Notice is hereby given that an Ordinary Meeting of Southland District Council will be held on:

 

Date:                            

Time:

Meeting Room:

Venue:

 

Thursday, 23 November 2017

1pm

Council Chambers

15 Forth Street, Invercargill

 

Council Agenda - Late Items

OPEN

 

 

MEMBERSHIP

 

Mayor

Mayor Gary Tong

 

Deputy Mayor

Paul Duffy

 

Councillors

Stuart Baird

 

 

Brian Dillon

 

 

John Douglas

 

 

Bruce Ford

 

 

Darren Frazer

 

 

George Harpur

 

 

Julie Keast

 

 

Ebel Kremer

 

 

Gavin Macpherson

 

 

Neil Paterson

 

 

Nick Perham

 

 

IN ATTENDANCE

 

Chief Executive

Steve Ruru

 

Committee Advisor

Alyson Hamilton

 

 


 

 


Council

23 November 2017

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Reports - Policy and Strategy

7.4         Draft Infrastructure Strategy - Supporting Document for the 2018-2028 Long Term Plan                                                                                                                                                                                       5  

  


Council

23 November 2017

 

Draft Infrastructure Strategy - Supporting Document for the 2018-2028 Long Term Plan

Record No:             R/17/11/28234

Author:                      Nicole Taylor, Project Co-ordinator Corporate Planning

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        To consider and recommend to Council the endorsement of the draft Infrastructure Strategy as part of the information pack to be audited by Audit NZ.  These documents will form part of the 2018-2028 Long Term Plan Consultation Document being adopted in February 2018 for consultation.

Executive Summary

2        The development of the 2018-2028 Long Term Plan (LTP) is based around the scene set by the financial and infrastructure strategies. Both are required as part of the supporting documentation of the 2018-2028 LTP Consultation Document.  The strategies become part of the final LTP when it is adopted in June 2018.

3        The 2018-2028 Infrastructure Strategy (Attachment A) has been built up from the infrastructure-related Activity Management Plans (AMPs) and taking into account the significant issues facing Council over the next 30 years. A number of these were discussed by Council at the LTP workshop on 9 August 2017.

 

Recommendation

That the Council:

a)            Receives the report titled “Draft Infrastructure Strategy - Supporting Document for the 2018-2028 Long Term Plan” dated 20 November 2017.

 

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.

 

d)           Endorses the draft Infrastructure Strategy, with any amendments from this meeting for use in the audit, noting that the final documents will be presented for adoption in February prior to consultation.

 

 

 


 

Background

4        All councils are required by legislation to adopt a Long Term Plan (LTP) and review it every three years.  The LTP sets out Council’s activities, plans, budgets and policies and must be adopted before the beginning of the first year it relates to, having used a special consultative procedure to consult with the community.

5        Instead of a draft LTP, local authorities are required to develop a Consultation Document for the purpose of consulting with the community as well as making publicly available the information that provides the basis for the preparation of the LTP. The Infrastructure Strategy forms part of the supporting information and will inform the 2018-2028 LTP Consultation Document.

6        A number of workshops and meetings have been held over the past 18 months in preparation for the LTP.  As part of this, the content of Council’s Financial Strategy and Infrastructure Strategy have been discussed with the attached Infrastructure Strategy a reflection of those discussions.

7        The Infrastructure Strategy brings together the significant infrastructural issues that are likely to arise over the next 30 years, including their financial and non-financial consequences, the principal options for managing them and the implications of these issues.

Issues

8        The Infrastructure Strategy is a summary of the significant infrastructure issues facing the District over the next 30 years and the options that the Council has for managing these.

9        In their report Matters Arising From The 2015-25 Local Authority Long-Term Plans, the Office of the Auditor General commented that infrastructure strategies should be:

-     visionary – telling the story about where local authorities were, where they expected to be, and how they intended to get there;

-     realistic – including relevant assumptions and disclosures on funding, data, risks, and delivery; and

-     relational – creating the right debate and being credible by connecting with financial strategies, demographic change, and other relevant influences.

10      The 2018-2048 Infrastructure Strategy outlines the key issues around infrastructure provision. The issues identified in the strategy are similar to the issues identified in the 2015 Infrastucture Strategy. These include:

•     increasing environmental standards around water quality and water management which is impacting on the Council’s 3 waters activities

•     changes in population demographics with ageing and pockets of declining population

•     affordability, particularly with ageing infrastructure and associated renewal costs

•     the need to improve asset information/modelling to more accurately forecast renewals and evaluate options for extending asset life

•     climate change impacts on infrastructure design and re-design as it needs to renewed.

11      The strategy outlines high-level options for managing these issues that will be used to guide Council’s planning and decision-making.

12      At a high level, the Infrastructure Strategy identifies the following priorities:

•     manage the District’s infrastructure assets in the most cost effective way

•     manage the impacts of changing activity on the roading network

•     meet legislative compliance e.g. drinking water standards

•     manage the effects of declining community populations

•     provide affordable services to communities.

13     The Strategy identifies the a number of key decisions facing Council, including:

Key Decision

Indicative Timeline

Comparison of renewal programmes eg, bridges versus pavement renewal.

2018 -2021

Which option to construct for disposal of treated wastewater effluent at the Kepler site?

2018

What are the options and which is the best option for the provision of a head office building?

2019

What are the options and which option is best for finalising and for funding completion of the Around the Mountains Cycle Trail?

2018

What is the appropriate level of development for the District’s open spaces and how much investment in improvements is needed?

2018-21

How to fund stormwater capital improvement works and whether a District funding model is appropriate

2018-2021

Whether to continue to provide a service or to implement a withdrawal strategy for specific declining communities.

2021 on

14     The Infrastructure Strategy is still subject to review and refinement as the LTP, Financial Strategy and AMPs are completed.  These documents are yet to be reviewed to ensure that they are in alignment.  Although the final Infrastructure Strategy is not adopted until June 2018, the draft as proposed by Council is adopted as part of the supporting documentation for the LTP Consultation Document.

15      The key aspects that are yet to be completed include:

·      Addition of an issue around a major natural disaster and potential impact on infrastructure

·      Finalisation of some project costs.

 

16      The draft document includes comments indicating what information is still to come.


 

Factors to Consider

Legal and Statutory Requirements

17      Section 93G of the Local Government Act states that

Before adopting a Consultation Document, the local authority must prepare and adopt the information that:

(a)  is relied on by the content of the consultation document adopted under Section 93A; and

(b)  is necessary to enable the Auditor-General to give the required reports

(c)   provides the basis for the preparation of the Long Term Plan.

 

18      Part One of Schedule 10 outlines the information to be included in LTP’s.  Section nine states that part of the information to be included in the LTP is Councils Infrastructure Strategy.

19      Section 101B outlines that:

(1)  A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30 consecutive financial years.

(2)  The purpose of the infrastructure strategy is to—

(a) identify significant infrastructure issues for the local authority over the period covered by the strategy; and

(b) identify the principal options for managing those issues and the implications of those options.

(3)  The infrastructure strategy must outline how the local authority intends to manage its infrastructure assets, taking into account the need to—

(a) renew or replace existing assets; and

(b) respond to growth or decline in the demand for services reliant on those assets; and

(c) allow for planned increases or decreases in levels of service provided through those assets; and

(d)  maintain or improve public health and environmental outcomes or mitigate adverse effects on them; and

(e)   provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazards and by making appropriate financial provision for those risks.

(4)  The infrastructure strategy must outline the most likely scenario for the management of the local authority’s infrastructure assets over the period of the strategy and, in that context, must—

(a)   show indicative estimates of the projected capital and operating expenditure associated with the management of those assets—

(i)   in each of the first 10 years covered by the strategy; and

(ii) in each subsequent period of 5 years covered by the strategy; and

(b) identify—

(i)   the significant decisions about capital expenditure the local authority expects it will be required to make; and

(ii) when the local authority expects those decisions will be required; and

(iii) for each decision, the principal options the local authority expects to have to consider; and

(iv) the approximate scale or extent of the costs associated with each decision; and

(c) include the following assumptions on which the scenario is based:

(i) the assumptions of the local authority about the life cycle of significant infrastructure assets:

(ii) the assumptions of the local authority about growth or decline in the demand for relevant services:

(iii) the assumptions of the local authority about increases or decreases in relevant levels of service; and

(d)  if assumptions referred to in paragraph (c) involve a high level of uncertainty,—

(i)         identify the nature of that uncertainty; and

(ii)        include an outline of the potential effects of that uncertainty.

(5)  A local authority may meet the requirements of section 101A and this section by adopting a single financial and infrastructure strategy document as part of its long-term plan.

(6)  In this section, infrastructure assets includes—

(a) existing or proposed assets to be used to provide services by or on behalf of the local authority in relation to      the following groups of activities:

(i) water supply:

(ii) sewerage and the treatment and disposal of sewage:

(iii) stormwater drainage:

(iv) flood protection and control works:

(v) the provision of roads and footpaths; and

20     The 2018-2048 Infrastructure Strategy also includes information related to Community Services/ Facilities such as open spaces, halls and buildings which are not required to be included under section 101B(6).

Community Views

21      The Infrastructure Strategy will be publicly available on Council’s website during the LTP public consultation period as a supporting document to the LTP 2018-2028.  As a result of submissions received, Council may decide to amend any of the supporting information documents when it adopts the LTP in June 2018.

Costs and Funding

22      There are no direct cost or funding considerations related to the development of the Infrastructure Strategy.

Policy Implications

23      The Infrastructure Strategy sets the framework the asset-based AMPs need to consider as part of their planning.


 

Analysis of Options

Option 1 - Endorse the draft Infrastructure Strategy, as presented, amended for any changes agreed at the meeting

Advantages

Disadvantages

·        The documents can proceed to Council for formal adoption and meet the auditing requirements.

·        The Council would not get any further information if it required it before endorsement.

Option 2 - Request staff to consider other options and incorporate these into the documents before endorsing the draft Infrastructure Strategy, as presented, or parts thereof

Advantages

Disadvantages

·        The Council would get the additional information it needed before endorsing.

·        The auditing process may be held up depending on the time needed to provide the necessary information.

Option 3 - Do not endorse the draft Financial Strategy as presented

Advantages

Disadvantages

·        None identified

•   The auditing process may be held up depending on the time needed to provide the necessary information.

     Staff would not have Council’s input into      or agreement on what the significant      infrastructure issues are options for      responding to these.

 

Assessment of Significance

24      In terms of Council’s Significance and Engagement Policy, these matters are not considered significant. The LTP is a significant decision as it is the primary way that Council is held accountable for public expenditure.

Recommended Option

25      Option One - Endorse the draft Infrastructure Strategy, as presented, amended for any changes agreed at the meeting.

Next Steps

26      The draft Infrastructure Strategy (incorporating any changes from the meeting) will be reviewed by Audit New Zealand as part of their audit of the LTP Consultation Document in late November 2017.

27      Staff will also review the strategy to ensure that it is consistent with the draft Financial Strategy, AMPs and financial information.


 

28      The draft strategy will then be formally adopted by Council in February 2018 as part of the supporting documentation for the LTP Consultation Document. The final Infrastucture and Financial strategies, incorporating any changes as a result of consultation, will be adopted in June 2018.

 

Attachments

a             Draft Infrastructure Strategy 2018-2048    

 


Council

23 November 2017

 


 


 


 


 


 


 


 


 


 


Council

23 November 2017

 



Council

23 November 2017