Agenda of Finance Committee - 27 November 2018

Finance Committee - 27 November 2018 - Open Agenda Item 1

Agenda Items

1. Three Waters Review

Type of Report:	Information
Legal Reference:	N/A
Document ID:	667489
Reporting Officer/s & Unit:	Wayne Jack, Chief Executive

1.1 Purpose of Report

This report seeks Council approval to develop a regional business case assessing options to improve the management of drinking water, storm water and wastewater (“Three Waters”) in the Hawkes Bay region and in doing so, address Central Government concerns associated with these activities. This review will develop recommendations for performance improvements to our Regional Three Waters systems with a view to guiding Central Governments Three Waters strategy.

Officer’s Recommendation

That the Finance Committee:

a. Endorse the development of a regional business case on Three Waters management.

b. Note the cost of the review is apportioned across the Hawkes Bay Councils as follows:

· 35% NCC, 35% HDC, 15% HBRC, 7.5% WDC, 7.5% CHBDC

c. That a DECISION OF COUNCIL is required urgently to enable the review to be commenced and completed within the required timeframe.

Chairperson’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

1.2 Background Summary

The Government is investigating options on how to improve the management of drinking water, stormwater and wastewater (“Three Waters”) to better support New Zealand’s prosperity, health, safety and environment. Local Government Minister Nanaia Mahuta has announced a reform programme to transform drinking, storm and wastewater. It is focused on the challenges facing the sector, including funding pressures, rising environmental standards, climate change, seasonal pressure from tourism, and the recommendations of the Havelock North Inquiry. The review is in its second stage.

Stage One – This stage explored the issues and opportunities with three waters services by gathering and analysing information. This was completed at the end of 2017.

Stage Two – This stage commenced in March 2018. It is looking at options for improving the three waters system, including the management, service delivery, funding, and regulatory arrangements.

Central Government has advised that they will work closely with councils, Iwi and all stakeholders with an interest in three waters services in order to develop options and recommendations.

There is an opportunity to provide the Hawke’s Bay’s perspective into the Central Government review on developing options to address the key concerns on how we can improve the management of drinking water, storm water and wastewater (“Three Waters”) to better support our community’s prosperity, health, safety and environment.

The Minister has advised she is supportive of our region’s proposal to complete this review and other Councils are interested in our approach and how it may be adopted as part of the wider government review.

The purpose of the Hawke’s Bay review is to have developed recommendations for regional performance improvements to our Three Waters systems to help guide Central Government’s thinking to deliver:

· Safe, NZDWS compliant and reliable drinking water

· Better environmental performance for our water services

· Efficient, sustainable, resilient, and accountable water services

· Achieving these aims in ways that are efficient and effective for our communities.

This review will need to address the following challenges for our water systems and communities:

· Meeting community expectations for each of the Three Waters across quality, treatment and management

· Meeting regulatory requirements for the Three Waters for quality, treatment and management

· The ability to replace infrastructure as it ages, and or fund and manage new infrastructure to meet changing customer and regulatory requirements.

· Declining rating bases in some areas, high growth in others

· High seasonal demand in small tourism centres

· Adapting for climate change and adverse natural events.

The review will identify and develops options for structure and governance models that:

· Develop and confirm ‘Key Principles’ of approach that are shared and agreed by the respective council’s

· Identify service and delivery model opportunities through joint provision of all or some elements of the Three Waters services. In identifying a range of models these shall be compared to the status quo including clustering of sub-regional entities. The model’s must be flexible enough to future proof for the inclusion of private water suppliers.

· Develop strategic capacity and resilience across the water network

· Provide excellence in strategic and management capability to ensure safe, secure efficient drinking water, waste water and storm water service outcomes to our communities.

· Provide economic value and be able to demonstrate how well and why the identified models meet each of the objectives including benefits analysis, cost of service delivery, funding requirements, how fees and charges are levied and where the costs are distributed, and processes.

· Provide capital efficiency current and future Three Waters assets

· Deliver operational and maintenance excellence through the most effective service delivery model

· Improve customer service

· Provide greater environmental, community and cultural focus

· Recommend the next steps to enable the entire objectives to be met including a programme and cost/resource estimates to do this – this should also include transition plans/costs and timetables for such a transition.

In order to undertake the review, it will be necessary to engage the services of an external agency to support its delivery. We will be seeking a fixed cost engagement via our procurement processes. It is proposed that costs will be attributed on the following basis:

· NCC 35%,

· HDC 35%,

· HBRC 15%,

· WDC 7.5%,

· CHBC 7.5%.

1.3 Issues

No issues

1.4 Significance and Engagement

In accordance with Council’s Significance and Engagement Policy, this matter has been assessed as of some importance. The persons who are affected by or interested in this matter are Councillors, Council staff, Rate Payers, Community Members, LGNZ and Central Government.

This review has been identified as requiring specific engagement with Māori.

1.5 Implications

Financial

No further funding will be required to complete the review. Re-allocation of funding from the Chief Executive’s contingency budget will ensure no changes to overall budgets or Long Term Plan figures.

The review will be outsourced to an external consultancy to deliver the report; however, there will be a resourcing impact on council staff to provide information to complete the analysis and participate in workshops throughout the review process.

Social & Policy

N/A

Risk

Undertaking the review is considered the lowest strategic risk option. This option would contribute the Hawke’s Bay regional perspective into the Central Government review on how we can improve the management of drinking water, storm water and wastewater (“Three Waters”).

1.6 Options

The options available to Council are as follows:

a. Option 1: Council confirms its support for the project.

Financial and Resourcing Implications

· No further funding will be required to complete the review. Re-allocation of funding from the Chief Executive’s contingency budget will ensure no changes to overall budgets or LTP figures.

· The review will be outsourced to an external consultancy to deliver the report, however there will be a resourcing impact on council staff to provide information to complete the analysis and participate in workshops throughout the review process.

Risk Analysis

· This option is considered the lowest strategic risk option. This option would contribute the Hawke’s Bay regional perspective into the Central Government review on how we can improve the management of drinking water, storm water and wastewater (“Three Waters”).

Promotion or Achievement of Community Outcomes

· This review demonstrates our commitment to making sustainable investment in durable infrastructure that promotes smart growth and ensures we are environmentally responsible.

Statutory Responsibilities

· Will contribute towards meeting our Three Waters standards and legal obligations.

Consistency with Policies and Plans

· The project is not part of the latest Long Term Plan, and the budget available is from the Chief Executives contingency budget.

Community Views and Preferences

· This option has been identified as requiring specific engagement Māori

Advantages and Disadvantages

· The advantage of this option is the provision of the Hawkes Bay’s regional perspective into the Central Government review to shape their thinking

working together as a region to develop the best regional model to deliver a strategic and sustainable approach to Three Waters.

· There are no perceived disadvantages of this option relative to option 2.

b. Option 2: Not approve the project to complete the review and wait for Central Government outcome without considered Hawkes Bay regional input.

Financial and Resourcing Implications

· There are no financial or resourcing implications in choosing to do nothing in the short term.

Risk Analysis

· By doing nothing, the Government may mandate a new regime that does not consider the specific requirements and concerns of the Hawke’s Bay region & our communities.

Promotion or Achievement of Community Outcomes

· The Council would continue progressing against its Long Term Plan whilst noting that the Government has a Three Waters review which is subject to change that plan.

Statutory Responsibilities

· Not applicable - other than where we may be in breach of meeting standards and obligations.

Consistency with Policies and Plans

· Not adhering to our principles in the Long Term Plan.

Community Views and Preferences

· This is an opportunity for the Hawke’s Bay to develop a regional approach and contribute to Central Government’s review process. If we act independently, then the review will still need to occur in accordance with our Long Term Plan, or a Central Government imposed regime. It will cost significantly more than this combined regional approach to the review.

Advantages and Disadvantages

· Disadvantages are significant and preclude us from developing solutions for our region to deliver:

o Safe, NZDWS compliant and reliable drinking water

o Better environmental performance for our water services

o Efficient, sustainable, resilient, and accountable water services

o Achieving these aims in an affordable manner

1.7 Development of Preferred Option

Should Option 1 be approved our next steps are as follows:

· Commence procurement process for a suitable consultant to lead the review across the respective Councils with the expectation that this is completed in late December

· Confirm scope and draft project and communications plan with a view to completing review by the end of June 2019.

1.8 Attachments

Nil

Finance Committee - 27 November 2018 - Open Agenda Item 2

2. District Plan Review Funding Options

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	669135
Reporting Officer/s & Unit:	Paulina Wilhelm, Manager City Development

2.1 Purpose of Report

The purpose of this report is to allow the use of the funds available in the Financial Contributions Special Fund to enable the production of Structure Plans and other work streams for servicing development in Napier. The Structure Plans will inform any future rezoning decision for the Napier District Plan and enable the city to grow.

Officer’s Recommendation

That the Finance Committee:

a. Approve $1.2m from the Financial Contributions Special Fund to fund the District Plan Review work programme which will allow future city growth.

Chairperson’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

2.2 Background Summary

District Plan Review

The Council is preparing for the release of the new Napier District Plan in 2020. The new plan aims to achieve a series of strategic outcomes which will enable the city to grow in a sustainable way and meet the principles of the City Vision and the Ahuriri Estuary and Coastal Edge Master Plan.

In preparation for setting the policy direction, a series of research pieces, analysis and consultation needs to be completed to cement the policy direction and provide the correct justification for any changes made.

One significant piece of research required is related to the undertaking of Structure Plans in growth areas to demonstrate that the city has the ability to provide development infrastructure in an efficient and affordable way. Structure Planning is an expensive exercise as it involves information such as stormwater and traffic modelling tools which are costly to develop by nature.

National Policy Statement for Urban Development Capacity (NPS-UDC)

The Ministry for the Environment (MfE) together with the Ministry of Business, Innovation and Employment (MBIE) released the NPS-UDC in 2016 as a measure to avoid future house shortages and rapid increases in property prices; in other words, to provide sufficient development capacity to meet the needs of people and communities now and in the future. Urban areas throughout New Zealand were classified as High, Medium and Low population growth areas and each of these warranted a different response according to the NPS-UDC. Napier City was identified as a medium growth area reaching a 6.4% change in projected population growth 2013-2023 period. This new classification has imposed a series of implementation and monitoring requirements which have to be met in order to give effect to the NPS-UDC. For example, Napier has to assess the current house consumption patterns, the latent demand for housing and the future demand. A similar requirement is needed for business land. Napier also has to demonstrate it has enough land zoned for development, and most importantly, serviced with development infrastructure. Napier must also demonstrate that sufficient “market feasible” development potential is available to meet anticipated demand. To be able to provide infrastructure services, and to assess the feasibility of providing the required infrastructure for development, local authorities must conduct a structure planning exercise for each identified growth area. This is costly but essential for making good planning decisions and justifying any rezoning of land.

Development and Financial Contributions Policy

The Financial Contributions Special Fund is collected from developers on the subdivision of land and various other land use activities. The purpose of this fund is to fund capital works and services to enable the rezoning of land and consequently growth in the city.

The review of the District Plan will require looking at the land available for residential, commercial and industrial growth in the city for the next 10 to 15 years. We are proposing using the special Financial Contribution Funds to deliver a robust District Plan which will meet the strategic objectives and outcomes for the City. This will make Napier a great and vibrant place to live and work.

2.3 Issues

The District Plan review work programme has been set up and requires enough budget to conduct the research needed. To avoid increasing Council rates to fund this work programme we propose the use of the financial contributions special fund. Within the Long Term Plan 2018-28, Council set aside $100k per annum over three years, which is short of the requirements to undertake the identified projects to achieve the outcomes associated with the District Plan Review.

2.4 Significance and Engagement

The use of the fund for the District Plan review does not trigger any special consultative procedure.

2.5 Implications

Financial

The Financial Contribution Special Fund will be used for the purpose of enabling the future growth of the city and meeting the legislative requirement of the NPS-UDC. Using this fund will not impose any further impact on Council rates with the exception of the loss of revenue from holding these funds. It is estimated that the budget needed for the research projects is in the order of $1.2 Million within the next two years and can be met solely by the Financial Contribution Fund.

Social & Policy

Supporting planning decisions with the correct information will enable the sustainable future growth of the city. The use of the financial contributions special fund for the purpose of enabling the review of the Napier District Plan is supported by the Development and Financial Contribution Policy.

Risk

No major risks identified by the use of the special funds toward the production of the District Plan. The major risk for the organisation and the city is to make planning decisions without holding the right level of information to support these decisions. This will cause similar scenarios as already experienced in Te Awa with an area zoned for residential development but due to the nearly prohibited cost of providing infrastructure is deemed unfeasible for development by the development sector. In the industrial context a similar example occurred at Awatoto where zoned land has not been developed for several decades (40 years).

2.6 Options

The options available to Council are as follows:

a. Not fund the District Plan research programme. This translates to not changing the current zones (residential and commercial/industrial) within the city. Another potential outcome will be to change the zoning of land within the city without understanding key important constraints which will support making the right decisions. A consequence of this is that NCC will prevent future feasible growth as land would be rezoned in paper but could be unable to be serviced due to high costs.

b. To use the Financial Contributions Special Fund to conduct the research needed for the District Plan review. This will include the development of Structure Plans, to provide a robust planning framework for the next 10 to 15 years. This will enable the sustainable growth of the Napier City and meet the legislative requirements of the NPS-UDC.

2.7 Development of Preferred Option

The preferred option is to make planning decisions well informed about the costs of providing suitable infrastructure for the various growth areas identified within our city. Considerations such as 3 waters, transport, hazards amongst others are important to enable residential and commercial growth. To fund this research via the use of the financial contributions special fund is therefore the preferred option.

2.8 Attachments

Nil

Finance Committee - 27 November 2018 - Open Agenda Item 3

3. Budgets to be carried forward to 2018/19

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	637309
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

3.1 Purpose of Report

To seek Council approval to carry forward budgets into 2018/19.

Officer’s Recommendation

That the Finance Committee:

a. Approve carrying forward budgeted expenditure of $3,796,408 from 2017/18 into 2018/19.

Chairperson’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

3.2 Background Summary

Provision is made at the end of a financial year to carry forward project expenditure budgeted but not incurred either fully or in part. The provision relates only to expenditure of a project nature. Requests are subject to approval by Council.

3.3 Issues

No issues.

3.4 Significance and Engagement

N/A

3.5 Implications

Financial

The proposed carry forward amounts have been reviewed by Council management.

The carry forward amounts are based on the final general ledger figures at 30 June 2018 and total $3,796,408.

The following table summarises by activity group carry forward expenditure that was budgeted but not incurred in 2017/18:

Activity	Carry Forward Request
Roading	$311,000
Water Supply	$475,000
Stormwater	$175,000
Wastewater	$80,000
Public Toilets	$113,517
Sportsgrounds	$929,211
Reserves	$537,446
Halls	$70,785
C.I.T	$125,000
Leases	$102,000
Planning Policy	$53,765
City & Business Promotion	$131,843
Marketing	$25,841
Property Holdings	$74,000
Inner Harbour	$592,000
TOTAL	$3,796,408

The following table sets out the funding source for the carry forward amounts:

Funding	Request
Buildings project fund	$55,000
Financial contributions	$361,000
HB Endowment Land Income	$592,000
IT Renewal fund	$125,000
L/Farm Res Dev (Parklands) Fund	$31,430
Loan - Rates	$778,088
Loans - Growth	$80,000
Milliscreen IAR	$80,000
Prior Years Project Funding	$132,785
Public Toilets IAR	$75,772
Rates - Capital	$636,868
Rates - Operating	$211,449
Reserves IAR Fund	$285,290
Sportsgrounds IAR	$76,000
Stormwater Catchment IAR	$96,000
Stormwater Pipes IAR	$43,000
Technology Equip Renewal	$102,000
Tourism Capital Fund	$34,726
TOTAL	$3,796,408

Social & Policy

N/A

Risk

N/A

3.6 Options

The preferred option available to Council is:

a. Approve carrying forward total project expenditure of $3,796,408 to 2018/19.

3.7 Development of Preferred Option

N/A

3.8 Attachments

Nil

Finance Committee - 27 November 2018 - Open Agenda Item 4

4. Rating Outturn Surplus 2017/18

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	637305
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

4.1 Purpose of Report

To report on the Rating Account to 30 June 2018, and to approve allocations from the Rating Surplus

Officer’s Recommendation

That the Finance Committee:

a. Approve transferring the 2017/18 net rating surplus of $926,578 to the Capital Reserve Account where it is available for future commitments.

Chairperson’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

4.2 Background Summary

An integral part of preparing the Annual Report is establishing the year end outturn position of the Rating Account. It has been Council’s practice to apply year-end surpluses to fund one-off items committed against the surplus, with any remaining surplus transferred to the Capital Reserve Account for allocation by Council.

4.3 Issues

Rating Summary to 30 June 2018

Net Rating Surplus (after allowing for budgets to carry forward) is $926,578.

In arriving at the above surplus, interest income has been allocated to special funds in line with Council’s policy for allocating interest; however, similar to recent years, there has been no allocation of interest to the Infrastructural Renewals or Financial Contribution Accounts.

The rating surplus arises primarily from additional interest income from general treasury funds, additional rates penalties and savings in loan servicing costs.

4.4 Significance and Engagement

N/A

4.5 Implications

Financial

With contingency funding now provided within the Long Term Plan/ Annual Plan, the rating surplus is available to transfer to the Capital Reserve Account for future allocation.

The balance of the Capital Reserve at 30 June 2018 was $5,150,000 (prior to adding the rating surplus and existing approved commitments).

Commitments currently identified and approved against the Capital Reserve include:

2018/19
McLean Park Branding & Way Finding	$49,000
IT projects	$300,000
LIM administration (property scanning) tbc by 28/10	$100,000
Complete implementation of all Sycle modules	$52,000
Water initiatives	$125,000
Sustainability initiatives	$200,000
3 Waters Review	$100,000

Total 2018/19	$926,000

Social & Policy

N/A

Risk

N/A

4.6 Options

The options available to Council are as follows:

a. Transfer the rating surplus of $926,578 to the Capital Reserve Account.

b. Allocate the rating surplus directly for one-off items with any remaining surplus transferred to the Capital Reserve Account.

4.7 Development of Preferred Option

Transferring the surplus to the Capital Reserve for allocation is more transparent and consistent with recent practice. Option a. is the preferred option.

4.8 Attachments

Nil

Finance Committee - 27 November 2018 - Open Agenda Item 6

6. Fire Hydrant Use Policy 2018

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	662412
Reporting Officer/s & Unit:	Anze Lencek, Water Quality Lead

6.1 Purpose of Report

To seek Council approval of the proposed Fire Hydrant Use Policy 2018.

Officer’s Recommendation

That the Finance Committee:

a. Adopt the Fire Hydrant Use Policy 2018.

Chairperson’s Recommendation

That the Council resolve that the officer’s recommendation be adopted.

6.2 Background Summary

Napier City Council (NCC) currently do not have a policy on fire hydrant use. Section ‘8.4 Other uses’ of the NCC Water Supply Bylaw 2012 states “Permit holders have the right to gain access to and draw water from the water supply for uses other than firefighting”, however does not identify any means of managing the risk of contamination such activities present to the public water supply. As a result, third party water users can take water from the public water supply network in an uncontrolled manner (see Figure 1) which presents a risk on backflow contamination.

The proposed Fire Hydrant Use Policy 2018 outlines the measures to be implemented by hydrant users to manage the risk of contamination (quality) to Napier City’s water supply, the quantity of water taken from fire hydrant, and risk and damage to the water supply system. It also outlines requirements Permit holder applicants have to meet in order to be granted a (water take) Permit.

6.3 Issues

In 2017 (February to May), four E. coli transgressions were experienced in Napier’s reticulation network, without a definite root cause identified in any of those instances. In July 2017, Council’s Drinking Water Assessor (DWA) also removed bore security status from all bores, as it was assessed they would not meet the minimum requirements of the Drinking Water Standard (2008) for bore head security.

Based on the evidence of bore condition and reticulation testing results, it became obvious that both bores and reticulation pose a risk to the quality of Napier drinking-water. In order to manage this risk appropriately, Council commenced chlorinating the supply in May 2017. In addition, all bores were upgraded to the greatest practical extent, enabling interim bore security status to be regained on 1 July 2018 for five bores and for an additional one bore on 17 October 2018.

In 2017, numerous reticulation risks have been identified in collaboration with DWAs and proposed remedial actions added to the Water Safety Plan (WSP) to eliminate or reduce those risks to acceptable levels. Currently, Council has no policy to manage reticulation risks associated with hydrant use. Council’s WSP identifies this ‘Microbiological (including protozoa) or chemical contamination’ risk in reticulation as high, with a proposed remedial action to develop and implement the policy regulating the process for taking water from hydrants (Fire Hydrant Use Policy).

Some of the proposed remedial actions have been completed to date and some, such as the Fire Hydrant Use Policy, remain on the WSP Improvement list. Without demonstrating how NCC mitigate all identified risks in the WSP, the DWA will not approve any future WSP.

Next year, NCC will develop and commission a dedicated water take site for all parties interested in taking water from Napier water supply. This task is due in June 2019 and the new site will further reduce the risk of reticulation contamination associated with third party access to reticulation network.

This policy will be reviewed in 12 months in line with Council’s plan to construct these dedicated water take points.

Figure 1 – Various contractors drawing water

from NCC fire hydrants

6.4 Significance and Engagement

N/A

6.5 Implications

Financial

N/A

Social & Policy

N/A

Risk

Existing risks to water quality remain if there is no policy in place.

6.6 Options

The options available to Council are as follows:

a. Continue to operate without a policy

b. Adopt Fire Hydrant Use Policy 2018

6.7 Development of Preferred Option

N/A

6.8 Attachments

a Fire Hydrant Use Policy 2018 ⇩

b Application for Permit to Take Water ⇩

Finance Committee - 27 November 2018 - Open Agenda

Finance Committee

Open Minutes

Meeting Date:	Tuesday 16 October 2018
Time:	3.00pm-4.15pm
Venue	Council Chamber Hawke’s Bay Regional Council 159 Dalton Street Napier

Present	Mayor Dalton, Councillor Wise (In the Chair), Councillors Boag, Dallimore, Hague, McGrath, Price, Tapine, Taylor, White and Wright
In Attendance	Chief Executive [to 3.56pm], Director Community Services, Director Infrastructure Services, Director City Services, Director City Strategy, Manager Communications and Marketing, Chief Financial Officer, Manager Community Strategies, Manager Property, Team Leader Policy Planning, Policy Planner, Environmental Solutions Manager, Waste Minimisation Lead, Manager Business Excellence & Transformation/Manager Regulatory Solutions, Libraries Manager, Communications Specialist
Administration	Governance Team

Apologies

Councillors White / Wright

That the apologies from Councillor Jeffery and Councillor Brosnan be accepted.

Carried

Conflicts of interest

Nil

Public forum

David Kamper – Onekawa Pool Petition

Mr Kamper spoke to the petition presented to Council seeking to retain and redevelop the aquatic centre on the current Onekawa site, and to not relocate to Prebensen Drive. He noted that the petition received 7173 endorsements and was driven by the community as a result of a 50m pool not being consulted on in the Long Term Plan process.

In response to questions from Councillors the following points were clarified:

· It would be beneficial to make the information regarding the soil contamination of the Onekawa site available to the public; Mr Kamper suggested that a geo-technical report should be prepared for the Onekawa site.

· The petition has been organised by Mr Kamper in his personal capacity, separate from the Aquahawks organisation.

· Mr Kamper suggested that the Onekawa site closure would be minimal if the Ivan Wilson pool remained open for a period of the rebuild.

· Mr Kamper believes that the new build at Prebensen Road site will result in less water space.

Announcements by the Mayor

Nil

Announcements by the Chairperson

Nil

Announcements by the management

The Chief Executive noted that he has another engagement and will need to leave the meeting before 4pm.

Confirmation of minutes

Councillors McGrath / Hague

That the Minutes of the meeting held on 4 September 2018 were taken as a true and accurate record of the meeting.

Carried

Questions from Councillors for Further Action

Item

Requestor

Action

Responsible

Cr Tapine

Further information was requested from officers around how the road stopping work at the land corner of Geddis and Longfellow Avenue ties in with the Activate Maraenui Project.

Jon Kingsford

Agenda Items

1. Whakarire Revetment Funding Proposal

Type of Report:	Legal
Legal Reference:	Local Government Act 2002
Document ID:	631017
Reporting Officer/s & Unit:	Richard Munneke, Director City Strategy

1.1 Purpose of Report

To consider funding options and obtain approval from Council on the public/private funding split for the Whakarire revetment.

At the Meeting

The Director City Strategy spoke to the report noting that this stage of the process requires Council, as decision makers, to consider what factors will determine where the benefit lies and to apportion the costs accordingly. It was noted that there are numerous ways to split the funding across the beneficiaries of the revetment and once a proposal has been determined in principle this will be further refined through community engagement before the final funding proposal is determined through the 2019/20 Annual Plan adoption process.

In response to questions from Councillors the following points were clarified:

· If the work does not go ahead the existing structure will suffer further degradation and private property will ultimately be affected.

· This work is required to address existing erosion, as opposed to predicted future erosion, solutions for which are being worked through by the Coastal Hazards Strategy Joint Committee. The revetment design and consenting approval process had occurred prior to the majority of the Coastal Hazard Strategy work.

· The shared pathway has not been included in the cost estimate at this stage, although it has been included in the Resource Consent. The pathway will be included later following consultation with residents and users of the area.

· Funding set aside in the Hawke’s Bay Harbour Board Endowment Land Income Account is for the purposes of maintaining the foreshore reserves and works in the inner harbour. These funds are already committed to projects.

· It was confirmed that shingle from Marine Parade is no longer being moved to Westshore Beach. This work was funded largely through general rate payers, split between Napier City Council and Hawke’s Bay Regional Council.

Councillor Dallimore tabled a document for consideration by Council officers and spoke to the history of the issue, noting that this is not an exact science.

Some Councillors stated that the figures should be reworked and further information was required to determine the balance between public good and the benefit to local residents, including that of the wider Westshore residents.

It was agreed that Councillors would collate and submit any questions to the Chief Executive by Thursday, 18 October 2018 to allow for responses to be considered prior to the Council meeting on 30 October 2018, where the matter would be debated further.

The Chief Executive left the meeting at 3.56pm.

Officer’s Recommendation

That the Finance Committee:

a. Approve, in principle, funding option for the revetment works at Whakarire Avenue in accordance with Section 101(3) of the Local Government Act.

b. And that options of funding by general rate or UAGC be identified for consideration.

c. And that consultation be undertaken as appropriate. This would comprise informal consultation on a proposed funding option as per part a above, culminating in formal consultation as part of the 2019/20 Annual Plan process.

Substitute Motion

Committee's recommendation

Mayor Dalton / Councillor Dallimore

That the Finance Committee:

a. Leave the Officer’s recommendation for this item on the table for further discussion at the Council meeting on 30 October 2018, that being:

That the Finance Committee:

a. Approve, in principle, funding option for the revetment works at Whakarire Avenue in accordance with Section 101(3) of the Local Government Act.

b. And that options of funding by general rate or UAGC be identified for consideration.

Carried

2. Capital Project Funding BRought Forward

Type of Report:	Procedural
Legal Reference:	N/A
Document ID:	653014
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

2.1 Purpose of Report

To seek approval from Council to bring forward funding in the Long Term Plan 2019/20 budget relating to the Park Island Redevelopment into 2018/19 to complete the earthworks required for the Hawkes Bay Rugby Union complex at Park Island due to be started February 2019.

At the Meeting

In response to questions from Councillors it was clarified that there was a misunderstanding between the parties in relation to the timing and Plan change in this matter, which has resulted in the funding having to be brought forward from the Long Term Plan 2019/20 budget. It was noted that this request is part of a larger package of work.

Committee's recommendation

Councillors Taylor / Price

The Finance Committee:

a. Approve $400,000 to be brought forward from the Long Term Plan 2019/20 budget for the Park Island Redevelopment (Loan funded) to accommodate earthworks required to progress the Hawkes Bay Rugby Union complex at Park Island due to start February 2019

Carried

3. Road Stopping - land corner of Geddis & Longfellow Avenue

Type of Report:	Legal
Legal Reference:	Local Government Act 1974
Document ID:	637186
Reporting Officer/s & Unit:	Bryan Faulknor, Manager Property Jenny Martin, Property and Facilities Officer

3.1 Purpose of Report

To obtain Council approval to initiate the road stopping process in accordance with the 10^th Schedule of the Local Government Act 1974, and subsequent sale of approximately 188m² of current legal road on the corner of Geddis and Longfellow Avenue, to Ahuriri District Health.

At the Meeting

Further information was requested from officers around how this work ties in with the Activate Maraenui Project.

Committee's recommendation

Councillors Boag / Tapine

The Finance Committee:

a. Recommend pursuant to Section 342 of the Local Government Act 1974, to initiate the stopping of approximately 188m² of legal road, on the corner of Geddis and Longfellow Avenue and adjacent to 65 Geddis Avenue, in accordance with the Tenth Schedule to the Local Government Act 1974.

b. Recommend that upon completion of the Tenth Schedule stopping process, the stopped road is sold to Ahuriri District Health (a Charitable Trust) at a peppercorn sale price of one dollar plus all associated legal, survey and advertising costs.

Carried

4. Powerco Gas Pipeline - Grant of Easement and Concession

Type of Report:	Legal and Operational
Legal Reference:	Reserves Act 1977, Conservation Act 1987
Document ID:	641344
Reporting Officer/s & Unit:	Bryan Faulknor, Manager Property

4.1 Purpose of Report

a. To obtain Council’s approval to grant a concession in the form of an easement to Powerco Limited to use reserve land to convey gas by way of a pipeline.

b. To also obtain Council’s approval to grant an easement to Powerco to use non reserve fee simple land owned by Council for the same purpose.

At the Meeting

There was no discussion on this item.

Committee's recommendation

Councillors Price / Wright

The Finance Committee:

a. Pursuant to Section 48 of the Reserves Act 1977, approve the granting of a concession in the form of an easement to Powerco Limited to convey gas under the reserve land described in Schedule 1 below.

b. Approve the granting of an easement to Powerco Limited to convey gas under the fee simple land owned by Council as described in Schedule 2 below.

SCHEDULE 1

Legal Description	Title/GN Reference	Land Status
Section 2 Survey Office Plan 468666	NZGN 2002 p488	Local Purpose (Wildlife) Reserve
Section 1 Survey Office Plan 468666	641949	Local Purpose (Community Building) Reserve

SCHEDULE 2

Legal Description	Title/GN Reference	Land Status
Lot 2 Deposited Plan 8156	HB131/258	Fee Simple

Carried

5. HB Museums Trust Annual Report

Type of Report:	Legal
Legal Reference:	Local Government Act 2002
Document ID:	650777
Reporting Officer/s & Unit:	Chris Denby, Finance Accountant

5.1 Purpose of Report

To provide Napier City Council with the Hawke’s Bay Museums Trust Annual Report for the year ending 30 June 2018.

At the Meeting

There was no discussion on this item.

Committee's recommendation

Mayor Dalton / Councillor Tapine

The Finance Committee:

a. Receive the Annual Report of the Hawke’s Bay Museums Trust

Carried

PUBLIC EXCLUDED ITEMS

Councillors Tapine / Hague

That the public be excluded from the following parts of the proceedings of this meeting, namely:

1. Proposed Solution to Recycling Service for Napier

2. Leasehold Land Freeholding - Request 1

Carried

The general subject of each matter to be considered while the public was excluded, the reasons for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution were 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(1) to the passing of this resolution.

1. Proposed Solution to Recycling Service for Napier

7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities

7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

48(1)A That the public conduct of the whole or 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:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

2. Leasehold Land Freeholding - Request 1

7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

The meeting moved into committee at 4.15pm.

Approved and adopted as a true and accurate record of the meeting.

Chairperson .............................................................................................................................

Date of approval ......................................................................................................................

Committee Members	Councillor Wise (In the Chair), Mayor Dalton, Councillors Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, Taylor, White and Wright
Officer Responsible	Director Corporate Services
Administration	Governance Team
	Next Finance Committee Meeting Tuesday 2 April 2019

Meeting Date:	Tuesday 27 November 2018
Time:	3.00pm
Venue:	Council Chamber Hawke’s Bay Regional Council 159 Dalton Street Napier