Long Term Plan/Annual Plan Subcommittee | Komiti Iti Mahere ā-Ngahurutanga / Mahere ā-Tau
Minutes of a meeting
held in the Council Chambers, 2nd Floor, 30 Laings Road,
Lower Hutt on
Thursday 16 December 2021 commencing at 12.00pm
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PRESENT: |
Mayor C Barry (Chair) |
Deputy Mayor T Lewis (Deputy Chair) |
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Cr G Barratt |
Cr J Briggs |
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Cr K Brown |
Cr B Dyer (from 12.08pm) |
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Cr S Edwards |
Cr D Hislop |
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Cr C Milne |
Cr A Mitchell |
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Cr S Rasheed |
Cr N Shaw |
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Cr L Sutton |
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APOLOGIES: There were no apologies.
IN ATTENDANCE: Ms J Miller, Chief Executive
Ms A Blackshaw, Director Neighbourhoods and Communities
Mr M Boggs, Director Strategy and Engagement
Ms H Oram, Director Environment and Sustainability
Mr K Puketapu - Dentice, Director, Economy and Development
Ms J Livschitz, Group Chief Financial Officer
Mr B Cato, Chief Legal Officer
Mr D Koenders, Manager Financial Strategy and Planning
Ms P Rotherham, Head of Planning (part meeting)
Mr T Biggins, Project Manager Riverlink (via audio visual part meeting)
Mr B Hodgins, Strategic Advisor (part meeting)
Ms W Moore, Head of Planning and Strategy (part meeting)
Mr D Kerite, Head of Regulatory Services (part meeting)
Mr A Quinn, Naenae Pool Project Manager (part meeting)
Mr J Kingsbury, Head of Transport
Mr J Scherzer, Head of Climate and Waste
Mr A Marsh, Asset Manager Parks
Ms K Stannard, Head of Democratic Services
Ms H Clegg, Minute Taker
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! |
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
There were no apologies.
3. PUBLIC COMMENT
There was no public comment.
4. CONFLICT OF INTEREST DECLARATIONS
Cr Brown declared a conflict of interest in relation to any matters relating to Urban Plus Limited (UPL) as she was Council’s representative on the Board of UPL. She advised that she would take part in any discusison and provide provide feedback if required. She took no part in voting on matters relating to UPL.
Cr Milne left the meeting at 12.04pm and rejoined the meeting at 12.07pm. Cr Dyer joined the meeting at 12.08pm.
5. Recommendations to TE KAUNIHERA O TE AWA KAIRANGI | Council - 16 December 2021
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a) |
Draft Annual Plan 2022-2023 – Financial Aspects (21/2096) The Manager Financial Strategy and Planning elaborated on the report. In response to questions from members, the Manager Financial Strategy and Planning confirmed the targetted rates were designed to recover all costs associated with the specific output. He advised the charging structure for the waste and recycling bins was designed as a whole and would recover all costs. He highlighted that proposing no increase in the cost of the 80litre bin was designed to encourage useage of the smaller bin. The meeting adjourned at 12.17pm and resumed at 12.28pm.
Cr Milne rejoined the meeting at 12.30pm. Mayor Barry explained to members the order of business commencing with table 7 - Budget matters arising from new and known information requiring Council confirmation. Waka Kotahi Transport Funding Gap: Members agreed to continue with the proposal. Three Waters – capital achievability challenges and proposed rephasing: members approved the proposed changes.
Riverlink Project Phasing updates: members approved the proposed changes. Three Waters – Barber Grove sewer cost escalations: members approved the proposed changes. Naenae Pool Project Phasing – updated operating costs: members approved the proposed changes in timing. Petone Wharf project phasing: members approved the proposed changes in timing. Urban Development Plan: members approved the proposed changes in timing. Table 8 – Budget matters for consideration by Council requiring a decision. Three Waters – opex maintenance: members approved the budget be retained in line with the Long Term Plan and agreed no additional funding was allocated for the draft Annual Plan. Members noted the risks related to this approach. Members agreed an allocation from the Three Waters Reform funding be considered once the full criteria was made available. Three Waters – opex emerging risks: members approved the budget be retained in line with the Long Term Plan and agreed no additional funding was allocated for the DAP. Members noted the risks related to this approach. Members approved an allocation from the Three Waters Reform funding be considered once the full criteria was made available and further investigation completed on the costs of the emerging risks. Three Waters Seaview tank: members approved the inclusion of the revised budget in the draft Annual Plan. Three Waters – Petone Collecting Sewer: Members approved the inclusion of the revised timing and budgets. Transport Contract cost escalation: Members approved the proposed change. Landfill cost/fee impacts: In response to a question from a member, the Head of Climate and Waste explained it was currently not possible to identify where patrons of the landfill originated. He added that the landfill was used by people from across the region and beyond. The Director Environment and Sustainability explained that the landfill was classified as a Class A facility and as such had to accept Class A category waste from anywhere. She added that officers had briefly assessed whether Hutt Valley users could be charged a lower fee than users from other areas and had determined the administrative costs would be burdensome. The Chief Executive advised that if members requested officers to revisit the issue then the matter should be included in the work programme for the next Long Term Plan. Cr Hislop suggested that the ratepayer options work be included in the appropriate Committee’s work programme noting that this work was not urgent. She also suggested that the review also included other potential services
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Resolved: (Cr Hislop/Cr Briggs) Minute No. LTPAP 21501 “That the Subcommittee asks officers to include a review of the ratepayer options for the Silverstream Landfill fees in the relevant Committee’s work programme for the new triennium.” |
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Cr Milne and Cr Sutton asked that their dissenting
votes be recorded against the above resolution. |
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Reserves operational maintenance: members agreed to the proposed budget change for 2022/23 only.
Three Waters/Riverlink – Valley floor growth projects: members approved of the proposed changes.
Eastern Bays Shared Path Project: members approved the proposed changes.
Regulatory Fee and Cost Increase: members approved the proposed changes. Rubbish and recycling services: In response to a question from a member, the Manager Financial Strategy and Planning confirmed officers would develop a table depicting the targetted rate and a second table showing what the targetted rate would cover. Members approved the proposed budget changes and the rates funding changes. Green waste: members approved the proposed budget changes and the changes to the targeted rate for the service to be included in the draft Annual Plan. |
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Resolved: (Mayor Barry/Cr Dyer) Minute No. LTPAP 21502 “That the public be excluded from the following
parts of the proceedings of this meeting, namely: 8. Reserve Management Contract (21/2177 The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
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The public part of the meeting moved into the public excluded part of the meeting at 1.33pm.
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The public part of the meeting resumed at 1.38pm. |
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In response to a question from a member, the Director Environment and Sustainability advised that the review of resource consent charges had concluded the cost of non-notified applications should reduce. In response to questions from members, the Head of Climate and Waste advised that the proposal to change landfill fees to be weight based was based upon the likely ability of various vehicles to hold waste. He added vans, utilities and SUV’s had the potential to carry a higher tonnage of waste than cars and stationwagons. He agreed to change the wording in the table on page 115 of the Order Paper to “All light vehicles”. He further agreed that officers would further investigate changes to the Silverstream landfill charges, especially in relation to weight based charging, and acknowledged many residents may not understand the proposed charges. Cr Briggs raised a point of order as he believed members were getting involved in too much detail. Mayor Barry agreed with the point of order and asked officers to email any proposed wording changes to all members. Cr Milne rejoined the meeting at 1.53pm In response to questions from members regarding the proposed new EV charging station charges, the Head of Climate and Waste advised these charges would commence in March 2022 in line with the Long Term Plan. He noted that officers believed the actual cost of charging could be lower at $0.25. He agreed to report back with details regarding the exact fees to be charged. He added that the $0.01 per minute charge to occupy a charging park without charging would discourage this practice. He noted none of the EV charging stations were located in areas where there were parking charges in force. The Director Environment and Sustainability advised there was a moral code amongst the EV vehicle owners to not take up charging parks if their vehicles were not being charged. Cr Briggs raised a point of order as he believed members were again getting into too much detail. Cr Milne raised a point of order regarding the high number of points of order being raised by Cr Briggs. Mayor Barry asked Cr Milne to withdraw his comment and apologise. Cr Milne withdrew his comment and apologised. Mayor Barry thanked the team involved in rolling out the new rubbish and recycling system including members for their bravery in supporting it. He believed the system was now robust and equitable. He looked forward to achieving a below 10% contamination rate. |
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Recommended: (Mayor Barry/Cr Briggs) Minute No. LTPAP 21504 “That the Subcommittee recommends to Council: (1) notes that following decisions at the Long Term Plan/Annual Plan Subcommittee meeting on 16 December 2021, officers will be preparing the Draft Annual Plan 2022/23 and engagement material for review by the Long Term Plan/Annual Plan Subcommittee on 28 February 2022, refer table 1 contained in the officer’s report; (2) notes that the public engagement process is planned for April 2022; (3) endorses the budget matters as recommended by officers for items 1-7 as contained in table 7 of the officer’s report; (4) endorses the budget matters as recommended by officers for items 8-19 as contained in table 8 of the officer’s report; (5) notes the projected capital investment programme over the next 10 years which includes significant investment in Three Waters and Transport infrastructure, refer Section F contained in the officer’s report; (6) notes the project schedules as detailed in Appendix 3 attached to the report; (7) endorses the proposed increases in targeted rates for wastewater and water supply and notes that these are attributable to decisions to prioritise investment following advice from Wellington Water Limited, refer table 3 contained in the officer’s report; (8) endorses the proposed targeted rates for waste services (refuse, recycling and green waste), refer table 4 contained in the officer’s report; (9) endorses the proposed fees and charges to be included in the Draft Annual Plan 2022/23, refer Appendix 4 attached to the report; (10) notes the legal requirements regarding a balanced budget and financial prudence, refer Section J contained in the officer’s report; (11) agrees to include a rates revenue increase in the draft Annual Plan 2022/23 which aligns with the Long-Term Plan 2021-2031, being an overall rates revenue increase of 5.9% together with a growth-related rates revenue component of 1.1%; (12) notes the detailed rating impact on property categories as detailed in table 2 contained within the report; (13) notes that the impact on the average residential property valued at $630,000 will be a rates increase of approximately $135 per annum or $2.60 per week which includes rubbish and recycling; (14) notes the projected debt and balance budget results as detailed in Section F contained in the officer’s report; (15) agrees that the Annual Plan Working Group (comprising the Mayor and Chairs of standing committees) be established and delegated the power to make decisions required to prepare the draft plan engagement material; and (16) agrees that any such decisions made by the Annual Plan Working Group be reported back to the Long Term Plan/Annual Plan Subcommittee. |
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b) |
Application for funding from the Infrastructure Acceleration Fund (21/2149) |
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In response to questions from members, the Group Chief Financial Officer advised that in the past, Wellington Water Ltd (WWL) had provided a high level scenario cost for infrastructure related to intensification of development on the Valley floor. She noted that the estimates had not been modelled. She advised Council had previously approved officers base their calculations on the medium WWL option. She added the required modelling had now been completed and the amounts quoted were a more accurate reflection of the actual costs. She confirmed the work was essential. Cr Milne reflected that in the past Council had been lamenting the lack of growth and had instigated the rates remission scheme in an attempt to attract development to the city. He noted that with the amount of development now occuring, it followed that extra spending was now required. |
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ReCOMMENDED: (Mayor Barry/Cr Edwards) Minute No. LTPAP 21505 “That the Subcommittee recommends that Council: (1) notes that Council has progressed to the Request For Proposal stage for the Infrastructure Acceleration Fund; (2) notes that following the submission of this Request For Proposal, Kāinga Ora is expected to notify outcomes by the end of April 2022. Following this, negotiation is expected to commence in May 2022 to define and formalise Funding Agreements and Housing Outcomes Agreements before going for Ministerial approval; (3) notes that there is no current funding in the Long Term Plan 2021-2031 for the projects proposed in the Request For Proposal and initial part funding has been sought through the Long Term Plan/Annual Plan Subcommittee, refer Annual Plan 2022-2023 separate report to this agenda; (4) notes that this report outlines the key elements of the Infrastructure Acceleration Fund Request For Proposal at a high level; (5) notes that officers will provide further advice to Council to support future funding decisions in relation to the projects once the outcomes of the Request For Proposal process are understood; and (6) delegates
to the Chief Executive the authority to sign off the Infrastructure
Acceleration Fund Request For Proposal application due for submission on |
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c) |
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The Head of Transport elaborated on the report. He corrected an error in paragraph 14 of this report. In response to questions from members, the Alliance Infrastructure Manager advised the redesign involved replacing the in-situ wall design with a pre-cast design which saved time and better accommodated individual characteristics of each bay. In response to a question from a member regarding the possibility of more funding being required, the Group Chief Financial Officer advised officers were currently investigating further funding options. She also advised that any further request for funding from Council would be dealt with under subsequent Annual Plan processes. In response to a question from a member, the Head of
Transport advised 50% of the funding for the project came from the Crown
Infrastructure Partner funding and of the remaining 50%, 51% was funded by
Waka Kotahi and 49% was funded by Council. |
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ReCOMMENDED: (Mayor Barry/Cr Hislop) Minute No. LTPAP 21506 “That the Subcommittee recommends that Council: (1) notes the cost of $16,848,146 for the construction of the first two bays (Windy Point and Sunshine Bay) of the Eastern Bays Shared Path Project (the Project) and agrees for the Project to proceed; (2) notes that the costs for the first two bays fall within the delegation of the Chief Executive but the costs to deliver the whole project will exceed the delegation that was previously limited to the budget in the Long Term Plan 2021-2031; (3) notes that Council at its meeting held on 1 November 2021 approved the alliance delivery model for the construction of the first two bays (Sunshine Bay and Windy Point) and that the Chief Executive was delegated the authority to sign the Hutt City Council and Waka Kotahi Agreement (the Agreement) to integrate the Eastern Bays Shared Path Project into the Te Ara Tupua Alliance; (4) notes that the Agreement will be for construction of the first two bays (Sunshine Bay and Windy Point), with construction of the remaining bays being conditional on Council approval of any increased funding, if necessary; (5) notes that Council will be required to approve any increase in funding requirements which exceeds the Long-Term Plan 2021-2031 budgeted position; and (6) notes the nationwide increase in construction costs and that early discussions are on-going with Crown Infrastructure Partners and Waka Kotahi to seek additional funding.” |
6. QUESTIONS
There
were no questions.
7. EXCLUSION OF THE PUBLIC
This item was heard under item 5a) above.
8. CLOSING FORMALITIES - KARAKIA WHAKAMUTUNGA
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Whakataka te hau ki te uru |
Cease the winds from the west |
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Whakataka te hau ki te tonga |
Cease the winds from the south |
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Kia mākinakina ki uta |
Let the breeze blow over the land |
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Kia mākinakina ki tai |
Let the breeze blow over the ocean |
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E hī ake ana te atakura He tio, he huka, he hau hū Tīhei mauri ora |
Let the red-tipped dawn come with a sharpened air A touch of frost, a promise of a glorious day |
There being no further business the Chair declared the meeting closed at 2.05pm.
C Barry
MAYOR
CONFIRMED as a true and correct record
Dated this 23rd day of March 2022