Agenda of Hutt City Council - 10 December 2019

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)

HUTT CITY COUNCIL

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

Tuesday 10 December 2019 commencing at 2.00pm.

ORDER PAPER

Public Business

1. OPENING FORMALITIES - Karakia Timatanga

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

2. APOLOGIES

3. 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.

4. Mayoral Statement (19/1372)

5. CONFLICT OF INTEREST DECLARATIONS

6. Amendment to Hutt City Council's Standing Orders (19/1379)

Memorandum dated 28 Nov 2019 by the Contractor 14

Mayor’s Recommendation:

“That the recommendation contained within the memorandum be endorsed.”

7. Committee Structure 2019-2022 (19/1355)

Report No. HCC2019/1(2)/231 by the Contractor 17

Mayor’s Recommendation:

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

8. Membership of Committees of Council (19/1380)

Memorandum dated 28 Nov 2019 by the Mayor 44

Mayor’s Recommendation:

“That the recommendations contained within the memorandum be endorsed.”

9. Appointments to External Committees, Organisations and Advisory Groups (19/1382)

Report No. HCC2019/1(2)/107 by the Committee Advisor 45

Mayor’s Recommendation:

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

10. Elected Member Remuneration and Reimbursement of Expenses (19/1377)

Report No. HCC2019/1(2)/233 by the Contractor 49

Mayor’s Recommendation:

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

11. Schedule of Meetings for 2020 (19/1374)

Report No. HCC2019/1(2)/232 by the Committee Advisor 57

Mayor’s Recommendation:

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

12. Proposed New Street Name: Subdivision of 38 Manor Park Road, Lower Hutt (19/603)

Report No. HCC2019/1(2)/234 by the Contracts Officer 63

Mayor’s Recommendation:

“that the matter be discussed.”

13. Proposed New Street Name: Subdivision of 79 Copeland Street, Lower Hutt (19/1368)

Report No. HCC2019/1(2)/235 by the Contracts Officer 84

Mayor’s Recommendation:

“that the matter be discussed.”

14. Huia Street - Proposed Temporary Road Closure: Sanitarium Weet-Bix Kids TRYathlon - March 2020 (19/1370)

Report No. HCC2019/1(2)/236 by the Traffic Engineer - Network Operations 95

Mayor’s Recommendation:

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

15. Bellevue Road - Proposed Temporary Road Closure: Six60 'Saturdays' Concert - January 2020 (19/1371)

Report No. HCC2019/1(2)/237 by the Traffic Engineer - Network Operations 103

Mayor’s Recommendation:

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

16. Private Plan Change Request 53 - Stratton Street, Normandale (19/1358)

Report No. HCC2019/1(2)/229 by the Environmental Policy Analyst 111

Mayor’s Recommendation:

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

17. High Level Plan and Approach to 2020-2021 Annual Plan and 2018-2028 Long Term Plan Amendment (19/1356)

Report No. HCC2019/1(2)/226 by the Divisional Manager, Strategy and Planning 188

Mayor’s Recommendation:

“That recommendations (i), (ii), (iv) and (v) contained within the report be endorsed and part (iii) be discussed.”

18. Annual Plan 2020/2021 and Long Term Plan Amendment - Financial Aspects (19/1363)

Report No. HCC2019/1(2)/227 by the Chief Financial Officer 193

Mayor’s Recommendation:

“That recommendations (i) to (viii) and (xi) contained within the report be endorsed and parts (ix) and (x) be discussed.”

19. Silverstream Landfill Budget (19/1385)

Report No. HCC2019/1(2)/238 by the Contracts Solid Waste 261

Mayor’s Recommendation:

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

20. Waste Review Outcomes and Next Steps (19/1365)

Report No. HCC2019/1(2)/230 by the Manager, Sustainability and Resilience 264

Mayor’s Recommendation:

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

21. Report back on the Voice of the Community on options for Naenae Pool and the vision for the town centre (19/1310)

Report No. HCC2019/1(2)/228 by the Acting General Manager City and Community Services 286

Mayor’s Recommendation:

“That recommendations (i) to (x) contained within the report be endorsed and a new part (xi) to read as follows:

(xi) acknowledges the approach to engagement taken by officers and that this be set as a benchmark for future consultations.”

22. Minutes

Meeting minutes Extraordinary Meeting of Council, 23 October 2019 11

23. 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.

24. Sealing Authority (19/1287)

Report No. HCC2019/1(2)/17 by the Executive Assistant, Corporate Services 394

Mayor’s Recommendation:

“that Council:

(i) approves the affixing of the Common Seal to all relevant documents in connection with the items set out in Schedule 1 contained in the report; and

(ii) approves the deeds executed under Power of Attorney set out in Schedule 2 contained in the report.”

25. CLOSING FORMALITIES - Karakia WHAKAMUTUNGA

Whakataka te hau ki te uru

Whakataka te hau ki te tonga

Kia mākinakina ki uta

Kia mātaratara ki tai

E hī ake ana te atakura

He tio, he huka, he hau hū

Tīhei mauri ora.

Cease the winds from the west
Cease the winds from the south
Let the breeze blow over the land
Let the breeze blow over the ocean
Let the red-tipped dawn come with a sharpened air.
A touch of frost, a promise of a glorious day.

Donna Male

COMMITTEE ADVISOR

13 4 November 2019

HUTT CITY COUNCIL

Minutes of the inaugural meeting of the Hutt City Council held in the Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt on

Wednesday 23 October 2019 commencing at 5.30pm

PRESENT:	Mayor C Barry (Chair)	Deputy Mayor Lewis
	Cr D Bassett	Cr J Briggs
	Cr K Brown	Cr B Dyer
	Cr D Hislop	Cr A Mitchell
	Cr S Rasheed	Cr N Shaw
	Cr L Sutton

APOLOGIES: There were apologies from Crs Edwards and Milne

IN ATTENDANCE: Ms J Miller, Chief Executive

Mr L Allott, Chief Information Officer

Mr B Kibblewhite, General Manager, Corporate Services

Ms H Oram, Acting General Manager, City Transformation

Mr M Reid, General Manager, City and Community Services

Mr M Wong-Tung, IT Manager

Mr R Newton, Business Transformation Manager

Mr J Scherzer, Manager, Sustainability and Resilience

Mr D Kerite, Acting Divisional Manager, Environmental Consents

Ms A Andrews, Kaitakawaenga Kaupapa Maori

Ms H Corrigan, Senior Communications Advisor

Ms C Ellis, Senior Communications Advisor – Media

Ms K Stannard, Divisional Manager, Democratic Services (part meeting)

Ms K Crowley Nepia, Executive Assistant to the Mayor

Ms D Male, Committee Advisor

Ms R Bowman, Committee Administrator

Ms H Wagener, Mayoral Office Administrator

Ms L Herriot, Executive Assistant – Corporate Services

PUBLIC BUSINESS

1. APOLOGIES

There were apologies received from Cr Edwards and Cr Milne.

2.	Statutory Declaration By the Mayor Mayor Campbell Barry made the statutory declaration required by Clause 14, Schedule 7 of the Local Government Act 2002, which was witnessed by the Chief Executive.

3.	Statutory Declaration By Councillors Councillors D Bassett, J Briggs, K Brown, B Dyer, D Hislop, T Lewis, A Mitchell, S Rasheed, N Shaw and L Sutton made the statutory declarations required by Clause 14, Schedule 7 of the Local Government Act 2002, which were witnessed by Mayor Barry.

4.	Address By The Mayor Mayor Barry delivered his inaugural address.

Statutory Briefing (19/1280)

Report No. HCC2019/1(2)/216 by the Acting General Counsel

The Chief Executive elaborated on the report, highlighting matters of particular relevance to members in respect of the Local Government Act 2002, the Local Government Official Information and Meetings Act 1987, the Local Authorities (Members’ Interests) Act, sections 99, 105 and 105A of the Crimes Act 1961, the Secret Commissions Act 1910, the Financial Markets Conduct Act 2013 and the Public Audit Act 2001.

Resolved: (Mayor Barry/Cr Briggs) Minute No. C 19101

”That Council notes the legislative provisions affecting members.”

Appointment of Deputy Mayor

Resolved: (Mayor Barry/Cr Briggs) Minute No. C 19102

“That Council:

(i) notes that under section 41A of the Local Government Act 2002, Mayor Barry has the formal power to appoint a Deputy Mayor; and

(ii) endorses Mayor Barry’s decision to appoint Cr Tui Lewis as Deputy Mayor of Hutt City Council for the 2019/2022 triennium.”

7.	Statutory Declaration By Deputy Mayor Deputy Mayor Tui Lewis made the statutory declaration required by Clause 14, Schedule 7 of the Local Government Act 2002, which was witnessed by the Chief Executive.

Fixing of the Dates and Times for the Extraordinary Meeting of Council and the First Ordinary Meeting of Council

Resolved: (Mayor Barry/Cr Bassett) Minute No. C 19103

“That an extraordinary meeting of the Hutt City Council be held in the Council Chambers, 30 Laings Road, Lower Hutt on Monday 4 November 2019 commencing at 5.30pm and the first ordinary meeting of the Hutt City Council be held in the Council Chambers, 30 Laings Road, Lower Hutt on Tuesday 10 December 2019 commencing at 2.00pm.”

Appointment of Members to Local Government New Zealand Zone Four (19/1281)

Report No. HCC2019/1(2)/217 by the Committee Advisor

Resolved: (Mayor Barry/Cr Briggs) Minute No. C 19104

“That the matter lay on the table and be referred to the extraordinary meeting of Council to be held on 4 November 2019, to be considered.”

There being no further business the Chair declared the meeting closed at 6.15pm.

C Barry

MAYOR

CONFIRMED as a true and correct record

Dated this 10th day of December 2019

COUNCIL
Membership:	13
Meeting Cycle:	Council meets on an eight 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)
Quorum:	Half of the members

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 Local Government Act 2002 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 Local Government Act 1974, 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 for Council employees.

DECIDE ON:

Policy issues

• Adoption of all policy required by legislation.

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

District Plan

• Approval to call for submissions on any Proposed District Plan, Plan Changes and Variations.

• Prior to public notification, approval of recommendations of District Plan Hearings Subcommittees on any Proposed Plan, Plan Changes (including private Plan Changes) and Variations, on the recommendation of the Regulatory Committee.

1 Work required prior to the making of any of these decisions may be delegated.

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

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

• Acceptance, adoption or rejection of private Plan Changes.

Representation, electoral and governance matters

• The method of voting for the Triennial elections.

• Representation reviews.

• Council’s Code of Conduct for elected members

• 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.

• Appointment and discharge of members of committees when not appointed by the Mayor.

• 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

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.

Long Term and Annual Plans

• The adoption of the budgetary parameters for the LTP and Annual Plans.

• Determination of rating levels and policies required as part of the LTP.

• Adoption of Consultation Documents, proposed and final LTPs and proposed and final Annual Plans.

Council Controlled Organisations

• The establishment and disposal of any Council Controlled Organisation or Council Controlled Trading Organisation.

• Approval of annual Statements of Corporate Intent for Council Controlled Organisations and Council Controlled Trading Organisations.

Community Engagement and Advocacy

• Receive reports from the Council’s Advisory Groups.

• Monitor engagement with the city’s communities.

Operational Matters

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

• Road closing and road stopping matters.

• Approval of overseas travel for elected members.

• 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.

• The recipients of the annual Civic Honours awards.

COMMUNITY AND ENVIRONMENT COMMITTEE
Membership: 13
Meeting Cycle: Meets on an eight weekly basis, as required or at the requisition of the Chair
Quorum: Half of the members
Reports to: Council

PURPOSE:

With an operational focus, to monitor the contribution made by strategies and policies implemented by Council to promote the social, economic, environmental and cultural wellbeing of the city’s communities in the present and for the future. This includes delivering quality infrastructure to support healthy and sustainable living, providing efficient and safe transport options, promoting the city’s prosperity and making the city a desirable and attractive place, providing facilities and recreational opportunities that support quality living and healthy lifestyles, protecting biodiversity, supporting the cultural wellbeing of residents, and considering how climate change may impact on these areas.

Transport, Infrastructure and Sustainable Growth:

• Provide direction to the Policy, Finance and Strategy Committee on strategies and policies required for the sustainable growth and development of the city, including economic, transport and infrastructure development, and matters to be addressed in the full review of the City of Lower Hutt District Plan.

• Monitor implemented strategies and policies to assess their contribution towards achieving Council’s objectives.

• Oversee the implementation of spatial planning activities in the city.

• Determine roading issues considered by the Mayor and Chief Executive to be strategic due to their significance on a city-wide basis, including links to the State Highway, or where their effects cross ward or community boundaries.

• Recommend to Council the acquisition or disposal of assets, unless the acquisition or disposal is provided for specifically in the LTP.

Environment and Climate Change Response:

• Provide direction to the Policy, Finance and Strategy Committee on required environmental strategies and policies.

• Monitor and review implemented strategies and policies to assess their contribution towards achieving Council’s objectives.

• Address matters arising from issues raised relating to climate change.

Community Development, Facilities and Housing:

• Provide direction to the Policy, Finance and Strategy Committee on strategies and policies required to address community wellbeing.

• Monitor and review implemented strategies and policies to assess their contribution towards achieving Council’s objectives.

• Advocacy in conjunction with relevant community organisations on matters related to the health and social/cultural wellbeing of communities.

• Adopt, and agree amendments to, open space or reserve management plans.

• Make any decisions under open space or reserve management plans that are not otherwise delegated.

• Grant leases, licences, rights of way and easements in terms of Council policy for Council owned properties that are either open space under the District Plan or reserve under the Reserves Act 1977. This delegation, except the granting of leases and licences to Council owned community houses/centres in the Harbour and Wainuiomata Wards, is sub-delegated to the community boards in those areas.

• Official naming of parks, reserves and sports grounds within the provisions of Council’s Naming Policy, other than those in the Harbour and Wainuiomata Wards, which are delegated to the community boards in those areas, except where the sites have a high profile, city-wide importance due to their size and location and/or cross ward or community boundaries.

• Removal and/or planting of street trees within the provisions of Council’s Operational Guide for Urban Forest Plan, other than those in the Harbour and Wainuiomata Wards, which are delegated to the community boards in those areas.

• Matters arising from the activities of Community Houses, other than those in the Harbour and Wainuiomata Wards, which are delegated to the community boards in those areas.

General:

• Maintain an overview of work programmes carried out by the Council’s operational activities.

• Conduct any consultation processes required on issues before the Committee.

• Approval and forwarding of submissions on matters related to the Committee’s area of responsibility.

• Any other matters delegated to the Committee by Council in accordance with approved policies and bylaws.

POLICY, FINANCE AND STRATEGY COMMITTEE
Membership: 13
Meeting Cycle: Meets on an eight weekly basis, as required or at the requisition of the Chair
Quorum: Half of the members
Reports to: Council

PURPOSE:

To assist the Council in setting the broad vision and direction of the city in order to promote the social, economic, environmental and cultural wellbeing of the city’s communities in the present and for the future. This involves determining specific outcomes that need to be met to deliver on the vision for the city, and taking a holistic approach to establishing strategies, policies, bylaws, regulations and work programmes to achieve those goals. This committee is also responsible for assisting Council to execute its financial and performance monitoring obligations.

Policy, Strategy and Bylaws:

• Develop and agree draft strategies and policies for the growth and development of the city, including economic, transport and infrastructure development, for engagement/public consultation, excluding those strategies and policies that will subsequently be required to follow a statutory process and will be dealt with by the Regulatory Committee.

• Recommend strategies and policies to Council for adoption, including those required as part of the Long Term Plan, and any other policies required by legislation.

• Monitor and review implemented strategies and policies.

• Undertake a full review of the City of Lower Hutt District Plan, including receiving direction from the Community and Environment Committee, establishing a District Plan work programme and monitoring its implementation.

• Develop and agree the Statement of Proposal for new or amended bylaws for consultation.

• Recommend to Council new or amended bylaws for adoption.

Financial, Project and Performance Reporting:

• Recommend to Council the budgetary parameters for preparation of the Council’s Long Term Plans (LTP) and Annual Plans.

• Monitor progress towards achievement of the Council’s budgets and objectives as set out in the LTP and Annual Plans, including associated matters around the scope, funding, prioritising and timing of projects.

• Monitoring and oversight of significant projects including operational contracts, agreements, grants and funding.

• Monitor progress towards achievement of the Council’s outcomes as set out in the Leisure & Wellbeing, Urban Growth, Infrastructure and Environmental Sustainability Strategies and their associated plans.

• Monitor the integrity of reported performance information, both financial and non-financial, at the completion of Council’s Annual Report, and external accountability reporting requirements.

• Review and recommend to Council the adoption of the Annual Report.

• Recommend to Council the approval of annual Statements of Corporate Intent for Council Controlled Organisations and Council Controlled Trading Organisations

• Monitor progress against the CCO and CCTO Statements of Intent.

• Oversee compliance with Council’s Treasury Risk Management Policy.

• Consider and determine requests for rates remissions.

• Consider and determine requests for loan guarantees from qualifying community organisations where the applications are within the approved guidelines and policy limits.

• Approve and oversee monitoring around Community Funding Strategy grants.

General:

• Maintain an overview of work programmes carried out by the Council’s organisational activities.

• Conduct any consultation processes required on issues before the Committee.

• Approval and forwarding of submissions on matters related to the Committee’s area of responsibility.

• Any other matters delegated to the Committee by Council in accordance with approved policies and bylaws.

PURPOSE

To carry out all necessary considerations and hearings, precedent to the Council’s final adoption of Long Term Plans (LTP) and Annual Plans (AP) which give effect to the strategic direction and outcomes set by the Policy, Finance and Strategy Committee through setting levels of service, funding priorities, the performance framework and budgets.

Determine:

• Development of a framework and timetable for the LTP and AP processes.

• The nature and scope of engagement and public consultation required.

• Statements to the media.

• Such other matters as the Subcommittee considers appropriate and which fall within its Terms of Reference.

• Informal engagement with the community, and the hearing of any formal public submissions.

• Consideration of submissions on Hutt City Council’s Assessment of Water and Sanitary Services.

Consider and make recommendations to Council:

• Levels of service, funding priorities, performance framework, budgets, rating levels and policies required as part of the LTP or AP, excluding any policies recommended to Council by the Policy, Finance and Strategy Committee.

• Consultation Documents.

• Council’s proposed and final LTP.

• Council’s proposed and final AP.

• Final content and wording, and adoption of the final Hutt City Council Assessment of Water and Sanitary Services.

Note:

Extract from the Controller and Auditor General’s October 2010 Good Practice Guide: Guidance for members of local authorities about the Local Authorities (Members’ Interests) Act 1968

Appointment as the local authority’s representative on another organisation

5.47 You may have been appointed as the authority’s representative on the governing body of a council-controlled organisation or another body (for example, a community-based trust).

5.48 That role will not usually prevent you from participating in authority matters concerning the other organisation – especially if the role gives you specialised knowledge that it would be valuable to contribute.

5.49 However, you could create legal risks to the decision if your participation in that decision raises a conflict between your duty as a member of the local authority and any duty to act in the interests of the other organisation. These situations are not clear cut and will often require careful consideration and specific legal advice.

5.50 Similarly, if your involvement with the other organisation raises a risk of predetermination, the legal risks to the decision of the authority as a result of your participation may be higher, for example, if the other organisation has made a formal submission to the authority as part of a public submissions process.

PURPOSE

To provide objective advice and recommendations around the sufficiency, quality and results of assurance over the Council’s financial management practices, risk management, internal control systems and governance frameworks.

Consider and make recommendations to Council:

The effectiveness and robustness of the internal audit, risk management and internal control systems, processes and practices of the Council for each financial year:

• Review and approve the internal audit coverage and annual work plans, ensuring these plans are based on the Council’s risk profile

• Review the adequacy of management’s implementation of internal audit recommendations

• Review the internal audit charter to ensure appropriate organisational structures, authority, access, independence, resourcing and reporting arrangements are in place

• Review whether management has in place a current, comprehensive and effective risk management framework and associated procedures for identifying, assessing and responding to the Council’s significant risks, potential opportunities and adverse effects in accordance with its risk approach

• Monitor whether appropriate action is being taken by management to respond to the Council’s significant risks, potential opportunities and adverse effects

• Review whether management has taken steps to embed a culture that is committed to probity and ethical behaviour

• Review whether management has established and maintains a sound internal control system, policies and procedures so that activities are effectively controlled and carried out as planned towards the achievement of the Council’s objectives and safeguard the Council’s financial and non-financial assets

• Review whether there are appropriate systems, processes and controls in place to prevent, detect and effectively respond to fraud

The integrity and appropriateness of internal and external reporting and accountability requirements:

• Consider the processes for ensuring the completeness, reliability and quality of financial and operational information being provided to the Council, including information provided by Council Controlled Organisations and Council Controlled Trading Organisations

• Seek advice periodically from internal and external auditors regarding the completeness and quality of financial and operational information that is provided to the Council

• Review the appropriateness of the Council’s existing accounting policies, judgements, treatments and principles and any proposed change

• Enquire of internal and external auditors any information that affects the quality and clarity of the Council’s financial statements and statements of service performance, and assess whether appropriate action has been taken by management in response

• Satisfy itself that the financial statements and statements of service performance are supported by appropriate management signoff on the statements and on the adequacy of the systems of internal control

• Confirm that processes are in place to ensure that financial and non-financial information included in the Council’s Annual Report and Long Term Plan is consistent with the audited financial statements

Oversight of external auditor engagement and outputs:

• At the start of each audit, confirm the terms of engagement, including the nature and scope of the audit, timetable and fees, with the external auditor

• Receive the external auditor’s management letters and monitor action to be taken by management on audit recommendations raised

• Conduct a members’ only session (i.e. without any management present) with external auditors to discuss any matters that the auditors wish to bring to the Subcommittee’s attention and/or any issues of independence

Review the effectiveness of systems for monitoring the Council’s compliance with laws, regulations, standards, Council policies, plans, code of conduct and good practice guidelines as appropriate.

Matrix of Experience, Skills and Personal Qualities

Experience, Skills and Personal Qualities	Member A	Member B	Member C	Member D	Independent Chairperson
The recommended combination of experience is:
· financial reporting
· broad governance experience
· familiarity with risk management disciplines
· understanding of internal control and assurance frameworks
· good understanding of the roles of internal and external audit
· local government expertise
For an “advisory-oriented” audit committee, particular emphasis should be placed on:
· Strategy
· Performance management
· Risk management disciplines
In determining the composition of the audit committee, the combined experience, skills, and personal qualities of audit committee members is critical. Members should bring:
· the ability to act independently and objectively
· the ability to ask relevant and pertinent questions, and evaluate the answers
· the ability to work constructively with management to achieve improvements
· an appreciation of the public entity’s culture and values, and a determination to uphold these
· a proactive approach to advising the governing body and chief executive of matters that require further attention
· business acumen
· appropriate diligence, time, effort, and commitment
· the ability to explain technical matters in their field to other members of the audit committee

PURPOSE:

To consider matters relating to the regulatory and quasi-judicial responsibilities of the Council under Council’s bylaws and relevant legislation including the following:

· Local Government Act 1974

· Public Works Act 1981

· Reserves Act 1977

· Resource Management Act 1991

· Sale and Supply of Alcohol Act 2012

Determine:

• Undertaking the administration of all statutory functions, powers and duties within its terms of reference, other than those specifically delegated to any other committee or subcommittee, or retained by Council.

• Consideration of matters related to the preparation and ongoing monitoring of the City of Lower Hutt District Plan, with the exception of a full review of the Plan.

• Preparation of required Changes and Variations to the City of Lower Hutt District Plan for Council approval to call for submissions.

• Recommending for Council approval any Proposed District Plan, Plan Changes and Variations recommended from the District Plan Hearings Subcommittee prior to notification.

• Make recommendations to Council on private District Plan Change requests for Council to accept, adopt or reject.

• Approve Council’s list of hearings commissioners under the Resource Management Act 1991, including councillors sitting as hearings commissioners and independent commissioners.

•

• Conduct statutory hearings on regulatory matters and make decisions on those hearings2, excluding those conducted under the Resource Management Act 1991, which are delegated to the Hearings Subcommittee and District Plan Hearings Subcommittee.

• Authorise the submission of appeals to the Environment Court on behalf of Council.

• Hear objections to specified traffic matters where the community board wishes to take an advocacy role.

• Make decisions under Clause 11(e) of the Tenth Schedule of the Local Government Act 1974 and the Transport (Vehicular Traffic Road Closure) Regulations 1965 in respect of temporary road closures, including making decisions on any ancillary matters including, without limitation, approval of temporary “No Stopping” restrictions under Hutt City Council Traffic Bylaw 2017.

• Undertake hearings on road stopping under the Local Government Act 1974.

• Make recommendations to Council whether to proceed with a road stopping and the disposal of stopped road, including (where the proposal includes or involves a related acquisition, disposal or land exchange) a recommendation to Council on the acquisition, disposal or exchange.

• Consider and recommend to Council any request to the Crown that a road is stopped under section 116 of the Public Works Act 1981, and the disposal of the stopped road.

• Make any resolution required under section 319A of the Local Government Act 1974 regarding the naming of new roads and alterations to street names (other than those in the Harbour and Wainuiomata Wards, which are delegated to the community boards in those areas).

• Make decisions on applications required under the Development Contributions Policy for remissions, postponements, reconsiderations and objections.

• Recommend to Council the list of members approved to be members of the District Licensing Committee under section 192 of the Sale and Supply of Alcohol Act 2012.

The Chair of the Regulatory Committee, in conjunction with the Chief Executive, is authorised to appoint a subcommittee of suitably qualified persons to conduct hearings on behalf of the Committee.

The Chair of the Regulatory Committee is authorised to appoint three people from the list prepared under the Sale and Supply of Alcohol Act 2012 to specific meetings (Chair and two members).

General:

• Maintain an overview of work programmes carried out by the Council’s regulatory activities.

• Approval and forwarding of submissions on matters related to the Committee’s area of responsibility.

• Any other matters delegated to the Committee by Council in accordance with approved policies and bylaws.

2 When acting in this capacity the committee has a quasi-judicial role.

NOTE 1:

Council makes decisions to notify District Plan Changes and Variations and call for submissions, on the recommendation of the Regulatory Committee.

District Plan Hearings Subcommittee members are appointed by the Chair, in conjunction with the Chief Executive, and comprise elected members and/or independent commissioners. All District Plan Hearings Subcommittee members must be certified under the Making Good Decisions programme.

District Plan Hearings Subcommittee makes recommendations to the Regulatory Committee for recommendation to Council on proposed District Plan provisions and matters raised in submissions.

Council makes its decision on the provisions and matters raised in submissions. The Council decision may be appealed to the Environment Court.

Council gives final approval to make District Plan changes operative, in accordance with clause 17 of Schedule 1 of the Resource Management Act 1991.

NOTE 2:

The Ministry for the Environment advocates that Councils offer specialist RMA training in areas of law which are difficult to grasp or where mistakes are commonly made. This is to complement the Good Decision Making RMA training that they run (which is an overview and basic summary of decision making, rather than an in-depth training in specific areas of the RMA). Therefore in order to facilitate this, the RMA training run for councillors that wish to be hearings commissioners is mandatory.

Reasons for the importance of the training:

1. Hearings commissioners are kept abreast of developments in the legislation.

2. Legal and technical errors that have been made previously are avoided (many of which have resulted in Environment Court action which is costly, time consuming and often creates unrealistic expectations for the community).

3. The reputation of Council as good and fair decision makers or judges (rather than legislators) is upheld.

DISTRICT PLAN HEARINGS SUBCOMMITTEE

Membership: Members are appointed for specific projects by the Chair in conjunction with the Chief Executive.

All members must hold current certification under the Making Good Decisions Training, Assessment and Certification Programme for RMA Decision-Makers.

The Chair must in addition hold Chair certification.

Note:

34A Delegation of powers and functions to employees and other persons

(1A) If a local authority is considering appointing 1 or more hearings commissioners to exercise a delegated power to conduct a hearing under Part 1 or 5 of Schedule 1,—

(a) the local authority must consult tangata whenua through relevant iwi authorities on whether it is appropriate to appoint a commissioner with an understanding of tikanga Māori and of the perspectives of local iwi or hapū; and

(b) if the local authority considers it appropriate, it must appoint at least 1 commissioner with an understanding of tikanga Māori and of the perspectives of local iwi or hapū, in consultation with relevant iwi authorities.

Quorum: 1

Meeting: As required

Reports to: Regulatory Committee

PURPOSE

To make recommendations with reasons to the Regulatory Committee, for recommendation to Council, on Proposed District Plan provisions and matters raised in submissions.

The District Plan Hearings Subcommittee has all the powers necessary to conduct a hearing for this purpose. When a District Plan Hearings Subcommittee has an even number of members, the Chair has a casting vote.

NOTE:

The Ministry for the Environment advocates that Councils offer specialist RMA training in areas of law which are difficult to grasp or where mistakes are commonly made. This is to complement the Making Good Decisions RMA training that MfE runs (which is an overview and basic summary of decision making, rather than an in-depth training in specific areas of the RMA). Therefore in order to facilitate this, the RMA training run for councillors that wish to be hearings commissioners is mandatory.

Reasons for the importance of the training:

1 Hearings commissioners are kept abreast of developments in the legislation.

2 Legal and technical errors that have been made previously are avoided (many of which have resulted in Environment Court action which is costly, time consuming and often creates unrealistic expectations for the community).

3 The reputation of Council as good and fair decision makers or judges (rather than legislators) is upheld.

HEARINGS SUBCOMMITTEE
Membership: An independent Commissioner plus a minimum of either 3 or 4 elected members (including the Chair) and alternates who have current certification under the Making Good Decisions Training, Assessment and Certification Programme for RMA Decision-Makers.
Meeting Cycle: Meets as required
Quorum: Half of the members
Reports to: Regulatory Committee

PURPOSE:

To conduct the hearing of resource consent applications and related matters under the Resource Management Act 1991.

Determine:

• Hearing and deciding notified resource consent applications.

• Hearing and deciding objections to conditions imposed on resource consents.

Conduct of Hearings:

• To conduct hearings where these are required as part of a statutory process.

• Hearing of submissions required on any matters falling under the Terms of Reference for this Subcommittee.

General:

Any other matters delegated to the Subcommittee by Council in accordance with approved policies and bylaws.

NOTE:

Reasons for the importance of the training:

1. Hearings commissioners are kept abreast of developments in the legislation.

3. The reputation of Council as good and fair decision makers or judges (rather than legislators) is upheld.

53 10 December 2019

Hutt City Council

28 November 2019

File: (19/1377)

Report no: HCC2019/1(2)/233

Elected Member Remuneration and Reimbursement of Expenses

Purpose of Report

1. The purpose of this report is to seek a Council decision on the manner in which the remuneration pool allocated by the Remuneration Authority is to be distributed, and the level of remuneration to be paid for an external appointment to a Council subcommittee. In addition Council is asked to adopt an updated Elected Members’ Expenses Policy which reflects the Local Government Members (2019/20) Determination 2019.

Recommendations

That Council:

a) approves the distribution of the remuneration pool as follows, for submission to the Remuneration Authority:

· Councillor salary - $60,519 per annum;

· Deputy Mayor/Chair of Standing Committee – additional $40,000 per annum;

· Chair of Standing Committee – additional $20,000 per annum;

· Chair of Traffic Subcommittee - additional $7,000 per annum;

· Chair of Hutt Valley Services Committee – additional $7,000 per annum;

· Wellington Water Committee member – additional $7,000 per annum;

b) approves annual remuneration of up to $20,000 for the Independent Chairperson of the Audit and Risk Subcommittee, and delegates authority to the Mayor and Chief Executive to determine the final figure based on the skills and experience of the preferred candidate; and

c) adopts the Elected Members’ Expenses Policy attached as Appendix 1 of the report.

Background

2. The Remuneration Authority (the Authority) sets a remuneration pool for Council to distribute for councillors and positions of additional responsibility. A pool of $827,228 per annum has been set by the Authority and the entire pool must be allocated.

3. This is a different system of remuneration than the previous Council operated under in that the Authority previously set the Councillors’ remuneration and Council had discretion only to allocate additional positions of responsibility.

4. The Authority considers a range of factors when determining the remuneration for elected members in order to attract people with the capacity to lead and govern at a local level. One of these factors is the existence of a remuneration system that enables people from all sectors of the community to commit time and effort necessary to fulfil their responsibilities as elected members without being unduly disadvantaged.

5. Through the Local Government Members (2019/20) Determination 2019, the Authority has set a minimum allowable remuneration for councillors at $53,097. The Authority indicated that it would expect the base remuneration for councillors to increase but the Council cannot set it any lower. The Authority will issue a Determination on 19 December 2019 that includes the new remuneration recommended by the Council.

6. The pool does not apply to the Mayor or to chairpersons and members of community boards, whose remuneration is set by the Authority and sits outside the pool.

7. The pool is payable to Hutt City Councillors from the day after the date on which the official result of the 2019 election was declared.

Discussion

8. The remuneration must align with the governance structure adopted by Council for the 2019-2022 triennium, i.e. the number of chairpersons appointed needs to be reflected in the remuneration for positions of additional responsibility (see separate reports covering the committee structure and appointments to committees).

9. If the Council changes the governance structure during the triennium and the number of chairpersons changes as a result, the Council can propose a new remuneration structure to the Authority for its approval.

10. Payment for councillors who have obtained accreditation to chair and/or sit on hearings committees under the Resource Management Act 1991 is set at $100 per hour and $80 per hour respectively by the Authority, and sits outside the pool.

Options

11. A number of options were prepared for informal consideration by the Mayor. The option presented below is the preferred option, reflecting the committee structure and membership proposed by the Mayor, and the relative responsibilities of councillors and those with specific roles within the Council and committee structure.

Independent Chairperson of the Audit and Risk Subcommittee

12. The Mayor has determined the governance structure for the 2019-2022 triennium, and this includes an independent person to chair the Audit and Risk Subcommittee.

13. A recruitment process will be undertaken to seek expressions of interest for the position from suitably qualified applicants.

14. The remuneration pool does not apply to non-elected people who are appointed to be members or chairpersons of council committees. Their remuneration is set by the Council.

15. Indicative annual remuneration of up to $20,000 is considered to be an appropriate level of remuneration for this position.

Elected Members’ Expenses Policy

16. The Remuneration Authority provides for a range of allowances to be paid to elected members of a local authority while working on local authority business. These need to be approved by Council and included in the Council’s Elected Members’ Expenses Policy.

17. Council’s existing policy has been updated to reflect the Local Government Members (2019/20) Determination 2019, and is attached as Appendix 1.

18. The Vehicle Mileage Allowance now provides different rates payable for petrol or diesel vehicles, petrol hybrid vehicles, and electric vehicles.

19. The Communications Allowance now covers use of a member’s own internet service, and use of a member’s own mobile telephone service, and has pro rata provisions for members not in a position for the full 12 months.

20. The Authority has also introduced a Childcare Allowance in response to widespread concern from the local government sector that a lack of financial support for childcare creates a barrier for people to enter into elected positions.

21. Elected members are eligible for the allowance if:

· they are engaged on local authority business at the time of the childcare,

· they are the parent or guardian of the child or usually have day-to-day responsibility for care of the child, and

· the child is under 14 years of age.

22. The childcare must be provided by someone who:

· is not a family member of the elected member, and

· does not ordinarily reside with the elected member.

23. Elected members must provide evidence of the amount paid for childcare, and may claim up to $6,000 per year for each child if the childcare meets the criteria.

24. This new allowance has been added to the updated policy.

25. The only other change from the previous version of the Elected Members’ Expenses Policy is to update the reference to the availability of reserved car parking for elected members on Council business.

Consultation

26. No consultation is required on these matters.

Legal Considerations

27. The Authority determines local government elected members’ remuneration under Clause 6 of Schedule 7 of the Local Government Act 2002 and the Remuneration Authority Act 1977. The Council is required to distribute the remuneration pool set by the Authority for councillors and those elected members with additional positions of responsibility.

28. The Local Government Members (2019/20) Determination 2019 outlines the remuneration, allowances and hearing fees payable to elected members.

Financial Considerations

29. The Authority sets the remuneration pool and requires that the entire pool be allocated. Elected member remuneration and allowances are budgeted for in the Annual Plan.

Appendices

No.	Title	Page
1 ⇩	Appendix 1 Elected Members' Expenses Policy	54

Author: Joyanne Stevens

Contractor

Reviewed By: Kathryn Stannard

Divisional Manager, Democratic Services

Approved By: Jo Miller

Chief Executive

60 10 December 2019

Hutt City Council

26 November 2019

File: (19/1374)

Report no: HCC2019/1(2)/232

Schedule of Meetings for 2020

Purpose of Report

1. The purpose of the report is to seek adoption of a schedule of meetings for 2020 as provided for in the Local Government Act 2002.

Recommendations

That Council:

(i) adopts the schedule of meetings for 2020 attached as Appendix 1 to the report, subject to approval by the Community Boards in respect of its own meeting dates;

(ii) agrees that the venue for the meetings of Council, its committees and subcommittees, other than Community Boards, be the Hutt City Council Chambers, 30 Laings Road, Lower Hutt;

(iii) agrees to a commencement time of 2pm for Council, standing committee and subcommittee meetings; and

(iv) delegates authority to the Chief Executive in consultation with the Mayor or Subcommittee/Committee Chair to alter the date, time or venue of a meeting, or cancel a meeting, should circumstances require this.

For the reason that the Local Government Act 2002 requires that a local authority must hold meetings that are necessary for the good government of its district.

Background

2. The Local Government Act 2002 (LGA) requires that a local authority must hold meetings that are necessary for the good government of its district.

3. The LGA requires that notice be given in writing to each member of the time and place of a meeting, not less than 14 days before the meeting or, if the local authority has adopted a schedule of meetings, not less than 14 days before the first meeting on the schedule.

4. In line with the previous triennium, the proposed meeting schedule has five meeting cycles covering the calendar year of 2020. Meeting cycle 1 covered the period from the Local Government elections in October 2019 to the end of 2019.

Discussion

5. The proposed meeting schedule for 2020 is attached as Appendix 1 to the report for consideration.

6. Each meeting cycle provides for weeks one and two to be free from meetings, where possible, to allow time for the preparation of the order papers for the Community Boards and Subcommittees and for updating the Corporate Agenda planning schedule, following the ordinary meeting of Council at the end of each meeting cycle.

7. The proposed meeting schedule provides for two briefings per month for the majority of months, excluding January, May, November and December where one briefing in provided for.

8. The proposed meeting schedule allows reports to be considered by the appropriate Community Board and/or Subcommittee or Committee of Council.

9. Council determines the commencement times of meetings of Council and its subcommittees and standing committees.

10. In situations where additional meetings of Council and its subcommittees and committees are required, ideally 14 days’ notice will be provided to members. Where a lesser period of notice can be provided, such meetings would be treated as extraordinary meetings. This is in accordance with the LGA.

11. Community Boards agree its own meeting dates, times and venues. The Chairs of the Board schedule informal get-togethers to discuss specific issues or as a forum to engage with the community.

12. Joint Committees, Hutt Valley Services and Wellington Water Committee agree its own meeting dates, times and venues.

13. The proposed meeting schedule has been adjusted to take account of public holidays, which are noted on the schedule, and also the Local Government New Zealand Conference in July 2020.

14. Civic functions are included on the proposed meeting schedule to assist with forward planning.

15. On occasion circumstances can change and the schedule may require the alteration of a date, time or venue of a meeting, or the cancellation of a meeting. It is recommended that Council delegates authority to the Chief Executive in consultation with the Mayor or Subcommittee/Committee Chair to make the required changes.

16. The Chief Executive’s Employment Subcommittee is due to meet three times a year. Only one meeting dates has been included in the proposed meeting schedule. The other meeting dates are yet to be confirmed and would be subject to the delegated authority referred to in paragraph 15.

Consultation

17. At its meetings held in November 2019 the Community Boards:

(a) approved its February 2020 meeting dates;

(b) noted that the full schedule of meetings for 2020 would be reported to the first Board meetings in 2020;

(d) delegated authority to the Chief Executive, in consultation with the Board Chair, to alter the date, time or venue of a meeting, or cancel a meeting, should circumstances require this.

18. Therefore, the dates, times and venues stated in the proposed meeting schedule for Community Boards for meeting cycles 3 to 6 are provisional until agreed by each Community Board in February 2020.

19. The meeting dates, times and venues will be considered by each joint Committee.

20. In respect of the Hutt Valley Services Committee (HVSC):

(a) the meeting dates, times and venues have been discussed with officers from Upper Hutt City Council;

(b) Upper Hutt City Council agreed its meeting schedule for 2020 at its meeting held on 6 November 2019, this included the meeting dates and times for HVSC;

(c) HVSC at its meeting held on 29 November 2019 agreed the meeting dates, times and venue as set out in the proposed meeting schedule attached Appendix 1 to this report. The meeting cycle 2 meeting date has been amended since this meeting, under the delegated authority of the Chair and the two Council’s Chief Executives, to meet a week earlier on Friday, 21 February 2020 to avoid a clash with the Local Government New Zealand (LGNZ) Zone 4 meeting.

21. In respect of the Wellington Water Committee (WWC) the meeting dates, times and venues will be considered by WWC at its meeting to be held on 16 December 2019. Therefore, the dates, times and venues stated in the proposed meeting schedule are provisional until agreed to by the WWC.

22. In respect of the meetings managed by Greater Wellington Regional Council (GWRC) the dates included in the proposed meeting schedule have been provided by officers from GWRC. These meetings include the Hutt Valley Flood Management Subcommittee, the Regional Transport Committee and the Wellington Regional Strategy Committee.

23. LGNZ Zone 4 meeting dates, times and venue have been provided by Kapiti Coast District Council (KCDC), the new Chair of this group is the Mayor of KCDC.

24. Council, Subcommittee, Committee and Community Board meetings will be publicly advertised.

Legal Considerations

25. The LGA makes provision for Local Authorities to adopt a schedule of meetings. Adoption of the proposed meeting schedule would serve as notice to members that the meetings are to be held.

26. Council, Subcommittee, Committee and Community Board meetings will be publicly notified in accordance with the Local Government Official Information and Meetings Act 1987.

Financial Considerations

27. There are no financial considerations directly arising from this report.

Appendices

No.	Title	Page
1 ⇩	Appendix 1 Proposed Meeting Schedule 2020	61

Author: Donna Male

Committee Advisor

Approved By: Kathryn Stannard

Divisional Manager, Democratic Services

192 10 December 2019

Hutt City Council

13 November 2019

File: (19/1356)

Report no: HCC2019/1(2)/226

High Level Plan and Approach to 2020-2021 Annual Plan and 2018-2028 Long Term Plan Amendment

Purpose of Report

The purpose of this report is to seek Council’s approval for the proposed high level plan and community engagement approach for the 2020-2021 Annual Plan and the 2018-2028 Long Term Plan (LTP) amendment.

Recommendations

That Council:

(i) notes the process and timeframe for the development of the 2020-2021 Annual Plan and the 2018-2028 Long Term Plan (LTP) amendment;

(ii) agrees to the proposed consultation document topics;

(iii) provides any further direction and guidance required for the 2020-2021Annual Plan and the 2018-2028 LTP amendment;

(iv) notes that a full review of the Long term Plan including community outcomes will be progressed as part of the development of the 2021-2031 Long Term Plan; and

(v) notes that the 2021-2031 Long Term Plan will be the first step towards developing a long term City Plan that will form the basis of the Long Term Plan 2024-2034.

Background

2. Every three years Council is required to prepare and adopt a Long Term Plan and is required each financial year to prepare and adopt an Annual Plan.

3. Council adopted the 2018-2028 LTP on 28 June 2018. The upcoming financial year, 2020 - 2021 is an Annual Plan year and is represented as year three in the 2018-2028 LTP. A separate standalone document for the Annual Plan and LTP amendment will be prepared and adopted before the start of the new financial year.

4. The purpose of the Annual Plan is to:

(a) present the proposed annual budget and funding impact statement including 2020/21 rates;

(b) identify any variations from the financial statements and funding impact statements from the LTP;

(d) contribute to the accountability of Council to the community; and

(e) somewhat extend opportunities for public participation in decision-making processes relating to costs and funding of activities to be undertaken by Council.

Amendment to 2018-2028 Long Term Plan

5. An amendment to Council’s Long Term Plan is required to include:

(a) agreed option(s) for the Naenae Town Centre and Naenae Pool;

(b) options for the waste review; and

Further details of these amendments are included in the paper entitled “ Annual Plan 2020/2021 and Long Term Plan Amendment – Financial Aspects”.

Naenae Pool

6. In July 2019, the previous Council considered initial options for the pool and other community facilities in Naenae, and requested further community engagement to ensure that community views would be thoroughly considered as part of the decision making process for both the wider Naenae town centre and the pool.

7. Council, along with project partners Empathy (design researchers), have completed this engagement. There is a separate Council report on the results of this engagement along with recommendations on options for next steps.

Waste Management Services Review

8. A separate Council report has been completed that reports back on the Waste Management Services Review, in particular the kerbside collection.

9. The suggested changes meet the Significance and Engagement Policy threshold and Council must consult the community on the proposed options.

Rates Policy Review

10. A key underpinning strategy of Council’s LTP is the affordability of rates to ratepayers. With the three yearly revaluation process which became effective from 1 September 2019, there is an opportunity to review some aspects of the rates policy settings. A separate report on this issue has been completed for Council’s consideration.

Content and Structure of the Annual Plan and Long Term Plan Amendment

11. The Annual Plan will be structured around Council’s key strategy areas. These will be aligned to community outcomes that reflect all aspects of wellbeing. The Annual Plan content is subject to any changes in priority that emerge from the Mayor and Councillors’ planning session, briefing and meetings. The Annual Plan must also identify variations from the financial statements and funding impact statement included in the Long Term Plan for 2018-2028.

12. The detailed underlying information relied on by the Consultation Document (CD) and the LTP amendment must be audited before the CD can be adopted.

13. The Annual Plan process does present an opportunity for Council to signal its intention to “refresh and reset” through:

(a) The collaborative development of a City Plan – a long term plan for Lower Hutt that is developed in partnership with our community, partners and stakeholders.

(b) A refreshed approach to community engagement and consultation.

(c) The development of metrics which will assist the community, partners, stakeholders and Council to assess, measure and report on progress.

Timetable

14. Below is a proposed timetable for developing the 2020-2021 CD, Annual Plan and 2018-2028 LTP amendment. Final dates will depend on Council’s adoption of the 2020 Annual Schedule.

Activity	Date
Mayor and Councillors’ planning session	25-26 November 2019
Briefing for Council on budgets and projects	2 December 2019
Council adopts key assumptions and risks for 2020/21 budgets and high level consultation approach for Annual Plan and LTP amendment	10 December 2019
Engagement plan, consultation document and consultation process prepared for Council approval	11 December 2019 - 7 February 2020
Council agree engagement plan, consultation process and content of CD	11 February 2020
Consultation document audited	12 February - 11 March 2020
Council meet to approve text for CD and adopt underlying information	24 March 2020
Activity	Date
Public consultation	6 April – 3 May 2020
Hearing of submissions	13 - 14 May 2020
Council agree final changes to Annual Plan and LTP amendment	10 June 2020
Council meet to adopt Annual Plan and LTP amendment and set the rates	30 June 2020
Annual Plan and LTP amendment published	July 2020

Community Engagement and Consultation

15. The Annual Plan and Long Term Plan amendment for 2020-2021 will be subject to public consultation in accordance with sections 83 to 85 of the Local Government Act 2002 which deals with special consultative procedures. Council is required to prepare a CD that will provide an effective basis for public participation.

16. A full engagement plan and consultation process will be developed with the aim of increasing public understanding of the issues at hand and their involvement.

17. The CD is the basis for consulting with the community on the issues Council is proposing to include in the Annual Plan and LTP amendment. The special consultative procedure, consisting of formal public consultation and hearings, is required when significant changes to the LTP are being proposed. The CD is intended to be concise, simple and easily understood. It must cover key issues and choices facing Council and the consequences of those choices on rates, debt and levels of service.

18. The consultation period will run from 6 April to 3 May 2020. The consultation framework will involve a number of consultation and engagement methods including: public notices and articles; CD distribution via the Hutt News; radio advertising; separate consultation with local mārae; an independent randomised survey of approximately 2,000 residents; articles in Council publications; a website link for accessing information; use of e-democracy tools such as Facebook and Bang the Table; the ability to lodge submissions online; meetings with special interest groups; support for Councillor-led engagement; support for Community Boards during the consultation process and any local meetings organised by them.

19. Councillors are encouraged to recommend engagement and consultation approaches that are most appropriate for their wards or to give further direction. To support Councillors with their own engagement approaches, Council officers will prepare a pack of resources that will include:

(a) social media guidelines;

(b) key messages for the 2020/21 Annual Plan, including an overview of key projects and the budget;

(d) the funding process with calendar; and

(e) anything else requested by Councillors.

Legal Considerations

20. Council is aware of, and complies with, its legal obligations under the Local Government Act 2002 with regard to preparing the 2020-2021 Annual Plan and the 2018-2028 LTP amendment.

Financial Considerations

21. All work required as part of the 2020-2021 Annual Plan and 2018-2028 LTP amendment will be undertaken within current budgets.

Appendices

There are no appendices for this report.

Author: Wendy Moore

Divisional Manager, Strategy and Planning

Author: Jenny Livschitz

Chief Financial Officer

Reviewed By: Helen Oram

Acting General Manager, City Transformation

Approved By: Brent Kibblewhite

General Manager Corporate Services

211 10 December 2019

Hutt City Council

28 November 2019

File: (19/1363)

Report no: HCC2019/1(2)/227

Annual Plan 2020/2021 and Long Term Plan Amendment - Financial Aspects

Purpose of Report

1. The purpose of this report is to seek Council approval on key financial matters relating to the Annual Plan 2020/21 and the proposed Long Term Plan (LTP) amendments.

Recommendations

That Council:

(i) notes the draft Annual Plan 2020/21 and Long Term Plan (LTP) amendment financial information;

(ii) notes that a further update on the draft Annual Plan 2020/21 and LTP amendment information will be presented to Council in February ahead of finalising the consultation material for the formal special consultative procedure;

(iii) approves the proposed LTP amendment to consider the Naenae pool and fitness redevelopment, as detailed in paragraphs 12 and 13;

(iv) approves the proposed LTP amendment to consider changes to how waste services are delivered in the city, subject to the outcome of the early engagement process, as detailed in paragraphs 14 to 19;

(v) approves the proposed LTP amendment to consider changes to rating policy following the three yearly general revaluations of properties, as detailed in paragraphs 20 to 22;

(vi) approves the proposed base assumptions for Draft Annual Plan 2020/21 annual increase in total rates income as detailed in table 4;

(vii) approves the proposed base assumptions for operating and capital expenditure for the Draft Annual Plan 2020/21 as detailed in the report;

(viii) approves the recommended changes to budgets as detailed in table 6 being “known budget changes which are unavoidable“;

(ix) considers the budget matters as detailed in table 7 and provides direction to officers in the preparation of the Draft Annual Plan 2020/21;

(x) considers any further direction and guidance to be provided to officers ahead of the preparation of the draft Annual Plan 2020/21 and LTP amendments being progressed; and

(xi) notes the legislative requirement to prepare a balanced budget and that this will be a consideration in finalising the overall rates increase for 2020/21.

Acronyms:

DAP – Draft Annual Plan 2020/21

FAP – Final Annual Plan 2020/21

LTP – Long Term Plan 2018-2028

Background – high level plan

2. There is a separate report on the agenda which proposes the high level plan and approach to the Annual Plan 2020/21 and the LTP amendments. In summary the plan includes a formal public consultation on the DAP and LTP amendment during the month of April 2020. Ahead of this Council needs to review and approve the proposed information for consultation. An external audit by Audit NZ is also required before the consultation can progress.

Background - Strategic financial context

3. Council’s total assets are worth $1.5B and include infrastructure assets, land and buildings; whilst total liabilities are lower at $0.3B and include borrowings and payables to suppliers. Annual income of $174M is largely applied to fund operating costs for services delivered by Council and to maintain assets.

4. Council’s Financial Strategy promotes the sustainable funding of services and is a key component of the LTP. The key elements underpinning the strategy include:

- affordability of rates,

- delivering services efficiently

- achieving intergenerational equity by spreading the costs between both present and future ratepayers

- strengthening Council’s financial position.

5. Future capital investment plans over the next ten years total about $0.6B and are funded largely by debt together with income received for capital projects (eg, NZTA subsidies, development contributions).

6. Council’s Financial Strategy includes a range of measures to ensure the amount of borrowings is prudently managed whilst enabling continued investment in infrastructure and community assets to continue. Council is required to deliver sound operating results, whilst also ensuring that borrowing is restricted to self-imposed limits (such as debt to revenue and interest costs to operating expenses ratios) to ensure that it is affordable.

7. Whilst Council’s Financial Strategy does set self-imposed limits, there is an overriding legislative requirement to have a balanced budget. Section 100 (1) of the Local Government Act 2002 requires a local authority to “ensure that each year’s projected operating revenues are set at a level sufficient to meet that year’s projected operating expenses.” Section 100 (2) provides that “despite subsection (1), a local authority may set projected operating revenues at a different level from that required by that subsection if the local authority resolves that it is financially prudent to do so”. As we progress through the budget setting process for 2020/21, this will be a critical consideration.

Annual Plan 2019/20

8. The Annual Plan 2019/20 was the second year of the LTP 2018-2028 and was essentially a continuation of the priorities and projects previously agreed with the community. There were no changes made to the financial strategy through the Annual plan process.

9. In April 2019 Naenae Pool was closed due to earthquake concerns. The final stages of the Annual Plan 2019/20 were progressed in the context of resolving the Naenae Pool issue as a top priority.

10. Summary of key decisions made in the Annual Plan 2019/20:

- Rates revenue increase was kept at the same levels as per the LTP being 1.8% for inflation and a further 1% from growth in the rating base.

- $68M capital investment plan agreed which was in line with LTP.

- Homelessness Strategy implementation resulted in additional funding of $1.5M over three years included in the plan.

- Additional funding included in the plan of $0.85M (total funding now provisioned in the plan is $1.35M), towards enclosing two of the tennis courts and strengthening of the pavilion at Mitchell Park for Hutt Valley Tennis.

- Funding reprioritised to pay Council cleaning contractors the Living Wage.

- Funding reprioritised for Naenae CBD activation and events of $0.3M over two years.

Proposed Long Term Plan 2018-2028 Amendments

11. There are three key matters which officers are recommending should be progressed as LTP amendments in order to seek community feedback. These amendments will need to be audited by Audit NZ ahead of the formal special consultative procedure required by legislation.

Proposed LTP amendment : Naenae pool and fitness redevelopment

12. A separate report on this matter is included in this agenda entitled “Report back on the Voice of the Community options for Naenae Pool and the vision for the town centre”. In summary this LTP amendment will seek community feedback on a proposal to invest $52M (excluding inflation) in the development of a new Naenae Pool and Fitness Centre. The Annual Plan 2019/20 included $9M set aside for maintenance works at the pool, so the proposed new investment will result in a significant increase in funding of $43M.

13. Whilst there are a range of possible funding options to offset the costs of this project (eg, sale of assets, removing or deferring projects currently in the LTP ), it is expected that the most likely funding source for the majority of the project will be debt funding. Additional rates funding will be required to service the operational cost impacts of this project, including the cost of debt and depreciation. Indicatively for 2020/21 a rates increase of one per cent is required to fund these costs with further rates increases of up to 1.5 per cent required over the following three years (2021/22 to 2023/24). Note the total indicative rates increase would be 2.5% spread over the four years. The impact on the LTP Financial Strategy debt limits will be reviewed as part of the development of the LTP amendment. Further analysis will be completed ahead of the consultation material being presented to Council for approval. Further information is available in Appendix 2.

Proposed LTP amendment : Kerbside recycling and refuse changes

14. A separate report on this matter is included in this agenda entitled “Waste review outcomes and next steps”.

15. The proposed LTP amendment will seek community feedback on changes to a new recycling system using bins, and discontinuing with the rubbish bag collection service and instead introducing a city-wide bin service for residential properties.

16. The current recycling system with crates leads to excessive wind-blown litter and requires separate recycling stations (to take surplus material due to limited crate capacity) that are prone to illegal dumping. The key cost implications for the proposed refuse bin collection service are indicatively $4.5M together with lost revenue from refuse bag sales of $0.4M, which is proposed to be funded via a targeted rate of approximately $144 per annum. Households would pay less have offsetting savings from rubbish bag purchases or from fees paid to commercial operators.

17. The pay-as-you-throw rubbish bags, due to required manual handling, present significant health and safety concerns to workers, and the waste service industry is moving away from them (key companies are no longer tendering on such contracts at all). In addition, it is likely that at least some of the illegal dumping (and associated costs) occurring in Lower Hutt is due to ability for users to avoid rubbish collection costs.

18. The recycling service additional costs of $0.9M are proposed to funded by targeted rates, which are estimated to increase the targeted recycling rate from current $40 per household to $69 per household.

19. Further information is available in Appendix 3.

Proposed LTP amendment : Review of rating policy

20. Every three years Quotable Value sets a new property valuation for Hutt City Council as required by rating legislation. The new valuations have been set based on property values as at 1 September 2019 and include significant changes across different property categories. For example, residential properties increased on average by 31.8% whilst there were lower increases on average for Commercial properties at 16.9% and Utilities at 12.8%. Early indicative projections show that this would result in residential properties incurring increased rates charges of ~$0.8M and commercial properties and utilities would have offsetting decreases in rates charges.

21. Further urgent work is being progressed to consider the possible options that could be considered as part of an LTP amendment on rating policy. Initial indications are that community feedback will be sought on possible changes to the way rates are spread between different property categories (i.e. residential, commercial etc.), to consider if this is fair and equitable. This is likely to include a review of the rating differentials. It is expected this amendment will include proposed changes to the Revenue and Financing Policy.

22. A detailed report on this proposed LTP amendment will be presented to Council early in 2020. Given the limited timeframe ahead of setting the rates in June 2020, it is expected that there could be further rating review changes that are progressed through the LTP 2021-2031.

Draft Annual Plan 2020/21

23. The first stage of the Annual Plan process includes a review and update of existing base budget assumptions and parameters. The purpose of the content that follows is to review these base assumptions and parameters and ensure Council is supportive of the proposed approaches in each area.

Income

24. The key components of Council income are rates funding $112M (63%) and user charges (e.g. building consent fees) $43M (24%), together with other revenue and capital contributions (e.g. NZTA funding).

Part 1 - Rates revenue

25. National context

A comparison of the 2018-2028 Long Term Plans for peer local authorities shows Hutt City Council (HCC) rates increases as significantly lower than peers. Whilst HCC has a 38% average rates increase over ten years, the average of all peers is 62%.

26. In the most recent Annual Plan 2019/20, the HCC had a significantly lower rates increase than Wellington regional peers.

Table 1: Comparison of Wellington region rates increase for 2019/20

Council	2019/20
Porirua City Council	5.9%
Wellington City Council	4.9%
Upper Hutt City Council	6.9%
Kapiti Coast District Council	5.5%
South Wairarapa District Council	5.4%
Masterton District Council	6.4%
Hutt City Council	2.8%

Hutt City Council context

27. A key underpinning strategy of Council’s LTP is the affordability of rates to ratepayers. As a result the Financial Strategy includes the following elements:

- Capital value is the basis for gathering general rates revenue; the higher the value of the property, the higher the rates paid by the property owner.

- Differentials for businesses reflect their higher share of the benefits of certain Council services.

- Differentials applied to community facilities and rural sectors to reflect ability to pay and relative levels of service received.

- Rates relief is offered through rates rebates which are funded by central government; in 2018/19 we processed 1,890 rebate requests totalling $1.1M.

- Rates postponement and remission policies (includes financial hardship, wastewater charges for schools, community, sporting and other recreation organisations).

- Limits in annual rates increase.

28. To progress the DAP process, we need to review the initial base assumption around what the rates revenue increase will be. It is important to note that depending on decisions made by Council, the final rates revenue increase may need to be revised. Whilst Council’s Financial Strategy sets limits on the rates increases each year, there is a need to ensure overall legislative compliance with the “balanced budget requirement”. For example increases in operational service levels or significant additional capital investment are likely to require changes to the rates revenue increase.

29. There is a legislative requirement for all Councils to report on the “Balanced Budget benchmark” as part of LTP and Annual Report. In simple terms this benchmark is an indicator as to whether Council operating revenues match/balance with operating expenditure levels. The graph that follows shows the average result over the last five years. HCC results are below the target level and are comparatively low compared to peers. The key reasons for this are the operating grants paid to the Community Facilities Trust to fund capital investment (a required accounting treatment), operating funding of the Development stimulus package together with limited revenue growth to match increasing operating expenditure.

30. Council’s Financial Strategy limits the maximum increase in the rates revenue to:

- Inflation, being the published BERL Local Government Cost Index for New Zealand (LGCI).

- Estimated average growth in the rating base. (ie, growth in rateable property in the city). This will increase the net rates revenue earned without impacting on existing ratepayers.

31. The LGCI published by BERL for the year ending 30 June 2019 was 2.8%. BERL had initially indicated a 3.3% increase largely driven by increasing construction sector costs due to increased activity and capacity constraints, with this expected to ease over time as capacity became available. As a result, in the Annual Plan 2019/20 an assumed reduced 2.3%inflation factor was included for 2020/21. Given the final published BERL result was 2.8%, it is proposed that this assumption is updated for the DAP. The out years of the DAP are also updated with the latest BERL forecasts as detailed in the table that follows.

32. Table 2: DAP assumed annual increase in total rates income for inflation (excludes assumption for growth in the rating base)

	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030
Per published Annual Plan 2019-20 rates increases	2.3%	2.3%	2.3%	2.1%	2.3%	2.3%
Proposed DAP 2020/21 assumed rates increases (BERL LGCI 2019)	2.8%	2.2%	2.2%	2.3%	2.3%	2.47%
Variance	(0.5%)	0.1%	0.1%	(0.2%)	-	(0.17%)

33. A further rates income increase is expected to be received from growth in the rating base, as a result of new builds and property investment. Whilst this growth target is on track to being achieved by 30 June 2020, this will be measured and adjusted if necessary in late June 2020, immediately prior to calculating the rates in the dollar for the 2020/21 rates income requirement. The revisions reflect latest information available.

34. Table 3: DAP assumed increase in total rates income from growth in the rating base

	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030
Per published Annual Plan 2019-20 rates increases	1.2%	1.2%	1.4%	1%	1%	1.2%
Proposed DAP 2020/21 assumed rates increases (BERL LGCI 2019)	1.0%	1.1%	1.2%	1.2%	1.2%	1.2%
Variance	(0.2%)	(0.1%)	(0.2%)	0.2%	0.2%	-

35. Combining the two components of the rates increase together, the starting assumption for the rates increase is summarised below.

36. Table 4: Proposed DAP annual increase in total rates income

	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030
Rates increase for inflation	2.8%	2.2%	2.2%	2.3%	2.3%	2.47%
Growth in rating base	1.0%	1.1%	1.2%	1.2%	1.2%	1.2%
Total	3.8%	3.3%	3.4%	3.5%	3.5%	3.67%

37. There may be further possible changes to the budgets for 2020/21 and beyond. Depending on Council decisions related to additional capital and operational expenditure to be included in the FAP, the average rates increase for 2020/21 may need to be revised to reflect changes agreed to.

Part 2 – Other revenue for 2020/21

38. In prior years the operating revenue budgets have been assumed to be increased by an inflation adjustment. It is proposed that approach is changed for the DAP, and that revenue budgets for 2019/20 are used as a starting point and adjusted for known price and volume changes (for example in resource consents and building consents).

39. Council did not formally consult on the Annual Plan 2019/20 and as a result there were no changes to a range of fees and charges. For the DAP there is a planned special consultative procedure and this will include an update of fees and charges where relevant.

Expenditure

Part 1 – Operating and capital expenditure budget process and assumptions

40. There are a range of cost pressures facing Council for both existing services and assets (such as contractual cost escalations), as well as for new funding and investment needs. Some examples of cost pressures include additional funding requirements for Naenae Pool, possibly Melling Interchange and RiverLink project, potential refuse and recycling service changes, seismic strengthening of community facilities, digital transformation and insurance.

41. Whilst the LTP included annual inflation adjustments to reflect the assumed increase in costs, it is proposed that this is changed for the DAP. For 2020/21 it is proposed that there is no general inflation allowance but rather a starting point of 2019/20 uninflated budgets, which can be adjusted for specific circumstances as detailed as follows. This will free up funding capacity to address specific cost pressures and/or new funding requirements.

The base budgets will be adjusted for:

- Unavoidable increases (such as known rent reviews, contractual cost escalations and reviews, salary increases).

- Known decreases (such as one-off items, items no longer required, known savings such as contract rate reductions).

- Approved service level changes.

- Other justifiable changes approved.

42. For future years beyond 2020/21 it is proposed that the latest BERL inflation indicators are reflected in the budget assumptions. The table that follows provides a summary of these.

Table 5: Proposed expenditure inflation adjustors

	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030
Per published Annual Plan 2019/20	2.3%	2.3%	2.1%	2.2%	2.2%	2.3% to 2.5%
Proposed DAP 2020/21 (BERL LGCI 2019)	As per specific conditions	2.2%	2.2%	2.3%	2.3%	2.3% to 2.5%
Variance	n/a	0.1%	(0.1%)	(0.1%)	(0.1%)	-

43. Employee cost budgets: these will be reset to reflect latest current 2019 costs, including budgeted costs for all vacant approved positions.

44. Council’s remuneration advisors Strategic Pay, have completed staff salary surveys and provided advice on the likely market movement cost increases. The forecast movement for local government is expected to be 2%, whilst market movements for private sector are 3% and public sector 2.3% with a combined rate of 2.7%.

45. The remuneration framework is designed to ensure staff initially paid at the lower end of the salary range for a position make faster progress towards the salary midpoint of that position and Council can provide higher increases where required for performance recognition, staff retention or other purposes.

46. Officers recommend an overall 2.5% assumed budget increase to employee costs for the DAP. This is expected to enable Council to meet the current market movement increases and to continue to pay the living wage.

47. Project budgets will be updated to reflect latest information relating to projects, which will include likely timing and latest estimated costs of projects. Organisational capacity and capability to deliver the full work programme is also a critical consideration.

48. The Asset Management Plans (AMP) of Council provide detailed information about Council’s assets based on service levels set for each activity. Any new or updated information available via AMPs may require revisions of capital renewal and maintenance budgets.

Part 2 – Significant budget matters

49. Officers have progressed early budget review work across the key significant matters. Early guidance and direction is sought from Council on the handling on these matters, as they are key inputs into the DAP process.

50. All financial amounts are shown in today’s dollars, and there is no adjustment made for inflation. However in the financial models that underlie the DAP, the inflation adjustors will be included.

Known budget changes which are unavoidable

51. The following matters have been reviewed by Officers and are recommended to be updated in the DAP.

Table 6: Known budget changes proposed to be included in the DAP

	Brief description	Financial impact	Further information
1.	Bulk water cost increases from Greater Wellington Regional Council	Opex budget increases: $0.1M 2020/21, $0.4M 2021/22, $0.7M 2022/23 continuing to increase. Over ten year period increase of $7.7M.	Refer Appendix 8.
2.	Urban Growth Strategy Development Stimulus Package – development delays resulting budget timing changes	Overall opex increase of $2.4M over ten years offset by $2M carryover from 2019/20. Includes decrease in 2020/21 of $2.6M, and increase in 2022/23 of $4.7M	Refer Appendix 12.
3.	Community facilities – seismic strengthening	Increase in budgets of $2.5M over three years, comprising $2.1M capex and $0.4M opex. Note this is initial indicative cost impact. As further detailed seismic assessment information becomes available Council will be kept informed. Advice will also be provided on the estimated cost implications.	Refer Appendix 7.
4.	District Plan Review	Increased costs of $2.9M over four years to meet legislative requirements.	Refer Appendix 10.
5.	Insurance increases	Based on latest market information from specialist insurance advisors, it is recommended that the DAP budget is increased by $0.4M.	A detailed report on insurance will be presented to the relevant committee in early 2020.
7.	Water Supply and Wastewater	Water Supply: Recommended increased capex of $10.7M over ten years largely to support investment required for Reservoirs to support growth and seismic strengthening issues. Wastewater: Recommended increased capex of $23M over ten years to support investment in Petone Collector Main and Outfall pipeline overflow mitigation.	Refer Appendix 8. As further information becomes available from Wellington Water, this will be reported to Council.

Further matters requiring Council review and decisions

52. Council is requested to review and consider the budget matters in Table 7 and provide officers with early guidance as to how these matters should be progressed in the DAP. Given the significant funding challenges of core infrastructure and Naenae Pool, it is recommended that Council consider possible offsetting budget adjustments such as projects than can be delayed or stopped.

Table 7: Budget matters requiring Council review and decisions

	Brief description	Financial impact	Further information
1.	Digital transformation	Proposed increased funding in IT largely to address the critical ”stabilise” work programme together with supporting business transformation deliverables. Officers recommend additional investment of $10.8M over first 4 years, with further investment ongoing thereafter.	Refer Appendix 6.
2.	Climate change	Officers recommend additional funding of $0.2M p.a. to progress climate resilience and carbon reduction works, in line with Council’s carbon target.	Refer Appendix 9.
3.	Wellington Regional Growth Framework	Officers recommend that funding of $50k included in 2020/21 is extended into future years to support future work programmes. Total cost of $0.45M over ten years.	Refer Appendix 15.
4.	Community engagement – centralised approach	Officers recommend additional funding of $0.4M p.a.; $4M over ten years to enable an improved approach to engagement and to do more and better engagement.	Refer Appendix 16.
5.	Melling interchange and RiverLink – significant financial risks associated with scope changes and uncertainty and cost share splits yet to be finalised.	The budget of $51.7M is not expected to be sufficient. Officers recommended inclusion of additional budget of $22.5M to reflect indicative Melling Interchange costs for property purchases and other costs associated with local road system, walking and cycling. Note further contingency cost risks of $27.5M associated with development costs, bus interchange, train station and public facilities are not proposed to be included in budgets at this stage.	Refer Appendix 1. A detailed report on this project will be reported to the relevant committee early in the new year. Further updates to budgets will be recommended as information becomes available.
6.	Cross Valley Transport Connections project – increased costs and uncertainty of NZTA funding	In the recent development of the programme business case, a revised estimate of $90M to $140M has been costed which is significantly higher than the $65M currently budgeted. There is also no commitment from NZTA as yet to fund the construction of this project at the timing included in the LTP of 2024. Officers recommend that the budget is updated to reflect a more up to date costing of an extra $55M partially offset by assumed NZTA funding. Officers recommend that the timing of the project is updated to enable consenting to progress as planned, and construction to be progressed slightly later than originally planned in about 2025 to 2027.	Refer Appendix 4. It is proposed that Officers report back to Council on commencing an Integrated Transport Plan for the city.
7.	Active Transport – Cycleways Project	The original budget agreed by Council for this programme was $28M, with Wainuiomata Hill completed at a cost of $12.3M and the Beltway Northern and Central Sections forecast to cost $5.4M and Eastern Bays estimated to cost $25M. There is a potential overall budget shortfall of approximately $15M. Appendix 5 provides information on the existing budgets. There is uncertainty about the resource consenting conditions required for Eastern Bays cycleway together with uncertainty as to whether NZTA will fund this project. Officers recommend the inclusion of the estimated additional budget of $15M together with assumed NZTA funding, and that the timing of this is deferred for a period of up to three years to enable the consenting process and NZTA funding uncertainties to be resolved.	Refer Appendix 5. A further detailed report will be delivered to Council in early 2020.
8.	Events and promotions	To maintain the existing programme, Appendix 11 explains the need for additional budget of $0.29M in 2020/21 and $1.25M over ten years. 2019/20 budget over spend issue: As part of the Annual Plan 2019/20 process, Council approved additional funding of $100k for Highlight to bring the net budget to $0.3M. The latest financial forecasts for the October 2019 Highlight event is showing a net overspend of 71% of the approved budget (or $0.23M over spend). Across the last three years the operating costs of running the event have increased from $0.5M to $0.8M whilst revenue has grown from $0.1M to $0.25M. This has resulted in an increased need for rates funding. In light of immediate priorities of core infrastructure and Naenae pool, officers recommend no additional funding be allocated for Events and promotions and that a review of the Events Strategy 2013-2023 as well as the Leisure and Wellbeing Strategy 2012-2032 are undertaken. Further to this as part of this review officers recommend that consideration be given to a bi-annual Highlight Event and a review of the return on investment.	Refer Appendix 11.
9.	Community Boards and Panels	No proposed changes to funding levels. Officers recommend that a review is undertaken.	Refer Appendix 13.
10.	Community funding	No proposed change to funding levels. Officers recommend that a review is undertaken of the Community Funding Strategy which will inform future funding requirements.	Refer Appendix 14.
11.	Flare at Silverstream landfill	Officers recommend increased capital funding of $1M.	Refer Appendix 17.
12.	Wainuiomata Dog Park	Officers propose capex funding of $0.28M in 2020/21 combined with $0.22M in 2019/20. This funding is from dog registration fees and there is no rates funding requirement.	Refer Appendix 18.
13.	Hutt Valley Tennis	Operational grant funding of $1.35M approved in Annual Plan 2019/20 however placed on hold pending Naenae Pool decision. In light of immediate priorities of core infrastructure and Naenae Pool, Officers recommend that the funding for Hutt Valley Tennis is removed from the plan.	Refer Appendix 19.
14.	Hutt Valley Gymsports facility	Capital funding of $2M included in Annual Plan 2019/20 however placed on hold pending Naenae pool decision. Officers recommend a review of the Integrated Facilities Plan ahead of progressing further investment. In light of immediate priorities of core infrastructure and Naenae Pool, officers recommend that funding for Gymsports is removed from the plan.	Refer Appendix 20.
15.	Wainuiomata Sportsville and Wainuiomata Hub	Wainuiomata Sportsville - Capital funding of $2.7M in 2020/21 however placed on hold pending Naenae Pool decision. Wainuiomata Hub – Capital funding of $8M in 2028/29. Officers recommend a review of the Leisure and Wellbeing Strategy and Integrated Facilities Plan ahead of progressing further investment. In light of immediate priorities of core infrastructure and Naenae Pool, officers recommend that funding for Wainuiomata Sportsville and Wainuiomata Hub are removed from the plan.	Refer Appendix 21 and 22.
16.	Improvement to resource recovery at Silverstream landfill transfer station	Officers recommend additional capital funding of $0.35M in 2020/21.	Refer Appendix 23.

Part 3 – Financial risks

53. Officers are currently progressing through a detailed budget review and there is uncertainty about the outcome of this work. There is likely to be a range of financial risks identified which require mitigation.

54. Council’s financial strategy limits, in particular the debt to revenue constraint will be reviewed as part of developing the DAP. There are significant risks around the ability to fund all cost pressures and remaining within the financial strategy limits.

55. Indicative modelling has been completed to understand the financial impact of possible budget scenarios, and the implications for financial strategy compliance. The graph below provides a projection of the financial strategy debt to revenue ratio in the following scenario:

- increased budget of $52M for Naenae Pool,

- increased budget for known changes which are unavoidable in table 6,

- together with increased budgets and no changes to project phasing for Eastern Bays cycleway $15M offset partially by assumed NZTA funding, Riverlink $22.5M , Cross Valley Transport Connections $55M offset partially by NZTA and Digital transformation.

- no changes to timing or budgets for any community facilities funding including Hutt Valley Tennis, Gymsports and Wainuiomata Sportsville.

- no increase in rates revenue apart from inflation and growth increase in Table 4.

56. The graph below shows that the projected debt to revenue ratio would exceed the financial strategy limits. The legislative requirement for a “balanced budget” would also not be achieved in this scenario.

Graph: Projected debt to revenue ratio

57. The financial risks will be reviewed and mitigation plans considered ahead of reporting back to Council.

58. The draft Annual Plan is required to meet the legislative “balanced budget” assessment, and rates revenue is required to be set appropriately to achieve this. Officers will report back to Council with advice in relation to this at the first opportunity in 2020.

Community Engagement and Consultation

59. This is covered in the separate report on the high level plan and approach to the DAP.

Legal Considerations

60. The requirements of the Act will be followed in preparing the 2020/21 Annual Plan and LTP amendment. In particular note paragraph 7 and the requirement for a “balanced budget”.

Financial Considerations

61. All work required as part of the 2020/21 Annual Plan and LTP amendment will be undertaken within current budgets.

Appendices

No.	Title	Page
1 ⇩	Appendix 1 Appendices providing additional budget information	212

Author: Jenny Livschitz

Chief Financial Officer

Author: Wendy Moore

Divisional Manager, Strategy and Planning

Reviewed By: Brent Kibblewhite

General Manager Corporate Services

Approved By: Jo Miller

Chief Executive

Attachment 1

Appendix 1 Appendices providing additional budget information

Further detailed content on specific budget matters follows. Below is a summary of the contents of this attachment:

Appendix 1: Melling Interchange and Riverlink

Appendix 2: Naenae Pool

Appendix 3: Refuse collection and recycling

Appendix 4: Cross Valley Transport Connections Project

Appendix 5: Active Transport – Cycleways projects

Appendix 6: Digital Transformation

Appendix 7: Community Facilities - seismic strengthening

Appendix 8: Three Waters

Appendix 9: Climate Change - development of Lower Hutt climate resilience and carbon reduction plan

Appendix 10: District Plan review

Appendix 11: Events and Promotions

Appendix 12: Development Stimulus Package

Appendix 13: Community Boards and Panels

Appendix 14: Community Funding

Appendix 15: Wellington Regional Framework/investment plan

Appendix 16: Engagement

Appendix 17: Flare at Silverstream landfill

Appendix 18: Wainuiomata Dog Park

Appendix 19: Hutt Valley Tennis Pavilion

Appendix 20: Hutt Valley GymSports Facility

Appendix 21: Wainuiomata Sportsville Facility

Appendix 22: Wainuiomata Hub

Appendix 23: Improvement to resource recovery at Silverstream landfill transfer station

Appendix 1: Melling Interchange and Riverlink

1.	Project/ initiative	RiverLink (RL)
2.	LTP Activity	Urban Growth, Leisure and Wellbeing, Environmental Sustainability, Infrastructure.
3.	Business lead	Paki Maaka, Brent Kibblewhite, Helen Oram.
4.	Brief project description (problem/opportunity statement)	Partnership HCC, GWRC, NZTA. · $400M approx. project value across three agencies. · Core objectives include; flood protection, Melling Interchange, and riverside promenade with mixed use development. · 10 to 15 year delivery. RiverLink consists of three project phases; 1. 2019 Phase One: RMA Consent Applications, Notices of Requirement, Designations of Land. 2. 2022 Phase Two: RMA Consent Approval (Environment Court decision), Developed Design, Contract Documentation, Contract Procurement, Contract Execution (build of HCC & GWRC scope). 3. Post 2028 Phase Three: Melling Interchange and misc scope dependent upon Melling. Includes Contract Documentation, Contract Procurement, and Contract Execution (build). HCC is expected to contribute to or fund outright the following specific project components. Some of these are budgeted & some are not; 1. Project Costs – project office, consultants, legal, engagement etc. 2. Riverpark – the look, feel and functioning of the re-shaped river plain. 3. Remediation of contaminated industrial land. 4. Promenade & structures that integrate with stop banks. 5. Acquisition of properties. 6. Mixed use property development associated with promenade. 7. Upgrades to Dudley Street, Andrews Ave, and Margaret Street including pedestrian & cycling access CBD to promenade. 8. Pedestrian Bridge. 9. CBD Laneway System. 10. Eastern and Western Road Access Routes. 11. Connecting up all walking & cycling. 12. Reconfiguration of local road network. 13. Car Parking. 14. Bus Service adjustments assoc. with routing Beltway (cycling) through CBD. 15. Three water & other infrastructure associated with CBD growth. 16. Melling Bridge. 17. Melling property cost sharing. 18. Melling Train Station cost sharing. 19. Melling walking & cycling cost sharing. 20. Melling local roads cost sharing. RiverLink Phase One, Two, Three contingencies.
5.	Strategic alignment and desired outcomes sought	RL evolved out of CBD Making Places strategy 2009 and aligns to HCC’s Urban Growth Strategy. Over 20 years is expected to create $2.5B economic benefits, 2,700 jobs, 1,300 homes, 2,600 residents in central city.
6.	Community engagement	Over 30 years of engagement including; 1987 Structure Plan, Hutt 2000, CBD Heart 2005, Making Places 2009,2009 – 2014 multiple presentations incl. Urban Design Forum, Probus Clubs, Rotary Clubs, Community Groups, & professional institutes capturing architects, urban designers, planners, engineers, legal societies, & LGNZ. RiverLink engagement 2014 – 2019 initiated by RL & NZTA across community, stakeholders, officers and councillors including open days, surveys, Highlight (2017, 2018, 2019) etc.
7.	Overview of project costs and funding source (refer tables below)	HCC LTP Budget = $51.7M but this is expected to be insufficient. · The project cost (project management & consultants) of the whole lifespan of the project is not yet known. The cost to build is not yet known and there are many contingencies e.g. soil conditions, consent conditions, timing or process inefficiencies between HCC/GWRC/NZTA etc. Refer next section re. financial risks.
8.	Risks and mitigation plans	There are risks that the project budget may double from $51.7M to $100M. Main drivers for this are; Melling Interchange cost sharing $22.5M (largely but not confined to properties as mid-point of $10M to $40M range indicated by NZTA). Other costs likely to include local road system, walking and cycling. Contingencies $27.5M (cost of development, bus interchange, train station, public facilities, & real costs of whole project). It is proposed that the draft Annual Plan budgets are adjusted by $22.5M. As the project progresses and further information becomes available (e.g. negotiation of cost share elements) these will be reported to Council and further decisions about budgets updates can be progressed.
9.	Annual Plan/LTP key assumptions	Existing LTP budget $51.7M unlikely to be sufficient. Proposed Draft Annual Plan budget changes includes: (1) Brought forward 4x $1M of existing budget to years ending 21/22/23/24. (2) Added $20M Melling cost share. (3) Added $2.5M for the Pedestrian Bridge. Council may need to consider buying prioritisation of Melling. HCC may need to consider distorting market for good mixed use development along promenade.

Further budget information

Table 1: Capital budgets

$M	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030	Total
Per published Annual Plan 2019/20	3.8	6.5	3.0	3.0	3.0	32.4	51.7
Proposed DAP 2020/21	4.8	7.5	11.0	13.5	9.0	28.4	74.2
Variance	(1.0)	(1.0)	(8.0)	(10.5)	(6.0)	4.0	22.5

Appendix 2: Naenae Pool

1.	Project/ initiative	Naenae Pool + Fitness Redevelopment
2.	LTP Activity	Leisure and Wellbeing Integrated Community Services
3.	Business lead	Stephen Keatley
4.	Brief project description (problem/opportunity statement)	Naenae Pool closed in April 2019 due to earthquake concerns. This had a significant impact on both the local community and pool users from across the region. For the Naenae community, the pool was a focal point and ‘the’ place to gather, particularly for tamariki and rangatahi. It also provided local access to many programmes and services, including learn to swim, water safety, recreational swimming, school holiday programmes and gym services. As well as being a valued community asset, Naenae Pool was also a significant regional aquatic facility. Two thirds of pool users came from across the wider Wellington region to take part in aquatic sports and activities. The Pool also generated a lot of foot traffic in the town centre, so made a significant contribution to the local economy. This project is to return a pool that responds to the needs and ambitions of pool users, the wider city and the Naenae Community as detailed in the Voice of the Community Report. Refer separate report in this agenda “report back on the voice of the community on options for Naenae Pool and the vision for the town centre”.
5.	Strategic alignment and desired outcomes sought	Leisure and Wellbeing Strategy – the project assists meeting the outcomes for the people of Naenae and the wider city in their physical, educational and mental wellbeing. Long Term Integrated Facilities Plan – Meets the criteria for prioritisation within the plan.
6.	Community engagement	Naenae Voice of the Community Project, Pool user survey (2800 respondents), Stakeholder workshops, Community feedback on voice of the community report
7.	Overview of project costs and funding source (refer tables below)	High level estimate of a new pool is $52M excluding inflation. Refer annual plan/LTO assumptions below.
8.	Risks and mitigation plans	We are currently accommodating some of the users of Naenae Pool at other facilities through extended hours and services however we estimate a reduction of approximately 200,000 visitors per year across our Hutt City aquatics network due to the closure. Some of this is due to less available space for aquatic clubs and travel distance for locals. Currently a temporary pop up pool at Naenae Primary School has opened for the summer months which will assist with meeting some of the needs of our local Naenae tamariki aged under 11 years. A lease has also been signed for a temporary pop up Gym and community space in the Naenae CBD pending the building being strengthened by the owner.
9.	Annual Plan/LTP key assumptions	Currently only $9M is in the LTP this financial year, which is insufficient for a refurbishment project to proceed. The high level concept plan developed for the pool was assessed by a quantity surveyor and estimated at $52M in June 2019. As detailed design has not been completed as yet, there is uncertainty about the future operating model of the pool. It has been assumed that the previous Naenae pool operating model will continue with the new facility and that the net cost to Council will be similar. As part of the detailed design process, the future operating model will be reviewed and reported back to Council.
10.	Other relevant information	Beca Seismic Report – December 2018 and April 2019 Officers Report to Council July 2019 with options and high level cost estimates

Further budget information

Table 1: Operational budgets

$k	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030	Total
Per published Annual Plan 2019/20	1.1	1.1	1.1	1.1	1.1	5.5	10.9
Proposed DAP 2020/21*	1.5	1.2	1.9	3.2	3.3	16.2	27.2
Variance	(0.4)	(0.1)	(0.8)	(2.1)	(2.1)	(10.7)	(16.3)

*this is inclusive of estimated interest costs of debt as well as depreciation of the new asset.

Table 2: Capital budgets

$M	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030	Total
Per published Annual Plan 2019/20	9.0						9.0
Proposed DAP 2020/21	-	25.0	25.0	1.5	-		51.5
Variance	9.0	(25.0)	(25.0)	(1.5)	0	0	(42.5)

Appendix 3: Refuse collection and recycling

1.	Project/ initiative	Kerbside recycling and refuse changes
2.	LTP Activity	Solid Waste
3.	Business lead	Business Lead: Jörn Scherzer (Manager Sustainability & Resilience)
4.	Brief project description (problem/opportunity statement)	In June 2018, in line with the relevant actions in our Wellington Region Waste Management and Minimisation Plan 2017-23, officers commenced a strategic review of our kerbside refuse and recycling collection services. The review identified various problems, including, but not limited to: · Crates used for collecting recycling lead to significant litter production during frequent windy days. · Insufficient capacity of the recycling crates, limiting the amount of material that residents can recycle. · Significant and frequent contamination and illegal dumping issues at five public recycling stations, which are open 24/7 and unstaffed. · Rubbish bag collection services are significantly higher risk from a worker health and safety perspective than bin collection services A business case was developed, which recommended changing to a two-stream recycling system using bins, and discontinuing with the rubbish bag collection service and instead introducing a rates-funded bin
5.	Strategic alignment and desired outcomes sought	The key outcomes sought are as follows: · To provide services that are cost effective · To provide services that are safe · To provide services that reduce greenhouse gas emissions · To provide services that customers want and can use appropriately · To reduce waste and protect the environment from the harmful effects of waste This is so that our kerbside services align with Council’s overall community outcomes sought.
6.	Community engagement	The recommended change in services is significant, and consultation with the community is required.
7.	Overview of project costs and funding source (refer tables below)	Annual costs for a two-stream recycling collection service, funded via a targeted residential rate for recycling services, amounts to approximately $2.2M per year Annual costs for a new (weekly) rates-funded refuse bin collection service amounts to approximately $4.5M per year. Council may choose to purchase collection bins rather than operators supplying them. This would mean some of the future operational costs could be shifted to capital budgets (largely one-off in 2020/21). New contracts are assumed to be in place from 1 November 2020.
8.	Risks and mitigation plans	The Council paper on the waste review outcomes and next steps for 10 December 2019 outlines a variety of risks and mitigation opportunities. A key risk is that Council’s current contract for recycling and rubbish bag collection services expire on 31 October 2020. The timeline for community consultation, procurement and roll-out of the new services on 1 November is very tight.
9.	Annual Plan/LTP key assumptions
10.	Other relevant information	Refer to the Business Case Report on Kerbside Collections from August 2019, and the Council paper on the waste review outcomes and next steps for 10 December 2019

Further budget information

Table 1: Operational budgets

$M	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030	Total
Per published Annual Plan 2019/20	1.3	1.3	1.3	1.3	1.3	6.5	13
Proposed DAP 2020/21	4.5	6.7	6.7	6.7	6.7	33.5	64.8
Variance	(3.2)	(5.4)	(5.4)	(5.4)	(5.4)	(27.0)	(51.8)

Appendix 4: Cross Valley Transport Connections Project

1.	Project/initiative	Cross Valley Transport Connections Project
2.	LTP Activity	Cross Valley Connection – Investigation/Design Road Network Improvements - Construction
3.	Business lead	John Gloag,
4.	Brief project description (problem/opportunity statement)	For some time now, The Esplanade has struggled to balance the competing demands placed on it as major arterial road, conveying around 30,000 vehicles each week day, while also having a dominant bearing on the character and accessibility of Petone’s foreshore as a place. It is becoming increasingly congested and is also prone to natural hazards such as earthquake, tsunami, liquefaction and sea level rise. The Business Case Approach, required for NZTA subsidy support, for this project commenced in 2016 with the completion of the Point of Entry phase and a Strategic Business Case, which was endorsed by NZTA. We are currently formulating the Programme Business Case, the programmes of work that could deliver the investment objectives, and this is jointly funded by HCC and NZTA. This piece of work is expected to be complete by year end or very early in 2020. Key messages from the Business Case include; Problem Statements; - Lack of resilience (60%) Southern Lower Hutt’s transport network lacks resilience to major natural events, future sea level rise, and regular network interruptions, which will cause economic and/or social disruption for Lower Hutt and the Wellington region. - Accessibility limitations (40%) The existing transport system in southern Lower Hutt: • limits modal choice • constrains access to social and economic opportunities, and creates safety issues for active mode users Benefit Statements; - Improved network resilience (50%) - Improved transport choices (25%) - Improved accessibility and safety (15%) - Supports development of urban growth areas in southern Lower Hutt (10%) Investment Objectives; - To improve the resilience of southern Lower Hutt by enhancing the availability of the transport system by 20XX - To improve travel mode choice and safety accessibility to and from key destination and key urban growth areas in southern Lower Hutt by 20XX Dates in the Investment Objectives still to be determined.
5.	Strategic alignment and desired outcomes sought	Strategic alignment with local, regional and national outcomes and objectives has been comprehensively assessed during the Business Case process and been confirmed. Plans, policies and strategies considered include; - HCC LTP 2018 – 28 - HCC Infrastructure Strategy - HCC UGS 2012 – 2032 - Petone Spatial Plan 2040 - HCC Central City Transformation Plan - Lower Hutt Growth Story - GPS 2018 – 21 - NZTA Long Term Vision - Wellington RLTP 2015 – 21
6.	Community engagement	Key stakeholders have been involved in the Business Case development but it is too early in the process to engage with the community. Once more certainty is gained over the preferred programme/s of work, the community will be consulted.
7.	Overview of project costs and funding source (refer tables below)	It is intended that this project is funded by HCC with subsidy from NZTA at the normal Funding Assistance Rate (FAR) of 51%. Budgets for the Investigation/Design and Construction have been set in the HCC LTP as reflected in the tables that follow. It should be noted that during the development of the Programme Business Case a revised estimate of cost for the programme of works was made and it is now in the range $90M - $140M. Reasons for this increase include; · Cost escalation since the original estimate was made · An unfavourable contractor market · A more defined programme of work · Accommodating multi modal considerations · Increased seismic standards The Programme Business case is likely to propose a three staged implementation with some quick wins around Public Transport and Active Modes in Stage 1 from 2021 -2024, improvements around the Gracefield/Wainuiomata Hill Road Interchange in Stage 2 from 2025 – 2027 and the bulk of the project in Stage 3 to align with other significant projects in the region that impact this projects. However, this proposal still needs to be accepted by the funding agencies – HCC and NZTA. Refer Annual Plan/LTP key assumptions below.
8.	Risks and mitigation plans	These have been and will continue to be developed as part of the Business Case process. Risks to this project include; · NZTA funding – successfully navigating the business case process and funding availability when required · HCC funding – increased cost and priority against other projects · Community and stakeholder support for the preferred programme of works. There will be many competing priorities within this project which are likely to get varying levels of support from stakeholders and the community.
9.	Annual Plan/LTP key assumptions	It has been assumed the project will successfully navigate the Business Case process and receive NZTA funding subsidy. It is proposed that this project is revised in the DAP to a more likely timing when NZTA funding would be more probable, and that the budget is revised to reflect a more up to date costing of an extra $55M partially offset by assumed NZTA funding. The revised timing reflects our best estimate for each of the three stages proposed for the project implementation.
10.	Other relevant information	Comprehensive detail on this project is available from the Business Case documents produced to date, including the Point of Entry document, the Strategic Business Case Report and the partially complete Draft Programme Business Case Report.

Further budget information

Table 1: Operational budgets (Capital Subsidy Revenue)

$M	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030	Total
Per published Annual Plan 2019/20						Revenue 33.3	Revenue 33.3
Proposed DAP 2020/21	0.3 Carried over from 2019/20					33.3	33.6
Variance	(0.3)					-	(0.3)

Table 2: Capital budgets

$M	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030	Total
Per published Annual Plan 2019/20	0					65.2	65.2
Proposed DAP 2020/21	0.6 Carried over from 2019/20					65.2	65.8
Variance	(0.6)					-	(0.6)

Note, if a staged approach is endorsed by HCC and NZTA then Stage 3 of the project implementation, where the majority of the cost is involved, will likely be pushed beyond 2030.

Appendix 5: Active Transport

1.	Project/ initiative	Cycleway Projects
2.	LTP Activity	Cycleway / Shared Path – Beltway Cycleway / Shared Path – Continued Cycleway / Shared Path – Eastern Bays Cycleway / Shared Path – Wainuiomata
3.	Business lead	John Gloag
4.	Brief project description (problem/opportunity statement)	Over the 2015 – 18 funding round Council programmed the construction of 3 cycleway/shared path projects, these projects were: · The Eastern Bays Shared Path · The Beltway · Wainuiomata Hill Shared Path All 3 of these projects had been on Council’s LTP albeit either in the out years or funded incrementally over an extended timeframe. The projects were brought forward or accelerated to capitalise on the $100M Urban Cycleway Funding which was available during the 2015 – 18 period. The Hutt City Cycling Improvements Strategic case for investment, developed as part of the Beltway project, identified that currently the transport network within Hutt City is unattractive and unsafe for people who cycle. This resulted in the following problem / opportunity statements being identified: 1) The transportation network does not meet cycle and scooter needs or expectations, leading to an increase in urban congestion. 2) A low and declining number of children are cycling to school contributing to increased vehicular congestion around schools. 3) Cycling and micromobility infrastructure is unsafe, resulting in an unacceptable number of crashes involving cyclists and scooter users. The development of the three core routes (The Beltway, Wainuiomata Shared Path and the Eastern Bays Shared Path) has gone some way to address the identified problem statements. However, these routes alone will not deliver the benefits sought unless they are complemented by connectivity and activation plans which are being developed.
5.	Strategic alignment and desired outcomes sought	The development of the Hutt City cycle and micromobility network aligns well with both central and local government policies. A key theme of the Government Policy Statement (GPS) across all four focus areas relates to the promotion of cycling as a safe, convenient and sustainable mode of transport. In addition, the development of the cycle and micromobility network aligns with the Transport Agency’s and Hutt City Council’s intent for the sustainable operation of the transport network whilst also ensuring that Hutt City is a great place to live, work and play. The cycle and micromobility routes developed will help address the intentions behind the Hutt City walking and Cycling Strategy (2014-2019) and will specifically address most of the key challenges identified in the strategy such as developing safe routes to school and completing a connected and coherent walking and cycling network. The outcomes identified through the development of the Strategic Case were: Benefit 1. Improved safety for network users. Benefit 2. Increased participation in sustainable transport. Benefit 3. Reduced traffic volumes.
6.	Community engagement	Via the various projects the community has been engaged significantly across a number of workshops, drop ins, letter drops, individual community sessions and this will be continue to be the case going forward
7.	Overview of project costs and funding source (refer tables below)	It is intended that the individual projects are funded by HCC with subsidy from NZTA at the normal Funding Assistance Rate (FAR) of 51%, this includes investigation, design and construction. Budgets for the Investigation/Design and Construction for the individual projects have been set in the HCC LTP as reflected in the tables below. The original budget for the 3 projects agreed by Council back in November 2017 was $27.9M. Wainuiomata Hill has been completed at a cost of $12.3M and the construction forecast for the Beltway Northern and Central Sections and the Eastern Bays is $5.4M and $25M respectively. It should be noted that during the development of these individual projects a revised estimate of cost for the completion of both the Beltway and Eastern Bays Shared Path was undertaken and a forecast of $15M - $20M above approved budgets was estimated. Reasons for this increase include; · Cost escalation since the original estimate was made · An unfavourable contractor market · Work in a coastal marine environment · Unknown resource consent conditions · Challenging and constrained environment · Unresolved project risks · Specialist works.
8.	Risks and mitigation plans	These have been and will continue to be developed as part of the individual projects.
9.	Annual Plan/LTP key assumptions	It has been assumed the individual projects will successfully navigate the Business Case process and receive NZTA funding subsidy for investigation, design and construction.
10.	Other relevant information	Comprehensive detail on the individual projects is available from the Business Case documents produced to date.

Further budget information

Table 1: Operational budgets (Capital Subsidy Revenue)

$M	2020/21	2021/22	2022/23	2023/24	2024/25	2025-2030	Total
Cycleway Shared Path - Eastern Bays
Per published Annual Plan 2019/20	1.0	0.9	1.3	1.2			4.4
Proposed DAP 2020/21	2.2 (carry over from 19/20) plus 1.0	0.9	1.3	1.2			2.2 Plus 4.4 =6.6
Variance	-	-	-	-	-	-	-

No.	Title	Page
1 ⇩	Appendix 1 Map of 38 Manor Park Road Subdivision	66
2 ⇩	Appendix 2 Reserved Street Names List PDF 2019	67
3 ⇩	Appendix 3 Extract of Permitted Road Types	69
4 ⇩	Appendix 4 Martha Brewin Moody nee Turnell Background Story	70

Author:	Charles Agate	Traffic Engineer – Network Operations
Reviewed By:	Marian Radu	Senior Traffic Engineer - Transport
Approved By:	John Gloag	Divisional Manager – Transport

No.	Title	Page
1 ⇩	Appendix 1 Traffic Impact Report - Six60 2020	106
2 ⇩	Appendix 2 Road Closure Aerial - Six60 Concert 2020	109

Author:	Charles Agate	Traffic Engineer – Network Operations
Reviewed By:	Marian Radu	Senior Traffic Engineer - Transport
Approved By:	John Gloag	Divisional Manager – Transport

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

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Mayor C Barry (Chair) Deputy Mayor T Lewis

Cr D Bassett	Cr J Briggs
Cr K Brown	Cr B Dyer
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Cr S Rasheed	Cr N Shaw
Cr L Sutton

DISTRICT LICENSING COMMITTEE
Membership:	7 Members comprising the Chair, Deputy Chair and list members.
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