Regional council posts near $17m surplus in ‘turbulent year’
From local democracy reporter Brendon McMahon:
The West Coast Regional Council has posted "an unexpectedly large" surplus of $16.6 million in its delayed 2020-21 annual report.
The draft, cleared by Audit NZ, will be tabled on Tuesday at the audit and risk committee meeting, and is expected to be formally adopted next month.
The report is late due to Covid-related constraints on the auditing process. The reporting time was relaxed nationally through a law change for a large number of affected local authorities.
Chairman Allan Birchfield described 2020-21 as a "turbulent year" as the long-term impacts of Covid were felt throughout the region.
Revenue was greater than budgeted by $17.4m, mainly due to the transfer of the Greymouth floodwall assets from the Grey District Council to the regional council. The floodwall has since been valued at $15.6m.
The addition of the floodwall increased the infrastructure asset base to $103.7m, and dominated the council's balance sheet.
Subsidies and grants were $1.1m more than budgeted because of higher than expected funding from the Government for infrastructure projects.
Investment income was up $679,000 because of better than expected returns on investments.
Expenditure was up $809,000, mainly due to unforeseen spending on infrastructure. In particular, $452,000 was spent on modelling for the Westport flood warning forecast, part of the requirements for the proposed flood protection scheme.
In the year to June 30 last year, part-year remuneration for then chief executive Vin Smith totalled $168,115 (2019-20 it was $255,729).
Mr Smith left during July 2021, and therefore any related severance pay will not be disclosed until next year's annual plan.
Total costs for the council's 73 staff was $6.5m (75 staff and $5.8m the previous year).
Elected representative costs were $409,454 (2019-2020 $372,718).
Three staff members earned between $160,000 and $280,000. The council also had eight staff receiving between $100,000 and $159,999; the previous year it had six in that pay bracket.
Current chief executive Heather Mabin said 'governance' costs of $642,152 were over-budget by $220,149.
Ms Mabin said that reflected increased costs of finalising the 10-year long-term plan.
The increased governance cost was predominantly audit fees, she said.
Birchfield said the council was successful in receiving $900,000 in 2020-21 to fund flood resilience projects in the Hokitika, Greymouth and Westport rating districts.
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Controversial West Coast landfill granted extension to fix issues
By local democracy reporter Brendon McMahon:
A controversial West Coast private landfill under Environmental Protection Authority (EPA) watch is being given more time to fix water issues following "adverse weather".
The EPA has granted Taylorville Resource Park (TRP) an extension of a few weeks to meet the requirements of a three month abatement notice slapped on the site in March.
It came after the West Coast Regional Council asked the authority in February to take over its environmental compliance investigation of the Coal Creek landfill, 5km east of Greymouth.
The council was plagued with complaints about the landfill site throughout 2023.
These ranged from an overwhelming stench forcing neighbours to stay indoors, alleged asbestos generated dust, and water leaching from the site into a roadside drain.
After the authority took over investigations in February, it found leachate from the landfill had been allowed to spill from the site via an adjoining waterway.
Under the subsequent abatement, TRP were given three months to comply, ending June 14.
Investigations manager Jackie Adams said compliance officers have since visited the site and found TRP have made "significant progress".
However, the work required has not been completed due to "adverse weather conditions" during the abatement period, Adams said.
Because of this, the authority had yet to determine the final outcome of its investigation.
"Our officers will be returning to the site again in the coming weeks," Adams said.
"Once this inspection has been completed, we will determine if all the conditions of the notice have been met before considering any next steps."
LDR has asked the authority what type of weather factor was at play.
"We understand that there were poor weather conditions in April that affected TRP's ability to install the waterproof lining of the new storage pond," Adams said.
The authority recognised the future of the site as "an important issue for people in the region".
It continued to work with TRP to ensure compliance with the abatement, he said.
"Under the Resource Management Act, the EPA has specific enforcement functions to assist and intervene in an enforcement action of a council."
Adams said they will provide a further update when they have completed their follow-up inspection and confirmed any next step.
West Coast Regional Council Regulatory and Policy group manager Jocelyne Allen said they were keeping a watch on the site to ensure an "appropriate level of enforcement" in line with "the level of environmental effects".
Allen was asked to expand in what was meant by an appropriate level of enforcement.
She said the council was "using its discretion" while working through its enforcement strategy.
This was to ensure relevant treatment of the site from a compliance perspective, she said.
Allen said they expected an update from the EPA by mid-July.
The council had several options to consider, under the Resource Management Act, beyond the EPA's findings.
Those could include anything "from a warning right up to prosecution," Allen said.
The council also had the power to issue notices with conditions plus interim and enforcement orders.
Allen said they were constantly evaluating the best options, but the council had not yet taken action to say "it can't operate".
"We wouldn't just be able to shut the site down at this stage."
Allen said more recent consent applications from TRP may yet go to a public hearing, but council had to assess if the impacts were "more than a minor environmental effect" before making a hearing decision.
Allen said that could also be circumvented if the applicant themselves requested a public hearing.
TRP has been approached by LDR. Questions included if it anticipates meeting the extended abatement period, and if it would be happy for a public hearing.
Pressure on council to protect Hokitika from flooding
By local democracy reporter Brendon McMahon:
Earthworks should begin along Hokitika's Gibson Quay next week on a delayed flood bank build.
The clock has been ticking on the Hokitika River protection project since last December when West Coast Regional Council awarded a contract but then had to wait on KiwiRail to sign the project off.
Council, in an extraordinary meeting on Thursday (July 4), approved extra costs in response to KiwiRail requirements above the original tender price.
Contractor Henry Adams was awarded the tender at the end of 2023 after last winter completing the first stage of the project, behind Westland Milk Products, and adjoining the river.
The new section runs along the railway line and Gibson Quay from Westland Milk Products down to the Hokitika Bridge.
It also adjoins the Wadeson Island and Hokitika River bank whitebaiting area.
Council chairperson Peter Haddock said the pressure is now on to finish the new flood bank within two months - with the local whitebaiting season due to start on September 1.
"It's been delayed and once again it's been a concern of council in getting through the project … I do understand that Kiwi Rail have to look after their asset," Haddock said.
In the meantime the community remained "vulnerable" to the river.
"The bulk of the works have got to be done before the whitebait season … that project will be underway immediately next week - that will be a good bit of protection works for Hokitika," Haddock said.
Dubbed '1B,' the project is the second of a suite of staged Kanoa approved flood resilience works costing several million dollars.
These will eventually improve protection to the entire Hokitika residential and business area from Kaniere to the CBD.
Haddock said KiwiRail had sought adjustment to the original contract scope.
"It had been let to Henry Adams Contracting subject to approval from KiwiRail, which has taken over nine months - because it was let before Christmas," Haddock said.
"They've finally come back and there's more work to do to protect their network."
The extraordinary meeting was required to tick off the cost of "more earthworks" and drainage in response to KiwiRail.
"There was a significant cost but it was below the budget that was allowed for the project," Haddock said.
This amounted to about $200,000 below their original budget contingencies.
"The contract is still under budget."
Haddock said the adjusted costs "were still competitive" and the council was satisfied with a staff recommendation on that basis.
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