Balmoral Water Committee BALMORAL WATER COMMITTEE

Transcription

1 BALMORAL WATER COMMITTEE Balmoral Water Committee MEETING AGENDA 7 pm Thursday 3 December 2015 In the Council Chambers, Mountainview Road Culverden Community partnership in growth and wellbeing.

2 Committee Membership: Mr B Black (Chairperson) Cr D Davison Mr C Draper Mr D Norrie Mr P Smith Mrs L Pickering Quorum: no less than 4 members Significance Consideration (Guidelines from Hurunui District Council s Significance and Engagement Policy) The Council, in considering each matter, must be: a. Satisfied that it has sufficient information about the practicable options and their benefits, costs and impacts, bearing in mind the significance of the decisions. b. Satisfied that it knows enough about and will give adequate consideration to the views and preferences of affected and interested parties bearing in mind the significance of the decisions to be made. Questions a. Does the Council have sufficient information about the issue, proposal, decisions or other matter? b. Does the issue, proposal, decisions or other matter: Affect all or a large portion of the community in a far-reaching way? Have a potential impact or consequence on the affected persons (being a number of persons) that is substantial? Have financial implications on the Council s resources that would be substantial? Generate (or would be expected to generate) a high degree of controversy? Have any impact on Council s capacity to undertake its statutory responsibilities? Fail to flow logically or consequentially from a decision in the Council s Long Term Plan? Evaluation Council officers preparing these reports will have regard to Council s policy on significance. Councillors will make the final assessment on whether the subject under consideration is to be regarded as being significant or not. Unless the Council explicitly determines that the subject under consideration is to be deemed significant then the subject will be deemed as not being significant.

3 1 BALMORAL WATER COMMITTEE THURSDAY 3 DECEMBER 2015 AT 7PM ITEM ORDER OF BUSINESS Pages Apologies Announced Urgent Business Conflict of Interest Declarations 1 Minutes of the previous meeting Decision items: Nil 3 Discussion items : 3.1 Financial and Budget Report Information Items: 4.1 Balmoral Water Report Correspondence Outward Submission to the Long Term Plan Inward Hurunui District Council - Response to Submission to the Long Term Plan Keith Backhouse

4 2 Meeting Balmoral Water Committee Time and Date 7 pm, 30 April 2015 Venue Council Chambers, Mountainview Rd, Culverden Members Present In Attendance Apologies Absent Conflict of Interest Declarations Urgent Business Bruce Black (Chairperson) Mayor Winton Dalley, Cr Dick Davison, Keith Backhouse, Dougal Norrie, Chris Draper, Louise Pickering, Phil Smith D Edge (Manager Infrastructure Services Assets ) Jason Beck (Manager Financial Services), Brett Beer (Team Leader Utilities), Maree Hare (Committee Secretary) There were no apologies Nil. Nil. There was no Urgent Business 1. Minutes THAT THE MINUTES OF THE ORDINARY MEETING HELD ON 16 MARCH 2015 AS CIRCULATED ARE CONFIRMED. Black/ Davison CARRIED Matters Arising: Tank Farm The Chairperson advised that the committee had visited the Tank Farm and the following queries were raised Concerns were expressed regarding the $14,000 cost for the Consent however it was noted that this cost was not just for the Consent. The number of new tanks needed was discussed and it was suggested that the Pahau river is a reliable source for water and could be used for water in the summer if needed. It was also suggested that there is no point in purchasing tanks if they are not needed because water can be pumped from the river if they run dry. The meeting was advised that the new tanks cost $2750 each and it was agreed that this price is reasonable.

5 3 It was suggested that water testing be done further up stream every second or third test and it was noted that the new tanks will be easier to clean by flushing than the old ones. THAT 12 TANKS BE PURCHASED FOR THE BALMORAL WATER SCHEME Norrie/ the motion lapsed. THAT 18 TANKS BE PURCHASED FOR THE BALMORAL WATER SCHEME Draper/the motion lapsed. THAT 15 TANKS BE PURCHASED FOR THE BALMORAL WATER SCHEME. Black/Norrie CARRIED 7. DECISION ITEMS 7.1 Proposed Global Rating system The meeting discussed the proposed Global rating system fully and it was noted that the committee had met informally to discuss this issue and had agreed that the status quo remains. Concerns were expressed regarding depreciation. The Chair advised that the committee have investigated the proposed Drinking Water Standards and agreed that a Sedimentation Extraction system by put in at the pump shed and filtration systems on water for human consumption. The committee agreed that 90% of the water on the scheme is for stock. It was noted that there is no township using the scheme water and the Manager Infrastructure Services Assets agreed noting that filters on houses would be acceptable because there is no community of more than 50 people using the scheme and only approximately 12% of the water is used for human consumption. The committee agreed to put a submission to the draft Long Term Plan stating that they wish the status quo to remain and that in the event that a large sum of capital is required the scheme members will fund it themselves. The Manager Support Services replied to a query regarding insurance for the scheme advising that Council is part of the LAPP scheme where the schemes will replace 40% after a disaster and Govt will put in the other 60%. The committee agreed that they will take responsibility for Insurance and scheme upgrades and that Council be asked to continue with the financial and labour part of the scheme and that the scheme will still be a Council owned asset and there will still be overheads charged. It was suggested that a set of rules be recorded for future generations and the committee agreed. THAT THE BALMORAL WATER COMMITTEE WILL NOT BE PART OF THE PROPOSED LONG TERM PLAN GLOBAL RATING SYSTEM AND THE STATUS QUO REMAINS. Draper/ It was agreed that the committee will run the scheme employing council to

6 4 8. DISCUSSION ITEMS manage it and the committee will cover all capital costs themselves Seconder /Norrie CARRIED It was agreed that the resolution becomes the submission to the draft Long Term Plan 2015/25 and that the Chairperson and one other person will speak to it. 8.1 Balmoral Water Committee Financial Report The report from the Manager Financial Services providing the financial report to year end 31 March 2015 was considered. 9. INFORMATION ITEMS 9.1 Balmoral Water Committee Budget Update Urgent Business The report from the Manager Support Services providing an update on the Budget for the Balmoral Water Scheme was considered and the following points noted - Noted that the rate will increase to $139 in the next financial year. There was no urgent business Meeting Ended The meeting ended at 8.22

7 5 To: Balmoral Water Supply Committee Date: 3 December 2015 Significant Decision: No Financial and Budget Report Executive Summary The combined financial and budget report has been attached. Background Attached is a report that schedules the following information: Actual Result for the 2014/2015 financial year. The budget that was set for the current 2015/2016 year. The actual result for the first four months of the current financial year. The budget that was allowed for the 2016/2017 as per year 2 of the Long Term Plan. Actual 2014/2015 For the last financial year, the water supply recorded a deficit of $29,429. This was due mainly to the increase in Salaries that were attached to the supply as a result of the work carried out on the Reservoir. The reservoir work was the major capital component for the year, with the total cost being $121,409. The supply started the year with $109,274 in credit, but the cash deficit and the capital work has resulted in the supply being $42,799 in debt as at 30 June Budget for 2015/2016 The supply resolved not to be part of the global water structure that the Council has undertaken as part of the Long Term Plan direction. The rates for the 2015/2016 year had to increase regardless of the District wide approach due to the supply running into debt as a result of the increased work on the reservoir. This was the first increase for at least 7 years and the rate moved from $65 per unit up to $90 per unit. The cost structure was largely the same as was incurred in 2015/2016 except for Wages that are expected to revert back to the normal level and $5,000 of Rejetting work has been planned. In addition, as the supply is now in debt, there is an interest cost to account for. It was predicted that a further $49,128 of capital work was required for the year, which included a provision for the Resource Consent renewal of the Pahau Intake.

8 6 Actual for the four months to October 2015 Budget for 2016/2017 Financial Considerations For the first four months of the year: Income was $20,498 which includes $20,231 in rates. Total Expenditure was $21,586 which includes $1,000 in internal interest charges and $5,057 for electricity from the Pahau Pump, which is well in excess of the budget allowed for. Capital Expenditure was $11,851. The balance of the debt as at 31 October 2015 was $56,223. The budget that was set for year 2 of the Long Term Plan is scheduled. The key issues of note are: Rates to increase again to $99 per unit. This is required to service the debt that is expected to reach $96,556 by 30 June A line item of $30,690 has been allowed for Drinking Water Standards Testing. This will provide the key information required to determine what level of capital expenditure (if any) will be required for the supply to comply with the drinking water standards in the future. No specific capital projects have been allowed for 2016/2047. The Committee is responsible for managing the Balmoral Water Supply Budget. Recommendation That the information be received. Report Prepared by: Jason Beck Manager Support Services Report Author: Will be in attendance to speak to this report.

9 7 Account Actual Budget Actual Budget 2014/ /2016 Year to Date 2016/2017 Balmoral Rural Water (19024) Operating Statement OPERATING REVENUE Rates Targeted Rate Calculations Total Rates 44,450 59,672 20,231 65,620 Other Income Total Other Income (2,000) Internal Interest Received Total Internal Interest Received 2, Total Operating Revenue 45,434 59,672 20,498 65,620 OPERATING EXPENDITURE Employment Benefits Total Employment Benefits 26,940 9,398 1,925 9,614 Direct Operating Expenditure Total Direct Operating Expenditure 34,807 39,007 14,797 70,594 Internal Interest Paid Total Internal Interest Paid 0 2,855 1,000 6,440 Council Overheads Total Council Overheads 13,116 13,042 4,349 13,342 Transfers to Reserves Total Transfers to Reserves (29,429) (4,629) (1,573) (34,370) Total Operating Expenditure 45,434 59,672 20,498 65,620 Operating Surplus (Deficit) Capital Statement OPENING BALANCE 109,274 (42,799) (42,799) (96,556) CAPITAL REVENUE Total Capital Revenue (29,429) (4,629) (1,573) (34,370) CAPITAL EXPENDITURE 2014/2015 Projects Future Renewals Future Projects Total Capital Expenditure 122,644 49,128 11,851 0 CLOSING BALANCE (42,799) (96,556) (56,223) (130,926) Interest Calculation Opening Balance Interest Charged on Overdrawn Balance

10 8 To: Balmoral Rural Water Committee Date: 3 December 2015 Balmoral Rural Water Report Executive Summary This report covers the period 21 August October 2015 The recommendation is that the information be received Utility Information Balmoral Main Intake: Balmoral Main Intake Average Flows/Demand/Capacity 1200 m3/day Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Month RESOURCE CONSENT Cubic Metres Sold m3 sold + 20% PUMP CAPACITY AVERAGE DEMAND Resource Consent: 950m 3 per day Pump Capacity: 980m 3 per day Cubic Metres Sold: 722m 3 per day Average Demand: 595.4m 3 per day

11 9 Capital Works Comments Balmoral Tank Farm The new tank farm is complete with 15 x 30,000L plastic tanks in place. Communications between the tank farm and Pahau intake are compliant with resource consent conditions. The tank farm is set up to receive 700m 3 in a 24 hour period from the Awatui Stream (Balmoral intake). Once the 700m 3 is reached within the 24 hour period, the intake automatically shuts down and the Pahau intake starts up. Once the 24 hour expires, the Balmoral intake starts up again and the whole cycle is repeated. The tank farm is currently taking water from the Awatui Stream and is running well. The local Utilities Officer is monitoring the first three tanks for silt build up and will flush these tanks if required. The project was built for $100K with an additional $25K going towards resource consent conditions (this includes consultant fees and telemetry/control gear). Report Prepared by: Cynthia Otto Customer Services Officer - Utilities Report Reviewed by: Gary Harris Utilities Team Leader Delivery Officer in Attendance: The local Utilities Officer will be in attendance to speak to the report.

12 10 TheBalmoralWaterCommitteethanksCouncilfortheopportunitytosubmittothedraft2015/25LongTermPlan. TheglobalratingproposalfortheschemehasbeengivendueconsiderationbytheCommitteeandatameetingof thecommitteeon30april2015thefollowingresolutionwaspassed THATTHEBALMORALWATERCOMMITTEEWILLNOTBEPARTOFTHEPROPOSEDLONGTERMPLAN GLOBALRATINGSYSTEMANDTHESTATUSQUOREMAINS. Draper/ Itwasagreedthatthecommitteewillruntheschemeemployingcounciltomanageitandthecommitteewillcover allcapitalcoststhemselves Seconder /Norrie CARRIED MrBruceBlack(Chairperson)andoneothercommitteememberwishtospeaktothissubmission. CommitteeSecretary DDI Fax Webhurunui.govt.nz MailPOBox13,Amberley7441 Makingourdistrictevenbetter 1 237

13 11 Maree Hare Secretary Balmoral Water Committee 25 November 2015 Dear Maree Long Term Plan (LTP) Submission Thank you for taking the time to make a submission to our Long Term Plan for the Hurunui District. The Council gave careful consideration to all of the submissions (511 in total) before deciding on the final matters to be included in to the Long Term Plan. With regard to your specific submission, I am pleased to confirm that the Council agreed to exclude the Balmoral Water Scheme from the district wide proposal. The remainder of the district will be incorporated into the new rating model. Although the method of rating will remain the same for consumers of the Balmoral scheme, the rate will increase by $90 per unit to manage the supply in its current form. Again, thank you for your participation. The Council values submissions and it is one of the few ways they get feedback on specific issues from those who will be directly affected. The final Plan and decisions made by the Council are now available on our web site at Thank you again for your participation and desire to make a difference to our communities. Yours sincerely Audrey van der Monde Manager Public Services

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15 13 Delegation of Committee: (i) (ii) (iii) (iv) (v) (vi) (vii) Liaise with users of the scheme. Give consideration to scheme operations, improvements and developments. Provide an overview of the scheme s operation and relay such information to the Utilities Engineer or his assistant. Advise Council of charges/rates recommended to be levied. Provide advice to Council s Works and Services Committee on any matter pertaining to the scheme. Ensure that activities of the Committee and users of the scheme comply with any Regulation or by-law. To receive monthly financial reports. (viii) To receive, as a minimum, half-yearly progress reports on Works programmes. (ix) To receive reports from staff on any proposed major unbudgeted expenditure.