Agenda of City Development Committee

9 28 February 2017

City Development Committee

30 January 2017

File: (17/96)

Report no: CDC2017/1/62

Review of Rates and Development Charges Remissions Policies

Purpose of Report

1. This report seeks a recommendation to Council to approve the draft Part 5 of the Rates Remission Policy “Rates Remission & Grants for Economic Development Policy” and draft Part 6 of the Rates Remission Policy “Hutt City Development Charges and Rates Remission Policy” for consultation in the Draft 2017/18 Annual Plan, to continue the role of Development Liaison Manager for a further 3 years and to include sufficient funding in the period 2017/18 to 2019/20 to fund the remissions, manager role and marketing of the policy.

Recommendations

That the Committee:

(i) notes that Council, in support of its strategies and plans, has put in place policies to encourage economic development and development activity in the City. These are:

· Part 5 Rates Remission Policy - Rates Remission for Economic Development; and

· Part 6 Rates Remission Policy - Central Business District Development Charges and Rates Remissions Policy; and

· Hutt City Development Charges Remission Policy;

(ii) notes the success of the existing policies to date of encouraging new development activity and business activity;

(iii) notes it is proposed to amend the Part 5 Rates Remission Policy - Rates Remission for Economic Development to also include grants for qualifying businesses, applicable from 1 July 2017;

(iv) notes the Hutt City Development Remissions Policy and the Part 6 Rates Remission Policy - Central Business District Development Charges and Rates Remissions Policy both expire on 30 June 2017. It is proposed to amalgamate these two policies into a single document being a new Part 6 Rates Remission Policy, make some amendments and apply the amended policy for a further period of three years from 1 July 2017 to 30 June 2020;

(v) notes the current fixed term role of Development Liaison Manager that promotes, administers and manages the application of the policies with the development and business communities, ends with the expiry of the policies. It is proposed that the fixed term of this role be extended by 3 years;

(vi) notes a current marketing fund is utilized to promote the current policies to the business and development communities. It is proposed that the marketing fund be continued for a further 3 years;

(vii) notes that with the extension of remissions to 30 June 2020 it is proposed that a new budget allocation of $1M per annum for each of 2017/18, 2018/19 and 2019/20 be included in the Draft 2017/18 Annual Plan;

(ix) notes that with the extension of remissions to 30 June 2020 it is proposed that the role of Development Liaison Manager and the marketing of the remissions be continued for a further 3 years and that a total budget allocation of $390,000 be included in the 2017/18 Proposed Annual Plan for these purposes;

And recommends that Council:

(x) approves the draft Part 5 of the Rates Remission Policy “Rates Remission & Grants for Economic Development Policy” attached as Appendix 1 to the report and the draft Part 6 of the Rates Remission Policy “Hutt City Development Charges and Rates Remission Policy” attached as Appendix 2 to the reportfor consultation in the 2017/18 Proposed Annual Plan;

(xi) notes the new budget allocation of $1M per annum for each of 2017/18, 2018/19 and 2019/20 be included in the 2017/18 Proposed Annual Plan for the remissions; and

(xii) notes that the role of Development Liaison Manager and the marketing of the remissions be continued for a further 3 years and that a budget allocation of $390,000 in total for the 3 years be included in the 2017/18 Proposed Annual Plan for these purposes.

Background

2. Council has adopted a number of strategies and plans to grow the city economically in support of its vision for economic development in the city - to “Grow the Wealth of the City”.

3. In support of Council’s strategies and plans Council has put in place policies to encourage economic development and development activity in the City. These are:

· Part 5 Rates Remission Policy - Rates Remission for Economic Development (adopted 2003 - last revised 2014); and

· Part 6 Rates Remission Policy - Central Business District Development Charges and Rates Remissions Policy (2012 - revised 2014); and

· Hutt City Development Charges Remissions Policy (2012).

4. It is proposed to amend the Part 5 Rates Remission Policy - Rates Remission for Economic Development to also include grants for qualifying businesses, applicable from 1 July 2017. The revised Policy will be entitled “Rates Remission & Grants for Economic Development” the draft of which is attached as Appendix 1.

5. The Hutt City Development Remissions Policy and the Central Business District Development Charges and Rates Remissions Policy both expire on
30 June 2017. It is proposed to amalgamate these two policies into a single document being a new Part 6 Rates Remission Policy, make some amendments and apply the amended policy for a period of three years from 1 July 2017 to 30 June 2020. The new Part 6 will be entitled “Hutt City Development Charges and Rates Remissions Policy”, a draft of which is attached as Appendix 2.

6. The current fixed term role of Development Liaison Manager, which promotes, administers and manages the application of the policies with the development and business communities, ends with the expiry of the policies. It is proposed that the fixed term of this role be extended by 3 years.

7. A current marketing fund is utilized to promote the current policies to the business and development communities. It is proposed that the marketing fund be continued for a further 3 years.

Discussion

Proposed New Part 5 Rates Remission Policy - Rates Remission and Grants for Economic Development

8. Council adopted the current Part 5 Rates Remission Policy - Rates Remission for Economic Development in 2003, and last revised May 2014.

9. It is proposed to change this Part of the Policy as follows:

i. Add Grants for Economic Development

ii. Add Criteria and Guidelines for applications; including 4 mandatory criteria that must be met

10. The proposed changes are outlined in the tracked changes version of the Policy attached at Appendix 1.

11. It is proposed to add grants for economic development to enable Council to incentivise the location of new jobs in the city into existing buildings and premises.

Proposed New part 6 Rates Remission Policy - Hutt City Development Charges and Rates Remissions Policy

12. The current Hutt City Development Charges Remission Policy and the Central Business District Development Charges and Rates Remissions Policy expire 30 June 2017. These policies offers remission of development charges for certain types of development city-wide and in addition rates remissions for qualifying developments in the CBD.

13. At 31 December 2016, 100 applications for remission under the City-Wide Policy and 10 applications under the CBD Policy had been approved. $3.1M has been remitted in fees and rates to date. Nearly $250M of new development has been encouraged since these remissions were introduced in 2012, providing rates income of approx. $1.3M per annum.

14. Council’s Urban Growth Strategy aims for at least 6000 new dwellings in the city by 2032; an average of 300 each year of the 20 year strategy. Whilst building completion rate is increasing toward s this average, and well above historic rates, we are yet to meet this average. The table below shows how many dwellings are completed since the policies were introduced.

15. We are however seeing an exponential increase in building consents being issued for new dwellings. The graph below shows this increase in comparison to 3 other councils in the Wellington Region. With a lag between consent being issued and a dwelling being completed the number of completed dwellings should also continue to increase.

16. This data would appear to indicate that the current development charges remissions policies have worked in stimulating development. However with increased levels of growth required to meet the Urban Growth Strategy target it is recommended that the policies be continued for a further 3 years to 30 June 2020.

17. Anecdotal evidence suggests that the professional development community has been influenced by the remissions policy, in particular with greater intensity of residential dwelling construction and recent new commercial builds within the CBD.

18. Anecdotal evidence suggests mum and dad developers have been encouraged many to undertake developing 3 units on their land rather than just 2.

19. Continuing these policies is seen as important to encourage even more development in Lower Hutt and to ensure we meet our Urban Growth Strategy target.

20. Two additional areas we are keen to encourage redevelopment are Wainuiomata Mall and Naenae Shopping Centre. Allowing qualifying developments to receive rates remissions in a similar way to the current Lower Hutt CBD policy would make it more attractive to redevelop these town centres which service wider areas critical for future urban growth.

21. Encouraging more hospitality venues to establish in the Lower Hutt CBD would help make it a more desirable place to visit. Setting up a restaurant/café/bar is expensive; to help offset some of the costs we have included restaurant/café/bar in the definition of a Commercial Development.

22. To ease administration and promotion of the current 2 policies it is proposed to combine them into a single policy entitled Part 6 Rates Remission Policy - “Hutt City Development Charges and Rates Remission Policy”. The proposed policy is outlined in the tracked changes version of the policy attached as Appendix 2. The main changes are:

· Extension of the time period for qualifying developments until 30 June 2020; and

· Inclusion of restaurant/café/bar activity in the definition of Commercial Development

· Inclusion of rates remissions for qualifying developments of Wainuiomata Mall and Naenae Shopping Centre.

· The potential requirement of a guarantee.

· Minor wording changes for clarity.

Options

23. The Committee may recommend that either:

· the proposed draft policies as attached as Appendix 1 and Appendix 2 and the proposed financial considerations be approved by Council for consultation in Council’s 2017/18 Proposed Annual Plan; or

· the proposed draft policies as attached as Appendix 1 and Appendix 2 and the proposed financial considerations be approved with amendments by Council for consultation in Council’s 2017/18 Proposed Annual Plan; or

· the proposed draft policies as attached as Appendix 1 and Appendix 2 and the proposed financial considerations NOT be approved by Council for consultation in Council’s 2017/18 Proposed Annual Plan.

24. Officers recommend that the proposed draft policies are approved for consultation in the 2017/18 Proposed Annual Plan. Council has the opportunity to adopt, amend or revoke the policies after consultation.

Consultation

25. The draft Part 5 of the Rates Remission Policy “Rates Remission & Grants for Economic Development Policy” and draft Part 6 of the Rates Remission Policy “Hutt City Development Charges and Rates Remission Policy” and the financial considerations of these, if approved for consultation by Council, will be consulted on in the 2017/18 Proposed Annual Plan.

Legal Considerations

26. Under Section 85 of the Local Government (Rating) Act 2002 a local authority may remit all or part of the rates on a rating unit only if the local authority has adopted a rates remission policy under Section 109 of the Local Government Act 2002 and the local authority is satisfied that the condition and criteria in the policy are met.

27. If a policy is adopted the policy must be reviewed at least once every six years using a consultative process.

Financial Considerations

28. It is proposed that with the extension of remissions to 30 June 2020 that a new budget allocation of $1M per annum for each of 2017/18, 2018/19 and 2019/20 is included in the 2017/18 Proposed Annual Plan.

29. It is proposed that with the extension of remissions to 30 June 2020 that the role of Development Liaison Manager and the marketing of the remissions be continued for a further 3 years and that a total budget allocation of $390,000 be included in the 2017/18 Proposed Annual Plan for these purposes.

Other Considerations

30. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it will help provide good quality local infrastructure and encourage economic development. It does this in a way that is cost-effective because it is administratively easy and is offset by the expansion of the rating base of the city.

Appendices

No.	Title	Page
1 ⇩	Draft Part 5 - Rates Remission Policy Rates Remission and Grants for Economic Development - January 2017	16
2 ⇩	Draft Part 6 - Rates Remission Policy - Hutt City Development Charges and Rates Remission Policy - January 2017	21

Author: Parvati Rotherham

Development Liaison Manager, Lower Hutt Science Centre

Author: Gary Craig

Divisional Manager City Development

Reviewed By: Kim Kelly

General Manager, Strategic Services

Approved By: Brent Kibblewhite

Chief Financial Officer

Area of Focus 1 – Grow Science, Technology, Engineering and Manufacturing Businesses
Provide improved infrastructure and amenity for science, technology, engineering and manufacturing businesses to establish and grow in Lower Hutt.	Assist Council with the promotion and managing of the annual Technology Valley Awards or similar programme. Assist Council to grow the annual Hutt STEMM Festival promoting science, technology, engineering, manufacturing and maths to eventually become a national event. Advocate with Government Ministers, MP’s and agencies on development of the Gracefield Innovation Precinct occupied by Callaghan Innovation and Victoria University. Promote the establishment of other citywide technology requirements e.g. UFB; Wi-Fi Sense. Participate in a feasibility study for establishment of a makerspace/Techshop type facility/activity to support local businesses and advocate for its establishment in Lower Hutt.	2015 onwards 2015 onwards 2016 onwards 2016 onwards Start 2016	Success of Event Meet growth target for event as determined between HCC and HVCoC Future development of the Callaghan Innovation precinct Further technology trials in Lower Hutt Makerspace/improved access to technology hardware in Lower Hutt	The Chamber team have worked with HCC Officers providing support, marketing and advertising to help make this event an ongoing success. 2016 was hosted in Seaview’s old Ford factory and was just brilliant and very well received by all in attendance. The annual STEMM festival is going from strength to strength each year, the Chamber team work as enablers alongside Business and HCC creating the fantastic uptake and participation. The Chamber is advocating at any opportunity and interaction with central Government and continues to push for greater enhancement and upgrades to make the Callaghan precinct a more attractive asset to the City. The Chamber works actively with key stakeholders to enable and establish greater uptake and participation of Tech requirements especially in the UFB and Wifi space. The Chamber is a keen participant in the advocacy of makerspace and techshop facilities and is engaged in the feasibility studies of this opportunity with both Business and Council.

Attachment 1

Report on Work Plan HVCoC 2016-2017 - as 31 Dec. 2016

Area of Focus 1 – Grow Science, Technology, Engineering and Manufacturing Businesses
Objectives	Actions	Timing	Measure	HVCC Commentary
Grow the number and size of science, technology, engineering and manufacturing businesses in Lower Hutt	Promote Technology Valley Inc. entity and activities through Chamber channels Support Technology Valley Inc. through the provision of secretariat services and other support as required. Hold regular events showcasing Hutt based technology companies Promote Council’s Incentivises for specific science, technology, engineering and manufacturing businesses to move to/stay in Lower Hutt. Leverage off our international relationships with Tempe (USA), Minoh, Japan and Taizhou, China; and through local embassies etc. to develop business opportunities and investment in the city. Promote high value sectors including research, science and technology. Promote science, technology, engineering, and manufacturing sectors and businesses in the city. Encourage Government Ministers, MP’s and senior Govt. staff to visit Hutt’s STEM businesses and agencies to increase recognition of Hutt City as a centre of STEM.	Ongoing Ongoing 2016-2017 2016/17 onwards Ongoing Ongoing Ongoing	Successful establishment of TV brand and activities Provision of secretariat services No of events Additional investment in STEM businesses Ongoing – 2017 potential China visit planned Participation of Chamber and business community in international relationship opportunities Use of Chamber channels to promote STEM sectors and businesses No. of visits by Govt. officials.	The Chamber maintains the data base, communications and promotion of Tech Valley Inc in addition to providing support & secretariat functions. The Chamber hosts regular BA5’s Tech series of events throughout the year The promotion of Councils incentives for STEM related businesses and opportunities are an ongoing part of Chamber correspondence & communication with our networks, contacts and businesses throughout the year. The leveraging of International relationships, sister cities and growth opportunities will be worked on by project with council through 2017 and a potential China visit planned. The Chamber continues to promote Hutt City and STEMM sectors as a high end opportunity for staying here and also locating here in the Hutt amongst its networks and contacts The Chamber has very solid and active relationships with Central Government, Ministers and MP’s and hosts them on a regular basis. We also ensure business visitation by both the Government and opposition MP’s to our Hutt based Businesses on a regular basis.

Area of Focus 1 – Grow Science, Technology, Engineering and Manufacturing Businesses
Objectives	Actions	Timing	Measure	HVCC Commentary
Increase the percentage of Research and Development (R&D) spend in local science, technology, engineering businesses	Investigate with businesses opportunities for improving R&D expenditure and increasing R&D activity in local high/medium tech businesses Assist Callaghan in connecting with local businesses to capitalise on R&D	2016/17 2016 onwards	Use Chamber surveys to determine opportunity for increased R&D activity and improved R&D expenditure Improved connection between Callaghan Innovation and Lower Hutt business community	The Chamber regularly surveys its members on topics, in addition to our quarterly surveys. Results from these are shared, published sent to media and followed up and feedback on as we look for the opportunities and voice the opinions of Businesses and members. The Chamber does refer business through Callaghan innovation and is trying very hard to improve relations and connections. This requires ongoing work and continued follow up due to the constant re-structuring and staff changes that Callaghan have been undergoing for the past couple of years.

Council Officer Commentary

TVA & STEMM Festival – The Chamber’s marketing of this event to members and the broader business community were key to ensuring high levels of participation in 2016 and will again be critical to the success of the multiple events in the two week long 2017 festival currently being planned for May.

1^st Assembly – The Chamber hosted a Business After 5 at 1^st Assembly in High Street to showcase the CHQ/Council technology start-up hub and its tenant businesses.

BNZ Technology Series – the Chamber continues this series showcasing Hutt Valley technology and science based businesses. Despite now running for several years they are still finding new technology businesses to feature (3 at each meeting). These are well attended events showcasing world class businesses and entrepreneurs resident in the Hutt Valley.

The Chamber continues to advocate for the redevelopment of the Callaghan Innovation Gracefield campus and uses the opportunity of its regular political series to do this with leaders of various parties and ministers of the government.

The Chamber CEO has been a foundation member of the Hutt Science advisory board, regularly attends those meetings and has assisted with avenues for possible business support for the programme.

The Chamber has been instrumental in connecting the Council and business community with Young Enterprise Trust to enable a new event introducing business mentors to the YET programme Hutt based school teams.

Area of Focus 2 – Rejuvenate the CBD
Objectives	Actions	Timing	Measure	HVCC Commentary
Increase the number of jobs in the CBD	Support the establishment of a hotel in the CBD to support the increased demand for bed nights generated from activity in the new events centre Support and participate in initiatives to improve the amenity of the central CBD to attract businesses e.g. smart tech building precinct, improvements to the urban environment including promoting walking and cycling access, public art Support and promote the establishment of shared working spaces in the CBD Support the CBD Development manager to fill office space via targeted approaches to possible tenants and through working with building owners and developers	2016 2017 onwards 2015 onwards 2016 onwards	Successful establishment of more accommodation in the CBD Participation and representation in initiatives Work with Council on promotion and establishment of shared workspaces Participation and promotion of initiatives to fill CBD office space	The Chamber provides support to Council and the Business community to generate establishment and uptake of both the Hotel and Events centre The Chamber is very active in its support and participation to improve the amenity value of the CBD, and works alongside Officers and stakeholders in this regard. Chamber Team work well with City development team, developers, landlords and businesses regards to tenancy’s and opportunity.
	Support the CBD Development Manager’s retail focussed promotions Promote and support Council’s About Space and Business Boot Camp programmes Help Council lobby central government Ministers and MP’s and agencies with regards to moving central government jobs to Lower Hutt	Ongoing 2016 onwards Ongoing	Promotion of retail focused promotions Participation in and promotion of Business Boot Camp programmes Relocation of central government jobs to Lower Hutt	Chamber promotes all CBD officers initiative’s through its network as they arise Chamber works with City development officer on programs actively p promoting and hosting them throughout the year Chamber Team works with Gary Craig and his team to ensure every opportunity for nay crown job relocation has the Hutt on its radar as a destination.

Area of Focus 2 – Rejuvenate the CBD

Objectives

Actions

Timing

Measure

Commentary

Increase the number of people living in the CBD

Advocate for and promote enhanced public transport links to and from the CBD

Encourage business responses to Council’s review of the Transport Chapter of the District Plan to recognise and plan for public and active modes of travel in the CBD and look at parking requirements for new and redeveloped apartments in the CBD

Promote and support Council’s CBD events programme

Provide business input into the review by Council whether to continue to provide 5 years rates remission for residential/commercial development in the CBD

Participate in feasibility study for establishing student accommodation in the CBD

2016 onwards

2016

2016 onwards

2016-2017

Improved public transport links to/from CBD

Chamber channels used to encourage submissions from the business community

Use of Chamber channels to promote CBD events

Use Chamber surveys, forum and channels to provide business views on continuation of development incentives

Active participation in Council feasibility study

The Chamber holds and hosts Transport forums as required and is very active in its submissions as a result and encourages actively the views of businesses also be put across jointly & Individually

Chamber does this actively and on an ongoing basis

Chamber tailors surveys to members asking for feedback on relevant topics to aid a business participation and view

Ongoing 2017

Area of Focus 2 – Rejuvenate the CBD

Objectives

Actions

Timing

Measure

HVCC Commentary

Increase Council investment in the CBD

Partner with Council to help promote and implement Making Places projects including:

· Business Boot Camp

· 1^st Assembly

· Kai on High Street (food trucks)

· Making Spaces (pop up retail and F&B)

Advocate for and promote awareness across the business community the Riverlink project development including flood protection by GWRC, establishment of a promenade by Council with adjacent apartments/commercial space and improved connection to the CBD by NZTA.

Promote awareness to the business community of Council’s programme of investment in the CBD including;

· new Events Centre and Hotel

· Riddiford Gardens as a key part of the Civic Precinct

through use of focus groups, hosting workshops for the business community and generating responses from the business community.

Ongoing

2015-17 consult

2018-2022 build

2017

Maintain participation rates and improve quality of applicants

Use Chamber surveys, forum and channels to provide business views and input on Riverlink project

High level of awareness within the business community of Council’s investment programme

· Chamber Team are active contributors, Participants and hosts, partnering with Council teams over all initiatives.

· Chamber participation, Input and responsiveness is high with HCC, NZTA, GWRC and the wider community. We host, Facilitate, feedback, survey and advocate.

· As above

Council Officer Commentary

EQNov16 – The Chamber staff team provided substantive assistance to Council in the immediate recovery stage of the EQ meeting with Government agencies and lobbying local MP’s to extend the business subsidy to businesses in Lower Hutt impacted by cordons and closures following the earthquake. Then once the subsidy was confirmed by Govt. assisting Council contact up to 80 businesses to advise of the subsidy and the application process.

The Chamber also provided premises for the establishment of a Govt. agency hub for Hutt based businesses to meet with the relevant Govt agencies that could assist with their situation.

The Chamber hosted the business breakfast for Council to relay the results of the Free Parking trial in the CBD to the business and retail community and have a discussion with the business and retail leaders in regard to the results.

The Chamber continues to use its strong political connections to advocate to the Govt. and other political leaders the relocation of Government services and offices to Lower Hutt in support of CBD rejuvenation and fulfilling the aspiration of Council’s Making Places 2030 Plan

The Chambers marketing channels are used to promote Council events and programmes and the CEO is involved in the Business Boot Camp Lion’s den.

The Chamber provides continued support for the development of the Events centre and associated hotel in the CBD as generators of economic activity and renewal of the city’s facilities.

A Chamber BA5 event was held to showcase 1^st Assembly shared work space and technology start-up Hub In last quarter 2016.

Council will be seeking business views for its 2017-2018 Draft Annual Plan matters impacting business e.g. development fee and rates remission extension and using the Chamber to use its reach to canvass the business community.

Riverlink Project – as this project nears final design stage and Council approvals the Chamber will be instrumental in achieving broad understanding in the business community of this project and the implications for the CBD and business community in the city.

Area of Focus 3 – Stimulate Development & Growth

Objectives

Actions

Timing

Measure

HVCC Commentary

Increase the number of commercial and industrial developments in Lower Hutt.

Assist where appropriate to facilitate timely redevelopment of large, relevant sites e.g. ex- Housing New Zealand land, Wainuiomata Mall

Identify and introduce property and business owners (including Iwi) to Council to look at opportunities for relocation to or development in the city.

Advocate on infrastructure development to regional and national leaders and agencies including the Cross Valley Link to improve traffic movements across the Valley, facilitate access to Seaview/Gracefield and support the Petone Vision mixed development and amenity.

Ongoing

2016/18 - investigate and design

2024-2027 - build

Involvement in development opportunity discussions with Council and developers

Introduction of property and business owners

Submissions made.

Use of Chamber surveys, forum and channels to provide business views on infrastructure development in the city and wider region.

· This work is ongoing with the Chamber contributing fully when and where possible and as opportunities present.

· Chamber is a great conduit for introductions to Council Officers and connecting opportunity through to Council with property & Business owners as it presents.

· The Chamber is very active in its views/submissions to agencies on Infrastructure not only for the city but the wider region.

Area of Focus 3 – Stimulate Development & Growth

Objectives

Actions

Timing

Measure

HVCC Commentary

Support and incentivise development and developers in Lower Hutt

Promote the Development Incentives for CBD and wider Lower Hutt until 2017 and after if continued.

Promote the Rates Remissions for Economic Development across the city

Promote the Development Liaison Manager role to developers and other parties and after if continued.

Promote awareness within the business community of proposed and recently adopted District Plan changes. Keep Council abreast of business community perceptions of RMA and consenting issues.

Ongoing to 2017

Ongoing

Ongoing to 2017

Ongoing

Use of Chamber channels to promote Development Incentives for CBD and wider Lower Hutt

Use of Chamber channels to promote rates remission across the city

Use of Chamber channels to promote Development Liaison role

Use Chamber surveys, forum and channels to provide business views and input on District Plan changes affecting business

· The Chamber uses its network and reach to ensure Councils voice, Incentives, remissions and opportunities are being seen, heard or read as required.

· The Chamber will run specific targeted or pointed survey as required to gather information on topics relevant the keeping the Council informed of the views and issues facing the business sectors and wider community

Area of Focus 3 – Stimulate Development & Growth
Objectives	Actions	Timing	Measure	HVCC Commentary
Support for council led rejuvenation and integrated facilities developments in the wider city.	Support Council and CCO led projects including Walter Nash Centre, Naenae Bowls Centre, Stokes Valley Hub, Huia Pool redevelopment and other projects aimed at rejuvenation of the city.	2015–2018	High level of awareness within the business community of Council’s investment programme	· The Chamber plays an active part of ensuring the investment by Council in both the Business and wider community is seen and recognised.
Increase the number of tourism products in Lower Hutt	Participate in the development of a Hutt City Tourism Plan by Council to provide direction for Tourism development in the next five years and provide clarity about the relevant level of activity Promote new tourism product in the city e.g. heritage, adventure, cycling. Provide commentary and support when appropriate to increase promotion of tourism products including the new Events Centre	2016-2017 Ongoing	Participate in and provide business views on development of Tourism Plan Use of Chamber channels to promote new tourism product in the city and increase promotion of tourism product.	· Not yet commenced · Ongoing and as required participation from the Chamber is provided.

Council Officer Commentary

The Chamber continues to support the Council’s renewal of its facilities and in particular the Events Centre which will drive increased economic activity in the CBD.

The Chamber provides leads on business intentions for growth; relocation; etc. to Council’s City Development team.

The Chamber continues to use its strong political connections to advocate for the relocation of Government services and offices to Lower Hutt in support of CBD rejuvenation and fulfilling the aspiration of Council’s Making Places 2030 Plan and also for the redevelopment of the Callaghan Innovation Gracefield campus.

Area of Focus 4 – Continue Business Support
Continue to provide support to local businesses	Regularly liaise with Council on respective business visits and issues being raised with business community. Undertake regular business confidence survey with local businesses and publish results. Work with Council to establish a business communications programme to target and bring in businesses outside of Lower Hutt Promote employment recruitment programmes including Mayoral Taskforce for Jobs (Wainuiomata) and actively seek among the business community opportunities to get young people into work experience and / or employment situations with local employers. Promote Council’s environmental sustainability programmes with local businesses to support their need to show environmental responsibility Promote 1^st Assembly business incubator to provide incubation services for Lower Hutt start-ups and look for opportunities for established businesses to mentor resident businesses. Support Regional Gold Awards Hold annual Business Awards & Business Hall of Fame events.	Ongoing Ongoing 2016-2017 Ongoing Ongoing 2016 onwards 2016-2017 2016-2017	Regular meeting with DM City Development and relevant team members Share regular business survey result with Council Participate in establishment of a communications programme. No. of successful placements Use of Chamber channels to promote Council’s environmental sustainability programmes. Use of Chamber channels to promote 1^st Assembly incubation services. No. of successful nominations of Lower Hutt businesses for Regional Gold Awards. Success of annual business awards and Hall of fame events.	· Regular monthly meetings are held, with the inclusion of many other meetings outside of this across multiple team members being the norm. · Chamber delivers survey and results every quarter · 2017 will see the Chamber participate in a targeted business growth/ attraction communications programme with HCC · Chamber CEO is on the Board of MTFJ and he and Team actively run/support through Chamber employment and recruitment programmes for local businesses and residents · Ongoing and as required promotion of · programs is carried out · Chamber actively promotes 1^st assembly. · Chamber works closely with Council in supporting Regional Gold Awards and the inclusion/nomination of Hutt Businesses · Chamber hosted very successful awards dinner at Expressions in 2016 the evening was a great success. · Hall of Fame is to be hosted in June 2017 at Silverstream retreat.

Area of Focus 4 – Continue Business Support

Objectives

Actions

Timing

Measure

HVCC Commentary

Continue to provide support to local businesses

Regularly liaise with Council on respective business visits and issues being raised with business community.

Undertake regular business confidence survey with local businesses and publish results.

Work with Council to establish a business communications programme to target and bring in businesses outside of Lower Hutt

Promote employment recruitment programmes including Mayoral Taskforce for Jobs (Wainuiomata) and actively seek among the business community opportunities to get young people into work experience and / or employment situations with local employers.

Promote Council’s environmental sustainability programmes with local businesses to support their need to show environmental responsibility

Promote 1^st Assembly business incubator to provide incubation services for Lower Hutt start-ups and look for opportunities for established businesses to mentor resident businesses.

Support Regional Gold Awards

Hold annual Business Awards & Business Hall of Fame events.

Ongoing

2016-2017

Ongoing

2016 onwards

2016-2017

Regular meeting with DM City Development and relevant team members

Share regular business survey result with Council

Participate in establishment of a communications programme.

No. of successful placements

Use of Chamber channels to promote Council’s environmental sustainability programmes.

Use of Chamber channels to promote 1^st Assembly incubation services.

No. of successful nominations of Lower Hutt businesses for Regional Gold Awards.

Success of annual business awards and Hall of fame events.

· Regular monthly meetings are held, with the inclusion of many other meetings outside of this across multiple team members being the norm.

· Chamber delivers survey and results every quarter

· 2017 will see the Chamber participate in a targeted business growth/ attraction communications programme with HCC

· Chamber CEO is on the Board of MTFJ and he and Team actively run/support through Chamber employment and recruitment programmes for local businesses and residents

· Ongoing and as required promotion of

· programs is carried out

· Chamber actively promotes 1^st assembly.

· Chamber works closely with Council in supporting Regional Gold Awards and the inclusion/nomination of Hutt Businesses

· Chamber hosted very successful awards dinner at Expressions in 2016 the evening was a great success.

· Hall of Fame is to be hosted in June 2017 at Silverstream retreat.

Area of Focus 4 – Continue Business Support
Continue to make it easier for businesses to do business	Advocate to government regarding law changes to simplify business processes	2016 onwards	Ongoing	Ongoing collaboration with Chamber, Business, community opposition, Central Government and Council will continue in 2017

Area of Focus 4 – Continue Business Support

Objectives

Actions

Timing

Achieved

HVCC Commentary

Continue to make it easier for businesses to do business

Advocate to government regarding law changes to simplify business processes

2016 onwards

Ongoing

Ongoing collaboration with Chamber, Business, community opposition, Central Government and Council will continue in 2017

Council Officer Commentary

The Annual Wellington Regional Business Excellence Awards were organised and hosted by the Chamber at Expressions in Upper Hutt in November 2016. This was the largest event yet with record number of entries and over 450 guests in attendance. Lower Hutt based Tekron international Limited took out the Supreme Business Excellence Award.

The Wellington Regional Hall of Fame Awards were held in July with 8 businesses from around the region inducted including 3 Lower Hutt businesses – Masterpet; Gee & Hickton and E.Sime Group. This is the second year of this new regional event established by the Chamber.

The Business Expo 2016 was held in September. The event which has grown year on year was held at the Westpac Stadium due to the large number of business exhibitors. The event was well attended.

1^st Assembly - Chamber BA5 event

The Chamber runs a MSD supported programme to place 45 unemployed people back into work in the business community. In addition they offer a no cost recruitment service to any local employer. Candidates are sourced from Youth Inspire, Workbridge and other organisations assisting harder to place candidates into the work place. During the 6 month period to 31 Dec the Chamber worked with 30 employers and 140 potential candidates.

The Chamber CEO also sits on the board of the Mayoral Taskforce for Jobs – Wainuiomata

The most recent business confidence survey shows despite the recent earthquakes and ongoing disruption from these confidence in the economy remains positive. A copy is attached to the report.

The CEO and Div. Mgr City Development regularly meet (at least monthly) to discuss issues of the moment and upcoming matters. The Chamber CEO and staff have good contacts within the Council and have direct contact with relevant officers.

48 28 February 2017

City Development Committee

23 August 2016

File: (16/1068)

Report no: CDC2016/4/218

Wainuiomata Development Plan update

Purpose of Report

1. This report updates the Committee on progress on the Wainuiomata Development Plan, the community’s vision, and an outline of work ahead.

2. Members of Love Wainuiomata Incorporated will attend this meeting to speak to the report.

Recommendations

It is recommended that the Committee:

(i) notes the ongoing voluntary work to progress the Wainuiomata Development Plan;

(ii) notes the community vision and the Steering Group’s work completed to date; and

(iii) notes expenditure within current budgets on the Wainuiomata Development Plan detailed in the FY2016/17 action plan summary, attached as Appendix 2 to the report.

Background

3. A group of Wainuiomata community members are championing a vision for their community in response to initiatives detailed for Wainuiomata in Council’s Urban Growth Strategy 2032. Their journey is documented in the Wainuiomata Development Plan Update reported to this Committee meeting on 22 September 2015.

4. The Steering Group set work streams and targets for FY2015/16 as attached in Appendix 1.

5. The Steering Group has formed an incorporated society named Love Wainuiomata Incorporated (LWI) to champion and undertake the Wainuiomata Development Plan (WDP).

6. LWI meets regularly to guide the development of the WDP; manage their coordinator, meet with council officers and ensure progress on the work streams of their action plan.

Discussion

7. The focus for FY2015/16 was on recruiting a coordinator to begin delivering on opportunities and activities identified in the WDP.

8. Esther Venning came on board in April 2016 as the “Make Stuff Happen Champion” (Coordinator). The purpose of this roles is to:

· be a central coordination point for development plan activities;

· involve, inform and inspire the community towards their shared vision;

· continuously communicate to the Wainuiomata community on milestones and activities, and

· proactively foster collaborative working relationships with the individuals, community groups, businesses and other organisations.

9. Elected members who have been an important part of the setting up of the group and establishing a wide network across Wainuiomata are now stepping back to champion activity as councilors and community board members.

10. LWI is inspired by the place making activity in other NZ towns and groups such as Focus Paihia who have demonstrated leadership by creating activities to inform future planning and more permanent and larger scale development. The group has adopted several guiding principles to inform their strategic approach and projects. These include:

· taking an “Asset Based Community Development” approach: building on assets rather than filling weaknesses,

· ensuring projects are owned and led by the local community,

· creating activities that are catalyst (or template) for further related work,

· always engaging wide participation,

· fostering organic processes allowing things to bubble up authentically rather than forcing things creating long term investment in ideas,

· being inspired globally with best practice examples,

· seed-funding projects that are matched and/or attract further funding to maximise funding from council.

11. LWI has worked with other organisations that have themselves led or are leading new activity contributing to the work streams. Highlights for FY2015/16 have included:

· a Welcome to Wainuiomata sign design competition and securing funding for installation; and

· engaging global placemaking expert David Engwicht and planning for a 7 Day Makeover [of Queen Street] in September 2016. The info night attracted 115 people; and

· a collaborative community events planning calendar; and

· planning RuralFest – a showcase of rural life and businesses in the town centre with the Wainuiomata Rural Community Association; and

· positive working relationship with the shopping centre management; and

· creating a Wainuiomata destination guide and holding an initial destination group of tourism businesses and organisations.

12. The FY2016/17 work plan (attached as Appendix 2) is divided into six work streams that relate directly back to outcomes of the vision.

Consultation

13. LWI regularly hold open “connected neighbourhood” meetings where local groups share news and upcoming projects to identify collaborative opportunities and together champion the WDP vision.

14. LWI use www.wainuiomata.org as well as their Facebook page as two portals for information, news and activity milestones.

15. A wider series of working groups have been established to engage and collaborate with relevant groups and/or businesses for each vision work stream including:

· Town centre group – businesses, community hub, arts network

· Gateway & hill-top group – marae, fitness users, MTB park, council officers

· Destination group – tourism attraction operators, businesses, recreation asset providers

· Connected neighbourhood group - Wainuiomata Sportsville Group, Wainuiomata Marae, Life City Church, Rimutaka Forest Park Trust, Wainuiomata Trail Project, Wainuiomata Community Board, Wainuiomata Rural Community Association, Wainuiomata Arts Network, Development Wainuiomata, Sport Wainuiomata Inc., real estate agents, Hutt City Council and other local groups

Legal Considerations

16. There are no legal considerations.

Financial Considerations

17. Total funding of $170,000 for the WDP activities is allocated for FY2016/17 in the Annual Plan.

18. Expenditure and initiatives for FY2016/17 are outlined in the action plan summary attached as Appendix 2 to the report.

Other Considerations

19. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it furthers the economic development of the city. It does this in a way that is cost-effective because it makes use of and leverages off the existing resources within the local community.

Appendices

No.	Title	Page
1 ⇩	Wainuiomata Development Plan - 2015/16 results	50
2 ⇩	Love Wainuiomata Inc - action plan 2016/17	52

Author: James Lamb

Visitor Market Development and International Relations Manager

Reviewed By: Gary Craig

Divisional Manager City Development

Approved By: Kim Kelly

General Manager, Strategic Services

Attachment 1

Wainuiomata Development Plan - 2015/16 results

2015/16 Action Plan Summary

Actions are summarised from the action plans on
pages 55-58 of the Wainuiomata Development Plan.

Full dev plan ref	ACTION	BUDGET	TARGETS
Full dev plan ref	ACTION	BUDGET	BY DEC 2015	BY JUNE 2016	COUNCIL OFFICER COMMENT
	ACTIVITIES, USES AND SOCIABILITY
A	· Appoint a development plan project manager · Seek input from urban design and placemaking specialists when scoping further work & strategies	$50,000	· Establish a Trust or Inc. Soc entity to employ · Recruit Project manager · Consider Sportsville feasibility study outcomes within the town centre development plan	· First projects underway	· “Make Stuff Happen Champion” contractor started in April. Delay to find the right person has impacted on achieving others targets in this plan. · Love Wainuiomata Incorporated June 2016. · Ongoing engagement with Sportsville. · Working groups set up for Town Centre, Hilltop, Welcome Sign. · Full living plan to be updated/structured based on vision outcomes instead of place-making headings · Further work to define town centre vision informed via engagement with 7 Day makeover. New summary to be produced.
B	· Undertake placemaking activities	$30,000	· First event held	· Regular events underway and momentum gaining.	· Hosted place-making expert David Engwicht in May 2016. · 7 day makeover planned for September. · August info night attracted 115 people.
C	· Work with local business, property owners, schools and community to leverage placemaking activities	Nil.	· Develop projects with local school talent	· Positive participation in placemaking events	· Need to ensure businesses engaged in 7 day makeover. · Town Centre working group formed including several Queen Street businesses and mall operations staff.
L	· Work with local businesses and providers to ‘package up’ Wainuiomata experiences and encourage visitors to stay longer and spend more.	$3,000	· Gather benchmark data: eg. marketview · Operator network event held.	· Operator group set up · New cross-sell / upsell collateral in-market	· Destination Wainuiomata initial collateral nearly complete for late Spring launch · First meeting held of Destination Wainuiomata group with operators eager to collaborate.
N	· Hold regular meetings with local community groups	Nil.	· Next meeting held	· Meetings are regular, well attended and seen as useful	· Regular connected neighbourhood meetings bearing fruit for wider community initiatives such as RuralFest and event coordination between groups.
O	· Leverage the Development Wainuiomata networking group to develop local business awareness and collaboration	Nil.	· Event held	· Development Wainuiomata have visible key role in delivering this plan	· Development Wainuiomata connection made.
	ACCESS AND LINKAGES				·
A	· Utilise the project manager to develop a walking and cycling strategy and first projects	Nil.	· Nil.	· Project and strategy scoped	· Nil.
B	· Create a gateway working group to develop opportunities to make the hill fun and leverage council’s infrastructure investment	$10,000	· First smaller scale project underway.	· Larger scale project scoped.	· Group formed. Leaderboard up and well used. Welcome sign concept design after suburb-wide competition, funding secured from HCC and working group collaborating for install after deciding on timber sourcing.
C	· Create walking, cycling placemaking activities	Nil.	· As per “B” above	· As per “B” above	· Nil.
	COMFORT AND IMAGE				·
A	· Develop a project plan around visual image of town centre	$4,000	· Nil.	· Initial plan scoped and first project delivered.	· Will be part of 7 Day Makeover efforts.
B	· Develop a communications plan to promote positive change in Wainuiomata	$3,000	· Our community is up to date via our website, newsletter, blog and Facebook	· Plan developed and implemented	· Actively seeking to secure wainuiomata.co.nz as high ranking google result to be refreshed as a success stories, news and directory. · Regular and up to date content on wainuiomata.org and Facebook page · Need to re-engage with Real Estate sector to support and enhance attraction strategy to showcase Wainuiomata lifestyle benefits.

Attachment 1

SWG Report to Council - Year to 30 June 2016

Seaview Working Group 12 Month Report

to 30^th June 2016

Contents:

Objective 1: Develop Database of businesses in Seaview/Gracefield

· Develop Database

· Networking Events

· Monthly Newsletter

· Christmas Flyer

Objective 2: Lift the Profile of the Seaview/Gracefield area

· STEMM festival

· Other events

· Develop website to profile the area and attract businesses

· SWG in the media

Objective 3: Maintain and Strengthen Governance/Operational capability

· Maintain a core group of businesses on Governance team

· Coordinators role

· Broadening representation in the membership base and growing the Governance Group

· Make submissions to Council on matters affecting the Seaview/Gracefield business community

· Issues working on for the Business Community

Objective 1: Develop Database of Businesses in Seaview/Gracefield

Current Initiatives and Progress

Develop Database

30 June 2015

The database work continues to be constant and currently we have 359 businesses on the database. As there is no Spotlight on Seaview event this November there will be a push to check the accuracy of the data.

30 June 2016

Database work continues with more businesses making contact with the Group when they move into the area and updating us when changes occur.

Currently there are 370 businesses on the database.

Networking Events – minimum of 6 networking events

30 June 2015

February – Security event discussing the proposal of a night guard in Seaview. Attended by 22 people.

March – Masterpet BA5 in conjunction with the Hutt Chamber of Commerce. Attended by 119 overall.

April - STAFF ENGAGEMENT – Dale Carnegie Workshop. There were nine people booked in but only two attended due to a number of business issues.

We have also held our AGM in July with Callaghan Innovation providing a speaker and E Tu Trust speaking on their progress. In August we will be holding a winter business drinks with Gary Craig from Hutt City Council giving an update on the Council’s projects and plans.

The joint BA5 with the Hutt Chamber of Commerce helps to raise the profile of SWG and the group will look to hold an annual BA5 with Callaghan Innovation as well.

Attendance numbers continue to be low and to date we haven’t found a solution to this issue. Involving outside businesses in the BA5’s does seem to increase the interest.

30 June 2016

July – AGM with Callaghan as guest speaker – attended by 12 people

August – Gary Craig update on HCC work – attended by 14 people

November – Callaghan Innovation Tour – attended by 8 people

November – Waiwhetu Stream Sculpture Trail opening – attended by 34 people

February – Macaulay Metals BBQ attended by 7 people

March – NZ Post joint BA5 with Hutt Valley Chamber of Commerce attended by 57 people

March – Port Road Street meeting – attended by 14 people

May – Fraser Engineering – attended by 13 people

Attendance numbers continue to be low but we will continue to work on this issue. Businesses had requested that we host some visits outside of Seaview which we have done. Businesses also feedback that they would like more visit on businesses sites so we have moved more to that direction. We will continue to ask for feedback to provide events that people will value. We hosted a Port Road street meeting to encourage businesses to meet each other and to discuss issues that are relevant to their street. A number of issues were raised at the Port Road meeting which have been addressed since the meeting. This format worked very well and we will continue to work on hosting street meetings.

Monthly Newsletters

30 June 2015

Newsletters continue to go out with a subscriber list of 285 and the average open rate is 34.97%. There has been a combination of twelve newsletters and security information sharing reports going out over the last year. The open rate for the security information being higher than for the newsletters at 36.9% and 33.29% respectively.

30 June 2016

Newsletters continue to go out with a subscriber list of 332 and the average open rate is 35.9%. There has been a combination of nine newsletter and security information sharing reports going out over the last year. The security reports are coming through less frequently as the Police staff have less time to generate the reports which is disappointing as they were appreciated by the business community. Over the last year things that are very important for businesses to read have been sent out separately from the newsletter in the hope that more would read these. This has resulted in a couple less newsletters over the year.

Christmas Flyer

30 June 2015

As there is no Spotlight on Seaview in November 2015 SWG will look to gauge interest in producing a Christmas Flyer.

30 June 2016

The Christmas Flyer was produced in November and sent out electronically. The businesses that advertised had limited response to the specials they offered. The committee wondered if this was due to the flyer needing to become better known in the area. Also perhaps the flyer would be better printed on paper and delivered, it may get more exposure to staff this way. The committee were open to trying some other options for 2016.

Longer Term Priorities

Over the next 12 months the group will make a push to increase the numbers attending the networking events and continue to hold street meetings.

Objective 2: Lift the Profile of the Seaview/Gracefield area

Current Initiatives and Progress

STEMM festival event

30 June 2015

The group decided that the Spotlight on Seaview event had served its purpose and that we should look to hold a different event.

So in early June SWG participated in the STEMM festival with sixteen business opening for student’s tours and seven schools participating. The feedback from the students and teachers was very positive and we now have a better idea of what we need to do next time to improve the tours. The majority of the businesses found the tours very positive and have said they will participate again next year. Some the businesses felt it gave their staff an opportunity to give back and extend themselves in planning a presentation and tour for the students.

The schools have also showed that they are very keen to foster closer relations with the businesses in Seaview with interest in the possibilities of work experience. We believe this has been a positive step forward in bridging the gap between students and businesses.

30 June 2016

SWG participated in the STEMM festival again this year. There were 14 businesses hosting tours with 69 students attending. The feedback is always positive from the teachers and the students that it is worthwhile hosting these tours. The idea behind he tours is to give the students a chance to see what the work place environment is like and to hear from staff what they did to end up in the roles they are doing. The first year we mixed the tours up but this time we made tours of similar industry types and gave students the chance to select what tours they were interested in attending. This worked well however SWG would like these tours to be more informative for the students and are thinking along the lines of a short video made on some the businesses that students can watch beforehand. There are also issues around not all people being good at presenting what they do to students and there needs to be more guidance for the presenters.

The group believes this is an event that SWG should remain involved in and continue to improve on the delivery.

Other events involved in

30 June 2015

SWG put on a Recycled bus tour for the Small Town Conference hosted by the Jackson Street Programme in April. Those that attended the tour gave very positive feedback however the numbers were lower than we were expecting at four. The businesses that provided tours were Metal Art, Flight Plastics and Waste Management with a display and presentation from Denise Anglesey on ECO fashion over morning tea.

30 June 2016

There have been no extra events that SWG has been involved in over the last twelve months.

Develop website to profile the area and attract businesses

30 June 2015

The article page on the website has been changed to a blog style and is archived by year. Currently the group are working on a business blog page for the website so that we can keep it as current as possible and give more exposure to businesses. This would also allow businesses to advertise promotions as well.

The co-ordinator has been loading up the businesses onto the website and once this is complete we will let the businesses know.

Website traffic is as follows:

January – 616 sessions

February – 545 sessions

March – 285 sessions

April – 174 sessions

May – 565 sessions

June – 600 sessions

The average session time is 60 secs and 93.1% of visitors are new users.

30 June 2016

A blog page has been set up on the website with regular postings being made about businesses in the area. The group are working on encouraging businesses to let SWG know when they have posts to add. Otherwise the co-ordinator finds businesses activities via, newsletters, newspaper, Facebook.

A listing of the Bayley’s properties for lease and sale is being worked on currently with Bayley’s paying for this advertising. The Group would like to see this the website as being a site that provides all you need to know about the area.

Work continues to load businesses onto the site and keep update to date with businesses changes.

Website traffic is as follows:

July – 891 sessions

August -205 sessions

September – 121 sessions

October – 69 sessions

November – 464 sessions

December – 213 sessions

January – 167 sessions

February – 4 sessions

March – 15 sessions

April – 53 sessions

May – 73 sessions

June – 30 sessions

94.9% of users are new and average session duration is 14 secs.

The drop off in session numbers could be due to a couple of things one a change in the articles in the newsletter not being linked to the website. The Group will look to address that and perhaps some advertising of the website needs to be done. Also the networking events had an outlook appointment that was linked to the website which we haven’t been doing.

The group needs to review the key words on the site to make sure the site is coming up in searches and also to make sure that content is updated every week.

SWG in the media

30 June 2015

Articles about businesses are still be loaded onto the Seaview Business website and there has been a story about the Lightwing project and a comment from the Co-ordinator in the Eastbourne Herald.

30 June 2016

Articles about businesses and issues relevant to the area are loaded onto the Seaview Business Community website and there was a story in the Hutt News about the submission that SWG made to the Council on the weighted vehicle by-law.

It was disappointing to note the Hutt City Council did not include the Seaview Students tours for STEMM in their press release about the event.

Longer Term Priorities

The Lightwing sculpture when it is installed will be an opportunity for SWG to be in the media perhaps late 2016 or early 2017.

Objective 3: Maintain and Strengthen Governance/Operational capability

Current Initiatives and Progress

Maintain a core group of businesses on Governance team

30 June 2015

Angus Kincaid was elected as Chairperson for another year as was Carl Longstaff as Treasurer. The core committee currently consists of Brett Gilles - GNS, Tom Hudig- JJL, Byron Cummins-Howard Material Handling, Mike Henderson- Efficient, Ian Smith –Waste Management, Bruce Whiley – Titan Cranes, Gordon Barr – Dulux. This continues to be a stable group with other businesses attended meetings as when is possible.

30 June 2016

Angus Kincaid was elected Chairperson for another year in the August AGM and Carl Longstaff has stood down as Treasurer and Bruce Whiley from Titan Cranes has been elected as the new Treasurer. The core committee currently consists of Brett Gillies – GNS, Tom Hudig – JJL, Mike Henderson – Efficient, Ian Smith – Waste Management, Des Fell – Waste Management, Carl Longstaff – Metal Art, Alex Lloyd - Callaghan Innovation, Steve Rickman – Dulux, Scott Muir- eNZOil, Conal McKenna – Boost. The core of the group is the same with several new businesses joining the group.

Coordinators role

30 June 2015

Claire Allan is still employed by SWG in the role of Co-ordinator working an average of 10 hours per week.

30 June 2016

Claire Allan is still employed by SWG in the role of Co-ordinator working an average of 10 hours per week.

Broadening representation in the membership base and growing the Governance Group

30 June 2015

The average number of members attending the committee meetings over the last six months is 6. This is down from the last half which was eight.

February – 7 members

March – 6 members

April – 7 members

May – 7 members

June – 4 members

30 June 2016

The average number of members attending the committee meetings over the year is 6. This is similar to last year.

July AGM – 8 members

August – 9 members

September – 7 members

October – 6 members

November – 3 members

February – 4 members

March – had to be cancelled at the last minute

April – 7 members

May – 8 members

June – 6 members

In the June meeting a motion was passed to change the name of the Seaview Working Group to Seaview Business Association. The name change will be formalised later in August. The group believe this name change may allow people to feel more connected with what the group’s aims are.

Make submissions to Council on matters affecting the Seaview/Gracefield business community

30 June 2015

SWG made a submission to the GWRC and HCC on their long term plans requesting they consider the need to look at the sea wall along Port Road and the rate that erosion is happening work in this area needs to be made a priority. After presenting at both hearings the HCC have agreed to move the allocated money for this job into the next financial year where a temporary sea wall will be put in place and the GWRC will match the design of this along the section that they are responsible for. A more long term plan for this edge will have to wait until the flood protection work for the Lower Hutt Central city has been finished.

30 June 2016

With regards to the last year’s submission on the Port Road erosion, design work is in progress and work on construction is meant to start by the end of 2016. The work was meant to be finished by now but there have been some hold ups with GWRC declining to do the work they had agreed to do but then coming back on board again.

In 2016 SWG made a submission to HCC on the issue of the boy racer visits into the area. The group requested that the council consider a weighted vehicle by-law and a liquor ban to assist Police with moving on the boy –racers. Currently the liquor ban is under public consultation and the local businesses continue to record visits into the area and the problems they cause. With regards to the weighted vehicle by-law the HCC road team’s legal advice is that such a by-law is against the Bill of Rights. The Police don’t agree with this stand and are working on a report around this at the moment. There are several cities around the country that use this weighted vehicle by-law at the moment and to date it hasn’t been contested.

Issues working on for the Business Community

30 June 2015

The project for a night Security guard in Seaview has resulted in a relationship with Total Harbour City Guards that saw a guard working at night in the area from early March. The number of businesses joining this initiative continues to grow and currently the guard is leaving Seaview for forty minutes a night to cover another job. This means a much shorter response time for break ins in Seaview and keeping an eye for suspicious activity. The group are excited that so far this initiative is working. To date it has been hard to track if there has been a reduction in crime in the area as the

Security information sharing emails that were being sent out by the Local community Constable had to stop for a while until the policy was reviewed. These security emails are due to start back up. To date we still need to work on the signage for this initiative.

The emergency response communication will be put back on the agenda for late 2015 and the Lightwing project has had a setback due to a lack of funds with the changes to the budget. Further discussions about this project will be had with the businesses in Seaview to gain further support and hopefully get this built in 2016.

The E Tu Trust are also working on a sculpture trail along the Waiwhetu Stream and SWG would like to support this and have proposed a mural on a back wall of the HJ Asmuss building that can be seen from Seaview Road. Work to get this off the ground will continue.

30 June 2016

The night guard is still operating in Seaview although total harbour City Guards has been sold to Allied Security. Allied have been changing some of the businesses procedures and re branding and have indicated some changes to pricing which may put businesses off being part of this. We have spoken with Rosebank Business Association in Auckland about their pricing structure and hope that Allied Security may be able to do something similar.

Emergency response communication – In September 2015 the group sent out a reminder about emergency response planning. A map of the area and where high ground is was sent out so staff can plan evacuation routes. A couple of businesses along Gracefield Road have access up the hill side and these routes where pointed out to the businesses. This coincided with the Shake Out Day which the group also advertised to the businesses and encouraged participation.

Lightwing Sculpture had some hold ups due to the upgrade of the sewerage pipes under the roundabout. However after working with Wellington Water and Hutt City Council the issues have been resolved and progress on this can start again. One fin of the sculpture has been made as a test. It is hopeful that the sculpture could be finished by the end of 2016.

The E Tu Trust are working on the third piece of sculpture for the Waiwhetu sculpture trial. The mural idea for the Asmuss building hasn’t progressed at this stage.

The trial of a rubbish bin by the table on the Waiwhetu Stream edge had no issues so the group requested that the HCC install another rubbish along Port Road. This was done between two picnic tables across the road from the Port Road canteen. Businesses have noted less issues with rubbish in this area after the bin was installed.

Bus stops – discussions were had with Greater Wellington Regional Council about bus stop usage numbers in the area. The group highlighted the Gracefield Road stop near Hutt Park Road corner as one that businesses felt had a high usage rate and staff would welcome a shelter. It was agreed by GWRC that this stop number 8700 would be added to the list and should be installed in October 2016. Unfortunately there was a change of staff at GWRC and this stop was not added to the list. This has been rectified and has since been added to the list for the next financial year to receive a shelter. With the change of staff the issue of the Seaview Road bus stop over the entrance to Seaview Blasting has stalled again. It has been brought back to GWRC attention and we hope progress while start again. In December 2015 GWRC had said that they were contacting the businesses on the street to discuss moving the bus stop to the other side of the road. This issue has been outstanding since April 2013.

Progress has been made with regards to street cameras with a trial of some street cameras been done and the committee planning to work with Hutt Park Road to install street cameras to start with by the end of 2016. These cameras will be monitored 24 hours a day by a security company. It is planned that these cameras will be jointly funded by the businesses and the Seaview Working Group.

A survey of the members was carried out late in 2015 with recommendations coming from the businesses that they would like more businesses to hold networking events to have more information about new businesses coming into the area and showed concern about the Boy racer visits.

Street car parking was also flagged by some businesses as being an issue. The co-ordinator worked with HCC road engineers to install car park markings for both sides of Port Road outside the Port Road canteen and also in parts of Hutt Park Road. This has allowed for more cars being able to park in these areas due to better spacing.

Longer Term Priorities

Improved signage along the cycleway on Port Road is something that the group would like to see budgeted for still. Discussion were had with a number of people in Council about this but no progress has been made at this stage.

To see street cameras throughout Seaview/Gracefield area.

86 28 February 2017

City Development Committee

10 February 2017

File: (17/181)

Report no: CDC2017/1/1

Activity Review 11 - Solid Waste

Purpose of Report

1. The purpose of this report is to provide an overview of the services provided by Council within the Solid Waste Activity, and to report on the current levels of achievement within the Activity.

Recommendations

It is recommended that the Committee:

(i) notes the information contained in this report;

(ii) notes that this review also meets the intent of section 17A of the Local Government Act 2002; and

(iii) agrees that a full section 17A review should not be undertaken at present for the reasons outlined in the report.

Background

2. Activity Reports provide regular information about Council activities, so that activities can be analysed and their future direction considered. They also address the requirements of section 17A of the Local Government Act 2002 (LGA) that regular reviews be undertaken of the cost-effectiveness of current arrangements for meeting the needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions.

High-level description of Activity

3. The Solid Waste Activity encompasses a number of separate and distinct sub-activities. These are:

Operating Landfills

Closed Landfills

Cleanfill

Recycling Collection Contract

Refuse Collection Contract

Each of these will be described in more detail below:

Operating Landfills

4. Until December 2012, Council had two operating landfills, Wainuiomata and Silverstream. The closure of Wainuiomata on 31 December 2012 was largely driven by the Government’s introduction of the Emissions Trading Scheme which is discussed in more detail below.

5. Silverstream Landfill is therefore Council’s only operating landfill. What is now known as Stage 1 of the Landfill opened in 1972, jointly funded by both Hutt City and Upper Hutt City Councils. Stage 1 operated until 2008, by which time it had reached its design height and was closed.

6. In preparation for this closure Council had submitted a Resource Consent application for new landfill (known as Stage 2), on the same parcel of land designated for Landfill, but immediately down the valley from Stage 1. After several years of investigating, planning, design and consultation, a Consent was granted without the need for a Consent Hearing; possibly the first time this has been achieved in New Zealand, and significantly aided by submissions in support of the application of the residents’ group which had been part of the consultation process. The landfill is state of the art, fully lined and is the only Class A landfill in the Wellington Region.

7. Like most physical works undertaken in the Infrastructure Group, landfill operations are contracted out. The incumbent is Waste Management Limited who was awarded the contract in 2012, with a term of up to 9 years. While there have been changes in the landfill operating company over the years, senior landfill staff members have remained on site and form an extremely experienced team with strong links to and relationships with Council. Since signing the contract in 2012, Waste Management has invested significantly in new plant designed to enhance the efficient operation of the landfill.

8. Waste Management’s performance is monitored and directed by Tonkin and Taylor Limited, who are widely reported to be New Zealand’s premiere environmental engineering consultancy. They are responsible for maintaining an up-to-date Landfill Management Plan and ensuring that Waste Management work to achieve the objectives of that plan. They act as Engineer to the Contract and process all contract claims. Tonkin and Taylor also operate under contract to Council, but given the depth of the intellectual property which they have, (and the lack of landfill engineering knowledge within Council), the contract is in the nature of a ‘long term relationship’. It is peer reviewed from time to time to verify that Tonkin and Taylor continue to provide a quality service at good value for money; an approach which has been endorsed by the Office of the Auditor General.

9. In addition to the operational aspects of the landfill, there is an ongoing capital development programme. Each year work is undertaken to develop further landfill space for filling; effectively a “just in time” approach to landfill development which endeavours to spread capital spend, allowing it to be paid for each year out of landfill profits rather than borrowings. Tonkin and Taylor are employed to design these capital works, and act as Engineer to the contracts. The current contract for the physical works associated with the capital development programme, was recently won by H.G. Leach & Company for a period of 5 years.

10. A degree of recycling is undertaken at the Landfill. Council has a contract with Earthlink Limited; details of which have been reported to the Policy Committee as part of the review of Activity 14. Landfill staff members work in cooperation with Earthlink to promote recycling of various materials. Metals recycling remains the province of the landfill contractor. Net revenues from recycling are retained by the contractor in exchange for an equivalent reduction in the fixed fee contract charge.

11. A gas to electricity plant on site burns landfill gas to produce electricity. Council sold its 7% shareholding in this venture in July 2012 and the 100% shareholder is now Pioneer Energy. Pioneer provides all the capital to develop the well field, and to maintain and upgrade the plant as necessary. Council benefits by having a gas collection system provided by Pioneer, thus providing odour control at no cost to Council.

12. In recent years the Government, via the Ministry for the Environment (MfE) has introduced financial instruments targeted at landfills as an avenue by which to promote environmental sustainability. Two major initiatives are used:

(a) The MfE levy of $10 per tonne. For every tonne of product delivered to landfill, HCC collect and pay $10 to the MfE. The fund so generated is used to promote environmental sustainability initiatives throughout the country.

(b) The Emissions Trading Scheme. For every tonne of product going to Landfill, Council has to buy (and subsequently surrender) 1.31 Emission Trading Units (ETUs) less an allowance for quantities of emissions captured and destroyed. Since the introduction of the scheme Council has been able to certify that we are eligible to claim the maximum quantity of gas collected and destroyed, allowed by the scheme (90%). Despite a recent increase in the price of the ETU’s, Council financial liability has therefore been very low (c. $18,000 in the 2015 calendar year.)

13. Council, Tonkin and Taylor, Waste Management and residents of Stokes Valley have signed a Charter formally establishing a group which meets regularly to keep residents informed of developments at the landfill and to hear any residents’ concerns. An excellent relationship has developed between all parties.

14. The table below shows trends in landfill commercial volumes and domestic vehicle numbers, and movements in landfill charges. These variables are the primary drivers of total revenue and net profit which are shown later in this report.

LANDFILLS	2013/14	2014/15	2015/16	2016/17
Commercial Volume 000’s tonnes	102	110	98	100
Vehicle Numbers (000’s)	59	62	67	65
Tonnage Rate inc. GST and MfE	$113	$118	$118	$120
Trailer Charge	$31	$31	$31	$31

15. The general pricing strategy adopted at the Landfill is to maintain relativity to other landfills in the region, recognizing that this is a competitive market. As shown in the table above, commercial volumes are currently around 100 kilotonne (kt). The top ten customers deliver approximately 90% of the commercial volume, and Waste Management accounts for the greatest majority of that.

16. Wellington City Council’s tonnage rate is $121.80 and Porirua’s is $129. WCC charges all cars and trailers by weight, PCC charges $38 for a trailer.

Closed Landfills

17. Closed landfills exist in the city, at Silverstream (Stage 1), Wainuiomata, Eastbourne, Wingate, Maungaraki and Korokoro. These continue to be managed and monitored by Council. A significant balance sheet provision exists such that all costs incurred are netted out to this provision. Annual costs in previous years have been minor (<$50KPA), but are becoming more significant with the recent closures of Wainuiomata and Silverstream (Stage 1). Typical expenditures are for trade waste charges, ongoing monitoring, mowing and vegetation control, and any remedial works required.

Cleanfill

18. The land review project identified in 2009 a parcel of land on Wainuiomata’s Coast Road which could be surplus to Council requirements. It was valued at approximately $100,000 less legal costs. Officers identified that the land may be of more value as a Cleanfill and a Resource Consent was applied for and granted. After a period of time in which the cleanfill was managed by Council, this operation has now been contracted out, with the Contractor paying to Council a monthly fixed rental, plus a further contribution of $4.60/m3 on monthly volume above a set figure. Net profits have been steadily increasing, and are forecast at $75,000 for the current year. The current consent for this activity expires this year and an application to extend the consent term has been lodged with Hutt City Council and is currently being considered.

Recycling Collection Contract

19. This contract is currently held by Waste Management at an annual budgeted cost of $1.3M. Collections are provided once a week and the contract is funded by way of a targeted rate of $37 per household. Recycling bins are sold to households as required at cost, being around $15. Collected material, largely paper, plastic, and glass, is taken to the contractor’s processing facility for sorting, packing and on sale – mostly to overseas markets.

Refuse Collection Contract

20. This contract is also held by Waste Management at a currently budgeted annual cost of $620,000. This cost and associated fixed costs are recovered by way of sales of refuse bags. Bag sale numbers declined steadily as customers move to commercially supplied wheelie bins but have recently stabilised. Bag prices are set to recover costs and to maintain relativity with neighbouring Council prices. The table below shows trends in bag sale numbers, total revenue and net profit for the cost centre.

		Refuse Collection
	2012	2013	2014	2015	2016
Bag Sales Numbers 000s	587	507	503	482	480
Total Revenue	868	946	935	1017	1100
Nett Profit $000s	251	256	334	211	340

Other Councils also sell refuse bags, price comparisons are as follows: HCC $2.50, UHCC $3.50, PCC $2.50, and WCC $2.50.

Links between Activity 11 and Community Goals

21. Solid Waste management is essential for the health and quality of life of the community, the local economy, and the environment. The Activity contributes most significantly to the following Community Goals:

Community Goal How Activity 11 Contributes

A Healthy Natural Environment

Healthy People

A Strong and Diverse Economy

We value and protect the natural environment and promote a sustainable city. Resources are used efficiently and there is minimal waste and pollution

We live healthy lives, and our City’s services help to protect our health and environment

A City that grows existing businesses and attracts new business activity, with a focus on the research and development sector

All members of our community benefit from a strong economy, and we attract increasing numbers of visitors

By providing an environmentally responsible facility for the disposal of residual refuse and by providing an efficient weekly service whereby residents can easily dispose of refuse, and recyclables, the Activity helps protect the environment and supports personal health

By providing an efficient, cost effective and competitive residual disposal facility, the Activity facilitates business growth and development

Summary of Related Strategies and Policies

22. Key documents involved in the Activity are the Contracts which are in place as described above, the Landfill Management Plan, and the Landfill Long Term Capital Development Plan. These documents spell out an expectation of performance of the contracts involved, set the scene for future operations, and ensure the achievement of Key Performance Indicators for the Activity as set out in Council’s Long Term Plan (LTP). The Activity is also a key element within Council’s Environment Sustainability Strategy, although responsibility for delivery of the various waste minimisation targets therein rests with Council’s Environment Team.

Environmental Factors

23. There are three main areas of potential environment impact or concern relating to the activity, being:

Litter concerns associated with refuse and recycling activities

Discharges to air and land from landfill operations, and

The Emissions Trading Scheme.

24. Refuse and recycling collection contracts include a requirement for the contractor to remove any roadside litter. This can be a challenge on windy days, but audits of contractor performance generally show scores above 85% for recycling, and 90% for refuse collection, while the RFS System typically records only one to two complaints per week.

Trials of net covers on recycling bins have met with limited success. Regular “educational” advertising encourages residents to pack their recycling securely and/or use plastic bags to contain lighter materials.

25. Discharges to land and air for landfill operations are controlled by Resource Consent Conditions. In effect we are talking about odour issues, and potential contamination of ground water. Landfill operations are carefully designed to separate clean stormwater from potentially contaminated water. Stormwater run-off from surrounding hills is collected in perimeter drains and channelled to a large holding pond where sediments settle out, before releasing into Tip Stream and the Hutt River.

Run-off from operating areas of the landfill is allowed to filter through the landfill to be collected in leachate drains which are connected to Council’s wastewater network.

Regular monitoring of groundwater via bores above and below the Landfill, and of water quality in Tip Stream, confirms no contamination of these water sources.

Odour complaints from the landfill do occur occasionally as a result of particular operating circumstances, particular weather conditions, or a combination of both. No odour complaints have resulted in any “breach of consent” notifications from Greater Wellington Regional Council in the last 10 years.

26. The Emissions Trading Scheme provides a financial incentive for Council to ensure that good gas capture and destruction methodologies are in place. While current penalty costs are not particularly significant, ETU market prices are beyond Council control.

Service Level Performance

27. The table below shows the Activity 11 performance measures as set out in Council’s LTP, and recent performance.

MEASURE & TARGET

ACHIEVED 2012-13

ACHIEVED 2013-14

ACHIEVED 2014-15

PEER AVERAGE 2014-15

ACHIEVED 2015-16

SOURCE OF INFORMATION

Residents’ satisfaction with:

• rubbish collection

≥ 93% of those expressing an opinion

• refuse disposal

≥ 91% of those expressing an opinion

95%

81%

93%

83%

96%

82%

88%

85%

94%

88%

NRB Communitrak Survey

No resource consent-related infringement notices received from GWRC

100% compliance

N/A

100% compliance

Compliance Reports from GWRC

Note: Survey percentages quoted exclude those who responded ‘don’t know’. The definition of “peer average” is included in the Appendices to this Annual Report.

MEASURE & TARGET

ACHIEVED 2012-13

ACHIEVED 2013-14

ACHIEVED 2014-15

PEER AVERAGE 2015 - 16

ACHIEVED 2015-16

SOURCE OF INFORMATION

Residents’ satisfaction with:

• litter control

• recycling

≥ 86% of those expressing an opinion

89%

97%

89%

93%

90%

93%

77%

86%

88%

89%

NRB Communitrak Survey

Note: Survey percentages quoted exclude those who responded ‘don’t know’. The definition of “peer average” is included in the Appendices to this Annual Report.

Financial Overview

28. Activity 11. Solid Waste accounts for approximately 5% of all Council expenditure equating to approximately $8M in the year ending 30 June 2016.

29. Financial History for Activity 11 is shown in the following table.

FINANCIAL DETAILS FOR SOLID WASTE ACTIVITY
	Actual	Actual	Actual	Actual	Forecast	Budget
	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
	$000	$000	$000	$000	$000	$000
REVENUE
User Charges	10,949	12,911	13,888	13,015	13,965	13,980
Other Revenue	309	5	61	13	5	5
TOTAL REVENUE	11,258	12,916	13,949	13,028	13,970	13,985

EXPENDITURE
Operating Costs	5,885	7,273	6,837	6,432	6,857	7,234
Finance Cost	315	305	660	503	268	300
Depreciation	507	546	565	702	626	896
TOTAL EXPENSES	6,707	8,123	8,062	7,637	7,751	8,431

NET OPERATING SURPLUS	4,551	4,792	5,887	5,391	6,219	5,854

CAPITAL NEW	2,470	1,100	1,359	3,062	2,200	2,800

Impact of Increasing/Decreasing Service Levels

30. Changing service levels would have little or no impact on physical operations undertaken within this activity, or on the financial performance thereof. Discussions are ongoing with contractors to seek more efficient ways of service delivery, but to date no significant step changes appear feasible; in large part because a major part of contract costs are fixed.

Fees and Charges

31. Landfill and refuse bag fees have been detailed above. The landfill business in particular is a significant contributor to Council revenues, and profits made and cash surpluses generated have major impacts on Council’s ability to achieve rates and debt targets.

32. For these reasons the various operations within the Solid Waste activity are run on as ‘commercial’ a basis as possible.

33. Fees and charges are set firstly to ensure that costs and risks are covered, and secondly to generate reasonable profits within a competitive market, while at the same time contributing to community outcomes and recognising Council’s role as a leader in matters of environmental responsibility and customer service.

Reason for the review

34. This review is required because 4 years have passed since this Activity was last reviewed.

Present arrangements for governance, funding and service delivery

35. In considering Governance, Funding and Delivery Models it is worth splitting the Solid Waste Activity into its broadly component parts:

a. Collection contracts and

b. Landfilling operations

Taking each of those in order:

Collection Contracts

Both recycling and refuse collection contracts are contracted out to commercial operators and this is a fairly standard model throughout the country generally held to deliver greatest efficiencies and therefore best outcomes for ratepayers. Current methods of funding are described above. Other options exist but the current model of user pays for refuse and rating for recycling would logically seem to be best to encourage reduction of the former and the participation in the latter. There may be efficiencies in taking a regional approach to these contracts and this is currently being investigated via the Regional Joint Waste Minimisation Committee.

Landfilling Operations

Delivery and Funding

Design and development, management and operation of Landfills is highly specialized and there would seem to be no other practical delivery option than the current tendering/contracting model. With regard to funding the current user pays model is standard throughout the country and is in line with Council’s own Revenue and Funding Policy.

Governance

The current Governance structure is that the Landfill is owned by Council and governed in the same manner as other Council Activities. Other models include CCO or a Joint Venture with or sale to a commercial operator. Council has in the past taken expert advice on the CCO option, but this was not recommended. Given the commercial nature of current operations it is difficult to see how a CCO operation could bring sufficient added value to offset the inherent tax liability.

Should any commercial operator express an interest in JV or Purchase then Council would no doubt consider such an offer if it looked likely to deliver greater benefits to ratepayers than the current model. Given the specialised nature of landfill operations likely buyers or JV Partners are few and none have to date expressed any firm interest.

For these reasons officers do not recommend a full Section 17A review of the Solid Waste Activity at this time.

Appendices

There are no appendices for this report.

Author: Bruce Sherlock

General Manager, City Infrastructure

Approved By: Tony Stallinger

Chief Executive

110 28 February 2017

City Development Committee

08 February 2017

File: (17/161)

Report no: CDC2017/1/65

General Managers' Report

Purpose of Report

1. The purpose of this report is to provide the Committee with updates on a number of projects that it has previously identified. This will be done on a regular basis.

Recommendation

It is recommended that the Committee notes the updates contained in the report.

Background

2. At the beginning of the 2013-2016 triennium, the Chair of City Development asked for a General Managers’ report to be provided at each meeting. This would mainly be for update purposes but from time to time could include items for decision making.

Discussion

3. An update of a number of projects is provided below. The items to be included were discussed by the City Development Committee and may change from time to time.

City Wide and CBD Remissions Policy and Funding.

4. A City Wide and a CBD Remissions policy have been in operation since 1 July 2012.

5. As of this financial year to date – 1 July 2016 to 31 Jan 2017 20 new applications have been received and funding provided as follows:

CBD Remissions	Appns	Approved	Declined
A new apartment development of at least 8 attached residential dwelling units OR of at least 500m2 in floor area	0	0	0
A new commercial development or new building extension of at least 500m2 floor area	2	2	0
A new development with a mix of apartments and commercial space of at least 500m2 in floor area	1	1	0
Total CBD	3	3	0

City Wide Remissions – anywhere in the City including the CBD	Appns	Approved	Declined
A medium or high density residential development	13	13	0
New non-residential building or building extension of at least 500m2	4	4	0
A conversion of a building from any use to residential apartments	0	0	0
Total City Wide	17	17	0
Total All Policies	20	20	0

Fee type remitted 1 July 2016 – 31 Jan 2017	Amount
Rates	$166,747
Development contributions	$75,849
Reserve contributions	$200,870
Resource consent fees	$54,142
Building consent fees	$203,749
TOTAL	$701,357

Total Fees Remitted Annually From 1 July – 30 June
FY2012-2013	$159,000
FY2013-2014	$873,000
FY2014-2015	$712,000
FY2015-2016	$548,000
FY2016-2017 (7 months)	$701,357

6. The figures in the above table reflect the amount of applications for remissions received and not the total number of developments being built.

Riddiford Gardens

7. Physical works commenced in November 2015 on Phase 2 of the Riddiford Gardens Landscape Upgrade project, starting with development of the north and west sides of the Administration Building.

8. The work on the front of the Administration Building and the electrical sub-station was largely completed within a very tight deadline to enable the building to open to customers on 22 March 2016.

9. All of the remaining work for Phase 2 has now been completed apart from some final paneling to the front of the new toilet pavilion, which is expected to be completed this month.

10. Concept design options for Phase 3 work were prepared and considered by Council in confirming the 2016/17 budget. A meeting with key stakeholders was held on 12 July 2016 to consider the concept design before the detailed design commenced. Phase 3 design has been mostly completed and is currently being costed.

11. SLT has agreed that the Phase 3 works will be negotiated with Naylor Love, the incumbent contractor, to ensure continuity and coordination with the Events Centre work. As works are not expected to commence on Phase 3 until April, a carryover has been forecasted in the latest financial report.

Administration Building and Halls

12. The status of these projects is as follows:

Laings Road Administration Building:

13. The Council Administration Building project is drawing to a close. The team is working to complete the final tasks of correcting the remaining defects, handing over operational manuals and providing instructions within the next few months.

Town Hall and Events Centre

14. Since the last report, there has been a large amount of demolition progress in the Town Hall. More significantly, 1,300 tonnes of concrete has been poured, the buttresses supporting the Town Hall and the Atrium/Foyer have been installed and construction of the Atrium/Foyer has commenced.

15. The construction programme is being continuously reviewed, and is still subject to:

a. The Value Engineering process;

b. Consenting process;

c. Final trade tender packages approved and released as required;

d. Unforeseen delays to materials or work on site.

16. The current programme shows construction completion in January 2018, and a handover to the Manager in March after a commissioning period.

17. Detailed design of the operational fit-out of the Events Centre will advance with a higher degree of priority now. We have a contractual obligation to USAR to provide a turn-key facility that will match their Hotel’s four star standard. The focus is to work on designing the required standard of operational capability within the agreed budget. Officers are working with the consultant team and the operator on this.

Avalon Park

18. The development of the playground area was completed in late September 2016 with the official opening held on Sunday 2^nd October 2016. Since then the playground has been extremely popular with large numbers of visitors over the summer months.

19. Further funding of $2M to complete the next stage of works (pond and southern entrance) has been confirmed in the 2016/17 Annual Plan. Developed design of the next stage is almost completed and has been estimated. The work is to be tendered later in February, through a two stage open tender process. As works are not expected to commence on the next stage until April, a carryover has been forecasted in the latest financial report.

CBD Promenade - Riverlink

20. Activity on this project is as follows:

· Riverlink the GWRC, NZTA, and HCC joint project will reach 90% Design Development during mid March 2017. This will include cost estimates.

· Consents and land designation processes will run 2017-2019.

· Construction of flood protection construction is programmed 2019 – 2025.

· Businesses: Officers are working with affected business owners in Melling and Pharazyn Street areas.

· Economic analysis by HCC officers is favourable for investment in the promenade. It is predicted that capital investment by HCC would pay itself back within 25 years.

· Property Developers: discussions are being facilitated through the Mayor with developers on Daly Street. A developer is considering a resource consent application for 10 Daly Street.

· Future land use activities are being considered in the areas of Marsden and Pharazyn Streets. Low level residential, train transport, park and ride, and aligned activities such as day-care are being considered.

· Communications: HCC’s January 2017 survey gained 605 responses which showed very strong support for the Promenade, CBD apartment living, improving public transport, and improving walking and cycling.

· NZTA: is seeking and now facilitating a Hutt ‘story’ to understand the city’s future plans for growth and land use. Kaikoura has resulted in increased competition for transport funding. NZTA now needs to more thoroughly analyse all discretionary projects such as Melling in order to make funding decisions.

· Funding: The Community Plan Committee during February 2017 will consider the allocation of up to $39M Hutt City Council funding for this project.

· HCC officer reporting: will continue to SLT and the CBD Task Force.

Community Services Group and Community Facilities Trust (CFT) Projects

21. The status of these projects is as follows:

Fraser Park Sportsville Stage 2 – Multipurpose Sports Building

22. The CFT has now raised a total of $1.64m of its $3.2m target to complete Stage 2. Because of this success the CFT has awarded a conditional contract for the construction of the project to Armstrong Downes of Lower Hutt. The contract is conditional upon the CFT raising the balance. Armstrong Downes is now working with the CFT design team to drive further cost out of the project. The CFT is also continuing with a fundraising campaign to raise the balance. The CFT is likely to present to Council in May 2017.

Fraser Park Turfs

23. The turfs are performing as expected and Fraser Park Sportsville is doing an excellent job promoting their use to the sporting community. Occupancy on both turfs is running at over 90% and considerably in advance of other turfs in the city.

Walter Mildenhall Park Redevelopment

24. The main clubrooms, the external greens, the tennis and petanque courts, landscaping, fencing and lighting are now complete and ready for fit out by the clubs. The built space is attractive, sunny and generously proportioned and represents a huge step up on the amenities of both the legacy club facilities.

25. The Naenae Bowling club is now project managing the movement of the combined bowls clubs, petanque club and the RSA into the new facility. The actual date by when the clubs will move is dependent upon just when the club is able to secure a new liquor licence for the site.

26. Progress on the adjacent covered internal green has been slower than expected because of the 7.8 earthquake, the highly changeable weather over the summer, and 8 roof beams being built out of agreed construction tolerances. The out of tolerance beams have to be corrected and this can only be done by removing the beams from the site and returning them to the engineering subcontractor in Whanganui to be re-machined. The exact time programme for this complex work is at this point uncertain because it will delay work by Structureflex (the company who will install the fabric roof) and Superturf. (The company who will install the artificial turf under the completed roof).

27. Hawkins Construction regret the delay and will meet all costs involved in putting right the construction fault. Fortunately the design of the facility will allow club members to use the new club room and community facilities including the external greens and tennis courts, while construction work continues on the adjacent undercover bowling green.

28. Lastly, work on the driveway in from Vogel Street and the associated parking courtyard cannot be completed until the indoor green is completed and this cannot be done until the fabric roof is in place. Access to the site and the car parks will however be available from Treadwell Street.

Huia Pool Development

29. The project continues to progress and the building is starting to take shape. Set out below are some of the major milestones that have been completed since the last update:

· All structure steel for the pool halls and gym areas has been completed

· The first floor was poured

· The pool walls, pipes and filter have been installed

· The LTS swim pool roof has been completed

· All the services pipes – gas, power and water – have been laid underground

· Blockwork for the changing room walls and lift shaft has commenced

· Framing and enclosing of the first floor

30. The project is currently on track for completion in July 2017 and the budget is currently tracking with a $180k positive forecast variance.

Stokes Valley Community Hub

31. Contractors started on site in October. Asbestos removal and demolition took place in 2016. The site works are being undertaken from early 2017 with foundations expected to begin in February. Between now and May 2017 all structural work will be completed.

32. Unfortunately the additional work required for asbestos removal as well as unexpected soft ground, has meant the majority of the project contingency has been committed. Fortunately given the nature of the contract, the remaining work is essentially a fixed price, reducing the overall budget risk.

33. The temporary library is operational at the Stokes Valley Masonic Lodge. This will be in operation until the new hub is opened which is expected Spring 2017.

34. A series of community activities have been developed and delivered by the Libraries, Leisure Active and Community Relationships and Partnerships teams. Approximately 12 programmes and events will have taken place by the time the hub opens. In addition, several arts projects are in progress which will result in permanent installations at the new hub. These have been designed to reflect local culture and history.

35. Overall the project is tracking on time and on budget at this stage.

Healthy Families Lower Hutt

36. Smoke-free Lower Hutt: Smoke-free signage, branding and messaging has been signed off and provided to GWRC, Parks and Gardens team, Facility Managers and cafés/restaurants with outdoor pavement dining.

37. GWRC have produced and installed metal smoke-free signs in Lower Hutt train stations, and smoke-free stickers have been installed at priority bus shelters.

38. All Council run events are now smoke-free and will be promoted as smoke-free going forward with flags developed to support this message.

39. The team were present at Te Ra o te Raukura festival to raise awareness of the smoke-free outdoor public places policy.

40. Next phase of the policy is to explore smoke-free town precincts, beginning with engagement with the Wainuiomata community.

41. HVDHB has been provided with branding and messaging to develop similar signage for Hutt Hospital grounds.

42. Water: Working with Events Manager to enable all Council led events to be pro water and ensuring access to public drinking water at events is easily accessible.

43. Working with Council colleagues to increase access to public drinking water through installation of water fountains in Lower Hutt suburbs including Stokes Valley, Taita, Naenae and Wainuiomata.

44. Alcohol Bylaw: Healthy Families Lower Hutt Leadership Group submitted on the Control of Alcohol in Public Places Bylaw.

Science & Technology Funding and Activity

45. Council allocated $160,000 in the 2016/2017 budget for projects related to Technology Valley. Projects include:

· A dedicated staff resource to focus on development of the STEMM business sector in the city.

· Mayoral Scholarships for the Open Polytechnic Graduate Certificate in Primary Science Teaching (ongoing programme).

· Scholarships for Lower Hutt resident students to study at Weltec’s School of Engineering. These are matched by industry in the city (ongoing programme).

· The Hutt Science Centre. 38 primary schools in the city are enrolled in the Hutt Science Centre programme and the resource centre has been expanded at Naenae Primary School. A professional development programme has commenced for primary and secondary school teachers. Following 2 successful rounds a further round of funding has been applied for from MBIE to run a science programme in schools in the North East in 2017.

46. Manufacturing Accelerator

Creative HQ, is through a 12 month pilot programme called 1st Assembly at 125 High Street. 1st Assembly is running an active programme of startup meet-ups, manufacturing meet-ups and hardware themed workshops. 1st Assembly runs monthly "Hardware sessions" that link into Creative HQ's 1400-member "Startup Garage" meet-up group. Both Creative HQ and HCC are planning to continue 1St Assembly as a mechanism to support STEM businesses in Hutt Valley.

The space at 125 High Street now accommodates six ventures Conduce, Makegood, Fre3Formd, Quamcom, Yali, Simutech and temporarily housing NEC. Awareness has grown significantly as a result of the strong links that Lightning Lab Manufacturing formed with other stakeholders, such as the Hutt Valley Chamber of Commerce, Technology Valley Group, and Callaghan Innovation.

On 15th October 1st Assembly hosted an Open Day featuring hardware workshops and demos, opportunities to meet business start-ups and as well as activities for kids. Over 2,000 people visited the space throughout the day.

47. Maker - Space (Techshop) Feasibility - TechShop makerspace market assessment

Initial meetings with proposed key stakeholders have been held and all parties have a level of interest to use a makerspace. The market assessment report is nearing completion, with detailed information being sourced from Hutt City Council to feed into the financial models.

Having access to “real” numbers will enable to council officers to run a facilitated session with proposed key stakeholders to start work on individual business cases to find specific levels of support for the project.

Feedback to date indicates the rapid implementation of a TechShop makerspace may not suite the interested parties, due to other priorities, such as large scale building projects underway for VUW and WelTec.

Urban Growth Strategy Implementation

48. The Urban Growth Strategy 2032 was adopted in 2014.

49. Implementation projects being worked on include:

· Wainuiomata - extension of Wise Street – This work has been undertaken enabling the start of a consented 31 lot private subdivision on one of the landholdings along the extension. Other landholdings along this extension are also being considered for future residential development.

· Upper Kelson – extension of Major Drive – the area of potential development is significantly reduced following the ecological impact report. A revised scheme is being considered.

Council and Urban Plus have undertaken discussions with the owner of the land consented for a residential development of approx. 140 dwellings off Kaitangata Crescent, Kelson with intent of activating this consent. The consent is live until 2019.

· Stokes Valley – extension of Shaftsbury Grove – Urban Plus received an unsolicited offer for the Shaftesbury Grove site. Given the acceptable price being paid and that Urban Plus could no longer achieve the initial yield of sections anticipated due to ecological factors the sale to an experienced developer made sense. The agreement is still dependent on Urban Plus achieving a number of conditions.

· The Wainuiomata Development Plan has been finalised and presented to Council. An update is being provided by separate report to the City Development Committee.

· District Plan Work Programme - work continues on the residential intensification changes required for the UGS.

· It is intended to continue the Development Incentives and Rates remission schemes beyond their 30 June 2017 expiry. A separate paper is being brought to this Committee in that regard.

CBD

50. Current CBD Development activity includes:

· Hotel development – new resource consent applied for January 2017

· 2 Connelly Street Medical Centre – Underway

· Post Office Building – Completed

· Gibson Sheat Building – construction of carpark building underway

· Hutt Baptist Church – new façade and roof replacement work completed.

· Centre City Plaza – earthquake strengthening completed – earthquake damage to commercial offices under repair.

· 531 High Street – lease to Kiwibank

51. Retail activity in the CBD has been significantly impacted due to building damage and cordons resulting from the November 2016 earthquake. Marketview data shows 12.8% decline in spend in the quarter to 31 Dec 2016 compared with the same period last year.

52. The Queensgate Shopping Centre remains at reduced capacity while the demolition of the Event Cinemas and associated carparks building. Cordoned areas of the Centre are scheduled for reopening April 2017.

CBD Free Car Parking Trial

53. The Council resolved in December 2016 after a one year trial to end free parking in the HC2 Shopper Parking Zone in the CBD from 3 April 2017. Long term parking charges reverted to pre-trial levels as at 16 January 2017.

54. Council has asked officers to investigate a full city-wide review on the future parking demands the city will face and with results expected to be presented back to Council later this year for consideration.

CBD Bus stops

55. 2016 work commissioned by HCC and GWRC could not find evidence of significant road safety problems. However Colmar Brunton survey work showed that public transport is a major contributor to the economic activity in the CBD. Work on this project has been put on hold indefinitely.

Suburban Shopping Centres

56. Naenae Shopping Centre Upgrade 2015-2016 was completed during 2016.

57. Waterloo Shopping Centre (Trafalgar Square) 2015-2016 was completed during mid 2016. A further upgrade will be done to the western side (Birch Street) during early to mid 2017.

Petone 2040.

58. Stage Two work is almost complete and a Council Briefing was given on 7 Feb 2017. Fifteen high level projects have been identified but require further analysis and development eg. Jackson Street, Heritage, Strategic Infrastructure Projects, and new Housing Areas.

59. The Community Plan Committee will consider additional funding in Feb 2017.

Options

60. There are no options. Information is for noting only.

Consultation

61. No consultation was required for this report. Consultation relevant for the specific projects outlined above have been undertaken as required

Legal Considerations

62. There are no legal considerations.

Financial Considerations

63. There are no financial considerations. All funding discussed in this paper has been approved at previous meetings or were reported as budget implications to Council on 16 February.

Other Considerations

64. In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of the local government in that it is mostly a noting paper on current activity. It does this in a way that is cost-effective because it provides timely information to Council.

Summary Table

The table below provides an overall summary of the timing and status of each of the projects mentioned in this report.

Project	To be completed by 30 June 2017	Project completion date	Status
Events Centre	Significant progress in the structural construction of the Event Centre. Significant progress in the reinstatement of the Town Hall. Operational fit-out agreed.	Early 2018	Revised
Riddiford Gardens	Phase 2 works are now completed, apart from minor exterior works to toilet pavilion. Phase 3 works design and estimates almost complete.	March 2018	Phase 2 works completed. Design of phase 3 works almost complete with work to commence in April.
Avalon Park	Hawkins has completed work on playground space. Design and estimates for next stage almost completed and ready for tendering.	June 2017	Playground stage completed. Design of next stage nearing completion. Works planned to start in April.
CBD Promenade - Design	Design and Costing stage	June 2017	On track
Regional Bowls Centre	Design complete. Fundraising 95% achieved	Target: Mid 2017	Late
Huia Pool Development	Construction 50% complete	July 2017	On track
SV Community Hub	Construction underway	September 2017	On track
Fraser Park Sportsville Stage 2	Detailed design 95% complete	2016/17 (funding dependent)	Late
UGS – Wainuiomata Wise St	Draft design and cost estimates completed. Discussions with residents commenced		Completed
UGS – Upper Kelson	Revised design and cost estimates completed. District Plan team to progress Plan Change	June 2020	On track
UGS – Stokes Valley	Draft design and cost estimates to be completed. District Plan team to progress Plan Change		Possible private sector development
UGS – Wainuiomata Development Plan	Plan being finalised		Completed. Coordinator appointed April 2016.

Appendices

There are no appendices for this report.

Author: Kim Kelly

General Manager, Strategic Services

Approved By: Tony Stallinger

Chief Executive

Cr Barry	Cr Barratt
Cr Cousins	Cr Edwards
Cr Lewis	Cr Lulich
Cr McDonald	Cr Milne
Cr Sutton (Deputy Chair)	Mayor Ray Wallace (ex-officio)

Project Title	MAKING PLACES REVIEW
Project Purpose	The purpose of the project is to review and refresh the concept and document to: Ø Ensure that the community is still supportive of Making Places, understands the intent and has an opportunity to contribute appropriately into the project. Ø Update the information in the Making Places document to reflect work that is completed and potential projects
Background	Council has identified the CBD as having a key role to play in the rejuvenation of Hutt City and its transformation into the “partner city” to Wellington in the Wellington Region. Making Places followed on from the Vision CBD 2030 Project and is about taking the ideas for the future of Hutt City’s CBD found within the visioning work into an overall design framework to unlock the CBD’s potential. This long term design framework has the overall aim to create a CBD that is vibrant, economically resilient, artistically and culturally rich and people friendly Since Making Places was officially adopted by Council in 2009, a number of projects have either been completed or decided against. These projects need to be removed from the existing document to ensure that people are able to access an up to date document and also that they can access information about the completed projects.
Project Sponsor	Kim Kelly
Project Manager	Paki Maaka
Project Team	· Strategic Services Group · Roading and Traffic · Parks and Gardens
Objectives	1. Review and refresh Making Places – concept and document
Milestones	1. Complete TOR for review and refresh of Making Places – 13 December 2016 2. Sign off by SLT – February 2017 3. Sign off by CDC – February 2016 and Council March 2016 4. Communications strategy developed 5. Stocktake completed of: · actions completed, underway, not started and · actions unlikely to be undertaken that need reconsideration 6. Options for review and approach developed to discuss with Councillors 7. Councillor workshops and drafting of final document for community engagement. Councillor decision on approach 8. Community engagement undertaken – survey, focus groups, public meetings March 2017 - 30 May 2017 9. Paper to CDC with reviewed Making Places document
Funding	Funding of the Review of Making Places is dependent on the option taken
Stakeholders (internal and external)	External · Community – individuals, businesses and organisations · Contractors, spatial planners · Developers Internal · Councillors, Community Board and Community Committees · SLT · Council officers across contributing divisions
Decisions makers	· Council · SLT

No.	Title	Page
1 ⇩	Tumeke Taita Festival - Impact Report	99
2 ⇩	Tocker St - Proposed Temporary Road Closure	101
3 ⇩	Weetbix TRYathlon - Impact Report	102
4 ⇩	Huia St - Proposed Temporary Road Closure	104
5 ⇩	Silverstream Hill Climb - Impact Report	105
6 ⇩	Reynolds Bach Rd - Proposed Temporary Road Closure	107