Notice of Committee Meeting – Thursday, 26 July 2018 · focusing on the development of a balanced...

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20 July 2018 Record No: 18148567

File Ref: D050-001-C01 Ask For: Nicole Chauval

Notice of Committee Meeting – Thursday, 26 July 2018

A meeting of the Planning, Finance & Community Committee will be held in the Council Chambers, 15 Seymour Street, Blenheim on Thursday, 26 July 2018 commencing at 9.00 am.

BUSINESS As per Agenda attached.

MARK WHEELER CHIEF EXECUTIVE

mailto:[email protected]

Meeting of the

PLANNING, FINANCE & COMMUNITY COMMITTEE to be held in the Council Chambers, 15 Seymour Street, Blenheim

on THURSDAY, 26 July 2018, commencing at 9.00 am

Committee Clr M A Peters (Deputy Chairperson – in the Chair) Clr J L Andrews Clr C J Brooks Clr B G Dawson Clr M J Fitzpatrick Clr G A Hope Clr D D Oddie Clr L M Shenfield Clr N P Taylor Mayor J C Leggett Iwi representative (to be advised)

Department Heads Mr M F Fletcher (Chief Financial Officer) and Mr D G Heiford

(Manager Economic, Community & Support Services)

Staff N Chauval (Committee Secretary)

In Public Page 1. Apologies ....................................................................................................................................... 1 2. Declaration of Interests ................................................................................................................. 1 3. Marlborough Festivals and Events Trust Annual Report to 30 June 2018 ................................... 2 4. Economic Development and Events Update ............................................................................... 20 5. Destination Marlborough – Draft Business Plan ......................................................................... 31 6. Destination Marlborough Trust Inc – Trustee Fees ..................................................................... 32 7. Proposed National Planning Standards ...................................................................................... 34 8. Land and Water Forum Final Report ........................................................................................... 36 9. Housing for Seniors Sub-Committee ........................................................................................... 38 10. Audit & Risk Sub-committee ........................................................................................................ 46 11. Financial Report for Council – Period Ended 31 May 2018 ........................................................ 50 12. Marlborough Research Centre .................................................................................................... 62 13. Information Package ................................................................................................................... 65 14. Decision to Conduct Business with the Public Excluded ............................................................ 66

Public Excluded

15. Rating Sale .................................................................................................................................. 67

16. Housing for Seniors Sub-Committee ........................................................................................... 69

Planning, Finance & Community Committee - 26 July 2018 - Page 1

1. Apologies Apologies from Clrs T E Hook and J A Arbuckle have been received.

2. Declaration of Interests Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.


3. Marlborough Festivals and Events Trust Annual Report to 30 June 2018

(The Chair) (Report prepared by Lyne Reeves) R300-001-01

Purpose 1. The purpose of this report is to present the Marlborough Festivals and Events Trust annual report

for the 2017-2018 year as per the contract with Council.

2. A representative of the Marlborough Festivals and Events Trust will be present at the meeting to speak to the report and answer any questions (10 minutes).

Background 3. Council’s Long Term Plan 2018-2028 includes the following outcomes that relate to provision of

community based events:

• People – Marlborough’s communities value our special way of life. We are diverse, inclusive, welcoming and enjoy opportunities to connect, live, learn, work and play in this vibrant place.

• Living – Marlborough’s enviable community facilities, infrastructure, landscapes and climate enables our community to thrive. Life in Marlborough is safe and healthy.

• Connectivity – Marlborough’s central location and transport network, enhanced by our digital resources, enables our communities and visitors to access a wide range of recreational, cultural and economic activities locally, nationally and globally.

4. To give effect to these outcomes, Council has a contract with the Marlborough Festivals and Events Trust to the value of $177,000 per annum which is CPI adjusted annually. Contract value for 2017/18 year is $180,186. This contract commenced on 1 July 2016 after a review process was undertaken by Council. The contract has a three term ending 30 June 2019 however has a renewal clause of an additional two terms each of two years.

5. This report is the second report under the new contract and covers provision of community based events as follows:

• Summer concert series

− Held annually in January, February or March – work around or in conjunction with other events.

− Three concerts provided – one in Pollard Park, one in Picton, one other. − Utilise local and national performers as appropriate with a focus on providing

opportunities for local artists to perform. − Target audience – families/general community. − Anticipated numbers – up to 5000 depending on the location.

• Blenheim Christmas Parade

− Held annually in the Blenheim CBD in December. − Target audience – families/general community. − Anticipated numbers attending – 5000.

• Senior Citizens’ Concert

− Provide two concerts each year– Blenheim based with consideration to transport for Picton and Awatere.

− Target audience – over 65s. − Anticipated numbers per event – 200.


• Children’s Theatre

− Provide two concerts each year – Blenheim based with one for up to eight year olds, one for five to twelve year olds.

− Target audience – children. − Anticipated numbers per event – 200.

• Christmas Festival

− Hold annually in the CBD in December. − Target audience – families/children. − Anticipated numbers attending – 2,500.

• Support to Other Groups

− Provide event planning and support to community organisations. − Target audience – family friendly non-commercial events. − Anticipated numbers – 180 hours of support provided per annum broken down as follows:

o General advice for up to five hours per organisation. o Practical assistance – up to twenty hours per organisation. o Support for delivery of an event – up to forty hours per organisation

• New Year’s Eve Festival

− Provide a concert in Picton each year – transport from Blenheim to Picton to be provided. − Target audience – family friendly. − Anticipated numbers – up to 5000.

• Southern Jam Youth Jazz Festival

− Held annually in the CBD in August-September. − Target audience – families/children. − Anticipated numbers – up to 4500.

Annual Report 6. The contract with Council requires the Trust to report on an annual basis against expected

outcomes.

7. Attached is the annual report for the period 1 July 2017 to 30 June 2018 (Appendix 1).

8. The Trust has met the requirements of the contract and in most cases, exceeded these.

Summary 9. Council has a contract with Marlborough Festivals and Events Trust for provision of community

based festivals and events. The contract requires the Trust to report to Council on an annual basis against the expected outcomes.

10. The Trust has achieved the outcomes in the 2017-2018 year.

RECOMMENDED That the Marlborough Festivals and Events Trust Annual Report to 30 June 2018 be received.


Appendix 1


4. Economic Development and Events Update (The Chair) (Report prepared by Neil Henry) E100-001-01

Purpose 1. The purpose of this report is to update the Committee on the activities of the economic

development and commercial events team.

Background 2. Council’s economic development and commercial events team comprises the following four main

activities:

a) Marlborough Smart and Connected

b) Smart Business Marlborough

c) Small Townships Programme

d) Regional Events Advisor

3. Marlborough Smart and Connected is a tool to assist the Marlborough community and industries to think strategically and work together to develop their own resources to achieve sustainable and effective economic development over the long term. Hundreds of people have participated in the process, and many remain involved with steering and/or working groups. Three communities and four industry leadership groups have been established to date, with the process getting underway in Seddon in September 2017:

a) Community: Havelock, Picton, Renwick and Seddon

b) Industry: Wood sector, Visitor Economy, Blenheim CBD and Aquaculture

4. Council undertakes a number of actions targeted at assisting business growth and development under the ‘Smart Business Marlborough’ banner. These actions are:

a) Development enquiries – Council offers a single point of contact for the co-ordination of commercial and industrial enquiries through Council’s various functions. Independent advice is also provided to facilitate these enquiries in some cases, as is links to external business support services.

b) Business Trust Marlborough – Council is a significant funder of this organisation that provides advice to start-up or growing businesses and business mentors, and also links to other advice providers.

c) Access to timely, up to date statistical information about the Marlborough economy and community, via the Infometrics web platform.

d) Supporting international economic and education connections, including sister region relationship with the Chinese wine region of Ningxia; and attracting international students to study in Marlborough via the Education Nelson Marlborough partnership.

e) Supporting the adoption of Only Marlborough by local businesses, Council and community organisations.

5. The Small Townships Programme is aimed at upgrading amenities in the small towns that were identified in the Council’s Growing Marlborough strategy. The programme has two parts, the Township Plan and the Contestable Fund and a sub-committee of councillors is tasked with allocating the funding. The purpose of the programme is to:

a) Design a liveable town with an attractive central space

b) Allow freedom of movement, connectivity and accessibility

c) Strengthen a sense of place and unique identity


d) Enhance the use, enjoyment and pride in outdoor public spaces.

6. The Regional Events Advisor role supports the development of the events sector in Marlborough to ensure it maximises the economic return to the region, guided by the Regional Events Strategy. The main activities carried out by the Adviser are:

a) Development and overseeing the implementation of the Regional Events Strategy

b) Marlborough FollowMe Events Calendar and event brochures

c) Managing the Commercial Events Fund and assisting its sub-committee.

d) Identifying and executing bid opportunities

e) Supporting local event managers

7. Council also provides funding for other economic development activities that are delivered by external partners:

a) Marlborough Research Centre – focused on primary sector research and value adding activity, including the Food and Beverage Innovation Cluster

b) New Zealand Research Institute of Viticulture and Oenology ‘NZRIVO’ – recently announced centre for NZ wine research, based in Marlborough

c) Destination Marlborough – Trust responsible for marketing Marlborough as a visitor destination, including Business Events (conventions and conferences)

Comments 8. Updates on the four main activities of the team will be made over two committee meeting cycles,

usually two activities at each meeting. This item will cover Smart and Connected, Smart Business Marlborough and Regional Events Adviser as no update was provided at the (post-LTP) June committee meeting.

9. Marlborough Smart + Connected

a) Aquaculture.

The group met on 9 May and 13 June.

i. Long Term Plan submission

o The Aquaculture group made a submission to the Long Term Plan, and delivered a presentation to the hearings, with a particular focus on the recent Aquaculture Week.

ii. Harmony working group

o Following the completion of the Aquaculture Week in March, the group is now focusing on the development of a balanced scorecard to gather and publish key industry data over time. The group made a presentation to the Sounds Advisory Group on 25 June to make them aware of their intention to produce the scorecard, to share progress, and to hear their comments.

o A sub-group for next year’s Aquaculture Week will be formed.

iii. Value & Innovation Working Group

o Blue mussels – CFarmX presented to the group on their proposed blue mussel processing facility, and received support. Following this, CFarmX made a submission to Council’s Long Term Plan seeking support for a bid to the Provincial Growth Fund – support was provided.


o Provenance – the focus of the Provenance group is to identify and promote a Marlborough dish that will become synonymous with the region. Input has been received from the hospitality industry, and further ideas relating to cooking freshly shucked mussels (as demonstrated at Aquaculture Week) will be investigated.

b) Wood sector

i. The wood sector group is currently on hold as members participate in Council’s NES for Plantation Forestry discussions

c) Blenheim Business Association

i. The Blenheim Business Association has completed its review and has a new strategic plan. An AGM was held in June and a new committee was elected.

ii. The BBA presented to the Long Term Plan seeking support for progressing the Marlborough Mile concept. Support was provided for the first two sites, with some conditions.

d) Visitor economy

i. The Visitor economy group has commenced its review and will engage with industry partners in the coming weeks. The outcome will lead to an updated plan and refreshed steering group.

e) Picton

i. There have been no steering group meetings in May or June as they have been focussing on their Long Term Plan submission and organising the Matariki Festival. This runs from 15 June to 22 July 2018 and further information is in the events update 11(b).

ii. New Matariki banners were developed to celebrate the Maori New Year in Picton.

iii. Picton Smart+Connected received funding via the Sports Fund for a pop up Ice Rink in June. This was used to help fundraise for Queen Charlotte College’s Japan trip and once the funding was secured, the running and operation of the rink was handed over to the students. This was a wonderful opportunity to get youth involved in S+C projects which will hopefully lead to more involvement in the group.


f) Renwick

i. The Renwick Smart and Connected group met on 2 May for the AGM of the Renwick Residents Association and are reviewing their constitution and terms of reference

ii. Regular Steering Group meetings were also held on 30 May and 27 June.

iii. The new co-ordinator, Sue Avery, was welcomed in to the group. Her first task was to look at ways that the group can improve communication with the rest of the community.

iv. A representative from Neighbourhood Support attended the June meeting and the group invited the Renwick co-coordinator to join the steering group.

v. The Bike Walk Renwick working group received funding from Bike Walk Marlborough to commission a report on opportunities for new pathways and connections around Renwick.

vi. The Business Working Group organised a presentation by Business Trust Marlborough and Village Beautification have been working with Reserves on check sheets to indicate what reserve upgrades are required.

vii. A grant application was made to the Lion Foundation to cover the cost for five Automated External Defibrillators which will be placed in accessible locations throughout the Renwick community.

g) Seddon and Awatere

i. The 14 members of the Seddon Awatere Smart and Connected Steering Group held meetings on 14 June and 5 July. There are also five working groups that are also meeting monthly and cover Youth, Unique Identity, Infrastructure, Medical and Transport. They are working towards achieving the key outcomes identified by the community during the S+C set up process

ii. The Steering Group hosted a presentation by the Marlborough DHB & PHO on health opportunities that could be available in local areas. A medical working group has been set up to look at opportunities to increase medical support in Seddon


iii. A public meeting on transport was held on the 28 June and a new working group has been formed. They are organising a public meeting in August and invited Marlborough Roads to present their three year work programme

iv. The unique identity working group is planning new banners, the entrance signs and interpretation signs for the township

v. There is also a very active Youth Working Group that is planning and fundraising for a bike park for young people to have somewhere to come together and get involved in physical activity. They hosted a dinner that raised $10,000 in funding to put towards the project. They are working closely with the Reserves Department to identify a suitable location, design and the remaining funding.

10. Smart Business Marlborough

a) International connections

i. A Mayoral led delegation to Ningxia took place in June. The delegation visited the Site Vinitech wine trade expo (attended by some Marlborough wine industry delegates and exhibitors), visited the Yu’Ge winery which has Marlborough technology installed, and met with the Regional Governor Ms Xian Hui. Discussions with various universities, the Wine Bureau and Ningxia Foreign Affairs took place to identify opportunities for Marlborough and Ningxia.


b) Infometrics March 2018 quarterly report

i. The Infometrics quarterly report was released in late May. Marlborough achieved growth ahead of the New Zealand average in most areas including GDP, residential and non-residential consents, visitor guest nights, commercial vehicle registrations and (reduction in) jobseeker support recipients.

ii. The report is available on the Council website https://ecoprofile.infometrics.co.nz/Marlborough+Region/QuarterlyEconomicMonitor

c) Education Nelson Marlborough

i. A review is underway by the governance group of the delivery of this programme which promotes the Top of the South as an education destination. The emerging Regional Growth Strategy will also inform this review.

d) Review of economic development, events and tourism

i. The Long Term Plan process confirmed the principal ‘Enhanced Status Quo’ recommendation of the MartinJenkins review of economic development, events and tourism. A report on the recommendations of the report will be brought to a future committee meeting for consideration.

e) Te Tau Ihu Regional Growth Strategy

i. Progress has recently been made towards forming a core governance group and application to the Provincial Growth Fund to undertake a growth strategy for the Top of the South. Wakatu Inc are working alongside the three councils and Nelson Regional Development Agency in leading this work.

f) Screen Wellington film office partnership

i. A decision was made at the Long Term Plan to establish a film office partnership with Screen Wellington. Discussions are underway to initiate this new service, and a presentation will be made to a future committee on progress.

g) New Economic Development Advisor

i. Alistair Schorn has recently been appointed as Economic Development Advisor. Alistair has experience in economic development, economics, trade promotion and sustainability.

https://ecoprofile.infometrics.co.nz/Marlborough+Region/QuarterlyEconomicMonitor


11. Regional Events Advisor

a) Recent Events

i. Feast Marlborough - 10 to 13 May 2018

o The second year for this event was a great success with the vast majority of events over the 4 day celebration selling out.

o ‘Friday Night Feast’ which took place in Blenheim CBD on Friday 11 May was a highlight of Feast Marlborough for many people. This event grew significantly in 2018 with 19 food stalls (from 7 at the 2017 event) and a new R18 area serving alcohol at Wynen Street Pocket Park. This area was very popular with no issues reported.

o Marlborough producers, Marlborough Garlic and Mills Bay Mussels, have both reported new supplier agreements with restaurants in the North Island as a direct result of having a presence at Feast 2018.

o Cuisine Magazine judged the top five dishes that were entered into the new ‘Rare Fare’ competition to find the best over $25 and under $25 Marlborough dishes. They announced ‘Allan Scott’ and ‘Highfield TerraVin Vineyard Restaurant’ as the winners through their social media channels with the winners also announced in the July issue of the magazine alongside a multi-page feature on Marlborough.

o As requested, event owner Chris Shaw presented findings of the 2018 event to the Commercial Events Fund sub-committee on 25 May. The sub-committee were very happy with the results from the 2018 event and were encouraged by Chris’ future plans. Following this meeting, the sub-committee unanimously approved Feast’s funding request for the 2019 event from Round 2 of 2017/2018.

o Organisers have already received enquiries from new potential sponsors keen to be involved in the 2019 event. The majority of existing sponsors have already indicated they will continue their support with one sponsor who was new to the event re-signing within 3 days of this year’s event taking place. The organisers will now look at multi-year agreements.

ii. Saint Clair Vineyard Half Marathon - 12 May 2018

o Another successful sell-out event this year with approx. 4100 participants. The organisers are happy with this level of participants and do not plan to greatly increase their capacity in the future.


o The Hawkes Bay International Marathon, a competing event that has been running on the same date as the Saint Clair Vineyard Half Marathon since 2016 have delayed their event by a week for 2019. Given the 29% increase in participants from the North Island for the Saint Clair Vineyard Half, organisers believe Hawkes Bay may have made this decision in part following a decrease in their participation in 2018.

iii. Marlborough Book Festival 2018 - 6 to 8 July 2018

o Organisers have reported that most events this year sold out with people waiting at the door for last minute tickets at several of the sessions.

o Approx. 1700 tickets were sold to the 21 sessions across seven venues – approx. 20% of these sales were to people from out of the region including Auckland, Hamilton, Wellington, Christchurch and Nelson.

o The Marlborough Book Festival is run by the Marlborough Readers & Writers Charitable Trust. Money raised from this year’s event will bring the New Zealand Book Council Writers in Schools project to Marlborough schools in August.

o The Book Festival partnered with Picton’s new Matariki Festival and held a special sold-out Matariki-themed session at Picton Library.

b) Current/Upcoming Events

i. Matariki Festival - 15 June to 22 July 2018

o Marlborough’s first Matariki Festival organised by Picton Smart & Connected is proving to be very successful with events well attended and fantastic feedback received.

o KAI, the first of two main events running during the 5 week Festival was held at Picton Yacht Club on Saturday 23 June. Five local chefs collaborated to create 8 courses of local produce for 80 people. This R18 event sold out within days of tickets being released.

o AHO, the second main event will be held on Saturday 14 July on Picton Foreshore. This is a free family event featuring food from community groups, live music, fireworks, kapa haka performances and light performers.

o Organisers are working towards this being Marlborough’s first zero-waste event.

ii. 2018 NZ Brass Band Championships – 11 to 15 July 2018


o Running since 1880, this is the world’s oldest music competition.

o This will be the first time the event has been held in Marlborough and only the second time in the Top of the South - Nelson hosted the Championships in 1983.

o The event will welcome 28 bands from around NZ and will consist of solo, duet and ensemble competitions.

o Friday 13 July will see a one hour street parade through Blenheim.

o The Championships received funding through Round 1 of the 2017/2018 Commercial Events Fund.

o The annual event moves through four regions in the country, alternating between North and South Island locations. Organisers have reported that they will be looking to bid for Marlborough to host the event again in 2020 and 2024.

iii. Tour de Gravel 2018 - 4 August 2018

o A new cycling event organised by Go Marlborough (organisers of the Forrest Graperide) which will encompass both gravel and sealed tracks.

o The event received funding through Round 1 of the 2017/2018 Commercial Events Fund.

o Event organisers are reporting that ticket sales have been fairly slow but where they had expected them to be at this stage - they have confirmed sales are at a level to make the event viable.

iv. Garden Marlborough 2018 - 8 to 11 November 2018

o 2018 will be Garden Marlborough’s 25th anniversary.

o Tickets will go on sale for this year’s event on 23 July 2018.

o Chris Woods has been announced as the 2018 International Guest Speaker.

o Due to the event falling on Armistice Day, the 2018 Garden Fete will change location from Seymour Square and will be held at Churchill Glade, Pollard Park.

c) General

i. New Zealand Event Association

o In her voluntary role as Marlborough’s NZEA Representative, MDC’s Regional Events Advisor has secured Marlborough’s inclusion as a host region for another NZEA Workshop. Health and Safety Expert, Michelle Macdonald, will present “Managing Risk at Your Event” at the ASB Theatre on Friday 20 July.

o MDC’s Regional Events Advisor has once again offered bursaries to two Marlborough Event Organisers to attend the Eventing the Future Conference. This year’s recipients are Georgie Leach from Wine Marlborough (owners of Marlborough Wine & Food Festival) and Emily Taylor from Saint Clair Vineyard Half Marathon. These bursaries will cover the cost of the conference registration with travel and accommodation paid for by the individuals. MDC’s Regional Events Advisor will also attend the conference.


ii. 2019 Black Hawk National Dog Show

o Marlborough has been successful in bidding to host this national event in 2019. It will be the first time the Show has been held outside Wellington, Auckland or Christchurch.

o The Commercial Events Fund sub-committee approved up to $15,000 through the Bid Fund to attract this event. This funding will cover the venue hire costs with payment being made directly by MDC to Stadium 2000.

o The event will be held from 2 to 5 October 2019 at Stadium 2000 with satellite shows also being held around those dates at Marlborough Kennel Association, A & P Park with additional venues also being considered.

o Organisers anticipate approx. 600 participants will bring 1400 dogs of 120 different breeds to the event. This number does not include supporters or the general public.

iii. Waste Management Workshops

o MDC’s Regional Events Advisor recently attended a day of workshops in Nelson discussing event waste management. The workshops were organised by Nelson City Council and Tasman District Council and run by ‘Beyond the Bin’, a social enterprise team specialising in educating and advising events on how to divert waste from landfill.

o The advice given at the workshops together with the resource document provided by ‘Beyond the Bin’ was of great value to the Nelson event organisers who were present. The Regional Events Advisor will now liaise with the ‘Beyond the Bin’ team as well as MDC’s Solid Waste Manager to discuss the viability and benefit of similar workshops being held in Blenheim. Minimising waste is a particularly hot topic in the event sector and top of mind for most Marlborough events.

iv. Follow-ME Events Guide

o The printed Winter Guide covering events taking place from 1 June to 31 August 2018 has been distributed around Marlborough and into Wellington. An e-version has also been made available.

o Work on the Spring Guide will commence shortly.

Summary 12. Smart+Connected:

a) Aquaculture S+C are focused on developing a balanced scorecard and a dish to promote the provenance of Marlborough food.

b) Wood sector S+C are currently undertaking a review, and are in dialogue with Council regulatory staff regarding the NES for plantation forestry and other matters.

c) Blenheim Business Association have completed their review and agreed a new strategic plan.

d) Picton S+C have been busy organising the successful Matariki Festival.

e) Renwick S+C have a new co-ordinator and the bike walk, beautification and business working groups have been busy with projects.


f) The Seddon Awatere S+C Steering Group and five working groups are tackling a number of key issues identified by the local community.

13. Smart Business Marlborough

a) A successful Mayoral led business delegation to Ningxia took place in June.

b) Progress has recently been made towards forming a core governance group and application to the Provincial Growth Fund to undertake a growth strategy for the Top of the South.

c) Alistair Schorn has recently been appointed as Economic Development Advisor. Alistair has experience in economic development, economics, trade promotion and sustainability.

14. Events

a) Recent events have reported great attendance and very positive feedback.

b) Marlborough’s inaugural Matariki Festival is proving to be a great success.

c) Marlborough has been successful in bidding for the 2019 Black Hawk National Dog Show. The event will be held in Blenheim from 2 to 5 October 2019 with additional satellite shows on surrounding dates.

RECOMMENDED That the information be received.


5. Destination Marlborough – Draft Business Plan (Mayor) E100-004-01

Purpose 1. For Destination Marlborough to present their –

• 2018/19 Draft Business Plan

The above report will be circulated at the meeting.

2. Jacqui Lloyd, General Manager Destination Marlborough and Board members will present the draft plan and answer any questions the Committee may have. (10 minutes)

Background 3. The Destination Marlborough Trust is required, as per the Funding Deed it has with Council, to

provide within 90 days of the end of each financial year, a Business Plan for the ensuing year; a report on its activities for the past financial year including a report on whether it achieved the outcomes and objectives set out in the Business Plan and a copy of the Trust’s audited annual accounts.

4. Councillors have asked that the business plan be prepared and presented as soon as possible rather than relying on the 90 day requirement.

RECOMMENDED That Destination Marlborough Trust’s draft business plan for 2018/19 be received.


6. Destination Marlborough Trust Inc – Trustee Fees (Chair) (Report prepared by Dean Heiford) E100-004-01

Purpose 1. To present for Council consideration the recommended increase of Trustee fees for Destination

Marlborough Trust Inc. (DM).

Background 2. Currently Destination Marlborough Trust Inc. Trustees receive $3,000 per annum and the

Chairman receives $7,000 per annum as Trustee fees.

3. These fees have been in places since July 2015 and were the first increase since records tracked back to 1997, a period of 18 years.

4. A paper was prepared on this issue to provide benchmark information from the RTONZ Benchmarking Survey. The most up to date survey was completed in 2016.

5. This paper has been brought to Council as the Destination Marlborough Trust Inc. Trust Deed Clause 14.1 states: The Trustees may, with the prior approval of the Settlor, resolve to pay themselves or any of them reasonable remuneration for their services as Trustees. Marlborough District Council is the Settlor.

Benchmarks 6. The following table is extracted from the NZ RTO Benchmark Survey y/e 2016.

RTO Chair remuneration

Board member

remuneration Board admin

expenses Total board

cost

Average remuneration

per board member (excl.

Chair) Total cost $375,360 $1,073,250 $108,810 $1,557,420 Average, all RTOs

$15,014 $41,279 $4,352 $60,646 $7,474

Highest $81,000 $340,000 $30,000 $421,000 $56,667 Average Tier 1 $36,700 $133,000 $2,000 $171,700 $20,933 Average Tier 2 $13,875 $33,297 $6,188 $53,359 $6,975 Average Tier 3 $12,560 $20,179 $7,418 $37,303 $4,825 Average Tier 4 $625 $156 $1,200 $1,981 $20 Average Tier 5 $1,500 $0 $0 $1,500 $0

Note: Marlborough is a Tier 3 RTO – Tiers are defined based on total RTO income before i-SITEs sales revenue


Discussion 7. In 2016 the average remuneration in Tier 3 including DM is sitting at $12,560 for the Chair and

$4,825 for a Trustee. Current 2018 Destination Marlborough Trust Inc. remuneration is a little over half the average 2016 remuneration for the Chair, and Trustees receive 60% of average remuneration of 2016 data.

8. In reviewing the benchmark data the Trustees considered the affordability of the Trust to take on increased expenditure.

9. As Trustees are asked to contribute their skills and expertise, remuneration must take into account recognising their value and responsibilities as a Trustee.

10. Recruitment of skilled and experienced Trustees in the future could be compromised by the remuneration currently offered.

Summary 11. After discussion it was resolved by the Board at the July 2018 Board meeting to propose an

increase in Trustee fees to $9,000 per annum for the Chair and $4,000 per annum for each Trustee with effect from 1 July 2018. The Destination Marlborough 2017/18 budget is projecting a small surplus after including provision for this increase.

12. As per the Trust Deed the next step is to obtain approval from the Settlor. Therefore, the increase would apply as soon as it has been approved.

RECOMMENDED That Council as Settlor agree to the increase in Trustee fees to $9,000 pa for the Chair and $4,000 pa for Trustees from 1 July 2018.


7. Proposed National Planning Standards (The Chair) (Report prepared by Pere Hawes) L225-NPS01

Purpose 1. The purpose of this report is to provide the Committee with central government proposals to

establish national planning standards for the structure and form of RMA planning documents.

Background 2. The ability to establish national planning standards has been introduced through amendments to

the RMA 1991. A national planning template was initially introduced as part of the Resource Legislation Amendment Bill in late 2015, and was subsequently renamed national planning standards as part of the Resource Legislation Amendment Act 2017.

3. In May, the Ministry for the Environment released a consultation document for the first set of national planning standards. A copy of the document is available via the following link http://www.mfe.govt.nz/publications/rma/draft-national-planning-standards-consultation-document. These draft standards apply to the structure and form of regional policy statements, regional plans, district plans and combined plans. This includes standards for zones and overlays, metrics, definitions and electronic accessibility.

Comments 4. The draft planning standards direct a common structure and form, and some standard content, for

all RMA planning documents. These standards are set out in general terms in the document “Draft National Planning Standards – Consultation Document” attached to this report. Another document sets out the draft standards in full. This 98 page document is available upon request.

5. The discussion document sets out that RMA planning documents have unnecessary variation and that “guidance” from central government will not address this variation. The draft national planning standards are therefore intended to provide for national consistency for the presentation of the content of RMA planning documents.

6. Separate structures for regional policy statements, regional plans, district plans and combined plans are proposed. These are summarised on page 16 of the consultation document.

7. The combined plan structure is the proposal relevant to the Propose Marlborough Environment Plan. The combined plan structure draws on each of the other structure standards.

Potential effect on the Proposed Marlborough Environment Plan (MEP) 8. Environmental Policy staff attended a workshop held by the Ministry for the Environment for the

three Te Tau Ihu councils. The three councils all have combined plan structures to various extents. Although staff have yet to have the opportunity to consider the proposals in full due to MEP hearing process commitments, the workshop provided an opportunity to identify the following potential issues.

9. The MEP currently integrates regional policy statement provisions into the regional and district plan provisions. However, the draft standards for combined planning documents propose to have a standalone regional policy statement. The Council would be required to remove regional policy statement provisions from the regional and district plan provisions to create a separate suite of provisions. This would likely result in unnecessary duplication of provisions across the MEP.

10. The MEP also groups standards that apply to buildings and structures. These include standards for managing amenity, reverse sensitivity, natural hazards, landscape, natural character and water quality outcomes. Any person proposing to construct a new building and structure therefore only needs to refer to one part of the MEP to establish compliance. However, the draft standards require

http://www.mfe.govt.nz/publications/rma/draft-national-planning-standards-consultation-document


the rules to be grouped with relevant objectives and policies. The proposed rules for buildings and structures would therefore be distributed throughout the plan.

11. In summary, the MEP is an attempt to integrate regional and district planning functions not only into a single document but also into a single structure. The draft national planning standards may result in a less integrated planning document.

Electronic accessibility 12. The draft standards require councils to utilise ePlans within five years or seven years (see below

for commentary on timing). The Council is well placed to implement this change as it already provides its operative plan in an ePlan format and intends to do the same in the case of the MEP once the Hearing Panel publicly notifies its decisions. The proposals for electronic accessibility are set out on pages 18-20 of the consultation document.

Timing 13. The current timeline for implementing mandatory standards is one year from the gazettal of the

standards. In response to concerns expressed by the local government sector about the costs of restructuring existing plans, it is proposed to extend the timeframe to five years. However, the document also acknowledges that some councils, including Marlborough District Council, are completing a review process which would impose a significant additional cost on those councils. It is therefore proposed to extend that timeframe by an additional two years (i.e., seven years) for specific councils. The timeframes are set out on page 26 of the consultation document.

Submission 14. The closing date for submissions to the consultation document is 17 August 2018. Staff are

currently considering the potential implications of the draft standards on the MEP. If the above two matters, or any other proposal, are considered to be significant, then the Council should consider making a submission.

15. The closing date for submissions is prior to the next Committee meeting on 6 September 2018. It is therefore recommended that a sub group of the Committee be established to consider and approve any Council submission.

Summary 16. Central government proposals to establish national planning standards for the structure and form of

RMA planning documents. These proposals may have a significant effect on the structure and form of the Proposed MEP. Following assessment of these effects, the Council may choose to make a submission to provide support for the proposals or to express concerns regarding the impacts.

RECOMMENDED 1. That the report be received.

2. That a sub-group of the Committee be established to consider and approve a Council submission on the document “Draft National Planning Standards – Consultation Document”.


8. Land and Water Forum Final Report (also report available on Council’s website)

(The Chair) (Report prepared by Pere Hawes) l225-09-04-01

Purpose 1. The purpose of this report is to inform the Committee about the latest Land and Water Forum

Report. The report is available on Council’s website (Click Here)

Background 2. The Land and Water Forum brings together a range of national stakeholders consisting of industry

groups, electricity generators, environmental and recreational NGOs, iwi, scientists, and other organisations with a stake in freshwater and land management.

3. The Forum has been meeting regularly since 2009 to develop a shared vision and a common way forward among all those with an interest in water, through a stakeholder-led collaborative process.

4. The Forum has provided central government with sequence of reports containing recommendations on ways in which water management could be improved. A further report on improving water quality, “Land and Water Forum advice on improving water quality: Preventing degradation and addressing sediment and nitrogen”, was published in May 2018.

5. The Council has been undertaking a degree of work to establish the extent and effect of sedimentation in Marlborough’s fresh and coastal waters.

Comments 6. The document “Land and Water Forum advice on improving water quality: Preventing degradation

and addressing sediment and nitrogen” sets out steps that the Land and Water Forum consider necessary to avoid further degradation of water quality in New Zealand. The document is attached for the information of the Committee.

7. The areas that the report focuses on are:

• Improving leadership in freshwater management;

• Resolving iwi rights and interests in water;

• Implementing good management practice;

• Managing sediment;

• Managing nitrogen contamination through allocation mechanisms; and

• Urban water management.

8. The report contains recommendations on each of these matters for central government to consider. These are clearly set out in the report.

9. The Council has been undertaking work to establish the extent and effect of sedimentation in Marlborough’s fresh and coastal waters.

10. The report identifies a number of potential sources of sediment. It also notes the use of the NES for Plantation Forestry with respect to managing the sedimentation risks associated with plantation forestry activities.

https://www.marlborough.govt.nz/your-council/meetings?item=id:20lcyocne1cxbyeqs3oy


11. The recommendations for sediment management are recommendations 16-19. These include developing good management practice for unregulated sectors; the use of rules to regulate particular practices; the encouragement of tree planting and other soil conservation measures; and establishing attributes for suspended and deposited sediment for the national objectives framework contained in the National Policy Statement for Freshwater Management.

12. The Forum also recommends that the effectiveness of the NES for Plantation Forestry in reducing sediment discharges should be considered following a review of the NES in 12 months time.

13. One of the matters that the Forum has emphasised within the report is a principle that landowners should bear the responsibility for the environmental effects of their activities.

14. State of the Environment reports have previously highlighted that sediment is a significant contaminant in Marlborough’s freshwater and coastal ecosystems. The focus of the Land and Water Forum on sedimentation is therefore welcomed.

15. The report will now be considered by the Minister for the Environment. It is considered appropriate to write to the Minister to emphasise the importance of addressing sedimentation in a Marlborough context and to encourage them to implement the recommendations of the Forum.

16. Further information about the Land and water Forum and their latest report are accessible from the following website: http://www.landandwater.org.nz/

Summary 17. The Land and Water Forum recently released a report on improving water quality in New Zealand.

That report identifies the risks posed by sedimentation, amongst other contaminants, and recommends a range of measures to address these risks. The focus on sedimentation is particularly relevant in a Marlborough context.

RECOMMENDED 1. That the information be received.

2. That the Mayor write to the Minister for the Environment supporting the emphasis on sedimentation in the Land and Water Forum report and encouraging them to carefully consider the recommendations contained in the report.

http://www.landandwater.org.nz/


9. Housing for Seniors Sub-Committee (Clr Brooks) D050-001-H01

1. The Minutes of the Housing for Seniors Sub-Committee meetings held on 21 June 2018 and 9 March 2018 are attached for ratification by the Committee.

RECOMMENDED That the Minutes of the Housing for Seniors Sub-Committee meetings held on 21 June 2018 and 9 March 2018 be ratified.

Planning, Finance & Community Committee – 26 July 2018 - Page 42


10. Audit & Risk Sub-committee (The Mayor) D050-001-S02

1. The Minutes of the Audit & Risk Sub-Committee meeting held on 27 June are attached for ratification by the Committee.

RECOMMENDED That the Minutes of the Audit & Risk Sub-Committee meeting held on 27 June 2018 be ratified.


11. Financial Report for Council – Period Ended 31 May 2018 (Clr Peters) (Report prepared by Janette Somerville) F275-002-17

Purpose 1. Attached is the financial report for Council for the eleven months ended 31 May 2018.

2. The Income and Expenditure Statement reports an operating surplus of $1M for the year to date. This is a $1.9M improvement on the deficit $0.9M budgeted.

3. Included in this report is a simplified Source and Disposition of Funds Statement which shows the movement in receipts, payments, and borrowings and investments at a high level for the same period.

Revenue 4. Total MDC Operating Income for the May year to date is ahead of budget by $4.84M (6%).

5. Comments are provided below on variances between year to date actual vs budget and year end forecast vs budget greater than $100,000. Variations in year end forecast and budget identify the possibility of a permanent variation as compared to part year timing variations.

a. Rates forecast has been updated for the annual rates levied including an increased uptake of the Energy Efficiency rate.

b. External interest revenue is under budget due to the continuing low interest rates. As investments mature, the proceeds have been reinvested in short dated term deposits rather than corporate bonds as the marginal yield advantage is not sufficient to offset the longer terms required to invest in bonds. Forecast has been updated.

c. Gain on sale of fixed assets has been updated which includes all sections sales for stage 4 BPOT and adjusted to allow for the actual vested asset credit. Forecast has been updated.

d. Funds received from Marlborough Regional Forestry are higher than originally budgeted because export log prices and demand have continued at record levels with strong demand in the domestic sector on the back of the export prices. April and May production conditions were favourable but this has been offset by the very wet weather in June and difficult harvest terrain. A further $132.5K has been received in June. Forecast has been updated.

e. Property and other revenue is ahead of budget mainly due to rentals for 22 Queen St including the portion under construction continuing for longer than originally budgeted together with associated disbursements. Corridor access fees are also higher than anticipated. Forecast has been updated.

f. Community Facilities is ahead of budget mainly due to $400K received from the Marlborough Lines Stadium Trust towards the earthquake strengthening costs and higher than budgeted development and Reserve fund contributions. Forecast has been updated.

g. Roads and footpaths income is less than budget mainly due to:

i. Slower than anticipated subdivision and development contributions together with development impact levies.

ii. Less than budgeted NZTA subsidies for operational expenditure projects partially offset by favourable capex subsidies. This is reliant on the timing of expenditure incurred. Forecast has been updated and includes additional subsidy expected for the street lighting conversion to LED lighting brought forward to take advantage of the 85% subsidy rate.

h. Flood protection and control works are ahead of budget mainly due to:

i. Greater than budgeted gravel extraction sales.

ii. Higher than anticipated log sales on flood protection land originally planted for soil erosion purposes.

iii. Higher than budgeted property rentals. Forecast has been updated.


i. Sewerage net revenue is below of budget due to:

i. Less than budgeted trade waste charges as a result of last year’s vintage. The total water consumed in 2016-17 is the basis for the 2017-18 charges which are invoiced quarterly. The fourth quarter invoices have been invoiced in June reducing the trade waste deficit to $213K for the year.

This unfavourable variance is offset in part by:

ii. Higher than budgeted development contributions. Forecast has been updated.

j. Water Supply is ahead of budget due to:

i. Higher than anticipated development contributions including Colonial Vineyard Ltd.

ii. Forecast has been updated to include the updated estimate of the capital subsidy for the Seddon water treatment plant.

k. Solid Waste Management revenue is ahead of budget because of:

i. Higher than anticipated dump fees.

ii. Rental and disbursement recoveries for 309 Taylor Pass Road not planned at the time of budget preparation.

These favourable variances are offset in part by:

iii. Less than expected sales of green waste and recyclables. Forecast has been updated.

l. Environmental Science and Monitoring is ahead of budget mainly due to unbudgeted:

i. Grants for earthquake research including Ōpaoa river study and hazard LIDAR information.

ii. Subsidy revenue for undertaking a monitoring and survey programme of the Marlborough Sounds significant marine sites.

iii. Reimbursement of 2016-17 project costs for the EMaR Biodiversity Biosecurity working group.

iv. Reimbursement of staff costs whilst on temporary secondment to the Ministry for the Environment. Forecast has been updated.

m. Resource Consents is less than budget more than $100k however allowing for internal recovery of work completed for other activities it reduces down to the amount reported. Whilst the total number of consents is only 23 less than last year, the limited and public notified applications have reduced by 58 and 17 respectively (these involved more work and consequently higher revenue). In comparison the non notified and usually cheaper consents rose by 52. Forecast has been updated.

n. Building Control is ahead of budget due to increased consent numbers. Total consents rose by 213 to 1482 this year and included an additional 68 residential dwellings which have a greater value of work and inspections required. Forecast has been updated.

o. Compliance is ahead of budget due to:

i. Higher than expected compliance infringements including court fines from Merrill & Ring NZ Ltd.

ii. Increased monitoring administration charges which are being applied more consistently than in previous years.

iii. Higher than budgeted liquor and other licence revenue due to increased applications generally and especially Managers certificates.

iv. Greater than expected food control plan revenue as 2017-18 was estimated. Previously there was a flat fee and this is the first full year with different levels of charges. Forecast has been updated.


p. Biosecurity Pest Management is ahead of budget due to:

i. Higher than budgeted funds received for the National Wilding Conifer Control Programme contracted with the Ministry of Primary Industries. This work has been subcontracted to DOC to be completed by 30 June 2018.

ii. Unbudgeted funds received to co-ordinate the Marine Biosecurity Top of the South project for marine biosecurity measures. Forecast has been updated and indicates almost all of the annual revenue has already been received.

q. Harbours is ahead of budget due to:

i. Increased navigation levies than allowed for.

ii. More than budgeted miscellaneous revenue including a catch up of petrol tax refunds (Oct 2015 to March 2018), pollution response claims and recreational boating programme funding from Maritime NZ. Forecast has been updated.

r. Regional Development revenue is less than budget because of:

i. Slower than anticipated grants for the Flaxbourne Irrigation Scheme. These grants are paid progressively upon completion of agreed milestones which have been further delayed.

ii. Less than budgeted parking infringements.

These unfavourable variances are offset in part by:

iii. Higher than budgeted parking collections and leases.

iv. Unbudgeted capital contributions to the Southern Valley’s irrigation scheme. Forecast has been updated.

Expenditure 6. Total operating expenditure is ahead of budget by $2.94M (3%).

7. Comments are provided below on variances greater than $100,000:

a. Housing for Seniors is ahead of budget because of:

i. Unbudgeted professional fees.

ii. Depreciation higher than budgeted due to a change in useful life of the housing portfolios at the last revaluation. Forecast has been updated.

b. Community Support forecast is ahead of budget due to:

i. Continuing higher than budgeted uptake of energy efficiency services. Payments to service providers are included in the energy efficiency rate levied over 9 years to those ratepayers accepted into the schemes.

This unfavourable variance is partially offset by:

ii. The Queen Charlotte Track project will now commence in October 2018 so the $200K budget will be a carryover request at year end.

iii. Slower than expected claims for approved grant expenditure with the outstanding balance also a carryover to 2018-19. Forecast has been updated.

c. Library Services is ahead of budget due to:

i Unbudgeted loss due to write off of fixed assets as a result of the new radio frequency identification system and self service kiosks in Blenheim and old Picton equipment.

ii Higher than budgeted repairs and maintenance including reallocation of $188K of demolition and asbestos removal costs relating to the old Picton library.

These unfavourable variances are partially offset buy;

iii Internal loan interest less than expected. The budget was based on the 2016-17 capital expenditure budget with the actual completion of the new Picton library in November


2017. We expect this to be closer to budget when end of year funding of new loans is undertaken.

iv Less than budgeted personnel costs due to delays with recruitment of two replacement staff. Forecast has been updated.

d. Emergency Management is less than budget as originally fire suppression costs including plant recoveries were included however are no longer required as responsibility was transferred to FENZ on 1 July 2017. Forecast has been updated.

e. Community Facilities is less than budget due to:

i. Marlborough Lines stadium remedial works grant expenditure less than the budget spread (moved from capital to grants –Council paper 21 September 2017). At this stage it is expected there will be a carryover of $2.3M to the 2018-19 financial year.

ii. Less than budgeted servicing contracts for the many reserves, halls, cemeteries and public conveniences.

These favourable variances are partially offset by:

iii. Consultancy, professional fees, repairs and materials all higher than budgeted for the many halls etc. This includes LED lights and sand replacement at Picton foreshore and sand for drainage at Endeavour Park and seat replacements at the Queen Charlotte lookout.

iv. Loss on disposal of obsolete fixed assets identified in the review of depreciation rates as part of the Long Term Plan process.

v. Depreciation ahead of budget due to the review and change of depreciation rates. There was no rating impact as this depreciation is not funded for reserve assets. Forecast has been updated.

f. Roads and Footpaths expenditure is less than budget mainly due to:

i. Less than expected emergency reinstatement costs.

ii. Various road maintenance including sealed and unsealed pavements, carriage way lighting, traffic services and cycle path all less than budgeted.

iii. Loan interest is less than expected as the budget was based on the 2016-17 capital expenditure budget and the actual expenditure was less.

iv. Less than budgeted depreciation however this will reduce once 2017-18 assets have been processed and six months depreciation charged (usually in August).


v. Unbudgeted grant for the employment of a project co-ordinator and planning costs for the Coastal Pacific cycleway feasibility study approved by Council 23 November 2017.

vi. Higher than expected structure maintenance costs for bridges together with environmental maintenance. Forecast has been updated.

g. Flood Protection and Control Works is ahead of budget due to:

i. Increased contracts, unbudgeted repairs and metal internal recharges mainly related to stopbank work including earthquake damage reinstatement and quarry rock extraction.

This unfavourable variance is partially offset by:

ii. Less than budgeted flood damage repairs. Forecast has been updated.

h. Sewerage is slower than budget due to:

i. Less than expected treatment costs.

ii. Loan interest is less than expected as the budget was based on the 2016-17 capital expenditure budget and the actual expenditure was less.



iii. Higher than expected pump station, grinder pump and reticulation maintenance. Forecast has been updated.

i. Water supply is ahead of budget due to:

i. Increased backflow prevention costs (some offset by revenue received).

ii. Higher than budgeted reticulation maintenance and treatment costs.

These unfavourable variances are partially offset by:

iii. Pump station costs less than anticipated Forecast has been updated.

j. Solid Waste Management is ahead of budget mainly due to:

i. Higher than budgeted landfill and green waste contract charges due to increased fee revenue (5k above).

ii. Increased Ministry for the Environment landfill levy payments (again offset by higher usage 5k above).

These unfavourable variances have been partially offset by:

iii. Reduced fees payable for refuse collection due to a change in the fee structure. The budget for 2018-19 onwards has been changed to allow for this reduction in future years.

iv. Less than budgeted repairs and maintenance

v. Timing of budget spread vs actual expenditure for the landfill ETS obligation based on actual cost of carbon credits units utilised, increased tonnage used and increased liability % (remission % available decreasing and will run out in the 2019 calendar year). An accrual for the six months to 30 June will be actioned as part of the year end accounts. Forecast has been updated.

k. Environmental Policy is ahead of budget due to:

i Higher than budgeted consultancy, travel, accommodation, meeting and deliberation allowances relating to work being undertaken for the Marlborough Environment Plan.

This unfavourable variance is partially offset by;

ii Personnel costs less than budgeted due to recruitment difficulties with the position still vacant.

iii Printing and office supplies under budget due to delays with the plan process and publication costs now in 2018-19. Forecast has been updated.

l. Environmental Science and Monitoring is slower than budgeted due to:

i. Less than budgeted depreciation. Capitalisation of the Coastal multibeam software was in June when depreciation started so less than originally budgeted for 2017-18.

ii. Less than expected contracts and consultancy due to using casual labour. Forecast has been updated

m. Resource Consents expenditure is ahead of budget due to:

i. The requirement to use more independent commissioners instead of councillors for the consent hearings.

ii. Higher than expected legal fees associated with an appeal to the High Court relating to the Davidson Family Trust marine farm appeal at Beatrix Bay.

These unfavourable variances have been partially offset by:

iii Less than budgeted personnel costs due to the vacancy of the senior planner position. Forecast has been updated.

n. Compliance is ahead of budget due to higher than expected legal expenses relating to enforcement orders and prosecutions under the Environment, Resource Management and Dog Control Acts. Forecast has been updated.


o. Biosecurity Pest Management is ahead of budget mainly due to National Wilding Conifer programme costs not originally budgeted (5p above). Forecast has been updated.

p. Regional Development is less than budget due to:

i. Reticulation and pump station maintenance costs for Southern Valley’s irrigation scheme less than expected.

ii. Less than budgeted internal loan interest because of the delays with the Flaxbourne Irrigation project and no loan funding at this stage.

These savings are partially offset by;

iii. Unbudgeted car park building repairs.

iv. Higher than budgeted consultancy. Forecast has been updated.

q. External interest expense is ahead of budget. The original calculations allowed for higher borrowings and were reduced based on the revised predictions for timing and total borrowings. Forecast has been updated.

r. Property and other expenditure is ahead of budget due to:

i. Increased insurance costs due to a rise in the annual LAPP member contribution.

ii. Higher than budgeted consultancy, contracts and legal fees including external secondments to cover staff leave and vacancies.

iii. Unbudgeted earthquake expenditure including assistance with private water supply systems.

iv. Repairs and maintenance higher than budgeted including commercial properties, reception refurbishment and LED lighting replacement in part of DAB building.

v. Increased software costs. Forecast has been updated.

Capital Expenditure 8. Budgeted capital expenditure for the year is $95.51M including $38.77M of carryovers from the

2016-17 financial year and Council approved additions.

Total capital expenditure of $55.31M less all disposals of $11.1M (mainly Investment activities note below) has resulted in net expenditure of $44.21M for the eleven months year to date. Whilst capital expenditure is $12.81M ahead of the same period last year ($31.4M) it is still less than budget by $30.47M.

Investment activities both actual and forecast include the expected costs for development of Stages 4 and 6 Boulevard Park on Taylor brought forward to the 2017-18 financial year and net of stage 4 sales as well as vested asset credit of $2.25M.

9. Indications are that there is likely to be deferrals and carryovers to 2018-2019 of approximately $26.42M in the following activities:

Activity $M Comment Community Facilities $2.08M Delays with Awatere Hall construction and

Havelock Domain upgrade including drainage, retaining wall and car park. Various public conveniences projects on hold pending tourism infrastructure funding. Development and landscaping at Omaka cemetery and Picton historical restoration works deferred due to other priorities. Resource consent delays with new entrance and gateway at the Parker St entrance to Pollard Park, as well as delays with the playground redevelopment.

Corporate Overhead $2M Continuing development of various


Activity $M Comment Information Technology

projects including the Resource Consent system.

Flood Protection & Control Works

$2.15M Lower Wairau stopbank improvement construction delayed due to continuing landowner negotiations. These negotiations are taking longer than expected due to the complicated ownership structure of Maori land. Rock and gabion works at Tuamarina below the rail bridge have been delayed due to other priorities and staff resources. Edge protection work on the Omaka river below Hawkesbury Rd is also on hold for the same reasons. The farm park new wool shed is on hold whilst the required land is purchased.

Regional Development $4.5M Delays with the Flaxbourne Irrigation scheme whilst best alternative option is being designed and progressed.

Roads & Footpaths $5.14M Kenepuru Road seal extension delayed due to lack of contractor resources. Old Renwick Road upgrades and service networks to cater for subdivisional growth deferred. Small township projects slower than expected due to planning and resource issues. Welcome signage taking longer than anticipated due to obtaining NZTA approval. Major rehabilitation works for the Musgraves and Craiglochart bridges delayed due to contractor resources.

Sewerage $4.2M Blenheim pipeline renewals deferred whilst a programme for earthquake damaged earthenware pipelines being developed. Havelock treatment plant upgrade deferred whilst required land is purchased. Picton includes anticipated delays in completing the upgrade project. The Spring Creek project to install a fine screen to remove plastic’s and debris before waste enters the ponds delayed.

Stormwater $2.2M Redwood St pipeline upgrade now scheduled for the next 2 years 2018-19 and 2019-20.

Waste Management $0.43M Proposed pyrolysis plant resource consent withdrawn and other options being considered.

Water $3.72M Strengthening works for the Wither reservoir will be completed in winter 2018 so that no water supply issues will affect householders. Renwick treatment plant and AC pipeline replacement both delayed until 2018-19. Seddon treatment plant works now scheduled for completion September 2018. Awatere pipeline


Activity $M Comment renewals also deferred. Picton reservoir No 1 strengthening work delayed until 2018-19 winter. Pump station & well options being considered for Riverlands water treatment.

10. There will also be savings of $11.11M where projects have been rebudgeted to future years in the

following activities:

Activity $M Comment

Corporate Overhead, Information Technology

$1.5M $1.5M for rural broadband has been rebudgeted to 2018-19 and 2019-20.

Regional Development $0.6M Southern Valleys’ Irrigation pump station upgrades rebudgeted to 2018-19.

Roads & Footpaths $2.09M Blenheim CBD upgrades rebudgeted to complete over the next 3 years 2018-19 through to 2020-21.

Sewerage $3.38M Modelled upgrades of North West periphery pipes and pump stations rebudgeted for next 2 years 2018-19 and 2019-20. Riverlands Industrial upgrade rebudgeted to 2018-19.

Waste Management $0.8M Not all of 2016-17 gas management system carryover required.

Water $2.74M Renwick reservoir and universal metering rebudgeted to 2018-19. Havelock universal metering also rebudgeted to 2018-19.


Source and Disposition of Funds Statement

Source and Disposition of Funds for the 11 months ending 31 May 2018

Actual

$000's

Receipts from rates revenue

54,314 Receipts from user charges

17,800

Receipts from property rentals

5,630 Subsidies

11,269

Interest and dividends

3,288 Sale of assets

11,105

Other revenue

17,522 Cash flow inwards 120,928

Net GST movements

(1,882)

Payments for operating costs

(83,356) Payments for capital expenditure

(54,832)

Cash flow outwards (129,070)

Net (increase)/decrease in investments

7,678 Short Term Westpac Loan

11,000

Net increase/(decrease) in cash (463)

Cash and cash equivalents:

at the beginning of the year

989

as at 31 May 2018

526

Net increase/(decrease) in cash (463)

RECOMMENDED That the financial report for the period ended 31 May 2018 be received.


Actual Budget Forecast BudgetRates 58,669,203 58,572,276 96,927 0% 64,379,766 64,055,364 324,402 1% -less remissions (350,429) (349,778) (651) 0% (597,178) (598,645) 1,467 -0% Rates 58,318,775 58,222,498 96,276 0% 63,782,588 63,456,719 325,869 1%

Rates penalty income 267,302 316,250 (48,948) -15% 338,396 345,000 (6,604) -2% Total Rates 58,586,077 58,538,748 47,329 0% 5a 64,120,984 63,801,719 319,265 1%

Other IncomeDividends 1,798,120 1,801,120 (3,000) -0% 1,798,120 1,801,120 (3,000) -0% Interest Revenue (external) 1,490,240 2,171,756 (681,516) -31% 5b 1,687,672 2,369,188 (681,516) -29% Petroleum Tax 397,950 336,417 61,534 18% 432,000 367,000 65,000 18% Gain on Sale of Fixed Assets 9,120,992 7,919,538 1,201,454 15% 5c 9,121,000 7,919,538 1,201,462 15% Marlborough Regional Forestry 4,292,250 1,622,500 2,669,750 165% 5d 4,425,000 1,770,000 2,655,000 150% Property and Other Revenue 2,628,756 1,666,645 962,111 58% 5e 2,860,000 1,815,787 1,044,213 58%

Total Other Income 19,728,308 15,517,975 4,210,333 224% 20,323,792 16,042,633 4,281,158 211%

Activity IncomeDemocratic Process 1,339 1,540 (201) -13% 1,479 1,680 (201) -12% Culture and Heritage 239 - 239 - 239 - 239 - Housing for Seniors 1,115,936 1,044,062 71,874 7% 1,210,851 1,138,977 71,874 6% Community Safety - - - - - - - -Community Support 325,253 400,885 (75,632) -19% 373,087 436,402 (63,315) -15% Library Services 115,369 122,375 (7,006) -6% 125,078 133,500 (8,422) -6% Emergency Management 28,822 36,933 (8,111) -22% 36,307 39,200 (2,893) -7% Community Facilities 1,900,326 1,279,480 620,846 49% 5f 2,635,000 1,394,859 1,240,141 89% Roads and footpaths 9,446,719 10,203,202 (756,483) -7% 5g 12,073,778 11,877,012 196,766 2% Flood protection and control works 3,534,797 2,853,419 681,379 24% 5h 3,753,455 3,256,478 496,977 15% Sewerage 2,269,020 2,437,354 (168,335) -7% 5i 2,871,617 2,778,932 92,685 3% Stormwater drainage 64,387 69,667 (5,280) -8% 270,720 276,000 (5,280) -2% Water Supply 1,171,645 915,795 255,850 28% 5j 1,874,698 1,629,285 245,413 15% Solid Waste Management 8,273,289 5,551,604 2,721,686 49% 5k 8,912,675 6,079,601 2,833,074 47% Environmental Policy 30,541 - 30,541 - 30,541 - 30,541 - Environmental Science and Monitoring 195,169 3,750 191,419 5104% 5l 208,093 5,000 203,093 4062% Resource Consents 1,436,253 1,521,750 (85,497) -6% 5m 1,521,047 1,658,000 (136,953) -8% Building Control 3,296,108 2,334,202 961,907 41% 5n 3,323,551 2,475,300 848,251 34% Compliance 1,739,991 1,439,433 300,558 21% 5o 1,779,563 1,521,200 258,363 17% Biosecurity (Pest Management) 915,321 464,300 451,021 97% 5p 915,321 506,509 408,812 81% Harbours 565,685 484,823 80,862 17% 5q 612,885 494,323 118,562 24% Regional Development 1,781,272 2,240,244 (458,971) -20% 5r 1,880,000 2,443,899 (563,899) -23%

Total Activity Income 38,207,482 33,404,817 4,802,665 14% 44,409,985 38,146,157 6,263,828 16%

Total MDC Income 116,521,868 107,461,540 9,060,327 8% 128,854,761 117,990,509 10,864,252 9% Total revenue which is non-cash or tied to a reserve or to fund capex (27,258,353) (23,038,867) (4,219,486) 18% (30,172,394) (26,005,606) (4,166,788) 16%

Total MDC Operating Income 89,263,515 84,422,673 4,840,841 6% 98,682,367 91,984,903 6,697,464 7%

Income and Expenditure Statement31 May 2018

Income Year to Date Whole YearVariance Variance

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

$000's 2017-18 YTD Activity Income

budget actual forecast


Actual Budget Forecast BudgetActivity Expenditure

Democratic Process 2,792,468 2,867,584 75,116 3% 3,100,000 3,129,327 29,327 1%Culture and Heritage 2,694,690 2,668,894 (25,796) -1% 2,710,000 2,696,768 (13,232) -0% Housing for Seniors 1,182,556 1,073,084 (109,472) -10% 7a 1,300,000 1,154,321 (145,679) -13%Community Safety - - - - - - - -Community Support 2,300,987 2,505,427 204,440 8% 7b 2,635,000 2,736,846 101,846 4%Library Services 2,333,064 2,145,375 (187,689) -9% 7c 2,523,352 2,339,726 (183,626) -8%Emergency Management 562,611 893,467 330,856 37% 7d 640,000 954,067 314,067 33%Community Facilities 12,915,321 13,085,687 170,366 1% 7e 14,063,865 14,749,927 686,062 5%Roads and footpaths 17,847,858 19,768,229 1,920,371 10% 7f 19,967,544 22,044,827 2,077,283 9%Flood protection and control works 5,853,261 4,605,135 (1,248,126) -27% 7g 6,700,000 5,000,132 (1,699,868) -34%Sewerage 9,559,871 9,989,224 429,353 4% 7h 10,504,355 10,949,878 445,523 4%Stormwater drainage 1,971,358 2,043,961 72,602 4% 2,169,406 2,244,596 75,190 3%Water Supply 8,111,061 7,992,898 (118,163) -1% 7i 8,854,498 8,736,494 (118,004) -1%Solid Waste Management 9,259,811 8,868,983 (390,828) -4% 7j 10,283,216 9,657,513 (625,702) -6%Environmental Policy 2,088,169 1,686,892 (401,277) -24% 7k 2,390,000 1,858,169 (531,831) -29%Environmental Science and Monitoring 3,352,434 3,606,382 253,947 7% 7l 3,825,000 3,940,342 115,342 3%Resource Consents 2,620,983 2,450,343 (170,639) -7% 7m 2,843,518 2,670,962 (172,556) -6%Building Control 3,462,108 3,415,495 (46,613) -1% 3,787,266 3,725,468 (61,798) -2%Compliance 2,529,509 2,389,610 (139,899) -6% 7n 2,737,522 2,605,875 (131,647) -5%Biosecurity (Pest Management) 1,984,029 1,556,518 (427,511) -27% 7o 2,396,971 1,697,026 (699,944) -41%Harbours 1,321,757 1,340,423 18,666 1% 1,460,000 1,457,530 (2,470) -0%Regional Development 5,055,442 5,251,297 195,855 4% 7p 5,500,000 5,829,902 329,902 6%

Total Activity Expenditure 99,799,348 100,204,907 405,560 0% 110,391,512 110,179,696 (211,816) -0%Includes Internal Interest 5,426,069 6,556,431 1,130,362 17% 6,022,108 7,152,470 1,130,362 16%

94,373,279 93,648,476 (724,802) -1% 104,369,403 103,027,226 (1,342,178) -1%

Other expenditureInterest expense (external) 2,198,783 2,035,000 (163,783) -8% 7q 2,420,000 2,220,000 (200,000) -9%Property and other expenditure 4,294,907 2,728,395 (1,566,513) -57% 7r 5,572,776 2,962,676 (2,610,100) -88%

Total other expenditure 6,493,690 4,763,395 (1,730,296) -36% 7,992,776 5,182,676 (2,810,100) -54%

Total MDC expenditure 100,866,969 98,411,871 (2,455,098) -2% 112,362,179 108,209,902 (4,152,278) -4%Total expenditure which is non-cash orreserve funded (12,605,123) (13,092,903) (487,780) 4% (14,202,638) (14,554,753) (352,115) 2%Total MDC operating expenditure 88,261,846 85,318,968 (2,942,878) -3% 98,159,541 93,655,149 (4,504,393) -5%Operating SURPLUS 1,001,669 (896,294) 1,897,963 -212% 522,826 (1,670,245) 2,193,071 -131%

Income and Expenditure Statement31 May 2018

Expenditure Year to Date Whole YearVariance Variance

-

20,000

40,000

60,000

80,000

100,000

120,000


$000's 2017-18 YTD Activity Expenditure



Net capital expenditureActual Budget Forecast Budget

Democratic Process - - - - - - - -Culture and Heritage 6,918 45,833 38,916 85% 6,918 50,000 43,082 86% Housing for Seniors 313,935 315,000 1,065 0% 313,935 315,000 1,065 0%Community Safety - - - - - - - -Community Support 71,786 114,807 43,021 37% 84,000 125,245 41,245 33%Library Services 3,486,490 3,823,237 336,747 9% 3,536,323 4,170,809 634,486 15%Emergency Management 16,342 27,250 10,908 40% 17,092 28,000 10,908 39%Community Facilities 3,744,346 4,869,739 1,125,393 23% 4,461,100 5,935,339 1,474,239 25%Roads and footpaths 13,766,564 19,672,880 5,906,316 30% 17,142,750 21,870,715 4,727,966 22%Flood protection and control works 2,002,625 3,962,786 1,960,161 49% 2,660,945 5,024,604 2,363,659 47%Sewerage 15,311,364 23,382,451 8,071,088 35% 17,759,292 25,628,110 7,868,817 31%Stormwater drainage 586,529 3,631,792 3,045,263 84% 904,029 3,171,451 2,267,422 71%Water Supply 5,730,402 13,065,148 7,334,746 56% 7,325,693 14,332,273 7,006,580 49%Solid Waste Management 4,544,254 1,709,632 (2,834,622) -166% 4,667,500 1,824,147 (2,843,353) -156%Environmental Science and Monitoring 704,350 867,607 163,257 19% 988,040 946,480 (41,560) -4%Consents and Compliance 8,497 5,958 (2,539) -43% 8,497 6,500 (1,997) -31%Harbour Control 140,275 658,896 518,622 79% 157,941 718,800 560,859 78%Regional Development 438,245 5,724,995 5,286,749 92% 486,616 6,243,172 5,756,556 92%Investment activities (7,838,412) (1,692,163) 6,146,249 -363% (9,500,000) (951,358) 8,548,642 -899%Corporate Overheads 1,175,828 5,598,367 4,422,539 79% 1,554,120 6,067,036 4,512,916 74%

Total Net Capital Expenditure 44,210,338 85,784,215 41,573,877 48% 52,574,792 95,506,323 42,931,531 45%

Variance Variance

Capital Expenditure Statement31 May 2018

Year to Date Whole Year

-

20,000

40,000

60,000

80,000

100,000

120,000


$000's 2017-18 YTD Net Capital Expenditure



12. Marlborough Research Centre (Chairman) (Report prepared by Dean Heiford) E100-011-01

Purpose 1. The Marlborough Research Centre Trust’s Research Allocation 2018 / 19 report is attached.

(Refer Appendix 1)

2. At the meeting of 9 February 2017 the proposed indicators for MRC were agreed. These were as follows

Minute No: A.16/17.261

That the proposed Performance Indicators for MRC are agreed as follows:

a) July each year

i) Report to Council confirming annual research allocations approved by MRC Board and Trust

b) August each year

i) Report to Council staff on any LTP performance indicators relating to the preceding financial year for inclusion in the Annual Report

c) November each year

Present annual audited report on MRC activities in research programme outcomes, MRC operations and new regional growth initiatives.

3. Gerald Hope, Chief Executive, Marlborough Research Centre will provide a presentation on the proposed areas of focus for 2018/19.

Proposed Changes to the Application of Funding

4. Since 2014/15 when the budget for the MRC was $131,600, Council has increased its operating grant to $250,000 primarily to support the Food and Beverage Cluster.

5. For the 2018/19 year the use of that additional funding is proposed to be reallocated. In general terms the Food and Beverage Cluster investment is proposed to reduce and investment in the NZ Winegrowers Research Centre facility design and planning increased.

6. Council may also wish to review the performance indicators for the MRC with the proposed change in funding allocations.

RECOMMENDED No recommendation pending discussion by the Committee

.


Appendix 1

Marlborough Research Centre Trust Research Allocation 2018 / 19

1. The Marlborough District Council provides grant funding to the Trust of $250,000 per annum to assist with its operations, research and initiatives to support Marlborough’s primary producers and food and beverage sectors.

2. The Trust has reporting obligations to Council as follows:

• July – Report to Council confirming annual research allocations approved by MRC Board and Trust.

• August – Report to Council staff on performance for inclusion in Council’s Annual Report.

• November - Present annual audited report on MRC activities in research programme outcomes, MRC operations and new regional growth initiatives.

MRC Funding Allocations for Research and Initiatives 3. For the 2018 / 2019 financial year MRC have the following key initiatives:

• Support New Zealand Wine in the development of its New Zealand Regional Institute for Viticulture and Oenology (RIVO). Since named NZ Winegrowers Research Centre.

• Continue support for primary sector research projects undertaken in Marlborough.

• Continued development of the Food and Beverage Cluster and related initiatives.

4. New Zealand Regional Research Institute for Viticulture and Oenology has been formalised contractually between Government and New Zealand Wine. The core undertakings by New Zealand Wine during 2018 will be to determine preferred site, RIVO concept and timing of establishment. MRC have meet with New Zealand Wine and expressed a willingness to cooperate fully with New Zealand Wine in order to facilitate the establishment of the Regional Institute on an expanded Budge Street site. At present it is yet to be determined what the role of MRC will be but provision has been made to assist New Zealand Wine within the operational budgets of MRC. MRC have tagged funding from its internal operating budgets to support the RIVO initiative over the coming financial year. This funding will be used to engage and undertake feasibility assessments related to the initiative assuming MRC have a continued role of landlord for the developed facility.

5. The following allocations ($118,000) for research have been made by the Trust:

• Chilean Needlegrass ($36,000) – new research proposal.

• Dryland’s Forestry ($10,000) – continued support for national programme to select durable hardwood.


• PhD Student research Scholarship ($13,000) – support for PhD student research project undertaken in conjunction with Plant and Food Research and Auckland University.

• Plant and Food Research ($2,000) – workshop seminar research grant.

• Metrological services ($25,000) – weather data monitoring services.

• Phenology monitoring ($27,000) – continue Marlborough programme of phenology monitoring from Rowley Vineyard for supporting information in metrological reporting.

• Landcare - SFF Vespula wasp control ($5000) extension and growth of existing programme ending 2020.

6. Development and Support of the food and beverage sector in Marlborough. There are three key areas of support provided by MRC to the food and beverage sector ($110,000)

• Connection to national food and beverage network through Massey University $60,000.

• Support for the continued market connections with China (Tianjin / Beijing) - $10,000.

• Business support for cluster members – self funding.

7. New initiative – It is proposed to underwrite the establishment of a food technologist to assist business within the region ($40,000). Discussions with the Food Pilot in Palmerston North and companies in the region to support Massey University establish on the ground presence in the region.

8. MRC also supports the Cawthron Marlborough Environment Award in conjunction with Plant and Food Research and the Marlborough Lines Science Fair ($2700)

MRC Trust Meeting

9. The MRC Trust are meeting on 20 July to consider the recommendations of the MRC Board which meet on 19 July to consider proposed research funding allocations.


13. Information Package

RECOMMENDED That the Planning, Finance & Community Information Package dated 26 July 2018 be received and noted.


14. Decision to Conduct Business with the Public Excluded Decided: That the public be excluded from the following parts of the proceedings of this meeting, namely:

- Rating Sale Instruction

- Housing for Seniors Sub-Committee

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General Subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under Section 48(1) for the passing of this resolution

Rating Sale Instruction

Housing for Seniors Sub-Committee

In order to protect the privacy of natural persons, as provided for under Section 7(2)(a).

That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under Section 7 of the Local Government Official Information and Meetings Act 1987.

Notice of Committee Meeting – Thursday, 26 July 2018 · focusing on the development of a balanced...

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