Notice of Meeting:

I hereby give notice that an ordinary meeting of the Dunedin City Council will be held on:

 

Date:                             Monday 23 January 2017

Time:                            9.00am

Venue:                          Edinburgh Room, Municipal Chambers,

                                      The Octagon, Dunedin

 

Sue Bidrose

Chief Executive Officer

 

Council

PUBLIC AGENDA

 

MEMBERSHIP

 

Mayor

Mayor Dave Cull

 

Deputy Mayor

Cr Chris Staynes

 

Members

Cr David Benson-Pope

Cr Rachel Elder

 

Cr Christine Garey

Cr Doug Hall

 

Cr Aaron Hawkins

Cr Marie Laufiso

 

Cr Mike Lord

Cr Damian Newell

 

Cr Jim O'Malley

Cr Conrad Stedman

 

Cr Lee Vandervis

Cr Andrew Whiley

 

Cr Kate Wilson

 

 

Senior Officer                               Sue Bidrose, Chief Executive Officer

 

Governance Support Officer      Pam Jordan

 

 

 

Pam Jordan

Governance Support Officer

 

 

Telephone: 03 477 4000

Pam.Jordan@dcc.govt.nz

www.dunedin.govt.nz

 

 

 

 

 

 

 

Note: Reports and recommendations contained in this agenda are not to be considered as Council policy until adopted.

 


Council

23 January 2017

 

 

 

ITEM TABLE OF CONTENTS                                                                   PAGE

 

1        Introduction                                                                                              4

2        Apologies                                                                                                  4

3        Confirmation of Agenda                                                                              4

4        Declaration of Interest                                                                                5     

Reports

5          Draft 2017/18 Annual Plan Budget Material                                                    11

6        Draft 2017/18 Budget - Water and Waste Group                                            31

7        Emissions Trading Scheme Liabilities and Proposed Carbon Management Policy     39

8        Draft 2017/18 Budget - Solid Waste                                                             49

9        Update on the Tertiary Precinct Safety and Accessibility Upgrade                       57

10      Draft 2017/18 Budget - Transport Group                                                      63

11      Draft 2017/18 Budget - Parks and Recreation Group                                       70

12      Draft 2017/18 Budget - Property                                                                 89

13      Draft 2017/18 Budget - Arts and Culture Group                                              96

14      Draft 2017/18 Budget - Customer and Regulatory Group                                107

15      Te Ao Tūroa Environment Strategy Funding                                                 137

16      Review of the Allocation of Funding to Applicants to the Biodiversity Fund          143

17      Draft 2017/18 Budget - Community and Planning Group                                 156

18      Draft 2017/18 Budget - Enterprise Dunedin                                                  168

19      Draft 2017/18 Budget - Corporate Services                                                 174

20      Draft 2017/18 Budget - Corporate Support Services                                      180

21      Draft 2017/18 Budget - Waipori Fund                                                         186

22      Draft 2017/18 Budget - Investment Account                                                190                

 

 


Council

23 January 2017

 

 

 

1     INTRODUCTION

 

2     Apologies

At the close of the agenda no apologies had been received.

3     Confirmation of agenda

Note: Any additions must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.


Council

23 January 2017

 

 

 

Declaration of Interest

Department: Civic and Legal

 

 

 

 

EXECUTIVE SUMMARY  

1      Members are reminded of the need to recognise and declare interests and to manage any conflicts between those interests and their role as an elected representative.

2      Elected members are reminded to update their register of interests as soon as practicable, including amending the register at this meeting if necessary.

RECOMMENDATIONS

That the Council:

a)     Notes/Amends if necessary the Elected Members' Interest Register attached as Attachment A; and

b)     Confirms the proposed management plan for Elected Members' Interests.

 

Signatories

Authoriser:

Kristy Rusher - Manager Civic and Legal 

Attachments

 

Title

Page

a

Elected Members' Register of Interests

7

  



Council

23 January 2017

 

 

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Council

23 January 2017

 

 

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Council

23 January 2017

 

 

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Council

23 January 2017

 

 

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Council

23 January 2017

 

 

Reports

 

Draft 2017/18 Annual Plan Budget Material

Department: Community and Planning and Finance

 

 

 

 

EXECUTIVE SUMMARY  

1      This report provides commentary on the budget material presented in the agenda for the 23 January 2017 Annual Plan Council Meeting.

2      Annual Plans are completed under revised legislation and are exception-only documents focused on changes from the relevant year in the Long Term Plan. The budgets for the 2017/18 year have been updated and changes are described in this report.

3      The draft budget for 2017/18 includes an overall rate increase of 2.99%.  This is in line with the limit set in the Financial Strategy. Budget updates incorporated in the draft budget include timing changes to the capital expenditure programme in Transport and Property in the 2016/17 and 2017/18 years.  Maintenance costs are increased, reflecting increased costs arising from contract renewals and the need to address maintenance of facilities.

4      The changes made to budgets are not significant or material meaning a consultation process is not required. Community engagement will explain why consultation is not required and indicate what is planned and programmed in the 2017/18 year.

5      In the third year of an LTP, work on the Annual Plan and development of the next LTP run concurrently. Staff plan to utilise the engagement process to introduce and lead into the new LTP.

6      The engagement process will provide opportunities for the community to provide feedback on the draft budgets for 2017/18 to the Council.

RECOMMENDATIONS

That the Council:

a)    Approves the draft 2017/18 budget as shown/amended in Attachment A.

b)    Confirms the proposed community engagement process for the 2017/18 Annual Plan budget, allowing work to proceed on development of engagement material and a detailed engagement plan for subsequent approval by the Council.

 

 


 

BACKGROUND

Annual Plan process

7      The Annual Plan is a core part of the local government planning and public accountability framework as shown in the diagram below. Completed in the second and third years of the three year LTP cycle, an Annual Plan is a ‘slice’ from the LTP and forms the link between the LTP and the process of setting rates for each year.

8      Amendments made to Local Government Act 2002 (LGA) in August 2014 changed the nature of the Annual Plan process.  The Annual Plan is now an ‘exceptions only’ document focused on significant or material changes from year concerned in the LTP. The revised legislation also repealed the requirement to undertake a special consultative procedure when consulting on an annual plan, unless a formal amendment to the LTP is being made.

·           If there are no significant or material changes between the LTP and proposed annual plan, a Council is not required to consult on their draft budget unless they choose to do so.

·           If not consulting, a Council is however required to communicate with the community about the reasons for that decision.

·           A council has to adopt an annual plan each year regardless of whether consultation is undertaken or not. The plan document will consist of the annual plan budget and funding impact statement for the year concerned along with rating base information and descriptions of any changes from the LTP.

9      The legislative changes removed duplications in consultation processes and reduced costs by not requiring information in the LTP to be reproduced in the Annual Plan unless it has changed. The purpose of consulting on Annual Plans is focused on any significant or material changes.

10    These changes reinforce the LTP’s position as the principal planning document in the Local Government planning framework.

11    Work on the development of the 2018-2028 LTP started in September 2016. An LTP takes a minimum of eighteen months to develop and consult on the required material which means this work overlaps with the completion of the 2017/18 Annual Plan.

Format of budget material

12    This year, for the first time, the material for discussion at the January Annual Plan Council Meeting is being distributed in an electronic format. Print copies can be made available upon request in the week immediately prior to the meeting.

13    Budget information for Council activities is presented in group reports within the agenda for the meeting rather than in a separate folder. The report groupings used for budget information are the same as those used for financial reporting and are slightly different from those used in the 2015/16 – 2024/25 Long Term Plan (LTP).

14    The agenda is ordered to allow reports with implications for group budgets to be considered immediately before the group budget report concerned.

15    All budget material is draft.

16    Budget material and commentary relates to Dunedin City Council activity only. Financial information for the wider Council group of companies is not required as part of the Annual Plan or LTP.

17    The Draft budget is attached to this report as well as the detailed capital expenditure programme.

Consideration of strategic fit, significance and materiality

18    All decisions made at the January Annual Plan Council meeting need to be considered in terms of fit with the purpose of local government, the Council’s strategic framework and level of significance or materiality of the decision. The Council’s Significance and Engagement Policy guides this consideration. The staff assessment of these matters is outlined in the ‘summary of considerations’ section of each of the reports.

DISCUSSION

19    This report supplements the budget material contained in group reports providing a commentary on the draft budgets for the 2017/18 Annual Plan.

Budget overview                                                                

20    The Financial Strategy sets an annual rate increase limit of 3% unless there are exceptional circumstances. The proposed budget for 2017/18 delivers an annual rate increase of 2.99%.

21    The draft budget was developed by staff over a three month period from September to November 2016 guided by budget parameters to deliver an overall budget increase of 3% or lower.

22    The budget process highlighted several matters that impacted our ability to reach the 3% rate increase limit set in the Financial Strategy and required attention.  These issues will be addressed further in the next LTP 2018-2028. These include capacity to deliver capital expenditure, maintenance costs, and rates affordability.

Capacity to deliver capital expenditure

23    The timing of the capital programme included in the LTP in Transport and Property has been re-phased in the 2016/17 and 2017/18 years to more accurately reflect the capacity to deliver some projects. 

24    Work on some projects has been reprogrammed to reflect how much progress can realistically be achieved each month, factoring in changes such as new health and safety requirements introduced since the projects were originally planned or reflecting updated resource procurement and contractor availability/tendering timelines.

Maintenance Costs

25    Over the past two years there has been a review of, and increased community interest in, the management of maintenance contracts and backlogs of deferred maintenance and renewals.

·           The draft budget continues to address the backlog of water and waste renewals identified as an issue in the infrastructure strategy in the LTP.

·           Service reviews and scheduled contract renewals highlighted the importance of contract monitoring and supervision in delivering promised levels of service to the community.

26    These issues have been acknowledged and resolved. There are visible results from contracts being more closely supervised and monitored.  For example, the central activity area (CAA) is cleaner and attended to more regularly.  Contractors are more visible in the city, especially the mud tank cleaning truck and street sweepers. This has come at a cost with contractors seeking higher prices in contract renewals.

27    Service reviews have highlighted deferred building maintenance in activities such as Parks and Recreation and Property. 

28    The net result of this is an increase in maintenance costs.

29    While this is not seen as significant in terms of this Annual Plan, it does mean that there will potentially be some hard decisions in the next LTP regarding levels of service and affordability.

Affordability

30    Dunedin City Council rates are in the lower quartile when compared with other Councils in NZ.

31    There is an opportunity cost relating to lower rates. Pressure has been put on our ability to deliver services at the levels promised while balancing periods of challenging budgetary issues and financial constraint.  As a result, deferred property and asset maintenance issues have started to emerge.

32    There is no ‘wiggle room’ left in the budget. If we want to add anything new to our work programmes, we will need to reduce spend elsewhere. There is always a tension in balancing affordability with community expectations.

33    The Financial Strategy sets a limit of 3% on rates increases; a higher rates increase would be inconsistent with this parameter.

34    The remainder of this report outlines the key budgetary changes.

Draft Operating Budget

35    The draft operating budget is attached (Attachment A). Explanations are provided below for all variances in excess of $1.000m. 


 

Revenue

Rates

36    Overall rates revenue has increased by $3.992m, which is 2.99% higher than 2016/17.  The main drivers of this increase are increases in maintenance and staff costs and the continued step-up in renewals expenditure in the Water and Waste group.

Fees and Charges

37    Fees and charges have been increased by 3% in most cases. The exceptions are activities where fees are set by statute, are linked to reviews of strategies, policies or by-laws or where increases would be a disincentive to utilisation/compliance.

38    Landfill fees in the Solid Waste activity have been increased by more than 3% in response to increasing Emission Trading Scheme (ETS) costs. Categories of waste attracting ETS costs have had user fees increased by an additional 8.5% on top of the 3% overall increase.

External Operating Revenue

39    The draft budgets show an increase in external operating revenue of $5.117m.  The main drivers are additional New Zealand Transport Agency (NZTA) subsidy, Landfill revenue and property rental and recoveries.

External Capital Revenue

40    The draft budgets show an increase in external capital revenue of $7.195m. This relates to the capital expenditure programme and includes additional revenue for Transport projects from NZTA and the central government funded Urban Cycle Fund.

Expenditure

Staff Costs

41    The draft budgets show an increase in staff costs of $2.614m. This increase incorporates a 2% increase across all staff salaries and an allowance for incremental steps.  The main changes over and above this are described in the table below.

a)     City Development – additional resources were included in the 2016/17 budget to assist with the Second Generation District Plan and Central City Plan.  These positions have been removed in the 2017/18 budget.

b)     Civil Defence – the staff budget for Civil Defence has been removed due to the establishment of a new Civil Defence and Emergency Management model.

c)     Council Communications and Marketing – an additional staff member has been included in this area to provide communications resource to the infrastructure group.

d)     Customer and Regulatory Services – an additional staff member has been included in this area following restructuring within Building Services.

e)     Enterprise Dunedin – an additional staff member is included in this area resulting from restructuring within Enterprise Dunedin.

f)     Investment Account – additional resources have been included in the budget pending activity reviews. The ramping up of expenditure on infrastructure needs to follow an initial investment in asset management, contract management and project management resources.

g)     Civic Leadership and Administration – provision has been made for an additional in-house lawyer.

h)     Olveston – the draft budget incorporates all costs for Olveston, including the staff costs.

i)      Solid Waste – the draft budget incorporates a City Custodian and an Education and Promotions Officer.

j)     Transport - one additional staff member has been included in the Network Development team for corridor access work.

Asset operations and maintenance / materials, supplies and services

42    The draft budget shows an increase in asset operations and maintenance costs of $7.794m and a decrease in materials, supplies and services costs of $1.240m.  The net increase of $6.554m incorporates the following changes:

·           Parks and Recreation - Parks and Recreation have renewed contracts to maintain Dunedin’s parks and reserves, cemeteries and trees.  The new contracts have resulted in an increase in cost.  In addition, building maintenance budgets have been increased due to the need to address deferred maintenance on Parks and Recreation assets, in particular recreation facilities such as gyms, toilets and changing rooms.

·           Transport - Roading maintenance costs have increased due to new maintenance contract prices.  Street cleaning costs in the central business district have also increased in order to maintain required service levels. An increase is included for new bus shelters, funded by the ORC.

Premises Costs

43    A rate increase of 3% has been included in the budget assumption for rates expenditure on Council owned buildings and utilities. However, any further impact resulting from the revaluation of properties may need to be addressed when further rates modelling work is completed in time for the January 2017 budget meeting.

Internal Charges

44    Internal charges have increased by $1.046m.  The main increases are from Business Information Services (BIS) due to increased expenditure needs and in Water and Waste as a result of increased landfill fees for sludge disposal. 

Depreciation

45    Depreciation expense has increased by $5.626m.  This is due to increases in infrastructure asset valuations completed at 1 July 2016.

Second Generation District Plan (2GP)

46    The Second Generation District Plan (2GP), which sets the rules for development within the city is nearing completion. When the 2GP project enters the appeals phase in mid-2017, legal expenses are likely to be incurred.  It is however difficult to quantify and budget for these costs. When incurred, the Executive Leadership Team will manage these costs within the overall Council budget.

Capital Expenditure

47    The total capital expenditure programme included in draft budget is $58.147m for the 2017/18 year.  This compares with $68.535m in the 2017/18 year of the LTP.

48    For the 2016/17 year, actual capital expenditure is forecast to be less than 2016/17 Annual Plan budget.

49    The reviewed timing has been incorporated in the Transport and Property areas.  Details of the changes are included in the relevant group reports.

50    The capital expenditure programme will be reviewed in its entirety as part of the development of the next LTP.  Issues relating to capacity, resourcing, affordability, ability to spend, deferred maintenance and renewals will be addressed within the constraints of financial strategy.

Comparison with Long Term Plan 2015/16

51    The 2017/18 budget is the third year of the Long Term Plan 2015/16 (LTP). Due to the nature of forecasts, a number of assumptions have changed since the LTP was developed.

52    The 2017/18 forecast included in the LTP has been compared to this draft budget.  A number of the differences follow on from and are consistent with the changes made to the 2016/17 Annual Plan budget.

53    Rates revenue is less than forecast in the 2017/18 year of the LTP.  The draft 2017/18 budget increases rates within the 3% limit set in the Financial Strategy.  The LTP forecast 5%.

54    External revenue is higher than forecast in the 2017/18 year of the LTP.  This is mainly due to the additional revenue now forecast for the Green Island Landfill.

55    Operational costs are higher than forecast in the 2017/18 year of the LTP.  The staff costs reflect additional resources and revised activity structures.  The additional operational costs also reflect the increase in maintenance costs.

56    Loan interest is lower than forecast in the 2017/18 year of the LTP and is consistent with the changes made in the 2016/17 Annual Plan.  It reflects reduced debt levels and reduced interest rate assumption.

57    Depreciation is higher than forecast in the 2017/18 year of the LTP due to the increase in valuation for infrastructure assets.

58    The Balance Sheet has been updated to reflect the 2015/16 Annual Report results, carry forwards and revaluation for 1 July 2016. 

59    Term loans are less than forecast in the LTP which is also consistent with the changes made in the 2016/17 Annual Plan.  This is due to proceeds from property sales, additional cash being applied to debt reduction and changes in timing of the capital expenditure programme.

Community engagement on draft budgets

60    Amendments to the LGA in 2014 mean local authorities are no longer required to consult on the Annual Plan if the plan “does not include significant or material differences from the content of the long term plan for the financial year to which the proposed annual plan relates”.

61    The updates made to the budgets for the 2017/18 year are not currently viewed as significant or material.

62    It is proposed to still carry out a community engagement process in April 2017 to inform key stakeholders and the wider community on the content of the draft 2017/18 budgets and to provide opportunities for feedback. This engagement process will also introduce and lead in to the LTP 2018-2028.

63    The focus of the community engagement will be on:

·           Describing any differences in draft budgets for 2017/18, including reasons for the differences and why they are not considered significant or material;

·           Reminding the community about the activities and projects that were included  in the LTP for the 2017/18 year and continue to be included in the draft budget; and

·           Foreshadowing the LTP 2018-2028 process and opportunities for community involvement.

64    Opportunities for community feedback on the draft budgets will be confirmed in a subsequent report.  The proposed community engagement activities will include:

·           Information sent to every Dunedin household;

·           Councillor face-to-face sessions open to all of the community;

·           Social media through Facebook and Twitter;

·           Networking with communities through Community Boards and other stakeholder groups; and

·           Web information and feedback process (as well as hard copy).

65    All of the community feedback and an analysis of the feedback will be provided to the Council for its consideration prior to adopting the Annual Plan 2017/18.  The feedback will also be used in the development of the LTP 2018-2028.

OPTIONS

66    Not applicable.

NEXT STEPS

67    Following confirmation of the proposed approach to community engagement by the Council, staff will develop an engagement document and a detailed engagement plan. This will be brought back to the Council for an initial review in late February 2017 and for final approval in March 2017.

68    Following the community engagement process, the community feedback will be provided to the Council in May 2017 to allow the Council to consider the community’s views on the draft budgets prior to adopting the 2017/18 Annual Plan in June 2017.

69    A budget update will be provided in May 2017 which will update the forecast for the 2016/17 year.  This will take into account progress on the capital expenditure programme.

70    If you have questions about the budget materials please email them to Vivienne Harvey Personal Assistant to the Chief Executive Officer. Responses will be provided to all Councillors no later than Friday 20 January 2017.

 

Signatories

Author:

Jane Nevill - Corporate Planner

Carolyn Allan - Senior Management Accountant

Authoriser:

Sue Bidrose - Chief Executive Officer 

Attachments

 

Title

Page

a

Draft Budget 2017/18

22

b

Capital Expenditure Programme

25

 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This report enables democratic local decision making and action by, and on behalf of communities; and meets the current and future needs of the Dunedin communities for good quality local infrastructure, public services and regulatory function in a way that is most cost effective for households and businesses.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

The Annual Plan is part of the Council’s strategic framework. Forecast budgets, projects and activities associated with the implementation of the other strategies are included in the Long Term Plan and reviewed in each Annual Plan Year.

Māori Impact Statement

There are no known impacts for tangata whenua. Engagement processes for the 2017/18 Annual Plan will need to ensure that there is opportunity for Māori to contribute.

Sustainability

The LTP contains content regarding the Council’s approach to sustainability. Major issues and implications for sustainability are discussed in the 30 year infrastructure strategy and financial resilience is discussed in the Financial Strategy. This is reflected in the consideration of content in each Annual Plan.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This report notes the requirements for an Exceptions-Only Annual Plan. Accordingly this report indicates changes to LTP and Annual Plan budgets for the 2017/18 year.

Financial considerations

The financial considerations are noted in the report.

Significance

The Council’s budgets for 2017/18 have been updated and compared with the forecast for the 2017/18 year in the LTP. There are no significant or material changes to 2017/18 budgets.

Engagement – external

The organisations involved in developing the budgets for 2017/18 are identified in the relevant reports.

Engagement - internal

The Executive Leadership Team, Finance staff, Policy staff and the Group and Activity Managers have been involved in developing the budgets and related financial information.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflicts of interests.

Community Boards

This material may be of interest to Community Boards.

 

 


Council

23 January 2017

 

 


 


 


Council

23 January 2017

 

 


 


 


 


 


 


Council

23 January 2017

 

 

 

Draft 2017/18 Budget - Water and Waste Group

Department: Community and Planning and Finance

 

 

 

 

EXECUTIVE SUMMARY  

1      This report provides the draft 2017/18 budget for the Water and Waste Group.   The Water and Waste Group includes the following activities:

·           Water

·           Wastewater

·           Stormwater

RECOMMENDATIONS

That the Council:

a)     Approves, for the purposes of community engagement, the draft 2017/18 budget relating to Water and Waste as shown/amended in Attachment A.

b)     Approves, for the purposes of community engagement,  the 2017/18 fees and charges for the Water and Wastewater activities as shown/amended in Attachment B.

 

operating budgets

Revenue

Rates

2      The draft budgets incorporate an overall increase in rates of $1.699 million to fund the scheduled step-up in renewals expenditure and increases in staff and operational costs.

External revenue

3      External revenue has increased by $253k due to an increase in water meter charges and an increase in lease and licence to occupy revenue, for example, Swampy Summit.

Expenditure

Staff costs

4      Staff costs have increased by $298k. This increase incorporates an additional staff member to read water meters, previously contracted out, as well as provision for salary increases.

Asset operations and maintenance costs

5      Asset operations and maintenance costs have reduced by $265k due to savings in chemical costs.

Materials, supplies and services

6      The budget for materials, supplies and services has reduced by $108k.  The main reason for this is the removal of the water meter reading contract costs which has been offset by an increase in staff costs.

Premises costs

7      Premises costs have increased by $151k, due mainly to increased rates expenditure.

Fees and levies

8      The budget for fees and levies has increased by $195k.  This includes an allowance for engineering consultancy support to develop a preliminary South Dunedin flood mitigation plan, condition assessment of critical rising mains, support for ongoing system improvements and the provision of legal work that cannot be accommodated within the in-house legal team.

Internal Charges

9      Internal charges have increased by $378k.  The main increases relate to sludge disposal costs, which have increased in line with the expected increase in landfill charges, and an increase in Fleet Operations charges due for an additional vehicle for a meter reader.

Depreciation

10    Depreciation has increased by $4.396 million due to an increase in the valuation of water and wastewater assets. 

Interest

11    The budget for interest has reduced by $111k.

capital expenditure Budget

12    There is no change to the capital expenditure programme.

Fees and charges

13    Fees and charges for activities in Water and Waste have been increased by 3%.  A copy of the group fees schedule is attached.

Service performance measures

14    There are no changes proposed to the measures and targets showing in the Long Term Plan 2015/16-2024/25 for Water and Waste in the 2017/18 year.

related reports

15    There are no related reports for Water and Waste.

 

Signatories

Author:

Jane Nevill - Corporate Planner

Carolyn Allan - Senior Management Accountant

Authoriser:

Laura McElhone  - Group Manager Water and Waste 

Attachments

 

Title

Page

a

Draft Budget 2017/18 - Water and Waste Group

35

b

Fees and Charges - Water and Waste Group

36

 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This report enables democratic local decision making and action by, and on behalf of communities; and meets the current and future needs of the Dunedin communities for good quality local infrastructure in a way that is most cost effective for households and businesses.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

The activities of Water and Waste primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The report indicates changes to the LTP and Annual Plan budgets.

Financial considerations

The financial considerations are detailed in the report.

Significance and materiality

There are no significant or material changes to the draft 2017/18 budgets for Water and Waste.

Engagement – external

There has been no external engagement in developing the budgets for Water and Waste.

Engagement - internal

The Executive Leadership Team, Finance staff, Policy staff and the managers of Water and Waste have been involved in developing the budgets and related financial information.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflict of interests.

Community Boards

This material may be of interest to Community Boards.

 

 


Council

23 January 2017

 

 


Council

23 January 2017

 

 

Proposed Fees and Charges 2017/18

Fees include GST unless otherwise stated.

 

2015/16

2016/17

2017/18

$

$

$

Wastewater

Network Contributions for a Sewer Connection

Where there has been no prior contribution to the existing network there will be a standard Network Contribution fee for all of the Dunedin City Council areas

5,000.00

5,000.00

5,150.00

Wastewater - Trade Waste Charges

The new charging model moves from three sets of unit rates for Trade Waste charging (one for each wastewater treatment plant catchment) to a single set of citywide unit rates. The new model introduces application fees based on customer category type.

City Wide Unit Rates

Volume per cubic metre

0.07

0.08

0.08

BOD5 per kg

0.07

0.08

0.08

NFR/TSS per kg

0.17

0.19

0.19

Compliance Monitoring, Re-Inspection and Consent Breaches

Staff per hour

105.00

108.15

111.00

Laboratory

 Variable Cost

 Variable Cost

Variable Cost

Mileage per km

 

 

 

Tankered Waste Charges per tonne

21.00

21.63

22.00

Consent Application Fee Category A

969.00

998.07

1028.00

Consent Application Fee Category B

321.00

330.63

340.00

Annual Fee

161.00

165.83

171.00

 

 


 

 

 2015/16

 2016/17

 2017/18

 $

 $

 $

Water

Installation of New Services

Charges for the installation of new services are determined on a case-by-case basis and are provided as a fixed price quote to applicants. Alternatively, customers can elect to undertake this work themselves at their own risk by engaging a Council Approved Water Supply Connection Installer. That installer will do all work apart from making the connection to the live water main, which will be undertaken by Council staff. A fee for making the connection will be charged.

Network Contributions

Where there has been no prior contribution to the existing network there will be a standard Network Contribution fee for all of the Dunedin City Council areas

          5,000.00

           5,000.00

           5,000.00

New 20mm diameter domestic water connection

  Quoted 

  Quoted 

 Quoted

Commercial or extraordinary water connection

  Quoted 

  Quoted 

 Quoted

Disconnection of water supply

             207.00

               207.00

               213.00

Annual supply charge (meter rental)

20mm nominal diameter

             140.00

               144.00

               148.00

25mm nominal diameter

              179.00

               184.00

               190.00

30mm nominal diameter

              199.00

               205.00

                211.00

40mm nominal diameter

             225.00

               232.00

               239.00

50mm nominal diameter

             456.00

               470.00

               484.00

80mm nominal diameter

             564.00

               581.00

               598.00

100mm nominal diameter

             595.00

               613.00

               631.00

150mm nominal diameter

             855.00

               881.00

               907.00

300mm nominal diameter

           1,110.00

             1,143.00

              1,177.00

Hydrant Standpipe

             552.00

               569.00

               586.00

Re-connection Fee - Includes the removal of water restrictors installed due to non-compliance of the water bylaw

              371.00

                371.00

               382.00

Special Reading Fee

               50.00

                 50.00

                 52.00

Backflow Prevention Programme

Backflow Preventer Test Fee

               88.00

                 91.00

                 94.00

Rescheduled Backflow Preventer Test  Fee

               52.00

                 53.00

                 54.00

Backflow programme - Incomplete Application Fees (hourly rate)

               39.00

                 39.00

                 39.00

Central Water Scheme Tariff for water sold by meter

Treated water per cubic metre

                  1.43

                    1.47

                    1.56

Bulk Raw Water Tariff to: Merton, Hindon, and individual farm supplies (per cubic metre)

                  0.11

                    0.11

                    0.11

Rural Water Schemes have differing capital and connection charges—please contact the Water and Waste Services Department for further information.

 

 


Council

23 January 2017

 

 

 

Emissions Trading Scheme Liabilities and Proposed Carbon Management Policy

Department: Community and Planning and Strategy and Governance

 

 

 

 

EXECUTIVE SUMMARY  

1      Changes to the New Zealand Emissions Trading Scheme (ETS) will double the quantity of carbon credits (‘NZUs’) the Council needs to meet it ETS landfill liabilities (from around 25,000 to more than 50,000 NZUs) by 1 January 2019. 

2      This impact of this is further exacerbated by changes to the cost of credits.  In anticipation of the changes, the market price of NZUs’ increased from around $7 in mid-2015 to $13.50 in April 2016. NZUs are now trading at around $18.50 per NZU.  An NZU price cap of $25 remains in place under the ETS.  

3      This report responds to a Council resolution – from May 2016 when the Council considered a report on the (then) anticipated phase-out of the transitional treatment (one-for-one central Government subsidy) for landfill emission liabilities under the ETS – requesting options to reduce the Council’s ETS liability.

4      Options include: further recovery of costs through landfill charges; reducing the quantity of emissions to which the ETS directly applies; minimising the per-unit cost of NZUs through prudent purchasing and surrendering decisions; avoiding deforestation (and subsequent ETS liabilities) of Council-owned forest land; and evaluating opportunities to cost-effectively create NZUs through Council activities, business opportunities and strategic carbon management practices.

5      A DCC Carbon Management Policy is proposed for adoption, which would govern the management and minimisation of the Council’s carbon liabilities.   

RECOMMENDATIONS

That the Council:

a)     Adopts the Carbon Management Policy attached to this report.

 

 

Background

6      The New Zealand Emissions Trading Scheme (ETS) was established by the Climate Change Response (Emissions Trading) Amendment Act 2008, as the foundation for the country's principal greenhouse gas emissions trading scheme.

7      The DCC has a specific liability under the ETS as a landfill operator.  The DCC must purchase or create enough NZUs to offset (the carbon equivalent of) methane emissions from its solid waste facilities and surrender these to the ETS administrator in May of each year to avoid statutory penalties. 

8      Since 2009 ETS participants from the liquid fossil fuels, industrial processing, stationary energy and waste sectors have been allowed to surrender one NZU for every two tonnes of emissions (i.e. a 50% surrender obligation).

9      On 26 May 2016 the Government announced this one-for-two transitional measure would be phased out.  From 1 January 2017 the surrender obligation will rise to 67%, then to 83% from 1 January 2018, and to 100% by 1 January 2019. 

10    The Council also has contingent ETS liabilities as a result of its direct ownership of forest land, for which the Council previously received allocated NZUs from the Government.  These direct holdings are in addition to forest land owned and managed by City Forests Limited (CFL), for which it also received allocated NZUs.  If the Council or CFL were to deforest this land, it may be liable for the purchase, offsetting or creation of the corresponding number of NZUs.  

11    Finally, the Council faces increased indirect costs arising from the ETS (e.g. through its purchase of energy).

12    In May 2016 the Council resolved:

“(Mayor Dave Cull/Cr Chris Staynes)

That the Council:

Requests a report back from staff identifying options for reducing Emissions Trading Scheme liability, no later than December 2016.

Motion carried (AP/2016/027)”

Discussion

13    A range of options to reduce the Council’s landfill ETS liabilities exist.

Landfill user charges

14    A first option is to recover ETS costs through user charges.  The purpose of the ETS is to encourage reductions in emissions, rather than the purchase of NZUs.  Accordingly, NZU pricing should be reflected in landfill charges as far as possible, to encourage waste minimisation by landfill users (but not so high as to encourage illegal dumping, which creates other costs).  In the context of the current 2016/17 Annual Plan, the Council increased the budget for the Solid Waste activity to reflect the increase NZU prices from $7 in mid-2015 to $13.50 in May 2016, and increased relevant landfill user charges to recover these costs. 

15    Since then the Government has confirmed the phase-out of transitional treatment of landfill ETS liabilities, and the NZU market price has further increased to around $18.50. The Council is yet to reflect the costs of increased NZU quantities required as a result of the ETS changes, or the latest market prices, in budgets or user charges.

16    The cost of the ETS changes based on indicative annual landfill emissions of around 50,000 tonnes is tabulated below over the phase-out period at the current budgeted price ($13.50), current market price ($18.50) and the ETS cap ($25.00):


 

DATE

01/01/2016

01/01/2017

01/01/2018

01/01/2019

PRICE       NZUs

25,000

33,500

41,500

50,000

Budget ($13.50)

 $337,500

 $452,250

    $560,250

  $675,000

Market ($18.50)

     $462,500

     $619,750

       $767,750

       $925,000

ETS Cap ($25.00)

        $625,000

        $837,500

   $1,037,500

    $1,250,000

17    Options for recovering actual costs will be addressed separately in the context of the Solid Waste activity budget for 2017/18. 

Landfill liability reductions

18    A second option is to reduce the quantity of landfill emissions to which the ETS directly applies.  Several potentially cost-effective actions previously reported to the Council (e.g. application for a Unique Emissions Factor, waste minimisation) are either being implemented or remain under consideration and development. 

Prudent purchase and surrender of NZUs 

19    A third option is to minimise the per-unit cost of NZUs through prudent NZU purchasing and surrendering decisions.  This report recommends the adoption of a proposed Carbon Management Policy (the Policy), as presented in Attachment A, to more clearly govern NZU purchases, sales and reporting, aligned to the Dunedin City Council Treasury Risk Management Policy (Commodities).

Preservation and creation of NZUs

20    A fourth option is to consider opportunities to preserve or create NZUs (e.g. enhanced forestry management practices or additional tree planting on Council land).  This will involve a degree of strategic innovation as well as risk, as the costs of preservation or creation must remain below the market value of NZUs for the activity to remain cost-effective.  The proposed Policy (Attachment A) requires staff to identify and consider such opportunities within current and proposed business activities.

Indirect ETS cost reductions

21    The Council may also mitigate future indirect costs of the ETS (e.g. embedded in energy costs or project delivery) by reducing the Council’s carbon emissions generally.  Again, the proposed Policy requires staff to identify and consider such opportunities.

22    The proposed Policy also aligns and addresses the Council’s other carbon management initiatives, objectives and obligations, including those outlined in the DCC Emissions Management and Reduction Plan, its participation in the Compact of Mayors, and its participation in the city-wide Energy Plan.   

Options

Option One – Adopt the proposed Carbon Management Policy (Recommended Option)

23    It is recommended the Council adopt the proposed Carbon Management Policy.

Advantages

·           Provides a policy framework for governing the management and minimisation of the Council’s ETS liabilities.

Disadvantages

·           May not meet all of the Council’s expectations. 

Option Two – Adopt a revised Carbon Management Policy

24    The Council may wish to revise the proposed Carbon Management Policy.

Advantages

·           May better meet the Council’s preferences for a Carbon Management Policy.

Disadvantages

·           None known. 

Option Three – Do not adopt a Carbon Management Policy (Status Quo)

25    The Council may decline to adopt the proposed Carbon Management Policy.     

Advantages

·           None known.

Disadvantages

·           The Council’s expectations for governing the management and minimisation of the Council’s ETS liabilities may be unclear.

·           The Council is exposed to heightened risk of (ETS) statutory non-compliance, and potential financial, reputational and business sector damage.

Next Steps

26    If approved, the Carbon Management Policy will be implemented by management, including the development of associated operational guidelines, roles and responsibilities, and reporting/ monitoring and assurance mechanisms.

 

 

Signatories

Author:

Bill Frewen - Senior Policy Analyst

Andrew Slater - Risk and Internal Audit Manager

Authoriser:

Maria Ioannou - Corporate Policy Manager

Sandy Graham - General Manager Strategy and Governance

Attachments

 

Title

Page

a

Proposed Carbon Management Policy

45

 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This proposal enables democratic local decision making and action by, and on behalf of communities, and to providing local infrastructure and it is considered good-quality and cost-effective.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

This proposal provides a policy framework for governing the management and minimisation of the Council’s ETS liabilities. The ETS is a national mechanism for participating in international climate change mitigation.  

Māori Impact Statement

This proposal has no known impacts for tangata whenua.

Sustainability

This proposal provides a policy framework for governing the management and minimisation of the Council’s ETS liabilities. The ETS is a national mechanism for participating in international climate change mitigation.  

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

This proposal provides a policy framework for governing the management and minimisation of the Council’s ETS liabilities, which have direct costs to ratepayers and/or landfill users, and implications for the management of landfill, forest and other assets. 

Financial considerations

The direct financial impacts of the ETS will be addressed separately in the context of the Solid Waste activity budget for 2017/18.

Significance

The significance of this proposal is assessed as medium, as it involves the management of considerable risks or costs either to ratepayers and/or landfill users (or both).

Engagement – external

This proposal has not been subject to external consultation as the Council’s ETS liabilities are established by law.  However, the public engagement during the development of Te Ao Tūroa – The Natural World: Dunedin’s Environment Strategy demonstrated strong public support for reducing city carbon emissions.

Engagement - internal

This proposal has been endorsed by all Groups expected to participate in the management and minimisation of the Council’s ETS liabilities.

Risks: Legal / Health and Safety etc.

This proposal provides a policy framework for governing the management and minimisation of the Council’s ETS liabilities.  Non-compliance with ETS requirements could expose the council to potential liabilities and costs greater than the costs of ETS compliance.

Conflict of Interest

There is no known conflict of interest associated with this proposal.

Community Boards

There are no known impacts for Community Boards associated with this proposal.

 

POLICY REGISTER

Department responsible:

 

Policy number:

 

Policy version:

 

Review date:

 

Contribution to strategic framework - specific priorities:

 

  


Council

23 January 2017

 

 

DCC Carbon Management POLICY

Category                          Finance

Type                               Policy

Approved by                     Council

Date Policy Took Effect       xxx

Last Approved Revision       N/A

Sponsor                           Group Chief Financial Officer

Responsible Officer            Group Chief Financial Officer

Review Date                     xxx

 

 

1       INTRODUCTION

1.1     The Dunedin City Council (DCC) Carbon Management Policy (‘this Policy’) reflects the following statutory and strategic instruments articulating the Council’s carbon emission obligations and commitments.

 

1.2     NZ Emissions Trading Scheme

 

1.2.1 The New Zealand Emissions Trading Scheme (ETS) is the New Zealand Government’s principal policy response to climate change.  The ETS was established by the Climate Change Response (Emissions Trading) Amendment Act 2008 in order to: “… provide for the implementation, operation, and administration of a greenhouse gas emissions trading scheme in New Zealand that supports and encourages global efforts to reduce the emission of greenhouse gases.”

 

1.2.2 The ETS currently includes the NZ forestry, energy, industrial process and waste management sectors. Participants in the ETS are required to purchase and/or 'surrender' approved carbon credit units in exchange for equivalent tonnes of carbon emitted or released into the environment.

 

1.3     Dunedin City Strategic Framework

 

1.3.1 The DCC has adopted a framework of eight key strategies, including Te Ao Tūroa: The Natural World, which establishes a commitment to reducing city carbon emissions.   As part of this commitment in 2015 the DCC became a signatory to the Compact of Mayors which involves reporting, planning and action towards reducing city carbon emissions.

 

1.3.2 Within Dunedin’s Economic Development Strategy, the Energy Plan is a Council-led city-wide initiative with amongst other goals, a goal of reducing city carbon emissions.

 

1.3.3 The internal DCC Emissions Management and Reduction Plan seeks to minimise the Council's direct carbon emissions.

 

1.4     This Policy also reflects the Council-wide commitment to sustainability and the principles of kaitiakitaka.

 

 

2       Policy PURPOSE

2.1     This Policy serves as a public commitment by the DCC to identify, manage and minimise carbon emissions.

 

2.2     This Policy seeks to ensure DCC continues to meet its statutory obligations with regard to carbon emissions and carbon credit trading activities, including in particular those responsibilities defined by the ETS.

 

2.3     This Policy also informs the effective management of all risks associated with DCC trading activities on the New Zealand and international carbon market, including fluctuations in emission unit prices and future liability exposure.

 

2.4     This Policy provides a clear set of guidelines by which the DCC shall manage its carbon management practices and associated business opportunities.

 

2.5     This Policy should be read in conjunction with the DCC Treasury Risk Management Policy (Commodities).

 

3       ORGANISATIONAL SCOPE

3.1     This Policy applies to:

 

3.1.1 All employees of the DCC, including temporary employees and contractors;

 

3.1.2 Any person who is involved in the operation of the DCC, including elected members, volunteers and those people with honorary or unpaid staff status;

 

3.1.3 Every business, service or activity of the DCC.

 

4                 DEFINITIONS

4.1     'Carbon Credit': Generic term for any carbon emissions trading unit representing one tonne of carbon dioxide equivalent (tCO²e). ETS-approved carbon credits include New Zealand issued units (NZUs) and Assigned Amount Units (NZAAUs). Carbon Credits may be purchased, sold, traded and/or offset against other carbon emitting activities on the carbon market as a means to manage an organisation's carbon footprint.

 

4.2     'Carbon Market': A system of carbon emissions trading that allows participants to buy and sell carbon credits and thereby manage their carbon footprints, targets and statutory responsibilities.

 

4.3     'Carbon Footprint': A formal measure of total CO2 emissions, calculated within a specific time period, organisation activity/ies or geographic boundary.

 

5                 Carbon Management PRinciples

5.1     The DCC shall at all times:

 

5.1.1 Consider the impact of current and proposed business activities upon the DCC’s and the city's carbon footprint, as well as associated statutory obligations and carbon emission reduction targets.

 

5.1.2 Identify and preference those business opportunities that seek to minimise or reduce carbon emissions through operational efficiencies, energy and environmental sustainability, and increased carbon offsetting and sequestration potential.

 

5.1.3 Consider and prioritise energy and carbon-efficient alternatives when planning capital expenditure projects, including in particular those pertaining to DCC Property, Transport, Parks and Recreation, and Three Waters activities.

 

5.1.4 Identify, assess and monitor the carbon emission profiles and activities of external DCC contractors and other business partners engaged in project or service delivery.

 

 

6       Carbon Management Responsibilities      

6.1     The DCC shall ensure appropriate delegated staff resourcing, responsibility and processes for responsible carbon management practices across all relevant business activities.

 

6.2     All DCC business units / teams shall ensure continued compliance with all applicable carbon emissions statutory obligations including the ETS, as well as DCC carbon management and emissions reduction initiatives, policies and procedures, staff responsibilities and delegations, financial practices and business activities.

 

6.3     Processes for the effective management and quantification of carbon emissions and ensuring protection against future liabilities (including those arising from business activities such as changes in land usage and deforestation, external market fluctuations and natural disasters) shall be established and maintained by Business Units/ teams, in collaboration with the DCC Finance Department and in accordance with the guidelines noted in this Policy.

 

6.4     All carbon credit transactions, including carbon market registration, credit purchases and sale/ transfers shall be undertaken with due probity and diligence by appropriately authorised staff and through accredited carbon market agents only.

 

6.5     Anticipated future liability and carbon credit risk exposure shall be established by relevant DCC departments in consultation with the DCC Finance Department, and reviewed no less than annually.

 

6.6     At a minimum, the DCC Finance Department shall maintain sufficient carbon credits to cover anticipated statutory obligations (including the NZ ETS) and future liability arising from DCC business activities, or alternatively allocate sufficient budget to purchase equivalent carbon credits on the carbon market.

 

6.7     Any decision to trade carbon credits, and/or offset liability shall reflect appropriate due diligence, be subject to appropriate DCC delegated approval processes, and consider all associated impacts including dividend and tax consequences.

 

6.8     Under no circumstances should DCC carbon credits be used for financial speculation. The DCC may take steps to realise value from carbon credits only if:

 

6.8.1   The transaction would result in a net benefit to the DCC, and;

 

6.8.2   Realising value from transactions will not compromise the DCC’s ability to meet its emissions targets, obligations and liabilities.

 

 

7       Reporting

7.1     Comprehensive carbon records shall be maintained by all relevant DCC departments that detail at a minimum business activity carbon emissions, carbon credit liabilities (ETS and other) and (current/ proposed) changes arising from business activities, carbon credit transactions (sale, purchase, surrender, offset) and emission reduction or management targets.

 

7.2     Carbon records will be monitored by the DCC Executive Leadership Team and the Financial Controller as required to ensure compliance with this Policy, an appropriate level of liability and risk management, and compliance with DCC carbon targets and obligations.

 

7.3     This Policy shall be subject to on-going review and updates as required to address changes in New Zealand and international carbon credit and emissions legislation and statutory obligations, and ensure alignment with DCC strategic objectives.

 

 

8       RELEVANT DOCUMENTS

8.1     Te Ao Tūroa: The Natural World – Dunedin’s Environment Strategy

 

8.2     Dunedin’s Economic Development Strategy and Energy Plan 1.0

 

8.3     DCC Emissions Management and Reduction Plan

 

8.4     DCC Treasury Risk Management Policy (Commodities)

 

 


Council

23 January 2017

 

 

 

Draft 2017/18 Budget - Solid Waste

Department: Community and Planning and Finance

 

 

 

 

EXECUTIVE SUMMARY  

1      This report provides the draft 2017/18 budget for Solid Waste.

RECOMMENDATIONS

That the Council:

a)     Approves, for the purposes of community engagement, the draft 2017/18 budget relating to Solid Waste as shown/amended in Attachment A.

b)     Approves, for the purposes of community engagement, the 2017/18 fees and charges for Solid Waste as shown/amended in Attachment B.

 

operating budgets

Revenue

External revenue

2      External revenue has increased by $1.251 million due to increased emissions trading scheme (ETS) costs needing to be recovered as well as an increase in volumes of waste to the landfill.

Internal revenue

3      Internal revenue has increased by $415k due to higher landfill disposal revenue from the Water and Waste Group for the disposal of sludge.  The increase is driven by the increase of prices at the landfill.

Expenditure

Asset operations and maintenance costs

4      Asset operations and maintenance costs have increased by $1.398 million.  Landfill contract costs have increased by $772k due to increased volumes of waste and an inflationary adjustment. ETS costs have increased by $509k based on anticipated market price ($25 per tonne) and anticipated waste volumes.

Fees and levies

5      Fees and levies have increased by $205k.  This provides funding for ongoing work on planning for the future of the landfill operation.  It also provides additional funding for the waste disposal levy paid to the Ministry for the Environment, which is based on waste volume.

Net Surplus/(Deficit)

6      The annual contribution to rates from Solid Waste has increased by $353k due to additional revenue and reduced capital expenditure requirements for the 2017/18 year.

capital expenditure Budget

7      No change to the capital expenditure programme.

fees and charges

8      Fees and charges for Solid Waste have been reviewed and adjusted to reflect increases to ETS costs and more clearly differentiate the fee groups where ETS is applicable.

9      Fees have increased by 3% in line with budget parameters and by a further 8.5% for fees where ETS costs apply.  A copy of the fees schedule is attached; fees where ETS costs do not apply are shown in bold blue font. Some fees are unchanged from 2016/17 or slightly reduced as a result of a review, for example fees for 100% vegetation loads. A copy of the fees schedule is attached.

Service performance measures

10    There are no changes proposed to the measures and targets showing in the Long Term Plan 2015/16-2024/25 for Solid Waste in the 2017/18 year.

related reports

11    There is a related report for Solid Waste: “Emissions trading scheme liabilities and proposed carbon management policy”.

 

Signatories

Author:

Jane Nevill - Corporate Planner

Carolyn Allan - Senior Management Accountant

Authoriser:

Laura McElhone  - Group Manager Water and Waste 

Attachments

 

Title

Page

a

Draft Budget 2017/18 - Solid Waste

52

b

Fees and Charges - Solid Waste

53

 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This report enables democratic local decision making and action by, and on behalf of communities; and meets the current and future needs of the Dunedin communities for good quality local infrastructure and public services in a way that is most cost effective for households and businesses.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

The activities of Solid Waste primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The report indicates changes to the LTP and Annual Plan budgets.

Financial considerations

The financial considerations are detailed in the report.

Significance and materiality

There are no significant or material changes to the draft 2017/18 budgets for Solid Waste.

Engagement – external

There has been no external engagement in developing the budgets for Solid Waste.

Engagement - internal

The Executive Leadership Team, Finance staff, Policy staff and the managers of Solid Waste have been involved in developing the budgets and related financial information.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflict of interests.

Community Boards

This material may be of interest to Community Boards.

 

 


Council

23 January 2017

 

 


Council

23 January 2017

 

 

Proposed Fees and Charges 2017/18

Bold blue font indicates 3% fees increase.

Black font indicates fees where ETS costs apply. These are increased by 3% plus  a further 8.5%.

Fees include GST unless otherwise stated.

 

2016/17
$

2017/18
$
3% Council incr
8.5% ETS

Waste Management - Solid Waste Landfill Charges

Landfill Charges – For all DCC landfills and transfer stations

Small Vehicle Charges

Non-DCC Refuse bag – per bag, (max size 80 litres)

                                 3.00

                                   3.50

Multiple bags will be charged at $3 each. The maximum charge would be the appropriate vehicle rate.

Car – small load

                               14.00

                                16.00

Car – large load

                               32.00

                                36.00

Wool pack per pack or part pack

                               14.00

                                16.00

Wheelie Bin per bin or part bin

                               14.00

                                16.00

Station wagon – small load

                               23.00

                                26.00

Station wagons – large load

                               51.00

                                57.00

Cars and single axle trailers, vans and utes – small load

                              34.00

                                38.00

Cars and single axle trailers, vans and utes – large load

                              64.00

                                72.00

Clay Cover (clay)

                   10.00

                    10.00

Note: Clay cover charges are subject to seasonal variation in line with day light saving time i.e. is taken free of charge during the warmer months. Cover is not accepted at Middlemarch Transfer Station

Cleanfill

                               19.00

                    21.00

Note: Cleanfill is not accepted at Middlemarch Transfer Station

Demolition

                               31.00

                    32.00

Note: Demolition Waste is not accepted at Middlemarch Transfer Station

Car tyres – each

                                 5.00

                      5.00

Vehicle bodies

                              82.00

                    84.00

Vegetation

Note: Mixed loads of vegetation and general waste must be clearly separable for composting and landfill disposal 

Car – small load (mixed load)

                               10.00

                                10.00

Car – small load 100% veg

 

                      9.00

Car – large load (mixed load)

                               23.00

                                24.00

Car - large load 100% veg

 

                    23.00

Wool pack 100% veg

                               10.00

                      9.00

Wheelie Bin per bin 100% veg

                               10.00

                      9.00

Station wagon – small (mixed load)

                               14.00

                                14.00

Station wagon – small 100% veg

 

                    13.00

Station wagon – large load (mixed load)

                               35.00

                                36.00

Station wagon – large load 100% veg

 

                    34.00

Car with single axle trailer, van or ute (small mixed load)

                               21.00

                                22.00

Car with single axle trailer, van and ute 100% veg (small load)

 

                    21.00

Car and single axle trailer, van and ute – (large mixed load)

                              44.00

                                45.00

Car and single axle trailer, van and ute 100% veg

 

                    42.00

Large Vehicle Charges

 

 

Charges by weight at the Green Island Landfill (Weighbridge ) per tonne

General solid waste per tonne

                             153.00

                               171.00

minimum charge

                              74.00

                               86.00

Green Waste per tonne (100% vegetation)

                              88.00

                    91.00

minimum charge

                              44.00

                    46.00

Clean fill per tonne (dry)

                               15.00

                    15.00

minimum charge

                               15.00

                    15.00

Clean fill per tonne

                              36.00

                    37.00

minimum charge

                              36.00

                    37.00

Cover per tonne

                                 5.00

                      5.00

minimum charge

                                 5.00

                      5.00

Demolition waste per tonne (no timber or organic material)

                              36.00

                    37.00

minimum charge

                               35.00

                    37.00

Public weigh (weigh only)

                               12.60

                    12.60

Charges by volume at transfer stations/landfills without a weighbridge (Middlemarch and Waikouaiti)

General solid waste per cubic metre

                              82.00

                                95.00

minimum charge

                              82.00

                                95.00

Vegetation per cubic metre

                              67.00

                    69.00

minimum charge

                              67.00

                    69.00

Special/hazardous waste

Sludges and liquids (solids content at least 20%) – per tonne

                            227.00

                             254.00

minimum charge

                             113.00

                              127.00

Sludges and liquids (solids content less than 20%) per tonne

                           284.00

                              319.00

minimum charge

                            142.00

                             160.00

Foundry sands per tonne

                              36.00

                    37.00

minimum charge

                              36.00

                    37.00

Contaminated soil – per tonne (low level)

                              36.00

                    37.00

minimum charge

                              36.00

                    37.00

Tyres (per tonne)

                            345.00

                  366.00

Oil (per litre)

                                  1.00

                      1.00

Household chemicals (inclusive of  Car small load fee)

                               13.00

                    16.00

Gas bottles (each)

                               10.00

                    10.00

Definitions: 

Cover:

Cover is clay, sand and soil, which is free of contaminants that may cause harm to human health or the environment.

Cleanfill:

Cleanfill is a natural material such as clay, soil and rock and other such materials as concrete, brick or products which are free of combustible or organic materials and are therefore not subject to biological or chemical breakdown.

Demolition:

Demolition is concrete, bricks, roading material, concrete pipes and earthenware pipes. The maximum size of demolition material is one metre in any direction. Material is to be clean, no asbestos, no rubbish, no individual steel pieces included and contain less than 10% organic material (eg vegetation, wood) by volume. Reinforcing steel protruding from concrete must be less than 500 mm in length.

Special/hazardous waste:

The following materials require special handling to protect both the environment and human health. Green Island landfill is the only landfill in the city consented for special and hazardous waste disposal. You must advise the booth operator on your arrival to the landfill that you have special or hazardous waste on board.

Special Waste:

Materials that may pose a risk to the environment or human health if not disposed of carefully and include animal carcasses, commercial sludge’s and bio-solids from septic tanks and the Council's waste water treatment plants.

Hazardous waste:

Materials that have the following properties; are flammable, explosive, oxidising, corrosive, toxic, eco-toxic, radioactive, infectious, mutagenic, carcinogenic, and teratogenic. Examples include solvents and industrial cleaning fluids, medical waste, agricultural chemicals and many industrial wastes.

Other Charges

 

 

e-Waste at the Recycling Centre 

 

 

TVs

As per recovery costs

As per recovery costs

Computer Monitors

Desktop computers, laptops, laptop batteries and peripherals (keyboard/mouse/external hard drives)

Printers, Faxes and Photocopiers – at Recycling Centre

UPS Networking equipment

After Hours Opening Fee

 

 

Opening Fee

                            433.00

                  433.00

Booth operation costs – per hour (plus any additional machine fees)

                              88.00

                    88.00

Refuse Collection

 

 

All Council-provided refuse collection services are ‘polluter pays’ with the authorised bags being available at a number of outlets throughout the city including supermarkets and dairies. The authorised bags are also available from Council Customer Service Agencies.

65 Litre bags

                                  2.65

                                   3.00

40 Litre bags

                                  2.50

                                   2.80

 

 


Council

23 January 2017

 

 

 

Update on the Tertiary Precinct Safety and Accessibility Upgrade

Department: Transport

 

 

 

 

EXECUTIVE SUMMARY  

1      The purpose of this report is to provide an update on the Tertiary Precinct Safety and Accessibility Upgrade project.

2      The Tertiary Precinct Safety and Accessibility Upgrade is an unfunded project in the 2015/16 – 2024/25 Long Term Plan.  This report summarises the work completed on this project and recommends that collaboration with the tertiary institutions continues and that staff report back to Council at the next Long Term Plan with options for implementation.

RECOMMENDATIONS

That the Council:

a)      Notes the update on the tertiary precinct safety and accessibility upgrade.

b)      Requests that staff report back to the 2018/2019 – 2027/28 Long Term Plan with funding and timing options to deliver the project.

 

BACKGROUND

3      The aim of the Tertiary Precinct Safety and Accessibility Upgrade would be to improve the safety and accessibility of the Tertiary Precinct, with particular emphasis on the streetscape and pedestrian/cycling environment.  The project is identified in the Dunedin City Integrated Transport Strategy (2013) as it would contribute to the vision and areas of focus (‘safety’ and ‘travel choices’) identified in the strategy. 

4      The project has been driven by the Tertiary Sector Steering Group (consisting of the CEO and Mayor from the DCC, the Vice-Chancellor of the University of Otago, and the CEO of the Otago Polytechnic).  The aims are in line with actions and priorities identified in the Tertiary Precinct Development Plan, which was developed and agreed by the partners in 2008.

5      At the Long Term Plan meeting in May 2015 the project was discussed and the following resolutions put and carried (MacTavish/Wilson):

"That the Council:

Continues to note the unfunded Tertiary Precinct Transportation project consulted on in the LTP consultation document as a line item in the 2015/16 – 2024/25 LTP.

Request staff continue to work with project partners, to scope funding requirements and timing, and report back in time for development of the 2018/21 – 2027/28 LTP."

6      Later in the meeting the projects were discussed again, and the following resolution was put and carried (MacTavish/Calvert):

“That the Council:

Request a report back in time for the 2016/17 annual plan process with more detail on the proposed scope, budget and timing of both:

-    The Mosgiel Town Centre Upgrade and

-    The Tertiary Precinct Safety and Accessibility Upgrade”

DISCUSSION

Project Objectives

7      The overarching objectives for the project were identified at a workshop with the Tertiary Precinct Steering Group as follows:

·           Establish the Tertiary Precinct as a destination (not a through route)

·           Establish future focussed, multi-purpose streets and an environment that enhances lifestyle as well as safety

·           Improve the pedestrian and cycling experience in and around the tertiary campuses

·           Establish improved network connections between tertiary campuses, Central City, harbour and Waters of Leith

·           Address existing and / or potential future safety issues

·           Maintain and improve wider transport network connections and functionality

8      In late 2014, the Tertiary Precinct Partners engaged consultants Chow Hill and Flow Transportation to develop the Tertiary Streets Improvement Options Report. The work was funded through a cost-sharing arrangement, with each of the three partners contributing a third of the cost.

9      The objectives of the Tertiary Streets Improvement Options Report were to;

·           establish an overall approach to improving open space amenity, character and associated precinct identity

·           address a number of safety and accessibility issues within the study area

·           identify short, medium and long term physical works projects and project interdependencies

·           identify a range of investment options; and provide recommendations for implementation. 

10    The Tertiary Streets Improvement Options Report was received by the Tertiary Steering and Planning Groups in January 2015.  Since that time the Tertiary Precinct Steering and Planning Groups have agreed at their meetings that their priorities for implementation are sections of Albany Street, Clyde Street, Union Street East, and Harbour Terrace (see Attachment 1 for map).  The concepts and cross sections are shown in Attachment 2, and artist’s impressions in Attachment 3.  The proposed changes are summarised in Table 2.

11    The Tertiary Precinct Steering and Planning Groups have agreed that the medium investment option is preferred.  The concept estimates for street changes at the medium investment level are in the region of $5-$7 million.  This does not include project management and developed design costs, which are estimated at $300,000.  Should the project proceed, cost sharing between the organisations is anticipated, but is yet to be negotiated.  The Partners’ have indicated a preference that any works be jointly planned and implemented, rather than completed ‘ad hoc’, but this arrangement has not yet been formally considered by the governance representatives of each organisation.

12    Targeted consultation with stakeholders in the area was carried out as part of the development of the concept plans (Sport Otago (representing Sports Clubs in the area), Blackhead Quarries, Forsyth Barr Stadium, Cerebos Greggs, Otago Regional Council and NZ Transport Agency).  Representatives from the University of Otago, Dunedin City Council and Otago Polytechnic were involved throughout.  However broad consultation is yet to take place with stakeholders or the wider community on the concept designs. 

13    Water and Waste Services are planning to renew pipes in the Union Street sections, and in Harbour Terrace, plus undertake repairs in Clyde Street.  Nothing is planned for Albany Street.  Work is due to commence in 2016/17.  However, there is some flexibility around timing, particularly if there is a confirmed improvement project proposed for the streets.  It is possible to delay the works such that they are completed by 2020/21 at the latest.

Funding

14    The costs of the initial concept development work were split equally between the three partners.  There is no cost sharing agreement in place between the three partner organisations for further work on this project.  Developed design, project management and construction cost sharing would need to be negotiated if the Council and partners decide the project is to proceed.

15    For Dunedin City Council, the project is in the Integrated Transport Strategy and in currently in the Long Term Plan as an unfunded item.

16    Otago Polytechnic has confirmed it has provisionally set aside $1.5m in its 10 year capital budget plan for the project but there is no confirmed plan or timeframe associated with this funding.

17    The University of Otago is supportive of the project, which has been demonstrated by previous contributions. While it does not have a specific budget identified it will be considered at the appropriate time in the future.

18    If the project were to proceed, there are different ways in which costs could be split between the organisations.  Consideration would need to be given to costs of developing the design, project management, detailed design, construction and ongoing maintenance/whole of life costs.

OPTIONS

19    As this is a report for noting there are no options to consider.

NEXT STEPS

20    Staff will continue to work with the Otago University and Otago Polytechnic staff to identify and deliver minor improvement projects in the precinct.

21    Work will commence on developing the designs, funding options and a potential delivery programme for the broader streetscape upgrade to be reported back to the 2018/19 – 2027/28 LTP.

 

Signatories

Author:

Richard Saunders - Acting Group Manager Transport

Authoriser:

Ruth Stokes - General Manager Infrastructure and Networks 

Attachments

There are no attachments for this report.

 


 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This matter relates to providing good quality, cost effective local infrastructure for Dunedin.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

 

The Tertiary Precinct Safety and Accessibility Upgrade would contribute to delivering the key city strategies by contributing to safety and accessibility within areas of high pedestrian activity and encouraging mode shift. A more attractive streetscape may bring economic benefits to the city particularly in terms of the attractiveness of the Tertiary institutions

Māori Impact Statement

There are no known impacts.

Sustainability

Making walking and cycling safer and more attractive options can contribute to sustainability. 

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The project is included in the LTP as an unfunded item. The next stage of work will be funded through existing budgets.

Financial considerations

There are no financial implications from this report, it is an update only.

Significance

Future changes to the Tertiary Precinct would be considered of medium significance and require public consultation. As there are no changes proposed at this time this report is considered of low significance.

Engagement – external

The Tertiary Precinct Partners have been engaged in the development of the Tertiary Streets Improvement Options Report. Sport Otago, Forsyth Barr Stadium, Cerebos Greggs, Blackhead Quarries, Otago Regional Council and NZ Transport Agency were also consulted as part of previous work.

Engagement - internal

City Development and Water and Waste departments have been consulted. Further consultation will be required during the planning phase.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflicts of interest.

Community Boards

No consultation has been undertaken with Community Boards. 

 

 


Council

23 January 2017

 

 

 

Draft 2017/18 Budget - Transport Group

Department: Community and Planning and Finance

 

 

 

 

EXECUTIVE SUMMARY  

1      This report provides the draft 2017/18 budget for the Transport Group.  

RECOMMENDATIONS

That the Council:

a)     Approves, for the purposes of community engagement, the draft 2017/18 budget relating to the Transport Group as shown/amended in Attachment A.

b)     Approves, for the purposes of community engagement,  the 2017/18 fees and charges for the Transport Group as shown/amended in Attachment B.

 

operating budgets

Revenue

Rates

2      Rates revenue in Transport has reduced for the 2017/18 year by $956k.  This change is the result of a reconsideration of capacity to complete programmed work within the timeframe of the 2016/17 and 2017/18 years.

External revenue

3      The external revenue budget has increased by $8.649 million.  Most of this increase relates to NZ Transport Agency (NZTA) subsidies for capital expenditure projects.

4      NZTA Operational Subsidy – an increase of $1.273 million relates to increases in expenditure, improved processes resulting in additional revenue and a budget shift from internal revenue.

5      ORC Bus Route Maintenance and Shelters – an increase of $258k for the recovery of expenditure on new bus shelters.

6      NZTA Capital Subsidy – an increase of $4.545 million reflects the scheduled increase in the capital expenditure programme in Transport, particularly the Portobello/Harington Point Road Safety Improvement Project.

7      Urban Cycleway Funding – an increase of $2.600 million of Government funding to go towards capital expenditure on cycleways.


 

Internal revenue

8      Internal revenue is reduced by $674k.  This was previously for the recovery of staff costs directly related to capital expenditure projects.  This revenue is now reflected in NZTA operational subsidies.

Expenditure

Staff costs

9      Staff costs have increased by $107k.  This increase incorporates the provision for salary increases and one additional staff member in the Network Development team for corridor access work.

Asset operations and maintenance / materials, supplies and services

10    Asset operations and maintenance expenditure has increased by $850k.  Roading maintenance costs have increased due to new maintenance contract prices and reflecting costs required to maintain service levels. An increase of $253k is included for new bus shelters. 

11    Offsetting these increases is a transfer of the vegetation control budget to Parks and Recreation and a reallocation of the energy budget for state highway lights and signals to energy costs.

Energy Costs

12    Energy costs have increased by $209k due to the reallocation of costs between maintenance and energy for street lights. 

Insurance

13    The allocation of insurance expenditure has increased by $148k based on the insured value of infrastructure assets.

Internal Charges

14    Internal charges have increased by $164k mainly due to additional BIS costs and for additional support from the Council Communications and Marketing Activity.

Depreciation

15    Depreciation has increased by $745k due to an increase in valuation.

Interest

16    Interest expense has increased by $252k reflecting the capital expenditure programme.


 

capital expenditure Budget

17    The following changes have been incorporated into the capital expenditure programme:

a)     Portobello/Harington Point Road Improvement – the following table provides the approved and anticipated spend for 2016/17 to 2018/19.

$m

Annual Plan 2016/17

Draft budget 2017/18

2016/17

10.3

3.0

2017/18

9.4

9.0

2018/19

 

7.7

Total

19.7

19.7

 

b)     LED Street Lights – the revised timing of expenditure on LED streetlights reflects the focus for the 2016/17 year being on planning and procurement with implementation planned for the following two years.  The following table provides the approved and anticipated spend for 2016/17 to 2018/19.

$m

Annual Plan 2016/17

Draft budget 2017/18

2016/17

3.0

1.0

2017/18

3.0

3.0

2018/19

 

2.0

Total

6.0

6.0

 

c)     Strategic Cycle Network – revised timing with the focus for 2017/18 on the Urban Cycleway Fund project, therefore delaying other cycle network budget to future years.  Delayed funding spread across three years.  The following table provides the approved and anticipated spend for 2016/17 to 2018/19.

$m

Annual Plan 2016/17

Draft budget 2017/18

2016/17

0.5

0.5

2017/18

2.0

0.0

2018/19

2.0

2.6

2019/20

1.4

2.1

2020/21

1.4

2.1

Total

7.3

7.3

 

d)     Central City Project – the urban amenity budget has been transferred from City Development so that all Central City budgets are in the same budget.

fees and charges

18    Fees and charges for Transport have been increased by 3%.  A copy of the fees schedule is attached.

Service performance measures

19    There are no changes proposed to the measures and targets showing in the Long Term Plan 2015/16-2024/25 for the Transport Group in the 2017/18 year.

related reports

20    There is a related report for the Transport Group: “Tertiary precinct safety and accessibility upgrade”.

 

Signatories

Author:

Jane Nevill - Corporate Planner

Carolyn Allan - Senior Management Accountant

Authoriser:

Ruth Stokes - General Manager Infrastructure and Networks 

Attachments

 

Title

Page

a

Draft Budget 2017/18 - Transport Group

68

b

Fees and Charges - Transport Group

69

 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This report enables democratic local decision making and action by, and on behalf of communities; and meets the current and future needs of the Dunedin communities for good quality local infrastructure in a way that is most cost effective for households and businesses.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

The activities the Transport Group primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The report indicates changes to the LTP and Annual Plan budgets.

Financial considerations

The financial considerations are detailed in the report.

Significance and materiality

There are no significant or material changes to the draft 2017/18 budgets for the Transport Group.

Engagement – external

There has been no external engagement in developing the budgets for the Transport Group.

Engagement - internal

The Executive Leadership Team, Finance staff, Policy staff and the managers of the Transport Group have been involved in developing the budgets and related financial information.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflict of interests.

Community Boards

This material may be of interest to Community Boards.

 

 


Council

23 January 2017

 

 


Council

23 January 2017

 

 

Proposed Fees and Charges 2017/18

Fees include GST unless otherwise stated.

 

 2015/16

 2016/17

 2017/18

 $

 $

 $

Transport

The fee to process a road stopping proposal (the applicant must also pay the actual costs involved in the stopping and the value of the land)

        845.00

        870.00

        896.00

Encroachments on road reserve (per annum)

New application establishment administration fee

          52.00

          52.00

          54.00

Site development

  7.5% of adjacent unimproved rated value  $/m2 

  7.5% of adjacent unimproved rated value  $/m2 

  7.5% of adjacent unimproved rated value  $/m2 

Residential – Single garage <25m²

         116.00

         119.00

         123.00

Residential – Double garage <50m²

        233.00

        240.00

         247.00

Commercial Use

 Negotiated based upon 2014/15 valuation plus 3% 

 Negotiated based upon 2015/16 valuation plus 3% 

 Negotiated based upon 2016/17 valuation plus 3% 

Consent application fee for non-standard sign and other uses

        201.00

        207.00

         213.00

Fill points for private fuel lines on road reserve (per annum)

          52.00

          52.00

          54.00

Overhead/Underground pedestrian road crossings

  Varies* 

  Varies* 

  Varies* 

*Crossings are on a ‘lease’ basis with payment being on a ‘fixed term’ basis or subject to a yearly review.

Corridor Access Requests (CAR)

Corridor Access Fee (incorporating the completion and maintenance inspections)

         287.50

         287.00

        296.00

Re-inspection Fee (Non-Conforming works)

         115.00

         115.00

         118.00

Penalty Fee for No/Unapproved CAR

         575.00

         575.00

        592.00

Openings less than 0.25m²

  No fee* 

  No fee* 

  No fee* 

Footpath (shallow transverse crossings)

  No fee* 

  No fee* 

  No fee* 

*Providing an application is submitted

 


Council

23 January 2017

 

 

 

Draft 2017/18 Budget - Parks and Recreation Group

Department: Community and Planning and Finance

 

 

 

 

EXECUTIVE SUMMARY  

1      This report provides the draft 2017/18 budget for the Parks and Recreation Group.   The Parks and Recreation Group includes the following activities:

·           Aquatic Services

·           Botanic Garden

·           Cemeteries and Crematorium

·           Parks and Recreation

RECOMMENDATIONS

That the Council:

a)     Approves, for the purposes of community engagement, the draft 2017/18 budget relating to Parks and Recreation as shown/amended in Attachment A.

b)     Approves, for the purposes of community engagement, the 2017/18 fees and charges for Aquatics; Cemeteries and Crematorium; and Parks and Recreation activities as shown/amended in Attachment B.

 

operating budgets

Revenue

Rates

2      The overall increase in the rates requirement for this group of activities is
$3.711 million.  The majority of this increase is in the Parks and Recreation budget to fund increases in contracts and building maintenance costs.

External revenue

3      Cemeteries and Crematorium – the revenue budget has reduced due to more accurate forecasting for burials and service fees.

4      Parks and Recreation – vegetation contracts previously included in the Transport budget have are now managed by the Parks and Recreation team.  As a result, subsidies from New Zealand Transport Agency are recorded in this budget which is the main reason for the increase of $344k in external revenue.

Expenditure

Staff costs

5      Staff costs have increased by $119k. This includes an additional Parks Officer to manage the Transport vegetation contracts as well as an allowance for staff salary increases.

Asset operations and maintenance costs

6      Asset operations and maintenance costs have increased by $4.040 million.  Parks and Recreation have renewed contracts to maintain Dunedin’s parks and reserves, cemeteries and trees.  The new contracts have resulted in an increase in cost.

7      Vegetation control was previously managed and funded within the Transport activity but is now managed by Parks and Recreation (see income note 4).

8      Building maintenance budgets have increased due to deferred maintenance on Parks assets, in particular recreation facilities such as gyms, toilets and changing rooms and buildings at the Botanic Garden.

Fees and levies

9      The budget for fees and levies has increased by $217k to provide contract auditing and external legal advice.

Grants and subsidies

10    A reduction in grants and subsidies expenditure of $537k reflects the removal of one-off budgets in the 2016/17 year for the Kings Hockey turf of $510k and the cricket scoreboard of $70k.

Internal charges

11    Internal charges have increased by $221k.  BIS charges represent $131k of this increase.

Depreciation

12    Depreciation increased by $338k.  This is mainly due to an increase in the valuation of playground equipment.

capital expenditure Budget

13    Botanic Garden - a 2017/18 year budget of $150k for the renewal of an entranceway sculpture and paving has been removed from the budget.

14    Cemeteries and Crematorium – a 2017/18 budget of $105k for the renewal of vehicle and pedestrian access ways has been removed from the budget because these renewals will now be undertaken within the Transport activity.

fees and charges

15    Fees and charges for activities in the Parks and Recreation group have been increased by 3%. A copy of the fees schedule for is attached. Changes to the Aquatic Services fees schedule are highlighted.  

Service performance measures

16    There are no changes proposed to the measures and targets showing in the Long Term Plan 2015/16-2024/25 for Parks and Recreation in the 2017/18 year.

related reports

17    There are no related reports for Parks and Recreation.

 

Signatories

Author:

Jane Nevill - Corporate Planner

Carolyn Allan - Senior Management Accountant

Authoriser:

Ruth Stokes - General Manager Infrastructure and Networks 

Attachments

 

Title

Page

a

Draft Budget 2017/18 - Parks and Recreation Group

74

b

Fees and Charges - Parks and Recreation Group

75

 

SUMMARY OF CONSIDERATIONS

 

Fit with purpose of Local Government

This report enables democratic local decision making and action by, and on behalf of communities; and meets the current and future needs of the Dunedin communities for good quality local infrastructure and public services in a way that is most cost effective for households and businesses.

Fit with strategic framework

 

Contributes

Detracts

Not applicable

Social Wellbeing Strategy

Economic Development Strategy

Environment Strategy

Arts and Culture Strategy

3 Waters Strategy

Spatial Plan

Integrated Transport Strategy

Parks and Recreation Strategy

Other strategic projects/policies/plans

The activities of Parks and Recreation primarily contribute to the objectives and priorities of the above strategies.

Māori Impact Statement

There are no known impacts for tangata whenua.

Sustainability

There are no known implications for sustainability.

LTP/Annual Plan / Financial Strategy /Infrastructure Strategy

The report indicates changes to the LTP and Annual Plan budgets.

Financial considerations

The financial considerations are detailed in the report.

Significance and materiality

There are no significant or material changes to the draft 2017/18 budgets for Parks and Recreation.

Engagement – external

There has been no external engagement in developing the budgets for Parks and Recreation.

Engagement - internal

The Executive Leadership Team, Finance staff, Policy staff and the managers of Parks and Recreation have been involved in developing the budgets and related financial information.

Risks: Legal / Health and Safety etc.

There are no known risks.

Conflict of Interest

There are no known conflict of interests.

Community Boards

This material may be of interest to Community Boards.

 

 


Council

23 January 2017

 

 


Council

23 January 2017

 

 

Proposed Fees and Charges 2017/18

Fees include GST unless otherwise stated.

 

 2015/16

 2016/17

 2017/18

 $

 $

 $

Aquatic Services

Definitions:

Concession rate: Current Community Services Card, Gold Card and Student Tertiary ID Card

The word 'Student' was omitted in error in  2016/17  and is reinstated

Child is recognised as anyone who has not left secondary school

Family is either 2 adults and 2 children or 1 adult and up to 4 children

CASUAL RATES - MOANA POOL

Swim

Adult Swim

             6.20

             6.50

             6.50

Concession Swim

             3.70

            4.00

            4.00

Child Swim

             3.10

            3.00

            3.00

Family Swim

           13.40

           14.00

           14.00

Child – Clubcard holder

             2.10

            2.00

            2.00

Toddler Time

            4.00

            4.00

            4.00

School Swim

             1.50

             1.50

             1.50

External preemployment swim test

 

 

          10.00

new

Moana Pool Hydro Slide

Family Swim and Slide

           28.80

          30.00

          30.00

Adult  Swim and Slide

           11.20

           11.50

           11.50

Concession  Swim and Slide

             7.80

            8.00

            8.00

Child  Swim and Slide

             6.20

             6.50

             6.50

Spectator

            0.50

            0.50

            0.50

Gym (includes swim)

Adult

           12.40

           13.00

           13.00

Concession

             7.40

             7.50

             7.50

Child (14yrs+)

             6.20

             6.50

             6.50

Group-fitness (includes swim)

Adult

             6.20

             6.50

             6.50

Concession

             5.10

             5.50

             5.50

Child

             5.10

             5.50

             5.50

MULTI-VISIT PASSES

Adult

Swim (12)

          62.00

          64.00

          64.00

Swim (30)

         148.80

         153.50

         153.50

Group-fitness (12)

          62.00

          64.00

          65.00

price change

Group-fitness (30)

 

 

         169.00

Added to reflect demand from customers

Concession

Swim (12)

           37.00

          38.00

          38.00

Swim (30)

           88.80

           91.50

           91.50

Group-fitness (12)

           51.00

           52.50

          55.00

price change

Group-fitness (30)

 

 

         143.00

Added to reflect demand from customers

Child

Swim (12)

           31.00

          32.00

 

Swim (30)

           74.40

           76.50

 

Group-fitness (12)

           51.00

           52.50

          55.00

Price change

SWIM MEMBERSHIPS

Note:  Membership specials may be run periodically throughout the year at the discretion of Aquatic Services

Adult

6 Month Membership

         236.90

        244.00

        244.00

12 Month Membership

         412.00

         424.50

         424.50

Concession

6 Month Membership

         142.10

         146.50

         146.50

Student Swim membership (valid 1 March - 30 November)

         195.70

         201.50

         201.50

Wording changed to reflect the time limited concession

12 Month Membership

         247.20

         254.50

         254.50

Child

6 Month Membership

         118.50

         122.00

         122.00

12 Month Membership

        206.00

         212.00

         212.00

ALL POOL PASSES (SWIM ONLY) (Annual Pass)

Adult

         473.80

         484.50

         484.50

Concession

         284.30

         314.50

         314.50

Child

         236.90

         272.00

         272.00

ALL POOL PASSES (GYM and SWIM) (Annual Pass)

Adult

 

        824.00

        824.00

Concession

 

         518.50

         518.50

Child 14yrs +

 

        442.00

        442.00

GYM MEMBERSHIPS (includes swim)

Note:  Membership specials may be run periodically throughout the year at the discretion of Aquatic Services

Adult

1 month membership

           80.34

          83.00

          83.00

3 Month Membership

         226.60

         233.50

         233.50

6 Month Membership

         426.40

        439.00

        439.00

12 Month Membership

         741.60

         764.00

         764.00

Monthly direct debit membership

           80.34

          83.00

          83.00

Concession

3 Month Membership

         136.00

        140.00

        140.00

6 Month Membership

         255.40

        263.00

        263.00

Student membership (valid 1 March - 30 November)

         329.60

         339.50

         339.50

12 Month Membership

        445.00

         458.50

         458.50

Child 14yrs +

3 Month Membership

         113.30

         116.50

         116.50

6 Month Membership

         213.20

         219.50

         219.50

12 Month Membership

         370.80

        382.00

        382.00

HIRE (a refundable deposit applies to all hire items)

Refundable Deposit

          20.00

          20.00

          20.00

Swim Togs (Hire)

            6.00

            6.00

            6.00

Towel (Hire)

            6.00

            6.00

            6.00

Gym Towel (Hire)

            2.00

            2.00

            2.00

Kayak (Hire)

            2.00

             2.50

             2.50

Kayak and Spray Skirt (Hire)

            6.00

            6.00

            6.00

BBQ and gas for 2 hours

           16.00

           18.00

           11.00

This increased from $10.50 to $16 in 2014/15 in error and has been adjusted down to the correct level

Lane Usage Fees per hour

Lane usage fee for recognised user groups during peak times at Moana Pool

Mon - Fri 6:00 am - 7:30am and 3:30pm - 7:30pm

Lane hire per hour for each lane (up to 6 lanes)

             2.10

             2.50

             2.20

note price change

Lane hire per hour for each lane over a total of 6 lanes

           10.30

           10.50

           10.50

Group activity - lanes barriers removed (use of half pool per hour)

           10.30

           10.50

           10.50

Pool Hire per hour (minimum of 30 min)

50m pool (includes competitor pool entry)

        264.00

         272.00

         272.00

School Swimming sports 50m (includes pool entry)

 

 

         136.00

new

25m pools (includes competitor pool entry)

         132.00

         136.00

         136.00

School Swimming sports 25m (includes pool entry)

 

 

          68.00

new

Dive/lap pool (includes competitor pool entry)

           98.90

        102.00

        102.00

Per 25m lane (excludes pool entry)

           16.50

           17.00

           18.00

Old Dive Pool (excludes pool entry)

           37.10

          38.00

          38.00

Old Dive Pool before 8am (excludes pool entry)

 

 

 Free

new

Learners pool (excludes pool entry)

           51.50

          53.00

          54.00

Additional lifeguard/pool staff per hour (2 hour minimum)

           27.00

          30.00

          30.00

Spectators (per person)

            0.50

            0.50

            0.50

The spectator fee is for all events and normal pool entry.  Spectator fee is not used for all school swimming or large groups where adults are required to look after a large numbers of children.

Administration fee

 

          35.00

 

Not used - to be removed

Meeting Room

Poolside meeting room per hour

           21.60

          22.00

          22.00

Poolside meeting room all day hire

        108.00

         112.50

         112.50

Corner meeting room per hour

           36.10

          30.00

          30.00

Corner meeting room all day hire

         180.50

        150.00

        150.00

Birthday Party room hire per hour

 

 

           16.50

new

Group Booking Rates

Gym booking (includes Instructor)

School Group (per hour) per person

             5.10

             5.30

 

Not used - to be removed

(+ instructor fee per hour) 2 hour minimum

           26.80

           27.60

 

Not used - to be removed

Group fitness booking (includes Instructor)

Private Group Fitness Class School

           77.20

           79.50

           79.50

Schools (primary/secondary) and Holiday Programmes (Moana Pool)

Child entry per head

             1.50

             1.50

             1.50

Child entry per head swim and slide

             4.50

             4.50

             4.50

Adult entry and spectators

  Free 

 Free

 Free

Kayaks – school group hire (excludes pool entry)

           15.50

           16.00

           16.00

Kayak Spray Skirt - school group hire (excludes pool entry)

           15.50

           16.00

           16.00

Birthday parties and other group bookings (Moana Pool)

Child entry per head

             1.50

             1.50

             1.50

Child entry per head swim and slide

             4.50

             4.50

             4.50

Adult entry per head

             3.70

            4.00

            4.00

Adult entry per head swim and slide

             7.80

            8.00

            8.00

Spectators and birthday child

  Free 

 Free

 free

SWIM SCHOOL

Lessons

Babies (10 weeks)

          65.00

           67.00

           67.00

Baby lessons introductory talk

 

 

          10.00

Pre-schoolers (10 weeks)

         115.00

         118.50

         118.00

Price change-addresses rounding issues for weekly cash payments.

School age children  (10 weeks)

         115.00

         118.50

         118.00

Private Lessons (30 minutes duration)

          32.00

          33.00

          33.00

Private Lessons (20 minutes duration)

 

 

           21.00

new

Adult $18 per lesson x 5

 

 

          90.00

new

School holiday lessons x 5 lessons

 

 

          59.00

new

Spike Squad (10 lesson block)

          80.00

           82.50

          82.00

Price change-addresses rounding issues for weekly cash payments.

Mosgiel Pre-school and school age children (10 lesson block)

          95.00

           97.50

           97.00

Waikouaiti Babies lessons per lesson

 

 

            6.00

new

Waikouaiti preschoolers lessons per lesson

 

 

          10.00

new

Lessons for Schools

30 minute lesson 1:10 ratio – per child

             3.50

             3.60

             3.60

30 minute lesson 1:8 ratio – per child

             4.40

             4.50

             4.50

30 minute lesson 1:6 ratio – per child

             5.80

            6.00

            6.00

20 minute lesson 1:5 ratio – per child

             3.90

            4.00

            4.00

School – Special Needs (10 lesson block)

         122.00

         125.70

         126.00

Price change-addresses rounding issues for weekly cash payments.

Home School Groups (10 lesson block)

         110.00

         115.00

         115.00

Lessons for Out Pools Schools

30 minute lesson 1:10 ratio– per child

 

 

             4.20

New

30 minute lesson 1:8 ratio– per child

 

 

             5.25

New

30 minute lesson 1:6 ratio– per child

 

 

             7.00

New

20 minute lesson 1:6 ratio – per child

 

 

             4.60

New

 

 

 

 

MOSGIEL POOL AND PORT CHALMERS POOL

Casual Rates

Adult

             3.70

            4.00

            4.00

Concession

             3.20

             3.50

             3.50

Child

             2.70

            3.00

            3.00

Toddler Time

            4.00

            4.00

            4.00

Family Swim

 

 

          10.00

new

Schools per pupil

             1.00

             1.00

             1.00

Multi visit Tickets

Adult 12 swim

          34.00

          35.00

          35.00

Concession 12 swim

           28.80

           29.50

           29.50

Child 12 swim

           23.20

          24.00

          24.00

Season Tickets (Mosgiel Pool - 7 months)

Adult

         144.20

         148.50

         148.50

Concession

           97.90

         101.00

         101.00

Child

           92.70

           95.50

           95.50

Family

         236.90

        244.00

        244.00

Each extra child

           17.50

           18.00

           18.00

Season Tickets (Port Chalmers Pool - 6 months)

Adult

         118.50

         122.00

         122.00

Concession

           63.90

          66.00

          66.00

Child

           63.90

          66.00

          66.00

Family

          175.10

         180.50

         180.50

Each extra child

           16.50

           17.00

           17.00

Pool Hire (Mosgiel and Port Chalmers Pools)

Pool Hire per hour (min 2 hours, includes lifeguard, excludes pool entry)

           88.60

          95.00

          95.00

ST CLAIR HOT SALT WATER POOL

Casual Rates

Adult

             6.20

             6.50

             6.50

Concession

             3.70

            4.00

            4.00

Child

             3.10

            3.00

            3.00

Toddler Time

            4.00

            4.00

            4.00

Family

           13.40

           14.00

           14.00

Schools per pupil

 

 

             1.50

new

Multi visit Tickets

Adult 12 swim

          62.00

          64.00

          64.00

Concession 12 swim

           37.00

          38.00

          38.00

Child 12 swim

           31.00

          32.00

          32.00

Season Tickets (6 months)

Adult

        206.00

         212.00

         212.00

Concession

         113.30

         116.50

         116.50

Child

           87.60

          90.00

          90.00

Family

         412.00

         424.50

         424.50

Each extra child

          30.90

          32.00

          32.00

Pool Hire (St Clair Hot Salt Water Pool)

Pool Hire per hour (min 2 hours, includes 2 lifeguards, excludes pool entry)

         113.30

        130.00

        130.00

 


 

 

 2015/16

 2016/17

 2017/18

 $

 $

 $

Cemeteries

Allanton, Andersons Bay, Dunedin City, Green Park, Portobello, Broad Bay, Macandrew Bay, Northern, Southern, Green Island, Port Chalmers, West Taieri, East Taieri and Waikouaiti

Burial Rights (plot purchase)

        2,000.00

        2,060.00

         2,122.00

Burial Rights (plot purchase)(Green Park Natural Burial site only)

        2,000.00

        2,060.00

         2,122.00

Burial Rights (plot purchase) (Roman Catholic Sisters - Andersons Bay only)

         1,494.00

         1,539.00

         1,585.00

Burial Rights (plot purchase) - Children Under 10 Years (Green Park and East Taieri)

        1,006.00

         1,036.00

         1,067.00

Interments

         1,483.00

         1,527.00

         1,573.00

Interments - Children Under 10 Years (all cemeteries)

            976.00

        1,005.00

         1,035.00

Service (maintenance) Fee

           808.00

           833.00

           858.00

Exhumation

        2,640.00

         2,720.00

        2,820.00

Exhumation - Children Under 10 Years (all cemeteries)

         1,785.00

         1,839.00

         1,894.00

Hindon, Otokia, Waitati, Middlemarch and Purakanui

Adults

Burial Rights (plot purchase)

            676.00

           696.00

            717.00

Interments

         1,483.00

         1,527.00

         1,573.00

Service (maintenance) Fee

            676.00

           696.00

            717.00

Exhumation

        2,640.00

         2,720.00

        2,802.00

All Cemeteries

Monumental Permit

              74.00

              76.00

              78.00

Attach a plaque

              16.00

              16.00

              16.00

Cremations

Crematorium Fee

           855.00

            881.00

           907.00

Saturday and Public Holidays

         1,025.00

         1,056.00

         1,088.00

Children Under 10 years

            151.00

            156.00

            161.00

Saturday and Public Holidays

           206.00

            212.00

            218.00

Babies Under 48 Hours

             28.00

             29.00

             30.00

Pathology and Mortuary Department Remains

           536.00

           552.00

           569.00

Chapel Hire - Per Hour

Weekdays

            163.00

            168.00

            173.00

Saturdays and Public Holidays

            237.00

           244.00

            251.00

Post-Cremation Services

Ash Beam Purchase

            237.00

           244.00

            251.00

Purchase of Family Ash Plot

            478.00

           492.00

           507.00

Ash Beam Purchase – Waikouaiti (includes Metal Flower Container)

           310.00

            319.00

           329.00

Inter in Family Plot, Ash Beam, Family Ash Plot, Soldiers Plot or Child's Plot

            151.00

            156.00

            161.00

Service Fee for Ash Burials

           206.00

            212.00

            218.00

Ash Disinterment Fee

            179.00

            184.00

           190.00

Scatter - Andersons Bay, Rose Garden

              74.00

              76.00

              78.00

Placement of Plaque in Court of Reflections (150 x 100 mm)

             85.00

             88.00

              91.00

Columbarium Wall

Price per Niche

            198.00

           204.00

           210.00

Placement of Ashes

            168.00

            173.00

            178.00

Book of Remembrance

Entry in Book of Remembrance (per time)

             85.00

             88.00

              91.00

 


 

 

 2015/16

 2016/17

 2017/18

 $

 $

 $

Parks and Recreation -  Facilities

Chingford Stables

Facility use per hour

          23.00

           23.70

           24.40

Functions (from 5.00pm to 11.00pm) – includes security patrol

        256.00

         263.70

         271.60

Stalls (including The Octagon)

Single not for profit/information only stall

Single not for profit stall (per stall, per day or part thereof)

           31.00

           31.90

           32.90

Single for profit stall (per stall, per day or part thereof)

           57.00

           58.70

          60.50

Lowering and raising of bollards in The Octagon

          25.00

          25.00

           25.80

Marina

Deborah Bay Marina – Berth (annual fee)

      1,318.00

       1,357.50

      1,398.20

Event Use

Enclosed grounds (per day)

        482.00

         496.50

         511.40

Unenclosed ground (per day)

        444.00

         457.30

         471.00

Bond for Events

Bonds are negotiable from $200, depending on event size, area and numbers

Parks and Recreation -  Sportsgrounds

Sportsgrounds – Winter Codes (Rugby, Rugby League, Hockey, Soccer)

Unenclosed Fields

With facilities (per season)

      1,603.00

       1,651.10

      1,700.60

Without facilities (per season)

        896.00

         922.90

        950.60

Touch Marked field with facilities (per season)

        444.00

         457.30

         471.00

With facilities (per day)

         136.00

         140.10

         144.30

Without facilities (per day)

           75.00

           77.30

           79.60

Casual Touch Sevens (per ground) per day

          36.00

           37.10

           38.20

Training use only for schools

  Free 

  Free 

 Free

Union Street Pavilion Facilities only (per change room per hour)

           18.00

           18.50

           19.10

Enclosed Fields

Tahuna Park 1, Caledonian, University Oval 1 (per ground, per day, with facilities)

        268.00

         276.00

         284.30

Tahuna Park 2 (per ground, per day, with facilities)

         136.00

         140.10

         144.30

Sportsgrounds – Summer Codes (Cricket, Athletics, Softball, Marching)

Dunedin Cricket

First class pitch, per season

      2,761.00

      2,843.80

      2,929.10

Other pitch, per season

      2,233.00

     2,300.00

      2,369.00

Artificial wicket, per season

        689.00

         709.70

         731.00

Primary, intermediate and secondary schools

 Free 

  Free 

 Free

Senior pitch, unenclosed, per day

        229.00

         235.90

        243.00

Artificial wicket, per day

          44.00

           45.30

           46.70

Otago Cricket

 

 

 

Hire of change rooms

          29.00

           29.90

          30.80

 (for the first two hours – minimum charge) 

 (for the first two hours - minimum charge) 

 (for the first two hours - minimum charge) 

           15.00

           15.50

           16.00

  per hour after that 

  per hour after that 

  per hour after that 

Hire of international practice strips (per hour/per strip)

          56.00

           57.70

           59.40

Hire of international practice strips (full day hire/per strip)

         171.00

          176.10

         181.40

Logan Park (Union Street Pavilion), per hour

            17.75

           18.30

           18.80

Logan Park  1, Practice, per full day

          68.00

          70.00

           72.10

Logan Park  1, Practice, per half day

           35.60

           36.70

           37.80

Logan Park 1, Practice, per hour

             8.50

             8.80

             9.10