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R E P O R T |
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MAYOR AND COUNCILLORS |
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General Manager |
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01.000.001.A - OE133563.rtf |
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12 JANUARY 2001 |
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SETTLEMENT OF ASSETS DIVISION – OHINEMURI CC AND WESTERN BOP |
When the Hauraki District Council was formed in 1989, parts of the Ohinemuri County Councils area were added to other Districts. The Tirohia area became part of the Matamata Piako District Council. Waihi Beach became part of Western Bay of Plenty District Council.
The division of assets with Matamata Piako was settled early in 1990. The settlement included a share of all assets, land, buildings, plant and cash reserves.
The division with Western Bay of Plenty was similarly divided and agreed. However the transfer was stalled by a Court action taken against the Ohinemuri County Council by Graham Riesterer. Mr Riesterer had purchased a section in a Council subdivision in Edinburgh Street, Waihi Beach which he contended was sold to him without the required services completed.
Mayor Morrison and I met Mr Riesterer on several occasions in the early 1990’s to try and settle the issue out of Court but without success. Representatives of this Council and Western Bay of Plenty District met jointly with Mr Riesterer to try and seek a settlement again without success. Therefore, the issue has dragged on through lawyers and the Court. The Council insurers defended the claim.
The letter attached from Western Bay of Plenty District Council dated 4 January 2001, advises that the matter has been settled. The account of money owed to Hauraki District of $147,608 agrees with our record as does the sum of $89,586 owed to Western Bay of Plenty District leaving a balance of $58,028.
On page two of the letter is a summary of the costs incurred by Western Bay of Plenty. They are claiming for the policy excess and rate penalty that has to be written off as part of the settlement and for the cost of completing Edinburgh Street.
The work in concluding a settlement with Mr Riesterer has rested solely with the Western Bay of Plenty District Council. That is interesting considering the Hauraki District through the Ohinemuri County are entitled to 96.8% of the value of the land. The fact that title had passed to Western Bay meant that it became their problem to settle even though Hauraki District was liable for 96.8% of the cost of any settlement. Western Bay also had to do all the administrative work as the letter from Glenn Snelgrove points out. I can only say that Western Bay of Plenty staff have spent weeks on the settlement. I think we are fortunate that their time was not allocated to the settlement cost.
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RECOMMENDATION THAT the proposal for settlement set out in the letter from the General Manager of the Western Bay of Plenty District dated 4 January 2001 proposing a nett payable to Hauraki District of $58,028 with costs payable to Western Bay of Plenty District of $58,289.28 a net difference of $261.28 be approved. |
I K Laurenson
General Manager