Agenda of Special City Infrastructure Committee, City Planning Committee, Community, Culture and Events Committee, Economic Development & Communications Committee, Finance and Governance Committee and Parks and Recreation Committee Meeting

Agenda (Open Portion)

Special Meeting of All Council Committees

Page 4

13/2/2019

Special Meeting of All Council Committees (Open Portion) held Wednesday, 13 February 2019 at 6:00 pm in the Lady Osborne Room, Town Hall.

COMMITTEE MEMBERS

Lord Mayor Reynolds (Chairman)

Deputy Lord Mayor Burnet

Zucco

Briscoe

Sexton

Thomas

Denison

Harvey

Behrakis

Dutta

Ewin

Sherlock

Apologies:

Leave of Absence: Nil.

1. Indications of Pecuniary and Conflicts of Interest

Ref: Part 2, Regulation 8(7) of the Local Government (Meeting Procedures) Regulations 2015.

Aldermen are requested to indicate where they may have any pecuniary or conflict of interest in respect to any matter appearing on the agenda, or any supplementary item to the agenda, which the committee has resolved to deal with.

2. Transfer of Agenda Items

Regulation 15 of the Local Government (Meeting Procedures) Regulations 2015.

A committee may close a part of a meeting to the public where a matter to be discussed falls within 15(2) of the above regulations.

In the event that the committee transfer an item to the closed portion, the reasons for doing so should be stated.

Are there any items which should be transferred from this agenda to the closed portion of the agenda, or from the closed to the open portion of the agenda?

Item No. 3.1

Agenda (Open Portion)

Special Meeting of All Council Committees

Page 6

13/2/2019

Memorandum: Joint Meeting

10 Year Capital Works Program

Introduction

The purpose of this memorandum is to seek the Council’s endorsement of the
2019/20 Capital Works Program and the 10 Year Plan.

Background

At its 5 March 2018 meeting, the Council resolved as followed:

The Council approve the revised 2018/2019 Capital Works Program;

The Council, approve in principle for planning purposes, projects in

years two and three;

The Council note the projects listed in years four to ten;

Funding for the Battery Point Walkway be reviewed in the Capital

Works Program 2019/20 and each year thereafter;

Funding for the City to Cove Link be reviewed in the Capital Works

Program 2019/20 and each year thereafter.

As elected members would be aware, the Executive Leadership Team (ELT) review the 10 Year Capital Works Program on an annual basis.

The review of the Program and 10 Year Plan has recently been completed by ELT (Attachment A) and has resulted in a $12.2 million saving across the 10 years of the Program.

As part of the review the Program has been redrafted with some adjustments being made to projects. These include:

· Deleting notional amounts for as yet un-scoped projects. Historically a notional budget has been included for all known potential projects. This inclusion of notional amounts has the effect of increasing the capital budget estimate (and therefore required borrowings) when projects are not yet appropriately scoped, designed or costed.

· Notional costs removed from the Program include the City to Cove Link; Retail Precincts not currently scheduled; Gateway Visitor Centre upgrade (on hold pending Civic Square redevelopment); Elizabeth Mall/Wellington Court connection; Bathurst Street two-way; City Hall renewal/major refurbishment (deferred pending a business case) and tracks and rivulet work.

· Annual allocations for the Transport Strategy and Business Transformation Program removed and again only allocations for specific projects included.

· The Public Toilet Strategy has been redefined with the program extended over a longer timeframe.

It is noted that when ELT considered the removal of projects from the Program it was recognised that these may be reinstated once they are properly scoped and better defined; the annual review of the Program provides for this to occur.

In accordance with the 5 March 2018 Council decision, funding for the Battery Point Walkway and the City to Cove Link were reviewed with monies allocated for all necessary statutory approvals for the Battery Point Walkway allocated in year 5 and for the City to Cove Link in year 6.

The attached table provide a summary of:

· 10 Year Capital Works Program (Attachment A).

In amending the Council-approved Program, ELT were cognisant of the following:

· The Program is a rolling program subject to annual review with new initiatives/requirements needing to be considered/included;

· Financial effects of the May 2018 weather event;

· More realistic/accurate costs and timeframes for projects;

· Focus on existing commitments including community expectations.

The Council is advised that the review of the Program has been done in the context of the Long Term Financial Management Plan (LTFMP), assuming a rate of 3 per cent into the foreseeable future.

The proposed Program has been reviewed and reduced since the version incorporated into the currently approved LTFMP. This reduction also enables a decrease in forecast borrowings. The most recent version of the Council’s financial model underpinning the LTFMP has decreased borrowings by around $9 million over the 10 years of the Program, but this will depend on the final approved Capital Works Program; the completion rate of the current year’s Capital Works Program and prevailing cash balances.

REcommendation

That:

1. The Council approve the 2019/20 Capital Works Program.

2. The Council, approve in principle for planning purposes, projects in years two and three, subject to annual review.

3. The Council note the projects listed in years four to ten.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

N.D Heath

General Manager

Date: 8 February 2019

File Reference: F19/13867

Attachment a: Capital Works Program ⇩

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