HUTT CITY COUNCIL

 

Community Plan Committee

 

Report of a meeting held in the Council Chambers, 2nd Floor, 30 Laings Road,
Lower Hutt on

 Tuesday 21 February 2017 commencing at 9.30am

 

 

 PRESENT:                       Mayor WR Wallace (Chair)

Cr G Barratt                                             Cr C Barry

Deputy Mayor D Bassett                         Cr L Bridson

Cr J Briggs                                                Cr MJ Cousins

Cr S Edwards                                           Cr T Lewis

Cr M Lulich                                              Cr G McDonald

Cr C Milne                                                Cr L Sutton

 

APOLOGIES:                  There were no apologies.

 

IN ATTENDANCE:       Mr T Stallinger, Chief Executive

Ms K Kelly, General Manager, Strategic Services (part meeting)

Mr B Sherlock, General Manager, City Infrastructure 

Ms J Raffills, General Manager, Governance and Regulatory (part meeting)

Mr M Reid, General Manager, Community Services

Mr B Kibblewhite, Chief Financial Officer

Mr P Benseman, Budgeting and Reporting Manager

Mrs J Stevens, Corporate Planner

Mr B Hodgins, Divisional Manager Parks and Gardens (part meeting)

Mr G Craig, Divisional Manager City Development (part meeting)

Mr M Sherwood, Divisional Manager Leisure Active (part meeting)

Mr S Keatley, Community Facilities Manager (part meeting)

Ms M Laban, Community Projects and Relationship (part meeting)

Mr H Shafiee, Economist (part meeting)

Mr P Maaka, Urban Design Manager (part meeting)

Mr J Partridge, Environmental Sustainability Manager (part meeting)

Mr G Stuart, Divisional Manager Regulatory Services (part meeting)

Mr A Yip, Manager Strategic Projects (part meeting)

Mr L Allott, Chief Information Officer (part meeting)

Ms K Glanville, Senior Committee Advisor (part meeting)

Ms K Stannard, Manager Secretariat Services

Ms H Clegg, Minute Taker (part meeting)

 

 

 

PUBLIC BUSINESS

 

1.       APOLOGIES 

There were no apologies.

2.       PUBLIC COMMENT

Ms Noeline Coleman and Ms Karen Waterreus presented a petition relating to the sale of Britannia House.  Ms Coleman confirmed that the petition had been presented to the Trustees of Britannia House.  She stressed that it was important for Council to be aware of the public concern with the way the Britannia House Trust was being wound up. 

 

The Chief Executive accepted the petition.

 

Mr Tom Bennion and Mr Mike Fisher spoke in regard to Petone 2040.  Mr Fisher explained that the $50,000 requested would assist in further developing the priority projects from the 15 projects identified to date.  He stated that since 2008, there had been substantial changes in Petone and the Petone 2040 project had enabled a strategic approach to be taken for the development of the area.  He highlighted that strategic infrastructure, the Jackson Street heritage area, traditional housing character of Petone and the North Park area for future urban growth as being the top projects.  He highlighted that continued funding from Council would enable this important work to continue.  Mr Bennion explained the importance of planning, he highlighted the high level of public engagement to date and the benefits of the project.

 

Mr Max Shierlaw expressed concern with the process with the annual plan.  He reminded members of the 2016 community survey which showed a nil rates increase was a priority.  He suggested three options should be consulted on within the Consultaton Document.  He considered that two members had a conflict of interest in that they publicly pledged to vote against what was going to be publicly consulted on.  He believed the two members were required to refrain from taking any part in the annual plan process. 

 

Mr Allan Hewson and Ms Pania Gray, representing Petone Sportsville, highlighted that Sport New Zealand was fully supportive of the sportsville project and highlighted that one of Council’s key strategies for the future was to have healthy residents.  Mr Hewson explained that last year Council directed that the design process be revisited and that this had occurred with input from Council officers and Petone 2040. 

 

Mr Dave Head and Mr Greg Ross, representing Wainuiomata Sportsville, explained that Board members had been working with Council’s Leisure Active Division and held discussions with the architects concerning site layout and building design.  He confirmed the number of member clubs had risen to 11 and that as of February 2017 all but two had been approached for letters of support.  Mr Ross highlighted that there was unanimous support from the clubs for the sports hub.  He advised that the Board was wanting to take the sports hub concept to the wider community, including Grey Power and schools. 

 

3.

Presentation by the Mayor and Chief Executive

Mayor Wallace explained that over the past six years, Council had been charged with rebuilding a tired City and that the rejuvenation plan had resulted in reinvestment occurring within the City.  He further explained that the rejuvenation had occurred whilst maintaining the lowest rates increase in the region during those six years.  He cautioned that to achieve this, members would be faced with making hard decisions and there would be the need to focus on key projects.

 

Mayor Wallace highlighted the upcoming discussion regarding Council’s Financial Strategy.  He explained that the current Financial Strategy had served well in reducing debt, but that in order to continue with the rejuvenation programme, a different Financial Strategy had been suggested by Council’s Chief Financial Officer.  He stated that the proposed new strategy would ensure financial stewardship, at the same time allowing for the rejuvenation programme, whilst maintaining an AA credit rating and keeping any rates increase to a minimum.

 

The Chief Executive supported Mayor Wallace’s opening remarks adding that the redirection and rejuvenation programme of Council was delivering good results.  He stated that the budget would set the direction of Council for the next three years.  He reiterated that the draft budget, as it stood, proposed the lowest rates increase in the region. 

 

 4.      CONFLICT OF INTEREST DECLARATIONS   

Cr Edwards determined that, while keeping the level of rates down was a key priority, he assured members that he had no predetermination and had an open mind on whether that was what the community wanted.  He stated that if the results of the public consultation showed that there was room for an increase in rates to accommodate the proposed projects, he would be satisfied that due process had occurred.

Cr Milne determined that he had no predetermination, had an open mind and was looking forward to debating this year’s Financial Strategy.

Cr Cousins declared a conflict of interest as a Director of Hutt City Community Facilities Trust.

Cr Barry declared a conflict of interest as a member of the Wainuiomata Cricket Club.

Deputy Mayor Bassett declared a conflict of interest as a Director of UrbanPlus Ltd.

Cr Milne declared a conflict of interest as a Director of Seaview Marina Ltd.

5.

Draft Budget 2017/18 (17/155)

Report No. CPC2017/1/61 by the Chief Financial Officer

 

The Chief Financial Officer elaborated on the report.  He stated that the recent revaluations of residential properties within the City would impact on rates for some properties, due to the proportionate rating system the City operated under.  He further stated the draft budget provided for an average 2.3% rates increase which was likely to be the lowest in the region.  He advised that the interest expenses were forecast to drop resulting in a lower level of debt.

The Chief Financial Officer highlighted the changes made to the capital budget and highlighted the list of additional projects that were not included in the draft budget. 

In response to a question from a member, the Chief Financial Officer stated that Council’s Communications team would assess the best way to publicise all the financial information including documents and videos explaining the status quo and the impact of the projects on the budget.

In response to a question from a member, the General Manager, Community Services advised that funding for the dedicated staff member at Petone Settlers Museum was $60,000.

Mayor Wallace advised that the Living Wage matter would be discussed at the Finance and Performance Committee in early March.  He urged members and non members to attend the meeting.

Members noted that the proposed new Financial Strategy allowed for rejuvenation based on affordability and allowed for the full cost of projects to be calculated, whereas the current Financial Strategy was focused on debt reduction.  

The Chief Financial Officer reminded members that capital works were funded from debt and that rates increase was forever and compound with time.  He advised that the proposed new Financial Strategy was the first of its kind in local government.  He further advised that it was a realistic strategy to use, being more transparent and enabling opportunities for the future Council to realistically assess new projects. 

Members discussed the amount of debt the proposed new Financial Strategy was showing and the burden this may place on ratepayers.  Members noted that the proposed new Financial Strategy would remove the adhoc nature of previous budgets and that it would give the opportunity for Council to undertake projects and better control debt.  

Members discussed the existing 1% rejuvenation rate and whether to include it in the Consultation Document to gather public opinion.

Mayor Wallace thanked the Chief Financial Officer and officers for their work to date.  He cautioned members that the remainder of the meeting would be prioritising ‘must-have’ projects over ‘nice-to-have’ projects.

 

Resolved: (Mayor Wallace/Cr Barratt)                              Minute No. CPC 17101

“The Committee recommends that the Council:

(i)   adopts the draft summary budget and capital project plan attached as appendices 1 and 2 to the report;

(ii)  agrees to a draft increase in rates by an average of 2.3% in 2017/18;

(iii) agrees to the proposal to change the Financial Strategy, to;

(a) rates increases limited to the Local Government Cost Index;

(b) net debt to be no more than;

(aa) 150% of Total Revenue in years 1-3 of the plan;

(bb) 130% of Total Revenue in years 4-6 of the plan;                                      

(cc) 110% of Total Revenue in years 7-12 of the plan;                                     

(dd) 90% of Total Revenue in year 13 of the plan and beyond;            

(c) net debt can be increased to 170% of Total Revenue should the need arise following a significant natural disaster; and

(iv)   considers the list of additional items not currently included in the draft budget.”

Cr Bridson requested that her dissenting vote be recorded against part (i) above.

Cr Milne requested that his dissenting vote be recorded against part (ii) above.

The motion was declared carried by division with the voting as follows:

For

 

Mayor Wallace

Deputy Mayor Bassett

Cr Barratt

Cr Barry

Cr Briggs

Cr Edwards

Cr Lewis

Cr Lulich

Cr McDonald

Cr Sutton

 

Against

 

Cr Bridson

Cr Milne

 

Total: 10

2

 

The meeting adjourned at 11.15am and resumed at 11.30am.

 

The General Manager Community Services elaborated on the War Memorial Library and Petone Library upgrades.  He acknowledged that certain work on the libraries was nice-to-have rather than essential health and safety requirements.  Members acknowledged that The Dowse Art Museum housed one of the best art collections in the country. 

 

Members agreed that the Colin McCahon artwork would be part of the public art strategy and report through the Arts and Culture Subcommittee.

 

Members agreed that the following projects would be included in the draft budget:

 

MOVED:  (Mayor Wallace/Deputy Mayor Bassett)

 

To include $300,000 for the Living Wage for the next 20 years in the draft budget.

 

AMENDMENT MOVED:  (Cr Barry/Cr Briggs)

 

To include $600,000 for the Living Wage for the next 20 years in the draft budget.

 

The amendment was declared LOST on a show of hands on the casting vote of the Chair.

 

Resolved(Mayor Wallace/Deputy Mayor Bassett) (casting vote of the Chair)                                                                                                                      Minute No. CPC 17102

“To include $300,000 for the Living Wage for the next 20 years in the draft budget.”

 

·           Water resilience.

·           Urban Growth Strategy.

·           Riverlink Stages.

·           Significant ecosites, landscape areas and coastal natural character areas.

·           Wainuiomata Hub and Naenae Hub..

·           Economic Development Stimulus Package.

·           Science and Technology.

·           Petone 2040 Spatial Plan.

·           District Plan Work Programme.

 

Resolved: (Cr Barry/Cr Briggs) (on a show of hands)      Minute No. CPC 17103

“That Wainuiomata and Petone Sportsvilles be included in the draft budget.”

 

The motion was declared CARRIED on a show of hands with eight votes in favour and two against.

 

Resolved(Mayor Wallace/Deputy Mayor Bassett)         Minute No. CPC 17104

“That Council:

(i)          asks the Strategic Leadership Team to review the list of projects to identify those that were necessary for health and safety or maintenance reasons and include those items in the draft budget; and

(ii)        asks the Strategic Leadership Team to review the nice-to-have items as lower priority items or excluded items.”

Members agreed to ask officers to provide a more definite timeframe for Petone and Wainuiomata Sportsvilles, Avalon Park and Riddiford Gardens and that the Annual Plan Subcommittee be used to provide any guidance needed on the final list of items included in the draft budget.

Members agreed on the items to be included in the Consultation Document for the proposed annual plan.

 

6.

HCC Owned Wharves - Options for the Future (17/1)

Report No. CPC2017/1/42 by the Divisional Manager, Parks and Gardens

 

The Divisional Manager, Parks and Gardens elaborated on the report. 

 

Resolved: (Mayor Wallace/Cr Barry)                                 Minute No. CPC 17105

“That the Committee:

(i)    notes that a comprehensive survey of the City’s wharves reveals continued deterioration of these ageing structures, such that the level of funding currently provided in the Long Term Plan will be insufficient to maintain the wharves to the required standard;

(ii)   notes that the wharf structures, being between 88 and 122 years old, are near the end of their expected useful lives, such that full replacement or rationalisation should be considered;

(iii)  notes that the Petone Wharf is temporarily closed due to damage sustained in the November 2016 earthquake and will not reopen until such time as a decision is made on its future and agreed works undertaken;

(iv)  notes that the $400,000 capital renewal budget in this year’s annual plan is being spent mostly on Days Bay Wharf with only essential works to prevent further cost to Council on the three other wharves;

(v)   notes that this effectively means that there will be deferred maintenance of approximately $750,000 on the other three wharves, which will remain deferred until such time as the long term future of each wharf is decided; and

(vi)  agrees to engage with the public on the options for the wharves as part of the Community Plan consultation as follows:-

Wharf

 

Fully Refurbish

Demolish and don’t replace

Partially demolish and refurbish

 

Demolish and replace

Rona Bay

Days Bay

 

Pt Howard

 

Petone

√”

The motion was declared carried by division with the voting as follows:

For

 

Mayor Wallace

Deputy Mayor Bassett

Cr Barratt

Cr Barry

Cr Briggs

Cr Cousins

Cr Edwards

Cr McDonald

Cr Milne

 

Against

 

Cr Bridson

Cr Lewis

Cr Lulich

Cr Sutton

Total: 9

Total: 4

The meeting adjourned at 1pm and resumed at 2 pm.

After taking advice from officers, Mayor Wallace advised members of the officer’s concerns regarding the additional workload required by including the new options for three of the wharves considering that there was no intention of carrying out those options for the relevant wharves.  He acknowledged the officer’s advice and noted that officers were expecting a high number of submissions on the wharves.

 

Resolved (Mayor Wallace/Cr Bridson)                           Minute No. CPC 17106

“That the Committee revokes Minute No. CPC 171075 part (vi) and replaces the wording with:

(vi)  agrees to engage with the public on the options for the wharves as part of the Community Plan consultation as follows:-

Wharf

 

Fully Refurbish

Demolish and don’t replace

Partially demolish and refurbish

 

Demolish and replace

Rona Bay

Days Bay

 

 

Pt Howard

 

 

Petone

 

√”

 

7.

Valley Floor Review  - Ten Year Plan (17/2)

Report No. CPC2017/1/43 by the Divisional Manager, Parks and Gardens

 

The Divisional Manager, Parks and Gardens elaborated on the report.

 

Resolved: (Mayor Wallace/Deputy Mayor Bassett)          Minute No. CPC 17108

“That Council:

(i)    notes the Valley Floor Review was adopted by Council in March 2016 with the understanding that a 10 year implementation plan would be put forward for consideration as part of this year’s Community Plan;  

(ii)   notes the total estimated cost of improvement projects within the proposed 10 year implementation plan is $4.785M, which is attached as Appendix 1 to the report;

(iii)  notes that there is $1.52M within the first 10 years of the Community Plan 20-year budget, and asks officers to prioritise the ‘must-do’ projects; and

(iv)  agrees to bring forward budget provision to implement the proposed works as per the implementation plan.”

 

8.

Councils of the Wellington Region Draft Waste Management and Minimisation Plan 2017 to 2023 (17/108)

Report No. CPC2017/1/44 by the Environmental Sustainability Manager

 

The Environmental Sustainability Manager elaborated on the report.

Members expressed concern at Council’s share of the cost for employing a Regional Waste Minimisation Officer.

In response to questions from members, the Environmental Sustainability Manager advised that there may be a way to reduce costs relating to the employment of a Regional Waste Minimisation Officer.  He explained that the position would be based at Wellington City Council and that the salary cost included overheads.

Members asked the Environmental Sustainability Manager to raise Council’s concerns with the Regional Waste Minimisation and Management Plan Steering Group.

Cr Cousins signalled her intention to move a consequential motion relating to the Regional Waste Management and Minimisation Plan position.

 

Resolved: (Mayor Wallace/Cr Edwards)                           Minute No. CPC 17109

“That the Committee:

(i)    notes that under the Waste Minimisation Act 2008 Council is required to undertake a waste assessment for its district and develop and adopt a Waste Management and Minimisation Plan to encourage and promote effective and efficient waste management and minimisation within its district by 30 June 2017;

(ii)   receives the Wellington Region Waste Assessment 2016, attached as Appendix 1 to the report, and the Councils of the Wellington Region Draft Waste Management and Minimisation Plan 2017 – 2023 (draft WMMP), attached as Appendix 2 to the report, developed by a regional Governance Group and a senior officer working group, both of which have representatives from the regions territorial authorities;

(iii)  notes that in its current form these documents represent a consensus of analysis and advice from consultants and Council officers across the  Wellington Region;

(iv)  notes that the Wellington Region Waste Assessment 2016 and the Councils of the Wellington Region Draft Waste Management and Minimisation Plan 2017-2023 will be considered by each of the Councils in the region for adoption for consultation as part of those Councils Annual Plan process; and

(v)   notes that the Wellington Region Waste Assessment 2016 and the Councils of the Wellington Region Draft Waste Management and Minimisation Plan 2017-2023 were the subject of a briefing to Council held in December 2016.”

 

 

 

Resolved(Mayor Wallace/Cr Edwards)                          Minute No. CPC 17110

“That the Committee recommends that Council:

(i)      participates in a regional Waste Management and Minimisation Plan with other territorial authorities in the Wellington Region for the period 2017 to 2023;

(ii)     adopts the Councils of the Wellington Region Draft Waste Management and Minimisation Plan 2017-2023 document for special consultation along with the 2017 Annual Plan as presented subject to any final minor changes made to the draft Waste Management and Minimisation Plan by the Waste Management and Minimisation Plan Joint Governance Committee at its meeting to be held on 27 February 2017;

(iii)    notifies the Wellington Region Waste Assessment 2016 as part of the consultation process;

(iv)     notes additional funding of $39,500 per annum for six years will be required from Hutt City Council for the regional initiatives outlined in the draft Wellington Management and Minimisation Plan that Council will cost share on; and

(v)     expresses concern at the high level of overhead costs associated with this programme and ask officers to investigate what they can do to reduce the costs.”

 

Resolved(Cr Cousins/Cr Briggs)                                   Minute No. CPC 17111

“As the Regional Waste Management and Minimisation Plan officer is to be regionally funded, there should not be an automatic assumption that the person will be located within Wellington City.”

The meeting adjourned at 3.30 pm and resumed at 3.50 pm.

9.

Petone Clock Walk (17/151)

Memorandum dated 7 February 2017 by the Urban Design Manager

 

The Urban Design Manager elaborated on the report.

 

Resolved: (Mayor Wallace/Cr Barratt)                          Minute No. CPC 17112

“That the Committee recommends that Council supports in principle the Petone Clock Walk project and refers the matter to the City Development Committee and seeks support from the Petone Community Board, Jackson Street Programme and the Petone 2040 Spatial Plan Community Group.”

 

 

 

10.

Environmental Health Fee Review for 2017/18 Financial Year (17/36)

Report No. CPC2017/1/45 by the Manager Environmental Inspections

 

The Divisional Manager Regulatory Services elaborated on the report.

 

Resolved: (Mayor Wallace/Deputy Mayor Bassett)          Minute No. CPC 17113

“That the Committee recommends that Council:

(i)    adopts the statement of proposal to fix fees to recover the costs of the Council’s functions under the Food Act 2014;

(ii)   notes that the special consultative procedure will be used and directs officers to begin this process without delay; and

(iii)  appoints a subcommittee comprising Cr Cousins, Cr Edwards, Cr Sutton and Cr McDonald to hear submissions on the proposal, consider all the information and issues and then make recommendations to Council.”

 

The meeting adjourned at 4.50 pm and resumed at 5 pm.

11.

Proposed Annual Plan 2017-2018 and Consultation Document (17/84)

Report No. CPC2017/1/46 by the Corporate Planner

 

The Corporate Planner elaborated on the report.

Mayor Wallace encouraged all members to arrange their own public meetings in their own Wards to help ensure as many of the public as possible had access to the Consultation document and were able to make submissions.

 

Resolved(Mayor Wallace/Deputy Mayor Bassett)         Minute No. CPC 17114

“That the Committee:

(i)    provides guidance on the content of the Consultation Document;

(ii)   receives the non-financial information that underlies the proposed Annual Plan 2017-2018 (attached as Appendices 1 and 2 to the report);

(iii)  recommends that Council adopt the underlying information for the proposed Annual Plan 2017-2018, including financial information that reflects decisions made on the Draft Budget 2017/18;

(iv)  recommends that Council appoint a subcommittee consisting of Mayor Wallace, Deputy Mayor Bassett, Cr Milne, Cr Barry and Cr Cousins to provide ongoing guidance on the Consultation Document and Questionnaire to allow this to be submitted for typesetting; and

(v)   notes that a meeting of Council is scheduled on 14 March 2017 for the purpose of adopting the typeset Consultation Document.”

12.

rECOMMENDATION TO COUNCIL

 

Resolved:   (Mayor Wallace/Deputy Mayor Bassett)     Minute No. CPC 17115

“That Council adopts the Proposed Annual Plan 2017-2018 including the amendments agreed at the Community Plan Committee meeting held on 21 February 2017.”

13.     QUESTIONS   

There were no questions.

There being no further business the Chair declared the meeting closed at 7.15 pm.

 

 

 

 

 

WR Wallace

CHAIR

CONFIRMED as a true and correct record
Dated this 23rd day of May 2017