assess key policies that form part of the non-rateable income strategic framework.

Develop a Land Transport Strategic Framework and ensure governance input into the three-year business plan before NZTA submission.

Josh Lloyd

Completed - The Land Transport Strategic Framework has been adopted and has been interpreted into the Draft Asset Management Plans developed for the Long Term Plan 2021- 2031 and the three-year business case submitted to NZTA.

 

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

The Finance and Infrastructure Committee will receive an updated monitoring report on 17 June 2021.

 

RECOMMENDATION 

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

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.3         Roading Control Authority Performance Report

File Number:           COU1-1410

Author:                    Shawn McKinley, Land Transport Manager

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       REG RCA Report 19-20  

 

Recommendation

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

PURPOSE

The purpose of this report is to provide the Committee with the results of the 2019 – 2020 Road Controlling Authority (RCA) report created by the Road Efficiency Group (REG) prepared on behalf of LGNZ and NZTA

significance and engagement

This report is provided for information purposes only and has been assessed as not significant.

BACKGROUND

REG is a group that was formed by a partnership between LGNZ and NZTA to provide consistent levels to the road users, obtain better value for money and be able to measure progress towards those goals. One of the tools of this partnership has been this report which is shared across all RCA’s. The report is done annually and is a snapshot of various performance measures to indicate performance and improvements within the land transport sector each year. This is the second year the report has been produced and a few of the inputs have been changed which has had a negative impact on the report. These are being explored by the Land Transport team with REG and the producers of the report.

DISCUSSION

The report is being presented to the Committee to provide a better understanding of the District’s Land Transport performance against a range of factors including technical, financial, NZTA audits, council outcomes and safety. It also allows the Committee members the ability to graphically see how the Land Transport Department is performing against their peers. It creates an opportunity for the department to focus on where performance improvements can be made.

Summary:

1.   Responding to RFS’s is getting better but still room for improvement

2.   Audits are well in hand

3.   Safety results better than our peers

4.   Our planning quality is better than the national average

5.   Higher Smooth Travel Exposure higher, and roughness lower than our peers for the same expenditure

6.   Our ability in procurement is getting better

 

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

 

RECOMMENDATION 

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

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

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Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.4         Review of the Adverse Events and Catastrophic Events Funds

File Number:           COU1-1410

Author:                    Brent Chamberlain, Chief Financial Officer

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       Special Fund Accounts Policy  

 

PURPOSE

The matter for consideration by the Council is to review the Adverse Events and Catastrophic Events Funds.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a)         That Finance and Infrastructure Committee receives the report entitled “Review of the Adverse Events and Catastrophic Events Funds”.

b)         That the Committee agree to amend the policy by adjusting the size of the funds for inflation, making the adverse events fund $600,000, and the catastrophic events fund $2,400,000.

c)         The Committee agrees to transfer $500,000 from the catastrophic events fund to the adverse events fund.

d)         That the Committee apply the NZTA refund of $279,973 to the adverse events fund.

 

EXECUTIVE SUMMARY

At the February 2021 Finance and Infrastructure Committee Meeting considered what to do with a $279,973 refund received from NZTA. During the debate on this funding, the committee requested officers to review the Adverse Events and Catastrophic Events Fund Policies, and consider the adequacy of the reserve balances. Below is the resolution the Committee passed:

“The committee allocate the rebated funds of $279,973.00 to be held in reserve while officers explore for leveraging additional funding within the priorities of the Land Transport strategic framework.

That officers prepare for the next Finance and Infrastructure meeting, a report on the status and replenishment of the special funds for Land Transport.”

This report is the follow up to the above resolution.

BACKGROUND

The Adverse Events Contingency Fund and the Catastrophic Events Fund are both Special Funds and fall under the Special Funds Policy which was last reviewed in June 2020.

Currently the policy states that:

Adverse Events Contingency

To provide funds to assist with the repairs or to replace damaged Council assets in the event of an unforeseen, major, short duration, natural event. Adverse events include those that would not normally be covered by operational expenditure and those not covered by insurance. Each adverse event will be assessed on a case by case basis. In the case of an adverse roading event the New Zealand Transport Agency definition of an emergency will be used.

 

The value of the fund should be preserved by transfers from the appropriate operational rate so that a level of $500,000 is maintained and annually adjusted for inflation using the cost of construction index.

 

Catastrophic Events Fund

To provide funds for the financial protection of the district in the event of an unforeseen catastrophic natural event.

This event would be such that substantial damage occurred to the vital infrastructure of the district. Each catastrophic event will be assessed on a case by case basis.

There are three ways these funds may be used.

1.   The capital sum used to repair damage to infrastructure assets.

2.   The sum used to provide the “first cover” of an insurance policy for the districts infrastructural assets.

3.   The sum used as part or all of Council’s contribution to a proposed co-operative national emergency fund.

The value of this fund should be preserved by transfers from the appropriate operational rate so that a level of $2.0 million is maintained and annually adjusted for inflation using the cost of construction index.

NZTA Funding Submission Update

Council’s submitted funding request has gone through an initial moderation, along with the rest of the country. Waka Kotahi find themselves in a budgeted deficit of $250,000,000 nationally, predominantly due to lack of revenue through the covid lockdown, and all activity classes have been oversubscribed. They are working through how to bridge this gap and may not be able to fully fund our bid. Officers are hoping for an early signal in August 2021, with confirmation in November 2021. Both of Councils Waka Kotahi investment advisors have supported Councils budget request at the level Council has asked for.    

DISCUSSION

Looking back in Council archives, officers can confirm that the values of $0.5 million and $2.0 million contained in these policies was last adjusted in 2015. Between 2015 and 2021 New Zealand’s compounded construction inflation was 18%. This means in today’s dollars these figures should now be $0.59 million and $2.36 million.

NZTA (New Zealand Transport Authority) provides two different subsidies to Council’s to respond to events:

1.   Minor Events – Short Term weather events where the total spend to rectify is less than $100k. The standard 60% Funding Assistance Rate Applies.

2.   Emergency Events – Short Term Weather/Seismic Events where the total spend to rectify is greater than $100k. The standard 60% Funding Assistance Rate applies for the first 10% of your annual budget, and then increases by 20% after that.

Currently Council budgets for $300k pa for renewals to cover its 40% rate funding towards Minor Events. If the costs exceed the $300k then the Councils Adverse Events Contingency Fund is called on.

Council does not budget anything towards funding the Emergency Events and Councils Catastrophic Events Fund, but is drawn on in larger scale events to fund the 40% rate funding requirement.

In the last five years, officers can confirm that the Catastrophic Events Fund has not been called on and has grown to a balance of $2.9 million through the application of investment revenue applied to this fund.

Also over the last five years, the adverse events fund has been called on 3 times to repair roading networks after flooding events. In 2018 $244,556 was used, 2019 $128,581 used, and 2020 $262,838 used. Despite the application of investment revenue over these years this account has been eroded to a balance of $152,262 as of 28 February 2021.

 

The premise of the Catastrophic Events Fund is to cover the insurance excess for an event, and to provide seed funding to get the event response underway. Unlike the Adverse Events Fund which only relates to roading, the Catastrophic Fund covers all infrastructure.

Historically Council has had no formal way of replenishing these two funds except by:

1.   The application of investment income to these funds

2.   The application of unspent roading budget at year end to these funds

Obviously, the past three years these mechanisms have been insufficient for the Adverse Events Fund as its capital value had declined.

In the 2021-2031 Long Term Plan, recently consulted on, the Land Transport Activity has set aside $100,000 pa to replenish these funds (which is a new budgetary provision). However, based on the average use of the last three years, where Council has spent an average of $205,325 on flood reinstatements (in addition to their $300,000 operating budget), this too will be insufficient.

Also budgeted for in the 2021-2031 Long Term Plan, the Land Transport Activity has set aside $50,000 pa to fund Bridge Replacements. This $50,000 provision has been rated for since 2019 and currently has a balance of $103,122 as at 30th June 2020.

Recently Council has received an additional $279,973 of funding from NZTA (New Zealand Transport Authority) which is currently not assigned to a particular roading project. The use of this money was debated at the February 2021 Finance and Infrastructure Committee Meeting with one option considered was replenishing the Adverse Events Fund. This lead to discussion about the Special Funds Policy, and the review before you today. Ultimately the Committee resolved that:

The committee allocate the rebated funds of $279,973.00 to be held in reserve while officers explore for leveraging additional funding within the priorities of the Land Transport strategic framework.”

Officers have spoken to our similar sized, neighbouring Councils to find out what funds/policies they hold.

Waiora District Council holds an $800,000 Disaster Recovery Fund, but has no formal policy about the fund.

Tararua District Council holds a $1,500,000 Emergency Roading Fund. Historically this fund was larger but this has been depleted in recent years. They have been impacted in the last three years by the same weather events Central Hawkes Bay District Council was impacted by.

They currently budget for $1,000,000 pa for roading events but have found this inadequate and are consulting in their Long Term Plan (LTP) on raising this to $1,600,000. Below is an extract from their draft LTP consultation document:

 

Based on recent history, current Council budgets, and what neighbouring Councils are doing in this space, Officers believes Council needs to consider the following:

1.   The adequacy of existing operating budgets to respond to events

2.   The adequacy of the fund sizes

3.   The method of replenishing the funds if they are called upon

4.   What to do with the NZTA refund of $279,973

 

The adequacy of existing operating budgets to respond to events

Based on recent history the $300,000 set aside in the budget for responding to “minor events” has been exceeded by $205,325 per year for the last three years, meaning the “adverse events fund has slowly been drained to its present value of $152,262.

Even with the additional $100,000 pa budgeted in the LTP to replenish the fund the budget is likely to be inadequate.

The adequacy of the fund sizes

Due to inflation, just to maintain existing buying power, the funds should be increased to $600,000 (Adverse Events Fund) and $2,400,000 (Catastrophic Events Fund).

Currently the Adverse Events Fund has balance of $152,262 meaning it is short of the $600,000 target by approximately $447,738. Meanwhile the Catastrophic Events fund holds $2,903,090 meaning it is overfunded by $503,090 (assuming Council is happy with the inflated target of $2,400,000).

Officers therefore recommend that $500,000 be transferred from the Catastrophic Events Fund to the Adverse Events Fund to bring both funds back into line with policy.

Officers also recommend that the policy amounts be updated to reflect the inflated values of $600,000 (Adverse Events Fund) and $2,400,000 (Catastrophic Events Fund).

The method of replenishing the funds if they are called upon

Currently the only method of replenishing the funds is through interest income earnt on the balances of the reserve. Unfortunately, in today’s low interest environment term deposits are only earning 0.5%-0.8% (based on Councils recent deposits).

This would mean a $600,000 adverse events fund would only receive $3,000 of replenishment a year, and the catastrophic fund of $2,400,000 would receive $120,000 pa.

This would be insufficient to inflation proof the funds, let along replenish them after use.

It is for this reason that officers have provided an additional budgetary provision of $100,000 in the Long Term Plan.

What to do with the NZTA refund of $279,973

Due to the likely inadequacies identified in both the operating budget for minor events, and the lack of investment income to inflation proof and replenish the funds if they are called upon, Officers recommend that the NZTA refund also be applied to the Adverse Events Fund. This would mean the fund would increase to $932,235 (the current $152,262, plus the $500,000 transfer, plus the $279,973 NZTA refund). This would give Council sufficient headroom for the next three years until the 2024 LTP when Council can again review these funds, and put some additional budgetary provisions to ensure that the funds have a more permanent funding mechanism.

It is important to remember that the Adverse Events Fund is to be used to fund Council’s 40% of roading reinstatement post an adverse event. NZTA in return will match this with a further 60% subsidy, so this $279,973 transfer to the reserve will allow $699,932 of reinstatement to occur.

Officers have looked at other alternatives for this money. They include funding projects such as walking & cycling improvements, speed management plan (review), road safety action plans.

Each of these have merit. Council already has sufficient budgets over the next 3 years to maintain a consistent improvement in speed management plans and road safety action plans. Walking and Cycling has no funding but Council has little room within our communities to create new cycle lanes or footpaths that would qualify for additional Waka Kotahi FAR rate subsidies.

As Council has already submitted its bid for funding from the National Land Transport Fund Council would be challenged to build a business case that would qualify for additional subsidised funding in time for a decision by Waka Kotahi on approval.

Another further possibility is that Council continues to hold the funds in reserve pending the confirmation by Waka Kotahi that Council’s budget doesn’t get trimmed to meet its budget deficit. In the event of a reduced budget, Council could utilise these funds to cover the shortfall.

RISK ASSESSMENT and mitigation

This matter deals with the mitigation of the financial risk associated with recovering from natural disasters through the creation of sufficient seed funding through the use of reserves.

FOUR WELLBEINGS

This matter deals with the built environmental recovery from natural disasters through the use of reserve funds to spread the cost across time, minimising spikes in rates, thus minimising the economic impact.

Delegations or authority

This matter is coming to Finance and Infrastructure due to it requiring a change in a Council Policy - “Special Funds Policy”.

sIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed of minimal significance.

OPTIONS Analysis

Officers have recommended 3 actions in this report:

1.   Adjust the size of the funds for inflation, making the adverse events fund $600,000, and the catastrophic events fund $2,400,000.

2.   Transfer $500,000 from the catastrophic events fund to the adverse events fund.

3.   Apply the NZTA refund of $279,973 to the adverse events fund.

The finance and infrastructure committee can approve all 3 actions, or a subset of them, or remain with the status quo.

 

 

Action 1

Adjust the size of the funds

Action 2

Transfer $500,000 between funds

Action 3

Apply NZTA Funding to Adverse Events Fund

Financial and Operational Implications

There is no financial impact of this action. It simply adjusts the existing policy for inflationary impacts.

There is no financial impact of this action. It simply moves existing funds between reserves.

There is no financial impact of this action. The funds have already been reserved, but with the purpose yet to be determined. This clarifies that purpose.

Long Term Plan and Annual Plan Implications

This decision has no budgetary impacts.

This decision has no budgetary impacts.

This decision has no budgetary impacts, but does buy Council some headroom in the likely event the adverse events fund is called upon in the next 3 years.

Promotion or Achievement of Community Outcomes

This policy serves to protect the public and council from cost shocks due to natural events.

This policy serves to protect the public and council from cost shocks due to natural events.

This policy serves to protect the public and council from cost shocks due to natural events.

Statutory Requirements

N/A

N/A

N/A

Consistency with Policies and Plans

This is in alignment with the sentiment of the existing policy to inflation adjust the funds.

This is in alignment with the sentiment of the existing policy to maintain certain balances within the funds for future use.

This is in alignment with the sentiment of the existing policy to maintain certain balances within the funds for future use.

 

Recommended Option

This report recommends Council adopts all 3 options for addressing this matter:

1.   Adjust the size of the funds for inflation, making the adverse events fund $600,000, and the catastrophic events fund $2,400,000.

2.   Transfer $500,000 from the catastrophic events fund to the adverse events fund.

3.   Apply the NZTA refund of $279,973 to the adverse events fund.

 

NEXT STEPS

Officers will enact the Committees resolutions, and amend the policy as necessary.

 

RECOMMENDATION

That having considered all matters raised in the report:

a)         That Finance and Infrastructure Committee receives the report entitled “Review of the Adverse Events and Catastrophic Events Funds”.

b)         That the Committee agree to amend the policy by adjusting the size of the funds for inflation, making the adverse events fund $600,000, and the catastrophic events fund $2,400,000.

c)         The Committee agrees to transfer $500,000 from the catastrophic events fund to the adverse events fund.

d)         That the Committee apply the NZTA refund of $279,973 to the adverse events fund.

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

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Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.5         Key Project Status Report - Porangahau to Wimbledon Roads PGF Programme

File Number:           COU1 -1410

Author:                    Darren de Klerk, 3 Waters Programme Manager

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       Quarterly PWPGF Report (Jan to Mar 2021)  

 

 

Recommendation

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

PURPOSE

To add a level of oversight on this significant programme for CHBDC, this report aims to inform and keep council and the community updated on the progress of this important externally funded programme of works.

significance and engagement

This report is provided for information purposes only and has been assessed as not significant.

BACKGROUND

In June 2019 Council received $20.1m in Provincial Growth Funding (PGF) from the Ministry of Business, Innovation and Employment (MBIE) to improve transport infrastructure for communities on Porangahau and Wimbledon Roads.

With growing volumes of freight using the route, reliability and resilience needs to be assured if the regional economy is to be protected and opportunities for productivity are enhanced. This project will provide future generations with safe and durable roading infrastructure along with what is a key thoroughfare in our district.  

DISCUSSION

This report will provide regular information on the fixed objectives and dynamic progress of the PGF programme of works across Porangahau and Wimbledon Roads. The report also provides an introduction on background and contextual information on the PGF programme of works across Porangahau and Wimbledon Roads then becomes more detailed discussing programme and project progress and risk. 

 The expected outcomes of the project align with the PGF objectives of;

·    Improving links between the district and major transport hubs and markets

·    Safeguarding and expanding visitor and business access to and within the district;

·    Improving connectivity and access to communities by providing a resilient route that is fit for purpose

·    Increases investments in the region by improving business confidence to invest in the region; and

·    Generates local employment and training opportunities through direct employment on the project and increased investments creating indirect jobs

The programme continues to make solid progress, with 25% of the budget spent on the works, and approx. 30% of the work completed across the programme. A significant portion to date has been spent on investigation, design, procurement and works preconstruction. This now turns to mostly construction activities, with contractors in place for most of the physical works.

Communicating the story of the programme remains important to the project team, and we have recently updated our interactive map and storyboard – located here: https://experience.arcgis.com/experience/947a211cafbd4a96a063fcd1e8d3a461/page/page_10/

 

The website also remains an important communications medium and can be located here: https://www.chbdc.govt.nz/our-district/projects/porangahau-wimbledon-road-upgrade/

 

Our newsletters also play a key communication tool: https://mailchi.mp/12e47d817b3d/knv52ydxn8-13420880

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

Continued progress and delivery of the programme and sub projects within the programme of works as outlined within the key project status report.

 

RECOMMENDATION 

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

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

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Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.6         Key Project Status Report - 3 Waters Tranche One Stimulus

File Number:           COU1- 1410

Author:                    Darren de Klerk, 3 Waters Programme Manager

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       #1 Key Project Status Report - CHB 3 Waters Tranche One - Apr 2021  

 

 

Recommendation

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

PURPOSE

To add a level of oversight on this significant programme for CHBDC, this report aims to inform and keep council and the community updated on the progress of this important externally funded programme of works.

significance and engagement

This report is provided for information purposes only and has been assessed as not significant.

BACKGROUND

In October 2020 Council was allocated $11.09M in funding as part of the Governments 3 Waters Stimulus Package (Tranche 1) to progress multiple 3 Waters projects outlined in an application to the Department of Internal affairs who are administering the funding.

DISCUSSION

A requirement of the funding agreement is that all physical works projects must be started by 31 March 2021 and that the 3 Waters Stimulus funding must be expended by 30th March 2022.

To date all capital works projects have had some aspect of physical construction commenced in order to meet this initial requirement.

The overall Tranche 1 programme of works includes many different individual projects across both #TheBigWaterStory and #TheBigWastewaterStory. A breakdown of the funding expenditure is below:

 

Water Projects

Three Waters Reform Preparation                         $400k

Water Safety Plan Actions                                     $100k

Water Renewals                                                    $990k*

Waipukurau Second Water Supply                        $3.3m

Three Waters Bylaw Reviews                                $150k

Programme Management and Building Skills          $390k

Kairakau Water Upgrade                                       $300k*

 

CHB Wastewater Upgrades

Otane to Waipawa Pipeline - Stage 2                     $2.4m

Improvements and Design                                     $1.5m

Wastewater Pond Desludging                               $750k

Wastewater Renewals                                           $500k

Trade Waste Improvements                                   $160k

Dump Station for Campervans                               $150k

 

*Kairakau Water Upgrade was a backup project, which has now been elevated as a project. The Water Renewals budget has been decreased by $300k to accommodate this.

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

To continue to deliver the programme of works as outlined within the project report, and provide regular updates to key stakeholders.

 

RECOMMENDATION 

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

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

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Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.7         Elected Members Expenses for January 2020 to February 2021

File Number:           COU1-1410

Author:                    Brent Chamberlain, Acting Chief Financial Officer

Authoriser:             Monique Davidson, Chief Executive

Attachments:          Nil

 

PURPOSE

The purpose of this report is to update the Committee on the Elected Members’ Expenses for the thirteen months covering January 2020 to February 2021.

 

Recommendation

That, having considered all matters raised in the report, the Elected Members Expenses for January 2020 to February 2021 report be noted.

 

 

significance and engagement

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

DISCUSSION

For the sake of transparency the table below shows the elected members’ expenses for the past six months. The expenses included in the totals below are mileage reimbursement, car expenses, Councillor iPad data charges, phone costs, meeting and conference expenses including accommodation and meals.

In the below table is the Elected Member Expenses for the period January 2020 to February 2021.

 

Mileage Expenses

Conferences, Meetings & Training

Phone and Ipads

Total

Mayor Alex Walker

Work Car Supplied

5,277.34

541.26

5,818.60

Cr Kelly Annand

665.97

798.52

225.00

1,689.49

Cr Tim Aitken

 

2,602.34

225.00

2,827.34

Cr Jerry Geer

 

1,663.60

495.00

2,158.60

Cr Gerald Minehan

79.00

659.39

225.00

963.39

Cr Brent Muggeridge

 

1,092.43

225.00

1,317.43

Cr Kate Taylor

2,729.54

1,447.46

495.00

4,672.00

Cr Exham Wichman

 

798.52

495.00

1,293.52

Cr Pip Burne

 

659.39

150.00

809.39

Roger Maaka

1,223.21

659.39

225.00

2,107.60

Total

4,697.72

15,658.38

3,451.26

23,657.36

 

During this period, as per Schedule 7 of the Local Government Act 2002 and the Local Government Members (2020/21) (Local Authorities) Determination 2020, a vehicle has been provided to the Mayor for restricted private use.

As per the Determination, Restricted Private Use means—

a)   the vehicle is usually driven home and securely parked by the mayor or regional chairperson; and

b)   the vehicle is otherwise generally available for use by other local authority members or staff on local authority business; and

c)   the vehicle is used solely for local authority business; and

d)   all travel in the vehicle is recorded in a log-book.

 

Financial and Resourcing Implications

There are no financial or resourcing implications included in this report. These costs are covered within existing budgets.

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 Elected Members Expenses for January 2020 to February 2021 report be noted.

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.8         Whenua Māori Rating Amendment Bill

File Number:           COU1-1410

Author:                    Brent Chamberlain, Chief Financial Officer

Authoriser:             Monique Davidson, Chief Executive

Attachments:          Nil

 

 

Recommendation

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

PURPOSE

The purpose of this report is to keep Councillors abreast of the Whenua Māori Rating Amendment Bill that is passing through Central Government at present and its implications on Central Hawkes Bay District Council and in Long Term Plan Budgets.

significance and engagement

This report is provided for information purposes only and has been assessed as not significant.

BACKGROUND

The Whenua Māori Rating Amendment Bill passed its third reading on the 6th April 2021, modernising Māori land rating laws that have been largely untouched since 1924.

DISCUSSION

The Bill gives better recognition to communal ownership of whenua Māori, and situations where multiple houses are on one land block. The changes are designed to allow for the development of underutilised Maori land for housing, specially aimed to assist Maori low income earners, and allow wider access to the rates rebate scheme.

It also makes unused Māori land unrateable.

The key proposed amendments to the Local Government (Rating) Act 2002 are:

·    Provide local authorities with the power to write off rates arrears and a statutory remission process for development

·    Make unused Māori land, including land subject to Ngā Whenua Rāhui kawenata, unrateable

·    Provide the option for separate rate accounts for multiple homes on Māori land (giving home owners access to the rates rebate scheme)

·    Provide the opportunity for local authorities to treat multiple blocks of Māori land as one block for rating purposes, provided they come from the same original block

·    Modernise the rating system affecting Māori land, including protecting Māori land arbitrarily reclassified as general land in the late 1960s and early 1970s from 'abandoned land sales', clarifying land trustees' obligations in respect of rates, and updating and clarifying the exemptions that apply to marae and urupā

The bill, when passed is expected to come into force on the 1st July 2021.

Central Hawkes Bay District Council currently has 24 properties it classifies as Māori land (blocks in multiple ownership).

Based on the dummy rates strike for the Long Term Plan, the expected rates revenue from these properties is approximately $17,772 + GST. This is all rural zoned land, so this $17,772 is spread over General Rates, Uniform Annual Charge, and Land Transport.

Currently 4 of the 24 properties have some form of commercial use (whether it is farmed, leased, or contains housing) and these rate payers do pay their rates (approximately $4,460 + gst).

The remaining 20 properties fall into the “unused Māori land” category, and none of the owners take responsibility for the rates and as such the accounts fall into arrears and after five years get written off as uncollectible under time barred statue. This equates to approximately $13,312 + gst per annum.

The Long Term Plan provides $10,000 per annum of rates write-off for exactly this scenario.

Non Māori land isn’t provided for as it is assumed that in the worst case scenario the rates can be collected through a rating sale.

If this bill gets passed and comes into effect for year one of the Long Term Plan, then Council will have 20 properties that it can no longer rate creating a loss of revenue of $13,312 + gst.

At the same time Council will no longer need its $10,000 provision for rates write-off.

So the net impact will be approximately $3,312 and can be spread over approximately 7,600 rate payers.

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 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;

·        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 monitor the progress of this bill, and have this budget changed identified in the management submission and then amended in the Long Term Plan Budget as necessary before adoption.

 

RECOMMENDATION 

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

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.9         Nga Ara Tipuna ki Tamatea - Project Update

File Number:           COU1-1410

Author:                    Doug Tate, Group Manager Customer and Community Partnerships

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       Nga Ara Tipuna ki Tamatea - Spatial and Graphic Update  

 

PURPOSE

The purpose of this report is to provide an update to the Committee on Provincial Growth Fund partnership project with Te Taiwhenua o Tamatea – Nga Ara Tipuna ki Tamatea.

significance and engagement

This report is provided for information purposes only and has been assessed as not significant.

BACKGROUND

Ngā Ara Tipuna began as a humble community project, describing the history of Pukekaihau, the main pa site in Waipukurau in Paul Hunter Memorial Park.

Through the development of Project Thrive, called the Tamatea trails, the project was the highest-ranked and most popular community project for priority of Council, establishing mana whenua over the landscape and to provide the opportunity to tell the stories of the people of Tamatea. 

Now much bigger than a humble community project, Ngā Ara Tipuna is a Pā site interpretation project which will showcase the network of six historic pā sites surrounding Waipukurau. This significant cultural heritage project includes creation of carv­ings, digital storytelling and displays to engage visi­tors and locals through sharing stories of the people of Tamatea and their relationship with the land. It is an important cultural heritage initiative and positive catalyst for tourism growth generating employment, boosting tourism and the local economy, including Māori economy. 

Ngā Ara Tipuna is a partnership between Tamatea Hapū, Te Taiwhenua o Tamatea and Central Hawke’s Bay District Council, with Council as the main initial applicant.

The project was successful in securing funding of $2,798,000 from the Provincial Growth Fund (PGF) for Ngā Ara Tipuna against a total project budget of $3.8 million. The project has significant social, cultural and economic benefit for the District, and seeks to re-establish the presence of mana whenua to the landscape of Tamatea/Central Hawke’s Bay. 

The project is substantially underway and it focussing on the key stage of preparing the project for its launch of the built assets in June 2021.  This report provides an update w

DISCUSSION

This report seeks to give assurance to the Committee that the project is progressing across all key milestones.

We are now entering the last three months of the project and are on track for a launch date in Mid-June.  All sites are well on track except for the Pukeora look out, which we are now planning a contingency plan to have an interim solution in place for launch.  Key achievements against the Project Deliverables in the quarter from 1 January 2021 to 31 March 2021 include:

 

Content, design and construction

·        All content and design has been finalised

·        Fabrication of the assets is complete. The ceremonial pou for the top of Pukekaihau is in design phase.

·        Test website is developed

 

Landscaping

·        Landscaping plan is underway and complete at Pukekaihau and Moana – i- Rokia Pā, (Hatuma Road, Waipukurau)

 

Programme and project management

·        Community open day has been held on Waitangi Day, with 70 community members attending

·        Marketing and communications is underway with a marketing contractor engaged to establish the marketing programme up to launch

·        Community fundraising underway, with businesses and major donors the initial focus. $30k has been secured from these channels. $55k is remaining

·        Archaeological monitoring underway, with no discoveries to date.

·        Recruitment of Trust administrator and Business development manager roles underway with a target start date of late May

·        Trust established, awaiting registration with Charities Commission.

·        Launch planning underway.

 

The next focus areas for the April to June quarter include:

 

Content, design and construction

·        Complete installation

·        Complete website

 

Landscaping

·        Finish site preparation at remaining sites

·        Install site furniture

·        Install lighting and security cameras

·        Install ceremonial pou

·        Finish site preparation and planting to be ready for launch

 

Programme and project management

·        Continue fundraising

·        Hire 2x contract/fixed term roles (Trust administrator and Business development manager)

·        Stand up trust to take over from PCG

·        Plan and execute launch

·        Plan for activities beyond end of MBIE contract

 

Project Status

The key phases of the project as a status update at a glance are provided in the table below:

Phase

Task Updates

Completion rate

Estimated completion date

Content, design for phase one

Solution definition completed, developed design complete. Filming completed.

 

100%

Completed

Content, design for phase two

Solution definition completed. Developed design completed. Filming completed.

100%

Completed

Fabrication and construction for phase one

Fabrication of major elements completed.
Ceremonial pou is in design phase

 

99%

June 2021

Fabrication and construction for phase two

Materials arrived, pre-production underway.

 

100%

Completed

Installation

Preparatory work completed at:

·    Pukekaihau

·    Hatuma road

Preparatory work about to get underway at:

·    Russell Park

·    Kaitoroa

·    Railway station

·    Te Horehore

Contingency plan in place for Pukeora lookout

 

75%

Early May

Launch

Launch event planning has begun. A launch sub-committee has been stood up.

A date has yet to be finalised.

10%

Mid-June

Governance

Deeds drafted, trustees appointed.

 

100%

Completed

Fundraising

$3,523,200 secured against a target of $3,579,372

Approximately $56k left to raise.

98.5%

May/June 2021, although community fundraising will be ongoing so there is technically no end date to this work stream, it simply dovetails into opex once the capital project is finished.

Business Development/Marketing

Business Plan developed, marketing plan underway.

Marketing contractor recruited.

Recruitment of business manager underway.

90%

May 2021

 

Budget

To date $2,767,949.61 has been spent on the project to date, against a total budget of $3,579, 372.  Overall the project is on track to be completed on budget.

We have drawn down $2,198,000 of PGF funding and have drawn down $685,000 of co-funding, with the balance of $126,423 of co-funding yet to be drawn down from a Trust and community fundraising yet to be fully achieved.

 

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

The project is rapidly gaining momentum as we work towards the opening in June.  Overall the project is on time, on budget and remains on scope, substantially achieving the deliverables of the project.

 

RECOMMENDATION 

 That the update report on the Project Nga Ara Tipuna Ki Tamatea be received by the Committee.

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

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Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

6.10       Financial Reporting for the eight months to February 2021

File Number:           COU1-1410

Author:                    Brent Chamberlain, Acting Chief Financial Officer

Authoriser:             Monique Davidson, Chief Executive

Attachments:          1.       Financial Results to February 2021  

 

 

PURPOSE

The purpose of this report is to provide the Committee with a summary of Council's financial performance and highlight the key financials for the first eight months of 2020/21 financial year.

 

Recommendation

That, having considered all matters raised in the report, the report on Council's financial performance for the first eight months of the 2020/21 financial year be noted.

 

 

significance and engagement

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

DISCUSSION

The aim of this report is to provide Council with a summary of the financial performance of Council and highlights the key trends for the first eight months for the year ended 30 June 2021.

The report contains a Financial Overview for Whole of Council and the Groups of Activities.

Budget Commentary

At a high level, operating revenue is $5.9m ahead of budget at February 2021 ($27.1m achieved versus $21.1m budget).

This difference is largely caused by unbudgeted external funding - 3 Waters Reform $1.175m operational, Economic Development Work Creation $3.5m, He Ringa Whanau Ora $0.2m.

The balance is driven by additional fees and charges and is volume related. For example, Council continues to experience a high demand for Resource Consents and Building Consents and this revenue is $331k up on budget.

In addition, Council has received a one off back payment from NZTA of $280k due to the change in the FAR rate (Funding Assistance Rate).

 

 

 

Just like revenue, operating costs are also up on budget by $3.2m (actually spent $18.2m versus a budget of $14.9m).

The unbudgeted revenue, also comes with unbudgeted costs - $2.2m of Work Creation payments. Note that this project should be rate neutral which suggests at 28 February Council is holding $1.3m of unspent work creation revenue.

In terms of business as usual, Council is also experiencing cost overruns which is a mixture of demand/volume driven, and operational overspends.

For consents, matching to the additional revenue, Council has spent an additional $320k on outsourcing consent processing. Solid Waste is $249k overspent due to a series of events including the disposal of accumulated tyres and concrete, transport of green waste to Napier, S17a review costs, and the purchase of carbon credits. Our 3 waters maintenance contracts are also over due to additional reactive maintenance - Water Supplies $461k (includes $44k to be recharged to 3rd parties for new connections), Wastewater $157k, and is offset by storm water savings of $63k.

 

 

Council is behind budget in capital spend, mainly in land transport but slightly offset by Community Leadership. The Land Transport under spend is largely a timely issue with reseals and bridge strengthening programs being behind schedule. The reseals as subsequently been completed and the bridge strengthening work is underway. The Nga Ara Tipuna Project is what is driving the Community Leadership spend. It is unbudgeted but is being funded by external sources so has little rating impact..

 

Cash Position

At the end of February Council was holding $6.3m in its call account and a further $13.5m in term deposits meaning it has plenty of funding available to fund its capital program for the months ahead.

Part of the reason Council was holding so much cash in February was due to the quarterly rates that were received at the end of February, and the first tranche of the 3 Waters Reform ($5.5m) was received late November.

Debtors

Council Officers continue to work with our debtors to ensure collection. The earlier fears about what impact Covid-19 and the drought might have on debt arrears haven’t become apparent at the time of writing. In fact, the Covid-19 rates relief policy has only been used by 2 rate payers across the district since the policy was adopted.

The Non Rates Debtors from June 2020 included significant NZTA and GST debtors which aren’t included in the February 2021 figures.

 

Treasury Policy

The table below shows that Council is compliant with both its existing treasury policy, and its proposed treasury policy contained in the draft Long Term Plan.

Comprehensive Income and Expenditure Statement

The budget commentary above is all based on the FIS (Funding Impact Statement) view of Councils finances (as required by the Local Government Act 2002).

When you display the same data using IFRS (International Financial Reporting Standards – standard accounting reporting format) then Councils revenue is inflated by capital grants (such as NZTA, PGF, and MBIE funding). For this financial period this includes the NZTA funding assistance and the 3 Waters Reform monies.

Offsetting this is the disclosure of depreciation ($7.9m) as a cost.

By including this external funding, Council is showing an $12.6m Comprehensive Income Surplus as at 28 February 2021.

 

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 monitor and manage the finances of Council.

 

RECOMMENDATION 

 That, having considered all matters raised in the report, the report on Council's financial performance for the first eight months of the 2020/21 financial year be noted.

 

 


Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

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Finance and Infrastructure Committee Meeting Agenda

22 April 2021

 

7            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

7.1 - Resolution Monitoring Report

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)(i) - the withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

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

7.2 - Water Rates Remission due to water leak

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

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

 

 

 

 

 

8            Date of Next Meeting

Recommendation

THAT the next meeting of the Central Hawke's Bay District Council be held on 17 June 2021.

9            Time of Closure