CENTRAL OTAGO DISTRICT COUNCIL WASTE AND PROPERTY INFRASTRUCTURE COMMITTEE

Transcription

1 CENTRAL OTAGO DISTRICT COUNCIL WASTE AND PROPERTY INFRASTRUCTURE COMMITTEE NOTICE is hereby given that a meeting of the Waste and Property Infrastructure Committee is to be held in Council Chambers, William Fraser Building, 1 Dunorling Street, Alexandra on Wednesday, 31 January 2018 commencing at the conclusion of the Three Waters Infrastructure Committee. MEMBERS: Councillor N McKinlay (Chair), Councillor V Bonham (Deputy), His Worship the Mayor T Cadogan, Councillors, S Calvert, L Claridge, S Duncan, N Gillespie, S Jeffery, M McPherson, M Topliss and B Wills APOLOGIES: IN ATTENDANCE: L van der Voort (Acting Chief Executive Officer), J Muir (Executive Manager - Infrastructure Services), B Murphy (Executive Manager Corporate Services) and S Hewerdine (Governance Manager) AGENDA Confirmation of Minutes 3-4 RECOMMENDED that the minutes of the Waste and Property Infrastructure Committee meeting held on 13 December 2017 be received as a true and correct record Declaration of Interest 5-7 Members are reminded of the need to be vigilant, stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

2 Alexandra Airport Additional Hangar/Accommodation Sites (PRJ ) 8-12 Attached is a report from the Property Officer to consider approval for funding infrastructure for development of five additional hangar/accommodation sites at Alexandra Airport. RECOMMENDED that the report be received and the recommendations therein be adopted Chair s Report 13 RECOMMENDED that the Chair s report be received.

3 CENTRAL OTAGO DISTRICT COUNCIL WASTE AND PROPERTY INFRASTRUCTURE COMMITTEE MINUTES of a meeting of the Waste and Property Infrastructure Committee held in Council Chambers, William Fraser Building, 1 Dunorling Street, Alexandra on Wednesday, 13 October 2017 commencing at 1.30pm. PRESENT: Councillor N McKinlay (Chair), Councillor V Bonham (Deputy), His Worship the Mayor T Cadogan, Councillors, S Calvert, L Claridge, S Duncan, N Gillespie, S Jeffery, M McPherson, M Topliss and B Wills IN ATTENDANCE: L Mash (Chief Executive Officer), B Murphy (Executive Manager Corporate Services), L van der Voort (Executive Manager Planning and Environment) and S Hewerdine (Governance Manager) Confirmation of Minutes RESOLVED that the minutes of the Waste and Property Infrastructure Committee meeting held on 25 October 2017 be received as a true and correct record. Jeffery / Topliss Declaration of Interest There were no declarations of interest Status Report on Resolutions Infrastructure Services A report from the Executive Manager - Infrastructure Services to provide an update on resolutions had been circulated. RESOLVED that the report be received. Cadogan / Bonham 3

4 Status Report on Resolutions Planning and Environment A report from the Executive Manager - Planning and Environment to provide an update on resolutions had been circulated. RESOLVED that the report be received. Bonham / Calvert Chair s Report Councillor McKinlay reported on the following: There will be a workshop to discuss elderly persons housing in the New Year Believes there is confusion with reports regarding activities on Lake Dunstan going to various Committees Councillor Bonham reported on attending the ORC pest management drop in session. RESOLVED that the Chair s report be received. McKinlay / Jeffery The meeting closed at 1.44pm.. CHAIR / / 4

5 Updated at 13 December 2017 Name Members Declared Interests Spouse/Partner Declared Interests Council Appointments Victoria Bonham STOP Trashing our Planet S.T.O.P. NZ First (Member and Chair of Waitaki District Electorate) Tim Cadogan Alexandra Blossom Festival (Deputy Chair) Alexandra Musical Society (Member) Breen Construction Company (Family Connection) Wakatipu Abuse Prevention Network (Family Connection/Work Referrer) Queenstown Housing Trust (Family member has approved eligibility) Shirley Calvert Central Otago Health Services Ltd (Employee) AirBnB (accommodation provider) Lynley Claridge Affinity Funerals (Director) Central Otago Chamber of Commerce (Advisory Panel) Stuart Duncan Wedderburn Cottages (Owner) Dairy Farm (Owner) Neil Gillespie Contact Energy (Project Manager) Clyde & Districts Emergency Rescue Trust (Secretary and Trustee) Cromwell Volunteer Fire Brigade (Deputy Chief Fire Officer) QLDC District Licensing Committee member Rural Advisory Forum - Fire Emergency New Zealand Stephen Jeffery Fairview Orchard (Partner) Fairview Roxburgh Ltd (Director ) Fairview Family Trust. (Trustee) G & S Smith Family Trust (Trustee ) K & EM Bennett s Family Trust (Trustee) Manorburn Recreation Reserve Committee Victim Support Worker Airport Reference Group Manuherikia Catchment Water Strategy Group Maniototo Curling International Inc (Board Member) Eden Hore Steering Group Central Otago Wilding Conifer Control Group Cromwell and Districts Promotion Group Affinity Funerals (Shareholder) Central Otago Health Inc. Maniototo Hospital Board (Board Member) Wedderburn Cottages (Owner) Maniototo Ice Rink Committee Lowburn Hall Committee The Cromwell Property Development Sub- Committee Otago Rural Fire Authority (Chairman) Teviot Prospects 5

6 Updated at 13 December 2017 Roxburgh Gorge Trail Charitable Trust (Chair) Roxburgh and District Medical Services Trust (Trustee) Central Otago Clutha Trails Ltd (Director) Teviot Prospects (Trustee) Teviot Valley Community Development Scheme Governance Group Central Otago Queenstown Network Trust Nigel McKinlay Transition To Work Trust (Board Member) Gate 22 Vineyard Ltd (Director) Everyday Gourmet (Director) Central Otago Wine Association (Member) Martin McPherson Alexandra Blossom Festival (Employee) CODC (Employee) Bannockburn Community Centre Management Committee Bannockburn Recreation Reserve Management Committee The Cromwell Property Development Sub- Committee Malcolm Topliss Ophir Welfare Committee (Treasurer) Alexandra District Historical Association Inc Ophir Welfare Association Committee Omakau Recreation Reserve Committee Barrie Wills Central Environmental Services (Principal) Coastguard Clyde (Secretary) Central Otago Underwater Club (Secretary) Roxburgh Gorge Trail Charitable Trust (Secretary) Manorburn Curling Club and Combined Curling Club (Secretary) NZ Association of Resource Management (Member) NZ Grassland Association (Member) Central Computer Consultants (Partner) B&B Portfolio Co Ltd (Director) Central Boers (Member) NZ Rhododendron Society (Member and Editor) Central Otago Astronomical Society (Secretary) Clutha Mata au River Parkway Group (Forum Member) Keep Alexandra Clyde Beautiful (Member) Otago Regional Transport Committee Alexandra District Historical Association Inc Manorburn Recreation Reserve Committee Alexandra Suspension Bridge 1882 Working Group Keep Alexandra Clyde Beautiful 6

7 Updated at 13 December 2017 Otago Polytech Permanent External Advisory Committee (Natural Resources Rep) Jolendale Park (Trustee) Guardians of Lake Wanaka (Member) Central Otago Clutha Trails Ltd (Director) 7

8 Waste and Property Infrastructure Committee 31 January 2018 Report for Decision Alexandra Airport Additional Hangar/Accommodation Sites (PRJ ) Purpose of Report To consider approval for funding infrastructure for development of five additional hangar/accommodation sites at Alexandra Airport Recommendations A. Recommended that the report be received and the level of significance accepted. B. Approve an overspend of $218,000 to fund infrastructure for development of five additional hangar/accommodation sites at Alexandra Airport. The over spend is to be funded from a 20 year loan Background In September 2017 the power supply capacity to the airport was upgraded, power and water reticulation installed to 22 hangar sites and 700 metres of sealed taxiways constructed. Report Author: Property Officer 8

9 All 23 hangar sites are leased. 12 leases are for hangars with associated accommodation, of which, five have been constructed and the balance of seven are in design. 11 leases are for hangars only, of which, eight have been constructed. When the current revised hangar precinct plan was prepared, the plan allowed for five additional sites at the back towards the top of the terrace. See highlighted sites on the plan below. The intention was for these sites to be developed at a later date if there was further demand, and the lease income was sufficient to fund the required infrastructure. All five sites are reserved by interested parties who are eagerly awaiting news of when they are available for lease. There is also a waiting list for further sites to be developed. The current water supply for the airport is from a shared bore on the residential property at the corner of Coates Road and Dunstan Road. There is no formal easement in place for the use of this bore. Report Author: Property Officer 9

10 Resource consents granted to date for hangars with associated accommodation have been on the basis of connection to the airport water supply, on restricted supplies of up to 1,500L/day. However at present the current bore water supply does not have enough capacity to provide water to the additional five sites. The long term aim is for the airport to be connected to the town water supply. However, that supply will not be available for another two years. Therefore, the proposal is to drill for a new bore with a 10,000 litres per hour pump beside the terminal building. This would potentially provide a capacity of 120,000 litres per day. McNeill Drilling believe there is likely to be water available at that site. The new bore could therefore not only provide water for the five additional sites but would also have enough capacity to service further development and potentially provide irrigation water for the airport reserve. Financial Implications The estimated costs to provide a new water bore, water reticulation, power connections and taxiways (shown highlighted in blue on above plan) to the five additional sites are as follows: Description Cost Estimate Water reticulation to five sites - quote $4,000 Power connections to five sites - quote $3,000 Trenching for power and water reticulation -estimate $3,000 Taxiways - estimate $165,000 New water Bore - estimate $43,000 TOTAL $218, The potential rental for each of the five sites is $3,500 plus GST per annum for a total of $17,500 per year. The estimated amount required to service a loan for $218,000 is $17,600 per year. Options Considered Option 1 To approve an over spend of $218,000 to fund infrastructure development of five additional hangar/accommodation sites, funded by a 20 year loan. Advantages: Allowing further development at the airport to proceed in the short term means it will not lose momentum as interest continues to increase. The interested parties who have reserved the sites will be able to sign agreements to lease and can progress their building plans, which for some have been on hold for six months. Report Author: Property Officer 10

11 Disadvantages: There is some risk associated with a new bore as there are no guarantees water will be found and Council will still need to pay for the initial drilling costs. Option 2 Decline to approve an over spend of $218,000 fund infrastructure development. Advantages: The financial risk associated with the new bore will be avoided. Disadvantages: If no alternative water supply is possible at the airport no further development can proceed until town water is available. If further airport development is stalled for two years due to the delay in town water supply being available, the development may lose momentum. Interested parties may look elsewhere for airport hangar sites. Discussion The rental income from the five proposed sites will be enough to fund a 20 year loan for the estimated infrastructure costs required, including a new bore. A new bore with an estimated capacity of 120,000 litres per day would provide enough water to service not only the five proposed sites but would also supply additional development. There would also potentially be enough capacity to provide irrigation water for the airport reserve in the future for other purposes. Risk Analysis All contractors engaged to carry out the infrastructure work at the Alexandra Airport will have robust health and safety systems in place to ensure a safe environment for contractors, lessees, and other users of the airport. There is a risk involved with a new water bore as there are no guarantees that a sufficient water supply will be found at the proposed site. Local Government Act 2002 Purpose Provisions Section 10 of the Act states the purpose of local government is: (a) to enable democratic local decision-making and action by, and on behalf of, communities; and (b) 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. Report Author: Property Officer 11

12 While the airport is not a core activity or strategic asset, the airport as a local infrastructure asset, provides a local service (air service for hospital specialists, navigation system for heli rescue) and has potential to assist with economic development by: Facilitating aviation associated business development, Providing opportunity for aviation associated land use, not common to other communities, So the infrastructure investment promoted in this report will contribute to the community s wellbeing, sustainability and provide an income stream to offset rates. Council Policies / Plans / Procedures None Proposal To approve an over spend of $218,000 to fund infrastructure allowing the development of five additional hangar/accommodation sites, to be funded from a 20 year loan. Implementation Plan February Obtain signed agreements to lease subject to Council confirming prices of infrastructure development. March 2018 Confirm prices and engage contractors. Winter 2018 Install power and water. Spring 2018 Construct taxiways. Issue leases. Consultation and Engagement The proposal does not meet any of the criteria or exceed thresholds in the Significance and Engagement Policy. Report Author: Reviewed and Authorised by: Tara Bates Property Officer Louise van der Voort Executive Manager - Planning and Environment 15/12/ /01/2018 Report Author: Property Officer 12

13 Chair s Report RECOMMENDED that the Chair s report be received. 13