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
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Mayor
C Barry (Chair)
Deputy
Mayor T Lewis
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Cr D Bassett
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Cr J Briggs
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Cr K Brown
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Cr B Dyer
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Cr S Edwards
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Cr D Hislop
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Cr C Milne
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Cr A Mitchell
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Cr S Rasheed
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Cr N Shaw
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Cr L Sutton
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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
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COUNCIL
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Membership:
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13
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Meeting
Cycle:
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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)
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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.
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
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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!
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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!
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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:
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“That the recommendations contained
in the minute be endorsed.”
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Item ii) Waione
Street - Proposed P120 and P30 Parking Restrictions
(19/1062) 19
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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Item iii) Dowse
Drive - Proposed No Stopping At All Times Parking Restrictions (19/1093) 20
Mayor’s Recommendation:
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“That the recommendations contained
in the minute be endorsed.”
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Item v) Page
Grove - Proposed No Stopping At All Times Restrictions (19/1261) 22
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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Item vi) Hutt
Road - Proposed P120 Parking Restrictions (19/1263) 23
Mayor’s Recommendation:
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“That the recommendations contained
in the minute be endorsed.”
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Item vii) Miromiro
Road - Proposed Flush Median and No Stopping At All Times Restrictions (19/1283) 23
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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Item vii) Sydney
Street - Proposed No Stopping At All Times Restrictions (19/1284) 24
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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Item ix) Cheviot
Road - Proposed No Stopping At All Times Restrictions (19/1270) 24
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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Item x) Martin
Grove Extension – Proposed No Stopping at All Times Restrictions (19/1366) 25
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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Item xi) Cressy
Street - Proposed P15 Parking Restrictions (20/34) 26
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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Item xii) Martha
Turnell Crescent - No Stopping At All Times Restrictions (20/89) 26
Mayor’s Recommendation:
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“That the recommendation contained
in the minute be endorsed.”
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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:
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“That the recommendations contained
in the minute be endorsed.”
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Item ii) Seaview
Marina Limited Draft Statement of Intent 2020/21 to 2022/23 (20/11) 66
Mayor’s Recommendation:
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“That the recommendations contained
in the minute be endorsed.”
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Item iii) Urban
Plus Group Draft Statement of Intent 2020/21 to 2022/23 (20/12) 67
Mayor’s Recommendation:
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“That the recommendations contained
in the minute be endorsed.”
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Item iv) Council
performance report for the half year ended 31 December 2019 (20/60) 68
Mayor’s Recommendation:
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“That the recommendations contained
in the minute be endorsed.”
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c) Community and Environment
Committee
4 March 2020 142
Recommended Items
Item i) Indigenous
Biodiversity Fund (20/17) 143
Mayor’s Recommendation:
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“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.”
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Item ii) Wainuiomata
Marae Development (20/5) 146
Mayor’s Recommendation:
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“That the recommendations contained
in the minute be endorsed.”
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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:
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“That the recommendation contained
in the report be endorsed.”
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b) 2020 Local Government New Zealand
Conference (19/280)
Memorandum dated 8 March 2019 by the Head
of Democratic Services 157
Mayor’s
Recommendation:
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“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.”
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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:
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“That the recommendations contained
in the report be endorsed.”
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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:
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“That the matter be discussed.”
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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:
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“That the recommendations contained
in the report be endorsed.”
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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:
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“That the recommendations contained
in the report be endorsed.”
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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:
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“That Council receives the decision
from the Independent Commissioner for 48 – 50 Mills Street.”
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5 November 2019 –
130 Coast Road, Wainuiomata RM190050
309
Mayor’s
Recommendation:
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“That Council receives the decision
from the Independent Commissioner for 130 Coast Road, Wainuiomata.”
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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.”
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11. CLOSING
FORMALITIES - Karakia
WHAKAMUTUNGA
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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.
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Donna Male
COMMITTEE ADVISOR
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
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PRESENT:
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Cr L Sutton
(Chair)
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Cr J Briggs
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Cr B Dyer (Deputy Chair)
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Cr A Mitchell
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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.”
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Suspension
of Standing Orders
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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.”
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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.
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Motion
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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.”
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3. CONFLICT
OF INTEREST DECLARATIONS
There were no conflict of interest declarations.
4. Recommendations to Council - 24 March
2020
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i)
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Bus Stop
Modifications and Associated No Stopping at All Times Restrictions - Multiple
Locations (20/101)
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|
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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.
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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
|
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
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:
- Completing the
bedding in of the recently constructed Ricoh Sports Centre at Fraser Park.
The new building is a complex structure and the CFT will work with the
tenant, Fraser Park Sportsville (FPS), to best optimise the use and to
capture the benefits of the technologies and infrastructure imbedded in
the complex.
- Working with
FPS and the community to maximise the use of the new facility.
- Putting in
place maintenance plans and regimes for the Ricoh Sports Centre that will
ensure the new centre is maintained to a high and safe standard.
- Working with
the Naenae Bowls Club and the community to maximise the use of the
facility and to improve its ability to fully fund all operational costs,
including insurance, rates and long-term maintenance.
- Putting in
place maintenance plans and regimes for the Naenae Bowls Centre that will
ensure the centre is maintained to a high standard.
- Continue to
manage, in partnership with the tenant (FPS), the artificial turfs at
Fraser Park
- Continue to
manage in partnership with the tenant (Council), the Walter Nash Centre at
Taita.
- Prepare and
implement in partnership with the tenant (Council), maintenance plans for
the Koraunui Stokes Valley Community Hub.
- In partnership
with the tenant (Council), make modest improvements to the old Walter Nash
Centre to bring that building up to modern standards
- The
development of any other community or sporting buildings which the Council
has funding for and requests the CFT to project manage.
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
|
-
|
-
|
-
|
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
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
|
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
|
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
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No.
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Title
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Page
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1⇩
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Appendix 1 Code of Practice DLC 2019-2022
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215
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Author: Kathryn Stannard
Head of Democratic Services
Reviewed By: Bradley Cato
Chief Legal Officer/General Counsel
Approved By: Brent Kibblewhite
General Manager Corporate Services
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Attachment 1
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Appendix 1 Code of Practice DLC 2019-2022
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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.
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.
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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.
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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
