STRATEGIC PLANNING AND POLICY COMMITTEE AGENDA

Transcription

1 STRATEGIC PLANNING AND POLICY COMMITTEE AGENDA Meeting to be held THURSDAY 18 JUNE am (or following the conclusion of the preceding Council meeting) In the Manawatu District Council Chambers, 135 Manchester Street, Feilding Lorraine Vincent Chief Executive 1

2 MEMBERSHIP Chairperson Councillor Tony Jensen Deputy Chairperson Councillor Howard Voss Members Her Worship the Mayor, Margaret Kouvelis Councillor Steve Bielski Councillor Barbara Cameron Councillor Shane Casey Councillor Wayne Ellery Councillor Jo Heslop Councillor Albert James Councillor Andrew Quarrie Councillor Alison Short 2

3 ORDER OF BUSINESS PAGE 1. MEETING OPENING 2. APOLOGIES 3. REQUESTS FOR LEAVE OF ABSENCE 4. CONFIRMATION OF MINUTES 6 Draft resolution That the minutes of the Strategic Planning and Policy Committee meeting held 21 May 2015 be adopted as a true and correct record. 5. DECLARATIONS OF INTEREST Notification from elected members of: 5.1 Any interests that may create a conflict with their role as an elected member relating to the items of business for this meeting; and 5.2 Any interests in items in which they have a direct or indirect pecuniary interest as provided for in the Local Authorities (Members Interests) Act NOTIFICATION OF LATE ITEMS: Where an item is not on the agenda for a meeting, that item may be dealt with at that meeting if: 7.1 The Council by resolution so decides; and 7.2 The Chairperson explains at the meeting at a time when it is open to the public the reason why the item is not on the agenda, and the reason why the discussion of the item cannot be delayed until a subsequent meeting. 7. PRESENTATIONS 8. MINUTES OTHER COMMITTEES 8.1 COMMUNITY RATES SUPPORT APPLICATION 12 Recommendation from Community Funding Subcommittee meeting held 5 May COMMUNITY RATES SUPPORT APPLICATION 13 Recommendation from Community Funding Subcommittee meeting held 2 June

4 PAGE 8.3 COMMUNITY DEVELOPMENT FUND APPLICATION FEILDING HIGH SCHOOL EVENTO OFFICER REPORTS Recommendation from Community Funding Subcommittee meeting held 2 June THIRD QUARTER REPORT TO 31 MARCH Report of the General Manager - Business 9.2 STREETLIGHT MAINTENANCE CONTRACT Report of the General Manager - Infrastructure 10. CONSIDERATION OF LATE ITEMS 11. PUBLIC EXCLUDED BUSINESS COMMITTEE TO RESOLVE: That the public be excluded from the following parts of the proceedings of this meeting, namely: a) Confirmation of Public Excluded Minutes That 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 (a) Confirmation of minutes re Road Maintenance Contract Tender Recommendation Reason for passing this resolution in relation to each matter Section 7(2)(i) - enable the local authority to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) Grounds under Section 48(1) for the passing of this resolution Section 48(1)(a) - the public conduct of the relevant part of the proceedings would be likely to result in a disclosure of information for which good reason for withholding that information would exist, under Section 7 of the Local Government Official Information and Meetings Act This resolution is made in reliance on Section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interests protected by Section 6 4

5 or Section 7 of the Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as specified above. 12. MEETING CLOSURE 5

6 MINUTES MEETING TIME STRATEGIC PLANNING AND POLICY COMMITTEE THURSDAY 21 MAY AM Minutes of a meeting of the Strategic Planning and Policy Committee held on Thursday 21 May 2015, commencing at 10.30am in the Manawatu District Council Chambers, 135 Manchester Street, Feilding. PRESENT: Cr Tony Jensen (Chairperson) Mayor Margaret Kouvelis Cr Steve Bielski Cr Barbara Cameron Cr Shane Casey Cr Wayne Ellery Cr Jo Heslop Cr Albert James Cr Andrew Quarrie Cr Alison Short Cr Howard Voss IN ATTENDANCE: Shayne Harris (General Manager - Business) Hamish Waugh (General Manager - Infrastructure) Brent Limmer (General Manager - Community & Strategy) Paul Stein (Communications Adviser) Colleen Morris (Chief Financial Officer) Tony Stanley (Internal Auditor) Wayne Keightley (Roading Asset Manager) Doug Tate (Community Facilities Manager) Adie Johansen (Aquatics Team Leader) Wendy Thompson (Principal Planning Adviser) Janine Hawthorn (Community Development Adviser) Tineke Naylor (Executive Assistant to the Mayor) Sonya Stevens (Business Support Officer) SPP 15/010 APOLOGIES There were no apologies received. SPP 15/011 REQUESTS FOR LEAVE OF ABSENCE There were no requests for leave of absence. SPP 15/012 CONFIRMATION OF MINUTES RESOLVED That the minutes of the Strategic Planning and Policy Committee meeting held 16 April 2015 be adopted as a true and correct record. Moved by: Seconded by: Cr Howard Voss Cr Albert James CARRIED. SPP 15/013 DECLARATIONS OF INTEREST There were no declarations of interest. 6

7 MINUTES MEETING TIME STRATEGIC PLANNING AND POLICY COMMITTEE THURSDAY 21 MAY AM SPP 15/014 NOTIFICATION OF LATE ITEMS There were no notifications of late items. SPP 15/015 PRESENTATIONS There were no presentations. SPP 15/016 MINUTES OTHER COMMITTEES COMMUNITY RATES SUPPORT APPLICATIONS Consideration of the report of the General Manager Community and Strategy seeking the adoption of the recommendations of the Community Funding Subcommittee. RESOLVED That the recommendations of the Community Funding Subcommittee meeting held on 5 May 2015 be adopted: 1. That the following applications for Rates Remission be approved for Category A - 60% of the total rates payable, including the annual water meter charge: The Order of St John Feilding Feilding Golf Club (Inc) Johnston Park Bowls (Inc) Feilding Lawn Tennis Club Riding for the Disabled Association Manawatu Group (Inc) Feilding Brass Inc 2. That the following applications for Rates Remission be approved for Category B - 40% of the total rates payable, including the annual water meter charge: The Church at Feilding Rongotea Uniting Parish Rongotea Bible Chapel Feilding Oroua Presbyterian Parish Halcombe Playcentre Anglican Faith Community of St Simon and St Jude Feilding Lifepoint Church Scouting Association of NZ Feilding Scout and Guide Hall Anglican Parish of the Oroua Eden Christian Kindergarten Foxton-Shannon Co-operating Parish Hapaitia Kohanga Reo 7

8 MINUTES MEETING TIME STRATEGIC PLANNING AND POLICY COMMITTEE THURSDAY 21 MAY AM Sanson Playcentre The Salvation Army Activate Church Feilding Feilding New Life Centre Charitable Trust Central Districts Playcentre Feilding Bible Chapel Feilding-Oroua Methodist Parish (St Mark s Church) Feilding Baptist Church Taumata o Te Ra Marae Manchester House Social Service Society (Aorangi St) Royal New Zealand Plunket Feilding and Rongotea St. Brigid s Parish Te Kawau Playcentre 3. That the following application for Rates Remission be approved for Category B but at 30% of the total rates payable, including the annual water meter charge: Feilding Gospel Trust 4. That the following applications for Rates Remission be approved for Category C - 20% of the total rates payable, including the annual water meter charge: Manawatu Naturist Club Manfeild Park Trust Manchester House Social Service Society (Bowen St) The Steam Traction Society Inc (76 Maewa Road) 5. That the application for rate support funding from Wellington Diocesan Trust Park Parish of Rangitikei be declined based on concerns regarding the organisation s financial processes. 6. That the application for rate support funding from Feilding Congregation of Jehovah s Witnesses be declined based on concerns regarding the organisation s financial processes. 7. That the application for rate support funding from Feilding Steam Traction Society Inc be declined based on valuation reference 13990/53007 being bare land. 8. That the application for rate support funding from Rongotea RSA Inc be declined based on an incomplete application with limited financials, no linkages to Council s Vision or Outcomes and only one signature being provided on application. 8

9 MINUTES MEETING TIME STRATEGIC PLANNING AND POLICY COMMITTEE THURSDAY 21 MAY AM 9. That the application for rate support funding from Royal New Zealand Plunket - Kimbolton be declined based on the building not being utilised, and reference to their previous application where only one year s remission was sought. 10. That the letter from Kevin Barron, Chairperson of the Christian Leaders Network requesting the level of remission for churches be moved from Category B (40%) to Category A (60%) for the 2015/16 rating year be received but that the policy remain unchanged. 11. That the rates remissions be approved for one year only and that the Community Rate Support policy be reviewed over the next twelve months. Moved by: Seconded by: Cr Barbara Cameron Cr Howard Voss CARRIED. SPP 15/017 MINUTES OTHER COMMITTEES PARTNERSHIP FUND APPLICATIONS 2015 Consideration of the report of the General Manager Community and Strategy seeking the adoption of the recommendations of the Community Funding Subcommittee RESOLVED That the following recommendations of the Community Funding Subcommittee meeting held on 5 May 2015 be adopted: 1. That the following organisations be approved for Council to enter into an arrangement to provide services through the Partnership Fund, with the amount to be determined following the adoption of the Council Long Term Plan: Te Manawa Services Charitable Trust Manawatu District Neighbourhood Support Inc. Manawatu Rural Support Service (Inc.) Palmerston North Surf Life Saving Club Inc. Social Issues Network Council of Social Services Inc (SINCOSS) Manawatu Historic Vehicle Collection Trust Manchester House Social Services Society Whanau Ataahua Beautiful Families Trust Feilding & Districts Youth Board Feilding Brass Inc 2. That the following applications for partnership funding be declined: Big Brothers Big Sisters of Manawatu Feilding & Districts Arts Society Inc. Young at Heart Parent Support Group The Parenting Place Attitude Youth Division 9

10 MINUTES MEETING TIME STRATEGIC PLANNING AND POLICY COMMITTEE THURSDAY 21 MAY AM Conflict of Interest was declared by Cr Shane Casey and he did not participate in discussion or vote. Moved by: Seconded by: Cr Barbara Cameron Cr Jo Heslop CARRIED. SPP 15/018 CONSIDERATION OF LATE ITEMS There were no late items for consideration. SPP 15/019 PUBLIC EXCLUDED BUSINESS RESOLVED That the public be excluded from the following parts of the proceedings of this meeting, namely: a) Road Maintenance Contract Tender Recommendation That 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 Grounds under Section 48(1) for the passing of this resolution Road Maintenance Contract Tender Recommendation Section 7(2)(i) - enable the local authority to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) Section 48(1)(a) - the public conduct of the relevant part of the proceedings would be likely to result in a disclosure of information for which good reason for withholding that information would exist, under Section 7 of the Local Government Official Information and Meetings Act This resolution is made in reliance on Section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interests protected by Section 6 or Section 7 of the Act which would be prejudiced by 10

11 MINUTES MEETING TIME STRATEGIC PLANNING AND POLICY COMMITTEE THURSDAY 21 MAY AM the holding of the whole or the relevant part of the proceedings of the meeting in public as specified above. Moved by: Seconded by: Mayor Margaret Kouvelis Cr Howard Voss CARRIED The meeting went into public excluded session at 15am and resumed open session at 19am. SPP 15/022 ROAD MAINTENANCE CONTRACT TENDER RECOMMENDATION Consideration of the report of the General Manager Infrastructure seeking the adoption of the recommendations. RESOLVED That the tender for Contract C-4/1505 Road Maintenance received from Higgins Contractors Limited of Palmerston North for the amount of Twenty Five Million, Three Hundred and Eighty One Thousand, Five Hundred and Twenty Three Dollars and Seventy Nine Cents ($25,381,523.79) excluding GST, be accepted. Moved by: Seconded by: Cr Howard Voss Mayor Margaret Kouvelis CARRIED The meeting closed at 19am Approved and adopted as a true and correct record: CHAIRPERSON DATE 11

12 Strategic Planning and Policy Committee Report Community Funding Subcommittee 5 May 2015 Community Rates Support Applications File Ref: 2/0109 Responsible Officer: Author: Brent Limmer General Manager - Community and Strategy Janine Hawthorn Community Development Adviser Purpose To present for consideration and adoption an additional recommendation of the Community Funding Subcommittee meeting held on 5 May 2015 regarding Community Rates Support Applications. Officer Recommendation That the following recommendation of the Community Funding Subcommittee meeting held on 5 May 2015 be adopted: 1. That the following applications for Rates Remission be approved for Category A - 60% of the total rates payable, including the annual water meter charge: Feilding and District Art Society Inc 12

13 Strategic Planning and Policy Committee Report Community Funding Subcommittee 2 June 2015 Community Rates Support Applications 2015 File Ref: 2/0109 Responsible Officer: Author: Brent Limmer General Manager - Community and Strategy Janine Hawthorn Community Development Adviser Purpose To present for consideration and adoption recommendations of the Community Funding Subcommittee meeting held on 2 June 2015 regarding late Community Rates Support Applications that were accepted for consideration. Officer Recommendation That the following recommendations of the Community Funding Subcommittee meeting held on 2 June 2015 be adopted: 1. That the following applications for Rates Remission be approved for Category A 60% of the total rates payable including the annual water meter charge: Himatangi Beach Bowling Club Inc The Coach House Museum Feilding Squash Rackets Club 2. That the following application for Rates Remission be approved for Category B 40% of the total rates payable, including the annual water meter charge: Manawatu Branch of RNZSPCA (4 Awa Street) 3. That the following application for Rates Remission be approved for Category C 20% of the total rates payable, including the annual water meter charge: Manawatu Branch of RNZSPCA (88 Fergusson Street) 13

14 Strategic Planning and Policy Committee Report Community Funding Subcommittee 2 June 2015 Community Development Fund Application Feilding High School EVENTO File Ref: 2/0428 Responsible Officer: Author: Brent Limmer General Manager - Community and Strategy Janine Hawthorn Community Development Adviser Purpose To present for consideration and adoption a recommendation of the Community Funding Subcommittee meeting held on 2 June 2015 regarding the Community Development Fund application from Feilding High School for EVENTO. Officer Recommendation That the following recommendation of the Community Funding Subcommittee meeting held on 2 June 2015 be adopted: 1. That the Community Funding Subcommittee grants $5,000 to the Feilding High School PTA and EVENTO Production Team to assist with costs of staging the Feilding High School EVENTO Wearable Arts Awards being held at the Manfeild Events Centre on 15 August 2015; to be funded with $3, to come out of the 2014/15 Event Fund and $1, from the 2015/2016 Event Fund. 14

15 Strategic Planning and Policy Committee Report Third Quarter Report to 31 March 2015 File Ref: 1/0211 Responsible Officer: Author: Shayne Harris General Manager - Business Allie Dunn Business Support Team Leader Topic To present the report for the quarter ending 31 March Purpose To provide a summary to 31 March 2015 of the Council s performance against the 2014/15 Annual Plan. Background Quarterly governance reports provide interim updates towards end of year results to be published in the Annual Report 2014/15. The Annual Report accounts for how Council performed against the Annual Plan 2014/15, including the Council s financial performance and position, progress on major projects, levels of service performance and reasons for significant differences from what was planned. Long Term Plan This report provides progress against year 3 of the Long Term Plan Governance and Strategy. Financial Implications Any financial implications would be reported separately to Council. Legal Considerations Quarterly governance reports provide an overview of results towards the Annual Report, which is audited against requirements of the Local Government Act Significance and Engagement Policy This issue is not considered significant in terms of Council's Significance and Engagement Policy. Consultation There are no consultation issues associated with this matter. Communication Issues There are no communication issues associated with this matter. Options Not applicable. Policy Issues Not applicable. 15

16 Strategic Planning and Policy Committee Report Delegated Authority The Strategic Planning and Policy Committee s Terms of Reference includes the responsibility for financial monitoring of significant activities and functions, including: Receive and review regular financial reports of revenue and expenditure; Review the final draft of the Council s annual report pursuant to Section 98 of the Local Government Act 2002, prior to submission to the Council for adoption. Officer Recommendation That the Strategic Planning and Policy Committee receive the third quarter report for the period ending 31 March 2015 of Council s performance against the 2014/15 Annual Plan. 16

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18 Overall Council Summaries For the period ended 31 March 2015 Operating revenue - by activity Operating revenue- by type Community Facilities District Development Emergency Environmental Management Governance and Strategy Roading Solid Waste Stormwater Wastewater Water Supply Support Services 0 General rates Targeted rates Interest and dividends Subsidies and grants Fees and charges Other revenue Operating expenditure - by activity Operating expenditure - by type Community Facilities District Development Emergency Environmental Management Governance and Strategy Roading Solid Waste Stormwater Wastewater Water Supply Support Services 18 0 Personnel costs Finance costs Depreciation and amortisation Other operating costs Page 2 of 13

19 Overall Council Summaries For the period ended 31 March 2015 Capital expenditure -by activity Capital expenditure - by type Community Facilities Environmental Governance and Strategy Roading Solid Waste Stormwater Wastewater Water Supply Support Services 0 Growth related (additional demand) Improve levels of service Replace existing assets Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget External Borrowings Budget Actual Cap set in Financial Strategy Investments - by type Shares Advances and community loans Term investments (inc LGFA Borrower Notes) Cash and cash equivalents Comments: Borrowing has not proceeded at the planned level as a result of the progress in the capital programme. Existing funds have been used to fund capital expenditure. Consequently both borrowing costs and investment revenue are below budget. $7m has been raised in April 2015 and there is $3m due for repayment in May /06/14 30/09/14 31/12/14 31/03/15 30/06/15 19 Page 3 of 13

20 Makino Aquatic Centre Libraries Property Parks and Sports Grounds Cemeteries Public Conveniences Makino Aquatic Centre Libraries Property Parks and Sports Grounds Cemeteries Public Conveniences Makino Aquatic Centre Libraries Property Parks and Sports Grounds Cemeteries Public Conveniences Makino Aquatic Centre Libraries Property Parks and Sports Grounds Cemeteries Public Conveniences Community Facilities For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % % 80% 70% 60% % % 30% 20% 10% 1 0% Public convenience rates are higher than anticipated as the transfer for the school pan remissions has not been made. Cemetery revenue is down in line with burials. The grant to the Bunnythorpe Hall has not been made and has been carried forward to the LTP ($240,000). There has been additional expenditure for the Library and Makino Aquatic Centre reviews. Additional costs have been incurred as a result of purchasing the Kawakawa Road property. There was a decrease in the servicing of the loan for the South St Development as a part of the loan was repaid from sale proceeds. Council purchased 269 Kawakawa Road for future requirements for wastewater disposal. $1.3m was approved by Council in July 2014 but was not in the Annual Plan. Completed concept work for the Feilding and Halcombe cemeteries. This work will be carried forward to next year. The MAC refurbishment design has been completed and work will now commence in July Kimbolton toilets are scheduled for May. The Sanson toilets are now included in the LTP. In general the performance indicators for this activity is on track. One of the targets for public conveniences has not been met. The measure requires no more than 10 complaints for the year in relation to the condition or provision of toilets. Although no complaints have been received about the provision of toilets, there have been 28 complaints about the state of the toilets, 11 of which relate to vandalism and wilful damage. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 20 On Track Needs Monitoring Not achieving Page 4 of 13

21 Economic Development Community Development Economic Development Community Development Economic Development Community Development Economic Development Community Development District Development For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % 90% 80% 70% 60% 50% 40% % 20% 10% 3 3 0% At 31 March 2015 the loan to the Manawatu Community Trust for the Feilding Integrated Family Health Centre (FIFHC) had not been uplifted. Consequently revenue was not at its expected level as no interest has been received to date. An additional $30,000 has been received as a grant from the Ministry of Youth Development. Increase in the actual year to date costs are mainly due to the timing of paying grants. Interest paid is lower than budget as the FIFHC loan had not been uplifted at 31 March The Economic Development expenditure is lower due to a staff vacancy. There is no capital expenditure for this activity. The target for increasing the number of visitors to the Information Centre has not been met. The drop in the number of walk-in visitors to the Information Centre could be attributed to a rise in the number of people using technology to access information. The number of events to attract visitors, which is managed by Feilding Promotion has yet to be confirmed by Feilding Promotion and is included in the "needs monitoring" category. The other items in the "needs monitoring" category includes information that is to be reported in the last quarter of the year. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 21 On Track Needs Monitoring Not achieving Page 5 of 13

22 Civil Defence Rural Fire Civil Defence Rural Fire Civil Defence Rural Fire Civil Defence Rural Fire Emergency Management For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % % 80% 70% 60% 50% 40% 30% 20% 10% % Revenue is primarily from rates. There was a small grant expected in the Annual Plan. This is now a part of a contestable fund that will be applied for by the CDEM Group for individual projects. The budget included additional expenditure in the event of fires. However the costs of fires this quarter exceeded the amount provided. These costs were $165,000. A claim has been submitted to the Rural Fire Fund for reimbursement. There is no capital expenditure for this activity. Targets to be monitored in the Civil Defence activity relates to education and public awareness. 50% of the planned number of public education initiatives have taken place. The results of the survey relating to rural fire awareness will be reported in the last quarter. The National Rural Fire Authority audit was completed in 2013/14 and a Corrective Action Plan has been implemented. This will be reported against once completed. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 22 On Track Needs Monitoring Not achieving Page 6 of 13

23 Animal Control Building Control Environmental Health and Monitoring Service District and Policy Planning Animal Control Building Control Environmental Health and Monitoring Service District and Policy Planning Animal Control Building Control Environmental Health and Monitoring Service District and Policy Planning Animal Control Building Control Environmental Health and Monitoring Service District and Policy Planning Environmental Services and Monitoring For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % 90% 80% 70% 60% % 40% 30% 20% 10% % Building consents are down on last year, contrary to an expected 5% increase. This is partially offset by a large subdivision receipt in October. The last quarter has seen an increase in consents. There were lower contract costs for building officers due to the lack of availability of contractors. The cost of running animal control vehicles is lower than expected. Staff vacancies during the year have contributed to Environmental Health being below budget. This has now been rectified. The budget for the year is for pods for the Animal Control Vehicles ($39,000). Alternative cages have been sourced at a cost of $3,000 and will be purchased in April. Animal Control - A new process to record the response to complaints has been implemented and will be reported on in the next quarter. Building Control - 20 of the 402 building consents received exceeded the 20 day processing time. Six of the 37 complaints received were not responded to within 10 days (target was 95% compliance). Environmental Health - Inspection of high and low risk premises are below target. Targets for response to noise and other complaints have not been met. An improvement in response times has occurred since February when the new Monitoring Officer started. Two of the 139 liquor licence applications were not processed with the required five days. District Planning - Consent monitoring within one month has not been achieved due to staff resourcing. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 23 On Track Needs Monitoring Not achieving Page 7 of 13

24 Governance and Strategy Governance and Strategy Governance and Strategy Governance and Strategy Governance and Strategy For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % % % 70% 60% 50% 40% 30% 20% % 0% The only revenue expected is rates. Revenue is on track. Internal charges are higher than expected as time is being more accurately recorded. The planned capital projects relate to the refurbishment of the Council wing. $3,000 has been spent and the balance has been carried forward to next financial year. Eight panel surveys were completed over the third quarter. The results will be reported to Council as part of the Annual Report. The report will include residents' understanding of Council decision making processes. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 24 On Track Needs Monitoring Not achieving Page 8 of 13

25 Roading Roading Roading Roading Roading For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % 90% 80% 70% 60% 50% 40% % 20% 10% 7 0% Revenue is received through rates and NZTA subsidy. There has been an increase in the subsidy to meet additional roading expenditure. Additional expenditure was required over the winter months as a result of the weather conditions (wet and windy). Overheads for this activity are lower than budgeted as a result of savings in support activities. Projects are on track to be completed at year end. The pavement rehabilitation is expected to be $1.1m under budget at year end. Stage 1 of the Pharazyn Street growth works is complete ($400k). Stage 2 is now programmed for 2015/16. The delay of the growth works and reduced expenditure in the pavement rehabilitation is the reason the year end forecast is $1m less than the annual plan. The targets included as "needs monitoring" relate to the customer satisfaction where data is collected from the panel. This was done in the third quarter and will be reported in the fourth quarter as part of the Annual Report. The measure not met relates to footpath conditions where 96% of our footpaths are to be within acceptable defect levels. When the last survey was done in October 2014 this was not achieved and remedial works are being undertaken. To date 93% (898 requests) met the timeframes. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 25 On Track Needs Monitoring Not achieving Page 9 of 13

26 Kerbside Recycling Collection Solid Waste Collection and Disposal Waste Minimisation Education Kerbside Recycling Collection Solid Waste Collection and Disposal Waste Minimisation Education Kerbside Recycling Collection Solid Waste Collection and Disposal Waste Minimisation Education Kerbside Recycling Collection Solid Waste Collection and Disposal Waste Minimisation Education Solid Waste For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % % 80% 70% 60% % % 30% 20% 10% 1 0% Revenue is from rates, blue bag sales and transfer station takings. The subsidy received (population based) from the Ministry for the Environment is slightly behind expectations. Increased cost of rural recycling centres and the storage and distribution of waste bags were not included in the budget. The planned capital expenditure for this activity relates to the purchase of recycling bins for new dwellings. We have recently purchased new bins to increase our inventory. The target not met was for a 5% decrease in waste to landfill from the kerbside collection. To date this year we have sent 2,489 tonnnes to landfill which is a 1.25% decrease over the same period last year. Recycling tonnage has increased by 3.5% over the same quarter period last financial year, bringing us to 2,196 tonnes to date. However the target was for a 5% increase. There is a measure that 90% of residents live within 10km of a transfer station or drop-off point. At this stage only 84% of our residents do. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 26 On Track Needs Monitoring Not achieving Page 10 of 13

27 Stormwater Stormwater Stormwater Stormwater For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % % % 70% 60% 50% 40% 30% 20% 3 10% 0% All operating revenue is sourced from rates. Expenditure is below budget and is expected to be for the rest of the year. Work has been prioritised during the year. $1.5m of the budgeted stormwater capital spend relates to Feilding growth. Minimal work has been done to date. This work is being programmed to be done in conjunction with the roading programme and the development of precinct 4 (Pharazyn Street) in 2015/16. Measures all related to flooding. There were no flooding related injuries, reported flooded dwellings, or road closures as a result of flooding. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 27 On Track Needs Monitoring Not achieving Page 11 of 13

28 Wastewater Wastewater Wastewater Wastewater Wastewater For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % % 80% 70% 60% % % 30% 20% 10% 3 0% Revenue is from rates, tradewaste charges and volumetric charges. Volumetric charges are slightly higher than expected. Less maintenance is required than budgeted. Interest cost is higher than anticipated due to additional capital expenditure last year. A number of projects are being planned for the last quarter of the year. This includes the renewals and the native plant nursery. Desludging oxidation ponds were planned for the 2014/15 year. This work is not expected to be completed this year and it is proposed to carry it forward to next year. Additional costs have been incurred as a part of the consenting process for the Feilding Wastewater Treatment Plant. The three targets not met were: - The Feilding Wastewater Treatment Plant discharge did not comply with the resource consent requirements. Horizons are satisfied that significant upgrades are underway to rectify this. - There were five unplanned disruptions to wastewater services for the period. The target was to have no more than one unplanned event. - There is a target to have 95% of residences within connection distance of a sewer lateral. At present we only have 92% of urban/village properties within connection distance. The connections for the Himatangi scheme have been lower than expected. The target being monitored is the panel survey which will be available in the last quarter Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 28 On Track Needs Monitoring Not achieving Page 12 of 13

29 Water Supply Water Supply Water Supply Water Supply Water Supply For the period ended 31 March 2015 Operating Revenue Operating Expenditure Capital Expenditure Performance Indicators % 90% % 70% % % 40% % % 10% 2 0% Increased revenue is from the new subdivisions created. Maintenance work required is below the planned level. Year end forecasts reflect this decrease. As capital work has not been completed at the level anticipated, the loans budgeted to be raised have not been raised. As a result interest expense is below budget. The Feilding reticulation renewal progamme is underway. The forecast is lower than the annual plan budget. Priority is given to AC water main renewal within the CBD. Work on the Almadale optimisation will not be completed by year end. The Rongotea scheme is on track to meet the year end budget. It was budgeted to spend $2.3m in Feilding growth. The year end forecast is to spend $120k. Growth work is scheduled in 2015/16 with wastewater, stormwater and roading. The three targets not met relate to: - unexpected disruption to water supply service at Mt Taylor and Stanway Halcombe - customers in Stanway Halcombe without water for more than 8 hours during planned shutdowns - exceeding water extraction at the Kawakawa Road bore due to a local farmer exceeding limits. A restrictor has been installed. The targets being monitored relate to: - the Feilding hydrants are only 90% compliant with the NZ Fire Service Code of Practice - Drinking Water Standards compliance. Waituna West's status is pending and Rongotea has not been tested. Sanson and Stanway-Halcombe are non-compliant for protozoa. This will be addressed in future up-grades. Annual Plan Year End Forecast YTD Budget YTD Actual - within ± 5% of budget YTD Actual - between ± 5-15% of budget YTD Actual - greater than ± 15% of budget 29 On Track Needs Monitoring Not achieving Page 13 of 13

30 Strategic Planning and Policy Committee Report Streetlight Maintenance Contract File Ref: 4/1511 Responsible Officer: Author: Hamish Waugh General Manager - Infrastructure Wayne Keightley Roading Asset Manager EXECUTIVE SUMMARY Topic Streetlight Maintenance Contract Tender Recommendation Purpose The purpose of this report is to recommend the award of the contract for Streetlight Maintenance Contract C-4/1511. Arguments The existing Streetlight Maintenance Contract expires on the 30 th June A new contract is required to provide Streetlight maintenance services across the Manawatu District. Recommendations To award the Road Maintenance Contract C-4/1511, to Alf Down Streetlighting Ltd for the sum of $881,452.50, excluding GST. Background A collaborative procurement process has been undertaken for the provision of Streetlight Maintenance services across the networks of Manawatu and Horowhenua. The intention behind the collaborative procurement initiative was to provide the industry with an opportunity to demonstrate how they could deliver value for money, best for network outcomes and innovative solutions within the context of a competitive market environment. The tender documents were compiled and the procurement process managed by the in-house Infrastructure Shared Service team along with inputs from Horowhenua District Council Roading engineers. The contract involves the maintenance and renewal of streetlighting assets within the Manawatu and Horowhenua Districts. The term is for three years, with option to extend a further three year terms based on performance objectives. The contract also provides for the installation of energy efficient LED luminaires. Long Term Plan Roading Network The Manawatu District Council provides 1829 Streetlights which will be maintained under this contract, a further 191 Streetlights belonging to New Zealand Transport Agency will also form part of the contract. 30

31 Strategic Planning and Policy Committee Report The Horowhenua District Council provides approximately 3000 Streetlights. Council also provides footpaths, car parks, traffic services, road-side mowing and weed control. The New Zealand Transport Agency (NZTA) operate and maintain state highways that run through the district. Roading Financial Implications Quality roading network provided that meets current and future demands, i.e. residents needs and increased demands from agriculture sector The roads feel safe to use, and is regarded as safe in comparison to other similar networks Funding has been allocated for this contract in the draft LTP as part of the Roading Activity and the resource requirements are in accordance with this budgetary allocation. Legal Considerations Nil Significance Policy This issue is not considered significant in terms of Council's Significance Policy. Consultation The Roading and footpaths activities budget has been consulted on through the process associated with the adoption of the LTP. Communication Issues The outcome of the procurement process will be communicated to the relevant stakeholders and wider community following the Council meeting. Policy Issues Council s Procurement Policy has been adhered to in procuring these tenders. The tender process is a Two-Stage Price Quality Method, in accordance with New Zealand Transport Agency Procurement Manual. Delegated Authority The Strategic Planning and Policy Committee has delegated authority to accept tenders for operational services works over $500,000 Tender Evaluation Method The tender evaluation method is PQM Simple evaluating the attributes Relevant Experience, Track Record, Relevant Skills, Resources and Methodology. This follows the format used in last 2 road maintenance contracts. PQM Simple has been selected to allow a point of difference to be determined between tenderers. Tender Evaluation Team The Tender Evaluation Team comprised of: 31

32 Strategic Planning and Policy Committee Report Reuben Pokiha Manawatu District Council Darryn Black Manawatu District Council Kevin Peel Horwhenua District Council Rob Cuff Palmerston North City Council (Independent) Allen Geerkins from Manawatu District Council holds NZQA certification in NZTA procurement procedures and was involved as an advisor. Tony Stanley from the Manawatu District Council ensured the probity of the procurement process via and internal audit function / capacity. Tenders Received Three tenders were received from; Alf Downs Streetlighting Ltd Electrix Ltd Electra Ltd Tender Evaluation Team Non-Price Attributes Summary Tender Evaluation Team members met on Tuesday 12th and Thursday 14th May 2015 to discuss the scores for the non-price attributes. This was done by assessing individual scores and considering the relativity between tenderers. When consensus was achieved a team ranking was finalised. The following table below is a summary of the Tender Evaluation Team rankings. The Non-Priced Attributes Weighted Sum represents the relevant individual grade multiplied by the weighting. The Supplier Quality Premium has been calculated using the Engineers Estimate from the Schedule of Prices Tenderer Relevant Experience Weighting 7% Track Record Weighting 5% Relevant Skills Weighting 5% Resources Weighting 3% Methodology Weighting 10% Alf Downs Streetlighting Electrix Electra Two of the three submissions were considered to be adequate for the scope of works. The bid from Electrix was deemed to be non-conforming and was excluded from further evaluation. The bid from Alf Downs Streetlighting Ltd scored highest in all attribute categories. Tender Price Evaluation The tender prices were included in the table on Form G Appendix VII for PQM (Simple) and the calculation completed. The tender prices were submitted as a combined price across both Districts, but split accordingly for the proportioning of costs for each District. The results of the price evaluation are: 32

33 Strategic Planning and Policy Committee Report Tenderer Alf Downs Streetlighting Limited Electra Electrix Tender Price $ 1,875, $ 2,809, Non conforming. Tender Price (less all schedule fixed amounts for evaluation purposes) $ 1,689, $ 2,623, Supplier Quality Premium $ 117, $ - Adjusted Tender Price $ 1,572, $ 2,623, Rank 1 2 Portion of Costs Between Manawatu and Horowhenua District Councils Council The evaluation has determined that Alf Downs Streetlighting Ltd has the lowest evaluation price and is the preferred tenderer. Officer Recommendation Preferred Tenderers Price Manawatu District Council $ 881, Horowhenua District Council $ 994, Total $ 1,875, That the tender for contract C-4/1511 Streetlight Maintenance received from Alf Downs Streetlighting Limited, of Marton for the amount of Eight Hundred and Eighty One Thousand, Four Hundred and Fifty Two Dollars and Fifty cents ($881,452.50) excluding GST, be accepted. 33