Agenda of Ordinary Council meeting - Monday, 20 March 2023

UNCONFIRMED Ordinary Council meeting Minutes

27 February 2023

MINUTES

Ordinary Council meeting

Monday, 27 February 2023

Order of Business

1 Opening karakia. 3

2 Apologies. 3

3 Public forum.. 3

4 Acceptance of late items. 3

5 Confidential business to be transferred into the open. 3

6 Change to the order of business. 3

7 Confirmation of minutes. 4

7.1 Minutes of the Council meeting held on 7 February 2023. 4

8 Declaration of conflicts of interest 4

9 Deputations, presentations, petitions. 4

9.1 Mohinder Singh on behalf of the Sikh Indian community - Request for installation of covered bus stop at 61 Te Okuroa Drive (Papamoa Gurudwara Sahib). tabled. 4

10 Recommendations from other committees. 4

Nil

11 Business. 4

11.1 Bay Venues User Fees Review and Office Refurbishment 4

11.2 Traffic & Parking Bylaw Amendment 42. 5

11.3 Executive Report 6

11.4 Submission to Local Government Official Information and Meetings Act Amendment Bill 8

11.5 Appointment of Tangata Whenua Representatives to SmartGrowth Leadership Group. 8

11.6 Draft submission on Future for Local Government draft report 9

11.7 2024-2034 Long-term Plan - Significant Forecasting Assumptions. 10

11.8 Existing Use Rights in the Mount Maunganui Industrial Area. 11

11.9 Project delivery update - verbal report 12

12 Discussion of late items. 14

13 Public excluded session. 15

13.1 Public Excluded minutes of the Council meeting held on 7 February 2023. 16

13.2 Tauriko Public Transport Facility. 16

13.3 Exemption from Open Competition - Biosolids refuse disposal 16

11.6 Draft submission on Future for Local Government draft report - Confidential Attachment 2. 16

14 Closing karakia. 17

Resolutions transferred into the open section of the meeting after discussion. 17

MINUTES OF Tauranga City Council

Ordinary Council meeting

HELD AT THE BoP Regional Council Chambers, Regional House, 1 Elizabeth Street, Tauranga

ON Monday, 27 February 2023 AT 9.30am

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

IN ATTENDANCE: Christine Jones (Acting Chief Executive/General Manager: Strategy, Growth & Governance), Paul Davidson (Chief Financial Officer), Nic Johansson (General Manager: Infrastructure), Alastair McNeill (General Manager: Corporate Services), Sarah Omundsen (General Manager: Regulatory and Compliance), Gareth Wallis (General Manager: City Development & Partnerships), Ceilidh Dunphy (Community Relations Manager), Kim Martelli (Resilience Specialist: Natural Hazards and Infrastructure), Margaret Batchelar (Manager: Customer Services), Jeremy Boase (Manager: Strategy & Corporate Planning), Brendan Bisley (Director of Transport), Kelvin Hill (Manager: Water Infrastructure Outcomes), Amanda Davies (Manager: Spaces and Places Project Outcomes), Coral Hair (Manager: Democracy & Governance Services), Robyn Garrett (Team Leader: Governance Services), Sarah Drummond (Governance Advisor), Anahera Dinsdale (Governance Advisor), Janie Storey (Governance Advisor)

1 Opening karakia

Commissioner Shad Rolleston opened the meeting with a karakia.

2 Apologies

Nil

3 Public forum

Nil

4 Acceptance of late items

Nil

5 Confidential business to be transferred into the open

Nil

6 Change to the order of business

Nil

7 Confirmation of minutes

7.1 Minutes of the Council meeting held on 7 February 2023

Resolution CO2/23/1

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the minutes of the Council meeting held on 7 February 2023 be confirmed as a true and correct record.

Carried

8 Declaration of conflicts of interest

Commissioner Rolleston noted that he was involved with Ministry for the Environment reforms which connected into Three Waters and would not speak to that topic in item 11.3.

9 Deputations, presentations, petitions

9.1 Mohinder Singh on behalf of the Sikh Indian community - Request for installation of covered bus stop at 61 Te Okuroa Drive (Papamoa Gurudwara Sahib).

A petition was tabled from the Sikh Indian community requesting:

We request to install covered bus stop for the people of Papamoa, specially kids and senior citizens during rain they face problem. Located 61 Te Okuroa Drive, Papamoa in front of Sikh temple, Sri Guru Granth Sahib ji. There’s no bus stop nearby.

Resolution CO2/23/2

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the petition be received.

Carried

10 Recommendations from other committees

Nil

11 Business

11.1 Bay Venues User Fees Review and Office Refurbishment

Staff Christine Jones, Acting Chief Executive

Paul Davidson, Chief Financial Officer

External Chad Hooker, BVL Chief Executive

Adam Ellmers, BVL General Manager: Finance and Commercial

Key points

· The review had benchmarked user fees against other cities and all fees - except for Baywave - sat well below the benchmark of other areas.

· Increasing fees would have an impact on some sectors of community and needed to be weighed up against the responsibility to get the balance right between user pays and the public good ratepayer perspective.

· BVL considered they had reached a fair and reasonable balance. When considering a dollar term basis per user per visit it was a minor increase and would still sit below the benchmark.

· Office accommodation currently had staff at 10 different locations. Would like to bring the staff together to build good teamwork and a better organisational culture, and to deliver their community outcomes. Funding would be reallocated from the existing Baypark budget.

In response to questions

· In regard to timing of the proposed increases, it was noted that the general admissions fees would be implemented on 1 July 2023, and the regular user groups on 1 January 2024, to enable them time to have their budgets in place.

· Consideration was given to a number of scenarios when setting the recommended fees, noting that the quality of some of the facilities were lower than others.

· It was noted that there was time to reconsider the fee structure to bring the increases more in line with the benchmark and report back to the 20 March 2023 meeting.

Discussion points raised

· Discussion ensued on the balance of user pays fair share versus ratepayer funding, and the need to have sufficient funding to invest in the facilities to improve the level of service provided.

· It was agreed to defer the decision until the 20 March 2023 Council meeting to allow for reconsideration of the fees, and to also consider the Council grant to allow for increased upkeep in some of the facilities. This would also provide transparency to the public.

· There was a need to be mindful that it had been a tough year for many and some people in the area were suffering quite badly.

· Commissioners acknowledged Bay Venues for their good work and for attempting to get the balance right between the community use and service provision.

Resolution CO2/23/3

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the Bay Venues User Fees Review and Office Refurbishment report.

(b) Approves in principle to support the user fees with a view to increasing fees where possible, and requests a further report on the grant for the use of community facilities.

(c) Approves the reallocation of Bay Venues capital budget to fund the support office refurbishment, noting that this project has been approved by the Bay Venues Board and is in alignment with the Baypark Masterplan.

(d) Approves additional rates funding of $186,000 per annum to cover depreciation and interest costs associated with the Baypark office refurbishment.

Carried

11.2 Traffic & Parking Bylaw Amendment 42

Staff Nic Johansson, General Manager: Infrastructure Services

Key points

· The proposed changes were for safety and operational reasons and to enable enforcement.

Resolution CO2/23/4

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the report "Traffic & Parking Bylaw Amendment 42".

(b) Adopts the proposed amendments to the Traffic and Parking Bylaw (2012) Attachments as per Appendix B, relating to minor changes for general safety, operational or amenity purposes, to become effective on or after 28 February 2023 subject to appropriate signs and road markings being implemented.

Carried

11.3 Executive Report

Staff Nic Johansson, General Manager: Infrastructure Services

Paul Davidson, Chief Financial Officer

Christine Jones, General Manager: Strategy, Growth & Governance

Alastair McNeil, General Manager: Corporate Services

Sarah Omundsen, General Manager: Regulatory and Compliance

Gareth Wallis, General Manager: Central City Development

Infrastructure Services

Key points

· The summer holiday waste collection campaign had gone well with no increase noted in the feedback. There had been improved communication prior to the holiday season and increased collections. Further information would be provided in March along with a full analysis.

In response to questions

· Comment would be sought from local litter collector Sue Hodkinson whether she had noticed an improvement in the waste collection.

· The construction period for the Te Maunga transfer station redevelopment was expected to take 18 months once the contract had been let.

· The Corporate Sustainability Plan was expected to be in draft form to Council for consideration in October 2023.

· While the recent rainfall in the city was not extraordinary, the water coming from the ranges down through the streams had caused damage. It was a 1:20 event in the city and 1:100 in the ranges. The rainfall over the summer had completely saturated the area with 400mm falling in January when the norm was 75mm.

Discussion points raised

· Information was requested on whether there was an increase in the patronage of the cycleway along Totara Street on weekends and weekdays before and after the installation of the lights; and a further update in 6 months was requested.

· Key metrics were requested on issues such as congestion over the summer holidays and how well the transport system performed.

· The need to consider a whole catchment view was highlighted with the rain events, which also highlighted the need for the Council to meet with the Western Bay District Council, Bay of Plenty Regional Council and the Crown to focus on a sub-region strategy for the Wairoa River.

Community Services

Discussion points raised

· Higher level of service was noted for the cemeteries as a result of this activity being taken back in house.

· There was a need to ensure that any new facilities provided had maintenance plans so that they remained befitting to the city.

· Commissioner Rolleston noted that he had attended the youth climate change action plan hui at Huria Marae which had 30-40 young people engaged in assisting with the development of a plan. It was refreshing to hear from young people and listen to their perspective and views around climate change.

· It was requested that dual park names be used in future reports.

Strategy, Growth and Governance

Key points

· Submissions were included in the report on the Resource Management Act reform and the Local Government Electoral Legislation Bill seeking retrospective approval.

· The strategic framework and Te Ao Māori approach would be provided to the Strategy, Finance and Risk Committee for endorsement.

Corporate Services

Key points

· The community responded well to the way in which Council reacted to a situation – many people used the Council portal for information during the recent disasters.

· Digital Services had 400,000 customer records and a programme was being carried out to create more accurate records.

· Staff turnover was nearly 16% and consideration would be given to what staff needed in an attempt to get this down to 10%.

Discussion points raised

· Commissioners acknowledged the work done by staff on the recent submissions.

· It was noted that paragraph 82 of the report was confusing and further explanation was needed so the public could easily understand it.

· Staff were asked to be mindful when using internal naming as external users also needed to understand the terminology.

Regulatory and Compliance

Key points

· Staff were prioritising catching up on getting consents out within the timeframes, with this now sitting at 70%.

· The building warrant of fitness programme had been amended by MBIE and staff were working closely with businesses. There was also a reputational risk and Council staff were making it clear to the business owners that it was a MBIE guideline change and advising what was now required.

· The gap in planning staff was being filled by consultants at this stage. There was also work with the metro councils to share resources or do things differently and to bring new planners in and build their skills.

Discussion points raised

· It was noted that building firms needed to be able to get on with building, and it was requested that staff work towards improving the timeframes for consenting.

City Development and Partnerships

Key points

· External fundraising was paying dividends for a number of opportunities within the city.

· TCC were currently advertising for the CCO board for the new Te Manawataki o Te Papa development and the art gallery.

· It had been confirmed that the installation of the railway underpass would be carried out over Easter.

· Willis Bond and LT McGuiness were well in advance for the 90 Devonport Road construction with the blessing taking place on 3 March 2023 when the first spade would be put in the ground.

· Local mana whenua water service projects would be covered within the normal budget.

In response to questions

· A chart noting all of the projects within the CBD and outlining the milestone points for each would be provided to Commissioners.

· Memorial Park and Tunks Reserve - Council would go to market for a design partner within the next two weeks and for a construction partner within three weeks. Key decisions would be made as part of the Long-term Plan (LTP) and staff were currently updating the costings for the programme as envisaged.

· Staff were assessing the seismic issues with the indoor court to decide whether to fix it or rebuild it. The decision would be made as part of the LTP considerations.

Resolution CO2/23/5

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the "Executive Report".

(b) Retrospectively endorses the submissions to the:

(i) Natural and Built Environment Bill and Spatial Planning Bill;

(ii) Inquiry into the 2022 Election; and

(iii) Sale and Supply of Alcohol (Community Participation) Amendment Bill.

Carried

It was noted that Commissioner Rolleston did not vote on this item.

11.4 Submission to Local Government Official Information and Meetings Act Amendment Bill

Staff Margaret Batchelar, Manager: Customer Services

Resolution CO2/23/6

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Approves Attachment 1 – Tauranga City Council’s "Submission to Local Government Official Information and Meetings Act Amendment Bill 2022".

Carried

11.5 Appointment of Tangata Whenua Representatives to SmartGrowth Leadership Group

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

Resolution CO2/23/7

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the report "Appointment of Tangata Whenua Representatives to SmartGrowth Leadership Group".

(b) Accepts the recommendation of Te Rangapū Mana Whenua o Tauranga Moana and confirms the appointment of Whitiora McLeod as a Tangata Whenua Representative to the SmartGrowth Leadership Group.

(c) Accepts the recommendation of Te Kāhui Mana Whenua o Tauranga Moana and confirms the appointment of Riki Nelson as a Tangata Whenua Representative to the SmartGrowth Leadership Group.

(d) Notes that this appointment is also to be confirmed by Western Bay of Plenty District Council and Bay of Plenty Regional Council.

Carried

11.6 Draft submission on Future for Local Government draft report

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

Jeremy Boase, Manager: Strategy & Corporate Planning

Correction - Paragraph 17 final sentence should read:

However, we do not believe that review should be led by central government.

Discussion points raised

· Commissioners had no vested interest as they were not elected members which allowed them to take a more independent view.

· It was disappointing that the current discussion had not taken the opportunity to look at the wider picture of rules and regulations and where Council functions could lie.

· Commissioners agreed with a four-year term and discussions being held with central government to better align local and central government with regards to commitment of funding, terms of appointment and long-term planning.

· It was essential to highlight the need for a special place for metro councils, especially with timeliness, conflict with timing for central government funding and for metro councils to be able to expand. They continually had to work with surrounding territorial authorities whose residents used the metro facilities. There were many smaller town subdivisions that required services to be provided by the metros and these points needed to be recognised in local government reform.

· There was a disconnect with the various reforms taking place which would increase with planning and climate change legislation and would remain highly complex structures and systems. The submission needed to include that these needed to be aligned so that councils could move forward and get on with development.

· Paragraph 108 noted a potential structure for the Bay of Plenty and functions needed to be established first before it focused on the form.

· Include a recommendation capping elected member service to a set number of terms.

· Include a suggestion that a system of split-elections, whereby only half of a council is elected at each election, be investigated.

Resolution CO2/23/8

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report "Draft submission on Future for Local Government draft report".

(b) Approves the draft submission included at Attachment 1 with the following amendments:

(i) Addition of the word ‘not’ to the second sentence of paragraph 17;

(ii) inclusion of a recommendation that the Review Panel should recommend capping elected members’ service to a set number of terms;

(iii) inclusion of a recommendation that, if four-year terms were not approved, a system of split-elections (whereby only half of a council is elected at each election) be investigated

(c) Delegates authority to the General Manager: Strategy, Growth & Governance to make minor drafting, typographical, and presentation amendments as required prior to formally submitting the submission ahead of the 28 February deadline.

(d) Attachment 2 can be transferred into the open when both councils have finalised their submission to the Review Panel.

Carried

11.7 2024-2034 Long-term Plan - Significant Forecasting Assumptions

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

Josh Logan, Team Leader: Corporate Planning

Key points

· The forecast assumptions work was required as part of the LTP.

In response to questions

· A lot of modelling had been done for climate change, stormwater and natural hazards, the upper catchments and impacts and how these were accounted for or accommodated. Considerable work went into planning and taking into consideration the trends and spikes that were then included in the general modelling within the LTP. There was a solid plan for those and the definition of resilience in this context was more about what do with the existing infrastructure.

· Examples included route solutions in the eastern corridor and where to locate wastewater pipes. The more information provided allowed more accurate planning.

· The population table increases and declines were also based around the availability of land. Planning was done with a 30-year lens and constantly monitored. With planning in place development could be pushed forward or pulled back as needed.

· Statements around the wider region and the effect on transport, commercial amenities etc were noted. The SmartGrowth strategy was a good avenue to have subregional conversations. Further information would be provided to the Council in April and to the June SmartGrowth meeting.

Discussion points raised

· Include in the projections the special role that metros played for residents from the surrounding districts with services catered for in the city. Many lived outside the city but worked in the city.

· Noted in the 2018 census that 5,500 people drove into the region for work on a daily basis, so wider needs such as the transport system needed to have a clear indication of what it was servicing so it could be factored into the decision making.

Resolution CO2/23/9

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report “2023-2034 Long-Term Plan – Significant Forecast Assumptions”.

(b) Approves the draft 2023 – 2034 Long-Term Plan Significant Forecasting Assumptions and associated mitigation actions as set out in Attachment 1.

a) Assumption 12 risk to be reworded to “ …. reveal more cost-effective methods of delivering services and desired outcomes which may be preferred”

b) Add an assumption that growth outside of the city boundaries will impact on planning and investment in infrastructure.

c) Add an assumption that legislative change including Resource Management and associated risks of impacts on planning and investment.

d) Review the waters assumption based on announcements by both Labour and National political parties on the nature, extent, and timing of reform.

Carried

11.8 Existing Use Rights in the Mount Maunganui Industrial Area

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

Key points

· The report provided an update on the industrial area at the Mount and the number of workstreams underway for spatial planning, the Mount Industrial study and zoning issues.

· Iwi were wanting changes and staff were working with Whareroa Marae hau kainga, but had not yet come to a formal conclusion.

· Work was also continuing with the Bay of Plenty Regional Council (BOPRC) on the Air Quality Plan change and the Environment Court interim decision.

· Legal advice was attached to the report relating to existing use rights, which noted that those who had built had existing use rights and there was no legal mechanism under the district plan to move those activities. Future activities may have an avenue through BOPRC through a series of tests relating to soil conservation, water, ecosystems, and natural hazards.

· There were opportunities only with future actions or activities within the resource management area.

In response to questions

· Modelling for the area for natural hazards would be a crucial part of the Mount plan.

Discussion points raised

· The Tauranga Moana Advisory Group started the inquiry and part of the process would be to report back to their meeting in June 2023.

· It was important when talking about planning being undertaken for the future to acknowledge that this was a significant port which had much industry associated with it. Discussions should be about emitters/emissions rather than the industry. Businesses were there and had the right to be there and Council did not have the mechanism to change that.

· The report clearly outlined what the situation was, and it was suggested that the report and legal advice be provided to the working group, as it would be helpful for everyone to have the advice and be involved in the discussion of where to go from there. There were 800 businesses employing 12,000 people in that area, so it was a significant area for the city. The emissions related to a relatively small handful of those businesses.

· There was also a perceived impact on the residential community. It was noted that the industry groups had invested heavily to reduce the impact as they were aware of impact and their social licence to operate. Many were well below the consenting emission thresholds and were still seeking to do more and this should be noted.

· It was requested to request a change within SmartGrowth from heavy industry to emitters as there was no proposal to stop industry.

Resolution CO2/23/10

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report "Existing Use Rights in the Mount Maunganui Industrial Area".

(b) Notes the legal advice received, in particular that:

(i) Many industrial activities in the Mount Maunganui Industrial Area have existing use rights.

(ii) Rezoning under the City Plan could potentially constrain future activities but not activities that are protected by existing use rights.

(iii) No feasible legal mechanism open to the Tauranga City Council has been identified to compel existing industry to relocate away from Whareroa Marae.

Carried

At 11.39am the meeting adjourned.

At 11.47am the meeting reconvened.

11.9 Project delivery update - verbal report

Staff Nic Johansson, General Manager: Infrastructure Services

Amanda Davies, Manager: Spaces and Places Project Outcomes

Brendon Bisley, Director of Transport

Kelvin Hill, Manager: Water Infrastructure Outcomes

Gareth Wallis, General Manager: Central City Development

Key points

· Overall projects were where they were expected to be by year end.

· Much of the works were inground which was too silty for much of this summer.

· Inflation was likely to take longer to come down.

· Cyclone cost to the Government were likely to be around $13b, and was likely to have an impact on the local market; some Crown funding was likely to be less than anticipated.

· Risks included resource availability, funding, and cost escalation.

· There was a need to look at the viability of some projects in the LTP.

Transportation

· Funding was available for 150 bus shelters over the next 24 months. One could be installed as requested next to the Sikh Temple at Te Okuroa Drive, Papamoa.

· Much of the project delivery was weather dependent. The initial target of 99% budget had now been reduced to 93%.

· Extra sealing resources had been secured, but the risk was that days were being lost because of the bad weather.

· The main change was the Tauriko West budget for which the forecast had been reduced from $50.7 to $11.4 spend this year. This had been offset by the Cameron Road project being completed sooner.

· Top five projects - there had been a 10-30% cost increase with Stage 1 of Cameron Road which was now likely to be completed in early 2024.

· The Area B cycleway, when completed, would create a circuit in the western part of the city network.

· Risks included funding being tightened heading forward, but the assumption was that it would remain the same until told otherwise.

· Four business cases had been moved out three months and would not be finished until later in the year. Costings were 20-30% higher.

· Waka Kotahi were partners on all the business case projects and they were acutely aware that these were the key to unlocking other areas for growth. They would not delay these four projects as they were aligned with the government’s mode shift and outlook of what they were trying to achieve.

City Waters

· Stormwater issues had kept staff busy behind scenes over the summer, but the systems had coped well.

· The Waiāri water treatment plant would officially open on 22 March 2023 and had cost $200m to build over a 15-year period from start to finish.

· The bioreactor site had included methodology above and below ground with two separate contracts. The area had to be pumped out after each rain event.

· The Waiāri stream had risen five metres at the intake site. This may have been caused by a slip upstream which had temporarily dammed the stream as the water came very quickly. The plant was designed to take a 1:100 event and they were confident the intake had been designed correctly. One of the pumps required some additional protection to be put in place to stop any future silt damage.

· A slight overspend had occurred on renewals, with other projects running to form.

· The weather had an impact, but they were still on track for expenditure with no concerns at this stage.

· The Te Maunga desludging project had increased from an 8-hour workday to a 16-hour day and may still increase to a 24-hour day.

· Risks - some forward work may have up to a 50% increase in cost with the main driver being lack of people resource to carry out the work.

Spaces and Places

· Delivering a lot of community assets such as the park playground, cycleway rides, upgrades in the Historic Village and at Ila Park. Two project teams were fully resourced.

· Budget - bad weather had caused some delays for some of the larger projects like Marine Parade, but they were still on track and confident projects would be completed.

· Risks included cross council project dependency. The skatepark had a working group in place.

Civic Development

· The Dive Crescent carpark was underway and due for completion in April. When this was fully operational the Stand north carpark would be closed and work commenced on that.

· The design for the Strand reserve would be provided to the Council in April.

· Tunks Reserve work was due to start in May 2023 and would be a 164-day work programme.

· The landlords and tenants around Masonic Park would be given an update on the programme in the near future.

· The waterfront playground would be completed as budget allowed. It was hoped that it would be fully completed within budget.

· Risks included the completion of the railway underpass, cost escalation and inflation.

In response to questions

· In response to a query regarding the cost increases, it was noted that the best gauge for costings was the tender box. Currently TCC was in a good position with people lining up for the various panels, and had received a good uptake on what was put to market. Increased visibility of the project work pipeline going forward and the procurement strategy within market had been achieved. Council was continuously rolling out a lot of work and implementing the contemporary procurement practices had helped. Staff were also holding some tough negotiations with contractors when they did not meet expectations.

Discussion points raised

· The Commissioners thanked staff for the update and their efforts and noted that they had seen considerable lift in the capability of the organisation. They were pleased to see that staff were as invested as the commissioners to turn Tauranga into a great place to live and work.

Resolution CO2/23/11

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the report "Project delivery update – verbal report".

Carried

Attachments

1 Presentation - Project Delivery Update - PDF

12 Discussion of late items

Nil

13 Public excluded session

Resolution to exclude the public

Resolution CO2/23/12

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 7 February 2023	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(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 - Tauriko Public Transport Facility	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
13.3 - Exemption from Open Competition - Biosolids refuse disposal	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
11.6 - Draft submission on Future for Local Government draft report - Confidential Attachment 2	s7(2)(c)(i) - 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 to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied	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

At 12.38pm the meeting adjourned.

At 1.31pm the meeting reconvened in public excluded.

14 Closing karakia

Commissioner Shad Rolleston closed the meeting with a karakia.

The meeting closed at 2.00 pm.

The minutes of this meeting were confirmed as a true and correct record at the Ordinary Council meeting held on 20 March 2023.

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

CHAIRPERSON

Ordinary Council meeting Agenda

20 March 2023

11 Business

11.1 Bay Venues' Proposed Draft User Fees and Charges Schedule

File Number: A14466387

Author: Anne Blakeway, Manager: City Partnerships

Authoriser: Paul Davidson, Chief Financial Officer

Purpose of the Report

1. The purpose of this report is to present Bay Venues proposed draft user fees and charges schedule for Council to adopt as a draft for public consultation.

Recommendations

That the Council:

(a) Receives the report "Bay Venues' Proposed Draft User Fees and Charges Schedule".

(b) Adopts Bay Venues proposed draft user fees and charges as set out in Option 1 and Attachment 1, as a draft for public consultation, incorporating any further amendments as directed by Council at this meeting.

(c) Noting that Council staff are currently working with Bay Venues on a wider piece of work around sustainable funding and financing in the longer term, which will come to Council on 29 May.

Executive Summary

2. On 27 February 2023, Bay Venues presented a report to Council recommending increasing user fees across the network of community facilities to align their user fees with national market benchmarks of comparable community facilities in other major cities.

3. Council resolved to “approve in principle to support the user fees, with a view to increasing fees where possible and request a further report on the grant for the use of community facilities.”

4. Following feedback from Council, Bay Venues has come back with a proposal to increase some of the user fee recommendations in accordance with those proposed in Appendix 1, to align more closely with the current user fees of benchmark community facilities around the country. This has resulted in a further revenue increase of $105,000, to a total estimated increase in user fees of $1.1 million per annum.

5. It should be noted that the last significant review of Bay Venues’ user fees for community facilities was undertaken in 2020 and no changes were made, other than normal CPI increases, due to the financial impact of COVID on the community.

6. Bay Venues recommend a one-off upfront adjustment to the benchmark in Year 1 (Option 1). The second option from the 27 February report, which was to spread user fee increases over two years, has been removed.

7. Council also requested that Bay Venues separate the funding request from the user fees recommendation. This will now be presented to Council on 29 May and will include a more transparent view of all Bay Venues funding, including operating subsidy, debt and depreciation funding. This recognises that there may be a funding shortfall in the 2024 financial year and if this is not able to be funded will be rectified as part of this wider review to be implemented in the 2024/34 Long Term Plan.

Background

8. Bay Venues commissioned RSL to review user fees in the funded network against a national benchmark (comprising 7 other New Zealand cities). On average, Bay Venues’ analysis concluded that current user fees are, in nearly all cases, significantly below national benchmark (see detailed table in Attachment 1). Current user fees are between 27% & 90% of the benchmark (excluding Baywave which is slightly ahead of benchmark). Most high use facilities are between 49% and 90% of benchmark.

9. Typical comparisons to the national benchmark are provided in the table below for an example of how fees compare to equivalent facilities (all prices include GST):

	Aquatics	Indoor Courts	Community Halls	Community Centres
	Adult Greerton	Youth/Senior Community Trustpower Arena	Adult Community Bethlehem Hall	Yth/Sen Community XL Room
Bay Venues current user fee	$2.60	$24.90	$19.40	$21.50
Current % of national benchmark	63%	49%	66%	61%
Comparisons with other cities:
Wellington	$3.40	$64.00	$19.00	$30.00
Hamilton	$4.00	$44.00	$35.00	$40.00
Christchurch	$4.50		$15.30	$25.00
Pukekohe	$2.70
Auckland	$5.00 $4.30	$50.00	$26.00 $53.00	$28.80 $40.80
Dunedin		$22.50	$20.00
Lower Hutt		$75.00	$24.00

10. In some areas of the user fees review, Bay Venues identified that the national benchmark did not reflect the standard of the facilities or felt it would significantly impact affordability. Where this is the case, the recommended user fee has been reduced to reflect the standard of the facility and perceived affordability.

Strategic / Statutory Context

11. As a council-controlled organisation (CCO), Bay Venues is required to operate in a financially prudent manner and is intended to produce an operating surplus (after a Council operating subsidy to fund community outcomes).

12. Bay Venues purpose as a whole is to provide a service to the community on behalf of Council rather than to operate a business for profit.

Options Analysis

13. Bay Venues recommend a one-off upfront adjustment to the benchmark in year 1. The second option from the 27 February report, which was to spread user fee increases over two years, has been removed.

RECOMMENDED OPTION

Increase user fees to broadly align more closely with national benchmark in Year 1 (FY24).

14. This will result in a user fee increase of between $0.25 - $2.00 per person in Year 1 (FY24), reverting to a normal CPI increase from year 2 (FY25) onwards.

	Current: User Fee Range	New User Fee Range	Increase range per user
Aquatic Entry Fee (per person, excluding Baywave which is increasing by CPI only)	$1.30 - $5.50	$3.30 - $6.60	$1.30 - $2.00
Squad Swimmer (per person per hour, assuming 4 swimmers per lane, including entry)	$4.83 - $6.53	$5.85 - $7.65	$1.03 - $1.13
Indoor Court User (per person per hour, assuming 16 players per court)	$0.96 - $2.99	$1.83 - $3.73	$0.73 - $1.23
Community Hall User (per person per hour, assuming 20 people per group)	$0.34 - $1.21	$0.81 - $1.65	$0.25 - $0.56
Community Centre User (per person per hour, assuming 20 people per group)	$0.39 - $1.53	$0.78 - $2.63	$0.39 - $1.13

15. Revenue increase through user fee contribution in year 1 (FY24) will be $1.1 million.

Advantages

Disadvantages

· Reduces the operating subsidy burden on TCC and supports a more sustainable “user-pays” model.

· User fees are fair & reasonable, aligned with comparative national benchmark.

· Straightforward to implement. Will bring user fees into line with national benchmark in one step.

· Unlikely to require further significant user fee increases in the short to medium term.

· Will result in “bill shock” at a time of increased cost of living and high inflation.

· Likely to be a negative response from areas of the community impacted by user fee increases.

Other Options

16. A range of other options were considered to address the operating deficit, e.g. increasing fees in the non-funded network and reducing costs. These were found to be not viable without significant impacts on the community outcomes and levels of service expected of Bay Venues. Bay Venues will continue to investigate other options.

Financial Considerations

17. The financial considerations are outlined above and in Attachment 1.

Legal Implications / Risks

18. It has been assumed that no significant decline in demand will result from an increase in Bay Venues user fees, given that most facilities are running at or close to full capacity, and that the proposed increases are relatively low on a per person basis.

Consultation / Engagement

19. Bay Venues’ pricing review will be included, along with Tauranga City Council’s annual review of user fees and charges, in the community consultation undertaken as part of the Annual Plan 2023/24 and Long-term Plan 2024-2034 processes.

Significance

20. 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.

21. 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.

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

ENGAGEMENT

23. Taking into consideration the above assessment, that the decision is of medium significance, officers are of the opinion that consultation is required under the Local Government Act (2002). This will take place along with TCC’s annual user fees and charges review as part of the Annual Plan 2023/24 community consultation process.

Click here to view the TCC Significance and Engagement Policy

Next Steps

24. If the pricing review proposal is approved by Council, this will be included in TCC’s annual user fees and charges review as part of the Annual Plan 2023/24 community consultation process.

25. Subject to the outcome of community consultation, Bay Venues will increase user fees in the financial year 2023/24 to broadly align with the national benchmark.

Attachments

1. Bay Venues Proposed User Fees and Charges Schedule - A14466389 ⇩

Ordinary Council meeting Agenda

20 March 2023

11.2 Tauranga Art Gallery - approval of funding arrangements for new entranceway onto Masonic Park

File Number: A14431330

Author: Anne Blakeway, Manager: City Partnerships

Authoriser: Gareth Wallis, General Manager: City Development & Partnerships

Purpose of the Report

1. The purpose of this report is to present the Warren and Mahoney feasibility report, and the updated cost estimates, for the new Tauranga Art Gallery entranceway as part of the Masonic Park development project, for approval and to enable works to proceed to developed and detailed design.

Recommendations

That the Council:

(a) Receives the report "Tauranga Art Gallery - approval of funding arrangements for new entranceway onto Masonic Park".

(b) Notes that, following a feasibility report prepared by architects Warren and Mahoney, the full cost of requirements needed to deliver on the project objectives has been identified at a total cost of $3.38 million.

(c) Approves the $1.88 million balance of funds needed to create a total project budget of $3.38 million, to be phased over the next two financial years, noting that this will not have an impact on rates because:

- $250,000 will be funded through a private benevolent fund donation;

- $754,000 will come from already approved Tauranga Airport Reserves; and

- $876,000 will be funded through corporate sponsorship and/or other external funding sources, with details to be confirmed once formal agreements are in place.

(d) Notes that these cost estimates will be further refined through the developed and detailed design phases, and will be reported back to the Public Realm and Waterfront Steering Group Committee, and the Te Manawataki o Te Papa Governance Group.

Executive Summary

2. Council adopted the Te Manawataki o Te Papa preliminary design and cost report on 12 December 2022.

3. This report presents an update on the proposed new Art Gallery entranceway onto Masonic Park, including a high-level feasibility study (provided at Attachment 1), and finalised cost estimates (provided at Attachment 2).

4. An initial placeholder budget of $1.5 million was included in the Long-term Plan Amendment (2022) for external works associated with the relocation of the Art Gallery entranceway.

5. The results of the attached feasibility report, prepared by architects Warren and Mahoney, means that the costs associated with the internal changes and fitout needed for the project have now been identified and can be included in the overall project budget.

6. The projected cost is therefore expected to total $3.38 million, $1.88 million above the original placeholder budget of $1.5 million included in the Long-term Plan Amendment (2022).

7. It is important to note that included in this estimate is a 15% project contingency sum of $441,000, and escalation costs of $442,000. However, if the work is completed in 2023/24, escalation costs will reduce to $150,000.

8. The cost estimates will be further refined through the developed and detailed design process and will be reported back to the Public Realm and Waterfront Steering Group Committee, and the Te Manawataki o Te Papa Governance Group.

9. The $3.38 million costs will be funded by the following means:

- $1.5 million already committed in the Long-term Plan Amendment (2022)

- $250,000 will be funded through a private benevolent fund donation;

- $754,000 will come from already approved Tauranga Airport Reserves; and

- $876,000 will be funded through corporate sponsorship and/or other external funding sources, with details to be confirmed once formal agreements are in place.

10. This project is scheduled to be delivered by July 2024.

Background

11. Warren and Mahoney have been engaged to assist in the development of two workstreams at Tauranga Art Gallery as part of the Te Manawataki o Te Papa civic precinct development programme.

12. They have proposed a two-stage process to allow rapid iteration of options and sign-off of a preferred design direction under Stage One, and subsequent development of this option into a concept design as Stage Two. Further details of this approach are provided at Attachment 1 – Tauranga Art Gallery Feasibility Report.

13. Stage One includes re-orientating the Gallery entrance, which will increase the prominence and visibility of the main entry, while also improving connectivity to Masonic Park and the rest of Te Manawataki o Te Papa precinct.

14. The addition of ‘jewel box’ pop outs will expand the Gallery footprint to the property boundaries, while also providing an opportunity for a potential café and retail offering.

15. The feasibility report also proposes changes to the existing internal feature stairway, to further open up the main atrium space, increasing flexibility, spaciousness, and exhibition wall space.

16. In parallel with this piece of work, Warren and Mahoney considered future development options to ensure that the Stage One piece of work does not prejudice or restrict development of the Art Gallery in the future.

17. Stage Two works will commence on formal signoff of the preferred development option.

Strategic / Statutory Context

18. Our community has told us loud and clear that they want a vibrant, well-planned city centre that is inclusive, accessible, and diverse, with more activities and events for all to enjoy.

19. The Tauranga Moana Waterfront Plan, adopted by Council on 5 September 2022, provides a comprehensive conceptual layout to guide future development along the city centre’s waterfront from Dive Crescent to Tunks Reserve, including Masonic Park. The overall purpose of the Waterfront Plan is to reconnect and amplify the city centre’s connection to the harbour through the transformation of the waterfront into a premier recreational destination.

20. Te Manawataki o Te Papa has clear alignment with the city and Council’s strategic direction, from the aspirational community vision to Council’s action and investment plans.

21. One of six strategic priorities for Council is to drive delivery of the City Centre Masterplan – Te Manawataki o Te Papa, the broader City Centre Action and Investment Plan, and the Te Papa Peninsula Spatial Plan to revitalise and reactivate the heart of the city.

22. Te Manawataki o Te Papa clearly seeks to establish Tauranga’s city centre as the commercial, civic and cultural heart of the Western Bay of Plenty sub region – the cultural and community focus of the city centre, and a unique civic destination for the stories and decision making of Tauranga and its people.

23. As Tauranga continues to grow, our city centre will continue to transform from a commercial business centre into a sub-regional destination, providing a wide range of activities and facilities that support our economy, strengthen our community, and celebrate who we are.

Options Analysis

Option 1 – Council approves a total project budget of $3.38 million for the Tauranga Art Gallery Masonic Park entrance re-realignment project – RECOMMENDED

24. Noting that $1.5 million was previously approved as a placeholder budget in the Long-term Plan Amendment (2022).

25. Noting that the $1.88 million balance of funds required will not have an impact on rates, but will be funded by other sources:

- $250,000 will be funded through a private benevolent fund donation;

- $754,000 will come from already approved Tauranga Airport Reserves; and

- $876,000 will be funded through corporate sponsorship and/or other external funding sources, with details to be confirmed once formal agreements are in place.

Advantages

Disadvantages

· Improved functionality of design, as per recommendations from Warren and Mahoney, and feedback from Tauranga Art Gallery.

· Increased prominence and visibility of the Art Gallery main entrance, whilst also improving connectivity to Masonic Park and the rest of Te Manawataki o Te Papa precinct.

· Expands the Art Gallery footprint to the property boundaries, while also providing an opportunity for a potential café and retail offering.

· The project can proceed at pace, with Council making progress towards delivering on the broad community benefits of the Te Manawataki o Te Papa programme.

· Additional costs will not have an impact on rates.

· Will cause disruption to the short-term Art Gallery operations, in particular to the education programme.

Option 2 – Council does not approve a total project budget of $3.38 million for the Tauranga Art Gallery Masonic Park entrance re-realignment project. – NOT RECOMMENDED

26. This will mean that the total budget remains at the $1.5 million, for external work associated with the relocation of the Art Gallery entranceway only.

Advantages

Disadvantages

· Limits further expenditure on this particular project, which may present an opportunity cost for the external funding from the corporate sponsor to be utilised elsewhere.

· Will still cause significant disruption to Art Gallery operations, in particular to the education programme.

· Decreased functionality of design, not incorporating recommendations from Warren and Mahoney, or feedback from the Art Gallery.

· Lack of alignment with the Tauranga Moana Waterfront Plan, and the City Centre Action and Investment Plan (2022).

· Decreased prominence and visibility of the main entry, with no opportunity to expand the Art Gallery footprint, or realise increased opportunities for a café and retail offering.

· Council will make less progress towards delivering on the broad community benefits of the Te Manawataki o Te Papa programme.

Financial Considerations

27. Attachment 2 outlines the project costs for key elements of the development, as outlined in the Tauranga Art Gallery Feasibility Report.

Location		Total cost NZD
Masonic Park corner		$1,072,000
Wharf Street corner		$456,000
Stairway upgrade		$33,000
Internal works		$85,000
Front of house staircase		$139,000
Estimated net cost		$1,785,000
Margins and adjustments
Design development risk	7.5%	$134,000
Professional fees and consents	19%	$365,000
Client direct costs	5%	$114,000
FF&E, AV and ICT		$100,000
Escalation for three years	17.7%	$442,000
Project contingency	15%	$441,000
Estimated total cost		$3,381,000

Legal Implications / Risks

28. The projects that make up this overall programme of work include conservative assumptions regarding the level of project contingencies and cost escalation. However, there is always a risk that significant unplanned events may have an impact on overall and eventual project costs.

29. Included in the estimate from Rider, Levett and Bucknall, is a 15% project contingency sum of $441,000, and escalation costs of $442,000. However, if the work is completed in FY2023/24, the escalation cost allowance will reduce to $150,000.

30. The additional $1.88 million of costs, over and above the original placeholder budget of $1.5 million, are expected to be fully funded through external funding, which may be at risk if the funders decide not to contribute towards this project.

Significance

31. 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.

32. 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; and

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

ENGAGEMENT

34. The proposal to implement Te Manawataki o Te Papa required an amendment to the Council’s Long-term Plan 2021-31 under section 93(5) of the Local Government Act 2002. As such, a full consultation process was undertaken between 25 March to 26 April 2022.

35. Taking into consideration the above information, if Council approves Option 1, further community consultation is assessed as not being required at this stage of the project.

Click here to view the TCC Significance and Engagement Policy

Next Steps

36. The cost estimates will be further refined through the developed and detailed design phases, and will be reported back to the Public Realm and Waterfront Steering Group Committee, and the Te Manawataki o Te Papa Governance Group.

37. This project is due to be delivered, in conjunction with the Masonic Park development, by mid-2024.

Attachments

1. Tauranga Art Gallery - Feasibility Report - A14434870 (Separate Attachments 1)

2. Tauranga Art Gallery Estimates - Baseline Scheme - A14434874 ⇩

Ordinary Council meeting Agenda

20 March 2023

11.3 Three Waters Reform - Council Submission on Water Services Legislation Bill and Water Services Economic Efficiency and Consumer Protection Bill

File Number: A14445448

Author: Diane Bussey, Contractor - Three Water Reforms

Authoriser: Nic Johansson, General Manager: Infrastructure

Purpose of the Report

1. To present Tauranga City Council’s submission document made to the Water Services Legislation Bill (WSL) and Water Services Economic Efficiency and Consumer Protection Bill (WSEECP).

Recommendations

That the Council:

(a) Receives the report "Three Waters Reform - Council Submission on Water Services Legislation Bill and Water Services Economic Efficiency and Consumer Protection Bill".

(b) Notes the submission made to Government in relation to the Water Services Legislation Bill and Water Services Economic Efficiency and Consumer Protection Bill as attached.

Background

2. The first piece of legislation related to Three Waters Reform, the Water Services Entities Bill, was enacted on 14 December 2022. Two further bills had their first reading on 14 December 2022, being the Water Services Legislation (WSL) bill and the Water Services Economic Efficiency and Consumer Protection (WSEECP) bill. This suite of legislation provides the basis for Three Waters Reform.

3. The WSL Bill amends the Water Services Entities Act, and other related Acts and outlines the functions, powers, obligations, and oversight arrangements of the water services entities.

4. The WSEECP Bill establishes an economic regulation and consumer protection regime for the three waters sector and appoints the Commerce Commission as the regulator.

5. Submissions were open for a short period, with a deadline of 17 February 2023. Tauranga City Council (TCC) was successful in applying for a one-week extension, moving the submission deadline to 24 February 2023.

6. TCC and Te Rangapū Mana Whenua o Tauranga Moana completed a joint submission for the WSL bill, and TCC completed a submission for the WSEECP bill, which were both submitted on 24 February 2023. These submissions are attached.

7. Both submissions advocate for Tauranga and its communities, the protection of its interests, established accountability to local government, iwi / hapū, residents, and to reflect on the key concerns consistently raised with Central Government since September 2021.

Key Issues – Water Services Legislation Bill

8. The following key issues are noted within the joint submission on the Water Services Legislation Bill, the full detail of which can be found in the attached documentation:-

9. Governance Arrangements: TCC position is that the Bill amends the governance arrangements set out in the Act to establish the new entities as statutory bodies in the ownership of local authorities with the initial shareholding based on the value of the net assets transferred (water asset values less associated debt). The shareholding would then be adjusted over time by increasing by area for each 10,000 additional population. This would ensure that the initial asset value and future growth are reflected in the shareholding of each area, thereby addressing the principal concerns about expropriation of assets raised by communities across the nation, whilst allowing for the scale of consolidation and efficiency for the Water Services Entity (WSE) to provide for water services.

10. Growth and Development: Our community needs assurance that three waters investment will be available to cater for the service growth required by new housing development, intensification within the city’s existing footprint and redevelopment of the inner city. This investment needs to align with the respective agreed requirements of the relevant spatial / resource management plans that are in place. The Bill provides for the WSE to be plan ‘takers’ rather than plan ‘makers’, however there are further provisions within the Bill requiring the WSE to develop stormwater management plans and other operational plans. Council is required to promote the social, economic, environmental, and cultural wellbeing of our communities both now and into the future. A WSE is required to pursue statutory objectives which may not always align with TCC’s objectives, either in substance or timing. It is unclear how any misalignment will be addressed, with the only possible action to escalate to the Regional Representative Group. TCC’s position is that further clarity be provided on how potential misalignment of planning between Councils and WSE will be managed. Without such alignment there is a high risk of investment not occurring when required and severely impacting on the ability of TCC to facilitate the provision of land for growth and development. The requirements for gaining consent from all landowners in relation to new works on Māori land with more than 10 owners are onerous and likely to place significant practical impediments to timeframes and costs for new developments. In addition, if an owner does not consent, or does nothing at all, or imposes unreasonable conditions the onus is on the Water Services Entity to obtain “approval” from the District Court. This will mean increased delay and cost, negatively impacting on the speed and efficiency in delivering water services infrastructure.

11. Workforce: TCC have in excess of 270 staff that will be impacted by the reforms, whose skills and talents are highly valued. As a good employer, TCC will support all affected staff through the transition process and support the provision of The Staff Room portal and Staff Transition Guidelines as tools in the transition process. Transition support funding has been utilised to provide staff transition support. TCC intends to continue to invest in our staff and enable a smooth transition process.

12. Protection of Mana Whenua (Hapū, iwi) Interests and Concerns: In summary these concerns are:

a) Undermining of iwi and hapū rights and interests in water.

b) Upholding Tiriti o Waitangi settlements.

c) Partnering and engaging with mana whenua.

d) Te Mana o te Wai statement for water services.

13. Communications and Engagement: The intent of these reforms has been poorly communicated by Government, such that the general level of community and mana whenua understanding around key aspects of the reforms is lacking and local government has been placed in the difficult position of trying to keep our communities and mana whenua informed about a process we are not leading and do not have full information about. TCC’s position is that communicating quality and easily understood information on Three Waters reform with our communities, including the expected benefits, impacts and timelines is the role of Government and is urgently required to support the next stages of reform.

14. Transition Timeline Viability: The WSL Bill outlines several areas where the WSE can require Councils to continue to provide services such as ‘pass through billing’ and stormwater charging on behalf of the WSE. This ‘soft launch’ approach adds significant complexity, uncertainty, and cost for Councils, with potential confusion for our customers. TCC’s position is that from Day 1 the WSEs should provide all water related services, directly to their customers. This would smooth the transition process for those most impacted and remove the requirement for further transition activities in the coming years. The transfer of stormwater assets, debt and services requires an extended timeframe to fully resolve the complexities and provide a smooth transition. It is our position that the transition timeline needs to ensure that from Day 1 the WSE provides all water related services, without residual service provision from councils, and that the transition timeline for stormwater is extended.

15. Stormwater Infrastructure and Service Provision: There is uncertainty regarding the residual stormwater services functions that council will be expected to provide post reform and the powers to undertake those services require reinstatement, including development contributions, bylaws, and ability to construct works on private land. The definition of the interface between the WSE stormwater network and council’s transport stormwater system is not clear, providing challenges of determining stormwater infrastructure to transfer to the WSE and infrastructure that will be retained by council. Our position is that further clarity and detail is required regarding stormwater infrastructure and service provision to provide confidence in ensuring a cohesive, effective, and efficient stormwater service is provided to our community.

16. Transfer of Asset and Debt Arrangements: To date, the approach in relation to the transfer of assets and debt arrangements has yet to be finalised. This is a function of the National Transition Unit, but we would like to highlight that this is still an area of concern for staff.

17. Government Funding Package Adequacy: To date, there is no confirmed approach to the establishment of ‘No worse off’ funding, definition of stranded costs or transition support funding post June 2023.

Key Issue – Water Services Economic Efficiency and Consumer Protection Bill

18. The following key issue is noted within the submission on the Water Services Economic Efficiency and Consumer Protection Bill, the full detail of which can be found in the attached documentation:-

19. Drivers of water quality: It is TCC’s position that the Bill does not adequately acknowledge the nature of water infrastructure services. Consumer demands are not the only driver of water quality. Health, climate change, and other broader drivers such as Taumata Arowai and Regional Councils also need to be considered. The purpose needs to focus on providing a level of service to consumers at an efficient cost model.

TAURANGA CITY COUNCIL’S SUBMISSION Process

20. A full review and analysis of the legislation was completed by Simpson Grierson, on behalf of all Councils within Water Services Entity B. This review provided a generic clause by clause analysis of both bills and was the basis for the detailed sections within the submissions.

21. TCC staff completed draft submissions, ensuring an update of the key concerns raised by the community in September 2021 was included.

22. Presentations and workshops were provided by Taituarā, Local Government New Zealand and Water NZ, which TCC staff attended and contributed to.

23. The draft submissions were made available for relevant TCC staff to review and provide feedback. Revisions were completed as a result of the staff feedback.

24. Due to the timeframe available, a public consultation process was not completed.

25. Commissioner briefings were held on 9 and 13 February 2023, with Simpson Grierson presenting on the WSL bill. Further revisions were made as a result.

26. A Te Rangapū working group was established to review the WSL bill and review the draft WSL bill submission. Feedback and additional content were provided and incorporated into the joint WSL submission.

27. Final submissions (attached) were co-signed by the Commission Chair and Chair of Te Rangapū, prior to submission on 24 February 2023.

28. Links to the final submissions have been made available on TCC website and TCC intranet ‘Insider’.

29. An oral presentation of TCC’s submissions will be made to the Finance and Expenditure Select Committee, on 6 March 2023.

Attachments

1. Council - 20 March 2023 - Tauranga City Council Joint Submission on Water Services Legislation Bill - A14446023 ⇩

2. Council - 20 March 2023 - Tauranga City Council Submission on Water Services Economic Efficiency and Consumer Protection Bill - A14446027 ⇩

Ordinary Council meeting Agenda

20 March 2023

11.4 Lime e-scooter trial completion

File Number: A14360410

Author: Andy Vuong, Programme Manager - Cycle Plan Implementation

Authoriser: Nic Johansson, General Manager: Infrastructure

Purpose of the Report

1. Conclude the Lime e-scooter trial and determine next steps for shared e-scooters

Recommendations

That the Council:

(a) Receives the report "Lime e-scooter trial completion".

(b) Concludes the Lime e-scooter trial.

(d) Commences process to select post-trial vendor and endorse single operator limit.

Executive Summary

2. Testing new modes of sustainable transportation is essential to providing alternative transport choices that reduce private car usage and the level of transport investment required to manage future growth.

(a) Even if financial considerations were not a concern, Tauranga lacks the space to expand and build new roads without significant impacts to private landowners and the environment.

(b) We will not be able to build our way out of our congestion issues but need to change our behaviours to travel more efficient and sustainably.

3. E-micromobility, which emerged in 2018, is one such mode that has grown exponentially in use globally and could improve the number of transport choices for people in Tauranga.

4. Council started a trial of shared e-scooters in November 2020 and has completed its evaluation.

(a) The recommendation is that shared e-scooters be allowed to operate as an on-going activity consistent with the current trial operating framework.

5. Key insights and feedback observed from the trial include:

(a) Demand for scooters was stronger than expected and has remained steady year over year

(i) 104,000 people have taken at least one ride

(ii) 429,000 trips totalling 710,000 kms travelled

(iii) 11% growth in trips from 2021 to 2022

(iv) Ridership is highest in the Mount Maunganui beach and business precinct followed by the Tauranga CBD

(b) Accidents or injuries reported to Council were considered low – with less than 10 reported over the duration of the trial.

(i) An analysis of ACC data for the first 14 months of the trial showed an initial spike in reported claims but a gradual decline after the initial 4 months. This trend was consistent with observations from other NZ cities launching e-scooter trials.

(c) Opposition to e-scooters was immediate and passionate at the beginning of the trial but complaints quickly waned and has remained low during year 2

(i) 10-20 complaints per week during the first 2 months

(ii) 1-2 complaints per week by 6 months and remaining at that level over 2022

(d) Formal consultation was conducted in late 2021 after scooters had been operating for 12 months. The main highlights of the results were:

(i) 779 people responding to the online survey

(ii) 56% of respondents agreed vs 34% disagreed that shared e-scooters have improved transport choices and made it easier to travel around Tauranga

(iii) 55% of respondents agreed vs 42% disagreed that a shared e-scooter scheme should be allowed to continue to operate in Tauranga

(iv) Scooters parked inappropriately or blocking footpaths was the most frequent issue/concern, with 50% being moderately or very concerned

Background

6. In November 2020, Council began a shared e-scooter trial with Lime NZ. The goals of the trial were to understand the demand and impacts of this emerging transport mode, and how it can contribute to providing more sustainable transport choices besides cars.

7. The trial included a set of operating restrictions designed to reduce potential impacts to the community:

(a) Hours of operations

(i) 5AM – 10PM

(b) Slower speed zones

(i) A maximum speed of 15 km/h in high pedestrian zones

(ii) Mount Maunganui recreation/business precinct, Tauranga CBD, Greerton business precinct

(i) Areas where e-scooters could not be deployed, or users were not allowed to end trips.

8. After the initial planned 12-month duration, the trial was extended to collect more data, allow the roll out of an updated e-scooter model, and observe more typical BAU operations for both Council and the operator.

Trial Observations - Ridership

9. Council has been utilising an online software platform from Ride Report to collect and visualise trip data to analyse ridership information. A sample of the types of insights observed include:

(a) How long do people typically rent an e-scooter for?

(i) 32% are 5 minutes or less, 27% are between 5–10 minutes, 23% between 10–20 minutes, and 18% are over 20 minutes.

(b)

How far do people typically ride per trip/rental?48% are less than 1km, 35% are between 1-3 km, 10% are between 3-5 km, and 7% are over 5km

(i) Trips are more common on weekends then weekdays, with Saturdays the most popular day. Trips are most common between the 12pm – 8pm

(d) Where do people ride shared e-scooters the most?

(i) Scooters are ridden the most within the Mount Maunganui waterfront and business areas followed by the Tauranga waterfront and city centre.

(ii) Scooters are most likely to be ridden on footpaths or shared paths as opposed to the on the road.

(e) Where do most trips that end in the vicinity of Wharf St in the Tauranga CBD start their trip?

TRIAL Observations - INJury / ACCIDENT ANalysis

10. Reports of injuries or accidents were generally uncommon, with Council directly receiving less than 10 reports of incidents over the duration of the trial.

11. An analysis of ACC “e-scooter” claims was also conducted to identify potential “hidden” accidents not reported to Council.

(a) The dataset was 2 years in duration which provided monthly claim data for the 10 months leading up to the start of the trial and the 14 months after.

(b) The data presented was for “all e-scooter ACC claims” per month and did not break out new vs active claims or specify whether the claim was attributed to a privately owned or shared e-scooter. Per ACC’s website on how use their claims data:

(i) New claims are based on the date the claim was lodged with ACC. The claim has one lodgement date, irrespective of outcomes, decisions, or severity, and is counted as ‘new’ once.

(ii) Active claims are identified each time a claim has received a payment. For example, a payment to a client for weekly compensation or a health practitioner for a service provided to a client.

(iii) Active claims are normally higher than new claims. This is because one claim may receive several payments over time and could be active over several years.

(d) The key insights from the analysis of the e-scooter ACC data were:

(i) Prior to the introduction of shared e-scooters, there was an average of 3.3 active “e-scooter” claims per month in 2020.

(ii) Active “e-scooter” claims per month rose to 19.25 in the first four months of the trial but dropped to an average of 7.4 over the next 8 months.

(iii) Assuming the rate of privately-owned e-scooter claims remained steady (pre-trial average), and all claims were attributed as new ones, the average number of trips per ACC claim would be approximately 2600.

(1) Based on the definition of new vs active claims, it is more likely that the number of trips per new ACC claim is much higher

(iv) In relation to similar modes of travel/recreation, e-scooter claims are still relatively low

TRIAL OBSERVATIONS - Community Feedback

12. In October 2021, Council conducted a survey to obtain feedback from the community on concerns they may have with shared e-scooters, and if they wanted to have shared e-scooters continue to operate in Tauranga.

13. There was a strong response from all parts of the city and age demographics with 779 providing a response/submission. A detailed breakout of the survey responses is provided in Appendix A. The key highlights were:

(a) 56% of respondents agreed vs 34% disagreed that shared e-scooters have improved transport choices and made it easier to travel around Tauranga

(b) 55% of respondents agreed vs 42% disagreed that a shared e-scooter scheme should be allowed to continue to operate in Tauranga

(c) Scooters parked inappropriately or blocking footpaths was the most frequent issue/concern, with 50% being moderately or very concerned

14. Additional community feedback was received throughout the trial via traditional channels such as Council’s call centre or via email through Council’s homepage.

(a) About 250 comments/complaints were received over the two-year period with a large spike immediately following the start of the trial.

(i) 10-20 complaints per week during the first 2 months

(ii) 1-2 complaints per week by 6 months

(iii) 0-1 complaints per week during 2022

(b) The overwhelming majority of these comments were related to scooters parked inappropriately or too close to private property boundaries.

(c) The next most common concerns were related to potential risk to riders or those members of the community who used mobility devices or were disabled.

TRIAL Conclusions and Recommendation

15. Based on the trial outcomes, Council is recommending that shared e-scooters be allowed to continue to operate in a manner consistent with the restrictions set forth in the operating framework – including limiting the number of operators to one.

(a) There is clear demand for this type of transport device/service. Like public transport and bikes, e-scooters provides an additional transport choice besides cars – helping take pressure off our roads and reducing demand for car parking

(b) Limiting the number of operators provides three main benefits:

(i) Reduces the overhead for Council in managing multiple vendors

(ii) Provides a single and consistent point of contact for the community when renting scooters or dealing with issues and complaints

(iii) Produces a financially viable environment for an operator, leading to more opportunities to invest in initiatives that support Council’s wider goals

16. Council recognises that while there is strong demand and support for shared e-scooters, many in the community are concerned about their impacts, most notably when they are parked in a manner that blocks a footpath or could cause a tripping hazard.

(a) This is the most common concern/issue facing cities with shared e-scooter programmes around NZ and the World, and this will continue to be an issue for Tauranga should e-scooters continue to operate.

17. There is not a single intervention or playbook that will solve this issue. Like all transport modes, there will always be some level of non-compliance (i.e. vehicles speeding or illegally parked cars) even with strong policies and enforcement.

18. However, there are several things Council can look to implement with e-scooters (and future shared micro-mobility) that can help address this issue:

(a) Making operators better explain how their scooter design and technology can limit poor parking behaviour, and prioritising selection of operating partners based on it

(b) Designating frequent spaces off the footpath (i.e. road corridor) for deployment/parking zones.

(c) Create a fee structure that allows operators to incentivise riders to park devices in approved parking zones or provide for more dedicated staff to more quickly resolve issues.

Financial Considerations

19. Revenue and expenses from the trial were tied to the total number of trips taken, with a per trip fee $0.15 operator fee levied on Lime NZ and a $0.025 usage fee payable to Ride Report.

20. If this type of fee structure were to continue and rides remain like existing levels, Council should expect the following per annum:

(a) $25,000 in operator fees

(b) $3,750 in usage fees

Significance

21. 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.

22. 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.

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

ENGAGEMENT

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

Click here to view the TCC Significance and Engagement Policy

Next Steps

25. Should the recommendations in the report be adopted, Council’s would begin a process to select an operator for post-trial operations.

(a) Primary to the selection process will be how the scooters, technology, or procedures of potential operators can help reduce scooters being parked inappropriately

(b) It is anticipated this would take about 6 weeks and pending which company was selected, a transition period may be required to swap devices and setup restriction zones.

26. Should the recommendations in the report be rejected and shared e-scooters not be allowed to continue, Council would inform Lime NZ to shut down operations and remove scooters from the streets in a timely manner (in accordance with health and safety protocols).

Attachments

1. Lime scooter survey - summary analysis - A14478214 ⇩

Ordinary Council meeting Agenda

20 March 2023

11.5 2023/2024 - Draft User Fees and Charges

File Number: A14343332

Author: Josh Logan, Team Leader: Corporate Planning

Authoriser: Paul Davidson, Chief Financial Officer

Purpose of the Report

1. The purpose of this report is to present the proposed draft user fees and charges schedule for Council to adopt as a draft for public consultation.

Recommendations

That the Council:

(a) Receives the report: 2023/2024 - Draft User Fees and Charges.

(b) Adopts the draft user fees and charges and statement of proposal as set out in Attachments 1 and 2, as a draft for public consultation, incorporating any amendments as directed by Council at this meeting.

(c) Delegates the Chief Financial Officer to approve the final wording of amendments (as per Council direction) prior to public consultation.

Background

2. User fees and charges are updated by staff on an annual basis. Changes to pricing may be necessitated by one or more of the following influences: changing costs of providing the product or service, inflationary adjustments, new or removed fee requirements, statutory requirements, or alignment with market prices.

3. Significant or material changes are usually consulted on annually alongside the Long-term Plan (LTP) or annual plan (as applicable in any given year). The financial implications of proposed fee changes have been included in the draft annual plan revenue figures reported to Council in December 2022.

4. Attachment 1 to this report sets out the current fees and the proposed fees going forward. The proposed changes for the most part, are minor and are increasing at least in line with what the LTP estimated for inflation.

5. Please note that a separate report Recommendation for Adoption of Dog Registration Fees and Charges (Dog Control Act 1996) 2023-24, will be presented to Council for adoption at its meeting in April 2023.

Discussion

6. Tauranga City Council’s user fees and charges enable the actual and reasonable costs of council’s services to be suitably contributed to by those who directly benefit from the service.

7. The current revenue and financing policy guides the determination of funding sources for council activities. That policy includes five key principles:

· Accessibility – that Council facilities and services should be accessible to as many people as possible.

· Affordability – both that Council facilities and services should, wherever possible, be affordable to users and that rates should, to the extent possible, be affordable to ratepayers.

· Benefit – that those who benefit from a Council facility or service should contribute to the costs of that facility or service, during the period in which the benefits are expected to occur.

· Exacerbators – that those who contribute to the need for a Council facility or service should contribute to the costs of that facility or service.

· Practicalities – the funding of operating and capital expenditure should take account of the practicalities and efficiencies of the available funding methods.

8. Council must apply judgement in assessing many options to determine the appropriateness in its development of budgets.

9. Council’s general approach is to reduce the burden on the ratepayer by utilising a ‘user pays’ approach. Therefore, where a service user can be identified, and efficiently charged, they will pay for that service through a user fee or charge. This approach requires a greater percentage of the costs of an activity to be recovered from service users.

10. Fees and charges forecast revenue for 2023/24 totals $61 million, (this total excludes water by meter and Bay Venues fees revenue) which is 15% of the total operating revenue budget for 2023/24.

11. Of the $61m of projected user fee revenue mentioned above, more than half (59%) of the fees and charges revenue is attributed to the following four activities:

· Building services ($13m)

· Airport ($13m)

· Parking ($6m)

· Property Management (leases) ($5m)

12. Detailed below is a summary of the key user fee movements from current 2022/23 to those proposed for 2023/24.

13. Most of the fees set are comparable to those charged by other, similar, organisations.

14. Only those fees that contribute over 5% of the activity revenue are included.

15. Most fees have increased around 6%, being a forecast for the 2023/24 financial year of 4% and a catch up from the prior year of 2%. Actual inflation to December 2022 was 7.2%, not all of which was anticipated in the setting of 2022/23 User Fees & Charges. The forecast for 2023/24 inflation is an average of the most recent forecasts from our major trading banks + RBNZ + NZIER.

16. Also, in some cases, the impact of COVID-19 on Council’s revenues has caused deficits in the previous and current year due to reduced volumes. Several activities are expecting a significant improvement in operating revenues as volumes return.

Building Services

· Building services allows rates funding which recognises the public good element of this activity. The remainder of activity funding comes from user fees. The user fee revenue is modelled to recover costs over time based on estimated application volumes, the amount and complexity of work associated with applications and budgeted costs.

· Building Services have reviewed their fees and benchmarked these against proposed Building Consent fees for this coming financial year across the other Metro Councils and the other BOP Councils. In some cases, we have reduced these where we had previously been higher.

· Online system fees have been increased to reflect the actual charges that Council pays for these applications.

· There has also been a correction and simplification of the notice to fix fee. It has been split into two categories being residential and commercial. This is to correct the double up that was in another section and again bring us into line with other metro councils and local territorial authorities.

· This activity is currently running a deficit while staff work through the appropriate funding sources and internal allocation charges and costs relative to expected volumes. The activity remains within the allowable range for rate funding as per the 2021-2031 Long-term Plan.

Airport

· Airport parking was reviewed within the last year, and changes were implemented in August 2022. This increase exceeded inflation forecasts to bring prices more in line with comparable airports. Therefore, no increases are proposed for 2023/24 and will be increased in future years to ensure it remains consistent with inflationary increases.

· The review undertaken last year showed that Airport parking fees are comparable with the average fees of five other regional airports.

· Charges for regular passenger transport aircraft are agreed upon with operators based on an industry recognised pricing model based on individual airport costs. This is currently under review and any changes will be reflected in the upcoming Long-term Plan.

· It should be noted that the airport generates significant revenue from the leasing of land. These leases incorporate escalations which are included in budgets.

Property Management (leases) - Marine Facilities/Occupation of Council Land/ Temporary Leasing of Road Space

· The user fees and charges for these three activities, which are managed by the Property Team within Spaces and Places, are proposed to be increased by 9%.

· The fees for these leases are low and were initially based on a percentage of market value. Market value for lease area in Tauranga has increased substantially over the past year and the original 3% increase on these initially low values does not increase rental charges appropriately to the market rate percentage anticipated.

· As an example, a Council building lease for $545 increased by 4% would only increase the price by $16.35 per annum which does not sufficiently cover the increased staff, building maintenance, rates/operational expenditure increase within the 4%. The work involved in updating systems and advising the tenants of increases is not even covered by the 4% rise.

· There are further plans in place to review these fees and charges as part of the upcoming Long-term Plan.

Parking Management

· Parking activity has no rates included so that the costs of the activity, including provision of new parking facilities and upgrades, must be funded through user fee revenue. The last increase in parking pricing was done via the report “Parking Management Plan” from the Council meeting 3 October 2022.

· The On Street Parking area changes reflect the adopted recommendations from that report. Recommendations came into effect on 1 December 2022.

· Other increases are to amend pricing structure to prioritise short-stay parking, reflect the cost of providing the parking and to recover a greater proportion of parking costs.

Water Supply and wastewater

· Volumetric water charges are charged under the Rating Act so are a rate rather than a user fee and are presented in the Statement of Comprehensive Revenue and Expense as a rate. A much smaller share of water funding comes from user fees. This year to help minimise the increase the decision has been made to reduce the water supply fixed charge to $0 and remove the debt retirement element from the volumetric charge. The result is a 2.2% increase in the volumetric charge per m3. This will increase it from the current charge of $3.33 per m2 to $3.40 per m3.

· Similarly, most wastewater funding comes through a targeted rate with a small portion from user fees, primarily trade waste charges. Most trade waste increases for 2023/24 have used an inflation rate of 7% to more accurately reflect the actual increase in costs of pumping and treatment.

Bay Venues

· Attachment 1 contains proposed fees and charges for 2023/24 from Bay Venues. There is a paper that is also on the agenda for this meeting titled “Bay Venues’ Proposed Draft User Fees and Charges” that contains options for fees for 2023/24. The fees displayed in Attachment 1 are those proposed as the recommended option one in that report. Should a different option be chosen by Council then Attachment 1 will be amended to reflect this prior to consultation.

Strategic / Statutory Context

17. Setting fees and charges at the correct level enables the funding of council’s activities. These activities help deliver out community outcomes and facilitate improved quality of life, quality of economy and sound city foundations.

18. The recommendation meets the requirements of the Local Government Act 2002.

19. Council is authorised to set fees and charges under specific legislation, including:

- Local Government Act 2002

- Resource Management Act 1991

- Dog Control Act 1996

- Building Act 2004

- Reserves Act 1977

- Waste Minimisation Act 2008

- Local Government Official Information and Meetings Act 1987

- Food Act 2014

- Food Hygiene Regulations 2015

- Impounding Act 1955

- Health Act 1956

- Sale of Alcohol Act 2012

Options Analysis

Option 1: Council approves the draft user fees and charges schedule and statement of proposal.

20. The Council approves the draft fees and charges as proposed in Appendix 1.

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 · Engagement and communications planning can be finalised.		· 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 2024-2034 Long-term Plan.
Recommended?	Yes

Option 2: Council requests further changes to the draft user fees and charges schedule.

21. The Council does not approve the draft fees and charges and either rejects suggested changes or requests further analysis be undertaken.

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

Key risks	Potential delays in finalising 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.

Financial Considerations

22. The financial implications of the proposed fees and charges are included in the initial drafting of the 2023/24 Annual Plan.

Consultation / Engagement

23. The user fees and charges schedule represent fees proposed to be charged to the community.

24. After adoption today, the draft user fees and charges will be consulted on with the community for four weeks in accordance with sections 83 and 150 of the Local Government Act.

Significance

25. 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.

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

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

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

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

ENGAGEMENT

28. Taking into consideration the above assessment, that the decision is of medium significance, and the legal requirements for some of the user fees and charges, officers are of the opinion that one-month consultation is required under the section 83 of the Local Government Act.

Next Steps

29. Pending decisions from this Council meeting, key steps are:

(a) 24 March to 24 April: Community feedback sought on the draft user fees and charges.

(b) Mid-April to May: Staff will analyse feedback and make recommendations on changes.

(d) Council 19 June: Deliberate and then adopt a final version of the user fees and charges.

30. Once finalised, updated fees will come into effect on 1 July 2023.

Attachments

1. Draft User Fees and Charges Schedule 23_24 - A14412797 (Separate Attachments 1)

2. Statement of Proposal - Draft 2023-24 User Fees and Charges - A14412220 (Separate Attachments 1)

Ordinary Council meeting Agenda

20 March 2023

11.6 Omanawa Falls Safe Access Project - Consideration of Options to finalise Physical Works

File Number: A14342858

Author: Amanda Davies, Manager: Spaces and Places Project Outcomes

Authoriser: Barbara Dempsey, General Manager: Community Services

Purpose of the Report

1. The purpose of this report is to seek additional funding for the Omanawa Falls Safe Access project.

Recommendations

That the Council:

(a) Receives the report “Omanawa Falls Safe Access – Consideration of Options to finalise Physical Works”.

(b) Supports Option 2 which would approve an additional $1.333 million towards the project budget. This would see an additional budget of $1,053,000 in FY23 and $280,000 in FY24.

Executive Summary

2. Areas of cliff surrounding the Omanawa Falls have deteriorated considerably since they were first investigated in 2020. To complete the planned scope of the project, additional cliff stabilisation works will be required so that the remainder of the track can be constructed and made safe for the public to visit.

3. There is insufficient budget to cover the costs of additional stabilisation, and a few other items, which is estimated to be in the order of $2.646 million.

4. This report presents three options for consideration, each of which incur additional cost to the project.

· Option 1 is to reduce scope/stop works and complete the project with minimal additional spend. Under this option the carpark will be completed, however the track will end at viewing platform 2. This option is estimated to cost an additional $740,000.

· Option 2 is to make use of all completed structures and stop the track just after the glulam bridge. This would require the addition of a modest viewing platform at the end of the bridge so that there would be an end point to the track. There are two variations of this option which are described in Attachment 3, both of which are estimated to cost the council an additional $1.333 million.

· Option 3 is to complete for all works, including cliff stabilisation, which will require an increase to the project budget by $2.646 million.

5. The Omanawa Falls Governance Group supports Option 3, because it is the only option that fulfils the project objective to create physically safe access to the bottom of Omanawa Falls. However, the Group understands the financial impact of Option 3 has to the ratepayers of Tauranga.

6. This report recommends option 2 because it costs less than option 3, it makes use of structures already completed, and is safer than option 1.

7. A summary of option benefits and challenges for consideration can be found in attachment 3.

Background

8. The Omanawa Falls are located on land owned by Tauranga City Council within the Western Bay of Plenty district, and within the rohe of Ngāti Hangarau. There is currently no safe formed access to the Falls and as such, the site is currently closed to public access. Rockfall is a common occurrence due to the high levels of instability in the cliffs surrounding the falls. Despite this, members of the public continue to attempt to access the site to visit the spectacular falls and in recent years, this has resulted in a number of serious injuries and two fatalities.

9. The Omanawa Falls Safe Access project is being led in partnership by Ngāti Hangarau, Tourism Bay of Plenty and Tauranga City Council (TCC). The first phase of the project is to provide physically and culturally safe access down to the bottom of the falls.

10. The instability of the cliffs has been suspected or known for a number of years, however the Health and Safety focus at the site has centred on uncontrolled access by the public, the risk of falls, and dangerous parking. TCC has commissioned a range of assessments on geotechnical stability and safety over the years from 2015 - 2020 in order to be able to select and design a route down to the bottom of the Omanawa Falls.

Status update

11. Consent for the publicly notified resource consent application was granted in May 2022 and was then appealed. Court facilitated mediation was successful and the Environment Court approved the changes to the conditions of consent in late November 2022.

12. A contract for cliff stabilisation and track construction was awarded to Avalon with works commencing in August 2022.

13. GT Civil started clearing the site for construction of a carpark in early March 2023.

14. Carving of Mahi Toi is underway by Ngāti Hangarau artist Pete Smith.

15. Cultural ranger is in place and kaitiaki from Ngāti Hangarau are actively monitoring the site in evenings and weekends. The number of visitors has dropped from 70 cars per day to 20-30 cars per day.

16. Stabilisation of cliff area A was completed in December 2022 (see Figure 1 on p. 5).

17. Construction of the new track from the existing 4WD track is well underway. Sub-contractor Walkway Solutions (Walkways) have completed the track as far as the glulam bridge. Construction of viewing Platforms 1 and 2 are underway and will be completed in March 2023. The contractors can’t progress due to the stability issues of cliff areas B & C (see detail further below).

18. An application for funding was made to the Lottery Environment and Heritage Fund at the beginning of March 2023.

Cliff stabilisation

19. In 2020 Tonkin+Taylor (T+T) undertook a third geotechnical assessment in support of the final selected route. Cliffs along the route were assessed for susceptibility for producing rockfall as low, medium or high. Three sections of cliff were identified as having a high susceptibility to produce rockfall. These are shown in red in Figure 1 as areas A, B & C.

20. To manage the risk of rockfall T+T recommended mitigation for cliff areas with a high susceptibility for rockfall and frequent monitoring for areas with a moderate to low susceptibility for rockfall.

21. Due to the characteristics of the site, our main mitigation option is to reduce the risk of rockfall as much as is reasonably practical through a range of methodologies such as rock bolting, soil nails, mesh, and cable tie backs. This will be supported by regular monitoring of the cliff face, and signage

Figure 1: Plan showing features of track and stabilisation areas

Map

Description automatically generated

Issues

ONGOING RISK ALL OPTIONS

22. It needs to be noted that all options/cost estimates are based on geotechnical knowledge and conditions at this point in time. T+T together with Avalon have identified blocks that they consider to be at imminent risk with a high susceptibility to rock fall. The rock bolting philosophy for Areas B and C addresses blocks with open defects and/or areas with evidence of recent rock fall. Adjacent areas also have blocks with open defects but due to the presence of vegetation cover, which helps lock the blocks in, these areas are not considered as being at imminent risk and have been classified as having a moderate risk of rock fall. Rock fall in areas classified as having moderate susceptibility are still possible but are likely to be infrequent.

23. The remediated areas shall be subject to routine inspection and maintenance as recommended in the maintenance monitoring schedule. Areas with low to medium rock fall risk with also be monitored regularly. It is not envisaged that further rock stabilisation works will be required in the short to medium term. However, it must be noted that the condition of the cliff face may be subject to change due to ongoing erosion. It is noted that cliff stabilisation works completed since August 2022 have held.

24. Considering the recent frequency of unpredictable natural events (Cyclone Gabrielle in February, significant rainfall and landslips in December, earthquakes in January etc.), there is a risk that future events could have additional impacts on the project’s requirements / scope in terms of cliff stabilisation, unstable ground conditions etc.

Current Situation

25. Recent surveying of cliff areas B & C, has found that there has been significant deterioration since the 2020 geotech investigation. It has been concluded that the area considered to be at imminent risk of failure is significantly larger than first anticipated. In short, areas identified as moderate risk in the T+T Geotech report completed in 2020 (orange in the Figure 1 above) have now been determined as high risk of imminent failure (now red in Figure 1). The unusually high level of rainfall in the last six months is considered to have contributed to the deterioration of the cliffs, and this is evidenced by four instances of observed rockfall since June 2022.

26. The original strategy for stabilising these cliff areas combined scaling loose blocks and spot bolting high risk rocks over an area of approximately 500m². It was estimated that 100 rockbolts would be required. Further investigation indicates that approximately 1500m² of the cliff face of areas B & C needs to be stabilised, with an additional 1200m² that hasn’t been observed in detail that may also require stabilisation. Due to the size of the individual blocks and the stacked nature of the columns (where scaling one block is likely to take others with it) scaling will be relatively minimal. Therefore T+T are conservatively estimating 800 rockbolts, with 600m of cable to tie back large blocks and 520m² of mesh.

27. The contractor’s variation for the above came in much higher than expected at a total of $1.423 million. The costs are for the additional materials, additional helicopter movements, and an extended programme of five months.

28. Avalon are currently installing the 100 rock bolts already procured and assembled for cliff areas B & C. This work is due to be generally complete in March.

29. The additional stabilisation work required for cliff areas B & C has a knock on effect on the completion of the track and structures being completed by Walkways beneath areas B & C. Due to the risk of imminent rockfall from areas B & C, Walkways will not be able to commence work on the track and structures below these cliffs (beyond the glulam bridge) until Avalon have completed the cliff stabilisation works.

30. In addition to the submitted variation for $1.423 million there are a number of other related costs for the stabilisation work.

Option 1 considerations

31. If all structures already built were retained, and we proceeded with completion of the carpark, then the track could be opened to the public as far as the glulam bridge. The risk of falls from height would remain beyond the glulam bridge, as well as the significant risk of rock fall. However, people would be less likely to get lost in the bush and cause a nuisance for neighbouring properties.

32. However, with nowhere to walk to from the glulam bridge, we anticipate that most people would want to continue to try to get to the falls and make use of the existing dilapidated ladders below the glulam bridge. These ladders are in very poor condition and are very tall, with the tallest being 10m long. We could potentially look into upgrading the ladders to reduce the risk of the ladders failing, however this wouldn’t go far enough to provide safe access to the public.

33. As an alternative, we could remove the extensive infrastructure already built and paid for beyond Platform 2. This would require the assets to be written off which would have an immediate rates impact because the structures couldn’t be capitalised. Without a formed track beyond Platform 2, people will continue to get lost in the bush and cause nuisance for neighbouring properties when they trespass over their land.

34. Option1 means TCC would be failing in its obligations under the Health and Safety at Work Act 2015. The existing structures including the historic tunnel, staircase and dilapidated ladders are currently in an unsafe and unsound condition. If we don’t provide a safe alternative, as a PCBU we remain responsible for the health and safety of anyone onsite, including workers of Omanawa Hydro and TCC rangers.

35. Option 1 would not solve the issues that the project set out to achieve as motivated visitors will continue to make every effort to get down the falls, while risking their health and safety, and causing nuisance for neighbours.

36. Option 1 could negatively impact on Ngāti Hangarau’s ability to provide kaitiakitanga and manaakitanga to the land and the water at Omanawa, and to provide cultural safety for visitors. This is because either stopping or reducing the investment on site is likely to adversely affect the ability of Ngāti Hangarau and their business partner to run a viable cultural tourism venture. This could prevent Ngāti Hangarau from being able to maintain their presence onsite.

Option 2 – Construct an additional viewing platform at the end of the Glulam Bridge (Platform 4) and stop the track at that point.

37. The viewing platform would be of modest size, and if possible – subject to further investigation - may be cantilevered over the edge of the cliff. The ground below the proposed platform has been inspected and is found to be sound. The cliff below the proposed viewing platform has been surveyed and is moderately unstable and would require a limited amount of stabilisation. Construction of an additional platform is estimated to cost $300k.

38. The Omanawa Falls Governance Group recommends Option 2 as the best alternative option to completing the full scope of the project (Option 3), on the basis that the project team continue to seek funding from external funding partners to complete the full scope of the project.

39. Option 2 TCC would need to review in its obligations under the Health and Safety at Work Act 2015. With potential risk to users determined to access the bottom of the falls. TCC also as a PCBU remain responsible for the health and safety of anyone onsite, including workers of Omanawa Hydro and TCC rangers. Improvements would also need to be made to the existing ladders onsite to provide access for Omanawa Hydro. TCC would need to continue to work with Omanawa Hydro to ensure appropriate health safety obligations are being met.

40. Option 2 Neither option would solve the issues that the project set out to achieve as motivated visitors will continue to make every effort to get down the falls, while risking their health and safety, and causing nuisance for neighbours.

41. Option2 both options could negatively impact on Ngāti Hangarau’s ability to provide kaitiakitanga and manaakitanga to the land and the water at Omanawa, and to provide cultural safety for visitors. This is because either stopping or reducing the investment on site is likely to adversely affect the ability of Ngāti Hangarau and their business partner to run a viable cultural tourism venture. This could prevent Ngāti Hangarau from being able to maintain their presence onsite.

Recommended option

42. Option 2 is recommended for the following reasons:

· It makes use of all structures built onsite

· It costs less than option 3

· It is safer for the public than option 1

· There will be a pleasant view from viewing platform 4 down the valley

· The project will have a defined completion date

Financial Considerations

43. The project budget has grown considerably over the last five years. The key reasons for this are:

· Publicly notified consent which was then appealed. This added over a year to the programme and significant legal, planning fees and specialist consultants’ fees as part of this process. This also meant an increased project programme and subsequent increase in professional services fees.

· The project site environment is complex and sensitive, with specialist and bespoke solutions required to minimise environmental impact and address the risks on site.

· Complex stabilisation work required to address the geotechnical risk, which has increased over time

· Cost escalation in materials and for contractors.

44. As discussed earlier, we are requesting an additional $1.333 million. This is proposed to be phased over FY 23 and FY 24 as follows:

Table 5: Phasing of budget over FY 23 and FY 24

	2023 FY	2024 FY
Current budget	$4,713,227	$1,000,000
Required	$5,766,227	$1,280,000
Increase to budget	$1,053,000	$ 280,000

Funding opportunities

45. Funding of $1 million from the Tourism Infrastructure Fund is still secured. Now that resource consent is granted and the appeal is resolved, we can invoice for the first instalment of $250,000.

46. In additional to the grant from the Tourism Infrastructure Fund, TCC has been active in applying for grants from other potential funding partners. Delays with getting the resource consent approved prevented us from being successful with applications to the Lottery Environment and Heritage Fund in 2020 and the Lottery Significant Projects Fund in 2022. Now that consent has been resolved, we have reapplied to the Lottery Environment and Heritage Fund for partnership funding of around $500k. Unfortunately, the Significant Projects Fund has been put on hold for 12 months while the settings are reviewed. The Board will make a decision in June 2023 about whether the fund will be opened again. The City Partnerships team also put the Omanawa Project forward to the Lion Foundation for a grant in December 2022 however the funding was awarded to another TCC project. Attachment 1 provides a high level summary of potential funding partnerships that the City Partnerships team are investigating.

Next Steps

47. Design an additional platform at the end of the Glulam bridge.

48. Continue with construction at the site until September 2023.

49. Work with the city partnerships team and continue investigating other options for funding.

50. Work with Ngati Hangarau and their business partner Kaitiaki Adventures to develop the commercial tourism product so that it is in place when the project is complete, and the site is open to the public.

Attachments

1. Omanawa Falls - Options Analysis - A14492454 ⇩


AGENDA Ordinary Council meeting Monday, 20 March 2023
I hereby give notice that an Ordinary meeting of Council will be held on:
Date:	Monday, 20 March 2023
Time:	9.30am
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

· 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.