HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

 

17 March 2020

 

 

 

Order Paper for Council meeting to be held in the

Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,

on:

 

 

 

 

 

Tuesday 24 March 2020 commencing at 2.00pm

 

 

 

 

Membership

 

 

Mayor C Barry (Chair)

Deputy Mayor T Lewis

Cr D Bassett

Cr J Briggs

Cr K Brown

Cr B Dyer

Cr S Edwards

Cr D Hislop

Cr C Milne

Cr A Mitchell

Cr S Rasheed

Cr N Shaw

Cr L Sutton

 

 

 

 

 

For the dates and times of Council Meetings please visit www.huttcity.govt.nz

 

Have your say

You can speak under public comment to items on the agenda to the Mayor and Councillors at this meeting. Please let us know by noon the working day before the meeting. You can do this by emailing DemocraticServicesTeam@huttcity.govt.nz or calling the Democratic Services Team on 04 570 6666 | 0800 HUTT CITY


HuttCity_TeAwaKairangi_SCREEN_MEDRES
 

 

 

 


COUNCIL

 

Membership:

13 

Meeting Cycle:

Council meets on a six weekly basis (Extraordinary Meetings can be called following a resolution of Council; or on the requisition of the Chair or one third of the total membership of Council)

POWER TO (BEING A POWER THAT IS NOT CAPABLE OF BEING DELEGATED)1:

        Make a rate.

       Make bylaws.

       Borrow money other than in accordance with the Long Term Plan (LTP).

        Purchase or dispose of assets other than in accordance with the LTP.

        Purchase or dispose of Council land and property other than in accordance with the LTP.

        Adopt the LTP, Annual Plan and Annual Report.

        Adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the LTP or developed for the purpose of the Local Governance Statement.

        Appoint the Chief Executive.

        Exercise any powers and duties conferred or imposed on the local authority by the Local Government Act 1974, the Public Works Act 1981, or the Resource Management Act 1991, that are unable to be delegated.

        Undertake all other actions which are by law not capable of being delegated.

        The power to adopt a Remuneration and Employment Policy for Council employees.

 

DECIDE ON:

Policy issues

       Adoption of all policy required by legislation.

       Adoption of strategies, and policies with a city-wide or strategic focus.

 

District Plan

       Approval to call for submissions on any Proposed District Plan, Plan Changes and Variations.

       Prior to public notification, approval of recommendations of District Plan Hearings Subcommittees on any Proposed Plan, Plan Changes (including private Plan Changes) and Variations, on the recommendation of the Regulatory Committee.

 

1       Work required prior to the making of any of these decisions may be delegated.

       The withdrawal of Plan Changes in accordance with clause 8D, Part 1, Schedule 1 of the Resource Management Act 1991.

       Approval, to make operative, District Plan and Plan Changes (in accordance with clause 17, Part 1, Schedule 1 of the Resource Management Act 1991).

       Acceptance, adoption or rejection of private Plan Changes.

 

Representation, electoral and governance matters

        The method of voting for the Triennial elections.

        Representation reviews.

        Council’s Code of Conduct for elected members

        Local Governance Statement.

        Elected Members’ Remuneration.

        The outcome of any extraordinary vacancies on Council.

        Any other matters for which a local authority decision is required under the Local Electoral Act 2001.

        Appointment and discharge of members of committees when not appointed by the Mayor.

        All matters identified in these Terms of Reference as delegated to Council Committees (or otherwise delegated by the Council) and oversee those delegations.

        Council‘s delegations to officers and community boards.

 

Delegations and employment of the Chief Executive

Review and negotiation of the contract, performance agreement and remuneration of the Chief Executive.

 

Meetings and committees

        Standing Orders for Council and its committees.

        Council’s annual meeting schedule.

 

Long Term and Annual Plans

        The adoption of the budgetary parameters for the LTP and Annual Plans.

        Determination of rating levels and policies required as part of the LTP.

        Adoption of Consultation Documents, proposed and final LTPs and proposed and final Annual Plans.

 

Council Controlled Organisations

        The establishment and disposal of any Council Controlled Organisation or Council Controlled Trading Organisation.

        Approval of annual Statements of Corporate Intent for Council Controlled Organisations and Council Controlled Trading Organisations.

 

Community Engagement and Advocacy

        Receive reports from the Council’s Advisory Groups.

        Monitor engagement with the city’s communities.

 

Operational Matters

        National Emergency Management Agency matters requiring Council’s  input.

        Road closing and road stopping matters.

        Approval of overseas travel for elected members.

        All other matters for which final authority is not delegated.

 

Appoint:

        The non-elected members of the Standing Committees, including extraordinary vacancies of non- elected representatives.

        The Directors of Council Controlled Organisations and Council Controlled Trading Organisations.

        Council’s nominee on any Trust.

        Council representatives on any outside organisations (where applicable and time permits, recommendations for the appointment may be sought from the appropriate Standing Committee and/or outside organisations).

        The Chief Executive of Hutt City Council.

        Council’s Electoral Officer, Principal Rural Fire Officer and any other appointments required by statute.

        The recipients of the annual Civic Honours awards.

 

    


HUTT CITY COUNCIL

 

Ordinary meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

 Tuesday 24 March 2020 commencing at 2.00pm.

 

ORDER PAPER

 

Public Business

 

1.       OPENING FORMALITIES - Karakia Timatanga 

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

 

2.       APOLOGIES 

3.       PUBLIC COMMENT

Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.      

4.       CONFLICT OF INTEREST DECLARATIONS

          Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

5.       Committee Minutes with Recommended Items

a)      Traffic Subcommittee

25 February 2020                                                                                          13

Recommended Items

Item i)       Bus Stop Modifications and Associated No Stopping at All Times Restrictions - Multiple Locations (20/101)                                                    15

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

Item ii)      Waione Street - Proposed P120 and P30 Parking Restrictions (19/1062)         19

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

Item iii)     Dowse Drive - Proposed No Stopping At All Times Parking Restrictions (19/1093)                                                                                                    20

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

Item v)       Page Grove - Proposed No Stopping At All Times Restrictions (19/1261)     22

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

Item vi)     Hutt Road - Proposed P120 Parking Restrictions (19/1263) 23

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

Item vii)    Miromiro Road - Proposed Flush Median and No Stopping At All Times Restrictions (19/1283)                                                                                   23

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

Item vii)    Sydney Street - Proposed No Stopping At All Times Restrictions (19/1284) 24

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

Item ix)     Cheviot Road - Proposed No Stopping At All Times Restrictions (19/1270)  24

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

Item x)       Martin Grove Extension – Proposed No Stopping at All Times Restrictions (19/1366)                                                                                                    25

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

Item xi)     Cressy Street - Proposed P15 Parking Restrictions (20/34) 26

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

 

 

Item xii)    Martha Turnell Crescent - No Stopping At All Times Restrictions (20/89)   26

Mayor’s Recommendation:

“That the recommendation contained in the minute be endorsed.”

 

b)      Policy, Finance and Strategy Committee

3 March 2020                                                                                                64

Recommended Items

Item i)       Hutt City Community Facilities Trust Draft Statement of Intent 2020/21 to 2022/23 (20/10)                                                                                       66

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

Item ii)      Seaview Marina Limited Draft Statement of Intent 2020/21 to 2022/23 (20/11)        66

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

Item iii)     Urban Plus Group Draft Statement of Intent 2020/21 to 2022/23 (20/12)        67

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

Item iv)     Council performance report for the half year ended 31 December 2019 (20/60)       68

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

 

c)       Community and Environment Committee

4 March 2020                                                                                              142

Recommended Items

Item i)       Indigenous Biodiversity Fund (20/17)                                 143

Mayor’s Recommendation:

“That recommendation parts (i) to (vi) contained in the minutes be endorsed and a new part (vii) be added as follows:

(vii)          acknowledges the efforts of stakeholders, including landowners and officers working together on the matter to get to this point and wishes for this to continue.”

 

Item ii)      Wainuiomata Marae Development (20/5)                          146

Mayor’s Recommendation:

“That the recommendations contained in the minute be endorsed.”

    

6.       Miscellaneous

a)      Proposed New Private Street Name - Subdivision of 80 Parkway, Wainuiomata (20/192)

Report No. HCC2020/2/76 by the Traffic Engineer                               151

Mayor’s Recommendation:

“That the recommendation contained in the report be endorsed.”

b)      2020 Local Government New Zealand Conference (19/280)

Memorandum dated 8 March 2019 by the Head of Democratic Services 157

Mayor’s Recommendation:

“That the recommendation part (i) contained in the memorandum be endorsed and a new part (ii) be added as follows:

(ii)   nominates the Mayor, Deputy Mayor and Cr Brown to represent Hutt City Council at the 2020 Local Government New Zealand Conference to be held in Blenheim from 16-18 July 2020.”

c)       Plan Change 43 - Residential and Suburban Mixed Use - Operative in Part (20/154)

Report No. HCC2020/2/77 by the Senior Environmental Policy Analyst 163

Mayor’s Recommendation:

“That the recommendations contained in the report be endorsed.”

d)      Wellington Water Draft Statement of Intent (20/226)

Memorandum dated 5 March 2020 by the Strategic Advisor, City and Community Services                                                                                                                     169

Mayor’s Recommendation:

“That the matter be discussed.”

 

e)      District Licensing Committee - Code of Practice - 2019-2022 (20/237)

Report No. HCC2020/2/78 by the Head of Democratic Services          212

Mayor’s Recommendation:

“That the recommendations contained in the report be endorsed.”

 

f)       Appointment of Directors/Trustee to Hutt City Community Facilities Trust, Seaview Marina Limited and Urban Plus Limited (19/1375)

Report No. HCC2020/2/79 by the Senior Advisor to the Chief Executive 220

Mayor’s Recommendation:

“That the recommendations contained in the report be endorsed.”

     

7.       Minutes

Meeting minutes Hutt City Council, 4 November 2019                                    230

Meeting minutes Hutt City Council, 10 December 2019                                   241

 

8.       Committee Minutes without Recommended Items

a)      Hearings by Independent Commissioner

17 October 2019 – 48 – 50 Mills Street – RM180521                                 282

Mayor’s Recommendation:

“That Council receives the decision from the Independent Commissioner for 48 – 50 Mills Street.”

5 November 2019 – 130 Coast Road, Wainuiomata RM190050                          309

Mayor’s Recommendation:

“That Council receives the decision from the Independent Commissioner for 130 Coast Road, Wainuiomata.”

b)      Hutt Valley Services Committee

29 November 2019                                                                                     349

21 February 2020                                                                                        355

c)       Regulatory Committee

10 March 2020                                                                                            362

d)      Audit and Risk Subcommittee

12 March 2020                                                                                            369

9.       QUESTIONS

With reference to section 32 of Standing Orders, before putting a question a member shall endeavour to obtain the information. Questions shall be concise and in writing and handed to the Chair prior to the commencement of the meeting.

10.     Sealing Authority (19/1401)

Report No. HCC2020/2/5 by the Executive Assistant, Corporate Services   374

Mayor’s Recommendation:

“That Council:

(i)       approves the affixing of the Common Seal to all relevant documents in connection with the items set out in Schedule 1 contained in the report;

(ii)     approves the deeds executed under Power of Attorney set out in Schedule 2 contained in the report.”

  

 

11.     CLOSING FORMALITIES - Karakia WHAKAMUTUNGA

 

Whakataka te hau ki te uru

Whakataka te hau ki te tonga

Kia mākinakina ki uta

Kia mātaratara ki tai

E hī ake ana te atakura

He tio, he huka, he hau hū

Tīhei mauri ora.

Cease the winds from the west
Cease the winds from the south
Let the breeze blow over the land
Let the breeze blow over the ocean
Let the red-tipped dawn come with a sharpened air. 
A touch of frost, a promise of a glorious day.

 

 

 

 

Donna Male

COMMITTEE ADVISOR

          


                                                                      27                                         25 February 2020

 

HUTT CITY COUNCIL

 

Traffic Subcommittee

 

Minutes of a meeting held in the Council Chambers, 2nd Floor, 30 Laings Road,

Lower Hutt on

 Tuesday 25 February 2020 commencing at 2.00pm

 

 

PRESENT:

Cr L Sutton (Chair)

Cr J Briggs

 

Cr B Dyer (Deputy Chair)

Cr A Mitchell

 

 

 

 

APOLOGIES:                  Apologies were received from Crs Brown and Shaw.

 

IN ATTENDANCE:        Mr D Simmons, Traffic Asset Manager

                                           Mr M Radu, Senior Traffic Engineer

                                 Mr C Agate, Traffic Engineer – Network Operations

                                 Ms T Malki, Traffic Engineer

                                 Ms K Stannard, Head of Democratic Services

                                 Ms R Bowman, Committee Advisor

 

 

PUBLIC BUSINESS

 

 

1.       APOLOGIES 

Resolved:  (Cr Sutton/Cr Briggs)                                               Minute No. TSC 20201

“That the apologies received from Crs Brown and Shaw be accepted and leave of absence be granted.”

 

Suspension of Standing Orders

Resolved:  (Cr Sutton/Cr Briggs)                                              Minute No. TSC 20202

“That Standing Order 15.1 be temporarily suspended in order to allow Mr G Scott to speak under public comment on a matter not on the agenda.  The matter is a request for a pedestrian island on Woburn Road.”

2.       PUBLIC COMMENT

Comments are recorded under the item to which they relate.     

 

Speaking under public comment, Mr G Scott noted that a petition for installing a pedestrian island on Woburn Road had been signed by 90 people from the Masonic Village and local residents. Mr Scott advised he had shown members a letter from Te Omanga Hospice which strongly supported his petition for an island installation. He reinforced that the proposed pedestrian island would not impede traffic flow on Woburn Road.

 

In response to a question from a member, Mr Scott advised that he had liaised with Council’s Traffic Asset Manager.  He said the corner of Wai-iti Crescent as the best option for the pedestrian island’s location.

 

The Traffic Asset Manager informed members that last week he had met with Mr Scott. He reinforced that the 12 months expenditure had already been allocated. He believed installing a pedestrian island on Woburn Road had value, but the proposed location already had a flush median for turning into driveways. He proposed alternate locations for two pedestrian islands, one closer to Bellevue Road and one closer to Wai-iti Crescent. He advised these locations would require car park removal and installing kerb extensions.

 

In response to a question from a member, the Traffic Asset Manager advised that officers would report back to the next meeting with options for pedestrian island(s) on Woburn Road. He clarified that if the proposed installation was approved by the Subcommittee, then work could be carried out before the end of the current financial year.

 

Motion

ReSOLVED:  (Cr Sutton/Cr Dyer)                                                        Minute No. TSC 20203

“That Officers investigate the installation of a pedestrian island on Woburn Road and report back to the next Subcommittee meeting.”

 

3.       CONFLICT OF INTEREST DECLARATIONS       

There were no conflict of interest declarations.

4.       Recommendations to Council - 24 March 2020

i)

Bus Stop Modifications and Associated No Stopping at All Times Restrictions - Multiple Locations (20/101)

 

Speaking under public comment, Cr Dyer read out a statement from Mr M Young attached as page 15 to the minutes.

The Traffic Engineer-Network Operations elaborated on the report.

In response to questions from members, the Traffic Engineer, Network Operations advised there had been no further movement with the New Zealand Transport Agency consultation documents as they were an interim draft.  He further advised that Council was using shorter 9 metre rather than 15 metre tapers as suggested by NZTA guidelines, in consideration of residents driveways.  He noted that alternatives to resizing the bus stops were being investigated, such as potentially moving the existing bus stops entirely in order to avoid road side obstructions.

 

ReCOMMENDed:  (Cr Sutton/Cr Dyer)                   Minute No. TSC 20204

“That the Traffic Subcommittee recommends that Council:

(i)    approves the following bus stop extensions and associated No Stopping At All Times restrictions:

(a)   Dowse Drive (outside #274-276) - Bus Stop #8064:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 1 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper)           restriction as shown in Appendix 1 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction      as shown in Appendix 1 attached to the report;

(b)   Poto Road (outside #69-71) – Bus Stop #8066:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 2 attached to the report; and

(bb)  install 8 metres of No Stopping At All Times (entry taper)  restriction as shown in Appendix 2 attached to the report;

(c)   Poto Road (between #25-27)  and Pokohiwi Road - Bus Stop #8068:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 3 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 3 attached to the report;

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 3 attached to the report; and

(dd)   install 18 metres of No Stopping At All Times restriction at the intersection of Pokohiwi Road as shown in Appendix 3 attached to the report;

(d)   Pokohiwi Road (outside #42-44) – Bus Stop #8069:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 4 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 4 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 4 attached to the report;

(e)   Pekanga Road (near #35) – Bus Stop #8070:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 5 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 5 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 5 attached to the report;

(f)    Pekanga Road (outside #7-9) – Bus Stop #8071:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 6 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 6 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 6 attached to the report;

(g)   Knights Road (outside #112-118) – Bus Stop #8163:

(aa)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 7 attached to the report; and

(bb)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 7 attached to the report;

(h)   Knights Road (outside #146-148) – Bus Stop #8164:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 8 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 8 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 8 attached to the report;

(i)    Waiwhetu Road (outside #368-370) – Bus Stop #8270:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 9 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 9 attached to the report;

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 9 attached to the report; and

(dd)   install an additional 31 metres of No StoppingAt All Times restriction in a northerly direction from the driveway of 12 Naenae Road as shown in Appendix 9 attached to the report;

(j)      Eastern Hutt Road (outside Taita College) – Bus Stop #8298:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 10 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 10 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 10 attached to the report;

(k)     Holborn Drive (outside #140-142) – Bus Stop #8309:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 11 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 11 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 11 attached to this report;

(l)      Horoeka Street (outside #93-95) – Bus Stop #8326:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 12 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 12 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 12 attached to the report;

(m)    Miromiro Road (outside#185) – Bus Stop #9065:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 13 attached to the report; and

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 13 attached to the report;

(n)     Pokohiwi Road (outside #1) – Bus Stop #9068:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 14 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 14 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 14 attached to the report;

(o)     Pokohiwi Road (outside #29) - Bus Stop #9069:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 15 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 15 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 15 attached to the report;

(p)     Pekanga Road (outside # 10) – Bus Stop #9071:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 16 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 16 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 16 attached to the report;

(q)     High Street (outside #805) – Bus Stop #9226:

(aa)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 17 attached to the report; and

(bb)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 17 attached to the report;

(r)      Naenae Road (outside #44-51) – Bus Stop #9271:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 18 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 18 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 18 attached to the report;

(s)      Eastern Hutt Road (outside #4) – Bus Stop #9298:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 19 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 19attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 19 attached to the report;

(t)      Holborn Drive (outside#99) – Bus Stop #9308:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 20 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 20 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 20 attached to the report;

(u)     Holborn Drive (outside #133-135) – Bus Stop #9309:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 21 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 21 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 21 attached to the report;

(v)     Holborn Drive (near #189) – Bus Stop #9312:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 22 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 22 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 22 attached to the report;

(w)    Horoeka Street (outside #100) – Bus Stop #9326:

(aa)    extend the existing marked bus stop to 15.0 metres (4.0m addition) as shown in Appendix 23 attached to the report;

(bb)    install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 23 attached to the report; and

(cc)    install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 23 attached to the report;

(ii)   recinds the following bus stop Taita Drive (opposite #2 Curton Crescent) – Bus Stop #9234 as shown in Appendix 24 attached to the report; and

(iii)  approves the following bus stop relocations and associated No Stopping At All Times restrictions Taita Drive (opposite #1020) – Bus Stop #9234 – relocation:

(a)   install a 15.0 metre marked bus stop as shown in Appendix 24           attached to the report;

(b)   install 9 metres of No Stopping At All Times (entry taper) restriction as shown in Appendix 24 attached to the report; and

(c)   install 9 metres of No Stopping At All Times (exit taper) restriction as shown in Appendix 24 attached to the report.

For the reasons the proposed restrictions would reduce the risk of vehicle conflict at the listed on-road bus stop locations; improve visibility and safety for the benefit of all road users; promote compliance with the NZTA’s draft  Guidelines for Public Transport Infrastructure and Facilities; and meet the requirements as set out in Council’s Traffic Bylaw 2017.

ii)

Waione Street - Proposed P120 and P30 Parking Restrictions (19/1062)

 

The Traffic Engineer elaborated on the report.

In response to a question from a member, the Traffic Engineer noted that business employees and customers primarily utilised the parks which were currently under review for time limit changes.

 

Members noted that the Petone Community Board endorsed the recommendations contained in the officer’s report at its meeting held on 17 February 2020.

 

 

 

 

 

 

 

 

 

 

 

ReCOMMENDed:  (Cr Sutton/Cr Dyer)                   Minute No. TSC 20205

“That the Traffic Subcommittee recommends that Council approves the installation of P30 and P120 parking restrictions on Waione Street, as shown attached as Appendix 1 to the report.”

For the reasons the proposed restrictions would improve parking availability on the street for the benefit of the local businesses and their customers; support Council’s Parking Policy 2017; and are supported by the property owner and the immediately affected businesses.

 

iii)

Dowse Drive - Proposed No Stopping At All Times Parking Restrictions (19/1093)

 

Speaking under public comment, Ms T Coleman noted how Facebook comments expressed concern from residents around increased visibility.  She advised that installation of the proposed changes would negate any safety improvements and encourage drivers to speed in that area. She noted parking for affected residents had been raised on social media, with particular emphasis on local residents struggling to reverse out of their driveways. She noted an increase of minor incidents in the area and therefore the community disputed whether the addition of yellow lines was a plausible solution around the bend in the road. Ms Coleman suggested that due to ongoing residents issues with yellow lines, it was best practice for residents to communicate with their neighbours before making complaints.

 

In response to a question from a member, Ms Coleman advised that a bus stop was currently located around 107 Dowse Drive which meant the road’s parking was already too congested to allow for further proposed changes. 

 

In response to a question from a member, Ms Coleman considered the validity of shifting the proposed changes to the opposite side of the Dowse Drive.  She noted that roading on the opposite side outside of Maungaraki School with current yellow lines was another example of unsafe parking due to no stopping at all times.

 

 

The Traffic Engineer elaborated on the report.

In response to a questions from a member, the Traffic Asset Manager advised that if the Subcommittee was to resolve the recommendations, officers could still agree to review the changes in 12 months’ time to consider extending those restrictions to 107 Dowse Drive. He noted that officers were already considering options to extend the changes further up the street. He advised that traffic calming measures were not reliable as drivers could lose control of their vehicles. He also advised that another option of installing small flush medians to ensure suitable distances between vehicles was being investigated. 

In reponse to a question from a member, the Traffic Asset Manager advised members what officers would need to be approved in order for further investigation and consultation to be carried out.

In response to a question from a member, the Traffic Asset Manager advised that the area under review was typically used for parking. However, he also noted the installation of a centre white line could be a viable alternative to yellow lines which could discourage congested parking.

In response to a question from a member, the Traffic Asset Manager advised that yellow lines had previously been installed on the other side of Dowse Drive to accommodate residential driveways. He noted that yellow lines were most commonly used in residential areas to accommodate both driveways and corners.

 

ReCOMMENDed:  (Cr Sutton/Cr Briggs)                   Minute No. TSC 20206

That the Traffic Subcommittee recommends that Council:

(i)      approves the installation of No Stopping At All Times Restrictions on
Dowse Drive, as shown in Appendix 1 attached to the report; and

(ii)     asks officers to undertake a review in 12 months’ time.”

For the reasons, the proposed restrictions would improve the safety within the street for the benefit of all road users; would promote compliance with the Land Transport (Road User) Rule 2004; support Council’s Parking Policy 2017 and are supported by all the local residents who responded to the consultation documents.

 

iv)

Trafalgar Street - Proposed P15 Parking Restrictions (19/1207)

 

The Traffic Engineer elaborated on the report.

In response to a question from a member, the officers advised they would need to re-consult in order to amend the proposed parking restriction times to better accommodate the business hours of both facilities.

 

Resolved:  (Cr Sutton/Cr Mitchell)                          Minute No. TSC 20207

“That the item being discussed should be referred to the next meeting of the Traffic Subcommittee to be held on 28 April 2020.”

 

v)

Page Grove - Proposed No Stopping At All Times Restrictions (19/1261)

 

The Traffic Engineer elaborated on the report.

In response to a question from a member, the Traffic Asset Manager advised that, although berm parking was a ticketable offence, there was currently no bylaw to enforce this.  He noted the increased frequency of berm parking in Hutt City. 

In response to a question from a member, the Traffic Asset Manager agreed to send data which depicted nearby illegal footpath parking to business owners once the proposed changes were implemented. He also advised that commercial areas typically did not have complaints of illegal footpath parking. 

 

ReCOMMENDed:  (Cr Sutton/Cr Dyer)                     Minute No. TSC 20208

That the Traffic Subcommittee recommends that Council approves the installation of No Stopping At All Times Restrictions on Page Grove, as shown in Appendix 1 attached to the report.”

For the reasons, the proposed restrictions would improve the safety and accessibility within the street for the benefit of all road users; would promote compliance with the Land Transport (Road User) Rule 2004; support Council’s Parking Policy 2017; are supported by the businesses on Page Grove.

 

 

vi)

Hutt Road - Proposed P120 Parking Restrictions (19/1263)

 

The Traffic Engineer elaborated on the report.

 

ReCOMMENDed:  (Cr Sutton/Cr Mitchell)                Minute No. TSC 20209

That the Traffic Subcommittee recommends that Council:

(i)    approves the removal (rescinding) of the existing P15 parking restrictions on Hutt Road, as shown in Appendix 1 attached to the report; and

(ii)   approves the installation of P120 parking restrictions on Hutt Road, as shown in Appendix 1 attached to the report.”

For the reasons, the proposed restrictions would improve parking availability on the street for the benefit of the local businesses and their customers; support Council’s Parking Policy 2017; and are supported by the immediately affected businesses.

 

vii)

Miromiro Road - Proposed Flush Median and No Stopping At All Times Restrictions (19/1283)

 

The Traffic Engineer and the Traffic Asset Manager elaborated on the report.

In response to a question from a member, the Traffic Asset Manager advised that residents and property owners were consulted on proposed roading changes. He noted that yellow line changes were operational, so residents had been informed. He explained that changes with more potential impact concerned the property owner. He further clarified for members that the decision to inform either party was determined by the amount of consultation in relation to the significance of what was proposed to be implemented.

 

ReCOMMENDed:  (Cr Sutton/Cr Briggs)                               Minute No. TSC 20210

“That the Traffic Subcommittee recommends that Council approves the installation of the Flush Median and No Stopping At All Times Restrictions on Miromiro Road, as shown in Appendix 1, 2 and 3 attached to the report.”

For the reasons, the proposed restrictions would improve the safety within the street for the benefit of all road users would promote compliance with the Land Transport (Road User) Rule 2004; support Council’s Parking Policy 2017; and are supported by the majority of the residents who responded to the consultation documents.

 

viii)

Sydney Street - Proposed No Stopping At All Times Restrictions (19/1284)

 

The Traffic Engineer and Traffic Asset Manager elaborated on the report.

The Traffic Asset Manager advised that cycle parks would not be implemented unless demand for them was supported.  He agreed to look further into options for cycle parks in this area.

 

Members noted that the Petone Community Board endorsed the recommendation contained in the officer’s report and asked at its meeting held on 17 February 2020 that officers be asked to consider cycle parks in the future.

 

ReCOMMENDed:  (Cr Sutton/Cr Mitchell)                Minute No. TSC 20211

“That the Traffic Subcommittee recommends that Council approves the installation of No Stopping At All Times Restrictions on Sydney Street, as shown attached as Appendix 1 to the report.”

For the reasons the proposed restrictions would improve the safety within the street for the benefit of all road users; would promote compliance with the Land Transport (Road User) Rule 2004; and support Council’s Parking Policy 2017.

 

ix)

Cheviot Road - Proposed No Stopping At All Times Restrictions (19/1270)

 

The Traffic Engineer elaborated on the report.

 

Members noted that the Eastbourne Community Board endorsed the recommendation contained in the officer’s report at its meeting held on 18 February 2020.

 

ReCOMMENDed:  (Cr Sutton/Cr Dyer)                     Minute No. TSC 20212

“That the Traffic Subcommittee recommends that Council approves the installation of No Stopping At All Times Restrictions on Cheviot Road, as shown attached as Appendix 1 to the report.”

For the reasons the proposed restrictions would improve the safety within the street for the benefit of all road users; would promote compliance with the Land Transport (Road User) Rule 2004; support Council’s Parking Policy 2017; and are supported by majority of the local residents who responded to the consultation documents.

 

x)

Martin Grove Extension – Proposed No Stopping at All Times Restrictions (19/1366)

 

The Traffic Engineer and Traffic Asset Manager elaborated on the report.

In response to a question from a member, the Traffic Engineer advised that there had been previous consultation where officers had acknowledged the school’s direction.  She noted that contacting parents regarding implemented changes could potentially be within the school’s jurisdiction.

In response to concern from a member, the Traffic Asset Manager agreed to liaise with the school regarding the engagement officers had carried out with parents. He advised members that often schools implemented non official enforcements internally.  He agreed to investigate this further. 

In response to a question from a member, the Traffic Engineer advised that a time restriction was applicable to this area due to the suggestions from parents.

 

ReCOMMENDed:  (Cr Sutton/Cr Mitchell)                Minute No. TSC 20213

That the Traffic Subcommittee recommends that Council approves the installation of No Stopping at All Times restrictions on Martin Grove Extension, as shown in Appendix 1 attached to the report.”

For the reasons the proposed restrictions would reduce the risk of vehicle conflict on this section of Martin Grove Extension; improve visibility and safety within the street for the benefit of all road users; promote compliance with the Land Transport (Road User) Rule 2004; and support Council’s Parking Policy 2017.

 

xi)

Cressy Street - Proposed P15 Parking Restrictions (20/34)

 

The Traffic Engineer and Traffic Asset Manager elaborated on the report.

In response to a question from a member, the Traffic Asset Manager advised that there were currently no P120 restrictions in Cressy Street.  He advised that P15 resrictions were applicable for this area due to resource consent requirements.  He noted P120 parks were available further down the road.

 

ReCOMMENDed:  (Cr Sutton/Cr Dyer)                     Minute No. TSC 20214

“That the Traffic Subcommittee recommends that Council approves the installation of P15, 7.30-9.00am and 3.30-5.30pm Monday-Friday parking restrictions on Cressy Street, as shown in Appendix 1 attached to the report.”

For the reasons, the proposed restrictions would improve parking availability within the street for the benefit of all road users; would promote compliance with the Land Transport (Road User) Rule 2004; would support Council’s Parking Policy 2017; and are required to meet compliance with the granted resource consent.

xii)

Martha Turnell Crescent - No Stopping At All Times Restrictions (20/89)

 

The Traffic Engineer elaborated on the report.

 

ReCOMMENDed:  (Cr Sutton/Cr Dyer)                     Minute No. TSC 20215

“That the Traffic Subcommittee recommends that Council approves the installed No Stopping At All Times Restrictions on Martha Turnell Crescent, as shown in Appendix 1 attached to the report.”

For the reasons, the restrictions improve the safety and accessibility within the street for the benefit of all road users; promote compliance with the Land Transport (Road User) Rule 2004; support Council’s Parking Policy 2017; and were required to meet compliance with the granted resource consent.

6.       QUESTIONS   

There were no questions.

There being no further business the Chair declared the meeting closed at 3.13pm.

 

 

 

Cr L Sutton

CHAIR

CONFIRMED as a true and correct record

Dated this 24th day of March 2020

 

 

 

Kia ora Brady,

 

I am unfortunately unable to make it to the Traffic Subcommittee meeting scheduled for

tomorrow but am very keen to input into the item on Bus Stop Modifications. I have written the following statement and would be very appreciative if it could be shared during public comment;

 

"This is an item I am really pleased to see being considered by Council. As a regular user

of the bus network I often see the troubles caused by having insufficient entry and exit

lengths for bus stops around the city and the very real impact it has on those trying to

use the service.

 

One elderly lady I talked to uses a walker and has reduced mobility, this makes it

necessary for the bus to be curbside and the ramp to be put out for her to board. The

inability of drivers to service this need has meant she often now takes a taxi at greater

cost to herself.

 

I certainly aspire for our city to have a safer, more timely and accessible public transport

network than what is currently on offer and the proposed changes are a very cost

effective (and indeed necessary) way of seeing meaningful improvement. A quality bus

network has huge advantages for our city from mitigating our climate impact, reducing

congestion, contributing towards social cohesion, improving accessibility for those with

limited mobility and offering a cost effective means of travel.

 

With this in mind I note that there are several objections to these proposed changes and,

while being cognisant that we should seek out solutions that work for everyone, where

suitable compromises can't be found I implore Councillors to prioritise our public

transport network.

 

I also note that the paper before you does not mention that these changes are part of a

bigger body of work reviewing the suitability of all bus stops in the city. In my experience

there are many more bus stops in our city that would see great benefit from

modifications and I hope that this work continues. I would be interested to hear the

comments of officers in this regard."

 

Thanks for the help,

Matt


Attachment 1

Appendix 1 Dowse Dr (#274-276)

 


Attachment 2

Appendix 2 Poto Road (#69-71)

 


Attachment 3

Appendix 3 Poto Road (#25-27)

 


Attachment 4

Appendix 4 Pokohiwi Road (#42-44)

 


Attachment 5

Appendix 5 Pekanga Road (Near #35)

 


Attachment 6

Appendix 6 Pekanga Road (#7-9)

 


Attachment 7

Appendix 7 Knights Road (#112-118)

 


Attachment 8

Appendix 8 Knights Road (#146-148)

 


Attachment 9

Appendix 9 Waiwhetu Rd (#368-370)

 


Attachment 10

Appendix 10 Eastern Hutt Road (Taita College)

 


Attachment 11

Appendix 11 Holborn Drive (#140-142)

 


Attachment 12

Appendix 12 Horoeka Street (#93-95)

 


Attachment 13

Appendix 13 Miromiro Road (#185)

 


Attachment 14

Appendix 14 Pokohiwi Road (#1)

 


Attachment 15

Appendix 15 Pokohiwi Road (#29)

 


Attachment 16

Appendix 16 Pekanga Road (#10)

 


Attachment 17

Appendix 17 High Street (#805)

 


Attachment 18

Appendix 18 Naenae Rd (#44-51)

 


Attachment 19

Appendix 19 Eastern Hutt Road (#4)

 


Attachment 20

Appendix 20 Holborn Drive (#99)

 


Attachment 21

Appendix 21 Holborn Drive (#133-135)

 


Attachment 22

Appendix 22 Holborn Drive (near #189)

 


Attachment 23

Appendix 23 Horoeka Street (#100)

 


Attachment 24

Appendix 24 Taita Drive (near Churton Cres)

 


Attachment 1

Appendix 1 Waione St P120 Restrictions G36.2019

 


Attachment 1

Appendix 1 Dowse Drive No Stopping At All Times Restrictions G34.2019

 


Attachment 1

Appendix 1 Page Grove BYLs G48.2019

 


Attachment 1

Appendix 1: Hutt Rd P120 Restrictions - G47.2019

 


Attachment 1

Appendix 1 Miromiro Road Proposed Flush Median and No Stopping At All Times Restrictions - Combined Plans

 


Attachment 2

Appendix 2 Miromiro Rd Proposed Flushed Median and No Stopping At All Times Restrictions - Plan

 


Attachment 3

Appendix 3 Miromiro Rd Proposed No Stopping At All Times Restrictions - Plan

 


Attachment 1

Appendix 1: Sydney Street No Stopping At All Times Restrictions - G49.2019

 

 


Attachment 1

Appendix 1 Cheviot Rd No Stopping At All Times Restrictions G45.2019

 


Attachment 1

Appendix 1 Martin Grove Extension No Stopping At All Times Restrictions G56.2019

 


Attachment 1

Appendix 1 Cressy St P15 Restrictions G10.2020

 


Attachment 1

Appendix 1 Martha Turnell Cres No Stopping At All Times Restrictions - Plan

 


                                                                      65                                                3 March 2020

 

HUTT CITY COUNCIL

 

Policy, Finance and Strategy Committee

 

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

 Tuesday 3 March 2020 commencing at 2.00pm

 

 

 PRESENT:

Cr S Edwards (Chair)

Mayor C Barry

 

Cr K Brown (Deputy Chair)

Cr J Briggs

 

Cr D Bassett

Cr B Dyer

 

Cr D Hislop

Deputy Mayor T Lewis

 

Cr S Rasheed

Cr A Mitchell

 

Cr L Sutton

Cr N Shaw

 

APOLOGIES:                  An apology was received from Cr Milne

 

IN ATTENDANCE:       Ms J Miller, Chief Executive (part meeting)

Ms A Blackshaw, Acting General Manager, City and Community Services (part meeting)

Mr B Kibblewhite, General Manager, Corporate Services

Ms H Oram, Acting General Manager, City Transformation 

Ms J Livschitz, Chief Financial Officer

Mr B Cato, General Counsel (part meeting)

Mr P Benseman, Budgeting and Reporting Manager (part meeting)

Ms H Stringer, Financial Transaction Services Manager (part meeting)
Mr D Newth, Financial Accounting Manager (part meeting)

Mr B Hodgins, Strategic Advisor City and Community Services (part meeting)

Mr H Wesney, Head of District Plan Policy (part meeting)

Ms C McNab, Environmental Policy Analyst (part meeting)

Mr J Jeffries, Senior Environmental Policy Analyst (part meeting)

Mr G Craig, Head of City Growth (part meeting)

Mr J Scherzer, Manager, Sustainability and Resilience

Mr G Sewell, Principal Policy Advisor (part meeting)

Mr D Kerite, Head of Environmental Consents

Ms K Stannard, Head of Democratic Services

Mrs T Lealofi, Committee Advisor

 

 

PUBLIC BUSINESS

 

1.       APOLOGIES 

 

Resolved(Cr Edwards/Cr Dyer)                                      Minute No. PFSC 20201

“That the apology received from Cr C Milne be accepted and leave of absence be granted.”

Precedence of Business

 

Resolved: (Cr Edwards/Cr Briggs)                           Minute No. PFSC 20202

“That, in terms of Standing Order 10.4, precedence be accorded to items 9, 4i, 10, 4ii), 6,4iii), 4iv and 4v).”

The items are recorded in the order in which they were listed on the order paper.

 

2.       PUBLIC COMMENT

Comments are recorded under the item to which they relate.      

3.       CONFLICT OF INTEREST DECLARATIONS     

 

Cr Shaw and Cr Brown asked whether they needed to declare a conflict of interest due to being Council’s representatives on Hutt City Community Facilities Trust and Urban Plus Limited.

 

In response to a question from a member, the General Counsel stated that if a member was a director on the board of a Council Controlled Organisation, then it was appropriate to declare a conflict of interest.  He noted the normal process was to also exclude yourself from the discussion when it came to the decision making.  He highlighted that it depended on how major or contengious the issues were.

 

4.       Recommendations to Council - 24 March 2020

i)

Hutt City Community Facilities Trust Draft Statement of Intent 2020/21 to 2022/23 (20/10)

 

Mr Strahl, Chair, Mr John Strahl, Board Chair of Hutt City Community Facilities Trust (CFT) elaborated on the Draft Statement of Intent.

thanked members for their support.  He also thanked the General Manager, Corporate Services for the valuable work he had undertaken for CFT.

 

RECOMMENDED (Cr Edwards/Cr Bassett)                      Minute No. PFSC 20203

“That the Committee recommends that Council:

(i)    notes that the Hutt City Community Facilities Trust (CFT) Board has submitted a draft Statement of Intent (SOI) 2020/21 - 2022/23, attached as Appendix 1 to the report, in accordance with the Local Government Act 2002;

(ii)   notes that officers have reviewed the draft SOI for compliance with the Local Government Act 2002 and provided their analysis;

(iii)  receives the draft SOI;

(iv)  reviews the draft SOI; and

(v)   provides comment for the CFT Board to consider in finalising its SOI.”

 

ii)

Seaview Marina Limited Draft Statement of Intent 2020/21 to 2022/23 (20/11)

 

Mr Brian Walshe, Board Chair of Seaview Marina Ltd (SML) and Mr Alan McLellan, Chief Executive of SML elaborated on the draft Statement of Intent.

Mr Walshe, Chair, Seaview Marina Limited (SML) thanked members for their support.  He also thanked the General Manager, Corporate Services for the valuable work he had undertaken for SML.

 

RECOMMENdED: (Cr Edwards/Cr Rasheed)        Minute No. PFSC 20204

“That the Committee recommends that Council:

(i)    notes that the Board of Seaview Marina Limited (SML) has submitted a draft Statement of Intent (SOI) 2020-2023, attached as Appendix 1 to the report, in accordance with the Local Government Act 2002;

(ii)   notes that officers have reviewed the draft SOI for compliance with the Local Government Act 2002 and provided their analysis;

(iii)  receives the draft SOI;

(iv)  reviews the draft SOI; and

(v)   provides comment for the Board of SML to consider in finalising its SOI.”

 

iii)

Urban Plus Group Draft Statement of Intent 2020/21 to 2022/23 (20/12)

 

Mr Brian Walshe, Board Chair of Urban Plus Ltd (UPL) and Mr Craig Walton Chief Executive of UPL elaborated on the draft Statement of Intent.

Mr Walshe, Chair, Urban Plus Group (UPL) thanked members for their support.  He also thanked the General Manager, Corporate Services for the valuable work he had undertaken for UPL.

 

ReCOMMENDED: (Cr Edwards/Cr Briggs)                            Minute No. PFSC 20205

“That the Committee recommends that Council:

(i)    notes that the Urban Plus Group (UPL) Board has submitted a draft Statement of Intent (SOI) 2020/21 - 2022/23, attached as Appendix 1 to the report, in accordance with the Local Government Act 2002;

(ii)   notes that officers have reviewed the draft SOI for compliance with the Local Government Act 2002 and provided their analysis;

(iii)  receives the draft SOI;

(iv)  reviews the draft SOI and requests officers to arrange a workshop for councillors outlining options for potential changes to the UPL SOI, with a view to bringing back draft changes to discuss with the UPL Board to the next meeting of the Policy, Finance and Strategy Committee; and

(v)   provides comment for the UPL Board to consider in finalising its SOI (including any modifications suggested by the Committee arising under recommendation (iv) above).”

 

 

iv)

Council performance report for the half year ended 31 December 2019 (20/60)

 

Speaking under Public Comment, Mr M Shierlaw spoke in relation to the financial performance of Council and the significant increase in Rates proposal. He expressed concern that 4.1% of the increase was unecessary. He highlighted reasons contained in information circulated to members and officers.

The Chief Financial Officer commented on the circulated information. She said that the information must be seen in a broader context as the contents was based from the Long Term Plan 2018-2028 (LTP). She added that a lot of changes had been made after the LTP that was adopted in 2018.

The Chief Financial Officer noted that a lot of information had been prepared for the LTP Amendment. She added that the decision process amongst the Councillors would be supported by officers.

The Budgeting and Reporting Manager elaborated on the report.

In response to a question from a member, the Budgeting and Reporting Manager advised that the Dowse Museum Entrance project was small in comparison to the larger projects with greater costs.

 

Resolved:  (Cr Edwards/Deputy Mayor Lewis) Minute No. PFSC 20206

“That the Committee:

(i)    notes the Council’s performance results for the period 1 July 2019 to 31 December 2019; and

(ii)   notes the highlights and achievements as detailed in paragraph 5 in the officer’s report.”

 

ReCOMMENDED: (Cr Edwards/Deputy Mayor Lewis) Minute No. PFSC 20207

“That the Committee recommends that Council:

(i)      agrees to amend the operating expenditure budgets in 2019/20 as detailed in Table 1 within the officer’s report, for the funding transfers for the Emergency Management Office $0.15M and the Voice of Naenae $0.06M;

(ii)     does not agree to amend the operating expenditure budgets in 2019/20 as detailed in Table 1 within the officer’s report for the Community Facilities Trust $0.3M and the Events Centre budgets $0.33M and directs officers to reprioritise funding within the Annual Plan 2019/20 budgets to offset these costs;

(iii)    agrees to amend the capital expenditure budgets in 2019/20 as detailed in Table 1 within the officer’s report, which will result in increased costs of $0.9M, with the exception of Dowse Museum Entrance project;

(iv)    agrees to defer the Dowse Museum Entrance Project budget of $190k to 2022/23 for the reasons explained in Appendix 7 attached to the report; 

(v)     agrees to defer the operating expenditure budgets in 2019/20 as detailed in Table 2 within the officer’s report, which will result in reduced costs in 2019/20 of $0.94M;

(vi)    agrees to defer the capital expenditure budgets in 2019/20 as detailed in Table 2 within the officer’s report, which will result in reduced costs in 2019/20 of $9.88M; and

(vii)   agrees to bring forward funding of $0.3M into 2019/20 from the seismic strengthening funding set aside in the draft Annual Plan 2020/21 to enable work at Walter Nash Centre to be progressed as detailed in Table 3 within the officer’s report.”

 

v)

Three Waters Half Year Performance (20/161)

 

The Strategic Advisor City and Community Services elaborated on the report.

 

In response to a question from a member, the Strategic Advisor City and Community Services advised that he would report back to members on the street sumps and street sweeping maintenance programme.

 

Resolved: (Cr Edwards/Cr Brown)                     Minute No. PFSC 20208

“That the Committee notes the information in the report.”

 

5.

Three Waters Early Investment Signals for 2021/31 Long Term Plan (20/58)

Report No. PFSC2020/2/47 by the Strategic Advisor, City and Community Services

 

The Strategic Advisor City and Community Services elaborated on the report.

 

Resolved:  (Cr Edwards/Cr Dyer)                       Minute No. PFSC 20209

“That the Committee:

(i)    notes the complex challenges that are facing the City with the long term management of three waters infrastructure to safeguard the health and well-being of people and the environment;

(ii)   confirms the top five priorities for the Council are: maintaining existing infrastructure; planning for growth; having a sustainable water supply; ensuring healthy urban waters; and planning for climate change;

(iii)  notes that the investment required to address these challenges will need to be substantially increased for the 2021/31 Long Term Plan;

(iv)  directs officers to prepare an options and impact report for further consideration and engagement with the community as a lead in to the Long Term Plan2021/31;

(v)   directs officers to provide further information on policy development which will assist Council in addressing the identified challenges; and

(vi)  raises with Local Government New Zealand a co-ordinated approach to Central Government on a sustainable funding model to tackle the increased investment in three waters infrastructure.”

 

6.

Urban Plus Group Six Month Report to 31 December 2019 (20/15)

Report No. PFSC2020/2/45 by the Senior Accountant

 

Resolved: (Cr Edwards/Cr Dyer)                          Minute No. PFSC 20210

“That the Committee receives the half year report from Urban Plus Group attached as Appendix 1 to the report.”

 

Resolved(Cr Bassett/Cr Milne)                           Minute No. PFSC 20211

“That the Committee thanks the General Manager, Corporate Services for his superb contribution to the work he has undertaken for Council’s Controlled Organisations.”

7.

Full District Plan Review - Process, Timing and Resourcing (20/16)

Report No. PFSC2020/2/46 by the Head of District Plan Policy

 

The Head of District Plan Policy elaborated on the report.

 

In response to a question from a member, the Head of District Plan Policy advised that the Spatial Plan was being viewed from a higher top level whereas Naenae was focused at a more detailed level. 

 

Cr Dyer questioned the timeframe on the three options regarding the nature and extent of the community engagement.  He asked whether it was Council’s decision.  The Head of District Plan Policy said that it would be part of the discussions undertaken throughout the year including additional detail around the timeframe.

 

The Acting General Manager, City Transformation confirmed that a Council resolution was not required.  She noted that Council’s direction and guidance would be more applicable.

 

Resolved: (Cr Edwards/Cr Mitchell)                       Minute No. PFSC 20212

“That the Committee:

(i)    receives the report;

(ii)   notes the scope, process, timing and issues for the review; and

(iii)  notes that additional costs above those outlined in the report may arise in the future to implement new policy directions from central government, such as the National Policy Statement for Indigenous Biodiversity and National Policy Statement for Urban Development.“

For the reasons of complying with statutory requirements, ensuring the District Plan is current, and engages with the community.

 

8.

Submission on Proposed National Policy Statement for Indigenous Biodiversity (20/103)

Report No. PFSC2020/2/49 by the Head of District Plan Policy

 

The Head of District Plan Policy elaborated on the report.

 

Cr Mitchell expressed concern around protecting the bird species.  He asked for Council to support any species that was outside the significant natural areas.  He sought help with mapping and guidance on how the District Plan rules could be managed in those affected areas.

 

Resolved: (Cr Edwards/Cr Brown)                       Minute No. PFSC 20213

“That the Committee:

(i)    receives the report;

(ii)   approves the submission, as set out in Appendix 1 to the report, on the Proposed National Policy Statement for Indigenous Biodiversity; and

(iii)  agrees to delegate authority to the Chair of the Policy, Finance and Strategy Committee to liaise with Cr Mitchell on suitable wording in consultation along with the officers and the Chief Executive to finalise the submission, consistent with discussions and any amendments made by the Committee.”

For the reason that the submission represents the Council’s view on the Proposed National Policy Statement for Indigenous Biodiversity.

 

9.

The Hutt City Community Facilities Trust Six MonthLY Report to 31 December 2019 (20/13)

Report No. PFSC2020/2/43 by the Senior Management Accountant

 

Resolved: (Cr Edwards/Cr Dyer)                                            Minute No. PFSC 20214

“That the Committee receives the half year report from the Hutt City Community Facilities Trust attached as Appendix 1 to the report.”

 

10.

Seaview Marina Limited Six MonthLY Report to 31 December 2019 (20/14)

Report No. PFSC2020/2/44 by the Senior Management Accountant

 

Resolved: (Cr Edwards/Cr Hislop)                                 Minute No. PFSC 20215

“That the Committee receives the half year report from Seaview Marina Limited attached as Appendix 1 to the report.”

 

11.

Strategic Property Portfolio - Update (20/82)

Report No. PFSC2020/2/48 by the Head of City Growth

 

The Head of City Growth elaborated on the report.

 

Resolved: (Cr Edwards/Cr Dyer)                                       Minute No. PFSC 20216

 

“That the Committee receives and notes the report.”

 

For the reason that the Property Working Group for Advancing Strategic Projects is required to report six monthly to this Committee on the portfolio of properties for advancing strategic projects.  This is for monitoring purposes.

 

12.

Draft Waste Management and Minimisation Bylaw template (20/147)

Report No. PFSC2020/2/68 by the Manager, Sustainability and Resilience

 

The Manager, Sustainability and Resilience elaborated on the report.

 

Resolved: (Cr Edwards/Cr Mitchell)                                  Minute No. PFSC 20217

“That the Committee agrees to the proposed amendments to the first draft Wellington Region Waste Management and Minimisation Bylaw template.”

13.     QUESTIONS   

          There were no questions.

There being no further business the Chair declared the meeting closed at 4.21 pm.

 

 

 

 

 

 

 

Cr S Edwards

CHAIR

 

 

CONFIRMED as a true and correct record

Dated this 24th day of March 2020

 


74                                                         24 March 2020

 

  

 

 


Statement of Intent

 

Hutt City Community Facilities Trust

 

2020/21 – 2022/23

D R A F T


 

 

Contents

 

Introduction. 76

Objectives. 76

Activities. 77

Governance. 78

Ratio of Consolidated Shareholders’ Funds to Total Assets. 79

Accounting Policies of the CFT. 79

Performance Targets. 81

Prospective Statement of Financial Performance. 82

Prospective Statement of Movements in Equity. 83

Prospective Statement of Financial Position. 84

Prospective Statement of Cash Flows. 85

The CFT Depreciation Policy. 86

Information to be provided to Shareholders. 86

Procedures to be followed before members acquire shares in other groups etc. 87

Activities for which the Board seeks compensation from a local authority. 87

Board estimate of the commercial value of the shareholder’s investment in the group. 87

Other Management Issues. 87

 


 

Introduction

This Statement of Intent has been prepared by the Hutt City Community Facilities Trust (CFT), as required under Section 64(1) of the Local Government Act 2002 for a Council Controlled Organisation (CCO).  It gives an overview of the CFT, the objectives we will work to achieve, the activities we will undertake, and how we will measure our performance.  It covers the three year period to 30 June 2023.

The CFT was established by the Hutt City Council (Council) in August 2012 as a CCO to promote, develop, own, operate, and maintain recreational, leisure, and community facilities in Lower Hutt.  Over the next 30 years a number of facilities in Lower Hutt will have to be upgraded or replaced.  Changing preferences in the community for the way recreation, leisure, and community services are delivered led HCC to adopt an integrated facilities approach to new developments, which will allow for a range of services to be accessed in one place.  The Walter Nash Centre completed by the CFT in late 2015 is a good example of an integrated community facility. The Walter Mildenhall Park Redevelopment completed in 2017 at Naenae, the Koraunui Stokes Valley Community Hub also completed in 2017 and the Ricoh Sports Centre at Fraser Park, completed in 2019, are examples of projects that also follow the integrated facilities model.

The main role of the CFT has been to develop and then maintain a range of fit-for-purpose, leisure, recreation and community facilities that are attractive to the residents and visitors of Lower Hutt.

In 2019 the trustees conducted a strategic review of the CFT’s future direction and concluded that while it will remain a landlord of its existing facilities, most day to day work to provide ongoing management for these is best conducted by Council staff as is future project management of new builds. The board concluded that CFT’s main focus will be to provide leadership in the identification, promotion and fundraising for new projects which support Council’s overall strategic objectives.

Where appropriate, the CFT will assist with fundraising work to attract donations for these developments from philanthropic organisations, the corporate sector and the community.  The Trust will do this by acting as a voice for community facilities in Lower Hutt, using the skills and expertise its trustees bring from valuable experience in business, asset management, and community affiliation.

The CFT will strive to have a positive and productive working relationship with Council. The Trust will contribute to Council’s community outcomes of a city that is actively engaged in community activities, and a city that promotes strong and inclusive communities.  Accordingly, the CFT Board looks forward to working with Council to optimise the overall social, cultural, health and economic wellbeing of Lower Hutt.

Objectives

The objectives of the CFT will follow section 59 of the Local Government Act 2002, which outlines the principal objectives for a Council Controlled Organisation as follows:

 (a)          Achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the Statement of Intent;

(b)          Be a good employer; and

(c)           Exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so.

 

In addition to the statutory objectives, the CFT Deed of Trust has a range of charitable objectives designed to promote the health and wellbeing of Lower Hutt’s communities. These objectives are to:

Promote, operate, develop, and maintain community facilities in Lower Hutt through the management of the interests and rights relating to these facilities.

Assist with attracting fundraising from the community and philanthropic organisations for the development of high quality community facilities.

Provide strategic planning, in partnership with HCC, in relation to the ongoing development and administration of community facilities in Lower Hutt.

Provide high quality amenities which attract and engage, promoting the health and well-being of residents of and visitors to Lower Hutt.

Practise prudent commercial administration of high quality community, recreation, and leisure facilities, with a view that they will be financially sustainable.

 

Environmental objectives

 

The Board will be considering during the year what we can do effectively to support the Council’s environmental objectives. In particular we will give consideration to the potential impacts of climate change and ‘carbon zero’ initiatives, and what contribution the trust can make to this. We will work with and hold discussions with Council staff to ensure we are working on a co-ordinated basis.

 

Health and Safety

 

The Board sees the health and safety of its staff, contractors, the public and all users of its facilities as a top priority. Enhanced reporting to the Board to ensure that there is the best possible health and safety practices and culture in all its facilities is a top priority for the year.

Activities

This draft Statement of Intent has been provided at a busy time for Council after the recent election and restructuring of its management team. It has also been busy with its consideration of the future for the Naenae Pool. As a consequence of its initial plans to rebuild that in some form, it has signalled the suspension of various other funding allocations for gym sports and the proposed Wainuiomata Sports and Community Hub, both of which were part of CFT’s longer term work plan. The Board has not received from Council the usual letter of expectation to guide it in the completion of this SOI thus the plan for the year is limited to managing the existing facilities of the Trust until Council makes its broader decisions on funding priorities for any new project and what role it would like to see CFT play in them.

In the next three years the CFT will focus its activities in the following areas:

Governance

The CFT board of trustees comprises five members, one of whom is a Councillor appointed by Council.  All other trustees are appointed by Council in line with its Appointment and Remuneration of Directors Policy.

The Chairperson is appointed by the trustees. 

The trust board meets six weekly.

The CFT adopts an approach to governance that is in accordance with the best practice statements produced by the Institute of Directors New Zealand (Incorporated).  This will include an annual evaluation of the effectiveness of the Trust board through whole of board and individual self-assessments.

The Trustees of the CFT must act in accordance first and foremost with the charitable purposes of the Trust.

The CFT will give effect to the Hutt City Council Long Term Plan and act consistently with other Council plans, strategies and policies.

The CFT will adopt in its relationship with Council ways of working that reflect Council and CCOs as partners in the delivery of shared outcomes. This includes a commitment to the agreed Memorandum of Understanding between the Trust and Council that was signed in the 2012/13 period.   This includes:

A commitment to collaboration.

A commitment to openness and transparency.

Adherence to a ‘no surprises’ policy  - where it is appropriate the CFT trust board will bring to Council’s attention immediately all new and significant projects, initiatives, and/or issues.

A commitment by the CFT to the aims and objectives of the Council Long Term Integrated Community Facilities Plan.

A commitment by Council where it sells recreation or similar land or any other identified community facility, that the profits arising from that sale shall be vested in a reserve for future investment in reserve development, which may include the development of associated community facilities by the CFT and Council. The use of the reserve will be negotiated between Council and the CFT.

 

The CFT Deed of Trust allows the CFT the ability to raise a loan to part fund approved CFT projects.  The CFT will not however raise any significant loans without consulting the shareholder.

 

Office space, office equipment, IT and administrative support is provided to the CFT by Council. This is expected to continue.

Ratio of Consolidated Shareholders’ Funds to Total Assets

Definition of Terms

Shareholders’ Funds:  Represent the net equity the shareholder has contributed to the Trust since its incorporation. This amount includes issued share capital, revaluation reserves, and retained earnings. There are currently no shareholder funds distributed to the CFT.

Total Assets:  Represent the total assets both intangible and tangible of the CFT, disclosed in accordance with applicable financial reporting standards. For completeness it is noted that any tax liabilities in respect of GST and deferred tax are classified as liabilities irrespective of them being a debit or credit balance.

Accounting Policies of the CFT

Financial Statements

The Financial Statements will comply with generally accepted accounting practice in New Zealand (NZ GAAP). They will comply with NZ IFRS and other applicable Financial Reporting Standards. Financial statements will also comply with the Local Government Act 2002.

General Accounting Policies

Accounting policies adopted will be consistent with the New Zealand equivalent of International Financial Reporting Standards (NZ IFRS) issued by the XRB (External Reporting Board).

Particular Accounting Policies

Recognition of Income – Revenue will be recognised when an invoice is raised after service is provided. Other transactions that comply with the definition of "Revenue" in the Statement of Concepts issued by the XRB (External Reporting Board) will also be recognised as revenue.

Goods and Services Tax

Financial statements will be prepared on a GST exclusive basis.

Cash and Cash Equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, and other short term highly liquid investments with original maturities of three months or less and bank overdrafts.

Accounts Receivable

Accounts receivable will be stated at net realisable value.

Investments

Investments will be stated at fair value.

Property Plant and Equipment

Property plant and equipment is shown at cost, less accumulated depreciation and impairment losses.

Consolidation

The purchase method will be applied to prepare the Consolidated Financial Statements (if required).

Leases

Cost of operating leases (if any) will be recognised as expenditure over the term of the lease.

Borrowing

Borrowing is recognised in the balance sheet on a fair value basis.

Taxation

As the CFT has been established as a charitable trust, it should not be liable for income tax. If the Trust does engage in any activity making it liable for income tax, the income tax expense will be calculated after allowance for permanent differences and any group loss offsets.

Funding Commitments

Funding commitments are recognised as a liability and asset until such time that the community facility development is undertaken.  At this time it will be recognised as revenue.


 

Performance Targets

Performance indicators for the CFT are as follows:

 

Indicator and measure

Target 2020/2023

Operational Management

·         Operational expenditure is within budget

·         All reporting requirements set by Council and the Board of CFT are met in accordance with the Local Government Act 2002, the CFT Statement of Intent and the CFT Deed of Trust

 

 

100%

 

Annual Report by 30/9/20, 30/9/21 and 30/9/22

SOI and six monthly report by 1/3/21, 1/3/22 and 1/3/23

Facilities Management

·         All facilities maintain legal compliance, WOFs and/or certification

 

·         All facilities have in place an agreement to lease within three months of completion

 

 

·         All facilities have detailed maintenance plans in place within 12 months of completion

 

 

100% Building safety upheld

 

 

100% Legal partnerships covering leases and maintenance are agreed with the principal tenants 

 

100% Maintenance programmes instituted to ensure facilities’ amenity values are retained and are safe for users

 

Environmental Objectives

 

·         Consider how the board can effectively support the Council’s environmental objectives.  In particular give consideration to potential impacts of climate change and ‘carbon zero’ initiatives, and what contribution the Trust can make to this.

 

 

 

Potential impact assessment and action plan report completed by 30 June 2021

Health and Safety

 

·         Enhanced reporting to the Board to ensure best possible health and safety practices and culture are in all CFT facilities.

·         All CFT construction projects have Health and Safety plans and monitoring in place.

 

 

 

Monitoring is in place and reporting to the Board by 30 June 2021

 

 

100% compliance


Attachment 1

Appendix 1 CFT SOI 2020-2023 DRAFT

 

 

Prospective Statement of Financial Performance

 

 


 

Prospective Statement of Movements in Equity

 


 

Prospective Statement of Financial Position

 


 

Prospective Statement of Cash Flows

 


Proportion of Accumulated Profits/Capital Reserves Distributed to Shareholder

The CFT is a non-profit entity, and any accumulated profits and/or capital reserves are to be used to fulfil the Trust’s charitable objectives. There is no current requirement to distribute a proportion of these funds to Council.

The CFT Depreciation Policy

The CFT is still evolving policy with respect to the establishment of cost sharing arrangements between itself and sporting bodies and individuals who will use its facilities, buildings and artificial turfs. Wherever possible the CFT will seek to deliver to the users, debt free buildings and facilities at a price which will encourage and stimulate sporting and community participation.

The accounts published above assume that CFT will strike a facilities/building and turf rental that is designed to raise sufficient funds to maintain the asset over the next 25 years.

The CFT is however mindful that some of its assets will have a life well beyond 25 years and could still be in use in 75 years’ time. Predicting what sporting facilities a community might need in 75 years is fraught and the CFT will not attempt to do this. It has therefore resolved to not build into its rental or long-term maintenance strategy an allowance to fund the replacement of an asset older than 25 years. The financial accounts above reflect this policy. Maintenance costs for an asset life of up to 25 years are generally funded out of user charges. Major assets like roofs, lifts and turf carpets which require replacement at the end of their predictable known life, will be funded by a specific arrangement with Council, or Council, the CFT and the tenant combined.

Because the CFT is still evolving its rental and depreciation charges, negotiations to fix agreed rentals with Council and its other tenants are ongoing. Further research, designed to more accurately determine the actual depreciation and maintenance costs on the CFT’s assets and the ability of its tenants to meet those costs, may lead to a change in the above policy and associated CFT budgets for the years beyond 2019/20.

Information to be provided to Shareholders

In each year the CFT shall comply with the reporting requirements specified for Council Controlled Organisations under the Local Government Act 2002, the Companies Act 1993 and other relevant regulations.

In particular, it shall provide the following:

                A draft Statement of Intent by 1 March detailing all matters required under the Local Government Act 2002.

 

                Within three months  after the end of each financial year, the CFT will provide an annual report which provides a comparison of its performance with the Statement of Intent, with an explanation of any material variances, audited consolidated financial statements for the financial year, and an auditor’s report (in accordance with sections 67, 68 and 69 of the LGA 2002).

                Within two months after the end of the first half of each financial year the CFT shall provide a  report on the operations of the Trust to enable an informed assessment of its performance, including financial statements, and progress on activities and projects (in accordance with section 66 of the LGA 2002).

Procedures to be followed before members acquire shares in other groups etc.

Subscription for shares in any other Company or interest in any other organisation will only take place with express prior approval from Council.

Activities for which the Board seeks compensation from a local authority

It is not anticipated that the Trust will seek compensation from any local authority otherwise than in the context of the normal contractual relationship with Hutt City Council.

If the Trust has undertaken to obtain or has obtained compensation from its shareholders in respect of any activity, this undertaking or the amount of compensation obtained will be recorded in:

The annual report of the CFT; and

The annual report of the Hutt City Council.

Board estimate of the commercial value of the shareholder’s investment in the group

The Board will conduct an assessment of the value of Council’s investment in the Trust.  The assessment will be based on the net asset value shown in the Trust’s six-monthly report.

Following completion of the RICOH Sports Centre at Fraser Park, the estimated replacement value of the Trust’s assets is now $41 million.

Other Management Issues

Health and Safety in Employment

CFT will maintain best industry practice and ensure 100% compliance with legislated obligations for its sites and buildings.

Community Outcomes

For the past five years CFT has been in building and development mode, it will now commit more resources and work with Council officers to monitor and report on the outcomes of the new CFT facilities. The CFT facilities have had a significant positive impact on the communities that surround them; however this has not been well researched or documented.

Long Term Facility Planning

The CFT has prepared 20 year maintenance plans for all of its buildings and other sporting assets and will now work with Council officers to prepare funding plans for that work. While some of the costs will be met from tenant rentals, more significant expenditure, for example on the cost of reroofing a major building like the Walter Nash, will need to be determined and agreed with Council.

Business Continuity

CFT is refining management practices and back up plans which will become operational in the event of unforeseen circumstances and natural disasters so that any events will have a minimal impact on the future operation of its facilities and assets.

Insurances

CFT will maintain appropriate insurances and/or require its tenants to have appropriate insurances, to mitigate risk of portfolio damage, business interruption and professional indemnity. This will include Directors and Office Bearers’ cover where appropriate.

Emergency Preparedness

CFT will continue to develop and maintain systems and procedures to best position itself and its facilities to deal with emergency situations.

Environmental Objectives

CFT staff are working with Council staff and consultants to formulate an environmental strategy for CFT that could change the way CFT builds and manages its sporting infrastructure and buildings. It is probable that CFT will not in future use gas heating in its buildings and will consider changing existing gas units at the end of their working life. CFT is already working to include solar power units on its buildings and will make provision for such units on future buildings. CFT will also investigate designing future buildings under the Green Star rating system if such an approach is affordable.

 

 

 

 


Attachment 1

Appendix 1 SML DRAFT Statement of Intent 2021-2023

 

 

 

 

 

 

 

 

SEAVIEW MARINA LIMITED

DRAFT STATEMENT OF INTENT

2020/21 to 2022/23


 

 

 

Contents

1.           Mission. 3

2.           Nature and Scope of Activities. 3

3.           Corporate Governance Statement. 3

4.           Corporate Goals. 3

5.           Specific Objectives for the Year Ending 30 June 2019. 4

6.           Performance Measures. 6

7.           Financial Projections. 7

8.           Accumulated Profits and Capital Reserves. 15

9.           Share Acquisition. 15

10.         Information to be Provided to Shareholders. 15

11.         Pricing Policy. 15

12.         Transactions with Related Parties. 16

13.         Directory. 17

14.         Accounting Policies. 18

 


 

1.        Mission

Seaview Marina Limited’s mission is to be the centre for recreational marine activities and services in the Wellington Region.

2.        Nature and Scope of Activities

Seaview Marina Limited (the Company) is responsible for the operation of the boating facilities and services, the maintenance of infrastructural assets and the development of additional facilities and services as demand dictates.

3.        Corporate Governance Statement

The Company is 100% owned by Hutt City Council and accordingly is a Council Controlled Trading Organisation (CCTO) as defined by the Local Government Act 2002 (LGA). The Directors’ role is defined in Section 58 of the LGA which requires that all decisions relating to the operation of a CCTO shall be made pursuant to the authority of the directorate of the CCTO and its Statement of Intent (SOI). In addition to the obligations of the LGA, the Company is also covered by the Companies Act 1993 which places other obligations on the Directors.

The Directors are responsible for the preparation of the SOI which, along with the three-year financial plan, is provided to the Company’s Shareholder, Hutt City Council.  Six monthly and Annual reports of financial and operational performance are provided to the Shareholder.  Financial and operational /management reports are prepared monthly for the Directors.

The Directors of the Company are responsible for the overall control of the Company but no cost-effective internal control system will permanently preclude all errors or irregularities.  The control systems operating within the Company reflect the specific risks associated with the business of the company.

4.        Corporate Goals

The principle goal of the Company is to operate as a successful business, achieving the objectives of its shareholder as specified in this Statement of Intent. The specific corporate goals of the Company are as follows:

General

4.1       To ensure that the Statement of Intent and operating policies for the Company are consistent with the operating policies of Hutt City Council.

4.2       To ensure that the Statement of Intent and operating strategies are adhered to.

4.3       To keep the Shareholder informed of matters of substance affecting the Company.

4.4       To perform continual reviews of the operating strategies, financial performance and service delivery of the Company.

4.5       To develop the Company into one of New Zealand’s premier marina businesses.

4.6       To further expand and diversify the Company’s marina facilities.

Economic

4.7       To maximise the financial returns achieved and the value added by the Company.

4.8       To return a minimum of 5% return on equity (ROE) per annum.

4.9       To maintain the Company’s financial strength through sound and innovative financial management.

Social and Environmental

4.10     To support recreational boating activities in the Wellington Region.

4.11     To promote safe work practices.

4.12     To act as a socially responsible and environmentally aware corporate citizen and to contribute to, or assist where possible, with Hutt City Council’s community outcomes (as listed in the HCC Annual or Long Term Plan).

5.        Specific Objectives for the Year Ending 30 June 2021

In pursuit of its corporate goals, the Company has the following objectives for the next 12 months:

General

5.1       To review the Statements of Intent and Strategic Plans for consistency with the objectives of Hutt City Council.

5.2       To review the operating activities of the Company for compliance with the goals and objectives stated in the Statement of Intent and Strategic Plan.

5.3       To report all matters of substance to the Shareholder.

Economic

5.4       To achieve all financial projections.

5.5       To achieve or exceed a 5% Return on Equity (ROE).

5.6       To ensure that the reporting requirements of the Company and the Shareholder are met.

Social and Environmental

5.7       To maintain good employer status by:

(a)        complying with all employment legislation;

(b)        operating open and non-discriminatory employment practices.

5.8       To ensure no transgression of environmental and resource laws.

5.9       To review the activities undertaken by the Company for the purposes of being a good socially and environmentally responsible corporate citizen.

 

6.        Shareholder Expectations

The Shareholder has provided the Company with its expectations for the business over the next three years. These expectations are laid out under the following four categories: development, return to shareholder, social and environmental and lastly health and safety. The details are outlined below:

Continue with development plans

Focus on completing the remaining in-water development as the market demands and operating cash flows permit. Any substantial variations will require engagement with the Shareholder.

Returns to Shareholder

In the medium term the Shareholder expects financial returns by way of dividends and breakwater lease payments. Breakwater lease payments commenced in 2019/20.  The timing of dividend payments is dependent on completion of the in-water development programme.  The Board will develop a Dividend Policy for consideration and approval of the shareholder.

Social and environmental

Support of charitable non-profit ventures connected with the Company’s business will continue to be a focus.

The Company will take steps to respond to the potential impacts of climate change and align itself with the Council’s ‘carbon zero’ initiatives.

Health and safety

Health and safety will continue to be a top priority and embedded within all activities of the marina.

 

 

7.        Performance Measures

 

Key Performance Indicator

2020/21

2021/22

2022/23

 

Reporting Frequency

 

Financial

 

 

1

Deliver annual budgeted incomes for each of the four business entities

·      Boat storage

·      Hardstand

·      Marine Centre

·      Launching ramp

 

Achieve 100% of budgeted incomes

Achieve 100% of budgeted incomes

Achieve 100% of budgeted incomes

Six monthly

2

Control operational expenses (1)

Operational expenses within budget

Operational expenses within budget

Operational expenses within budget

Annually

3

Achieve prescribed return on investment (2)

4.8%

4.9%

5.3%

Annually

4

Manage Capital Expenditure (3)

Complete within capital budget and on time

Complete within capital budget and on time

Complete within capital budget and on time

Annually

 

Relationship & Communication

 

 

5

Client Service

88% satisfaction in the bi-annual survey

88% satisfaction

for the exit/entry survey

88% satisfaction

 in the bi-annual survey

Annually

6

Newsletter communications

Complete four newsletters per annum

Complete four newsletters per annum

Complete four newsletters per annum

Quarterly

7

Meet all shareholder reporting deadlines

See Section 9

See Section 9

See Section 9

Schedule in Section 9

 

Risk Management and Human Resources

 

 

8

Notifiable health and safety incidents

None

None

None

Monthly to board

9

Business Continuity Plan

Run one test scenario and review

Run one test scenario and review

Run one test scenario and review

Annually

10

Staff Satisfaction

Achieve 85% staff satisfaction

Achieve 85% staff satisfaction

Achieve 85% staff satisfaction

Six Monthly

 

Marketing

 

 

11

Implement marketing strategy to improve occupancy rates (additional berth development initially impacts negatively on berth occupancy rates)

Berth occupancy to 85%

Berth occupancy to 88%

Berth occupancy to 90%

Monthly

12

Media and Public Relations

20 enquiries per month from website

25 enquiries per month from website

30 enquiries per month from website

Monthly

Notes to Financial Measures

(1)      Operational expenses are defined as all expenses controllable by Seaview Management.  Excludes depreciation and finance charges

(2)      Return on equity is defined as net Surplus / (Deficit) divided by the opening balance of equity at the start of the year

(3)      Excludes carry forward of expenses on projects from prior years, unless specifically budgeted for (e.g. where project spans two or more fiscal periods)


 

8.        Financial Projections

The projections have been prepared using a number of assumptions about the future as well as business trends over the previous five years.  In determining these projections the Board and Management have applied their judgement to the future commercial environment in which the Company operates.

Capital Expenditure Projections

Note 1:  Ownership of infrastructural assets is retained by the Shareholder (or other clients). 

Note 2:  Seaview Marina has to date returned all financial benefits to its Shareholder through increasing the capital value of the marina with trading profits being retained and invested in the strategic development programme.  Dividends are expected to be returned to the Shareholder after completion of the marina in-water capital development programme.


 

Prospective Statement of Comprehensive Revenue and Expenses

Note:  The breakwater lease of $100,000 a year is a new charge introduced in the 2019/20 financial year. 


 

Prospective Statement of Movements in Equity


 

Prospective Statement of Financial Position


 

Prospective Statement of Cash Flows


Equity Value of the Shareholders’ Investment

The estimated net value of the shareholders’ investment in the company at 30 June 2020 will be $9.4M and $9.8M on 30 June 21.

Ratio of Shareholders Funds to Total Assets

The target ratio for consolidated shareholders' funds to total assets is at least 50%.  Consolidated shareholders' funds comprise share capital and accumulated reserves.  Total assets comprise all tangible assets of the Company, the main component being the marina berths, infrastructure and the Wellington Marine Centre building.


 

 

9.        Accumulated Profits and Capital Reserves

The intention is to pay a dividend to the Shareholder commencing in 2022/23.  The Company will develop a Dividend Policy during 2019/20.

10.      Share Acquisition

There is no intention to subscribe for shares in any other company or invest in any other organisation during the period covered by this Statement of Intent.  Not with standing this, the purchase of any shares requires shareholder approval.

11.      Information to be Provided to Shareholders

In each year the Company shall comply with the reporting requirements under the Local Government Act 2002, the Companies Act 1993, and other relevant regulations.  In particular the Company will provide:

11.1     Statement of Intent

A draft Statement of Intent by 1 March of the year preceding the financial year to which it relates detailing all matters required under the Local Government Act 2002, including financial information for the next three years.

A final Statement of Intent before the commencement of the financial year to which it relates.

11.2     Half-Yearly Report

Within two months after the end of the first half of each financial year, the Company shall provide a report on the operation of SML to enable an informed assessment of its performance, including financial statements, and progress on activities and projects (in accordance with section 66 of the LGA 2002).

11.3     Annual Report

Within three months after the end of each financial year, the Company will provide an annual report which provides a comparison of its performance with the Statement of Intent, with an explanation of any material variances, audited consolidated Financial Statements for that financial year, and an Auditor’s Report (in accordance with section 67, 68 and 69 of the LGA 2002).

12.      Pricing Policy

The Company operates in a competitive market competing with four other marinas within the Wellington Region and to a lesser extent with the Marlborough marinas. All marina charges, apart from the Wellington Marine Centre Leases, are reviewed on an annual basis. The review is based on a number of criteria which are listed below:

11.1     Market Trends

The Company positions it charges at the lower end of the Wellington marina market but will adjust charges according to movements in other marinas of a similar standard.

11.2     Operating Costs

Increases in operating costs related to the marina activities compared with the previous year (not CPI).

11.3     Achievement of Return on Equity (ROE)

Hutt City Council has set a 5% ROE which the Company is expected to achieve in the medium term and rental charges are set accordingly to achieve this.

13.      Transactions with Related Parties

Transactions between the Company, Lower Hutt City Council and other Hutt City Council controlled enterprises will be conducted on a wholly commercial basis. Charges from Hutt City Council and its other companies will be made for services provided as part of the normal trading activities of the Company.

Related Party

Transaction

Hutt City Council Finance Department

Provision of accounting services and the consolidation of the Company’s financial accounts into the Hutt City Council’s accounts.

Hutt City Council IT Department

Provision of technical support for the Company’s computer hardware and systems.

 

14.      Directory

Directors

Brian Walshe (Chairman)

Chris Milne

Peter Steel

Chief Executive

Alan McLellan

Registered Office

100 Port Road

Seaview

Lower Hutt

New Zealand

Postal Address

Private Bag 33 230

Petone 5012

Telephone

+64 (4) 568 3736

Website

www.seaviewmairna.co.nz

Auditor

Audit New Zealand on behalf of the Auditor General

Bankers

Westpac Banking Corporation of New Zealand Limited

Lower Hutt

New Zealand

Solicitors

Thomas Dewar Sziranyi Letts

Level 2, Corner Queens Drive & Margaret Street

Lower Hutt

New Zealand


 

15.      Accounting Policies

REPORTING ENTITY

Seaview Marina Limited (SML) is a Council Controlled Trading Organisation (CCTO), 100 per cent owned by Hutt City Council.  The primary objective of SML is the operation of a marina which benefits the community of Hutt City.  SML is designated a public benefit entity for financial reporting purposes.

BASIS OF PREPARATION

The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period.

Statement of compliance

These financial statements have been prepared in accordance with the requirements of the Local Government Act 2002, which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP).  They comply with IPSAS and other applicable Financial Reporting Standards, as appropriate for public benefit entities (PBE) that apply Tier 2 PBE accounting standards.  As SML’s total expenses are under $30,000,000, it has elected to apply Tier 2 PBE accounting standards.

Measurement base

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

The financial statements have been prepared on a historical cost basis.

Functional and presentation currency

The financial statements are presented in New Zealand dollars and all values have been rounded to the nearest dollar.  The functional currency of SML is New Zealand dollars. 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICES

Revenue

SML derives revenue from its licensees and casual clients.  The income is generated from a range of rentals for boat storage and building tenancies as well as services available through the facilities provided by SML.

Revenue is measured at the fair value of consideration received. THE FINANCIAL STATEMENTS

Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction at balance date, based on the actual service provided as a percentage of the total services to be provided.

Sales of goods are recognised when a product is sold to the customer.  The recorded revenue is the gross amount of the sale, including credit card fees payable for the transaction. Such fees are included in other expenses.

Interest revenue is recognised using the effective interest method.

Expenses

Expenses are recognised when the goods or services have been received on an accrual basis.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts.

Trade debtors and other receivables

Trade debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

Inventory

Inventory is recorded at cost on a first in – first out basis.

Property, plant and equipment

Land and buildings are revalued.  They are reviewed each year to ensure that their carrying amount does not differ materially from fair value, and are revalued when there has been a material change.  All other asset classes are carried at depreciated historical cost.  Revaluation movements are accounted for on a class of asset basis.

Additions

Expenditure of a capital nature of $500 or more is capitalised.  Expenditure of less than $500 is charged to operating expenditure.  The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to SML and the cost of the item can be measured reliably.

Labour costs relating to self-constructed assets are capitalised if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to SML and the cost of the item can be measured reliably.

Work in progress is recognised at cost less impairment and is not depreciated.

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are recognised in the Statement of Comprehensive revenue and expense.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to SML and the cost of the item can be measured reliably.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment at rates that will write off the cost of the assets to their estimated residual values over their useful lives.  The straight-line depreciation rates are as follows:

Property, plant and equipment consist of the following asset classes: land, buildings, leasehold improvements, furniture and office equipment and motor vehicles.

Estimated economic lives

Years

Rate

Buildings

Service Centre, hardstand, travel lift

5 - 33

2 - 77

3% - 20%

1.3% - 50%

Site improvements

3 - 60

1.7% - 33.3%

Piers and marina berths

4 - 30

3.3% - 25%

Plant and equipment

1.5 - 66

1.5% - 67%

Vehicles

5

20%

The residual value and useful life of an asset is reviewed and adjusted if applicable at each financial year end.

Intangible assets

Software acquisition and development

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.  Costs associated with maintaining computer software are recognised as an expense when incurred.  Costs that are directly associated with the development of software for internal use by SML, are recognised as an intangible asset.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life.  Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised.  The amortisation charge for each period is recognised in the Statement of Comprehensive revenue and expense.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Estimated economic lives

Years

Rate

Computer software

2.5 - 33

3% - 40%

Impairment of non-financial assets

Assets with a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount.   The recoverable amount is the higher of the asset’s fair value less costs to sell and value in use.  The total impairment loss is recognised in the Statement of Comprehensive revenue and expense.

Goods and services Tax

All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis.  Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense.

Employee entitlements

Short-term entitlements

Employee benefits that SML expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay.  These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.

SML recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year.  The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that SML anticipates it will be used by staff to cover those future absences. 

SML recognises a liability and an expense for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation.

Payables

Short term creditors and other payables are recorded at their face value.

Provisions

SML recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense.

Borrowings

Borrowings are initially recognised at their fair value plus transaction costs. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.  Borrowings are classified as current liabilities unless SML has an unconditional right to defer settlement of the liability for at least 12 months after balance date.

Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

Income tax

Income tax expense includes components relating to both current tax and deferred tax.

Current tax is the amount of income tax payable based on the taxable profit for the current year, and any adjustments to income tax payable in respect of prior years.  Current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted at balance date

Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses.  Temporary differences are differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax is measured at tax rates that are expected to apply when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at balance date.  The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities.

Deferred tax liabilities are generally recognised for all taxable temporary differences.  Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences or tax losses can be utilised.

Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of an asset or liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting profit nor taxable profit.

Current and deferred tax is recognised against the surplus or deficit for the period, except to the extent that it relates to a business combination, or to transactions recognised in other comprehensive revenue and expense or directly in equity.

Leases

Operating leases

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset.  Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.

Finance leases

SML has not entered into any material finance leases.

Financial instruments

The Company is party to financial instrument arrangements as part of its normal operation.  Revenue and expenses in relation to all financial instruments are recognised in the Statement of Comprehensive Revenue and Expenses.

All financial instruments are recognised in the Statement of Financial Position on the basis of the Company’s accounting policies.  All financial instruments disclosed on the Statement of Financial Position are recorded at fair value.

Budget figures

The budget figures are those approved by the Board at the beginning of the year.  The budget figures have been prepared in accordance with generally accepted accounting practice (GAAP), using accounting policies that are consistent with those adopted by the Board for the preparation of the financial statements.

Critical accounting estimates and assumptions

In preparing these financial statements SML has made estimates and assumptions concerning the future.  These estimates and assumptions may differ from the subsequent actual results.  Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the reporting period in which the revision is made and in any future periods that will be affected by those provisions. 

Assumptions have been made for the useful lives of property, plant and equipment and intangible assets as noted above.

 


Attachment 1

Appendix 1 UPL Group Draft Statement of Intent 2019-2022

 

 

 

 

 

 

URBAN PLUS GROUP

 

STATEMENT OF INTENT

2020/21 – 2022/23

 

 

 

 


Contents

 

Contents. 2

Purpose. 3

Introduction. 3

Urban Plus Contributions to Council and Community Outcomes. 3

Our Business Objectives. 4

Nature and Scope of Activities to be undertaken by the Company. 6

Increasing Housing Supply. 7

Funding. 7

Homelessness. 7

UPL Residential Portfolio Growth. 8

Initiatives and Considerations. 9

The Performance Measures. 10

Risk Management 12

The Board of Directors. 12

Financial Forecasts. 15

Statement of Accounting Policies. 20

Urban Plus Registered Office and Contact Details for Key Officers. 25

 

 

 

 

 

                                                                                                                                       

 


Purpose

The purpose of this statement of intent is to:

a.       State publicly the activities and intentions of this council-controlled organisation for the year and the objectives to which those activities will contribute;

b.       Provide an opportunity for shareholders to influence the direction of the organisation; and

c.       Provide a basis for the accountability of the directors to their shareholders for the performance of the organisation.

This Statement of Intent covers the year 1 July 2020 to 30 June 2021 and forecasts for the following two financial years.  It has been prepared in accordance with Section 64 (1) of the Local Government Act 2002.

Introduction

Urban Plus Limited (UPL) is wholly owned by Hutt City Council (HCC) and operates as a Council Controlled Organisation (CCO) under the Local Government Act 2002.  UPL was established effective 1 May 2007 with principle objectives as stated below under ‘Our Business Objectives’. 

UPL is a company registered under the Companies Act 1993 and is governed by the requirements of that Act and Section 6 of the Local Government Act 2002, and is covered by law and best practice.  It also has responsibilities under the general law including the Resource Management Act 1991.

The Urban Plus Group comprises Urban Plus Limited (UPL), UPL Limited Partnership (UPLLP) and UPL Developments Limited (UPLDL).

Urban Plus Contributions to Council and Community Outcomes

Desirable outcomes expressed by Hutt City Council are numbered below with UPL’s comments included:

 

1.         A safe community

             The UPL portfolio of residential housing is predominantly occupied by those considered to be the ‘low-income elderly’.  We feel that an elderly presence in any community contributes to a safer community by having people present in residential areas during the working day.  This passive security presence provides ‘stability’ and value to a community by having people in the area while those of younger age may be at work or school. 

 

2.         A strong and diverse economy

             Providing appropriate accommodation for our elderly where they can retain independent living with dignity contributes significantly to community diversity by retaining the elderly in that community.

 

3.         An accessible and connected city.

             The elderly can contribute significantly to the community and families by being actively involved in the community.  This connectivity with the community spans generations and encourages understanding and tolerance between young and old.

 

4.         Healthy people

             UPL has a significant role in providing warmer, drier, healthier homes to the low-income elderly who may not be in a position to self-fund independent accommodation.  This role, and the company’s influence is expanding as increasing numbers of ‘baby-boomers’ retire.  The forecast is for steadily growing numbers of the over 65’s entering this sector as the population ages.  The changing Lower Hutt demographic will put increased pressure on UPL to provide an increased number of housing units in the future.  UPL has a significant role to play in appropriately housing this growing and aging demographic.

 

5.         A healthy natural environment

             UPL aims to be a good community citizen in the widest sense taking responsibility for project management, material selection and disposal in a way that minimises harm and impact on the environment.  We endeavour to apply best practise in terms of passive design (insulation, double glazing and where possible, positioning for solar gain) to minimise energy consumption promoting the concept of warmer, drier healthier homes at minimal ongoing cost to the occupier.

 

6.         Actively engaged in community activities

             The provision of residential housing aimed at the low-income elderly is a community activity where we are using our skills, expertise and professionalism to assist those elderly that are in need of assistance in finding appropriate accommodation.

 

7.         Strong and inclusive communities

             Prior to embarking on any development, UPL considers the overall amenity value of the community including proximity to public transport, retail, medical centres, land contour etc. so our residents can live safely and in an engaged manner within the community retaining mobility and independence.

 

8.         A healthy built environment

             Our developments and management of the existing portfolio contribute to a healthy built environment by best practice property maintenance, developments that are sympathetic to community values, and are complimentary to desirable urban planning aspirations and planning rules.  New properties are insulated, double glazed, warm, dry homes with accessibility issues minimised by passive design.  It is recognised that those occupying warmer drier homes are naturally healthier, consume less energy in keeping those homes warm, and enjoy reduced doctors / hospital visits with increased longevity.

 

9.         A well-governed city

             UPL contributes to good governance by adopting best industry practice in terms of design, project management, property maintenance, fiscal controls, and being a ‘good corporate citizen’.  We strive to ‘do-the-right-thing’ in all or dealings and contractual matters.

 

10.       Urban Growth Strategy

             UPL will assist HCC in the Urban Growth Strategy by applying knowledge, experience, expertise and skill from within UPL as and when called upon to assist the shareholder wherever possible to invigorate growth, development, and property related assistance.  

 

Our Business Objectives

Section 59 of the Local Government Act 2002 provides:

 

Principal objective of council-controlled organisation

(1)        The principal objective of a council-controlled organisation is to:

(a)     Achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the statement of intent;

(b)    Be a good employer;

(c)     Exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates, and by endeavouring to accommodate or encourage these when able to do so; and

(d)    If the Council-controlled organisation is a council-controlled trading organisation, conduct its affairs in accordance with sound business practice.

(2)        In subsection 1.b, good employer has the same meaning as in clause 36 of Schedule 7 of the Local Government Act 2002.

In addition to the statutory objective, the objectives of the Company are to:

1.1       provide for the long term a growing portfolio of rental housing for the low-income elderly[1] consistent with, and to give effect to, Council’s housing policy;

1.2       develop the housing portfolio in a manner which increases its property values;

1.3       ensure that the housing portfolio for the low-income elderly is appropriate for the changing needs of the community in terms of the objectives outlined in Council’s housing policy;

1.4       operate as a successful and profitable undertaking;

1.5       purchase, develop, lease or sell the development property portfolio in a manner which maximises its value at a level of risk appropriate for the investment of funds;

1.6       comply with all legislative and regulatory provisions relating to its operations and performance;

1.7       ensure all assets owned by it are maintained to the best applicable standards;

1.8       maintain an effective business continuance plan;

1.9       maintain a register of current Council policies relevant to its business and operations; and

1.10     assist Council when asked to do so in its endeavours in terms of the Urban Growth Strategy.

These objectives will be monitored and where in conflict, these objectives will be pursued giving greater weight to the interests of maximising value to the Shareholders provided that in relation to the provision of social housing, value to the shareholders will include the consideration of social value.

                                  


 

Nature and Scope of Activities to be undertaken by the Company

The principal objective of the Company is to:

1.         Operate as a successful business, returning benefits to the shareholder;

2.         Own, operate and maintain a portfolio of rental housing to provide community housing for the low-income elderly in accordance with normal commercial guidelines and the housing policy of  Council;

3.         Ensure that the housing portfolio for the low-income elderly is appropriate for the changing needs of the community in terms of the objectives outlined in Council’s housing policy;

4.         Develop property in preparation for sale or lease, which are declared surplus to the needs of Hutt City Council and which provide an appropriate return for the costs and risks of development;

5.         Purchase, develop, lease or sell the development property portfolio in a manner which maximises its value at a level of risk appropriate for the investment of funds; and

6.         Otherwise become involved in property-related transactions and property-technical advisory services on a commercial basis that support the Shareholders' vision for the future development of the city.  This specifically includes assisting with progressing the Urban Growth Strategic Objectives.

 

Section 59 of the Local Government Act 2002 also provides that the principal objectives of a council-controlled trading organisation include the objectives of its Shareholders.

 

In order to meet our objectives we focus our work activity on asset planning and development, capital project management, operations management, risk management, staff development and corporate governance.

Other

UPL will continue to be involved in property-related transactions on a commercial basis that support the Shareholders' vision for the future development of the city.

 

UPL will continue to provide a wide range of strategic property advice and property consultancy when required to the Shareholder.  Work has included:

1.         Advice and general direction for Making Places projects;

2.         Commercial leasing management advice for HCC property and subsidiaries;

3.         Specific property advice (example – Community Facilities Trust – long-term maintenance planning);

4.         Assist with strategic property acquisition as directed by the Shareholder.

 

5.      

Increasing Housing Supply

Housing Shortage: Greater Demand for Housing than Supply

 

The past two years has seen a significant increase in housing development in Lower Hutt.  The remissions scheme provided by Council to promote infill housing and multi-unit developments has been one reason. Such growth however has resulted in a scarcity of available land for future housing developments on the valley floor.  However, it is widely acknowledged that demand still continues to grow faster than supply.  Accordingly, there is an expectation that the Shareholder will release land to meet increasing demand levels in all housing typologies in Lower Hutt. 

 

UPL now has the opportunity to focus on areas in the market where demand is not being met with supply by other developers.

 

Release of Council-Owned Land for Development

 

UPL will work closely with the Shareholder throughout the 2020-21 financial year to assist in reviewing and identifying parcels of land that could enable further growth to achieve its Urban Growth targets and address the housing shortage currently being experienced in Lower Hutt.

Funding

The completion of recent market release developments has positioned the company to put funds towards its upcoming social housing projects. Whilst the funds will assist towards progressing these upcoming planned projects, the company’s aspirations to grow the portfolio may require further funding.  As such, UPL may seek alternative funding options such as strategic sell down of some of its existing stock, partnering with third party housing providers such as Community Housing Providers in a variety of structures or debt / equity financing. 

 

As a general guide, expected current costs to deliver a single level, one-bedroom unit are approximately $320,000 incl GST.  Two-bedroom townhouses suitable for medium density developments are expected to cost approximately $450,000 incl GST. These figures include assumed costs for land and all fees associated with delivering the projects.

Homelessness

Supporting Shareholder Objectives

 

The Shareholder is developing both its Homelessness Strategy and its Housing Strategy.  UPL remains open and responsive to the outcomes of these strategies, and will support the Shareholder to achieve its objectives and planned outcomes.

 

Housing typologies for the Urban Plus Residential Portfolio

 

Historically, UPL’s model was to intensify sites, both within its own existing portfolio and on land acquired via the market, with single bedroom unit developments.  These generally were c. 40-48m2 in total dwelling size, and catered for the majority of our tenant base.

Future-looking, UPL is looking at providing both one and two bedroom units where amenity value is high, and it is financially viable to do so.  This may be either single or two storey layouts.

As our core tenant is the low income elderly, there is little need to produce a wider variety of housing or greater number of bedrooms per dwelling at this stage – however, if the Shareholder provides a wider mandate, UPL will amend its design and specification accordingly.

 

Housing typologies for UPL Limited Partnership Developments

Previously, UPL’s development entity provided a mix of housing typologies at its Fairfield Waters development by providing a mix of two and three bedroom 2-storey townhouses as well as three and four bedroom standalone homes.  This variety appealed to a wide range of purchasers – from retirees and downsizers, to young professionals and families.

UPLLP’s second major development, Parkview, provided a more generic product of twenty four single level townhouses with single (internally accessed) garages.  The reasoning was to release a more traditionally accepted product to the market in Avalon rather than the multi-unit 2-storey townhouse design.

The next developments that are currently under construction are ‘Central Park on Copeland’ in Epuni and ‘The Lane’ in Waterloo.  The developments are similar in that there are two and three bedroom townhouses, all with car-pads, being offered to the market at both developments.  Central Park has an alternative three bedroom option with a single, internally accessed garage.

As the housing market changes UPLLP will remain agile, and be flexible with what type of housing product it releases into the market and for its own residential portfolio.  We will continue to align with the Shareholder’s Urban Growth Strategy (UGS) and its focus on meeting the UGS targets by 2032, as well as greater intensification on the valley floor via medium density developments.

 

UPL Residential Portfolio Growth

 

Molesworth Street Development

 

Earlier this financial year, UPL acquired the Molesworth Street reserve from the Shareholder.  Additionally, UPL strategically purchased an adjacent residential property in Molesworth Street (Taita) to amalgamate with the reserve land, for greater utilisation of land and better yield of social housing units.

 

Whilst still in the planning stages, this project could provide approx. eighteen additional units for low income elderly or wider social housing purposes.  It is anticipated these units will be completed in the 2021-22 financial year.

 

Infill of Existing Portfolio Properties

 

Plans are underway to infill underutilised areas of one of UPL’s existing rental properties in Petone. The current designs are for twelve (multi-level) one bedroom units to be added to the existing twenty seven units at 17 Britannia Street.  The additional units are viewed as a prudent intensification of an existing property and positive outcome for all tenants due to the high amenity value the property enjoys due to its close proximity to Jackson Street’s commercial precinct. Completion of this infill project is planned to occur within the 2021-22 financial year.

 

 

 


 

Initiatives and Considerations

Affordable Housing

To enable a chance for first home buyers to enter onto the property ladder, UPL released to the market ten of its thirty four Central Park on Copeland townhouses at $550,000 each, and five of the twenty seven The Lane – Waterloo townhouses at between $535-000 and $550,000 each.  Purchasers had a set of requirements to qualify prior to contracts being deemed unconditional which targeted owner occupiers rather than investors.  The company saw these as affordable price points, which resulted in several sales and achieved its purpose for assisting first home buyers to attain home ownership in Lower Hutt.  UPL will continue to release housing at affordable levels where it is prudently viable.

Lowering Carbon Emissions

The Shareholder has set a carbon zero objective, and as such UPL aims to align with this direction where possible.  UPL has, and will continue to, incorporate features into its dwelling design and development site layouts that lower carbon emissions.  Examples include using electricity or renewable sources of energy for space and water heating, minimising building waste, and making buildings ready for charging electric vehicles.

 

HomeStar 6 Rating

 

UPL will seek to incorporate design and environmental considerations into future projects, and align these with the HomeStar rating assessment to achieve no less than 6 stars in future housing development projects.

 

Central Government Initiatives

When sought by the Shareholder, UPL will look to support central government initiatives where it is financially, socially and environmentally prudent, and is to the overall betterment to Lower Hutt City.  Further, UPL will seek to work with any form of social or community housing providers which promote the growth of housing in Lower Hutt.

 

Local Environmental Considerations

 

When undertaking future developments requiring significant decisions on land and water, UPL will take into consideration the relationship of Maori and their culture, traditions and their relationship to land and water.

 


 

The Performance Measures

The Company will meet the following measures for the next three years:

Rental Housing

1.1    Capital expenditure within budget.

1.2    Operational expenditure within budget.

1.3    An appropriate return on investment measure is currently being developed and will be included in the final SOI.

1.4    Tenant satisfaction with the provision of the company’s rental housing greater than or equal to 90%.

1.5    Percentage of total housing units occupied by low-income elderly[2] greater than or equal to 85%.

1.6    Rentals charged shall not be less than 80% of ‘market’ rent.*

1.7    Increasing the portfolio size to 220 units by December 2021.

1.8    By 30 June 2021, assess the performance of the rental housing portfolio against the HomeFit® standard.

1.9    Any rental housing units purchased and not already utilising electricity or renewable sources of energy for space heating, water heating, and cooking facilities, shall be converted to utilise only electricity or renewable sources of energy within five years of acquisition.

1.10  New rental housing units constructed by UPL to utilise only electricity or renewable sources of energy for space heating, water heating and cooking facilities.

* With market rents rising at greater than inflation, the current 2019/20 FY 85% target is becoming increasingly harder for our tenants to afford.  Subject to significant lifts on market rental income levels, the Board reserves to right to decide on the level of rentals charged per unit, on a case by case basis.

 

 Property Development

1.11  Capital expenditure within budget.

1.12  Operational expenditure within budget.

1.13  A return of not less than 10.0% after interest and tax on each project.

1.14  From 1 July 2019, any new developments not already resource consented as at 30 June 2019, shall only utilise electricity or renewable sources of energy for space heating, water heating and cooking facilities.

1.15  By the year ending 30 June 2021, at least one housing unit (standalone house or townhouse) shall achieve a certified HomeStarTM rating of at least six stars.

Professional Property Advice

1.16  Achieve a market return on additional services provided to the Shareholder.

UPL Developments Limited

1.17  Undertake, negotiate and execute tender processes for and on behalf of the Partnership and ‘parent’ company as required.

1.18  Facilitate civil and construction contracts for and on behalf of the Partnership and ‘parent’ company as required.

1.19  Facilitate payment of contract progress claims for Board approved contracts as well as payments to other suppliers engaged to provide services or goods to defined development projects.

1.20  Should UPLDL be used for future developments, the same performance measures apply as for Property Development (refer above).

1.21  Act as General Partner when a Limited Partnership structure is utilised for development projects.

UPL Limited Partnership

1.22  Develop land in a manner which maximises its value at a level of risk appropriate for the investment of funds.

1.23  To perform business undertakings in common with Urban Plus Limited with a view to profit from development projects for the purposes of funding for the elderly housing portfolio.

1.24  Should UPLLP be used for future developments, the same performance measures apply as for Property Development (refer above).


Risk Management

Health and Safety in Employment

UPL will maintain best industry practice with ongoing reviews of its Health and Safety policies to ensure they remain current and ‘leading edge’ in terms of compliance.

 

Business Continuity

UPL will maintain a Business Continuity Plan for unforeseen circumstances so any event will have minimal impact on the day-to-day operation of the business.

 

Insurances

UPL will maintain appropriate insurances to mitigate risk of portfolio damage, business interruption and professional indemnity.  This will include Directors and Office Bearers cover where appropriate.

 

Emergency preparedness

UPL will rehearse and maintain systems and procedures to best position itself to deal with emergency situations.

 

Commercial Risk

UPL will manage its affairs in a manner that minimises commercial risk recognising that some risk will need to be taken to achieve targets.

The Board of Directors

The Board of Directors consists of three members, with the Shareholder appointing council representation as Director(s) and Independent Directors.  Directors serve three-year terms. 

 

The Board is responsible for the proper direction, governance and control of UPL.

 

Unanimous approval of the Board is required for:

1.1       Employment of staff and creation of new positions outside of resolved budget limits;

1.2       Extraordinary transactions (entering into any contract or transaction except in the ordinary course of business);

1.3       Delegation of Directors’ powers to any person;

1.4       Major transactions (entering into any major transaction);

1.5       Disputes (commencing or settling any litigation, arbitration or other proceedings which are significant or material to the Company’s business);

1.6       Borrowings in a manner that materially alters the Company’s banking arrangements, advancing of credit (other than normal trade credit) exceeding $5,000 to any person except for making deposits with bankers, or giving of guarantees or indemnities to secure any person’s liabilities or obligations;

1.7       Sale of assets (sell or dispose of fixed assets for a total price per transaction exceeding $100,000 or a series of transactions aggregated exceeds $300,000); and

1.8       Capital expenditure (other than in the ordinary course of doing business) at a total cost to the Company, per transaction, exceeding $100,000 or a series of transactions aggregated exceeds $300,000.

The Board will require the agreement of the Shareholder for:

1.1       Any changes to the constitution;

1.2       Any increases in capital and the issue of further securities, share buybacks and financial assistance;

1.3       Any alteration of rights attaching to shares;

1.4       Any arrangement, dissolution, reorganisation, liquidation, merger or amalgamation of the Company; and

1.5       Any ‘major transactions’ as that term is defined in the Companies Act 1993.

Ratio of consolidated Shareholders’ funds to total assets

The target ratio for consolidated Shareholders' funds to total assets is at least 50%.  Consolidated Shareholders' funds comprise share capital and accumulated reserves.  Total assets comprise all tangible assets of the Company, the main component being housing and undeveloped land.  The forecast consolidated Shareholders funds as at June 2020 is 70%.  The share capital of $15.3 million consists of 27 million ordinary shares on issue, of which all are fully paid.

Accumulated profits and capital reserves

There is no intention to pay a dividend in the 2020/21 financial year or succeeding years.

Information to be provided to Shareholders

In each year UPL shall comply with the reporting requirements specified for CCO’s under the Local Government Act 2002 and the Companies Act 1993 and regulations.

In particular, it shall provide:

Annually

1.         Annually report, within two months after the end of each financial year, which will include:

2.         A Statement of Intent detailing all matters required under the Local Government Act 2002;

3.         An annual budget for the coming financial year, broken out by the two major areas of operation; Rental Housing and Land Development, including the assets employed and debt attributable to each area;

4.         A written report on the financial operations of the Company to enable an informed assessment of its performance including a comparison against budget and the Statement of Intent and the Return on Equity and Return on Assets for the Period;

5.         Financial statements comprising the Statement of Financial Position, Statement of Comprehensive Revenue and Expenses and Statement of Cash Flows;

6.         A business plan indicating the nature of property development it proposes to undertake and the range of investment and estimated return it proposes to achieve;

7.         An assessment of the current market for rental housings and the appropriateness of the current housing portfolio to meet the needs of the low-income elderly.

Half Yearly

8.         Six-monthly, within two-months of the end of the six month reporting period.

9.         A written report on the operations of the Company by the two major areas of operation to enable an informed assessment of its performance including a financial comparison against budget and the Statement of Intent and the Return on Equity and Return on Assets for the Period.

10.       Financial statements comprising the Statement of Financial Position, Statement of Comprehensive Revenue and Expenses and Statement of Cash Flows.

11.       Progress on activities outlined in the agreed business plan.

Share acquisition

There is no intention to subscribe for shares in any other company or invest in any other organisation. 

(NOTE: UPL has a subsidiary company UPL Developments Limited).

Compensation from local authority

It is not anticipated that the company will seek compensation from any local authority other than in the context of normal commercial contractual relationships.

NB: if a CCO has undertaken to obtain or has obtained compensation from its Shareholders in respect of any activity, this undertaking or the amount of compensation obtained will be recorded in:

1.         The annual report of the council-controlled organisation; and

2.         The annual report of the local authority.

Equity value of the shareholders’ investment

For the year ended 30 June 2021, the estimated net value of the Shareholder’s investment in Urban Plus Group will be $43.144 million. 


 

Financial Forecasts

Planning and programming for development projects will be based on exceeding the agreed minimum financial performance thresholds of greater than [target to be confirmed once measure is finalised] in terms of residential portfolio returns (see Performance Measure 1.3 above), and 10.0% after interest and tax (see 1.15 above) for commercial developments.  Each development project will require the approval of the Board to ensure strategic fit and achievement of the minimum rate of return.

 

The current volatility of the property market and anticipated future interest rate increases has resulted in considerable uncertainty in terms of what projects will come available, and what sales might result from those projects.  The financial statements within this Statement of Intent therefore exclude potential development projects.  Details of potential development projects will be included in the regular reporting to the Board and Shareholder.

 

The most recent residential development project was Parkview, in Avalon.  The project consisted of the construction and sale of twenty four stand-alone townhouses. The project was completed towards the end of the second quarter of the 2019/20 financial year, and cost $10.8M, and realised a pre-tax net gain of $4.5M.     This commercial development project was managed by UPL Developments Limited  – a wholly owned subsidiary of UPL providing property development management services – through UPL Limited Partnership  – a partnership between UPL Limited Partnership (as General Partner) and UPL (as Limited Partner).

 

The success of the Parkview development will enable UPL to not only strengthen its financial position, but also to reinvest the profits of the development in to its residential housing portfolio in order to achieve the company goal of 220 residential units by December 2021.

 

The company’s current development projects which are both in the construction phase are Central Park on Copeland and The Lane, Waterloo.  The first mentioned is a thirty-four townhouse development on part of the former Copeland Street Reserve land in Epuni which is forecast to have a pre-tax net gain of $7.4m.  The latter is a twenty-seven townhouse development in Waterloo – on land owned by UPL which is forecast to have a pre-tax net gain of $3.3m. All sixty-one townhouses are now sold, and are programmed to be completed within the 2020-21 financial year.

 

The planned Jackson Street apartments remain on hold.  UPL is reviewing construction costs, as well as seeking opportunities in the market for joint venture options with other social / community housing providers where ownership could be transferred; but end-result social housing options are still attained. Such an outcome will provide the planned outcome, but frees UPL to progress other opportunities to continue growth in other areas of Lower Hutt.

 

The original target date for UPL to achieve 220 rental units was 30 June 2020.  This target date will not be achieved based on the current development programme with only 199 units projected as at 30 June 2020.  The target of 220 units is now expected to be achieved by December 2021.  However during this time frame UPL will have developed and sold to the private market, 105 houses, the profits from which will fund the growth in UPL’s rental portfolio without requiring ratepayer assistance.

The financial forecasts, the projected number of rental units, and the numbers of houses developed and sold to the market over the period covered by this SOI is based on the following 4 year development programme:

 

 

The original 220 rental units target could be achieved earlier but this would require additional funding from the Shareholder either through an equity injection or approving increases to UPL’s available credit lines, i.e., loans.

 

Until there is more certainty on what the Shareholder wants to do with the current library site in Petone, this development opportunity has been excluded from UPL’s financial forecasts.  Similarly, until a decision has been made on UPL’s Jackson Street site, this development opportunity has also been excluded from UPL’s financial forecasts.

 

No provision has been made in the financial forecasts for possible gains from property revaluations.  Any gains would not have any impact on cash/debt but would result in deferred tax liabilities which would remain until the underlying properties are sold by UPL.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Consolidated Statement of Financial Performance

 

 

 

Consolidated Statement of Changes in Equity

 

 


 

Consolidated Statement of Financial Position

 

 


 

Consolidated Statement of Cash Flows

 


 

Statement of Accounting Policies

 

UPL will apply the following accounting policies consistently during the year and apply these policies to the statement of intent. In accordance with the New Zealand Institute of Chartered Accountants Financial Reporting Standard 42 (FRS 42), the following information is provided in respect of the statement of intent.

Cautionary note

The statement of intent’s forecast financial information is prospective. Actual results are likely to vary from the information presented, and the variations may be material.

Nature of prospective information

The financial information presented consists of forecasts that have been prepared on the basis of best estimates and assumptions on future events that Urban Plus Limited expects to take place.

Statement of compliance with International Financial Reporting Standard

The financial statements have been prepared in accordance with New Zealand generally accepted accounting practice. They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable financial reporting standards, as appropriate for public benefit entities.

Reporting entity

UPL is a company registered under the Companies Act 1993 and a council-controlled trading organisation as defined by Section 6 of the Local Government Act 2002. Hutt City Council is the only shareholder. The company was incorporated in New Zealand in 13 December 1996 as De Luien Developments Limited, changed its name to Centre City Plaza Limited on 27 June 1997, changed its name to Hutt Holdings Limited on 20 January 2003 and finally changed its name to Urban Plus Limited on 25 May 2007.

 

The financial statements have been prepared in accordance with the requirements of the Companies Act 1993, the Financial Reporting Act 1993 and the Local Government Act 2002.

 

For purposes of financial reporting, UPL is a public benefit entity.

Reporting period

The reporting period covers the 12 months from 1 July 2020 to 30 June 2021.  Comparative projected figures for the year ended 30 June 2022 and 30 June 2023 are provided.

Specific accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

 

The measurement basis applied is historical cost.

 

The accrual basis of accounting has been used unless otherwise stated.  These financial statements are presented in New Zealand dollars rounded to the nearest thousand, unless otherwise stated.

Judgements and estimations

Preparing financial statements in conformity with NZ IFRS requires judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses.  Where material, information on the major assumptions is provided in the relevant accounting policy or will be provided in the relevant note to the financial statements.

 

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

 

Judgements that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in the relevant notes.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts.

Debtors and other receivables

Debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

Revenue

Revenue is measured at the fair value of consideration received.

Revenue from the rendering of services is recognised by reference to the stage of completion of the transaction at balance date, based on the actual service provided as a percentage of the total services to be provided.

Sales of goods are recognised when a product is sold to the customer.  The recorded revenue is the gross amount of the sale, including credit card fees payable for the transaction.  Such fees are included in other expenses.

Property sales are recognised on settlement date, along with the related expenses

Interest income is recognised using the effective interest method.

Property, plant and equipment

On transition to NZ IFRS assets were recorded at cost less accumulated depreciation and impairment losses.

 

Revaluation

Land and buildings are revalued with sufficient regularity to ensure that their carrying amount does not differ materially from fair value and at least every three years.  All other asset classes are carried at depreciated historical cost.  The carrying values of revalued assets are assessed annually to ensure that they do not differ materially from the assets’ fair values.  If there is a material difference, then the off-cycle asset classes are revalued.

Revaluations of property, plant, and equipment are accounted for on a class-of-asset basis.

The net revaluation results are credited or debited to other comprehensive income and are accumulated to an asset revaluation reserve in equity for that class of asset.  Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive income but is recognised in the surplus or deficit.  Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed, and then recognised in other comprehensive income.

Additions

Expenditure of a capital nature of $500 or more has been capitalised.  Expenditure of less than $500 has been charged to operating expenditure. The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to UPL and the cost of the item can be measured reliably.


 

Disposals

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset.  Gains and losses on disposals are recognised in the Statement of Comprehensive Income.

Subsequent costs

Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to UPL and the cost of the item can be measured reliably.

Depreciation

Depreciation is provided on a straight line basis on all property, plant and equipment at rates that will write off the cost (valuation) of the assets to their estimated residual values over their useful lives.  The straight line depreciation rates are as follows:

 

Estimated economic lives

Years

Rate

Buildings

5 - 65

1.54% - 20.00%

Plant and equipment

8 - 11

9.09% - 12.50%

Leasehold improvements

4 - 5

20.00% - 25.00%

 

The residual value and useful life of an asset is reviewed and adjusted if applicable at each financial year end.

Intangible assets

Software acquisition and development

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.  Costs associated with maintaining computer software are recognised as an expense when incurred.  Costs that are directly associated with the development of software for internal use by UPL, are recognised as an intangible asset.

Amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life.  Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised.  The amortisation charge for each period is recognised in the Statement of Comprehensive Income.

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

 

Estimated economic lives

Years

Rate

Computer software

2.8         

36%

 

Impairment of non-financial assets

Assets with a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount.  The total impairment loss is recognised in the Statement of Comprehensive Income.


 

Goods and services tax

All items in the financial statements are stated exclusive of GST, except for receivables and payables.  Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the Statement of Financial Position.

Commitments and contingencies are disclosed exclusive of GST.

Employee entitlements

Short-term entitlements

Employee benefits that UPL expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay.  These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.

UPL recognises a liability for sick leave to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year.  The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that UPL anticipates it will be used by staff to cover those future absences.

UPL recognises a liability and an expense for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation.

Borrowings

Borrowings are initially recognised at their fair value.  After initial recognition, all borrowings are measured at amortised cost using the effective interest method.

Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

Creditors and other payables

Creditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

Income tax

Income tax for the period is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the period.  It is calculated using tax rates and tax laws that have been enacted or substantively enacted by the reporting date.  Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).

Property intended for sale

Property previously held but now being sold as it is no longer required is classified as a property held for sale.

This classification is used where the carrying amount of the property will be recovered through sale, the property is available for immediate sale in its present condition and sale is highly probable.

Property held for sale is recorded at the lower of the carrying amount and fair value less costs to sell.  From the time a property is classified as held for sale, depreciation is no longer charged on the improvements.

Where property is held for sale or for development for sale, in the ordinary course of business, it is classified as inventory.  Such property is recorded at the lower of cost and net realisable value (selling price less costs to complete and sale costs).  Any write-downs to net realisable value are expensed in the net surplus/(deficit) for the year.


 

Leased assets

Operating Leases

Leases where the lessor effectively retains substantially all the risks and rewards of ownership of the leased items are classified as operating leases.  Payments made under these leases are expensed in the Statement of Comprehensive Income on a straight-line basis over the term of the lease.  Lease incentives received are recognised in the Statement of Comprehensive Income as an integral part of the total lease payment.

Finance Leases

The Company has not entered into any material finance leases.

Financial instruments

The Company is party to financial instrument arrangements as part of its normal operation.  Revenue and expenses in relation to all financial instruments are recognised in the Statement of Comprehensive Income.

All financial instruments are recognised in the Statement of Financial Position on the basis of the Company’s accounting policies.  All financial instruments disclosed on the Statement of Financial Position are recorded at fair value other than those specifically identified in the Notes to the financial statements.

 


 

Urban Plus Registered Office and Contact Details for Key Officers

 

Registered office

30 Laings Road, Lower Hutt 5010

Contact details for Chairman and Chief Executive

Private Bag 31912, Lower Hutt 5040

Telephone

04 569 1000

 

 

 

 

 


 

Policy, Finance and Strategy Committee

20 January 2020

 

 

 

File: (20/60)

 

 

 

 

Report no: PFSC2020/2/42

 

Council performance report for the half year ended 31 December 2019

 

Table 1: Proposed changes to budgets for which approval is sought

$Million

 

$M

 

Operational expenditure

 

 

Events Centre unbudgeted costs for which there are contractual commitments

-Promotion $150k

-Underwrite – budget $250k, however forecast cost is $430k (i.e. additional $180k). This is the final year of the underwrite exposure.

Note that the 2018/19 cost of underwrite was $745k.

Higher costs

(0.33)

Additional unbudgeted Community Facilities Trust grant – relates to Fraser Park Sportsville settlement of disputed building costs. This amount was paid to the supplier in December 2019.

Higher costs

(0.3)

Emergency Management Office Hutt Road building costs moved to capital expenditure

Transfer

0.15

Budget transfers to fund Voice of Naenae

Transfer

(0.06)

Total operational expenditure budget changes

 

(0.54)

 

Capital expenditure

 

 

Dowse Museum Entrance- refer Appendix 7, Section A for further information

Higher costs

(0.025)

Avalon Park Toilets

-           Additional funding to complete work on toilets

Higher costs

(0.03)

Akatarawa Cemetery Toilet block

-           For urgent work to provide toilets as a joint project with UHCC

 

Higher costs

(0.1)

Hall Crescent land purchase (offset by asset sales)

Nil impact

(0.59)

Shopping Centre improvements – transfer to opex to fund Voice of Naenae community engagement

Transfer

0.06

Emergency management Office Hutt Road building costs moved to capital expenditure

Transfer

(0.15)

Admin building renovations

-includes mail sorting and storage in admin building

Higher costs

(0.05)

Total capital expenditure budget changes

 

(0.9)

 

Table 2: Proposed carry forward of operational and capital expenditure budgets

$Million

$M

 

Operational revenue and expenditure:

 

Hutt Valley Tennis

- Note budget of $1.35M reduced to $0.5M in line with Draft Annual Plan 2020/21 decision 11 February 2019

1.35

Development stimulus Package

- due to delays in development progressing

2.00

Mahia Atu Partnership Fund $7k and Mahia Atu Partnership fund $163k

- funds not fully allocated due to applicants not meeting criteria and did not align with strategy

0.17

NZTA capital subsidies associated with capital delays

(2.60)

Net operational expenditure proposed to be carried forward to 2020/21 and beyond

0.94

 

Capital expenditure

 

Urban Growth Strategy Improvements

1.45

Naenae Pool major refurbishment

- balance of the $9M budget

0.8

Naenae Hub ground works

- transfers into funding to be held pending Naenae spatial plan

0.4

Toilets upgrade

- work behind schedule

0.04

Manor Park Cycle Trail

- agreement not reached with golf park and GWRC

0.05

Te Whiti Park Building extension

- work is behind schedule and is expected to be completed in 2020/21 

0.05

Riverlink - Promenade and Urban Improvements

- delays in Strategic land purchases related to Riverlink

1.43

Cross Valley Link – Investigation/design

- delays in progressing this work

0.62

Cycleway/Shared Path

- Beltway $180k and Eastern bays $4.1M

4.28

Sub-standard roads upgrade

-relates to Hill Road upgrade work

0.76

Total capital expenditure proposed to be carried forward  to 2020/21 and beyond

9.88

 

Table 3: Proposed bring forward of funding for seismic strengthening work

$Million

$M

 

Capital expenditure

 

Walter Nash Centre Seismic strengthening works- Refer Appendix 7, Section B for further information.

Proposes $0.3M of the Seismic strengthening set aside in the draft Annual Plan 2020/21 is brought forward to 2019/20

0.3

Total capital expenditure proposed change

0.3

 


Section A- Dowse Entrance Upgrade

1.

Project/initiative

Dowse Entrance Upgrade

2.

LTP Activity

Integrated Community Services (Leisure and Wellbeing) 

3.

Business lead

Karl Chitham – Head HCC Museums Division

4.

Brief project description

(problem/opportunity statement)

A CAPEX allocation for a Dowse Art Museum Entrance Upgrade was first approved for the 2016/17 year. In 2015 Athfield Architects undertook site visits and workshops to define the scope of the project and to consult with users, staff and the wider community. Due to the prioritisation of the overall Civic Centre rejuvenation and other Museums Division projects the Entrance Upgrade was rescheduled to 2019/20 financial year.  

 

The Museums Division has worked alongside the Facilities Management team to procure an Architect (Architecture +) based primarily on making access to the Dowse Art Museum as easy and seamless as possible. Through consultation with key stakeholder groups (Friends of the Dowse and the Dowse Foundation), the previous Mayor and the current CEO the final design was chosen as it addressed the issues of access while blending the new entrance with the current building.   

 

Rationale

Upon completion of the NEW Dowse redevelopment in 2007 it was quickly identified that the Entrance alignment was incorrect leading visitors to be confused, frustrated and unsure about how to enter the building. The subsequent Civic Centre redevelopment has exacerbated this response.

 

Visitor and peer feedback identifies the current entrance to The Dowse Art Museum as an issue for the building’s accessibility – physical and metaphorical:

 

·      The front of the building does not have a clear call to action (‘Visit us’)

·      There are two doors (for The Dowse and for the café) neither of which is clearly the dominant door

·      The Dowse’s door is located closer to Stephens Grove, but Laings Road is the place where most visitors come from

·      Once entering through either door, visitors are not immediately connected with a front of house staff member diluting the customer experience from the outset

·      It is not clear on entering The Dowse’s door whether you should turn right or left

·    As one visitor has told us “You feel stupid trying to get into the building”.

 

5.

Strategic alignment and desired outcomes sought

Strategic Alignment:

·      Actively engaged in community activities

·      Strong and inclusive communities

·      A healthy and attractive built environment

 

The desired outcomes would be:

·      Visible and easy access to the Dowse Art Museum

·      Improvement in visitor experience

·      Reduction in negative comments from visitors

6.

Community engagement

Refer above

7.

Overview of project costs and funding source (refer tables below)

In October 2019 the project was at procurement phase for contractors and suppliers and was estimated to cost between $250,000 and $300,000 (not including replacing the decking along the length of the Dowse Square frontage) to be funded from the Museums Division CAPEX allocation. 

 

Completion of the project was at that time scheduled for June/July 2020.  Following the election outcome this project was put on hold due to a HCC financial review and is now awaiting approval to continue.

 

In the 2019/20 financial year approx. $9k has been spent on quantity surveying and approx. $50k has been committed to the Architectural work already completed. This leaves approx. $190k of the current $250k CAPEX allocation.

 

 

In light of Council’s recent conversations on financial constraints, officers have identified this project as one that could be put on hold and reconsidered at a later date.  As such, officers suggest delaying this project and moving the remaining $190k CAPEX allocation shifted to 22/23.

 

 

 

8.

Risks and mitigation plans

Risks:

·      Continuing stakeholder dissatisfaction through building access issues leading to negative community feedback

·      Delay in project leads to increase in costs and CAPEX allocation no longer being adequate to cover the eventual project

·     

Mitigation:

·      Consider any other low-cost improvements to way-finding in the short term, from existing budgets. Develop interim communication strategy to address feedback from community around the reprioritisation of the project.  

 

9.

Annual Plan/LTP key assumptions

$190k CAPEX allocation in 2019/20 shifted to 22/23.

 

 

Further budget information

Table 2: Capital budgets

 

2019/20

Per Annual Plan 2019/20

$250k

Proposed revised budget 2019/20

$275k

Variance

($25k)

Additional funding

 

 

 

 

 

 

 

 


 

Section B: Walter Nash Centre Seismic Upgrade

1.

Project/initiative

Walter Nash Centre Seismic Upgrade

2.

LTP Activity

Integrated Community Services (Leisure and Wellbeing) 

3.

Business lead

Mike Mercer – Head of Community Hubs

4.

Brief project description

(problem/opportunity statement)

The corridor at Walter Nash Centre (old side) has been closed to the public due to seismic concerns. Officers have been progressing with engineers a design solution to bring the corridor to 34% NBS and reopen to the public.

 

In the interim the stadium is being managed as two facilities, which has a small increase in operational costs and significant public nuisance to users.

 

Original scope of works was estimated at $120k to complete and was going to be absorbed within existing budgets.

 

During the design Engineers have identified further strengthening work which will be required. This work will exceed the budget available. While no estimates are available at this time it proposed that $300k is set aside from the $2.5M seismic fund Council has allocated in the draft Annual plan. This funding would be required to be brought forward to this financial year to begin works as soon as practical.

 

Final costs will be available in March once design is completed.

 

There is no alternative solution to reopen the corridor. 

5.

Strategic alignment and desired outcomes sought

Strategic Alignment:

·      Actively engaged in community activities

·      Strong and inclusive communities

·      A healthy and attractive built environment

 

The desired outcomes would be:

·      Reopening of corridor and community facility back fully operational

·      Reduce operational costs of running facility as two parts

·      Remove nuisance to users

6.

Community engagement

N/A

7.

Overview of project costs and funding source (refer tables below)

As above.

 

Officers are seeking approval of a revised budget change of $0.3m in 2019/20 year.

 

8.

Risks and mitigation plans

Risks:

·      Stakeholder dissatisfaction through building access issues leading to negative community feedback and nuisance for users. Long term risk regarding discontinued use

·      Interim operational costs have increased to man both sides of stadium

·      Delay in project leads to increase in costs and CAPEX allocation no longer being adequate to cover project

 

Mitigation:

·      Progress works as soon as practical

 

9.

Annual Plan/LTP key assumptions

Project scheduled to be completed in 2019/2020.

 

 

 

 

 

Further budget information

Table 1: Operational budgets for seismic strengthening – no proposed change

$M

2019/20

2020/21

2021/22

2022/23

Total

Per draft Annual Plan  2020/21

-

0.15

0.15

0.1

0.4

No Proposed change

-

0.15

0.15

0.1

0.4

Variance

-

-

-

-

-

 

Table 2: Capital budgets for seismic strengthening – bring forward of funding into 2019/20

$M

2019/20

2020/21

2021/22

2022/23

Total

Per draft Annual Plan 2020/21

 

1.25

0.75

0.1

2.10

Proposed change

0.3

0.95

0.75

0.1

2.10

Variance

(0.3)

0.3

-

-

-

 

 


                                                                     150                                               4 March 2020

 

HUTT CITY COUNCIL

 

Community and Environment Committee

 

Minutes of a meeting held in the Council Chambers, 2nd Floor, 30 Laings Road,

Lower Hutt on

 Wednesday 4 March 2020 commencing at 2.00pm

 

 

 

PRESENT:

Deputy Mayor T Lewis (Chair)

Mayor C Barry

 

Cr D Bassett

Cr J Briggs (Deputy Chair)

 

Cr K Brown

Cr B Dyer

 

Cr A Mitchell

Cr S Rasheed

 

Cr N Shaw

Cr L Sutton

 

APOLOGIES:                  Crs Edwards, Hislop and Milne

 

IN ATTENDANCE:       Ms J Miller, Chief Executive (part meeting)

Ms A Blackshaw, Acting General Manager, City and Community Services

Mr B Kibblewhite, General Manager, Corporate Services

Ms H Oram, Acting General Manager, City Transformation  

Mr J Frericks, Ecology/Horticulture Advisor (part meeting)

Mr B Hodgins, Strategic Advisor, City and Community Services (part meeting)

Mr S Cager, Senior Project Engineer (part meeting)

Mr D Kerite, Head of Environmental Consents (part meeting)

Cr G Stuart, Head of Regulatory Services and Emergency Management (part meeting)

Mr P Maaka, Urban Design Manager (part meeting)

Ms D Male, Committee Advisor

 

 

PUBLIC BUSINESS

 

 

1.       APOLOGIES 

Resolved:  (Deputy Mayor Lewis/Cr Briggs)                     Minute No. CEC 20201

“That the apology received from Crs Edwards, Hislop and Milne be accepted and leave of absence be granted.”

 

2.       PUBLIC COMMENT

Comments are recorded under the item to which they relate.      

 

3.       CONFLICT OF INTEREST DECLARATIONS     

Cr Brown declared a conflict of interest in relation to item 4ii) Wainuiomata Marae Development and took no part in discussion or voting on the matter.

Members noted Cr Dyer’s involvement with Petone 2040 and the Highlight Festival in relation to item 6 General Managers Report.

4.       Recommendations to Council - 24 March 2020

i)

Indigenous Biodiversity Fund (20/17)

 

Speaking under public comment, Ms D Clark thanked officers for their work and noted the progress made with landowners. She expressed support for the officer’s report and recommendations. She added that she would like to see additional financial support.

In response to a comment from a member, Ms Clark advised that officers had listened to and spoken to landowners and the shift had been critical.

 

Speaking under public comment, Mr K Jackson thanked officers for their approach. He advised that he had spoken at the recent Policy, Finance and Strategy Committee meeting, in relation to the submission on the Proposed National Policy Statement for Indigenous Biodiversity. He expressed support for Council’s approach.

In response to a question from a member, Mr Jackson advised that he was quite likely to engage with the fund from the environmental side. He said that he would like to see more funding, although he appreciated Council’s financial situation. He added that when a survey had been conducted previously there had been questions on the public donating money, which was an option to be considered.

 

The Strategic Advisor, City and Community Services and the Ecology/Horticulture Advisor elaborated on the report.

The Ecology/Horticulture Advisor highlighted a correction to paragraph 14 of the officer’s report that the Queen Elizabeth II Trust considered land by the significance of the biodiversity and not the size of the land. He added that support available would be communicated to landowners. He highlighted the results from the survey referred to by the speaker under public comment in relation to landowners financially contributing.

 

In response to a question from a member, the Acting Divisional Manager, City Transformation advised that officers were investigating conservation covenants under the Reserves Act 1977. She added that officers were awaiting feedback on court proceedings which potentially could affect provisions in the District Plan which could be more restrictive.

Mayor Barry acknowledged the work of officers with the landowners to reach a positive outcome.

Cr Mitchell suggested some additional wording to parts (ii) and (iv) of the motion. With the agreement of the mover and seconder the wording was included within the motion. 

The meeting was adjourned at 2.42pm and the meeting resumed at 2.46pm.

The Chair commented on the work and trust built with officers and the landowners.

Cr Mitchell asked to withdraw the additional wording he suggested for part (ii) of the motion with the agreement of the mover and seconder the wording in part (ii) was removed and the words “including covenanting of land” retained in part (iv) of the motion.

 

ReCOMMENDEd:  (Deputy Mayor Lewis/Cr Brown) Minute No. CEC 20202

“That the Committee recommends that Council:

(i)    approves a process for landowners to be able to apply for support grants for indigenous biodiversity on their properties using the fund that was established for this purpose in June 2019;

(ii)   agrees to a two-tier grant model in which the fund is divided into these tiers based on demand and potential positive impacts of the applications received for each tier. Tier 1 grants should take the form of supply of materials or work and Tier 2 should take the form of a contestable fund for projects that have a suitable management plan;

(iii)  agrees that Tier 1 grants should have a maximum Council contribution of $1,000. This would primarily be used for the supply of materials or work and could also include the development of a “project management plan” or a “property management plan” which would enable the landowner to apply for Tier 2 grants at the next opportunity;

(iv)  agrees that Tier 2 grants should have a maximum Council contribution of $20,000 – with exceptions to be approved by the Head of Parks and Recreation. Tier 2 applications should be weighted and prioritised by their outcomes so that the projects with the greatest impact, including covenanting of land, are funded;

(v)   agrees that properties which are eligible for landowner grants (Tier 1 and Tier 2) must meet one or more of the following criteria:

(a)   contain or adjoin areas of indigenous vegetation greater than 1 hectare;

(b)   contain or adjoin wetlands, waterways or waterbodies; and/or

(c)   contain or provide habitats for organisms that are Threatened, At Risk, or Data Deficient in the New Zealand Threat Classification System by Te Papa Atawhai, Department of Conservation;

With an additional requirement of a suitable “project management plan” or “property management plan” for the Tier 2 grants. All management plans must have measurable targets or progress indicators; and

(vi)  requests a review of the operation and performance of supported projects for July 2021, following a full year of operation. The review should also contain recommendations to increase effectiveness of the programme in increasing indigenous biodiversity.”

 

 

 

For the reasons that: 

-      The support will demonstrate Council’s commitment to indigenous biodiversity and that landowners may need assistance to maintain or promote indigenous biodiversity on their properties.

-      The two-tier distribution of grants allows smaller projects to be supported without disproportional administrative overheads and larger projects can also be supported with accountability and measures of success.

-      Most of the activities such as pest control, weed control or the supply of materials can be most efficiently supported by coordinating across properties. In some cases this work will be supported by existing work streams that can be expanded into landowner’s properties.

-      Larger projects may have superior outcomes for indigenous biodiversity. Suitable management plans will have measureable targets which can be reported on.

-      Areas that have indigenous biodiversity values matching the criteria above should have the highest priority for protection and restoration and will be likely to have the most positive effects on its surroundings. In some cases they are protected by national and regional acts and strategies.

 

ii)

Wainuiomata Marae Development (20/5)

 

Cr Brown declared a conflict of interest in relation to the item and took no part in discussion or voting on the matter.

The Strategic Advisor, City and Community Services elaborated on the report.

 

RECOMMENDED:  (Deputy Mayor Lewis/Cr Briggs)  Minute No. CEC 20203

“That the Committee recommends that Council:

(i)    notes that the Wainuiomata Marae Trust has progressed plans for Papakainga housing on the Maori reservation that it controls;

(ii)   notes that the Council proposal to revoke the reserve status of the adjacent local purpose reserve was publicly notified with no submissions received from the general public;

(iii)  notes that engagement with iwi resulted in a request that Council halt its proposal and consider:

(a)   retaining the property as local purpose reserve;

(b)   entering into a Memorandum of Understanding (MOU) with the Wainuiomata Marae Trust for the co-management of the reserve; and

(c)   including Atiawanuitonu (iwi forum representing local iwi interests) as an interested third party to the agreement, with particular interest in development options for the reserve; and

(iv)  agrees that Council halt the revocation process and enter into further discussions with the Wainuiomata Trust and Atiawanuitonu on the details of an MOU for the co-management of the local purpose reserve.”

For the reason that the proposed co-management solution would provide a basis for ensuring cohesive planning for all reserve land immediately surrounding the Wainuiomata Marae.

 

5.       Recommendations to Long Term Plan Annual Plan Subcommittee – 18 March 2020

Cycleway Projects Updates and Budgets (20/153)

Report No. CEC2020/2/54 by the Senior Project Engineer

 

Speaking under public comment, Ms V Horrocks, Chair, Eastbourne Community Board asked for clarification on the two tables of costings outlined on page 27 of the order paper.

With leave of the Chair, in response to the question raised under public comment, the Senior Project Engineer advised that the table under paragraph 40 of the officer’s report was the funding allocation in the Annual Plan 2019/20 and the table under paragraph 42 of the officer’s report was the funding allocation in the Draft Annual Plan 2020/21.

Ms Horrocks tabled information for the members and gave a brief history of the work ongoing for 25 years for the Eastern Bays shared pathway. She highlighted the support from local stakeholders including the New Zealand Transport Agency (NZTA), the Eastbourne Community Board, Muritai School and residents. She added that Forest and Bird opposed the proposal, although had indicated support for the project. 

Ms Horrocks said that the Eastern Bays shared path should not be seen in competition to other cycleways for funding. She added that safety was of importance and it would be a first step on work after declaring a climate emergency.

In response to a question from a member, Ms Horrocks expressed support for the full shared pathway to be completed for the Eastern Bays.

Speaking under public comment, Ms B Moss, member,Lowry Bay Residents Association Committee highlighted the current safety concerns within Lowry Bay. She urged members to consider budget approval for the entire Eastern Bays shared path project.

Speaking under public comment, Mr M Young referred members to extracts from the Walk and Cycle in the Hutt Strategy, the Hearing Commissioners’ decision in relation to District Plan Change 43 and submissions made to Council’s Community Plan Committee in 2019 by medical practitioners. He said it was an opportunity to consider core Council infrustructure and active transport was crucial going forward. He added that there were benefits to mental health and wellbeing and the project linked to the declared climate emergency. He commented on the requirement of a connectivity review and the debt funding of capital expenditure projects which would be important in the next 10-15 years.

Speaking under public comment, Mr G Hall representing the Great Harbour Way expressed concern that work had been put into the extended consultation and design process. He believed the project was at resource consent stage and Council was getting cold feet. He also believed that just covering the two sections for safety concerns would not help. He suggested that the $4M should be used to help with the pinchpoints along the Eastern Bays, not just at Windy Point. He added that the project had been worked on for years and had been changed and deferred in that time. He expressed support for moving forward with the entire project.

The Senior Project Engineer elaborated on the report.

In response to questions from members, the Senior Project Engineer advised that if the $15M remained in the draft Annual Plan 2020/21, an additional $4.1M would be required to be added. He said that as part of the Memorandum of Understanding for the Wainuiomata shared path included the provision for one part of the Beltway to be completed. He added that if this was not completed then Council would need to repay the subsidy to NZTA of up to $2.8M.

In response to a question from a member, the Senior Project Engineer advised that the Beltway was at tender stage, with construction set to commence in a few months.

In response to a question from a member, the Senior Project Engineer advised that the NZTA Eastern Bays subsidy was at resource consenting stage and then Council would be required to apply for funding for construction. He added that the subsidy could only be applied for the Windy Point section in the National Land Transport Programme period of 2018-21.

The Chair expressed support for option (a) contained in the officer’s report and moved that option, which was seconded by Cr Briggs.

Cr Sutton commented that she would not like to see the Beltway postponed.

Mayor Barry agreed with the comments of the previous speaker and added that the entire package of cycleways was important and of importance to the Eastern Bays community.

Cr Brown expressed support for the entire project. She questioned if the rise in the project cost should have been considered in the project forecast.

The Chief Executive advised that going forward there would be more transparent information on projects.

Cr Briggs expressed support for the motion. He agreed with the public speaker, Mr Young, in relation to strategies and implementing plans for the betterment of communities and to reduce carbon emissions.

Cr Shaw expressed support for motion.

Cr Rasheed supported the comments of the two previous speakers. She added her support for active transport and implementing plans for the future of the city.

Cr Dyer expressed support for the motion.

The Chair highlighted the comments made under the public comment section of the meeting and the work of Council and District Plan Change 43. She added that people needed infrustructure options in the future for all modes of transport to move around .

Mayor Barry reminded members that the project would be included in the consultation process for the Amendment to the Long Term Plan 2018-2028 and draft Annual Plan 2020/21.

 

Resolved:  (Deputy Mayor Lewis/Cr Sutton)                         Minute No. CEC 20204

“That the Committee notes the options on progressing the cycleways programme.”

RECOMMENDED:  (Deputy Mayor Lewis/Cr Briggs)              Minute No. CEC 20205

“That the Committee recommends to the Long Term Plan/Annual Plan Subcommittee to recommend to Council to approve the allocation of an additional $19.1M to complete all the projects in the original programme (this includes the provisional placeholder of $15M currently in the Draft Annual Plan 2020/21).”

 

6.

General Managers Report (20/90)

Report No. CEC2020/2/55 by the Head of Environmental Consents

 

The Acting General Manager, City Transformation and the Acting General Manager, City and Community Services elaborated on the report.

In response to a question from a member, the Acting General Manager, City Transformation agreed to follow up on where the retail spending information came from.

In response to a question from a member, the Head of Environmental Consents advised that a lot of work had been conducted in previous years in relation to earthquake prone buildings. He added that this had resulted in the need for just five letters to be sent to property owners.

Cr Brown congratulated the Animal Services Officer who had volunteered to help animals caught up in the bushfires in Australia.

In response to questions from a member, the Head of Regulatory Services and Emergency Management advised that the numbers of dogs euthanised was very low. The Acting General Manager, City Transformation added that the report covered activity from previous months. She agreed to add an update in a future report on the Waiu Street dog park.

In response to a question from a member, the Chief Executive advised that Council’s Corporate Leadership Team had requested more work be undertaken on the Energy and Carbon Reduction Plan for 2020-2024 (the Plan). She added that the once the Plan was finalised it would be made available.

 

In response to a question from a member, the Acting General Manager, City and Community Services advised that concerns in relation to the lack of fencing at Seddon Street Playground and speeding in the area would be passed on and an update provided.

 

In response to a question from a member, the Acting General Manager, City and Community Services advised that the Events Strategy was being reviewed and feedback could be provided in relation to the Te Whiti Riser night walk.

 

 

Resolved:  (Deputy Mayor Lewis/Cr Rasheed)                      Minute No. CEC 20206

“That the Committee notes and receives the report.“

 

7.       Information Item

Community and Environment Committee Work Programme (20/150)

Report No. CEC2020/2/27 by the Committee Advisor

Resolved:  (Deputy Mayor Lewis/Cr Briggs)                         Minute No. CEC 20207

“That the work programme be noted and received.”

     

8.       QUESTIONS   

          There were no questions.

 

 

There being no further business the Chair declared the meeting closed at 3.19pm.

 

 

 

 

 

 

Deputy Mayor T Lewis

CHAIR

 

 

 

 

CONFIRMED as a true and correct record

Dated this 24th day of March 2020


                                                                                     153                                                       24 March 2020

Hutt City Council

26 February 2020

 

 

 

File: (20/192)

 

 

 

 

Report no: HCC2020/2/76

 

Proposed New Private Street Name - Subdivision of 80 Parkway, Wainuiomata

 

Purpose of Report

1.    To seek approval for the proposed new street name “Ron Fawcett Way” for the new private road at 80 Parkway, Wainuiomata.

Recommendations

That Council approves the recommended private street name and road type for the subdivision at 80 Parkway, Wainuiomata, as suggested below:

a)    Ron Fawcett Way”.

For the reasons:

·     an approved street name is needed for service connections and the issuing of titles for the new subdivision;

·     the Wainuiomata Community Board supports the proposed naming; and

·     Land Information New Zealand has approved the proposed name as suitable for use.

 

Background

2.    A new 66 lot residential subdivision is currently under construction at 80 Parkway, Wainuiomata.

3.    The new subdivision includes a new public road, and a private road to access the residential lots, as shown in Appendix 1 attached to the report.

4.    The subdivision cannot proceed to completion without approved street names and legalised street addresses.

5.    At its meeting held on 19 February 2020, the Wainuiomata Community Board (WCB) approved the use of “Grovedale Terrace” for the new public road, and “Fawcett Way” for the new private road.

6.    “Fawcett Way” was thought to be acceptable for use by Land Information New Zealand (LINZ) however, subsequent to the WCB meeting, LINZ have advised that “Fawcett Way” was too similar to an existing road “Fawcett Place”, located approximately 7km away (as the crow flies) in Belmont.

7.    Officers therefore submitted an amended proposal for the use of “Ron Fawcett Way” to LINZ. LINZ has advised that this is an acceptable street name as it is sufficiently different to the existing road in Belmont.

8.    The amended street name “Ron Fawcett Way” has also been presented to WCB through the Community Board chair, who has indicated that the WCB supports the amended street name.

9.    The amended street name now needs to be approved by Council as the next Wainuiomata Community Board meeting is not scheduled until 22 April 2020.

Discussion

10.  The proposed amended street name “Ron Fawcett Way” was submitted as a naming option at the WCB meeting held on 19 February 2020, however “Fawcett Way” was preferred due to the convention of minor roads typically having names no longer than the roads which they are accessed from.

11.  Both “Fawcett Way” and “Ron Fawcett Way” were submitted during public consultation and are acceptable to the subdivision developer.

12.  The amended street name proposal “Ron Fawcett Way” is acceptable to LINZ and WCB and will allow the subdivision to proceed to completion by providing legal street addresses without further delay.

13.  Returning the amended street name proposal to the next WCB meeting could delay completion of the subdivision as service connections are not possible without legal street addresses.

Options

14.  The amended street name meets the requirements of the New Zealand Standard, is approved by Land Information New Zealand, and can be approved for use for the private road.

(a)   “Ron Fawcett”.

15.  The recommended road type is:

(a)   Way.

16.  Alternatively, Council could refer the naming back to the Wainuiomata Community Board.

17.  Officers recommend adopting the proposed street name and road type as per paragraphs 14. and 15. above as referring the naming back to the Wainuiomata Community Board could delay completion of the subdivision.

Consultation

18.  Public consultation was carried out via advertisements in the Hutt News and Wainuiomata News.

19.  Suggestions were also invited from Port Nicholson Block Settlement Trust and Wainuiomata Marae.

20.  “Fawcett” and “Ron Fawcett” were submitted for consideration by Ron Fawcett’s daughter in the consultation process.

21.  The amended street name was resubmitted to the WCB prior to inclusion in this report.

Legal Considerations

22.  Council has the authority to approve the name for the private road.

23.  It is important that new streets are named early in the development stage as a variety of utility connections and other administrative bodies require individual street addresses, in order for the necessary connections to be provided.

Financial Considerations

24.  There are no financial considerations. The developer is responsible for the necessary street name signs. This will be undertaken by Council’s contractor with the cost paid by the developer.

Appendices

No.

Title

Page

1

Appendix 1: 80 Parkway - Private street name amendment - Plan

154

2

Appendix 2: Name submissions for 80 Parkway - Ron Fawcett

155

    

 

 

 

Author: Threesa Malki

Traffic Engineer

 

 

 

 

Approved By: Damon Simmons

Traffic Asset Manager

 


Attachment 1

Appendix 1: 80 Parkway - Private street name amendment - Plan

 


Attachment 2

Appendix 2: Name submissions for 80 Parkway - Ron Fawcett

 


 


MEMORANDUM                                                 158                                                       24 March 2020

Our Reference          19/280

TO:                      Mayor and Councillors

Hutt City Council

FROM:                Kathryn Stannard

DATE:                08 March 2019

SUBJECT:           2020 Local Government New Zealand Conference

 

 

Recommendation

That Council:

(i)    notes the 2020 Local Government Conference programme attached as Appendix 1 to the memorandum; and

(ii)   nominates the Mayor, Deputy Mayor and one other Councillor to represent Hutt City Council at the 2020 Local Government New Zealand Conference to be held in Blenheim from 16-18 July 2020.

 

Purpose of Memorandum

1.    The purpose of the memorandum is for Council to nominate the Mayor, Deputy Mayor and one other Councillor to represent Council at the annual Local Government New Zealand conference and EXCELLENCE Awards from 16-18 July 2020.

Background

Local Government New Zealand (LGNZ)

2.    LGNZ is the primary political representative body of local government in New Zealand.  Its purpose is to provide national representation to elected representatives.  LGNZ monitors developments affecting local government in New Zealand and has advocacy, research and advisory roles.

3.    To assist LGNZ in its activities the country is divided into six geographical zones.  Hutt City Council is a member of Zone 4 which comprises all members’ authorities within the Wellington Region.  

2020 LGNZ Conference

4.    This year LGNZ's annual conference will be held in Blenheim from 16-18 July 2020.

5.    The 2020 conference theme is "Natural Capital: Leveraging what makes your place great".  The programme is attached as Appendix 1.

6.    The conference will take place in Blenheim and be host to approximately 500 delegates made up of Mayors, Chairs, Chief Executives, Councillors and senior management from New Zealand’s Councils along with key players from the private sector.  It is the once chance each year for all Councils to be in the same room at the same time.

Financial Considerations

7.    The full registration cost per participant is $1,410 (early bird registration).  Day registration is $770. 

8.    Councillors are eligible for financial support for training which may include formal training courses and attendance at conferences.  

9.    Councillors, who have not been nominated by Council to attend the LGNZ Conference, can use their personal training budget if they wish to attend.  Financial support is capped at $2,153 per Councillor per annum.

10.  There is financial provision in the 2019/20 budget for this activity. 

 

Appendices

No.

Title

Page

1

Appendix 1 LGNZ Conference programme

159

    

 

 

 

 

Author: Kathryn Stannard

Head of Democratic Services

 

 

 

 

Approved By: Brent Kibblewhite

General Manager Corporate Services

 


Attachment 1

Appendix 1 LGNZ Conference programme

 


 


 


 


                                                                                     166                                                       24 March 2020

Hutt City Council

17 February 2020

 

 

 

File: (20/154)

 

 

 

 

Report no: HCC2020/2/77

 

Plan Change 43 - Residential and Suburban Mixed Use - Operative in Part

 

Purpose of Report

1.    To obtain the approval of Council to make Plan Change 43 to the City of Lower Hutt District Plan (District Plan) operative in part.

Recommendations

That Council:

(i)    resolves, pursuant to clause 17 of the First Schedule of the Resource Management Act 1991, to approve in part Change 43 to the City of Lower Hutt District Plan; and 

(ii)   notes that a public notice will be included in the Hutt News on 31 March 2020 advising the operative in part date of Plan Change 43. 

For the following reasons:

·     All provisions of the plan change except 13 rules and one policy are now beyond legal challenge and all rules except 13 are being treated as operative under section 86F of the Resource Management Act 1991.

·     Resolving Plan Change 36 through a section 293 process requires first making Plan Change 43 operative in part.

 

Background

2.    Plan Change 43 was publicly notified on 7 November 2017. Plan Change 43 reviews the General Residential Activity Area provisions and introduces two new activity areas, providing for medium density residential development and suburban mixed use in targeted areas. Plan Change 43 also makes several consequential changes to related chapters of the District Plan.

3.    A hearing of submissions on the plan change was held between 2 and 17 September 2019.

4.    On 6 November 2019 Council publicly notified its decisions on Plan Change 43. 

5.    The period for appealing the plan change expired on 18 December 2019 and three appeals were received. Each of these appeals was relatively narrow in focus, with a total of 13 rules and one policy appealed.

6.    Since the expiration of the appeals period for Plan Change 43 all rules that are not subject to an appeal, and are therefore beyond challenge, have been treated as “operative” under section 86F of the Resource Management Act 1991 (RMA), and their equivalent provisions in the prior version of the District Plan have been treated as “inoperative”.

7.    The 13 rules subject to an appeal currently have “legal effect” alongside their equivalent rules in the prior version of the plan. This means that there may be two applicable rules governing the same activity until the relevant appeal is resolved.

Discussion

8.    The usual procedure for a Plan Change would be to continue to treat the rules that are beyond challenge as operative under section 86F until all appeals have been fully resolved. Only at this point would the Plan Change be formally made operative. However, the overlap of the vegetation clearance provisions in the General Residential Activity Area (GRAA) in Plan Change 43 and in Plan Change 36 (Notable Trees) presents complications for resolving the appeals on Plan Change 36. A summary of the relevant parts of the timelines for Plan Change 43 and Plan Change 36 is set out in Appendix 1.

9.    In summary, Plan Change 36 deleted rule 4A 2.3(b) from the GRAA provisions. The intention of this deletion was to provide for all vegetation clearance activities in the GRAA as a permitted activity. However, due to the wording of the 'catch-all' rule contained in the GRAA (rule 4A 2.5), the actual effect was that all vegetation clearance activities were in fact non-complying activities under PC36. This was considered to be an unintentional and unsustainable outcome. 

10.  The sole appeal to the Environment Court on Plan Change 36, lodged by the East Harbour Environment Association (EHEA), did not address the provisions of the GRAA. As the EHEA appeal did not provide the necessary scope to fix the concern, Council lodged an application under section 293 of the RMA with the Environment Court. That application sought to amend the provisions of the GRAA to enable all vegetation clearance activities as permitted activities. In parallel, Council submitted on Plan Change 43 seeking the same permitted activity rule. 

11.  Plan Change 43 sought to replace the entire GRAA chapter of the Plan and therefore seeking such a rule through that process was considered to be appropriate. Given the timing of the Council hearing on Plan Change 43 (September 2019) and the Environment Court hearing of the PC36 appeal and the section 293 application (11 November 2019), Council sought to withdraw that part of its section 293 application that related to the GRAA.  This was opposed by Forest and Bird (who had submitted and joined as a section 274 party to the section 293 proceeding). The permitted activity rule as sought by Council through its submission on Plan Change 43 was granted by the Commissioners decision on Plan Change 43 prior to the commencement of the Plan Change 36 appeal hearing. 

12.  During the Environment Court hearing on the section 293 application, the parties agreed to a set of provisions that would provide for some vegetation clearance activities as permitted in the other Residential Activity Areas and some as restricted discretionary activities. It was also agreed in principle that the same provisions should apply to the GRAA.

13.  Due to the appeal period on Plan Change 43 still running at the time of the Environment Court hearing on PC36, the procedural mechanism to implement the section 293 application could not be agreed. Instead, the parties to the Plan Change 36 appeal undertook to report to the Court early in 2020 after the Plan Change 43 appeal period closed. 

14.  The period for appealing plan change 43 expired on 18 December 2019 and there were no appeals received on the vegetation clearance provisions of the plan change.

15.  Legal advice received by Council recommends that resolving this issue with Plan Change 36 through a section 293 application would first require making the Plan Change 43 provisions that are not subject to an appeal formally operative. As the majority of the Plan Change 43 provisions are already being “treated as operative”, this decision to make Plan Change 43 formally operative in part would have little practical effect beyond formalising the de facto status of the plan change.

16.  The legal advice is that the alternative options for resolving Plan Change 36 all have considerable drawbacks in comparison to the process outlined above.

Options

17.  The alternative option to making Plan Change 43 formally operative in part is to leave it in its current status of being “treated as operative” in part under section 86F until the appeals are fully resolved at which point it can be made fully operative.

18.  This option would not allow the resolution of Plan Change 36 through the section 293 process.

Consultation

19.  Public consultation has been undertaken through the plan change process as required by the Resource Management Act 1991.

Legal Considerations

20.  Clauses 17 and 20 of the First Schedule of the Resource Management Act 1991, which set out the legal procedures, have been followed in making this plan change operative.

Financial Considerations

21.  There are no financial considerations.

Appendices

No.

Title

Page

1

Appendix 1 Plan Change 36 and 43 Timeline

167

    

 

 

 

Author: Joseph Jeffries

Senior Environmental Policy Analyst

 

 

 

 

Reviewed By: Hamish Wesney

Head of District Plan Policy

 

 

Approved By: Helen Oram

Acting General Manager, City Transformation

 


Attachment 1

Appendix 1 Plan Change 36 and 43 Timeline

 


 


MEMORANDUM                                                 170                                                       24 March 2020

Our Reference          20/226

TO:                      Mayor and Councillors

Hutt City Council

FROM:                Bruce Hodgins

DATE:                05 March 2020

SUBJECT:           Wellington Water Draft Statement of Intent

 

 

Recommendation

That Council:

(i)    notes the draft Statement of Intent for 2020-23 (SOI); and

(ii)   provides feedback to the Board of Wellington Water Limited in finalising the SOI as summarised in this memorandum.

 

Purpose of Memorandum

1.    To present Wellington Water Limited’s (WWL) draft Statement of Intent for 2020 -23 (SOI) as attached and consider any feedback from Council.

Background

2.    As required by the Local Government Act 2002, WWL delivered its draft SOI to its shareholder Councils by 1 March and has asked for any feedback by 17 April 2020.

3.    The Wellington Water Committee received and considered the draft SOI at its meeting held on 5 March 2020 with no changes.

4.    In previous years Hutt City Council has left formal consideration of the draft SOI to the Wellington Water Committee. It would seem appropriate for Council to separately receive the draft SOI and provide its own feedback to the Board of WWL.

5.    The draft SOI incorporates all of the matters set out in the letter of expectation reflecting the priorities of the six owner Councils and mana whenua, as coordinated through the Wellington Water Committee. The five main challenges that Hutt City Council has previously agreed are its priorities are adequately reflected in the draft SOI.

6.    The draft SOI was circulated to officers for comment, which is summarised below.

(a)   The draft SOI includes the outcomes and strategic priorities which are important for the District Plan Review. Specifically, the outcomes and strategic priorities relating to ‘supporting growth so there’s no adverse environmental impacts’, ‘reducing water consumption’, ‘improving water quality’ and ‘reducing the impacts of climate change’ are aligned with the areas to be reviewed in the District Plan. Technical input from Wellington Water in these areas will be important for the District Plan Review.

(b)   One area where it may be helpful for the draft SOI to be more explicit is under the heading “Planning” (pages 11 – 12) and “Reducing the impacts of climate change” (page 10), with greater focus on technical investigations and responses/mitigation measures for stormwater, particularly considering climate change.

(c)   In terms of managing WWL’s carbon footprint, there does not appear to be any means of tracking emissions. Officers suggest that WWL specifically includes in the SOI confirmation that it has in place a carbon reduction plan with targets that will be measured.

 

Appendices

No.

Title

Page

1

Appendix 1 Draft Wellington Water Limited SOI

171

    

 

 

 

 

Author: Bruce Hodgins

Strategic Advisor, City and Community Services

 

 

 

 

Approved By: Andrea Blackshaw

Acting General Manager City and Community Services


Attachment 1

Appendix 1 Draft Wellington Water Limited SOI

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


                                                                                     214                                                       24 March 2020

Hutt City Council

06 March 2020

 

 

 

File: (20/237)

 

 

 

 

Report no: HCC2020/2/78

 

District Licensing Committee - Code of Practice - 2019-2022

 

Purpose of Report

1.    To advise Council regarding the Code of Practice (COP) for the Hutt City District Licensing Committee.

Recommendations

That Council:

(i)    receives the Code of Practice for the Hutt City District Licensing Committee (COP) attached as Appendix 1 to the report; and

(ii)   endorses the COP.

 

Background

2.    The Sale and Supply of Alcohol Act 2012 (the Act) requires territorial authorities to appoint District Licensing Committees (DLC) as quasi-judicial bodies to decide matters relating to the issue of alcohol licenses and managers’ certificates, amongst other things.

3.    The Act sets out some process and procedures in relation to the powers and functions of the DLC, but largely leaves it to the DLC to regulate its own proceedings.

4.    The COP operates as a set of practices and procedures for the DLC to follow, unless there is a good reason to do otherwise. 

Discussion

5.    The Act provides a base set of practices and procedures for the DLC to follow. 

6.    Despite this, the DLC is able to regulate its proceedings as it sees fit.  There is some advantage in this approach as it allows the DLC to be a more flexible body and allows for more effective participation by interested parties.

7.    However, it is important to have an established set of operating procedures to promote a consistent and fair process that is in line with the principles of natural justice.  This provides a measure of certainty for applicants and submitters, as well as the DLC members. 

8.    The difficulty is striking a balance between the flexibility that is allowed by the Act and a desire to have an established and fair set of procedures that can be followed by all members of the DLC.  The COP should be viewed as a starting point in trying to achieve this balance and it deliberately allows for departures from it, where this is good reason to do so. 

9.    It should be specifically noted that the Alcohol Regulatory and Licensing Authority (the body that sits above the DLC in the judicial scheme) has issued practice directions from time to time, which may trump the practices outlined in the DLC and will need to be followed.  This is specifically referenced in the COP.

Options

10.  The adoption of a COP is not a requirement of the legislation.  It has been an undertaking for the benefit of the DLC, by giving them an initial set of practices and procedures to work from – as well as to provide comfort to Council that the DLC is conducting a fair process, in line with natural justice principles.

11.  There is no obvious reason for Council to decline to endorse the COP.

Consultation

12.  There are no further consultation requirements.

Legal Considerations

13.  The COP has been reviewed by Council’s legal advisors.  No amendments were required to the COP.

14.  The COP, as it stands, has enough flexibility incorporated within it to withstand any challenge that the document fetters the discretion of the DLC. 

15.  It notes that the provisions of the legislation prevail over it, in the event of any conflict.  It further notes that no proceedings will be invalided by reason of the COP not being followed.

16.  Ultimately the DLC should determine its own procedure – making the endorsement of the DLC Chair and members essential.

Financial Considerations

17.  There are no financial considerations.

Appendices

No.

Title

Page

1

Appendix 1 Code of Practice DLC 2019-2022

215

    

 

 

 

 

Author: Kathryn Stannard

Head of Democratic Services

 

 

 

 

Reviewed By: Bradley Cato

Chief Legal Officer/General Counsel

 

 

Approved By: Brent Kibblewhite

General Manager Corporate Services

 


Attachment 1

Appendix 1 Code of Practice DLC 2019-2022

 

code of practice
HUTT CITY district licencing committee - 2019-2022

 

 

1.    Scope

1.1     This is a code of practice for the District Licensing Committee of Hutt City Council (the DLC).  This code is not a set of inflexible rules, but is a guide to the practice of the DLC and will be followed unless there is good reason to do otherwise.[3]  Legislative references are to the Sale and Supply of Alcohol Act 2012.

a)      The DLC should have reference to the following sources (in addition to this code of practice):
Sale and of Alcohol Act 2012.

b)      Commissions of Inquiry Act 1908.

c)      Local Government Official Information and Meetings Act 1987, other than Part 7.

d)      Any practice directions from the Alcohol Regulatory and Licensing Authority.

1.2     However, the DLC is primarily bound by the Sale and Supply of Alcohol Act 2012 and the provisions of that Act should prevail where there is any qualifier in the Act or conflict with other instruments. 

2.    Powers and Functions

2.1     While a committee of Council,[4] the DLC operates as a Commission of Inquiry will be performing a quasi-judicial function.[5] 

2.2     The functions of the DLC are to consider and determine applications for licenses and manager’s certificates, renewals of those, variations of licenses and special licenses, amongst other things.[6]

2.3     The DLC and has all the powers conferred under the Act and necessary to perform its functions.[7]  These include broad powers to:

a)      Issue witness summons.

b)      Require the production of documents.

c)      Require any other act preliminary or incidental to the hearing.

d)      Maintain order at its inquiry.

e)      Allow evidence in chief and cross examination.

f)       Accept any evidence, whether or not that evidence would be admissible in a court (but subject to the provisions of the Evidence Act 2006).[8]

g)      The power to rehear any matter it has decided.[9]

2.4     Subject to the provisions of the Act, the Committee may regulate its procedure as it thinks fit.[10]

3.    Pre-Hearing Matters

3.1     Witness summonses

3.1.1    The DLC should ensure that all parties to the process are aware of the need to advise the DLC of any witnesses that need to be summonsed, in advance.  The Act requires that parties are given at least 10 working days’ notice of a hearing,[11] but this should be extended by a reasonable period where witnesses need to be summonsed.  

3.1.2    To avoid unreasonableness through the belated summonsing of witnesses, and to allow reasonable opportunity for statements of evidence to be prepared (if required), the DLC expects witness summonses to be served no later than 10 working days before the date of hearing. Except when a witness is agreeable to attend the hearing in circumstances where the issue of a summons is effectively a matter of form, the DLC will not normally issue a witness summons less than 10 working days before the hearing.

3.2     Evidence

3.2.1    The DLC will ordinarily require statements of evidence to be prepared, and an exchange of evidence, prior to the date of the hearing.

3.2.2    If the DLC does not consider it necessary to require statements of evidence, it will direct the parties accordingly.

3.2.3    The DLC may or may not require copies of a lay witness's statement of evidence (including photographs and other visual presentations other than models) to be provided to all other parties, prior to the hearing of the proceedings.

3.2.4    The DLC will ordinarily give directions about the time when statements of evidence are to be delivered to the other parties. Parties should be advised that, in every case where no special direction has been given as to the timing of any required exchange, statements of evidence are to be delivered not less than 12 working days before the hearing date. If copies of a statement of evidence are not delivered in time, leave will need to be sought to call the witness, and the failure to comply will need to be explained. Leave to call the witness may be refused, or the party in default may be ordered to pay the costs of adjournment incurred by other parties and by the DLC.

3.3     Exhibits

3.3.1    All exhibits, including photographs and other visual presentations, should be required to be presented in a practical and manageable form.

3.4     Citation of Court decisions

3.4.1    Where the citation of authorities is necessary, parties should be advised that a considered and discerning approach needs to be adopted, with particular emphasis on:

a)      Citation of the most recent or authoritative statement on a point rather that a plethora of cases (remembering however that some points are not amenable to simple or straightforward answers).

b)      Identification of relevant passages by paragraph and/or page number.

c)      Identification of official report citations where such exist.

d)      Succinctness and avoidance of needless repetition.

4.    Procedure at Hearings

4.1     Hearings will be held in public and open to any member of the public, in accordance with the provisions of section 203 of the Act, unless the DLC exercises its discretion in section 203(3) of the Act to hold part of the hearing in private.[12]

4.2     The DLC will introduce its members and may briefly address the following matters:

3.4.2    An introduction of the applicant and other parties present.

3.4.3    Advise that the DLC members may ask questions at any time.

3.4.4    Remind the parties of the matters to be dealt with at the hearing, by reference to the Act.

3.4.5    Remind the expert witnesses that they are acting as experts, assisting the DLC,

3.4.6    Outline any procedural requirements it may have for the hearing.

4.3     Order of parties

4.3.1    The DLC will normally call first upon the applicant to state his or her case, and then to call the evidence in support of it - followed, in turn, by the cases of those who support the grant. 

4.3.2    Then the DLC will call upon those parties who oppose the grant to present their cases.

4.3.3    Then the DLC will call upon any Reporting Authorities to present their submissions and evidence.

4.3.4    Then the DLC will call upon Licensing Inspector to present their submissions and evidence. 

4.3.5    The applicant will then be allowed a right of reply, to address any matters which have been raised.  No cross examination will be allowed following the right of reply.

4.4     Cross examination of witnesses will be allowed in all cases, except following the applicant’s right of reply.

4.5     Witnesses will not generally be subject to a time restriction, unless evidence is being unnecessarily repeated.

4.6     The DLC has power to regulate its procedure in such manner as it sees fit. It may therefore modify its procedure in particular cases if the interests of justice, and the orderly and logical presentation of evidence, so require.

5.    After the Hearing

5.1     Communication with the DLC

5.1.1    Any communication on any matter relating to the merits of the case or its outcome, outside of the hearing, must be by way of a memorandum lodged with the Secretary of the DLC and served on other parties, so that other parties may have the opportunity to respond. It is generally inappropriate to seek to communicate with the DLC after a hearing has concluded and prior to the issue of the DLC’s decision.

5.2     The Decision of the DLC

5.2.1 The DLC will give a decision in accordance with the requirements of s211 of the Act.[13]

5.2.2 The DLC will issue its decision as soon as reasonably practicable, but will endeavour to ensure that this is no later than 20 working days from the date of the closing of the hearing.

 


                                                                                     223                                                       24 March 2020

Hutt City Council

10 March 2020

 

 

 

File: (19/1375)

 

 

 

 

Report no: HCC2020/2/79

 

Appointment of Directors/Trustee to Hutt City Community Facilities Trust, Seaview Marina Limited and Urban Plus Limited

 

Purpose of Report

1.    The purpose of this report is for Council to consider:

a.    approval of the term of office and remuneration of the councillor trustee/directors of Hutt City Community Facilities Trust (CFT), Seaview Marina Limited (SML) and Urban Plus Limited (UPL);

b.    approval of the re-appointment of directors of SML and UPL; and

c.     approval to appoint an independent director to the board of UPL.

Recommendations

That Council:

(i)      notes that Councillor Shaw was appointed as a councillor trustee of Hutt City Community Facilities Trust (CFT) at its meeting held on
10 December 2019;

(ii)     approves the term of office for three years from 10 December 2019 to
9 December 2022 (inclusive) at a remuneration level of $2,000 per annum for Councillor Shaw as a councillor trustee of CFT;

(iii)    notes that Councillor Milne was reappointed as a councillor director of Seaview Marina Limited (SML) at its meeting held on 10 December 2019;

(iv)    approves the term of office from 1 February 2020 to 9 December 2022 (inclusive) at a remuneration level of $7,000 per annum for Councillor Milne as a councillor director of SML;

(v)     notes that Councillor Brown was appointed as a councillor director of (UPL) at its meeting held on 10 December 2019 and that Councillor Brown took up this role following the end of the term of office of Councillor Bassett on 31 January 2020;

(vi)    approves the term of office from 1 February 2020 until 9 December 2022 (inclusive) and a remuneration level of $7,000 per annum for Councillor Brown as a councillor director on UPL;

(vii)   reappoints Mr Brian Walshe to the board of SML and UPL for one year from 1 April 2020 until 31 March 2021 (inclusive);

(viii)  reappoints Mr Peter Steel to the board of SML for one year from 3 April 2020 until  31 March 2021 (inclusive);

(ix)    reappoints Mr Hugh MacKenzie to the board of UPL from 3 April 2020 until 31 October 2020;

(x)     notes the reason for departing from the requirement to advertise and hold a selection panel to appoint directors is to allow Council to undertake a review of Council Controlled Organisations; and

(xi)    agrees to commence a search for a new independent director of UPL as outlined in section 3 of the Appointment and Remuneration of Directors Policy attached as Appendix 1 to the report.

 

Background

2.    Council at its meeting held on 10 December 2019 approved the appointment of councillors to Council’s Council Controlled Organisations (CCOs).  Council did not consider the term of office or remuneration of councillors.

Hutt City Community Facilities Trust

3.    Council established the CFT as a CCO on 13 March 2012.

4.    There are currently five trustees on the CFT Trust Board. Jessica Andrew, Phil Gibbons and Matt Claridge were appointed on 1 July 2017 for a term of three years.

5.    John Strahl was appointed on 1 February 2019 and became chair on 25 March 2019.  His term expires on 31 January 2022.  Councillor Shaw was appointed as Council’s trustee to the CFT on 10 December 2019.

6.    The CFT’s Trust Deed provides that “…at any time, there must not be more than one Councillor holding office as trustee” (clause 9.1.1)

Seaview Marina Limited

7.    SML is a CCO established to run the marina located in Seaview. 

8.    The Board of Directors currently comprises two independent directors,
Brian Walshe and Peter Steel and one councillor director, Councillor Milne.

9.    Brian Walshe’s and Peter Steel’s terms expire on 31 March 2020.

10.  Officers recommend that Brian Walshe and Peter Steel’s terms be extended for a period of one year for the purpose of business continuity while a review of Council CCOs is undertaken.

 

Urban Plus Limited

11.  Urban Plus Limited is a CCO whose role includes developing property for sale and reinvestment into social housing and provides social housing to groups that meet the criteria set out in its Statement of Intent.

12.  The Board currently comprises of three directors including two independent directors, Brian Walshe and Hugh MacKenzie and one councillor director, Councillor Brown.

13.  Brian Walshe’s and Hugh MacKenzie’s terms expire on 31 March 2020.

14.  Officers recommend that Brian Walshe’s term be extended for a period of one year and Hugh MacKenzie’s term be extended for a period of six months for the purpose of business continuity while a review of Council CCOs is undertaken.

Discussion

15.  The requirement for business continuity needs to be balanced against the need for fresh input and greater diversity on the boards.   

16.  At this stage, officers recommend that Council conduct a search for a new independent director of UPL only.  The process for appointing directors is outlined in section 2 of the Appointment and Remuneration of Directors Policy attached as Appendix 1 to the report.

Legal Considerations for Director Appointments

17.  A Councillor is able to participate and vote in respect of his or her own appoin