Agenda of Strategy, Finance and Risk Committee meeting

Terms of reference – Strategy, Finance & Risk Committee

Membership

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

Role

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

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

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

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

Membership

The Committee will consist of:

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

· the Chairperson of Te Rangapū Mana Whenua o Tauranga Moana

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

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

Voting Rights

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

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

Committee's Scope and Responsibilities

A. STRATEGIC ISSUES

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

A1 – Strategic Issues

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

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

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

o Consider existing and future strategic context

o Consider opportunities and possible options

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

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

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

A2 – Policy and Bylaws

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

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

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

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

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

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

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

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

B. FINANCE AND RISK

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

· Health and safety.

· Risk management.

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

· Internal and external audit and assurance.

· Fraud, integrity and investigations.

· Monitoring of compliance with laws and regulations.

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

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

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

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

B1 - Health and Safety

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

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

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

B2 - Risk Management

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

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

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

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

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

B3 - Internal Audit

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

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

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

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

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

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

B4 - External Audit

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

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

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

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

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

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

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

B5 - Fraud and Integrity

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

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

· Review, adopt and monitor the Protected Disclosures Policy.

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

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

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

B6 - Statutory Reporting

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

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

· Compliance with applicable legal requirements relevant to statutory reporting.

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

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

· Any decisions involving significant judgement, estimation or uncertainty.

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

· The disclosure of contingent liabilities and contingent assets.

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

· Significant adjustments resulting from the audit.

Power to Act

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

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

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

o make a rate;

o make a bylaw;

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

o adopt the LTP or Annual Plan;

o adopt the Annual Report;

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

o adopt a remuneration and employment policy;

o appoint a chief executive.

Power to Recommend

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

UNCONFIRMED Strategy, Finance and Risk Committee meeting minutes

13 May 2024

MINUTES

Strategy, Finance and Risk Committee meeting

Monday, 13 May 2024

Order of Business

1 Opening karakia. 3

2 Apologies. 3

3 Public forum.. 3

4 Acceptance of late items. 4

5 Confidential business to be transferred into the open. 4

6 Change to order of business. 4

7 Confirmation of minutes. 4

7.1 Minutes of the Strategy, Finance and Risk Committee meeting held on 25 March 2024. 4

8 Declaration of conflicts of interest 4

9 Business. 4

9.1 Tauranga Urban Design Action and Investment Plan Adoption. 4

9.2 Natural Hazard and Resilience Planning - Release of Natural Hazard Information (Coastal Flooding) 5

9.3 Approach to Preparation of Proposed Plan Change 38 - Business Land Framework. 6

9.4 Procurement Policy Review.. 7

9.5 Annual Residents Survey Report - Wave 3, 2023/24. 8

9.6 LGOIMA and Privacy Report Q3 for 2023/2024 year 9

9.7 Health & Safety Report - Q3 - January to March 2024. 9

9.8 Quarterly Financial Monitoring Report for the Nine Months to 31 March 2024. 10

9.9 Capital Programme 2023/24 3rd Quarter Update. 10

9.10 Audit New Zealand - Report to the Commissioners on the Audit of the 2024-34 Long-Term Plan. 12

10 Discussion of late items. 13

11 Public excluded session. 13

11.1 Public Excluded Minutes of the Strategy, Finance and Risk Committee meeting held on 25 March 2024. 13

11.2 Litigation Report 14

11.3 Internal Audit & Assurance - Quarterly Update. 14

11.4 Corporate Risk Register - Quarterly Update. 14

11.5 Quarterly Security Report - FY24. 15

12 Closing karakia. 15

Resolutions transferred into the open section of the meeting after discussion. 15

MINUTES OF Tauranga City Council

Strategy, Finance and Risk Committee meeting

HELD AT THE Bay of Plenty Regional Council Chambers,

Regional House, 1 Elizabeth Street, Tauranga

ON Monday, 13 May 2024 AT 1pm

PRESENT: Commission Chair Anne Tolley (Chairperson), Commissioner Shadrach Rolleston, Commissioner Stephen Selwood, Commissioner Bill Wasley, Ms Matire Duncan, Ms Rohario Murray, Mr Bruce Robertson

IN ATTENDANCE: Marty Grenfell (Chief Executive), Paul Davidson (Chief Financial Officer), Nic Johansson (Head of Transport), Stephen Burton (Acting General Manager: Infrastructure), Christine Jones (General Manager: Strategy, Growth & Governance), Alastair McNeill (General Manager: Corporate Services), Gareth Wallis (General Manager: City Development & Partnerships), Andrew Mead (Manager: City Planning & Growth), Jeremy Boase (Manager: Strategy & Corporate Planning), Carl Lucca (Team Leader: Urban Communities), Mike Naude (Director of Civic Development), Wally Potts (General Manager: Infrastructure), Neil Mason (Programme Director: Major Projects), Tom McEntyre (Team Leader: Transport Development), Geoff Barnard (Head of Department Security & Assurance), Janine Speedy (Team Leader: City Planning), Vicky Grant-Ussher (Policy Analyst), Angela Murray (Team Leader: Procurement), Kathryn Hooker (Corporate Planner), Kathryn Sharplin (Manager: Finance), Jan Pedersen (Head of People, Performance and Culture), Rich May (Health Safety and Wellbeing Manager), Kath Norris (Team Leader: Democracy Services), Amanda Davies (Manager: Spaces and Places Project Outcomes), Coral Hair (Manager: Democracy & Governance Services), Caroline Irvin (Governance Advisor), Aimee Aranas (Governance Advisor)

1 Opening karakia

A karakia was provided at the opening of the Council meeting held in the morning.

2 Apologies

Apology

Committee Resolution SFR3/24/1

Moved: Commissioner Shadrach Rolleston

Seconded: Commissioner Bill Wasley

That the apology for absence received from Dr Wayne Beilby and Mr Te Pio Kawe be accepted.

Carried

3 Public forum

Nil

4 Acceptance of late items

Nil

5 Confidential business to be transferred into the open

Nil

6 Change to order of business

Nil

7 Confirmation of minutes

7.1 Minutes of the Strategy, Finance and Risk Committee meeting held on 25 March 2024

Committee Resolution SFR3/24/2

Moved: Commissioner Stephen Selwood

Seconded: Mr Bruce Robertson

That the minutes of the Strategy, Finance and Risk Committee meeting held on 25 March 2024 be confirmed as a true and correct record.

Carried

8 Declaration of conflicts of interest

Nil

9 Business

9.1 Tauranga Urban Design Action and Investment Plan Adoption

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

Carl Lucca, Team Leader: Urban Communities

Key points

· An overview of the report was provided.

In response to questions

· With the report presented today, staff had an action plan to proactively move forward. The comments heard today would help to kick start this. There was a need to create exemplars and talk to the community and key stakeholders. Plan Change 38 would play a role in this.

· Urban design needed to be considered at all scales and all layers to obtain the desired result.

· This report provided strategic direction and once adopted, this would be the approved policy that would prompt the actions as set out in the Urban Design and Action and Investment Plan 2024-2034.

Discussion points raised

· This was an important initiative because getting urban design right was fundamental to a successful city. It would be useful to create some exemplars of what good urban design looked like to bring reality to the aspiration.

· It would be helpful to think about the people who would be living in the houses that were to be designed and how their needs could be met. This was an opportunity to engage expertise from other regions.

· There was a lack of built heritage particularly around the city over the last 30 to 40 years. What was left of this needed to be looked after and protected. The recognition of cultural elements and design was also important and how this would be reflected in the urban form.

· Things such as adequate car parking, shade in summer and light in winter were provided for in lower level urban design and also needed to be taken into account.

· It was about creating places for people to live. These aspects helped inform good urban design.

Committee Resolution SFR3/24/3

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Tauranga Urban Design Action and Investment Plan Adoption 2024-2034".

(b) Adopts the Tauranga Urban Design Action and Investment Plan Adoption 2024-2034 (Attachment A) to improve urban design outcomes in Tauranga.

(c) Delegates the Group Manager: Strategy, Growth and Governance to approve minor amendments to the Plan, if required prior to publication.

(d) Notes that the Tauranga Urban Design Strategy (2006) is superseded by the Urban Design Action and Investment Plan and approves that the Strategy be rescinded.

Carried

9.2 Natural Hazard and Resilience Planning - Release of Natural Hazard Information (Coastal Flooding)

Staff Wally Potts, Acting General Manager: Infrastructure

Natalie Rooseboom, Manager: Asset Services

Key points

· The report was taken as read.

Discussion points raised

· The Tauranga coastal flooding mapping was a great tool and provided accurate information to enable the Council’s to plan for the next ten to twenty years. The work done on this was greatly appreciated.

· This information was very important for our community to help them understand what the risks were and for future development.

Committee Resolution SFR3/24/4

Moved: Commissioner Shadrach Rolleston

Seconded: Ms Matire Duncan

That the Strategy, Finance & Risk Committee:

(a) Receives the report "Natural Hazard and Resilience Planning - Release of Natural Hazard Information (Coastal Flooding)".

Carried

9.3 Approach to Preparation of Proposed Plan Change 38 - Business Land Framework

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

Janine Speedy, Team Leader: City Planning

Key points

· A comprehensive summary of the report was provided.

In response to questions

· Staff reported back to a governance group consisting of a number of general managers from across the organisation on a monthly basis. Staff were required to report back on any critical risks that needed to be managed internally.

· Identified critical risks such as the Resource Management Act (RMA) reforms and the change in government were a ‘watching brief’. These changes were an uncertainty for policy staff in terms of how they would affect plan changes.

· Staff were yet to implement the new National Planning Standards (NPS) which required Council to have a new formatting structure for the entire city plan and use the definitions as set out in these standards. This would be a complex and critical process because of flow on affects to other chapters in the Plan Change. Staff were following up with Central Government to make them aware of this.

Discussion points raised

· Over a long period of time there was no clarity of commercial or business hierarchy in the city centre. Having this clarity was important in terms of the investment required, providing certainty around nature and scale and ensuring that ‘leakage’ did not occur when retail shops appeared in general industrial zones instead of urban centres.

· It was important not to underestimate the value of a solid evidence base in terms of development of a commercial business hierarchy as there would be a lot of interest in this from large and small firms. A solid evidence base would be fundamental to successfully implementing the plan change.

Committee Resolution SFR3/24/5

Moved: Commissioner Bill Wasley

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Approach to Preparation of Proposed Plan Change 38 - Business Land Framework".

(b) Approves the proposed Plan Change 38 – Business Land Framework objectives as follows:

i. Give effect to the NPS-UD to provide sufficient business land for different sectors (in terms of location and land use) over the short, medium, and long term to the extent practicable.

ii. Develop strategic objectives and policies for the sustainable and integrated management of commercial and industrial land to ensure planning decisions support well-functioning urban environments, now and into the future.

iii. Establish a range of prescribed commercial and industrial zones with land use frameworks to support their respective roles, including a commercial hierarchy.

(c) Notes that regular progress updates will be provided to the relevant committee as the plan change progresses with the next significant milestone being options presented for direction in early 2025.

Carried

9.4 Procurement Policy Review

Staff Alastair McNeil, General Manager: Corporate Services

Vicky Grant-Ussher, Policy Analyst

Angela Murray, Team Leader: Procurement

Key points

· A summary of the report was provided.

In response to questions

· It was important to make sure the policy reflected what staff were doing in terms of managing the life cycle of procurement.

· The modern slavery aspect had been highlighted by Council’s Risk Team in terms of legislation that had been progressing through the previous Government and included extreme breaches of employment standards. Staff would be proactive in alerting the authorities if it became aware of any such breaches.

Discussion points raised

· There was now a lengthy process to go through when selecting a product to ensure that it had not been obtained through modern slavery practices.

Committee Resolution SFR3/24/6

Moved: Mr Bruce Robertson

Seconded: Commissioner Bill Wasley

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Procurement Policy Review".

(b) Approves the following amendments to the procurement policy:

(i) Lift the value at which procurements must have a documented procurement plan authorised by the procurement team, the person with delegated financial authority for the contract and relevant senior manager (tier three or above) from $100,000 to $250,000 (policy clause 6.7.4).

(ii) Lift the chief executive’s delegation to approve an exemption from open competition from $500,001 to $3 million (policy clause 6.5).

(iii) Create a new category of general manager approval for an exemption from open competition for projects $250,001 - $500,000 (policy clause 6.5).

(iv) Clarify that if the council becomes aware of, or suspects, modern slavery or a breach of employment standards we will alert the appropriate authorities (policy clause 6.7.6).

(v) Clarify that the council (or appropriate council committee) may, by resolution, set targets, or mandatory requirements for procurement for the purpose of achieving broader outcomes (policy clause 6.2.5).

(vi) Clarify that to achieve public value council will monitor the performance of suppliers to ensure they are delivering on expected outcomes (policy clause 6.1.4).

(vii) Clarify that the procurement policy does not apply to development agreements and instead procurement expectations for developers will be set out in the development agreement (policy scope).

(viii) Update material within the policy to reflect updates to the strategic direction, relevant legislation and minor edits to improve readability (policy clause 4.1, 6.1.4, 6.2.4, 6.2.5, 6.7.6 and references section).

(d) Delegates any minor or presentational changes required to the policy prior to the publication of the policy to the General Manager Corporate Services.

Carried

9.5 Annual Residents Survey Report - Wave 3, 2023/24

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

Kathryn Hooker, Corporate Planner

Key points

· A summary of the report was provided.

Discussion points raised

· The results of the third wave survey report underlined how long and deep it was necessary to communicate and much of the sentiment was driven by perception. It took a long time for perception to change and it would be a matter of watching this space for some time to come.

Committee Resolution SFR3/24/7

Moved: Commissioner Stephen Selwood

Seconded: Ms Rohario Murray

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Annual Residents Survey Report - Wave 3, 2023/24".

Carried

9.6 LGOIMA and Privacy Report Q3 for 2023/2024 year

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

Kath Norris, Team Leader: Democracy Services

Key points

· The number of requests was increasing slightly each quarter however the number of days to resolve these had reduced.

In response to questions

· There were currently six active Ombudsman investigations. Four of these were from the last quarter where staff were providing information as requested and waiting for the outcomes.

Committee Resolution SFR3/24/8

Moved: Commissioner Bill Wasley

Seconded: Mr Bruce Robertson

That the Strategy, Finance and Risk Committee:

(a) Receives the report “LGOIMA and Privacy Report Q3 for 2023/2024 year.

Carried

9.7 Health & Safety Report - Q3 - January to March 2024

Staff Alastair McNeil, General Manager: Corporate Services

Jan Pedersen, Head of People, Performance and Culture

Rich May, Health Safety and Wellbeing Manager

Key points

· The Commissioners and Executives support of the Safety Programme throughout the quarter was appreciated.

· The skate park would be opened on 29 May. The Health and Safety risk assessments that were carried out were very comprehensive and staff were very pleased to be able to deliver this project to the general public without any major incidents to report.

In response to questions

· The event category security/trespass/criminal activity/terrorism/damage had increased predominantly through the libraries in terms of bad behaviour and trespass.

Committee Resolution SFR3/24/9

Moved: Ms Matire Duncan

Seconded: Commissioner Stephen Selwood

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Health & Safety Report - Q3 - January to March 2024".

Carried

9.8 Quarterly Financial Monitoring Report for the Nine Months to 31 March 2024

Staff Paul Davidson, Chief Financial Officer

Susan Braid, Finance Lead Projects Assurance

Kathryn Sharplin, Manager: Finance

Key points

· A summary of the report was provided.

Committee Resolution SFR3/24/10

Moved: Mr Bruce Robertson

Seconded: Commissioner Stephen Selwood

That the Strategy, Finance and Risk Committee:

(a) Receives the report "Quarterly Financial Monitoring Report for the Nine Months to 31 March 2024".

Carried

9.9 Capital Programme 2023/24 3rd Quarter Update

Staff Alastair McNeil, General Manager: Corporate Services

Mike Naude, Director of Civic Development

Amanda Davies, Manager: Spaces and Places Project Outcomes

Wally Potts, General Manager Infrastructure

Tom McEntyre, Team Leader: Transport Development

Neil Mason, Programme Director: Major Projects

Capital Programme Budget and Spend - Alastair McNeil

· At the end of Financial Quarter 3, there was approximately $200M of underspend to get through in three months. At the forecasted rate, Council would not hit where it thought it would.

City Centre and Civic Programme - Mike Naude

· A Letter of Intent had been issued regarding the Cameron Road Indoor Courts for the contractor to pre-purchase materials.

· All the top 5 projects/programmes were within scope. The Memorial Park Aquatic Facility project completion date had been revised in accordance with the Long Term Plan.

· Prices were coming back in the market, trades were less busy and looking for work which was advantageous to Council in terms of construction, a consenting strategy was being worked through and the constraints on the sub-contractor market were starting to become a lower risk.

· Highlights included the living seawall at Strand North, Memorial Park Aquatic Facility Concept Design, 90 Devonport Road internal fit out, Tunks Reserve Cultural Lighting and Library and Community Hub load bearing platform.

· There had been a lot of interest generated in the living seawall. Waikato University’s Marine department had done a lot of work with the pods. This had proven to be an excellent educational initiative.

Spaces and Places – Amanda Davies

· Council was tracking well in terms of delivery this year.

· Four out of five of the top 5 projects were substantially completed or had been completed. There had been a slight delay in getting underway at the Gordon Spratt Reserve but was now fully in construction.

· Top risks included inflation, cost escalation, Council project cross-interdependencies and procurement methodologies.

· Cultural installations had been placed at Maranui Lane and the site had been blessed.

· A blessing had been held at the Kopurererua Valley Stream realignment site to open the northern alignment.

· A blessing had been held at the Gordon Spratt Community Sports Pavillion. The construction contractor was well into the build of the facility.

City Waters – Wally Potts

· The revised programme was tracking to be on target.

· For the most part, the top five projects were tracking well.

· There had been a lot of changes with legislation and water reforms recently which made future work programmes uncertain. Staff were putting together teams to look at how they could successfully achieve ‘Local Water Done Well’.

· A graduate programme to recruit younger people to become project managers had been set up and was doing well.

· Highlights included Te Maunga Clarifier 3 Piling Progress, Evans Road Culvert completion, Opal Drive to Te Maunga Rising Main, first lift of preload for Dam 5, Tautau Rising Main in service and palm Beach Culbert Upgrade.

In response to questions

· The Te Maunga desludging had been completed and the trenches had been covered and left to stabilise. An impervious cover would then be put over this and it would eventually be covered in grass.

Discussion points raised

· Staff needed to make sure that the timing of the Opal Drive pump station and a private development aligned.

Transport – Tom McEntyre

· The Arataki Bus project was released for tender on 10 May and closed on 31 May with the award of contract to occur mid-June. Staff were working closely with adjacent landowners to finalise the mitigation arrangements and were looking forward to getting the work underway.

· The Links Avenue resurfacing was close to being completed. There were still garden works and cycle separators to be installed as well as some work on the entrances to the football fields. The concrete road aspects and line markings had been completed.

· Highlights included Maunganui Road Stage 3 safety upgrades completion, and the dawn blessing marking the completion of Cameron Road Stage 1 upgrade.

Transport Major Projects - Neil Mason

· The largest deviation in the cash management was based on Tauriko West for this period, driven by late access and contract negotiations with the NZTA. A winter earth works consent had been granted to solve the delay in starting. Staff were working with contractors in terms of the material change and the extra cost involved now, to prevent the potential of a significant extension of time claim in the spring.

· The commercial director of Downers met with Mr Mason in person last week to discuss the incentives programme regarding the Tauriko West Enabling Works and how much risk could be incurred if the programme was accelerated. Both parties agreed to pursue the initiative more.

· The Turret Road 15th Ave Multimodal had to be descoped in conjunction with the draft Government Policy Statement (GPS). Mr Mason had met with iwi and Hapu representatives to explain the challenges and our intention to come up with a solution for the Welcome Bay connection alternative.

In response to questions

· The three lane tidal system was still under review for scale of benefit in the business case. This tied in with the Hairini Street bus lane issue. The business case would be brought to Council next week. Staff were working towards creating a picture for the business case that would fall in line with the GPS.

Wider Programme – Nic Johansson

· The ‘Low Cost Low Risk’ Safety Team had managed to get substantial funding through the National Land Transport Plan and were now delivering a vast range of improvements across the network. This had taken several years of planning but the fruits of it were now being seen this year which was a great result. The challenge now was for the shift in the GPS not to have too much of an impact on the community.

· Of note was that the Network Outcomes Team had done a great job pulling resources together to get bitumen supply for maintenance contractors to keep up with work to be completed.

Committee Resolution SFR3/24/11

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

That the Strategy, Finance and Risk Committee:

(a) Receives the presentation ‘Capital Programme 2023/24 3^rd Quarter Update’.

Carried

9.10 Audit New Zealand - Report to the Commissioners on the Audit of the 2024-34 Long-Term Plan

Staff Paul Davidson, Chief Financial Officer

Kathryn Sharplin, Manager: Finance

Josh Logan, Team Leader: Corporate Planning

Key points

· The report was taken as read.

Discussion points raised

· What had been raised in the report was no surprise. The risks associated with minimal debt headroom had been a struggle, and the re-evaluation of Three Waters did not help the situation. There was uncertainty of delivery with capital programmes in terms of sheer size and ability to deliver and uncertainty over funding sources for the proposed community stadium which was a long way out in the Longer Term Plan.

Committee Resolution SFR3/24/12

Moved: Commissioner Stephen Selwood

Seconded: Commissioner Shadrach Rolleston

That the Strategy, Finance and Risk Committee:

(a) Receives the report ‘Audit New Zealand – Report to the Commissioners on the Audit of the 2024-34 Long-Term Plan’.

Carried

10 Discussion of late items

Nil

11 Public excluded session

Resolution to exclude the public

Committee Resolution SFR3/24/13

Moved: Commissioner Bill Wasley

Seconded: Commissioner Stephen Selwood

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

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

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
11.1 - Public Excluded Minutes of the Strategy, Finance and Risk Committee meeting held on 25 March 2024	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(i) - The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(d) - The withholding of the information is necessary to avoid prejudice to measures protecting the health or safety of members of the public s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege s7(2)(h) - The withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - The withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
11.2 - Litigation Report	s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege s7(2)(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
11.3 - Internal Audit & Assurance - Quarterly Update	s6(b) - The making available of the information would be likely to endanger the safety of any person s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(d) - The withholding of the information is necessary to avoid prejudice to measures protecting the health or safety of members of the public s7(2)(g) - The withholding of the information is necessary to maintain legal professional privilege s7(2)(j) - The withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
11.4 - Corporate Risk Register - Quarterly Update	s7(2)(b)(i) - The withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(h) - The withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - The withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	s48(1)(a) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
11.5 - Quarterly Security Report - FY24	s7(2)(c)(ii) - The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest	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

12 Closing karakia

Commissioner Shadrach Rolleston closed the meeting with a karakia.

The meeting closed at 3.26pm.

The minutes of this meeting were confirmed as a true and correct record at the Strategy, Finance and Risk Committee meeting held on 11 June 2024.

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

Commission Chair Anne Tolley

CHAIRPERSON

[1] Note that while there are 56 outcome measures in the Long-term Plan, three of them are duplicates (because they have been identified under more than one outcome) and therefore the attached baseline report includes 53 measures. The LTP duplicates (see page 125 onwards here) are ODM10 and ODM 30; ODM16 and ODM 33; and ODM 42 and ODM47


AGENDA Strategy, Finance and Risk Committee meeting Tuesday, 11 June 2024
I hereby give notice that a Strategy, Finance and Risk Committee meeting will be held on:
Date:	Tuesday, 11 June 2024
Time:	2pm
Location:	Tauranga City Council Ground Floor Meeting Rooms 1 & 1b 306 Cameron Road 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