Agenda of Otautau Community Board

Description: sdclogo

Otautau Community Board

OPEN MINUTES

Minutes of a meeting of Otautau Community Board held in the SDC Office Otautau on Thursday, 1 October 2015 at 2pm.

present

Chairperson	Andre' Bekhuis
Deputy Chairperson	Tony Vincent
Members	Ken Davidson
	Peter Gutsell
	Peter Herrick
	Amber Joyce

Councillor	Stuart Baird

IN ATTENDANCE

Area Engineer	Greg Erskine
Area Officer	Kelly Tagg

1 Apologies

There were no apologies.

2 Leave of absence

There were no requests for leave of absence.

3 Conflict of Interest

· Chairman Bekhuis declared an interest in item 7.2 Works & Finance Report (footpath repair work)

· Member Herrick declared an interest in item 7.3 Holt Park Rentals.

4 Public Forum

Moved Member Gutsell, seconded Member Herrick and resolved that the Otautau Community Board go into public forum to allow members of the public to speak.

· Nicol Horrell addressed the meeting and provided an update concerning Environment Southland.

The Board was advised that Environment Southland has a discussion document “Towards a new plan” out for consultation at present. Mr Horrell advised the aim of the plan is to respond to water quality and quantity issues facing Southland. The Board was also advised that the Regional Policy Statement is also out for consultation at present.

Moved Member Vincent, seconded Member Herrick and resolved that the Otautau Community Board moves out of public forum.

Nicol Horrell left the meeting at this point – 2.18pm.

5 Extraordinary/Urgent Items

Moved Member Joyce, seconded Member Davidson and resolved:

That the Otautau Community Board consider the following items as a matter of urgent business in order that a decision can be made before the next ordinary meeting, subject to Section 46A of the Local Government Official Information and Meetings Act 1987

Item 1: Budgets 2016/17.

6 Confirmation of Minutes

Resolution

Moved Member Vincent, seconded Member Gutsell

Confirms the minutes of Otautau Community Board meeting held on 20 August 2015.

Reports

7.1

Action Sheet

Record No: R/15/9/17385

The Action Sheet from the Board’s previous meetings was circulated for Members’ information.

Playgroup Equipment – Centennial Park

The Board was informed that the siting of the equipment was discussed at a recent informal meeting; a location to the north of the junior playground is the new preferred site. The meeting was advised that the rhododendrons will be trimmed back and that the equipment will be installed by the end of November.

Streetlighting

Mr Hartley Hare advised the lights have been ordered however, the supplier is unable to confirm when they will arrive as they have been ordered from overseas.

Wallace Walkways Signage

Signs for the entry to the Wallace Walkways off Main Street have been made and will be installed when the weather improves.

Railway Crossings

The Board was informed that the asphalting of the railway bridge on the floodbank walkway has been completed.

Resolution

Moved Member Herrick, seconded Cr Baird

That the Otautau Community Board:

a) Receives the report titled “Action Sheet” dated 28 September 2015.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

c) Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

7.2	Works and Finance Report to Otautau Community Board for the period ended 31 August 2015 Record No: R/15/9/16127
	The Works and Finance report prepared by Mr Greg Erskine for the period ended 31 August 2015, was tabled. The Board was informed as follows; · Work has been completed on Devon Street and Queen Street to remove trees and vegetation that have caused problems for several years. This was a joint project between the Board, the roading department, Powernet, Chorus, the land owners and Bruce Dickens Tree Topping. · A local plumber has located the septic tank at the camping ground; the camping ground management contract is being undertaken on a three monthly roll over agreement until further notice. · An old sump has been located on Katrine Street that is part of the outlet from Holt Park; tree roots have infiltrated part of the pipe line and are going to be removed. · A basic soak-hole is being installed at the Liemen Street corner to prevent the on-going water issues. · Investigation into the extent of repairs needed on Main Street will be undertaken soon. There are several surface failures over the old water line that need dug out and replaced. Initial estimates are about $25,000 to $35,000. At this point, Mr Erskine advised the meeting that Central Western Roading had provided a price of $100 per square metre for footpath repair work in the Otautau Township. The Chairperson, Member Bekhuis declared an interest in the item referring to footpath repair work and took no part in the discussion or voting on the matter. Mr Erskine advised the Board that $15,000 has been carried forward for footpath repairs from 2014/15 and that the works were to be carried out by Andre Bekhuis Construction. Mr Erskine advised the Andre Bekhuis Construction would still undertake the footpath repair work scheduled for 2015/16 and noted the offer from Central Western Roading would allow the Board to get “caught up” with the works schedule for footpath repairs in the Township.
	Resolution Moved Member Herrick, seconded Member Davidson resolved that the Otautau Community Board accepts Central Western Roading’s contract price of $100 per square metre to carry out footpath repairs in the Otautau Township to a maximum of $15,000.
	Resolution Moved Member Herrick, seconded Member Davidson That the Otautau Community Board: a) Receives the report titled “Works and Finance Report to Otautau Community Board for the period ended 31 August 2015” dated 01 October 2015.

7.3

Holt Park Rentals

Record No: R/15/9/17386

Member P Herrick declared an interest in this item and took no part in the discussion or voting on the matter.

A report requesting the Board to review the rentals payable by the member organisations of the Holt Park Recreation Centre Inc, was tabled.

The meeting noted that the current rentals total $2875 per annum and are made up as follows;

Otautau Combined Sports Complex Inc - $575.00
Otautau Netball Club - $460.00
Otautau Rugby Football Club - $920.00
Otautau Squash Racquets Club Inc - $402.50
Otautau Tennis Club - $517.50

The Board had previously requested feedback from the Society concerning the rentals payable by each member organisation; the Society met on 29 June 2015 and member groups resolved to recommend to the Board that the rentals be decreased to a uniform amount of $100.00 plus GST per annum per club.

The meeting noted that the Property Department have advised that the Board has discretion to set these rentals as long as any increase or decrease can be justified.

The Board was informed as follows;

historically, the Otautau Rugby Club has paid for the power charges in relation to the lights at Holt Park for six months of each year in addition to their annual rental fee.
the Otautau Combined Sports Complex Inc is charged rates each year. For 2015/16 the rates charged to the Complex amounted to $3,226.47; this includes a sewerage charge of $2,023.85 for five connections and an annual water meter charge.
the Otautau Squash Racquets Club is charged for two sewerage connections, one water connection and two wheelie bins in addition to the annual rental.

At this point Member Davidson advised the meeting as follows;

Due to the change in the Township boundaries, the cost for the upkeep of Holt Park is now shared by the rural community
Events such as Touch Rugby don’t pay for use of the grounds
It is good for the town to have strong clubs as it brings people to Otautau
$100.00 is too light
Clubs don’t have the same level of membership as in the past, have lost members and are already paying a significant amount of their subscription money to their governing bodies.

Member Davidson moved that each member club be charged $200.00.

This motion lapsed to due lack of a seconder.

Further discussions ensued with the following observations and/or suggestions being made;

the charge needs to be more uniform
the total rental of $2,875 could be apportioned to each club based on membership numbers
the community contributes to the upkeep of Holt Park and can’t be expected to keep “picking up the tab”, the rentals should remain at the current level and the Holt Park Recreation Centre Inc should be invoiced the full amount and be left to sort out the amount each club pays
rentals be left at current levels and the Board could review individual rentals if clubs plead hardship; clubs would need to supply financial information

The Board noted if the $2,875 was split uniformly between the five member clubs then the rental would be $575 per club per annum. Member Vincent suggested that was too much for the netball and tennis clubs and instead proposed that the rentals be set at $300.00 per club per annum.

Motion

Moved Member Vincent, seconded Member Davidson

resolved that the Otautau Community Board set the annual rentals payable by member clubs of the Holt Park Recreation Centre Inc at $300.00 plus GST per annum; effective 1 July 2016.

In seconding this motion, Member Davidson advised he thought the Board should be promoting the Town and was being far too harsh in setting the rentals this high.

This motion was not carried due to failure to get a majority in support and the Chairman, Member Bekhuis proposed an amendment suggesting that the total rental be set at $2,000 per annum to be split uniformly between the five member clubs.

Member Joyce seconded the amended motion. The Chairman put the amendment and a division was called for, voting on which was as follows:

For

Member Bekhuis

Member Joyce

Member Gutsell

Member Vincent

Cr Baird

Against

Member K Davidson

Abstained

Member P Herrick (due to conflict of interest being declared)

The motion was declared carried by 5 votes to 1.

Resolution

Moved Member Bekhuis, seconded Member Joyce

Recommends that the total rental for user organisations of Holt Park be set at $2,000 per annum, to be split uniformly between the five member organisations, effective 1 July 2016.

Resolution

Moved Member Bekhuis, seconded Member Joyce

That the Otautau Community Board:

a) Receives the report titled “Holt Park Rentals” dated 28 September 2015.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

7.4

Local Liaison Persons Report

Record No: R/15/9/17363

Works

Member Davidson advised Mr Erskine of various works matters requiring attention around the Township.

Cemeteries

Member Gutsell informed the meeting as follows;

the trees on Bayswater Road adjacent the cemetery need trimmed
five roses donated by the Southland Heritage Rose Society have been planted at the Otautau Cemetery
a rotten tree in the RSA section requires felling
uneven graves to be attended to with a rotary hoe

The Area Officer, was requested to write to the Southland Heritage Rose Society expressing the Board’s appreciation of the donation of the roses.

Community Housing

Member Vincent advised of his attendance at a Community Housing liaison persons meeting.

Otautau Promotions

Member Joyce advised as follows;

planning for the 2015 Christmas Street Party is underway
Promotions will not be running the Classic Car Show in 2016
the Group is in the processing of obtaining new quotes for the “Welcome to Otautau” signs at each end of the Township

Alex McKenzie Memorial Arboretum

Member Davidson reported members of the pubic have been taking the daffodils from the Arboretum.

Committee Reports

8.1

Chairman's Report

Record No: R/15/9/17356

The Chairman, Member Bekhuis, advised as follows;

attendance at a Community Board and CDA Chairpersons meeting concerning Council’s organisational review
meeting with Bill Watt concerning the Holt Park camping ground upgrade
invited to be part of the elected members review panel for the Community Governance project

At this point the Chairman also raised for discussion the issue of forming a Subcommittee in order to progress the redevelopment project for the existing BMX track. The meeting agreed that the Subcommittee should consist of Members Bekhuis, Gutsell, Joyce and Vincent.

8.2

Councillor's Report

Record No: R/15/9/17365

Councillor Baird reported on matters from the District Council table which included the following;

changes to Council’s Dog Control Policy have come into effect recently
upcoming Environment Court hearing between Council and Fish and Game concerning the Around the Mountain Cycle Trail.
Council’s Dog Control report is now available.

Urgent Business

Budgets 2016/17

Mr Erskine raised for discussion the addition of several projects into the budgets for 2016/17 which will go out for public consultation as part of the 2016/17 Draft Annual Plan. The projects are as follows;

Floodbank walkway extension - $5,000.00
Alderly Street car park extension and curbing - $15,500.00
Reseal of carpark at Sports Complex - $18,000.00
Sealing/repairs to some Mary Street driveways - $15,000.

Members were supportive of these projects being included in the budgets for 2016/17 and noted they will be funded from a combination of rates and reserves.

Moved Member Herrick, seconded Member Davidson

resolved that the Otautau Community Board recommends that the following projects be included in the 2016/17 budget estimates which will go out for public consultation (such projects to be funded from a combination of rates and reserves);

Floodbank walkway extension - $5,000.00
Alderly Street car park extension and curbing - $15,500.00
Reseal of carpark at Sports Complex - $18,000.00
Sealing/repairs to some Mary Street driveways - $15,000.

4.22pm CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Otautau Community Board HELD ON 1 OCTOBER 2015.

DATE:...................................................................

CHAIRPERSON:...................................................

Otautau Community Board

05 November 2015

Action Sheet

Otautau Community Board

Wallace Community Board, 31-Jan-2013

13.01.4.0 Otautau Sewerage Connections

Name(s):

Dates:

The Board queried the sewerage connection status of several Otautau properties.

Officer’s comment

Updated 30 October 2014

Council prosecuted the owner of a property on the Otautau Wreys Bush Road for failing to connect to the sewerage scheme in the Invercargill District Court on 24 October 2014. The defendants did not appear and were both convicted and fined.

Updated 4 December 2014

The Board is advised that the above property owner has informed Council he is trying to save money to connect; the owner has been advised that to avoid further Court action and costs he should arrange for a building consent for the sewer connection as soon as possible.

Updated 25 February 2015

Building consent was issued for a property on the Otautau Wreys Bush Road on 22 January 2015.

Updated 28 May 2015

The Board enquired if Council would consider connecting the property on the Otautau Wreys Bush Road and adding the charges onto the owner’s rates or place a caveat over the title. Staff to investigate and report back to the Board.

Updated 8 June 2015

The Finance Manager advises that in relation to setting up an informal loan arrangement and registering a charge against the title, that Council has set up such arrangements in the past and these typically haven’t worked in Council’s favour with the debts still being outstanding 5+ years later and Council’s only option being to incur legal costs to seek judgement (which may still not see payment being made promptly), or wait until the property is sold (which is often not likely in these type of cases).

The Finance Manager confirmed that this responsibility falls on the ratepayer and that Council is unable to assist in this instance.

Updated 9 July 2015

The Board requests that this item remain on the Action Sheet. Further Court action may ensue if the property is not connected prior to the building consent lapsing in January 2016.

Marron, M

Response

01/12/15

Wallace Community Board, 22 August 2013

13.06.4.0 Playground Equipment – Centennial Park

Name(s):

Dates:

The Board was informed that a meeting with the Area Engineer, Chairperson & Plunket President has occurred where the purchase and installation of new playground equipment for Centennial Park was discussed. The equipment will cost approximately $12,000 with the Board contributing $5,000, Otautau Plunket $3,000 and a funding application for the remaining $4,000 will be completed by the Area Engineer

Officer's Comment

Updated 31 October 2013

Area Engineer is meeting with Plunket Representatives prior to the next Board meeting to finalise the equipment to be installed. Venture Southland has submitted a funding application on behalf of the Board to assist with the costs of purchasing the equipment.

Updated 4 December 2013

The SDC Allocations committee have granted $2,000 in funding to this project.

Updated 6 March 2014

Otautau Plunket has confirmed they have $8,000 set aside and are awaiting the outcome of a further grant application in the amount of $2,000. Once this is known a meeting with the Area Engineer will be arranged to sign off on the new equipment.

Updated 20 May 2014

The Board has received $500.00 from the SDC Community Initiatives fund to assist towards extending the playground.

Updated 24 September 2014

Otautau Plunket Group have re-applied for a grant to the Ministry of Education; still awaiting their reply. Otautau Plunket Group is also waiting to hear the outcome of another couple of applications as well.

Updated 31 October 2014.

Plunket have received a grant of $5,000 from the Ministry of Education; all funding is now and place and the finalising of equipment will be completed as soon as possible.

Updated 9 April 2015

New equipment has been agreed upon and will be installed by the end of June 2015.

Updated 3 July 2015

New equipment has arrived with the placement still to be confirmed. Weather has also delayed progress on this item. Equipment will be installed once weather improves.

Updated 25 September 2015

The siting of the equipment was discussed at a recent informal meeting; a location to the north of the junior playground is the new preferred site.

Updated 1 October 2015

Equipment will be installed by the end of November.

Erskine, G

Bekhuis, A

Response

30/11/15

Otautau Community Board, 10 July 2014

14.06.6.3 Street lighting

The Board discussed the issue of lighting at the juncture of the Otautau-Drummond Road and Lindsay-Calcium Road; the Area Engineer advised a works order has been issued for this project as well a light at the corner of Boundary Road and Fairfax-Isla Bank Road.

Officer’s Comment

Updated 25 September 2014

Lights have not been installed as yet.

Updated 25 February 2015

The Roading Asset Engineer advised PowerNet have quoted approximately $30,000 to install the new light which is well in excess of the budget. Staff have investigated solar options and have had initial discussions with suppliers however the prices supplied have only been for the units. Staff are currently following up with Otago Power Services regarding the installation options and costs; a price is expected in the next two weeks.

Updated 5 March 2015

The Board expressed concern at the length of time taken to progress this item and noted there has already been a fatal accident at this intersection. The Board requested the Group Manager, Services and Assets be advised of the Board’s concern and advising that the Board requests this light be installed as soon as possible, regardless of the cost.

Updated 22 April 2015

Staff pursuing options and working with NZTA. Quote for street lighting as requested is expected during the week beginning 28 April 2015.

Updated 28 May 2015

The Board was advised by Council’s Roading Asset Management Engineer, Mr Hartley Hare, that a cost of approximately $13,000 was received at the end of April to install a Solar LED light unit. Considering the improvement works already completed at the corner of the Otautau Drummond Road and Lindsay Calcium Road along with no further recorded crashes over the past five years, installation of a flag light at this cost cannot be justified on the crash history alone.

However, Mr Hare did comment that with Council wanting to move to LED lighting this intersection provides an ideal candidate to carry out a trial using Solar LED technology. This site has been chosen due to it being the only night-time intersections fatality site within Southland District Council area over the past five years.

The supply and installation of the unit is expected to take 3-4 months.

Updated 4 August 2015

The installation date has not been set; Roading Asset Management Engineer to follow up and advise.

Updated 23 September 2015

Mr Hartley Hare advises they have been ordered but the supplier can’t confirm when they will be supplied as they are coming from overseas.

Updated 23 October 2015

The unit is in transit and due into Tauranga mid-November, it is hoped that it will be with the installer in mid to late November 2015.

Name(s):

Hare, H

Marshall, I

Dates:

Response

30/11/15

Otautau Community Board, 16 April 2015

Wallace Walkway Signage

The Chairman and the Area Engineer to follow up on suitable signage and report back to the Board.

Name(s):

Erskine, G

Bekhuis, A

Dates:

Response

29/10/15

Officer’s Comment

Mr Erskine tabled suggestions for the Wallace Walkways signage to be attached to the existing “road ahead” signage in place on the walkway. The Board agreed to take these signs into consideration when deciding on appropriate signage.

Updated 29 October 2015

Signs have been installed and are being unveiled on 30 October 2015.

Otautau Community Board

05 November 2015

Otautau Community Board Action Sheet

Open Action Items

Author	Due Date	Subject	Notes
Greg Erskine	1/12/2015	Venture Southland Report to Otautau Community Board - Holt Park Camping Ground Upgrade	Venture Southland will add anecdotal information to the report regarding the estimated current income of the camping ground and potential income for the township from blueberry pickers at the Otautau Blueberry Country Farm. A maintenance plan for the upgraded camping ground facilities should be done by the area engineer. Additional information has been provided by Venture Southland. Area Engineer to complete maintenance plan.
Roy Clearwater	31/10/2015	Request from Otautau School - Pedestrian Crossing	A meeting with representatives from Otautau School and the Roading Department will be held when School recommences for the year. Mr McCallum from the Roading Team and the Area Engineer met with representatives of the school regarding the Main Street pedestrian crossing. He is going to investigate rules around flashing warning lights and other warning devices that may be useful. Mr McCallum advises the Roading Department has been approached by several schools wanting variable speed limits within the Southland District. Staff are working towards putting a plan together regarding speed limits for school zones located within the District. A prioritisation chart to compare Southland schools based upon roll count, speed, road classification etc has been completed. From this chart Rimu School ranked highest which was backed up from a site visit and active warning school signs were installed at Rimu School as a 'trial'. The signs have now been up a couple of months and their effect on traffic and behaviour is being measured. The Roading Department wishes to have some measurable data/statistics to help justify installing additional signs in the future at other schools (eg like Otautau). From the prioritisation chart that was prepared Otautau School is actually ranked 3rd on the list however from an engineering point of view it is probably the next highest risk. The current active school signs at Rimu School will be monitored to ensure they are infact effective and not a hazard in their own right. Once Council has gathered the above evidence to support installing Active Warning School Signs - then the Roading Engineers will be back out to Otautau school to investigate this site further.
Greg Erskine	29/10/2015	Repairs to floodbanks	The Board agrees to meet the cost of the external consultant’s fee up to a maximum of $4,000 to prepare the Resource Consent application for the repairs to the floodbank at the base of Slaughterhouse Road; such costs to be a charge against the Roading Budget. The consultant did some investigations and advised the Board did not require a Resource Consent for the installation of the new floodbank. This work should be undertaken before Christmas. The Board also agreed not to pursue the gravel extraction below the Main Street bridge; Environment Southland has agreed to do some spraying and to remove the tree growing in the gravel island.
Kelly Tagg	20/10/2015	Otautau BMX Track upgrade	The Board agrees to consider any potential changes to the Otautau BMX Track at the Estimates meeting scheduled for 5 November 2015. The Chairman will raise the matter of establishing a BMX Track/Centennial Park Upgrade Subcommittee as part of the Chairman's Report. A subcommittee consisting of Members Bekhuis, Gutsell, Joyce and Vincent has been established and the first meeting has been held. Plans for the redevelopment are being prepared for consideration by the Board.
Greg Erskine	10/08/2015	Event sign, Main Street, Otautau	The Board agrees to replace the existing events signage on Main Street, Otautau with an updated version of same at a cost of approximately $5,500; such costs to be a charge against Township Operating Costs - General Projects. Signs company has original drawings to modify and provide minor changes as suggested by the board rep. Representatives of the Board met with Creation Signs to discuss options for the new sign. Draft sign options have been received and will be considered by the Board.
Greg Erskine	01/12/2015	Dog signs on floodbank walkways	The Board requests signage be installed on the floodbank walkways advising that dogs are to be "on-leash" at all times. Signs have been ordered and will be installed in November.
Kevin McNaught	01/12/2015	Otautau Town Hall disposal	The Board requests that the Strategic Property Manager provide an update on progress concerning the disposal of the Otautau Town Hall. A draft document has been prepared and will be presented to the Board in due course. A meeting has been organised with Board Chairman to confirm the tender documents.
Greg Erskine	01/12/2015	Footpath repairs, Otautau Township.	The Board accepted Central Western Roading’s contract price of $100 per square metre to carry out footpath repairs in the Otautau Township to a maximum of $15,000. Repair work to commence in November.
Kelly Tagg	29/10/2015	Holt Park Rentals	The Board to reconsider the amount of the rentals at the Board Estimates meeting to be held on 5 November 2015. Rentals were set at $400.00 per club per annum from 1 July 2016, the Area Officer to advise Member Clubs.

Recently Closed Action Items

Author	Completion Date	Subject	Notes
Kelly Tagg	29/10/2015	Brightwood Development Contributions	The Board requests the Area Engineer investigate the transferring of the Otautau Brightwood Development Reserve to the Otautau General Reserve. Information with Finance team to complete. Reserve will remain separate and will be used for next available project.
Kelly Tagg	29/10/2015	Budgets 2016/17	The Otautau Community Board recommends that the following projects be included in the 2016/17 budget estimates which will go out for public consultation (such projects to be funded from a combination of rates and reserves); Floodbank walkway extension - $5,000 Alderly Street car park extension and curbing - $15,500 Reseal of carpark at Sports Complex - $18,000.00 Sealing/repairs to some Mary Street driveways - $15,000. Included in 2016/17 Estimates report.
Kelly Tagg	29/10/2015	Holt Park Rentals	The Otautau Community Board directed that all rentals payable by members of the Holt Park Recreation Centre Inc be set at $400.00 plus GST per annum, effective 1 July 2016. The Otautau Community Board directed that all rentals payable by members of the Holt Park Recreation Centre Inc be set at $400.00 plus GST per annum, effective 1 July 2016.

Activity	Project	Type	Year	Budget	Status	Officer’s Comments
Council Buildings/Property	Upgrade camping ground - sewerage connection, new ablution block, new kitchen, new huts & chalets	LOS	15/16	$240,000
Roading and Transport	Footpaths Upgrade	REN	15/16	$12,092
*Roading and Transport*	*Footpaths Upgrade*	*REN*	*14/15*	*$11,694*	*Not Started*	*Contractor workload delayed commencement*
*Parks and Reserves*	*Township Walking Tracks Project*	*LOS*	*14/15*	*$5,294*	*Started –* *Design complete but no physical work*	*Delay with Kiwi Rail plans/price for pedestrian crossing in fill*

Otautau Community Board

5 November 2015

Description: sdclogo

Annual Plan 2016/2017 - Draft Estimates Report

Record No: R/15/10/17972

Author: Greg Erskine, Area Engineer

Approved by: Ian Marshall, GM - Services and Assets

☐ Decision ☒ Recommendation ☐ Information

Purpose

1 This report provides an overview of the forecasted services for the Otautau Community Board in 2016/17. It includes any variations from what was forecasted in year two of the
Long Term Plan (LTP) 2015 - 2025.

2 Council has streamlined its 2016/17 Annual Plan process and as a result the Board is only required to review your estimates for significant changes. In addition, consideration should be given to funding any significant changes from reserves where appropriate.

Executive Summary

3 The draft estimates will be incorporated into the Council’s Draft Annual Plan which will be released for consultation in February 2016. Once the plan is finalised (and subject to any changes resulting from submissions), the estimates shown for 2016/17 will be used to set rates for the year beginning 1 July 2016.

Recommendation

That the Otautau Community Board:

a) Receives the report titled “Annual Plan 2016/2017 - Draft Estimates Report” dated 30 October 2015.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Approves variations in the Otautau estimates from year two of the Long Term Plan.

e) Estimates for the year commencing 1 July 2016 be adopted for inclusion in the Council’s Draft Annual Plan (subject to any amendments made at the meeting).

f) Requests the levy of the following rates and charges (including GST) for the year commencing 1 July 2016 based on the approved estimates in (e) above.

Rate Description Rate (GST incl.)

Otautau CB - Commercial Rate $73,533

Otautau CB - Residential Rate $104,226

Otautau CB - Rural Rate $10,800

Otautau Hall Rate $12,370

Otautau Pool Rate $13,496

g) Identifies the key highlights for the local area (to be agreed at the meeting).

Content

Background

4 The draft estimates for the Otautau Community Board for 2016/17 have been based on forecasted information from year two of the LTP 2015 - 2025.

5 The objective of these estimates is to highlight variations from year two of the LTP and set rates for 2016/17.

6 This report has the following appendices:

Appendix 1: This section is broken into rate types and includes a list of business units that make up the rate type and financial summary statement which shows the expenditure and income and rates calculation.

Appendix 2: A list of projects to be undertaken in the 2016/17 year.

Appendix 3: A list of reserves with the opening balance and projected closing balance.

Issues

7 The following table details the key variances from what was originally included in year two of the LTP and what is planned now:

Project Variances

Project Description	Annual Plan 2016/17	LTP 2016/17	Variance	Funding	Comments
Alderly Street kerb and seal car park at BMX area	$15,500	-	$15,500	Reserves	New project as identified by Board.
Hulme Street seal complex car park	$18,000	-	$18,000	Reserves	New project as identified by Board.
Mary Street construct and seal accessways	$15,000	-	$15,000	Reserves	New project as identified by Board.
SCADA upgrade at four stations	$80,000	-	$80,000	District Funding	Upgrading current Datran SCADA system to Kingfisher SCADA system to be in line with all other schemes.

Other Variances

Business Unit	Account	Annual Plan 2016/17	LTP 2016/17	Variance	Comments
Library	Maint assets under $1,000	$750	-	$750	Two new chairs

Business Unit

Account

Annual Plan

2016/17

LTP 2016/17

Variance

Comments

Library

Maint assets under $1,000

$750

Two new chairs

Stormwater Consenting Update

8 The Board will be aware from previous meetings that Council has discharge applications lodged with Environment Southland for a number of townships across the district. It is a requirement from Environment Southland that such discharges are consented in line with other authorities within the region.

9 Council staff have been in discussions with Environment Southland staff for some time to ensure that any conditions included within the consent are appropriate given the relatively small scale nature of the discharges and the impact these will therefore have on overall water quality.

10 Council staff have now received and are reviewing draft sets of conditions to understand the impact on individual townships. Initial impressions of the conditions are that they are largely favourable and reflect the discussions held around the nature and scale of the discharges. Some monitoring will be required but it is unlikely to be as onerous as previously indicated.

11 Once conditions have finally been agreed it will then be necessary to meet with submitters to determine if the conditions address their concerns. If all submitters are happy that their concerns are being addressed and agree to withdraw their submissions, it is hoped that the consents can be issued without the need to go through a formal hearing process.

Revaluations

12 Section 9(1) of the Rating Valuations Act 1998 requires Council to revise its District Valuation Roll at least every three years. Quotable Value Limited, Council’s valuer, are currently revaluing all rateable properties in Southland. Ratepayers will be notified in December of their proposed valuation and have until late January 2016 to lodge an objection. The final valuations will be provided to Council in February/March 2016, and these values will be the basis for the 2016/17 rates strike.

13 Please note, any ‘rate in the dollar’ calculations included in this report are based on the current District Valuation Roll (ie September 2012 valuations) and will be subject to change as a result of the 2015 valuation. Council anticipates that the draft 2016/17 Annual Plan will also be prepared based on the September 2012 valuations.

Factors to Consider

Legal and Statutory Requirements

14 The Annual Plan 2016/17 is a requirement of the Local Government Act 2002 and is also closely aligned with the Local Government (2002) Rating Act.

Community Views

15 Significant or materially different variances from the LTP will be included in a consultation document and released for consultation from 30 January 2016 to 29 February 2016.
As a result of the submission process, amendments may be made prior to Council formally adopting the Annual Plan in June 2016.

Costs and Funding

16 The same assumptions that were made when preparing the LTP have been applied in these estimates, including the borrowing rate, which has been held at 6.25% per annum, consistent with the 2015 - 2025 LTP. This interest rate is based on the BNZ three year fixed interest rate at the time of setting the LTP assumptions (August 2014). Inflation rates have also been kept consistent with BERL rates adopted in the LTP. Interest on reserves has been calculated at 4.19% on the average of these balances at year end and is consistent with the 2015 - 2025 LTP.

Policy Implications

17 The LTP sets out the directions or outcomes the community desires and the activities of Council that will contribute to achieving these outcomes over 10 years. These estimates have been prepared using year two forecasted data in the LTP. Any differences between the LTP and Annual Plan budget have been identified and explained in the Issues Section of this report.

Analysis

Options Considered

18 The Engineer has reviewed the original LTP numbers and revised as necessary, the options are to accept the report or amend it.

Analysis of Options

Option 1 - Accept the estimates as proposed in this report

Advantages	Disadvantages
· Enables an Annual Plan to be compiled in advance with the set time frame.	· None.

Option 2 - Amend the estimates proposed in this report

Advantages

Disadvantages

· Further changes can be made to the LTP budgets.

· Rates requirement may need to be recalculated.

· May impact the delivery of the
Annual Plan within the set timeframe.

Assessment of Significance

19 The contents of this report is not deemed significant under the Significance and Engagement Policy.

Recommended Option

20 Option 1 which accepts the estimates as proposed in this report is recommended.

Next Steps

21 The estimates will be summarised in Council’s Draft Annual Plan. Significant or materially different variances from the LTP will be included in a consultation document and released for consultation in February 2016. The final Annual Plan including changes made as a result of consultation will be adopted by Council in June 2016.

Attachments

There are no attachments for this report.

Sewerage	$29,989
Water	$5,489

Area Engineer	Greg Erskine
Manager, Area Offices	Chris Dolan