Agenda of Strategy, Finance and Risk Committee Meeting

Terms of reference – Strategy, Finance & Risk Committee

Membership

Chairperson	Commission Chair Anne Tolley
Deputy chairperson	Dr Wayne Beilby – Tangata Whenua representative
Members	Commissioner Shadrach Rolleston Commissioner Stephen Selwood Commissioner Bill Wasley
	Matire Duncan, Te Rangapū Mana Whenua o Tauranga Moana Chairperson Te Pio Kawe – Tangata Whenua representative Rohario Murray – Tangata Whenua representative Bruce Robertson – External appointee with finance and risk experience
Quorum	Five (5) members must be physically present, and at least three (3) commissioners and two (2) externally appointed members must be present.
Meeting frequency	Six weekly

Role

The role of the Strategy, Finance and Risk Committee (the Committee) is:

(a) to assist and advise the Council in discharging its responsibility and ownership of health and safety, risk management, internal control, financial management practices, frameworks and processes to ensure these are robust and appropriate to safeguard the Council's staff and its financial and non-financial assets;

(b) to consider strategic issues facing the city and develop a pathway for the future;

(d) to review and determine the policy and bylaw framework that will assist in achieving the strategic priorities and outcomes for the Tauranga City Council.

Membership

The Committee will consist of:

· four commissioners with the Commission Chair appointed as the Chairperson of the Committee

· the Chairperson of Te Rangapū Mana Whenua o Tauranga Moana

· three tangata whenua representatives (recommended by Te Rangapū Mana Whenua o Tauranga Moana and appointed by Council)

· an independent external person with finance and risk experience appointed by the Council.

Voting Rights

The tangata whenua representatives and the independent external person have voting rights as do the Commissioners.

The Chairperson of Te Rangapu Mana Whenua o Tauranga Moana is an advisory position, without voting rights, designed to ensure mana whenua discussions are connected to the committee.

Committee's Scope and Responsibilities

A. STRATEGIC ISSUES

The Committee will consider strategic issues, options, community impact and explore opportunities for achieving outcomes through a partnership approach.

A1 – Strategic Issues

The Committee's responsibilities with regard to Strategic Issues are:

· Adopt an annual work programme of significant strategic issues and projects to be addressed. The work programme will be reviewed on a six-monthly basis.

· In respect of each issue/project on the work programme, and any additional matters as determined by the Committee:

○ Consider existing and future strategic context

○ Consider opportunities and possible options

○ Determine preferred direction and pathway forward and recommend to Council for inclusion into strategies, statutory documents (including City Plan) and plans.

· Consider and approve changes to service delivery arrangements arising from the service delivery reviews required under Local Government Act 2002 that are referred to the Committee by the Chief Executive.

· To take appropriate account of the principles of the Treaty of Waitangi.

A2 – Policy and Bylaws

The Committee's responsibilities with regard to Policy and Bylaws are:

· Develop, review and approve bylaws to be publicly consulted on, hear and deliberate on any submissions and recommend to Council the adoption of the final bylaw. (The Committee will recommend the adoption of a bylaw to the Council as the Council cannot delegate to a Committee the adoption of a bylaw.)

· Develop, review and approve policies including the ability to publicly consult, hear and deliberate on and adopt policies.

A3 – Monitoring of Strategic Outcomes and Long Term Plan and Annual Plan

The Committee's responsibilities with regard to monitoring of strategic outcomes and Long Term Plan and Annual Plan are:

· Reviewing and reporting on outcomes and action progress against the approved strategic direction. Determine any required review / refresh of strategic direction or action pathway.

· Reviewing and assessing progress in each of the six (6) key investment proposal areas within the 2021-2031 Long Term Plan.

· Reviewing the achievement of financial and non-financial performance measures against the approved Long Term Plan and Annual Plans.

B. FINANCE AND RISK

The Committee will review the effectiveness of the following to ensure these are robust and appropriate to safeguard the Council's financial and non-financial assets:

· Health and safety.

· Risk management.

· Significant projects and programmes of work focussing on the appropriate management of risk.

· Internal and external audit and assurance.

· Fraud, integrity and investigations.

· Monitoring of compliance with laws and regulations.

· Oversight of preparation of the Annual Report and other external financial reports required by statute.

· Oversee the relationship with the Council’s Investment Advisors and Fund Managers.

· Oversee the relationship between the Council and its external auditor.

· Review the quarterly financial and non-financial reports to the Council.

B1 - Health and Safety

The Committee’s responsibilities through regard to health and safety are:

· Reviewing the effectiveness of the health and safety policies and processes to ensure a healthy and safe workspace for representatives, staff, contractors, visitors and the public.

· Assisting the Commissioners to discharge their statutory roles as "Officers" in terms of the Health and Safety at Work Act 2015.

B2 - Risk Management

The Committee's responsibilities with regard to risk management are:

· Review, approve and monitor the implementation of the Risk Management Policy, Framework and Strategy including the Corporate Risk Register.

· Review and approve the Council’s "risk appetite" statement.

· Review the effectiveness of risk management and internal control systems including all material financial, operational, compliance and other material controls. This includes legislative compliance, significant projects and programmes of work, and significant procurement.

· Review risk management reports identifying new and/or emerging risks and any subsequent changes to the "Tier One" register.

B3 - Internal Audit

The Committee’s responsibilities with regard to the Internal Audit are:

· Review and approve the Internal Audit Charter to confirm the authority, independence and scope of the Internal Audit function. The Internal Audit Charter may be reviewed at other times and as required.

· Review and approve annually and monitor the implementation of the Internal Audit Plan.

· Review the co-ordination between the risk and internal audit functions, including the integration of the Council's risk profile with the Internal Audit programme. This includes assurance over all material financial, operational, compliance and other material controls. This includes legislative compliance (including Health and Safety), significant projects and programmes of work and significant procurement.

· Review the reports of the Internal Audit functions dealing with findings, conclusions and recommendations.

· Review and monitor management’s responsiveness to the findings and recommendations and enquire into the reasons that any recommendation is not acted upon.

B4 - External Audit

The Committee's responsibilities with regard to the External Audit are:

· Review with the external auditor, before the audit commences, the areas of audit focus and audit plan.

· Review with the external auditors, representations required by commissioners and senior management, including representations as to the fraud and integrity control environment.

· Recommend adoption of external accountability documents (LTP and annual report) to the Council.

· Review the external auditors, management letter and management responses and inquire into reasons for any recommendations not acted upon.

· Where required, the Chair may ask a senior representative of the Office of the Auditor General (OAG) to attend the Committee meetings to discuss the OAG's plans, findings and other matters of mutual interest.

· Recommend to the Office of the Auditor General the decision either to publicly tender the external audit or to continue with the existing provider for a further three-year term.

B5 - Fraud and Integrity

The Committee's responsibilities with regard to Fraud and Integrity are:

· Review and provide advice on the Fraud Prevention and Management Policy.

· Review, adopt and monitor the Protected Disclosures Policy.

· Review and monitor policy and process to manage conflicts of interest amongst commissioners, tangata whenua representatives, external representatives appointed to council committees or advisory boards, management, staff, consultants and contractors.

· Review reports from Internal Audit, external audit and management related to protected disclosures, ethics, bribery and fraud related incidents.

· Review and monitor policy and processes to manage responsibilities under the Local Government Official Information and Meetings Act 1987 and the Privacy Act 2020 and any actions from the Office of the Ombudsman's report.

B6 - Statutory Reporting

The Committee's responsibilities with regard to Statutory Reporting relate to reviewing and monitoring the integrity of the Annual Report and recommending to the Council for adoption the statutory financial statements and any other formal announcements relating to the Council's financial performance, focusing particularly on:

· Compliance with, and the appropriate application of, relevant accounting policies, practices and accounting standards.

· Compliance with applicable legal requirements relevant to statutory reporting.

· The consistency of application of accounting policies, across reporting periods.

· Changes to accounting policies and practices that may affect the way that accounts are presented.

· Any decisions involving significant judgement, estimation or uncertainty.

· The extent to which financial statements are affected by any unusual transactions and the manner in which they are disclosed.

· The disclosure of contingent liabilities and contingent assets.

· The basis for the adoption of the going concern assumption.

· Significant adjustments resulting from the audit.

Power to Act

· To make all decisions necessary to fulfil the role, scope and responsibilities of the Committee subject to the limitations imposed.

· To establish sub-committees, working parties and forums as required.

· This Committee has not been delegated any responsibilities, duties or powers that the Local Government Act 2002, or any other Act, expressly provides the Council may not delegate. For the avoidance of doubt, this Committee has not been delegated the power to:

o make a rate;

o make a bylaw;

o borrow money, or purchase or dispose of assets, other than in accordance with the Long-Term Plan (LTP);

o adopt the LTP or Annual Plan;

o adopt the Annual Report;

o adopt any policies required to be adopted and consulted on in association with the LTP or developed for the purpose of the local governance statement;

o adopt a remuneration and employment policy;

o appoint a chief executive.

Power to Recommend

To Council and/or any standing committee as it deems appropriate.

UNCONFIRMED Strategy, Finance and Risk Committee Meeting Minutes

12 September 2022

MINUTES

Strategy, Finance and Risk Committee Meeting

Monday, 12 September 2022

Order of Business

1 Opening karakia. 3

2 Apologies. 3

3 Public forum.. 4

4 Acceptance of late items. 4

5 Confidential business to be transferred into the open. 4

6 Change to order of business. 4

7 Confirmation of minutes. 4

7.1 Minutes of the Strategy, Finance and Risk Committee meeting held on 1 August 2022. 4

8 Declaration of conflicts of interest 4

9 Business. 4

9.1 Mainstreets' Monitoring Reports for the period to 30 June 2022. 4

9.2 Deliberations on Easter Sunday Shop Trading Policy. 6

9.3 Refreshed outline plan of Committee's upcoming work programme. 7

9.4 Strategic framework refresh - Action and Investment Plans update. 8

9.5 Revocation of Policies. 8

9.6 Draft Annual Report 9

9.7 Long-term Plan 2021-31 actions tracker 10

9.8 Annual Residents' Survey 2021/22. 11

9.9 Growth & Land Use Projects Progress Report - September 2022. 11

9.10 Housing Sufficiency and Affordability, Tauranga City. 12

10 Discussion of late items. 13

11 Public excluded session. 13

11.1 Public Excluded Minutes of the Strategy, Finance and Risk Committee meeting held on 1 August 2022. 13

11.2 Cybersecurity Update - 2022 Q1-Q2. 14

12 Closing karakia. 14

MINUTES OF Tauranga City Council

Strategy, Finance and Risk Committee Meeting

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

ON Monday, 12 September 2022 AT 9.30am

PRESENT: Dr Wayne Beilby (Acting Chairperson), Commissioner Shadrach Rolleston, Commissioner Stephen Selwood, Commissioner Bill Wasley, Ms Matire Duncan, Mr Te Pio Kawe, Ms Rohario Murray, Mr Bruce Robertson

IN ATTENDANCE: Marty Grenfell (Chief Executive), Paul Davidson (Chief Financial Officer), Christine Jones (General Manager: Strategy, Growth & Governance), Alastair McNeill (General Manager: Corporate Services), Gareth Wallis (General Manager: City Development & Partnerships), Anne Blakeway (Manager: City Partnerships), Carlo Ellis (Manager: Strategic Māori Engagement), Kendyl Sullivan (City Partnerships Specialist), Sharon Herbst (Policy Analyst), Jeremy Boase (Manager: Strategy & Corporate Planning), Anne Payne (Principal Strategic Advisor), Sandy Lee (Policy Analyst), Ruth Woodward (Team Leader: Policy); Sheree Covell (Treasury and Financial Compliance Manager), Ceilidh Dunphy (Community Relations Manager) Jolene Nelson (Team Leader: Corporate Planning), Andy Mead (Manager: City & Infrastructure Planning), Alistair Talbot (Team Leader: Structure Planning & Strategic Transport), Ayv Greenway (Team Leader: Growth Research & Analytics), Coral Hair (Manager: Democracy & Governance Services), Robyn Garrett (Team Leader: Governance Services), Sarah Drummond (Governance Advisor), Anahera Dinsdale (Governance Advisor),

External Mainstreets presenters: Claudia West - Mt Maunganui; Sally Cooke and Brian Berry - Downtown; Leah Sutton and Julia Maketlow - Papamoa

Acting Chair Dr Wayne Beilby acknowledged the passing of Queen Elizabeth II and the ascension to the throne of King Charles III.

A minute of silence was held in recognition of her late Majesty’s long years of service.

1 Opening karakia

Commissioner Shadrach Rolleston opened the meeting with a karakia.

2 Apologies

Apology

Committee Resolution SFR9/22/1

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the apology for absence received from Cr Anne Tolley be accepted.

Carried

3 Public forum

Nil

4 Acceptance of late items

NIL

5 Confidential business to be transferred into the open

NIL

6 Change to order of business

NIL

7 Confirmation of minutes

Items 7.1 and 7.2 were moved together.

7.1 Minutes of the Strategy, Finance and Risk Committee meeting held on 1 August 2022

Committee Resolution SFR9/22/2

Moved: Commissioner Bill Wasley

Seconded: Mr Bruce Robertson

That the Minutes of the Strategy, Finance and Risk Committee meetings held on 1 August 2022 and 15 August 2022 be confirmed as true and correct.

Carried

8 Declaration of conflicts of interest

Nil

9 Business

9.1 Mainstreets' Monitoring Reports for the period to 30 June 2022

Staff Kendyl Sullivan, City Partnerships Specialist

External Mainstreets Presenters:

Claudia West, Mt Maunganui Mainstreet

Sally Cooke and Brian Berry, Downtown Mainstreet

Leah Sutton and Julia Maketlow, Papamoa Mainstreet

Mt Maunganui Mainstreet

Ms West presented to the committee and provided an overview of recent events and work that had occurred. These included:

· Jazz Fest – last held in Mt Maunganui ten years ago, there was a large turnout equivalent to a summer’s day trade; Matariki at the campground event.

· Mainstreet was looking forward to the cultural connections event and had reached out to Multicultural Tauranga for planned events.

· Outdoor movies had gained popularity and had added vibrancy.

· Micro activations showed they had provided a good return on investment.

· The Annual Plan had been converted to a project plan and results would be reported back in six months.

· Four promotional videos had been launched with the new website.

· Member attendance had fluctuated. Walkabouts and other contact had been completed along with a member onboarding pack to explain how and what the association did.

· Financial expectations were on target or, due to the pandemic, tracking only slightly below forecast.

· Ongoing concerns were street safety, the need for more CCTV and better lighting in laneways and pedestrian areas.

· Road markings had been repainted since a recent accident at the Banks Ave roundabout.

· Mainstreet was looking forward to completing the Strategic Plan, filled board positions and the return of cruise ships.

· Acknowledgement was made of Ms Sullivan’s work since she had started at Tauranga City Council, and her professionalism, enthusiasm, diligence and advocacy for the Mainstreet associations was noted.

Discussion

· Night patrols had been instigated and the removal and occurrence of graffiti had improved.

· Contact had been made with the local police to help with street safety.

· Mainstreet had worked well with the resources available.

· The committee thanked Mount Mainstreet for their report and congratulated the team for the remarkable turnaround they had created.

Downtown Mainstreet

Mr Brian Berry and Ms Sally Cooke provided a presentation and update on current and ongoing events and issues in the Downtown area. These included:

· A small cash surplus had been generated mainly due to restrictions from the pandemic. This was carried forward and would allow Downtown to deliver more in the new financial year.

· The “Rediscover your city” was noted as a successful and well received campaign.

· The Downtown Board had turned its focus to an ‘end game’ and were working with the local police on safety and security in the downtown area, and with Tauranga City Council Central City Refresh team in the development and building of a new and vibrant city centre.

· Ms Cooke provided a more detailed overview of the Central City refresh programme, the opportunities to provide curated and packaged content that used a public lens.

· The challenge was for the public to rediscover what was already here and what was coming. This would require a change in perceptions. To this end Downtown had partnered with a number of publications and was also engaging influencers to change perception.

· The recent school holiday programme was a sold-out event.

· Due to the diverse audience reached, digital channels provided increased recognition.

· Downtown also noted the support and work completed by Ms Sullivan.

Discussion

· The ongoing lack of foot traffic was still a major disruption to the central city; road works and building and demolition added to this.

· Downtown was partnering with the Central City Refresh which would provide hard data to work from. It was anticipated this data analysis would be provided to the committee following the Christmas New Year period.

· The Santa parade would be held again this year.

Papamoa Mainstreet

Ms Sutton and Ms Maketlow introduced themselves as the new Chair and Deputy Chair of the Papamoa Mainstreet board and provided a brief update on activities.

Key points

· The Committee would like to receive any metrics the associations could provide, particularly, if possible, anonymised data on turn over and data on foot traffic statistics.

· A six-monthly survey to association members including questions on needs being met, metrics on vacancy rates and lease turnover, walking numbers and financial reports was suggested.

· It was understood that financials in the form of sales data were not available, but the associations had looked at dashboards solutions that showed more market trends.

· Provided thanks to all the Mainstreets for the work they did and their commitment to support and connect with the communities they worked with.

Committee Resolution SFR9/22/3

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Bill Wasley

That the Strategy, Finance and Risk Committee:

a) Receives the Mainstreets’ Monitoring Report for the period to 30 June 2022.

b) Receives the Greerton Village Community Association Report to 30 June 2022 and Annual Plan for 2022/23.

c) Receives the Mount Business Association Report to 30 June 2022 and Annual Plan for 2022/23.

d) Receives the Mainstreet Tauranga Report to 30 June 2022 and Annual Plan for 2022/23.

e) Receives the Papamoa Unlimited Report to 30 June 2022 and Annual Plan for 2022/23.

Carried

Attachments

1 Presentation from Mainstreet Tauranga

2 Presentation from Papamoa Unlimited

3 Presentation from Mount Business Association

9.2 Deliberations on Easter Sunday Shop Trading Policy

Staff Sharon Herbst, Policy Analyst

Key points

· Staff provided a short overview of the proposed policy and noted that there were no significant changes.

In response to questions

· The current policy aligned with other territorial authorities. Tauranga City Council was the ‘first cab off the rank’ to complete a review and hearing process for the policy.

· There was a private members bill before parliament regarding Easter Trading but this was not yet through the parliamentary process.

· Of 67 territorial authorities that had a policy, 42 allowed trading and 23 did not.

Committee Resolution SFR9/22/4

Moved: Commissioner Bill Wasley

Seconded: Mr Bruce Robertson

That the Strategy, Finance and Risk Committee:

(a) In relation to the key deliberation matters that arose from feedback during the consultation period:

(i) Agree to continue with the current policy, to allow trading in all of Tauranga on Easter Sunday and include a minor change to show support for events and markets held on Easter Sunday and clarify that ‘shops’ also include markets.

(ii) Amend the draft Easter Sunday Shop Trading Policy to include as an appendix a map of the Tauranga City area.

(iii) Does not advocate to Central Government to review the Shop Trading Hours Act

(iv) Does not advocate to Central Government to review the Sale and Supply of Alcohol Act to allow unrestricted sale and supply of alcohol on Easter Sunday.

(b) Recommend to Council to adopt the proposed Easter Sunday Shop Trading Policy included as Attachment 1 in this report.

Carried

9.3 Refreshed outline plan of Committee's upcoming work programme

Staff Jeremy Boase, Manager: Strategy & Corporate Planning

Key points

· The report was an update and information report which followed on from previous reports.

· Noted that each line item was a project, and that some moved faster and some slower.

In response to questions

· It was anticipated that any hearings for the Action and Investment Plans would be held prior to the Annual Plan in March 2023. Most efficient process and timing was considered to be setting aside two to three days of hearings to allow submitters on multiple plans to attend once, and the committee to make the best use of time.

· More information would be provided by the Urban Design Panel once they had been appointed.

· Mount Manganui Spatial Plan: scope work had commenced and had been split into two phases as the work saw six to seven workstreams come together in a package.

· Growth management and the reports completed above to be provided to Smart Growth.

Committee Resolution SFR9/22/5

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Notes the updated outline work programme for the Committee per Attachment 1.

Carried

9.4 Strategic framework refresh - Action and Investment Plans update

Staff Anne Payne, Principal Strategic Advisor

Jeremy Boase, Manager: Strategy & Corporate Planning

Key points

· The report was designed to tie in with the work programme update and outlined the next steps and formal process regarding the Actions and Investment Plans.

· Further reporting would provide smaller updates in a summary form. The three consultation documents would stay in draft format until the actions and investment plan hearings were completed.

· Framework would be reported to the Committee before moving to Council but this would not be prior to Christmas.

In response to questions

· The committee confirmed that these would be completed in time to feed into the next Long Term Plan process and that some items would be included in the 2023 Annual Plan.

· The plan was designed to spread the workload, particularly on key stakeholders, to reduce the risk of not achieving timeframes.

Discussion points raised

· Noted the importance of communication of a joined story regarding how the plans sit and what they would achieve for the City.

Committee Resolution SFR9/22/6

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Strategic framework refresh - Action and Investment Plans update".

Carried

9.5 Revocation of Policies

Staff Sandy Lee, Policy Analyst

Ruth Woodward, Team Leader: Policy

Key points

· Provided an overview of policies that were no longer relevant, out of date or overtaken by other legislation.

· All policies were checked by subject matter experts.

In response to questions

· Clarification was sought on paragraph 6 in relation to the current three sister city relationships.

· Current burial policy and bylaw allowed for the time constraints of Muslim burials with an area already established in the cemetery. There would not be a replacement policy as new legislation now covered requirements.

Committee Resolution SFR9/22/7

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Revokes the Elder Housing Tenant Eligibility Policy 2007

(b) Revokes the Stewart Trust and Carruthers Trust Funds Policy 2013

(d) Revokes the Fluoridation Policy 1992

(e) Revokes the Exclusive Burial Areas in Council Cemeteries Policy 2010

Carried

At 11.02am the meeting adjourned.

At 11.20am the meeting reconvened.

9.6 Draft Annual Report

Staff Paul Davidson, Chief Financial Officer

Sheree Covell, Treasury and Financial Compliance Manager

Kathryn Sharplin, Manager: Finance

Jolene Nelson, Team Leader: Corporate Planning

Key points

· The Chief Financial Officer provided a brief overview nothing the ongoing and changing nature of the process. Adoption of the Annual Report was planned for December.

· Noted did not include a consolidated report at this point so some areas such as council-controlled organisations, equity statements and revaluations were not included.

· There was an operating surplus from interest rate management; $700,000 of the surplus would be retained in a reserve which could be used to balance any adverse effects going into the future.

· Waters revaluation could put pressure on timeframes and could result in a modified opinion if unable to be completed in time due to resourcing constraints.

· Majority of surplus reflected work that had not been completed in the current financial year and would be carried forward into the coming year.

In response to questions

· Waters revaluation was required. Council operated a three yearly revaluation cycle; additionally, revaluation was required if there had been a material (more than 10%) change; this was the case with the waters revaluation due to the movement in markets and prices.

· Staff noted that there was a lack of auditors and valuers to complete work NZ-wide, which created delays in response and receiving required information.

· In-cycle revaluation was of roading and marine; and waters revaluation was subject to resourcing.

· Noted that the “Highlights, opportunities and challenges” section in the report was useful.

· Noted that there should be a larger Māori component in the ‘snapshot of the city’ section of the report, to better reflect and represent the role of tangata whenua in the city. Māori names used in the draft report to be checked for accuracy.

· Question around assurance of water quality and provision of safe drinking water; not raised by the auditors at this stage.

Committee Resolution SFR9/22/8

Moved: Commissioner Stephen Selwood

Seconded: Mr Bruce Robertson

That the Strategy, Finance and Risk Committee:

(a) Receives the Report – Tauranga City Council Draft unaudited Annual Report 2021/22

(i) Agrees the proposed presentation of the annual report including the year in review

(ii) Agrees that the interest rate variance is transferred to a contingency reserve to assist in managing variability in interest rates over the next few years.

(iii) Notes that there is a risk that a waters revaluation will delay the adoption of the 2021/22 Annual Report or result in a modified audit opinion.

Carried

Attachments

1 Draft Financial Statements

9.7 Long-term Plan 2021-31 actions tracker

Staff Jolene Nelson, Team Leader: Corporate Planning

Key points

· There were 120 actions, 63 from the Long-term Plan, of which 33 had commenced.

In response to questions

· Noted the lack of timeframes in the report which made it difficult to see progress despite the large amount of work commenced.

· Staff would add a target completion date to the February report that also included a risk traffic light.

Committee Resolution SFR9/22/9

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Bill Wasley

That the Strategy, Finance and Risk Committee:

(a) Receives the Long-term Plan 2021 – Actions Report.

(b) Notes the progress to date as reported in Attachment 1.

Carried

9.8 Annual Residents' Survey 2021/22

Staff Jolene Nelson, Team Leader: Corporate Planning

Ceilidh Dunphy, Community Relations Manager.

Key points

· The report provided a ‘feeling” of where TCC was at.

· Presented by letter from a sample of the electoral roll and could be completed online.

· Looking for new ways to source views to make sure full information was being gained from the community regarding how they felt about council services. Currently a very long survey that was not fit for purpose or user friendly.

· Staff were exploring other options such as a new customers relationship management system or use of a citizens panel; would be a mix and match approach to information gathering.

· Attitude change would take a long time to reflect in data.

Discussion points raised

· Satisfaction measures were required through the Annual Plan process so reporting would be retained.

· While the report was cumbersome to achieve, it provided a great deal of detail and was insightful.

· Underpinned the commitment made by the Commission to deliver on plans and accountability; showed a slow start to changing perceptions.

Committee Resolution SFR9/22/10

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Annual Residents' Survey 2021/22".

(b) Endorses the staff exploring other options to gain more meaningful insights into community sentiment and satisfaction of council services, including consideration of an online citizen panel and bespoke activity surveys.

Carried

9.9 Growth & Land Use Projects Progress Report - September 2022

Staff Andy Mead, Manager: City & Infrastructure Planning

Alistair Talbot, Team Leader: Structure Planning & Strategic Transport

Key points

· Plan change 33 was notified and covered town centre medium density and applied greater height allowance and tolerance to shading.

· There could be significant cultural and landscape issues and staff expected submissions to be extensive.

· The Western Corridor and Tauriko West had seen significant process with development like the proposed Kainga Ora development.

· Staff would be reporting back later this year regarding Resource Management Act, notification and plan change processes.

· Grant funding for the Tauriko enabling works, transport and water was applied for.

In response to questions

· The committee commended the team for their reporting and would like to see the same level of reporting for upcoming transport projects.

· Emissions reduction would be reported back to the committee once guidance from central government had been received.

· It was envisaged that the same consultant for emissions would be kept for other work to allow consistency.

· Further monitoring and historical data related to Māori land would be reported back to the committee.

· The next update report would provide that data and other information requested, along with sub-regional data on water that would be available at that time.

Committee Resolution SFR9/22/11

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Receives the Growth and Land Use Projects Progress Report – September 2022.

Carried

9.10 Housing Sufficiency and Affordability, Tauranga City

Staff Andy Mead, Manager: City & Infrastructure Planning

Ayv Greenway, Team Leader: Growth Research & Analytics

Key points

· Staff provided a handout that contained the most up to date figures available.

· Background and factors were provided on why the shortage of housing had occurred.

· Noted that there was negative population growth in the Auckland area and yet building houses at pace continued.

In response to questions and discussion

· Reporting underpinned and confirmed issues faced in the city.

· Good to receive the analysis and be able to move forward with more understanding.

· Discussions would be planned on the affordability gap.

· Greenfields development required developers to release land; the committee would like to be made aware of any issues that might be preventing this happening.

· Figures needed to be collected and data provided on how unaffordability affected Māori and the option of papakainga housing. Lack of infrastructure and capital funding were known restrictions; noted a possible lack of alignment coming from central government.

· Needed to be a focus on solutions.

Committee Resolution SFR9/22/12

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

a. Receives the report “Housing Sufficiency and Affordability, Tauranga City”

b. Receives the memorandum titled “Tauranga Land Supply, Update Overview” by Veros (Attachment 1)

c. Receives the report titled “Impact of a housing shortage, An update of effects on Tauranga City” by the NZ Institute of Economic Research (NZIER) (Attachment 2)

d. Notes the estimated shortfall in housing provision in the short to medium term (next 10 years), its potential economic impact, and its potential broad implications for the Council and our community.

e. Notes the urgency of addressing these matters in partnership with the other SmartGrowth Partners and the Government by enabling new residential development capacity in the City and broader Western Bay sub-region as quickly as possible.

Carried

Attachments

1 Updated tables - housing sufficiency

10 Discussion of late items

Nil

11 Public excluded session

Resolution to exclude the public

Committee Resolution SFR9/22/13

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

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

11.1 - Public Excluded Minutes of the Strategy, Finance and Risk Committee meeting held on 1 August 2022

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

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

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

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

s7(2)(d) - The withholding of the information is necessary to avoid prejudice to measures protecting the health or safety of members of the public

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)

s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage

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

11.2 - Cybersecurity Update - 2022 Q1-Q2

s7(2)(c)(ii) - The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest

Carried

12 Closing karakia

Commissioner Shadrach Rolleston closed the meeting with a karakia.

Resolutions transferred into the open section of the meeting after discussion

Nil

The meeting closed at 12.56pm.

The minutes of this meeting were confirmed as a true and correct record at the Strategy, Finance and Risk Committee meeting held on 3 October 2022.

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CHAIRPERSON

Strategy, Finance and Risk Committee Meeting Agenda

3 October 2022

9 Business

9.1 Adoption of Ōtūmoetai Spatial Plan

File Number: A13243198

Author: Corinne Frischknecht, Senior Urban Planner

Authoriser: Christine Jones, General Manager: Strategy, Growth & Governance

Purpose of the Report

1. This report presents the Ōtūmoetai Spatial Plan for adoption.

Recommendations

That the Strategy, Finance and Risk Committee:

(a) Receives the ‘Ōtūmoetai Spatial Plan’ report.

(b) Adopts the Ōtūmoetai Spatial Plan (Attachment 1) to guide development and investment prioritisation in the Ōtūmoetai peninsula.

(c) Delegates the General Manager: Strategy & Growth to approve minor amendments if required prior to publication and/or any changes to ensure alignment and consistency with Plan Change 33 – Enabling Housing Supply.

Executive Summary

2. This report provides an overview of the Ōtūmoetai Spatial Plan (hereafter referred to as ‘the Plan’), with a focus on the context and preparation process. The full Plan is attached as Attachment 1.

3. The Plan covers the area extending west from Chapel Street bridge to Matua and then south to Judea (excluding the Judea Industrial area). It includes the suburbs of: Ōtūmoetai, Matua, Brookfield, Bellevue, Bureta, Cherrywood, Pillans Point and Judea (hereafter collectively referred to as ‘Ōtūmoetai’).

4. Tauranga and the western Bay of Plenty will continue to experience rapid growth. This Plan responds to that opportunity for growth to occur, particularly on the Ōtūmoetai Peninsula. The Ōtūmoetai Peninsula is home to 19% of Tauranga’s population and is well placed to support some of this growth because its central location, proximity to the water, green spaces, and commercial/retail centres make it a great place to live.

5. The plan sets out a vision and framework for how and where growth will occur on the Ōtūmoetai Peninsula between 2022 and 2050. It seeks to facilitate growth in the right places, supported by the right infrastructure. It outlines the key actions we will take with our partners, with a focus on the next 10 years to achieve the identified outcomes and help to improve the health and wellbeing of communities now and into the future.

6. The Plan will support neighbourhoods to become unique, liveable, connected and healthy. These outcomes will be delivered through specific actions, detailed in the plan, that will be implemented Ōtūmoetai wide or within the identified centres (Matua, Bureta, Cherrywood, Brookfield and Huria Marae). These outcomes will improve the liveability of Ōtūmoetai, by supporting an urban form, character, amenity and proximity to other places, to enhance the wellbeing of the people who live, work, play or visit there, now and in the future.

Background

7. SmartGrowth’s Urban Form and Transport Initiative (UFTI, 2020) identifies a ‘connected centres’ approach for the sub-region. This growth strategy identifies Tauranga Central (Ōtūmoetai, Matua, Brookfield, Judea) alongside Te Papa Peninsula, as a critical area to provide for residential growth and intensification within Tauranga central.

8. Preparation of the Plan has included a wide range of inputs and expertise relating to the following areas:

(a) Urban design, public realm and place making, including consideration of culture and identity

(b) Transport planning, transportation and land use integration

(d) Infrastructure planning, including stormwater

(e) Communications and engagement

(f) Other specialised technical inputs, as required.

9. Partnership with mana whenua and targeted engagement with other partners and key stakeholders, such as Waka Kotahi, Bay of Plenty Regional Council, Kainga Ora and Ministry of Education has also been integral to the preparation of the Plan.

Strategic / Statutory Context

10. The Tauranga City Council Strategic Framework provides a framework of strategies and action plans to support the implementation of the vision for Tauranga, and associated Long-term Plan community outcomes.

11. The Plan sits under the ‘Tauranga Tātaitia rā – we are a well-planned city’ community outcome and weaves through aspects of sustainability, te ao Māori, and how we contribute to the region.

12. The Plan supports and implements the Connected Centres Programmes (UFTI), 2020 recognised as the relevant primary strategy. There are links to other action and investment plans adopted and currently under development, such as the Community Centres Action and Investment Plan, and the Nature and Biodiversity Action and Investment Plan.

13. The Plan, including engagement outcomes, has assisted to support the preparation of Proposed Plan Change 33 (PPC33), which will implement the National Policy Statement – Urban Development (NPS-UD). The urban form and areas of intensification developed for Ōtūmoetai has informed PPC33, however the outcomes of the submission and hearings process may result in changes to adopted intensification areas and therefore may require minor updates to the Plan to reflect this.

Preparation of the Ōtūmoetai Spatial plan

14. The Plan seeks to deliver a 30-year blueprint that provides strategic direction for growth of the area, forming the basis for the coordination of decision making within and across multiple agencies in a growth context.  The Plan will create an integrated land use and transport network for the local area that connects with the wider city, supported by public amenities, including a future implementation programme to achieve the intended outcomes.

15. The Plan includes a table of actions and programmes with a focus on delivery of actions over the coming 10 years to achieve the longer-term outcomes sought, which will inform the proposed 2024 Long Term Plan.

16. The Plan is designed for all audiences, from stakeholders and investors to the wider community, to engage with the material and be informed on the action and investment, current and future.

17. The Plan has been developed concurrently and collaboratively with the Accessible Streets project to best align outcomes, such as connecting higher density with transport services. The Accessible Streets project will further explore delivery of some of the actions defined in the Plan.

Partnership

18. The Plan has been developed in partnership with mana whenua. A series of wānanga and hui have been held with invitations to representatives from Ngāti Ranginui, Ngāi Te Rangi, Ngāti Pukenga, Ngāi Tamarāwaho, Ngāti Tapu, Ngāi Tukairangi, Ngāti Hangarau and Tauwhao. A key focus of the mahi and wānanga undertaken throughout the project with mana whenua has been developing cultural principles and a Takiwā and Waahi map to support future projects. Mana whenua input into the process has also assisted to identify specific cultural projects for Ōtūmoetai as well as providing input into the wider outcomes and projects.

19. This process has also resulted in the three pou (guiding pillars), that have been established and included in the Plan to recognise this cultural significance through future growth.

Document structure and content

20. The structure and content of the document is outlined below:

(a) The overview provides information on the extent of the area and purpose of the project.

(b) The Ōtūmoetai three pou (guiding pillars), defined by our mana whenua partners. The three pou, or guiding pillars, defined by our mana whenua partners, are the values we will use to guide development for the Ōtūmoetai Peninsula over the next 30 years and beyond.

(i) Mana Rangatiratanga – This value reflects the importance of tangata whenua in decision making, and encourages us to identify opportunities including governance, management or leadership roles within the whānau and community to sustain Mana Rangatiratanga on the Ōtūmoetai Peninsula.

(ii) Mana Taiao – This value reflects the importance of the natural environment which is regarded as an inherent treasure of great Mana and our role is to care for it with the time given to us, as it is not ours to own, rather a treasure that we must sustain for the generations to come.

(iii) Mana Tangata – This principle identifies the value of people and in order to care for people from a Te Ao Māori perspective we must consider their holistic wellbeing.

(c) The context identifies the background and strategic context to the Plan and the overall approach to enabling growth on the Ōtūmoetai Peninsula

(d) The four strategic outcomes are the goals we will seek to achieve as Ōtūmoetai grows over the short-, medium- and the long-term. Each outcome aligns with the three pou and is supported by key directions that will help achieve it. These are focused on supporting the growth of unique, liveable, connected and healthy neighbourhoods within the Ōtūmoetai Peninsula.

(i) Unique neighbourhoods tell the story of our people, culture and history every day. They create community pride in the areas we live in and contribute to greater community connection between people and places.

(ii) Liveable neighbourhoods allow us to live close to the places that meet our daily needs such as commercial/retail centres.

(iii) Connected neighbourhoods provide options for how we move around and get to where we want to go.

(iv) Healthy neighbourhoods allow us to be active, use the spaces around us and interact with others. Healthy neighbourhoods require a healthy environment that is cared for by everyone.

(e) The key centre plans provide an overview of expectations for local planning and improvement of Brookfield and Huria Marae, Cherrywood, Matua, and Bureta centres, including the key direction and actions we will take to achieve the spatial plan outcomes.

21. The table of actions and programmes of work is appended to the Plan. The table draws together the Ōtūmoetai wide and centre specific actions that we will deliver to achieve the vision for the Ōtūmoetai Peninsula. It also includes detail on specific components of the actions, timing, location, and who we will partner with to deliver on them. The Action plan sets out actions in the form of projects and further planning work required with a focus on the next 10 years years to deliver the spatial plan outcomes.

22. Implementation of the Plan will require contributions from a wide range of partners, organisations and individuals. Some actions have funding and others will be considered as part of other funding processes, such as the Council’s Long-term Plan process. There will also be ongoing consultation and engagement required with mana whenua, stakeholders and the community on project specific basis.

Summary of Actions

23. To achieve unique neighbourhoods we will:

a) Create public spaces people can take pride in that reflect local communities, local character, culture, and history.

b) Work with mana whenua to acknowledge and tell the cultural history of Ōtūmoetai as well as develop arts, culture and heritage spaces.

c) Strengthen our connection to the natural environment and water (harbour and estuary), both visually (from key destinations) and developing pedestrian accessways.

24. The key actions to deliver unique neighbourhood outcomes are outlined on pages 64 to 65 of the Plan.

25. To achieve liveable neighbourhoods we will:

a) Enable a greater range of quality housing types (e.g., townhouses and apartments) to be built within a fifteen-minute walking or cycling journey to our commercial/retail centres in Brookfield, Cherrywood and Bureta through Proposed Plan Change 33.

26. The other key actions to achieve this liveable neighourhoods outcome are outlined on page 66 of the Plan.

27. To achieve connected neighbourhoods we will:

a) Make it easier and safer to walk, cycle and take public transport between Ōtūmoetai neighbourhoods and other important destinations.

b) Create a network of connected off-road paths (e.g., connecting the existing waterfront pathway to the Waikareao estuary), with signage to guide people through the Ōtūmoetai Peninsula and enhance their understanding and experience of the area.

28. Some key actions to deliver the connected neighbourhoods outcome include:

(a) Installation of protected cycle routes, traffic calming, bus priority and bus stop access improvements along key routes through the Accessible Streets programme.

(b) Upgrade of the waterfront pathway (Fergusson Park – Kulim – Harbour Drive) to provide adequate and consistent width for walking and cycling.

(d) Review of the road network at Brookfield Centre and improve the intersection for all modes

(e) Improving bus interchange facilities at Brookfield Centre

(f) Implementing the recommendations from the accessibility audit and undertake improvements so that our transport infrastructure supports movement by all members of our communities of all ages and abilities (see summary of priorities on Page 46 of the Plan)

(g) Transport modelling to assess performance of the transport network based on different levels of mode shift and growth.

29. The other key actions to achieve the connected neighbourhoods outcome are outlined on pages 66 to 71 of the Plan.

30. To achieve healthy neighbourhoods we will:

a) Improve the quality and, in some cases, the quantity, of our parks, reserves, public spaces and community facilities – ensuring these are all safe and accessible to our community.

b) Enhance our blue/green (water and stormwater reserves/parks) network to support multiple uses: including biodiversity, stormwater management, water quality and movement. To align with citywide Biodiversity Action Plan.

c) Enhance and protect the natural environment for future generations including provision of ecological corridors (along existing reserves, gullies, streets and riparian edges).

31. Some key actions to deliver the healthy neighbourhoods outcome include:

(a) Prepare programme of works to undertake upgrades to existing parks and open spaces

(b) Review future of Ōtūmoetai Pool and reflect outcome of review in future long-term plans

(c) Upgrades to improve the placemaking, activation and amenity of the Bureta, Cherrywood, Matua and Brookfield centres to create quality spaces where people want to stay and enjoy.

(d) Work with existing users to develop pedestrian paths around Bureta Park (Ōtūmoetai Golf Course)

(e) Upgrade Fergusson Park to increase safety and accessibility, improve amenity and placemaking

(f) Deliver environmental improvements at Matua Saltmarsh Reserve/Papahenga, along Waikareao Estuary and waterfront pathway for biodiversity and water quality

(g) Develop Carlton Reserve and Bellevue Park, including Sherwood Vale Walkway Reserve behind school with a focus on providing play and activity for a range of ages, and enhancing safety and accessibility of all users

(h) A Brookfield community hub

(i) Upgrade Sydenham Botanic Park, including opportunities to better connect the Botanic Park to the surrounding neighbourhood and rezoning of site from Suburban Residential to Open Space.

(j) Design and implement wayfinding in Ōtūmoetai as part of a broader city strategy for wayfinding and signage that supports movement and includes enhancements to open spaces.

32. The other key actions to achieve the healthy neighbourhoods outcome are outlined on pages 72 to 76 of the Plan.

Financial Considerations

33. The associated table of actions and programmes of work included in the Plan has proposed timeframes and indicative costs. The programme of work includes actions that are funded through the current Long-term Plan, as well as projects where funding is to be confirmed. If there is no committed funding, indicative cost ranges are provided for the actions.

34. Further investigation of project costs and refinement of timing of the action plan will occur in conjunction with the partner lead agencies and internal business activities, as part of the preparation of the 2024 Long-term Plan. Consideration will be given to other city-wide priority areas through this process.

Legal Implications / Risks

35. The implementation of the Plan relies on stakeholders, partnerships with mana whenua and the community, through execution of the projects, delivered by Council, Central Government and/or the private investment sector.

36. Legal implications and risks of individual projects will be identified through the detailed project planning phases, and as the programme of work in the Plan is implemented.

Consultation / Engagement

37. Engagement was undertaken with mana whenua, the community and stakeholders to create a shared vision for Ōtūmoetai and identify opportunities that will support the wellbeing and liveability of existing and future communities. 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.  

Stakeholder

38. Partner and stakeholder engagement included a series of topic-based workshops designed to acknowledge previous work, and to consider the current opportunities and challenges in the Ōtūmoetai Peninsula. The workshops held were on urban form, movement and amenities, followed by a review workshop.

39. The workshops were attended by mana whenua, Waka Kotahi, Bay of Plenty Regional Council, Kāinga Ora, Ministry of Education, key council staff and subject matter experts.

40. There were also a number of follow up workshops with key stakeholder to develop the specific actions and projects required to implement the future vision for Ōtūmoetai.

Community engagement

41. It was recognised that a significant amount of engagement had already been undertaken in this area, including Vital Update, Quality of Life Survey and LTP submissions. As part of the engagement approach for the Plan, a review of existing engagement feedback for relevance and recency was undertaken to inform a gap analysis of community feedback and undertake targeted engagement accordingly. As a result, two round of engagement was undertaken as outlined below.

42. The purpose of the first round of engagement with community and stakeholders (referred to as Stage 1) was to better understand what they liked about the wider Ōtūmoetai area and what they would like to see changed in the future.

43. An online interactive tool (Social Pinpoint) was used to capture feedback either by dropping a pin on the interactive maps, joining in on a discussion on the comment thread, or answering survey questions relating to the following topics:

(a) Commercial / retail – looking at key commercial areas such as Brookfield, Bureta, Cherrywood and Matua

(b) Walkways / cycleways – looking at existing and potential future routes and/or connections

(d) Amenities – looking at existing public amenities and what is missing

(e) Safety – looking at key areas and movement routes where there are safety concerns

44. There were a totally of 1,693 visitors to the page, with 1,028 comments and 270 survey responses. This feedback informed the design workshops undertaken with key stakeholders and internal staff, as well as the draft spatial plan prepared for second round of engagement (Stage 2).

45. The purpose of Stage 2 engagement was to seek feedback from the community and stakeholders on the draft plan. Feedback was sought on a total of 60 projects relating to topics including urban form, movement, community facilities and the natural environment. Similar to Stage 1, Social Pinpoint was used, where respondents were able to share their feedback by liking/disliking and commenting on specific projects, or by taking an online survey.

46. Overall, there were 1,237 visitors to the page, 343 comments on the actions proposed and 58 full survey responses. In addition to specific feedback, people were also able to like or dislike proposed actions – 904 likes and 176 dislikes were received across 60 actions.

47. As part of Stage 2 engagement, workshops with seven geography classes (Years 10 – 13) at Ōtūmoetai College was also undertaken to provide an overview of the project and seek feedback on the identified projects.

48. General feedback we heard was that people like living in Ōtūmoetai, particularly its central location to the City Centre, the water, and also the off-road trails, particularly the waterfront and estuary pathways.

49. A consistent message we heard is the need to ensure accessibility for people of all ages and abilities along our transport network, as well as reserves and public places. There was support for better connected neighbourhoods, both to each other and other centres, and easier and safer options to access work, live, learn, and play opportunities.

50. Transport has been continuously identified as a key issue, with support for safer walking and cycling routes, and improved frequency and efficiency of public transport and associated infrastructure (such as sheltered bus stops). There was also a request for improved public amenities and upgrading of parks to make them more useable and enjoyable, including a greater variety of activities – skate parks, climbing walls, water parks.

51. The environment has also been a consistent theme from community engagement, including climate change responsiveness, protection of environmental values and improving environmental quality – air, land and water.

52. A copy of the engagement report which provides a summary of all engagement activity undertaken to inform the Plan is attached as Attachment 2.

Significance

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

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

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

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

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

ENGAGEMENT

56. Taking into consideration the above assessment, that the decision is of medium significance, that considerable engagement has occurred and been incorporated through the development of the Plan, and that further consultation will occur through future Annual Plan and LTP processes, officers are of the opinion that no further engagement is required prior to Council making a decision.

Next Steps

57. Implementation of many of the Plan’s actions have already commenced, or will commence shortly, and will be supported by the adoption of the Plan. This includes Plan Change 33 (currently notified) and ongoing delivery of the Accessible Streets programme, currently underway in the Plan area.

58. Ongoing implementation of the Plan’s actions will be coordinated and monitored in partnership with other council teams, partners and key stakeholders. A monitoring plan (and associated KPIs) will be prepared alongside broader action plan monitoring frameworks currently under preparation.

59. Partnerships with mana whenua and the community within Ōtūmoetai, will be essential to achieving the vision. We will continue to engage with our partners, key stakeholders and the community on the actions as they are planned, initiated and delivered.

60. Where actions do not have funding allocated, these will be considered through the 2024 – 2034 Long-term Plan planning process, including opportunity for relevant community feedback.

Attachments

1. Ōtūmoetai Spatial Plan - A14018711 (Separate Attachments 1)

2. Summary of Engagement Report - A14018319 (Separate Attachments 1)

Strategy, Finance and Risk Committee Meeting Agenda

3 October 2022

9.2 Transport Emissions Projection Tool

File Number: A13907016

Author: Alistair Talbot, Team Leader: Structure Planning & Strategic Transport

Authoriser: Christine Jones, General Manager: Strategy, Growth & Governance

Purpose of the Report

1. To report the development of a Transport Emissions Projection Tool to the Committee.

Recommendations

That the Strategy, Finance and Risk Committee:

a) Receives the report "Transport Emissions Projection Tool".

Executive Summary

2. A Transport Emissions Projection Tool (TEPT) has been developed to aid the Councils understanding of the potential for specific interventions or levers (e.g. travel demand management; increasing uptake of electric vehicles; improvements to the carbon efficiency of fuel, etc) needed to achieve emissions reduction targets including those in the National Emissions Reduction Plan.

3. Three scenarios are set out in the report which show the scale of impact on vehicle kilometres travelled and emissions from different available levers. These scenarios relate to:

· A travel demand management focus ‘Work from home’

· The Work from home scenario plus ‘mode shift’

· The work from home and mode shift scenario plus ‘vehicle efficiency’.

4. The TEPT provides analysis to support ongoing planning processes like the refresh of the Western Bay of Plenty Transport System Plan (TSP) and the development of the Councils Climate Plan. It also helps to identify pathways to ‘net zero’ and the extent or scale to which an available lever can contribute to the targets. It will also aid ongoing engagement with Government on the transport emissions topic.

5. The following is a summary of observations from three scenarios assessed through the TEPT:

· Investigations undertaken for UFTI identify that the different urban form options that provide for the projected growth have similar increased VKT and emissions impacts to each other.

· Working from home has a very limited impact on VKT and emissions reduction.

· Considerable mode shift is required to achieve the VKT target by 2035 but this has limited impact on projected emissions.

· Improved vehicle technology and fuel efficiency can support a considerable reduction in emissions.

Background

National direction

6. On 16 May 2022, the government published Te hau mārohi ki anamata – Towards a productive, sustainable and inclusive economy: Aotearoa New Zealand's first emissions reduction plan (“the ERP”). This was reported to Council on 13 June 2022.

7. The ERP sets out the actions the government believes need to occur to meet the emissions budgets published in accordance with the Climate Change Response Act, and to contribute to global efforts to limit temperature rise to 1.5 degrees.

8. Transport is a key focus area of the ERP, and the government has identified three focus areas in their approach to reducing transport emissions:

· reduce reliance on cars and support people to walk, cycle and use public transport

· rapidly adopt low-emissions vehicles

· begin work now to decarbonise heavy transport and freight

9. To support these focus areas, the government has set four transport targets:

· Target 1 – Reduce total kilometres travelled by the light fleet by 20 per cent by 2035 through improved urban form and providing better travel options, particularly in our largest cities.

· Target 2 – Increase zero-emissions vehicles to 30 per cent of the light fleet by 2035.

· Target 3 – Reduce emissions from freight transport by 35 per cent by 2035.

· Target 4 – Reduce the emissions intensity of transport fuel by 10 per cent by 2035

10. In late July 2022 the Ministry of Transport engaged on how Target 1 (20% reduce in total vehicle kilometres travelled (VKT) by the light vehicle fleet) was proposed to be applied at a sub-national level in places like Tauranga / Western Bay of Plenty. For Tauranga / Western Bay of Plenty, the MoT proposed a 23% VKT reduction against their 2035 baseline. This reduction equates to a decrease of 1% in light fleet VKT against the MoT 2019 benchmark as in shown in the following image:

11. Feedback was provided to MoT on this proposed target. This aligned with the earlier submission Council made to the draft ERP that included support for the Government’s intent to reduce emissions by cars and light vehicles by 20 per cent by 2035 through providing better travel options. However, it also continued to question whether utilising the yardstick of vehicle kilometres travelled (VKT) is appropriate. The feedback noted that as the percentage of electric vehicles increase over time the VKT’s relevance with respect to emissions decreases. In addition, VKT ignores fuel economy and any potential change to fuel consumption and resulting emissions from changes in speed and congestion. The Council feedback suggested an alternative measure related to Vehicle Minutes Travelled as it would also factor in congestion.

12. In late September the MoT responded to the feedback provided. A summary of the key points of this response are that:

· The timeframe to give feedback on the modelling behind the targets was very tight and did not allow for proper engagement. The Ministry acknowledged this concern and has reconsidered their timeframe for setting the targets. The Minister of Transport has agreed that Cabinet will agree proposed sub-national targets by the end of 2022, with targets to be finalised in early 2023. MoT are now working through how they will undertake this further engagement early next year.

· Tauranga, Christchurch and Hamilton

The MoT have made adjustments to Tauranga, Christchurch and Hamilton sub-national targets, based on feedback received from Tauranga. In the MoTs review of Tauranga’s target, they considered that Tauranga was substantially smaller than both Christchurch and Hamilton. Also, Tauranga had a higher portion of VKT occurring in non-urban areas. On this basis, MoT amended Tauranga’s target from 23% to 21%. To offset this Christchurch and Hamilton’s targets have been slightly increased from 23% to 24%.

13. The MoT timeline for the next stages of this work is shown in the following image:

Bay of Plenty Regional Council: Tauranga Community Carbon Footprint, September 2022

14. In September 2022 Bay of Plenty Regional Council (BoPRC) released the Tauranga Community Carbon Footprint (TCCF). The BoPRC commissioned this report to assist in the development of community-scale greenhouse gas footprints for Tauranga for the 2018/19, 2019/20, and 2020/21 financial years. In undertaking this work, BoPRC also recalculated the 2015/16 financial year greenhouse gas emission footprint.

15. As a brief summary, the TCCF report identifies:

· A broader range of transport emissions sources than those considered by the TEPT. By way of example, the TCCF considers emissions from marine freight, jet kerosene and aviation gas while the TEPT did not consider these emission sources (it focusses on emissions from land transport).

· Transport as the largest source of emissions in Tauranga (refer image from the TCCF, below):

· In Tauranga between 2015/16 and 2020/21 total gross emissions growth (22%) has matched population growth (23%) resulting in a 1% increase in total emissions per capita.

· Of the change in emissions between 2015/16 and 2020/21, transport emissions increased by 33%. This was driven by a 50% increase in marine freight emissions and a 21% increase in on-road fuel emissions.

Sub-regional / local direction

16. The Urban Form & Transport Initiative (UFTI) and the TSP, which preceded the ERP, has established targets for reduced transport emissions.

17. This is focussed on reducing CO2 per person per day and is set out below.

Table 1: UFTI & TSP – Key Performance Indicator: CO2 Emissions

Key Performance Indicator	Source	Baseline	Target (2030)	Target (2050)
Tonnes of harmful emissions emitted per year from transport	TTM Transport Model	7.1kg of CO2 per person per day	5.5kg of CO2 per person per day	2048 2.1kg of CO2 per person per day

18. The development of UFTI involved considering a range of urban form outcomes including VKT and emissions. This work identified that when providing for projected growth all of the urban form options led to increased VKT and CO2 emissions. This is shown in the following Table.

UFTI ‘Short List’ Option	Increase in VKT from SmartGrowth 2048 to agreed Short List longer term outcome	Increase in CO2 from SmartGrowth 2048 to agreed Short List longer term outcome
Connected Urban Villages	33%	22%
Rail Enabled Growth	35%	23%
Two Urban Centres	38%	26%
Dispersed Growth	36%	24%

Note: This Table compares the four Short List options in the 70+ year scenario against the consistent 30 year (2048) SmartGrowth Settlement Pattern.

19. Analysis of the final agreed UFTI “Connected Centres” 2048 programme identified a projected 50% increase in VKT and 58% reduction in emissions in the longer term associated with the projected population increase from 2018. At the time of developing UFTI, which preceded the draft ERP, VKT reduction was not a target / key performance indicator, broader mode shift / share targets were the focus.

20. To achieve the target in Table 1, the TSP identifies the need for a holistic solution to reducing emissions. It highlighted that mode shift (towards public and active transport) is an important contributor to reducing transport emissions but that it needs to be supplemented with other carbon reducing initiatives locally (e.g. good land use planning; flexible remote working) and nationally (e.g. improve the uptake of electric and hydrogen vehicles; improve the carbon efficiency of fuel) in order to meet the national net zero carbon target by 2050.

Transport Emissions Projection Tool

21. To aid the Council’s understanding of the potential for specific interventions or levers (e.g. travel demand management; increasing uptake of electric vehicles; improvements to the carbon efficiency of fuel, etc) needed to achieve emissions reduction targets a TEPT has been developed.

22. The purpose of TEPT is to provide the Council with the ability to forecast transport emissions within the WBoP to 2050 under various scenarios and assist in identifying pathways to 'net zero' including identifying possible avenues to achieve the transport targets in the ERP. It can also be used as way for Council to identify the opportunities that will have the most significance in influencing emissions to achieving the national target.

23. In terms of the TEPT it is noted that:

· The TSP (which assumed the UFTI land use pattern) was adopted as from transport network perspective the modelling is more refined and focussed on the first 30 years rather than the broader and longer term UFTI analysis.

· The ERP baseline is in 2019 while the TSP baseline is 2018. It is considered unlikely that transport emissions between 2018 and 2019 for the sub-region would be significantly different. Therefore, the ERP transport targets have been interpreted as appropriate against a 2018 TEPT baseline.

· The TEPT includes the following variables that can be changed to understand their impact on emissions:

o Working from home – impacts private car and bus vehicle kilometres travelled

o Car occupancy – ability to change the average occupancy of a private car

o Modal shift – ability to change the percentage of people travelling by private car, light commercial vehicle (LCV), bus, bicycle/micro mobility or walking.

o Low carbon vehicles – the fleet make-up; a shift from diesel to electric or hydrogen buses and M/HCVs; a shift from petrol or diesel to hybrid or electric LCVs or cars.

o Biofuel mandate – The ERP has committed to a 10% reduction in fuel carbon intensity (i.e., more biofuel blend) by 2035 from current levels. This is likely to be through a larger percentage of biofuel in forecourt fuel supplies, therefore applies to private cars, LCV and large fleet such as a buses and freight vehicles with internal combustion engines.

o Shift from road to rail – impacts percentage of total kilometres travelled by road or rail freight.

o Freight whole journey calculator – the primary function of the TEPT is to consider movement within WBoP, however this secondary function provides an ability to understand the wider benefits in moving freight from road to rail/sea (i.e. as any shift would occur from the point of origin so there will be VKT and emissions benefits outside of the boundary of the WBoP.

o 2030, 2035 and 2050 editable years

· The variables excluded from the TEPT are:

o Granularity in vehicle types for private car low carbon vehicles (i.e. plug in hybrids, diesel hybrids)

o Visibility of annual emissions (rather 2030; 2035 and 2050 points in time are provided for)

o Project specific variables (a TSP programme approach is taken).

o Average fuel efficiency of vehicles

o A network pricing lever. It is however noted that this can be added to the TEPT and the findings of the ‘proof of concept’ Dynamic Pricing Study’ will provide inputs to add this function.

o Ability to change the core TSP assumptions

· For consistency with the TSP modelling, the MoT Vehicle Emissions Prediction Model (VEPM) version 6.0 is used in the TEPT. As a newer version (v6.3) of the VEPM is now available a sensitivity check was completed between versions 6.0 and 6.3. This noted that the vehicle make-up in 2018, 2030 and 2050 is more or less similar (mainly within +/-3%). The most considerable difference is that version 6.3 anticipated a further 10% uptake in hybrids displacing petrol cars in 2030 than V6.0. The impact of this isn’t in respect to VKT rather it means that the TEPTs overall CO2 emission projection is likely to be slightly higher than it the later version was used (given a lower internal combustion engine make-up of the vehicle fleet).

Strategic / Statutory Context

24. Emissions reduction is a focus of the ERP, UFTI and the TSP. It is also a focus and topic to be addressed in the developing Climate Plan.

25. The TEPT will help to inform actions and responses under established and developing national and local planning processes. In so doing it will contribute to the following ‘Community Outcomes’ in the Councils Long Term Plan 2021-31:

· We have a well-planned City

· We value and protect our environment

· We can move around our City easily

TEPT – Scenario EXAMPLES

26. The following three example scenarios are provided to show the relative impact of various levers and their scale to achieve the VKT and emissions targets. The three scenarios are:

· A travel demand management focus ‘Work from home’

· The Work from home scenario plus ‘mode shift’

· The work from home and mode shift scenario plus vehicle efficiency.

27. In respect to the graphs, it is noted that the:

· Targets for VKT and Emissions are represented by solid and dashed red coloured lines:

(i) In the VKT graphs:

o The solid red line represents the Tauranga Transport Model estimate of a 23%^{^[1]} reduction in VKT and is based on the model estimate of future VKT.

o The dashed red coloured line represents the MOTs estimate of future VKT.

(ii) In the Emissions graphs the solid red line represents the ERP 41% emissions reduction target by 2035.

· 2018 ‘Core Option’ is the base outcome for the land use and transport system in 2018 (this does not change within the tool)

· 2030, 2035, 2050 ‘Do Minimum’ is a scenario with only committed or existing planned transport projects and land use established through the TSP (this does not change within the tool)

· 2030, 2035, 2050 ‘Core Option’ is the TSP programme with planned transport projects (this does not change within the tool)

· 2030, 2035, 2050 ‘Model’ is the variable outcome based on inputs made within the tool.

1. There are therefore two different methods of predicting what VKT will be in a ‘do minimum’ at 2035. The TEPT provides an approach which allows Council to measure responses against the TSP.

Scenario A: Work from home focus

28. The graphs below show the outputs of this scenario. The purple ‘model’ bars show the effect of greater working from home on VKT. Movement below the zero line is offset VKT.

29. In this scenario, working from home increases by an additional 20% of potential in 2030, 50% of potential in 2035 and 75% of potential in 2050 (estimated at around 15% of the workforce beyond those currently WFH)from 2018 levels

30. The key findings of this scenario are:

· With 75% additional WFH in 2050, VKT remains well above the target (represented by the solid red line). The impact of WFH is shown within the circle shape in the first graph.

· There is very limited impact on emissions from WFH over each of the modelled periods (shown by the oval shape for each modelled period on the second graph).

Scenario B: Work from Home Plus Mode Shift

31. In this scenario, the above work from home lever remains and in addition an increase in:

· Vehicle occupancy from an average of 1.225 people per vehicle in 2018 to 1.325 people per vehicle by 2050 is applied.

· Increased mode shift as follows (values show mode share of total VKT) is applied:

Mode	2018	2030	2035	2050
Private Car	81%	68%	58%	42%
Light Commercial Vehicle	16.5%	16%	17%	18%
Bus	1.3%	10%^{^[2]}	15%	20%
Cycle	0.6%	3%²	5%	10%
Walk	0.8%	3%²	5%	10%

32. The following two graphs show:

· VKT is at the target level by 2035 and includes significant reduced private car travel (from 81% in 2018 to 58% in 2035 and a significant increase in public transport kilometres travelled (from 1.3% in 2018 to 15% in 2035).

· Emissions remain above the 41% reduction target.

Scenario C: Scenarios A and B plus freight, fuel and vehicle efficiency

33. In this scenario, the above work from home and mode shift levers remain and in addition:

· Electric and hybrid vehicles increase to 30% of the fleet by 2035^{^[3]}

· The regional bus fleet converts to 100% electric by 2035

· There is a 35% shift of freight from road to rail by 2035 and 50% by 2050

· There is a shift toward electric and hydrogen freight vehicles to make up 35% by 2035 and 55% of the freight fleet by 2050, and

· Biofuels make up 10% of all fuel used as per the Biofuel mandate.

34. In this scenario:

· There is no change to VKT from Scenario B as this scenario does not change kilometres travelled, only the efficiency of vehicles (e.g. internal combustion engine to electric; fuel mandate) is considered

· Emissions remain only slightly above the 41% reduction target, but close enough given the relatively high-level nature of this analysis.

Summary of Observations from Scenarios

35. The table below summarises the options, impacts and ability to influence at the 2035 timepoint:

	2018	Scenario A	Scenario B	Scenario C	Council ability to influence	Government ability to influence
Work From Home (WFH)		√	√	√	Medium	Low
Mode shift (MS)			√	√	High	High
Fuel Efficiency				√	Low	High
Improved vehicle technology (e.g. EV; Hybrid)				√	Low	High
VKT 2035 (millions)	2,200	2,782	2,215	2,215
Emissions 2035	909,000	1,038,000	934,000	564,000
Emissions per capita (tCO2e)*	5.0	4.5	4	2.5
Change emissions per capita 2018 to 2035 (tCO2e)		-0.5	-1.0	-2.5
Change emissions per capita 2018 to 2035 (tCO2e)		-10%	-20%	-50%

* Estimate based on assumed population growth between available forecast years

36. The following is a summary of observations from Scenarios A, B and C:

· Investigations undertaken for UFTI identifies that the different urban form options that provide for the projected growth have similar increased VKT and emissions impacts to each other.

· Working from home has a very limited impact on VKT and emissions reduction.

· Considerable mode shift (e.g. including 15% bus kilometres travelled from a baseline of 1.3% in 2018) is required to achieve the VKT target by 2035 but this has limited impact on projected emissions.

· Improved technology (e.g. electric vehicle uptake; improved fuel efficiency) supports a considerable reduction in emissions (significantly more than working from home and mode shift).

Financial Considerations

37. Budget to support development of the TEPT is included in the approved Annual Plan. Budget to undertake periodic updates (e.g. altered or new data assumptions) or improvements (e.g. new features to test additional levers such as pricing) is also available within the approved Annual Plan.

Legal Implications / Risks

38. This report has no legal implications. The TEPT itself uses base information from a number of sources including the Western Bay of Plenty’s transportation modelling partnership model to test scenarios and identify their projected impact.

Consultation / Engagement

39. As noted in the Background section of this report staff have engaged with representatives of the Western Bay of Plenty Transport System Plan partnership including Waka Kotahi New Zealand Transport Agency, Western Bay of Plenty District Council and Bay of Plenty Regional Council on the development and capability of the TEPT.

Significance

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

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

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

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

42. In accordance with the considerations above, criteria and thresholds in the policy, it is considered that the matter is of low significance, as the report is for information only with no decisions at this point. Decisions will be made through the Climate Action and Investment Plan, and the next Transport System Operation Framework under the TSP.

ENGAGEMENT

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

Next Steps

44. The TEPT provides an important information base to support ongoing planning processes like the refresh of the TSP and the development of the Councils Climate Plan. It can also aid ongoing engagement with Government (e.g. Waka Kotahi) to help articulate the scale of the challenge that Tauranga and the wider western BoP faces in achieving the ERP.

Attachments

Nil

[1] 23% is the MOT target VKT reduction, refer paragraph 9.

[2] For context, the Auckland Council Transport Emissions Reduction Pathway has targets of 3% walk, 13% cycle and 29% PT as a proportion of total km travelled by 2030 (from 1%, 1%, 4% respectively in 2019).

[3] Aligns with ERP target; Assumption in TSP Core Model is 11%


AGENDA Strategy, Finance and Risk Committee Meeting Monday, 3 October 2022
I hereby give notice that a Strategy, Finance and Risk Committee Meeting will be held on:
Date:	Monday, 3 October 2022
Time:	9.30am
Location:	BoP 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