Agenda of Extraordinary Meeting of Council

COUNCIL
Membership:	13
Meeting Cycle:	Council meets on a six weekly basis (Extraordinary Meetings can be called following a resolution of Council; or on the requisition of the Chair or one third of the total membership of Council)

Power to (being a power that is not capable of being delegated)[1]:

• Make a rate.

• Make bylaws.

• Borrow money other than in accordance with the Long Term Plan (LTP).

• Purchase or dispose of assets other than in accordance with the LTP.

• Purchase or dispose of Council land and property other than in accordance with the LTP.

• Adopt the LTP, Annual Plan and Annual Report.

• Adopt policies required to be adopted and consulted on under the Act in association with the LTP or developed for the purpose of the Local Governance Statement.

• Appoint the Chief Executive.

• Exercise any powers and duties conferred or imposed on the local authority by the Public Works Act 1981 or the Resource Management Act 1991 that are unable to be delegated.

• Undertake all other actions which are by law not capable of being delegated.

• The power to adopt a Remuneration and Employment Policy.

Decide on:

Policy issues

• Adoption of all policy required by legislation.

• Adoption of policies with a city-wide or strategic focus.

District Plan

• Promotion of Plan Changes and Variations recommended by the District Plan Committee prior to public notification.

• The withdrawal of Plan Changes in accordance with clause 8D, Part 1, Schedule 1 of the Resource Management Act 1991.

• Approval, to make operative, of District Plan and Plan Changes (in accordance with clause 17, Part 1, Schedule 1 of the Resource Management Act 1991).

Representation, electoral and governance matters

• The method of voting for the Triennial elections.

• Representation reviews.

• Council’s Code of Conduct and Local Governance Statement.

• Elected Members Remuneration.

• The outcome of any extraordinary vacancies on Council.

• Any other matters for which a local authority decision is required under the Local Electoral Act 2001.

• All matters identified in these Terms of Reference as delegated to Council Committees (or otherwise delegated by the Council) and oversee those delegations.

• Council‘s delegations to officers and community boards.

Delegations and employment of the Chief Executive

The review and negotiation of the contract, performance agreement and remuneration of the Chief Executive.

Meetings and committees

• Standing Orders for Council and its committees.

• Council’s annual meeting schedule.

Operational matters

• The establishment and disposal of any Council Controlled Organisation or Council Controlled Trading Organisation and approval of annual Statements of Corporate Intent on the recommendation of the Finance and Performance Committee.

• Civil Defence Emergency Management Group matters requiring Council’s input.

• Road closing and road stopping matters.

• All other matters for which final authority is not delegated.

Appoint:

• The non-elected members of the Standing Committees (including extraordinary vacancies of non-elected representatives).

• The Directors of Council Controlled Organisations and Council Controlled Trading Organisations.

• Council’s nominee on any Trust.

• Council representatives on any outside organisations (where applicable and time permits, recommendations for the appointment may be sought from the appropriate standing committee and/or outside organisations).

• The Chief Executive of Hutt City Council.

• Council’s Electoral Officer, Principal Rural Fire Officer and any other appointments required by statute.

HUTT CITY COUNCIL

Extraordinary meeting to be held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

Tuesday 24 April 2018 commencing at 5.30pm.

ORDER PAPER

Public Business

1. APOLOGIES

Crs Briggs and Sutton.

2. PUBLIC COMMENT

Generally up to 30 minutes is set aside for public comment (three minutes per speaker on items appearing on the agenda). Speakers may be asked questions on the matters they raise.

3. CONFLICT OF INTEREST DECLARATIONS

4. Rights of Way - Avalon Development (18/639)

Report No. HCC2018/2/63 by the Divisional Manager, Parks and Gardens 10

Mayor’s Recommendation:

“That the recommendations contained in the report be endorsed.”

5. Waddington Drive Local Area Traffic Management Scheme (18/580)

Report No. HCC2018/2/121 by the Traffic Asset Manager 16

Mayor’s Recommendation:

“That the recommendations contained in the report be endorsed.”

6. Greater Wellington Regional Council's Proposed Remit on Climate Change Investment Issues (18/525)

Report No. HCC2018/2/40 by the Divisional Manager, Democratic Services 36

Mayor’s Recommendation:

“That the recommendations contained in the report be noted for discussion.”

7. QUESTIONS

With reference to section 32 of Standing Orders, before putting a question a member shall endeavour to obtain the information. Questions shall be concise and in writing and handed to the Chair prior to the commencement of the meeting.

8. EXCLUSION OF THE PUBLIC

MAYOR'S RECOMMENDATION:

“That the public be excluded from the following parts of the proceedings of this meeting, namely:

9. Consideration of Matters Relating to Council's Strategic Property Portfolio (18/640)

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

(A)	(B)	(C)

General subject of the matter to be considered.	Reason for passing this resolution in relation to each matter.	Ground under section 48(1) for the passing of this resolution.

Consideration of Matters Relating to Council's Strategic Property Portfolio.	The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities (s7(2)(h)). The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) (s7(2)(i)).	That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.

This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as specified in Column (B) above.”

Kathryn Stannard

Divisional Manager, Democratic Services

10 24 April 2018

Extraordinary Meeting of Council

19 April 2018

File: (18/639)

Report no: HCC2018/2/63

Rights of Way - Avalon Development

1. This report seeks Council agreement to grant rights of way over the northern section of the internal road at Avalon Park. This is required as an interim measure in order for the subdivision at the northern end of the park to be approved.

2. Once the subdivision plan has been deposited with LINZ and new titles issued, a separate process will be undertaken to have Lot 4 gazetted as legal road (and vested in Council in the usual way).

Recommendation

That Council;

(i) grants, in accordance with section 48 of the Reserves Act 1977, rights of way over Lot 4 in favour of Lots 1-3 and 5 as shown on the attached draft subdivision title plan LT 518424, being a section of the internal road at the northern end of Avalon Park; and

(ii) consents as landowner and administrator of the Reserve, once LT Plan 518424 has been deposited and new titles issued, to Lot 4 being gazetted as legal road under s114 Public Works Act 1981 (Lot 4 being a section of the internal formed road at the northern end of Avalon Park).

3. Council agreed in 2016 to the reserve revocation and subsequent plan change of the northern end of Avalon Park. Those processes have been completed. A subdivision plan has since been prepared and is ready to lodge with Land Information New Zealand.

4. Council was seeking to vest as legal road the first 150 metre section of the internal park road as part of this subdivision plan but has had recent advice that this cannot be incorporated into the current plan, due to the reserve revocation process not including the road.

5. In order for the subdivision plan to be approved, it is proposed that Council grant rights of way over the road, which is shown as Lot 4 in the attached draft title plan. This is an interim solution in order to provide legal certainty for Urban Plus Limited (UPL). It will allow new titles for the development land to be issued without any further delay, so that UPL can progress its development.

6. Once the new titles have issued, it is intended that a separate process will be undertaken for Lot 4 to vest as legal road by way of section 114 of the Public Works Act. The rights of way will be extinguished when that process is complete.

7. Section 48 of the Reserves Act 1977 enables Council to grant rights of way over reserve land. As the reserve is not materially altered or the rights of the public permanently affected, there is no requirement to consult.

8. Council, as both landowner and administrator of the Reserve, is required to consent to the gazetting of Lot 4 as legal road when that process is undertaken. The consent is given by Council as the owner and administrator of the reserve land that is Lot 4, and also as the continuing owner of Lots 2 and 5, which will remain part of the Avalon Park Reserve. DOC consent will be sought at the appropriate time.

Appendices

No.	Title	Page
1 ⇩	Title Plan for Northern Area of Avalon Park	12

Author: Bruce Hodgins

Divisional Manager, Parks and Gardens

Approved By: Matt Reid

General Manager City and Community Services

16 24 April 2018

Extraordinary Meeting of Council

19 April 2018

File: (18/580)

Report no: HCC2018/2/121

Waddington Drive Local Area Traffic Management Scheme

Purpose of Report

1. The purpose of this report is to seek Council’s approval for the installation of the Waddington Drive Local Area Traffic Management Scheme in Waddington Drive, Naenae.

Recommendations

It is recommended that Council:

(i) approves the installation of speed cushions and speed humps as shown in Appendix 4;

(ii) approves the installation of a Zebra pedestrian crossing as shown in Appendix 4; and

(iii) approves the installation of No Stopping At All Times Restrictions as shown in Appendix 4.

For the reasons that the proposed scheme will reduce vehicle operating speeds in the street, improving the road safety level of service for all road users and improve safety for vulnerable road users in the vicinity of the proposed pedestrian crossing.

Background

2. On Boxing Day 2017 a motorist lost control of their vehicle and crashed through the fence of a private residence on the corner of Waddington Drive and Cole Street, Naenae.

3. The incident was reported in the media at the time as it was the second time an errant vehicle had damaged the fence, which had only recently been repaired.

4. The residents established a row of concrete blocks on the berm outside their home in response to the incident.

5. Several weeks later another motorist lost control of their vehicle and struck the concrete blocks.

6. Examination of the speed data for Waddington Drive indicates high mean operating speeds and occasional maximum speeds more than double the posted speed limit of 50 km/h.

7. The reported crash history over the previous five years indicates that loss-of-control crashes are over-represented, particularly for a 50 km/h suburban area.

8. During the site investigations the Vice-Principal of Naenae School highlighted issues related to pedestrian safety, particularly with students crossing the road around the morning and afternoon drop off and pick up periods.

9. This report presents options for reducing the operating speed within the affected portion of Waddington Drive, and improving the road safety level of service for vulnerable road users.

Discussion

10. The officer’s investigation, and subsequent recommendations, relate to the section of Waddington Drive between Naenae Road and Seddon Street, Naenae rather than just the bend at the intersection of Waddington Drive and Cole Street.

11. Waddington Drive is a relatively wide (around 10m to 11m kerb to kerb) suburban street with a single traffic lane in each direction. The width of the road undoubtedly contributes to increased vehicle speeds.

12. Kerbside parking is possible on both sides of the road while maintaining two traffic lanes.

13. The road geometry is typified by straight sections of road approaching a long S bend as shown below.

14. General layout of Waddington Drive from Naenae Road to Seddon Street

15. There are no speed advisory signs on any of the curves, however chevron indicators are installed on the bend where Cole Street intersects.

16. The traffic volumes and operating speed profile in Waddington Drive were last measured in August 2012.

17. This data shows that the Mean operating speed is 49 km/h, the 85^th Percentile operating speed is 55 km/h and the maximum recorded speed was 107 km/h.

18. During consultation, there was significant anecdotal evidence that operating speeds are excessively high.

19. Traffic volumes in the street were around 2,800 vehicles per day (vpd).

20. Waddington Drive has a single public transport bus service, the Number 130 between Naenae shopping centre and Petone Station. Buses typically leave each end of the route at 15 to 20 minute intervals with more frequent services between and 3pm and 4pm.

21. Waddington Drive is classified as a Secondary Collector under the NZTA One Network Road Classification (ONRC) system.

22. The NZTA Safer Journeys Risk Assessment Tool rates Waddington Drive as having a Low Collective Risk and a Medium High Personal Risk.

23. Collective Risk is a measure of the density of serious and fatal crashes – Waddington Drive has a low Collective Risk.

24. Personal Risk is a measure of the likelihood of being involved in a fatal or serious crash and takes into account traffic volumes and distance travelled - Waddington Drive has a Medium High Personal Risk

25. Only two roads in the Naenae area have a Medium High Personal Risk (the other is Everest Avenue in the Naenae shopping area). Two roads in Naenae have a High Personal Risk (Treadwell Street and the upper part of Seddon Street).

26. The Risk Assessment Tool indicates a Safe and Appropriate Speed of 40 km/h for Waddington Drive.

27. Investigation of the NZTA Crash Analysis System (CAS) indicates that there have been 13 crashes reported on this section of Waddington Drive between 2012 and 2018 (part year).

28. Eight of the 14 reported crashes involved motorists losing control of their vehicles and exiting the carriageway. Six of the 14 crashes occurred during the hours of darkness, and seven occurred in wet conditions. This frequency of loss-of-control crashes is considered high for an urban area.

29. Four of the seven loss-of-control crashes occurred at the Cole Street bend. Alcohol was a factor in two of these crashes, and one crash involved a driver who was emotionally affected by a domestic incident.

30. The combination of the operating speed data, anecdotal reports, and high incidence of loss-of-control crashes confirms that operating speeds within this section of the street need to be reduced.

31. During the walkover of the site with the Principal and Vice-Principal of Naenae Primary School issues related to their students crossing Waddington Road in the vicinity of the school were raised.

32. The school has a Kea crossing installed, however this is not utilised as it is not on a pedestrian desire line.

33. The school’s current practice is to place a road cone in the middle of the road and then teachers stop traffic to allow students to cross.

34. To address these issues officers propose the implementation of a Local Area Traffic Management (LATM) scheme.

35. LATM schemes are an industry accepted method to improve the safety and amenity of residential streets by adopting area wide traffic calming techniques. The primary function is to make it difficult for vehicles to travel at speed through the area.

36. Proven advantages of LATM schemes include:

· Increased safety performance for all road users;

· Reduced damage to street furniture and property;

· Reduction in heavy vehicle volumes;

· Increased driver perception that they are driving through a local street and that they should be adjusting their driver behavior;

· Reduced number of speed related incidents.

37. Disadvantages of LATM schemes include:

· Possible increases in noise, pollution or vibration;

· An increase in travel time for local residents;

· Excess noise from acceleration and deceleration of larger vehicles;

· Increased fuel consumption and exhaust emissions;

· May create an uncomfortable ride for public transport users;

· Increased emergency vehicle response time;

· Traffic displacement to adjacent roads.

38. LATM schemes can be implemented using three different types of control:

· Horizontal deflection (i.e. build outs/ side islands/ chicanes/ road narrowing);

· Vertical deflection (i.e. speed humps/ cushions/ raised tables);

· Road markings and signage.

Options

39. Options considered for the Waddington Drive LATM scheme included:

· Reduction of the posted speed restriction;

· Modification of the existing signs and markings;

· New signs and markings (including No Stopping At All Times Restrictions);

· Horizontal traffic calming (kerbside and centreline traffic islands);

· Vertical traffic calming (speed humps, speed cushions and raised table islands);

· Installation of roadside barriers;

· Improved street lighting;

· Installation of pedestrian crossing facilities (both Kea and Zebra crossings were considered);

· A combination of the above measures.

40. Four Options are presented in this report:

· Option 1: Consultation Scheme (Appendix 2)

This is the scheme used for the initial public consultation. In addition to the measures common to all schemes, Option 1 includes 10 speed cushions as Shown in Appendix A.

· Option 2: Naenae Primary School Localised Scheme (Appendix 3)

This scheme was developed post consultation and includes the removal of the eight most unpopular speed cushion locations. In addition to the measures common to all schemes, Option 2 includes two speed cushions as Shown in Appendix A.

· Option 3: Post Consultation Scheme (Appendix 4)

This scheme was developed post consultation and includes the removal of the four most unpopular speed cushion locations. I n addition to the measures common to all schemes, Option 2 includes six speed cushions as Shown in Appendix A.

· Option 4: Do nothing

Leave the existing road environment unchanged.

· Option 5: Alternate/ Modified Scheme

Some other combination of the measures proposed above.

41. An overview of Options 1 through 3 is shown in Appendix 1.

42. None of the options presented include horizontal traffic calming. Measures such as chicanes and side islands may encourage undesirable driving, and road narrowing is typically more effective when off peak traffic volumes are higher.

43. Lowering of the speed limit from 50 km/h to 40 km/h is considered a valid measure, and would be in accordance with the NZTA Speed Management Guide. However such a change is a lengthy process under the new Guide and is unlikely to be successful without physical traffic calming. This will be looked at as a separate process and the proposed LATM would support any lowering of the posted speed limit.

44. Various roadside barriers were investigated for the outside of the corner at Cole Street (where the fence was struck). However due to the short length available between Cole Street and residential driveways it is not possible to achieve the minimum design length for a barrier system. In addition, the angle at which errant vehicles would likely strike the barrier in this location would exceed the design parameters of the barrier systems investigated.

45. Speed cushions have been adopted as the principal traffic calming device as these present the least discomfort for public transport passengers (buses can straddle the speed cushions), while still slowing light vehicles.

46. An artist’s impression of the proposed speed cushion configuration is shown overleaf.

47. Proposed speed cushion configuration

48. Speed humps have been adopted either side of the proposed pedestrian crossing to ensure that buses too slow down as they pass the pedestrian crossing.

49. Officers are recommending the adoption of Option 3: Post Consultation Scheme (Appendix 4).

50. The Option 3 scheme includes:

· Six sets of speed cushions located along the length of Waddington Drive;

· A zebra pedestrian crossing located on a raised table outside Naenae Primary School;

· Two full width speed humps, one either side of the zebra crossing;

· New edge line markings to delineate the traffic lanes and kerbside parking areas and make the road appear narrower to slow traffic;

· Priority control markings on each intersection along the route;

· 45 km/h Speed advisory signs and chevron sight boards on the bend near Cole Street;

· No Stopping At All Times restrictions in the vicinity of the proposed pedestrian crossing and school entrance;

· Upgraded LED street lighting.

51. Option 3 was developed in consideration of the feedback received during consultation. Four sets of speed cushions have been removed from the original proposed scheme in response to the feedback that too many speed cushions were proposed and that locals who already obey the speed limit would be unduly inconvenienced.

52. Officers believe that Option 3 presents the best compromise between lowering operating speeds and inconvenience to local residents.

53. Option 1 (Appendix 2) is considered to be a desirable scheme. However with 10 sets of speed cushions instead of six, has already received some negative feedback from the community due to the extra inconvenience for local residents.

54. Option 2 (Appendix 3) retains the pedestrian crossing and preceding speed humps, and two sets of speed cushions within the S Bend portion of the street. The speed cushions which received the most negative feedback during consultation have been deleted.

55. Option 2 is not considered desirable as it does not address the higher operating speed along the entire length of this portion of Waddington Drive, instead focusing on speeds in the localised area around the school.

56. Option 4 Do Nothing is considered undesirable as it does nothing to address the issues raised herein and is contrary to the feedback received that ‘something needs to be done’.

57. Option 5 would involve some alternate combination of the measures discussed above.

Consultation

58. Consultation with the directly affected community included:

· Several meetings with the affected residents at 75 Waddington Drive;

· A walkover of the area around Naenae Primary School with the Principal and Deputy Principal;

· A briefing with the local ward councilors;

· A letterbox drop of approximately 300 letters to residents of Waddington Drive (between Naenae Road and Seddon Street);

· A public drop in session at Naenae Primary School from 4.30pm to 6pm on Thursday 15^th March 2018;

· A website detailing the scheme with detailed drawings and feedback forms;

· Publicity on social media.

59. 38 responses were received including mailed-in feedback forms, emails and phone calls.

60. Of these 38 responses:

· 21 (55%) supported the scheme as presented (Option 1);

· 2 (5%) did not support the proposed scheme;

· 3 (8%) did not indicate whether they supported, or did not support, the scheme;

· 12 (32%) supported the scheme, but felt there were too many speed cushions proposed.

61. Around 20 - 25 local residents also attended the drop in session at Naenae Primary School on 15 March 2018.

62. In general, the attendees at the drop in session supported the proposed scheme; however 2 – 3 residents (around 10%) felt strongly that too many speed cushions were being proposed and that the inconvenience to law abiding local residents was too high.

63. The Post Consultation Scheme (Option 3) has four less speed cushions than originally proposed in response to this feedback.

64. The proposed LATM does not constitute a Significant Decision for the following reasons:

a) It does not detrimentally impact the wellbeing of Hutt City;

b) It is not contrary to a position taken in the Long Term Plan;

c) It does not significantly impact on the integrity of a strategic asset;

d) No new user charges are being introduced;

e) A high degree of public interest and controversy is not expected.

Legal Considerations

65. These restrictions are made pursuant to the provisions of Hutt City Council Traffic Bylaw 2017.

Financial Considerations

66. The proposed works can be accommodated from the existing 2017/ 2018 Traffic Safety Improvements and Pedestrian Crossings Budgets.

Other Considerations

67. 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 promotes the social and environmental wellbeing of the community in the present and for the future by improving the road safety level of service for all road users. It does this in a way that is cost-effective because it uses industry standard devices and methods to achieve the desired outcomes.

Appendices

No.	Title	Page
1 ⇩	Appendix 1 Overview of LATM Options	26
2 ⇩	Appendix 2 Option 1	27
3 ⇩	Appendix 3 Option 2	30
4 ⇩	Appendix 4 Option 3	33

Author: Damon Simmons

Traffic Asset Manager

Reviewed By: John Gloag

Divisional Manager, Transport

Approved By: Matt Reid

General Manager City and Community Services

Attachment 2

GWRC's background Information and Research

REMIT FROM GREATER WELLINGTON REGIONAL COUNCIL ON CLIMATE CHANGE TO LGNZ 2018 AGM

Background information and research

1. Nature of the Issue

Climate change has been described as “a slow motion disaster that will change our lives, the economy, and our planet for ever”. The previous Parliamentary Commissioner for the Environment Dr Jan Wright said that climate change is “by far New Zealand’s worst environmental problem”. The effects of climate change are already being felt globally and in New Zealand through: increased frequency of extreme weather events including storms, cyclones, tornadoes and droughts; wildfires; and rising sea levels.

Climate Change will have major impacts on areas of responsibility of local government. Over the next few decades, tens of thousands of New Zealanders will be displaced from their homes by threatened inundation by rising sea levels. Local government has the responsibility to manage, at regional, city and district levels, land use planning including requirements for coastal protection or managed retreat to ensure future residential and business development and infrastructure is located away from areas that will be inundated. Local government therefore has a very high interest in measures being taken to reduce emissions of greenhouse gases, in accordance with NZ’s commitments under the Paris Agreement of 12 December 2015, and subsequent commitments by the Government.

2. Background to its being raised

Greater Wellington Regional Council has recently updated its Treasury Risk Management Policy and has included a section:

“5.3 Investments in fossil fuels The Council has a policy to divest from any direct investment in fossil fuel extraction industries and investigate existing non direct investment, with a view to preventing future investment where practical”.

The Council’s Treasurer has taken the opportunity to advise banks of this policy as part of Council’s on-going commitment to reducing carbon emissions and promoting this to the wider community. It has also advised the banks that as part of its on-going due diligence into this matter, it will continue to monitor the banks it transacts with to ascertain what they are doing to assist with reducing and discouraging the on-going use and investment in fossil fuel industries.

3. New or confirming existing policy

Local Government recognises, as stated in the Local Government Position Statement on Climate Change, 2017, and the Local Government Leaders’ Climate Change Declaration, 2017, that we must act on climate change now to avoid future risk. Local authorities have accepted that they are at the frontline of climate change adaptation and have a role to play in mitigation, and that their responsibilities will grow in addressing climate change as both anticipated and unforeseen problems are revealed. Local government has a strong interest in the impacts of climate change and what can be done to mitigate those impacts.

Support for this remit will reinforce the Local Government Leaders’ Climate Change Declaration 2017, which included: “A clear and consistent pathway toward a low carbon and resilient future needs to provide certainty for successive governments, businesses and communities to enable transformative decisions and investments to be made over time”.

4. How the issue relates to objectives in the current Work Programme

LGNZ has climate change as a project in its Work Programme.

This remit relates to the following objectives of the project:

· Climate Change Action: “Actions to reduce emissions”

· A Collaborative Approach: “A collaborative and joint response to climate change, including a clear pathway to a low carbon economy”

· Key work streams: “Mitigating the impacts of climate change”

· Supporting work: “The sector will contribute to the Productivity Commission’s inquiry into NZ’s transition to a low-emissions economy”.

5. What work or action on the issue has been done on it, and the outcome

On 19 October 2016, the NZ$30 billion NZ Super Fund announced changes to become more resilient to climate change investment risk under a new strategy announced by the Guardians of New Zealand Superannuation.

CEO Adrian Orr said climate change was a material investment issue with risks for long-horizon investors. “In coming years the global energy system will transition away from fossil fuels. Some assets we invest in today may become uneconomic, made obsolete or face a dwindling market.”

“Climate change, and the coming transition to a low-carbon energy system, also present investment opportunities for long-term investors that we intend to capture”. Mr Orr said the strategy represented a significant and fundamental shift for the NZ Super Fund.

The New Zealand Super Fund has set an example for banks and other investment fund managers. The effect of this remit will be to reinforce to major banks the strategic importance and benefits of a shift of investments away from fossil fuel industries and towards long-term investments in low- or zero-carbon energy systems.

The banks that Council deals with have a range of appetites in terms of dealing with climate change issues, with them all formally acknowledging the issues of climate change.

The four Australian banks that Council deals with all have exposures in the billions of dollars to the coal mining sector. They all have some statement on environmental/climate/sustainability on their websites and in their financial statements. They all support the position on climate change and the need to reduce greenhouse gases.

Westpac is a leader having been recognised as the world’s most sustainable bank in 2016 for the ninth time and has a focus on energy efficient lending, and is the only bank to publish its exposures to both the fossil fuel and clean tech/environmental service sectors.

Kiwibank has little or no exposure to direct lending to fossil fuel industries as its focus is primarily on residential lending. They provide sustainable energy loans and their guiding principles espouse an ethical approach to their products and services.

The LGFA, while not having a formal policy on climate change, is presently considering one as part of its work programme. They have no investments in fossil fuel industries.

6. Any existing relevant legislation, policy or practice

The current Government announced shortly after it took office in November 2017 that it will introduce a Zero Carbon Bill with the objective of NZ becoming a net zero-emissions economy by 2050. It will also establish an independent Climate Commission to set five-yearly carbon budgets and a Green Investment Fund to direct investment towards low-emission industries.

This remit could make an important contribution to assisting the Government to meet the objective of a net zero-emissions economy by 2050, by encouraging banks to divest from investments in fossil fuel industries and instead direct investment to low- or zero-carbon energy systems.

7. Outcome of any prior discussion at a Zone/Sector meeting

The proposal for this Remit was discussed at the first Greater Wellington Region Climate Change Working Group meeting on Friday 16 March 2018, which included representatives of all 9 councils within the Greater Wellington Region. There was strong support for the remit from the councils. The next Zone 4 Meeting is not until after the deadline for submission of remits for the 2018 AGM of LGNZ, so it was agreed that Greater Wellington Regional Council will send the proposed remit to all councils within Zone 4 seeking their support. (Note: this paragraph will be updated once replies have been received from all councils and before the date for submission of 21 May 2018)

8. Evidence of support from Zone/Sector meeting or five councils

(Note: this paragraph will be updated once replies have been received from all councils and before the date for submission of 21 May 2018)

9. Suggested course of action envisaged

The following action is envisaged, if this remit is passed:

· The President of LGNZ will write to the NZ Local Government Funding Agency, and all major banks in NZ which manage investment funds on behalf of local authorities, to advocate that they transition away from investments in fossil fuel industries and consider opportunities for long term investments in low- or zero-carbon energy systems.

[1] Work required prior to the making of any of these decisions may be deleted.

Mayor WR Wallace (Chair)
Deputy Mayor D Bassett
Cr G Barratt	Cr C Barry
Cr L Bridson	Cr J Briggs
Cr MJ Cousins	Cr S Edwards
Cr T Lewis	Cr M Lulich
Cr G McDonald	Cr C Milne
Cr L Sutton

Council Proposing Remit:	Greater Wellington Regional Council
Contact Name:	Dr Roger Blakeley
Phone:	O21 229 6928
Email:	Roger.Blakeley@gw.govt.nz
Fax:
Remit passed by: (Zone/Sector meeting and/or list five councils as per policy)	To be added
Remit: Greater Wellington Regional Council asks that LGNZ, consistent with the Local
Government Position Statement on Climate Change 2017 and the Local Government
Leaders’ Climate Change Declaration 2017, advocate to all major banks that
they transition away from investments in fossil fuel industries, and consider
opportunities for long-term investments in low- or zero-carbon energy systems.