2                                                  24 May 2021

HUTT CITY COUNCIL

Komiti Iti Mahere ā-Ngahurutanga / Mahere ā-Tau  
Long Term Plan/Annual Plan Subcommittee

 

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

 Monday 24 May 2021 commencing at 9.30am

 

PRESENT:

Mayor C Barry (Chair)

Deputy Mayor T Lewis (Deputy Chair)

 

Cr J Briggs

Cr K Brown

 

Cr B Dyer

Cr S Edwards

 

Cr D Hislop

Cr C Milne (until 12.38pm)

 

Cr A Mitchell

Cr S Rasheed

 

Cr N Shaw

Cr L Sutton

 

APOLOGIES:                  An apology was received from Cr Bassett and an apology for early departure was received from Cr Milne

 

IN ATTENDANCE:       Ms J Miller, Chief Executive

Ms A Blackshaw, Director Neighbourhoods and Communities

Mr M Boggs, Director Strategy and Engagement

Mr K Puketapu-Dentice, Director Economy and Development (part meeting)

Ms J Livschitz, Group Chief Financial Officer

Mr D Newth, Financial Accounting Manager (part meeting)

Mr B Hodgins, Strategic Advisor (part meeting)

Mr D Koenders, Manager Financial Strategy and Planning (part meeting)

Mr D Scott-Jones, Solicitor (part meeting)

Mr A Yip, Head of Enterprise Portfolio Management Office (part meeting)

Ms C Ellis, Head of Chief Executive’s Office (part meeting)

Ms C Taylor, Principal Advisor Research and Evaluation (part meeting)

Mr K Eagle, Senior Management Accountant (part meeting)

Ms D Barber, Head of Communications and Engagement (part meeting)

Mr S George, Senior Accountant (part meeting)

Ms W Moore, Head of Strategy and Planning (part meeting)

Mr T Biggin, Project Manager RiverLink (part meeting)

Mr B Cato, Chief Legal Officer (part meeting)

Ms J Lawson, Asset Manager Reserves (part meeting)

Ms A Andrews, Business Analyst – Rates and Finance (part meeting)

Ms H Stringer, Financial Transaction Services Manager (part meeting)

Mr M Sherwood, Head of Parks and Recreation (part meeting)

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

Ms K Glanville, Senior Democracy Advisor

Ms H Clegg, Minute Taker

                                               

PUBLIC BUSINESS

 

1.       OPENING FORMALITIES - Karakia Timatanga 

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

 

2.         APOLOGIES

 

Resolved:   (Mayor Barry/Deputy Mayor Lewis)      Minute No. LTPAP 21201

“That the apology received from Cr Bassett be accepted and leave of absence be granted and the apology from Cr Milne for early departure be accepted.”

3.       PUBLIC COMMENT

Comments are recorded under the item to which they relate.      

4.       CONFLICT OF INTEREST DECLARATIONS     

          Mayor Barry declared a conflict of interest relating to his declarations on the conflict of interest register.

Cr Briggs declared a conflict of interest relating to his declarations on the conflict of interest register.

Cr Brown declared a conflict of interest relating to E Tu Union and as Council’s representative on the Board of Urban Plus Limited. 

Cr Hislop declared a conflict of interest as Council’s representative on the Board of Seaview Marina Limited. 

Cr Shaw declared a conflict of interest as Council’s representative on the Board of the Hutt City Community Facilities Trust.


 

5.       Recommendations to Council | Te Kaunihera o Te Awa Kairangi - 24 May 2021

a)

Long Term Plan 2021-2031 - progressing decisions for Hutt City Community Facilities Trust (21/654)

 

Mr Phil Fisher from PricewaterHouseCoopers and Mr John Strahl, Chair of the Hutt City Community Facilities Trust (CFT) were in attendance for the item.

Cr Shaw declared a conflict of interest in the matter and took no part in discussions or voting on this item.

The Director of Neighbourhoods and Communities elaborated on the report.  Mr Fisher explained officers were working to ensure there were no unintended taxation consequences arising from the transfer of assets from CFT to Council.  He said initial advice from the Inland Revenue Department (IRD) was there would be no taxation concerns.  He added officers were awaiting a formal, binding ruling and he was hopeful this would be received prior to 30 June 2021.  He stated the risk of any taxation payment was low.

Mr Strahl confirmed the Board of CFT shared the view that there was a low risk of any taxation implications. 

In response to a question from a member, Mr Fisher advised a possible taxation figure could be 33% of the value of the CFT assets.

Mr Strahl provided an overview on behalf of the CFT Board.  He advised that while the Board was unhappy with the decision to wind up the CFT they understood the financial reasons behind the decision.  He added that Council would now be responsible for the external tenant relationships and partnerships that CFT had developed and for ensuring the ongoing maintenance of all the developed facilities. 

In response to questions from members, Mr Strahl acknowledged the difficulty local authorities had in attracting funding and sponsorship monies. He explained the CFT facilities had a maintenance fund requirement and there should be no ongoing financial commitment for maintenance required from Council.  He added that a replacement green at the Naenae Bowls Centre would require funding and that charitable grants could be applied for, along with corporate sponsors.

The Director Neighbourhoods and Communities advised there were no new build programmes proposed in Council’s Long Term Plan. 

 

 

Cr Sutton expressed concern that numerous sporting clubs in the city had to manage without financial support from Council.

Cr Hislop thanked the CFT team for their passion, time and expertise.  She expressed concern that Council might not be able to raise charitable funding to ensure the facilities were maintained to a suitable level.

Cr Milne expressed concern about winding up CFT.  He asked that Council not make a final decision especially given the absence of the IRD binding ruling.  He queried whether the $30,000, that was held in the CFT reserve, would be absorbed into a general fund.  He suggested a report on assessing funding equity across all sporting codes in the city be prepared prior to Council making a decision on the CFT.

Cr Dyer suggested that officers actively pursued potential new corporate sponsors. 

Cr Briggs considered the facilities might be able to apply to funding sources unavailable to Council.  He expressed support for the officer’s recommendations.

Mayor Barry thanked the CFT members, past and present.  He advised that any funding for a facility was ring-fenced for that facility and would not be absorbed into a general fund.  He added that a larger investigation into funding of sporting codes in the city would occur in the near future.

 

ReCOMMENDED:  (Mayor Barry/Deputy Mayor Lewis)
                                                                                     Minute No. LTPAP 21202

“The Subcommittee recommends that Council:

(1)     notes the public consultation undertaken for the draft Long Term Plan 2021-2031  in regard to the future of the Hutt City Community Facilities Trust (CFT);

(2)     agrees in principle to proceed with the wind-up of CFT and the distribution of assets to Council on 30 June 2021;

(3)     directs officers to progress planning and preparation for the wind up of the CFT and the distribution of assets to Council; and

(4)     considers any further guidance and direction to be provided to officers and CFT ahead of finalising decisions in regard to the CFT.”

Cr Milne requested that his dissenting vote be recorded against the above matter.

 


 

Precedence OF BUSINESS

In accordance with Standing Order 10.4, the Chair accorded precedence to Item 5e) Three Waters Investment Advice.

The item is recorded in the order in which it is listed in the Order Paper.

b)

Council performance overview for the third quarter ended 31 March 2021 (21/436)

 

The Group Chief Financial Officer elaborated on the report.  She advised that indicators were showing Lower Hutt had almost economically recovered from the COVID-19 situation.

Cr Milne left the meeting at 10.40am and rejoined the meeting at 10.44am.

In response to a question from a member, the Group Chief Finacial Officer advised a briefing on the Key Performance Indictors (KPIs) would be held in June 2021.  She said a report would be presented to the Subcommittee at its next meeting.  She highlighted that the report would include the cycling and micromobility item.  She added that the KPIs had been reviewed by an external consultant.

Cr Sutton left the meeting at 10.47am and rejoined the meeting at 10.49am.

In response to further questions from members, the Group Chief Financial Officer advised that from 2022 onwards all targeted rates were included in the figures provided.  She noted that the starting point for the Long Term Plan was a deficit and that all options presented would result in a balanced budget being achieved by 2028/2029.

 

Resolved:   (Mayor Barry/Cr Mitchell)                 Minute No. LTPAP 21203

“That the Subcommittee notes and receives the report.”

 

c)

2021-2031 draft Long Term Plan - Submissions Analysis Summary (21/765)

 

The Director Strategy and Engagement elaborated on the report.

The Head of Strategy and Planning noted the quality and quantity of engagement undertaken  and that the methodology and data analysis processes had been peer reviewed.

In response to a question from a member, the Director Neighbourhoods and Communities advised a work programme concerning affordability of and a funding framework for all sporting codes had commenced.  She said the aim of the work was to ensure strategic and equitable decisions regarding Council funding for sports in the city. 

The Chief Executive advised the outcomes of that work programme would be included in the next Long Term Plan (LTP).  Mayor Barry advised that all current funding decisions were based on the current LTP budget and priorities.

In response to questions from a member, the Principal Advisor Research and Evaluation advised the public feedback indicated support for the retention of the Petone Wharf was from people with local knowledge.  She acknowledged the amount of misinformation that had spread via social media.   She said officers were still analysing the public’s responses to the proposed rates increase questions.  She confirmed there was only a small number of respondents who disagreed with the proposed rates increase.

 

Resolved:   (Mayor Barry/Cr Hislop)                   Minute No. LTPAP 21204

“That the Subcommittee:

(1)     notes the details of the engagement and consultation activity prior to and during the 2021-31 draft Long Term Plan engagement period
6 April to 6 May 2021;

(2)     notes that summarised feedback relevant to the specific consultation questions will be reported in other reports dealing with these issues; and

(3)     notes the summary analysis of all the feedback received and related Appendices attached to the report.”

 

d)

Long Term Plan 2021-2031, progressing decisions related to Urban Plus Limited (21/653)

 

Cr Brown declared a conflict of interest and took no part in discussions or voting on the item.

Cr Rasheed left the meeting at 11.03am.

The Director of Economy and Development elaborated on the report.

Cr Rasheed rejoined the meeting at 11.05am.

Cr Briggs asked for the wording in the Statement of Intent (SOI) be altered to read that all future buildings would be constructed to a Home Star 6 rating.  He said that as there were no plans for buildings in the foreseeable future, the KPIs should be for three years.  He also asked that the wording specify that rents would be charged at no higher than 80% of market value.

Cr Mitchell asked that the timeline for converting to electricity be sped up.  He further asked that all future developments be energy efficient and reduce carbon emissions.  He said when accommodation units were sold off the plans, that solar energy could be proactively offered.

Deputy Mayor Lewis noted that submissions had called for Urban Plus Limited (UPL) to be a champion for quality urban design and consideration of the health of occupants.

Cr Dyer asked that the logistics of the option of car sharing be investigated for future developments.

Mayor Barry thanked officers for the work to date.  He noted that UPL was undergoing a successful shift in direction.

Cr Mitchell noted that UPL was in a good position to model best practice in environmental initiatives.

 

ReCOMMENDED:    (Mayor Barry/Cr Briggs)        Minute No. LTPAP 21205

“That the Subcommittee recommends that Council:

(1)   notes that the increased borrowing requirements will enable Urban Plus Limited to progress the new strategic priorities and direction set by Council;

(2)   notes that the final Statement of Intent for Urban Plus Limited, subject to the amendments outlined at the meeting, will be reported to Council on 9 June 2021 for review and approval;

(3)   notes that Urban Plus Limited and Council officers will work together to ensure that the priorities stated within Urban Plus Limited’s Statement of Intent are achieved; and

(4)   directs Urban Plus Limited to prepare a final Statement of Intent for Urban Plus Limited which includes the revised borrowing limit of $43M.”

e)

Three Waters Investment Advice (21/706)

 

Mr Colin Crampton, Chief Executive and Mr Martyn Cole, Manager Service Planning from Wellington Water Limited (WWL) were in attendance for the item.

The Strategic Advisor elaborated on the report. 

In response to questions from members, the Strategic Advisor advised the existing consent for the Seaview Wastewater Plant was still current and an application for a new consent had been lodged with Greater Wellington Regional Council (GWRC).  He added GWRC had requested further information which officers were currently assimilating. He said that as part of the resource consent process discussions with the community, GWRC and iwi had occurred.  The Group Chief Financial Officer confirmed that the project could remain in the Development Contributions calculations.

In response to questions from members, the Strategic Advisor agreed additional public education regarding cross contamination of pipes might result in the project not being required so soon.  He added that the greatest risk came from raw sewage rather than treated sewage.  He confirmed the Barber Grove project would continue even if funding from Upper Hutt City Council was not approved.

In response to a question from a member regarding the effects of the increased  Three Waters investment from Council, Mr Crampton advised the following: the asset renewals programme would be accelerated; good advice would be provided regarding growth; infrastructure would be provided without adverse effects on the environment; and a better understanding of leaks and contaminations would occur.  He added that the leakages in the network were an ongoing issue and that the situation could be comparatively the same in five years time.  He further added that the de-carbonising programme of WWL was ongoing and progress would be made over the next five years. 

In response to questions from members, the Strategic Advisor advised the draft WWL Statement of Intent would be considered at the next Wellington Water Committee meeting and then would be reported through the relevant Council committee.  He explained that a regional approach to water metering was required. He clarified the Randwick Road Petone Collector Sewer project was expected to take between 12 and 18 months.

Mayor Barry noted that additional regular reporting would be considered by the relevant Council committee.  

 

 

ReCOMMENDED:    (Mayor Barry/Cr Brown)        Minute No. LTPAP 21206

“That the Subcommittee recommends that Council:

(1)   notes the advice from Wellington Water Limited and in particular the increase in the estimated cost for both the Seaview Wastewater Outfall Overflow and Storage Tank Project (+$10 to $14M) and the Barber Grove to Seaview Trunk Main Duplication Projects (+$6.9M);

(2)   agrees to include an additional $6.9M in capital expenditure, partly offset by revenue of $2.1M from Upper Hutt City Council for its share, in the 2021-2031 Long Term Plan for the Barber Grove to Seaview Trunk Main Duplication Project due to the project’s criticality;

(3)   agrees to accommodate this increase by pushing out the proposed capital expenditure programme over the next 10 years, noting that historically the capital works programme has not been able to be fully delivered each year;

(4)   agrees to not include any additional funding in the 2021-2031 Long Term Plan for the Seaview Wastewater Outfall Overflow and Storage Tank Project and asks officers to undertake further iwi and community consultation to consider the relative merits of this project against other projects, which may need to be deferred as a result of this substantial increase;

(5)   notes the current timing in the Long Term Plan of other key projects; and

(6)   notes the remaining risks that have been identified despite the significant increase in investment proposed within the next 10 years on three waters infrastructure.”

 

f)

RiverLink Project Budget (21/762)

 

The Project Manager - RiverLink elaborated on the report.

In response to questions from members, the Project Manager - RiverLink advised that additional carparking budget had been approved and included lighting and landscaping.  He clarified that the budget for the pedestrian and cycle bridge allowed for a high quality design to be constructed.  He confirmed the new Melling Bridge would have pedestrian and cycle lanes and would be funded by Waka Kotahi.  With regard to connections with the Western Hills, he confirmed that immediate links had been deemed too costly and that designers were assessing alternative links.  He also confirmed that temporary carparking areas were being investigated.

In response to questions from a member, the Project Manager - RiverLink advised that streetscape improvements and the Riverbank Park accounted for a large portion of the Promenade Improvements budget.  He added this included hard and soft landscaping treatments and introduced shared spaces for five streets.  He further advised that the North Daly Street properties had been secured.

The Group Chief Financial Officer said a number of residential units could be constructed on those properties which would have a positive effect on the ratings balance.  She added that a 1.1% increase in ratings revenue had been calculated into future rates figures. 

In response to a question from a member, the Group Chief Financial Officer added that a report would be considered by the Major Projects Board and the Audit and Risk Subcommittee.

In response to questions from members regarding the budget for the project, the Director Economy and Development advised all costings had been undertaken by independent WTP Quantity Surveyors, who had taken a conservative approach.  He said with more detailed design and geotechnical data had been received the budgets were becoming more realistic.   

Cr Rasheed asked that officers ensure disruptions to the CBD be kept to a minimum.

 

 

ReCOMMENDED: (Mayor Barry/Cr Hislop)             Minute No. LTPAP 21207

“That the Subcommittee recommends that Council:

(1)     notes the updated project scope has been costed by an independent quantity surveyor and become available since the draft LTP 2021-2031 was prepared;

(2)     approves the revised RiverLink capital budget of $138.4M;

(3)     approves the revised Riverlink revenue budget of $43.5M;

(4)     notes the net $94.9M cost of the RiverLink Project; and

(5)     notes that the net $94.9M cost of the RiverLink Project as consulted on in the draft Long Term Plan 2021-2031 has not changed, although the phasing and nature of works funded has been updated.”

For the reason that the proposed budgets will achieve the objectives for the project.

The meeting adjourned at 11.45am and resumed at 11.58am.

g)

Development and Financial Contributions Policy 2021-2024 (21/677)

 

Mr Dwayne Fletcher, Contractor was in attendance for the item.

The Head of Strategy and Planning elaborated on the report.

In response to questions from members, Mr Fletcher explained that the Development and Financial Contributions Policy 2021-2024 (the Policy) was a high level policy based on Council’s infrastructure programme.  He said the Policy had received support from the consultation undertaken.  He added that if approved, the Policy would take effect from 1 July 2021 and complete applications received prior to that date would be assessed under the previous policy. 

In response to questions from members, Mr Fletcher advised the Policy contained a clause whereby developments which did not fit with the average assumptions made could be assessed individually.  He confirmed that several Councils did offer a discount for stormwater retention measures provided in developments.  He said to include this in the Policy would undermine Wellington Water Ltd’s work regarding the effects of stormwater on its networks.

Cr Briggs expressed support for the Policy.  He believed the Policy would lessen the infrastructure burden on existing residents.

 

 

Cr Rasheed expressed concern that additional costs placed on new houses would further push first home buyers out of the market.

Cr Dyer expressed support for the Policy.  He said that not all new builds were for first home buyers.

Cr Brown expressed support for the Policy.  She believed that growth should pay for growth.  She acknowledged the impact the Policy would have on Wainuiomata developments by adding 25% to resource consent costs.

Cr Milne believed the Policy would load development costs upfront and that the market would set the price.  He considered the Policy could make it more difficult for developers to build.

Mayor Barry expressed support for the Policy.  He said it would provide for investment where it was required.  He added that without the Policy, development of the city would halt due to infrastructural limitations.

 

ReCOMMENDED:    (Mayor Barry/Cr Edwards)     Minute No. LTPAP 21208

“That the Subcommittee recommends that Council:

(1)   agrees to retain a policy of meeting 100% of Council’s planned growth costs from development and financial contributions (option 1);

(2)   agrees that the following changes are made to the Development and Financial Contributions Policy (the Policy):

(a)   that an assessment rate of 0.3 EHUs per retirement village unit or aged care bed is included in the policy for transport, and 0.5 EHUs per retirement village unit or aged care bed for water, wastewater and stormwater; and

(b)   that the Policy be amended to allow Council to agree to different payment timing arrangement for large scale multi-stage land use consent development, when requested;

(3)   notes that the development contributions charges in the Policy may need to be changed if Council makes any material changes to the Long Term Plan growth infrastructure programme;

(4)   notes that officers will seek approval of any changes to charges needed at the Long Term Plan/Annual Plan Subcommittee meeting on 9 June 2021; and  

(5)   approves the Development and Financial Contributions Policy subject to the changes agreed to in recommendation (2) and (3) above.”

For the reason that as part of the 10 Year Plan, Council must make decisions on how it funds its activities – including growth related infrastructure and that development and financial contributions are one of the funding tools available to Council.

 

h)

Progressing decisions for the final Long Term Plan 2021–2031, Rating Policy (21/609)

 

Speaking under public comment, Mr Neil Bryce asked that a decision on the proposed rural differential rating be postponed until an investigation was undertaken on the likely effects on all rural properties.  He highlighted that the residential and rural ratings system was inconsistent in many areas.

Speaking under public comment, Mr Neil Bryce representing his neighbours, explained the neighbours thought they were rural zoned but were actually on a residential rate.  He said they had been paying for water which was not supplied to their properties. 

In response to questions from members, Mr Bryce agreed to advise his neighbours to contact officers to discuss further. 

The Group Chief Financial Officer advised that detailed analysis had been conducted to ascertain the likely effects of the proposed differential on all rural properties.

The Manager Financial Strategy and Planning elaborated on the report.  He advised he had met with Mr Bryce and was working through the issues raised.  He acknowledged there may be confusion with some rural property owners.  He confirmed the proposed Rating Policy (the Policy) provided more clarity about the application of the rural differential rate.

In response to a questions from members, the Manager Financial Strategy and Planning advised no discussions had been held with Greater Wellington Regional Council concerning rural rates   The Group Chief Financial Officer said that a deferment of the Rating Policy until after the District Plan review was completed was not recommended as clarity for rates was required now.  She confirmed that the Rates Remission Policy could be applied for individual property circumstances if required. 

Mayor Barry advised it was up to individual land owners to apply for a reconsideration of their rates.

Cr Rasheed expressed support for all the recommendations except recommendation (4).  She believed it would add to the burden of businesses.  She asked that Council offer support to businesses rather than increase their costs.

The motion was taken in parts.   Parts (1) – (14) were DECLARED carried on the voices.

 

ReCOMMENDED:    (Mayor Barry/Cr Dyer)            Minute No. LTPAP 21209

“That the Subcommittee recommends that Council:

(1)     notes the Revenue and Financing Policy has been reviewed as part of the Long Term Plan 2021-31 process; 

(2)     notes the options developed and included in the draft Long Term Plan 2021-31 ahead of the public consultation process;

(3)     agrees to adopting a percentage allocation approach for sharing the total general rate as proposed in the draft Long Term Plan;

 

ReCOMMENDED:    (Mayor Barry/Cr Brown)         Minute No. LTPAP 21210

(4)     agrees to reduce the residential rating category share of general rates from 63% to 62% in 2021/22 and making further reductions of 1% per year for the following two years with the corresponding increase in commercial percentage as proposed in the draft Long Term Plan;

Cr Milne and Cr Rasheed requested that their dissenting votes be recorded against the above matter.

 

(5)     agrees to aligning the definition of Rural for rating purposes with the Rural area in the District Plan as proposed in the draft Long Term Plan;

(6)     agrees to combining the Commercial Queensgate and Commercial Central differential rating category as proposed in the draft Long Term Plan;

(7)     agrees to removing the Commercial Accommodation differential category by merging properties into either Commercial Central or Commercial Suburban differential rating categories depending on location as proposed in the draft Long Term Plan;

(8)     agrees to the Rates Remission Policy being updated to include a one year remission of 50% of the increase of the general rate for ratepayers changing from Rural to Residential rating category and from Commercial Accommodation to Commercial Central rating category as proposed in the draft Long Term Plan;

(9)     notes that officers will report back further on proposed changes to the Rates Postponement Policy following receipt and consideration of legal advice;

(10)   agrees to the targeted rates for rubbish and recycling being set for 2021/22 as consulted on except for a reduction in the 80L refuse targeted rate to $105 per annum, per Section I;

(11)   agrees to the targeted rates for water supply and wastewater being set as consulted on, per Section J;

(12)   notes the information on an Early Payments Policy in Section L of the report and that further consideration will be given to this in the next Long Term Plan 2024-2034;

(13)   instructs officers to  prepare the final Long Term Plan 2021-2031 for adoption based on the decisions above; and

(14)   notes that decisions on rates revenue increases to be included in the final Long Term Plan 2021-2031 are addressed in a separate report to the Long Term Plan/Annual Plan Subcommittee entitled “Progressing decisions for the final Long Term Plan 2021–2031, Financial Aspects.”

The meeting adjourned at 12.38pm.

          Cr Milne left the meeting at 12.38pm

          The meeting resumed at 1.25pm.

i)

Progressing decisions for the final Long Term Plan 2021-2031, Financial Aspects (21/630)

 

Members considered the information in Table 2 contained within the officer’s report.

Mana Whenua Partnership Agreements

In response to questions from a member, the Chief Executive advised that the proposed amount was modest after undertaking a review of existing agreements with mana whenua.  She said Māori Wards would be investigated in the next triennium. 

Facilities Seismic Strengthening

In response to a question from a member, the Chief Executive confirmed the library closures would be co-ordinated.

Maungaraki Primary School

Mayor Barry confirmed the matter related to Council-owned land and was a unique situation.  The Director Economy and Development confirmed the $226,000 funding agreement did not include the bike track. 

Wainuiomata Queen Street development

In response to questions from members, the Director Economy and Development advised a 24/7 public toilet was not part of the original design.  He said officers were currently assessing one and would be reported back to the relevant Committee.  He confirmed the design team had been given a scope for the entire project and not necessarily a budget.  Members noted that both stages of the Queen Street area project needed to be completed to provide certainty for residents and businesses and to reflect the growing suburb. 

Cross Valley Link investigation/design

In response to concerns raised by members that no details of the project were available, Mayor Barry advised that more information would become available once a business case had been finalised.  Members agreed that a briefing was required.

 

 

Cuba Street overbridge seismic strengthening project

In response to a question from a member, the Director Economy and Development advised the delay for the project was due to difficulties associated with working within the rail corridor and that KiwiRail required a considerable lead-in time prior to any construction works occurring.   Mayor Barry asked that officer’s prepare a report on the update of the project to be considered by the relevant Committee.  He also asked that KiwiRail advisors be in attendance at the meeting to answer questions.

Living Wage support initiatives

In response to questions from members, the Chief Executive agreed to provide members with the number of contracts which would be affected by the Living Wage support initiatives.  She added that all current contracts for roading, ground maintenance and rubbish and recycling included a living wage requirement and that all financial reporting would be fully transparent. 

Cr Rasheed expressed concern with the proposal.   She believed Council’s focus was to achieve the best contract price for ratepayers. 

Mayor Barry and Cr Briggs, Cr Brown and Cr Dyer believed Council was obligated to value the people who undertook work for the city many of whom were ratepayers.

 

ReCOMMENDED:    (Mayor Barry/Cr Briggs)        Minute No. LTPAP 21212

“That the Subcommittee recommends that Council:

(1)     maintains the Living Wage as the minimum rate for all directly employed staff and for workers on Council contracts that have already been lifted to the Living Wage;

(2)     continues with the programme of implementing the Living Wage as the minimum rate for people working on Council procured contracts for services;

(3)     applies to become an Accredited Living Wage Employer by December 2021; and

(4)     continues to support and promote the Living Wage throughout its Procurement Policy and with local employers in Lower Hutt.”

Cr Rasheed and Cr Sutton requested that their dissenting votes be recorded against the above matter.

 

Petone Wharf

In response to questions from members, the Director Neighbourhoods and Communities advised that consultation specified a monetary range of $15M to $20M.   She confirmed that a budget for demolition of the Point Howard Wharf had been allowed for. 

In response to further questions from members, the Head of Parks and Recreation advised Option 1 was the demolition of the end of Petone Wharf and refurbishment of the remainder of the wharf.  He said that as more detailed costs were finalised the risks and costs of the project were expected to reduce.  He added that actual refurbishment materials had yet to be determined. 

 

ReCOMMENDED:    (Mayor Barry/Cr Mitchell)      Minute No. LTPAP 21213

“That the Subcommittee recommends that Council:

(1)     proceeds with Option 1 for the Petone Wharf refurbishment and partial demolition; and

(2)     asks officers to provide additional information about opportunities for the     
possible future use of Petone Wharf.”

 

The Director Neighbourhoods and Communities advised that, following the hearing of oral submissions, officers had investigated the following three projects: Waiu Park Mohaka Meander track; Nuku Ora – funding request for a Spaces and Places (facilities) shared role; and Fraser Park Hockey Turf renewal and upgrade.  She tabled an analysis of the three projects (attached as pages 22 - 26 to the minutes).

Waiu Park Mohaka Meander track

In response to questions from members, the Director Neighbourhoods and Communities advised officers supported the request as it aligned with Council’s strategic direction. 

Members asked that officers oganise discussions with all parties interested in the Wainuiomata Trail Park.

Nuku Ora – funding request for a Spaces and Places (facilities) shared role

In response to questions from members, the Director Neighbourhoods and Communities advised officers supported the proposal as it aligned with Council’s strategic direction developed from the Living Well Strategy.  She also advised that it promoted collaborative planning between the regional Councils.  She agreed to report back tot the next Subcommittee meeting on whether other regional Councils had commited to the project.

Fraser Park Hockey Turf renewal and upgrade

In response to questions from members, the Director Neighbourhoods and Communities advised that the $600,000 already secured by the Hockey Association could upgrade the existing sand based turf.  She added that Council could provide assistance in the form of being a guarantor for a loan.

Members agreed the item should not be included in the Long Term Plan.  They asked officers to discuss the loan with the Hockey Association.

In response to questions from members regarding the proposed rates increase options, the Group Chief Financial Officer advised that an earlier, higher rates increase would provide for lower interest costs later. 

Mayor Barry advised that with the unknown details of the Three Waters reform, there could be long term savings to Councils depending on how infrastructure would be funded in the future.  He confirmed that Option 3 would introduce changes which had not been consulted on. 

Mayor Barry asked that members advise of any additional projects which required funding in the Long Term Plan.   He stressed that any additional projects would require monies to be diverted from already approved projects.

Cr Brown left the meeting at 3.26pm.

In regard to cycling and micro-mobility, the Group Chief Financial Officer confirmed the Long Term Plan contained $10M in funding for the next three years with an additional $5M for the Beltway Project. 

Members asked officers for the following information:

·           an update on the issues at Delaney Park;

·           a report on further information relating to the Naenae Pool to be considered by the relevant Committee;

Cr Brown rejoined the meeting at 3.34pm. 

·           information regarding the impact on the budget and debt limit if the full micro-mobility project was funded to be considered by the Subcommittee at its next meeting;

·           information regarding funding options for the Science, Technology, Engineering, Mathematics and Medicine programme to be considered by the Subcommittee at its next meeting; and

·           contact be made with Wainuiomata Sportsville with the view to moving forward. 

The Director Neighbourhoods and Communities advised officers would shortly commence a work programme to ascertain community assets in the city.

In response to queries from members, the Chief Executive confirmed that all submitters would receive a written or oral response to their submissions.

Mayor Barry noted that action for the skate park in Wainuiomata could be progressed by officers.  He said there was already $40,000 in the budget which could be utilised for the project. 

In response to questions from members regarding a proposed second roading access to Wainuiomata, the Chief Executive advised that such an access way was not included in the Regional Growth Framework which Council had agreed on.  She added that if members requested changes to the Regional Growth Framework, the changes would need to be discussed at the next Wellington Regional Growth Framework meeting.

The meeting adjourned at 3.00pm and resumed at 3.08pm.


 

 

 

ReCOMMENDED:  (Mayor Barry/Deputy Mayor Lewis)
                                                                                       
Minute No. LTPAP 21214

“That the Subcommittee recommends that Council:

(1)     notes that the feedback received from the public consultation process from 6 April 2021 to 6 May 2021;

(2)     notes the delivery risks of the capital investment programme and directs officers to review the policy settings of the Financial Delegation Policy and the Procurement Policy and report to the Policy, Finance and Strategy Committee in July 2021 with advice on changes that could be actioned to achieve improved capital delivery outcomes;

(3)     agrees the following budget changes for the Final Long Term Plan 2021-2031, as detailed in Table 2 contained within the report and Appendix 1 attached to the report:

a)    Mana Whenua Partnership Agreements, increased budget of $1M opex over 10 years;

b)    Silverstream landfill development bringing forward $1.2M capex from 2022/23 to 2021/22;

c)    Naenae Pool and Fitness Centre Project updated timing of budget of $68M to reflect the latest information for the project;

d)   development of city-wide roadmap regarding climate change bring forward $0.1M opex into 2021/22 with offsets over next three years;

e)    Huia Pool roof replacement defer $0.26M capex from 2020/21 to 2021/22;

f)     other pool projects defer $45k capex from 2020/21 to 2021/22;

g)   Huia Pool replace roof membrane defer $0.6M capex from 2020/21 to 2021/22;

h)   Hutt Valley Tennis (Mitchell Park) defer $0.5M opex from 2020/21 to 2021/22;

i)     Te Whiti Park building extension defer $0.6M capex from 2020/21 to 2021/22;

j)     Manor Park Cycle Trail defer $190k capex from 2020/21 to 2021/22;

k)    Parks, Reserves Valley Floor review implementation defer $395k capex from 2020/21 to 2021/22,

l)     biodiversity assistance for private landowners defer $226k opex from 2020/21 to 2023/24;

m) libraries interior and exterior renewal budget defer $236k capex from 2020/21 to 2021/22;

n)   libraries defer $1.5M capex for Petone Library budget from 2021/22 to 2022/23;

o)    facilities seismic strengthening defer $815k capex from 2020/21 to 2022/23 and $750k capex from 2021/22 to 2022/23;

p)   Go Digital Programme defer $3M capex from 2020/21 and spread over next three years,

q)    Maungaraki Primary School project increase $0.2M capex in 2021/22 increase $2k opex per annum,

r)    Wainuiomata Queen Street development, increase capex by $4.1M to a revised budget of $8.36M capex spread over 2021/22 and 2022/23;

s)    acceleration of decarbonisation of Huia Pool bringing forward $0.4M capex from 2022/23 to 2021/22;

t)     Cross Valley Link investigation/design works, transfer of $0.65M capex from 2020/21 to next two years and associated Waka Kotahi NZTA funding changes

u)   Hill Road Upgrade project defer $190k capex from 2020/21 to 2021/22 and associated Waka Kotahi NZTA funding changes;

v)   Cuba Street overbridge seismic strengthening project defer $1.3M capex from 2021/22 to 2022/23 and associated Waka Kotahi NZTA funding changes;

w)  Wainuiomata Hill road safety seal defer $0.5M capex from 2020/21 to 2021/22, and associated Waka Kotahi NZTA funding changes;

x)   Eastern Hutt Road Retaining Wall Strengthening Project defer $3.5M capex from 2021/22 to 2022/23 and associated Waka Kotahi NZTA funding changes;

y)   District Plan defer $0.8M opex from 2020/21 and spread across 2020/21, 2022/23 and 2024/25;

z)    RiverLink Project defer $1.9M capex from 2020/21 and spread across 2021/22 and 2022/23;

aa)Petone Wharf update the budget to reflect the latest estimate of up to $20.9M to be spread over 2021/22, 2022/23 and 2023/24;

bb)Waiu Park Mohaka Meander track increase capex budget by $180k  across 2021/22 and 2022/23 offset by a reduction in the Parks Buildings capital renewals budget by the same amount; and

cc) Nuku Ora funding for Spaces and Places (facilities) shared role, funding of $19.5K in 2021/22, 2022/23 and 2023/24 to be prioritised from within base budget;

(4)     endorses  the fees and charges to be included in the final Long Term Plan 2021-2031;

(5)     notes the legal requirements regarding a balanced budget and financial prudence, as detailed in Section F contained within the report;

(6)     notes the latest projected debt and balanced budget results, as detailed in table 3 and graph 4 contained within the report;

(7)     agrees to the rates increases outlined in option 2 to be included in the final Long Term Plan 2021-2031 as detailed in the table below; and

 

2021/22

2022/23

2023/24

2024/25

2025/26

2026-2031

Option 21

5.9%

5.9%

5.9%

7.2%

7.2%

7.2%

Note 1- excludes revenue from growth in the rating base and excludes impact of service changes for waste services(rubbish, recycling and green waste).

(8)     notes the feedback provided to officers ahead of preparation of the final Long Term Plan 2021-2031 reports and requested information to be considered by the Long Term Plan/Annual Plan Subcommittee on 9 June 2021.”

6.       QUESTIONS   

There were no questions.

 

 

There being no further business the Chair declared the meeting closed at 3.51 pm.

 

 

 

 

 

C Barry

MAYOR

 

 

 

 

 

 

CONFIRMED as a true and correct record

Dated this 10th day of August 2021

 


 

1.

Project/ initiative

Waiu Park Mohaka Meander track

2.

LTP Activity

Community Connections

Neighbourhoods and Communities

Parks and Recreation 

3.

Business lead

Janet Lawson

4.

Brief project description

(problem/opportunity statement)

The Waiu Trail Park (WTP) is a multi use cycling and walking/running recreational park located in Wainuiomata, Lower Hutt.  The origins of the park date back to 2006 when Wainuiomata High School approached the Hutt City Council for permission to build tracks at what was then known as Towai Park.

In 2008 the Wainuiomata Trail Project was incorporated as a ‘society’.

 

The primary purpose of the Wainuiomata Trail Project is to benefit the community by creating a world class mountain bike park with multi use tracks.  In 2009 the name of the main entrance to the park was named ‘Waiu Park’.

 

Waiu Park is now a well-developed recreational park with a significant number of tracks catering for all types of users and over 30 kilometres of tracks have been developed.

 

FACILITY AND TRACK DEVELOPMENT

Waiu Park is a very popular destination for recreational and club users with a very busy car park all days of the week, including during the hours of darkness.  Community and sports groups use the park for regular and annual events, as well as high profile national race events. Commercial users also use the park for riding schools and brand demonstration days.

 

Facility and track development continues through the Wainuiomata trail project committee.   The development of the Pukeatua bridge and Te Whiti Riser tracks (by HCC) stepped up the profile of Waiu Park and recreation in this area, and provides enhanced access to the area for many years to come.

 

Currently HCC support WTP with an annual capex allocation of $50k.  Traditionally this has been spent on trail development, however more recently, a bigger part has been allocated towards refurbishment of tracks as they degrade.  There is no maintenance budget for the tracks and on-going maintenance is generally completed by the WTP volunteers, however this is leading to inadequate maintenance and degradation of track standards.

 

WTP have an ambitious plan to extend the park into the adjacent Mohaka Valley and create The Grand Traverse, a circular track connecting Waiu park to the Parkway firebreak and ultimately up to the summit of the Te Whiti Riser.  The benefits of this allow bikers to access the park from the Hutt city side, as well as providing extra biking and walking options.

This was started in 2019, when a 2.5km length of the ‘mohaka meander’ was created.  This is currently a dead end, but still attracts a significant number of users, given its easy gradient and un-paralleled bush setting.  Approx. $20,000 of this was funded by the WTP through fundraising efforts and events.

The next two stages which would see the completion of the grand traverse, requires capex funding in order to complete it. 

5.

Strategic alignment and desired outcomes sought

Leisure and Wellbeing Strategy – This project represents wellbeing opportunities through recreation and mental wellbeing.   It is also a key representation of the identity of Lower Hutt residents and our connection to place. It aligns well with our emerging strategic direction of being community-led. It also provides economic benefits as many users come from out of the city to use this regional facility.

6.

Community engagement

The main community representatives are the members and volunteers from the Wainuiomata Trail Project. This project forms part of their long term plan.  This was consulted on with members and stakeholders in 2017/18.

7.

Overview of project costs and funding source 

Stage 1 (end of mohaka meander to konini firebreak).  $73,865.

Stage 2 (track connection to ridge nr Te Whiti Riser summit) - $106,365.

Total - $180,231.

This funding would likely be required over two financial years to accommodate a lengthy projected build time and contractor programming.

An additional $2M pa has been included in the Parks and Reserves budget to fund our existing maintenance and renewels. If this project is funded from the same funds, it will require a reprioritisation of other maintenance and renewal work over the term of this LTP.

On-going maintenance of the new track can be funded from the budgeted allowance. 

8.

Risks and mitigation plans

This is a low risk project.  Much of the route is already scoped and marked out and contractors are ready to programme the works once funding is agreed.

Resource consent is already in place.

Covid-19 and other unpredictable events may affect programming, but would not impact outputs.

9.

Annual Plan/LTP key assumptions

Currently $50,000 p.a. is programmed for the mountain bike park in general, but this is insufficient to continue with the development of this track due to other priorities.

  

10.

Other relevant information

 

Table 2: Capital budgets

WTP

2020/21

2021/22

2022/23

2023/24

2024/25

2025-2031

Total

Draft LTP assumption (track maintenance)

$50k

$50k

$50k

$50k

$50k

$250k

$500k

Requested additional funding (Mohaka meander)

 

$73,865

$106,365

 

 

 

$180,231

 


 

1.

Project/ initiative

Nuku Ora - Funding Request for a Spaces & Places (facilities) shared role

2.

LTP Activity

Community Connections

Neighbourhoods and Communities

Parks and Recreation 

3.

Business lead

Marcus Sherwood

4.

Brief project description

(problem/opportunity statement)

 The Regional Spaces and Places (Facilities) Plan was signed off by the region’s Mayors in December 2019.  The plan provides a strategic framework for joint decision-making about facilities deemed regional, national, and international facilities while also advocating for local planning at city and district levels that considers the broader regional network of facilities. The plan emphasises a one-region approach to planning for facilities. Nuku Ora are requesting $19,500 on an annual basis for the next three years to fund a ‘Regional Facilities Advisor Role’. The role would be housed and managed by Nuku Ora. The purpose of this role is to:

·         Guide the implementation of the Wellington Region Spaces and Places (Facilities) Plan through working alongside local authority partners, investors, and user groups.

·         To provide a regional view on facility developments, ensuring that new facility developments and redevelopments are aligned to the principles identified in the regional plan

·         To provide support and advice to facility development partners to ensure regional plan outcomes are met

·         To work alongside council staff and provide support to their work including connecting with the sector and Sport NZ on facility matters.

5.

Strategic alignment and desired outcomes sought

Leisure and Wellbeing Strategy – This project represents wellbeing opportunities through recreation and mental wellbeing. It will also provide guidance and support on strategic work planned around future asset planning, future investment in sport and recreation and optimisation of our existing assets.

6.

Community engagement

The Regional Spaces and Places (Facilities) Plan was consulted on within the sports sector as part of its development.

7.

Overview of project costs and funding source 

 $19,500 on an annual basis for the next three years which would be funded from existing budgets.

Note: Council already contribute $15,000 annually to Nuku Ora to support the implementation of the Living Well Strategy – the Wellington Region Physical Activity Strategy. The Regional Spaces and Places plan was a key piece of work that fell out of this strategy.

8.

Risks and mitigation plans

This is a low risk project. 

9.

Annual Plan/LTP key assumptions

Council has budgeted $15K annually to Nuku Ora to support the implementation of the Living Well Strategy – the Wellington Region Physical Activity Strategy.

10.

Other relevant information

Officers agree that the Regional Spaces & Places plan is an important framework. Nuku Ora are an important partner for council who fund a number of important play, active recreation & sport initiatives in the Hutt Valley. The Advisor position would enhance the quality of information being presented to council when making decisions and ensure a coordinated regional approach to facility development. It will also provide guidance and support on strategic work planned around future asset planning, future investment in sport and recreation and optimisation of our existing assets.

Table 2: Operational budgets (from existing)

Funding Request for a Spaces & Places shared role

2020/21

2021/22

2022/23

2023/24

2024/25

2025-2031

Total

Draft LTP assumption

 

 

 

 

 

 

 

Requested funding

 

$19,500

$19,500

$19,500

 

 

$58,500

 

1.

Project/ initiative

Fraser Park Hockey Turf renewal and upgrade

2.

LTP Activity

Community Connections

Neighbourhoods and Communities

Parks and Recreation

 

3.

Business lead

Aaron Marsh

4.

Brief project description

(problem/opportunity statement)

The Wellington Hockey Association (WHA) is the regional sporting organisation (RSO) responsible for delivering the sport of Hockey within the Wellington region. They develop and own a range of hockey facilities (through the Wellington Hockey Stadium Charitable Trust) across the region of which the Fraser Park Turf is one.

The Fraser Park turf is the only hockey specific turf in Lower Hutt providing for competitions and practices for resident teams (clubs and schools).

In the past Council have partnered with Hockey to co-fund the development and renewal of this turf contributing around a third of capital costs. Wellington Hockey’s submission looks to continue this relationship by supporting the current renewal and upgrade programme and are seeking a grant of $300,00 from Council being a third of the cost.

5.

Strategic alignment and desired outcomes sought

Leisure and Wellbeing Strategy – This project represents wellbeing opportunities through recreation and mental wellbeing. It also provides economic benefits as many users come from out of the city to use this facility.

 

Officer Assessment

 

We agree with WHA that the current turf is in need for renewal in the short term. The current state of the surface is showing considerable wear and tear and is past the general life expectancy of this type of surface.

This could be done by replacing with a similar sand-based turf or upgrading to a water-based turf as proposed by WHA at a higher cost.

Upgrading the turf to a water-based surface has merits in that it will provide for a longer life, be suitable for a wider range of users and provide for co-hosting opportunities of regional/national events. This will benefit largely higher grade and senior teams and provide some increased economic benefit to Hutt City and Ricoh Sports Centre. However, upgrading to a water-based surface would not directly increase grass roots participation or target those in high deprivation communities.

 

WHA are proposing to fund the majority of the cost of the development which is different from most requests we receive from RSO’s and should be commended on their funding model. There is also an argument around equity as many other sports are subsidised through use of Council assets unlike hockey.

Council officers recommend this is not supported at this time, given the ‘back to basics’ approach of the LTP and the need for strategic work on how we maintain our own assets and invest in sport and recreation in the future for wellbeing outcomes. Officers recommend waiting until this work is completed before making a decision on this proposal and that any maintenance issue be funded by WHA in the interim.