23. 10. 96

ENVIRONMENTAL COMMITTEE

9 OCTOBER 1996

A meeting of the Environmental Committee

was held on Wednesday 9 October 1996 at 4.00 pm

PRESENT: Councillor Carole Evans (Chairperson), Councillors Oscar Alpers, Anna Crighton, Pat Harrow, Lesley Keast, Charles Manning and Barbara Stewart.

IN ATTENDANCE: Councillor David Close and Margaret Murray.

APOLOGIES: Apologies for absence were received and accepted from Councillor Newton Dodge.

Councillor Oscar Alpers arived at 4.12 pm and was not present for part of clause 10.

Councillor Anna Crighton departed at 6.00 pm and was not present for clauses 5-8, 13-18, 19.4-19.8 and 21.

Councillor Lesley Keast departed at 5.00 pm and was not present for clauses 1-8, 11-18, 19 and 21.

Councillor Barbara Stewart departed at 6.10 pm and was not present for clauses 5-8, 14-18, 19.4-19.8 and 21.

The Committee reports that:

PART A - MATTERS REQUIRING A COUNCIL DECISION

1. FOOD PREMISES REGISTRATION FEES 1996/97 RR 3808

Officer responsible	Author
Environmental Services Manager	Senior Environmental Health Officer (Licensing)
Annual Plan Output: Health Licensing and Fees

The purpose of this report is to confirm the fees for registration and inspection of food premises as considered during the annual plan process.

These fees were originally to be included in the 1996/97 Draft Annual Plan, but the Plan was published with the words "fee schedule being revised" against food premises registration. These new fees therefore need to be approved by the Council and publicly notified.

Traditionally the fees for registration of food premises has been based on the estimated time required for inspections, reinspections and associated administration work associated with the premises. This method, which has worked well to date, does present a number of anomalies in that the fees paid do not necessarily reflect the amount of time and work involved with some type of premises, nor does it reflect the fact that certain classes of food present much greater risk in terms of food safety.

In order to address some of these problem areas, it is proposed that a new scale of fees be introduced, based on a combination of food safety risk (represented as a weighting factor from 40 to 100) and a time factor related to the size of the premises. This latter factor is based on the number of staff employed or, in the case of eatinghouses, the number of seats provided. In both cases it also represents an increase in the risk factor as more staff, or more seats in an eatinghouse and therefore more meals served, represents an increase in the amount of food being prepared or served and therefore an increase in the risk of the food being contaminated or otherwise being unsafe.

The proposed fee structure is split into 4 categories in the same manner as the existing fee structure depending on the type of premises (as differing types of premises require differing amounts of time involvement).

In addition, as with the present system, there are additional fees for such activities as applications for new premises, transfer of registration, request inspections and inspections of exempt premises and mobile shops/stalls selling food. The various categories are identified and briefly explained in Appendix I.

The proposed fees are shown in tables as Appendix II. The estimated income is intended to recover at least 80% of the costs involved in the registration and control of food premises as previously reported. The remaining 20% representing the time involvement in the food area with public or general enquiries and health education input.

The expected total is only an estimate as the number of premises in each category is subject to change during the first year of operation of the new structure. The total income however is expected to be not less than the initial figure of $360,000 provided for in the preliminary budget figures.

The authorisation for the Council to set fees for the registration of food premises is found in Regulation 6 of the Health (Registration of Premises) Regulations 1966, for the recovery of costs involved with the inspection of exempt premises in Regulation 83 of the Food Hygiene Regulations 1974 and for the recovery of costs involved to the inspection of mobile shops/stalls in Sections 684(1)(39) and 690A of the Local Government Act 1974.

The proposed fee structure, if approved, will be circulated to premises by means of a special edition of the Newsletter to Food Premises. Premises will be advised of the category and weighting they have been placed in, and their new registration fee, with the opportunity to advise us if this is considered to be incorrect.

One further change for 1996/97 is the change in the registration year from the present calendar year of 1 January to 31 December to being the same as the Council's financial year of 1 July to 30 June. This will not only assist in financial planning in future years and disperse with the need for a portion of the fees having to be accrued each year, but will also avoid the unpopular practice of premises receiving invoices during the busy end of year/Christmas period.

Recommendation: That in accordance with the powers and authorities specified in the Food Hygiene Regulations 1974 and the Local Government Act 1974, the fees for the registration, inspection and control of food premises for 1996/97 be as set out in the attachment to this report.

2. COUNCIL DELEGATIONS: IMPOUNDING ACT 1955 RR 3622

Officer responsible	Author
Environmental Services Manager	Ken Lawn
Corporate Plan Output: Environmental Health

The purpose of this report is to recommend the delegation of a number of the Council's powers under the Impounding Act 1955 to enable the Act to be administered in an efficient manner.

On 28 February 1996 the Council delegated all of its powers under the Impounding Act to the Environmental Services Manager. The delegation of the powers was made pursuant to section 715 of the Local Government Act 1974.

Unfortunately the report and recommendation which led to that resolution overlooked section 63 of the Impounding Act. That section makes specific provision for a local authority to delegate to a member or officer of that authority any of its powers under that Act except the power to set poundage fees under section 14(1) of that Act. Section 14(1) provides that poundage fees may only be set by a local authority by resolution.

The delegations made in February are of no effect as they were purportedly made pursuant to the Local Government Act and included the power to set poundage fees.

To rectify this error it will be necessary for the Council to pass the resolution which is set out in the recommendation below.

Recommendation: That pursuant to section 63 of the Impounding Act 1955 the Council delegate to the Environmental Services Manager all of its powers under the Impounding Act 1955 other than the powers to set poundage fees under section 14(1) of that Act.

3. HERITAGE TRUST FORUM RR 3845

Officer responsible	Author
John Dryden Environmental Policy & Planning Manager	Warren Brixton Committee Secretary
Corporate Plan Output: Heritage Development Projects

A forum to consider the formation of a Heritage Trust was held on 22 August 1996, attended by representative of groups with a specific interest in heritage issues.

DISCUSSION

Views were sought in respect of:

1. Limitations of present heritage initiatives.

2. Potential role of the Canterbury Heritage Trust.

3. Funding professional support, administration and legal status.

4. Relationship with present Trusts and the City Council.

HERITAGE BUILDING LIMITATIONS

• There needed to be changes to the present legislation on the wide scene to protect identified buildings.
• There were currently four categories of buildings identified in the City Plan and it was the responsibility of groups or individuals to seek a higher grading in the City Plan.
• The Council itself had to be leaders in the heritage field and obtain new ideas for the City Plan, as well as helping to steer people away from destroying buildings worthy of protection.
• Christchurch was losing its heritage not only through the disappearance of large buildings, but also smaller ones, which were being overlooked, such as a street of workers cottages.
• The regulations administered by the Council were too tough eg where the city buildings were being preserved through being put to other uses (ie cafes and wine bars) were being penalised with the building code requirements.

SOLUTIONS/CHANGE

In the discussion that arose out of this matter was:

• The formation of a heritage trust was a positive move provided it had community involvement and more teeth.
• Bulk funding for a heritage trust organisation should be provided from the Christchurch City Council and such an organisation should be able to attract grants, donations and bequests.
• Some Council funding should be expressly available for conservation measures, perhaps in the strengthening of buildings to earthquake standard.
• More publicity was needed to make existing building owners and developers aware of heritage strategies.
• Interpretation of the regulations appeared to differ, especially amongst building owners who were or were not heritage minded.
• Buildings worth saving needed to be identified as soon as possible, so as the community could be aware of these.
• The recycling of buildings worth retaining was a measure which could be carried out as a means of preservation eg Coyotes, Azure.

POTENTIAL ROLE OF A CANTERBURY HERITAGE TRUST

• It was suggested that such a trust should be an umbrella type organisation which would have a co-ordinating role with other heritage organisations, the Council etc.
• A trust of this nature was seen as a more appropriate organisation to attract funds from all sources including the Christchurch City Council itself.
• Bequests for money specifically for heritage buildings could be encouraged.
• A heritage management plan would be one function of the Trust.
• The trust could attract a concentration of expertise of all groups to assist it in its work .
• The trust should be a proactive not reactive organisation.

CHRISTCHURCH CITY COUNCIL CONTRIBUTION

• The Council was in a position to act as an advocate in seeking changes to the law where needed.
• The year 2000 celebrations could be marked with the conservation or saving of a particular heritage building.
• The Council should have more teeth in requiring building owners or developers to adhere to heritage requirements.

Recommendation: 1. That the Christchurch City Council support the establishment of a heritage trust to which the Council and others would contribute for heritage conservation in the Christchurch metropolitan area.

2. That a working group of representatives groups investigate and recommend on the potential role and constitution of a Canterbury Heritage Trust.

3. That the Christchurch City Council jointly with other territorial authorities and the New Zealand Historic Places Trust, the Civic Trust and other similar organisations, develop a community heritage plan.

4. That the Christchurch City Council agree to appointing a representative of the Council to the Trust.

5. That Councillor Anna Crighton be appointed as the Council's representative to the Trust and she report Trust activities to the Environmental Committee.

4. LIQUOR REVIEW - A DISCUSSION PAPER RR 3830

Officer responsible	Author
Team Leader Environmental Effects	Klaus Prusas
Corporate Plan Output: Sale of Liquor

The purpose of this report is to approve submissions to the Ministry of Justice Liquor Review 1996 Advisory Committee on possible changes to the Sale of Liquor Act 1989.

The Minister of Justice recently announced that there is to be a review of the Sale of Liquor Act 1989. The Sale of Liquor Act has been enforced since 1 April 1990. The Ministry of Justice has prepared a discussion paper as part of that review. (Tabled). An advisory committee has been set up to assist with the review, and consists of three members chaired by Sir John Robertson. The other two members of the committee are Mr Alan Dormer and Miss Althea Verco. The committee's principal function will be to review the submissions and report in full with recommendations to the Minister.

It has been stated that the review is not intended to redesign the Act from its first principles, but will focus on improving the operation of the Act, and whether it is meeting its objectives and principles in a reasonable and effective way. It is a paper designed to generate debate on possible options for legislative change, and would enable individuals and groups to comment on the issues raised. The Secretary for Justice has stated that the options set out in the discussion paper did not purport to be the only choices for reform, as there may well be other options which are worthy of consideration.

The Advisory Committee will not be inviting those making written submissions to appear before it, but reserves the right to seek oral submissions at its discretion. The closing date for submissions is 31 October 1996, with a report to the Minister of Justice by 31 December 1996.

The discussion paper has listed terms of reference for discussion. The issues identified in the terms of reference have been the subject of much discussion since commencement of the Sale of Liquor in 1990. The Christchurch City Council's District Licensing Agency in its Annual Reports to the Liquor Licensing Authority (Wellington) since 1990 has also suggested that change, clarification and/or review was needed. The terms of reference are as follows:

1. The minimum drinking age

2. Supermarket and off licence sales on Sunday

3. Sunday trading in hotels and taverns

4. Issues relating to the different types of licences that can be granted

5. Drinking/trading hours

6. Definition of intoxication

7. Host responsibility

8. Manager's certificates and training

9. Role of the Liquor Licensing Authority and District Licensing Agencies

10. The position of licensing trusts

11. Technical issues

12. Consideration of the Potter Report on liquor advertising

13. Health warnings

The discussion paper has been circulated to all Community Boards for discussion and reporting back to the Christchurch City Council's District Licensing Agency for consideration and preparation of submissions to the Liquor Review Advisory Committee. Reports and comments received from the Community Boards were considered by the Agency.

Of the terms of reference, perhaps the minimum drinking age, supermarket and off licence sales on Sunday, Sunday trading in hotels and taverns, drinking/trading hours, host responsibility and the role of the liquor licensing authority and district licensing agencies are the more high profile issues. Since the commencement of the 1989 Act, it became apparent very quickly that until clarification was made, some enforcement difficulty was going to result. This is particularly evident in the Sunday trading/dining/drinking area.

With regard to minimum drinking age, considerable discussion took place, as was the case with some Boards. The Agency's recommended preferred option is Option 3B (see submission attached) with 18 years being the age limit.

Further, the present Act is about control of liquor abuse by legislative means , and it was uncertain where the role of host responsibility within the terms of the legislation fitted in. It seemed to have an implied association. This agency agreed that it should be clearly stated and identified as an important and integral part of sale of liquor administration.

The role of a District Licensing Agency (territorial authority) has also caused discussion throughout the country with the suggestion by some that a greater involvement by District Licensing Agencies should take place in the issuing of licences and manager certificates, and more generally in the administration of the Act at a local level. Should this occur, then additional resources (including elected members time at hearings) would be needed.

The agency's submission is attached in a schedule to this report.

(Note: Councillor Pat Harrow took no part in the discussion on this item and did not vote on the recommendation.)

Recommendation: That the submission as prepared be forwarded to the Liquor Review 1996 - Advisory Committee, Ministry of Justice.

5. LONG TERM URBAN GROWTH RR 3692

Officer responsible	Author
Environmental Policy and Planning Manager	Ivan Thomson Senior Planner (Planning Policy)
Corporate Plan Output: Plans and Policy Statements

The purpose of this report is to propose a process for establishing a public forum on urban development issues. The item arises from a Council resolution on 24 July 1996 "that a public forum on urban growth be held as early as possible".

At its 10 July meeting, the Environmental Committee received a report suggesting a collaborative approach with adjoining Councils and the Canterbury Regional Council to accommodate Christchurch's long term urban growth. The report concluded that growth pressures and community expectations justify setting up a process involving elected members, community involvement and technical advice, through which an agreed strategy can be developed (refer to item .. for a progress report on this process). The Council resolution of 24 July emanated from that report.

In establishing the public forum, two main issues arise:

1. How the process should work, ie is the proposed forum to be a `one off', or a continuing process.

2. When should the forum/process be held and who is responsible. The issue on the latter point is whether it should be managed by the proposed joint council committee.

Regarding the first matter, there is little to be gained from a one-off large gathering. If the community is to have an effective input into developing an urban growth strategy, then an on-going process is required that seeks the views of people in an environment conducive to encouraging participation and information exchange.

The Council can manage this process through its Community Boards, who already have well developed links with residents associations and other community groups. It also has other mechanisms to reach special interest groups (eg Business Associations) and could also involve children as part of the Children's Strategy.

With regard to the second matter, timing and responsibility, the issue is less straight forward. The Joint Council Committee has a terms of reference that includes community consultation as part of a process to prepare a public discussion document. Obviously there is no point in the city Council running a separate forum if the Joint Committee intends carrying out a similar exercise.

Even if the Joint committee on Urban Growth managed the consultation process, the `forum' could still involve Community Boards, Children's Advocate, etc. The main difference would be the need to extend the process into neighbouring districts.

The advantages of the Joint Committee co-ordinating the process is two-fold:

• There is more likelihood that the process of developing the long term strategy will be kept apart from the City Plan submission process.
• Residents and businesses in neighbouring districts will also be involved.

At the time of preparing this report the Joint Council Committee had not had its first meeting at which it is expected that programming and terms of reference will be adopted. The Committee Chairman, who is one of the five City Councillors on the Joint Committee, will be in a position to report on the outcome of the Joint Committee meeting.

CONCLUSION

The proposed `forum' should be in the form of an on-going consultation process, managed through Community Boards. The Council needs to keep this process separate from the submissions on the City Plan, and ensure that there is community awareness of the purpose of the consultation programme to prepare a long term urban strategy beyond what is proposed in the City Plan.

To this end it would be advantageous for the Council to use the Joint Committee on Urban Growth as the conduit for organising and funding the forum. However, this will only be an option if the Joint committee adopts the terms of reference and work programme that it has been recommended at its inaugural meeting.

Recommendation: 1. That the concept of a public forum as an on-going community participating process be supported.

2. That the Council consider the option of the forum being driven by the Joint Committee on Urban Growth.

3. That the joint Committee be asked to plan the consultation process.

6. LAND AND VEGETATION MANAGEMENT REGIONAL PLAN RR 3735

Officer responsible	Author
Environmental Policy and Planning Manager	Ivan Thomson, Senior Planner (Planning Policy)
Corporate Plan Output: Plans and Policy Statements

The purpose of this report is to provide information on the notified decisions on the Proposed Land and Vegetation Management Regional Plan (Part II - Port Hills).

The Land and Vegetation Management Regional Plan was notified in October 1993 and comprised four parts. Part II contained objectives, policies and rules for earthworks and vegetation clearance on the Port Hills and in essence replaced the provisions under Section 34 of the Soils Conservation and River Control Act 1959 which expired in September 1993.

The Council's submission on the Regional Plan was mainly concerned with ensuring that there are efficient and streamlined processes for administering rules governing earthworks and vegetation clearance. The Regional Plan is seen as an interim measure until the City Plan becomes operative. There is an understanding with the Regional Council that, once the City Plan becomes operative, the need for regional rules will disappear.

The Council lodged several cross-submissions opposing submissions that sought more liberal standards than those in the City and Regional Plans and those further submissions have been accepted.

There is no need for the Council to take any further action at this stage, unless there are references against the Plan from those seeking more liberal standards.

Recommendation: 1. That the information be received.

2. That the CCC support the Canterbury Regional Council at the Environment Court should it be in the city's interest.

7. GLASS RECYCLING/REUSE UPDATE REPORT RR 3811

Officer responsible Mike Stockwell	Author
Waste Manager	Mike Stockwell, Waste Manager
Corporate Plan Output: Glass Reuse / Recycling

The purpose of this report is to update Councillors about the Glass Reuse/Recycling study undertaken for the Council by Sustainable Cities Trust Limited and the proposed way forward.

BACKGROUND

Councillors will recall that Sustainable Cities Trust have been undertaking a two stage study into the glass reuse/recycling industry for Christchurch. The Stage 1 report was presented to a joint seminar of City Services/Environmental Committees in May 1996 followed by a report to June Committees - refer attachment for copy of report.

STAGE 2 REPORT

Sustainable Cities have now finished their Stage 2 report which had the following objective - to advance the identification, of and procedures for setting up a waste glass reuse/recycling industry in Christchurch.

In summary the recommendations of the report (copy tabled) with respect to glass and other recyclables are:

(a) That a Recovered Materials Foundation (RMF) Trust be set up and developed to oversee the establishment of a Glass Processing System (GPS) for Christchurch and to become the vehicle for promoting the development of a local recycling industry dealing with a wide range of recovered materials in Canterbury.

(b) The GPS run at least initially under the auspices of the RMF would establish a bottle washing/reuse plant which would source bottles from local industry and Council kerbside recycling collection contracts later in 1997. It would also establish a glass crusher to process glass cullet for reuse in existing and new industries which would be fostered by the RMF - refer attachments for GPS & RMF models.

(c) The new kerbside collection/recycling contracts should be set up to handle bottles (and other recycled materials) which would be streamed to the RMF when it is in a position to handle these materials.

DISCUSSION

(a) As noted in another report to October City Services Committee proposals for the new 1997 Kerbside Collection/Recycling Contracts will be presented to a City Services Seminar later in October. The tender documents for this contract will provide the ability for recycled materials including bottles and cullet glass to be streamed to the GPS when it is set up. Prior to that the existing Christchurch infrastructure will take these materials.

(b) The Stage 2 report proposes that the RMF be set up as a charitable trust funded initially by the interim Board stakeholders being the CDC (Chris Pickrill), CECC (Peter Townsend), CMA (Mike Hanna) and CCC. Later, funding is envisaged by profits from sale of recyclables and industry on a more sustainable basis. It is proposed that funding for the GPS would be similar.

(c) In the meantime prior to the establishment of the RMF Trust, GPS and new collection/recycling contracts the Waste Management Unit is paying a grant of $26.70 per tonne (to a maximum of around $5,000 per month) to NZ Express to continue shipping glass cullet up to Auckland to NZI Glass Manufacturers. This should be regarded strictly as an interim measure undertaken to prevent the collapse of the cullet collection systems in Christchurch. The source of funding is Waste Management Unit Recycling Fund.

THE WAY FORWARD

The way forward is proposed as follows:

• Set up and formalise the RMF Trust. Chris Pickrill of the CDC and Mark Prain of SCT is leading this task and reporting progress to the interim RMF group
• RMF Trust to establish a GPS (bottle reuse plant and cullet crusher etc)
• RMF Trust to search out and develop markets for bottle reuse and glass cullet recycling enterprises in partnership with local industry.

Recommendation: 1. That the Council approve in principle the establishment of an RMF Trust & GPS for the purpose outlined in this report.

2. That further details including costs and source of funds for the RMF & GPS development and operating costs be reported back to the Council in due course by the Waste Manager.

8. SOLID WASTE FUTURE LANDFILL INVESTIGATION RR 3810

Officer responsible	Author
Mike Stockwell, Waste Manager	Eric Park, Solid Waste Engineer
Corporate Plan Output: Solid Waste.

INTRODUCTION AND PURPOSE

The purpose of this report is to:

summarise the results of recent investigations into a joint regional landfill; and

gain approval for the Christchurch City Council to take an appropriate part in the establishment of the Canterbury Waste Joint-Standing Committee (currently the Canterbury Regional Waste Working Party ) to facilitate further investigations.

This report does not discuss hazardous waste issues which are the subject of a report being prepared by Royds Consulting for the Canterbury Regional Waste Working Party.

BACKGROUND

The following issues were reported at recent meetings of the City Services Committee and form a background to this report:

Preliminary discussions on the potential for a joint regional approach to waste management and disposal, 12 March 1996.

Options to provide the Canterbury Regional Waste Working Party with a suitable legal structure, such as a constitution, 13 August 1996.

Potential legal structures, such as a joint venture with a private company, to establish and operate any regional landfill facility. A draft discussion document on this issue was prepared by Coopers & Lybrand and tabled on 13 August 1996.

TASKS IN PROGRESS

The following tasks are currently being undertaken by the Canterbury Regional Waste Working Party:

Development of an initial public consultation strategy to assess community response to a joint regional approach, options for a joint venture or other entity and site selection criteria, refer attached draft.

Assessment of options for a legal structure, such as a joint venture with a private company, to establish and operate a regional landfill facility. This issue is the subject of a report being prepared by Coopers & Lybrand for the Canterbury Regional Waste Working Party.

Development of a request for proposals from private companies to establish and operate a regional landfill on a joint venture or other basis.

Development of evaluation criteria for joint venture or other proposals from private companies.

PROPOSED ACTIONS

Draft Constitution

In order to enter into legally defensible contracts with consultants, the Legal Services Manager recommended that the Canterbury Regional Waste Working Party should be replaced by a standing committee. A draft constitution was prepared by the Legal Services Manager and amended by the Canterbury Regional Waste Working Party on 9 September 1996 for adoption by the Council, refer attachment. All other district councils referred to in the constitution have also been asked to adopt the constitution.

The constitution was drafted on the basis that it would endure only for preliminary investigations into a regional landfill, likely to be completed by June 1997. On completion of the preliminary investigations it is anticipated that the Canterbury Waste Joint-Standing Committee would be replaced by another legal entity, such as another joint-standing committee, a joint venture or a Local Authority Trading Enterprise (LATE), to establish and operate any regional landfill, if required.

Timetable

Three meetings of the Canterbury Waste Joint-Standing Committee are proposed to undertake the following tasks:

11 November 1996

Formally constitute the Canterbury Waste Joint-Standing Committee to conduct preliminary investigations.

Select the preferred legal structure, such as a joint venture or some other entity, to establish and operate any regional landfill facility.

Commence public consultation on the principles of a regional landfill.

March 1997

Assess the results of public consultation.

Request proposals from private companies for a joint venture or other entity to establish and operate a regional landfill, if appropriate.

June 1997

Evaluate proposals for a joint venture or other entity to establish and operate a landfill, if any.

Either:

- select the preferred option and commence planning work to establish a regional landfill; OR

- agree that each Council should work independently to establish its own landfill.

Replace the Canterbury Waste Joint-Standing Committee with a more suitable body, if necessary.

2001 -2002

Open a new landfill facility, expected to require approximately five years to establish.

FINANCIAL DETAILS

Cost sharing

The following cost sharing method for work by the Canterbury Waste Joint-Standing Committee, based on four population bands, was considered both equitable and easy to calculate:

Council	Share of Regional Costs For Solid Waste Work
Christchurch City Council	66.5%
Canterbury Regional Council	0%
Other Councils	33.5%
	100%

Budget

The following draft budget is proposed for preliminary investigations and reports by the Canterbury Waste Joint-Standing Committee up to June 1997, as outlined in the above timetable:

Item		CCC share	Other Councils share	Total cost
		(@ 66.5%)	(@ 33.5%)
1.	Report on legal structures to establish and operate any regional landfill facility.	$10,000	$5,000	$15,000
2.	Development of a Request for Proposals and evaluation criteria for a joint venture or other entity.	$3,300	$1,700	$5,000
3.	Public consultation process.	$10,000	$5,000	$15,000
4.	Evaluation of proposals to establish and operate a landfill with a joint venture or other entity.	$10,000	$5,000	$15,000
	Total	$33,300	$16,700	$50,000

Source of finance

It is proposed that the Christchurch City Council would finance all above costs until the end of each financial year when it would invoice individual Councils in accordance with the above proportions. An expenditure limit of $66,000 is proposed for the Christchurch City Council's contribution and $6,600 for any other Council's contribution to the Canterbury Waste Joint Standing Committee. These limits provide a contingency increase over the above budget. The source of finance for the Christchurch City Council's contribution is provided for in the 1996/1997 Waste Management Unit budget under New Landfill Investigation and Development.

Recommendation: 1. That this information be received.

2. That the Council take the following actions in order to advance regional landfill investigations according to the timetable outlined above:

(a) Pass any resolutions necessary to form the Canterbury Waste Joint-Standing Committee (currently the Canterbury Regional Waste Working Party) in accordance with the attached constitution.

(b) Modify and/or confirm the terms of reference for the Canterbury Waste Joint-Standing Committee, refer attached draft constitution.

(c) Appoint four members from the Christchurch City Council to sit on the Canterbury Waste Joint-Standing Committee.

(d) Approve the cost sharing method outlined above.

9. STRATEGIES FOR THE EFFICIENT USE OF WATER RR 3831

Officer responsible	Author
Water Services Manager	Water Services Manager
Corporate Plan Output: New Assets: Universal Water Metering

The purpose of this report is to enable decisions to be made on water conservation strategy, and in particular on the issue of volume based charging.

1. INTRODUCTION

Following on from two seminars on the question of water conservation and volume based charging (as one of the means of achieving efficient use of water) this report first provides a brief historical review of charging for water in Christchurch. It then examines current and projected demands and taking into account present knowledge of the capacity of the underground resource recommends actions that the Council should take to ensure that the resource is managed sustainably and that its role as the sole provider of the City's reticulated water is prolonged, hopefully indefinitely.

While there is a temptation to widen the discussion to water conservation strategy in general this report deliberately focuses on the issue of volume based charging. The Council is already actively and successfully implementing water conservation strategies in line with its strategic vision so the direction of water policy is not being debated. The issue currently before the Council is that having decided to complete city-wide installation of water meters, what are the next steps the Council should take to realise the benefits of that decision.

2. RECENT WATER CHARGING HISTORY IN CHRISTCHURCH

2.1 Pre-Amalgamation

Prior to amalgamation, the old Christchurch City Council area was fully metered and a capital value based water charging regime was in place for both domestic and commercial consumers. Approximately 20% of customers received accounts for "excess" use.

In the other four local authorities, commercial properties were metered and paid for their water through a volume based charge. Domestic properties were not metered, payment being levied either on a capital value basis or as a uniform charge. (Paparua).

2.2 Post Amalgamation

After amalgamation in 1989 the new Council achieved uniformity by reverting to capital value based water rates for all consumers with excess charges applying only to commercial property. This system is still in place, noting that there are one or two special arrangements, for example for rural restricted supplies.

2.3 Meter Installation

In 1991 the Council decided to proceed with the installation of water meters to achieve full city coverage for both domestic and commercial users. While there was some debate at the time about what kind of charging regime might be put in place it was decided to delay finalising this until the installation programme was nearing completion. Accordingly, the Water Services Manager was requested in 1994 to prepare water charging options for Council consideration and the first reports were put before Councillors in late 1994.

It is fair to say that the debates in 1995 were not over whether or not a volume based charge would be set in place but rather the form it should take. In any case with elections imminent and the issue not resolved the Council decided to set the question aside for the new Council to take up.

2.4 Context of this Report

The Water Services Unit is still operating on its initial brief which was to provide the information and options that would allow Councillors to come to a decision on the form of a volume based charging system. However, the picture today is not the same as it was in 1990 and a decision on charging needs to account for the changes - such matters as the drop in total city consumption, 1992-1995, the results beginning to flow from Regional Council acquifer modelling and the strong growth in agricultural use of the acquifer in recent years.

These changes are acknowledged in the report and it is argued that the time that is now apparently available to us should be used to implement a volume based charge in a staged manner that minimises impacts on residents.

3. THE ACQUIFER RESOURCE AND CURRENT DEMANDS

3.1 Capacity

During the first seminar the nature of the acquifer resource was described in some detail. For this report only a summary is possible.

Today it is accepted that the major portion of water contained in the acquifer system underlying Christchurch originates from the Waimakariri River, entering the groundwater system over a 19 (approx) kilometre length of river situated eastwards from Halkett. It is estimated that between 5 and 8 cubic metres per second enter over this reach. If all of this water was available an acquifer capacity of 200 million cubic metres per year is implied. However, Regional Council estimates of the potential annual yield of acquifer system have been set at around 143 million cubic metres per year, and this compares with the

current annual consumption for all users of 100 million cubic metres (see Figure 1 attached). It is however far too simplistic to state that everything will be fine provided usage is not permitted to grow beyond 143 million cubic metres per year. The ability of the acquifer to provide sustainable yield depends critically on the climate that prevailed during the preceding several years. The acquifers are already being exploited at a rate that will cause distress to the system if a dry period returns, such as that experienced between 1965 and 1975.

The Regional Council's 1986 report The Christchurch Artesion Acquifers lists the undesirable effects of over extraction as:

(i) interference between production bores resulting in a decline in bore water levels and therefore a reduction in the quantity of water that can be abstracted;

(ii) damage to the physical structure of the aquifer (eg compaction of the gravels) causing a permanent reduction in the water-bearing capability of the aquifer, and also land subsidence;

(iii) excessive drawdowns adjacent to another water resource that is hydraulically connected to the aquifers, resulting in an inflow of the other water (eg Waimakariri River water, or poorer quality groundwater from the inland plains);

(iv) a landwards shift of the seawater/freshwater interface and intrusion of salt water into production bores;

(v) a reduction in the piezometric level in an aquifer and reversal of the present upwards hydraulic gradient between adjacent semi-confined aquifers resulting in downwards leakage from the surface; and

(vi) a reduction in the quality of springflow (ie smaller losses from the artesian system) resulting in lower flows in spring-fed streams (eg the Avon River).

Recent reporting of computer based acquifer modelling carried out by the Regional Council analysed some of the effects that will be experienced if a repeat of that dry period occurred. The analysis considered a thirty one year period extending from the present first assuming extraction stayed at current levels then the case where growth on extraction continued its historical trend. For each of these, climatic conditions over the period were assumed to be similar to the previous 31 years but with the ten year dry period occurring in the first, middle and last third of the period. The effects of these six scenarios were assessed for three indicators:

(i) Avon River water flows.

(ii) Unconfined acquifer level at Miners Road, Yaldhurst.

(iii) Confined acquifer level at the Museum monitoring site (first confined acquifer)

This work has been reported to the Canterbury Regional Council/Christchurch City Council Councillor Liaison Committee and copies of the paper are available. For the purpose of this report the conclusions are reproduced in full:

"Though the above results have been obtained using crudely defined scenarios some useful interim conclusions can be made:

• the variability due to climate is likely to be more significant than that due to growth in demand (a rerun of conditions in the 1964-1974 period would create low groundwater levels and low stream flows with or without significant groundwater development).
• the study does not invalidate the conclusions of the 1986 report - it adds a dynamic component that was not included in that study and is in broad agreement with it.
• continuing growth will lead to conditions where unacceptability large pressure drops are likely to occur within some parts of the confined aquifer system.
• recharge augmentation has little direct benefit, in terms of maintaining groundwater pressures, within the confined aquifer system (as the spring-fed streams appear to act as a pressure relief valve). However there is a potential benefit in terms of increasing flows in the spring-fed streams and increasing unconfined groundwater levels.
• demand control at present levels (by conservation measures, abstraction restrictions, etc) appears likely to be sustainable in the long term with only occasional instances of stream flows and groundwater levels falling below historic lows".

The modelling has confirmed that abstraction is already at a level that will cause undesirable effects if a prolonged dry period occurs. One view of this result would require that further abstraction consents should not be granted. What is much more likely is that the future management scenario developed by the Regional Council for the acquifer system will involve a complex interaction between climatic data, demand and acquifer water level or pressure indications.

New consents to extract water may well be granted up to quite high total levels but the ability to utilise the consent will depend on the acquifer condition. The risk of undesirable effects occurring as a result of over-extraction is not uniform across the region served by the acquifers and restrictions may well vary from area to area.

For the city, this means that as use of the acquifer system grows, the ability to manage demand in response to a restrictive imposed management regime will be come increasingly important.

3.2 Christchurch City Consumption

Figure 1 indicates the growth of acquifer supplied water consumption for the period 1965 to 1995, showing the city's current reticulated demand running at about 50% of the total annual consumption, or 51 million cubic metres per annum. Significantly total city consumption has dropped between 1990 and 1995. Part of this can be attributed to climatic factors but 12% appears to represent a real reduction, attributed mainly to increased water conservation publicity and also to the messages associated with meter installation.

This reduction in total city consumption has removed some of the urgency felt in 1990, when growth projections were suggesting that city usage would quite soon reach the limit then considered to be the City's share of the acquifer yield. (72 million cubic metres per year). Meter installation and volume based charging was seen as an important part of an efficient use strategy, that would curb the growth then being experienced. However, as explained above the City is not likely to be given a known "share" of the acquifer yield but will rather be required to participate in consumption restrictions, depending on the interaction of climate, demand and acquifer condition. In this scenario it is believed that volume based charging will be a necessary part of demand management - the Council has been given more time to put it in place.

4. REVIEW OF THE NEED FOR EFFICIENT USE STRATEGIES IN CHRISTCHURCH

4.1 The Regulatory Environment

By looking ahead to the management regime that will be put in place by the Regional Council, the need for the City Council to implement efficient use strategies is highlighted. In that environment applicants will be in competition for the remaining resource and will need to be able to demonstrate that they can use the water efficiently. For individual consent holders (for example an irrigator) who cannot be required by the Regional Council to pay for the water consumed this will be achieved through the use of measurement and monitoring of consumption, matching supply and demand to avoid waste, auditing processes and limitations in the consent granted.

For the City Council efficient use can be assisted by public education, water saving devices and techniques, water re-use, volume based pricing and other demand management methods. In this way the City can position itself to advantage as an applicant by showing that it has in place the tools to ensure efficient use of its allocation.

4.2 The City as an Example

Extending the period during which all consumers will be able to draw their water requirements from the West Melton-Christchurch aquifer system will depend on efficient use by all users. In time a users group can be anticipated that will meet with the Regional Council and act co-operatively to maximise the benefits of the resource for all users. In this forum the City can play a leading role as a major consumer but only if it can demonstrate responsible use by having the ability to measure, monitor and manage City consumption. It will then be in a position to seek efficient use by other users.

4.3 Stewardship (Kaitiaki Tanga)

While not the manager of the resource the Council has a responsibility to be actively engaged in its sustainable management. This goal of sustainability is the single purpose of the Resource Management Act and is articulated in Council's Strategic Objectives and City Plan. It is the fundamental reason for the adoption of efficient use strategies.

4.4 Public Perceptions

Christchurch people consider their aquifer supplied water to be a precious asset. In the future we will experience the true strength of this belief when residents are asked to prolong (perhaps indefinitely) the ability of the resource to provide for the City's need by adopting water re-use and water saving techniques. In the meantime the City needs to prepare itself for those times by ensuring water is properly priced and that water charges bear a relationship to consumption. Without that relationship individuals have no way to gauge the wisdom of investing in a water saving measure. As well they become cynical about good water behaviour when they see their neighbour suffering no monetary consequences from wasteful use.

4.5 River Flows

Christchurch's three rivers are all spring fed and maintenance of their flow is critical to the aesthetic value they lend to the City and to their many instream values, allowing them to host diverse flora and fauna and providing recreational opportunities for river enthusiasts. These rivers are vulnerable to groundwater depletion and as stated above effects are already being observed. Securing these flows in perpetuity will be one of the goals of the

Regional Council's ground water management plans. The City can play its part in the achievement of that goal by active involvement in the plan preparation and by adopting the efficient-use measures and controls that will assist sustainable management of the resource.

4.6 Other Effects of Over Extraction of Particular Significance to the City

Councillors are aware of the danger that over pumping poses to acquifers that are open at their seaward boundary, where the fresh water/saltwater interface can move from off-shore towards the coast and eventually allow saltwater contamination of our coastal well fields.

As discussed above Regional Council modelling is also indicating that over pumping of lower acquifers can cause local reversal of the current upward pressure gradients meaning that low quality surface or upper acquifer water could flow downward into the high quality groundwater below. These localised reversals are going to occur much sooner than the coastal contamination caused by movement of the saltwater/freshwater interface. They act to remove the security provided by the fact that pressure in lower acquifers are higher than those above, so that contaminants entering from the surface tend to travel laterally in the uppermost acquifer rather than penetrate to lower levels.

4.7 Costs

Water in Christchurch is currently cheap compared with other centres reflecting the absence of expensive headworks, long delivery pipelines and water treatment. There is no reason why the economic advantage cannot be sustained well into the future and perhaps indefinitely. Figure 2 (see attached) shows the cost comparison with other main centres but it also indicates that Christchurch residents when viewed nationally are high users of water. There is considerable scope for reducing this demand through the use of efficient use strategies, thereby allowing for city growth whilst retaining the economic advantage that the resource provides.

5. CONSERVATION STRATEGY OPTIONS

This year the Water Services Unit commissioned work on options available for encouraging efficient use of water. The study focused on fourteen strategies selected from a group of thirty eight, the selection using criteria based on cost, equity, water conservation rating and community acceptance. The final list of conservation measures chosen for study is shown in Table 1 (see attached).

Cost/benefit analysis showed that from a purely financial viewpoint only one of the fourteen measures would be justified, ie had a cost/benefit ratio less than 1.0. There are two reasons for this. First the water in Christchurch is cheap at 30 to 35 cents per cubic metre and furthermore when a cubic metre of water is not used only around 6 cents is saved, the balance making up system fixed costs. Second, demand in the city has levelled off between 1991-1995, so that the need to install expensive treatment and conveyance facilities for a Waimakariri supply has moved out beyond the 25 year study period. This effectively removes the benefit available when a conservation measure acts to delay major capital works.

The analysis contained in Table 2 (see attached) shows that those options with a cost/benefit ratio close to one coupled with a significant water saving percentage were:

	Measure	Description	Cost/Benefit Ratio	% Water Saving 1996-2021
1.	Residential Building Code	Compulsory fitting of water efficient devices in new building.	0.35	1.30%
2.	Public Education	Summertime messages in medial. School education. Displays, etc.	1.20	4.73%
3.	Fixture Retrofit Mandate	Mandatory fitting of selected water efficient devices in commercial/public buildings.	1.28	2.06%
4.	Home Retrofit	Offer free fixture retrofit (toilet and shower) and repair.	1.39	4.15%
5.	System Leak Detection and Repair	Active leak detection programme in city mains and repair	1.61	6.83%

The City is already active in 2 and 5, and will commence investigation into 1, 3 and 4.

A second aspect of the study was to examine the future demand in the system given average population growth, assuming a small selection of the more attractive measures are implemented and with four water charging strategies:

(a) Abandonment of Residential Metering.

(b) Meter Reading but with Capital Value based rating retained.

(c) Meter reading with a volume based charge that includes a significant capital value based allowance.

(d) Volume based charge including a minimum charge.

The future production of city water over 25 years was then estimated as shown in Figure 3 (see attached). These graphs represent the best estimate of forward demand. It can be seen that with a volume based charge it will take 23 years for consumption levels to return to their present day levels.

6. VOLUME BASED CHARGING AS A WATER CONSERVATION MEASURE

6.1 Preliminary

While this report has provided reasons for active involvement by Council in ensuring efficient use of water it has yet to focus on volume based charging as a favoured means of effecting this management. Reasons to support such a strategy are set out below but as a preface it should be noted that it is only one of a group of measures that will be used to promote water conservation. Volume based charging does, however play a special role by establishing a link between consumption and cost. It is this linkage that will eventually allow individuals to make decisions about other water saving devices or installations.

6.2 Reasons Favouring Volume based Charges

Volume based charging is favoured because it:

Is known to have a significant downward effect on consumption. We anticipate an immediate 20% from residential customers, or 12% overall. However there is a long term potential for greater savings.

Rewards efficient use and avoids the public cynicism that results when wasteful behaviour suffers no monetary penalty.

Provides a powerful tool for management of consumption, but still allows individual involvement in monitoring and controlling water use.

Provides an excellent example to other users of the resource and positions the City well when, as an applicant, it seeks new water extraction consents.

Establishes and levies the real price of water which will allow informed decision making for those considering re-use or conservation measures.

Assists leak detection on private property and provides the incentive for residents to have those leaks repaired.

Another aspect that has not received much attention is the trend towards home management systems where the inclusion of water consumption and pricing information on a computer based, in-residence home management console is not far away.

The use of such a system for power management will be seen in New Zealand within a few years, but there is real scope for extending the management capability. The Council should assume that within a time frame of around ten years the water meter will be connected to an in-residence data display screen. The opportunities for demand management then expand considerably. Tariffs can be set to encourage off peak use, consumers can gauge daily the cost of consumption and make choices about their water use. It is not difficult to envisage a situation where both meter reading and billing becomes unnecessary as readings are transferred to the personal computer and payment takes place by way of arrangements similar to EFTPOS.

The point here is that in introducing volume based charging the City is only taking a first, but essential, step in demand management. It is believed that it will take at least five years to arrive at a universally effective volume based charging system. By that time the new technologies supporting home management will certainly have been trialled and installation for selected purposes will have commenced.

7. ISSUES ASSOCIATED WITH VOLUME BASED CHARGING

During their consideration of charging alternatives last year Councillors sought resolution of a number of significant issues:

• There was concern that some residents would experience large increases in water charges compared with their current capital value based charge. This applied particularly to low valued properties - a group probably least able to meet the increased charge.
• Administrative difficulties were foreseen for the 28,000 cross lease/unit title properties most of which are currently served by a single meter. The requirement to furnish both units with a single water charge invoice seemed about as unattractive as the alternative need to encourage provision of a second meter.
• The need to ensure that commercial charges were framed in a way that would retain the very high users within the Council system. If costs were too high the private well option becomes attractive and we are yet to see whether or not the Regional Council will provide rules that would discourage such defection.
• Councillors were concerned about the transfer of costs from commercial to residential users that will occur with a volume based charge. There is currently a subsidy which the new charging system would remove.
• If all appropriate costs are to be recovered in the new system the total revenue will be somewhat higher than the amount currently collected (ie $10.55 million will rise to $12.65 million). The effects of this increase was a concern. It is important to note that this increase has very little to do with the introduction of meters. The cost of meter reading is already part of the water supply budget. This additional requirement arises from a more rigorous inclusion of capital works in the operating account - capital that was previously loan funded but which is in fact an operating expense.
• Changing from a capital value based rate to a volume based charge introduces a one off $4.4 million revenue reduction in the first year of implementation caused by only being able to charge for water after it has been consumed, based on yearly readings. Councillors were understandably nervous about this cash flow problem.

8. PROPOSAL

Because Council has time on its side the Water Services Unit recommends that a volume based water charging regime be introduced but that residential users be given a choice of whether or not they wish to move from a capital value based rate to volume based charges.

Details of the charges are set out below but concentrating first on the voluntary aspect and addressing the concerns listed in 6 above:

8.1 Large Individual Increases

Those facing large increases would choose in the initial years to remain on a capital value based rate. This would steadily increase as more people moved to volume based charges until it would be advantageous for them to change. The changes will be gradual and examples are given below

8.2 Cross Lease Properties

The initial fixed charge will be set reasonably high ($58.40 excluding GST) so that many cross lease properties will find it better to remain on capital value based rates. However it is strongly recommended that cross lease properties be permitted to move to volume based charges only if separate metering is installed. This will eliminate the situation where Council is attempting to invoice two or more dwellings with a single bill since with capital value based rating each receives a separate account. A dispensation would be offered to units where the second meter is impossible or very expensive to install but these would be exceptional cases. The Council's previous decision to fund the streetside costs of second meter installation would remain.

8.3 Commercial High Users

Commercial charges are proposed to be set in a manner that recovers all costs but employs a lowered cubic metre rate to ensure high users are not tempted to provide private wells. An option here is to leave commercial users on their current charge arrangements to avoid the confusion of trying to change too much during the transition years (their current charge arrangement is an allowance based on their capital value, which is their minimum payment, plus payment for any water consumed above the allowance level, calculated by dividing the allowance by the cubic metre rate of 28 cents).

8.4 Recovery of Total Costs

Once again the collection of the additional $1.9 million required to ensure all operational costs are recovered can occur gradually over, say five years.

8.5 Cash Flow Problems

The $4.4 million shortfall would be spread over the period of time taken for complete conversion to the volume based charge, expected to be five years. It is anticipated that once a predetermined threshold is reached (90%, say) the Council would resolve to remove the option and move entirely to volume based charges.

A voluntary system would thus answer Councillors' concerns by spreading the introduction of the new charging system over a period of probably about five years, time which has been made available by the reduction in total consumption achieved over the past four years.

Two further points should be included. The current capital value based system for charging for water means that those in high valued property are paying proportionally more for their water rate and (depending on their consumption) are probably paying more per cubic metre of water consumed. These consumers will change immediately to a volume based scheme. Some Councillors expressed strong concern about the benefit that would be experienced by these residents, seeing it as a transfer of costs from those in high valued properties to those in lower valued properties..

The second point is that while the voluntary proposal addresses the bulk of the Councillors' concerns, it will involve staff in a major administrative effort. Ways of making the decision easy for the public will be required and an example is discussed later in the report.

9. DETAILS OF PROPOSED CHARGES

9.1 Role of Environmental Committee

For the Environmental Committee to recommend on this subject it needs to be assured of the feasibility of any proposed strategy and to that end some detail of how a voluntary scheme would work is provided. To provide this a system of charges has had

to be defined and while officers believe it is very close to achieving the right balance between a fixed charge and a volume based element, it could be modified.

9.2 Retaining Capital Value Based Elements in a Charging System

Arguments have been put forward favouring retention of a capital value based element in the charging regime. This is the system used by the previous Christchurch City Council where the property water rate was established by capital value. Payment of the rate then purchased an annual amount of water calculated by dividing the rate paid by a set cost per cubic metre. The property paid for excess water usage only if it exceeded the calculated amount. A benefit of this system is that it recognises that the water system provides a fire fighting facility and that a property can be said to benefit from this facility in proportion to property value.

However in the context of promoting efficient use there are objections to this method

• For higher valued property there is little incentive to restrain consumption. In fact the contrary could apply. "We've paid for the water we might as well use it!"
• The direct connection between consumption and cost is lost.

9.3 Proposed Charge: Residential (optional)

Domestic consumers will have the choice of either staying on a capital value based rate or moving to a volume based charge. However it should be noted that in the first and subsequent years of operation, capital value based charges will move upwards to compensate for the fact that the first people to change to a volume based charge will be those in high value properties. The good news is that the increase will be a known amount, and the possibility of a household facing a major one off increase is removed.

The optional volume based charge would feature a minimum annual payment of $58.40 (excludes GST). This will purchase 167 cubic metres of water at 35 cents per cubic metre. Note that it is a minimum charge, so consumers who use less than 167 cubic metres will still pay the $58.40. Consumption above 167 cubic metres will be charged at 35 cents per cubic metre.

To calculate what the first year capital value based rate would be requires some assumptions to be made about who would take the other option. The following indicates a likely process:

Assumptions:

(i) $58.40 minimum charge, 35 cents per cubic metre.

(ii) Those who change to volume based charges will reduce their demand by 10%.

(iii) People will only change if there is a financial benefit, but just how much benefit will persuade a consumer to charge is uncertain. Examples are given in the table below for annual benefits of $5, $10, $20 and $30.

LEVEL OF ANNUAL HOUSEHOLD SAVING THAT MIGHT TRIGGER A CHANGE	% OF CONSUMERS WHO WOULD CHANGE	REQUIRED INCREASE CAPITAL VALUE BASED WATER CHARGE
$5	22%	25%
$10	16%	23%
$20	11%	21%
$30	7%	19%

The increase in capital value based rates would continue year by year as more converted to the alternative. A probable sequence of conversion is illustrated in the following table:

WATER RATE	USER CHARGES
INCREASE OVER PREVIOUS YEARS RATE	INCREASE OVER 96/97 WATER RATE	PROPORTION OF CUSTOMERS PARTICIPATING	AVERAGE COST PER CU. METRE FOR PARTICIPANTS	MINIMUM CHARGE	CHARGE PER CUBIC METRE	PROPORTION OF CUSTOMERS PARTICIPATING	DIFFERENCE cf 1996 total revenue
	0%	100%	$0.23				0%
25%	25%	78%	$0.20	$58.4	$0.35	22%	0%
25%	56%	56%	$0.21	$58.4	$0.35	44%	14%
25%	95%	33%	$0.20	$58.4	$0.35	67%	24%
25%	144%	20%	$0.20	$58.4	$0.35	80%	32%
25%	205%	12%	$0.21	$58.4	$0.35	88%	37%
				$58.4	$0.31	100%	36%

Assumptions

Customers will opt for user charges if advantage is at least $5.00 pa (on average)

Those that opt for user charges will make 10% saving in water use

Income gradually increased in move to full recovery of costs.

This table makes the very significant point (see Column 4) that those who remain on capital value based charges because it is not financially attractive to change are always paying considerably less for their water than those who are charged.

Figures 4 to 8 (attached) show how residential consumers would experience this optional system. Examples are given for the low, medium and high valued properties with high and low consumptions. The charts illustrate that even for the property hardest hit by volume based charges (high consumption, low value) the change each year would be gradual amounting to approximately $15 per annum over 4 years until conversion to the volume based charge would be wise.

For residents to make a decision about changing they will need to know their property's capital value and their annual water consumption. A chart like the one shown in Figure 9 (attached) would be widely circulated and publicised that requires a point to be plotted allowing a decision to be made on the wisdom of charging

9.4 Commercial

Commercial charges would be set to recover the same revenue as at present, but structured to ensure very high users are not tempted to seek alternative sources.

(i) Commercial consumers with a connection size less than 25 mm diameter would be identical to the residential volume based charge.

(ii) For larger sizes, the charges would be as follows:

CONNECTION DIAMETER	FIXED CHARGE ($ per year)	VARIABLE CHARGE ($ per cubic metre)
25	300	18
32	500	18
40	800	18
50	1,250	18
75 or 80	3,000	18
100 or larger	5,000	18

A separate annual fixed charge for fire mains would also be levied.

Note that commercial customers are currently paying the true cost of water consumed. Residential consumers are underpaying by approximately $1.9 million per annum. This would be addressed over a 4-5 year period by increasing the amount collected from the domestic sector and maintaining commercial at about its present level.

10. COST IMPLICATIONS OF THIS PROPOSAL

The Council's Water Services budget already incorporates the cost of reading the meters and some of the costs of billing so implementation of a volume based charge will not incur major new costs. One additional expense not yet budgeted is the capital cost of $380,000 per year that will be required for five years to assist installation of second meters on cross lease properties.

The Council has previously affirmed that it will, as a minimum strategy, continue to maintain and read the meters. This situation then becomes the base case.

Conservation strategy work discussed earlier in this report estimated the costs and benefits of implementing programmes in addition to this base case. Two cases are of interest in the context of the charging proposal recommended.

Case One

Capital value based charging with meter reading and follow up, plus three favoured conservation strategies of:

• Public education
• Altered residential building code requirements
• Altered industrial/commercial building code requirements.

Case Two

Volume based charging and including the measures in Case One above.

These two cases are compared in the following table by calculating the net present value of 25 years of operation.

Case	Net Present Value of Additional Cost	Net Present Value of Benefits	Difference (Present Worth)	Water Savings 1996-2021
1	2,330,000	2,223,000	- 107,000	6.3%
2	3,927,000	5,211,000	1,284,000	17.3%

Case one is close to breaking even meaning the cost of implementing the strategies is very close to the savings and a reduction in water consumption of 6.3% is anticipated.

Case two shows a net financial gain to Council over the 25 year period and forsees a reduction of 17.3% in water consumption. The net present value of $1,284,000 equates to an annual saving of $91,000. (It should be noted that $14,000 of this benefit accrues to the Waste Management Unit through reduced wastewater pumping costs).

11. TIMING

Because volume based charges can only be levied on water already consumed, a year devoted to meter reading has to elapse before charges can be levied. Thus if Council decided to introduce the new charges through the next annual plan process, reading would commence from 1 July 1997 and first accounts would go out from 1 July 1998 but only to those properties which had decided to change to volume based charges. For these properties, capital value based charges would be levied up to the date of their first reading. Council would then expect to have a fully operational volume based charging system in place by about 2003.

This time frame emphasises the need to get started. Statements that ... "when the pressure comes on we can implement the charges" do not recognise the long time frame involved, first in having all residents receive their first account (two years) and second in solving the multiple unit problems. Furthermore, the optional system recommended here to answer the many concerns raised in 1995, will take around five years to achieve full implementation.

12. CONSULTATION

Because the budgetary implications are minor, a decision to begin the implementation of an optional volume based charging system could be made as late as February/March 1997 and then included in the Annual Plan consultation process, for a start date of 1 July 1997

Before that decision it would be possible to assess and report both Community Board and resident opinion on the acceptability of the proposal and to seek from the City Services Committee views on the practicability of implementation.

Suggested recommendations for the Environmental Committee to make to a full Council assume this time frame. The Committee's role in this matter is seen to be:

(i) To establish and reinforce the need for the Council to be actively involved in water management, conservation and efficient use issues with the goal of ensuring sustainable management of the acquifer resource and of prolonging indefinitely the ability of the resource to provide the City's water needs.

(ii) To acknowledge that this goal will be achieved through a range of management strategies public and private, City and Regional.

(iii) To acknowledge that among these strategies some are already being implemented while some will not be required until the pressure on the resource and the financial weight of alternatives combine to make them feasible.

(iv) To recognise the progress and investment made by Council in metering the city in preparation for exercising more active demand management and to provide an assessment of the reasons supporting the strategy.

(v) To recommend to Council whether or not the volume based pricing strategy be implemented.

The Committee also received a report from Councillor David Close (attached) commenting on the Water Services Unit Manager's report and proposing an alternative comprehensive strategy for water conservation.

Both reports were considered.

Recommendation: 1. That that Council acknowledges:

(i) that the aquifer system that serves the city's water supply needs has a limited safe yield and that current consumption levels are already producing undesirable effects during adverse climatic conditions.

(ii) that to ensure that the system can continue to sustainably supply the water requirements of all users, present and potential, the City will need to implement effective conservation strategies, be able to manage demand and also play an active role in the preparation and operation of the Regional Council's groundwater management plans.

2. That the Council implement a comprehensive conservation strategy in recognition of the evidence that the aquifer system that supplies the city has a limited safe yield.

3. That the strategy include in-house conservation, leak detection and repair in mains, publicity and education, leak detection on residential properties by meter reading, and industrial water audits.

4. That all consumers be informed of their consumption following the reading of their meters and be given guidelines about appropriate levels of consumption.

5. That the Water Services Manager recommend appropriate consumption targets for approval by the Environmental Committee and publicise the targets each month as an incentive for conservation.

6. That in recognition of the excellent voluntary savings already achieved, and in recognition of the large number of unmetered ownership flats, the Council undertake not to introduce separate, volume-based charges during its current term, provided total consumption does not exceed reasonably determined consumption targets.

7. That proposals for recharge of aquifers be actively pursued with other Councils in order to safeguard flows in the Avon and Heathcote Rivers.

8. That discussions continue with the Canterbury Regional Council to facilitate the metering of private agricultural and industrial bores in order to manage consumption.

9. That discussions be held with other Councils and with Federated Farmers to investigate the supply of river water for irrigation as an alternative to scarce, energy-expensive supplies pumped from deep bores.

10. That Council officers be asked to report on other forms of water conservation strategies to the Environmental Committee.

PART B - ITEMS DEALT WITH BY THE COMMITTEE AND

REPORTED FOR INFORMATION ONLY

10. DEPUTATIONS BY APPOINTMENT

CAMPBELL McLAY - SOLID HAZARDOUS WASTE DISPOSAL HANDBOOK

Campbell McLay advised that it was his hope that the information contained in the handbook would lead to an increased sense of awareness about hazardous waste and influence safer codes of practice. His interest was with supporting the environment and safeguarding the health of people and animals in the light of how potential toxic substances were dealt with.

He was seeking letters of endorsement in principle from agencies who have an active role in promotion and management of the environment.

The Committee resolved that Mr McLay be asked to work with Council officers to complete the household hazardous waste disposal handbook and examine ways in which to make the information available to householders.

11. CITY PLAN HEARINGS - COMMUNITY ASSISTANCE RR 3798

The Committee was advised by the Environmental Services Manager that it is intended to produce a report at the November meeting of the Committee covering:

(i) The provision of assistance to groups in making submissions to the City Plan Hearings;

(ii) The way in which submitters can become more comfortable, or feel more involved, in hearings relating to resource consents.

The Committee resolved that:

1. Councillors Denis O'Rourke and Carole Evans be consulted by the staff working party before it reports back to the Committee.

2. Other Councillors be given the opportunity to talk to the staff working party.

12. POSTER PASTING SUBCOMMITTEE RR 3853

The Subcommittee had met in August to progress the siting of poster bollards and discuss poster pasting issues with poster advertising company representatives.

There were five current areas that had been identified for bollards, but their exact siting has yet to be arranged.

The need for some form of etiquette amongst poster advertising companies in the use of poster bollards was seen as was controls on the volume of posters being erected to advertise a particular event.

The Committee resolved:

1. That the Keep Christchurch Beautiful Co-ordinator facilitate a meeting between the various poster advertising companies and organisations to determine the code of ethics on poster pasting within the central city and suburbs and report the outcome back to the Environmental Committee.

2. That Community Boards be requested to come up with four to five bollard sites in each area, including the type of bollard preferred.

3. That the poster advertising organisations be asked to forward a list of their preferred bollard sites to the Keep Christchurch Beautiful Co-ordinator.

4. That the Poster Pasting Sub-Committee be dis-established.

13. PROPOSED WAIMAKARIRI RIVER REGIONAL PLAN RR 3737

The Canterbury Regional Council notified the proposed Waimakariri River Regional Plan on 14 September 1996. The Plan sets out issues, objectives, policies, rules and anticipated environmental results in relation to water quantity, water quality, and river and lake beds in the Waimakariri River catchment. Tangata Whenua concerns are interwoven through all these issues.

The Proposed Plan is open for submissions until 16 December 1996. Following this, there will be a period calling for further submissions. The Regional Council's Hearing Committee is likely to consider submissions on the Proposed Plan in mid-1997 and put its recommendations to Council for approval in late 1997.

The Committee resolved that when the officers prepared the submissions on the Waimakariri River Regional Plan, the submissions be referred to the appropriate Community Board(s) before being referred to the Environmental Committee meeting on 4 December 1996.

14. BUDGET PLANNING RR 3700

A report from the Financial Planning Manager outlined the approach and timetable for the 1997/98 Annual Plan.

The Committee resolved that the report be considered at a separate meeting of the Environmental Committee to be held on 16 October 1996.

15. corporate plan monitoring reports

- period ending 30 June 1996

Monitoring reports have been prepared by the Environmental Policy & Planning Unit and the Environmental Services Unit for the year ended 30 June 1996.

The Committee resolved the report be considered at a separate meeting of the Environmental Committee to be held on 16 October 1996.

16. keep christchurch beautiful campaign RR 3666

The Annual Report of the Keep Christchurch Beautiful campaign was presented to the Committee.

Although the main focus of the Campaign still remains litter abatement, in the last few years members have seen the need for and benefit of widening the Campaign's scope. Some of the issues supported, promoted and encouraged through the Campaign's networks and programmes include:

• The Agenda 21 Biodiversity programme
• Waste minimisation
• Waterway enhancement
• Beautification projects
• Water conservation

For some time KCB, with the assistance of Community Boards, has been trying to establish community committees that would operate within the boundaries of each of the six joint Wards. It is expected that the impact of Keep Christchurch Beautiful would significantly increase once the community committees are established and active.

The Committee resolved:

1. That the information be received.

2. That the Environmental Committee convey its appreciation to the Keep Christchurch Beautiful Committee.

17. REVIEW OF FOOTPATH POLICY RR 3852

In response to a request from the Shirley/Papanui Community Board the Development Control Engineer reported on the question of allowing developers to provide a footpath on only one side of the street in new subdivisions, in certain circumstances.

The report analysed:

• Complaints received on one footpath streets;
• Present policy for one footpath streets;
• Disadvantages of one footpath streets;
• Advantages of one footpath streets.

The report concluded that although a number of complaints had been received from residents in streets having only one footpath it should be understood that these works were constructed to the standards and rules as laid down in the various district plans in force at the time of engineering approval. These criticisms have been noted by Council and new criteria are now in place in the proposed City Plan Rules, which should overcome the perceived shortcomings of the past standards.

New streets recently constructed to the present policy are aesthetically pleasing and function well. On that basis there would seem to be no need to alter the proposed City Plan Rules to require two footpaths in all new streets, especially where this cannot be justified in terms of limited use and increased costs.

Any change to the proposed City Plan Rule 5.3.1 in Chapter 14 would require it to be a notified variation to the City Plan.

The Committee resolved:

1. That the Shirley/Papanui Community Board be advised that the proposed City Plan Rules and current policy with respect to a footpath on only one side of new streets in subdivisions have already taken into account reported concerns of residents.

2. Not to initiate a change to the proposed City Plan, by way of a variation to Rule 5.3.1 in Chapter 14, requiring footpaths on both sides of all new streets.

18. CAPACITY OF CHRISTCHURCH WASTEWATER TREATMENT PLANT AND OPTIONS FOR UPGRADING 1996-2026 RR 3613

The Committee received a report from the Waste Manager informing Councillors about the results of the consultants' study into the Christchurch Wastewater Treatment Plant Capacity and the options for upgrading, the expected budget impacts and possible financing options.

The Committee was conscious that the asset management trade-off session had yet to take place and this could impact on the proposed programme.

However, as the resource consent was due to expire, steps had to be taken to demonstrate the Council's commitment to upgrading the treatment plant.

The Committee resolved:

1. That the information be received.

2. That the possible provision of funding for the Stage I upgrading of the CWTP in the Council's next ten year plan be reconsidered as part of the current asset management trade-off discussions.

3. That the Director of Finance report to the Strategy & Resources Committee on the proposed method of funding as part of the 1997/98 Annual Plan process.

4. That the processes outlined in the report be dealt with as expeditiously as possible.

19. ITEMS RECEIVED

The Committee received the following reports:

19.1 Removal of Primary School Designation - Worcester Street

The report advised the Committee of the removal of the primary school designation over the site at 324 Worcester Street.

19.2 Resource Management Amendment Act (No 4)

Report by Environmental Services Manager outlining the main changes to the Act of interest to the Council.

19.3 Granting of Resource Consents (Cowlishaw and Patten Street Residents' Society Meeting) RR 3854

A Sub-Committee of the Environmental Committee and Hagley Ward Councillors met with Cowlishaw and Patten Street Residents Society members in August to provide an explanation as to the broad issues associated with the granting of resource consents.

There was no suggestion by the Society that any member of Resource Consent Panels dealing with applications in the Cowlishaw Street area had conducted proceedings other than in conformity with the rules governing consent hearings.

After explaining the process followed, the Sub-Committee listened to the various questions and matters of concern the Society had on the process.

Arising out of the discussion a number of suggestions were made which are to be examined by the Committee and improvements made as appropriate.

19.4 1996 Christchurch City Council Annual Survey of Residents RR 3667

The Committee received an overview of information relating to planning, development and environmental issues obtained from the Annual Survey of Residents carried out in March 1996.

The report covered issues relating to:

• Local development
• City wide development
• Port Hills
• Wigram
• The central city
• Visits to major attractions and facilities
• Nuisances
• Rivers and streams
• Measure of annual performance

19.5 Long Term Urban Growth Strategy RR 3691

The report backgrounded the progress being made in the establishment of the joint local authority committee. All the relative local authorities had subsequently resolved to support a joint approach to the long term urban growth strategy.

19.6 Status of Land Located on the Corner of Memorial Avenue and Russley Road

This report informed members on the status of land located opposite the Russley Golf Course.

19.7 Environmental Policy & Planning: Acting Unit Managers - General Matters

The Acting Unit Manager reported to the Committee on current issues:

Dog Control Policy discussion document

Non complying car parks

Public health role of local government

19.8 Solid Waste Management: Joint Seminar City Services/Environmental Committees

The Waste Manager reported to the Committee on the proposed joint Committee seminar programme rescheduled for 21 October 1996.

20. RESOLUTION TO EXCLUDE THE PUBLIC

The Committee resolved that the draft resolution to exclude the public set out on page 61 of the agenda be adopted.

CONSIDERED THIS 23RD DAY OF OCTOBER 1996

MAYOR

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