Agenda of Ordinary Council Meeting - Monday, 28 February 2022

UNCONFIRMED Ordinary Council meeting Minutes

8 February 2022

MINUTES

Ordinary Council meeting

Tuesday, 8 February 2022

Order of Business

1 Opening Karakia. 3

2 Apologies. 4

3 Public Forum.. 4

3.1 Golf Road Reserve partial reclassification - Submitters Allan Goodhall, Rob Paterson, Margaret Bowditch, Renee McMillan. 4

3.2 Pōteriwhi/Parau Farms - Submitter Mary Dillon. 6

4 Acceptance of late items. 6

4.1 Annual Plan 2022/23 – Community Grant Fund. 6

5 Confidential business to be transferred into the open. 6

6 Change to the order of business. 6

7 Confirmation of Minutes. 6

7.1 Minutes of the Council meeting held on 15 November 2021. 6

8 Declaration of conflicts of interest 7

9 Deputations, Presentations, Petitions. 7

Nil

10 Recommendations from Other Committees. 7

Nil

11 Business. 7

11.1 Golf Road Reserve - Submissions on Proposed Partial Reclassification. 7

11.2 Poteriwhi (Parau Farms) - Consultation Outcomes. 8

11.3 2023 Annual Plan Issues and Options: Spaces and Places. 9

11.4 Tsunami Sirens. 11

11.5 Tauranga Public Transport Joint Committee Terms of Reference. 12

11.6 Traffic & Parking Bylaw update No. 33. 13

11.7 Annual Plan 2022/2023 – Community Grant Fund. 13

12 Discussion of Late Items. 14

13 Public excluded session. 14

13.1 Public Excluded Minutes of the Council meeting held on 15 November 2021. 15

13.2 Exemption to open competition - Te Maunga Upgrade Programme physical Works. 15

13.3 Variation to Contract for Communications Services for Cameron Road Stage 1. 15

13.4 The Sale of Pitau Road village and Hinau Street Village - Disposal Classification. 15

14 Closing Karakia. 16

MINUTES OF Tauranga City Council

Ordinary Council meeting

HELD AT THE Bay of Plenty Regional Council Chambers, Regional House, 1 Elizabeth Street, Tauranga

ON Tuesday, 8 February 2022 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), Tony Aitken (Acting General Manager: People & Engagement), Nic Johansson (General Manager: Infrastructure), Christine Jones (General Manager: Strategy & Growth), Gareth Wallis (General Manager: Community Services), Ross Hudson (Team Leader: Planning), Cheryl Steiner (Consultant: Spaces and Places), Andy Mead (Manager: City & Infrastructure Planning), Angela Martin (Contractor), Paul Dunphy (Director of Spaces & Places), Warren Aitken (Team Leader: Environment), Ana Hancock (Senior Project Manager), Mark Armistead (Principal Urban Forester), Paula Naude (Manager: Emergency Management), Brendan Bisley (Director of Transport), Anne Blakeway (Manager: Community Partnerships), Richard Butler (Funding Specialist), Ceilidh Dunphy (Manager: Community Relations), Coral Hair (Manager: Democracy Services), Sarah Drummond (Committee Advisor), Anahera Dinsdale (Committee Advisor)

1 Opening Karakia

Commissioner Shadrach Rolleston opened the meeting with a karakia.

Presentation – stephen burton, 25 years’ service

Commission Chair Anne Tolley, on behalf of the Council, congratulated Stephen Burton on 25 years’ service and thanked him for his long service and valued contribution to the city and the community. Stephen joined Tauranga City Council in 1997 and under his leadership, and thanks to the capability and capacity that he had built up within City Waters over the years, Tauranga was recognised as having one of the best council water services in the country.

Commissioner Tolley stated that Stephen's professionalism, leadership, sector experience and in-depth knowledge of the waters industry were reasons why the Department of Internal Affairs shoulder-tapped him to assist with the planning and implementation of the Three Waters Reforms. Stephen was currently on secondment with the Department of Internal Affairs as their Workstream Lead: Operations; and the Commission was pleased that Stephen, along with his wife Debbie, were able to be present at the meeting.

Nic Johansson (General Manager: Infrastructure) presented Stephen with gifts on behalf of the Council, including a signed paddle and framed map which showed how the network had grown over the past 25 years.

Stephen stated that it had been an amazing journey and seeing the network changes over 25 years graphically presented to him highlighted the billon dollars in assets that had been built to service the country’s fastest growing city. He thanked the colleagues, contractors, consultants and tangata whenua representatives he had worked with over the years.

2 Apologies

Nil

3 Public Forum

3.1 Golf Road Reserve partial reclassification - Submitters Allan Goodhall, Rob Paterson, Margaret Bowditch, Renee McMillan

Allan Goodhall

· Mr Goodhall stated his submission had taken a neutral position on the establishment of the Playcentre as his concerns related to the process .

· Requested that the decision be deferred until a full review of the opportunities and potential other users of the site could be completed. Potential synergies could be made with other users such as a community garden, beach volleyball and others who may have an interest in using the reserve.

· Requested that further investigations also included parking for overnight campers, the rescue centre, and the overflow from the Fairway Lodge.

· Traffic volumes had increased dramatically and the ingress and egress from the reserve was dangerous, particularly turning right onto Oceanbeach Road, and this needed to be considered.

· The delay would provide time to get it right for generations to come. The reserve had been in place since 1952 and the long term leases were in place to 2050.

· Doing this in a piecemeal fashion was not the best way.

Margaret Bowditch

Tabled Item 1.

· Ms Bowditch lived adjacent to the Golf Road Reserve and her concern was that insufficient consideration had been given to the best use of the reserve as a whole following the closure of the bowling club.

· The relocation of the Playcentre appeared to be ad-hoc rather than looking at the site in its entirety, and this appeared to be driven by potential unquantified loss of third-party funding and pressure for alternative use at its existing site.

· Suggested the key new building on the reserve open and its impacts assessed, and determine up front the community demand for the type of recreational space the reserve could provide.

· Once the Playcentre building was there, options would be narrowed.

· The City Plan zoned the Golf Road Reserve as Active Open Space which allowed for buildings potentially five stories high. Ms Bowditch believed this was inappropriate for the site and neighbourhood and was concerned if that type of building could be built in the future.

· The Reserve Management Plan status was Active Reserve which was primarily used for organised sport. This category would have been based on the existence of the bowls and bridge club but that was no longer relevant.

· Consideration should be given to re-designating the Reserve from Active Reserve to Neighbourhood Reserve, which recognised the need for space for casual recreation in increasingly densely populated areas.

· There were too many unanswered questions and Ms Bowditch did not consider the Council had been provided with enough information to make a good decision on the community’s behalf.

· Proposed that the Council did not approve reclassification of 1000 m² of Golf Road Reserve and did not agree with proceeding to the detailed design for the Playcentre building.

· Suggested a more comprehensive analysis of the whole site’s current and future use to reduce the potential of sub optimal outcomes for Omanu and the wider Mt Maunganui communities.

Renee Smith, Rita Tunstin (Life Member) and Emily Bailey (President) on behalf of Mount Maunganui Playcentre

Tabled Item 2.

· Renee Smith spoke on behalf of the Mount Maunganui Playcentre (Playcentre) and introduced Rita Tunstin, a Life Member, and President Emily Bailey.

· The Playcentre asked the Council to accept the staff recommendations to reclassify a 1000 m²portion of Golf Road Reserve and enter into a long term lease with the Playcentre.

· The Playcentre had been told it needed to relocate from Blake Park and had a long-standing commitment that the Council would relocate the Playcentre to an alternative site.

· After 16 years of grappling to find an alternative site, with no viable options, the Golf Road Reserve had become available. In 2021 the Commissioners approved in principle the reclassification of the Reserve to enable their relocation.

· The support of Council and staff during this reclassification process was acknowledged and the members were grateful for their work to progress the project.

· Golf Road Reserve was an ideal location for the Playcentre as it was located in the heart of the Mount Maunganui community and central to their families. The site was currently vacant; flat with existing services; had existing vehicle access and off-street parking; existing community use. Their proposal would be similar in character, scale and intensity and the Management Plan direction was to consider using part of the site for buildings for community organisations.

· The Playcentre would be an appropriate use of the Reserve and, in 17 years, no other reserve in the Mount had ticked these boxes.

· The Playcentre proposed to build an architecturally designed single storey building behind the Surf Live Saving Club that was currently under construction. The building would be small in scale at 169 m² and would be residential in character. The outdoor area would be landscaped and would include an outdoor play space.

· The Playcentre was confident that their design, hours of operation and nature of the activity would integrate well within the surrounding environment and cause minimal impact on the area.

· The Playcentre was keen to establish relationships with neighbours and other park users and had done so at Blake Park.

· They were aware of the matters raised in submissions, and considered the high level of community support showed there was a wide recognition of the importance of Playcentre to the community.

· The feedback from Ngāti Kuku and Ngāi Tūkairangi was acknowledged.

· The unique nature of Playcentre was outlined; it was fully run by their members who volunteered to take on roles and became a community for their families.

· Their centre was popular and thriving, with over 90 families and 120 children attending.

· If the decision was not made today, they felt strongly that the continued operation of their Playcentre was at risk and external funding of $560,000 would be lost as it was time restricted. This would be a huge loss for the community.

· The reclassification would ensure the needs of the Mount Maunganui community would be met by enabling a long-standing early childhood education centre and community asset to continue to operate.

In response to questions

· In regard to the number of carparks that would be required, the members had been surveyed to determine how many would take vehicles and require car parks - 65% stated they would likely drive to the new centre and 35% would walk or cycle. This translated into 13-14 carparks per session. The maximum capacity was 30 children at any session and the adult/child ratio was 1:5 but the ratio was typically lower.

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

3.2 Pōteriwhi/Parau Farms - Submitter Mary Dillon

· Ms Dillon stated that the Council’s Vital Signs survey indicated that over 70% of respondents wanted to protect greenspaces, waterways, harbours, and beaches and put the environment first. It was within this context that her submission was made.

· All the large reserves in the city were under threat and should be kept for the public to enjoy permanently.

· This was a prime piece of land in Bethlehem and should be kept for the public to enjoy.

· Inevitably housing on the land would privatise the space.

· Parau Farms had a long history, with which Ms Dillon had been involved as a councillor, and her understanding was that the land was sold as the owners believed it would be kept as green space.

· The growth of the city required more recreational space, not just sports fields.

· For the city’s sake Ms Dillon urged the Council to keep the open green space and protect the biodiversity of the site for the wellbeing of the people and the environment.

4 Acceptance of late items

4.1 Annual Plan 2022/23 – Community Grant Fund

Resolution CO1/22/1

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Bill Wasley

That the late tabled report “Annual Plan 2022/23 – Community Grant Fund” be accepted and considered at this meeting, as the report cannot be delayed until a later meeting as the matter is required to be considered in time to be included in the Draft Annual Plan 2022-23 that will go out for public consultation.

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 15 November 2021

Resolution CO1/22/2

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the minutes of the Council meeting held on 15 November 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 Golf Road Reserve - Submissions on Proposed Partial Reclassification

Staff Ross Hudson, Team Leader: Planning

External Cheryl Steiner, Consultant (Spaces and Places)

In response to questions

· Future uses of the bowling club building were being explored; however, the building was not in good condition. There had been some interest expressed in using the building and the sustainability of its use would be part of the considerations.

· There was a process to undertake regarding the alternative uses of the site.

· Carparking was the biggest issue raised by those who strongly disagreed with the proposal. Beca had been engaged to undertake an assessment of the Reserve’s on-site parking requirements, access, and traffic impacts generated by the planned and potential land use on the balance of the site. Having this work completed now, rather than waiting until the use of the balance land was determined, would provide advice for on-site design regarding access and parking with the Playcentre and assist with future decision making.

· The Playcentre demand for carparking was most likely to be less than the impacts from activities already on the site. The Beca report would be available within two weeks.

· The timing of the Playcentre activity was complementary to other uses on the site.

· The reserve was classified as an “Active Reserve” under the Reserve Management Plan and the Playcentre use was consistent with the management statements that described the uses under this classification. It was the underlying classification, in the Reserves Act, that was not consistent and did not fit the education facility use.

· The use of the carpark by other users, such as the Fairway Lodge and neighbours, was not formalised, and the carpark was not actively managed. The wider parking strategy would in the future look to have a parking management plan for this area.

Discussion points raised

· The Playcentre was considered a valuable community facility and would provide a complementary use of the reserve.

· The Playcentre had been trying for 17 years to find an alternative site and deserved to be given certainty.

Resolution CO1/22/3

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the Golf Road Reserve – Submissions on Proposed Partial Reclassification report and attachments.

(b) Approves the partial reclassification of 1000m² of Golf Road Reserve from recreation reserve to local purpose (community building) reserve pursuant to section 24 of the Reserves Act 1977 and acknowledges that as a matter of process, a further Council resolution is required to confirm this upon completion of the survey plan.

(c) Approves for the Mount Maunganui Playcentre to be located at Golf Road Reserve, and to commence detailed design and lease negotiations taking into consideration feedback received through this process and the outcomes of the carparking and traffic assessment.

Carried

11.2 Pōteriwhi (Parau Farms) - Consultation Outcomes

Staff Andy Mead, Manager: City & Infrastructure Planning

Carlo Ellis, Manager: Strategic Māori Engagement

External Angela Martin, Contractor

Tabled Item 3 – Submission, Rob Paterson.

Key points

· It was recommended that the late submission from Rob Paterson, tabled at the meeting, be accepted.

· The submissions received generally opposed the proposal for Pōteriwhi (Parau Farms) to be used for housing development. Common themes had been identified and responded to in the report.

· Further input from mana whenua was recommended prior to a decision on the proposal being made by Council.

In response to questions

· The land shaded in yellow on page 45 of the agenda was low-lying and flood plain land close to the Wairoa River that was unsuitable for housing development and was not considered for disposal. It had potential to be developed as sports fields, as Bethlehem College had developed sports fields on a similar type of land. Currently it was considered passive reserve and available for stormwater management. The freshwater management reforms also needed to be factored into any development of this land.

· While the potential for sports fields on this land was part of the story, it was not the key aspect of the consultation and may not be fully understood in the community.

Discussion points raised

· Submitters’ concerns were valid and did need to be addressed, including transportation access, what the land would look like, and how the proposal would provide for green spaces and reserves.

· Submitters had argued that incremental decisions made without understanding the overall strategy for green space across the City, and within Bethlehem, was not the best approach.

· It was agreed that a greater strategic approach to projects was required, as these impacted on current and future generations.

· Accelerating the Reserves Strategy development would assist with the decision-making process around housing development to meet the critical demand for housing in Tauranga.

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

Resolution CO1/22/4

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the submissions lodged during the consultation period 15 November to 15 December 2021 on the proposal to sell Pōteriwhi (Parau Farms).

(b) Agrees to receive the late submission from Sport Bay of Plenty, lodged on 22 December 2021.

(c) Notes a further report will be brought to Council seeking a decision on whether the land should be disposed of for housing development once mana whenua feedback and input has been received.

Carried

11.3 2023 Annual Plan Issues and Options: Spaces and Places

Staff Paul Dunphy, Director of Spaces & Places

Warren Aitken, Team Leader: Environment

Ana Hancock, Senior Project Manager

Mark Armistead, Principal Urban Forester

In response to questions

· Certainty around the amount of external funding for the Omanawa Falls project was subject to gaining a resource consent. The amount of external funding would be known by the time Council’s annual plan was adopted. The full amount of the project was requested to be included in the annual plan at this stage, but would be refined prior to the annual plan being adopted.

· The mulching applied to any area that was actively mowed, which included parks and reserves and streets such as Cameron Road and Maunganui Road.

· The contractors’ delays in the Farmers project at Elizabeth Street were impacting on the Council’s cost and timeframes. Staff were negotiating with the contractors, and Farmers was also in conversation with the contractors. This involved going through the numbers in detail with quantity surveyors.

· A contingency of 12.5% was calculated on the cost to complete the work. Staff were waiting to hear from Farmers when they anticipated finishing so that Council could begin working in the space they were currently occupying.

Discussion points raised

· Keen to explore how Council could externally fund ongoing operational costs of the Omanawa Falls platforms as well as capital expenditure.

· Delighted to see the increase in the level of service with the mulching around trees.

· The contractors’ delays in the Farmers project were costing the ratepayers, which did not seem fair, and was causing further disruption to traffic.

Resolution CO1/22/5

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report ‘2023 Annual Plan Issues and Options – Spaces and Places’.

Issue 1: Omanawa Falls

(b) Approves underwriting an additional $2.72 million over what is budgeted to fund the full scope of the project.

(c) Notes that officers are in the process of seeking funding from potential funding partners, which if successful will reduce the rates impact.

Carried

Resolution CO1/22/6

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Stephen Selwood

That the Council:

Issue 2: Destination skate park

(d) Increases the project budget by $1.38m, to a total of $2.05m, to facilitate the desired outcome of delivering a destination skatepark in 2023.

Carried

Resolution CO1/22/7

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

Issue 3: Mulching around trees

(e) Increases the operational budget by $175,000 in FY 2023, and $140,000 per annum from FY 2024 onwards, to support a higher level of service for tree mulching.

Carried

Resolution CO1/22/8

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

Issue 4: Elizabeth Street Streetscape Upgrade

(f) Approves increasing the project budget by $575,000 to ensure there is adequate contingency for the delayed programme.

(g) Defers $174,847 to Streetscape budget from FY 2022 to FY 2023.

Carried

11.4 Tsunami Sirens

Staff Paula Naude, Manager: Emergency Management

Barbara Dempsey, General Manager: Regulatory and Compliance

Key points

· A targeted tsunami awareness project was delivered over the December/January period. It sought to educate the community on its own role in preparing for, responding to, and surviving a tsunami.

· The messaging was well received and there was good saturation. A further report was due which would formalise the feedback from the tsunami ambassadors.

· It was concerning that some people thought the Council had sirens in place.

· The Emergency Management team would continue to educate the public and raise public awareness with regards to tsunami preparedness; this would form part of its business as usual.

· Consultation on tsunami sirens would form part of the annual plan.

In response to questions

· A national tsunami working group was looking to provide consistent messaging throughout the country and was modelling base evacuation routes e.g. single blue line. However, until that was up and running, the current yellow, orange and red maps for tsunami zones were still relevant.

· Further work was needed around the safe zones and signage for tsunami evacuation routes, especially in Papamoa East where there had been significant further development since the signage was installed.

· The community working group, established in October 2021, would continue as it had helped identify vulnerable communities.

· It was recommended that consultation with the community on all issues around tsunami sirens formed part of the Annual Plan.

· The over-reliance on tsunami sirens could result in significantly higher fatalities. The most devastating tsunami would be the one closest to New Zealand that could take between 50-60 minutes to arrive after the initial quake. It could take 40-75 minutes to issue an evacuation order. In this scenario the earthquake was still the most reliable warning sign for people to self-evacuate.

· Lessons from the Japan tsunami showed survival rates were higher among communities that self-evacuated rather than those who waited for an official warning to be issued.

· Earthquakes that may not be felt, but could result in a tsunami, would be generated from much further away and this would provide enough time for GNS to issue a warning and for evacuation to occur through the usual channels.

· Emergency mobile alerting (EMA) was a method for government agencies to warn at risk communities of events that threatened people and property. This also triggered the Red Cross hazard app which could still be activated when there was no mobile coverage. These were supported by a range of other alerting systems including radio, TV, social media etc.

· If sirens were introduced, these would be activated at the same time as the EMA.

· Emergency Management Bay of Plenty was initiating a two-year tsunami readiness programme and Emergency Management Tauranga City Council would be collaborating on that project.

Discussion points raised

· Consultation with the community on all issues around tsunami sirens would be undertaken as part of the Annual Plan consultation.

· The community working group was acknowledged and thanked for their work.

Resolution CO1/22/9

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the report – Tsunami Sirens.

(b) Supports Emergency Management Tauranga City Council continuing to educate the public and raise public awareness with regards to tsunami preparedness.

Carried

11.5 Tauranga Public Transport Joint Committee Terms of Reference

Staff Brendan Bisley, Director of Transport

Resolution CO1/22/10

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the report “Tauranga Public Transport Joint Committee Terms of Reference”.

(b) Confirms that the Joint Committee established in December 2021 by Tauranga City Council and the Bay of Plenty Regional Council (to set the strategic and operational direction for an integrated public transport system for Tauranga City) be named the Tauranga Public Transport Joint Committee.

(c) Adopts the Terms of Reference for the Tauranga Public Transport Joint Committee in Attachment 1 and delegates the role and powers to, and sets the quorum for, the Joint Committee as specified therein.

(d) Confirms the appointment of Commission Chair Anne Tolley as the Chairperson and Councillor Andrew von Dadelszen as the Deputy Chairperson of the Tauranga Public Transport Joint Committee.

(e) Notes that these appointments for Chairperson and Deputy Chairperson, along with the associated administrative support, will be rotated between the two partner councils on an annual basis, starting with Tauranga City Council in 2022.

Carried

11.6 Traffic & Parking Bylaw update No. 33

Staff Brendan Bisley, Director of Transport

The Commissioners thanked Brendan for his presentation to the Links Avenue community on the trial results.

Resolution CO1/22/11

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the Traffic and Parking Bylaw 2012 Amendments Report.

(b) Adopts the proposed amendments to the Traffic and Parking Bylaw 2012 Attachment as per Appendix B, effective from 9 February 2022.

Carried

11.7 Annual Plan 2022/2023 – Community Grant Fund

Staff Gareth Wallis, General Manager: Community Services

Anne Blakeway, Manager: Community Partnerships

Richard Butler, Funding Specialist

Key points

· The Long-Term Plan set up a budget of $1.81 million per annum for community grants and partnership agreements. Over one third of this budget ($596,000 in 2022-23) was already committed to two established and significant arts and culture partnership agreements (the Incubator and the Elms). This meant that the total amount of funding available and contestable for new partnership arrangements and community grants was approximately $1.2 million.

· This had created frustration among community organisations that funding was not effectively available.

· To meet the demand for community grants and new partnerships, it was recommended that an additional budget of $596,000 in 2022-23 be added to the Community Grant Fund.

In response to questions

· The previous funding for partnerships had been on a fixed term basis, and the money in the previous Long-Term Plan had finished and had not been rolled over into the community grant fund.

Discussion points raised

· Preferred to have longer term relationships with organisations that helped the Council drive the issues and outcomes that the Council was seeking.

· Needed to develop parameters around what strategic partnerships were and how they were to be funded.

· Requested a further report on the approach to identifying and funding strategic partnerships and separating this from a community grants process.

Resolution CO1/22/12

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report “Annual Plan 2022/2023 – Community Grant Fund.

Carried

12 Discussion of Late Items

Considered as part of business at Item 11.7.

13 Public excluded session

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution CO1/22/13

Moved: Commissioner Bill Wasley

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 15 November 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)(g) - The withholding of the information is necessary to maintain legal professional privilege 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 - Exemption to open competition - Te Maunga Upgrade Programme physical Works	s7(2)(h) - The withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	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
13.3 - Variation to Contract for Communications Services for Cameron Road Stage 1	s7(2)(h) - The withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	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
13.4 - The Sale of Pitau Road village and Hinau Street Village - Disposal Classification	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

Carried

14 Closing Karakia

Commissioner Shadrach Rolleston closed the meeting with a karakia.

The meeting closed at 1:55 pm.

The minutes of this meeting were confirmed as a true and correct record at the Ordinary Council meeting held on 28 February 2022.

........................................................

CHAIRPERSON

UNCONFIRMED Ordinary Council meeting Minutes

6 December 2021

MINUTES

Ordinary Council meeting

Monday, 6 December 2021

Order of Business

1 Opening Karakia. 3

2 Apologies. 3

3 Public Forum.. 3

3.1 Mr John Adshead - Dogs off-lead on beaches. 3

3.2 Mr Jonathan Stevenson – CCTV cameras in Welcome Bay. 4

3.3 Mr Matt Cowley – civic centre redevelopment – Chamber of Commerce. 4

3.4 Mr John Gordon – civic centre masterplan. 4

3.5 Ms Sally Cooke - Mainstreet Tauranga – civic centre masterplan. 4

4 Acceptance of late items. 5

5 Confidential business to be transferred into the open. 5

6 Change to the order of business. 5

7 Confirmation of Minutes. 5

Nil

8 Declaration of conflicts of interest 5

9 Deputations, Presentations, Petitions. 5

Nil

10 Recommendations from Other Committees. 5

Nil

11 Business. 5

11.1 Civic Precinct Masterplan. 5

11.2 Tauranga City Council Tsunami Awareness Programme update. 8

11.3 Letters of Expectation 2022-2023 for Council-Controlled Organisations. 8

11.4 Memorial Park to City Centre Pathway. 9

11.5 Approval of temporary alcohol-free areas for the summer concerts and events. 10

11.6 Amended Temporary Road Closures - Annual Events 2021 - 2022. 11

11.7 Traffic & Parking Bylaw Amendment No.32. 11

11.8 Proposed Location Interim Bus Interchange on Durham Street 11

11.9 Annual Plan 2022/23 Key Issues and Approach. 12

12 Discussion of Late Items. 13

13 Public excluded session. 13

13.1 Wastewater Management Review Committee - appointments and quorum changes. 13

13.2 Tourism Bay of Plenty - Board Performance Review 2021. 14

13.3 Exemption to Open Competition - Maintenance and Operations Services. 14

13.4 Supplementary Report - CBD Hotel & Conference Centre - Council lease of Conference Centre. 14

13.5 CBD Hotel & Conference Centre Development - Council lease of Conference Centre. 14

14 Closing Karakia. 14

MINUTES OF Tauranga City Council

Ordinary Council meeting

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

ON Monday, 6 December 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), Gareth Wallis (General Manager: Community Services), Mike Naude (Programme Manager: Civic Redevelopment Projects), Brendan Bisley (Director of Transport), Cashy Ball (Programme Manager: Tsunami Awareness and Advisor to the Commissioners), Paula Naude (Manager: Emergency Management), Josephine Meuli (Council Controlled Organisation Specialist), Anne Blakeway (Manager: Community Partnerships), Paul Dunphy (Director of Spaces & Places), Jenna Quay (Events Facilitation Manager), Nelita Byrne (Manager: Venues & Events), Lindsay Cave (Team Leader: Corridor Access & Temporary Traffic Management), Will Hyde (Senior Transportation Engineer), Marcus Sherwood (Programme Manager: Memorial Park Project), Kathryn Sharplin (Manager: Finance), Josh Logan (Team Leader: Corporate Planning), Coral Hair (Manager: Democracy Services), Robyn Garrett (Team Leader: Committee Support), Sarah Drummond (Committee Advisor)

1 Opening Karakia

Commissioner Shad Rolleston opened the meeting with a karakia.

2 Apologies

Nil

3 Public Forum

3.1 Mr John Adshead - Dogs off-lead on beaches

Key points

· Mr Adshead considered that current bylaws for controlling dogs on beaches were insufficient.

· Suggested that from 5pm-9am dogs could be off-lead on beaches but during daytime hours should be on leads. People should be able to walk freely and safely during the day without worrying about encounters with dogs.

· Noted incidents of injuries to people from dogs on beaches e.g. being knocked over.

In response to questions

· Considered the suggested restriction should be applied from Leisure Island all the way down to Papamoa; dogs were already not allowed on Mount main beach.

3.2 Mr Jonathan Stevenson – CCTV cameras in Welcome Bay

Key points

· Mr Stevenson lived in Dingadee St in Welcome Bay, and expressed concern about constant violence and drug dealing. Police attended in the area and surrounding streets several times a week.

· It was an area of social housing and vulnerable residents, with a noticeable gang presence, and was a known area for P houses and drug dealing.

· Requested that CCTV cameras be installed in the area as a crime deterrent. Considered that the cameras could be protected sufficiently to avoid vandalism.

· Mr Stevenson had previously experienced intimidation for raising his concerns.

In response to questions

· Council’s Community Services team would be in touch with Mr Stevenson about his concerns.

3.3 Mr Matt Cowley – civic centre redevelopment – Chamber of Commerce

Key points

· The Chamber of Commerce supported the redevelopment of the city centre and the civic centre masterplan, and recognised that the redevelopment would require Council to amend its Long-Term Plan.

· Considered that the masterplan would develop a sense of community and provided places for people to gather.

· Connection between the civic precinct masterplan and the retail and educational precincts was crucial. Council must make sure the masterplan was not developed in isolation and that the various plans and developments were linked together.

· Noted that 12% of NZ’s GDP came out of Tauranga’s harbour, and that the long-term relationship between the city and its harbour and associated commerce should be recognised.

3.4 Mr John Gordon – civic centre masterplan

Key points

· Mr Gordon supported the civic masterplan and applauded the sense of confidence being created with the business community. Developers and businesses needed certainty and consistent council policy.

· Liked the recognition of Tauranga’s history in the masterplan. Considered that a sense of history had been lost with the way the CBD had developed; this masterplan provided an opportunity to recognise and celebrate the city’s history.

· Favoured a rapid option for CBD redevelopment, with opportunities for integrated project management and cost efficiencies. Considered that there could be government funding for the museum component.

In response to questions

· A wide range of funding should be investigated to minimise the impact on ratepayers.

3.5 Ms Sally Cooke - Mainstreet Tauranga – civic centre masterplan

Key points

· Considered the masterplan aspirational and transformational. The redevelopment of the civic centre would build civic pride and allow Tauranga to take its place as the commercial and civic heart of the region.

· Acknowledged Tauranga’s cultural history and the role of tangata whenua.

· Acknowledged the progress made for the city while the commissioners had been in office.

Discussion points raised

· There was a role for Mainstreet Tauranga to play with wider CBD development; important to link the civic site with the rest of the CBD and business area.

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

Nil

8 Declaration of conflicts of interest

Nil

9 Deputations, Presentations, Petitions

Nil

10 Recommendations from Other Committees

Nil

11 Business

11.1 Civic Precinct Masterplan

Staff Marty Grenfell, Chief Executive

Mike Naude, Programme Manager: Civic Redevelopment Projects

External Wayne Silver, Director, Willis Bond; David Lambie, Director, TwentyTwo; John Brockies, Independent Chair, Civic Redevelopment Governance Group (all remote attendance)

Key points

· Noted the previous civic centre plan adopted in 2017 and submissions made by the public during the last Long-Term Plan.

· Noted the development of council premises at 90 Devonport Rd.

· Noted the involvement of tangata whenua in the masterplan development.

· The staff recommendation was for the civic centre masterplan to be a single stage phased development.

· Indicative costs were included in the report; these would be refined as the project progressed and was more clearly scoped.

· The masterplan development would need to be included in a Long-Term Plan amendment.

Wayne Silver, Director, Willis Bond

Tabled Item 1; PowerPoint presentation

Key points

· Scope now included the waterfront area, which was a change to the original 2018 vision.

· Noted the location of the civic site in the context of the rest of the CBD and other precincts of development e.g. justice precinct, education precinct.

· The design looked back to the history of the area and how it was used; had worked extensively with mana whenua to include their perspective and use of the site.

· Water was core to the conceptual design approach.

· The site was challenging geographically, with a significant fall in gradient down to the water’s edge. Identified a need to create places and spaces for people to meet, gather and linger, which would feed energy and foot traffic into the balance of the CBD.

· Noted core design principles and the use of single stage phased development. Explained the rationale behind a single stage phased development rather than a multi-stage sequential development.

· Outlined the key components, buildings, layout and landscaping of the refreshed masterplan and noted the inclusion of a new component, the civic whare.

· Indicative costs were $270-$300 million, including a 20% contingency. Noted the escalating costs in the construction industry. A single-stage development provided certainty for the trades involved.

David Lambie, Director, TwentyTwo

Key points

· Noted the five pillars to the partnering agreement with Willis Bond.

· The masterplan was now at the feasibility stage; feasibility would be tested in the context of cost and ability to deliver. Next steps would be a more detailed design and development of funding arrangements and delivery options.

· There were other opportunities apart from ratepayer funding e.g. joint venture opportunities particularly iwi, lease arrangements.

· Completion of the project in a short timeframe would contain escalating costs. Transparency with the community was critical.

John Brockies, Independent Chair, Civic Redevelopment Governance Group

Key points

· The Governance Group’s role was to oversee the project from a governance perspective, stay ahead of risks and drive the project to make sure the best outcome was achieved.

· Immediate next steps were the detailed work and programming; and to enable a thorough examining of the project by the public through the Long-Term Plan amendment process.

Discussion points raised

· There was support from the community to develop a heart of the city for the fifth largest and fastest growing city in the country. People cared about what was happening to the city centre.

· Important to acknowledge and include the history of the area and represent mana whenua values.

· Thanked Willis Bond for work done to refresh the masterplan; transformational piece of work for the centre of Tauranga.

· Noted that the city was the CBD for the Western Bay of Plenty regional sub-area as well as for Tauranga, and was noted as such in the SmartGrowth strategy.

· The masterplan provided an opportunity to enhance and redirect a CBD which had turned its back on the waterfront/moana for too long. The civic whare was a unique and special concept.

· Treating the development of the masterplan as one single stage phased project would enhance deliverability, timing and costs. The Long-Term Plan consultation should focus on timing and costing not specific design features.

· Embedding tangata whenua history, views and recommendations into the refreshed masterplan, and acknowledging the connections that mana whenua had to the space, were key factors of the refresh of the masterplan. Connection of the space to the moana was also crucial. Recognised the shared relationship and Treaty partnership.

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

Resolution CO23/21/1

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the Civic Precinct Masterplan (Refreshed 2021) Report; and

(b) Adopts the Tauranga Civic Masterplan (Refreshed 2021) attached; and

(c) Notes that in making a decision to develop the Civic Precinct Masterplan Refresh 2021, Council is required to undertake a Long-term Plan Amendment, subject to section 97 of the Local Government Act 2002, due to the proposal including the provision of new and additional facilities, resulting in a significant change in level of service from that which was detailed in the LTP 2021-31; and

(d) Approves preparation of a Long-term Plan Amendment, alongside the Annual Plan 2022/23 which includes the Tauranga City Masterplan (refreshed 2021); namely Site A community facilities and amenity projects and Site C Waterfront Reserve delivered by 2028; and

(e) Receives a further report in February 2022 to enable the Commission to make a decision on inclusion of the Civic Masterplan in a Long-term Plan Amendment which addresses:

i) Operating costs for Site A community facilities and amenity projects; and

ii) Further refinement of capital expenditure costs if any; and

iii) Balance sheet impact of delivery of Site A community facilities and amenity projects; and

iv) Rating impacts, and any other funding impacts, over the Long-term Plan period associated with delivery of the Civic Precinct Masterplan; and

v) Alternative funding and financing options including the use of private equity and or building lease arrangements in accordance with the partnership agreement and any other off-balance sheet treatment; and

vi) The financial impact of different project staging options; and

vii) The social, cultural and economic value to the city; and

(f) In approving preparation for a Long-term Plan Amendment process, notes that the use of the special consultative procedure is required under section 93(5) of the Local Government Act 2002.

(g) Requests that staff progress the enhanced preliminary designs for Sites A and C to further refine cost estimates and help inform decision making through the Annual Plan and/or LTP amendment process.

Carried

11.2 Tauranga City Council Tsunami Awareness Programme update

Staff Barbara Dempsey, General Manager: Regulatory & Compliance

Cashy Ball, Programme Manager: Tsunami Awareness and Advisor to the Commissioners

Paula Naude, Manager: Emergency Management

Key points

Tsunami simulation presented.

· A programme of community education on tsunami readiness was ready to go. Six tsunami ambassadors had been engaged to work over summer to engage with the community out and about on the beaches, in markets etc.

· A tsunami awareness working group had been formed to facilitate community engagement.

· Simulations had been created so that the community could understand more easily the impact of an earthquake/tsunami.

· Consistent messaging was developed in line with national emergency messaging.

· Face to face engagement was key – staff were working with schools, retirement villages, beachside communities.

· Tsunami was the Number 1 hazard for the Tauranga community.

In response to questions

· Role of the working group was to enhance council’s ability to reach out into the community by members feeding information out into other groups they were associated with.

· Neighbourhood Watch would also be a useful connection to make.

· Continued promotion and engagement was needed as well, not just a one-off push. The initial sprint prioritised what people really needed to know; then a longer-term programme would be developed.

· Human behaviour was unpredictable; need to reinforce simple consistent messaging.

Discussion points raised

· The Commissioners commended the work undertaken in this space.

Resolution CO23/21/2

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council receives the Report – Tauranga City Council Tsunami Awareness Programme update.

Carried

11.3 Letters of Expectation 2022-2023 for Council-Controlled Organisations

Staff Josephine Meuli, Council Controlled Organisation Specialist

Anne Blakeway, Manager: Community Partnerships

Key points

· Letters of Expectation helped provide strategic guidance to Council-Controlled Organisations (CCOs).

· The recommendations from the recent Pedersen report were included in the Letters of Expectation; noted the inclusion of mana whenua representatives on CCO Boards.

In response to questions

· Draft Statements of Intent were received in February and could be responded to with more specific requirements.

· In regard to Bay Venues Limited (BVL), specific feedback from the BVL review had been provided to BVL through a formal Council report.

· Western Bay of Plenty District Council had been involved in the process for Tourism Bay of Plenty to include their particular areas of concern into the Letter of Expectation.

· In terms of timeframe, the aim was to send the Letters of Expectation by the end of the year.

Discussion points raised

· Noted that at this stage the Letters of Expectation were quite broad; some specific requirements for individual CCOs could be included e.g. involvement of Tauranga Art Gallery Trust in the civic masterplan.

· Discussion around whether Letters of Expectation should clearly set out specific expectations for CCOs and how much specificity should be in each Letter. The importance of providing transparency to the CCO and to the community was noted.

Resolution CO23/21/3

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council leaves the report Letters of Expectation 2022-2023 for Council-Controlled Organisations to lie on the table to be considered at the following Council meeting on 13 December 2021.

Carried

11.4 Memorial Park to City Centre Pathway

Staff Paul Dunphy, Director of Spaces & Places

Marcus Sherwood, Programme Manager: Memorial Park Project

Key points

· The pathway provided a link directly from the CBD to the 11ha of green space of Memorial Park. The report requested support in principle to bring delivery forward, and bring associated funding into this first year.

· Progress of the pathway would be in conjunction with other developments across the city.

In response to questions

· Plans for a Harbourmaster facility were included in the Strand Extension project; the Bay of Plenty Regional Council had applied for permission to drive piles into the harbour. The two projects would be considered alongside each other and aligned where possible.

· The issue with possible riparian rights for properties along the waterfront was ongoing. Noted that riparian rights were about access to the water not about water views. The pathway project had been divided into two stages for this reason – no residents were affected by the pathway development in Part B, and council would be working with the impacted residents to find a solution for Part A. Consents for Parts A and B were intended to be sought separately; completion of the first section would provide a loop even before the section to Memorial Park would be completed.

· Creative lighting could be an integral part of the pathway to highlight significant features such as the pohutakawa and the rail bridge.

Resolution CO23/21/4

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the Memorial Park to City Centre Pathway Update report.

(b) Supports in principle, bringing forward the delivery programme and adjusting the funding cash flow accordingly through the 2023 Annual Plan process.

Carried

11.5 Approval of temporary alcohol-free areas for the summer concerts and events

Staff Jenna Quay, Events Facilitation Manager

Resolution CO23/21/5

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

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) Resolves under clause 8 of the Alcohol Control Bylaw 2018 to implement the temporary alcohol-free areas as follows:

Soper Reserve and Newton Street between Hull Road and Hewletts Road from:

· 10am, 8 January 2022 to 6am, 9 January 2022

· 10am, 12 February 2022 to 6am, 13 February 2022

· 10am 19 February 2022 to 6am, 20 February 2022

· 10am, 3 March 2022 to 6am, 6 March 2022.

(c) Rescinds the temporary alcohol-free areas associated with the New Year’s Eve community events approved by Council on 4 October 2021, as detailed below:

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.
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.
Tauranga Racecourse Reserve	Tauranga Racecourse Reserve from 10am, 31 December 2021 to 6am, 1 January 2022.

Carried

11.6 Amended Temporary Road Closures - Annual Events 2021 - 2022

Staff Lindsay Cave, Team Leader: Corridor Access & Temporary Traffic Management

Jenna Quay, Events Facilitation Manager

Resolution CO23/21/6

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report of Amended Temporary Road Closure Report.

(b) Pursuant to Clause 11(e) of the Tenth Schedule of the Local Government Act 1974, grants approval to close the roads listed below to ordinary vehicular traffic on the dates and during the hours stated for the purposes of facilitating safe and successful operations during the following events in Tauranga.

Carried

11.7 Traffic & Parking Bylaw Amendment No.32

Staff Nic Johansson, General Manager: Infrastructure

Will Hyde, Senior Transportation Engineer

Key points

· Noted the proposed changes were in response to several safety concerns raised.

Resolution CO23/21/7

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the Traffic and Parking Bylaw 2012 Amendments Report.

(b) Adopts the proposed amendments to the Traffic and Parking Bylaw 2012 Attachment as per Appendix B, effective from the later of 7 December 2021 or when the required signs and markings are installed.

Carried

11.8 Proposed Location Interim Bus Interchange on Durham Street

Staff Nic Johansson, General Manager: Infrastructure

Brendan Bisley, Director of Transport

Mark Burgess, Manager: Transport Infrastructure Outcomes

External Matthew Noon, Nadine Dodge, Debajeet Baruah; Abley (remote attendance)

Key points

· Clarified the timeframe, must be completed by 31 March 2022.

· If any property purchase was required, a report may need to come back to Council to seek further direction and funding.

In response to questions

· There was sufficient funding in existing budgets as long as funding could be replaced from next year’s Annual Plan.

· Refurbishment of bus stops e.g. installation of perspex would happen as the stops were relocated.

· Intercity bus service supported the proposed site; would be located in a different street but close to the interchange.

· The interchange design will be refined as the project progresses.

Discussion points raised

· Noted that shifting the location of the interchange back towards Spring Street was a decision made by the Commissioners.

Resolution CO23/21/8

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the report, and

(i) Approves the relocation of the central bus hub from Willow Street to Durham Street between Spring and Wharf Streets (Option 1), for a period of no longer than 18 months from the date that the new hub opens;

(ii) Approves funding of $1.75M in the Annual Plan for relocation of the central bus hub;

(iii) Meets with the Tauranga members of the Bay of Plenty Regional Council Public Transport Committee and appropriate staff to discuss and resolve concerns relating to the implementation of the interchange at the location chosen (Option 1);

(b) Agrees that investigations into a long-term solution for public transport in the CBD commence immediately in collaboration with the Bay of Plenty Regional Council.

Carried

11.9 Annual Plan 2022/23 Key Issues and Approach

Staff Paul Davidson, General Manager: Corporate Services

Key points

· Advised that this was the first of two reports, the second report would be the more detailed financial report.

· Noted the recommendation that debt retirement be reallocated from stormwater debt to retire debt associated with unfunded liabilities.

· Rating structure changes retained the level of commercial/residential split at 76/24, which was still considerably behind other metros.

· Noted that there would be a move back towards residential as a result of residential growth increasing more than commercial growth.

· The capital expenditure programme and operating costs were being reviewed.

In response to questions

· Commissioners feedback could be incorporated into the report back to Council in February 2022.

· The report recommendations were still in alignment with the strategic direction set in the Long-Term Plan.

Resolution CO23/21/9

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the report Annual Plan 2022/23 Key Issues and Approach.

(b) Confirms the focus of the Annual Plan 2022/23 remains what was agreed to in the 2021-31 Long-term Plan.

(d) Agrees to redirect $1.1m debt retirement proposed for stormwater debt in 2023 to instead retire $1.1m of debt associated with existing unfunded liabilities.

(e) Notes that in future Annual Plan processes the portion of stormwater debt retirement above $1.3m per annum proposed in subsequent years of the LTP could be diverted to retire debt associated with unfunded liabilities until that debt is extinguished.

(f) Notes that the review of aspects of the rating structure agreed as part of the 2021-31 Long-term Plan deliberations is continuing with a view to implementing changes to the current rating approach in the 2022/23 year.

(g) Notes that there is increased supply and cost pressures since the 2021-31 Long-term Plan was adopted that will be factored into the upcoming Annual Plan.

Carried

12 Discussion of Late Items

Nil

13 Public excluded session

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution CO23/21/10

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

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 - Wastewater Management Review Committee - appointments and quorum changes	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons	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 - Tourism Bay of Plenty - 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	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
13.3 - Exemption to Open Competition - Maintenance and Operations Services	s7(2)(h) - The withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	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
13.4 - Supplementary Report - CBD Hotel & Conference Centre - Council lease of Conference Centre	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
13.5 - CBD Hotel & Conference Centre Development - Council lease of Conference Centre	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

Carried

The meeting adjourned at 1.15pm and reconvened in Public Excluded session.

14 Closing Karakia

Commissioner Rolleston closed the meeting with a karakia.

The meeting closed at 2.25pm.

The minutes of this meeting were confirmed as a true and correct record at the Ordinary Council meeting held on 28 February 2022.

........................................................

CHAIRPERSON

Ordinary Council meeting Agenda

28 February 2022

11 Business

11.1 Long-term Plan Amendment Financials

File Number: A13215931

Author: Kathryn Sharplin, Manager: Finance

Josh Logan, Team Leader: Corporate Planning

Frazer Smith, Manager: Strategic Finance & Growth

Tracey Hughes, Financial Insights & Reporting Manager

Authoriser: Paul Davidson, General Manager: Corporate Services

Purpose of the Report

1. The purpose of this report is to consider the effect on Council financials and the financial strategy of the proposed 2021-31 Long-term Plan Amendment (LTPA) for the Civic Precinct and Infrastructure Funding and Financing initiatives.

Recommendations

That the Council:

(a) Receives the report Long-term Plan Amendment Financials;

(i) Agrees to the proposed updates to the draft financials for the proposed 2021-31 Long-term Plan Amendment,

(ii) Agrees to include the proposed Crown Infrastructure Partners Levies within the Long-term Plan amendment with offset adjustments to transportation targeted rates applying from 2025,

Executive Summary

2. On 21 February Council agreed on the items to be included in the LTPA.

3. The LTPA is to consult on options for Civic Precinct investment including the preferred option Te Manawataki O Te Papa ($303.4m, with $153m offsetting funding) and an alternative option of modified Status quo from LTP, with updated costings (126.8m with $68m of offsetting funding) The financial impacts of each are discussed in this report.

4. The offsetting funding assumptions for the Te Manawataki O Te Papa option include:

(a) $73m of grants for elements of the Civic,

(b) receipt of a Government grant of $48m better off funding as part of the three waters reform, and

5. Further work is being undertaken to confirm the level of grants likely to be achieved and a funding strategy to achieve this level of grants funding.

6. The requirements and process for applying for better off funding will be worked through once they are available

7. Investigations of potential asset sales associated with the Marine Precinct, and car parking buildings will be commenced to identify how to maximise the sales value. It is noted that the sale price for council assets would depend on revenue streams associated with those assets and the constraints put on the use of assets subsequent to sale.

8. The LTPA includes proposals to fund part of future capital investment through utilising the Infrastructure Funding and Financing (IFF) legislation to take some of the borrowing for new investment away from Council’s balance sheet.

9. Targeted rates for transportation have been adjusted from the LTPA to offset the proposed introduction of an Infrastructure Funding and Financing levy for transportation. A detailed report on the IFF should be reviewed alongside this report.

Background

10. The Council must follow the decision-making provisions of the Local Government Act 2002 (LGA). In particular, a decision to significantly alter the intended level of service provision for any significant activity must be explicitly provided for in the Council’s Long-term Plan.

11. At its meeting of 21 February 2022 Council agreed:

(a) that the Long-term Plan Amendment preferred option for consultation will include:

(i) The LTPA preferred option for the Civic Precinct (Te Manawataki O Te Papa)

(ii) Additional financing options to be finalised in the Council meeting of 28^th February including a potential Infrastructure Funding and Financing (IFF) levy for the Transport System Plan (TSP) and Tauriko West

(iii) Further work to support the sale of the Marine Precinct and Elizabeth Street and Spring Street Carparks, noting that no adjustment has been made to budgets pending further analysis and decisions around user fees.

(iv) Grant funding levels as proposed for the Civic Precinct report on this agenda, with additional risk analysis around lower grant funding levels completed

(v) NZTA funding assumed at full subsidy for core IFF projects but with some risk analysis around wider TSP programme

(vi) The proposed government grant to councils for better off funding of $48m proposed as part of three waters reform as a reduction in debt

(vii) The assumption within the LTPA that council will retain ownership of three waters infrastructure assets

Financial variables in the Options for consultation

Civic Precinct

12. In the Civic Precinct report presented to Council on 21 February 2022 two options were agreed to be the basis for consultation from March to April. The first preferred option, Te Manawataki O Te Papa, is a $303.4m (capital costs) programme consisting of a set of co-dependent projects that will deliver the civic and cultural heart for the city.

13. The second option presented is to proceed with the Civic precinct projects and services currently included in the LTP 2021-31 (modified status quo option with updated costings) at an estimated capital cost of $126.8 million.

14. The preferred option offsets the debt impact of capital costs by $150m of other funding from the following sources:

(a) Grants attached to elements of the Civic Precinct programme

(b) Better off funding grant

15. The 2021-31 Long Term Plan (LTP) adopted last year included a new “community” targeted rate for new capital investment proposed for the city centre and other community facilities. This targeted rate covers both the costs of the capital investment (e.g. debt retirement and interest) along with operational costs of facilities once established. Funding for the Civic Precinct investment would be covered under the community targeted rate established as part of the LTP. This would increase to cover the additional costs of the investment proposals.

Infrastructure Funding and Financing Act proposals

16. Two IFF levies are proposed to be consulted on to replace direct TCC borrowing and funding to a total value of $260m across two capital programmes:

(a) Tauriko West new growth area ($60m)

(b) Tauranga Transport network infrastructure ($200m)

17. The introduction of these off-balance sheet arrangements reduces the council debt and the amount of transport targeted rate to be charged from 2025. As is shown in the graphs within option analysis below, IFF levies provide the following benefits:

(a) Provides off balance sheet financing so TCC has capacity for other investments within its 280% borrowing limit

(b) TCC retains financial flexibility through more debt capacity and so has less need for future debt retirement

(d) Spreads costs more equitably over life of the asset in the event balance sheet is constrained

(e) Requires other funding streams to be locked in over time

18. The graphs below in option 1 show the impacts of the IFF levy ranging from the levy being included in option 1a, assets sales added in option 1b and a lower rating increase in option 1c. These graphs illustrate that the inclusion of an IFF levy allows more flexibility in future years for the setting of rates by removing the necessity to have as much debt retirement levy to manage balance sheet capacity.

19. The graph in option 2 then shows the impacts of no IFF levy and the potential to breach borrowing covenants in future years if rates are not maintained at high levels. Options 3 and 4 then show these scenarios for the modified status quo civic precinct option.

20. It should be noted that the borrowing rate for the IFF transaction will not be known until proposals are received from the market.

Asset Realisation

21. Council holds some non-core assets including two carparks in the CBD and the Marine Precinct, which have commercial value and could be sold to reduce debt and refocus council on more core operations.

22. The current revenue charges may not support the commercial sale of these activities and further work is required on the changes required (for example to user fees) to realise a meaningful sale value for these assets. Our initial work on the parking buildings suggests that parking prices would need to be increased by between 30 to 50% (over and above the 20% increase recommended in the Annual Plan) to improve the commercial value of parking buildings

23. Achieving this level of revenue needs to be considered in light of the following matters:

· This would make use of the parking buildings more expensive than other comparable cities.

· This price increase doesn’t allow for any drop in occupancy of the buildings.

· We would need to increase cost or restrictions for on street parking to support this level of charging within buildings and consider the area for which parking is charged.

· The pricing would need to be part of a wider strategy for multi model travel, parking and access to the CBD.

24. We have not done the modelling for the marine precinct and further changes and opportunities need to be identified in order to deliver value for asset realisation while continuing to achieve the objectives and outcomes of the precinct.

25. The key assumption in relation to the asset sales is that we would place restrictions on the use of the sites in accordance with councils desired outcomes which may have impacts over the amounts that can be realised through asset sales.

26. Council will consult on the broad principle of sale in the LTPA of one or more non-core assets to realise overall debt reduction. Because of uncertainty around value of asset sales options below are presented with or without the realisation of asset sales.

Significant Capital Programme Revisions – Timing and Cost

27. In preparing the 2022-23 annual plan budget there have been revisions to timing of capital delivery as a result of slower delivery in the year to June 2022, which has carried forward to a reduced capital programme for 2022-23. The LTPA includes a rephasing of some projects to align with the 2022 and 2023 revised capital programmes.

28. There have been significant cost revisions to two major programmes of work affecting the LTP. These are a $56m increase in cost estimates for Cameron Road Stage 2, and a $70m increase in costs associated with Tauriko West growth area. Both these cost amendments have been included in the LTPA to fairly reflect impact on debt in the analysis for the LTPA.

Strategic / Statutory Context

29. As this report includes a proposal that varies significantly from that included in the LTP, this decision cannot be made without public consultation, in accordance with Section 97 of the LGA. The intent of this legislative requirement is to ensure that the community is involved in the decision-making process. As such, before making a decision on additional investment in the Civic Precinct, Council is required to undertake a thorough consultation process.

30. The accounting treatment of IFF arrangements are still being worked through. Accounting treatment will reflect the intention of the Infrastructure Funding and Financing Act as enabling off balance sheet financing of capital expenditure by councils. Accounting treatment will influence the presentation of the transactions in the financial accounts which will be presented as supporting documentation to the consultation document.

31. The debt to revenue ratios included in this report are consistent with the Local Government Funding Agency borrowing covenants. All subsidy revenue is therefore included in the revenue figure. However, the revenue figure has not included the funding received by council under the IFF arrangements, on which the covenant is silent.

Options Analysis

32. The options presented in the analysis of rates and debt impacts below are driven by the two options for investment in the civic precinct. Reflecting ongoing work, the financial position for each option is shown with or without off balance sheet funding (IFF levy). Sale of assets is shown as a separate option only for the full civic option (option 1b).

33. Option 1 a – Full Civic Campus investment including grant funding and IFF

The debt to revenue ratio below includes grant funding for the Civic Campus projects along with “better off” funding and $260m off balance sheet funding of the wider capital programme. No debt reduction from asset sales is included.

Under this funding and financing scenario, Council could undertake the full Civic investment under the preferred option while maintaining a favourable debt to revenue ratio. Rates under this option have been adjusted down to reflect a lower transport targeted rate that is replaced by off balance sheet IFF levy.

34. Option 1 b Full Civic Campus investment including grant funding, IFF and an assumption for asset sales

Under this funding and financing scenario, Council could undertake the full Civic investment under the preferred option while maintaining a favourable debt to revenue ratio (not exceeding 230%). Rates under this option have been adjusted down to reflect a lower transport targeted rate that is replaced by off balance sheet IFF levy. It is noted that there is capacity to further reduce rates from those proposed in the LTP as will be shown in option 1 c.

35. Option 1 c Full Civic Campus investment including grant funding and IFF, limiting rates increase.

Under this funding and financing scenario, rates have been further reduced below the LTP, to a maximum annual increase of 10% (not including 2023). With IFF in place, not all of the rates funded debt retirement included in the LTP is needed to remain within financial limits. Maximum debt to revenue ratio remains under 260%, retaining some debt headroom below borrowing limits.

36. Option 2 Full Civic Campus investment including grant funding, no IFF, limiting rates increase

The debt to revenue ratio below includes grant funding for the Civic Campus projects along with “better off” funding. No assumption of IFF or debt reduction from asset sales is included.

Under this funding and financing scenario, rates have been further reduced below the LTP, to a maximum annual increase of 10% (not including 2023). With no IFF in place, Council could not reduce rates to this extent as it breaches borrowing limits. At the rates increases of the LTP, we would stay within borrowing limits but with more limited debt headroom.

37. Option 3 Civic Precinct modified status quo, investment including grant funding and IFF, no asset sales

The debt to revenue ratio below includes grant funding for the modified status quo Civic projects along with “better off” funding and $260m IFF funding. No assumption of debt reduction from asset sales is included.

Under the modified status quo capital borrowing is lower which means reduction in rates increases can occur if the IFF levies are used.

38. Option 4 Civic Precinct modified status quo, investment including grant funding, no IFF or asset sales

The debt to revenue ratio below includes grant funding for the modified status quo Civic projects along with “better off” funding. No assumption of IFF or debt reduction from asset sales is included.

Under the modified status quo capital borrowing is lower but with no IFF there is no capacity to reduce rates below LTP levels and there is limited debt headroom.

Financial Considerations

39. All options can remain financially sustainable within LTP funding strategy debt limits and within rating increases (including adjustement for IFF levy). Lower capital investment of the modified status quo provides more debt headroom than the full Civic precinct investment proposal. The financial sustainability of these options is dependant on receiving the grant funding proposed ($120m in total). While asset sales assumption (an additional $30m) further enhances the financial position by providing more debt headroom it is not essential to financial sustainability.

The IFF would provide greater financial capacity to reduce rates increases from those proposed in the LTP.

Legal Implications / Risks

40. The Local Government Act 2002 (LGA) enables a local authority to amend its Long-term Plan (LTP) at any time (section 93(4)). It also sets out that a decision to significantly alter the intended level of service provision for any significant activity undertaken by a local authority triggers a long-term plan amendment (section 97).

41. The LTPA financials are based on assumptions around grant funding and off balance sheet funding (IFF). These sources of funding are not finalised and there is a risk that if these were not achieved the proposed capital investment would not be financially sustainable. In this event the capital programme would need to be reduced.

Consultation / Engagement

42. Significant matters relating to this report will be outlined in the consultation document and supporting documentation and consulted on as per the requirements of the Local Government Act 2002.

43. A comprehensive Communications and Engagement Plan will be produced to support the development of a LTPA. Staff will also prepare a combined Annual Plan and LTPA Consultation Document for endorsement by council on 24 March 2022.

Significance

44. 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.

45. 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.

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

ENGAGEMENT

47. Taking into consideration the above assessment, that the decision is of high significance, officers are of the opinion that the following consultation/engagement is required under Section 93 of the Local Government Act 2002.

Next Steps

48. Following Council’s decisions relating to this report, staff will prepare the following documentation for approval and adoption by Council on 24 March 2022:

(a) Consultation document for the Long-term Plan amendment and the Annual Plan.

(b) Supporting documentation detailing the parts of the current LTP that are changing as part of the amendment.

Attachments

Nil

Ordinary Council meeting Agenda

28 February 2022

11.2 Te Manawataki O Te Papa (Civic Precinct) programme Governance Structure and Key Project Approval Processes

File Number: A13197729

Author: Mike Naude, Programme Manager - Civic Redevelopment Projects

Authoriser: Marty Grenfell, Chief Executive

Purpose of the Report

1. To gain approval of the governance structure and terms of reference for managing the Civic Redevelopment Programme, including the establishment and terms of reference for individual Project Steering Groups and Design Reference Groups.

2. To gain approval for the appointments of the chairperson of the Te Manawataki O Te Papa (Civic Redevelopment) Governance Group and the chairpersons for the individual Project Steering Groups.

3. To provide an outline of the key processes for the delivery of each project that will require approval.

Recommendations

That the Council:

(a) Receives this report Te Manawataki O Te Papa (Civic Precinct) programme Governance Structure and Key Project Approval Processes Report.

(b) Approves the Te Manawataki O Te Papa Governance and Project Structure:

(c) Approves the following persons as Chairpersons of the Te Manawataki O Te Papa Governance Group and Project Steering Groups:

Governance/Project Steering Group	Chairpersons
Te Manawataki o Te Papa Governance Group	Independent Chairperson John Brockies
Library and Community Hub Steering Group	Commissioner Bill Wasley
Museum and Cultural Centre Steering Group	Commissioner Shadrach Rolleston
Civic Whare and Exhibition Facility Steering Group	Commissioner Stephen Selwood
Baycourt Refurbishment Steering Group	General Manager Community Services - Gareth Wallis
90 Devonport Road Commercial Building Fitout Steering Group	Independent Chairperson – David Lambie

(d) Acknowledges the key project approval processes required for the implementation of the Te Manawataki O Te Papa Programme and the Commercial Development at 90 Devonport Road, as outlined in the Tauranga City Council and Willis Bond and Company (Tauranga) Partnering Agreement, signed 06 July 2018, to ensure appropriate Council oversight and decision-making.

Executive Summary

4. In July 2018, Tauranga City Council entered into a Partnering Agreement to affect the Civic Redevelopment Programme with Willis Bond and Company (Tauranga) Limited. The Partnering Agreement articulates the key milestones and approvals required as part of the project implementation.

5. The budget for the Civic Redevelopment Programme was included in the Council’s Long-term Plan 2021-31. The projects within this programme include:

(a) the development of a new Library and Community Hub located on Willow Street;

(b) the annual lease costs and fitout costs for 90 Devonport Road;

(d) the fitout of temporary staff accommodation at the leased building located at 306 Cameron Road; and

(e) the relocation of the Customer Services and Central Library to He Puna Manawa, located at 21 Devonport Road.

6. In July 2021, the Civic Redevelopment project office was established to manage the programme of works. The Te Manawataki O Te Papa Governance Group and Project Steering Groups were established to provide governance to the programme at that time.

7. At the Council Meeting held on 6 December 2021, the Council adopted the Te Manawataki O Te Papa (Civic Precinct) Masterplan (Refreshed 2021).

8. Given the scale and significance of the programme of works under the refreshed masterplan, the governance structure that has been developed is proposed to be continued, to ensure the projects are managed to Council’s and the community’s expectations, achieve the outcomes agreed and are delivered to best practice. This report seeks to gain formal Council approval of the governance structure for the programme.

9. At the Council Meeting held on the 21 February 2022 the Council approved the Option 1 Te Manawataki O Te Papa Masterplan (refreshed) at an estimated cost of $303.4M as the preferred option for the Long Term Plan 2021-31 Amendment consultation.

background

10. In July 2018, Tauranga City Council and Willis Bond and Company (Tauranga) Limited signed a 12-year partnering agreement relating to the Tauranga City Council – Heart of the City Project (Civic Precinct). The Partnering Agreement (signed 06 July 2018) provides the key processes for the delivery of the programme, including the formal approval stages for Council.

11. In the Long-term Plan 2021–2031, Council approved funding for the Civic Redevelopment Programme of works, including the demolition of the Willow Street Civic Offices and Central Library, the relocation of the central library and customer services to an interim location (He Puna Manawa), the fit-out of the temporary offices at 306 Cameron Road and the design and construction of a new Library and Community Hub on the Willow Street Precinct.

12. In August 2021, Council issued a strategic brief to Willis Bond commissioning a Civic Masterplan Refresh for the redevelopment of the Willow Street site. At the Council meeting on 6 December 2021, the Council adopted the Tauranga Precinct Masterplan (Refreshed 2021). At that meeting, the Council formally adopted ‘Te Manawataki O Te Papa’ as the name for the Civic Precinct (Site A).

13. At the Council Meeting held on the 21 February 2022, the Council approved the Option 1 Te Manawataki O Te Papa Masterplan (refreshed) at an estimated cost of $303.4M as the preferred option for the Long Term Plan 2021-31 Amendment consultation.

14. To manage the Civic Redevelopment Programme, an internal project team and a Civic Redevelopment Governance Group were established.

15. The Governance Group comprises an independent chairperson, a Tiriti Waitangi Advisor, external project specialist, the Chief Executive and the General Manager Community Services. Programme progress reports are presented to the Council monthly.

16. The Governance Group is supported by individual Project Steering Groups and Design Reference Groups. To date, steering groups have been established for the following projects:

(a) Library and Community Hub

(b) Museum and Cultural Centre

(d) Baycourt Refurbishment Project.

17. New Steering Groups to be established in the future are likely to include the Public Realm (Sites A and C) and Conference and Performing Arts Centre (Site B).

18. In December 2021, Council entered into a binding Development Agreement with Willis Bond to build and lease a new commercial development at 90 Devonport Road as the future Civic Administration building (December 2024).

19. A Project Steering and Design Reference Group has also been established for the 90 Devonport Road Fitout Project.

Discussion on the Governance Structure for the Civic Redevelopmenmt Programme.

20. The Governance structure proposed to oversee the Civic Redevelopment Programme ensures that each project within the Civic Redevelopment programme (including 90 Devonport Rd) will follow an identical process from conception to completion, in accordance with the Partnering Agreement.

21. Given the scale and significance of the programme of works, this governance structure ensures the projects are managed to Council’s and the community’s expectations, achieve the outcomes agreed and are delivered to best practice.

22. Key outcomes of the proposed Governance structure include:

(a) The Governance Group will oversee each project in the programme to ensure consistency in the wider context;

(b) Each key process will require Council approval to proceed. The Governance Group will oversee each process and make recommendations to Council for approval;

(c) Each Project Steering Group will focus on a specific project and be comprised of external project experts and internal expertise relevant to the project;

(d) The Design Reference Group will be the custodians of the strategic design direction for each project;

(e) Each project team will include design, cost, and management advisors.

23. The following table details the Chairpersons for the Governance Group Te Manawataki O Te Papa and the current Project Steering Groups.

Governance/Project Steering Group Projects	Chairpersons
Te Manawataki o Te Papa Governance Group	Independent Chairperson John Brockies
Library and Community Hub Steering Group	Commissioner Bill Wasley
Museum and Cultural Centre Steering Group	Commissioner Shadrach Rolleston
Civic Whare and Exhibition Facility Steering Group	Commissioner Stephen Selwood
Baycourt Refurbishment Steering Group	General Manager Community Services - Gareth Wallis
90 Devonport Road Commercial Building Fitout Steering Group	Independent Chairperson – David Lambie

The following diagram is an outline of the Civic Redevelopment governance structure.

Partnering Agreement - Key Project Milestones and Approvals

24. In July 2018, Tauranga City Council and Willis Bond and Company (Tauranga) Limited signed a 12-year partnering agreement relating to the Tauranga City Council – Heart of the City Project (Civic Precinct). The Partnering Agreement (signed 06 July 2018) provides the key processes and approval stages for the delivery of the programme.

25. Each step is articulated in the Partnering Agreement and aims to provide appropriate process to align with Council approval procedures, yet maintain progress and flexibility.

26. Each key process will require Council approval to proceed. The Governance Group will oversee each process and make recommendations to Council for approval.

27. The feasibility step may capture more than one project at a time, if a single delivery model is being adopted.

28. The following diagram summarises the key processes and Council approval stages being followed:

29. Following the adoption of the Civic Masterplan (Refreshed 2021), Willis Bond was engaged to prepare enhanced concept plans and cost estimates for Site A, as part of the Feasibility for the proposed facilities. The enhanced concept plans and cost estimates will be delivered on 30 April 2022 and will be presented to the Council for consideration, alongside consultation feedback, when Council makes a final decision regarding the LTPA.

Strategic / Statutory Context

30. The refreshed Masterplan has been developed to outline the future planning for the site and costs for the development of the civic precinct. As it is proposed, the Masterplan would deliver significant community benefits and lead to a significant change to the level of service that Council provides to the community. In particular, providing a regional museum facility that celebrates and showcases Tauranga Moana’s rich and varied history, culture and taonga.

31. The approval of the Council is required to progress through the various gateways detailed in the agreement as outlines under paragraph 27 above.

32. The programme governance structure provides for the governance of the projects within the current LTP and, dependent on the outcome of the LTPA, will include governance of the wider projects described in the Te Manawataki O Te Papa masterplan including:

(a) In accordance with projects approved in the Long-term Plan.

(b) In accordance with the obligations of the Partnering Agreement with Willis Bond.

Financial Considerations

33. The budget for the development of the new Library and Community Hub on the Civic Precinct and the budget for the cost of fitout and lease costs for 90 Devonport Road are included in the LTP 2021-2031.

34. The operational costs for the project office are included in the draft Annual Plan and Long-Term Plan Amendment Report elsewhere in this Council Agenda.

Legal Implications / Risks

35. The Civic Precinct Masterplan was prepared in accordance with the Tauranga City Council and Willis Bond and Company (Tauranga) Limited Partnering Agreement, signed in July 2018. The projects relating to Te Manawataki O Te Papa will be delivered in accordance with the partnering agreement.

36. There are historical issues relating to parcels of land on the site. Discussions are ongoing with the Otamataha Trust and it is Council’s intention Council to resolve these issues as part of the redevelopment programme.

Consultation / Engagement

37. The approval of a governance structure and chairpersons is not considered a matter for public consultation. However, a comprehensive Communications Plan is being produced to support the development of a Long-term Plan Amendment. This will see the single-stage phased Masterplan proposal included as part of a Consultation Document, alongside the Annual Plan 2022/23 Consultation Document.

Significance

38. 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.

39. 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 wellbeing of the district or region;

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

40. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the recommendation to approve a governance structure and chairpersons for the Te Manawataki O Te Papa programme is not considered significant.

41. However, this report forms part of a wider Council decision-making process for the proposal to deliver the refreshed masterplan in a single stage, which has been assessed as being of high significance. As a significant proposal for the community, proposing significant increases in levels of service, capital expenditure and transformation of the civic precinct area, the delivery of the refreshed masterplan will be considered through a Long-term Plan Amendment.

42. In addition, Section 97 of the Local Government Act 2002 outlines that certain decisions may only be taken if provided for in Council’s Long-term Plan, including (1)(a) “a decision to alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the local authority, including a decision to commence or cease any such activity.”

43. Due to the significance of the wider programme the proposed Governance Structure has been established to ensure effective governance of a major Council and Community Project.

ENGAGEMENT

44. Whilst the governance structure and chairpersons proposed through this report are not significant and do not require public engagement, the wider programme will be subject to consultation as required under Section 93 (5) of the Local Government Act 2002, which states that “A local authority must use the special consultative procedure in making any amendment to a Long-term Plan.”

Next Steps

45. Key milestones are aligned with the Annual Plan project timeline and include:

Action	Deadline
Council approves Consultation Document (CD) for Audit	28-Feb-22
Audit of LTPA	1-18 Mar-22
Council adopts CD and supporting information for consultation	24-Mar-22
Consultation (alongside Annual Plan)	28-Mar - 29-Apr-22
Hearings	9/10 May-22
Presentation of the Enhanced Concept Plans and Revised cost Estimates to the Council	May-22
Deliberations	24/26-May-22
Council adopts LTPA (alongside Annual Plan)	27-Jun-22

Attachments

Nil

Ordinary Council meeting Agenda

28 February 2022

11.4 Executive Report

File Number: A13163276

Author: Gareth Wallis, General Manager: Community Services

Nic Johansson, General Manager: Infrastructure

Barbara Dempsey, General Manager: Regulatory & Compliance

Paul Davidson, General Manager: Corporate Services

Christine Jones, General Manager: Strategy & Growth

Tony Aitken, Acting General Manager: People and Engagement

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.

Community Services

Arts and Culture

2. The Christmas illuminations which activated The Strand reserves over the Christmas holiday received a wide range of positive feedback, both directly from the community and from local media. Designed by acclaimed light artist Angus Muir, the installations proved popular with families and children, with a noticeable increase in foot traffic as many people took the opportunity to walk along the waterfront and enjoy the lights. Following is a sample of Facebook comments received on the event page:

“Go down and see how much pleasure the lights are giving; the family atmosphere was wonderful.”

“Thank you - this was truly such a great interactive installation for Tauranga locals and families. More like this please.”

“A huge thank you for the light show on the Strand, so many families out enjoying them, my elderly residents too on our night light drives, well done.”

3. Staff have engaged arts consultant Sonya Korohina, of Supercut projects, to undertake a review of the public art policy. The project will look at how Council currently engages with art and artists, with a particular focus on opportunities for Council to enhance and encourage better public art outcomes for the community. A short round of consultation with internal stakeholders (including Spaces and Places, Infrastructure, Transport and Events) and external stakeholders (artists, arts organisations and funders) will explore options for a public art framework, which would include guidance on the commissioning, planning, funding and project management of public art for the city. It is expected that the new framework for public art will be presented to Commissioners for approval in March.

4. The Heritage Collection has appointed a Heritage Collection Programme Specialist. The new role will focus on education and outreach for the Heritage Collection, providing increased opportunities the community to engage with taonga in the collection. This will include the growth of the “Hands On Tauranga” schools programme, which loans items from the collection to school students, customising loans to align with students’ current areas of study and enabling young people to handle items from the collection. Demand for this programme has grown steadily since changes to the NZ curriculum placed a greater focus on Te Takanga o Te Wā, Aotearoa New Zealand histories.

Community Partnerships

5. Staff are working with the respective chairs of Bay Venues Limited, Tauranga Art Gallery Trust and Tourism Bay of Plenty, and the chair of Te Rangapū Mana Whenua o Tauranga Moana, to discuss the appointment of Mana Whenua representatives on our council-controlled organisation boards, and to ensure these roles are set up to succeed. We will explore opportunities for Pou Takawaenga to provide support through the development of a Māori Engagement Strategy, focusing on tikanga and matauranga Māori.

6. We will begin a process in late-February to appoint interns to our three council-controlled organisation boards, to improve the diversity of thinking around the board table. Interns will commence on 1 April 2022, following a three-day training programme with Governance New Zealand.

7. The team recently undertook a review of Council’s Advisory Groups (Disability, Positive Ageing, and Youth), to ensure that the groups continue to be fit-for-purpose, as well as identifying any opportunities for improvement. The review included extensive community engagement and input and has resulted in a recommendation to establish five special interest groups: youth, disability, ageing, rainbow communities, and migrant leaders. Workshops will be held with each group in the next few weeks to endorse a draft Terms of Reference and establish the meeting structure and schedule for each group. Council staff will also establish a Community Strategic Group with representation from the five special interest groups, to provide more strategic, high-level advice to Council.

8. Community engagement is currently underway on the Accessible Hotspots project, which aims to build more accessible spaces that are inclusive and can be enjoyed by everyone. $400,000 a year was allocated to the project through the Long-term Plan 2021-2031. Spaces and Places staff are working alongside the Community Partnerships team to ensure there is a wide range of opportunities for the community to give feedback and provide ideas on how this funding should be spent to improve accessibility. Staff are also engaging directly with key stakeholders from the disability sector, as well as local schools, to ensure a range of ideas are heard and included.

9. The first Homelessness Provider Network meeting of the year took place on 2 February. The group discussed some key considerations that will be submitted to BOPDHB around supporting our homeless through the COVID-19 traffic-light system, as well as opportunities for us to work together with community groups to be as effective as possible in reducing homelessness in our region and ensure that people get the help that they need, when they need it.

10. The Food Security Hub project is progressing well. A feasibility study has been completed and has confirmed that bringing Tauranga Foodbank and Good Neighbour into one precinct will drive the best community outcomes. We are currently working on a business case where a cost analysis, confirmation of approach and sustainable funding options will be identified and considered. Further information will be provided through the Annual Plan process, once more detail is known.

11. The Vital Update Digital Dashboards are now live and signal an important move in enabling data sovereignty for our community. All raw data is freely accessible and can be analysed and manipulated to meet local information needs.  Dashboards can be viewed here.

12. The Impact and Insights Advisor is supporting the Kāinga Tupu work programme in developing digital and interactive homelessness dashboards for the western Bay of Plenty sub-region – the first of their kind in New Zealand. Opportunities are also being explored to partner with SmartGrowth in the development of housing dashboards as part of this project.

13. The team partnered with Tauranga Western Bay Safer Communities to support the 100% Summer Series in its 11^th year. The series consisted of 10 mobile pop-up events, which were taken to various locations throughout Tauranga and the Western Bay, providing the youth of Tauranga Moana and Western Bay with inclusive and collaborative activities featuring positive messages, development opportunities and productive interactive activities. An outcome report is being finalised and feedback received.

14. Our commitment to ensure diversity and develop and support our ethnic communities has taken another step with the signing of a ‘working together’ agreement with the Ministry for Ethnic Communities. A small signing event was held on 29 November 2021 with Ministry for Ethnic Communities staff and community stakeholders, including representatives of the Tauranga/Western Bay Global Ambassadors programme, which TCC is contributing to. A media release can be found here.

15. Staff are working with the Tauranga/Western Bay Welcoming Communities Steering Group (with membership from TCC, Western Bay of Plenty District Council, Priority One, Toi Kai Rawa – Māori Regional Economic Development Agency, Immigration New Zealand, Ministry for Ethnic Communities, Pacific Island Community Tauranga Trust, NZ Police, and representatives from the Tauranga/Western Bay Global Ambassadors Youth) to begin a refresh of the Welcoming Communities Action Plan. Terms of Reference were updated and key areas were identified to support developing an updated action plan and strengthen our local programme.  A follow-up workshop will be held on 24 February, with a draft plan to be produced by April 2022.

16. Staff are currently working in collaboration with Western Bay of Plenty District Council and NZ Police to run the first multi-ethnic forum in late-March/April. The purpose of the forum is to discuss issues relevant to ethnic communities, based on lived experiences, provide a conduit to wider community views, strengthen connections to resources and information that can support communities, and support civic participation and understanding.

Libraries

17. Libraries are about to launch a new Memory Loss and Dementia-Friendly collection in response to interest from the community. Named with input from the Tauranga branch of Alzheimer’s New Zealand, the collection will be available at all branches and will include a mix of abridged versions of classic titles and pictorial books designed to evoke memories and prompt discussion.

18. Preparation for the move to the interim library premises has involved a substantial number of collection items being withdrawn. Central government and legal publications have been thoroughly reviewed and withdrawn where content is available for customers to access online. The Library Archive and rare books collection will move to Newton Street in April. This will reduce public access to specific times and appointments. The interim location provides an opportunity to continue digitisation and to collaborate closely with the Heritage Collection Team.

19. From December 2021, the introduction of the COVID-19 orange Protection Framework meant we were able to reintroduce some in-person programmes, including our CV writing sessions.  The community has been happy to see this service back in person, with one mother getting her son involved after she gained a job using a CV created in a library session. The introduction of our Digital Drop-in service has meant customers no longer need to book for a lesson and we have waived the $10 fee, making these lessons more accessible. Tech Hour afterschool programmes have also resumed, and we have had great feedback from parents who are excited to have face-to-face coding classes again.

20. Due to the vaccine mandate, Kia Kaha te Pānui summer reading programme pivoted and created a virtual participation model, creating zoom appointments for children who were not able to come into the library with their families.  With visitation generally lower, there was still good completion of this programme, which involves children in 1:1 check-in talks with librarians. Children’s activities over the summer were confined to drop-in activities and take-home packs, due to the ongoing impacts of COVID-19.

21. In January 2022, the Libraries joined up with STEM in the Community, an event run in collaboration with the StemWana trust at the Tink’d Makerspace in Durham Street. The team had an extremely popular event where children aged 5-15 were invited to take part in a Sphero robot ‘mini-Olympics’. Eighty-two children attended the event with their whanau and the lucky winner received a Robotics kit.

22. A new contactless Click and Collect service was created in a short timeframe after the vaccine mandate was introduced and is now available at all libraries. There has been one closure of a library due to a close contact with a COVID-19 case (at Papamoa in December 2021). Staffing is expected to be further-stretched during the Omicron outbreak and this could result in reduced hours, or closure of libraries. Tauranga Central Library will close in March for the relocation to He Puna Manawa.

Spaces and Places

23. The new Kulim Park playground was blessed and opened prior to the Christmas break. Mana whenua have been heavily involved in the design of this playground. There has been a lot of positive feedback from families who enjoyed the new park over the holidays. Work is continuing on the installation of the remaining concrete footpaths, boardwalk/decking sections, and park furniture. Due to public feedback, a 3 x 3 basketball court has also now been added back into the project scope, replacing the old basketball court that was in Kulim Park.  It is anticipated construction of the court will be completed in March.

24. A mini-skate ramp was installed at the Memorial Park skating area just before Christmas, following on from the recently-installed wedge ramp. The mini-ramp was conceived by Sam from Sam’s Skate School. Sam funded half the costs using a grant he was awarded for his work in the community. Council provided the other half of the budget, with the skate community getting behind the construction. Further quick win projects are in development for other existing skate parks. Meanwhile, over 250 individuals volunteered to join the co-design group for the proposed destination skatepark. 24 have been chosen to be representative of a range of user types and the first workshop was held on 10 February. Rich Landscapes Ltd has been awarded the contract to deliver this project. A site is still to be confirmed, which will be the first challenge for 2022.

25. Construction work on the southern section of the Kopurererua Stream realignment project commenced in February.  The work will see the creation of a new stream alignment, cycleway, and wetland. 

26. The eastern section of the Elizabeth Street linear park is largely completed, with Farmers, Whitcoulls and Pascoes now open.  Work around the Grey Street carpark is due for completion in March 2022.  In parallel, we are also working on the Elizabeth Street East/Tunks Reserve section. A drop-in session for Tunks Reserve was held at the Regional Council building before Christmas and was attended by 15 groups or individuals. Feedback was positive and we are progressing to construction of this project, for completion in 2023.

27. The Elizabeth Street carpark construction contract has been awarded to Naylor Love.  Work will commence on the carpark upgrade in February, once consent has been issued. Tender submissions have been received and assessed for the Spring Street carpark works.  Building consent for the carpark upgrade has been lodged.

28. Ngāti Hangarau Kaitiaki have been onsite this summer at Omanawa Falls to deter people from visiting the site. Kaitiaki have reported that the number of daily visitors to the site is higher than last year.  The hearing for the notified consent for the Falls access works has been delayed until April 2022.

29. A blessing of the new basketball court at Dive Crescent was held before Christmas and it is now open for use. Basketball Bay of Plenty donated several basketballs to the site, so everyone can have a go. More improvements to the Dive Crescent area will be delivered through 2022, including reopening the Cargo Shed for public use.

30. Public consultation was undertaken between 17 December 2021 and 31 January, to assist in the finalisation of the concepts for the Marine Parade Coastal Pathway. Signboards outlining the design and several prototypes of the boardwalk design were also placed on site. To help draw crowds in, an award-winning seating/sculpture installation – Nohonga – was gifted to the project over the summer holiday and has been temporarily installed, facing out to Moturiki and Motuotau islands. Over 350 responses were received, with ~90% of respondents strongly agreeing or agreeing with the proposed pathway. Other detail in the feedback received will help inform the design of the pathway. Construction is scheduled to begin later in 2022.

31. Community engagement commenced on 25 January, seeking feedback on how best to create a network of universally accessible and inclusive public places. Two community drop-in days will be held at the Hopukiore – Mount Drury reserve play area, and feedback is being invited until 28 February. The findings from accessibility audits of the play area and streetscapes connecting Hopukiore to Mount Main Beach, Mauao, Pilot Bay and Mount Main Street will also be received at the end of February. Information from the community engagement and accessibility audits will be used to help plan interventions and upgrades in the Mount North area and develop a three-year plan for improvements and upgrades in other areas of the city.

32. As part of the Elder Housing divestment programme, a decision was made to demolish Pitau Village, with four of the six blocks being vacated late in 2021. The procurement plan was signed for this work to be carried out by the end of November, which meant a busy period to enable all the work to be completed prior to Christmas. Grass is planned to be sprayed at the end of March when the water restrictions lift, and this will leave the area as a nice green space.

33. Through the Long-term Plan submission process, a request was received to open a Container Café at Waipuna Park in Welcome Bay. Pippa’s Pantry opened for business with little fanfare on 14 January, but was immediately well-patronised by the many casual users. As word spreads, the café should encourage increased use and enjoyment of the park. 

34. 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 Mount Beachside Holiday Park continues to perform strongly as a great holiday location for Kiwis now unable to travel abroad due to COVID-19 restrictions.  We have seen some reduction in numbers due to the park requiring vaccine passes, but we expect the Holiday Park to perform well over the upcoming summer months. We hope to have our en-suite cabins available for customers in March.

· The new stairs constructed in the Kopurererua Valley near the entrance off Faulkner Street are proving popular with locals. The stairs were listed as an action in the Kopurererua Valley development plan, to provide river access for kayaks. This type of structure is important to reduce bank erosion where people and dogs climb in and out.

· We have completed the drainage work on the main field at Tauranga Domain. This will help improve the resilience of the field through the winter season, ensuring it is in excellent condition for the NPC Bay of Plenty Steamers, as well as ensuring it is fit for wider community use through the busy winter period. This is a positive step for this location, as it will create further opportunities for NZRU, with a strong focus on 7s and Woman’s Rugby.

Venues and Events

35. Over the Christmas and New Year period, the city hosted an array of events which were able to proceed in the orange setting through the implementation of vaccine passports and other COVID-19 precautions.  This included the annual Surf Breaker Triathlon, the BLACK CAPS vs Bangladesh Test Match at Bay Oval, and two sell-out 8,000-person concerts (Summerhaze and Netsky) at the CBD’s Wharepai Domain.  Despite the annual TCC New Year’s Eve community celebrations and fireworks not being able to be delivered under the orange setting, there were plenty of other events for our community and visitors to enjoy.

Netsky and Friends Concert, 3 January 2022

36. The hive of event activity continued throughout January 2022 with a bumper line-up of events, including the 32nd Annual Tauranga Half (part of the Mount Festival of Multisport), the inaugural Polo In The Bay event, and the highly-anticipated T20 Black Clash. 

37. The T20 Black Clash provided a great opportunity to showcase Tauranga and Bay Oval, encouraging significant domestic visitation.  Of the sold-out capacity crowd of 10,081, half the attendees where from outside the region and the event had over one million viewers on TVNZ 1, in addition to being broadcast live on Fox Sports Australia and 57,044 live streams on the day.  This broadcast showcased Tauranga, with vignettes highlighting iconic locations and interviews with players enjoying tourism experiences, along with the energy and fun the crowd was experiencing at Bay Oval.

The inaugural Polo In The Bay, 22 January 2022        The sold out crowd at the T20 Black Clash, 22 January 2022

38. The move to COVID-19 red setting on 23 January 2022 had a significant impact on the events industry, and the Venues and Events team. The Event Facilitation team who manage all event bookings on public open space, had over 150 bookings impacted by the setting change, which have had to be worked through individually with each event organiser. Significantly impacted events included the One Love Festival and, for the second consecutive year, the National Hockey Masters. The National Hockey Masters was predicted to welcome 3,316 attendees from around New Zealand, resulting in a total of 14,503 visitor nights. Its cancellation means a net benefit of $796,882 is now lost to the city.

39. The move to the red setting has also had a significant impact on how the upcoming ICC Women’s Cricket World Cup will be delivered.  While the tournament will be proceeding, spectator numbers will be substantially reduced and all teams will be kept completely separate from the public, with no public interaction.  The Venues and Events team is currently working through these changes and re-working the host city programme accordingly.

The ICC Women’s Cricket World Cup will open in Tauranga on March 4, 2022

40. The Historic Village has two significant capex projects underway. Complex 1 is undergoing a fire remedial project, due to be completed in mid-February, which will allow the final code of compliance on the Village Hall upgrade project (completed early-2021) to be obtained. The second project is Building 25 (The Exchange), involving the removal of asbestos flooring and reinstatement of interior cladding, plus installation of a new bathroom. 

41. The Incubator Creative Hub postponed The Tauranga Fringe Festival at the Historic Village to 15 January 2022, from the October lockdown period. The event was highly successful and attracted 4,768 visitors on the day, enjoying the multi-genre one-day festival. This was the second time that the Fringe festival has been held, with performances and activations across 11 stages, making full use of the Historic Village site. Performers travelled from around the country to take part in the festival, with events including live music, poetry, comedy, theatre, visual art, live mural painting and a fashion parade down the main street of the Village.

42. During this reporting period, a total of 16 events were delivered at Baycourt, spanning two COVID-19 operating frameworks – the ‘Alert Level’ system and the new ‘COVID-19 Protection Framework’. Adapting to the CPF in a short timeframe was not without its pressures, however Baycourt responded well to the challenge and provided seamless service and support to its clients and patrons. Of particular note during this period were three large-scale, back-to-back, week-long dance school events in December 2021; and the 50th reunion celebration for Māori activist group Ngā Tamatoa, which was hosted alongside several panel sessions at the nearby University of Waikato.

43. Following two previous postponements due to COVID-19, the long-awaited Tauranga Musical Theatre (TMT) season of Les Misérables was scheduled to run for two weeks in early-February. Unfortunately, the sudden move to the red setting of the CPF resulted in the cancellation of the season, just prior to its opening night. TMT’s annual/biennial productions are traditionally amongst Baycourt’s bestselling events, which makes the cancellation all the more disappointing for the community, TMT and their supporters.

44. In addition to delivering events, the Baycourt team also found opportunities to support the wider community and local providers/organisations. A selection of props and theming items were gifted to the BOPDHB to support efforts to make their COVID-19 vaccination clinics more inviting for children across the region. Value-in-kind technical equipment and labour was also provided to The Incubator for the Fringe Festival event at The Historic Village on 15 January.

Infrastructure Group

Transport Projects Update

Cameron Road Stage 1 (Harington Street to 17^th Ave)

45. The project is well underway, but has been impacted by COVID-related supply delays to materials and resources. We have measures in place to bulk-order supplies early, so they are available when needed. Specialist equipment is being ordered early from overseas and the contractors are employing local subconsultant companies to boost the available workforce. The completion date is unchanged, with works still expected to be completed by the end of September 2023.

46. Currently, there are three active work areas. Prior to Christmas, we were able to complete the footpaths in all zones. We’ve also completed the side street entrances of Wharf and Spring Streets and work continues preparing the landscape areas and the two-way cycleway.

47. In addition, wastewater renewal works have commenced between Elizabeth Street and 6^th Avenue. As in previous stages, the main construction works will follow completion of the wastewater works.

Cameron Road Stage 2 (17^th Ave to SH29A Barkes Corner)

48. The Request for Proposals (RFP) for the business case has been released to the market. The target date for completion of the detailed business case is by the end of December this year, with detailed design due by September 2023.

Totara Street Cycle Way

49. Physical works for this new shared path/cycleway began in November last year, with an indicative completion date by the end of May this year.

50. Because this is a major thoroughfare, works have been programmed around the various needs of the tenancies/property owners on the route, road user requirements, and peak port access needs (e.g. kiwifruit harvest time).

51. We’ve been running regular radio adverts, as well as weekly e-News updates to keep people well-informed of progress and upcoming works.

Maunganui Road

52. Maunganui Road is a renewal and safety project designed to provide:

(a) better amenity through constructing new central median and planting;

(b) walking and cycling facilities;

(d) improved safety by reducing the road width and slowing vehicles to the posted 50km/h speed limit.

53. Works are progressing well between Golf Road and Tui Street. This section is due for completion shortly after the Easter school holidays. Meanwhile, work on the area from Hinau Street to Sutherland Ave is scheduled to commence in late-March, to avoid coinciding with the Women’s Cricket World Cup matchs.

Sustainability & Waste Update

Cambridge Road Closed Landfill

54. Works are almost complete at the closed landfill on Cambridge Road (Cambridge Park) to ensure contaminants in the landfill do not leech into the environment. At the same time, we have also taken the opportunity to enhance some of the tracks, planting, and other aspects of the park, making it a better environment to visit (see site plan below).

55. We will work with local iwi on dual naming and plan to erect signs that share the history of the landfill and detail what is now in place to protect our environment.

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Resource Wise Business and School Programme

56. The Resource Wise Business Programme is free for all Tauranga businesses and schools who want to reduce waste to landfill and receive auditing on this. We’ve reorganised and rebranded our Resource Wise programmes so we now have one programme running across both schools and businesses.

57. We now have 89 schools participating and 47 businesses. On average 51% of schools and 28% of businesses participating have reached Stage Gold and above, meaning they are diverting 50% or more of their overall waste from landfill.

Resource Wise Community Fund

58. In November, we awarded seven organisations a portion of our Resource Wise Community Fund. The Fund is a $75,000 annual contestable fund to encourage reducing, reusing and recycling waste. The money comes from the government levy on waste going to landfills and can be spent on projects that align with our Waste Management and Minimisation Plan (WMMP). Seven projects will be funded this year.

59. The organisations funded were:

· Greerton Early Learning Centre (to build an ‘at-home reusable nappy cycle’ for households, providing reusable nappies for children to wear at home and at the centre);

· EnviroHub (to support the Precious Plastics project in Tauranga, turning plastics into exciting new products);

· Good Neighbour (to support the rehoming of surplus food and wood waste, keeping vulnerable communities warm and well-fed while reducing waste at the same time);

· Reuse Aotearoa (to investigate reusable packaging opportunities in Tauranga);

· Mount Maunganui Toy Library (to purchase new, long-lasting toys to add to their Toy Library at Mount Maunganui);

· Mainstream Green (to run a waste reduction workshop and build a network of ‘waste activators’ across Tauranga); and

· Accessible Properties (to support their tenants’ use of the new kerbside collections service and reduce what’s sent to landfill).

Kerbside Collection update

60. We are now over seven months into the new service. In this time, we have collected over 20 million kgs of material from bins, with almost 11 million kgs (52.9%) of this comprising glass, recyclables, food or garden waste.

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61. We’re still awaiting our finalised Solid Waste Analysis Protocols (SWAP) results, but the preliminary results look great. For the SWAP audits, we take the contents from a consistent sample of rubbish bins and analyse what is in them, to get an understanding of what is being sent to landfill.

62. Residents are also now able to opt for smaller or larger waste bundles to suit their needs.

Kerbside Contamination Educator

63. Our Kerbside Contamination Educator has been hard at work on the streets checking community recycling bins and giving them Red, Orange or Green tags, as follows:

· Green = Perfect Recycling practice

· Orange = Could do better. It will still be collected but contains 1 – 10 items that should not be there

· Red = Contains 10+ items that will not get collected.

64. In the case of red tags, our educator has a discussion with the resident about what could be done better and gives them the opportunity to put it right. If unnoticed by the driver, these types of situations can contaminate an entire truck, meaning all the material goes to landfill.

65. So far, about 4.6% of bins have received a red tag, with a further 6-8% receiving an orange tag – and the rest are green. We then do the same street a few weeks later and generally find the number of red and orange-tagged bins greatly decrease, or get to zero.

City Waters Projects

Waiāri Project Update

66. The project is entering into its final stages, with the majority of the major structures nearing completion and mechanical and electrical installation progressing.

67. We’ve been working to reduce programme risk through managing and mitigating impacts from the pandemic. These impacts have largely been felt in the supply chain, with delays through manufacturing and shipping. Onsite, there have been impacts in managing COVID protocols to maintain workforce separation (i.e. isolating or limiting trades working in any one space). This has reduced onsite productivity for the Water Treatment Plan by approximately 20%. The intake site, where subcontractor numbers are limited and the long lead-time items have been procured, has been less-impacted.

68. Trunk Main flushing was successfully completed in December, leaving only disinfection to be completed ahead of overall commissioning commencing. Rectification of seal defects on Te Puke Highway commenced on 14February and are scheduled to be completed within the next three weeks, depending on weather conditions.

69. Below are two photos from the Water Treatment plant. The left image shows progress in the Membrane Hall – these are steel membrane racks and black header pipes where future membranes will filter the water (the vertical membrane tubes connect the top and bottom black header pipe). The image on the right is the delivery of the main switchboards, which control the plant power system.

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Te Maunga Wastewater Projects

70. There are a number of specific individual projects currently associated with Te Maunga wastewater water plant upgrade, with a lot of activity underway.

Landward Outfall Project

71. A replacement 1200mm diameter outfall pipeline is currently being constructed from the treatment plant end, heading towards the coast. Approximately 1000m of pipeline has been laid, with a further 700 metres required to be completed.

72. The works site is now approaching the most congested section of the route, with retirement villages on one side of the easement corridor and residential houses on the other side. We’re continuing our communication with affected property owners.

73. Works on a 450m-long section of existing outfall pipeline, part of which is under the dunes to the north of Maranui Street, is on hold waiting for the resource consent process to be finalised. The expectation is these works can commence at the end of June 2022 with completion by the end of December 2022.

Marine Outfall

74. An initial CCTV inspection of the Marine outfall pipeline has ended early, due to ongoing issues with debris within the pipeline halting the collection of data. To address this issue, a local supplier has been procured to manufacture a remotely-operated underwater vehicle (RoV) to remove debris and undertake a sonar survey of the marine section of pipeline.

75. The RoV is expected to be ready by early-April and will be put into service as soon as the ocean conditions allow (at least 3 days of clear weather with a swell size of less than 300mm will be needed.)

Other key projects include:

· Bioreactor 2 Project: A series of piling trials is being conducted to prove the land viability and suitability to meet the design;

· Clarifier 3: An ECI services contract (including the new Inlet Works) is due to be awarded before the end of February, which will enable the preliminary design phase to commence in March.

· Inlet Works: An ECI services contract (which includes the Clarifier 3 works) is due to be awarded before the end of February, which will enable the preliminary design phase to commence in late-2023.

People and Engagement

Community Relations

76. Our Media Impact Score rose to 2.8 at the end of 2021, the highest since February 2020. Consistent improvement in tone has now been sustained for almost a year. The main factor behind this was higher levels of positive reporting on local attractions and events, coupled with positive reporting on larger structural topics, such as the long-term plan and representation issues.

77. The Community Relations team is working with the business to continue to deliver face-to-face opportunities for engagement, while following government guidelines under a red alert level to protect our staff and community.

Te Pou Takawaenga

78. The Memorandum of Understanding with Ngāti Kahu Wairoa Marae to enable completion of the last section of the Tauranga to Omokoroa Cycleway was signed on 14 February. This sets out an agreed pathway for completing the project in a safe manner, both physically and culturally. Key aspects see the cycleway proceed on the opposite side of the road from the marae, thereby enabling separation from the highway and less crossing of egresses.

79. Three key community initiatives to support the highly-impacted Whareroa community have been delivered. Firstly, the reserves between Taiaho Place and the boat ramp access, including behind the Ngai te Rangi offices, have been improved and enhanced to create a space more conducive to positive behaviour and use. A fence has been co-designed and constructed in close collaboration with the community, to prevent parking and illegal activity in the reserve. The area has had a thorough cleanout and planting is planned for the coming autumn planting season. Secondly, a kaitiaki programme has been set up with Whareroa Marae and we have seen positive community outcomes from the subsequent interactions, including closer monitoring of health and safety concerns resulting in testing and clearing the area for swimming. Thirdly, an emergency exit through the airport accessways has been enabled by providing keys for the gates. However, an enhanced option is being investigated that may enable more direct connection through to emergency green zones and away from hazardous industrial activities.

Democracy Services

80. The Local Government Commission (LGC) will hear appeals and objections to the Council’s Final Proposal for Representation on 9 March 2022. The LGC process includes presentations from the Commissioners and any appellants and objectors who wish to be heard, followed by the Council’s right of reply. The LGC Commissioners will deliberate and issue a determination by 11 April.

81. The change of venue for Council and Committee meetings in 2022, to either the Bay of Plenty Regional Council Chambers at Elizabeth Street or the Tauranga City Council ground floor meeting room at 306 Cameron Road, has been advertised and communicated to the public through several channels. Alternative venues for various committees and advisory groups are planned for other venues, including marae. Meetings continue to be livestreamed and are available on the Council’s YouTube channel. The public can attend meetings in person, subject to presenting a vaccine pass or a vaccine exemption from the Ministry of Health, and must follow social distancing, mandatory mask wearing and contact-tracing requirements. People who are presenting and cannot attend in person can attend virtually.

82. The Epidemic Preparedness Notice was extended in December 2021 to 18 March 2022. This extended the Epidemic Preparedness (COVID-19) Notice 2020 (the Principal Notice), and several amendments relevant to local government remain in force while the Principal Notice is in force. These relate to attending council and committee meetings via audio or visual link and enable those who attend remotely to be counted towards the quorum of meetings. It allows 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

83. In December, staff were surveyed to get their views on vaccine mandates at Council. 688 staff responded, with views fairly evenly split – 54% saying yes top mandates, 27% saying no, and 19% saying maybe. The more than 300 comments expressed a full range of views, and of note was that many of the people who ticked the ‘maybe’ category for the first question tended to be concerned about their colleagues’ job security. So, while they didn’t vote ‘yes’ to mandatory vaccinations, the majority of comments from people in the ‘maybe’ column indicated that their preference was for all employees to be vaccinated.

84. All Tauranga City Council offices and work premises became COVID Vaccination mandated from 4 February 2022. During this challenging time, our focus is both keeping our people safe and working to a goal of no forced job losses. Mandating locations rather than people was a very deliberate part of this. Staff who are unvaccinated are working from home, where appropriate, and where this is not possible, every effort is being made to help them find alternate work within Tauranga City Council.

85. Bargaining has been initiated for the Treatment Plants Collective Agreement, which relates to our staff who work in the Water Treatment plants. This CEA is one of two Collective agreements that the Council has in place with the PSA and most of the staff who work in the Water Treatment plants are covered by this agreement.

86. Remuneration project implementation is well underway, with the Job Description refresh in progress. This will be followed by a review of Job sizing across Council. This project will ensure that the Council is competitive in the labour market and continues to be a desirable place to work.

87. The annual Staff Engagement survey was conducted in November, with a 69% participation rate. The overall survey score was 64%, the same as the previous survey conducted in June 2020. All teams at Council are currently holding team sessions to review their results and develop action plans to lift engagement in the workplace.

Customer Services

88. The Customer Service Centre relocated to He Puna Manawa, at 21 Devonport Road, on 24 January. The move to Devonport Road is part of Council’s staged withdrawal from its Willow Street site. Before the Customer Service Centre officially opened its doors at He Puna Manawa, local kaumātua Tamati Tata, of Ngāi Tamarāwaho, led a blessing of the space and Commission Chair Anne Tolley cut a ribbon opening the new building. The Customer Service Centre will be based at He Puna Manawa until the construction of Council’s leased administration building at 90 Devonport Road is completed.

Health and Safety

89. Health and Safety clauses within the 3910:2013 Form of Contract, used in many of our construction contracts, have been revised. The original clauses were drafted following the introduction of the Health and Safety at Work Act 2015. Today, we have a better understanding of the intention behind the new legislation and have updated several of the clauses to reflect this.

90. The HSW team is supporting the organisation through transition to the COVID Protection Framework Traffic Light System, changes to mask and vaccine mandates and introduction of Rapid Antigen Testing.

Regulatory and Complicance

Environmental Regulation

Regulation Monitoring

91. From 1 November 2021, we increased our freedom camping patrols from four to seven nights a week, in response to an increase in campers visiting the city. We continue to respond to all complaints of freedom camping breaches.

92. During the second quarter of this financial year, we received 67 complaints regarding freedom camping breaches, most of which involved vehicles freedom camping in non-permitted areas. These complaints were all investigated and along with proactive monitoring of sites, we issued a total of 83 infringement notices. This compares with 291 infringements for the second quarter of the 2020/21 financial year. This reduction in infringements may be attributed to the cancellation of large events which have previously generated high levels of non-compliance in this area; or that this is the second summer post COVID-19 and returning domestic visitors are now aware of the rules.

93. During October, November and December 2021, 600 complaints regarding illegal parking issues were received and responded to. This is a slight increase from 525 complaints received for the same period in 2020.

Environmental Health and Licensing

94. On 17 February 2021, IANZ will be assessing our food verification processes under the current Quality Management System. The team is looking forward to the opportunity to test their process and ascertain whether any improvements can be made in the realm of food verifications.

95. In the lead up to Christmas, the Alcohol Licensing team was bolstered with the recruitment of two new alcohol licensing inspectors. Both inspectors are quickly adapting to their new roles and are looking forward to the challenge ahead.

Emergency Management

Welfare

96. We are continuing with our contingency planning around a concurrent emergency event occurring at different levels of the COVID-19 protection framework. The planning is focused on:

· Evacuation – including where to evacuate people self-isolating;

· The development of welfare toolkits to include QR codes and alternative contact tracing forms;

· Considerations for setting-up physical Civil Defence Centres;

· Consideration of what welfare support sub-functions can be provided virtually and those that cannot;

· The national directive is that immediate life-saving actions take primacy over adhering to COVID-19 restrictions, in the first instance.

Operations

97. We currently have 79 council staff on our Emergency Operations Centre list and just over half are fully-trained. There have been no training courses available since July 2021, but formal training is commencing and staff are scheduled on courses for the first five months of 2022.

98. Pandemic plans that comply with the COVID Protection Framework (CPF) have been created for the Emergency Management team in both business as usual and an activated Emergency Operations Centre. Conversations have been held within the team about priority tasks in the event of staff absence due to COVID-19.

Mount Industrial Zone Project update

99. The purpose of this project is to collate industrial hazard information for the Mount Industrial Zone to enable an understanding of how multiple concurrent hazard events could impact the city and define a zone of impact from hazard events, beyond the individual site.

100. A meeting for operators was held on 8 October 2021. The catchment includes 24 relevant businesses - 10 businesses have provided us with summary details and five businesses have provided detailed emergency hazard and response plans. We are continuing to contact operators and requesting their detailed plans.

101. Spatial mapping of the hazard extent has commenced. When completed this will show influence zones from each hazard site and scenario modelling will provide worst-case situations. Impacts from each major site are being plotted, with the objective of large-scale printed copies being available for the Emergency Operation Centre.

Building Services

102. The number of building consent applications received in October (252) and November (269) was relatively consistent with previous years, but the volumes received in December (250) and January (265) were 20-40% higher than normal, as applicants aimed to get their applications in before development contributions increased on 1 February 2022. This temporary increase isn’t as significant as in July 2021, which saw a nearly 100% increase in volumes. We believe this is in part due to increased communication to the development community about the impending increases, but also the challenges for the industry to find architects, engineers and other consultants leading up to and over the holiday season.

103. We granted 300 consents and amendments in October, 304 in November, 226 in December and 122 in January. This is slightly more than previous years, with the exception of January, which was lower. This is a result of more staff taking extended breaks over the summer holiday season than in previous years.

104. As a result of the significant backlog of consents, compliance with statutory timeframes has remained low, with 45% of consents and amendments being issued in 20 working days in October, 51% in November, 61% in December and 58% in January. Given the high volumes received in December and January, we expect this backlog and compliance with statutory timeframes to remain a challenge for the rest of this financial year at least.

105. We implemented a new recruitment strategy late last year and have had five new trainee Building Control Officers start at the beginning of February. These staff, along with two other new BCOs appointed in late-2021, will be attending the Auckland Council Building Control Training School and will have an 6-9 month programme of training. We are hoping to have them assessed for competency and able to work autonomously in 12 months’ time. While this is a significant cost and period of limited output, it’s hoped this will help overcome our recruiting challenge in the face of a national resource scarcity. With these trainees, we are approaching a full team, but we will continue to advertise for experienced staff who could hit the ground running.

106. Inspection wait times remain positive, with 45-minute inspection slots regularly available with one day’s lead-time.

107. Our Plumbing and Drainage inspectors are working with MBIE, Master Plumbers NZ and two other BCAs on a pilot scheme for self-verification of plumbing work. This is a long-term project looking to reduce the regulatory burden on plumbing work, while continuing to ensure appropriate standards are maintained. Initial feedback is positive.

108. Following our IANZ assessment in September, we had three minor GNCs (General Non-Compliances) that needed to be resolved. These have now all been addressed, well within the required timeframes, and IANZ has formally confirmed our BCA accreditation. As a result of council’s BCA being assessed as Low Risk, the next IANZ assessment is not due until September 2023. We are really proud of this achievement and believe it places our BCA amongst the best in the country.

109. All of our Building Control Officers are required to go through competency reviews, but of significant note is that our Building Engineering Team Leader recently had his Chartered Professional Engineer (CPEng) status reconfirmed, following his 5-yearly review by Engineering NZ. Following the outcome of this assessment, he was invited by Engineering NZ to become an assessor. This recognition is well-deserved.

Environmental Planning

110. The team continues to receive a higher-than-average number of applications, building consent reviews, DC invoice reviews, and reported incidents and has been working hard to process these.

111. We have rolled-out some exciting customer-centric process improvements recently. These include our ‘Promises to Customers’ document, customer charter and a ‘Touch Point’ document (soon to be released). These documents are being communicated externally with consultants and applicants to help give clear expectations and guidance around the application process and improve the customer experience. The Monitoring team has also been working on several process improvement projects, all aiming to ensure we provide a higher level of customer service and streamline the process as much as possible.

112. Additionally, an internal guide has been designed to give clear guidance to staff on returning incomplete applications and feedback quickly, so applicants can address any issues as quickly as possible.

113. For the first time in a number of years, we have now officially filled all advertised vacancies in the Environmental Planning team. We continue to look to implement staff progression plans and retain staff through team-focused activities.

Corporate services

Finance

114. We are continuing to look at financial risks and opportunities for alternative funding arrangements. This work will be reflected in the Annual Plan and Long Term Plan Amendment financial proposals.

Rates and rating valuations

115. The triennial citywide revaluation has been approved. The new valuation notices were emailed and posted to customers from Thursday 10 February. Objections to valuations close on 25 March 2022. The capital value of the City has increase by 50% and the average residential valuation is now $1.12 Million. The overall residential/commercial split is similar to the previous 2018 valuations, but commercial properties have risen by 33% on average, while industrial properties have risen on average by 70%. This is primarily due to limited serviced land supply within the City boundaries. The residential sector has seen relatively similar rises in valuations at the lower, middle and upper ends of the market with coastal properties having larger increases.

116. The second rates instalment is due on 28 February 2022. We estimate that 93% of rates due will be collected, with a further 2-3% expected to be collected before penalties are applied. This expected collection percentage is similar to past years.

Marine Precinct – Vessel Works

117. The hardstand continues to be quieter than normal. This appears to be a trend in the industry and can be attributed to COVID. In addition, the border restrictions have halted international vessels arriving at the facility, further contributing to the current situation.

118. We are increasing our advertising and marketing campaigns in targeted publications and websites to attract customers. Additionally, we are planning face-to-face meetings with past and potential customers.

119. Construction of the wharf extension is progressing. This wharf will provide improved mooring capacity for facility users and replace dated infrastructure. The design work is complete, as is the procurement plan. Negotiations with an adjacent landowner are progressing, as is the resulting easement. In addition, we are working with the council planning team to manage some overland flow-paths.

Tauranga Airport

120. The airport remains fully-operational through all alert levels, as required by government. Since Omicron has arrived in NZ, we have seen a 25% reduction in scheduled services across the country and on top of this, further flight cancellations due to crew availability. The drop-off in passengers is particularly noticeable with business travellers.

121. This has seen a reduction in aeronautical revenue, but all other aspects of the business continue to perform well financially.

Legal

122. Significant legal and commercial issues will be reported to the Strategy, Finance and Risk Committee.

Digital

Update on Retention and Disposal Work – Information Management

HR Inactive Files

123. Between July and December, we disposed of 608 hard copy files and electronic documents relating to inactive staff, in accordance with the retention and disposal schedule.

124. We have also set up a new electronic structure to help with ongoing file management and have marked the electronic and hard copy files of inactive employees which need to be retained.

125. Once finished, any remaining hard copy material will be scanned into the system.

Animal Control Files

126. Work to clean-up the animal control files electronic system structure has begun, in preparation for implementing the retention and disposal schedule.

127. We have agreed with the animal control team to keep these for 10 years, rather than 7 years in the first instance, and review this in 12 months.

128. Once the structure is clean, we have identified 100,283 records which can be disposed of.

Annual Plan Submissions Management

129. Building on last year’s digital enablement of LTP consultation management, work is underway for the Annual Plan and LTPA consultation, using SAP Qualtrics. Minor changes and enhancements are being made, based on feedback from Corporate Planning and Democracy Services, as well as analysis of usage by the activity managers responsible for responding to feedback.

130. Enhancements include an improved self-booking experience for community members and creating efficiencies for staff managing consultation feedback.

2022 Tauranga Aerial Mapping

131. 2022 Tauranga City Aerial Mapping was undertaken this month.

132. Given the growth of the city and high demand, we have transitioned from a 24-month to a 12-month mapping cycle.

133. Now that the imagery has been completed, the GIS team will spend about 6 weeks importing and aligning these with our online mapping solution, before opening these up to the community and organisation.

Strategy and Growth

Infrastructure Acceleration Fund (IAF) RFP - Application Update

134. All four of TCC’s IAF applications were successful in proceeding to the Request For Proposal stage of the application process. The applications were for Tauriko West, Te Papa Peninsula, Wairakei Town Centre and Parau Farms. Altogether, Council’s total IAF ask is $214m. Council has provided further information on each application, including updates to costings or other relevant information. These applications closed on the 21 December 2021. Relevant updates on each project include:

a) Tauriko West – Application for $80m (previously $54.9m)

An updated cost range for the total project (all funding sources) is estimated to be between $192m and $227m. Cost escalations remain a risk, not only for the Tauriko West project, but all off TCC’s capital projects, with consumer price inflation reaching 5.9% in December 2021. Conversations with Waka Kotahi (WK) are continuing on their funding share, with the business case being submitted to WK board for approval in April 2022.

b) Te Papa – Application for $97m (previously $95.3m)

Joint project funding requests totalling $228m were submitted for the Te Papa Peninsula. This included various transport (including Cameron Rd Stage 2), stormwater and water supply projects, to help enable additional houses to be built in a more intensive manner.

c) Wairakei Town Centre – Application for $20m

The were no material changes in the Wairakei Town Centre application, with total costs for the project estimated to be approximately $136m. Alongside the IAF process, significant progress has been made on the Housing Infrastructure Fund component of project funding.

d) Parau Farms – Application for $17m (previously $15.6m)

A share of the $17m project costs at Parau Farms was applied for in the RFP stage of the IAF application. Discussions are ongoing with Kāinga Ora in regard to their lead in the development of the site, along with local Hapū who have expressed interest in the project, to ensure archaeological sites and wider cultural values are protected and reflected in development outcomes. Further engagement with hapu is underway, ahead of decisions around potential disposal of the site for housing development.

135. Next Steps - Notification of the outcomes of the RFP process is expected by the end of April, with an invitation to commence negotiation for successful proposals beginning at this time.

Resource Management Act Housing Amendment & Plan Change 26

136. In December 2021, an amendment to the Resource Management Act was passed which includes requirements for Council to make changes to our City Plan, enabling residential intensification in existing urban areas. The provisions are very specific, requiring, amongst other things, three dwellings up to three stories high on a lot, as of right. The Plan Change must be notified by August 2022.

137. Staff have, after seeking legal advice, assessed the implications of the legislative change and have come to the conclusion that it is unlikely that there is a viable pathway for Plan Change 26 to be progressed, and it is therefore necessary to consider an entirely new plan change. Staff will report to Council at an upcoming meeting on options around the scope of that plan change. These legislative changes have deferred the timing of implementation of the intensification component of our urban growth strategy.

Ōtūmoetai Spatial Plan

138. On 24 November 2020, Tauranga City Council’s Urban Form and Transport Development Committee endorsed the commencement of spatial planning for the Ōtūmoetai / Brookfield area. The purpose of the Ōtūmoetai Spatial Plan is to create a 30-year blueprint that provides strategic direction for growth in the Ōtūmoetai, Matua, Brookfield, Bellevue and Judea area. The plan creates an integrated land use and transport network for the local area that connects with the wider city, supported by public amenities. The spatial plan will provide strategic direction for these matters and prepare a future implementation programme to achieve the intended outcomes. The plan will assist in more efficient use of resources, including infrastructure, and improve the way we move around, and how we live. It is anticipated that the spatial plan will consider future land use planning, transport, culture and heritage, three waters, open space, community facilities and the urban realm. The spatial plan will inform both strategic and long-term planning, as well as investment.

139. The spatial plan will take form within a wider growth context, including building on the outcomes of the draft Tauranga Urban Strategy and the Urban Form and Transport Initiative (UFTI). Further to this, the National Policy Statement on Urban Development (NPS-UD) and RMA Amendment Bill requires TCC to apply medium density residential standards from August 2022 and also enable higher-density residential development in proximity to town centres, local centres and neighbourhood centres. This will inform the future land use of the Ōtūmoetai area.

140. The preparation of the Spatial Plan will include working in partnership with mana whenua in the Otumoetai area, including representatives of Ngāti Ranginui, Ngāi Te Rangi, Ngāti Pukenga, Ngāi Tamarāwaho, Ngāti Tapu, Ngāi Tukairangi and Ngāti Hangarau, as well as wider engagement with iwi and hapū through the Te Rangapū Mana Whenua o Tauranga Moana Partnership. The project will involve residents, key stakeholders (e.g. schools, local businesses) and the wider community.  This will ensure that the spatial plan reflects the community’s needs and aspirations, as well as the strategic goal to encourage developments in and around centres.  

141. Next Steps:

a) November 2021 - March 2022 – Data gathering and review of existing engagement feedback;

b) March/April 2022 – public engagement to ascertain what the community, mana whenua and stakeholders love about this area and what they would like to see changed;

c) April 2022 - Design Sprint workshop with a range of internal teams and external technical experts to prepare a number of spatial plan options;

d) May/June 2022 – public engagement to ascertain what the community, mana whenua and stakeholders think about the proposed spatial plan;

e) Mid-2022 – Review and refinement of draft spatial plan;

f) Mid-2022 - Final Spatial Plan including implementation strategy;

g) Post-2022 – roll-out of the Ōtūmoetai spatial plan through specific projects.

Plan Change 30 – Earthworks (PC30)

142. On 30 August last year, Commissioners appointed a Hearings Panel and delegated authority to make decisions on PC30.

143. As part of pre-hearing discussions, matters outstanding were clarified and an Agreed Statement of Planning Position was finalised with the key submitter. On 22 November, it was decided that a formal hearing would not be necessary, as the outstanding matters had been sufficiently articulated for the Panel to make a decision. The finalised decision was provided by the Panel on 27 January.

144. As the Council resolution enabled the Panel to make decisions on the plan change, there is no requirement for Council to formally adopt the decision of the Panel for notification, or for staff to bring a report to the Commissioners seeking further resolution.

145. The decision of the Hearings Panel will be notified on Monday 14 March 2022. The notification process will involve public notice in the Bay of Plenty Times (Saturday, 12 March 2022) and Weekend Sun (Friday, 11 March 2022). A copy of the public notice is required to be served on all submitters and further submitters, together with information on where the decision can be viewed. Submitters and further submitters will be sent a letter or email with this information prior to the notification of the decision. Any appeals to the decision must be lodged with the Environment Court and Council within 30 working days of service of the notice of the decision.

146. After the close of the appeal period, a report will be prepared for the Council outlining whether any appeals have been received and next steps. If no appeals are received, the plan change will be made operative.

Review of Liquefaction Likelihoods - TCC/BoPRC Review of RPS Likelihoods

147. Liquefaction risks and requirements under the BOP Regional Policy Statement (RPS) have been under discussion between the SmartGrowth partner councils for some time. The issues have a significant impact on future urban development of the city.

148. TCC, SmartGrowth, and BoPRC are jointly undertaking a project to better inform liquefaction management, within the scope of the operative provisions in the BOP RPS. The scope of works is to recommend alternate likelihoods that can be used in the risk classification approach of the RPS, through exploring differing codes, acts, compliance documents and policy statements. Tonkin and Taylor (T&T) has been working with the organisations to better define options for the likelihoods which could be utilised in risk assessments, and its application to future growth within the city.

149. TCC and BoPRC have been presented with the results, which recommend changes to the likelihoods from those stated in the default BoPRC risk assessment methodology. Both Councils are reviewing these recommendations, noting that progress on this project is on track. The drafted recommendations will now be presented to a group of TCC Category 1 Geoprofessionals in a workshop to be held in February 2022. Feedback from the TCC Category 1 Geoprofessionals will then be considered by the organisations and T&T. A finalised report will be produced for use by the Councils in future liquefaction assessments.

Utilisation of Proceeds of Housing & Land Sales

150. The sale of much of the elder housing portfolio is progressing well and staff are now commencing work on the investigation of options to utilise funding, in accordance with the general direction provided to date by Commissioners. Recommendations have been received from Kainga Tupu and staff will also connect with other councils to understand what learnings can be shared.

151. The intention is to bring some early thinking to Commissioners in an informal session in April, to seek input and guidance on matters to be explored further. This is expected to progress to a formal report to Council in June.

Attachments

Nil

Ordinary Council meeting Agenda

28 February 2022

11.5 Tauriko West - Enabling Works Business Case

File Number: A13192288

Author: Alistair Talbot, Team Leader: Transport Strategy & Planning

Peter Siemensma, Senior Transport Planner

Tom McEntyre, Infrastructure Funding Specialist

Authoriser: Christine Jones, General Manager: Strategy & Growth

Please note that this report contains confidential attachments.

Public Excluded Attachment

Reason why Public Excluded

Item 11.5 - Tauriko West - Enabling Works Business Case - Attachment 3 - Tauriko West Enabling Works cost share

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).

Purpose of the Report

1. To present to Council the Tauriko West Enabling Works business case and seek endorsement for its submission to Waka Kotahi New Zealand Transport Agency (Waka Kotahi) for their approval.

Recommendations

That the Council:

(a) Endorses the Tauriko West Enabling Works business case for submission to Waka Kotahi New Zealand Transport Agency for their consideration and investment approval.

(b) Notes the investment timing, estimated costs, cost-sharing and funding sources as outlined in the Enabling Works business case are subject to final agreement through project partner decision-making (i.e. National Land Transport Fund) and wider processes associated with the Infrastructure Funding and Financing Levies and Infrastructure Acceleration Fund grants.

(c) Notes that the project costs are estimated to be above those included in the Councils Long Term Plan 2021-2031 and that these costs will be reflected in the draft Annual Plan 2022/23 and the Long-Term Plan Amendment being developed.

(d) Notes that Waka Kotahi New Zealand Transport Agency have signalled intention to lead the delivery of the pre-implementation and implementation/construction phases as presented in the Enabling Works business case and that discussions to confirm how this occurs is progressing between Council and Waka Kotahi New Zealand Transport Agency.

(e) Notes that endorsement of the Enabling Works business case does not commit TCC / Waka Kotahi to implementation, a further decision-making gate will occur when construction tender costs are available. This decision gate will be after Waka Kotahi Board decisions on the Tauriko Network Connections Long-Term Business Case including planned timing and staging of those works such as a complimentary public transport package.

(f) Strongly encourages Waka Kotahi to bring forward and deliver the:

(i) Public Transport package alongside the Enabling Works; and

(ii) Full State Highway 29 long term works package with construction commencing by 2025.

(g) Retains Attachment 3 in confidential to protect Council to carry on, without prejudice or disadvantage commercial negotiations.

Executive Summary

2. The Enabling Works business case (provided as Attachment 1 and 2) investigation has identified the immediate network improvements and activities to provide safe and multimodal access to enable the first stage of urban development (2,000 homes) in the Tauriko West Urban Growth Area (UGA) while also supporting the ongoing development of the Tauriko Business Estate (TBE) and maintaining the function of State Highway 29 (SH29).

3. The Tauriko West UGA forms a part of the wider Western corridor that has been identified through the Bay of Plenty Regional Policy Statement (RPS), SmartGrowth, and the Urban Form and Transport Initiative (UFTI) as a key corridor for housing and urban development to support the growth of the city over the next 50 years. Structure planning for this UGA has been ongoing since 2017 as part of the Tauriko for Tomorrow project, jointly progressed between Council, Waka Kotahi/ New Zealand Transport Agency (Waka Kotahi), Western Bay of Plenty District Council, Bay of Plenty Regional Council, SmartGrowth and hapu representatives.

4. The Tauriko West UGA, when fully developed, is proposed to deliver a new community with an estimated 3,000-4,000 new dwellings with associated amenities such as schools, parks and access to shopping and community facilities.

5. The network improvements and activities identified by the Enabling Works business case include new and improved intersections with SH29 (e.g. Redwood Lane roundabout; Tauriko Village and Cambridge Road signalised intersections), local road improvements (e.g. Whoire Avenue; Kaweroa Drive & Redwood Lane extensions) that support multimodal transport, and travel demand management activities.

6. The estimated costs of the Enabling Works business case are between $149m (P50 estimate cost) and $184.5m (P95 estimate cost). Work is ongoing to confirm the cost shares and funding sources to implement the Enabling Works busines case. To deliver the Enabling Works business case, costs are to be shared between developers within Tauriko West UGA, Council, Waka Kotahi and Central Government (via proposed Infrastructure Funding & Financing (IFF) levies and Infrastructure Acceleration Fund (IAF) grants).

7. The next steps for the Enabling Works project, subject to Council approval of this Report’s recommendations, include:

(a) Submission of the Enabling Works business case to Waka Kotahi for their decision-making and associated National Land Transport Fund (NLTF) funding. As the project costs are above $50M the Waka Kotahi decision is made at their Board level which is programmed to occur in April 2022.

(b) Ongoing work to secure Infrastructure Funding and Financing (IFF) and Infrastructure Acceleration Fund (IAF) funding sources.

(c) Ongoing work to confirm with Waka Kotahi their approach and programme for delivering the pre-implementation and implementation phases of the Single Stage Business Case (SSBC). Pre-implementation workstreams like project design will occur concurrently while Waka Kotahi approval processes are underway to avoid further project delays.

8. Further to the above, Waka Kotahi are continuing to progress the Tauriko Network Connections Long-Term business case (Long Term business case). In addition to identifying the long-term State Highway alignment for the Western corridor the Long Term business case is expected to identify activities to compliment the Enabling Works business case like a broader public transport package (e.g. Tauriko bus facility; public transport network priority connecting Tauriko to Cameron Road) that could be implemented as a first stage of the Long Term business case.

9. It is noted that endorsement of the Enabling Works business case does not commit TCC or Waka Kotahi to implementation. There is a further decision-making gate once construction tender costs are available. Construction tender costs are expected later in 2022 and following Waka Kotahi’s decision-making (programmed for July 2022) on the Long-Term business case which is to confirm the timing and staging of the various improvements included in that business case.

Background

Western Corridor

10. Tauranga’s Western corridor has been identified through the Bay of Plenty Regional Policy Statement (RPS), SmartGrowth and the Urban Form and Transport Initiative (UFTI) as a key corridor for housing and urban development to support the growth of the city over the next 50 years. The development of the Western corridor will contribute significantly to addressing demand for housing and business land in an integrated manner across the western Bay of Plenty sub-region. Included within the Western Corridor are the existing growth areas of The Lakes (Pyes Pa West) and the Tauriko Business Estate (TBE) along with the future growth areas of Tauriko West, Keenan Road and the extension of TBE. As identified through the SmartGrowth Western Corridor Strategic Study and the Urban Form & Transport Initiative Final Report there is significant further urban development potential in the Western Corridor beyond the planned growth areas identified above that will be considered in the longer term.

11. Transport planning in the Western corridor and particularly for State Highway 29 presents some challenges given its need to function as the key inter-regional freight route while also enabling quality urban development that is supported by a multi-modal transport network.

12. Responses to these challenges have been considered over many years including in the 2016 Tauriko Network Programme Business Case (PBC) and continue to be investigated by the developing Waka Kotahi Long Term business case.

13. The UFTI and the Western Bay of Plenty Transport System Plan (TSP) have also considered the challenges facing the Western corridor. These documents provide direction on how the Western corridor integrates with the wider sub-regional transport network. A key part of this is the connection of the Western corridor to the Te Papa peninsula which will be supported via a multi-modal corridor enabled by the Cameron Road improvements (Stage 1, now under construction; Stage 2, at DBC investigation stage) and improvements to the SH29a corridor between Barkes corner and the SH29/SH36/Takitimu Drive roundabout (being investigated through the Long Term business case referred to above).

14. As a result, land use and transport planning for the Western corridor through strategic planning and structure planning has been integrated to ensure that the corridor can be serviced effectively both short and long term and support the delivery of the planned growth while delivering a functioning multi-modal transport network.

2016 Tauriko Network Programme Business Case (PBC)

15. The PBC, which is endorsed by the Waka Kotahi Board provides an overarching transport plan for the Western corridor to enable the planned urban development while also supporting the role of SH29 as a nationally strategic freight route. The PBC (refer to Diagram 1) identified the need for:

· State Highway upgrades on or near the existing SH29 alignment, including capacity improvements and grade separation of intersections. These improvements are to be confirmed by the still developing LT DBC.

· Improvements to the local road network, including development of a local ring road linking SH29 through to SH36 and on to Oropi Road/SH29a. It is noted that the section of ring road (Kaweroa Drive) through the Tauriko Business Estate (TBE) has largely been delivered by the developer and Council as this development has occurred and future stages will be considered alongside planning for the future Keenan Road urban growth area.

· Investment in public transport, walking, cycling and travel demand management to support modal shift.

16. In respect to the Tauriko West UGA, the PBC identifies a local ‘spine’ road connecting the southern and northern areas of the Tauriko West UGA. This has been retained and refined as part of the Enabling Works business case.

Diagram 1: Tauriko Network Programme Business Case

Tauriko Network Connections Long Term Detailed Business Case

17. Waka Kotahi is leading the development of the Long Term business case. Currently, Waka Kotahi is progressing towards confirming the preferred option / improvements.

18. At this stage of the investigation the emerging preferred option Waka Kotahi is investigating further is Option B – Offline

Diagram 2: Option B – Offline: Emerging Preferred Option

19. The investigation has identified that Long-term Option B offers improvements for mode shift, with walking, cycling and high frequency public transport connections through the area, protects the freight route and improves safety with a new four lane state highway alongside the existing SH29 and SH29A (offline). The Enabling Works business case is integrated and aligned with this Long-term Option B and is considered a first stage of the Long-term option.

20. Waka Kotahi is currently working on developing Option B in more detail, and this includes further alignment analysis and developing implementation sequencing and staging of improvements (e.g. timing for state highway improvements; public transport improvements). The current Waka Kotahi programme is to complete the Long-Term business case in July 2022.

21. In addition to identifying the long-term State Highway alignment for the Western corridor the Long Term business case is expected to identify activities that complement the Enabling Works business case like a broader public transport package (e.g. Tauriko bus facility; public transport network priority connecting Tauriko to Cameron Road) that could be implemented as a first stage of the Long Term business case.

Enabling Works Business Case

22. With the release of the Government Policy Statement on Land Transport 2018, the SH29/Tauriko West business case was re-evaluated using the new transport investment objectives. Council and Waka Kotahi agreed to progress the Enabling Works business case separate to, but integrated with, the Long-Term business case. This recognised the need to identify solutions in the shorter-term that enable the planned urban development of Tauriko West and ongoing development of the TBE while Waka Kotahi re-confirmed the scope and funding availability to continue to progress the Long Term business case.

23. The network improvements and activities identified by the Enabling Works business case enable the first 2,000 homes to be established in Tauriko West, along with supporting infrastructure (sport fields primary school and community facilities) and the continued development of the existing Tauriko Business Estate and at least part of the planned Tauriko Business Estate extension.

24. Solutions for the continued operation of the Tauriko Primary School and Tauriko Playcentre have been proposed through the Enabling Works business case.

25. The network improvements to support this development are shown on Diagrams 3 and 4 and include:

· A new roundabout at SH29/Redwood Lane.

· Closure of the existing SH29/Belk Road intersection.

· A new intersection with traffic lights on SH29 at Tauriko village.

· An upgrade of SH29 to four lanes between the new intersection at Tauriko village and Cambridge Road, including provision of a new shared walking and cycling path.

· An upgrade of the existing SH29/Cambridge Road intersection with traffic lights and a new connection to Tauriko via Whiore Avenue (for buses, pedestrians, and cyclists only).

· Provision of a shared walking and cycling path along both sides of Whiore Avenue.

Diagram 3: Tauriko West: Draft Land-use Plan & Enabling Works Network Improvements

Diagram 4: Enabling Works Business Case Transport Improvements

Diagram

Description automatically generated

26. The Enabling Works business case also identifies a package of travel demand management measures (e.g. a land use structure planning processes that enables local services (e.g. local dairy; child care facilities) to be established within identified neighbourhood centres; prioritising active and public transport; residential travel planning and programmes) to support and enable multi-modal and urban development outcomes.

Strategic / Statutory Context

27. The Tauriko West UGA is part of the wider western corridor that has been identified through the Bay of Plenty Regional Policy Statement (RPS), SmartGrowth, and the Urban Form and Transport Initiative (UFTI) as a key corridor for housing and urban development to support the growth of the city over the next 50 years.

28. The Enabling Works business case has identified the network improvements and activities required to provide safe multimodal access of the UGA to enable the first stage of the growth which will include 2,000 homes and associated amenities. As such, the Enabling Works business case is considered aligned to all six of the ‘Community Outcomes’ in the Councils Long Term Plan 2021-31 but in particular:

· We have a well-planned City

· We are inclusive

· We can move around our City easily

29. In addition, the Enabling Works business case will contribute to the Council meeting its requirements under the National Policy Statement – Urban Development (NPS-UD) in respect to development capacity requirements and implements expectations in SmartGrowth and UFTI.

Options Analysis

30. The proposed options are summarised below:

(a) To progress with endorsement of the Enabling Works business case and its submission to Waka Kotahi for their decision making.

(b) Not progress with endorsement of the Enabling Works business case.

31. The options are assessed in the Table below. Proceeding with Option 1 is the staff recommendation.

32. At a project level, option identification and assessment of the various elements (e.g. intersection treatments) took place as part of the developing the business case. That process is discussed in the Enabling Works business case included in Attachment 1.

Option Description

Pros

Cons

Endorse the business case and its submission to Waka Kotahi

Recommended

Continues to support the delivery of the Tauriko West UGA for urban development

Contributes to addressing the housing supply shortages facing Tauranga

Enables the quantum of NLTF investment to be confirmed and this information to inform other funding processes (e.g. IFF & IAF)

Supports the next phases (e.g. property acquisition, consenting & detailed design) of the project to continue aligned to the findings of the business case investigation

The next stage of the Enabling Works project is progressing in the absence of certainty of the timing and funding to deliver the required long-term transport network improvements in the Western corridor.

Not progress with endorsing the Enabling Works business case

Postponing endorsement of the Enabling Works Business Case would enable more time to gain more certainty of the timing and funding to deliver the required long-term transport network improvements in the Western corridor.

Would delay the delivery of the Tauriko West UGA and its contribution to addressing the housing shortages facing Tauranga

Would impact the Council reputation with affected Tauriko West landowners (including Kāinga Ora) and developers

Would not enable the quantum of NLTF investment to be confirmed which would compromise other funding processes (e.g. IFF & IAF)

Does not recognise the ability to concurrently progress some of the next steps of the project (e.g. Enabling Works detailed design while other investigations such as the Long Term business case are completed).

FINANCIAL CONSIDERATIONS

33. The network improvements and activities as per the Enabling Works business case including estimated costs are provided in Table 2 below. It is noted that the estimated costs have been externally peer reviewed by experienced quantity surveyors as part of the development of the Enabling Works business case. Through the pre-implementation phase, cost savings opportunities will be considered (e.g. potential to move the Tauriko Village signalised access further north; Tauriko School temporary carpark), which may help to offset other cost pressures.

34. It should be noted that the LTP budgets were prepared at an earlier stage in the planning and since then significant further work has been completed on the design and costing of the project components. Recent information on market rates has also been reflected. The cost increases are reflected within the Long-Term Plan Amendment (Refer Long-Term Plan Financials Report on this agenda).

Table 2: Estimated costs of the Enabling Works business case elements

(a)

Description (TCC portion)	LTP 2021 budget	Enabling Works Components
Description (TCC portion)	LTP 2021 budget	50%ile	95%ile
Whiore Ave Walking / Cycling and Bus Improvements	$2,982,000	2,921,000	3,531,000
Cambridge Road intersection + portion of SH29 widening + Bus access to/from Whiore Ave	$60,845,000	43,451,000	52,752,000
Tauriko Village Access Road intersection + portion of SH29 widening + Service Station site clearance		33,965,000	45,292,000
Tauriko School Temporary Carpark		5,610,000	6,528,000[1]
Redwood Lane – Walking and cycling elements (underpass)	$39,652,000	7,088,000	8,490,000
Redwood Lane realignment		3,871,000	4,721,000
Redwood Lane/ SH29 roundabouts SH29 approaches and Kaweroa Drive		46,255,000	56,803,000
Belk Road Closure		383,000	444,000
Kaweroa Drive connection (600m) ‘over & above’ width	$3,975,000	$3,100,000	$3,460,000
Travel Demand Management (TDM) Package	Not yet included in the LTP. Once timing of the activity is better known an activity is able to be added to the LTP.	$2,552,000	$2,552,000
$ 107,454,000		$149,196,000	$184,573,000

35. Initially the intent was to deliver all project elements in one construction phase. However, given some elements present some uncertainties (e.g. land purchase) and the delivery of some elements ahead of other provide alternative transport routes away from construction (e.g. the Redwood Lane roundabout enables traffic to travel via the TBE away from SH29), staged delivery has been considered and is recommended within the Enabling Works business case. This will be further considered through the pre-implementation stage including impacts on the timing of housing development commencing in the north. Construction staging is currently as follows:

(a) Stage 1: Redwood Lane Roundabout and Whiore Ave, as there are no or limited perceived complexities associated with developing this component of the project.

(b) Stage 2: Tauriko West intersection, Cambridge Road intersection and midblock improvements between these improvements.

36. The LTP currently identifies that construction will occur between late 2023 and 2026 with property acquisition, RMA (e.g. plan change; consenting), and detailed design occurring prior to that. These timeframes are still to be confirmed through the next stage of work.

Other Services: Water and Wastewater

37. Bulk water and wastewater infrastructure to both the northern and southern access points are also required and will be delivered through the pre-implementation and construction stages in an integrated manner. The projects are included in the Council’s LTP 2021-31 however costs have increased since the LTP was adopted.

Table 3: Water and Wastewater cost estimates

Water	Description	LTP 2021 budget	Current Estimate
Water Main – Northern Connection	Water main from Taurikura Drive/Gargan Road/SH29 to Northern Connection	2,978,000	7,462,897
Water Main – Southern Connection	Water main Kennedy reserve/Kaweroa Drive (western corridor) to Redwood Lane area	6,900,000	20,317,366
Total		9,878,000	27,780,263

Wastewater	Description	LTP 2021 budget	Current Estimate
Whiore Avenue	Full package of WW works from Tauriko West boundary to Landing pump station via Whiore Avenue	4,739,964	7,046,735
Interim / Stage 1A – Southern Connection	Full package of WW works from Tauriko West boundary to Kennedy Rd pump station via TBE	24,025,630	15,880,000
Total		28.765,594	22,926,735

38. Several funding sources have been investigated to develop a package for delivering the Tauriko West transport and waters Enabling works. This includes Infrastructure Funding & Financing Levies, Infrastructure Acceleration Fund grants, development contributions, Waka Kotahi funding and direct developer funding and delivery. The broader funding package is positively advancing but not yet complete and is not addressed in detail within this report. It will be the subject of future reporting to Council and commitment to project construction is subject to a full funding package being agreed.

39. TCC endorsement of the Enabling Works business case is essential for Waka Kotahi to then consider co-funding of the business case from the NLTF. Different percentages of co-funding have been proposed through discussions with Waka Kotahi. If the Waka Kotahi Board gives a final approval, only then the funding split will be finalised. Further information is contained in Confidential Attachment 3.

40. The cost share assumptions and funding sources for the Enabling Works business case are set out in the Table 4 below.

Table 4: Cost assumptions and funding sources

Project and cost estimate		NLTF funding (% and $’s)		Other Funding (% and $’s)
Whiore Ave improvements	50%	51%	$1,489,710	49%	$1,431,290
	95%		$1,800,810		$1,730,190
Cambridge Road intersection, includ. section of SH29 widening and Whiore Avenue ‘bus gate’	50%	51%	$22,160,010	49%	$21,290,990
	95%		$26,903,520		$25,848,480
Tauriko Village ‘northern access’ and including section of SH29 widening, relocated school car park, and service station site clearance	50%	51%	$20,183,250	49%	$19,391,750
	95%		26,428,800		$25,391,800
Redwood Lane / SH29 roundabout including Redwood Lane realignment connection and walking & cycling elements	50%	32%	$18,474,668	68%	$38,739,332
	95%		$23,424,223		$46,589,777
Kaweroa Drive connection (600m) ‘over & above’ width	50%	51%	$1,581,000	49%	$1,519,000
	95%		$1,764,600		$1,695,400
Belk Road Closure	50%	51%	$195,330	49%	$187,670
	95%		$226,440		$217,560
Tauriko West Spine Road		0%		100%
Travel Demand Management package	N/A	51%		49%

41. In respect to the above Table, the following is noted:

(a) Approval to lodge the Enabling Works business case to Waka Kotahi enables the NLTF share to be confirmed. The Waka Kotahi decision making is programmed for April 2022.

(b) Developers fund the cost of infrastructure internal within the UGA and vest this in Council. This includes the costs associated with the Spine Road and other local roads within the UGA, local reserves, and water, stormwater and wastewater infrastructure.

Legal Implications / Risks

42. At a broader strategic level, the risk of not acting includes inconsistency with central government direction, including exacerbating the non-compliance with the development capacity requirements National Policy Statement – Urban Development and adding to the city’s housing and business land shortage.

43. There are a range of project delivery risks for the enabling works projects and the wider delivery of growth in Tauriko such as land acquisition, further project cost escalation, rezoning of Tauriko West for development and complementary investments being considered through the Waka Kotahi LT business case. These are not critical to the decision to endorse this business case and can be managed through other processes in the future such as decision making on construction tenders. As such they are not set out in any further detail.

44. The main uncertainty associated with the decision to endorse this business case revolves around Waka Kotahi consideration and whether there is sufficient NLTF funding available. To mitigate this uncertainty effort has been put into developing a high quality business case that meets Waka Kotahi expectations. This includes working closely with Waka Kotahi staff through the business case process, appointing experienced consultants and third-party peer review processes.

45. There are funding risks associated with the project which will be managed through the project lifecycle (i.e. supply price increases; inflation). As noted elsewhere in this report, approval of the business case by Waka Kotahi will reduce some of the funding uncertainties.

46. Some legal risk with at least one significant property owner remains which will be carried through to pre-implementation phase. As we move to delivery some parts of the community will show a keen interest in the nature and timing of complimentary investments in the transport network being progressed through the Waka Kotahi LT business case.

Consultation / Engagement

47. Funding for the Tauriko for Tomorrow project was confirmed in 2016, and engagement on the Tauriko for Tomorrow project was initiated following that as part of the Long Term business case and structure planning for Tauriko West UGA. This included engagement with stakeholders and partners, including directly affected landowners, the wider community, Bay of Plenty Regional Council, Western Bay of Plenty District Council, and the project specific tangata whenua liaison group known as Te Kauae o Roopu over the intervening time period (at varying stages for selected groups listed below). This group included six hapu having ancestral links to the area, and who whakapapa to Ngati Ranginui and Ngai Te Rangi Iwi of Tauranga Moana:

· Ngati Kahu,

· Ngati Rangi,

· Ngati Pango,

· Pirirakau,

· Ngati Hangarau, and

· Ngai Tamarawaho.

48. Te Kauae a Roopu hui also involve representatives of TCC, WBOPDC, BOPRC, Waka Kotahi and the Ministry of Education (MoE). The format included meeting regularly on a six-weekly basis (generally) to work in partnership on the assessments and investigations required for technical aspects, heritage, and cultural values.

49. A list of all partners and stakeholders consulted can be found in Table 3.2-1 of the Business Case (provided as Attachment 1). Most recently in May 2021 this included community engagement on the Enabling Works and Long Term business cases and related land use planning initiatives.

50. Ongoing engagement continues with Tauriko West landowners/developers who are partners in the project. Council also continues to engage with specific groups and communities affected by the project.

51. Further engagement will occur in future through the pre-implementation (e.g. detailed design phase) with landowners directly affected by the proposed improvements. In addition, engagement will continue to occur as part of the ongoing structure planning of the growth area.

52. Waka Kotahi are expected to lead next step engagement as part of them leading the pre-implementation and implementation activities. It is understood that Waka Kotahi will also continue to engage on its Long Term business case, along with Council continuing to engage on the development and finalising of the Tauriko West Structure Plan and rezoning.

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 matter.

55. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the decision is of high significance. On one hand the development of Tauriko West has been well signalled and the initial set of costs can be managed within existing budgets, on the other hand significant uncertainties and risks remain around planning, funding and implementation. Formal Council endorsement of the business case is a key step in progressing Waka Kotahi approval and securing funding.

Next Steps

56. The next steps for the Enabling Works project, subject to Council approval of this Report’s recommendations, include:

(a) Submission of the Enabling Works business case to Waka Kotahi for their decision-making and associated National Land Transport Fund (NLTF) funding programmed for April 2022.

(b) Ongoing work to secure IFF and IAF funding sources.

(c) Ongoing work to confirm with Waka Kotahi their approach and programme for delivering the pre-implementation and implementation phases of the Enabling Works business case. Pre-implementation workstreams like project design will occur concurrently while Waka Kotahi approval processes are underway to avoid further project delays.

(d) Continuing to work with Waka Kotahi and project partners to support the conclusion of the Long Term business case and through that process obtain certainty of the timing and staging of the improvements for the wider Western corridor (e.g. State highway realignment; broader public transport package).

(e) Reporting back to Council once construction tender costs are available to confirm implementation.

Attachments

1. Tauriko West Enabling Works Detailed Business Case - A13239841 (Separate Attachments 1)

2. Tauriko West Enabling Works Detailed Business Case - Package of Appendices - A13240040 (Separate Attachments 1)

3. Tauriko West Enabling Works cost share - A13218799 - Public Excluded

[1] This item is being specifically reviewed in terms of cost saving opportunities (refer paragraph 33)


AGENDA Ordinary Council meeting Monday, 28 February 2022
I hereby give notice that an Ordinary Meeting of Council will be held on:
Date:	Monday, 28 February 2022
Time:	10am
Location:	Bay of Plenty Regional Council Chambers Regional House 1 Elizabeth 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

Advantages		Disadvantages
· Managers have reviewed the fees and charges and have made recommendations based on actual and reasonable costs · Proposed fees and charges align with the current draft annual plan budgets · Preparation of the Statement of Proposal and engagement planning can begin.		· Potential opportunities for other fees and charges may not have been considered.

Key risks	Further opportunities for fees and charges may have to wait until the 2023/24 Annual Plan.
Recommended?	Yes, noting flexibility in option 2.

Advantages		Disadvantages
· Potential opportunities for fees and charges may be raised and considered.		· Delays to the development of the Statement of Proposal · Delays in finalising the draft annual plan budgets.

Key risks	Potential delays in preparing the draft annual plan financial forecasts.
Recommended?	This option allows flexibility to consider variations to the fees noting that significant changes and the introduction of new fees may delay adoption of a draft fee schedule.

· 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.