Agenda of Council Meeting - 26 October 2017

File Ref: 17/1039

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Chief Financial Officer

Bruce Allan

Group Manager: Community Facilities & Programmes

Alison Banks

SUBJECT: Waingākau Village Proposal from te Taiwhenua o Heretaunga

1.0 SUMMARY

1.1 The purpose of this report is to obtain a decision from the Council to support in principle Te Taiwhenua o Heretaunga (TToH) proposal presented to Council on the 26 September 2017.

1.2 This request arises after TToH presented the Waingākau Village Business Case to Councillors at a workshop in September 2017 detailing a mix of Community Housing (Cohousing) and conventional housing development options in Flaxmere West.

1.3 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances

1.4 The objective of this decision relevant to the purpose of Local Government is to enable Council to realise value from land held for resale in a way that meets the current and future needs of the Flaxmere community by encouraging the development of good quality and affordable homes.

1.5 This report concludes by recommending that Council support TToH proposal in principle only, to allow TToH to further investigate and consult wider with potential stakeholders while Council Officers develop a Social and Affordable Housing Strategy which will identify Councils role in the social and affordable housing sector.

2.0 BACKGROUND

2.1 As part of the development of Flaxmere in the 1980s a subdivision was created for an area of land located between Boston Crescent, Mitchell Place, Tarbet Street and Kirkwood Road. The subdivided land owned by Council comprises 73 sections. Roading and services are fully complete to 31 sections; 23 sections have services but no road access and 19 sections have no roading or full services. Subdivision details are provided in in the map below.

2.2 The Hastings City Council was the purchaser of the blocks of land for all of Flaxmere for subdivision and was the subdivider. All of the separate residential titles were issued by 1990. Development of some of the roads and services was stopped due to the slowdown in sales from the late 1980s.

2.3 Records show that the development has been accounted for through the Flaxmere Land Development Reserve at that time and as part of the subdivision consent and development contributions were accounted for at that time.

2.4 From 2007 to 2009 Council and Te Taiwhenua O Heretaunga (TToH) considered a joint project (Matariki) for quality affordable housing on the subdivision and the adjacent land owned by TTOH but this proposal did not eventuate.

2.5 In 2013 the Council and Te Taiwhenua O Heretaunga also had discussions on the possibility of a land swap involving some of the subdivision sections but this also did not eventuate.

2.6 In 2014 Council had discussions with Horvath Construction Ltd who were interested in developing a proposal to purchase all of the 73 sections owned by Council in this area. A formal proposal was however never received.

2.7 Following the discussions with Horvath Construction, officers undertook a stocktake and strategic review of Council’s surplus land holdings in Flaxmere. The investigations identified that the land held within close proximity to the Flaxmere Town Centre potentially had more strategic value for the purpose of developing housing for the older members of the community should that opportunity arise. Although the findings of these investigations were never formalised with Council.

2.8 The review also identified that there was a potentially greater opportunity to develop good quality family homes on this Kirkwood Road land with the ultimate aim of improving the overall housing stock in this part of Flaxmere.

2.9 In April 2016 Council received a proposal from Bruce Greaves to develop good quality affordable housing on the sections owned by Council that fronted Kirkwood Road. Council agreed to sell six sections to Mr Greaves at that time. Houses have been built or are currently under construction on 4 of those sections. Later in 2016 Council placed the balance of sections along Kirkwood Road on the open market with a further eight sections being sold.

2.10 Council has in the Kirkwood Road / Te Aranga Marae area 59 sections still available for sale and development under the current subdivision layout.

2.11 In early 2017 Councillors voiced their concerns around homelessness and social and affordable housing in the Hawkes Bay. Officers were instructed to revisit the Matariki Housing Development Project and reengage with TToH and other key stakeholders.

2.12 A working group was formed with representatives from Council, Te Taiwhenua o Heretaunga (TToH), U-Turn Trust and Te Aranga Marae to evaluate the best options for further development of the land owned by Council and TToH between Kirkwood Road and Mitchell Place / Boston Crescent in Flaxmere.

3.0 CURRENT SITUATION

3.1 A workshop was held on the 7 July 2017 where George Reedy (TToH CEO) and Emma Horgan (TToH Project Manager) introduced Council to the Waingākau Village project outlining the ownership of the land at Flaxmere west, introducing Cohousing concepts and examples, highlighted key stakeholders and further work required before coming back to Council in September 2017.

3.2 George Reedy and Emma Horgan again presented to Council on September 26^th which included an overview of the detailed business case that has been developed to-date. The Waingākau Village Business Case highlighted three options from traditional housing, cohousing and a mix of both traditional and cohousing.

3.3 The project team preferred option was the combination of Community Housing (Cohousing) and conventional housing as detailed below.

3.4 Council is an important enabler of development in this area and still owns 59 sections as shown in the map below. Council owned land is highlighted in light blue on the map below and effectively encompasses the area where option 3 above has been identified for traditional type housing with some of the Council land required for the cohousing development.

3.5 A summary of the Waingākau Village Business Case is attached as Attachment 1

3.6 Key elements of the proposal include the development of 76 Cohousing houses and 44 houses in the conventional development style using the existing subdivision layout. The cohousing approach is an intentional community of clustered housing with common shared neighbourhood facilities. The attached document provides more detail on the principles of cohousing. The 76 cohousing house would be made up of the following:

Type A (50m²) - 12 one bedroom houses

Type B (80m²) - 14 two bedroom houses

Type C (100m²) - 35 three houses

Type D (125m²) – 15 larger three bedroom houses

3.7 The Business Case acknowledges that the land in question for this proposed development is land owned by both Council and TToH, the proposal at this stage does not provide detail on how the development will be undertaken and how that would be funded. A much more detailed proposal will come back to Council that will further investigate the delivery of such a development.

3.8 Council has yet to identify what role it plays with the provision of social and affordable housing but with the development of social and affordable housing strategies it is anticipated that clearer understanding of Council’s role can be developed around need, housing and land stock as well as identifying and understanding other agencies/organisations roles in this environment.

3.9 Council has a number of parcels of land in Flaxmere that could contribute to providing affordable or social housing solutions and officers will present to Council over the coming months more details on this and the options that Council can consider.

4.0 OPTIONS

4.1 Option 1 – Support in principal the preferred concept developed by TToH to allow them to consult with the public and potential funding partners.

4.2 Option 2 – decline to support the project and advise officers to undertake further option assessments.

5.0 SIGNIFICANCE AND ENGAGEMENT

5.1 This matter has been considered in relation to Council’s Significance and Engagement Policy and is not considered to be significant and no consultation is required.

6.0 ASSESSMENT OF OPTIONS (INCLUDING FINANCIAL IMPLICATIONS)

6.1 Option 1 – Support in principal the preferred concept developed by TToH to allow them to consult with the public and potential funding partners.

6.2 Social and affordable housing along with homelessness is having a negative impact on our communities throughout Hawkes Bay.

6.3 Council has partnered with the U-Turn Trust and Te Aranga Marae in supporting Te Taiwhenua o Heretaunga in the development of the Waingākau Village Business Case.

6.4 The Waingākau Village Business Case is a community led innovative approach in addressing a number of social issues in a positive and unique manner while targeting our communities housing needs.

6.5 By supporting this option in principle, Council will be enabling TToH to approach and consult with the community, other organisations and agencies to secure support and understand potential financial investment opportunities.

6.6 At the same time Council will be developing the social and affordable housing strategies which will intern enable Council to be better informed when making further decisions and provide more clarity for Council in regard to the role that it will take.

6.7 By December 2017 both TToH and Council Officers will be in a better place to update Council and put a well-informed proposal on the table for consideration.

6.8 There is no requirement of Council at this stage to confirm what involvement Council may have with this project, including how and when Council will sell the 59 sections still in Council ownership.

6.9 If Council was to support this project in principle as it has been asked to do, the information that will be gathered through TToH’s consultation will help inform Council further as to the role that it will take and how and when it will sell down the sections that are currently owned by Council. Council will have the opportunity to satisfy itself as to the most suitable financial arrangement for this project.

6.10 There is no financial impact on Council at this stage by supporting the TToH with the preferred option.

Option 2 – decline to support the project and advise officers to undertake further option assessments.

6.11 Council has partnered with the U-Turn Trust and Te Aranga Marae in supporting Te Taiwhenua o Heretaunga in the development of the Waingākau Village Business Case. Declining to support the project at this stage may be a little premature as the consultation with the community, interested stakeholders and potential funders will provide some more clarity as to the preferred involvement of Council in this project.

7.0 PREFERRED OPTION/S AND REASONS

7.1 Officer’s recommendation is to support option one, the proposal being developed by TTOH has the potential to meet a number of housing and social needs while reducing risk to Council and is therefore the preferred option.

8.0 RECOMMENDATIONS AND REASONS

A) That the report of the Chief Financial Officer titled “Waingākau Village Proposal from te Taiwhenua o Heretaunga” dated 26/10/2017 be received.

B) That Council accept in principle Te Taiwhenua o Heretaunga proposal which will allow them to further investigate and consult wider.

C) That the Council’s in principle decision is not to be considered or taken as any form of consent or approval in terms of the Council’s regulatory role under the Resource Management Act 1991, Building Act 2004 or any other statute.

D) That Council officers will further explore what involvement it will have with the delivery of the Waingākau Village project and present this back to Council.

E) That Council Officers develop Social and Affordable Housing Strategies and present to Council for endorsement in November 2017.

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities for good quality local infrastructure by addressing Social and Affordable Housing issues in partnership with community and key stakeholders.

Attachments:

Waingakau Village Business Case

CG-14-1-00463

File Ref: 17/997

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Manager Strategic Finance

Brent Chamberlain

SUBJECT: Hastings District Holdings Limited - Amendment to Constitution

1.0 SUMMARY

1.1 The purpose of this report is to seek approval from Council to amend the constitution of the Hastings District Holdings Limited (HDHL) Limited to not require the accounts to be audited annually whilst under CCO exemption.

1.2 This request arises from the financial burden an annual audit places on HDHL and its subsidiary companies whilst these companies are dormant and not trading ($3,800 for HDHL in 2017, and $8,400 for the group).

1.4 The objective of this decision relevant to the purpose of Local Government is to make prudent use of Council funds.

1.5 This report concludes by recommending Hastings District Holdings amends its constitution to require only non audited consolidated financial statements be provided and no external auditor be appointed whilst granted CCO exempt status.

2.0 BACKGROUND

2.1 Hawkes Bay Opera House Limited (HBOHL) was exempted from being a CCO in 2014 following the closure of the facilities and the decision for HBOHL to cease trading. This exemption removes the CCO reporting requirements including reporting to the Holding Company and any requirement to prepare a statement of intent.

2.2 Hastings District Properties Limited (HDPL) was exempted from being a CCO at the Finance and Monitoring Committee meeting held on 21 March 2017. It was approved at December 2016’s Finance and Monitoring Committee meeting to put HDPL into recession once the Fitzroy Avenue residential development was completed. To date there are 2 lots unsold but both have sale and purchase agreements on them.

2.3 HDHL was exempted from being a CCO at the Finance and Monitoring Committee meeting held on 21 March 2017 due to inactivity with both it’s subsidiaries (HBOHL and HDPL) being in recession.

2.4 Council can revoke the exemptions at any time.

2.5 Section 6 (4) of the Local Government Act 2002 identifies entities that are not considered to be CCOs, which includes an organization exempted under Section 7. Section 7 of the Local Government Act allows for the exemption and provides for a local authority to provide that exemption provided they have taken into consideration matters specified in the act which include:

a) the nature and scope of the activities provided by the organisation; and

b) the costs and benefits, if an exemption is granted, to the local authority, the council controlled organisation, and the community.

3.0 CURRENT SITUATION

3.1 HDHL Constitution states:

“13.3 Reports to be Delivered to Shareholders: Within three months after the end of each financial year of the Company the directors shall deliver to the shareholders.

13.3.2 Financial Statements: Audited consolidated financial statements for that financial year in respect of the Company and its subsidiaries; and subsidiaries; and

13.3.3 Auditor’s Report: The auditor’s report on:

a) those financial statements; and

b) the performance targets and other measures by which performance has been judged in relation to the objectives.

13.6 Audit: In accordance with the Local Government Act the Audit Office shall be the auditor of the Company”.

3.2 At present the annual Audit New Zealand fees for 2016/17 were:

Hastings District Holdings Limited $3,800 (net of GST)

Hawke’s Bay Opera House Limited $2,500 (net of GST)

Hastings District Properties Limited $2,100 (net of GST)

Total HDHL Group $8,400 (net of GST)

3.3 At the board meeting of HDHL held on the 26 September 2017 the Director’s considered the appropriateness of the 3 entities having an audit while not trading, and the board recommended that it:

a) Approve to amend the Hawke’s Bay Opera House Limited constitution to require only non-audited consolidated financial statement to be provided and no external auditor be appointed whilst granted CCO exempt status.

b) Approve to amend the Hastings District Properties Limited constitution to require only non-audited consolidated financial statement to be provided and no external auditor be appointed whilst granted CCO exempt status.

Subject to

c) A paper to go to Council in October 2017 requesting approval to amend the Hastings District Holdings Limited constitution to require only non-audited consolidated financial statement to be provided and no external auditor be appointed whilst granted CCO exempt status.

4.0 OPTIONS

4.1 It is considered to be economical to amend the Constitutions of HDHL to reflect its CCO exempt status and enable savings of annual fees to be achieved.

Option 1: Approve the request to amend the Constitution of Hastings District Holdings Limited to require only non audited consolidated financial statements be provided for the Company and its subsidiaries and no external auditor be appointed whilst granted CCO exempt status.

Option 2: Decline the request to amend the Constitution of Hastings District Properties Limited to require only non audited consolidated financial statements be provided for the Company and its subsidiaries and no external auditor be appointed whilst granted CCO exempt status.

5.0 SIGNIFICANCE AND ENGAGEMENT

5.1 The issues for discussion are not significant in terms of the Council’s Significance Policy and Engagement and no consultation is required.

6.0 PREFERRED OPTION AND REASONS

6.1 By amending the constitution of Hastings District Holdings Limited the annual audit fees charged would be saved. As neither HDHL, HDPL, or HBOHL are actively trading at present, imposing the audit requirements on these companies would be uneconomical.

6.2 Council can at any time revoke the exemptions granted.

6.3 HDPL and HBOHL would need to amend their own constitutions to enable these savings to take place as they also currently require audits.

6.4 The preferred option is to grant approval to HDHL to change its constitution as set out in Option 1 in section 4.1. This would involve amending the following clauses in the constitution of the Hastings District Holdings Limited to read:

"13.3 Reports to be Delivered to Shareholders: Within three months after the end of each financial year of the Company the directors shall deliver to the shareholders:

13.3.2 Financial Statements: Consolidated financial statements for that financial year be prepared in accordance with generally accepted accounting standards in respect of the Company and its subsidiaries; and

13.3.3 Auditor's Report: If the Company and its subsidiaries are not exempted from being a CCO, an auditor shall be appointed to report on:

(a) those financial statements; and

(b) the performance targets and other measures by which performance has been judged in relation to the objectives.

13.6 Audit: If an auditor is to be appointed, in accordance with the Local Government Act the Audit Office shall be the auditor of the Company."

6.5 That HDHL, HDPL, and HBOHL need to adhere to the Council’s standard financial management policies and financial controls even while holding CCO exempt status. The directors will also still be required to prepare financial statements in accordance with generally accepted accounting standards to be delivered within three months of the end of the financial year to the shareholders.

7.0 RECOMMENDATIONS AND REASONS

A) That the report of the Manager Strategic Finance titled “Hastings District Holdings Limited - Amendment to Constitution” dated 26/10/2017 be received.

B) That Hastings District Council approve the amendment of the following clauses in the constitution of the Hastings District Holdings Limited to read:

“13.3 Reports to be Delivered to Shareholders: Within three months after the end of each financial year of the Company the directors shall deliver to the shareholders:

13.3.3 Auditor’s Report: If the Company and its subsidiaries are not exempted from being a CCO, an auditor shall be appointed to report on:

(a) those financial statements; and

(b) the performance targets and other measures by whichperformance has been judged in relation to the objectives.

13.6 Audit: If an auditor is to be appointed, in accordance with the Local Government Act the Audit Office shall be the auditor of the Company.”

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities for performance of regulatory functions in a way that is most cost-effective for households and business by making prudent expenditure of Council funds.

Attachments:

There are no attachments for this report.

File Ref: 17/844

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Community Safety Manager

John Payne

SUBJECT: Palmbrook Reserve - Dog Leash Control

1.0 SUMMARY

1.1 The purpose of this report is to obtain a direction from Council on whether or not to undertake a dog control bylaw review.

1.2 This issue arises from two complaints received regarding the control of dogs in Palmbrook Reserve over the recent weeks. The Mayor has asked staff to report this issue to Council.

1.3 Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.4 This report concludes by recommending that Council retains the existing condition of the Consolidated Bylaw 2016 with Palmbrook Reserve being an off leash area.

2.0 BACKGROUND

2.1 The Dog Control bylaw 2009 was amended and incorporated in the Hastings District Council Consolidated Bylaw 2016. This bylaw is due for review 2021.

2.2 As part of the consultation/public notification process, all dog owners were written to (requirement under section 10(2) of the Dog Control Act 1996), a letter was included in all household rates notification and advertising was undertaken in local newspapers and on Councils’ website.

2.3 Forty five submissions were received from thirty six submitters. Submissions covered the following topics:

· Dog Exercise – “off leash” areas

· Dog Prohibited areas

· Fees

· Education

· Selected Owner Policy

2.4 One submitter requested Palmbrook Reserve as an “off leash” area. The submitter spoke to her submission and produced a petition with 78 signatures supporting Palmbrook Reserve as an “off leash” area.

2.5 Staff comments to the submission were - Palmbrook Reserve has an unfenced children's playground therefore does not meet the requirements as an “Off Leash” area. However the majority of users of the Palmbrook Reserve currently don’t leash their dogs and no complaints are generated.

2.6 After discussion Councillors resolved to add Palmbrook Reserve as an exercise area where dogs are permitted “off leash”

3.0 CURRENT SITUATION

3.1 Palmbrook Reserve is currently a ‘dog exercise’ area. Hastings District Council Consolidated Bylaw, Chapter 3 schedule A.

3.2 Every day a significant number of people walk through Palmbrook Reserve, some with dogs, some without. Some dogs are leashed as their owners prefer it that way and some dogs are free running.

3.3 The Animal Control unit received a complaint regarding a kitten being killed by a dog being exercised unleashed in Palmbrook Reserve. The dog owner, an elderly woman, whisked her dog away and neither the dog nor the owner were ever located.

3.4 The Mayor received a complaint of an elderly woman losing her balance and falling over as a result of an unleashed dog running by. Contact has been made with the retirement home asking people to report issues with dogs in the area so that Council can follow up. No other complaints have been received regarding dogs in this reserve in the past 12 months.

3.5 The Parks & Property Services Manager and the Community Safety Manager met with the initial complainant at the reserve. Many dog owners were observed walking their dogs through the reserve, some leashed and others unleashed.

3.6 As a result signs have been erected:

· 2 x signs on the bridge advising ‘Dogs on a Leash on the Pathway’

· 3 x signs around the children’s play area – ‘No Dogs Allowed’

· 3 x signs at the entry points by the children’s play area ‘Dogs on a Leash on the Pathway’

· 1 Sign at the school sports field entrance ‘Dogs Not Permitted on Sports Field’

3.7 Contact has also been made with Havelock North Intermediate and Havelock

North High Schools, neither of which have identified any dog related issues in the area.

4.0 OPTIONS

4.1 Status quo – leave Palmbrook Reserve as an off-leash area.

4.2 Undertake a review of Chapter 3 of the Consolidated Bylaw.

5.0 SIGNIFICANCE AND ENGAGEMENT

5.1 If the bylaw is reviewed it would be required to go through the public consultation process under section 156(1) of the Local Government Act 1974

156 Consultation requirements when making, amending, or revoking

bylaws made under this Act

(1) When making a bylaw under this Act or amending or revoking a bylaw made under this Act, a local authority must—

(a) use the special consultative procedure (as modified by section 86)

if—

(i) the bylaw concerns a matter identified in the local authority’s

policy under section 76AA as being of significant interest to the public; or

(ii) the local authority considers that there is, or is likely to be, a

significant impact on the public due to the proposed bylaw or changes to, or revocation of, the bylaw; and

(b) in any case in which paragraph (a) does not apply, consult in a manner that gives effect to the requirements of section 82.

5.2 Under the existing bylaw Council can add exercise areas (‘off leash’) by publically notified resolution. There are no provisions to remove an exercise area by publically notified resolution.

5.3 A ‘leash control’ area means any area that is not:

a) A dog exercise area or

b) A dog prohibited area

6.0 ASSESSMENT OF OPTIONS (INCLUDING FINANCIAL IMPLICATIONS)

6.1 Status quo – there are always going to be complaints in an area with mixed

use and high popularity. Animal Control received 3009 complaints in the 2016/2017 year. Only one complaint related to Palmbrook Reserve which would indicate that the area has the right use. Retaining the off leash provision for Palmbrook Reserve is the supported option.

6.2 Undertake a review of Chapter 3 of the Consolidated Bylaw – Prior to the

development of the Consolidated Bylaw 2016, Palmbrook Reserve was a leash control area. As the area generated no complaints no enforcement was carried out. Dog owners often exercised their dogs off leash despite the on-leash requirements, as they have always done across the district.

6.3 It is estimated that a review of Chapter 3 of the Consolidated Bylaw 2016 would cost about $10,000.

7.0 RECOMMENDATIONS AND REASONS

A) That the report of the Community Safety Manager titled “Palmbrook Reserve - Dog Leash Control” dated 26/10/2017 be received.

B) That Council retains the existing conditions of the Consolidated Bylaw, Chapter 3 Dog Control with Palmbrook Reserve being an off leash area.

i) Ensuring that Council meets its statutory requirements under the Dog Control Act 1996

Attachments:

There are no attachments for this report.

File Ref: 17/992

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Parks Planning and Development Manager

Rachel Stuart

Parks and Property Services Manager

Colin Hosford

SUBJECT: 2017/18 Proposed CBD Work Programme

1.0 SUMMARY

1.1 The purpose of this report is to obtain a decision from the Council on the use and reallocation of funds set aside in the current budget for projects in the Hastings CBD.

1.2 This proposal arises from Council’s desire to review the CBD work programme in order advance a number of key projects,

1.4 The objective of this decision relevant to the purpose of Local Government is the provision of good quality local and public infrastructure which meets the needs of our community by contributing towards establishing vibrant, functional and high amenity urban centres.

1.5 This report concludes by recommending that Council approve the amended 2017/18 funding programmes to advance the upgrade of Karamu Road and CBD enhancement initiatives.

2.0 BACKGROUND

2.1 While the Hastings CBD has had extensive street improvements over the last 20 years, both Council and the business community recognise the need to maintain investment in the CBD to enable it to remain a vibrant and attractive place to do work and do business in.

2.2 Following extensive community consultation, Council adopted the 2013 City Centre Plan and 2015 Hastings City Vibrancy Plan, which includes the vision and proposed action plan for the CBD.

2.3 A new funding stream titled the Vibrancy Fund, was included in the 2015-25 Long Term Plan (LTP) to assist in the implementation of these identified actions.

2.4 This fund is in addition to the funding allocated to the CBD Street Upgrade Programme.

CBD Upgrade Programme

2.5 The CBD Upgrade Programme is funded substantially (80%) via a targeted rate on properties within the Hastings CBD, and equates to $300,000 per annum.

2.6 Following consultation with the Hastings Business Association, Council adopted a revised ten year CBD Street Upgrade Programme in February 2017 (Attachment 1). This sets out an agreed street upgrade programme, that seeks to deliver a considered series of projects that will add to the vibrancy of the CBD, while responding to other related projects in an integrated fashion.

Vibrancy Plan

2.7 In addition the Vibrancy Plan contains specific actions focused upon developing a CBD improvement programme that builds on and complements that intent of the strategy. The funding allocation to meet the objectives of the Vibrancy Plan are identified in Table 1 below. As identified earlier, while there are funds available in the current financial year, these projects have been on hold pending direction from Council.

Table 1: Vibrancy Fund Programme of Works

Description	17/18	18/19	19/20	20/21	21/22	22/23
Lighting	$25,000				$80,000
Gateways	$80,000
Street Improvement	$275,000
Rail Corridor		$150,000		$550,000		$500,000
Total Vibrancy	$380,000	$150,000		$550,000	$80,000	$500,000

3.0 CURRENT SITUATION

3.1 During the recent 2018-28 Long Term Plan workshops, Council considered a number of new proposals seeking the further enhancement of the Hastings CBD. Many of these proposals require considerable investment outside of the scope of the existing work programmes, including the Eat Street proposal and Civic Square redevelopment. These are proposed for consideration as part of the 2018-28 LTP consultation programme, and a recommendation is included in this report accordingly.

3.2 These workshops did however provide Council with an opportunity to request that officers advance some already adopted projects that have been on hold, pending such direction, before advancing to full design and the construction stage.

3.3 Council has now given officers a clear direction that it wants to advance a number of these Hastings CBD works as a priority.

3.4 In order to achieve this, this report recommends that Council adopt a revised CBD Upgrade Programme and Vibrancy Programme that is consistent with the new vision for the CBD, and the current status of associated projects.

4.0 OPTIONS

4.1 Council has two options to consider:

CBD Upgrade Programme

Option 1: Adopt a revised CBD Upgrade Programme

Option 2: Retain the existing CBD Upgrade Programme

Vibrancy Fund

Option 3: Authorise the Proposed 2017/18 Vibrancy Fund Programme

Option 4: Authorise the Proposed 2017/18 Vibrancy Fund Programme with amendments as requested.

5.0 SIGNIFICANCE AND ENGAGEMENT

5.1 While the total work programme proposed by officers is of a considerable value, it does not challenge any of Council’s significance thresholds. In addition, Council has already carried out consultation on the projects and their respective budgets during the formulation of the last LTP and subsequent Annual Plan processes. Targeted consultation with the Hastings Business Association has also been carried out and meets their wider CBD streetscape aspirations for CBD vibrancy.

5.2 As the proposed work programme seeks to deliver an already agreed suite of urban enhancements, no further consultation is deemed necessary except for sharing the worked up concepts with the Landmarks Advisory Group and the Hastings Business Association.

6.0 ASSESSMENT OF OPTIONS (INCLUDING FINANCIAL IMPLICATIONS)

CBD Upgrade Programme

6.1 The approved programme identifies (1) Karamu Road and (2a) Eastbourne Street (Railway Road) as the upgrade priorities for the next four financial years as identified in Table 2 below:

Table 2: Adopted CBD Upgrade Programme (2016-2019)

Description	16/17	17/18	18/19	19/20	TOTAL
(1) Karamu Road		$280,000	$300,000	$298,000
(2a) Eastbourne Street – Railway Road	$120,000	$578,000
Total Expenditure	$120,000	$858,000	$300,000	$298,000	*$1,576,000*

6.2 The timeline for the construction of the new police station has been extended, which means that the $578,000 set aside for Eastbourne Street (Railway Road) can be redirected to bring the Karamu Road upgrade forward.

6.3 Option 1 therefore proposes a minor resetting of the first four years of the programme, as proposed in Table 3 below.

Table 3: Proposed Revised CBD Upgrade Programme (2016-2019)

Description	16/17	17/18	18/19	19/20	TOTAL
(1) Karamu Road		$878,000
(2a) Eastbourne Street – Railway Road			$120,000	$578,000
Total Expenditure		$878,000	$120,000	$578,000	*$1,576,000*

6.4 This shifting of priorities will allow Council to make progress on the adopted Karamu Road project earlier while still retaining funds to upgrade Eastbourne Street when the other linked projects will require support in 18 -24 months.

6.5 If Council is supportive of this amendment, officers will present concept plans for Karamu Road to the next available meeting. With Council’s direction, officers can finalise these plans ready for tender in the New Year.

6.6 As at October 2017, there is currently $952,387 in the fund, following the construction of the Heretaunga Street West 200 block and the Eastbourne Street bus shelter. On this basis Council can safely and appropriately dedicate $878,000 to Karamu Road in 2017/18 while retaining sufficient funds (via carry forwards and new funds) to upgrade Eastbourne Street in 2019/20.

6.7 The proposed revised CBD Upgrade Programme is included in Attachment 2.

Vibrancy Fund

6.8 In addition to the above, there is $380,000 in the current 2017/18 Vibrancy Fund budget, which was provisionally earmarked for lighting, gateways and miscellaneous street improvements. Following the direction given in the Council workshop, officers are now confident to make recommendations on how the 2017/18 funds may be spent. These proposed actions are identified in Table 4 below:

Table 4: Proposed 2017/18 Vibrancy Fund Programme of Works

Priority	Description	Cost Estimate
1	Stage Relocation and Improvements	$150,000
2	Tables & Chairs	$20,000
3	Snake Light Flag Tracks/Lights	$40,000
4	Queen Street Improvements (Potted Trees)	$50,000
5	East Block Façade Enhancement	$20,000
6	Mall Lighting*	$100,000
	Total	$380,000

Stage Relocation and Improvements

6.9 The location, design and functionality of the stage in the mall has been raised on a number of occasions by users of the facility, as well as the community and members of the Business Association.

6.10 With regard to location, the stage is currently set approximately 20 metres back from the pedestrian ‘desire line’, with a 9 metre grass verge directly in front. This results in a lack of direct interaction between stage performers and pedestrians, especially when the grass area is damp or muddy.

6.11 While the stage is located facing due south with associated wind problems, more problematic is the absence of a back wall to the stage, making performers feel exposed, together with difficulties in creating backdrops and concealing (and providing) necessary technical equipment.

6.12 Officers have worked with an architect to provide a concept to relocate the stage further towards the mall, retaining all of the artistic design features of the roof. In addition, it is proposed to build an extension to the back of the stage, which would provide both the necessary back wall, but also provide 2 storage areas: one area for the proposed tables and chairs in the mall, and the other for technical equipment required for performances. This area would also enable Council to provide and safely store onsite technical equipment, which would encourage greater use of the stage by performers who currently have to bring or hire their own sound equipment.

Tables and Chairs

6.13 The provision of outdoor café tables and chairs for shoppers and office workers to sit and enjoy a coffee or lunch is another component of a successful and vibrant CBD. If these are freestanding and lightweight, it provides the user the freedom to move them to a location and configuration that suits their needs. The provision of such furniture requires the provision of a nearby facility to store them in, which is proposed as part of the stage extension. City Assist could be charged with the pack in and out.

Snake Light Flag Tracks

6.14 Over the past couple of years, Council has rolled out the provision of flag track systems on over 150 street lights on the main routes within Flaxmere, Hastings and Havelock North to improve the amenity of the streetscape, and facilitate the cost effective marketing of events within the District.

6.15 The provision of flag tracks on the CBD ‘snake lights’ are the proposed Stage 3 of this roll out. Given their unique design, they require a specially fabricated flag track, which has been manufactured and trialled on one of the lights at the entrance to the Retail Park. The provision of these track systems would benefit a number of events wishing to promote within the direct CBD, as well as the ability to promote Christmas and the Blossom Parade.

Queen Street Improvements

6.16 Consultation and feedback from building owners has identified a desire to improve the visual appeal of the Queen Street block between Russell Street and Hastings Street.

6.17 It is proposed that Council invest in the provision of trees in formal containers, to be located either directly in front of businesses, or on the footpath beside the kerb.

East Block Façade Enhancement

6.18 It is recommended that officers concentrate façade enhancement efforts in the 100 and 200 east block, and work with building owners to enhance the remaining 11 buildings yet to take advantage of the scheme. Colour schemes are currently being prepared, and it is recommended that with an additional block of funding, these two whole blocks could be completed. This would work in well with events that are being held in Hastings in this area for the Art Deco Festival, which is celebrating its 30^th anniversary next February.

Mall Lighting

6.19 The provision of amenity lighting has been successful in highlighting and enhancing a number of buildings, artworks, trees and other features within the CBD. It is recommended that this amenity lighting be extended to include feature lighting within the mall.

6.20 The mall currently contains a number of vertical structures, including the two storey buildings, artworks and trees, which makes the addition of feature lighting challenging. Officers have spoken with David Trubridge who designed the leaf lights within the mall, who is keen to provide his design expertise in coming up with some options. If Councillors agree to progress the lighting within the mall, officers will report back with options at its next meeting.

6.21 It is to be noted that future CBD improvement initiatives will be considered as part of the 2018-28 Long Term Plan process.

7.0 PREFERRED OPTION/S AND REASONS

CBD Upgrade Programme

7.1 Option 1 is the preferred option.

7.2 The development of the current LTP has had the benefit of providing a clear direction on Council’s vision for our main commercial district. While officers have been progressing preliminary concepts for Karamu Road, there has been uncertainty on how the priority projects will appropriately be integrated. With that clear direction now being given, officers seek to progress Karamu Road as the current priority for this financial year.

7.3 If Council was to adopt Option 2, it would mean that progressing the upgrade of Eastbourne Street would remain a priority, but realistically little key Hastings CBD street works would occur for another two years. The current approved programme includes the upgrade of only one Karamu Road block and the Eastbourne Street precinct. While one Karamu Road block is achievable, Council would not likely proceed with Eastbourne Street until the Police Station rebuild and Civic Square revamp. While it makes sense to defer the Eastbourne Street work for two years, it would not be sending a positive signal to our community with regard to Council’s commitment to a vibrant Hastings CBD.

7.4 Council can be assured it has appropriate funds available to advance the work. In addition the proposed projects have a strong level of support from the key stakeholders. The proposed works will contribute to CBD vibrancy and continue to develop the Hastings commercial heart’s point of difference in Hawkes Bay.

Vibrancy Fund

7.5 Option 3 is the preferred option. This will enable officers to commence work on the delivery of a number of projects that will provide positive enhancement to the CBD in the short term, without impacting on the medium-long term visions proposed within the 2018/28 LTP.

7.6 They are all projects that meet the objectives of the City Centre Strategy that was the culmination of consultation with the wider community, as well as business owners within the CBD. Council can therefore be assured that they are projects that will be met with community approval.

8.0 RECOMMENDATIONS AND REASONS

A) That the report of the Parks Planning and Development Manager titled “2017/18 Proposed CBD Work Programme” dated 26/10/2017 be received.

Hastings CBD Upgrade Programme

B) That Council resolve to adopt Option 1 and that the Hastings CBD Upgrade Programme for 2016/26 be amended by altering the timing of works as reflected in the following table.

	2015/ 16	2016/ 17	2017/ 18	2018/ 19	2019/ 20	2020/ 21	2021/ 22	2022/ 23	2023/ 24	2024/ 25	2025/ 26
(1) Karamu Road			$878
(2a) Eastbourne Street - Railway Rd				$120	$578
(2b) Eastbourne Street - Civic Square						$231	$231	$231
(3) Market Street										$289	$289
(4) King Street									$215	$215
(5) Central Water Feature				$231
(2) Miscellaneous Street Works						$50		$50
Total Expenditure			$878	$351	$578	$281	$231	$281	$215	$504	$289
Cumulative Spend			$878	$1,229	$1,807	$2,088	$2,319	$2,600	$2,815	$3,319	$3,608
Cumulative Funding Provision	$600	$900	$1,200	$1,500	$1,800	$2,100	$2,400	$2,700	$3,000	$3,300	$3,600

Costs estimates are as at February 2016.

Vibrancy Fund

C) That Council resolve to adopt Option 3 and approve the proposed 2017/18 Vibrancy Fund Programme of Works as set out below.

Priority	Description	Cost Estimate
1	Stage Relocation and Improvements	$150,000
2	Tables & Chairs	$20,000
3	Snake Light Flag Tracks/Lights	$40,000
4	Queen Street Improvements (Potted Trees)	$50,000
5	East Block Façade Enhancement	$20,000
6	Mall Lighting*	$100,000
	Total	$380,000

Long Term Plan 2018-28

D) That Council consider further CBD improvement initiatives as part of the 2018-2028 Long Term Plan process.

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities for good quality local infrastructure by:

i) Meeting the needs of our community by contributing towards establishing vibrant, functional and high amenity urban centres.

Attachments:

1	CBD Upgrade Programme Adopted February 2017	CFM-10-17-206
2	CBD Upgrade Programme Proposed Revised October 2017	CFM-10-17-207

File Ref: 17/996

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Financial Controller

Aaron Wilson

SUBJECT: Adoption of the Annual Report and Summary 2016/17

1.0 SUMMARY

1.1 The purpose of this report is to obtain a decision from the Council on the adoption of the 2016/17 Annual Report and 2016/17 Summary Annual Report.

1.2 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.3 This report enables Council to meet the legislative requirements of the Local Government Act 2002.

1.4 This report concludes by recommending that the 2016/17 Annual Report and 2016/17 Summary Annual Report be adopted.

2.0 BACKGROUND

2.1 Council is required, by section 98 of the Local Government Act 2002, to adopt the Annual Report within four months of the end of the financial year (by 31 October).

2.2 The report must comply with generally accepted accounting practice as determined by various financial reporting standards. A number of other statutory requirements must also be met.

2.3 An interim report on the end year rating result was presented to the Finance & Monitoring Committee on 12 September 2017. This report focused on the result against budget and the rating surplus for the year, which was a surplus of $1,158,370 and was allocated as follows:

	TOTAL	Rating Area 1	Rating Area 2
*2016/17 Rating surplus allocation*
Community Health Assistance Fund	100,000	80,000	20,000
Contingency Reserve	500,000	400,000	100,000
Rating Area One Water Supply Targeted Rate	297,411	297,411	-
Rating Area Two Capital Reserve	260,959	-	260,959
Total Allocation	1,158,370	777,411	380,959

2.4 The interim report also included an interim Hastings District Council accounting surplus before gains and losses on revaluations from the Statement of Financial Performance of $13.032m. As advised in the interim report this reported result was at the time unaudited.

3.0 CURRENT SITUATION

3.1 The year-end accounting result has remained unchanged but for some very minor rounding adjustments and now reported as $13.033m.

3.2 The 2016/17 Summary Annual Report (Attachment 1) will be circulated under separate cover to this report.

3.3 The 2016/17 Annual Report will be circulated as Attachment 2 under separate cover. At the time of preparing this report the Annual Report was in the final stages of review with Audit NZ. If any further changes are required they are expected to be minor and will be made available at the Council meeting.

4.0 RECOMMENDATIONS AND REASONS

A) That the report of the Financial Controller titled “Adoption of the Annual Report and Summary 2016/17” dated 26/10/2017 be received.

B) That the 2016/17 Annual Report be adopted with any inconsequential amendments made at the meeting and any necessary drafting corrections delegated to the Chief Executive.

C) That the 2016/17 Summary Annual Report be adopted with any inconsequential amendments made at the meeting and any necessary drafting corrections delegated to the Chief Executive.

Attachments:

1	2016/17 Annual Report Summary	CG-14-1-00464	Under Separate Cover
2	2016/17 Annual Report	CG-14-1-00465	Under Separate Cover

File Ref: 17/1022

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Democratic Support Manager

Jackie Evans

SUBJECT: Requests Received under the Local Government Official Information and Meetings Act (LGOIMA) Monthly Update

1.0 SUMMARY

1.1 The purpose of this report is to inform the Council of the number of requests under the local Government official Information Act (LGOIMA) 1987 received in September 2017.

1.2 This issue arises from the provision of accurate reporting information to enable effective governance

1.4 The objective of this decision relevant to the purpose of Local Government is to ensure that the Council is meeting its legislative obligations

1.5 This report concludes by recommending that the report be noted.

2.0 BACKGROUND

2.1 The LGOIMA allows people to request official information held by local government agencies. It contains rules for how such requests should be handled, and provides a right to complain to the Ombudsman in certain situations. The LGOIMA also has provisions governing the conduct of meetings.

Principle of Availability

2.2 The principle of availability underpins the whole of the LGOIMA. The Act explicitly states that:

The question whether any official information is to be made available … shall be determined, except where this Act otherwise expressly requires, in accordance with the purposes of this Act and the principle that the information shall be made available unless there is good reason for withholding it.

Purpose of the Act

2.3 The key purposes of the LGOIMA are to:

· progressively increase the availability of official information held by agencies, and promote the open and public transaction of business at meetings, in order to:

o enable more effective public participation in decision making; and

o promote the accountability of members and officials;

and so enhance respect for the law and promote good local government; and

· protect official information and the deliberations of local authorities to the extent consistent with the public interest and the preservation of personal privacy.

2.4 City, district and regional councils, council controlled organisations and community boards are subject to LGOIMA and official information means any information held by an agency subject to the LGOIMA.

2.5 It is not limited to documentary material, and includes material held in any format such as:

· written documents, reports, memoranda, letters, notes, emails and draft documents;

· non-written documentary information, such as material stored on or generated by computers, including databases, video or tape recordings;

· information which is known to an agency, but which has not yet been recorded in writing or otherwise (including knowledge of a particular matter held by an officer, employee or member of an agency in their official capacity);

· documents and manuals which set out the policies, principles, rules or guidelines for decision making by an agency;

· the reasons for any decisions that have been made about a person.

2.6 It does not matter where the information originated, or where it is currently located, as long as it is held by the agency. For example, the information could have been created by a third party and sent to the agency. The information could be held in the memory of an employee of the agency.

What does a LGOIMA request look like?

2.7 There is no set way in which a request must be made. A LGOIMA request is made in any case when a person asks an agency for access to specified official information. In particular:

· a request can be made in any form and communicated by any means, including orally;

· the requester does not need to refer to the LGOIMA; and

· the request can be made to any person in the agency.

Key Timeframes

2.8 An agency must make a decision and communicate it to the requester ‘as soon as reasonably practicable’ and no later than 20 working days after the day on which the request was received.

2.9 The agency’s primary legal obligation is to notify the requester of the decision on the request ‘as soon as reasonably practicable’. The reference to 20 working days is not the de facto goal but the maximum unless it is extended appropriately in accordance with the Act.

2.10 The Act provides for timeframes and extensions as there is a recognition that organisations have their own work programmes and that official information requests should not unduly interfere with that programme.

3.0 CURRENT SITUATION

3.1 Council has requested that official information requests be notified via a monthly report.

4.0 RECOMMENDATIONS AND REASONS

A) That the report of the Democratic Support Manager titled “Requests Received under the Local Government Official Information and Meetings Act (LGOIMA) Monthly Update” dated 26/10/2017 be received.

B) That the LGOIMA requests received in August 2017 as set out in Attachment 1 (CG-14-1-00460) of the report in (A) above be noted.

Attachments:

LGOIMA - Cumulative Monthly Report to Council - September

CG-14-1-00460

File Ref: 17/1063

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Executive Advisor/Manager: Office of the Chief Executive

Mike Maguire

SUBJECT: Havelock North Community Centre Trust - Deed of Lease - Havelock North Community Centre

1.0 SUMMARY

1.1 The purpose of this report is to obtain a decision from the Council to approve a new Deed of Lease and Management Agreement for the Havelock North Community Centre Trust to manage the Havelock North Community Centre for a new term of 6 years from 1 November 2017.

1.2 This issue arises from the expiry of the current lease on 1 November 2017.

1.4 The objective of this decision relevant to the purpose of Local Government is to enable the cost effective management of the Havelock North Community Centre.

1.5 This report concludes by recommending that Council endorse the attached Deed of Lease and Management Agreement.

2.0 BACKGROUND

2.1 The Council is the owner of the Havelock North Community Centre (the centre is now known as the Havelock North Function Centre) in Te Mata Road, Havelock North. The Havelock North Community Centre Trust (The Trust) is the organisation that carried out the planning and fundraising for the Community Centre and oversaw its construction and fitting out.

2.2 The Trust has been leasing the Community Centre since its construction was completed in the 1990’s. Each lease has been for a term of 6 years at a rental of $1.00 per annum.

2.3 The Community Centre provides five rooms of varying sizes which can be leased for anything from an interview to a full scale conference for 250. There is a high level of amenity provided including an on-site catering service. Typical functions held at the Havelock North Community Centre include conferences, meetings, art exhibitions, concerts, weddings and funerals.

3.0 CURRENT SITUATION

3.1 The Trust is ready and willing to renew the Lease and Management Agreement for a further term of 6 years. The Havelock North Community Centre is well run and is extremely well used.

3.2 The Trust is also operating with an annual operating grant subject to a contract for Service with the Council.

4.0 OPTIONS

4.1 Staff have not explored any other practicable options as the current management arrangement generally works well. The Trust is the body that raised the finance for the construction of the facility. The lease provisions enable the relationship between the occupancy of the facility and the contract for service to be modified to reflect each other

5.0 SIGNIFICANCE AND ENGAGEMENT

5.1 The proposed draft has been provided to the Trust who have agreed with the proposals which include a new provision requiring the centre to be made available to the Council for the purposes of an Emergency Response Centre.

5.2 While the effective operation of the community centre is of some importance to the Havelock North community in the terms of the Significance and Engagement Policy this matter does not trigger any specific consultation requirements and can be considered as a matter of minor significance.

6.0 PREFERRED OPTION/S AND REASONS

6.1 That the Council renew the Deed of Lease and Management Agreement for the Havelock North Community Centre with the Havelock North Community Centre Trust in accordance with the document numbered CFM-11-06-2-17-44 attached to this report.

7.0 RECOMMENDATIONS AND REASONS

A) That the report of the Executive Advisor/Manager: Office of the Chief Executive titled “Havelock North Community Centre Trust - Deed of Lease - Havelock North Community Centre” dated 26/10/2017 be received.

B) That the Council renew the Deed of Lease and Management Agreement for the Havelock North Community Centre with the Havelock North Community Centre Trust in accordance with the document numbered CFM-11-06-2-17-44 as attached to the report.

With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities for good quality local infrastructure and local public services in a way that is most cost-effective for households and business by: continuing the current good management of the Havelock North Community Centre.

Attachments:

Havelock North Community Centre Draft Deed of Lease

CFM-11-06-2-17-44

File Ref: 17/1075

REPORT TO: Council

MEETING DATE: Thursday 26 October 2017

FROM: Project Manager

Ansonica Botha

SUBJECT: Opera House Precinct - Plaza Redevelopment and Municipal Building Detailed Design and Early Contractor Involvement

1.0 SUMMARY

1.1 The purpose of this report is to obtain a decision from Council on the budget requirements for the Plaza Redevelopment and approval to proceed with the developed and detailed design for the Municipal Building.

1.2 The objective of this decision relevant to the purpose of Local Government is to meet the current and future needs for good quality local infrastructure.

1.3 This report concludes by recommending:

1.3.1 That an additional $300,000.00 (excl GST) be approved for the developed and detailed designs and fees required during the construction phase for the Plaza Redevelopment.

1.3.2 That Council gives approval to commence with developed and detailed designs and fees required during the construction phase for the seismic strengthening of the Municipal Building at an estimated cost of $750,000.00 (excl GST).

1.3.3 That Gemco Construction Ltd be approved for the Early Contractor Involvement (ECI) process for the Plaza Redevelopment and Municipal Building Seismic Strengthening at no cost to Council.

2.0 PLAZA BACKGROUND

2.1 At the Council meeting held on 22 June 2017 Council approved the following recommendation:

“B) That the Committee adopt the recommendations of the concept plan Option 2: Dome Timber Diagrid & ETFE Roof to be progressed to the detailed design phase and the consequent construction and build.

C) That the Committee approve a total budget of $2.5 million including public donations/fundraising to enable the construction of the proposed Plaza development.”

3.0 PLAZA CURRENT SITUATION

3.1 The budget of $2.5 million for the Plaza Redevelopment is for the construction costs and excludes professional services and consenting fees.

3.2 At the 22 June 2017 Council meeting it was reported that the funding required for design and consenting was estimated at $120,000.00 and a budget of $150,000.00 was available from the 2015/16 Plaza site renewals.

3.3 An estimate for the required professional services fees was obtained from Rhodes and Associated Ltd. They are the quantity surveyors currently engaged on the Theatre seismic strengthening project.

3.4 Rhodes and Associates Ltd has estimated the professional services fees required to take the concept for option 2: Dome Timber Diagrid and ETFE to full detailed design plus fees required during the construction phase for the Plaza Redevelopment at $450,000.00 (excl GST). This excludes consenting and insurance costs as they are unknown at this stage.

3.5 The $150,000.00 funding from the 2015/16 Plaza site renewals is still available, which leaves a shortfall of $300,000.00 (excl GST).

3.6 These fees are required in addition to the $2.5 million budget approved for construction by Council on 22 June 2017.

3.7 Council has expressed the desire the limit internal guttering at Council facilities. A review of the guttering requirements for Option 2 has shown that it will not be possible to eliminate all internal gutters, but robust design measures will be put in place to limit the risk associated with internal gutter systems.

4.0 PLAZA SIGNIFICANCE AND ENGAGEMENT

4.1 The issue of significance has been assessed in terms of Council’s Significance Policy and in particular the thresholds and criteria contained within this policy. This issue does not trigger any of the financial thresholds or satisfies any criteria of significance in this policy at this time.

4.2 The redevelopment of the Plaza is of particular importance to the community and reference and usage of previous community consultation and the current Council and community plans have been used to inform the conceptual design.

4.3 Discussions have been held with Opera House staff, Opera House Project Control Group, Opera House Sub-committee and past users of the space to develop an understanding of the community needs at the Plaza. The plans have been developed as a clear desire to respond to the facility’s users groups and the wider community’s aspirations.

5.0 MUNICIPAL BUILDING BACKGROUND

5.1 The concept design phase for the Municipal Building was completed in March 2015. At that time further development of the strengthening design was put on hold and design effort was focused on the Theatre.

5.2 The Theatre strengthening is currently under construction. Further development of the strengthening scheme for the Municipal Building needs to be progressed to enable Council to make a decision on whether to proceed with construction of the strengthening design or not.

5.3 By progressing the design now, Council will be in a position to make a decision regarding construction that will enable both the Municipal Building and the Theatre to be completed at the same time.

5.4 If the facilities cannot be completed together, the Municipal Building will remain fenced off while the Theatre will be in use.

5.5 One of the emergency exits for the Theatre is the alleyway that runs between the Theatre and the Municipal Building. If the work on the Municipal Building is not completed by the time the Theatre opens, an alternative solution will need to be found as the Municipal Building wall next to the alleyway is earthquake prone and not acceptable as part of the emergency exit plan.

6.0 MUNICIPAL BUILDING CURRENT SITUATION

6.1 Rhodes and Associates Limited prepared an estimate for the full detailed design plus fees required during the construction phase of the Municipal Building. The estimated the fees required are $750,000.00 based on 11.7% of the construction estimate of $6.4 million provided by Rhodes and Associated Ltd at the end of the concept design phase. This excludes consenting and insurance costs as they are unknown at this stage.

7.0 MUNICIPAL BUILDING SIGNIFICANCE AND ENGAGEMENT

7.1 The Hawke’s Bay Opera House project (including the Municipal Building) has been through a special consultative process in accordance with the Local Government Act 2002 and the Council’s Significance and Engagement Policy. The matters in this report do not require any further assessment or consideration of significance and engagement.

8.0 EARLY CONTRACTOR INVOLVEMENT

8.1 At the Tenders Subcommittee meeting held on 15 December 2016, the Committee approved the engagement of Gemco Construction Ltd for the Hawke’s Bay Opera House Seismic Strengthening ECI at no cost to Council.

8.2 The request for tender for ECI for the Hawke’s Bay Opera House Seismic Strengthening also included the possibility of adding the Municipal Building at Council’s discretion. It is recommended that this option is enacted.

8.3 During the ECI process for the Theatre Gemco Construction Ltd became an integral part of the project team; contributing ideas, assessing risk, developing risk mitigation measures and optimising the construction methodology, cost and program. They have collaborated in an open and transparent manner with all parties.

8.4 It is recommended that the Plaza Redevelopment be added to the ECI engagement because of Gemco Construction Ltd’s ECI performance on the Theatre and inter-relationship of the three sites (Theatre, Municipal Building and Plaza).

8.5 As part of Gemco Construction Ltd’s ECI involvement to date, they have identified the opportunity to utilise the Plaza during the construction of the new Theatre roof.

8.6 Heavy steel beams required for the theatre roof will need to be crane lifted into place. Without the option to use the Plaza space, a 100 ton crane would be required to be parked on Hastings Street and therefore the street would need to be close.

8.7 Using the Plaza space, Gemco Construction Ltd can use a lighter 50 ton crane with an associated cost saving of $75,000.00 and Hastings Street will be able to remain open.

8.8 The ECI process does not have any cost to Council.

9.0 FINANCIAL IMPLICATIONS

9.1 Council has committed $12.64 million towards the Hawke’s Bay Opera House Theatre Seismic Strengthening. This includes construction costs of $11.3 million and fees of $1.34 million.

9.2 Council has also approved $2.5 million for the construction of Option 2 for the Plaza Redevelopment.

9.3 An additional $0.3 million is required for the professional services for the Plaza developed and detailed designs and fees required during the construction phase.

9.4 And additional $0.75 million is required for the professional services for the Municipal Building developed and detailed designs and fees required during the construction phase.

9.5 If the Plaza Redevelopment and/or the Municipal Building does not proceed to construction, the total fees required in 9.3 and 9.4 will be reduced.

9.6 If Council agrees to proceed with recommendations the current total financial commitment to the precinct projects is $16.19 million. This excludes the construction costs for the Municipal Building and external funding.

9.7 Once the final designs have been completed and the construction costs confirmed, for the Plaza Redevelopment and Municipal Building Seismic Strengthening, a report on each will be presented to Council to make a decision on whether to proceed with construction.

10. RECOMMENDATIONS AND REASONS

A) That the report of the Project Manager titled “Opera House Precinct - Plaza Redevelopment and Municipal Building Detailed Design and Early Contractor Involvement

B) That an additional $300,000 (excl GST) be approved for the developed and detailed designs and fees required during the construction phase for the Plaza Redevelopment.

C) That Council gives approval to commence with developed and detailed designs and fees required during the construction phase for the seismic strengthening of the Municipal Building at an estimated cost of $750,000 (excl GST).

D) That Gemco Construction Ltd be approved for the Early Contractor Involvement (ECI) process for the Plaza Redevelopment and the Municipal Building Seismic Strengthening at no cost to Council.

Attachments:

There are no attachments for this report.

POSITION	NAME
Half Back	Shamara	Brooks
Lock	Emil	Crichton
Half back	Folau	Fakatava
Number Eight	Devan	Flanders
Right Wing	Trent	Hape
Left Lock	Tone	Hohipa
Hooker	Damarus	Hokianga
Outside Back	Gideon	Kautai
Loosehead Prop	Kianu	Kereru-Symes
Prop	Corban	Kireka
Hooker	Miracle	Lolofie
Right Lock	Donovan	Mataira
First Five Eighth	Lincoln	McClutchie
Openside Flanker	Jeriah	Mua
Left Wing	Kini	Nasolo
Centre	Dennon	Robinson
Prop	Zoe	Southwick
Loosie	Jacob	Stephenson
Tighthead Prop	Josiah	Tavita-Metcalfe
Loosie	Sam	Taylor
Second Five	Jordan	Thompson-Dunn
Full Back	Danny	Toala
Blindside Flanker	Liam	Udy-Johns

Committee	Date	Time	Venue
Joint Waste Futures Project Steering Committee	Thursday, 23 November 2017	9.30am	Council Chamber
Risk and Audit	Wednesday, 28 November 2017	10.30am	Council Chamber

Hastings District Council

Lyndon Road East, Hastings