Agenda of Ordinary Council Meeting - Monday, 4 October 2021

Unconfirmed Ordinary Council meeting Minutes

13 September 2021

MINUTES

Ordinary Council meeting

Monday, 13 September 2021

Order of Business

1 Opening Karakia. 3

2 Apologies. 3

3 Public Forum.. 3

3.1 Te Rangapū Mana Whenua o Tauranga Moana - Puhirake Ihaka and Whitiora McLeod - Acquisitions and Disposals Policy. 3

4 Acceptance of late items. 4

5 Confidential business to be transferred into the open. 4

6 Change to the order of business. 4

7 Confirmation of Minutes. 4

7.1 Minutes of the Council meeting held on 30 August 2021. 4

8 Declaration of conflicts of interest 4

9 Deputations, Presentations, Petitions. 5

Nil

10 Recommendations from Other Committees. 5

Nil

11 Business. 5

11.1 Deliberations on the draft Tauranga City Council Acquisitions and Disposals Policy. 5

11.2 Amendment to to the Keeping of Animals Bylaw 2018. 6

11.3 Annual Report on Dog Control Policy and Practices 2020/2021. 6

11.4 Strategic Framework Refresh Project Update. 7

11.5 Tauranga's Non-Compliance with National Policy Statement - Urban Development Capacity Requirements. 7

12 Discussion of Late Items. 7

13 Public excluded session. 7

13.1 Public Excluded Minutes of the Council meeting held on 30 August 2021. 8

13.2 Tauranga Art Gallery Trust - Board Performance Review, 2021. 8

14 Closing Karakia. 8

MINUTES OF Tauranga City Council

Ordinary Council meeting

HELD AT THE Tauranga City Council, Council Chambers, 91 Willow Street, Tauranga

ON Monday, 13 September 2021 AT 10.30am

PRESENT: Commission Chair Anne Tolley, Commissioner Shadrach Rolleston, Commissioner Stephen Selwood (via video link) and Commissioner Bill Wasley

IN ATTENDANCE: Marty Grenfell (Chief Executive), Christine Jones (General Manager: Strategy & Growth), Barbara Dempsey (General Manager: Regulatory & Compliance), Anne Payne (Strategic Advisor), Coral Hair (Manager: Democracy Services), Robyn Garrett (Team Leader: Committee Support) and Jenny Teeuwen (Committee Advisor)

Via video link - Susan Jamieson (General Manager: People & Engagement), Gareth Wallis (General Manager: Community Services), Brigid McDonald (Manager: Strategic Investment & Commercial Facilitation) and Ariell King (Team Leader: Policy)

1 Opening Karakia

Mr Puhirake Ihaka opened the meeting with a Karakia.

2 Apologies

Nil

3 Public Forum

3.1 Te Rangapū Mana Whenua o Tauranga Moana - Puhirake Ihaka and Whitiora McLeod - Acquisitions and Disposals Policy

Key points

· Tangata whenua had worked with Tauranga City Council (TCC) on the review of the policy for around five to six years. The Tangata Whenua Collective relationship with TCC had now been for 20 years.

· The policy was important for tangata whenua and had always been in the forefront of thinking.

· The policy acknowledged Council’s honouring of the principles of the Treaty of Waitangi, and was a sign of the good faith with this, and previous, Councils.

· Te Rangapū believed that TCC had consulted with tangata whenua as much as they could have.

· Te Rangapū were in favour of the right of first refusal (RFR) as it gave tangata whenua the opportunity of fairly getting back the land that TCC no longer needed, regardless of how the land had been acquired originally.

· Offering the land back at market value did not disadvantage anyone.

· Te Rangapū believed the need for two valuations was unnecessary and a waste of ratepayer money.

· The 60 day timeframe gave tangata whenua time to consult. It would not always be possible to get everyone together in a shorter timeframe.

In response to questions

· Each hapū had their own list of council owned land that they were interested in.

· A market valuation did not take into account the tapu or cultural value attached to the land for tangata whenua, so tangata whenua needed to be able to provide their own valuation to provide balance.

· Hapū could undertake assessments to determine whether properties up for disposal had any cultural value or the value was commercial only, but Council would need to provide a list of what properties were available for disposal first so that hapū could identify which properties they were interested in, and then carry out assessments for those properties.

· A Council list of properties up for disposal, and pre-assessments undertaken by tangata whenua for properties they were interested in, would provide a level of certainty that would enable shortened timeframes when properties came up for disposal.

· Experience from the past indicated that tangata whenua providing a list of properties of interest to Council first had not always come to any fruition.

The Commission Chair thanked Mr Ihaka and Mr McLeod for their presentation.

4 Acceptance of late items

Nil

5 Confidential business to be transferred into the open

Nil

6 Change to the order of business

Nil

7 Confirmation of Minutes

7.1 Minutes of the Council meeting held on 30 August 2021

Resolution CO17/21/1

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the minutes of the Council meeting held on 30 August 2021 be confirmed as a true and correct record.

Carried

8 Declaration of conflicts of interest

Nil

9 Deputations, Presentations, Petitions

Nil

10 Recommendations from Other Committees

Nil

11 Business

11.1 Deliberations on the draft Tauranga City Council Acquisitions and Disposals Policy

Staff Christine Jones, General Manager: Strategy & Growth

Brigid McDonald, Manager: Strategic Investment & Commercial Facilitation

Ariell King, Team Leader: Policy

In response to questions

· The process to classify property for the purposes of disposal, Section 5.6 of the Policy, needed to be made clearer about what was staff process and what was formal process i.e. Council decision required. This also needed to be made more explicit in the flowchart in Attachment A.

· Decisions about whether land was up for disposal would be made by Council.

· A transparent list of properties up for disposal was needed so that hapū could research those they were interested in. This would provide an ‘early line of sight’ and reduce timeframes when properties come up for disposal.

· Council’s list of properties up for disposal was not currently publicly available. A number of the properties had constraints and these would need to identified in any list that was made public. The list of properties up for disposal did not always align with the Long Term Plan or Annual Plan process.

· It had been agreed with tangata whenua in August 2020 that the inclusion of an atypical properties category was unnecessary and was strongly opposed, so the draft policy did not include the ‘atypical’ category and therefore, the views of the wider community were unknown regarding the potential addition of this category.

· The Zespri site on Maunganui Road was an example of an atypical property as the site was large and unique with a range of potential development opportunities. These types of properties were reasonably rare.

· Council had not previously used bright-line tests. Conditions were usually managed through the sale and purchase agreement.

· The proposed 45 working day timeframe (nine weeks) for the RFR and resolving disputes processes allowed for the tikanga process to take place. If an ‘early line of sight’ was built in to the RFR process, and there was the provision for exceptions in the resolving disputes process, tangata whenua would be comfortable with a 30 working days (six weeks) timeframe. The timeframes could be looked at again in two years’ time when the policy was reviewed.

· When the market value of a property was not agreed, the agreed scope for that valuation between iwi/hapū and Council would be dealt with on a case by case basis. This needed to be better defined in Attachment A.

· If the price offered for a property on the open market was 10% less than the value determined by an independent valuer, then what happened with the property needed to come back to Council for a decision.

· A definition of ‘working days’ needed to be included in Section 3: Definitions of the policy.

Resolution CO17/21/2

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the Deliberations on the draft Tauranga City Council Acquisitions and Disposals Policy report.

(b) Requests that staff report back to the next Council meeting with a revised policy incorporating amendments as discussed at this meeting including:

(i) Proposed amendments in red, with the exception of 45 working days to be changed to 30 working days.

(ii) Inclusion of the ‘atypical’ property category as highlighted in orange in Attachment 1.

(iii) Removal of the offer back requirements and replace with a decision to be made by Council.

(iv) Various clarifications to Attachment A.

Carried

11.2 Amendment to to the Keeping of Animals Bylaw 2018

Staff Barbara Dempsey, General Manager: Regulatory & Compliance

Resolution CO17/21/3

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Amends the Keeping of Animals Bylaw 2018 to provide for the issuing of formal notices under the Bylaw.

Carried

11.3 Annual Report on Dog Control Policy and Practices 2020/2021

Staff Barbara Dempsey, General Manager: Regulatory & Compliance

The Commission Chair thanked staff for their work in this area.

Resolution CO17/21/4

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the Annual Report on Dog Control Policy and Practice 2020/2021 report; and

(b) Pursuant to Section 10A of the Dog Control Act 1996, adopts the Tauranga City Council Report on Dog Control Policy and Practices for 2020/2021.

Carried

11.4 Strategic Framework Refresh Project Update

Staff Christine Jones, General Manager: Strategy & Growth

Anne Payne, Strategic Advisor

Resolution CO17/21/5

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the Strategic Framework Refresh Project Update report; and

(b) Notes that the Strategic Framework Refresh Project aims to be delivered by July 2022.

Carried

11.5 Tauranga's Non-Compliance with National Policy Statement - Urban Development Capacity Requirements

Staff Christine Jones, General Manager: Strategy & Growth

Key points

· TCC would not be able to comply with the requirements of the National Policy Statement for Urban Design (NPS-UD) and this would have huge consequences for Tauranga’s population.

· It was important that it was noted that there were significant risks that were not all of Tauranga’s own making.

· The letter was a political document that all Commissioners had signed.

Resolution CO17/21/6

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council receives the report “Tauranga’s Non-Compliance with National Policy Statement – Urban Development Capacity Requirements”.

Carried

12 Discussion of Late Items

Nil

13 Public excluded session

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution CO17/21/7

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Stephen Selwood

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

13.1 - Public Excluded Minutes of the Council meeting held on 30 August 2021

s6(b) - The making available of the information would be likely to endanger the safety of any person

s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(b)(i) - The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret

s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(h) - The withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s7(2)(i) - The withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

13.2 - Tauranga Art Gallery Trust - Board Performance Review, 2021

s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

Carried

At 12.47pm, the meeting resumed in the Open session of Council.

14 Closing Karakia

Commissioner Shadrach Rolleston closed the meeting with a Karakia.

The meeting closed at 12.48pm.

The minutes of this meeting were confirmed as a true and correct record at the Ordinary Council meeting held on 4 October 2021.

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CHAIRPERSON

UNCONFIRMED Ordinary Council Meeting Minutes

12 July 2021

MINUTES

Ordinary Council Meeting

Monday, 12 July 2021

Order of Business

1 Opening Karakia. 3

2 Apologies. 3

3 Public Forum.. 3

3.1 Mr Larry Baldock - Use of STV in local body elections. 3

4 Acceptance of late items. 4

5 Confidential business to be transferred into the open. 4

6 Change to the order of business. 4

7 Confirmation of Minutes. 4

7.1 Minutes of the Council meeting held on 21 June 2021. 4

8 Declaration of conflicts of interest 4

9 Deputations, Presentations, Petitions. 4

Nil

10 Recommendations from Other Committees. 4

10.1 Representation Review - Approve options for pre-engagement 4

11 Business. 5

11.1 Executive Report 5

11.2 Adoption of Community Funding Policy. 7

11.3 Extension of the 2020/21 User Fees and Charges Schedule. 8

12 Discussion of Late Items. 8

13 Public excluded session. 8

13.1 Public Excluded Minutes of the Council Meeting held on 21 June 2021. 9

13.2 Regulatory Hearings Panel - Appointment of Tangata Whenua Representative. 9

14 Closing Karakia. 9

MINUTES OF Tauranga City Council

Ordinary Council Meeting

HELD AT THE Tauranga City Council, Council Chambers, 91 Willow Street, Tauranga

ON Monday, 12 July 2021 AT 10.30am

PRESENT: Commission Chair Anne Tolley, Commissioner Shadrach Rolleston, Commissioner Stephen Selwood, Commissioner Bill Wasley

IN ATTENDANCE: Marty Grenfell (Chief Executive), Paul Davidson (General Manager: Corporate Services), Barbara Dempsey (General Manager: Regulatory & Compliance), Susan Jamieson (General Manager: People & Engagement), Nic Johansson (General Manager: Infrastructure), Christine Jones (General Manager: Strategy & Growth), Gareth Wallis (General Manager: Community Services), Carlo Ellis (Manager: Strategic Māori Engagement), Jeremy Boase (Manager: Strategy and Corporate Planning), Anne Blakeway (Manager: Community Partnerships), Sam Fellows (Manager: Sustainability and Waste), Emma Joyce (Policy Analyst), Coral Hair (Manager: Democracy Services), Robyn Garrett (Team Leader: Committee Support), Raj Naidu (Committee Advisor)

1 Opening Karakia

Commissioner Rolleston provided the opening karakia.

2 Apologies

Nil

3 Public Forum

3.1 Mr Larry Baldock - Use of STV in local body elections

A copy of the presentation for this item can be viewed on Tauranga City Council’s website in the Minutes Attachments document for this meeting.

Key points

· Mr Baldock expressed his reservations about the use of the Single Transferable Vote (STV) voting system in local government elections. While STV could be more unifying way of electing representatives that the First Past the Post (FPP) voting system, and worked well in one candidate elections e.g. a mayoral race, it did not operate well in multi-member seats.

· Provided examples from the 2019 Tauranga City Council local body elections.

· The treatment and distribution of second preferences in a multi-member election was of concern. Voters indicated their second choice of candidate with a “2” ranking; however, in particular situations that second preference was not always redistributed. While the STV calculation was correct, voters did not always understand the way the STV algorithm worked and the impact of their 2^nd and further preferences.

· Supported Option 4 - single member ward system - for the representation review and considered that STV worked most effectively in that situation.

Attachments

1 Public Forum - Larry Baldock - STV Presentation

4 Acceptance of late items

Resolution CO13/21/1

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

Accepts the following late item for consideration at the meeting:

• Extension of the 2020/21 User Fees and Charges Schedule

The above item was not included in the original agenda because it was not available at the time the agenda was issued, and discussion cannot be delayed until the next scheduled meeting of Council because a decision is required in regard to this item.

Carried

5 Confidential business to be transferred into the open

Nil

6 Change to the order of business

Nil

7 Confirmation of Minutes

7.1 Minutes of the Council meeting held on 21 June 2021

Resolution CO13/21/2

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the minutes of the Council meeting held on 21 June 2021 be confirmed as a true and correct record.

Carried

8 Declaration of conflicts of interest

Nil

9 Deputations, Presentations, Petitions

Nil

10 Recommendations from Other Committees

10.1 Representation Review - Approve options for pre-engagement

Staff Coral Hair

Key points

· This report was the start of the representation review process. A number of options that provided a range of representation arrangements would be presented to the public for consideration.

· Community boards were available with any of the representation options.

· Ward names were also open for consultation.

In response to questions

· Maps and infographics would be available as part of the pre-engagement. The advantages and disadvantages of each of the four options would be included in the engagement material.

Discussion points raised

· Commissioners would not be involved in the community pre-engagement, which would be conducted by staff, as the commissioners would be in the position of making the decisions further on in the representation review process.

Resolution CO13/21/3

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council adopts the recommendations of the Strategy, Finance and Risk Committee meetings of 21 and 28 June 2021 and:

(a) Adopts the timeline for the Representation Review process as set out in Attachment 1.

(b) Agrees to pre-engagement with the community for the period 16 July to 13 August 2021

(c) Approves the following Options for pre-engagement with the community on the representation arrangements for the 2022 election:

(i) Option 1 – Mixed model (wards and at large) with 10 Councillors - 7 councillors from 3 general wards, 1 Māori ward councillor and 2 at large councillors

(ii) Option 2 – Two wards model with 10 Councillors - 1 general ward with 9 councillors and 1 Māori ward councillor

(iii) Option 3 – Wards only model with 12 councillors - 11 councillors from 6 wards and 1 Māori ward councillor, subject to a change to the Wairakei ward boundary to be consistent with Option 4.

(iv) Option 4 – Wards only model – single member wards with 12 councillors - 11 councillors from 11 wards and 1 Māori ward councillor.

Carried

11 Business

11.1 Executive Report

Staff Marty Grenfell, Chief Executive

Nic Johansson, General Manager: Infrastructure Services

Susan Jamieson, General Manager: People & Engagement

Barbara Dempsey, General Manager: Regulatory & Compliance

Gareth Wallis, General Manager: Community Services

Paul Davidson, General Manager Corporate Services

Christine Jones, General Manager: Strategy & Growth

Key points

· Some teething issues experienced with the rollout of kerbside collection on 1 July, but it had generally gone smoothly. 150t of rubbish, 100t recycling, 48t food waste and 72t glass were collected in the first week of operation. Utilisation was expected to increase as people became more used to the service.

· Following a request from the Waiāri Kaitiaki Advisory Group, staff were investigating access to water and wastewater for iwi use and for marae; including the cost of a percentage of Waiāri water take being provided to Tapuika.

· Noted the waterline competition winners.

· Governance training provided to tangata whenua members of council committees had been well received. The involvement of the customer services team in responding to kerbside queries and calls was noted; there had been a good collaborative process with the kerbside project and waste team.

· The environmental health team had recently been audited and came through very well, with only one audit finding.

· Changes in civil defence structure were explained. There had historically been a combined Western Emergency Operations Centre (EOC); this was now split with TCC to operate their own EOC while still continuing to work closely with Western Bay of Plenty District Council. TCC was now in a position to respond if necessary; strategically needed to be able to look after the city.

· Recruitment was still challenging in the regulatory area especially in the building services team. The Development Contributions policy had influenced the number of applications with increased numbers of building consents being lodged; the team was working closely with the larger developers to manage the process as well as possible.

· The start of the new Bay Venues Limited Board on 1 July was noted.

· Places and Spaces developments included the old trig station on top of Mauao being removed and replaced with a cultural compass, as part of the Mauao implementation plan; the Elizabeth St streetscaping was now well underway.

· Noted that the Annual Report may be delayed due to legislation.

In response to questions

· In relation to the kerbside collection service, there were strategy targets to achieve over time, such as the TCC goal of 50% reduction in what goes to landfill. Short term goals were measured by comparison with similar services in other cities; the first week was roughly in line with what was expected in terms of what Hamilton City had experienced.

· Closure of Maleme St was on track. Further public communication would be developed as required; staff would be stationed at Maleme St to redirect people as the closure took effect.

· The additional geotechnical and groundwater investigations required at Te Maunga and the delay on desludging had been included in the project risk analysis – one was a known risk; the other unknown but covered by project contingency.

· Consultation had been undertaken with neighbours regarding vibration and noise; testing showed the vibration effect was much as expected. Baseline surveys had been completed on some neighbouring properties so damage could be compensated if needed.

· Staff were engaging with Waka Kotahi on Hewletts Rd, as it was part of the state highway network, and an update would be provided to the commissioners once the meeting with Waka Kotahi had been held.

· In response to an increase of about 20% in Land Information Memorandum report (LIMs) requests, an extra resource was hired to deal with the increased demand. Customers paid a premium for 3-day LIMs over 10-day LIMs.

· Suggested that the organisation proactively participate in the Wednesday Challenge as an opportunity to show leadership in the environmental sustainability space. The Corporate Sustainability Strategy was currently under review with a new senior role within TCC being investigated to manage this area e.g. sustainability strategy, organisational carbon footprint.

· Noted that a remuneration working group including staff was looking at the bigger philosophy of remuneration e.g. bands or grades; as the current remuneration strategy was not considered transparent by staff. Key Performance Indicators (KPIs) were a separate process not linked with remuneration.

· Requests for further information (RFIs) by councils were sometimes seen as a way for councils to prolong their consent processing time frames. TCC RFI numbers were not significantly different to other metros and it was not the council’s intention to use the RFI process negatively. RFI numbers would be tracked and included as part of continued reporting “dashboards”. There had been internal training to ensure consistency between planners and best practice examples of applications were being developed to be provided to applicants. Processing staff needed to be firm at the beginning to ensure sub-standard applications were rejected and the use of RFIs minimised.

· The future state analysis for Blake Park/Gordon Spratt Reserve/Alice Johnson Oval was planned to be completed pre-Christmas, to provide good quality data to inform the Annual Plan.

· In relation to Omanawa Falls, nothing that council was looking at in terms of safety and safe access for people to view the Falls would restrict the ability of a group to establish a more tourist-focussed activity. A number of groups were involved with Omanawa Falls; however, TCC was liable for safety. Consents required for access were expected to be fully publicly notified.

· The recent failure of the airport runway lights was being investigated; it was not part of regular scheduled maintenance.

Resolution CO13/21/4

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council receives the Executive Report.

Carried

11.2 Adoption of Community Funding Policy

Staff Anne Blakeway, Manager: Community Partnerships

Emma Joyce, Policy Analyst

Key points

· The report was a follow-up to the Long-term Plan deliberations and the approval of the establishment of a Community Grants Fund. The new policy would cover all forms of community grant funding.

In response to questions

· Applications for less than $10,000 went to the match funding grant – applicants would need to come up with half of the funds required. Larger applications over $10,000 did not necessarily require any contributory funding. Match funding was intended as seed funding to new innovative areas and applicants were required to have skin in the game.

· Noted there were a range of places that organisations/smaller projects could apply for funding.

Discussion points raised

· Deletion of clauses 5.3.3 and 5.3.4 of the policy was discussed, with a possible problem with people not knowing which fund to apply for. The match fund could be an option within the wider framework of grant funding; match funding was helpful at any level, but match funding would not necessarily be a required criterion for a particular level of application.

· Funding criteria could include the provision of match funding by an applicant.

Resolution CO13/21/5

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Approves the Community Funding Policy 2021, noting the following:

(i) that the fund will be retained in house;

(ii) that the maximum available grant for the contestable grant fund is $50,000;

(iii) that partnership agreements may be for any amount (provided it is within the overall amount allocated to the fund);

(iv) while the fund will give consideration to the four well-beings, it is not required to be apportioned equally across them;

(v) that the funding criteria gives consideration to kaupapa Māori initiatives, but no funding is ringfenced for kaupapa Māori initiatives;

(vi) that schools, not-for-profit early childhood education providers and kura are able to access the Community Grant Fund (for defined purposes);

(vii) that social enterprises are unable to access the Community Grant Fund;

(viii) that individuals are unable to access the Community Grant Fund; and

(b) Notes that additional work will be undertaken to determine if all council funding streams should come under the auspices of the Community Funding Policy, including consideration of Council funding for community facilities.

Carried

Resolution CO13/21/6

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That Recommendation (a) (ix) “that applicants to the Community Grant Fund are not required to “match” any Council funded amount with their own funds” is left to lie for further consideration to be brought back to Council at the 26 July 2021 Council meeting.

Carried

11.3 Extension of the 2020/21 User Fees and Charges Schedule

Staff Paul Davidson, General Manager: Corporate Services

Key points

· This was a process issue to allow user fees to be charged until the end of July.

Resolution CO13/21/7

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the Council:

(a) Adopts the recommendation to continue to use the User Fees and Charges Schedule 2020/21 from the period 1 July 2021 to 1 August 2021, which enables the current schedule to be used until the new schedule is adopted.

lCarried

12 Discussion of Late Items

Included as Business – Agenda Item 11.3.

13 Public excluded session

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution CO13/21/8

Moved: Commissioner Shadrach Rolleston

Seconded: Commission Chair Anne Tolley

That the public be excluded from the following parts of the proceedings of this meeting.

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

13.1 - Public Excluded Minutes of the Council Meeting held on 21 June 2021

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

13.2 - Regulatory Hearings Panel - Appointment of Tangata Whenua Representative

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

Carried

14 Closing Karakia

Carlo Ellis, Manager: Strategic Māori Engagement, provided the closing karakia.

The meeting closed at 12.29pm.

The minutes of this meeting were confirmed as a true and correct record at the Ordinary Council meeting held on 4 October 2021.

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CHAIRPERSON

Ordinary Council meeting Agenda

4 October 2021

11 Business

11.1 Council-Controlled Organisations' Draft and Final Annual Reports for 2020/2021

File Number: A12782688

Author: Josephine Meuli, CCO Specialist

Anne Blakeway, Manager: Community Partnerships

Authoriser: Gareth Wallis, General Manager: Community Services

Purpose of the Report

1. The purpose of this report is for the council-controlled organisations to provide their draft and final annual reports to Council regarding their financial and non-financial performance for the year 2020/2021.

Recommendations

That the Council:

(a) Receives the council-controlled organisations’ draft and final annual reports for 2020/2021.

Executive Summary

2. Tauranga City Council (TCC) has a number of council-controlled organisations who are required to provide their audited annual reports to Council regarding their financial and non-financial performance.

3. Due to the impact of COVID-19 on public entities, Audit NZ have had to re-prioritise their audits with several of the council-controlled organisation audits being delayed this year. This means that draft annual reports for Bay Venues Limited (BVL), Bay of Plenty Local Authority Shared Services Limited (BOPLASS), Tauranga Art Gallery Trust (TAGT), and Tourism Bay of Plenty (TBOP) are provided at this time. An audited annual report is provided for the Local Government Funding Agency (LGFA).

4. A summary of each council-controlled organisation’s performance against the financial and non-financial measures in their individual Statements of Intent is provided for BVL, BOPLASS, TAGT, TBOP and the LGFA.

5. TBOP’s annual report will also be provided to Western Bay of Plenty District Council as joint shareholder at their meeting on 4 November 2021.

Background

Requirement to report

6. In accordance with their Statements of Intent, BVL, TAGT, TBOP, and the LGFA are required to draft annual reports to Council within two months of the end of the financial year. The final audited annual reports are due to be provided to Council within three months of the end of the financial year (30 September 2021).

7. In accordance with its Statement of Intent and the Local Government Act (2002), BOPLASS is required to provide an audited annual report to Council within three months of the end of the financial year.

8. BVL, TAGT, TBOP and BOPLASS are audited by Audit New Zealand and the LGFA is audited by KPMG.

9. Due to the impact of COVID-19 on public entities, Audit New Zealand have had to re-prioritise, leading to the council-controlled organisation audits being delayed this year.

10. A legislative change on 5 August 2020 provides for council-controlled organisations, with a 30 June balance date, to extend their statutory reporting timeframe until 30 November.

11. The table below outlines the date of receipt for the draft and final (audited) Annual Reports for TCC’s council-controlled organisations:

Council-controlled organisation	Draft Annual Report received	Final (audited) report due	Reference
BVL Draft, unaudited Annual Report	31 August 2021	October	Attachment 1
BOPLASS Draft, unaudited Annual Report	31 August 2021	October	Attachment 2
TAGT Draft, unaudited Annual Report	31 August 2021	November	Attachment 3
TBOP Draft, unaudited Annual Report	31 August 2021	October	Attachment 4
LGFA Fina, audited Annual Report	-	31 August 2021	Attachment 5

12. Annual reports are provided by the council-controlled organisations to Council as part of its role to ensure the council-controlled organisation’s performance is consistent with their Statements of Intent and other accountability documents.

13. As TBOP is a joint council-controlled organisation with Western Bay of Plenty District Council (WBOPDC), TBOP’s draft annual report will be provided to their Council meeting for discussion on 4 November 2021.

14. Specifically, the Statements of Intent require that the annual reports include:

(i) Statement of Financial Performance (balance sheet);

(ii) Statement of Comprehensive Income (income statement);

(iii) Statement of Movements in Equity;

(iv) Statement of Cash Flows;

(v) Disclosure of related party transactions;

(vi) Notes to the Financial Statements; and

(vii) Such other statements as may be necessary to fairly reflect the financial position of the Company and its subsidiaries, the resources available to the Company and its subsidiaries and the financial results, of the operations of the Company and its subsidiaries.

15. The board of each council-controlled organisation is also required to provide a board report, including a summary of the financial results, a report of the operations, and a comparison of performance in relation to objectives.

16. All five draft and final Annual Reports have met the legislative and Statement of Intent requirements. Final copies of audited Annual Reports will be provided for each of the council-controlled organisations once received back from Audit New Zealand.

Bay Venues Limited (based on draft, unaudited report)

17. The draft unaudited Annual Report is provided at Attachment 1.

Summary of financials

18. BVL reported an EBITDA surplus of $1.14 million ($2.6 million ahead of budget) and an after-tax deficit of $0.3 million. This was against a budgeted EBITDA deficit of $1.5 million.

19. This was based on actual revenue of $22.8 million against a budgeted revenue of $17.25 million. A number of factors have driven the stronger than expected revenue, including participation across the facilities rebounding post the first COVID-19 lockdown period, stronger than expected numbers of visitors from domestic tourism, and the $1 million wage subsidy programme, which have all provided surety of staff retention during this time.

20. Note 27 of the financial statements (page 28 of Attachment 1) addresses the major variations against budget. Operating revenue was ahead of budget due to the additional revenue stream from Healthy School Lunches, which also incurred higher than budgeted expenditure.

21. TCC’s renewals funding to BVL was lower than budget due to the Greerton Renewal project being delayed until FY22.

22. Note 31 to the financial statements (page 30 of Attachment 1) updates Council on the impact of COVID-19 on visitor numbers to the Bay of Plenty during August/September 2020.

23. BVL enforced stronger social distancing practices during Alert Level 2 and noted lowered patronage at swimming pools, and decreased usage of community halls (including Trustpower Arena). With enforced limits on gatherings during this time, the number of larger gatherings reduced accordingly, although this did not materially affect the amount of user charges collected.

Summary of Statement of Intent Performance

24. A balanced scorecard table outlining the targets and providing commentary on BVL’s performance against each of them has been provided on page 32 (non-financial) and page 33 (financial) of the Annual Report. Six of the seven targets in BVL’s Statement of Intent 2020/2021 have been achieved, or 90% based on the percentage weighting, which is higher than the 70% achieved in the previous year.

25. The staff engagement survey performance measure is recorded as being currently off track but likely to be on target at year end. BVL note 13 themes within the survey are lower by a small margin and note the reduction is likely related to zero pay increases and restricted training due to COVID-19. BVL’s action plan includes:

· reviewing remuneration levels;

· reforming BVL’s people strategy; and

· implementing a minimum wage across staff, commencing with lifeguards in April 2021.

26. Other employee remuneration expenses (staff exceeding $100,000 at June 2021) are made available at note 29.

27. BVL has completed all 13 of the community output actions/activities identified within Schedule A of BVL’s Statement of Intent.

28. FYE 2021 has seen a declining trend in the number of facility-related Health and Safety incidents from the previous year, when adjusted for COVID related facility closures.

29. BVL’s customer experience survey received a 90% rating of satisfied/very satisfied from its customers, 1% up on last year’s result. The survey was sent to 12,910 customers across a range of facilities, receiving 1,398 responses, or 10.8%. BVL advise that future surveys will use a customer sentiment tool that will provide real time customer feedback.

Other Comments

30. Pages 3-8 of the Annual Report contain a summary of the year’s results noting BVL’s 24 facilities were used by 2.2 million people during the year, compared to 1.8 million last year.

31. A snapshot of ‘Stories of the Year’ is provided on page 8, including a record total of 758,000 visitors to the five aquatic facilities in the BVL network, or a 7.7% increase on the three-yearly average. BVL have utilised profits from the Healthy School Kai business to subsidise the 24 community facilities, keeping entry prices low so that everyone in the community can afford to enjoy them.

32. ‘A Year in Review’ (pages 5-8) is a combined report by BVL’s incoming Chair and the Chief Executive. Acknowledgement is made to the significant contribution from previous acting CEO, Justine Brennan, the outgoing Board, and the BVL management team.

33. The report highlights a strong year of event activity including 66 major sporting and aquatic tournaments across Tauranga’s facilities. The iconic Bay Dreams festival was most successful, attracting 16,500 attendees.

34. The Healthy School lunches programme has created new opportunities for BVL, including creating 33 new jobs in the local community, and achieving additional revenue that has been used to subsidise upgrades to Taranga’s community facilities.

35. A notable inclusion in the combined report is the re-set in the relationship with TCC, including working to position BVL and the public perception of this council-controlled organisation as an integral part of Council’s business-as-usual operations.

36. Additional operational highlights from the Chair and Chief Executive include the upgrade of the Mount Hot Pools. The upgrade benefits are noted below:

· being completed under budget and under the estimated time of 12 weeks (10 weeks);

· saves 30 cubic metres of water per day;

· included resurfacing the concourse with non-slip flooring which will reduce the frequency of slips and any potential injuries; and

· includes a unique cultural element which, will soon be revealed to the public.

BOPLASS (based on draft, unaudited report)

37. The draft, unaudited Annual Report is provided at Attachment 2.

Summary of financials

38. BOPLASS has finished the 2020/21 year with $15,970 surplus (compared to a $15,223 deficit in 2019/20).

39. Despite a lower than anticipated project revenue, total revenue was higher than budget by $25,162 and expenses were also lower by $268,908. Note 25 to the financial statements (page 42 of Attachment 2) provides explanations of major variances against budget.

Summary of Statement of Intent performance

40. BOPLASS’s Annual Report states all Statement of Intent targets have been achieved (6 out of 6, or 100%). A table outlining the targets and providing commentary on BOPLASS’s performance against each item is provided on pages 7-13 of the draft Annual Report.

41. BOPLASS has increased inter-regional collaboration, which will add incremental savings and value through the joined-up approaches and shared coordination. Notable highlights include:

· An increase in collaboration across other LASS and councils outside the BOPLASS region (MW LASS, WLASS) achieved very good outcomes in a number of shared initiatives and projects, in particular the BOPLASS insurance programme, which included:

o what types of cover council will council’s need to purchase in the future;

o what will be insured, and levels of cover; and

o levels of deductibles.

· BOPLASS led the development of council scorecards to help councils assess the quality of their information and any areas that can be improved.

· BOPLASS and WLASS are collaborating to establish a waste contractor management and reporting platform across both regions. Given the size of the opportunity, strong interest from potential vendors and other councils is noted, which could mean inclusion of new interest groups, or a service developed to allow other councils to join after its establishment.

· The MahiTahi LG Collaboration Portal provides a collaborative workspace for local government to better share and coordinate information and activities and has continued to expand in the last 12 months showing an increase of 71% in new members.

Tauranga Art Gallery Trust (based on draft, unaudited report)

42. The draft unaudited TAGT Annual Report 2020/21 is provided at Attachment 3.

Summary of financials

43. TAGT has finished the 2020/21 year with a deficit of $19,028 after expenses (and depreciation). Total revenue of $1,292,988 is $177,003 (or 12%) less than overall revenue in 2019/21 of $1,469,991. Expenses of $1,312,116 are lower than 2019/20 expenses of $1,382,663.

44. It is worth noting that TAGT is in a strong financial position, with the ownership of its gallery, other assets and minimal liabilities, net worth is $11,097,537.

45. Note 18 on page 51 of the TAGT Annual Report (Attachment 3) addresses the variances to the budget, including a total decrease in revenue of $100,238 from non-government grants, sponsorship and donations as the continued impact of COVID-19 continues to trend down. This was a result of unstable sponsorship, which decreased by $75,000. Admission fees, general donations, Art Bus and Friends of Tauranga Art Gallery donations also decreased on the previous year by $26,000.

46. By comparison, other revenue has increased by $32,000 as a result of a combination of education, touring income, retail sales, venue hire and sundry income.

47. Some of TAGT’s expenses were higher than budgeted:

· consultants and legal expenses increased due to employment-related fees (recruitment and HR costs);

· total event and exhibition expenses higher than budget by 28%; and

· building and maintenance expenses higher than budget by 24.5%.

48. While TAGT’s current value of property, plant has decreased in overall value, 2020/21 notes an increase in equipment by 11.45% ($1,035,534).

Summary of Statement of Intent performance

49. Highlights include a total of 42,019 visitors through the Gallery, including 7,585 students from 56 schools. A total of 6,620 students (from 46 different schools) used the Art Bus to get to the gallery and attend TAGT’s education programmes.

50. 18,099 visitors attended TAGT’s signature event Tauranga Moana exhibition.

51. Despite being faced with periods of closure and interruption over 2020/21, TAGT has successfully delivered 24 exhibitions, an increase of eight exhibitions compared to 2019/20.

52. TAGT’s customer satisfaction survey response showed 80% of 1,541 surveyed visitors were either extremely or highly satisfied, compared to 86% of 2,425 surveyed responses in 2019/20. It is worth noting that the number of surveyed responses has decreased over the past 2 to 3 years (in 2018/19 6,204 responses were received).

Other comments

53. TAGT presented a major commission by Christina Pataialii – Proximity and Distance, which received significant international exposure with some paintings soon appearing in the prestigious New Museum Triennial in New York in October 2021, carrying TAGT’s reputation as a southern hemisphere art institution.

54. Despite interruptions resulting from the ongoing impacts of COVID-19, TAGT has stayed focused and increased the number of exhibitions and school programmes to local students, while presenting unique art offerings across Tauranga and the wider Western Bay of Plenty region.

Tourism Bay of Plenty (based on draft, unaudited report)

55. The draft unaudited Annual Report is provided at Attachment 4.

Summary of financials

56. The financial summary shows an overall positive return of $36,352, with revenue achieving a net result increase of 1% ahead of budget.

57. Pages 30-32 of the Annual Report (Attachment 5) addresses major variances to the budget, including significantly increased income as a result of funding provided by the Strategic Tourism Assets Protection Programme (STAPP) and Regional Events Fund.

58. The trust has an increase in its cash position from the previous year, with $1,012,031 in cash and cash equivalents, compared to $190,683 in 2019/2020. A significant increase in total assets (through cash and cash equivalents), combined with an increase in in total liabilities has contributed to a slight increase in the Trust’s total equity to $461,288 (from $424,935 in 2019/20).

Summary of Statement of Intent performance

59. The Chairperson’s report on pages 2 and 3 notes that through collaboration of iwi, stakeholders, industry and community, Te Hā Tāpoi | The Love of Tourism strategy is the ideal long-term plan, which will assist in building a robust and resilient tourism sector, leaving the TBOP rohe better than it was before.

60. An additional $700,000 of STAPP funding from the Government enabled TBOP to move quickly with building capacity, fast-tracking projects, contracting passionate locals to lead new activity, including developing new products and creating domestic marketing campaigns.

61. Of the 48 strategic and business plan objectives and performance measures used to track Tourism BOP’s progress, 32 were achieved, eight were not achieved, seven are on hold or were delayed due to the cruise sector being unable to operate or due to other delays. The one remaining measure has been indefinitely suspended due to funding limitations.

Other comments

62. TBOP’s continued focus from 2019/20 has been the domestic market and, despite the ongoing impacts of lockdown, there has been a 12% increase on spend in the region, 19% coming through the domestic market.

63. Most industries have benefitted from the domestic market spend, particularly accommodation, arts, recreation, food and retail businesses. Travel and cruise tour operators are significantly impacted with 70% decrease in spend.

64. 86% of New Zealanders are satisfied or very satisfied with their visit to the Western Bay of Plenty.

65. TBOP launched Te Whānau Tāpoi Māori ō Tauranga Moana, a Māori tourism operator collective in Tauranga, delivering Māori cultural tourism.

66. TBOP’s media family programme has achieved at least one programme (38,000) in a major New Zealand publication each month.

67. The Sure to Make you Smile marketing campaign, targeting domestic visitors, achieved 3,471,396 impressions and 320,428 video plays. The campaign includes videos and marketing, with an infusion of Te Ao Māori guided by a cultural advisor.

68. The establishment of the Leadership Advisory Group undertook its first hui with representatives from Priority One, Tauranga Chamber of Commerce, Ngāti Te Rangi, Ngāti Te Ranginui, Department of Conservation, MBIE, EnviroHub, Zespri, Bay Trust and others.

69. TBOP’s Annual Report will also be presented to WBOPDC at their Council meeting on 4 November 2021.

Local Government Funding Agency (based on final, audited report)

70. The audited Local Government Funding Agency (LGFA) Annual Report 2020/21 is provided as Attachment 5, with a cover letter to shareholders provided as Attachment 6.

Summary of Financials

71. LGFA has delivered an increased Net Operating Profit of $12 million for the year ending 30 June 2021 (compared to $10.6 million in 2019/20) and shareholder equity now at $94.7 million. 72 out of a total of 78 councils are now approved borrowers.

72. LGFA bonds on issue as at 30 June 2021 were $13.68 billion across maturities from 2022 to 2037.

73. Lending to councils during the 2020/21 year was at a record $2.86 billion.

74. LGFA declared a dividend of 3.426% (previous year 3.51%). This represents a pay payment of $63,928 to Council, which was received on 3 September 2021.

Summary of Performance

75. Key performance indicators required LGFA to provide interest cost savings relative to alternative sources of financing. LGFA has continued to borrow at very competitive interest rates relative to its market equivalent borrowers:

Source: LGFA (SSA are AAA rated Supranational, Sovereign and Agency)

76. In February 2021, Standard and Poor’s upgraded LGFA’s ratings to AA+ foreign currency and AAA local currency. Both ratings are on ‘stable’ outlook and the same as the New Zealand Government.

77. One performance target was missed:

· Achieve 85% market share of all council borrowing in New Zealand ~ achieved 79%. This generally is dependent on the level of lending to Auckland Council.

Strategic / Statutory Context

78. The Local Government Act 2002 requires council-controlled organisations to provide audited annual reports to their shareholders. The annual reports are helpful when developing Council’s Letters of Expectation for its council-controlled organisations for the following year.

79. Council’s partnerships with its council-controlled organisations help deliver our community outcomes and facilitate improved quality of life, quality of economy and sound city foundations.

Options Analysis

80. There are no options as Council is only receiving the 2020/21 draft and final Annual Reports for the council-controlled organisations.

Financial Considerations

81. The financial considerations are outlined in the main body of the report and attachments.

Legal Implications / Risks

82. The Annual Reports meet the legislative requirements for the council-controlled organisations to provide Council with an overview of performance against their Statements of Intent on both financial and non-financial measures.

Consultation / Engagement

83. No consultation or engagement is required or planned.

Significance

84. The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy. Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

85. In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a) the current and future social, economic, environmental, or cultural well-being of the district or region;

(b) any persons who are likely to be particularly affected by, or interested in, the matter; and

86. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the decision is of low significance.

ENGAGEMENT

87. Taking into consideration the above assessment, that the issue is of low significance, officers are of the opinion that no further engagement is required prior to Council making a decision.

Next Steps

88. The council-controlled organisations will be informed of Council’s consideration of this paper.

89. Final copies of audited Annual Reports will be provided by BVL, BOPLASS, TAGT and TBOP by the extended statutory reporting timeframe of 30 November 2020.

90. Any issues raised will be considered during the upcoming development of the annual Letters of Expectation for the 2022-2025 Statements of Intent, which will be presented to Council for approval in December 2020.

Attachments

1. BVL Draft Annual Report and Financial Statements 2020/2021 - A12906063 ⇩

2. BOPLASS Draft Annual Report and Financial Statements 2020/2021 - A12906041 ⇩

3. TAGT Draft Annual Report and Financial Statements 2020/2021 - A12906032 ⇩

4. TBOP Draft Annual Report and Financial Statements 2020/2021 - A12906074 ⇩

5. LGFA Final Annual Report and Financial Statements 2020/2021 - A12906202 ⇩

6. LGFA Letter to Shareholders for Annual Report 2020/21 - A12906524 ⇩

Option	Advantages	Disadvantages
1	Allow use of oxadiazon at Blake Park over summer 2021/22 (recommended)	· Provides for a high-quality playing field for international cricket · Supports success of international cricket at Bay Oval/Blake Park (providing for future events with economic benefits) · Consistent with policy objective to provide for effective vegetation management · Consistent with approach to sports field management by other local councils · Product already successfully trialled in Tauranga	· Inconsistent with current schedule of approved products
2	Allow use of oxadiazon at Blake Park over summer 2021/22, subject to conditions
3
Do not allow use of oxadiazon at Blake Park over summer 2021/22 (status quo)	· Consistent with current schedule of approved products	· Potential failure to provide high-quality cricket playing field · Inconsistent with policy objective for effective vegetation management · Inconsistent with practices at other councils

Ordinary Council meeting Agenda

4 October 2021

11.3 Executive Report

File Number: A12950490

Author: Gareth Wallis, General Manager: Community Services

Nic Johansson, General Manager: Infrastructure

Susan Jamieson, General Manager: People & Engagement

Barbara Dempsey, General Manager: Regulatory & Compliance

Paul Davidson, General Manager: Corporate Services

Christine Jones, General Manager: Strategy & Growth

Authoriser: Marty Grenfell, Chief Executive

Purpose of the Report

1. To provide updates on key projects and activities.

Recommendations

That the Council:

(a) Receives the Executive Report;

(b) Rescinds the recommendation from 27 October 2020, to remove the tree outside 15 Lavender Place.

Community Services

Elizabeth Street and Spring Street Carpark

2. As previously reported, the Council-owned Elizabeth Street and Spring Street carpark buildings require seismic strengthening.

3. Building consent applications have now been lodged for the seismic strengthening plans for both carparks and an opportunity exists to complete the seismic upgrade works within the current financial year.

4. Following recent ROI and RFT tender processes on other construction projects, there is real concern in the market that main contractors are so busy, they may be less willing to participate in new tenders. Staff are therefore working with the market to mitigate this by selecting three suitably-experienced contractors to tender the work as soon as possible.

Lavender Place

5. At the request of local residents, a resolution was passed by Council on 27 October 2020 to remove the two tallest trees on Lavender Place. One of the trees has since been removed and replaced with a Lagerstromia indica (crepe myrtle).

6. During the consultation phase of the works, the resident at 15 Lavender Place, the location of the second tallest tree, wrote to council indicating he would like the tree to remain. This resident stated, “I felt rather neutral on the issue and did not feel very informed, nor did I fully understand the impact that this could have on myself.”

7. Our staff made the decision to hold-off removing the second tree after receiving this new information, and now request to have the original decision to remove this tree rescinded. No further complaints have been received since the first tree was removed.

Arts and Culture

8. The Heritage Collection team has developed a Community Engagement plan, which proposes a range of ways to grow connections between the Heritage Collection and the community. This plan has been developed in response to the new allocation of budget through the LTP to enable temporary exhibitions of items from the collection. Heritage Collection staff are recommending that their plan will enable several ‘touchpoints’ for the community to learn more about the collection, and to grow knowledge of Tauranga’s rich cultural history and heritage. The plan includes increasing the capacity of “Hands On Tauranga”, the collection’s education outreach programme, a move that will enable the team to respond to an expected growth in requests from schools as New Zealand history is given greater prominence in the NZ Curriculum. The plan will make use of Council sites in high traffic areas, such as Baycourt, the airport and the temporary library to display collection items. Plans are also being made for a “Heritage Collection Live” event at Baycourt, which will enable the community to learn more about the collection and get up close to a range of taonga. The engagement plan for the Heritage Collection includes a marketing strategy aimed at raising the Community’s knowledge of the collection, with the intention of increasing the number of visits to our online collection, which now comprises more than 10,000 individual items.

9. Staff held a positive meeting with Paula Gaelic, the Director of the Western Bay Museum, in response to her LTP submission about exhibiting items from the collection in Katikati. Staff are now exploring how the Western Bay Museum and the Heritage Collection could work in partnership on a range of initiatives, which will likely include some display of items from the Heritage Collection. This will be on a ‘loan’ basis, as opposed to the full exhibition initially suggested in the Western Bay Museum LTP submission.

10. The first round of Creative Communities funding has recently closed, with Creative Bay of Plenty receiving a record 49 eligible applications for the first of two rounds this financial year. Creative Bay of Plenty convenes a funding panel to assess the applications, with applicants invited to present their projects in person for further discussion. A total of $147k in funding was sought by applicants, with a budget of $48k to be allocated in this round. A further round will be held in March 2021. The Creative Communities scheme is a partnership between Creative New Zealand and local councils.

11. Staff held a workshop with the board of Creative Bay of Plenty (CBOP) following the strategic review undertaken by Council in February this year. The review had raised some constructive feedback for CBOP, who have undertaken a review of the services that they offer to the sector. CBOP’s General Manager, Eric Holawacz, has recently resigned from the organisation and the board is not looking to appoint a replacement General Manager at this time. Arts and Culture staff have proposed that a number of functions previously carried out by CBOP could be delivered ‘in-house’ by Council, and the implications of this are currently being worked through. There is agreement between staff and CBOP that responsibility for the setting and monitoring of the arts and culture strategy should be the responsibility of Council. There is also opportunity to improve some processes around the Creative Communities funding, as Council has invested in “SmartyGrants”, a grant-making administration and customer relationship management (CRM) system. Bringing the Creative Communities scheme into SmartyGrants would likely create benefits for the community, with a streamlined application process, consistent with other council funding programmes.

12. The Art Gallery opened its signature 2021 exhibition, “Defending Plurality’, a group show curated by leading artist Shannon Novak. The exhibition represents ambitious programming for the gallery, giving space and support to a wide range of LGBTQI+ artists whose work has not been seen in Tauranga before. The exhibition extends beyond the gallery’s walls, with ‘satellite’ installations at a range of spaces, including Baycourt, Bayfair and the Historic Village. The exhibition has been covered widely and positively by regional and national media. Whilst the COVID lockdown will certainly impact visitor numbers, the gallery has re-opened at Alert Level 2 and is enjoying lots of interest in this signature show.

Community Partnerships

13. Staff have started the recruitment process, in partnership with Te Rangapū Mana Whenua o Tauranga Moana Partnership, to appoint a mana whenua representative to the Tauranga Art Gallery Trust Board, with an application closing date of 1 October 2021. Staff are also working with Western Bay of Plenty District Council to do the same for Tourism Bay of Plenty (TBOP), to appoint a replacement for Oscar Nathan who has been appointed General Manager. Staff will carry out a similar process for Bay Venues Limited in 2022.

14. Our Funding Specialist has been working closely with Digital Services to pilot the SmartyGrants software as part of the launch of the first round of the new Community Grant Fund and Match Fund on 27 September 2021. SmartyGrants will enable a far better user experience for applicant groups and significantly improve our capability to manage all steps associated with funding, including reporting and monitoring. 

15. Through the Tauranga/Western Bay Welcoming Communities programme (in partnership with Education Tauranga and Global Enigmatic), staff are recruiting participants for the sub-region’s Global Ambassadors’ pilot programme.  The intent is to grow and inspire a group of culturally-diverse young leaders through certified training and mentoring and give them the opportunity to design and deliver self-driven cultural initiatives to their schools and local communities, while promoting intercultural awareness and global citizenship.

16. The Centre for Health – Manawa Ora – has been contracted as the research partner to lead the co-design of the first phase for the It’s Not OK campaign community discovery project in Tauranga.  This includes peer-led insight gathering from men having conversations with men, about what it means to live violence-free with wellbeing and mana intact, and the positive ripple effect that has on whanau and the wider community.  This project is a partnership between MSD and our Connected Communities Advisor.

17. The Connected Communities Advisor is working with the Spaces and Places team and Veros to undertake a feasibility study on the proposed Pukehinahina Community Centre.  The Gate Pā Stakeholders group has been invited to be part of the co-design workshops.

18. Under the Kāinga Tupu work programme, the final reports for the Tauranga Food Security Hub and WBoP Food Security Plan have been received.  The Kāinga Tupu Annual Outcomes Report is now completed and will be launched to the sector at the end of September 2021. 

19. The Kāinga Tupu Advisor is currently working on developing a digital data dashboard on homelessness, scoping opportunities for the use of elder housing sale funds for community housing outcomes, and bringing together MSD, BOPDHB and our Bylaws team to scope the Community Outreach programme. 

20. In collaboration with BOPDHB and the Tauranga Youth Development Team, planning is underway for Fluro-Fest on 14 November 2021. A celebration of the National Mental Health Awareness Week, this year’s event is focused on Take time to Kōrero – an afternoon of fun, family-based activities at Memorial Park, focused on supporting positive engagement.

21. The Community Partnership team, in conjunction with Tautoko Mai Sexual Harm Support Service, has delivered “It’s Our Business”, a half-day online training course tailored to address the responsibilities and opportunities of hospitality businesses to actively prevent sexual harm. The event was attended by licensees and event promoters and their staff who want to contribute to creating safe spaces at venues and events, and to take practical steps to prevent sexual harm. Positive feedback was received, and further courses are planned.

22. Our Kaitohutohu Hapori Māori is working with the Transport team to bring to life tipuna (ancestors) in the Matapihi Community, both historic and recent. Local Tohunga Whakairo, Stu McDonald, will engage with the community to design pou that recognise and share important stories throughout Matapihi.

23. A working group has been formed with representatives from across council to develop a working party to address racism in the community; the project provides the opportunity to look internally and ensure we are creating a space where diversity and inclusion is welcomed and celebrated.

24. Simpson Grierson, through Project Tauranga, are supporting the development of the new Valli Rebel Creative Trust, the overarching umbrella organisation for Cult Cinema Club (2017) and Sonic Cinema (2018), led by Melanie Mills as Executive Director and Treasurer. The Trust’s aims are to support arts and culture in the city (Cult Cinema) and enable neuro-diverse people who would not otherwise have the opportunity to get out to see a film (Sonic Cinema). Simpson Grierson said that Sonic Cinema is a fabulous initiative to provide a more accessible world, that aligns with their pro bono focus on helping not-for-profits that work where there is disadvantage.

Libraries

25. The sudden COVID-19 lockdown saw non-service delivery staff move to working from home, performing tasks such as placing orders for new items, metadata for digitised items, and answering customer queries by phone and email.

26. Libraries re-opened at Alert Level 2 on Thursday 9 September 2021 and staff have enjoyed reconnecting with customers. Over 12,000 items were returned on the first day, and more than 8,000 issued. Similar to 2020, the lockdown saw a spike in the use of the library’s online resources, particularly eBooks, eAudiobooks and family history resources.

27. Social distancing and other safety guidelines required during Alert Level 2 have led to a pause on library programming (including the scheduled Mahuru Māori events) and the library’s social media pages have been used as a way to get content out to the public, where possible. School holiday materials are being packaged to be available as take-home packs, if we remain at Alert Level 2 during that time.

28. Some notable events were able to happen prior to the lockdown, including:

· The launch of Cinemates; a fortnightly movie-watching get-together at Greerton Library aimed at getting socially-isolated people who would prefer not to take part in high interaction activities out of the house. The first two sessions were a great success with a variety of people attending.

· Two successful Family History Month events; an Ancestry.com tutorial at Greerton Library, and a public talk at Pāpāmoa Library. Both events were well-attended and positive feedback was received from attendees (see photos below).

· The monthly ‘The Past and the Curious’ series, presented by the library Heritage Specialists, was attended by 17 people in August. The topic was local peace groups and a particular highlight was members of the audience recognising themselves in the historic images presented. The September talk on the history of The Strand was delivered via Facebook, due to the lockdown.

· Previously scheduled resilience workshops with Lance Burdett were held online and attended by 69 library staff over two sessions. The staff appreciated the reminders Lance gave on maintaining their own mental wellbeing, and strategies for staying safe while interacting with the public.

29. Work on the digitisation of items for the Pae Korokī online archive continues, including a further 5,000 images from the Gifford Cross photographic collection. Items from 10 archival collections, along with four publications and two framed maps have been prepared to be sent to Auckland for digitisation when alert levels allow. In the six weeks from early August to mid-September 2021, Pae Korokī received approximately 30,000 page views from 5,317 users.

30. As the design of the temporary library at the Goddards Centre progresses, staff from the Content and Heritage & Research teams continue to work on preparing collections for transportation to the new space.

Spaces and Places

31. There is progress in improvements to the Dive Crescent area, with the recent demolition of the Iron Design building. Amenity enhancements to the area will be undertaken prior to Christmas. The strengthening and refurbishment of the Cargo Shed building is also progressing, to allow the building to be made available for public use early in 2022. Transfer of title for the land on the seaward side of Dive Crescent to Council and the Otamataha Trust is in its final stages with LINZ.

32. Construction of the Kulim Park upgrade commenced as soon as Alert Level 4 restrictions were lifted. The first stage involves building a shared pathway linking Harbour Drive to Kulim Park, completing a missing link in the shared pathway network along the harbour edge. The bulk of works (including alterations to the existing road, carparking and new pathway) are planned to be completed prior to Christmas.

33. Works associated with the Elizabeth Street upgrade are focused on the creation of the linear park on the south side of Elizabeth Street, which requires closure of the westbound lane until approximately March 2022. The streetscape upgrade is being constructed in tandem with the Farmers development and continues to be impacted by changes to the Farmers programme. Delays associated with lockdown are currently at around three weeks, but could be impacted further due to constrained supply while Auckland has been at Alert Level 4. Communication with stakeholders continues on a weekly basis.

34. The resource consent for the Omanawa Falls project has been publicly notified, with hearings anticipated in November/December and a consent decision expected by February 2022. The project team is in the process of confirming a preferred contractor for the cliff stabilisation and access track works, so that detailed design can be completed while the consent process is underway.

35. An earthworks contractor has been appointed for the Kopurererua Valley Stream Realignment project and the project team has commenced a series of engagement workshops with the contractor around the project design and construction methodology, working towards commencing work onsite in November.

36. Our Place, including the Re-maker Space, will continue to operate at the Civic Precinct site until early-February 2022. This timeframe has been extended from October 2021 to allow for a busy schedule of events, and to support activation and vibrancy in the city centre through the summer months. The Our Place team will adapt to any alert level restrictions but are confident an exciting programme of events will still be delivered. Our Place will then be decommissioned to make way for demolition activity ahead of redevelopment of the broader Civic precinct site.

37. The impact of lockdown on sporting fixtures has meant staff have worked closely with Bay of Plenty Rugby and the other main sporting codes at the Domain (athletics and cricket) to allow a longer rugby season. This has impacted the break between the winter and summer seasons, meaning that there is not enough time to undertake the grandstand redevelopment project this calendar year. A compromise has been agreed where the works are planned to be undertaken in the next gap between summer and winter seasons in March/April 2022.

38. Improvements to the Te Ranga historical site have commenced, with clearance of the hedge along the road boundary in preparation for installing an earth bund. Other work includes weed clearance along the escarpment in preparation for additional native plantings. Schools are engaged with the project to assist with planting new trees and learning about the history of the site through partnership with the Pukehinahina Trust. Other improvements, including car parking, interpretation and cultural art elements are currently in the design phase.

39. The first hikoi/site walk along the possible route of the Marine Parade Coastal Path was held on Friday, 10 September, involving mana whenua representatives, design consultants and our staff. Conditions were cold but it proved to be a highly productive visit with lots of insights gained, which will provide an excellent basis to move quickly to the next stages of the project.

40. Mauao had four volunteer planting days before the latest lockdown. Over these four days, 214 people, including 113 children from local Kura, planted approximately 3,745 native trees. This effort equated to approximately 450 volunteer hours. The restoration of Waipatukakahu is progressing, with the first stage of planting now complete. This included 900 native grasses, 300 muehlenbeckia, 8 tī kōuka and one totara.

41. Work has restarted on the Elmes Reserve to Bay Street walkway post-lockdown, with the final stages of the project involving fitting and cutting to shape the top treads. The project is expected to be complete in early-October.

42. A wide variety of renewals and minor capital projects are underway and/or have been recently completed by the Parks and Recreation team, including:

· The annual early-spring reserve prickle and broad leaf weed control programme commenced in August, with over 60 neighbourhood and high-use reserves across the city receiving one surface spray to increase turf quality, and to control prickle weeds;

· The waterfall track at McLaren Falls Park has been renewed, resulting in a much better walking experience;

· The Accessible Changing Facility at Mount Drury Reserve is up and running again, with the final touches being completed in the next few weeks. Staff are planning a public opening in late-October.

· A walkway that accesses Johnston Reserve and is used daily by tamariki has been renewed. This improvement has made the highly-used track safer for all users.

· The final part of the Tuihana Reserve playground build is underway, with concrete poured, turf paths installed and wet pour safety surfacing undertaken at the end of September;

· Our contractors have taken back the task of line-marking fields for all the community sporting codes. This has received very positive feedback from a range of clubs and organisations, as it saves the club material costs and volunteer time. Because agrichemicals will not be used to burn in the lines for longer periods, the transition from one season to the next will also be a lot smoother.

Venues and Events

43. Work with tenants at the Historic Village continues, with 30 of the 52 tenants having now been engaged in conversations regarding rent and outgoings changes, as well as ensuring their operations align with the village strategy and if not, considering what options are available.

44. The Historic Village is working with event organisers to cancel or postpone activities due to uncertainty around the current COVID-19 restrictions. Ocktober Beer Festival has been cancelled for 2021 and the Tauranga Fringe Festival, delivered by The Incubator, has been postponed until 15 January 2022.

45. The sudden move to Alert Level 4 and the immediate closure of Baycourt has had a considerable impact this period. As at 15 September 2021, 17 events scheduled to occur at Baycourt between August and November 2021 have been affected. All but one of these events have been rescheduled, with some locking in dates as far out as August 2022. Projected revenue loss between August and November 2021 is approximately $112,000. With the vast majority rescheduling rather than cancelling, forecasted revenue is deferred to later periods, but future earnings will be impacted due to unavailability of hire space.

46. Baycourt re-opened the Box Office on Monday, 13 September 2021 under Alert Level 2 protocols, with a small number of customers visiting daily to purchase tickets to future shows, or to arrange refunds for cancelled and/or rescheduled shows. Alert levels permitting, staff are scheduled to deliver our first (and possibly only) event under Alert Level 2 conditions – Tauranga Musica’s Argyle Trio – on 21 September 2021. This will be a valuable opportunity to test/asses our revised Delta Level 2 operating procedures.

47. The recent COVID-19 community outbreak resulted in a number of citywide event cancellations, including the 2021 Anchor AIMS Games, for the second year running.  The event’s cancellation was a huge disappointment for the AIMS Games Trust, intermediate and middle schools across the country, and for the thousands of young athletes who were looking forward to competing. The games contribute significantly to the Bay of Plenty economy, with the 2019 tournament injecting approximately $6.5 million locally and generating almost 75,000 bed nights.

48. Staff are working closely with several event organisers, other teams within Council and key city stakeholders, to work through postponement options for events that were displaced by the recent COVID-19 community outbreak.  With an already busy summer calendar of events planned, it has been challenging to reschedule these usually off-season events – many of which were also impacted in 2020 – in the peak summer months.

49. Additionally, staff are supporting events that have received funding through the Event Funding Framework to roll their funding across to their postponement dates, or for those events whose financial position has been negatively impacted through cancellation, to apply to retain all or part of their funding as per Council’s Event Funding Framework COVID-19 cancellation guidelines. 

50. The fourth annual T20 Black Clash will be hosted for the first time at Bay Oval on Saturday, 22 January 2022.  This major event is a fantastic way to showcase Tauranga Moana to a wide audience.  The event sold out at Hagley Oval in Christchurch earlier this year and had a broadcast audience of 1,057,000 tuning into TV1.  The T20 Black Clash was publicly announced on Wednesday, 22 September 2021, with tickets going on sale the following day.

Infrastructure

Kennedy Road Embankment Dam Project

51. The Kennedy Road Embankment Dam Project (KREDP) is one of a suite of a stormwater projects which will effectively and sustainably manage stormwater in the catchment of the Nanako Stream, Pyes Pa West – specifically in the area that extends from Kennedy Road to Freeburn Road. The objective of these projects is to limit the potential impacts of flows from existing and future development around the Nanako Stream, and on other land and properties in the catchment.

52. The KREDP will enhance the environment through improved water quality, mitigate flooding effects from rain events and allow for the delivery of approximately 108 housing lots. It includes the strengthening of the current Kennedy Road embankment to meet dam safety design standards and the installation of a new 2500mm diameter culvert to accommodate a 1,000 ARI (Annual Recurrence Interval) event.

53. To install the culvert, we opted to use pipe jack/thrust technology. This trenchless option allows the works to be completed within one year, facilitating faster delivery of much needed housing for the city, as well as enabling us to keep Kennedy Road open and operational during the works, and not require reconstruction of the road.

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54. The above photo shows the hydraulic ‘jacking’ operation in action, where the pipe is being pushed through the earth with over 700 tonnes of force.

55. Some internal welding was required during installation. The welders were required to wear a full self-contained respirator and protective gear, and we had a forced ventilation system and gas detection in place.

56. After each 6-metre thrust, we needed to clear out and remove the material from inside the pipe. This material was removed via a smaller pipe (600mm) within the larger pipe to rotary draw back the material into the skips on the side.

57. The thrusting work is complete, with the overall project due for completion in December.

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Totara Street Cycleway

58. The project has been on hold while we awaited confirmation of funding approval from Waka Kotahi. Funding was confirmed on 21 September 2021.

59. In the meantime, we finalised the design and tendered the works so construction can get underway as soon as possible after funding was confirmed.

60. Works will need to be planned to accommodate activities at the Mount over the summer period, as well as port activities and peak freight movements.

Cameron Road

61. The Cameron Road project has reached a milestone in awarding a contract to the Cameron Road Joint Venture, which is a joint delivery by Fulton Hogan and Downer for construction of Stage 1 of the Cameron Road development (Harington Street to 17th Ave).

62. Construction onsite began last month (13 September), and will continue through to October 2023. The works will be spread over three active sites and will progressively move from north to south along Cameron Road, starting on the east side, before then heading south to north on the eastern side.

63. Sewer replacement works to upgrade around 3km of pipes began earlier, between Elizabeth and Harington Streets, in preparation for the main construction works to follow.

64. The process of looking at potential options for Stage 2 of Cameron Road development (17th Ave to Barkes Corner) will get underway this calendar year. We will engage with the community on the various options next year, to gauge their desires and aspirations for this section of the road corridor.

Cycle Counts in Lockdown

65. Cycling remained a popular pastime and source of exercise during the Level 4 lockdown, according to our data.

66. Overall, our counter network recorded a 106% increase in cycle counts compared to the same period last year. This is similar to the results of the Alert Level 4 lockdown in April 2020, when an increase of 123% was recorded, compared to the same period in 2019.

67. Our counter on Marine Parade recorded the largest increase, with volumes up 267%.

68. Information about our other sites are provided in the graph below:

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Transport System Plan (TSP) Update

69. The TSP programme has been finalised. Work had been underway on the top six projects to develop the Point of Entry documents for Waka Kotahi, so these were ready to go as soon as the National Land Transport Fund (NLTF) was announced and confirmed. The top six projects are:

· Hewletts Road sub-area Single Stage Business Case

· Bus Service and Infrastructure Single Stage Business Case

· 15th/Hewletts/Welcome Bay Road

· Bus Fares and parking Policy

· Travel Demand and Travel Behaviour study

· Cameron Road Stage 2

70. We are currently working through the implications of the funding availability from the NLTF over the next three years, with regard to: what projects are to be funded, what projects are not funded and the implications regarding the wider programme.

Kerbside Collections Update

71. Our kerbside collections have been underway for just over two months. We saw a blip in our journey to reduce waste to landfill due to the level four lockdown, but as a city we are doing even better than expected in reaching our goal.

72. During level 4 lockdown no glass or food waste was collected due to the multiple touch points when emptying those bins. The recyclable material went to landfill due to the manual handling required to process. As the collection system does not work as well when all four bins are not being used for two weeks, after the end of level 4 we allowed residents to take two rubbish bags per car for free to our transfer station. Over the lockdown period, and in the two weeks that followed, we were also more lenient on overfilled bins, appreciating the fact that people would have accumulated waste.

73. The community was very understanding during this time. Despite all the changes, our call centre received lower than normal volumes of calls, and most of these were about what level 3 would mean for rubbish collection.

74. Below are our weekly tonnage statistics for the first two months. Note the impact of the level 4 lockdown, which occurred at midnight on Tuesday 17 August.

Week	Refuse	Glass	Food Waste	Recyclables	Green Waste	Total
5 July - 11 July	151.63	72.88	47.7	105.82	9.8	387.83
12 July - 18 July	238.94	78.61	72.09	140.02	28.6	558.26
19 July - 25 July	243.38	75.95	77.83	112.42	41.95	551.53
26 July - 1 Aug	273.5	68.08	83.4	101.02	60.05	586.05
2 Aug - 8 Aug	272.92	79.54	87.59	103.96	44.55	588.56
9 Aug - 15 Aug	230.69	81.54	82.63	105.16	25.46	525.48
16 Aug - 22 Aug	366.27	37.12	33.01	41.9	74.88	553.18
23 Aug - 29 Aug	460.06	0	0	0	75.84	535.9

75. We have continued to see much higher than expected sign-ups to our Garden Waste service.

76. Our initial stretch goal had been for 10,000 collections per month. We are now at 15,500 collections per month and are still seeing an average of 25 sign-ups per day for this service.

77. This is a fantastic result as this means even more material is being diverted from landfill.

78. As the garden waste demand was unexpected, there were some delays with delivering bins. EnviroWaste worked through the backlog quickly, and we are now back to business-as-usual bin delivery timeframes for all bin types or damaged bin repairs.

Te Maunga Transfer Station

79. While the level 4 lockdown impacted visits to the transfer station, prior to lockdown we had seen a reduction of 2,500 visits to the transfer stations each week pre- and post-closure to the public of Maleme Street and the introduction of kerbside services.

80. Combined with all compacted commercial waste going to Maleme Street, this has meant lower than expected congestion at the Te Maunga transfer station. There is, however, more congestion than previously at Te Maunga.

81. Congestion increased significantly in level 3 due to the restrictions in place.

Matapihi Wastewater Overflow

82. On 21 April this year, we were notified by our maintenance contractor that a wastewater overflow was occurring at the bottom of Matapihi Road, with overland flow into the harbour. This was the result of an isolation valve not being closed during routine maintenance on an air valve.

83. The immediate response focused on: containing the overflow while the issue was fixed; notifying Bay of Plenty Regional Council, Toi Te Ora and RMA representatives from local Hapū and Iwi; and having staff onsite to make sure nearby residents and members of the public were kept informed and offered assistance where needed.

84. Following the incident, a hui was held at Waikari Marae on 28 April to enable the Matapihi community to discuss their concerns with staff and the commissioners regarding the overflow and the wastewater pipeline that transfers wastewater from Memorial Park pump station to Te Maunga Wastewater Treatment Plant. The outcome of the hui was that a steering group comprising of community kaumatua, professionals and our staff would be set up to review the events that led to the overflow, the outcomes from the incident investigation and the preferred next steps to prevent such an incident occurring again.

85. The steering group has four members (two members each from Ngāti Tapu and Ngāi Tūkairangi) nominated from the Matapihi community and will include the Manager: Drainage Services, assisted by further staff depending on their specialisation. The initial meeting of this group has been delayed and is due to be rearranged now that COVID restrictions have eased.

86. Work on reviewing and finding improvements to the maintenance processes around the air valves on the pipeline has continued in the interim, with the aim of reporting back to the group. The comprehensive review had a number of recommendations that have been implemented, including: the addition of further visual aids such as knife gate valves and tags to enable easier identification of when valves are open or closed, and increased frequency of valve inspections between maintenance.

87. The impact of odours from the pipeline at certain times of the day on Te Kura o Matapihi was also raised at the hui and staff have continued to work on finding a long-term solution to this issue. The current odour filters installed are small and the filter media is saturated too quickly, leading to odours.

88. Staff have met with school representatives and worked towards a preferred option. A much larger unit is being manufactured and will be installed as soon as it is delivered.

Wairoa Cycleway Connection Update

89. We have designed a new two-way cycleway solution that can be constructed on the State Highway, to connect between Carmichael Road and the off-road facility on the west side of the Wairoa River.

90. This new option became possible because Waka Kotahi is considering a speed reduction on the State Highway, which would increase safety for users of the cycleway. This option has been discussed with Waka Kotahi and they are comfortable that it could be implemented, if adjacent stakeholders are supportive. We have been in discussion with key stakeholders and outlined how the new option can be accommodated, without the need for land purchase.

91. The stakeholders have been discussing their collective view on the option, but due to the COVID lockdowns, they have been unable to hold the final meeting, which is delaying a final decision.

92. If agreement can be reached, the new facility could be designed ready for implementation once the speed limit is reduced. The option will require the new clip-on pedestrian bridge to be swapped to the upstream side of the bridge or a new pedestrian bridge to be also installed on that side.

People and Engagement

Community Relations

93. Most of the new community relations team have now taken up their roles and are starting to implement the new community-focused strategy. Initial priorities are around engagement, including establishing a cross-council engagement network to share best practice and to reduce isolated, project-based working. The CRM (Customer relationship management) system is being developed and will be a key tool to enable effective engagement across the council. In November, the team will also undertake IAP2 (International Association for Public Participation) engagement training.

94. The media report from August continues to show Council attracting more positive media coverage and a much-reduced focus on criticism of council, particularly on culture and the democratic mandate. There is more positive reporting on the kerbside scheme and good coverage of the city's economic prospects following the passage of the LTP, with solid volumes of positive reporting on events and transport themes also.

95. The CRM system being developed will centralise all stakeholder relationship management in one place, with a single view of each stakeholder. This will enable a more-effective and more-coordinated engagement approach with the community. Better engagement with the community to ensure the right people are engaged with at the right time is a key deliverable of the Community Relations Strategy. Ultimately, the CRM allows a new approach to stakeholder management that is expected to improve trust in council to deliver what is needed.

Te Pou Takawaenga

96. We had a successful Te Wiki o te Reo Māori language week between 13 and 19 September. A comprehensive programme of activities, including daily te reo quizzes, mihimihi, pepeha coaching sessions and sharing of common whakataukī (proverbial sayings), were designed to encourage the use and normalisation of te reo throughout Tauranga City Council. Some teams also designed their own extended activities to suit their area of work. Kia kaha ki te reo!

Goddards Centre

97. Preparation for the relocation of the Service Centre and Library to the Goddards Centre is progressing well. The lease for the Goddards Centre has been signed for four years to July 2025. The concept design has been completed and the project is now moving into the design phase. During September the Health & Safety team will be working with the project team to carry out safety in design risk and mitigation control identification. It is expected that the fit out will commence in October.

98. A small team including Warren and Mahoney Design, the Heritage team and Te Pou Takawaenga have met alongside Project staff and representatives from Ngāi Tamarāwaho and Ngāti Tapu to develop cultural narratives and fit out for the new Library and Customer Services Centre at Goddards Centre. The following Kaupapa “He Puna Manawa – He puna wai, he puna kōrero, he puna mātauranga, he puna ora. An oasis – A water spring, a spring of information, a spring of knowledge, a spring of life” and name He Puna Manawa was settled upon to capture the historical and future features of the area, as well as the look and feel of a living and vibrant community hub.

Democracy Services

99. The Representation Review Initial Proposal is out for public submissions from 3 September to 4 October 2021. We will hear submitters on 18 October and deliberate to resolve a final proposal on 8 November.

100. Council and Committee meetings during COVID-19 Alert level 2 were able to be held in the Council Chambers from 13 September 2021. The public could attend subject to social distancing, which reduced the number of people that could physically attend, with mask wearing and contact tracing requirements implemented.

101. The Epidemic Preparedness Notice was extended to 19 December 2021. This amends the legislation relating to attending council and committee meetings via audio or visual link and enables those who attend remotely to be counted towards the quorum of meetings. It also enables meetings to be open to the public through online access and to post meeting agendas, reports and minutes on council websites rather than physical locations. There are other provisions that enable various actions to occur remotely via audio/visual link, such as new members taking oaths of office and rates rebates statutory declarations and Order in Council mechanisms to enable changes to by-election timing.

Human Resources

102. The 2021 remuneration review process is complete including the ratification of the Tauranga City Council Collective Employment Agreement.

103. Recruitment is well underway for the additional LTP roles, which enable the delivery of the LTP programme of works. Approximately 40% of roles are now either recruited or in the recruitment process.

104. A monthly HR dashboard has been developed and will be implemented at the start of October. This provides insights at General Manager level across a range of measures and will be reported quarterly to the Executive.

105. A new exit interview process has been implemented, providing insight into why people leave council. This process uses council licensed technology at no additional cost, creating a cost saving and enabling real-time data, which will be included in the HR dashboard.

106. A pulse survey was conducted in late-August, with the results being in line with previous pulse surveys, albeit a small drop in the personal wellbeing questions.

107. All recruitment has continued through COVID lockdowns, and inductions delivered virtually.

Customer Services

108. The Team has received much positive community feedback since the beginning of August about their presence at the libraries for rates payments and assistance with rates rebate applications. A range of communications have been planned to make the Papamoa Community aware of the new Service Centre site operating within the Papamoa Library. This includes an article in the Papamoa Post, which will reach every household; digital banners sent to Sunlive and NZME; social media and web updates; advice in upcoming council water and rates communications to residents; and notifications to local ratepayer associations.

109. LIM and property file applications dropped significantly during alert level 4 lockdown. Since moving to alert level 2, however, applications have quickly reached pre-lockdown numbers.

Health and Safety

110. An investigation and response to a notifiable event (gas leak) at the crematorium highlighted the need to develop Standard Operating Procedures for high-risk activities. The immediate gas leak risk has been mitigated and work is ongoing to develop procedures for use by the staff.

111. The HSW team is reviewing clauses and requirements embedded into our construction contracts (NZS3910) to ensure these provide appropriate risk apportionment and are reasonable for contractors.

112. We have been thinking differently about the management of health and safety risk in our libraries, due to the number of aggressive customer incidents. This has resulted in a series of workplace design and innovation workshops. The results feed into the design of our temporary library in the Goddards Centre, as well as how we can improve our library services for everyone across the city. Opportunities to use the same methodology across other locations are being explored (e.g. with Animal Services).

113. Our HSW strategy and introduction to the Business Leaders Health and Safety Forum Mental Health and Wellbeing (MHW) Framework has been delivered to the Executive and Senior Leadership teams. The MHW framework provides our managers and people with a tool for identifying the risk of harm and guides management of the risk, to ensure our people thrive at work.

114. In the last week of September we recognised Mental Health Awareness Week. The theme this year was ‘take time to korero’, to talk to the people around you, especially the chats that make you feel good. This theme resonated well with two national lockdowns under our belts and the physical and social isolation that came with them. We introduced Coffee roulette, which randomly matches staff with another staff member from another team or area of Council. We were also joined by Jehan Casinader who spoke to all staff about diversity and wellbeing and his own unique insights about how we can create safe, inclusive spaces for our staff at Council, and our wider community.

Regulatory and Compliance

Environmental Regulation

Regulation Monitoring

115. Infringement levels have remained steady despite lockdown (with only a 9% decrease in parking infringements issued during the month of August). The general trend is that infringements are on the increase and if the lockdown had not happened, it is reasonable to suggest that we would have issued more parking fines YTD than last year.

116. There has been a 38% increase in complaints relating to homelessness (18 in August 2021 compared with 13 in August 2021). This increase could be attributed to both the effects of lockdown and a continued lack of emergency housing in the region. Our staff continue to provide support, in particular connecting people experiencing homelessness to the appropriate support services.

Animal Services

117. Educational sessions continued through the month, with a further 335 children from one primary school and a scout group being shown what to do if confronted by an aggressive dog; and how to pat a dog after first asking permission from the owner.

118. Animal Services staff continue to visit owners of unregistered dogs. We currently have 90% of known dogs registered with a goal of all dogs being registered by year-end. From that time, any owner who has not registered their dog will receive a $300 infringement.

Environmental Health and Licensing

119. Applications for Food and Alcohol certificates do not seem to have been affected by the COVID-19 restrictions. We have, however, had to adjust how we manage onsite inspections. The use of technology, such as iPads and the new Field Services Management System to remotely connect with the customer and continue conducting verifications, has been supporting the continuation of this service.

120. An appeal was recently lodged to the Alcohol Regulatory Licensing Authority (ARLA) by the Medical Officer of Health (MoH) relating to a decision made by the District Licensing Committee. The decision was to issue an Off Licence renewal “in principle” while waiting for reports from the Medical Officer of Health.

121. ARLA arranged mediation with all parties and advised that they could not hear the appeal because it related to process and was therefore a matter for the High Court to hear. As a result of the mediation, all parties have signed a memorandum to request that the DLC arrange to re-hear the matter. In the meantime, the parties have agreed to provide the required information.

122. The DLC is a committee of Council, but under legislation, is statutorily independent. Appeals to ARLA on DLC’s decisions are not a frequent occurrence. As Liquor Licensing Inspectors and the District Licensing Secretary are employees of Council, staff were involved in the process described above and found it very beneficial and an excellent learning opportunity.

Emergency Management

123. Immediately following the Government’s COVID-19 Level 4 announcement on 17 August, the Emergency Management team and duty Controller established an Incident Management Team (IMT) to actively monitor the COVID-19 Delta response and support Emergency Management Bay of Plenty with resurgence planning. An Emergency Operations Centre (EOC) did not need to be activated.

124. Contingency planning around a concurrent emergency event occurring during elevated COVID-19 alert level status has been completed. This planning is focused on:

· response activities that may counter alert level directives

· evacuation, including where to evacuate people who are self-isolating

· considerations to set up a physical or virtual EOC, and

· what welfare support subfunctions can be provided virtually and those that cannot.

An important take-away is that immediate lifesaving actions take precedence over adhering to COVID-19 alert level restrictions.

125. Council’s operational readiness capability is being boosted via the uptake of regular EOC function training by staff across the organisation. The turnout and feedback received from these sessions is positive.

126. The Tsunami Awareness Project is underway, with the initial stage of the project focused on evidence gathering and the establishment of a community Working Group. The inaugural hui of the Working Group is scheduled for 29 September 2021 and will ensure a collaborative and community-led approach, with representatives from multiple community sectors. The project vision is; To ensure everyone in Tauranga knows about the risk of tsunami, what the warning signs are, when they should evacuate, and have a plan to evacuate when appropriate. A large community awareness campaign is scheduled for the December/January summer period.

127. Manager: Civil Defence Emergency Management – we have appointed Paula Naude to the role of Manager: Civil Defence Emergency Management. Paula is currently the Chief Executive of Tauranga Living with Violence. Paula is an experienced professional who has worked in the Emergency Management, Risk management and social sectors, she also has a proven track record in establishing and maintaining positive relationship networks across various sectors along with leading successful teams. Paula will be a member of the Regulatory and Compliance lead team. We are extremely pleased to welcome Paula to the Group.

Building Services

128. The volume of building consent applications and amendments received in August (199) was comparatively low compared with normal levels (roughly 250). We do, however, have over 700 applications in progress as a result of the high volumes received in July. Weekly volumes have returned to normal levels so far in September.

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129. 233 consents and amendments were granted in August. This is down on previous months, which can be attributed to three reasons:

· The change in COVID-19 alert levels and the need to re-establish different working environments

· We have also had two processing officers leave recently, and

· Anecdotally at least, the lower quality of applications received in July as part of the rush to beat the development contributions rise.

130. As a result, compliance with the statutory timeframes has begun to dip, with only 66% of granted consents processed within 20 working days. We envisage this will dip further in the coming months, but are hoping to see it rebound by the end of the year. We continue to keep applicants informed.

131. During COVID-19 Alert Level 4, building inspections were not completed. However, these resumed following transition to AL3. All inspections that had been booked prior to AL4 were pushed back two weeks. Rescheduling all of these inspections was a major undertaking for our support team and they have received great feedback from the industry.

132. Inspection wait times are currently sitting at less than a week for most categories.

133. Our IANZ assessment is underway in September. Final results of this audit will be available by the end of the month, early indications are excellent, with both assessors commenting that our procedures are amongst the best they’ve seen in a long time.

Environmental Planning

134. Applications for resource consents remain consistent with numbers received in June/July. This prolonged period of high numbers has meant an extended period of pressure on the team.

135. Over the past month, we have been able to clear some historic and complex applications that have been in the system for some time, allowing the team to focus on the newer applications. The number of complex applications has increased, as more applicants are seeking consent for intensive residential development, seeking to align with PC 26 – Housing Choice.

136. Recent recruitments in the Development Engineering Team have resulted in applications being processed in a timely manner. While there continues to be a sensitive balance of workload vs capacity, we are confident that, with the support on processing consultants, we can maintain timely responses for applicants.

137. Statistics show that general incidents and complaints under the Resource Management Act and the Tauranga City Plan remain high. In response, the team has reallocated some resource into the Monitoring team. The focus now is to continue to review and refine our monitoring processes.

Corporate Services

Finance

138. The first rates instalment was due by 31 August and at month-end 93% of rates due had been collected, with a further 2-3% expected to be collected before penalties applied. This collection percentage is similar to prior years.

139. Finance is working on a review of council’s rating policy, as requested following submissions on the Long Term Plan. The review is focusing largely on the transportation and stormwater activities of council – primarily the benefits arising from these activities and the way they are funded. Expenditure is proposed to increase significantly over the LTP. The review will consider types of rates and other funding mechanisms available, as well as the apportionment of costs and benefits between commercial and residential ratepayers.

140. Changes to revenue and costs associated with ongoing COVID alert levels continue to be monitored, with a loss in August/September across community facilities of about $0.8m, most of this for BVL who received wage subsidy to offset a portion of their revenue losses. The estimated reduction in airport-related revenue for August and September is about $300k.

141. The Annual report final audit process has commenced. The audit process is being conducted remotely, which presents more challenges to efficient provision of information and discussion. At this stage, there have been no material adjustments proposed to the accounts.

142. Credit rating agency Standard & Poors (S&P) has commenced its annual review of Tauranga City Council, to conclude the council’s credit rating for the year. S&P has held a discussion with Commissioners, Chief Executive and General Manager Corporate Services and this meeting was followed by a meeting with finance staff, to understand the current financial situation, projections based on the LTP and risks and their proposed mitigations.

143. We have put in place new borrowing of $42m so far this year, 52% of that on a fixed rate basis. This will be used for general funding and to pre-fund maturing debt later in the year.

144. The 2022-23 annual plan process has commenced, with managers reviewing their proposed capital project budgets and operational budgets for year 2 of the LTP. The primary reason for changes includes variations to the timing and costing of capital projects in light of the current environment and capital delivery likely to be achieved in 2021-22.

Airport

145. Tauranga airport continues to be impacted by changes in Covid19 lockdown levels across the country and the subsequent impacts on Air New Zealand schedules. The airport does remain fully operational through all lockdown levels as required by government.

146. 25,243 passengers passed through the terminal during August 2021, compared to 19,957 during August 2020 and 46,843 in August 2019. Flights operated with an average loading of 79 percent with the major impacts being from reduced schedules particularly from Auckland as it remains in higher lockdown levels.

147. Whilst landing charges were impacted by lockdown levels and reduced schedules the financial performance of the airport remains strong. Whilst approximately $300k of revenue was lost through landing charges and carparking revenue the non airport revenue base continues to perform well and management continues to work with tenants to ensure positive outcomes continue.

Marine Precinct – Vessel Works

148. The winter period is traditionally a quieter time for the marine precinct and the covid lockdown levels have further contributed to this in the current year. Despite this significant work continues around the precinct looking to improve operations. The quieter time has been used install improved facilities such as clear hardstand markings, improved mooring bollards and needed repairs and maintenance on the travel lift amongst other things. This will see the yard well prepared for the upcoming busy summer months.

149. Construction of the wharf extension is progressing. This wharf will provided improved mooring capacity for users of the facility and replace dated infrastructure. The design work is nearing completion, as is the procurement plan. Negotiations with an adjacent landowner have started but there are transition dependencies on developing the Master Plan for the precinct.

150. The Marine Precinct Strategic Reset is well underway. We have received initial findings on the recommended future ownership/operating model. Consultation with stakeholders on potential site designs is underway. Once these have been refined, financial/economics experts will assess the options to develop a detailed picture for Commissioner decision-making.

Beachside Holiday Park

151. The Holiday Park continues to perform strongly as a great holiday location for kiwis now unable to travel abroad due to covid restrictions. This month saw some reduction in numbers due to lockdown restrictions but again we expect the holiday park to perform well over the upcoming summer months

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Property Facilities

152. The Property Facilities team, in collaboration with the Transport team, has installed six new Electric Vehicle charging stations in the Spring St and Elizabeth St Car Parking buildings for a four-month trial period to determine the level of usage.

Risk

153. Risk, and Internal Audit matters will be reported separately to the Commissioners. In respect to Business Continuity, the organisation’s Business Continuity and Pandemic Plans were kicked into action on 17 August as we went into Alert Level 4. As a result of all the hard work by the COVID Planning Team, Business Continuity Advisor and the organisation as a whole, we efficiently operated through lockdown with minimal impacts on our services.

Legal

154. Legal matters will be reported separately to the Commission.

Digital

Supporting flexible working from home

155. The current global situation means there is a growing demand for a very limited amount of digital equipment, with manufacturers unable to keep up with demand due to a shortage of critical componentry. This situation is not specific to any manufacturer – the whole industry is affected - which means we are unable to source the equipment we require from other suppliers.

156. We are currently working closely with our suppliers to attain any stock that is available, either in NZ or offshore, and adjusting what we purchase to try and fulfill our needs in the interim. We are in the position where we have little or no access to our core equipment – monitors, laptops and docking stations, Supply timeframes are open-ended and waiting lists are growing daily.

User Engagement

157. We have seen increasing learning activity across the year, with a significant increase of new logins occurring from July this year, which coincides with the release of the Privacy Act training module.

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Compulsory courses:

· 4 courses

· 2,770 Completions

Courses for New Starters:

· 10 courses

· 4,122 Completions

Optional courses:

· 17 courses

· 1,153 Completions

158. The use of e learning modules continues to be an effective and efficient way of improving our training and compliance and has been a particularly effective method throughout lockdowns.

Collaboration and COVID

159. Having now completed the Teams roll-out to the organisation, we can start to see and measure the benefits this has provided in increased collaboration and resilience, which enabled us to adapt to a workforce that is largely working remotely because of the COVID pandemic.

160. The graph illustrates the high level of collaboration and engagement that Teams has enabled for the organisation.

161. It also highlights how much the impact of remote working and COVID has had, with a major uplift as the lockdown took effect in mid-August, resulting in a 4x increase in audio and video minutes.

Graphical user interface, application

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Attachments

Nil

Ordinary Council meeting Agenda

4 October 2021

11.4 Approval of Temporary Alcohol Free Areas for the summer period

File Number: A12723172

Author: Jenna Quay, Events Facilitation Manager

Emma Joyce, Policy Analyst

Authoriser: Gareth Wallis, General Manager: Community Services

Purpose

1. For Council to agree to, and implement, the temporary alcohol-free areas set out in this report.

Recommendations

That Council:

(a) In accordance with section 147B of the Local Government Act 2002, agrees that the proposed temporary alcohol-free areas are appropriate and proportionate in the light of the evidence; and justified as a reasonable limitation on people’s rights and freedoms.

(b) Resolve under clause 8 of the Alcohol Control Bylaw 2018 to implement a temporary alcohol-free area between the hours of 9pm and 7am for all beaches, reserves and public places on the seaward side of Marine Parade (eastwards from its intersection of Grove Avenue), Oceanbeach Road and Maranui Street and Surf Road from 24 October 2021 to 3 April 2022.

Fergusson Park	Fergusson Park including Tilby Drive from the intersection of Tainui Street and Waratah Street (all inclusive) from 10am, 31 December 2021 to 6am, 1 January 2022.
Gordon Spratt Reserve	Gordon Spratt Reserve and Alice Way (all inclusive) and Parton Road (between Tara Road and Papamoa Beach Road) from 10am, 31 December 2021 to 6am, 1 January 2022.
Tauranga Racecourse Reserve	Tauranga Racecourse Reserve from 10am, 31 December 2021 to 6am, 1 January 2022.

(d) Clarifies that during the period from 26 December 2021 to 6am on 6 January 2022, a temporary alcohol-free area is in place, 24 hours a day, seven days a week, for:

(i) All beaches, reserves and public places on the seaward side of Marine Parade (eastwards from its intersection of Grove Avenue to its intersection of Tweed Street);

(ii) Omanu Surf Club and car park area; and

(iii) Waiariki Street.

executive summary

2. The Alcohol Control Bylaw 2018 (the Bylaw) provides for Council to resolve temporary alcohol-free areas where no person is allowed to bring in, possess, or consume alcohol in a public place for a specified time and/or event (temporary alcohol-free area).

3. This report seeks Council approval for temporary alcohol-free areas to support the safe hosting of community New Year’s Eve (NYE) celebrations around Tauranga and to have a consistent approach to alcohol use at the beach over the summer period.

bACKGROUND

4. The purpose of the Bylaw is to control the consumption of alcohol in public places to reduce potential alcohol-related harm. As well as setting out permanent alcohol-free areas, clause 8 of the Bylaw states Council may, by resolution, prohibit the consumption, bringing and possession of alcohol on or in a public place for a time period and/or event specified in that resolution (temporary alcohol-free area).

5. Each year temporary alcohol-free areas are put in place around a number of events across the city. This supports the Police to manage any potential alcohol-related disorder and helps minimise the risk of alcohol related harm at and around these events.

DISCUSSION

6. Temporary alcohol free areas are proposed for the coastal strip (as illustrated in attachment one) over the summer period (Labour Weekend to first weekend of April), and to support Council’s NYE community events.

Summer period

7. A temporary alcohol-free area (attachment one) is proposed between 9pm and 7am, seven days a week, effective from Sunday 24 October 2021 until Sunday, 3 April 2022, for:

· All beaches, reserves and public places on the seaward side of Marine Parade (eastwards from its intersection of Grove Avenue), Oceanbeach Road and Maranui Street.

· Surf Road.

8. This area has been an alcohol-free area over the past three summer periods. It was first put in place in 2018 in response to evidence from the Police who received 14 calls for service in this area between October 2018 and November 2018. Community feedback from some residents also alleged alcohol-related disorder. During the period of the ban, there were two calls of service to the Police. Police reported that the temporary ban had the desired effect and assisted when calls for service were received.

9. Last summer when the ban was in place, there were 35 alcohol-related calls for services to the Police, of which 16 occurred between 9pm and 6am. This indicates that there is still a need for this area to be alcohol-free again this summer.

10. Police support the continuation of the proposed temporary alcohol ban as it provides them with an early intervention tool to help reduce potential alcohol-related crime and disorder in this area.

11. There is some overlap in the alcohol-free areas within Schedule 2 of the Bylaw and the alcohol-free areas specified above.

12. To avoid any confusion and clarify the conditions of the alcohol-free areas for the community, it is recommended that Council resolve that:

During the New Year period a temporary alcohol-free area is in place 24 hours a day, seven days a week for;

· All beaches, reserves and public places on the seaward side of Marine Parade (eastwards from its intersection of Grove Avenue to its intersection of Tweed Street);

· Omanu Surf Club and car park area; and

· Waiariki Street.

13. This clarifies that the New Year’s 24-hour ban supersedes the summertime and permanent night-time bans over the New Year period.

New Year’s Eve community events

14. Council is planning five NYE community events across the city. Council is asked to support temporary alcohol-free areas for three of the event locations, where there is not an existing alcohol-free area, to enable NZ Police to support the community celebrations and minimise any potential alcohol related crime and disorder. A letter from the Police in support of the temporary alcohol-free areas is attachment two.

15. The table below outlines temporary alcohol-free areas proposed to support the event and safety of people attending the celebrations.

Fergusson Park	Fergusson Park including Tilby Drive from the intersection of Tainui Street and Waratah Street (all inclusive) from 10am, 31 December 2021 to 6am, 1 January 2022.
Gordon Spratt Reserve	Gordon Spratt Reserve and Alice Way (all inclusive) and Parton Road (between Tara Road and Papamoa Beach Road) from 10am, 31 December 2021 to 6am, 1 January 2022.
Tauranga Racecourse Reserve	Tauranga Racecourse Reserve from 10am, 31 December 2021 to 6am, 1 January 2022.

16. Temporary alcohol-free areas are not required for the community celebrations planned for the Tauranga city centre and Blake Park, Mt Maunganui. Council’s NYE community celebration for Tauranga city centre will be held within a permanent alcohol-free area, and Council’s NYE community celebration at Blake Park will be held within an existing New Year period alcohol-free area, as outlined in Schedule 2 of the Bylaw. As such, a temporary alcohol-free areas are not required.

17. In accordance with the legislation, the proposed temporary alcohol-free areas are proportionate responses and place reasonable limitations of people’s rights and freedoms. The time periods for the proposed alcohol-free areas reflect the time period of concern for alcohol related crime and disorder.

Other events which may require a temporary alcohol ban

18. Covid-19 has impacted the events industry with a number of events needing to be rescheduled. Due to the current environment, an additional report may be required to implement additional temporary alcohol-free areas incorporating other events over the summer period. This will be completed within adequate timeframes to ensure compliance with the Bylaw and Local Government Act 2002 (LGA 02) requirements.

Strategic / Statutory Context

19. The proposed temporary-alcohol free areas are consistent with the purpose of the Bylaw to reduce alcohol-related harm in our community.

Options Analysis

20. The table below outlines the advantages and disadvantages of approving the temporary alcohol-free areas.

Option

Advantages

Disadvantages

Approve the temporary alcohol-free areas

(recommended)

· Police are better enabled to successfully limit alcohol harm and manage public disorder in public places over the summer period and on NYE.

· Police are provided with an additional tool to assist in the provision of a safer environment for the community.

· The community can enjoy a safer environment in these areas and when attending community events.

· Some residents and visitors may view the proposed temporary alcohol-free areas as being too restrictive.

Do not approve the temporary-alcohol free areas

· Nil

· The ability of the NZ Police to successfully limit alcohol harm and manage public disorder in public places over the summer period and on NYE.

· There may be a serious incident(s) in the high-risk areas highlighted by the NZ Police as a result of intoxication.

Financial Considerations

21. Should Council approve the temporary alcohol-free areas, there will be a cost of approximately $2,000 to install signage (within budget).

Legal Implications / Risks

22. The proposed temporary alcohol-free areas reduce the risk of increased alcohol harm and public disorder.

23. A minimum of 14 days public notice of the temporary alcohol-free areas must be made for the Police to have the power to enforce the temporary alcohol-free areas (s170 of the LGA 02). Event organisers will be advised of this requirement should any summer events require a temporary alcohol-free area to be implemented.

Consultation / Engagement

24. As clause 8 of the Bylaw provides Council with the power to put in place temporary alcohol-free areas, public consultation is not required. Public consultation was carried out when the Bylaw was developed.

25. All residents in the proposed alcohol-free areas will be informed by letter or email, if Council decides to implement the proposed alcohol-free areas.

Significance

26. The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy. Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

27. In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a) the current and future social, economic, environmental, or cultural well-being of the district or region.

(b) any persons who are likely to be particularly affected by, or interested in, the decision.

28. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the decision is of low significance.

Next Steps

29. In accordance with the Bylaw, public notice will be given prior to the temporary alcohol-free areas taking effect. Maps and information on all temporary alcohol-free areas will also be available on Council’s website.

30. Residents along the streets of the proposed temporary alcohol-free areas will be informed of the restriction by letter or email.

31. In accordance with the LGA 02, Council will erect signs to inform people of the temporary alcohol-free area. This will ensure Police can exercise the power of search under the LGA 02.

32. An additional report will be prepared to provide for temporary alcohol bans for specific events, as required.

Attachments

1. Proposed alcohol-free areas along the coastal strip - Summer 2021 to 2022 - A12916706 ⇩

2. NZ Police letter - Temporary alcohol-free areas for NYE community events 2021 - A12917566 ⇩

Ordinary Council meeting Agenda

4 October 2021

11.6 Three Waters Reform - Report on the Government's Proposal

File Number: A12915800

Author: Kathryn Sharplin, Manager: Finance

Steve Burton, Director of City Waters

Cathy Davidson, Manager: Directorate Services

Authoriser: Nic Johansson, General Manager: Infrastructure

Purpose of the Report

1. This report provides an overall summary of the Government’s Three Waters Reform and implications for Tauranga City Council (TCC) and our communities.

2. It also provides a summary of analysis in relation to three water services; finance and funding; social, community and economic wellbeing; and resourcing. Analysis is used to examine the impact of the Three Waters Reform on current services provided by TCC. Areas that may need improvement to comply with future measures that will benefit our communities today and into the future are also highlighted.

3. Council’s feedback is being sought by the Minister of Local Government, the Hon Nanaia Mahuta, by 1 October 2021. TCC’s response to the Minister of Local Government will be tabled at the meeting for Council’s approval.

Recommendations

That the Council:

(a) Receives the report Three Waters Reform – Report on the Government’s Proposal;

(b) Notes the key implications for Tauranga City Council of the Three Waters Reform; and

Executive Summary

4. In July 2020, the Government launched the Three Waters Reform Programme relating to drinking water, wastewater, and stormwater. This is to be a three-year programme to reform local government’s three water service delivery arrangements in a way that improves health and wellbeing outcomes to benefit all communities in New Zealand.

5. The last twelve months has involved a ‘discovery phase’ with councils, led by the Water Industry of Scotland (WICS) at the request of Department of Internal Affairs. For councils, participation in the discovery phase has been on a voluntary basis. TCC has been involved in this phase with no obligation for any future commitment.

6. Analysis using Local Government New Zealand’s ‘Balanced Scorecard Framework’ has been used to consider the Three Waters Reform by asking a number of questions under four broad perspectives. These form the main sections of the report and include:

A. Three water services

B. Finance and funding

C. Social, community and economic wellbeing

D. Resourcing.

7. Overall, the balanced scorecard analysis indicates that:

· three water services are already performing well, however there is still further opportunity for improvement with reform

· there will be likely benefit in terms of efficiency and quality of service delivery from a regional three waters entity

· there will be significant improvement to the remaining council balance sheet with the removal of three waters debt which makes up over 60 percent of council total debt

· Te Rangapū Mana Whenua o Tauranga Moana are committed to providing input to the three water reform process and would recommend improving participation by seeking more realistic timelines for engagement

· the community may not support the three waters reform and that there are gaps in understanding across the community

· there will be significant improvement in resourcing with larger entities able to offer major opportunities around supply chain resilience and smart procurement.

8. Risks and uncertainties relating to the three waters proposal require clarification before a final evaluation of the overall benefits and costs to council of the proposal can be fully assessed. These include:

· Clarity of messaging and information to the public about the proposal

· Clarity of the proposed governance arrangements to assess whether they would be effective at representing council concerns regarding strategic direction,

· Ability for TCC, representing the Tauranga community, to influence priority investment and strategic direction of the regional entity

· Ability to continue to efficiently plan for growth and prioritise growth-related three waters investment to align with council’s growth planning and timing

· Aspects of the transition arrangements as they affect council’s recent and ongoing system investment, overhead and support functions

· Treatment of stranded overheads in the remaining entity

· Detail on the transfer of assets and debt (including treatment of hedging arrangements)

· Potential cross subsidisation from Tauranga to the wider region.

· The likely increase in regulatory standards, and the associated level and timing of new investment expectations to meet these standards along with additional operating costs for water service providers as a result of the water regulator

· Relationship between the three waters reform process and other local government reforms.

9. The Government seeks to continue to work closely with local government and Treaty of Waitangi partners, to ensure the new water service entities can efficiently and effectively commence operations by no later than 1 July 2024.

10. Government has recently indicated its willingness to consider alternatives if the current proposal can be improved on, while keeping within the reform’s bottom lines of good governance, balance sheet separation, and partnership with Mana Whenua.

background

11. Following the serious campylobacter outbreak in 2016 and the Government’s Inquiry into Havelock North Drinking Water, central and local government have been considering the issues and opportunities facing the system for regulating and managing the three waters (drinking water, wastewater, and stormwater). This has been termed the Three Waters Reform.

12. The objectives of the Government’s reform proposals are to improve water quality and environmental standards for three waters services in a way that is affordable to New Zealanders and financially sustainable for the organisations delivering these services. It also provides a mechanism for enabling iwi/Māori rights and interests. Further background information on the earlier stages of the Three Waters Reform has been outlined in earlier reports to Council’s Strategy Finance and Risk Committee on 28 June 2021, 16 August 2021 and on 20 September 2021.

13. The Government’s stated direction of travel is for a publicly owned, multi-regional model (with a preference for local authority ownership).

14. The Department of Internal Affairs (DIA), in partnership with the Three Waters Steering Committee (which includes elected members and staff from local government commissioned specialist economic, financial, regulatory and technical expertise to support the Three Waters Reform Programme) has led policy advice to ministers on the reform.

Discovery stage with councils

15. The initial stage of reform work with councils was an opt in, non-binding approach. It did not require councils to commit to future phases of the reform programme, to transfer their assets and/or liabilities, or establish new water entities. Council completed the Request for Information (RFI) process over Christmas and New Year 2020/21 and the Government has used this information, evidence, and modelling to make preliminary decisions on the next stages of reform (refer Attachment 1 - DIA Dashboard – Tauranga City Council).

16. Based on this discovery phase, a suite of information was released by Government in June 2021 that covered the estimated potential investment requirements for New Zealand, scope for efficiency gains from transformation of the three waters service and the potential economic (efficiency) impacts of various aggregation scenarios.

17. Modelling carried out by Government indicated the following:

· at the national level - a likely range for future investment requirements in the order of $120 billion to $185 billion

· an average household cost for most councils on a standalone basis to be between $1,910 and $8,690 by 2051

· that the average household costs could be reduced to between $800 and $1,640 per household, with efficiencies in the range of 45 percent over 15-30 years

· an additional 5,800 to 9,300 jobs and an increase in GDP of between $14 billion to $23 billion.

18. As a result of this modelling, the Government has proposed to:

· establish four statutory, publicly owned water service entities that own and operate three waters infrastructure on behalf of local authorities

· establish independent, competency-based boards to govern these entities

· set a clear national policy direction for the three waters sector, including integration with any new spatial / resource management planning processes

· establish an economic regulation regime

· develop an industry transformation strategy.

19. During June and July 2021, the Government released information and made announcements on the following:

· the direction and form of Three Waters Reform, including proposed new Water Service Entities (four and their indicative boundaries), their governance arrangements and public ownership for the proposed membership and governance of the four entities (refer Attachment 2 – Three Water Reforms - DIA Report Transforming the System)

· individual (WICS) Council data, based on the information supplied by councils under the RFI process

· a package of investment ($2.5b) for councils to invest in the future for local government, urban development, and the wellbeing of communities, ensuring some investment in communities to make them “better off” as well as funding to cover ‘stranded costs’[1] so no council is “worse off” as a result of the reforms, along funding support for transition costs.

· an eight-week process for councils to understand the implications of the reform announcements, ask questions and propose solutions and for Government to work with councils and mana whenua on key aspects of the reform (including governance, integrated planning and community voice). Feedback to Government was requested no later than 1 October 2021.

20. The Government has concluded that the case for change to the three waters service delivery system has been made and this has been endorsed at a national level by Local Government New Zealand (LGNZ). Both DIA and LGNZ have produced two page national overviews, available on the DIA website and LGNZ websites respectively.

21. The Government’s intention is to create four multi-regional three-waters entities. Under the Government’s reform proposal Tauranga City Council would be part of Entity B. Entity B covers the Waikato, Bay of Plenty, Taranaki and the upper Manawatu-Whanganui regions.

22. In the light of feedback in the eight week process from Councils, Government has recently indicated its willingness to consider alternatives if the current proposal can be improved on, while keeping within the reforms bottom lines of good governance, balance sheet separation, and partnership with Mana Whenua.

Taumata Arowai – A new Crown entity dedicated to water service regulation

23. Government has introduced a new water regulator, Taumata Arowai, a new Crown entity with a Ministerial-appointed board working alongside a Maori Advisory Group. Taumata Arowai will administer and enforce a strengthened drinking-water regulatory system as well as having oversight of wastewater and stormwater systems of New Zealand. Taumata Arowai will be fully operational following commencement of the Water Services Bill, expected to be in the second half of 2021.

24. It is anticipated that monitoring, compliance and enforcement of standards will increase substantially in the years to come. This increased regulation creates a challenge for councils in meeting future standards and mana whenua and community aspirations (including greater infrastructure investment required than currently planned and a risk of enforcement action for non-compliance with standards).

Local government’s response to the three waters reform

25. While the Government and (LGNZ) consider that the national case for change has been made, councils need to consider the proposal based on their local context. Councils do not have a national interest test for their decision making. They are, however, required under the Local Government Act 2002 to act in the interests of their communities and promote the social, economic, environmental, and cultural well-being of communities in the present and for the future. This includes providing opportunities for Māori to contribute to decision-making, ensuring prudent stewardship and the efficient and effective use of its resources in the interests of the district or region (including planning effectively for the future management of its assets), and taking a sustainable development approach.

26. In general, the Three Waters Reform means TCC is expecting to face higher quality standards for its three water services. This will likely lead to more capital investment being required and higher operating costs being incurred. Once more information is known about the timing and extent of enhancements required by new legislation, further cost assessments will be possible. It should be noted that the current Long Term Plan 2021-31 (LTP) did not factor in any additional costs in relation to the Three Waters Reform.

TCC’s assessment using LGNZ’s balanced scorecard framework

27. A balanced scorecard framework was suggested by LGNZ as a way for councils to assess at the various aspects of the reform. The balanced scorecard framework considers the reform by asking a number of questions under four broad perspectives:

A. Three waters services

B. Finance and funding

C. Social, community, and economic wellbeing

D. Resourcing.

28. The balanced scorecard analysis was undertaken by a group of TCC subject matter experts to examine what areas of the reform were considered to offer significant opportunity and threat to the desired outcomes for our communities.

29. The balanced scorecard analysis is summarised for each of the perspectives below, along with a description of the current Tauranga situation and the likely impact of the reform. Any risks and uncertainties are also highlighted.

30. It is acknowledged there is an element of subjectivity in the scorecard analysis.

31. For further detail, please refer to Attachment 3 – Balanced Scorecard Assessment (Impact Assessment Framework TCC).

A. Three Waters Services

32. The balanced scorecard from the ‘three water services’ perspective considered the following factors:

· Achieve drinking water standards and compliance

· Wastewater systems compliant and support freshwater quality

· Robust and sustainable stormwater network

· Asset management and infrastructure planning

33. Overall, the balanced scorecard analysis for Tauranga showed that three waters services at present, and through the LTP, are performing well. There is, however, further opportunity for improvement with reform.

Current three waters services for Tauranga

34. The current three waters services for Tauranga are provided under three separate activities of council – water supply, wastewater and stormwater. The groups of activities section of the 2021-31 Long-term Plan (LTP) sets out the performance levels and measures for these services and the ten-year budgets both operational and capital.

35. Council manages and operates two existing water treatment plants – Oropi and Joyce, with another currently being constructed (Waiari)^{^[2]}. Drinking water provided to communities is via microfiltration, complying with the 2020 NZ Drinking Water Standard, and delivering Aa quality (top quality). Challenges for the city in relation to drinking water are around maintaining the quality of water supply, managing growth and the impacts of climate change, and water sourcing and its consenting. The city’s water supply is fully metered (meter reading process contracted out) and the billing process is undertaken by TCC staff.

36. Wastewater treatment plants (Chapel Street and Te Maunga) are managed and operated by Council, and treated wastewater is discharged via an ocean outfall. Challenges for the city include maintaining the quality of the wastewater output, managing growth and the impacts of climate change. Both water and wastewater activities have ISO accreditation/certification. This international quality standard adds a level of risk mitigation for both these services.

37. Stormwater services are provided by Council via pipes networks, open drains and ponds and natural systems are used as much as possible. There are many challenges with stormwater in the city including providing for growth, meeting environmental standards, climate change, responding to storm events, and discharge of water runoff to streams, ponds and the ocean. Given the environmental challenges, water course assessments are currently being carried out to inform the development of a programme to mitigate the effects of discharges. This programme will require a long-term approach to mitigate environmental effects and will influence the next LTP.

38. The three waters team is continually assessing how to deliver better outcomes to the community within the current areas of influence. In 2021, TCC partnered with Western Bay of Plenty District Council to procure a contractor for operations and maintenance services for three waters. This contract was awarded to Downer NZ Ltd and went ‘live’ on 01 July 2021 with a value of $80million over five years.

DIA’s analysis of Tauranga’s Three Waters Services

39. TCC submitted information to DIA in February 2021 as part of the request for Information process (RFI) to contribute to the DIA analysis of councils. Overall, the feedback TCC received from the DIA and WICS analysis was as follows:

· In the overall performance assessment TCC was in the top 5 councils in New Zealand in terms of service delivery. Other top performers included Hamilton and Auckland’s Watercare Services Ltd. 

· TCC is unlikely to realise any real improvements in efficiency without larger economies of scale in the areas of workforce specialisation, technology, investment capacity and procurement.

· Asset management maturity has scope for improvement. TCC are currently underway with a collaboration project with Watercare and Western Bay of Plenty District Council to improve asset management capabilities, together with greater investment around reporting, valuation and analytics.  

· Based on overseas experience the TCC assumption of asset lives appears too long and therefore the renewals programme is likely to be under budgeted throughout the next 30 years to 2051.

Potential impact on Tauranga’s three water services

40. Council is in a relatively strong position in terms of compliance with drinking water standards. The business has a comprehensive Water Safety Plan, supported by quality management system ISO:9001 certification.

41. Areas of uncertainty regarding the Three Waters Reform and risk to council and community is in relation to private water supplies. Recent investigation shows that there are 32 private suppliers, supplying 100 households across the city.

42. Wastewater systems, and freshwater quality are areas where the status quo will not be adequate to comply with future requirements. A significant lift in environmental standards is being signalled. Overflows to the environment and stormwater runoff quality will need far more stringent management to meet compliance with future mandatory measures.

B. Finance and funding

43. Finance and funding quadrant of the balanced scorecard covers the areas of:

· Council balance sheet and debt capacity

· The cost of service and efficiency savings

· Impact on rates

· Post-reform council viability.

44. These are discussed below following a description of the current financials for three water services.

Current financials for three water services in Tauranga

45. TCC currently raises most of its water supply revenue through metered water charges with a small portion as a connection fee. Both these charges are targeted rates. There is also a targeted rate for wastewater, which is charged on a fixed basis. There is a separate charge (not a rate) for non-standard commercial activities (Trade waste discharges). Stormwater activity has been primarily general rates funded with some targeted rate. A portion of current rates charges are to retire debt in the stormwater and water supply activities, with debt retirement also proposed to commence in future years in wastewater.

46. Council has accounted for the three waters activities as separate activities for over 20 years. Over this time both operational expenditure and revenue and full balance sheets have been maintained for each of these activities. This accounting means that Council can readily report the value of three waters assets and debt as well as annual revenue and expenditure. Both water supply and wastewater activities have been funded from targeted rates and any surplus or deficit in revenue collected has been held in a balance in those accounts. The Council has also maintained reserves to account for depreciation and renewals and for development contributions revenue against expenditure for specific growth area and city-wide investments. This level of detailed accounting will hold TCC in a strong position when considering the transfer of assets, debt and the operations of these activities.

47. Table 1 reflects key financial data of revenue, expenditure, and net debt for the three waters activities, separate from the rest of council’s budget. These figures are as budgeted for the year to June 2022.

Table 1: Three Waters Key Financials 2022 Budget^{^[3]}

	Operating  Revenue $m	Net Debt $m	Debt to revenue ratio %	Total Fixed  Assets   $m
Water supply	$36.4	$191.0	470%	$496.0
Wastewater	$36.9	$148.4	331%	$600.6
Stormwater	$27.3	$123.0	426%	$532.5
Total 3 waters	$100.6	$462.4	405%	$1,629.1
Rest of Council	202.8	300.6	123%	$3,711.9

48. In the LTP, TCC estimated three waters charges would increase from $1,350 in 2021 to $1,938 per household by 2031 which is an average increase of 7% per annum. This increase in revenue, $152m in total over the ten years, is as a result of the operational costs of new investment as well as substantial debt retirement included in three waters as a result of council’s continued requirement for capital expenditure, both to cater for growth and to meet increasing standards.

49. These estimates from the LTP have not included any regulatory changes arising from the Three Waters Reform. Changes relate to increasing costs as a result of stormwater levels of service and other climate change issues, and environmental concerns.

TCC’s debt and capital investment

50. One of TCC’s main challenges has been its constrained balance sheet. This constraint means that there is a limit on the ability of council to borrow more to invest in needed infrastructure across the city in areas such as transportation, community facilities and resilience, as well as for three waters.

51. Most of the city’s existing and planned future debt is in the three waters area. This is a direct result of:

· population growth and new stepped infrastructure to cater for this growth

· meeting environmental consents regarding water use and discharge

· the need to better manage stormwater to reduce flooding events (with this investment significantly increased after the 2005 and 2011 major flooding events in the city).

52. The graphs below (Figures 1-3) illustrate the three waters debt, fixed assets and planned investment programmes over the next ten years. Rising debt levels reflect the large investment programme associated with three waters infrastructure needs.

Figure 1: Three Waters net debt for over the next ten years

Figure 2: Three Waters fixed assets – net debt over the next ten years

Figure 3: Three Waters capital expenditure over the next ten years

53. The graphs below (Figures 4-6) show overall debt levels for Council and the three waters share of this debt. The debt to revenue ratios relative to current borrowing covenants show the very high levels of three waters debt, which is significantly in breach of borrowing limits on its own. In contrast the remaining activities of council have more modest debt levels remaining within covenants over the ten years, based on the rates funded debt retirement in community and transportation activities as well as in three waters.

Figure 4: Net debt for Council, and the three waters share of debt, from the LTP

Figure 5: Debt to revenue ratio relative to borrowing limits, from the LTP

54. The current LTP includes approximately $549m of revenue from rates and user fees to retire debt and provide capital investment capacity over the LTP period. Of this debt retirement about 50% is retired from the three waters activity. This debt retirement contributes to the increase in three waters charges over the ten years of the LTP.

55. The following graph shows the portions of debt retirement in the LTP across various activities (Figure 6).

Figure 6: Rates funding debt retirement in the LTP

56. The impact on TCC’s financial sustainability with the transfer of three waters is also analysed in the DIA Indicative financial tool, an extract of which is shown below (Figure 7). In summary, the transfer of waters from TCC would create significant debt headroom within the remaining Council from 2024.

Figure 7: Local Government Funding Agency Net Debt to Total Revenue

Local Government Funding Agency (LGFA) considerations

57. Local Government Funding Agency Shareholders Council recently requested the LGFA Board to consider different scenarios depending on how loans attributable to three waters assets will be dealt with once the new entities are formed and operational. The focus of review is to consider potential impacts to LGFA and its Shareholders and Guarantors (refer Attachment 4 – LGFA Letters – Lending to Water Entities).

DIA Analysis for TCC and Entity B Financials

58. The DIA dashboard for TCC is included as Attachment 2. The DIA analysis estimates that by 2051 the TCC three waters costs per household would be $3,060. In contrast, under Entity B, DIA estimated that the per household charge would be $1,220 per household per annum by 2051. This overall saving assumption under Entity B is based on annual efficiency gains across the whole entity to more than offset the increased costs both new capital investment and operational costs to raise standards of three waters services across the region.

59. A comparison on results from the analysis for TCC and other Entity B councils is shown in Table 2, with the outliers shaded in red and green.

Table 2: Comparison of WICs dashboard data for Entity B Councils

60. We note in Table 2 above that there is a significant variance amongst Entity B councils between their 2021 council charges and what DIA assumed would be charged by 2051 in those areas to meet the assumed new regulatory standards. The smaller councils who may not have invested significantly in three waters have been assumed in the DIA analysis to require substantial additional investment. The costs of this assumed additional new investment drives the very large increase in estimated per household annual costs by 2051. DIA notes it has used overseas experience to inform its assumptions.

61. The DIA analysis, has been peer reviewed by Farrierswier and Beca to ensure that both the modelling and underlying assumptions are reasonable in the New Zealand context. It therefore provides an indication of the “order of magnitude” of the gains that could be delivered though the new system and the level of future investment Council is likely to need to make over the next 30 years.

62. At this stage it is not possible to fully test the DIA projections as the regulatory standards for New Zealand out to 2051 are not yet known. It is reasonable to assume that there will be greater community and mana whenua expectations around environmental performance and quality, tougher standards to meet for water quality (drinking and receiving environment) and that monitoring, compliance and enforcement will be greater than it is now. This would be expected to increase both operational and capital costs of three waters service delivery.

Additional Funding “better off” and “no worse off”

63. The Three Waters Reform includes funding support from Government and the proposed new Entity B. The support package for Entity B is estimated at $707m being $322m from the Crown and $385m of debt funding sourced by Entity B to be paid back over time through water charges. This package is to fund the “Better Off” funding of $497m and “No Worse Off” funding of $210m and the reasonable costs of transition. The infographic below (Figure 8) shows the distribution of funding amongst Entity B councils. In total, TCC would receive $48m of “better off” funding, and the balance of $21m as “no worse off” funding and reasonable cost reimbursement.

Figure 8: PWC summary of three waters reform based on DIA analysis and data

64. To assess whether the proposed “better off” and “no worse off” funding to Council [$69m] is sufficient, Council needs further information on the conditions that will be associated with that funding and details of transitional arrangements. For the purposes of the following analysis it is assumed that this funding would provide Council with an opportunity to address a range of issues and opportunities to improve community wellbeing in partnership with mana whenua and the community.

Expected outcome for TCC

65. The key advantage to TCC of transferring waters to a separate entity is the reduction in debt. This means that TCC gains significantly more capacity to invest in non-water activities of council in the future, including transportation and community facilities. These other activities have been significantly constrained over recent years because of the need for substantial three waters investment resulting in very high council debt levels.

66. In completing the balanced scorecard, finance staff weighted the council balance sheet and debt capacity factors much higher than other areas of the finance scorecard in assessing the opportunity of reforms from a financial perspective.

Risk and uncertainties for finance and funding

67. There are several issues that need to be resolved in relation to finance and funding including:

· transition arrangements, including treatment of existing overheads and stranded costs

· details of asset, debt and hedging transfer arrangements.

· operational arrangements for assets retained in TCC - particularly in relation to stormwater

· integration with other local government reform processes

· protections from privatisation

· conditions associated with the Government’s package of funding for local government

· impact on operational and capital investments due to new water legislation, associated regulations and enhanced standards

· whether reforms are mandatory and final details of arrangements.

C. Social, community and economic wellbeing

68. Social, community and economic wellbeing is considered under the balanced scorecard. This quadrant of the balanced scorecard covers the areas of:

· Mana whenua - perspectives

· Community – residents

· Growth and prioritisation

· Wider economic aspects of waters investment – supporting local industry etc

Perspective of Mana Whenua

69. Overall Te Rangapū Mana Whenua o Tauranga Moana support the process that has been taken to date with the three waters reform. This support sits alongside the following feedback:

· The use of the Māori name, Taumata Arowai (the regulator) can mislead that the entity is Māori led or owned and this causes confusion. The sooner Māori participation is clarified the better understood the role of the regulator will be for iwi.

· Tangata whenua participation in governance remains unclear, therefore tangata whenua are unable to gauge appropriateness. This lack of clarity also leads to pressure on tangata whenua by those who find the uncertainty threatening.

· Key issues for Tauranga Moana can only be truly governed by direct participation.

· The first principle advocated previously through to Government and the Commissioners was to take due regard of tangata whenua relationships, the size of the entity area immediately puts this principle under pressure.

· Tangata whenua see great opportunity in a more environmentally focussed management of three water activities, particularly stormwater.

· There is a high degree of uncertainty across the community around the role of tangata whenua. Tangata whenua support the efforts of other local authorities (for example Central Otago District Council) who have developed videos to engage with their community. Both Central Government and other councils are encouraged to follow that lead on communication channels and style.

70. Overall, Te Rangapū Mana Whenua o Tauranga Moana are committed to continuing to provide input to the three water reform process. Key uncertainties and concerns raised related to:

· A commitment to bringing into action the principles of Te Tiriti o Waitangi.

· Ensuring regionalisation takes proper account of natural Māori alliances.

· Discharge to whenua is more appropriate than discharge to wai and that there needs to be clarity on how the reform will bring priority to this tikanga.

· Recognition of protecting kaitiakitanga so that iwi and hapū are supported to maintain guardianship over their taonga – including flora and fauna.

· The need to prioritise supporting the utilisation of Māori land in the delivery of infrastructure, now and into the future.

· Planning for better alignment with the natural form and function of the taiao.

71. It should be noted that tight engagement timelines have placed extraordinary pressure on tangata whenua, especially with the trickling down of information and resourcing. Te Rangapū Mana Whenua o Tauranga Moana acknowledges the roles for both iwi and hapū so canvassing feedback across 17 entities has not been an easy task in the given timeframes. The uncertainty and lack of clarity also makes timelines difficult to gauge. Te Rangapū Mana Whenua o Tauranga Moana recommend improving participation by seeking more realistic timelines for engagement in the future.

Community perspectives - Interim on-line feedback results

72. An online form on the TCC’s website was used to gather community feedback on the three waters reform. From this, 295 responses were received from the community, together with 13 service requests and a number of emails that have been directed to the Commissioners.

73. The key themes and comments received from the community were categorised into the following:

· A referendum is required to determine participation

· Concerns relating to iwi input or control

· Loss of local say/control/accountability

· Concerns about the efficiency and cost of services

· Tauranga has good infrastructure and should continue to provide its own waters services

· Assets belong to ratepayers and should not be taken

· Lack of trust in Government

· Concerns about undemocratic process/role of unelected commissioners

· Assets should be paid for in full

· Lack of consultation/information.

74. Majority of respondents did not support the three waters reform. It was evident, however, that there were gaps in understanding around:

· What opportunities there will be for communities to have input into councils’ involvement in three waters reform (formal consultation/local or national referendum)

· How the governance arrangements will work, including the role of iwi

· How councils and local communities can influence entity decision-making

· Entity ownership

· Transparency around the ownership and transfer of assets

· Transparency around ‘better-off’ payments, including the rationale for payments

· Future service costs.

Risk and uncertainties for social, community and economic wellbeing

75. Several issues need to be resolved in relation to community and the environment, including:

· The final boundaries

· Consultation with mana whenua and communities

· Representation from and on behalf of mana whenua

· How will community voice be heard and what influence local authorities will have (and what can the community realistically expect the council to influence particularly if it is not on the regional representation group)

· Integration with spatial and local planning processes and growth

· Prioritisation of investment, for example, to cater for growth planning and providing new land supply.

D. Resourcing

76. Under LGNZ’s balanced scorecard framework, the following was considered in relation to resourcing:

· Workforce suitability and sustainability

· ICT systems

· Supply chain and procurement

77. Resourcing was an area identified as showing potential for improvement through the proposals in the LTP, and significant improvement through reform. Larger entities will offer major opportunities around supply chain resilience and smart procurement, especially in the area of specialist water technologies, infrastructure delivery capacity, bespoke IT systems for better customer experience, and potential for social procurement objectives.

Current TCC resourcing and potential impact of three waters reform

78. At present TCC operates the water and wastewater treatment plants by direct employment.

79. Recently there has been significant investment in ICT (Information and Communication Technology) in partnership with Western Bay of Plenty District Council and Watercare to support better ways of working. However, a specialised regional entity is expected to contribute strongly to attracting and retaining skilled staff especially for the emerging environmental, climate change, systems and digital needs of the sector.

80. There is considerable investment proposed in the LTP and the costs of capital investment continue to rise significantly. In comparison, considerable potential benefits of scale are likely for a regional entity through procurement and expertise.

Risk and uncertainty around resourcing

81. Several issues and uncertainties need to be resolved regarding resourcing and the three waters reform. These include:

· ensuring we retain TCC staff through the transition

· conditions associated with the Government’s package of funding for local government transition, treatment of systems investment and addressing the issue of stranded costs

· transition arrangements, including our own workforce challenges

· integration with other local government reform processes.

Response to the Minister of local government

82. Based on information contained in this report, a response to the Minister of Local Government from Tauranga City Council has been tabled at this meeting for consideration and approval.

83. In preparing the response, Commissioners and staff have been informed by the following information sources:

· Local Government New Zealand, Taituarā (Local Government Professionals Aotearoa) and Te Tari Taiwhenua (Department of Internal Affairs);

· analysis and discussion undertaken by the Waikato Bay of Plenty (WaiBoP) Collective comprising 16 affected councils and by the 22 Entity B councils, which also included councils from Taranaki, Whanganui and the Manawatu regions;

· staff analysis based on the 2021-31 LTP, risk frameworks and known business opportunities and challenges;

· feedback received from the community through a web portal that went live on the TCC website on 17 August 2021 and that received nearly 300 responses by the 29th September; and

· Discussions with Te Rangapū Mana Whenua o Tauranga Moana at meetings held on 23 and 29 September 2021.

Strategic / Statutory Context

84. This report and proposed response to the Minister is part of an ongoing proposal by the Government for three waters reform. Please refer to the ‘Background’ section of this report for more detail.

Options Analysis

85. The purpose of this report is to outline the Government’s three waters reform proposal and the implications for Tauranga. At this stage a consideration of future three waters options is not required.

Financial Considerations

86. Financial and funding implications of reform proposals are covered in detail in the ‘Finance and Funding’ section of the report.

Legal Implications / Risks

87. Risks to Council and to the community associated with the Government’s proposed three waters reform are highlighted throughout the report. A summary of key risks include:

· The establishment of the water regulator with its expanded and increased water quality and environmental standards means that there is increased compliance risk for council.

· The regional entity proposal has risk to council of stranded costs (including some of TCC’s overhead costs that may not transfer).

· The transition to a regional entity poses risks including the loss of staff during the period of uncertainty and transition, which may impact the delivery of quality three waters services.

· The new regional entity would mean that council would lose control of the prioritisation of capital investment in three waters to cater for growth, resilience or other council priorities.

· Details of the transfer of assets and debt are unclear and there is a risk that costs could be left with councils in the transition (e.g., loans and hedging).

· Service delivery and pricing through the larger regional entities are likely to result in some councils gaining or losing more than others and an element of cross subsidisation occurring. There is a risk that this could lead to higher costs to the community.

Consultation / Engagement

88. Limited engagement was undertaken with the community and Mana Whenua to inform initial feedback to the Minister of Local Government on the Government’s Three Waters Reform proposal, and as part of the assessment using LGNZ’s balanced scorecard framework.

89. Community involvement was in the form of community feedback through the TCC website and the establishment of a web portal. Engagement with Mana Whenua was through discussion with Te Rangapu Mana Whenua o Tauranga Moana on 23 and 29 September 2021.

Significance

90. The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy. Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

91. In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a) the current and future social, economic, environmental, or cultural well-being of the district or region

(b) any persons who are likely to be particularly affected by, or interested in, the issue.

92. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the issue of the three waters reform is of high significance. However, the decision of this report is to receive information on the Government’s proposed reform and to approve a response to the Minister of Local Government. This feedback is of medium significance as it is likely to influence further decisions by government on the nature and timing of reforms. Any subsequent decision to adopt or ‘opt-in’ to future stages of the three waters reform would be of high significance.

ENGAGEMENT

93. Taking into consideration the above assessment, that the issue is of high significance, officers are of the opinion that prior to any significant decision regarding the future of three waters delivery by council or another entity, community consultation/engagement is required under the Local Government Act 2002.

Next Steps

94. Next steps are expected to be announced by the Government in October 2021. This will include the timeframes and responsibilities for any community or public consultation.

95. It is also important to note that the Government has not ruled out legislating for an “all-in” approach to reform to realise the national interest benefits.

96. In the interim, the DIA continues to engage with council staff on transition matters on a “no regrets” basis should the reform proceed. These discussions do not pre-empt any decisions about whether to progress the reforms or whether any individual council will transition.

97. On the assumption that the reform goes ahead, it is anticipated that councils will continue to deliver water services until early 2024 and council involvement in transition will be required throughout.

98. Council has applied to redirect part of its three waters CIP funding to fund resources for a three waters project team for a period of six months to April/May 2022. This application is awaiting approval from the DIA. In the interim, a project steering group and workstreams have been established internally.

Attachments

1. Three Water Reforms - DIA Dashboard (TCC) - A12919448 ⇩

2. Three Water Reforms - DIA-Report-transforming-the-system - A12919427 ⇩

3. Balanced Scorecard Assessment (Impact Assessment Framework TCC) - A12951727 ⇩

4. LGFA Letters ~ Lending to Water Entities - A12919651 ⇩

Ordinary Council meeting Agenda

4 October 2021

11.10 Use of Council Land - Parau Farms / Smith's Farm

File Number: A12948106

Author: Andy Mead, Manager: City & Infrastructure Planning

Doug Spittle, Team Leader: Urban Spaces

Authoriser: Christine Jones, General Manager: Strategy & Growth

Purpose of the Report

1. To seek direction on the future use of Council-owned land in the west of Tauranga, including the areas known as Parau Farms and Smith’s Farm.

Recommendations

That the Council:

(a) Approves in principle the utilisation of the Parau Farms site in Bethlehem for housing development, and proceeding with:

(i) Investigation of housing development options in partnership with Kāinga Ora – Homes and Communities and Ngāti Kahu; and

(ii) Process of public consultation for the disposal of park under section 138 of the Local Government Act 2002;

(b) In relation to Smith’s Farm:

(i) Notes that the investigation into sports field options in the western and central corridors is progressing and that consequential decisions will impact on the availability or otherwise of Council-owned Smith’s Farm land for housing; and

(ii) Notes that lead-in time for access and services means that land development for any purpose will not commence for at least 3 years; and

(iii) Approves, subject to housing options being pursued, the future reconsideration of the four rural residential lots that provide a buffer between the Westridge community and the proposed development to ensure efficient use of this site for housing, including engagement with those affected.

Executive Summary

2. There is a national priority for housing which has led to central government implementing the National Policy Statement - Urban Development (NPS-UD). Council is required to meet the targets of the NPS-UD.

3. Council’s role and strategic approach for assessing Council-owned land that has potential for housing and urban development includes a site-by-site consideration of developable land within the city’s growth corridors. In the western corridor, land at Parau Farms and Smith’s Farm has potential for housing and urban development.

4. Parau Farms is Council-owned land that has the potential to be utilised for housing and urban development. It was acquired as active reserve and is one of a number of locations Council is investigating for potential housing development. To progress such investigation, Council will need to consult with the community due to the land having been acquired for parks / sports fields purposes. This is required by Section 138 of the Local Government Act 2002 (LGA) before Council can change the use / dispose of such land.

5. Smith’s Farm is an area of developable land with current resource consents for residential development. Decisions on the future uses of this site will be influenced by the provision of housing at Parau Farms and the investigation into sports field options in the western and central corridors of Tauranga.

Western / Central Growth Corridor

6. Council has needs and opportunities in the western and central corridors of the city to deliver additional and improved housing outcomes as well as community amenities, especially additional sports fields. This is one of the drivers for reconsidering the best use of the Parau Farms site.

7. Another driver for investigating Parau Farms is the national and local priority for housing and delays in releasing additional development capacity through projects like Tauriko West, Te Tumu and Smith’s Farm. The land is well located for residential use, close to the Bethlehem town centre and transport options.

8. While utilising the Parau Farms site for housing would remove the opportunity for a large scale active reserve development on-site, it would not necessarily compromise the overall delivery of active reserve to meet the emerging need in the western and central corridors of the city as alternative options exist, including larger sites such as Smith’s Farm or in the infield of the Tauranga Racecourse. The lower level of Parau Farms, which is less likely to be suitable for housing, may still be suitable for reserves.

parau farms SITE – Background

9. Parau Farms is an area of land situated south of SH2 in Bethlehem shown below in Figure 1. The area shaded in blue is approximately 22.4ha and is zoned as Active Open Space – Major in the City Plan and was acquired by Council in 2000. The area shaded in yellow is approximately 10.9ha and is zoned as Active Open Space, is held as Recreation Reserve, and was acquired by Council in 2001.

Figure 1 – Parau Farms

10. The land falls within the rohe of Ngāti Ranginui iwi, and Ngāti Kahu and Ngāti Hangarau hapū. The land has been held by Council for the purposes of future sports field provision for the city’s western catchment.

11. Currently, there is a management agreement for the orchard that is contained within the area shaded in blue (referred to as the ‘upper platform’). There is an annual grazing licence over the area shaded in yellow (referred to as the ‘lower platform’).

Parau Farms SITE - change in use

12. The land at Parau Farms was purchased for sports fields and passive recreation space, however, there are alternative areas available for this use which would enable the upper platform to be made available for housing, The use of this area for housing would contribute to Council's ability to meet NPS-UD targets and legislative requirements.

13. The potential provision of housing at Parau Farms aligns with UFTI connect centres urban form and also with the recently published Housing Action Plan which details the steps needed to deliver more affordable, warm, and dry homes in the right places across Tauranga and the Western Bay of Plenty region.

14. The upper platform is defined as park and to enable disposal for residential use, consultation must be undertaken in accordance with section 138 LGA.

15. The Property Acquisitions and Disposals Policy (also on this 4 October 2021 Council agenda), sets out the approach where Council is disposing of land. The discussions on the Parau Farms site have commenced prior to the adoption of the final policy with open conversations held with mana whenua. The Parau Farms land would likely be assessed under the policy as both ‘strategic’ and ‘atypical’ and therefore mana whenua Right of First Refusal would not apply.

16. The potential disposal of this site could be to Kāinga Ora – Homes and Communities, the government’s primary housing and urban development delivery arm.

17. A Memorandum of Understanding is being developed between Kāinga Ora – Homes and Communities, Ngāti Kahu hapū and Council with the purpose to formalise a common agreement for the investigation of this residential development opportunity at Parau Farms. This further develops the working relationship between all three parties and will benefit the delivery of housing and urban development at Parau Farms should it proceed.

18. A number of factors need to be considered by Council prior to deciding to alter the intended use of this land for sports fields.

Levels of Service for Active Reserves in the Western Corridor

19. It is estimated that Parau Farms could provide between 5-7 sports fields for the western catchment. Should this area of land no longer be used for this purpose, this level of service could still be met in the wider area.

20. Investigation into alternative sports fields sites and an updated supply and demand analysis for active reserves is underway, which will inform planning for delivery of active reserves in the city. Smith’s Farm

21. Smith’s Farm provides a viable alternative to meet the active reserve needs of the western areas of the city and for the citywide network. It also has the potential to provide housing.

22. Smith’s Farm contains approximately 14ha of developable land, with underlying Rural Residential land zoning, and with current resource consents for residential development, namely:

(a) A Special Housing Area (SHA) confirmed under the now repealed Housing Accords and Special Housing Areas Act 2013. This provides for over 300 residential lots including detached homes, duplexes and terraced housing. As the legislation has been repealed, variations to this consent may be challenging.

(b) Four rural residential lots immediately adjacent to the west of the SHA, adjoining the residential area at the north-eastern end of Westridge Drive. The rationale for this consent was to provide a buffer to protect the residential amenity for Westridge Drive residents in line with resolutions made by Council at the time the SHA was established.

23. In the past, concepts and proposals to develop Smith’s Farm have been considered, however, viable access and servicing to the site has constrained the ability for Council to confirm development arrangements/partnerships or to enable a feasible open market approach to deliver housing in this area. While legal road access is available, a previous Council resolution of December 2015 restricted access from Westridge Drive (which would require significant upgrade) and reticulated services such as wastewater are not available from Westridge Drive. Most recently, Council has entered a Heads of Agreement with NZTA to enable a new access road and services to be constructed through the Takitimu North Link project, to connect the site with Cambridge Road. This access road is likely to be delivered in or around 2026/27.

24. Since the SHA process commenced, Council has received a number of unsolicited approaches from residential and retirement village developers expressing interest in developing the site.

25. The current rural-residential consent could be reviewed, and an increased number and type of housing be delivered on that area of around 1ha, noting potential inconsistency with the ‘buffer’ resolution previously passed to address concerns raised by the Westridge community.

26. In summary, Council could achieve various objectives/outcomes at this site.

27. Given the potential need to relocate sports fields from Parau Farm and the significant lead time for access and services to be in place to enable development, Council is not actively assessing or progressing development options or proposals for Smiths Farm. This is not likely to change for around 12-24 months.

28. It is recommended that should a later decision of Council result in the Smiths Farm land being utilised for housing development, then the strategic objectives resolved through the “Housing Objectives and Role in Housing and Urban Development of Council Land” report on this Council agenda should apply.

Tauranga Racecourse / Golf Course Site

29. Council has agreed “to engage with existing users, mana whenua, government partners, and key stakeholders to undertake an options study to explore the most appropriate and efficient use of ‘Recreation Reserve – Tauranga Racecourse’ land in the short, medium and long term”.

30. The study area includes the Tauranga Racecourse and Golf Course, as described in Council’s Reserves Management Plan.

31. The study will include, but is not limited to, consideration of the following options:

(a) Status quo i.e. redevelopment of the racecourse on site,

(b) Redevelopment on site, with retention of the racecourse, golf course and open space, with the addition of other activities that align with community needs, which may include:

(i) auxiliary uses for Council community facilities e.g. sports fields, park and ride facilities, aquatic facility etc. By way of example, this could include consideration of locating some of the proposed western corridor sports fields to this location; and/or,

(ii) residential/commercial development, to varying levels of scale and intensity.

(c) Relocation of the racecourse and/or golf course (including assessment of alternative racecourse /golf course sites and funding options) and development of the site for residential and community purposes.

(d) As part of the options above, reconfiguration of the racecourse and/or golf course should not be precluded from consideration where this may enhance opportunities.

32. The outcome of the study may have an impact on the future use of Smith’s Farm.

parau farms SITE – disposal of park

33. The land identified for potential use for housing was acquired for park and zoned in the City Plan as Active Open Space - Major and would require disposal in accordance with section 138 of the Local Government Act 2002. This would require Council to undertake public consultation notifying its intent to change the use of the land from park. The process would include:

(a) Letters to adjoining landowners, any other stakeholders, and iwi/hapū, and advertisement of intention to dispose of the land (newspaper/online) twice over one calendar month.

(b) If no submissions in objection are received, Council can progress with a potential disposal.

34. It is important that Council continues to progress its investment in its active reserves network to meet current and future community need.

Timeframe

35. Should Council, as a result of the public consultation process, approve to dispose of the land to Kāinga Ora – Homes and Communities, the next phase would include:

(a) Further due diligence and testing of the land to allow for detailed design of potential residential development.

(b) A private plan change process to change the zoning for such a development (as although at this point, Council would have confirmed its intent to change the use from park, the underlying zoning of Active Open Space - Major would remain, which would not allow for residential development). If decisions are made to pursue urban development outcomes on the Parau Farms site it is anticipated that these processes would be led by the prospective developer rather than Council. However, Council would likely play a significant role, including in its regulatory capacity processing a consent or running a plan change process

(d) This process could take around 3 years.

Parau farms SITE - Other matters

36. Council is currently finalising a transport access solution to the land at Parau Farms. This access would be required regardless of the site's use. It is expected that a preferred option(s) will be presented to Council in October/November for approval.

37. Other related projects including the placement of the temporary cycleway from the Wairoa bridge to Carmichael Road, and stormwater discharge from properties on the northern side of SH2 into the gully at Parau Farms are being managed in alignment with the project undertaking the potential change in use to Parau Farms.

38. The lower platform at Parau Farms is flood prone. It is unlikely to be suitable for residential development but may provide active reserve outcomes or wetlands to comply with the National Policy Statement for Freshwater Management (NPS-FM). It is being investigated for sports field development feasibility and could be included in future plans for sports fields as a result of the work reviewing the supply and demand for active reserves.

Financial Considerations

39. No financial considerations are provided with this report as the report recommends the undertaking of formal consultation to obtain views from the community prior to a decision on potential disposal of Parau Farms.

40. If, following community consultation, Council decides to dispose of the land for park and progress the housing development opportunity, expenditure will be required to meet some related costs (noting that the bulk of the costs will be met by or recovered from the purchaser/developer/development partner). In that case, budgets will be proposed for approval through the upcoming annual plan process and/or recorded for offset against future proceeds of sale of the land.

Legal Implications / Risks

41. Council is legally obliged to meet the requirements of NPS-UD. This is a target within the Long-term Plan 2021-31. Development of urban capacity assists Council with meeting this target.

42. The land identified for potential housing development is defined as "park" under the LGA. Potential disposal will be in accordance with Section 138 of the LGA.

Consultation / Engagement

43. For Parau Farms, consultation will be in accordance with section 138 of the LGA and will comprise of the following:

(a) Letters to adjoining landowners, any other stakeholders, and mana whenua and advertisement of intention to dispose of the land (newspaper/online) twice over one calendar month.

(b) Have Your Say online process on the Council website to provide the ability for the community to submit their feedback.

44. All feedback will then be collated and reported to Council following the consultation.

45. Council may wish to hear from submitters in person, but this is not expressly required by section 138 LGA.

Significance

46. The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy. Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

47. In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a) the current and future social, economic, environmental, or cultural well-being of the district or region

(b) any persons who are likely to be particularly affected by, or interested in, the decision.

48. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the decision is of medium significance due to having moderate consequences for the city and the potential to affecting a number of subgroups. Council will need to consult regardless in accordance with Section 138 of the LGA.

Next Steps

49. If approved, consultation for Parau Farms will be undertaken and all feedback will be collated for reporting back to Council before February 2022.

Attachments

Nil

Ordinary Council meeting Agenda

4 October 2021

11.12 Marine Park - Proposed Reserve Reclassification and Marine Research and Education facility

File Number: A12893061

Author: Brigid McDonald, Manager: Strategic Investment & Commercial Facilitation

Gert van Staden, Senior Strategic Advisor

Authoriser: Christine Jones, General Manager: Strategy & Growth

Purpose of the Report

1. To seek approval to reclassify a portion of Marine Park, under the Reserves Act 1977, and to initiate the public lease tender process under the Public Bodies Leases Act 1969.

Recommendations

That the Council:

(a) Approves in principle, subject to community consultation and deliberations, the reclassification of a portion of Marine Park identified as SO plan 530292, appended to this report as Attachment A, from recreation reserve to local purpose (marine research and education facility) reserve, subject to feedback following engagement with tangata whenua and public consultation being considered;

(b) Confirms the consideration of feedback following public consultation [will / will not] include the hearing of oral submissions; and

(c) Subject to a decision to reclassify the area of reserve referred to above, approves the initiation of the lease tender process under the Public Bodies Leases Act 1969, if and when the new classification has been confirmed.

Executive Summary

2. There is a long-standing proposal by the University of Waikato to develop a Marine Research and Education Facility in Tauranga. Council has identified city-wide benefits and has supported such a facility being established. Marine Park (the reserve) has been identified as the most suitable parcel of land for this activity.

3. The recent attempts at facilitating this proposal have been unsuccessful for several reasons, primarily due to competing interests and views as to the most appropriate long-term use of the land.

4. To progress the proposal, the recommendation to Council is to reclassify a portion of the reserve, from recreation reserve to local purpose (marine research and education facility) reserve, and to lease the reclassified area via public tender, as is required for such a lease of a local purpose reserve.

5. Staff are engaging with tangata whenua. Feedback will be presented for consideration as part of the deliberations report.

6. The proposed reclassification will be publicly notified. Feedback will be considered and reported back to Council for a decision.

7. If the reclassification is confirmed, it is anticipated that the University of Waikato will submit a lease proposal for a marine research and education facility through the tender process. This process would be open to application from other entities which have an interest in, and which are able to demonstrate the capability of establishing and operating such a facility.

Background

8. Since 2017, Council has been investigating feasible locations within the city for the potential development of a Marine Research and Education Facility (the facility).

9. The facility will increase the quality and quantity of tertiary and post-tertiary education, allowing Tauranga to further establish itself in this important and valuable sector.

10. In addition to the above primary benefits, there are also numerous flow-on benefits to the community and regional economy especially in the construction industry, on-going employment opportunities as well as environmental benefits stemming from an increased capability to protect New Zealand's marine environments through the development of marine processes, products and technologies. It will also attract research and development activity and academic staff and students to the city, to build on the existing investment of the university and its partners.

11. Following an assessment of landholdings that commenced in May 2017, and consultation on two sites at Sulphur Point including the subject site at Marine Park, Council approved in principle its intention to seek the revocation of the reserve status of a portion of the reserve, at a Council meeting on 16 October 2018 (M18/90.5). Reserve revocation was sought because it was not possible to lease a recreation reserve for the intended purpose and an unencumbered site more easily facilitated development. This was subsequent to council deciding against an alternative (non-reserve) site, located at the northern end of Keith Allen Drive at Sulphur Point, adjacent to the sports fishing club and marine car park.

12. Consultation on the proposed revocation, which included information about the facility, took place from 12 November to 14 December 2018, with two open day sessions held at the Tauranga Fish and Dive Club adjacent to the proposed site. The full deliberations report is included as Attachment B, supplementary paper.

13. Council also engaged with Tangata Whenua from late 2018 onwards, with information provided to all Tauranga Moana iwi and hapu. Responses were received from Ngai Te Rangi, in support; and while initial responses from Ngati Pukenga and Ngai Tamarawaho opposed the application, their support was provided for the proposal in mid-2020.

14. The previous Council affirmed its support for the facility and the revocation through the consultation process, confirmed by resolution M19/51.5.

15. Following engagement, public consultation and the Council decision in support of revocation, the revocation application was submitted to the Department of Conservation (DOC) in November 2019. The application comprised relevant Council reports and resolutions and supporting material, and objections and other submissions received by Council.

16. On 29 July 2020, the then Minister of Conservation declined the application. The Council was of the view that some of the material on which the former Minister based the decision was incomplete and that was raised with DOC and the Minister's office with a request that the refusal be reconsidered. Subsequent communications with DOC have advised that DOC will not reconsider Council's application without the entire revocation process being run afresh.

17. Consideration has again been given to alternative locations; however, Marine Park remains the optimal location for the facility for the reasons as provided in paragraph 19(a) to (f) below.

18. As an alternative to reserve revocation, Council has the option of reclassifying the relevant part of the reserve, to a purpose which will enable the lease for the proposed facility to be granted. Under this process, reserve status will be retained. The Minister has delegated the power to reclassify reserves to local councils.

Rationale for location

19. The reserve has been identified as the most suitable location for the facility, considering the factors below:

(a) Proximity to a deep-sea channel connected to the harbour entrance

(b) Proximity to water for boat launch and water intake for the filtration tanks

(d) Adequate area to provide for required functions (generic and specialist laboratories, as well as research facilities)

(e) Community outreach and public engagement capabilities

(f) Proximity to Tauranga CBD campus on Durham Street

20. These factors are key requirements of the University due to the nature of the facility and planned functions. This is the only site of adequate size and proximity to a deep-sea channel which is available for the development. Although the northern Sulphur Point site was originally considered, it is not large enough to site a full-sized facility with ancillary amenities. No other suitable sites have been identified.

Strategic / Statutory Context

21. Council has previously been in support of this proposal, due to the wide-ranging primary and flow-on benefits a facility of this type offers. This is especially true in Tauranga with the strong connection to the harbour/ocean and the activities it supports, and the current and future challenges to be faced such as climate change.

22. Some of the specific outcomes sought from the project include:

a) Public benefit, including accessible, marine and coastal environmental based education and/or public engagement initiatives

b) Resilience understanding; including innovative and sustainable responses to climate change, water quality and sea level rise. We have considerable modelling regarding natural hazards risks and climate change implications but need to understand this more in an applied way, e.g. environmental engineering, policy etc.

c) Identified benefit to Tauranga Moana Iwi and Hapu, focused on educational wellbeing and/or provision for Maori culture and design in such research and education and Matauranga approaches as well as social and economic outcomes.

d) Employment opportunities to people living in Tauranga and the wider Bay of Plenty region including Eastern Bay aquaculture initiatives.

e) Increased tertiary education (including research) capabilities, in undergraduate, post graduate and doctoral programmes as well as national and international collaboration.

f) Potential identification of sustainable and valuable commercial development opportunities, e.g. entrepreneurial universities, cancer drugs, nutraceutical, etc.

23. In order to deliver on the outcomes, Marine Park has been identified as the most suitable site for the reasons as stipulated in paragraph 19.

24. The subject site is currently classified as recreation reserve; however, its recreational value is arguable, and its usage in reality is limited.

25. There was considerable engagement and consultation on the previous proposal to revoke the reserve status of the same area of land in 2018-19, the feedback from which is addressed in Attachment B. In summary, feedback was divided.

26. We know from Council records that the area is used occasionally for events and some informal recreation. An observational study of Marine Park conducted between 25 January and 3 February 2019 concluded that there appeared to be little active recreational use of the grassed area between the Fish and Dive Club and the northern boundary of the reserve. People that were counted were generally passing through, walking dogs, fishing, socialising, or gaining access to the beach. During the busiest period observed, 11 people were seen using the area. A more recent report by Xyst consultants further confirmed that the area proposed to site the facility is underutilised, with a maximum of 16 users counted on the afternoon of Sunday, 31 January 2021. These users were mostly associated with other zones in the Marine Park area, and generally consisted of people going or returning from fishing, vehicles or obtaining access to the beach and walking dogs. No active recreation or sport was observed. The proposed facility is therefore unlikely to interfere with casual recreational use and will significantly increase activation of the reserve.

27. For further information, please refer to Image 1 below. The majority of users were observed within Zone 4, associated predominately with camper vans and vehicles. The proposed location for the facility is immediately adjacent (to the right) of Zone 2 shown below.

Image 1

28. The proposal will not interfere with existing public accessways, access to the (significant) balance of the reserve and, in particular, access along the harbour edge of the reserve. The siting of the facility will not materially affect the recreation amenity on the balance of the reserve and indeed, it is likely to enhance the area as a public space for the reasons provided in table 2 below. Additionally, it would enable new educational opportunities, investment in the city and the creation of quality jobs, and, at the same time, will help maintain and enhance our precious coastal environment. By reclassifying the land, it will remain within the overall reserve estate and will still be subject to relevant Reserves Act protections and constraints.

29. It is acknowledged that the amenities and facilities surrounding the reserve are of considerable value, particularly to those who enjoy the deep-water access from the existing facilities (including recreational boaties, waka ama and dragon boat clubs). The boat ramps and adjacent car parking areas are well used at peak times. Funds to upgrade and provide new facilities at Sulphur Point are budgeted in the current Long-Term Plan (new 6-lane boat ramp at the northern end, formalised car parking and additional furniture and landscaping), to be delivered from 2024 onwards. The proposed facility will therefore not interfere with current use or planned future investment in the reserve and its facilities.

30. As reported previously, enabling the facility aligns to council's intention to enable a city of talent, innovation and economic opportunities, and to enable inward investment in strategic economic assets. This will be New Zealand's only marine research and education facility focused on resilience and restoration of our urbanised coasts, situated adjacent to the country's largest commercial port.

31. Overall, although the proposed reclassification may involve some theoretical reduction in recreation amenity, given the nature and current use of the land, and taking into account that the balance of Marine Park will remain recreation reserve, it is considered this will be immaterial. On the other hand, the benefits of the proposed local purpose reserve classification, as set out above, are significant. Reclassification will mean the subject site remains protected as a reserve subject to the Reserves Act, and it will remain in Council ownership. This will afford greater protection for the site as part of the wider reserve than if the reserve classification were revoked and will limit the use of the site to the intended purpose.

32. As the proposal will require a lease, consideration will be given to policies regarding use of Council-administered land. Prior to entering into a long-term lease, council needs to assess:

(a) The impact on public access and public benefit;

(b) The potential of the project to enhance the space; and

33. The preliminary findings of the assessment against these criteria are contained in Table 1 below:

Table 1

Consideration		Impact	Findings
a	The impact on public access and public benefit	Minor negative impact	General public access to the reserve will be maintained and only a portion of the reserve will be used to site the facility. Although this precludes that specific section of the reserve from general use, it does not impact the use of the wider reserve. Especially relevant here is the general low usage of the grassed area identified in the Xyst and previous reports and the fact the majority of users were associated with a zone which will not be impacted by the proposed facility
b	The potential of the project to enhance the space and improve public benefit	Significant positive impact	The facility will offer significant reserve activation as well as major economic benefits. Increased general use of the park will also improve safety through passive surveillance as identified in the Crime Prevention through Environmental Design standards. Quality job creation and increased coastal environment protection capability are amongst the various benefits identified. Additionally, a public engagement and education space is proposed, housing a small aquarium with educational resources, cameras in the harbour and activities for students, families and school visits.
c	The likelihood of the land being declared surplus or required for other purposes	No impact	The proposal will not impact on council’s planned upgrades to meet future levels of service for general park users or the deep-water recreation community. The reserve cannot be declared surplus as it is required for future service levels.

Options Analysis

34. Table 2 below identifies the options which have been assessed. Staff recommend option two as set out in the recommendation.

Option		Advantages	Disadvantages	Key risks
1	Revocation of reserve status	Removes the Reserves Act status from the land (or portion of the land).	Requires re-run of revocation process from the beginning, followed by DoC decision/approval	Potential significant delays, no guarantee that Minister will confirm revocation
2	Reclassification of reserve	Retains the land’s reserve status, decision to reclassify is delegated to council	Additional step to lease the land via public tender is required	Potentially multiple applicants for the site under the process required by the Public Bodies Leases Act 1969
3	Reserve exchange	Not viable	Not viable	Not viable due to no suitable land for exchange being available
4	Alternative site investigation	Not viable	Not viable	Previous investigation confirmed Marine Park as the most suitable site

Financial Considerations

35. There are no significant financial considerations regarding the reclassification and subsequent leasing of the site, this can be undertaken within current staff resource and operational budgets.

36. There is no identified additional financial burden.

Legal Implications / Risks

37. Reclassification and subsequent leasing of the facility will reduce general access to this 7,000m² area of the 100,802m² reserve land; however, this can be mitigated by incorporating design principles to maintain public access-ways e.g. a proposed 20-metre wide set back from the harbour edge.

38. Conversely, not facilitating the proposal can lead to other regions being considered for the facility or the facility not proceeding - the loss of a valuable opportunity, depriving Tauranga and the sub-region of the benefits associated with the proposal.

39. The tender process required by the Public Bodies Leases Act 1969 will potentially enable applications to be made by other entities interested in establishing a marine research and education facility. The applications will need to be assessed in accordance with the tender process in that Act. That will enable the applications to be assessed in accordance with all relevant considerations, including whether the applicant can demonstrate the capability of establishing and operating such a facility. Staff have delegated authority to enter into and decide on the preferred applicant under the tender process.

Significance

40. The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy. Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

41. In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a) the current and future social, economic, environmental, or cultural well-being of the district or region

(b) any persons who are likely to be particularly affected by, or interested in, the proposal.

42. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the proposal is of medium significance.

ENGAGEMENT AND CONSULTATION

43. Taking into consideration the above assessment, that the proposal is of medium significance, officers are of the opinion that the following consultation/engagement is required under the Reserves Act 1977 and Local Government Act 2002:

(a) Engagement with tangata whenua / mana whenua on the proposed reclassification and potential use of the land.

(b) Consultation with DOC and notification of the reasons why the reclassification is required.

(c) Public consultation on the reclassification, which will include advertising/information through print and online media and the ability for people to provide feedback to Council within a specified period.

(d) All feedback will be reported on and considered through a deliberations report to Council.

44. There is no statutory requirement to hold a public hearing for the proposed reclassification of reserve; this is a matter of discretion for Council. Proceeding to consider written feedback only would streamline the process (administration, report preparation and hearing time) and still enable interested persons and groups to have their say. Alternatively, Council may wish to allow the 2-3 extra weeks required to add this step to the process, ahead of a separate deliberations report and meeting.

45. In the event the Council decides to proceed with the reclassification, staff would facilitate the public lease tender process, engage with applicants, and confirm the preferred applicant.

Next Steps

46. Staff will initiate the consultation and engagement processes and will present views as part of the deliberations report.

47. Council will confirm (or abandon) the reclassification and lease tender following Council deliberations and decision-making.

Attachments

1. Attachment A - SO plan 530292 - A10298399 ⇩

2. Attachment B - deliberations report - A10271556 (Separate Attachments 1)

Ordinary Council meeting Agenda

4 October 2021

11.14 Distribution Policies for Grants for Development Contributions on Community and Papakāinga Housing

File Number: A12908076

Author: Anne Payne, Strategic Advisor

Authoriser: Christine Jones, General Manager: Strategy & Growth

Purpose of the Report

1. This report provides two draft distribution policies to Council for consideration, along with several matters for direction that arose during the policy development process.

Recommendations

That the Council:

(a) Adopts the Grants for Development Contributions on Community Housing Policy (with, if necessary, the amendments listed in paragraphs xx of this report)

(b) Adopts the Grants for Development Contributions on Papakāinga Housing Policy (with, if necessary, the amendments listed in paragraphs xx of this report)

(c) Delegates to the General Manager Strategy & Growth the approval of the final wording of the policies consistent with Council’s direction above (this resolution only needed if the adopted amendments warrant it).

Executive Summary

2. Council established two grant funds to subsidise development contribution costs and requested staff to prepare policies regarding the distribution of those grant funds.

3. Working with potential recipients of those grant funds, staff have prepared two draft policies for consideration, one covering each fund. During the development of the draft policies there was much that was consistent and agreed between different stakeholders and between staff and stakeholders. There are a small number of issues where different views were expressed and where direction is sought before the policies are adopted and implemented. Those issue are presented in this report.

Background

4. On 15 March 2021, Council resolved that two new grant funds, each being $250,000 per year, were to be included in years 1 to 3 of the draft Long-term Plan 2021-2031, funded from the proceeds of the Elder Housing portfolio sale.

5. The purpose of the two grant funds was to assist development of community and papakāinga housing within the city. Council intended that the grant funds should be available to fully subsidise development contributions on papakāinga housing and on community housing developments by registered community housing providers (“CHPs”).

6. Council directed that policies be developed that define eligibility, application, assessment and approval processes for these grant funds.^{^[4]}

7. In response to public submissions to the draft Long-term Plan, both grant funds were subsequently doubled to $500,000 per annum for years 1 to 3 of the Long-term Plan 2021-2031.

Distribution policy development process

8. As there are only a small number of potential recipients for both grant funds, Tauranga City Council staff worked directly with these parties to draft two separate policies, as follows:

(a) regarding papakāinga housing: two workshops with Te Rangapū Mana Whenua o Tauranga Moana on 29 April and 29 July, as well as a brief discussion on 27 May; one workshop with local Māori Land Trust representatives on 14 July.

(b) regarding community housing: two workshops with registered CHPs working locally and Community Housing Aotearoa on 4 May and 19 May.

9. Workshop participants generally appreciated being involved from the outset, and that Council has taken action to support progress of community and papakāinga housing in Tauranga.

10. Both workshop groups discussed the value of collating a ‘pipeline’ of proposed developments and made plans to progress this task. Through the SmartGrowth partnership the Housing Action Plan was adopted in July 2021 which includes specific actions with respect to identifying and progressing public housing, community housing and housing for Maori. Each action has a responsible entity and there is a joint Housing Action Plan Working Group. This would be an appropriate vehicle through which to develop and progress a pipeline of proposed developments.

11. As the affected parties have had the opportunity to input into the policy development process, and as the substantive decision to implement the grant funds was made as part of the Long-term Plan 2021-2031 process, officers’ view is that no further public consultation on the draft policies is required.

12. Given that both the grant funds and the policies are new, it will be important to conduct a review after the first year of operation to determine, among other things, whether the size of the fund is adequate in relation to the demand, and whether the distribution policies are operating as intended. This intention has been recognised in both policy documents.

13. During the process of developing the policies there arose a small number of matters where Council direction is sought. These are addressed in the Options Analysis section of this report below.

Policy structure and content

14. The two draft policies take quite different approaches to achieving the intended outcomes, reflecting what will work best for those developing the housing in that sector. From an implementation perspective, both proposed approaches seem simple and workable at this stage.

15. Both draft policies specify that:

(a) The grants apply to development contribution fees incurred, so the grant funding process is triggered by resource or building consent applications. (Note that this matter is addressed in the Options section below.)

(b) The grants are not retrospective, i.e. grants are only available for development contributions paid on or after 1 July 2021.

(d) Housing is only eligible for one grant fund, no ‘double dipping’.

(e) Eligible housing developed must be primarily not for commercial gain (this is specified within the registered CHPs’ requirements of registration and is directly specified in the draft papakāinga housing policy).

(f) Those considering community or papakāinga housing development are advised to talk with Tauranga City Council at the very outset, to enable good advice and awareness.

(g) A list of all successful grant applications will be reported to Council in an open meeting at least annually.

(h) The policies will be reviewed annually with affected parties.

Community housing approach – and matters to note

16. Registered CHPs wanted a simple, fair and equitable approach that did not require them to compete against each other for the grant funding.

17. The approach proposed is that all registered CHPs will pay development contributions for eligible developments as they fall due. Then, after the financial year end and a verification process outlined in the draft policy, Tauranga City Council will pro-rata the entire year’s grant fund across the registered CHPs according to the dollar value of development contributions each has paid for eligible developments that year.

18. Workshop participants were comfortable with the retrospective nature of the development contribution fee reimbursements, and that they may have less than (but never more than) 100% reimbursement of their development contribution fees depending on how much other eligible development happened in the same year. Their intention will be to factor their grant allocations into their following year’s community housing development programmes.

19. The result of this retrospective approach is that grants will support the community housing provider in general, rather than provision of the specific community housing development itself. This seems appropriate for the nature of registered CHPs’ businesses.

20. Two matters relating to this policy are covered in the Options Analysis section below:

(a) Whether the grant should apply to only city-wide development contributions or both city-wide and local development contributions

(b) Whether progressive home ownership housing should be eligible for the grant or whether only rental community housing should be eligible.

Papakāinga housing approach – and matters to note

21. Workshop participants see the grant fund as concrete action Council is taking to support the aspirations of local iwi/Māori to return to their whenua through the provision of affordable, safe and healthy homes.

22. The approach proposed is on a ‘first in, first served’ basis, where eligible developments would have their development contributions ‘paid’ directly by Tauranga City Council at the time they fall due. This would be done through in-house transfer processes at the time consents are approved, requiring streamlined processes and clear eligibility criteria to ensure consents can be issued as soon as possible.

23. Three matters relating to this policy are covered in the Options Analysis section below:

(a) As for the community housing grant policy, whether the grant should apply to only city-wide development contributions or both city-wide and local development contributions

(b) The risk that the fund is exhausted before all qualifying applications in a year have been received

Strategic / Statutory Context

24. Housing supply across all sectors-of-need is a significant issue in Tauranga. Through the Long-term Plan process, it was recognised that reducing the cost of developing new community and papakāinga housing by subsidising development contribution fees was a priority action that Council could take to assist these sectors.

policy context

25. These two policies have been prepared separately and specific to the individual grant funds. Council has other grant funds that are governed by their own policies. On 26 July 2021 Council adopted the Community Funding Policy. The cover report at that time noted that “… the draft policy has been deliberately written so in the future, it could serve as an “umbrella” policy providing general guidance as to Council’s expectations and decision-making around how we financially support community organisations.” That policy currently covers the Community Grant Fund and the Community Match Fund. It is possible that, in time, the two policies subject to today’s report could be incorporated into a broader ‘grants policy’ under the guise of the Community Funding Policy. If and when this idea is pursued a report will be prepared for Council’s (or the appropriate Committee’s) consideration.

Options Analysis

Issue 1: Community housing policy – city-wide or city-wide and local development contributions?

26. Development contributions come in two types:

· Local development contributions, covering the cost of infrastructure that services the specific area, usually charged at the time of resource consent being granted for subdivision

· City-wide development contributions, covering the cost of city-wide infrastructure, usually charged at the time of a building consent being granted.

27. During the development of the draft policy there were mixed views as to whether the grant funds should be applied to both types of development contributions or just to city-wide development contributions. The arguments for each approach are summarised below.

Option

Arguments for

Both citywide and local development contributions covered by the policy

(per the policy as drafted)

All development contributions have an impact on the cost of new housing and therefore potentially the supply of new housing.

Only citywide development contributions covered by the policy

Citywide development contributions, charged at the time of building consent. have a much closer nexus to the development of new housing. The housing needs of the city are well established and therefore the immediacy of applying grants to imminent new builds is attractive.

In contrast, local development contributions, charged at the time of resource consent, may be several years prior to housing being provided.

Subsidisation of local development contributions may have the unintended effect of distorting land values in areas where some land has received the subsidy and other land has not.

28. One potential ‘middle ground’ approach is to make grants available to subsidise citywide development contributions first and if (and only if) there are grant funds remaining at the end of the year, consideration be given to then subsiding any local development contributions paid during the year.

29. The draft policy prepared in conjunction with stakeholders is based on the assumption that all development contributions are covered. Should Council determine that a different approach is required, the following edits are recommended for consideration.

30. If the funding is limited to only citywide development contributions:

(a) Amend clause 2.3 to state “Only citywide development contribution fees are in scope for this policy.”

(b) In clause 3.1, remove the definition of ‘local development contributions’ (or alternatively amend the definition to state that the definition is included for completeness only and that local development contributions are not covered by the policy).

(d) Amend clauses 4.3, 5.1.3, 5.2.3, 5.3.1 (and subsections 1, 2, and 4) to add the word “citywide” before each instance of “development contribution fees” or “development contributions” as appropriate.

31. If there are unspent grant funds at the end of a year which Council determine may then be applied to local development contributions:

(a) Add a new clause 5.1.4 stating “In the event that all citywide development contributions on eligible developments have been met in full by grants and there remain unallocated grant funds available in a particular year, Council will consider applying those remaining grant funds to local development contributions paid on eligible developments during the year.”

Note that if this approach is preferred then the change recommended to clause 3.1 in 30(b) above should not occur (i.e. the definition of local development contributions should remain).

(b) Amend the numbering of existing clauses 5.1.4 and 5.1.5 accordingly

(c) Amend clause 6.1 to state “The implementation of this policy is delegated to the Chief Executive and their sub-delegates, with the exception of decisions made under clause 5.1.4 which remain with Council or the appropriate Council Committee.”

Issue 2: Community housing policy – ownership types

32. During development of the draft policy, different views were expressed regarding whether progressive home ownership housing should be eligible for the grant or whether only rental community housing should be eligible. Arguments for the two approaches are summarised below.

Option

Arguments for

Include progressive home ownership

(per the policy as drafted)

All new housing for demographics in genuine need is helpful, regardless of ownership model.

Every family (or other unit of housing demand) entering into a progressive home ownership model is one fewer family in the undersupplied rental market.

Recent changes have seen progressive home ownership housing included in registered CHPs’ scope of operations.

Do not include progressive home ownership

There is a significant undersupply of rental community housing and a perception that perhaps this should take priority.

Once a home has moved into private ownership, there is no guarantee that it would continue to serve as community housing.

33. The draft policy prepared in conjunction with stakeholders is based on the assumption that progressive home ownership arrangements are covered in the definition of ‘community housing’.

34. Should Council determine that a different approach is required, the following edit is recommended for consideration:

(a) In clause 3.1, amend the definition of ‘community housing’ to state “Progressive home ownership arrangements are excluded from the definition of community housing.”

Issue 3: Papakāinga housing policy – city-wide or city-wide and local development contributions?

35. This issue is very similar to Issue 1 above.

36. It should be noted for some, (though potentially not all), papakāinga housing may proceed without resource consents being needed due to the housing being on Multiply Owned Maori land and not being subdivided for development. In these circumstances both the citywide and local development contributions will be payable on building consent.

37.

Option

Arguments for

Both citywide and local development contributions covered by the policy

(per the policy as drafted)

As for Issue 1.

Only citywide development contributions covered by the policy

As for Issue 1.

38. As under Issue 1 above, a potential ‘middle ground’ approach is to make grants available to subsidise citywide development contributions first and if (and only if) there are grant funds remaining at the end of the year, consideration be given to then subsiding any local development contributions paid during the year.

39. The draft policy prepared in conjunction with stakeholders is based on the assumption that all development contributions are covered. Should Council determine that a different approach is required, the following edits are recommended for consideration.

40. If the funding is limited to only citywide development contributions:

(a) Amend clause 2.4 to state “Only citywide development contribution fees are in scope for this policy.”

(d) Amend clause 5.3.3 to state “The process is outlined in Schedule 1.”

(e) Amend clause 5.3.3 (subsections 1, 2, and 3) to remove “resource or”.

(f) Amend clauses 4.2, 5.1.3, 5.3.1, 5.3.3 (subsections 3 and 5) to add the word “citywide” before each instance of “development contribution fees” or “development contributions” as appropriate.

41. If there are unspent grant funds at the end of a year which Council determine may then be applied to local development contributions:

Note that if this approach is preferred then the change recommended to clause 3.1 in 38(b) above should not occur (i.e. the definition of local development contributions should remain).

(b) Amend the numbering of existing clauses 5.1.4 and 5.1.5 accordingly

Issue 4: Papakainga housing – risk that the fund is exhausted before all qualifying applications in a year have been received

42. During the development of the draft policy it was recognised that the ‘first in, first served’ nature of the distribution approach raises the risk that funding in any particular year will be exhausted before all qualifying applications have been met.

43. Two approaches to this risk are outlined below.

Option

Comments

Refer the issue to Council as and when it arises

(per the draft policy – see clause 5.3.3, step 5)

Recommended

This option recognises the risks but simply refers the issue to the Council of the day to consider.

Under the wording in the draft policy there is no inbuilt expectation as to what Council may consider as possible options.

State in the policy that a request for additional funding will be made to Council if and when the issue arises

(preferred by stakeholders but not supported by staff)

Under this approach, wording would be included which specifically references the possibility of additional, unbudgeted funding being made available to eligible developments in the event that the budgeted funding is exhausted.

Such unbudgeted funding would need to be expressly authorised by Council.

Any additional funding for papakāinga housing grants would be inconsistent with the total funding made available for community housing grants under the parallel fund.

44. The draft policy attached is based on option 4A above. However, this is inconsistent with the views of stakeholders who preferred 4B.

45. Should Council determine that the 4B approach is appropriate, the following edits are recommended for consideration.

(a) Include a new principle at clause 4.3 stating “If there is insufficient funding remaining in the Grant Fund for any Year, then any subsequent applications will be considered by Council on a case-by-case basis. Council retains sole discretion to approve or deny a grant in these circumstances.”

(b) Re-number current principle 4.3 accordingly.

(c) Amend the end of clause 5.3.3, step 5 to state “TCC staff will prepare a report to Council ~~on the circumstances~~ requesting that Council considers reimbursement of the development contribution fees on a case-by-case basis.”

(d) Add a clause 6.2 which states “The exception to 6.1 is if there is insufficient funding remaining in the Grant Fund for any year, then any subsequent applications will be considered by Council on a case-by-case basis. Council retains sole discretion to approve or deny a grant under these circumstances.”

Issue 5: Papakāinga housing policy – retrospective applications

46. During the development of the draft policy a request was made for the grant fund to retrospectively reimburse development contributions in specific instances. These circumstances included where the matter had been formally raised with Tauranga City Council (e.g. via letter or LTP/AP submission), but the development had had to go ahead before this grant fund was available.

47. Options related to this issue are summarised below.

Option

Comments

Confirm the policy is not to be applied retrospectively

(per the draft policy – see clause 5.1.5)

Recommended

Consistent with standard council approach that grant funds are not applied retrospectively.

Ensures that grant funds are allocated to the provision of new housing (not the retrospective funding of housing that has already been built).

Consistent with the approach in the community housing policy.

This option does not preclude separate consideration of such retrospective issues at a governance level, but it excludes them from what is otherwise a fairly simple, forward-focused policy and grant fund.

Amend the policy to address retrospective applications in specific circumstances.

Creates a formal route to revisit an issue or issues that have been raised in the past but not resolved to the satisfaction of affected parties.

May not directly affect the cost or viability of the provision of new housing.

48. The draft policy attached is based on option 5A above.

49. Should Council determine that the 5B approach is appropriate, clause 5.1.5 would need to be amended or removed and policy wording would need to be created to provide clarity regarding the circumstances where retrospective applications will be considered.

Financial Considerations

50. Funding of $500,000 per annum for each grant fund (for three years) was provided through the Long-term Plan 2021-2031 process. Other than staff time to assess and process the distribution of grant funds there are no further costs associated with the development and application of these distribution policies.

Consultation / Engagement

51. The substantive decision to create the two new grant funds was made, and consulted on, as part of the Long-term Plan 2021-2031 development process.

52. The draft policies relate solely to the distribution (eligibility, application, assessment and approval) processes for the two new grant funds. As there are only a small number of potential recipients for both grant funds, Tauranga City Council staff worked directly with those parties to draft two separate distribution policies that would best meet the intended purpose of the grant funds.

Significance

53. The Local Government Act 2002 requires an assessment of the significance of matters, issues, proposals and decisions in this report against Council’s Significance and Engagement Policy. Council acknowledges that in some instances a matter, issue, proposal or decision may have a high degree of importance to individuals, groups, or agencies affected by the report.

54. In making this assessment, consideration has been given to the likely impact, and likely consequences for:

(a) the current and future social, economic, environmental, or cultural well-being of the district or region

(b) any persons who are likely to be particularly affected by, or interested in, the decision.

55. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the underlying matter of the two grant funds is of medium significance, however the decision proposed in this report (regarding distribution policies for the two grant funds) is of low significance.

ENGAGEMENT

56. Taking into consideration the above assessment, that the decision is of low significance, officers are of the opinion that no further engagement is required prior to Council making a decision.

Next Steps

57. Stakeholders involved in the development of the policies will be informed of Council’s decisions and the adoption of the policies. The policies will be published on Council’s websites. Internal processes will continue to be developed to enable simple implementation of the policies.

Attachments

1. DRAFT Grants for DCs on Community Housing Policy - (Word) version to Council 4-10-21 - A12926890 ⇩

2. DRAFT Grants for DCs on Papakainga Housing Policy - (Word) version to Council 4.10.21 - A12926849 ⇩

[1] Stranded costs is a term used in the three waters reform. It describes the expenditure incurred by the council for the benefit of three waters but which has not transferred to three waters. These costs get stranded with the remaining council which has to cover them into the future (examples of stranded costs could include the work on SAP finance that is the three waters’ share of that investment and licencing level, asset management system investment with Watercare if that arrangement does not transfer to entity B, and accommodation costs for waters staff).

[2] Most water users are connected to the council supply. A small number of non-council supplies are in existence (about 32 private suppliers), which will be impacted by the new Water Services Act.

[3] Fixed assets values were values used in the 2021-31 LTP - prior to June 2021 final revaluation.

[4] Council Agenda, 15 March 2021, items 11.1 and 11.2: Council Agenda 15 March 2021 and Council Minutes, 15 March 2021, pp 5-6: Council Minutes 15 March 2021


AGENDA Ordinary Council meeting Monday, 4 October 2021
I hereby give notice that an Ordinary Meeting of Council will be held on:
Date:	Monday, 4 October 2021
Time:	10.30am
Location:	Tauranga City Council Council Chambers 91 Willow Street Tauranga
Please note that this meeting will be livestreamed and the recording will be publicly available on Tauranga City Council's website: www.tauranga.govt.nz.
Marty Grenfell Chief Executive

Chairperson	Commission Chair Anne Tolley
Members	Commissioner Shadrach Rolleston Commissioner Stephen Selwood Commissioner Bill Wasley
Quorum	Half of the members physically present, where the number of members (including vacancies) is even; and a majority of the members physically present, where the number of members (including vacancies) is odd.
Meeting frequency	As required

· To ensure the effective and efficient governance of the City

· To enable leadership of the City including advocacy and facilitation on behalf of the community.

· Oversee the work of all committees and subcommittees.

· Exercise all non-delegable and non-delegated functions and powers of the Council.