Agenda of Ordinary Council Meeting

Ordinary Council Meeting Agenda 31 January 2023

7.1 Chief Executive Report

Author: Angela Oosthuizen, Chief Executive

Authoriser: Angela Oosthuizen, Chief Executive

Staff Recommendations

1. That the report be received for information.

2. Note that the Council remain concerned about the short timelines to make meaningful submission on the two Three Waters Bills.

3. Note that the CEO expresses concern to the NTU on the lateness of the Draft Settlement Accounts and request an extension to the scheduled meeting proposed for the 24 March 2023. The NTA should be advised the financial results on which the settlement accounts are based (30 June 2022) are draft, pending the finalisation of the audit commencing on 13 March 2023.

4. That Council discusses our concerns about the Reform deadlines with the Local Runaka

Purpose of Report

To provide the Council with an update on strategic projects, human resources, customer services and CEO activities during the month of December 2022 to January 2023.

BACKGROUND

Strategy session

A workshop was held with Council and Executive team members to discuss the strategic projects and priorities for the year. A good discussion was held and the next steps would be to finalise the vision, mission, strategic objectives, projects alongside a draft timeline for the next 24 to 36 months.

Three Waters UPDATE

Carolyn Gallagher (Three Waters Transition manager) has been actively working on developing a project plan to identify the tasks that will take us from the status quo through to the transition planned for June 2024. At the current points there are several workstreams.

Legislative Reform

Services Entities Act

The third reading and passing of The Water Services Entities Bill in December 2022 represented a material step forward for the transition three waters services to the new Water Services Entities from 1 July 2024. The Water Services Legislation Bill builds on the Water Services Entities Act. This legislation establishes the detailed powers, functions and duties of the entities. It provides the means to transfer assets and liabilities to the entities, and ensures their effective integration into planning systems including resource management.

The Water Services Economic Efficiency and Consumer Protection Bill was also introduced in December 2022. This provides for the regulation of the price and quality of water infrastructure services, and consumer protection for water infrastructure services. This is also open for submissions.

We are intending to apply for an extension to be able to provide submissions. The due date is 17 February 2023.

Enactment of The Water Services Legislation Bill is anticipated next year. This will be one of a number of programme milestones in the next phase to mid-2023 during which applicable transition activity responsibility will move to Establishment CEs and Boards.

Expected milestones in this phase include:

· Establishment Boards being in place

· development of initial entity constitutions

· draft asset management plans

· organisational design completed

· staff job offers having been made under legislation / guidelines.

The Bill is over 245 pages – some key areas:

Pricing and Charging

· This Bill contains transitional arrangements for pricing and charging, which include the cancellation of pricing and charging provisions in any contract with a commercial entity for the supply of water services (including trade waste services) by a water services entity. This would take effect 5 years after the establishment of the water services entity. Existing tariff/charging systems are set to continue to 30 June 27.

· Provides for pass-through billing arrangements, with territorial authorities collecting charges on behalf of the water services entities, in exchange for the reasonable cost of providing the service, up until 1 July 2029.

· Proposes a new charging system effective from July 27. Existing charging mechanisms to remain in place until then.

· Residential property owners will be responsible for paying charges imposed by their water services entity in full. Non-residential property owners will be responsible for paying the water services entity in full for charges unless the charge is for trade waste; or there is a lease on the property meeting the conditions of section 11(1)(b) of the Local Government (Rating) Act 2002, in which case the liability attaches to the lessee; or the land is Māori freehold land.

· Water services entities will be able to set growth charges for water supply, wastewater and stormwater services through a statutory instrument called a water infrastructure contribution.

· Stormwater charging from 1 July 27.

· Vulnerable customers: Ministers will be able to temporarily regulate prices for residential customers until economic regulation comes into force on 1 July 2027. Water services entities will be able to use geographic average pricing to smooth and share costs across communities. Minister may prohibit or limit the use of variable volumetric charges for residential consumers. The rates rebate scheme will be extended to include water bills from the water services entities:

· Rural water supplies : This Bill provides that local government-owned mixed-use rural water supplies that provide drinking water in addition to water for farming-related purposes will transfer to water services entities. The Bill also contains provisions that enable those supplies to be subsequently transferred to an alternative operator (for example, the farming community served by the supply). The alternative operator must prepare a business plan for the proposal that is independently assessed for its viability. Transfer may occur if it is supported by a referendum.

The Economic Efficiency and consumer protection Bill introduces the following economic regulation and consumer protection measures for the three waters sector. The Bill will enable the Commerce Commission, as the economic regulator, to set performance requirements that drive outcomes relating to the overall objectives of the regime, along with quality standards that focus on a narrower concept of network quality. This could include requirements relating to asset management and investment proposals. Performance requirements and quality standards would be set via price-quality regulation and quality-only regulation.

· the entities will be subject to economic regulation, with the necessary flexibility to adapt that regulation for different entities and services (such as stormwater):

· there is an assumption that information disclosure and quality-only regulation will apply to the entities from the first regulatory period beginning on 1 July 2027. However, there is flexibility for information disclosure regulation to apply earlier:

· there is a assumption that price-quality regulation will apply to the entities from the second regulatory period (1 July 2030). However, there is flexibility for the Minister to agree to apply price-quality regulation for the first regulatory period in respect of 1 provider:

· the Commission will be required to set and enforce minimum service level codes:

· a consumer dispute resolution service will be established and will be subject to regular reviews by the Commission:

· the position of Water Services Commissioner will be established on the Commission’s board to reflect the unique nature of the water sector and the importance of Te Mana o te Wai.

The Bill also provides for the following:

· funding the regime via levies on regulated suppliers on behalf of consumers:

· a range of remedies and enforcement mechanisms for breaches of regulatory obligations, including pecuniary penalties, enforceable undertakings, injunctions, and compensation.

We are working with other Councils and C4LD to assist with the compilation of our submissions. It is recommended that we request an extension as timeframes are too short to be able to provide informed comment.

Draft settlement accounts

Draft settlement accounts were due to have been sent to Mackenzie as a date to review the settlement accounts with the NTU is scheduled for 24 March 2023.

Recommended approach : This is concerning for Mackenzie as we have not yet had a finalised set of 2022 accounts due to the deferred audit. It is recommended that we advise the NTU accordingly and we would need to request a finalisation date for the 2021/2022 Annual Report from audit NZ. It is also concerning that we have as yet not yet received the Draft Settlement accounts but have a scheduled meeting.

An approach to the debt validation process

The NTU has been working with KPMG to develop a process for validating councils’ Three Waters debt, and monitoring debt movement up to 30 June 2024. number of calculation methods were considered to validate the debt figures provided by councils, and these are outlined in a document circulated by the NTU on the 9 January. The calculation methods will provide a debt range, which then provides a comparison benchmark for the debt figures that were provided by councils in their Request for Information documents, submitted in October 2022. Negotiation is the next step in the process.

Timeline

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Customer & Digital Workshops

The digital workshop series were held at the end of 2022 was incredibly valuable for outlining the planned approach to establishing the day one digital capability for the Water Services Entities (WSE).

Current/Upcoming NTU Requests for Information or feedback:

· High-level Organisational Design of Entities: Feedback is being sought in late Jan – Feb from councils and other stakeholders. Additional information may be requested for detailed organisation design work.

· Monitoring guidance: Survey was sent out in December for feedback by Tuesday 24 January 2023.

· Draft transfer principles: These principles were sent out in December for feedback by 31 March 2023.

· Legal transfer questionnaire: An RFI was sent before Christmas for response by end March 2023.

· AMPs: Visits to councils in the New Year to obtain information for the AMPs as part of our ongoing programme.

· Opex/Capex: The second draft versions of the capex and opex RFIs will be required by end March 2023, and we will liaise with the working groups for this information.

DIA oversight and monitoring powers

Draft guidance for local government organisations (LGOs) on our oversight and monitoring powers under the Water Services Entities Act (WSE Act) has been published in December 2022. The WSE Act gives the Department of Internal Affairs (DIA) an oversight and monitoring role relating to water-related decisions made by LGOs during the establishment period. This imposes on the Council’s usual decision-making mandate. Feedback has been sought.

RMA REFORM

A submission on the RMA reform has been circulated for comment and a workshop is planned for 14 February as the submission is due on 19 February 2023.

FUTURE FOR LOCAL GOVERNMENT

The CE will be taking the Councillors through the Future for Local Government Draft Report and seeking feedback so that a submission can be provided by 28 February 2023.

ANNUAL PLAN

Operating and capital budgets have completed by managers. Consolidation of the financials will occur in January and will be subject to an internal review. Workshops with the Council have been scheduled for February 2023. It should be noted that inflation rate was running at 7.22% which is a record rate since 1990. We budgeted 2.7% as inflation in the LTP.

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Worse economic conditions expected to come | BERL

These conditions have had a profound impact on interest rates forecasts, which similarly, are expected to remain higher for longer, compared to budget 2022. Specifically, 90-day interest rates are expected to peak at 5.1 percent across all four quarters of 2023, compared to the previously expected peak of 3.6 percent in budget 2022 during this period.

The shift in inflation and interest rate forecasts will have a compounding impact on households in the short-term, as the end of 2023 and start of 2024 look bleaker than previously thought, with household wealth forecast to fall as mortgages begin to roll-over. This will offset much of the recent growth in household incomes.

Worse economic conditions expected to come | BERL

It is important to keep this context in mind when we start to look at the budget as it will affect contracts and costs in our capital projects. We did signal an increase of 10.3% in the 2021 to 2031 LTP but the impacts of inflation will most definitely impact this.

Some key focuses for this Annual Plan at a high level are:

· Legislative reform in 3 Waters, RMA and Future for Local Government – understanding impacts and transition to any new proposed models

· Continuing to progress and finalise our District Plan review

· Developing Roading Resilience

· Community Expectations and community Development focus

· Planning for climate change

· Managing impacts of tourism recovery and growth with provision for infrastructure and continuing with TMKU projects

· Preparation for the 10 Year Long Term plan (2025 to 2035)

ANNUAL REPORT

We have received feedback from Audit NZ on the revaluation. Main areas to cover off are the Albury Water Supply revaluation, any roading impairments and cost classification (capital/ operating) arising from the flooding and investment property classification. The finance team have the report and are currently working on addressing any queries. The audit is scheduled for 13 March.

Te Manahuna Ki Uta (TMKU) – DESTINATION MANGEMENT PLAN

The Establishment Report for the Phase 2 of TMKU (Implementation Phase) is being presented to Council for approval of resource requirements and next steps. Better Off funding has been secured for the projects.

A meeting was held with MTIA in December 2022 with Christchurch NZ and MTIA to discuss some of the pains of tourism recovery post COVID and to discuss our recently launched Te Manahuna Ki Uta DMP.

AROWHENUA PōWHIRI AND HUI

A joint Pōwhiri for the newly elected member for Mackenzie, Timaru, Ashburton, Waimate and ECan was held at Arowhenua Marae on 15 January 2023. It was the first time that the elected members of all Council and the Arowhenua Runaka members had come together. It was very pleasing to hear that the relationship with Mackenzie was strong and our Te Manahuna Ki Uta projects has been held to as an exemplar of how we work together in partnership with our Treaty partners https://ngaitahu.iwi.nz/our_stories/powhiri-to-welcome-local-government-to-arowhenua-for-historic-hui/)

MEETINGS ATTENDED

Date	Meeting
7 Dec	Future for Local Government Roadshow
8 Dec	Forestry Tender meeting
9 Dec	Staff Christmas Function
12 December	District Plan Workshop
13 December	Council meeting, Audit and Risk, Citizenship Ceremony
14 December	MTIA (Tekapo) – Discussion about Tourism issues and Te Manahuna Ki Uta
15 December	Meeting – Twizel with Albert Stafford and David Cole (TMKU)
19 December	ELT Strategic Planning
20 December	Aged Care Trust meeting
21 December	Forestry tender – Decision Meeting
15 January	Pōwhiri and Hui at Arowhenua
16 January	Tekapo Sports Trust meeting
17 January	Strategy and Priorities for 2023 to 2024
18 January	Weekly Exec meeting
18 January	Alpine Shareholders Engagement meeting
19 January	Meeting with Rationale – TMKU Project Establishment meeting
19 January	District Plan Project meeting
23 January	CMF Triennium Strategy Discussion

PEOPLE AND CULTURE

December 2022

RECRUITMENT UPDATE:

· December saw recruitment slow down with only a few roles being advertised:

o Manager Engineering – No suitable applicants were found for the role through our own methods of advertising. Fluid Recruitment has now been engaged to undertake the recruitment of this role.

o Engineering Officer – Transport – Interviews have been undertaken however no suitable candidates identified.

o HR / H&S Admin (part time, fixed term) – role currently being advertised. Closing date early December 2022. At the time of writing this report there were six applications for the role.

o Roading Manager – Interviews have been undertaken however no suitable candidates identified.

· Overall recruitment has been busy this year however there have been a number of successful appointments with a total of 18 appointments being made throughout the year. This includes fixed term roles.

KEY APPOINTMENTS:

· Regulatory and Compliance Officer – Joleen Tanner appointed to this role and starts 15^th December 2022.

· Customer Services Officer – Nic Zuppicich appointed to this role and starts 21^st December2022.

· IT Cadet – Isaac Ryall appointed to this role and starts 9^th January 2023.

· Principal Building Control Officer – Mark Mitchell appointed to this role and starts 9^th January 2023.

KEY METRICS

MONTH	TOTAL MDC HEADCOUNT (FTE)
December 2022	41.8

Turnover rate is at an all time low of 2.4%. (down from 4.9% in 2022)

TREATY OF WAITANGI TRAINING

Two days Treaty of Waitangi Training was held with elected members, community board members and key staff. All who attended felt it was extremely beneficial and insightful.

CUSTOMER SERVICES

In total, 136 requests were received for December with 45 being carried over from previous periods.

In December 63.7% were completed in time (overall completion rate 87.5%.

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· Finance – predominantly Rates / Rebate enquiries received together with requests for changes to ECAN Rate Account postal addresses.

· Animal Control – the new team has embraced the service request system and is now capturing all data in relation to complaints,, missing and found animals. The trend is difficult to assess at this point as the data has not historically been recorded in the Service Request system.

· Community Facilities – service requests topics include dump station faults, rubbish compactor faults, public toilet facilities, mowing (cycleways, walkways and reserves), community hall maintenance (interior fittings and fixtures), pensioner housing requests for maintenance and swimming pool hours. It is noteworthy that no complaints were received in December about poor standard of cleanliness of public toilet facilities (complaints were targeting the failure of the coin operated toilets and blocked drains).

· Roading (Contracted) – a number of requests for assistance following a heavy rain event early in December (Fairlie area), requests for review of the state of some rural roads (corrugations, potholes and sharp gravel), reinstatement of roads after road works, damage to signage and street lighting.

· Solid Waste – service requests relate to requests for new/additional bins, missed bin collections and damaged bins. It is interesting to observe requests reporting several red bin lids damaged following collections.

In the period 1 December 2022 to 31 December 2022 11 LIM applications were received (processing day average = 3). This compares with 24 for the same period last financial year (processing day average =5).

Trend by calendar month is shown below:

HEALTH, SAFETY AND WELLBEING MONTHLY REPORT

December 2022

GENERAL HEALTH, SAFETY AND WELLBEING UPDATE:

· Training completed in December:

o Rebecca completed the Te Tiriti o Waitangi 2 day workshop.

o Rebecca attended an online Leading Psychological Safety – Obligations and Opportunities seminar.

o Rebecca completed the Civil Defence Logistics Function Training Session with Joe Rush.

· Training facilitated in December:

o Rebecca facilitated basic Fire Warden training for the Fairlie Fire and Building Wardens.

o Rebecca assisted Health and Safety Representative Cathy Matheson to complete Cathy’s first ‘Site Inspection’. The Fairlie Office site was inspected, and the report is attached.

· Rebecca facilitated an Emergency Evacuation Drill for the Fairlie Office. The drill was completed in 1 minute 43 seconds and went well.

· Rebecca made improvements and updates to the Emergency Evacuation procedures for the Fairlie office.

· Rebecca has been continuing to assist Fiona McQuade with carrying out a Risk Assessment for our Forestry Assets.

· Rebecca investigated a serious incident which occurred on Hayman Road on the A20 Cycle Trail. The investigation included visiting the scene and interviewing the injured party (by telephone). Although MDC was not legally required to notify Worksafe of the incident, this was a grey area so Rebecca notified Worksafe out of an abundance of caution, as recommended by Duncan Cofterill Lawyers. It was unclear whether the other PCBU’s involved would notify. Rebecca provided a Detailed Incident Report to ELT, which has since been updated (see attached).

· Rebecca is arranging electrical tagging for both Fairlie and Twizel offices and this is likely to take place in February or March. Team Mack will be notified when this is due to occur.

· Contractors who are not prequalified with Sitewise are being worked on – ongoing.

· Rebecca attended the Crew Culture 3 monthly meeting, and will be facilitating Internal Customer Service Workshops with Fiona McQuade in February and March.

· Rebecca has added ‘Inspections Summary’ to this report, as regular site inspections will begin to be completed.

· Rebecca is continuing to review and update the following procedures:

o Contractor H&S Procedures

o Evacuation plan for Twizel offices

o Fatigue risk management

· Rebecca assisted with running the 2022 Team Mack Christmas Function.

INDUCTIONS SUMMARY:

Health and Safety Employee Inductions completed during December 2022 = 0

INCIDENT SUMMARY:

· There were three incidents reported for December 2022.

· Attached are the Incident Reports.

· There was one Contractor Serious Incident reported for December 2022.

o MDC are awaiting the incident investigation findings. The preliminary contractor incident report is attached

HAZARD SUMMARY:

· There were two Hazards reported in December 2022.

INSPECTIONS SUMMARY:

· There was one Site Inspection carried out in December 2022.

LOST TIME INJURY SUMMARY:

· There have been no Lost Time Injuries reported for December 2022.

· Due to no LTI’s being reported, there is no LTI report included in this report.

Ordinary Council Meeting Agenda 31 January 2023

7.4 Council Financial Report to December, 2022

Author: Sandy Hogg, Manager - Finance

Authoriser: Murray Dickson, GM - Strategic Financial Management and Commercial Services

Attachments: 1. Financial Report ⇩

Staff Recommendations

That the financial report be received.

Background

Overview - Year to Date to 31 December 2022

The financial report is now reporting actual to forecast including the Council adopted budget for 2022-2023 and carry forwards from 2021-2022 to 2022-2023 that Council approved 13 December 2022.

Overall Council performance year to date is showing an operating deficit of $3.759 million compared to the forecast deficit of $465,000. This is mainly due:

- decreased revenue received from financial contributions, Waka Kotahi (NZTA) subsidies, and

- increased expenditure in emergency reinstatement of roads, consultancy and contracting for staff vacancies and three water reform projects for which revenue was received in prior years.

Capital expenditure is tracking $2,990,000 below year to date forecasted projects. Capital expenditure will increase over the next quarter due to a number of projects reaching completion in February and March 2023 (TIF funded public toilets, roading).

Financial Performance

Revenue

Operating revenue is tracking at 41% received to the full year forecast and is $754,000 less than the year to date forecast. Contributing factors to this are the following:

- Subsidies and grants – Waka Kotahi for roading $417,257 – a timing issue with claims catching up to date; government funding for Twizel township projects $293,148; and responsible camping ambassadors $50,002 below budget. This is offset with unbudgeted funding received of $461,685 for Mayors Taskforce for Jobs, 3 Waters Reform stimulus and transition funding, and Tourism Infrastructure Funding for Tekapo and Twizel carparks and Fairlie Camper Dump station.

- Financial contributions for land subdivision, water, wastewater and stormwater under budget by $841,427. These are dependent on developer activity and the conditions of their consents.

- Other income – timber sales from harvesting of forestry plantations, no income has been received to date. Timber sales of $261,727 were budgeted year to date. Harvesting of Douglas Fir at Woodburn and radiata pine at the Pareora Gorge were planned for this year . However due to the fall in log prices no harvesting has taken place. This income variance with no log sales is expected to continue until at least February or March when some sort of recovery in the export log may have occurred.

- Other income – unbudgeted income of $680,258 received from the sale of Council property.

Expenditure

Operating expenditure is tracking at 58% to the full year forecast and is $2,540,000 higher than the forecast year to date.

Personnel costs are showing savings of $291,000 against forecast, but these are offset by increased consultancy and contractors to provide cover for staff vacancies.

Other expenses have the following contributing factors affecting its unfavourable variance against forecast:

- Increased consultancy and contractors costs of $551,571 in a number of activities due to staff vacancies, which is partially offset by favourable variances in personnel costs especially in Engineering, Assets, Facilities and Building Control.

- Licensing and subscription costs within IT support are over budget by $103,049 and is due to a timing difference, the budget was spread evenly over the year.

- Contract services of $247,085 were not budgeted for in regards compliance costs within the building control and inspectorate activity. Only some of this will be subject to cost recovery. Recently appointed staff and the new approach to inspections will should reduce this dependency going forward.

- Roading costs for environmental maintenance and emergency reinstatement as a result of six back to back weather events in July and August and signage installations from vandalism has resulted in an overspend of $1,369,000.

- Unbudgeted consultancy costs within the urban water activity due to water safety work required, Twizel water supply future system performance and the Twizel ring main. Burkes Pass water easement and engineering standards and a feasibility study for Lyford Lane and connecting rural water supplies.

- Unbudgeted expenditure of $98,459 in regards sewer stimulus projects for desludging ponds and programme delivery.

Capital

Capital expenditure is sitting at 21% spent of the full year forecast. Actual expenditure is $2,990,000 less than the year to forecast of $7,866,000. Specific areas that are under budget are:

- Stormwater by $180,000 and is due to the delay in commencing the Alloway and Sloane Street, Fairlie project.

- Transportation by $131,000 and is due to timing. Construction ‘season’ is underway with the commencement of reseals and pavement improvements and network signage renewals. Other renewal activities are currently being prioritised and worked on.

- Urban wastewater by $303,000 and is due to timing. Work is progressing on sewer relines, the Tekapo Treatment plant and inlet screens. Work has now been completed on the Fairlie Golf Club line project.

- Water supplies by $2,080,000 and is due to delays in the new Fairlie water treatment plant. The tender process is underway and the contract is expected to be awarded this year. Work is programmed to start in the 2023-24 year with an expected completion date of March 2024.

- Three Waters Reform projects for water by $452,000 and relates to the water metering trial in Twizel. The installation of meters is expected to start in the latter part of this financial year. Expenditure to date has been in relation to the purchase of monitoring equipment.

Financial Position

The Council’s year to date balance sheet is tracking $3.8 million less than the net assets and equity as at 30 June 2022 and is reflective of Council’s year to date operations.

Current assets are $11.815 million less than 30 June 2022. Receivables are lower than year end due to rates receivables balance being in credit due to a number of ratepayers paying the full 2022/23 annual rates at instalment 1. Short term deposits are lower than year end with the Council utilising cash to pay for capital works programmes.

Non current assets are $2.605 million higher than 30 June 2022 as a result of capital purchases for property plant and equipment and have actioned to date for this year and the addition of Local Government Funding Agency borrowers notes (which are issued to Council in proportion to some of our LGFA borrowings).

Current liabilities have moved by $9.953 million and relate to the reversal in July of any accrued payables and revenue in advance journals that were posted back into 2021/22 at year end. In October Council reset its $10 million of Local Government Funding Agency (LGFA) borrowings to a spread of longer maturity dates greater than 12 months which resulted in a move from current to non-current liabilities.

Equity has moved in relation to net operating and capital expenditure movements at year to date.

Cash Flow

Council’s year to date cash flow is showing a closing cash balance of $6,357,000 which is $2,351,000 above the closing cash balance at 30 June 2022. This is reflective of Council’s year to date operations.

Indications to the end of the financial year is that Council will finish with a closing cash balance of approximately $4,168,000, with external borrowings increasing by another $7,500,000 to order to fund all operating and currently budgeted/forecast capital operations.

Ordinary Council Meeting Agenda 31 January 2023

7.5 Quarterly Portfolio Report - Bancorp Treasury Services

Author: Sandy Hogg, Manager - Finance

Authoriser: Murray Dickson, GM - Strategic Financial Management and Commercial Services

Attachments: 1. Bancorp Quarterly Report - December 2022 ⇩

Staff Recommendations

1. That the report be received.

PARTICULAR POINTS TO NOTE

Purpose

This is a regular quarterly report and includes the treasury report from Bancorp (Council’s treasury advisors). The report covers financial market conditions, and updates on Council’s treasury activities including borrowing and related risk management activities.

Post 31 December 2021 changes

On 16 January 2023 an interest rate reset occurred on Council’s floating rate borrowing with the LGFA of $1,500,000 maturing 15 April 2027. The interest rate moved from 4.7969% to 5.655%.

On 20 January 2023 an interest rate reset occurred on Council’s floating rate borrowing with the LGFA of $1,500,000 maturing 15 April 2029. The interest rate moved from 4.8778% to 5.5725%.

Financial Market Movements

The Official Cash Rate (OCR) moved by 1.25% during the December quarter. The OCR sat at 4.25% as at 31 December 2022.

Investment Management

At 31 December 2022 the Council has one bond investment in place.

Council held five term deposits as at 31 December 2022, with a total value of $9.9 million and a weighted average yield of 4.59%, this is up from 3.20% at the end of September.

Investment Strategy

Since 2014 the Council has been investing in term deposits rather than in corporate bonds due to the yield advantage that term deposits provided. The five term deposits invested in during the December quarter provided a yield ranged from 4.08% to 5.46%. These yields were exceeded by all but one corporate bonds benchmarked in the report, but as Bancorp Treasury have stated if the Council had invested in bonds over the last twelve months the Council would have been exposed to revaluation losses.

As noted in Bancorp’s report they will monitor changes and advise if there is an opportunity to improve returns through corporate bonds.

Policy Adherence

As at 31 December 2022, the Council’s Long Term Funds Portfolio was compliant with the investment credit rating parameters contained in its Investment Policy.

Debt (including post 31 December activities)

As at 31 December 2022 the Council had $10 million borrowed from the LGFA using a range of maturities and a mix of fixed and floating rate debt, in order to give the best spread of risk for the Council and ensure that no breaches occur to the Council’s Liability and Management Policy.

The following table shows the spread of Council’s external borrowing from 31 December 2022.

Issuer	Type	Maturity Date	Interest Rate	Amount
LGFA	Zero Coupon Security	15 February 2023	4.12%	2,000,000
LGFA	Fixed Rate Coupon Bond	15 April 2025	5.524%	1,500,000
LGFA	Fixed Rate Coupon Bond	15 April 2026	5.545%	1,000,000
LGFA	Floating Rate Securities	15 April 2027	3month BKBMFRA + 83.5 bp	1,500,000
LGFA	Fixed Rate Coupon Bond	15 May 2028	5.55%	2,500,000
LGFA	Flowing Rate Securities	20 April 2029	3month BKBM FRA + 90 bp	1,500,000
				$10,000,000

Funding and Interest Rate Management - Policy Adherence

We are policy compliant with the interest rate hedging bands (as reflected on Page 6 and 7 of the Bancorp Report).

As part of the Council undertaking borrowing, the Council received the following borrowers’ notes (financial assets). Borrower Notes are subordinated convertible debt instruments which each council that borrows from LGFA must subscribe for (in an amount equal to 2.5% of the total borrowing from LGFA by that council). They are redeemed when the LGFA debt is repaid.

Issuer	Type	Maturity Date	Interest Rate	Amount
LGFA	Fixed Rate Borrowers Note	15 April 2025	5.124%	37,500
LGFA	Fixed Rate Borrowers Note	15 April 2026	5.145%	25,000
LGFA	Floating Rate Borrowers Note	15 April 2027	3month BKBM FRA + 43.5 bp	37,500
LGFA	Fixed Rate Borrowers Note	15 May 2028	5.15%	62,500
LGFA	Floating Rate Borrowers Note	20 April 2029	3month BKBM FRA + 90 bp	37,500
				$200,000

Ordinary Council Meeting Agenda 31 January 2023

7.10 Community Facilities and Services Update

Author: Brian Milne, Community Facilities and Services Officer - Contractor

Authoriser: David Adamson, GM, Operations, Planning and Regulatory Services

Attachments: 1. Community Facilities and Servcies Capital Works Programme Dashboard ⇩

Purpose of Report

The report gives the Council an overview of activities within the parks and community facilities area.

Staff Recommendations

1. That the Community Facilities and Services Operations report be received.

Health and Safety

Township maintenance works are inherently high risk and involve work outside, with machinery, often working by themselves and exposure to multiple hazards.

Staff and contractors continue to monitor H&S requirements as part of the monthly performance audits plus observation of staff and work practices at other times.

No issues with health and safety practices have been observed/reported over the last month.

The A2O trail generates the most H&S incidents, related to cycling accidents. There was a serious incident in December with a cyclist being hit and injured by cattle being herded along Hayman Rd. The rider received hospital treatment and is now fully recovered. MDC’s H&S officer and A2O management staff have investigated, and an email went out to the Partners last night advising them to brief customers on the potential of livestock on the trail in this section. Changes to the safety information on the A2O website have also been made. The Trail manager and MDC Health and Safety Officer will continue to work on options to help mitigate risk of future such incidents.

With the continued need for riders of the trail to share the road on various sections of the trail, there is a variety of risks that will remain of concern, therefore the best mitigation of these risks is the off-roading of the trail which is ready to progress for Hayman’s Rd/East Pukaki subject to government grant funding.

TOWNSHIP MAINTENANCE CONTRACT

The township maintenance contract is continuing to operate effectively with good levels of performance overall.

The monthly cumulative performance audit result to December 2022 is 95% compliance.

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POOL heating and Fairlie pool plant upgrade

The installation of the new heat pumps and associated electrical work has been successfully completed at both Fairlie and Twizel pools and they opened on their scheduled dates.

Additional filtration and circulation pipe work is scheduled to be completed at the Fairlie Pool following completion of the swimming season in May-June 2023.

There is strong interest from the Twizel community to open the pool earlier than current opening day of last weekend in November, which is quite a bit later than the Fairlie pool which opens at Labour weekend. The Fairlie Pool is a covered facility and is easier to heat and will get potentially more use in cooler weather. It appears historically the Twizel pool did open earlier, but this was pushed back when the heating system failed several years ago.

A report will be presented on the options and costs at a subsequent meeting when we have actual power costs for the new heating systems so we can report more reliably on actual weekly cost of operation.

POOL operations

The following information has been provided by our pool operations contractor, Belgravia Leisure.

Fairlie Venue Attendance	Oct - Nov
Total Swimmers October	293
Total Swimmers November	1347
Venue Attendance Total	1640
Product
Swimming Lessons	367
Swim Club	97
Product Total	464
Additional
Inflatables	10 days
School events	0
Twizel Venue Attendance	Nov
Total Swimmers November	271
Venue Attendance Total	271
Additional
Inflatables	0
School events/Swimming	180

Belgravia Leisure is pleased to present its first monthly report for Mackenzie District Council for the 2022- 2023 season. Overall attendance for the commencement of the season has been positive across both sites. School bookings in Twizel take up most of the available space during the day however that hasn’t negatively impacted members of the public to date. Lane availability is available via social media (Facebook) and is updated as bookings arise to minimise any disruption to the community. Customers have commented on the new heat pumps and warmer water which will see further increases in attendance as the summer continues.

Staff attrition rate has been high unfortunately due to the season ending and being able to retain staff into the new year. We have been able to retain 2 staff at Fairlie and employ new staff however we are going into the summer in Twizel with brand new staff and lack of interest in the community has meant we have had to send staff from various other sites across NZ to fill the gap. If Belgravia had a year-round operation this would enable them to employ and retain staff more easily. Including the operation of the Events Centre into their contract would achieve this objective. The current need to bring in staff from other parts of the country is very expensive and Belgravia are likely to want to pass this cost on at some point.

Free learn to swim lessons marketing for both pools went out end of November and was over capacity by the end of the first day. There are approx. 110 children receiving lessons this summer. It was hugely successful last summer and lessons will be provided in Fairlie 9th – 13th January and in Twizel 23rd – 27th January. In alignment with our access and inclusion policy we have not limited lessons to a demographic of child but have also made lessons available for children with a disability and they will receive one on one lessons as part of our community access values.

December figures have just been received and are as follows.

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TREE MAINTENANCE

The first stage of the Peace Ave deferred maintenance has been completed with approximately 60% of the trees pruned. Funding of the remainder of the work required has been included in the draft 2023-24 Annual Plan.

We are also planning to remove two groups of Wilding Pines in Twizel, adjacent to the state highway and on Glen Lyon Road, with funding support from Environment Canterbury and Waka Kotahi. This work is expected to be undertaken in the autumn of 2023.

Following the clearance of these areas, plans for replanting with amenity trees will be progressed, together with relocation of the Twizel township trail into the area on the State highway as it is currently on private land adjacent to this area.

Work was also completed in early December in the Fairlie Cemetery to remove several high-risk trees on the Southern Boundary, plus other damaged/hazardous/undesirable trees in Twizel and Tekapo.

TEKAPO FIREBREAK

Staff have been working with FENZ, the MDC forestry team, DOC, property developers and the community, to undertake the removal of pine trees and other vegetation on reserve land adjoining the Southern boundary of the Tekapo Township approximately from the State Highway to Andrew Don Dr.

A further meeting of all interested parties has been organised for the 30th of January to confirm further areas for tree removal and to encourage the further expansion of the firebreak currently being cut from the Tekapo Cemetery to the Transfer Station. Contractors and pricing have been obtained for the MDC section, and firebreak cutting is due to start in Mid-January. Some initial tree work will begin from February/March, as contractors become available.

Twizel Events Centre

Work is largely complete on the rectification and improvement works of the Twizel Events Centre to achieve Building Code compliance. An update on progress to date will be provided at the meeting.

The nest stage of improvement works is an upgrade to the kitchen and staff are investigating options and pricing for this.

VERANDAHS
A letter was sent to all- owners on 21 December providing them with an update. At the Council side end we have progressed the following:

· Preparing an as built of the underground stormwater that exists in Market Place.

· Commencement of preliminary design of the stormwater system moving forward including the option to service points where downpipes have been removed, and the option to provide each property owner with their own connection.

· A standard verandah design bringing the guttering to the outside of the verandah, but still allowing space for store branding, and a blending in with existing verandahs that do notrequire replacement.

· Finalised the design and consenting for its own verandah between the office and Hydro Café, physical work should commence in March2023.

Unfortunately, we have not progressed the individual condition and repair analysis of each

verandah, subject to individual property owners’ permission, due to the difficulty in securing the

available engineers and builders. We have requested a further meeting in February 2023.

MBIE TIFF TOILET PROJECTS

A contract has been let to Carpentry South, utilising prefabricated Exeloo toilet units for the new toilets at Fairlie, Lake Pukaki Lookout and Lake Ruataniwha.

Due to delays with obtaining agreement with Meridian and resource consents, the toilets were unfortunately not completed in 2022 as originally programmed. Building consent application has now been lodged for the Ruataniwha toilets and it is expected these will be completed in the next 3-4 months. Design details are being finalised for the Pukaki Toilets and with application for building consent expected to be lodged within the next month. Investigations into the sewer disposal system has identified some deficiencies (mainly with the disposal field), which is likely to lead to some additional work and costs.

A2O

A new toilet is in the process of being installed at the Jollies carpark. We have also identified a site with Genesis Energy along the canal between Tekapo and Pukaki to relocate the toilet from Patterson’s Ponds (this toilet/camping area has been closed by LINZ at the request of Genesis, due to flood risk in the event of the Tekapo dam failure).

Background work (lizard study) continues on consent requirements for the East Pukaki off-roading project.

The business case has now been completed and submitted to support applications to MBIE’s Great Rides funding with East Pukaki being the priority project across the whole A2O trail.

OTHER PROJECTS

A number of projects are also underway within the parks and community facilities area. A brief update on some key projects is listed below:

1. Maukatua Reserve (D’Archiac Dr) Tekapo

This project is now complete, with planned opening event on 11^th February 2023.

2. Tekapo Lake Front Path and Other Improvements

This project was completed in December 2022, as scheduled.

3. Twizel Office/Market Place Access upgrade

Following difficulties with a suitable option for the temporary relocation of customer and postal services, the project was deferred from the planned delivery of autumn 2022. We have also extended the scope to rebuild a portion of the veranda adjoining the council veranda and the hydro café which had been identified as hazardous. We have recently received building consent for this and work is expected to be undertaken in February/March 2023, with relocation of the customer and postal service into the Events Centre.

4. Signage Upgrade

A contract has been awarded for the supply of new signage and we have just placed an initial order to establish process and confirm design and sizing is appropriate before working on a wider program of signage install from February to June 2023. There will then be an ongoing program over several years to install new signage throughout all the parks and other council sites.

5. Man Made Hill Twizel

A draft development and maintenance plan for Man Made Hill has been approved by the Community Board and feedback from the Let’s Talk notification has now closed. A summary of this feedback, plus recommended amendments to the plan based on this feedback will be presented to the Community Boards next meeting.

The plan includes vegetation of the hill in native plants, a MTB flow track, upgrade of walking tracks and interpretation/viewing map panels. To protect the plants from rabbits, a rabbit proof fence is proposed around the base of the hill. Implementation of the planting is staged over 6 years, with the first stage planned for autumn 2023.

6. Fairlie Dog Park

The development of the dog park is complete and was opened for use on January 16^th . Signage will be installed following consideration by the Community Board of a name for the area.

7. Fairlie Cemetery Memorial Wall and Circle Landscaping

A draft landscaping plan has been prepared and circulated to stakeholders for feedback, with planting planned for autumn 2023. The memorial wall group are finalising their construction plans required for building consent.

PARKS AND COMMUNITY SERVICES ANNUAL PLAN KPI PROGRESS REPORT


KPI	Past FY 21-22	Target FY 22-23	Forecast	Comments
Average customer satisfaction rating for township services and facilities	69%% (average)	≥84%		Annual survey
Average customer satisfaction rating for parks and community facilities	53% (average)	≥90%		Annual survey
Benchmarking of parks and open spaces operation and maintenance costs as measured by Yardstick	Equal to median cost per ha	Within 15% of peer group median
Monthly performance assessment of parks and public toilets operations and maintenance standards	95%	≥90%		Currently 95%
Recreation Aotearoa Pool Safe Accreditation	Achieved	Maintain Pool Safe accreditation
No serious harm accidents on our playgrounds, parks, or facilities	One incident on the A2O cycle trail	Zero reported serious harm incidents

Key:

On track to meet target Potential difficulties meeting target Unlikely to meet target

Ordinary Council Meeting Agenda 31 January 2023

7.11 Emergency Management Activity Update

Author: Chris Clarke, General Manager, Information, Engagement and Community Development

Authoriser: Chris Clarke, General Manager, Information, Engagement and Community Development

Attachments: Nil

Staff Recommendations

That the information be noted.

Background

This report will cover recently completed activity, and work scheduled to be completed for the coming 6 months. Tasks are aligned to our objectives across the 4 R’s: Readiness, Reduction, Response and Recovery.

There are four workshops planned for the coming year at which Council will be briefed in more detail on the risks and statutory requirements that the Mackenzie District Council has in respect to Emergency Management and Civil Defence. The workshops will cover Risk, Readiness, Reduction, Response & Recovery.

With an increasing number of extreme weather events occurring, it is critical that the organisation is well trained and resourced to be able to respond professionally to assist our communities throughout the Mackenzie District and be available to support other Canterbury Councils.

EMERGENCY MANAGEMENT ACTIVITIES

South Canterbury Civil Defence Controller and EMO Duty Officer

Timaru, Waimate and Mackenzie District Councils have an MOU (Memorandum of Understanding) to share resources and provide 24/7 Emergency Management coverage to the South Canterbury District via a Duty Emergency Officer (EMO) role. The officer on call has the responsibility of processing information received from partner agencies and then supporting the territorial authorities with monitoring or activating resources to events that may occur. Each Council will still be ultimately responsible for decision making but will have the support of a professional Emergency Management Officer that will assist them in any way that is required. Sharing on-call responsibility with our neighbours ensures we have an EMO immediately available, around the clock, every day of the year.

This service has been operational for approximately two months and certainly provides resilience to the Mackenzie District that weather and developing events etc are being monitored 24/7.

Civil Defence Controllers

The Mackenzie District Council has been operating with two Civil Defence Controllers for many years. Rick Ramsey has recently retired his services leaving Bernie Haar and now Dave Adamson as controllers available for the Mackenzie District. Work has been in progress identifying staff that would be suitable and have the necessary leadership and operational skills as a Controller.

Chris Clarke, Joe Rush and Sue Wilkins attended the introduction to Controllers course in Timaru facilitated by the Canterbury Civil Defence Group Office. New Controllers require approval from Coordinating Executive Group, and this will be requested for Joe Rush and Chris Clarke at the next Group meeting. Currently there is no mandated Controller training, however this is likely to change following the amendments to Civil Defence Emergency Management Act.

We are very lucky to also have on board Murray Dickson as a Controller as he has previous operational experience with Christchurch and Kaikoura earthquakes in senior management roles.

Staff Training

The primary goal is to have sufficient trained staff to support an Emergency Operations Centre (EOC) for the first 24-48 hours in response. The Canterbury Group Office are aware of our limited staffing resource and will support MDC with additional staff from the Canterbury 10 team when required.

Canterbury 10 EOC Support Team – short “C10”. This is a team of experienced and well-trained staff that can go on short notice to another EOC to work alongside the local staff and experts. While the main purpose of C10 is to have strong surge capacity within Canterbury, the team is also available to help further afield if required.

Joe Rush completed the 5-day residential C10 Course at Glen Tui in October 2022 and is now qualified to assist other EOC’s. Mackenzie District Council is required to have at least two trained C10 staff members. Erin McDiarmid (Fulton Hogan) is also C10 qualified. Sue Wilkins was unable to attend this course but will hopefully be available for the next one this year.

Small EOC function teams have been created (Planning, Intelligence, Operations, Public Information, Welfare, Logistics, Admin Support, Finance and Controllers) which will meet regularly and training will be focussed on their specific function. This will assist with both staff confidence and succession planning. Initial function training was completed prior to Christmas. This covered D4H login (emergency event management software used by agencies across Canterbury), function email access, function responsibility and the training pathway for 2023.

EMO’s from Timaru, Waimate and Mackenzie are working together to provide and schedule a joint South Canterbury function training during the year which will be facilitated by the Civil Defence Group Office trainers. The course content is currently being reviewed and standardised Nationally. We estimate that by February 2023 training can be scheduled for staff.

Work is underway identifying a staff call out system via etext. IT are procuring appropriate software that is easily managed to bulk message staff with information relating to Civil Defence or any other information such as weather and road conditions for additional staff safety.

This system will also be used to notify key emergency services personal and partner agencies of any developing information.

Emergency Operations Centre (EOC) Equipment

A major review of the current EOC set up and procedures has been completed resulting in several recommendations. The review is to ensure the EOC setup is professional, appropriately resourced and user friendly.

Unsuitable and/or outdated equipment including old laptops and cell phones have been retired and new processes have been put in place to allow staff to use their own MDC issued equipment during a response. There will be a small cache of spare laptops available for use if required. The laptops will be managed by IT and utilised via BAU.

A small amount of additional equipment is being priced such as laptop screens, an assortment of power/phone chords and cell phones capable of having the IPEX app downloaded enabling easy deployment and re-assignment.

New whiteboards and magnetic functional headings are being procured.

Given that Mackenzie District Council does not having a purpose built EOC which is code compliant, scoping is underway for mobile equipment that will provide power, internet and phone services. This will allow an EOC to be activated in any location throughout the district should Council Chambers be unavailable.

MDC have one 88KVA mobile generator located in Lake Tekapo. I am investigating quotes to purchase additional generators for Twizel and potentially Fairlie.

Currently, Council has sufficient resources to activate an EOC if required.

Multi Agency Workshops

The Emergency Management Office has facilitated multi-agency workshops in Twizel and recently Lake Tekapo. These workshops are crucial to our response and relationships with our communities and partner agencies.

On the 1st of December 2022, 34 representatives from Police, FENZ, St John, LandSAR, Mackenzie Lakes Coastguard, Lake Tekapo Civil Defence Welfare Team, Mackenzie District Council Civil Defence and the Lake Tekapo Lions group attended a workshop at the Lake Tekapo Community Hall to plan a multi-agency and community response to a developing incident.

The group was presented a wildfire scenario that included a possible evacuation of the Lake Alexandrina Huts and Mt John area. This was a very real scenario that many towns in the Mackenzie District could potentially be exposed too. Being prepared and having excellent community relationships is paramount to providing a professional and coordinated response.

All emergency services and community groups had to work together in collaboration to respond to the incident, utilising local resources. Very positive feedback has been received.

A Fairlie based multi-agency workshop is planned for the 20^th of February 2023.

These workshops will be held annually in each town.

AF8 Alpine Fault Presentations

Presentations have been delivered to the Mackenzie District Emergency Services. Agencies and groups included the Mackenzie LandSAR group, Lake Tekapo Fire Brigade, Lake Tekapo St John, Aoraki Mt Cook Emergency Services, The Helicopter Line and the Fairlie Fire Brigade. Additional meetings were held with the Twizel Fire brigade regarding evacuation zone planning for the Twizel area.

The AF8 road show will be coming to Fairlie in April/May. This is an interactive presentation with up-to-date information relating to the Alpine Fault. The date and venue is to be confirmed, and all elected members will be invited to attend. This will be a great opportunity to promote this event to the wider Mackenzie and South Canterbury area. The road show visited Twizel and Aoraki Mt Cook approximately 2 years ago.

Currently there is work being done collaboratively with all South Canterbury Councils, Emergency Services and partner agencies to develop a South Canterbury AF8 response and recovery plan. One meeting has been held prior to Christmas setting the objectives. A fuel and communication plan workshop has been scheduled for early February 2023.

Mackenzie District Welfare Groups

The Mackenzie District Communities are very fortunate to have motivated Civil Defence Community Response volunteers in Fairlie, Lake Tekapo, Twizel and Aoraki Mt Cook. These groups have the availability to stand up Civil Defence and Communities Centres during an event.

Training with each group was held during the winter, this was facilitated by the Canterbury Group Welfare and Community Manager and the MDC EMO. These groups were also involved in the multi-agency training workshops.

Each group will shortly be provided with a Civil Defence Centre Response Equipment Kit that will include storage containers containing, a portable 2200VA generator, a foldaway table, a whiteboard, a jug, tea, coffee, cups, PPE and vests, an assortment of stationary, a battery radio, LED lights, power and cell phone charging chords. This equipment will allow the teams to set up and provide an instant response to the community welfare requirements until more resources can be deployed or a more permanent welfare centre can be established.

Fire & Emergency New Zealand (FENZ)

MDC has a very strong relationship with FENZ. The EMO was invited to participate in a FENZ led tabletop incident management scenario with a variety of emergency services personal. Going forward, FENZ will be seeking assistance from local Civil Defence staff to support their incident management team. Ohau and the Pukaki fires really showed the importance of support from MDC.

The EMO was also selected to assist FENZ with the flooding response deployment in New South Wales. However, in the end the deployment did not go ahead as the situation on the ground did not require further assistance at that time.

Future work planning

· Develop EOC staff quick guide notebooks.

· Develop Etext system for staff/ call out and messaging.

· Develop Welfare Volunteer quick guide notebooks.

· Plan the Fairlie Multi agency workshop for February.

· Redesign and update the Community Resilience Plans and evacuation zoning for Fairlie Tekapo and Twizel.

· Update and print the ‘ARE YOU READY’ publication.

· Purchase promotional equipment for Public Education – Pens, banners, bottles, emergency supply equipment.

· Quote to install a generator plug for Tekapo Community Hall. Investigate to see if the Tekapo portable generator can be utilised at the AMP Showgrounds (Owen Hunter)

· Investigate the purchase of Civil Defence Centre response equipment for Fairlie, Tekapo, Twizel Aoraki Mt Cook.

· Schedule and arrange EOC function training for the year. Include specific function training with Timaru and Waimate.

· Organise MDC’s presence at the Mackenzie A&P Show. This will include a multi-agency site with FENZ, Police, St John, Civil Defence and Neighbourhood support.

· Plan for the AF8 Roadshow.

Conclusion

The primary objective of current workstreams is to ensure we have the resources (trained staff, equipment, procedures and relationships with other response agencies) to be able to activate an EOC if required and operate for the initial stages of an event, if required.

Development of our Community Response Teams is ongoing, and planning/procurement is underway to ensure they have the resources they require available locally to enable them to provide immediate and effective assistance while other resources are mobilised.

Workstreams are underway to ensure we have up to date information on the key risks in the region and that information is shared with other response agencies and the providers of utilities, infrastructure and other key services.

The new Civil Defence legislation will include a requirement Council to have a process for recovery planning and management, a component of which will be involvement of mana whenua. We have opened discussions with local rūnanga and will be developing this workstream in the coming months.

Ordinary Council Meeting Agenda 31 January 2023

7.12 Engineering Update

Author: John Mackie, Engineering Manager (Acting)

Authoriser: David Adamson, GM, Operations, Planning and Regulatory Services

Attachments: 1. Performance Measures Interim Results - December 2022 ⇩

Staff Recommendations

1. That the report be received.

Background

This report updates Council on matters relating to Councils Engineering infrastructure services and previously went to the Engineering and Services Committee.

ENGINEERING MANAGER OVERVIEW

1.1 Summary

1.2 Personnel

Advertisements for a number of vacant positions within the Engineering team have continued to run over the December- January period with a modest response to date. Several short-listing interviews have been conducted. The three positions currently at market are for the Engineering Manager, Roading Manager and Roading Officer.

1.3 Three Waters Transition

Further information has been prepared for the Department of Internal Affairs and the Three Waters National Transition Unit this month, relating to various workstreams including the Stormwater workstream and operational stocktake.

1.4 Engineering Standards

Work on the development of a new code of practice for “Engineering Standards for Subdivisions and Developments” has progressed. We are grateful for the support of QLDC who have provided their full set of standard engineering drawings that Mackenzie District Council can modify to suit local conditions and practices.

1.5 Road Legalisations

Advertising has commenced seeking living relatives of the former owners of Siegerts Road and Perambulator Lane in Kimbell. These advertisements are required to run for a period of three months as part of the process of taking the land for roads, under the provisions of the Public Works Act (1981).

1.6 Road Stopping Request NZDF

A request has been received from the New Zealand Defence Force to undertake the stopping of unformed legal roads that pass-through Defence Force land in Tekapo. A separate Council report is being prepared on this request and to establish a formal policy for stopping roads in the Mackenzie District.

2 THREE WATERS

2.1 Water Supply

Modelling of the Ring main in Twizel to determine the optimum size of water mains has been completed and Beca are updating the design package accordingly.

A contract to construct three bulk water filling stations in each of the main townships has been awarded to Whitestone, who have commenced work on procuring the components to construct these facilities.

Cleaver Earthworks from Otago will commence construction of a new security fence around the Twizel water treatment plant in mid-January 2023, that will provide an additional level of protection for the drinking water assets at this site.

The formal contract award and kick off meeting with successful tenderer, Filtec, for the Fairlie water treatment plant construction occurred in mid-December. Filtec’s tender for this work was awarded at a price of $ 6,441,917.88.

There was a boil water notice issued to the Allandale rural water supply scheme after a high intensity rain event on 1 December 2022, caused very high turbidity water to enter the reticulation system and caused the residual chlorine levels fall below acceptable limits. The notice was lifted a few days later after bacteriological testing was returned clear.

2.2 Wastewater

The upsizing of the sewer line through the Fairlie golf course was substantially completed.

The installation and commissioning of the new generator at the Mackenzie Park pump station has been completed.

2.3 Stormwater

A tender has been called for the construction of a new stormwater line to run along Alloway Street, to deal with the high flows of stormwater that come down Ayr Street and from the back of the medical centre. Tenders will close on 20 January 2023.

The resource consent application for Fairlie’s stormwater is with ECAN awaiting approval.

Staff met with a representative from the Department of Internal Affairs National Transition Unit on 15 December, to provide a summary of stormwater assets and key risks and issues relating to the potential transfer of stormwater assets through the 3 Waters reform process.

3 TRANSPORT

3.1 Routine Maintenance

Routine grading continued over the Christmas break in the Ashwick/Clayton area, this area will be finished this week, before moving onto Mackenzie Pass, Haldon and Lilybank, the boat ramps were all completed prior to Christmas,

The second round of mowing will start late January and spraying and vegetation control is being monitored with intersection clearing for visibility being undertaken due to the excessive growth this year.

Signage upgrades around the district are progressing well with Haldon Road and Godley Peaks Road were completed early January, there were some damaged signs in Twizel over the Christmas break,

The metalling program is well underway with Spur and Tondros roads completed in the first week back.

3.2 Reseal Programme

The 2022/23 Reseal Programme was substantially completed before Christmas but was interrupted by adverse weather conditions. The remaining reseals will be undertaken in January 2023.

3.3 Flood Damage Repairs

Another severe weather event occurred on 23 December 2022, causing widespread damage to roads and bridges, particularly in the Fairlie area. The approach to the Station Creek on Plantation Road was washed out and emergency repairs are in progress.

Plantation Road bridge over Station Creek.

(23 Dec 2022).

This occurred less than a month after a similar event occurred on 30 November 2022 and caused significant damage in Fairlie, Ashwick Flat, Kimbell, where there was surface flooding and debris around bridges. Albury was also affected but not to the same extent.

4. DEVELOPMENT ENGINEERING

4.1 Private Developments in Progress

A substantial number of subdivision engineering approvals have been received and processed issued in recent weeks and great deal of development work is now underway across the district. Engineering Approvals were issued to:

The T3 Development in Tekapo off Lakeside Drive, where the developers hope to be completed by 7 July 2023. A subsequent amended design is also under review.

Mackenzie Park Stage 6 and 7 were issued for this residential development in Twizel. Work is in progress and contractors are targeting a resurfacing finish date of 15 May 2023.

Tussock Bend Stage 7 development in Twizel. Work is in progress and contractors are also targeting a resurfacing finish date of 15May 2023.

A residential subdivision development at 50 Regent St Fairlie. Resurfacing finish date 15May 2023.

A subdivision development at 22 North West Arch, with a resurfacing finish date 15May 2023.

Gall Street subdivision development Fairlie, with a resurfacing finish date 15May 2023.

Morelea Farms Limited subdivision in Clayton Road Fairlie. Programming physical works. No program date finalised.

4.2 Miscellaneous Development Activity

Twizel Town Centre Access Construction

A Building consent has been issued for this project and plans prepared for the upgrade of the pedestrian ramp. The work is programmed to be completed this year with an anticipated start date of late February 2023.

UFB2 Fibre Installation Twizel, Tekapo, Fairlie

· All sites physical works completed in all towns.

· The fibre installation walk-over was competed in Fairlie.

· Twizel, Tekapo post installation walk-over still to be completed.

· When walk-overs are fully completed, the 2-year defects liability period commences.

MDC Minor Improvements

· Landscaping and tree planting for the concrete shared footpaths was competed.

Conclusion

Temporary arrangements for the backfilling of key roles within the Engineering division remain in place while we conduct a recruitment drive to fill the key positions of Engineering Manager, Roading Manager and Roading Engineering Officer. This has enabled the Council to continue to meet the service levels that are expected by the community over the busy summer period and continue to deliver significant infrastructure projects within the district.

Ordinary Council Meeting Agenda 31 January 2023

7.15 Pukaki Airport Update

Author: Fiona McQuade, Manager - Property & Commercial

Authoriser: Murray Dickson, GM - Strategic Financial Management and Commercial Services

Attachments: 1. Pukaki Airport Operations Officer Report Jan 2022 ⇩

Purpose of Report

This report is to inform the Council about current matters concerning Pukaki Airport.

Staff Recommendations

1. That the report be received for information.

Background

This report contains an update about the Pukaki Airport's current matters and developments for the period August 2022 to 31^st December 2022.

LANDING STATISTICS AT PUKAKI AIRPORT

We receive AIMMS (Automated Intelligent Movement Monitoring system) landing reports each month. Inflite and Aviation Adventures continue to account for the majority of landings for the period July-December 2022.

It is noted that:

1. During December 2022, the airport had 315 movements, an increase of 189% from 109 for the same month last year;

2. For the last 12 months, there were 2,124 movements, a decrease of 14% from 2,459 for the same period in the previous year;

3. Local airspace analysis shows that during December 2022 there was 120% more airspace activity compared to the same month last year;

4. 4710 radio calls received for the month. 1 call, on the quietest day, (20-Dec) 464 calls, on the busiest day, (28-Dec) and 151 calls. The daily average for December Friday is the busiest day of the week.

The Airport Operations Officer has will be connecting with surrounding flying clubs and aviation training schools to support relationships and future landings at Pukaki Airport. A quote for an instrument approach to be installed at Pukaki Airport is being investigated.

Landing Fees

The new landing fee structure was introduced in August 2022 whereby landings are to be paid (based on weight) within 3 working days of landing, otherwise an invoice will be sent and will include a $15 administration fee.

Noticeable patterns of behaviour have been observed as a result to this change to fees and charges for landings. Namely:

1. It is noted landings not on the monthly AIMMS call register are being paid for. This suggests either incoming calls are not being made or the calls are not correctly captured by AIMMS;

2. A number of calls are invoiced to pilots who have not landed on or around Pukaki Airport.

As a result of this the Airport Operations Officer is working with AIMMS to consider options, solutions and pricing to address these anomalies.

Airport Operations Officer Report/Update

The Operations Officer’s report is attached.

James Leslie has been contracted for 12 months as Pukaki Airport Operations Officer effective 1^st December 2022. James acted as support to the Manager, Property and Commercial from the termination date of the previous Airport Operations Manager to the new contract taking effect. James’s experience as an aviator, past Deputy Mayor and Ward Councillor and leadership has provided a solid basis for work completed to date and identified work programmes for Pukaki Airport going forward.

Contact information with AIP, CAA and AIMMS have been updated to include James’s contact information.

Pukaki Airport Master Plan (PAMP) and district plan aviation strategy

The current District Plan includes an Aviation Strategy and this needs to be reviewed as part of the overall District Plan review in 2023. A draft initial scope has been created. The next steps are for a briefing with the new General Manager Strategic Financial Management and Commercial Activities, then finalise a draft scope and identify expert external resource and a project plan.

The Council also is seeking as a priority, to complete a Master Plan for Pukaki Airport (Pukaki Airport Master Plan – PAMP).

We are considering advisory groups for both PAMP and the Aviation Strategy comprising internal and key external stakeholders.

Pukaki Airport Financials

Attached are the financials for the Pukaki Airport.

Initial 2023/24 budgets are being worked on with allowance for increases in the following areas (over and above inflationary increases:

1. PAMP consultancy expenses

2. Upgrade of terminal furniture

3. Additional mowing and rolling due to increase grass growth

Pukaki Airport Contaminated Landfill – OHAU FIRE

This project to remediate the contamination in the Pukaki Airport Landfill as a result of dumping of contaminated landfill from the Ohau Fires in 2020.

Current Council costs are $32,864 and estimates forward are another $130,000. A meeting with ECAN took place in September 2022 with a commitment from ECAN to revert on a cost sharing arrangement. Previous agreement was reached with Waitaki Mayor on a 1/3 cost sharing arrangement. A meeting with the General Manager of Tricorp is yet to take place.

The next steps for this project are as follows (costs to date: $32,864):

1. Draft resource consents have been completed;

2. Costings for disposal of the contaminated waste have been received;

3. Agreement on cost sharing between the parties;

4. Apply for consents;

5. Implement consents (disposal of waste);

6. Future estimated costs: (remediation, consenting and compliance) - $130,000

Other Matters

· Airport weather cameras and wifi installation at the terminal building is now complete.

· Incident reporting – there was an incident reported at the Airport on Friday 22^nd December 2022 when the front wheel of an Inflite plane collapsed during taxiing for take-off. Nobody was injured or hurt in this incident, airport property remains intact, although some minor damage to the runway. A NOTAM was issued when the incident took place.

· A meeting with Alpine Energy to address power boxes placed over section accesses took place on the 13 January 2023. The Manager Property & Commercial acted as mediator to this discussion between Alpine Energy and the land owner. Alpine Energy will provide costs for the shifting of the affected boxes and revert with the landowner on next steps.

Ordinary Council Meeting Minutes 13 December 2022

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Description automatically generated

Unconfirmed MINUTES

Ordinary Council Meeting

13 December 2022

MINUTES OF Mackenzie District Council
Ordinary Council Meeting
HELD AT THE Council Chambers, Fairlie
ON Tuesday, 13 December 2022 AT 9.30am

PRESENT: Mayor Anne Munro, Deputy Mayor Karen Morgan, Cr Murray Cox, Cr Kerry Bellringer, Cr Scott Aronsen, Cr Phillipa Guerin, Cr Rit Fisher, Cr Matt Murphy

IN ATTENDANCE: Angela Oosthuizen (Chief Executive), David Adamson (Acting General Manager Operations), Alexis Kereikeepa (General Manager People, Customer and Cultural Relationships), Chris Clarke (General Manager Information, Engagement and Community Development), Murray Dickson Online (General Manager Strategic Financial Management and Commercial Services), Arlene Goss (Governance Advisor), Sandy Hogg (Finance Manager), Sue Wilkins (Communications Advisor), Pete Dawson (Three Waters Contractor), John Mackie (Engineering Manager – Acting), Angie Taylor (Solid Waste Manager), Geoff Horler (Utilities Manager).

1 Opening and Karakia

The Mayor opened the meeting and gave a karakia. There was nobody wanting to speak in the public forum.

2 Apologies

There were no apologies.

3 Visitors

There were no visitors.

4 Declarations Of Interest

Cr Guerin noted she owned land associated with the Burkes Pass and Fairlie Water Treatement Plant issue, however she did not have a pecuniary interest in this matter.

5 Bereavements

The Mayor noted the following bereavements and a minute of silence was observed:

Johan Klisser (Han) passed away peacefully on 9th November 2022, aged 95. Much loved husband of Janna (Jenny) for 66 years. Loved father of Helen, Edward, Jacqueline, Sarah and their respective partners. Loved Grandad of his 9 grandchildren and 1 great grandchild. Han came to New Zealand as a refugee 71 years ago where he and Jenny built new lives from ashes and adversity. He lost his Mum, Dad and younger brother in Auschwitz. He is the man who brought Vogels bread to New Zealand. When he and Jenny sold the business 30 years later they bought Haldon Station on the shores of Lake Benmore. They have owned Haldon Station for 31 years.

Miles Michael Knubley: On Tuesday, November 8, 2022, passed peacefully at Margaret Wilson Rest Home, Timaru; aged 88 years. Dearly loved and treasured husband of the late Felicity. Cherished father of Christopher and Peter, and respected father-in-law of Ruth. Adored grandfather of Philip.

Andrew Wayne Milne (Wayne): After a courageous battle, surrounded by his loving family at Hospice South Canterbury, on Saturday, October 1, 2022. Aged 76 years. Loved husband of Patsy. Dad and father-in-law of Hamish and Sarah, Andrew and Ang, Charlotte and Jimmy, and loved Grandad.

6 Mayor's Report

6.1 Mayoral Activities Report

The Mayor noted that Cr Aronsen had been unaware of the water zone committee’s interest in the wilding pine issue at the Tekapo Regional Park and she hoped her report answered his questions on this matter.

Cr Cox said some good progress had been made on the wilding pine plan and this would go out for public consultation at the end of February. This would include a new management plan for the park. One of the biggest issues would be budget to do this work.

The Mayor said she and the CEO had travelled to Christchurch for a discussion on the Future for Local Government report. There were only five councils represented from Canterbury at the meeting. The sector is overwhelmed at the moment with reform. The chief executive said a comment was made at the meeting that the sector was feeling disrespected by central government.

The Mayor also noted she had attended the Timaru courthouse to be sworn in as a Justice of the Peace. This was to enable her to conduct citizenship ceremonies and other duties.

Cr Bellringer said it was nice to see a recent letter from the Mayor published in the Twizel Update.

7 Reports

7.1 Chief Executive Report - November to December 2022

The chief executive took her report as read. She said the timelines had slipped a little on the annual plan and auditors would arrive on March 14, so it was important to work hard between now and then.

A draft Annual Report would be shared with the councillors later in the day. This was very draft and still contained errors. Councillors could read this over the Christmas break.

Regarding ‘Better Off Funding’, this was government funding linked to Three Waters. David Adamson updated the meeting on legal advice that was received yesterday regarding the situation if council accepted this funding. He would need to come back to the councillors on this matter. This was $1.5 million available at stage one, with four stages totalling $5.5 million.

The Mayor asked if councillors were comfortable with pulling back on the clause that was subject to dispute. Cr Cox and Cr Morgan felt it was best to “take the money and use it as we see fit”.

Regarding the aged care project, Cr Cox updated the current status of this project and answered questions. There was further discussion on the needs of aged people in the district. Questions included how the council would facilitate and support the priorities for aged care.

Council has employed a Three Waters transitional manager and she would be introduced to councillors. Staff have been providing information with regards to financial, human resources and infrastructure needs. The chief executive said the workload next year would be quite challenging for staff, given the needs of this transition and the annual plan and other priorities. Just while sitting in this meeting there had been two emails arrive from central government requesting work.

The Mayor said the demands were at the point of being disrespectful. This was affecting the wellbeing of staff and she was concerned about it. Cr Aronsen asked if the council could express this to the Minister directly. The chief executive said it wasn’t just Three Waters but also RMA reform and other changes. The Mayor was happy to write a letter to the Minister and the councillors agreed.

The wellbeing of staff was raised by Cr Morgan. She asked if any casual staff could be brought in to temporarily lessen the load. This would still involve training, and finding accommodation was a problem in the district.

David Adamson updated the meeting on an email just received from the Department of Internal Affairs. It said the Better Off Funding agreement could not be altered as requested by council.

The Mayor asked if RMA reforms would make things easier in the long term, as they appeared to be very complex. The view was that they would not make processes go faster or more efficiently, which was the aim of the legislation.

The chief executive apologised for the mistake in the remuneration pool and this was corrected by passing the resolution below.

The council then looked at the rest of the information in the chief executive’s report. Customer services reporting was being improved. The chief executive was pleased with the progress being made on health and safety.

Resolution 2022/91

Moved: Cr Phillipa Guerin

Seconded: Cr Matt Murphy

1. That the report be received for information.

Carried

Resolution 2022/92

Moved: Cr Scott Aronsen

Seconded: Deputy Mayor Karen Morgan

2. That previous resolution of the Council dated 8 November as regards the Councillor remuneration be amended to reflect the remuneration pool for the Councillors as $207,000. The Councillors remuneration will be amended from $29,162.83 to $28,526.83 and the deputy mayor remuneration will be amended from $36,475 to $35,839.

Carried

7.2 Carry Forwards

The Mayor read out the main points of this report. Cr Cox said the more that was carried over, the less work was done in the next year. This meant the council’s ability to do new things was lessened.. The chief executive said Audit NZ queries us every year on achievability. Need a hard look at the annual plan on what was achievable.

Cr Adamson said there was a need to bring new councillors up to date on current projects.

The Mayor asked if it was possible for council to track these carry forwards over the next six months. Yes, they would be included in capital projects tracking going forward.

Cr Morgan asked if there was a target for achieving this work. David Adamson said ideally the target was 100%, but sometimes things happened that did not fall within the financial year.

Resolution 2022/93

Moved: Cr Matt Murphy

Seconded: Cr Kerry Bellringer

1. That the report be received.

Carried

Resolution 2022/94

Moved: Cr Murray Cox

Seconded: Cr Matt Murphy

2. That Council confirms the requested carry forward of the budgets detailed in this report from 2021/22 into 2022/23.

Carried

Resolution 2022/95

Moved: Cr Rit Fisher

Seconded: Deputy Mayor Karen Morgan

3. That Council confirms in principle the requested carry forward of the capital budgets detailed in this report from 2021/22 and 2022/23 into 2023/24, noting that these will be formally confirmed in the 2023/24 Annual Plan.

Carried

7.3 Development of Intranet for Mackenzie District Council

This report was to request unbudgeted funds to develop and deploy an intranet for staff use.

Chris Clarke spoke to this report. He said it has been noted in the staff survey that internal communication was a key issue. This request was to bring forward a piece of planned work to meet a specific need. It was originally budgeted for the 2023/24 year.

Cr Bellringer asked about the contractor. They currently supply the platform for the council website.

Cr Aronsen said he was concerned that money was flying out the door. Could it be delayed? Yes.

Cr Cox said currently IT services are well over budget. Was some work being done looking at all the systems and what they would cost over the next few years? Would there be further requests for unbudgeted funds next year?

The chief executive spoke in support of current IT efforts and changes. For the first time there was a clear road map of where we are going and it was all being done on a “shoe strap” budget.

Cr Aronsen asked for a workshop on IT including how the system works.

Cr Murphy said there was budget for this in the next financial year, so was it imperative that it be done now? No. If approved now it would be ready for deployment by March/April. If left to the next financial year it would be over a year away.

Resolution 2022/96

Moved: Cr Kerry Bellringer

Seconded: Cr Murray Cox

1. That the report be received.

Carried

Resolution 2022/97

Moved: Cr Kerry Bellringer

Seconded: Deputy Mayor Karen Morgan

2. That Council approves the unbudgeted sum of $42,032 to develop and deploy an intranet for Mackenzie District Council.

Carried

Cr Aronsen abstained from voting

7.4 Waste Minimisation and Mangement Report

Solid waste manager Angie Taylor was introduced and provided an introduction to solid waste services in the district.

She answered questions from the councillors on various details in her report. Cr Morgan supported extending the opening hours of the Twizel Resource Recovery Park. Cr Bellringer asked for signage at camping spots so tourists were aware they could drop off their rubbish at the recovery park.

David Adamson explained that this change to hours would improve customer service within the current budget.

The subject of bins blowing over in the wind and spreading rubbish was raised by Cr Murphy. Bin clips are on the way and will be installed on red bins when they arrive.

Resolution 2022/98

Moved: Cr Matt Murphy

Seconded: Cr Murray Cox

1. That the Waste Minimisation and Management report be received.

Carried

Resolution 2022/99

Moved: Deputy Mayor Karen Morgan

Seconded: Cr Scott Aronsen

2. That Council grants approval for the change in level of service to extend the opening hours at the Twizel Resource Recovery Park by 2hrs for 7 days per week, with new opening hours to be 10am to 4pm daily.

Carried

7.5 Meeting Schedule for 2023

The purpose of this report was to advise Council of the Schedule of Meetings for the Mackenzie District Council, Council Committees and Community Boards for 2023.

The chief executive noted that every Tuesday would be a workshop day, even if not noted on the calendar. She asked for this to be added to the A3 copy and that they be laminated and sent out.

Resolution 2022/100

Moved: Cr Kerry Bellringer

Seconded: Cr Matt Murphy

1. That the report be received.

Carried

Resolution 2022/101

Moved: Cr Scott Aronsen

Seconded: Cr Kerry Bellringer

2. That the calendar attached to the agenda, showing the meeting dates for 2023, be adopted by Council.

Carried

Item 7.11 was brought forward in the meeting to allow Chris Clarke to speak to the report and then pop away to be Santa Claus on the Village Green.

7.11 Council Update: Information, Engagement & Community Development.

The Mayor asked for acronyms to be explained to the new councillors. Chris Clarke explained GIS, EDRMS, and ALGIM.

No nominations have yet been received for the Tekapo community board by-election, but the closing date is December 22.

An overview of the IT system would come back to a workshop. The Mayor asked for business cards for the Mayor and councillors and the governance advisor agreed to organise it.

Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution 2022/102

Moved: Cr Scott Aronsen

Seconded: Cr Matt Murphy

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter 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 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

11.1 - Award of Contract #1307 for the Design and Build of the Fairlie Water Treatment Plant

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

11.2 - Contract with ChristchurchNZ

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Carried

Resolution 2022/103

Moved: Cr Phillipa Guerin

Seconded: Cr Murray Cox

That Council moves out of Closed Meeting into Open Meeting.

Carried

During the public excluded session Council resolved to communicate the following resolutions in the public part of the meeting.

Resolution 2022/93

Moved: Cr Murray Cox

Seconded: Cr Kerry Bellringer

1. That the report on the awarding of contract #1307 for the Design and Build of the Fairlie Water Treatment Plant be received.

Carried

Resolution 2022/94

Moved: Cr Murray Cox

Seconded: Cr Kerry Bellringer

2. That Council approves the awarding of Contract #1307 to Filtec Ltd. for the Fairlie Water Treatment Plant project in line with the final evaluation report recommendation, with a contract value of $6,441,917.88.

Carried

Resolution 2022/95

Moved: Deputy Mayor Karen Morgan

Seconded: Cr Kerry Bellringer

3. That Council agrees to communicate Resolutions 2022/93-95 in the public part of the meeting.

Carried

7.6 Council Monthly Financial Report - September and October 2022

Finance Manager Sandy Hogg went over the details in the financial report.

Cr Aronsen asked about development contributions and discussion followed on what these included, and how far back they had been reconciled. Cr Cox said this matter was supposed to come back to council. The chief executive said work had been completed up to June 2022 and it would come to council.

Cr Morgan asked about the Fairlie Peace Tree maintenance. David Adamson said he would like to finish this work. The cost of working on the main road was quite expensive. A budget was needed.

The chief executive said there was also a need to look at personnel costs, as these were high.

The Mayor asked if councillors were happy with the level of financial reporting. Yes.

Resolution 2022/104

Moved: Mayor Anne Munro

Seconded: Deputy Mayor Karen Morgan

That the monthly financial report for October 2022, for Mackenzie District Council, be received.

Carried

The meeting adjourned for lunch at 12.30pm and reconvened at 1.15pm.

7.7 Quarterly Portfolio Report - Bancorp Treasury Services

Finance manager Sandy Hogg spoke to this report. She said Miles O’Connor from Bancorp would visit council next year to update the councillors on investments.

Cr Morgan asked about the level of term deposits and timeframes. Most term deposits were for six to nine months. Cr Aronsen asked about the investment with the China Construction Bank. This investment was taken out years ago and matured in June 2023. Cr Aronsen asked why Council was investing money with a Chinese bank given their human rights record. Sandy Hogg said the decision to invest happened before her time and she did not know why it was agreed.

Resolution 2022/105

Moved: Cr Kerry Bellringer

Seconded: Cr Scott Aronsen

1. That the report be received.

Carried

7.8 Engineering Manager's Report

The Mayor introduced this report and engineering staff joined the meeting.

John Mackie said there were three vacancies to fill in the engineering department and there were some hopeful opportunities on the horizon. He then outlined the current projects being carried out in the department.

Geoff Horler outlined the main points of his report. Questions were asked about Lyford Lane - would this be challenging? No this would be a pressure system, not gravity fed. The water table would be challenging but possible to work with.

Reports were being prepared on water supply options for remote communities. There would need to be some consultation with those communities and this would come back to council.

Has there been any update on the Downlands connections for Albury? Mr Horler said he hasn’t heard anything. Timaru District Council was doing this work. Will make enquiries and come back to Cr Fisher on this.

Further discussion took place on subdivision standards. And work on water supplies at camping spots in the district, including at Haldon Arm.

At this point David Adamson circulated a letter from the Department of Internal Affairs, and the legal opinion related to signing ‘Better Off Funding’ agreement. He asked for a resolution from council. Council has previously resolved to use the funding, provided DIA accept a clause requested by some councils under Communities for Local Democracy. DIA is saying they won’t accept the clause.

The Mayor asked if there was an appetite for the Mayor and CE to sign this without the clause being included. The only council that may turn this down is Waimate. Other councils have signed the agreement, including Timaru.

Mr Adamson said if there was a change of government the council could pick up the $1.5 million and might not get the rest. If National repealed the legislation would they ask for the money back? This was unlikely.

Cr Fisher moved and Cr Cox seconded the following resolution:

That Council approves and delegates sign off to the Mayor and CE the uptake of ‘Better Off Funding’, noting that there was no ability to include the clause from Communities for Local Democracy.

Carried, Cr Aronsen asked for his vote against to be noted.

Resolution 2022/106

Moved: Cr Rit Fisher

Seconded: Cr Murray Cox

That Council approves and delegates sign off to the Mayor and CE the uptake of ‘Better Off Funding’, noting that there was no ability to include the clause from Communities for Local Democracy.

Carried

Cr Aronsen voted against the motion

7.9 Community Facilities and Services Operations Report

This report gave Council an overview of activities within the parks and community facilities area.

Community Services Officer Tom O’Neil joined the meeting. He went through the highlights of the report. Cr Aronsen asked if a digger could clean up the track up Manmade Hill before Christmas. This will be discussed further offline.

Resolution 2022/107

Moved: Cr Phillipa Guerin

Seconded: Cr Matt Murphy

1. That the Community Facilities and Services Operations report be received.

Carried

7.10 Planning and Compliance and Monitoring Department Update

Planning and Regulatory Manager Aaron Hakkaart joined the meeting. He said Council was continuing to meet statutory deadlines in the planning area. There was an increase in activity in compliance and dog control due to the employment of a new staff member in Twizel. Another officer joined the department on Thursday, making the regulatory department fully staffed.

Staff Recommendations

That the information be noted.

8 Community Board Recommendations

8.1 Minutes of Twizel Community Board Meeting - 14 November 2022

Resolution 2022/108

Moved: Cr Kerry Bellringer

Seconded: Deputy Mayor Karen Morgan

1. That the Minutes of the Twizel Community Board Meeting held on Monday 14 November 2022 be received.

2. That Council notes the following resolutions passed by the Twizel Community Board:

a) That That the Twizel Community Board chooses the ‘First Past the Post’ voting system to elect a chairperson and deputy chairperson.

b) That Tracey Gunn be elected chairperson of the Twizel Community Board.

c) That Jan Spriggs be elected deputy chairperson of the Twizel Community Board.

d) That the Twizel Community Board approves funding of $4,700 from the Twizel Township project budget towards the cost of the artwork on the Swimming Pool wall, arranged by TPDA.

e) That funding of $3,495 from the Twizel Township project budget be approved for the purchase of a tennis net.

f) That a grant of $100 be approved to the Twizel Area School towards a student prize for the end of year assembly.

g) That a grant of $500 be approved to the Twizel Plunket Society towards operating costs of the play group and toy library.

h) That a grant of $500 be approved to the Twizel Trap Library towards the costs of trapping equipment.

i) That a grant of $96 be approved to Retire Twizel/Jakes Hardware towards the cost of venue hire for public meetings.

j) That the Twizel Community Board agrees to meet six-weekly at the Twizel Events Centre Lounge, on a Monday at 5pm in summer and 4pm in winter.

k) That the Twizel Community Board adopts the attached Code of Conduct for Elected Members.

l) That the Twizel Community Board adopts the Mackenzie District Council Standing Orders without amendment.

Carried

8.2 Minutes of Tekapo Community Board Meeting - 16 November 2022

Resolution 2022/109

Moved: Cr Matt Murphy

Seconded: Deputy Mayor Karen Morgan

1. That the Minutes of the Tekapo Community Board Meeting held on Wednesday 16 November 2022 be received.

2. That Council notes the following resolutions passed by the Tekapo Community Board:

a) That the Tekapo Community Board chooses the ‘First Past the Post’ voting system to elect a chairperson and deputy chairperson.

b) That Steve Howes be elected chairperson of the Tekapo Community Board.

c) That a grant of $170 be approved to the Lunar Event Organisers towards the cost of hiring the Tekapo Hall.

d) That the Tekapo Community Board agrees to meet six-weekly at the Tekapo Hall Meeting Room on a Monday at 3pm.

e) That the Tekapo Community Board adopts the Mackenzie District Council Standing Orders without amendment.

f) That the Tekapo Community Board adopts the attached Code of Conduct for Elected Members.

Carried

8.3 Minutes of Fairlie Community Board Meeting - 17 November 2022

Resolution 2022/110

Moved: Cr Murray Cox

Seconded: Cr Matt Murphy

1. That the Minutes of the Fairlie Community Board Meeting held on Thursday 17 November 2022 be received.

2. That Council notes the following resolutions passed by the Fairlie Community Board:

a) That the Fairlie Community Board chooses the ‘First Past the Post’ voting system to elect a chairperson and deputy chairperson.

b) That Angela Habraken be elected chairperson of the Fairlie Community Board.

c) That Damon Smith be elected deputy chairperson of the Fairlie Community Board.

d) That a grant of $250 be approved to the Fairlie Heritage Museum towards promotion of the museum’s Crank Up day.

e) That a grant of $250 be approved to the Fairlie Heritage Museum towards advertising the New Year’s Day parade in the Timaru Courier.

f) That a grant of $250 be declined to the Fairlie Heritage Museum towards the New Year’s Day parade and activities on the Village Green.

g) That a grant of $250 be approved to the Tweed and Fur Ball Committee towards hall hire.

h) That a grant of $250 be approved to Mackenzie College towards the costs of hall hire for the Young Performers Concert.

i) That the Fairlie Community Board support the removal of selected trees along the southern boundary of the Fairlie Cemetery as identified in the attached arborists report of 7th September 2022.

j) That the Fairlie Community Board adopts the attached Code of Conduct for Elected Members.

k) That the Fairlie Community Board adopts the Mackenzie District Council Standing Orders without amendment.

Carried

9 Confirm Council Minutes

9.1 Minutes of Council Meeting - 8 November 2022

Cr Guerin asked for a correction noting that her son was not an employee of the Mayor, but Cr Guerin herself is the employee.

Resolution 2022/111

Moved: Cr Scott Aronsen

Seconded: Cr Kerry Bellringer

That the Minutes of the Council Meeting held on Tuesday 8 November 2022 be received and confirmed as an accurate record of the meeting with the change noted above.

Carried

The Meeting closed at 2.09pm.

The minutes of this meeting were confirmed at the Ordinary Council Meeting held on 31 January 2023.

...................................................

CHAIRPERSON