Minutes of Ordinary Council meeting

UNCONFIRMED Ordinary Council meeting minutes

3 April 2023

MINUTES OF Tauranga City Council

Ordinary Council meeting

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

ON Monday, 3 April 2023 AT 9.30am

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

IN ATTENDANCE: Marty Grenfell (Chief Executive), Paul Davidson (Chief Financial Officer), Barbara Dempsey (General Manager: Community Services), Nic Johansson (General Manager: Infrastructure), Christine Jones (General Manager: Strategy, Growth & Governance), Alastair McNeill (General Manager: Corporate Services), Sarah Omundsen (General Manager: Regulatory and Compliance), Gareth Wallis (General Manager: City Development & Partnerships), Sanjana France (CCO Specialist), Anne Blakeway (Manager: City Partnerships), Kathryn Sharplin (Manager: Finance), Tracey Hughes (Financial Insights & Reporting Manager), Kelvin Eden (Capital Programme Manager: Major Community Amenity), 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 Rolleston opened the meeting with a karakia.

2 Apologies

Nil

3 Public forum

Nil

4 Acceptance of late items

4.1 Acceptance of late items - Memorial Park aquatics and indoor courts update

Resolution CO4/23/1

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Bill Wasley

That the Council

(a) Accepts the following late item for consideration at the meeting:

• Memorial Park aquatics and indoor courts update

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

Carried

5 Confidential business to be transferred into the open

Nil

6 Change to the order of business

Nil

7 Confirmation of minutes

7.1 Minutes of the Council meeting held on 20 March 2023

Resolution CO4/23/2

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the minutes of the Council meeting held on 20 March 2023 be confirmed as a true and correct record.

Carried

8 Declaration of conflicts of interest

Nil

9 Deputations, presentations, petitions

Nil

10 Recommendations from other committees

10.1 Re-purposing of the City Centre Development Incentive Fund

Staff Gareth Wallis, General Manager: Central City Development

Key points

· A report was tabled broadening the scope of the framework over a period of transformation and growth and providing detail on how to make the funding available for use.

· Three grants had been made from the original fund in the past 12 months with no further applications coming to hand under that framework.

In response to questions

· In response to negative comments received regarding short term parking for trades people, the need for more living in city and disruption that businesses would face, it was noted that the fund could open up other possible avenues.

· Staff parking was a big issue and there was an opportunity to do different things when responding to the needs of businesses within the city. Staff were talking to businesses to get a feel for what was needed in the way of support over the next few years.

· Recent comments regarding the increase in crime in the city centre had been followed up with the police who had noted that there was nothing in their statistics for the last five years to support these comments. There was possibly a decrease in crime with the changes in the transport hub and centre city bus shelters.

· Regarding the safety concerns with hospitality staff working late and not being able to park close to their place of employment, it was noted that the transport team were currently looking at this issue.

· The Spring Street and Elizabeth Street parking buildings where staff could safely park were free on Saturday and Sunday, and extending this to also include Friday night was being considered.

· Two studies under the previous framework were still live opportunities. The original programme would continue with support being given to get these across the line.

Discussion points raised

· It was requested that the frequency of reporting back be three monthly not six as indicated in the report.

Resolution CO4/23/3

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the report "Re-purposing of the City Centre Development Incentive Fund".

(b) Acknowledges the endorsement of the Strategy, Finance and Risk Committee.

(c) Approves broadening the scope of the City Centre Development Incentive Fund to enable a wider range of initiatives that will support the ongoing growth and development of the city centre, specifically to:

· attract and incentivise the development of residential and in particular, student accommodation;

· support short- to medium-term tactical parking interventions that will increase the availability of car parking;

· generate initiatives that will support city centre businesses that are severely impacted by the current period of construction disruption; and

· support increased activation and vibrancy.

(d) Delegates approval of expenditure from the fund to the Chief Executive

Carried

Attachments

1 Council - 3 April 2023 - Tabled item - Appendix 1 - City Centre Development Incentive Fund Framework

11 Business

11.1 Council-Controlled Organisations' Half Yearly Reports to 31 December 2022

Staff Gareth Wallis, General Manager: Central City Development

Sanjana France, CCO Specialist

External Chad Hooker - Chief Executive - Bay Venues Limited

Julie Hardaker - Deputy Chair - Bay Venues Limited

Wayne Werder - Trustee, Tauranga Art Gallery

Sonya Korohina - Director, Tauranga Art Gallery

Megan Cleverly - Tauranga Art Gallery

Oscar Nathan - General Manager - Tourism BOP

Russ Browne - Director - Tourism BOP

Tauranga Art Gallery

Key points

· Acknowledged the contribution Council made to the gallery financially and the wider support given as a CCO.

· Acknowledged Stephen Cleland’s contribution while Director, welcomed Sonya Korohina as new Director and noted appreciation to Megan Cleverly for her interim role.

· Challenged selves on what the gallery did and why they did it as a reset throughout the whole gallery. Resulted in the delivery of enhanced education and public programmes and meaningful engagement for everyone coming into the gallery.

· Revenue questions included how to bring more people into the gallery.

· Introduction of the Squiggla programme in which a family produced collaborative art for the family home.

· Education programmes linked to the gallery were diverse and realigned with the new school curriculum.

· The ArtBus was essential to the gallery and was free for schools and linked in with the library on education classes. There were 63 shared classes last year which were chosen by the schools.

· Zinefest and the Tauranga Art Festival were very popular, as were the artists workshops where the artists engaged with attendees.

· New initiatives included Yoga before 10 am and A Night at the Museum. These were exciting programmes which challenged staff and participants.

· Covid played a major part in reduced visitor numbers, but with a new educator appointed in January, classes would increase and KPI numbers would be achieved this year. Visitors coming in the door had increased threefold with the number of cruise ships and tourists in the region. Front of house staff were also going out to attract people into the gallery.

· The calibre of exhibitions included Maraea Timutimu from Matapihi and Ayesha Green, a recipient of the prestigious Ryder Art prize, both of which showed a part of the wider eco system and gave opportunities to the artists to uplift their mana.

· Partnered with mana whenua on the development of a Māori engagement strategy which was now being formalised and implemented.

· Moving forward with other stakeholders in a cohesive way as partners would also be worked on.

· Looked forward to the development of Te Manawataki o Te Papa and joining a rich cultural precinct and, while this would come with challenges, TAGT was ready.

In response to questions

· 20% revenue growth was agreed to in the Statement of Intent; an increase would become a target to achieve with the changes and would include funding applications and sponsors coming on board.

· The ArtBus was free as it was funded from grants and Council funding.

· School programme charges included $1 for resources and $3 for funding.

· There would be opportunity for events being held to increase once the gallery upgrade had been completed and it opened out onto Masonic Park.

· There were a number of different ethnicities within the city and currently often the first point of contact was through the youth education programmes and through the schools; it was hoped that this would inspire children to bring mum and dad into the gallery. Family fun days were held and newsletters sent out. The Gallery was continuing to do more to ensure they were engaging as fully as they could with all groups in the city and surveys were run to identify who was coming through the door.

· It was noted that Council was working through a sustainability plan, with a focus on leadership with sustainability in energy use and transport, and it was suggested that the gallery connect into this work to see how they were doing as an organisation.

· The financial deficit was partly because of Covid, inflation and reduced revenue from goods and services. The Board would be paying close attention to the core costs of running the gallery and the financial and other challenges to provision of showstoppers to bring people into the gallery. Members realised that running at a deficit was not sustainable and would work to a budget of sustainability. They realised that there was a limit to how much could be charged but were committed to the long term and a successful gallery.

· It was noted that the current asset figure of $13.6m included collection items owned by the gallery. Further details could be provided.

Bay Venues Limited

Key points

· The business had stabilised well over the past 12 months coming out of Covid and was tracking well.

· The Funky Funday Programme received an award from the NZ Recreation Association.

· While some concerts had to be cancelled, those that were able to proceed went well.

· A massive event programme had been undertaken over the summer period.

· The Greerton aquatic centre had re-opened late last year, and, with the new facilities and the non-summer weather, record days were recorded with lots of activities taking place.

· Collaboration across city with events - the World Squash tournaments with glass squash courts and full digital screen imagery were sold out and broadcast all over the world. This was done in partnership with the TCC events team and Tourism BOP who came together to put on an amazing event demonstrating the strong relationship with Council and fellow CCO’s.

· Visitor numbers were bouncing back and getting close to pre-Covid levels.

· There were increased costs coming through in the current environment, but they were tracking ahead of budget over the last few months and expected to be tracking even better for the end of year.

· Customer satisfaction was 88%, but with more people using the facilities it was more challenging to reach the satisfaction level.

· Objectives for the year had either been completed or were on track. A customer experience programme was about to start and there was still work to do with mana whenua changes in leadership.

· The user fees review was still to be finalised.

· There was a positive energy within the organisation at present at both Board and staff level, with partners and key customers, so were in a good place to deliver services to the community.

· The Board was in a positive place and had settled in well, but were still on a journey with new challenges. Both the Board and management were looking forward to the board review to ensure expectations were being met.

In response to questions

· Commissioners were delighted with the energy and positiveness of the activity and noted the importance of the community focus the board members had brought. The positive feedback from community organisations indicated BVL was on track in terms of what the Council was aiming to achieve.

· Access to the new offramp by Baypark would hopefully be completed by the end of May and Truman Lane would revert to two lanes allowing better access to the stadium.

· It was noted that for the upcoming Long-term Plan the Commissioners wanted a realistic view of each facility so that they could gain a true understanding of the long-term life of each service.

· Staffing was a challenge, especially with lifeguards where BVL had struggled with numbers for two years. With Baywave due to re-open this week there would be more pressure on as staff were brought back to that facility. There were a few occasions when one of the smaller centres had to close to allow a larger facility to open. They would continue to prioritise this, but Covid could still affect staff from the same facility at the same time. They were constantly recruiting and working hard to retain staff and to promote life guarding as a career option.

· The makeup of staffing included two thirds of the 375 staff being either part time or casual. There were a lot of students so the expected turnover was higher than other businesses. While the staff turnover was tracking higher than wanted, turnover had dipped down again and hopefully this would continue to trend in the right direction. Paying the living minimum wage, staff benefits and staff referral programmes were making a difference.

· Congratulations was offered on the 88% satisfaction level. It was noted that the team were incredibly passionate about what they did and do it because they love the interaction with the community.

· The Commissioners noted that the facilities were relied on and used by a whole range of people within the community and were key to each of those areas.

· The Board was intending to talk about the speedway and Baypark next month. There were three workstreams - how efficient could it be, incorporating other uses and what did the long term future look like. Work would be undertaken around understanding the cost of looking after the facility over the next 20 years as no money had been spent on it in the 20 years it had been there. Deferred maintenance and renewals were required.

BOP Tourism

Key points

· Acknowledged that the Council wanted each of the CCOs to get on better with the other CCOs and they had been working hard to do that, partnering together and getting to know one another so they were all on the same page wanting more and better for Tauranga.

· Summer photo shoots taken were leading into summer partnering with TCC and to help with brand work.

· Progress against KPIs was on track for the majority and only one risk. The horticultural strategy was gaining momentum and they were pushing ahead with that. A lot of smaller rather than larger events had been held through Covid.

· The Wellbeing survey was not yet in place but was progressing. Social wellbeing and resident perception of tourism could be improved; TBOP was influencing and directing as much as possible but there was still work to do on cruises and promotions. This was part of Council’s survey undertaken three times a year.

· The visitor and domestic spends were improving with tourism this year but, due to false summer and bad weather events, spend had not been as buoyant as it had in the past.

· The international spend was up 27% with some of the forecasts having been revised back. The reality was there was a global recession looming, wars, increased supply costs and inflation. Inbound travel was expected to return to 100% pre-Covid levels in 2025.

· TBOP was working hard with elevating a cultural tourism proposition to identify and fit in with the framework of Te Manawataki o Te Papa and other Council projects, and to fulfil their commitment to working with the Takawaenga team. They were keen on partnering with mana whenua and not doubling up.

· The cruise season was from 15 October to 8 April with 105 ships coming on 80 ship days. They had come through relatively unscathed, working with the transport team and the Mount businesses in terms of events on any of the days. They also worked in partnership with others to get the ferry service established and were looking at it as an ongoing option to get traffic off the roads.

· The return of the cruises gave a perception rating of 76% of residents either welcoming or very welcoming; there was a feel good factor and people liked seeing the ships in the harbour.

· In terms of the environment, the regenerative sustainable programme continued, and the green room programme was starting to circle back to the Tauranga moana again. BOPRC also supported the programme.

· There was an expectation to end the year in the financial position as predicted. Some items were stalled until the end of year as they were waiting for markets to reopen, but it should even out by 30 June 2023.

· Cash on hand included receiving some income in advance of finishing on 30 June 2023. There were a number of programmes to be delivered when the borders closed with cash being received in advance. There was also a regional events fund for events around the Pacific Coast highway which they had received funding for to release out to the regions.

· Two Directors would be moving off term and two new ones appointed. The Board was settled and worked as a good team, and staff were looking forward to working with the new appointments who would bring new insight into the board.

In response to questions

· Commissioners noted that the imagery did not depict a great understanding that Tauranga was the fifth largest city in NZ and noted the importance of portraying it as a big city; while Mauao and the coast were important they also needed to show people and houses. In response it was noted that would occur in time by partnering with TCC Communications and Events teams, Bay Venues and Priority One and others; together they would develop more diverse imagery. Photoshoots were done quarterly and when next done, they would include more with a cityscape.

· Commissioners noted that Downtown Tauranga had been alerted that Council was looking at potential for bus and ferry park and ride areas.

· Most events within the Flavours of Plenty festival had sold out, but some of the smaller restaurant participation had dropped off. While the show went ahead, some staff had Covid before and throughout the festival. There were many events and some had worked with new sponsors who had come on board this year.

· The visitor spend was realised in the city centre, the Mount and Papamoa, with the Mount getting the most. Mount Main Street had shared their numbers and could be provided as information to the Commissioners,

· The international visitor spend was higher than pre-Covid as there was deferred demand following Covid with people wanting to engage with friends and family and wanting to travel. This would dip from now to the end of the year.

· In response to a query in relation to valuing the environment and the green room initiative, this was funded predominately through the BOPRC Community Initiatives fund. The goal was to reach 100 businesses across the region, and they were currently at 60, with 40 expected next financial year . The feedback had been positive with the participants collaborating with others in the same type of business, measuring carbon footprints, looking at financial stability, providing a greater visitor experience and considering how to give back to the community. The local connectivity, and working with Envirohub and Priority One, had helped to spread it across the region.

· Getting the100 businesses in the green room initiative created branding-related opportunities, created a mechanism to promote what was happening, and a long-term revenue stream to keep the ball rolling for financial support. Some businesses had developed sustainable charters and carried out an annual or biannual audit.

In response to questions

· In response to a query regarding the current reviews on joint procurement of shared services carried out by BOPLASS, and how they related to building and resource consent processing, it was noted that the collective of teams across the Bay of Plenty would come together to align this. A decision would be made at the next Chief Executives meeting on whether to buy into the product that would align processing.

Resolution CO4/23/4

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report "Council-Controlled Organisations' Half Yearly Reports to 31 December 2022".

(b) Receives Bay Venues Limited’s report on its performance for the six months to 31 December 2022, as required by the 2022-2023 Statement of Intent.

(c) Receives Bay of Plenty Local Authority Shared Services Limited’s report on its performance for the six months to 31 December 2022, as required by the 2022-2023 Statement of Intent.

(d) Receives Tauranga Art Gallery Trust’s report on its performance for the six months to 31 December 2022, as required by the 2022-2023 Statement of Intent.

(e) Receives Tourism Bay of Plenty’s report on its performance for the six months to 31 December 2022, as required by the 2022-2023 Statement of Intent.

(f) Receives the Local Government Funding Agency’s report on its performance for the six months to 31 December 2022, as required by the 2022-2023 Statement of Intent.

Carried

Attachments

1 Presentation - Tauranga Art Gallery six month report presentation ending December 2022 (1)

2 BVL Presentation - pdf

3 TBOP presentation - pdf

11.2 Shareholder Feedback to the Draft Statements of Intent for Council Controlled Organisations 2023/24 to 2025/26

Staff Gareth Wallis, General Manager: Central City Development

Sanjana France, CCO Specialist

Anne Blakeway, Manager: City Partnerships

Key points

· Overall there was good alignment with expectations.

In response to questions

· Formal feedback would be provided back to each CCO.

· There was an ability for the public to source information on each of the CCOs.

· In relation to the stadium, it was noted that there was still a way to go through a process and a long way before any possible relocation of any of the various activities.

Discussion points raised

· Each CCO was operating in a commercial world and managed in different ways. However, a section of the public was nervous and felt that the CCO’s were secret when they were actually a medium to progress the city, and were all looking for ways to make Tauranga a great place to live, work and play and share in a way that they were comfortable with.

Resolution CO4/23/5

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

1. Receives the report "Shareholder Feedback to the Draft Statements of Intent for Council Controlled Organisations 2023/24 to 2025/26".

2. Receives the draft Statements of Intent for Bay Venues Limited, Tauranga Art Gallery Trust, Tourism Bay of Plenty, Bay of Plenty Local Authority Shared Services Limited, and Local Government Funding Agency for 2023/24 to 2025/26.

3. Notes that as joint shareholder of Tourism Bay of Plenty, Western Bay of Plenty District Council will be asked to approve their separate shareholder comments on the draft Statement of Intent for Tourism Bay of Plenty at their 27 April 2023 Council meeting.

Carried

11.3 Executive Report

Staff Marty Grenfell, Chief Executive

Nic Johansson, General Manager: Infrastructure Services

Barbara Dempsey, General Manager: Community Services

Paul Davidson, Chief Financial Officer

Christine Jones, General Manager: Strategy, Growth and 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

· Noted that the Totara Street signalised crossing had been completed several weeks ago and the Accessible Streets transportation model was ready and, while consultation would be delayed until June, the model was in use.

· The sub-regional circular economy report would touch on the whole chain from production to disposal, show activities in the front end and the influence at the tail end, and add a benefit-type analysis where actions for investment were expected. This could benefit other councils and staff hoped to get the data to have conversations with other beneficiaries for cost distribution.

In response to questions

· Bee Card information and data on patronage and use by staff would be provided along with the cost to the organisation. It was requested that the initiative be promoted to other corporates and businesses across the city with a challenge that, if they were serious about reducing the carbon footprint, supporting staff to use the buses was one way to do it.

· 75,000 people across the country had completed the Futurefit programme which included questions on lifestyle, transport, what you eat, use of power etc. It was agreed to promote the programme in the city to help people make informed decisions.

· There were 300 people at the Waiāri open day and congratulations was offered to staff who assisted at the site and with the tours. Some of the visitors included people who had been involved in the very early days of the scheme. There was a minimum age limit of 12 as additional staff would have been required for younger children. It was intended to offer hosting of student groups at the site as an educational opportunity.

· Being able to cycle safely off road along Totara, Hewlett’s and Rata Streets was significant and congratulations was passed on to all involved. There was still some further planting and some maintenance required.

· The remote operated vehicle for the inception of the marine wastewater outfalls had been designed by staff in-house for $100,000. It was quite a big machine with rollers and claws to be able to pick debris out of pipelines. It has cleared 300m in sections that had been broken in the past which resulted in an increased flow; and provided footage of the complete inner pipe and the state of it which resulted in being able to reline the pipe rather than replace it. This had turned a $50m job into a $10m job, so was well worth the investment. Congratulations was offered to all staff involved. It was noted that it could also be a useful tool to provide to other Councils.

At 10.28am the meeting adjourned.

At 10.38am the meeting reconvened.

Community Services

Key points

· Two new senior managers had been appointed - Greg McManus as Director, Tauranga Museum and Exhibition Centre and Alison Law as Manager Spaces and Places.

· The inclusion and accessibility team had worked with the infrastructure team to break down barriers with access in the customer services kiosk to make sure everyone could use it.

· A more detailed report on the emergency management activity over the last two months would be provided to the next Strategy, Finance and Risk Committee meeting.

In response to questions

· It was noted that one of the reasons for little damage being sustained during Cyclone Gabrielle was that Tauranga was in the eye, which was the calmest part.

· History and stories were to be included in the Historic Village upgrade and staff were currently looking at resources to assist with this so that people were able to understand the history. Some of the work being carried out related to structural issues with some buildings.

· There were 200 people at the recent opening of Ila Park - Tongaparaoa, with the local residents on Harrisfield Drive being appreciative of the upgrade and having toilets installed. People from a large catchment were using the facility, with most from Welcome Bay and Maungatapu.

· Work on the Greerton reserves would commence later in the year as there had been a hold up with staff leaving and having to be retrained.

· Information would be provided on the number of people attending the many events across the city’s parks, and any key trends, to provide an understanding of the use of some of the facilities.

· Parks were a critical part of living in the city, therefore investing in them was about people and what cities were about .

Financial

Key points

· There had been a number of mis-landings at the Tauranga Airport which had resulted in having to redo the navigational lights. This was fully funded by the airport.

· Although it was early in the rates collection for the year, there had been an increase in the number of penalties issued. The team were working through these at present, and it was likely that some of it was due to BOPRC rates now being sent separately.

In response to questions

· In response to a question in relation to whether the demand for hangars at the airport meant that there was an increase in the number of small private planes, this information was not known. It was a busy airport for small planes with the flying school, parachute school etc. Additional hangars would provide additional income.

Regulatory and Compliance

Key points

· Shift for building consents to Objective Build would be rolled out in the near future where all the process was managed within one system, and anyone applying for a consent could see at what stage their application was in the process.

· An increase of alcohol licencing applications being sent to the District Licencing Committee was noted with several hearings taking place. Training was underway with the new committee members and list members who were working alongside the Licencing Commissioners to gain experience and provide a pool of local trained Commissioners.

· An Urban Designer had recently started with Council.

In response to questions

· Building consents issued within statutory timeframes was at 90% with inquiries into building consents and new consents dropping. There were issues with some of the older consent applications and they were looking at consultants with the expertise to expedite these.

· New consents were being processed in a timely manner. Inspection time was around 45 minutes for residential consents so staff could complete eight - nine a day; more complex applications could take from four hours to a whole day if staff needed to be on site to carry out all inspections and provide the necessary information.

· The timeframe for resource consent processing was at 60% completion, and staff were working hard to bring this to a higher rate. A graduate programme was in place to attempt to source planners for TCC; however, the training still took time. There was no bond for the graduates, they worked in the role for 12-18 months and were then moved into a full role.

· The testing and issuing of Liquor Manager Certificates was on a district licencing basis, with Tauranga and Western Bay having the same requirements.

· It was requested that congratulations be passed on to staff for their work during Cyclone Gabrielle.

City Development and Partnerships

Key points

· Two new Directors had been appointed to the Te Manawataki o Te Papa CCO, with the quality of the applications exceptional.

· The railway underpass was ready to be completed at Easter.

· The first sod was turned at the 90 Devonport Road site recently. Kelvin Eden had commenced as Capital Programme Manager, Major Amenities.

In response to questions

· Information was requested whether the relocation of the power line and transformer was in hand so that all the relevant time frames would be met.

· It was requested that acknowledgement be passed on to the three CCOs for supporting the Aspiring Directors programme.

· Now that the new CCO board members were in place, there were opportunities as an organisation to come together to discuss the CBD as a whole and create an action plan that would pull all the work together.

· A summary of all the work to occur along the waterfront was requested so that Commissioners were aware of the works that would be undertaken.

Resolution CO4/23/6

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the "Executive Report".

Carried

11.4 Adoption of the Annual Plan 2023/24

Staff Paul Davidson, Chief Financial Officer

Kathryn Sharplin, Manager: Finance

Tracey Hughes, Financial Insights & Reporting Manager

Key points

· The annual plan adoption was following from the 12 December 2022 Council meeting decisions, with a differential for the commercial rate and a transportation targeted rate.

· No consultation was required as there was no significant difference from the 2023/24 year in the Long-term Plan (LTP).

· A significant change was to the water activity to bring the charges down, driven by debt retirement in the water activity. As water was a ringfenced activity funding could not benefit wider activities. The water charge was reduced to $0 and the volume charge up 2% being enough to cover the annual cost. This brought the average rate increase to 6.2% which was close to the 6% predicted in the LTP.

· Table 7 noted the differences to the draft annual plan and the Year 3 LTP with most of the debt comparable and a debt ratio of 223%

· All the annual plan funding to Bay Venues Limited may not be required so any balance would be transferred to risk reserve.

· Tauriko West improvements had changes to the funding arrangements with the timing of funding flows not completely in line with the expected expenditure; it would now require loan funding for the temporary funding deficit.

· As the most up-to-date valuations would be used for rating, the rates resolution would be included in the 19 June 2023 Council meeting.

· Any additional Carry Forwards would be reported to Council in July.

In response to questions

· To provide more clarity on why rates in some areas would be higher than others, it was agreed to add an extra column with connection charges. It was noted that individuals would be able to go into the property details and check on their rates increase.

· The rates increase did not include water as the charging and accounts for water would be sent separately to the rates account.

Discussion points raised

· Acknowledgement that the Annual Plan was carrying on the direction that was previously assessed in the LTP and LTP Amendment.

· Commissioners had received comment from some ratepayers that some levels of service were not reflective of what they were paying in rates.

Resolution CO4/23/7

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report "Adoption of the Annual Plan 2023/24".

(b) Adopts the Annual Plan 2023/24.

(c) Agrees that the increase to the Bay Venues Limited grant included in the annual plan of $600,000 has been partially replaced by an increase in user fees with the balance put to risk reserve.

(d) Agrees that the temporary operating deficits generated by the timing of the funding arrangements for the Tauriko West enabling works be loan funded until such a time as all third-party contributions have been received.

(e) Authorises the Chief Executive to make any necessary minor drafting or presentation amendments to the 2023/24 Annual Plan, prior to final printing, including information relating to water charges to link back to the overall rates revenue increase of 6.2%.

(f) Notes that the Rating Resolution will be presented for adoption in June 2023.

Carried

11.5 2023/24 Annual Plan - Borrowing Programme

Staff Paul Davidson, Chief Financial Officer

Kathryn Sharplin, Manager: Finance

Resolution CO4/23/8

Moved: Commission Chair Anne Tolley

Seconded: Commissioner Bill Wasley

That the Council:

a) Receives the report "2023/24 Annual Plan - Borrowing Programme".

b) Approves the borrowing resolution for the 2023/24 financial year:

i) The borrowing required for the 2023/24 financial year is $274 million (“the borrowing”). This borrowing is made up of:

· $218 million of new loans approved for the 2023/24 financial year in the 2023/24 Annual Plan

· $56 million of maturing loans during the 2023/24 financial year.

ii) The borrowing is to be secured against rates revenue of Tauranga City Council under the Debenture Trust Deed.

iii) That Tauranga City Council may also fund the capital expenditure programme and its working capital requirements from its cash reserves and other internal/external sources of funds.

c) Approves that authority is delegated to the Chief Executive and the Chief Financial Officer, subject to the Local Government Act 2022 and the Treasury Policy to:

i) Determine the details and timing of the borrowing whether in this financial year or in the future and to raise long and short term loans, whether by one or more bank facility or other facilities, or by one or more issues of stock, whether by internal funding or external, and whether by wholesale issue or by private placement to habitual investors, to yield a maximum external borrowing identified in (b)(i) above, of $274 million secured under the Debenture Trust Deed as the Chief Executive and Chief Financial Officer consider appropriate and in accordance with the Council’s Treasury Policy; and

ii) Execute all loan and security documentation in relation to the borrowing on behalf of Tauranga City Council, including any loan and/or credit agreements and stock certificates, investment statement and any other documents which Council may be required to enter into in respect of the borrowing and to give one or more certificates in respect thereof for the purposes of Section 118 of the Local Government Act in respect of Councils entry into such borrowing security or related documentation.

d) Approves that authority is delegated to the Chief Financial Officer to borrow internally to manage the funding requirements, subject to availability of internal funding and reassign approved borrowings between activities for the approved projects.

e) Approves that authority is delegated to the Chief Financial Officer to enter into interest rate risk management tractions with institutions.

Carried

At 12.33pm the meeting adjourned.

At 1.14pm the meeting reconvened.

11.6 Temporary Road Closure Report - Jazz Festival 2023

Staff Nic Johansson, General Manager: Infrastructure Services

Resolution CO4/23/9

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

That the Council:

(a) Receives the report "Temporary Road Closure Report - Jazz Festival 2023".

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

Carried

11.7 Traffic & Parking Bylaw Amendment 43

Staff Nic Johansson, General Manager: Infrastructure Services

Key points

· The amendment included some tidy ups on Tauriko Drive where there were blocked sightlines in some areas, other safety issues and the addition of time restrictions for EV parking stations as some of these were being used as carparks.

Resolution CO4/23/10

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Council:

(a) Receives the report "Traffic & Parking Bylaw Amendment 43".

(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 4 April 2023 subject to appropriate signs and road markings being implemented.

Carried

11.8 Memorial Park aquatics and indoor courts update

Staff Gareth Wallis, General Manager: Central City Development

Kelvin Eden, Capital Programme Manager: Major Community Amenity

Key points

· The project was a replacement of aging assets, with work undertaken setting up project governance and the repair consultant team. A request had gone out for a lead consultant with responses due at the end of April, with early contractor involvement to be part of the design team and buildability and to also do any ground improvement and demolition.

· The master plan would be put out in the next few weeks and an independent project manager appointed by 30 June 2023.

· The request was for capital works budget to be moved to Opex to allow the project to get to the design stage.

In response to questions

· The master planning work and consultation was expected to be completed by the end of the year.

· A design chart would be provided outlining the processes and the timing through to completion.

· In response to a query as to where in the process a decision would be made on whether to upgrade, or demolish and build, it was noted that the concept design phase would consider a new facility and the costs which would provide an opportunity to compare an updated business case. The early stages were not looking like replacement was a viable option and work was being scaled back on upgrade/refurbishment. There were leakage and seismic issues that needed to be considered. The prices for each option were likely to be similar.

· A further report with more detailed costings would be brought back to the next council meeting.

Discussion points raised

· It was noted that a deliberative decision would need to be made which was not just about the numbers but also the benefits offered by the facility.

Resolution CO4/23/11

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Council:

(a) Receives the report "Memorial Park aquatics and indoor courts update".

(b) Approves $1.15 million of 2023/24 capital budget be re-classified as operational

Carried

12 Discussion of late items

Nil

13 Public excluded session

Resolution to exclude the public

Resolution CO4/23/12

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Bill Wasley

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 20 March 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)(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

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

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

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

13.2 - Appointment of Board Members to CCO Boards 2023

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

Carried

14 Closing karakia

Commissioner Rolleston gave the closing karakia.

Resolutions transferred into the open section of the meeting after discussion

The meeting closed at 1.31 pm.

The minutes of this meeting were confirmed as a true and correct record at the Council meeting held on 1 May 2023.

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CHAIRPERSON