Council Agenda - 29-07-20 Page 147
FOR INFORMATION NGĀ MŌHIOTANGA
TO Mayor and Councillors
AUTHOR Steve de Laborde Infrastructure Systems and Planning Manager
FILE REFERENCE Document: M2786301
PORTFOLIO HOLDER/S Councillor Duncan Smeaton Solid Waste Portfolio
MEETING DATE Wednesday, 29 July 2020
SUBJECT Waste Management – Monthly Activity Report – June 2020
SUMMARY | TE WHAKARĀPOPOTANGA
June saw the country in the full swing of Level 1. This meant that the waste collection services could go back to normal. However, it took a couple of weeks of collections for the public to get accustomed to the change. This included the change to only collecting Plastics 1 and 2. There were and still remain some contaminated bins, but the percentage on a whole is small. The capital project have been progressing steadily. Waihi’s scrap metal area should come on- line soon.
RECOMMENDATION | TE WHAIKUPU
THAT the report be received.
Whaarangi 1 | 5 M 2786301 Council Agenda - 29-07-20 Page 148
1 PURPOSE | TE ARONGA
The purpose of the report is to give Council a monthly update on the operations and capital work pertaining to the Waste Management activity.
2 BACKGROUND | TE KŌRERO Ā MUA
HDC has a contract with Smart Environmental Ltd for a Kerbside collection of refuse and recycling and the management of the refuse transfer stations in Paeroa and Waihi. We also have a contract with Waste Management who manage the landfill at Tirohia.
3 ACTIVITY UPDATE
Operations: Transport Tonnages: The tonnage of waste transported from the Paeroa and Waihi transfer stations to the landfill at Tirohia is presented in Figure 1. The increase due to everything going to landfill is somewhat notable.
Figure 1: Waste Transported from RTS’s Diversion:
Please Note: The graphs below include a recycling portion, while we know that everything was going to landfill. This is because some of the trucks are only registered for recycling, but they were being used for rubbish collection. The “Total” column reflects everything that went to landfill during that time. There was no recycling.
Figure 2 below shows the weight in tons, of each waste stream coming from the three source areas managed in the contract, namely Kerbside collections and the Paeroa and Waihi Refuse Transfer Stations (RTS’s). It shows the current month plotted against the previous month for easy comparison.
Whaarangi 2 | 5 M 2786301 Council Agenda - 29-07-20 Page 149
The definitions of the different components of the waste stream are as follows:
Recycling: Mixed cardboard, plastics, aluminium, etc., from a Kerbside Wheelie Bin. Glass: As it says, but sorted into clear, green and brown. Cardboard: Cardboard on its own, not mixed, from RTSs. Commingle: The same as recycling, but from the RTSs. Green Waste: As it says and includes the category Mulch. Refuse: None of the above, everything that goes to landfill.
Summary of Waste Streams for 2019 - 2020 Refuse Recycling Glass Cardboar Commingle Green Waste
Weight (t) - 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 500.0
Jun Kerbside
Jun Paeroa Paeroa RTS
Jun Waihi Waihi RTS
Figure 2: Summary of waste streams for June.
Waste Minimisation Target:
On the following page are the graphs representing the waste stream going to landfill, compared to the targets set for 2022 in the Waste Minimisation Plan.
Also shown and compared are the volumes of refuse and recycling generated from the various sources, namely: Kerbside collection, Paeroa RTS and Waihi RTS.
Data Confidence: The data obtained to produce the following graphs comes from the landfill company, Waste Management and our kerbside/RTS contractor, Smart Environmental. The calculations for the graphs were based on the following assumptions:
Rated properties: 6,927 (rated for refuse collection) District Population: 20,022 (2018 Census Data) Applied Kerbside Population: 13,300 (2018 Census Data)
Whaarangi 3 | 5 M 2786301 Council Agenda - 29-07-20 Page 150
HDC Waste Summary for 2020 2022 Targets Kerbside 2022 Target Total 2022 Target (kg/Prsn/Yr) 74.0 316.0 Jan 10.6 6.2 20.5 26.3 Feb 8.7 6.2 18.3 26.3 Mar 7.8 6.2 18.2 26.3 Apr 5.2 6.2 16.5 26.3 May 13.8 6.2 34.6 26.3 Jun 11.3 6.2 35.4 26.3 Jul #N/A 6.2 #N/A 26.3 Aug #N/A 6.2 #N/A 26.3 Population Data used: updated Jan 2020 Sep #N/A 6.2 #N/A 26.3 Properties Rated: 6,927 (properties) Oct #N/A 6.2 #N/A 26.3 Kerbside Population: 13,300 (2018 Census) Nov #N/A 6.2 #N/A 26.3 District Population: 20,022 (2018 Census) Dec #N/A 6.2 #N/A 26.3
Kerbside WMMP Landfill Comparison Total WMMP Landfill Comparison 74kg/person/year (6.2kg/month) 316kg/person/year (26.3kg/month) 16.0 40.0 14.0 35.0 12.0 30.0 10.0 25.0 8.0 20.0 6.0 15.0 4.0 10.0
2.0 5.0
Kg per Personper Month Kg per Personper Month 0.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2022 Target Kerbside 2022 Target Total
Diversion: Refuse (t) Re-cycling (t) Total (t) Diversion Jan 410.6 183.2 593.8 Refuse vs Recycling Feb 366.8 151.9 518.7 1000.0 Mar 365.1 121.3 486.4 Apr 334.8 105.9 440.6 800.0
May 694.5 67.7 762.2 600.0 Jun 708.8 88.1 796.9 400.0 Jul #N/A #N/A #N/A Tons (t) Aug #N/A #N/A #N/A 200.0 Sep #N/A #N/A #N/A 0.0 Oct #N/A #N/A #N/A Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nov #N/A #N/A #N/A Refuse (t) Re-cycling (t) Total (t) Dec #N/A #N/A #N/A
Recycling: Kerbside Paeroa RTS Waihi RTS Total (t) Recycling Jan 134.4 12.3 36.5 183.2 Feb 98.1 7.1 42.1 147.3 200.0 Mar 80.0 6.9 34.4 121.3 Apr 72.0 14.9 12.3 99.3 150.0 May 16.7 18.7 20.6 56.0 100.0 Jun 59.7 7.1 13.6 80.4 Jul #N/A #N/A #N/A #N/A Tons (t) 50.0 Aug #N/A #N/A #N/A #N/A Sep #N/A #N/A #N/A #N/A 0.0 Oct #N/A #N/A #N/A #N/A Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nov #N/A #N/A #N/A #N/A Kerbside Paeroa RTS Waihi RTS Total (t) Dec #N/A #N/A #N/A #N/A
Refuse: Kerbside Paeroa RTS Waihi RTS Total (t) Refuse Jan 140.6 129.2 140.7 410.6 Feb 115.4 124.6 126.7 366.8 800.0 Mar 104.0 135.6 125.6 365.1 700.0 Apr 69.2 247.3 13.8 330.2 600.0 May 184.0 476.1 32.2 692.3 500.0 400.0 Jun 150.6 363.1 195.1 708.8
Tons (t) 300.0 Jul #N/A #N/A #N/A #N/A 200.0 Aug #N/A #N/A #N/A #N/A 100.0 Sep #N/A #N/A #N/A #N/A 0.0 Oct #N/A #N/A #N/A #N/A Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Nov #N/A #N/A #N/A #N/A Kerbside Paeroa RTS Waihi RTS Total (t) Dec #N/A #N/A #N/A #N/A
Whaarangi 4 | 5 M 2786301 Council Agenda - 29-07-20 Page 151
Capital Works Update: - Some of these projects have been able to proceed during Level 3, below is the status at the two sites.
Paeroa RTS Site: The Resource Consent draft has been reviewed and will now be finalised for submission; The new fence will be installed to delineate the Paeroa RTS and Paeroa Reuse and Repair Centre. This will provide an opportunity to the Paeroa Reuse and Repair Centre to operate at different hours. Procurement for fences and general maintenance items, such as new plastic bunded waste oil tank assembly, safety rails and other has been completed and we are awaiting delivery and installation.
Waihi RTS: Installation of concrete slabs on both sides of the main refuse shed is complete; The stormwater Downstream Defender is installed; The construction of the concrete slab for scrap metal recycling has commenced; The Interblocs™ for the walls of the scrap metal area are to be delivered and placed once the concrete has cured;
Table 1: Capital Works Progress: = On Track
Waste Minimisation:
Media Campaign: Staff have been and continue to work on the following Working Party initiatives to promote public awareness.
Updating HDC’s Waste Management web page with current and relevant information. Identifying and using other free Social Media material to push out on HDC’s Facebook. Keeping contact with WasteMINZ about the progress on a pending national campaign. Finalising the design and costs of Fridge Magnets with bite sized pieces of information Purchasing Stand up Banners to be placed beside milk shelves at supermarkets in the district.
Approval
Prepared by Steve de Laborde Infrastructure Systems and Planning Manager Approved by Adrian de Laborde Engineering Group Manager
Whaarangi 5 | 5 M 2786301 Council Agenda - 29-07-20 Page 152
FOR DECISION MŌ TE WHAKATAUNGA
TO Mayor and Councillors
AUTHOR Steve de Laborde Infrastructure Systems and Planning Manager
FILE REFERENCE Document: M2784899 Appendix A: Mechanical Cleaning Progress
PORTFOLIO HOLDER/S Councillor Phillip Buckthought Land Drainage & Flood Protection Portfolio
MEETING DATE Wednesday, 29 July 2020
SUBJECT District Drainage Activity Report To 30 June 2020
SUMMARY | TE WHAKARĀPOPOTANGA
With June being the end of the financial year, it also signals the end of the maintenance season. In spite of Covid-19, the Mechanical Cleaning programme was successful. This was largely due to the nation moving into Level 3 and allowing construction to go back to work. However, the weather hampered the Spray Programme to some degree.
Overall the Land Drainage has suffered no serious set-back as we move into the winter mode of maintaining pumps and floodgates.
RECOMMENDATION | TE WHAIKUPU
THAT the report be received.
1 PURPOSE | TE ARONGA
The purpose of the report is to give Council a monthly update on the operations and capital work pertaining to the Land Drainage and Flood Protection activity.
2 BACKGROUND | TE KŌRERO Ā MUA
Hauraki District Council provides infrastructure for the land drainage activity in conjunction with the Waikato Regional Council. The land drainage network is comprised of pump stations, stopbanks, flood gates and land drains. It will soon be extended to include toe drains which are currently held by the Regional Council. In general assets are classified as flood protection (primary) or drainage (secondary) assets where Waikato Regional Council own the flood protection assets and Hauraki District Council own the drainage assets. The land drainage service is provided to over 47,000 ha of highly productive pastoral land and the activity aims primarily to ensure the productive capability of the land.
Whaarangi 1 | 3 M 2784899 Council Agenda - 29-07-20 Page 153
3 ACTIVITY UPDATE
The Operations report follows:
Vegetation Control • 709.89km out of 650km of drains have been sprayed this season including localised spraying around pump stations. This indicates that some drains have had a second spray.
Mechanical Cleaning: (See Appendix B: Table 1) • The full Mechanical cleaning programme was generally achieved with 94.24kms of drains having been machine cleaned in this financial year.
Other works: • Several flood gates in the district required desilting. Approximately 161 man-hours were spent on pump screen cleaning during this reporting month. Blockages in the Ngarua Road and Patetonga West North drains were cleared.
Capital Works Programme The capital works consist of assessing and raising stopbanks and refurbishing pumps and pump screens. Procurement for most projects is underway (these that don’t need consents). Once this process has been finalised we can proceed to appoint contractors. Other projects that included drain cleaning to get material to raise the stopbanks have been put on hold as HDC reconsiders its option to raise the stopbanks. This may include treating the maintenance of the stopbanks separately to the modified stream (drain) maintenance. Drainage Committees There were no drainage committee meetings held in June, instead the Western Plains Committee conducted a tour of the Western Plains Drainage District, stopping at various places of interest for discussion. The tour started in the north at the Hot Springs & Karito Canals and made its way to the southern most part in Patetonga. The Eastern Plains Working Party for the Campbell Floodgate met for a second time to discuss the issue. The Council will receive a report on 15 July with the recommendations of this working party.
4 CONCLUSION
Overall, the land drainage activity has managed to get most of the maintenance work done, in spite of the pandemic and weather.
Approval
Prepared by Steve de Laborde Infrastructure Systems and Planning Manager Approved by Adrian de Laborde Engineering Group Manager
Whaarangi 2 | 3 M 2784899 Council Agenda - 29-07-20 Page 154
APPENDIX A Table 1: Mechanical Cleaning Progress
2019-20 All DDs - Cleaned 2019-20 All DDs - To be cleaned Drain No Drain Name Area Length M/C Drain No Drain Name Area Length M/C Z1 Karl's F/G 1 100 A82 balance 3 520 B72 Torehape Feeder 5 1,600 B37 clarke 6 8,980 B73 Stichbury 5 1,400 B55 Cassey 6 2,300 B79 Torehape Equaliser 5 1,225 B56 Dudding 6 1,880 A41 Paul Leonard 3 600 A17 Boom South 1 3,800 B64 Rawe Rawe Rd North Side 4 1,400 D07 Bloomfield 4 1,520 A86 Haywards 4 665 C55 Kerepehi Township 3 1,050 B50 Pouarua Canal Desilt 2 300 A03 Hot Springs 1 1,240 B52 Railway Canal 4 1,410 A07 Karito Canal 1 2,400 B59 Central Rd South East Side 4 1,465 B50 Pouarua Canal Desilt 4 2,000 B16 Waikoura 5 300 A34 Hot Pools 1 450 rawe rawe pump area 3 1,200 B60 Townshend 5 3,420 B71 Hopai North Feeder 4 1,250 A58 Ngatea-Pipiroa West 3 1,100 A22 Swale-Douglas 1 400 A81 main drain 3 1,000 A77 Costello Outlet 1 400 C17 Taipari 1 100 C32 Willow 2 3,000 C02 Opani Point 1 1,700 C72 Johnstone Feeder (N) 2 1,485 C76 Blake Borrowpit 2 2,020 C66 Ngatea Borrowpit 2 1,440 cox borrowpit 1 2,000 C65 Subdivision 3 2,110 C03 Cox's 1 500 C05 Pines 1 2,790 D65 Smith 5 800 D04 Benny 4 590 c80 James 2 1,750 D60 h-drain 5 200 D01 Reservoir canal 4 2,500 D22 North Catchment 4 1,250 D23 South Catchment 4 9,565 D37 Simpson 4 2,830 C39 Gumtown R/Side 2 1,370 K05 Crosses 1,900 k13 Corbett 750 K16 Kurere 2,000 K12 Murdoch 1,580 Gerrands 2,132
Whaarangi 3 | 3 M 2784899 Council Agenda - 29-07-20 Page 155
Public Excluded Business
(pages 156-166 have been removed)
Council Agenda - 29-07-20 Page 167
Public Included Business
Council Agenda - 29-07-20 Page 168
FOR DECISION
MŌ TE WHAKATAUNGA
TO Mayor and Councillors
AUTHOR Community Services Manager
FILE REFERENCE Document: 2783404
PORTFOLIO HOLDER Councillor Broad (Property)
MEETING DATE Wednesday, 29 July 2020
SUBJECT: New Leases Bordering Tetley’s Quarry, Maramarua
SUMMARY | TE WHAKARĀPOPOTANGA Council administers land on Steen Road in Waitakaruru. This land consists of the Council Quarry, a forestry block and surrounding grazing land. The area of the grazing land is 15.4 hectares and is currently leased to Heaven Farms Limited. The lease on the land is now due. Another party, Waitakaruru Honey Ltd, has approached Council to lease some land adjacent to their property located next to the Quarry and to have a license to occupy the forestry block in the Quarry on Steen Road. This party is also interested in leasing other land owned by Council. Staff have looked at a number of options, which are included in this report, and have provided a recommendation that is a win/win for all involved and an increased financial benefit to council. The decision is not considered to be a significant decision.
RECOMMENDATION | TE WHAIKUPU
THAT the report be received, and
THAT the portfolio holder and staff recommend that Council approve a Deed of Leases for Option 3 -
Heaven Farms Limited lease of 13.4ha from the Hauraki District Council at Tetley’s Quarry for a period of 2 years with a renewal option of another two years, at an annual lease payment of $5,660 ; and
Waitakaruru Honey lease of 2.4ha from the Hauraki District Council for the at Tetley’s Quarry for a period of 2 years with a renewal option of another two years, at an annual lease payment of $5,500
Waitakaruru Honey have a license to occupy the forestry area at the Tetley’s Quarry for a period of two years with a renewal option of another two years, at an annual fee payment of $3,000.
THAT the lease be subject to the conditions set out in the report.
Page 1 of 13 Council Agenda - 29-07-20 Page 169
1 PURPOSE | TE ARONGA
The purpose of this report is to obtain Council approval for lease agreements and a license to occupy for the use of Council land bordering Tetley’s Quarry, Steen Road, Waitakaruru.
The recommended decision does not involve a new activity, service, programme, project, expenditure or other deliverable
2 BACKGROUND | TE KŌRERO Ā MUA
The area of the grazing land is 15.4 hectares and is currently leased to Heaven Farms Limited. The lease on the land has expired.
Existing lease details:
Address / site name Tetley’s Quarry, Steen Road, Waitakaruru
Size of the property 15.8ha
Land ownership Hauraki District Council
Current use Leased to Heaven Farms Limited
Condition Land only
Seismic rating N/A
Leases Current lease expired with a lease value of $4,737.84 per annum
District Plan Zoning Local Purpose Reserve (Water Conservation) Additional limitations In the Rural Zone( Waikato District Council), it is possible for apiary to be permitted under the farming definition, therefore could be a permitted activity, however the only way to be certain would be for the customer to apply for a certificate of compliance.
Grazing dairy stock is a permitted activity under the farming definition.
Consents Certain activities that people do associated with hives can also fall within the definition of “rural industry” which would require consent. All necessary consents are to be obtained before activity can commence.
Heaven Farms Ltd wish to continue this lease as well as another party, Waitakaruru Honey Ltd, have approached Council to lease some land adjacent to their property located next to the quarry on Steen Road. This party is also interested in leasing other land owned by Council.
Page 2 of 13 Council Agenda - 29-07-20 Page 170
A summary of the proposed property leases is outlined below:
Current ownership and Land is owned by Hauraki District Council. tenure Current use The land was grazed by Heaven Farms – adjoining land landowner. Proposed lessors Heaven Farms Ltd and Waitakaruru Honey Ltd Proposed use Activities associated farming and grazing Duration of lease Two years plus a further renewal for two years, note Waitakaruru Honey Ltd lease to begin 1st November 2020 after the winter grazing period has finished. Limitations / conditions / The lessees will require stock proof fencing to be maintained at all requirements on the times. lease of the property Lease fees and charges Heaven Farms Limited lease at an annual lease payment of $5,660 and outgoings payable plus $150 document set up fee
Waitakaruru Honey lease at an annual lease payment of $5,500 plus $150 document set up fee
All outings levied against the property. Roles and responsibilities The lessee will, pay all local authority and Waikato Regional Council rates. use the property for farming purposes
The area currently offered for lease could diminish during this lease and Council will adjust or review the lease accordingly when the land is resumed.
The landlord will not provide services to the site – water, power, phone, sewer etc.
The Lessee will farm and occupy the land exclusively for the use and benefit of the Lessee and shall not sublet or otherwise part with the possession of the whole or any part of the land for the whole or any part of the said term.
The Lessee will keep in good order repair and condition all buildings and chattels fences electric fences gates bridges erections culverts drains water systems internal races and vehicle accesses and every other description of improvements which now are or which hereafter during the said term may be made on the land and will use adequate lubricating oils and greases on all moving parts of machinery fixed or installed upon the land and will renew all such parts of the said improvements which shall become worn out decayed or unserviceable and in the said order repair and condition will at the end or sooner determination of the said term deliver up the same together with the land to the Lessor
The Lessee will stock the pastures on the land in accordance with the principles of good husbandry but limit the type of stock to dry beef cow, steers, dairy herd replacements or sheep and apiary There will be no keeping of pigs on the land.
Page 3 of 13 Council Agenda - 29-07-20 Page 171
The Lessee will during the whole of the term ensure that all drains and culverts and watercourses are kept open and reasonably clear and unobstructed and unpolluted and will at all times during the said term comply with the provisions of the Water and Soil Conservation Act 1967. Lessee will keep any native bush and any shrubbery and any timber shelter ornamental or other trees in good order and condition and will not without the prior written consent of the Lessor cut down damage or destroy or permit to be cut down damaged or destroyed all or any of the said bush shrubbery or trees at any time growing or standing on the land and will use all proper and reasonable means to preserve the same and will not without the like consent remove or permit to be removed from the land any timber fencing posts or firewood.
The Lessee shall not remove any soil or stone from the land nor shall the Lessee deliver or deposit to the land any soil or stone unless it is suitable for the maintenance of the land, entrances and tracks.
The Lessee indemnifies the Lessor from any liability that may arise from any action or actions of the Lessee during or after the term of agreement
The Lessor may at all times during the said term enter upon the land by the Lessor's officers or agents or servants or other persons authorised by the Lessor to view the state and condition thereof.
A summary of the proposed License to Occupy is outlined below:
Current ownership and Land is owned by Hauraki District Council. tenure Current use The land is an mid-life forestry plantation with a mix of understory native flora. Proposed licence to Waitakaruru Honey Ltd occupy holder Proposed use Activities associated with apiary Duration of license to Two years plus a further renewal for two years. occupy Limitations / conditions / The land parcel is to have a maximum of 60 hives located on the requirements on the forestry harvesting pads only. This is recommended best practice license to occupy of the for an area this size to ensure beehive health. property Lease fees and charges Waitakaruru Honey license to occupy fee payment of $3,000 plus and outgoings payable $150 document set up fee
All outings levied against the property.
Page 4 of 13 Council Agenda - 29-07-20 Page 172
Roles and responsibilities The licensee will, use the property for apiary purposes
The area currently offered for to be occupied could diminish during this license and Council will adjust or review the license accordingly when the land is resumed.
The Licensee shall occupy the land exclusively for the use and benefit of the License Holder and shall not sublet or otherwise part with the possession of the whole or any part of the land for the whole or any part of the said term.
The licensee will stock to dedicated area with no more than 60 beehives (4/pallet =15pallets) in accordance with the principles of good apiary husbandry.
The licensee shall provide the council with a full and comprehensive Health and Safety Plan for operating in an non- operating forestry block.
Licensee will keep any native bush and any shrubbery and any timber shelter ornamental or other trees in good order and condition and will not without the prior written consent of the Licensee cut down damage or destroy or permit to be cut down damaged or destroyed all or any of the said bush shrubbery or trees at any time growing or standing on the land and will use all proper and reasonable means to preserve the same and will not without the like consent remove or permit to be removed from the land any timber fencing posts or firewood.
The Licensee shall not remove any soil or stone from the land nor shall the Lessee deliver or deposit to the land any soil or stone unless it is suitable for the maintenance of the land, entrances and tracks.
The Licensee indemnifies the Lessor from any liability that may arise from any action or actions of the Licensee during or after the term of agreement
The Licensor may at all times during the said term enter upon the land by the Lessor's officers or agents or servants or other persons authorised by the Lessor to view the state and condition thereof.
The Licensor may terminate this license or request the surrender of all or part of the land at any time subject to (1) one month’s notice in writing being given to the Licensee.
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Property Summary
Below is an aerial photo of the property showing the highlighted boundaries of the two areas for lease. Key attributes and limitations are outlined below.
Page 6 of 13 Council Agenda - 29-07-20 Page 174
Licence to Occupy Area
Page 7 of 13 Council Agenda - 29-07-20 Page 175
3 OUR OPTIONS | NGĀ KŌWHIRINGA A MĀTOU
Strategic Alignment
An assessment of the potential lease of the property against Council’s strategies, plans, goals and objectives has been undertaken. The lease to occupy the land will be consistent with Council’s strategic direction.
Issues
Nil
Options
Staff have identified the following options for the Council to consider:
1. Lease entire area to Heaven Farms Limited 2. Lease entire area to Waitakaruru Honey Limited 3. Lease Area A(13.4ha) to Heaven Farms Limited, Area B(2.4ha) to Waitakaruru Honey Ltd and a License to Occupy the Forestry area of the quarry to Waitakaruru Honey Ltd.
These options and their advantages and disadvantages are outlined below.
Option 1: Lease entire area to Heaven Farms Limited
ABOUT THIS OPTION
Council’s Property Manager have received an expression of interest to lease two blocks of land for grazing mixed age dairy stock.
The land owned by Hauraki District Council bordering the Quarry had been leased by Heaven Farms Limited previously. During this time the Lessee have maintained the land to a high standard and lease payments have paid on time.
The Lessee would be happy to consider a long term lease of up to five years and include a relevant clause that allows the Council to take back the land for Council use with sufficient notice of 6 months). From the lessee perspective, given the investment in cows, plant and equipment and staffing, there is a requirement for a reasonable period of tenure.
In considering this proposal please note we are at the end of the dairy season and, following the drought and depressed cattle prices, it will be extremely difficult to arrange grazing for the animals currently on this land. Therefore staff request that should the Council decide not to look at a long-term lease for Heaven Farms Limited, permit continued use for the 2020- 2021 season at minimum, to allow steps to be taken should the land become unavailable.
ADVANTAGES DISADVANTAGES
The lessee (tenant) pays Council to use the Risk of environmental impact if the land is land and infrastructure in running their not responsibly grazed. farming operation and is responsible for
expenses and the upkeep of the land. Council will incur large expense for fencing Retain land ownership and receive a secure the area if not leased to Heaven Farms Ltd. income
Agriculture is a permitted activity. Council will foot the bill for local authority rates.
Page 8 of 13 Council Agenda - 29-07-20 Page 176
For the Lessee
Any other operational expenses and Full control over the management of the dairy operation without borrowing maintenance of the land will be for Council’s to purchase land. account. Ability to improve profitability of business and grow wealth.
FINANCIAL COSTS
Grazing Market Evaluation
$650 per hectare per year for the 4 hectare block closest to the Quarry $600 per hectare per year for the 3.6 hectares of the larger block for dairy $300 per hectare per year for the remaining 8.2 hectares of the larger block for drystock
Total amount of $7220 plus GST per year
Whole of life costs Capital costs: Nil Ongoing annual operating: Local authority rates carried by lessee Budget source Council’s Miscellaneous Property income account will see a positive nett effect. Changes to budgets In order to accommodate these costs there will not need to be changes to budgets. Impact on the Council’s debt There is no impact on the Council’s debt Potential impact on rates There will be no impact on rates.
OPTION 2: Lease entire area to Waitakaruru Honey Ltd
ABOUT THIS OPTION
Council’s Property Manager have received an expression of interest to lease two blocks of land for the purposes of apiary activities.
The business owner lives on a property neighbouring the Quarry and is looking to operate a small business. The apiary business consists of seasonal honey extraction, hive maintenance and hive construction.
The business/resident owner is asking to lease from Hauraki District Council the adjoining pastureland to the west to assist with apiary activities. During the Manuka flowering season (4-8 week period pending area location, Northland first to Turangi last), the hives are distributed from Northland, Taranaki, Turangi and the Coromandel to Manuka Tree growing areas.
There are areas within the Hauraki District, which have been identified as favourable for producing UMF Manuka Honey.
The business owner is also interested in other areas within the district for over wintering hives. Council owns land that is suitable for this activity, which could result in fiscal benefits to Council. The business owner already has arrangements with some farm owners in the district.
Page 9 of 13 Council Agenda - 29-07-20 Page 177
ADVANTAGES DISADVANTAGES
The lessee (tenant) pays the Council to use Substantial expenditure in fencing the two the land, and infrastructure in running their blocks of land. apiary (beekeeping) operation and is
responsible for expenses and the upkeep of the land. Risk of environmental impact if the land is not responsibly used. Retain land ownership and receive a secure income, albeit less than desired.
Council will foot the bill for local authority rates. Apiary is a permitted activity under agriculture activity
Any other operational expenses and Ability to improve profitability of business maintenance of the land will be for Council’s and grow wealth. account.
Environmental impact of beekeeping is favourable.
FINANCIAL COSTS
Waitakaruru Honey Ltd propose to lease blocks A and B at an annual lease of $11,000 plus GST.
Whole of life costs Capital costs: Fencing 15.8ha at an estimated cost of $32,000 ($20/lm) Ongoing annual operating: Local authority rates carried by lessee. Budget source Council’s Miscellaneous Property income account will see a positive net effect. Changes to budgets In order to accommodate these costs there will need to be changes to budgets. Impact on the Council’s debt There is no impact on the Council’s debt Potential impact on rates There will be no impact on rates.
OPTION 3:
Lease area A to Heaven Farms Ltd and area B to Waitakaruru Honey Ltd
ABOUT THIS OPTION
Heaven Farms Ltd(Area A – 13.4hectare)
Use Area (hectare) Lease per Total per annum hectare/annum Dairy grazing 1.6 $650 $1,040
Page 10 of 13 Council Agenda - 29-07-20 Page 178
Dairy grazing 3.6 $600 $2,160
Drystock grazing 8.2 $300 $2,460
TOTAL $5,660
Waitakaruru Honey(Area B – 2.4 hectare)
Use Area (hectare) Lease per Total per annum hectare/annum
Apiary 2.4 $2,292 $5,500
Waitakaruru Honey (License to Occupy Area)
Use Forestry Area Lease per Total per annum (hectare) area/annum
Apiary Approx. 46 $3,000 $3,000
Total return to Council through two leases and a license to occupy
Use Area (hectare) Lease per Total per annum hectare/annum
Grazing/Apiary 15.8 $706 $11,160
Apiary in the Approx. 46 $3,000 for total $3,000 Forestry area area/annum
TOTAL $14,160
ADVANTAGES DISADVANTAGES
Diversified use of Council land with a lower Risk of environmental impact if the land is environmental impact. not responsibly used.
Economic empowerment of two businesses Council will foot the bill for local authority opposed to one. rates.
More income to Council through two leases Any other operational expenses and and a license to occupy. maintenance of the land will be for Council’s account.
Existing leaseholder (Heaven Farms Ltd) have indicated that they understand optional lease arrangements.
Page 11 of 13 Council Agenda - 29-07-20 Page 179
FINANCIAL COSTS
Whole of life costs Capital costs: Area B (2.4ha) - Fencing bisecting fence line(100metres) at $2,000 (lessee has offered to pay for this) Ongoing annual operating: Rates Budget source Council’s Miscellaneous Property income account will see a positive net effect. Changes to budgets There will not be changes to budgets. Impact on the Council’s debt There is no impact on the Council’s debt Potential impact on rates There will be no impact on rates.
Assessing the Risks
The following risks and mitigation measures have been identified by staff for consideration by Council in making a decision on the lease of the property:
Risk 1: Financial - The lessee will pay all local authority rates and service charges. There is a risk that the payments may fall behind or be defaulted.
Mitigation: Property Officer to ensure regular invoicing and follow up on outstanding debt with a notice to remedy.
Risk 2: Reputation – Council being seen to not support community led activities, sport clubs or initiatives.
Mitigation: Grant lease with appropriate conditions.
Risk 3: Land and buildings - At the expiry of this lease, unless otherwise agreed, the lessee shall remove all buildings and structures from the land and shall reinstate the land in a clean and tidy condition.
Mitigation: Annually do an inspection of building and land by Council staff to ensure the building is safe and in a good condition, and the land is maintained in a husbandry manner.
4 SIGNIFICANCE AND ENGAGEMENT ASSESSMENT
This decision does not trigger the Significance and Engagement Policy Assessment Tool and therefore is not considered significant under the Significance and Engagement Policy 2014.
No engagement is necessary for this decision as it is not a new service but extending what is currently being provided.
5 BUDGET IMPLICATIONS
Key budget impacts are identified and assessed below.
Page 12 of 13 Council Agenda - 29-07-20 Page 180
Impacts on maintenance and capital costs over the duration No capital outlay required. of the lease Maintenance of the grounds will be the responsibility of the lessees.
Income of $14,160 plus annual CPI per annum plus GST, plus all rates and outings on the property will be credited to the Miscellaneous Property Budget.
There are no budget implications to Hauraki District Council as a result of this decision.
6 PREFERRED OPTION| TE KŌWHIRINGA MATUA
Council should make its decision on which option to choose based on that option being the most cost effective, and good quality option for the Hauraki District (s10 of the Local Government Act 2002).
The Property Portfolio Holder and staff recommend to Council that it approves the new lease agreements between Council and
• Heaven Farms Limited lease of 13.4ha from the Hauraki District Council at Tetley’s Quarry for a period of 2 years with a renewal option of another two years, at an annual lease payment of $5,660 ; and
• Waitakaruru Honey Ltd lease of 2.4ha from the Hauraki District Council for the at Tetley’s Quarry for a period of 2 years with a renewal option of another two years, at an annual lease payment of $5,500; and
Waitakaruru Honey Ltd have a license to occupy the forestry area at the Tetley’s Quarry for a period of two years with a renewal option of another two years, at an annual fee payment of $3,000.
Approval
Prepared by David Varcoe Community Services Manager
Approved by Steve Fabish Group Manager - Community Services and Development
Page 13 of 13 Council Agenda - 29-07-20 Page 181
FOR DECISION MŌ TE WHAKATAUNGA
TO Mayor and Councillors
AUTHOR Property Manager
FILE REFERENCE Document: 2789537 Appendix A: 2790061 Gobles forest aerial view Appendix B: 2790822 Harvest estimate and cash flow Area’s B and C
PORTFOLIO HOLDER/S Councillor Ray Broad
MEETING DATE 29 July 2020
SUBJECT Easement and harvesting – Gobles Road Forest
SUMMARY | TE WHAKARĀPOPOTANGA
Patricia and Martyn Lee of 329 Goble Road, Paeroa have made a request to Council to grant an right of way easement over part section 6 Block Ohinemuri SD, owned by Council. This is to provide access to their property. The right of way is currently formed and has been in use for a number of years. This is the only area for access to their house due to the steep gradient of the land from the road, shown on attached plan. The Lee’s would meet all costs, and the works carried out under Section 48 of the Public Works Act 1981.
Council have an informal arrangement with the Lee’s over their land to form a right of way easement over their property to allow Council to harvest Block B pines as shown on attached plan. As Council is looking to start harvesting the pines in the near future, it is deemed timeous to formalise the access over the Lee property in the event of change of ownership in the future, therefore jeopardizing Council’s access to the pines going forward. Council would meet all costs, and the works carried out under Section 48 of the Public Works Act 1981, shown on attached plan.
Gobles Forest is ready to be harvested. P F Olsen as Council’s manager of the forest has submitted a very detailed harvesting estimate and cash flow, attached as Appendix B and C. The net return for Area B is $220,463 at a pruned log price of $186 per tonne. The net return on Area C is $254,593 at a pruned log price of $186 per tonne. At this stage, further negotiation is needed with the neighbour to access Area A for harvesting.
Approval is sought that P F Olsen be appointed as managers for the harvesting of the Gobles Forest block. There credentials for this are as follows: They have been our forestry managers for over twenty years Council has had a good working relationship with them
Whaarangi 1 | 8 M 2789537 Council Agenda - 29-07-20 Page 182
They manage the entire operation from resource consents to replanting They are a reputable forest harvesting and management company throughout New Zealand They are a large organisation with multiple marketing options for maximum log sale returns Management fee is based on commission of sales hence the higher the log prices the better the business is for both parties The decision is not considered a significant decision.
RECOMMENDATION | TE WHAIKUPU
THAT the report be received, and
THAT Council grant a right of way easement to P&M Lee over part section 6 Block Ohinemuri SD, owned by Council to provide P&M Lee access to their property. This will be taken under Section 28, Public Works Act 1981, and THAT Council legalise a right of way easement from P&M Lee. This will provide future access for Council to Gobles Road Forest. This will be taken under Section 28, Public Works Act 1981, and THAT Council engage PF Olsen to undertake the management of Gobles forest harvesting and log sales when the market value (pruned log) is around $186 per tonne to maximise financial return to council. 1 PURPOSE | TE ARONGA
To gain Council’s approval for one right of way easements to P and M Lee; to legalise a right of way easement over P and M Lee property and to appoint P F Olsen to undertake the management of Gobles forest harvesting and log sales when price per tonnage reach around (pruned log) $186 per tonne.
2 BACKGROUND | TE KŌRERO Ā MUA
Gobles Road forest is located at the end of Gobles Road, Paeroa with the access from Komata Reefs Road. Komata Reefs road stems from SH26 around 5km north of Paeroa.
Referring to the attached appendixes, Area A is landlocked. The only access for harvesting is from the neighbouring farm, Plains View Farms. In the past, negotiation with the owners did not produce a favourable outcome for both parties so further negotiation with them is required to gain access to this area.
Area B has a rough track through the forest at present, which connects harvesting platforms 2, 3 and 4 as per attached appendix A.
Area C is assessable from Gobles Road and is ready for harvest using harvest platform 1.
Gobles Forest Block Block Year Area Access Key Issues planted (hectare) A 1992 2.7 Nil Further negotiation required with neighbours to access area B 1992 8.8 Rough track Easement to be legalised and harvest ready road to be installed C 1992 7.3 Gobles Road Site is ready for harvest
Whaarangi 2 | 8 M 2789537 Council Agenda - 29-07-20 Page 183
3 THE ISSUES | NGĀ TAKE
The first stage of harvesting the forest is to apply for consent from Waikato Regional Council and Hauraki District Council. P F Olsen will complete this as part of their contract.
When the consents are approved, log prices will be reviewed to determine if Council proceeds with harvest or wait until favourable rates of $186 per tonne are indicated. P F Olsen have submitted a very detailed harvesting estimate and predicted cash flow as attached, Appendixes B and C.
Area A - Further negotiation required with adjoining landowners to access site.
Area B - Easement legalisation through P&M Lee property and formation of a logging ready road is required and before site can be harvested
4 ENGAGING WITH OUR COMMUNITIES | KIA UIA TE HAPORI WHĀNUI
Staff consider that the Council does have enough of an understanding of community views and preferences on this matter. The level of engagement considered appropriate for this matter, now, is to inform (i.e. one-way communication disseminating information).
5 OUR OPTIONS | NGĀ KŌWHIRINGA A MĀTOU
Staff have identified the following options for the Council to consider:
Grant an right of way easement over part section 6 Block Ohinemuri SD, owned by Hauraki District Council to provide P&M Lee access to their property
Legalise right of way easement from P&M Lee property to provide future access to Gobles Forest, and
Approval to use PF Olsen for the management of the forestry harvest.
These options and their advantages and disadvantages are outlined below.
5.1 OPTION 1: GRANT EASEMENT OVER COUNCIL OWNED LAND to P&M LEE
ABOUT THIS OPTION
The right of way is currently formed and has been in use for a number of years. This will grant the Lee’s a right of way easement to access their dwelling as per Appendix A.
Whaarangi 3 | 8 M 2789537 Council Agenda - 29-07-20 Page 184
ADVANTAGES DISADVANTAGES The Lee’s will continue to have access to Nil their property FINANCIAL COSTS The Lee’s would meet all costs, and the works carried out under Section 48 of the Public Works Act 1981.
Whole of life costs N/A Budget source N/A Changes to budgets In order to accommodate these costs there will not need to be changes to budgets
Impact on the Council’s debt There is no impact on the Council’s debt Potential impact on rates There will be no impact on rates because the property owner meets the cost.
5.2 OPTION 2: LEGALISATION OF EASEMENT OVER P & M LEE’S PROPERTY
ABOUT THIS OPTION
Council have an informal arrangement with the Lee’s over their land to form a right of way over their property to allow Council to harvest Block B pines. As Council is looking to start harvesting the pines in the near future it is deemed timeous to formalise the access over the Lee property in the event of change of ownership in the future, therefore jeopardizing Council’s access to the pines going forward.
ADVANTAGES DISADVANTAGES Future access to Block B pines is secured If this is not approved, future access to the pines is jeopardized.
If access is not approved, harvesting of Block B will be hindered. FINANCIAL COSTS
Council would meet all costs and the works carried out under Section 48 of the Public Works Act 1981, shown as per Appendix A.
Whole of life costs N/A
Budget source Council’s Property account, from proceeds of timber sales. Changes to budgets In order to accommodate these costs there will not need to be changes to budgets. Impact on the Council’s debt There is no impact on the Council’s debt Potential impact on rates The impact on rates will
Whaarangi 4 | 8 M 2789537 Council Agenda - 29-07-20 Page 185
5.3 OPTION 3: APPROVAL TO USE PF OLSEN LTD TO MANAGE THE FOREST HARVESTING OF GOBLES ROAD FOREST BLOCKS
ABOUT THIS OPTION
Council will appoint PF Olsen to harvest the Gobles Road Forestry Blocks.
ADVANTAGES DISADVANTAGES
They have been our forestry managers for Nil over twenty years We have a good working relationship with them They manager the entire operation from resource consents to replanting They are a reputable forest harvesting and management company throughout New Zealand They are a large organisation with multiple marketing options for maximum log sale returns Management fee is based on commission of sales hence the higher the log prices the better the business is for both parties
Whaarangi 5 | 8 M 2789537 Council Agenda - 29-07-20 Page 186
FINANCIAL
P F Olsen management fee is commission based and subtracted off harvest income as shown in Appendix B&C.
Graphs below show fluctuation of Pinus radiata world market.
Log prices: 2019 vs 2020 valuation assumptions
Pinus radiata log prices at the Port of Tauranga from 2009-2020
Gobles Forest Block return if harvested at $186 per tonne. Block Year Area Price per Financial return planted (hectare) tonne(pruned log) A 1992 2.7 $186 Nil due to access
Whaarangi 6 | 8 M 2789537 Council Agenda - 29-07-20 Page 187
B 1992 8.8 $186 $220,463 C 1992 7.3 $186 $254,593 Total return to Council $475,056
Whole of life costs N/A
Budget source Provided from revenue of log sales Changes to budgets Nil Impact on the Council’s debt There is no impact on the Council’s debt Potential impact on rates The impact on rates will
6 PREFERRED OPTION| TE KŌWHIRINGA MATUA
The Property Portfolio Holder and staff recommend proceeding with the following options:
Option 1: grant easement over council owned land to P&M Lee
Option 2: legalisation of easement over P&M Lee’s property
Option 3: approval to use P F Olsen Ltd to manage the forest harvesting of Gobles road forest blocks when the market value (pruned log) is around $186 per tonne to maximise financial return to council.
6.1 LINKAGES
STRATEGIC The preferred option IS consistent Self-funded activity that DIRECTION with the Council’s strategic returns a profit to council direction, including community outcomes. LONG TERM PLAN / The preferred option IS consistent Is being added to 21-31 LTP ANNUAL PLAN with the long term plan and/or ALIGNMENT annual plan programmes and budgets. POLICIES, BYLAWS The preferred option IS consistent Nil AND PLANS with the Council’s other ALIGNMENT strategies, policies, bylaws and plans. SIGNIFICANCE The decision IS NOT considered Nil ASSESSMENT significant under the Council’s Significance and Engagement Policy 2017. IMPLICATIONS FOR The decision DOES NOT involve a Nil MĀORI significant decision in relation to land or a body of water.
Whaarangi 7 | 8 M 2789537 Council Agenda - 29-07-20 Page 188
6.2 ASSESSING THE RISKS
Staff have identified the following risks associated with the recommended option.
Risk Description of risk Level of risk How we could soften the risk remaining Financial Risk Moderate Approve Council right of way Low - not having access easement to harvest Block B Legalise P&M Lee right of way easement Financial Risk Moderate Appoint PF Olsen as forestry Low - Log market rate harvest manager. return to council Sell at recommended rate of around $186 per tonne(pruned logs) to maximise financial return
7 NEXT STEPS | TE ARA KI MUA
Timeframe Action Comments
July Approve and legalise right of way Council legal team to undertake easements August PF Olsen apply for resource consent PF Olsen to organise November/ Harvest when pruned log prices around PF Olsen and Property Manager to December $186 per tonne. agree when price is favourable. 2020
8 Approval
Prepared by Dennis Lees Property Manager Approved by Steve Fabish Group Manager - Community Services and Development
Whaarangi 8 | 8 M 2789537 Council Agenda - 29-07-20 Appendix A Page 189
1840000 1840500 1841000 1841500 1842000 GOBLES ROAD FOREST Hauraki District Council
225 2/01 Harvest Map P.rad Coeur Gold 1992 275 New Zealand 11.5ha ° Limited P aia 250 kar Queen Elizabeth 5866500 ah 5866500 i S the Second tre \ Emergency Point am National Trust ! Contour (5m)
Index
Intermediate 5 Plains View 325 Farm (2007) Title Boundary Limited Out S37° 19' 11'' E175° 42' 45'' 350 Hauler Landing, Construct A 300 The New Zealand Ground based NRC 200m Guardian Trust Skid, Construct 375 Company Limited N RC 600 m Areas
Stream 5866000 5866000 Road - Unsealed
2/01 1/01 Track P.rad P.rad 1992 1992 11.5ha 4 7.3ha Disused Track
Planted Landunit Sourced from the LINZ Data ServiceTerence and licensed Gerard for Maitland re-use B under the Creative Commons Attribution 4.0 New Zealand licence Yvonne Margaret Maitland
3 5865500 5865500
2
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400 Emergency GPS Location Point Call Emergency Services - 111. Tell them this GPS Location Point is 425 in WGS84 (latitude and longitude) Say the values are in Degrees(°) Minutes(') Seconds(") format.
S37° 19' 11'' E175° 42' 45'' 450 Scale - 1:5,000 @ A2 size 0 50 100 200
5865000 Carter Holt C 5865000 Harvey Forests Her Majesty metres the Queen Coordinate System: NZGD 2000 New Zealand Transverse Mercator Limited Projection: Transverse Mercator ad Datum: NZGD 2000 Ro es Map Disclaimer This map is distributed as-is without warranties bl of any kind, either expressed or implied, including but not limited Go to warranties of suitability to a particular purpose or use. This 1/01 map is intended for use only at the published scale. The data P.rad used was believed to be correct, however, a degree of error is inherent in all maps This map may contain information from 1992 Terence Gerard Maitland LINZ or NZ Archaeological Association Site Recording Scheme. 7.3ha Yvonne Margaret Maitland CROWN COPYRIGHT RESERVED. 1 Print Date: 6/05/2019
Gillian Elizabeth Downes Katherine Leigh Woolley Mathew William Bax 1840000 1840500 1841000 1841500 1842000 Robert John Bax
DocumentPath: L:\Jobs_Clients_Prospects\Hauraki DC\Gobles Road\GoblesRoad_A2L_HPlan.mxd Sourced from the LINZ Data Service and licensed for re-use under the Creative Commons Attribution 4.0 Council Agenda - 29-07-20 Page 190
Appendix B Council Agenda - 29-07-20 Page 191