HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

Policy, Finance and Strategy Committee

 

 

31 August 2020

 

 

 

Order Paper for the meeting to be held in the

Council Chambers, 2nd Floor, 30 Laings Road, Lower Hutt,

on:

 

 

 

 

Monday 7 September 2020 commencing at 2.00pm

 

 

 

Membership

 

 

Cr S Edwards (Chair)

Mayor C Barry

Cr D Bassett

Cr J Briggs

Cr K Brown (Deputy Chair)

Cr B Dyer

Cr D Hislop

Deputy Mayor T Lewis

Cr C Milne

Cr A Mitchell

Cr S Rasheed

Cr N Shaw

Cr L Sutton

 

 

 

 

 

For the dates and times of Council Meetings please visit www.huttcity.govt.nz

 

Have your say

You can speak under public comment to items on the agenda to the Mayor and Councillors at this meeting. Please let us know by noon the working day before the meeting. You can do this by emailing DemocraticServicesTeam@huttcity.govt.nz or calling the Democratic Services Team on 04 570 6666 | 0800 HUTT CITY


HuttCity_TeAwaKairangi_SCREEN_MEDRES

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 and granting shareholder approval of major transactions.

       Monitor progress against the CCO and CCTO Statements of Intent and make recommendations to Council in the exercising of Council powers, as the shareholder, in relation to Council Controlled Organisations/Council Controlled Trading Organisations under sections 65 to 72 of the Local Government Act.

       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.

 

    


                                                                       5                                                     7 July 2020

HUTT CITY COUNCIL

 

Policy, Finance and Strategy Committee

 

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

 Monday 7 September 2020 commencing at 2.00pm.

 

ORDER PAPER

 

Public Business

 

1.       APOLOGIES 

2.       PUBLIC COMMENT

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

3.       CONFLICT OF INTEREST DECLARATIONS

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have      

4.       Recommendations to Council -7 September 2020

i)     Letter of Expectation to Urban Plus Limited for its Statement of Intent 2019/20-2020/21 (20/971)

Report No. PFSC2020/5/188 by the Director Economy and Development 8

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed”

ii)    Proposed Appearance Industries Bylaw 2020 (20/841)

Report No. PFSC2020/5/174 by the Principal Policy Advisor                    37

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed”

 


 

5.       Council performance overview for the year ended 30 June 2020 (20/958)

Report No. PFSC2020/5/179 by the Senior Research and Evaluation Advisor 170

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed”

6.       2020 Standard and Poor's Credit Rating (20/862)

Report No. PFSC2020/5/176 by the Chief Financial Officer                           244

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed”

7.       Electoral Voting System (20/930)

Report No. PFSC2020/5/178 by the Electoral Officer                                      255

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed”

8.       Homelessness update 2019 - 2020 (20/852)

Report No. PFSC2020/5/177 by the Principal Policy Advisor                         271

Chair’s Recommendation:

“That the recommendation contained in the report be endorsed”

9.       Sale and Supply of Alcohol (Fees) Regulations 2013 - Regulation 19(1) - Reporting by Territorial Authorities (20/872)

Memorandum dated 10 Aug 2020 by the Team Leader Environmental Health 291

Chair’s Recommendation:

“That the recommendations contained in the memorandum be endorsed”

10.     Policy, Finance and Strategy Committee Work Programme 2020 (20/883)

Report No. PFSC2020/5/88 by the Committee Advisor                                  294

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed”

11.     Information Item

Economic Development Plan - Direction Next 6 months (20/887)

Report No. PFSC2020/5/89 by the Head of City Growth                                298

Chair’s Recommendation:

“That the recommendations contained in the report be endorsed”

12.     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.   

 

 

 

 

 

 

Toi Lealofi

COMMITTEE ADVISOR


                                                                                       8                                                 07 September 2020

Policy, Finance and Strategy Committee

25 August 2020

 

 

 

File: (20/971)

 

 

 

 

Report no: PFSC2020/5/188

 

Letter of Expectation to Urban Plus Limited for its Statement of Intent 2019/20-2020/21

 

Purpose of Report

1.    To approve the key priorities to be expressed in the letter of expectation to Urban Plus Limited (UPL) for reflection in its 2019/20 – 2020/21 Statement of Intent (SoI).

Recommendations

That the Committee recommends that Council:

(i)    notes and receives the information contained in the report;

(ii)   approves the inclusion of five listed priorities as a part of the Letter of Expectation (LoE) to Urban Plus Limited (UPL) for inclusion in its 2019/20 – 2020/21 Statement of Intent as follows;

(a)   provision for housing need (mandating UPL to provide for need across the housing continuum);

(b)   build more housing partnerships (UPL to develop relationships with key social organisations such as CHPs, mana whenua, non-governmental organisations as well as crown agencies with responsibilities for delivering housing);

(c)   building pathways to permanency (UPL to explore opportunities to deliver initiatives such as shared equity, rent to buy, reduced deposit schemes, and other means of assisting households into home ownership);

(d)   application of agreed environmental standards (UPL to explore how implementing Homestar 6 standards will contribute towards Council achieving its aims of lowering carbon emissions and whether additional measures are required); and

(e)   achieving wider outcomes (UPL to work with trade training institutes to support capacity uplift in the building and construction sector and partner with the construction industry to offer employment and further career development opportunities); and

 

(iii)  notes that section 10 contained in the report provides further detail on the five priorities to be included as a part of the LoE to UPL.

 

Background

2.    UPL is a Council Controlled Organisation (CCO) and its activities include property development and rental property management, provision of strategic property advice to Council, and the purchase of surplus property for development. UPL currently holds approximately 190 rental units. 171 units are let to people who are 65+ and on low income. Currently the priority focus areas for UPL are the provision of social housing for senior citizens (65+), and developing housing for the open market.

3.    More recently UPL has agreed a partnership with mana whenua to deliver affordable homes, is exploring development opportunities to work in partnership with community housing providers (CHPs), and has started applying the Homestar 6 construction standards to all its housing developments.

4.    Alongside UPL’s work to address housing need, over several years Council has led a number of substantive pieces of work to research and contribute to responding to homelessness, exploring the level of housing need across the city and how these needs can be addressed, and begun the task of reforming the planning framework to enable the delivery of increased housing supply and diversify the type of supply.

Housing Context

5.    Lower Hutt is experiencing difficulty across the housing continuum. Increased demand paired with limited supply has led to increasing house prices and has continued reducing access to home ownership. The private rented sector in the city is particularly competitive and has seen considerable rent increases during the last few years.

6.    There is a growing need for social housing in the city with the number of households on the housing register increasing significantly during the period from 2016. There are currently over 580 households on the register in Hutt City and over 80% of these households are in severe housing need.

7.    As house prices have increased across Hutt City in the period from 2015, areas which have historically been more affordable have become considerably more expensive for households. This trend can be clearly seen in areas such as Wainuiomata and the northern and eastern wards where the cost of housing has increased substantially.

8.    A housing needs analysis commissioned to help inform Council’s response to the city’s housing issues starkly illustrates the pressures faced by households in terms of affordability and access to housing. The report recommends seven (7) responses to addressing housing need:

 

·   Targeted incentives to address housing need;

·   Ensure current stock is fit for purpose;

·   Taking a regional housing market approach in co-ordination and collaboration with other Councils;

·   Use of local knowledge and resources to address local priorities (enabling and leveraging social infrastructure to support parents, families and elderly);

·   Ensuring alignment of central government agencies with Hutt City’s vision (aligning and partnering with Crown agencies to leverage the supply of housing);

·   Directly respond to increased need for rental housing (market rental and social rental); and

·    Preventing and responding to homelessness (implementation of the actions set out in councils’ homelessness strategy).

9.    More broadly, Council’s work on housing is strongly influenced by Government policy and requirements and the regional context. Of particular note in this respect is the recent National Policy Statement on Urban Development which requires local government to plan and provide greater capacity for housing supply. 

Workshop with Councillors

10.  On 24 August, Councillors and officers undertook a workshop to explore new priorities to be included as a part of the UPL SoI. Much of the discussion reflected upon the current issues and concerns within the housing system – from homelessness and housing hardship and the provision of transitional housing, providing social or local authority housing for different cohorts, developing initiatives for assisted ownership and affordable rentals, through to home ownership. The clear sentiment from members was that more needed to be done to provide for warm, safe and dry homes for all people in Hutt City.

Discussion

11.  This section explores the five proposed priorities to be included as a part of the LoE to UPL.

       Provide for wider housing need

This priority focuses on mandating UPL to provide for need across the housing continuum. This will require UPL to develop a framework which enables the development of transitional housing, social housing for a range of households in addition to those who are 65+, market rental, affordable housing (sale at cost plus contingency), and commercially based developments (with a typical commercial profit margin). The primary focus of this priority is to bring more homes into the supply chain and meet the needs across as many groups as possible.

Build More Housing Partnerships

       Partnership working is as a key enabler across the new priorities. In order to deliver homes across the housing continuum UPL will need to develop relationships with key social organisations such as CHPs, mana whenua, non-governmental organisations, as well as crown agencies with responsibilities for delivering housing. Partnerships with key actors within the housing and social sectors will enable UPL to achieve outcomes that it cannot achieve on its own. For example, delivering social housing to a range of households may require partnerships in relation to support provision. 

       Building Pathways to Permanency

       This priority is about working with families, whānau, and individuals, and assisting them to transition into housing permanency. This could include ‘rent for life’ accommodation where UPL provides for affordable rental accommodation, which remains affordable, and that people can make their home permanently (with any associated social support required), all the way through to home ownership. UPL will be required to explore opportunities to deliver initiatives such as shared equity, rent to buy, reduced deposit schemes, and other means of assisting households into home ownership. It is anticipated that such initiatives would be in partnership with Crown agencies, and partners such as CHPs and mana whenua. As noted above, the pathways to permanency will require consideration of affordable rental opportunities as well as the development and sale of homes (at cost plus contingency).

       Application of Agreed Environmental Standards

       UPL has recently adopted the application of the Homestar 6 standard for all its housing developments, highlighting a progression to developing homes that are of warm, safe, dry, and respectful of our environment. Council has shown an appetite to be a leader in delivering solutions across the business that are environmentally sustainable, and to be stewards of our environment. For this reason, UPL will explore how implementing Homestar 6 standards will contribute towards Council achieving its aims of lowering carbon emissions and whether additional measures are required.  This is about UPL and Council showing environmental leadership by challenging standards and continuing to set higher standards for how we deliver sustainable, efficient, warm, and safe and dry homes.

       Achieving Wider Outcomes

The achievement of these new priorities will require the development of a considerable number of new homes throughout Hutt City. This requires a skilled workforce that is ready and able to deliver. Delivering more supply is also an opportunity for UPL to create and support local employment and training opportunities. This means that UPL will need to work with trade training institutes to support capacity uplift in the building and construction sector and partner with the construction industry to offer employment and further career development opportunities. Other opportunities could include supporting and enabling trade training institutes to increase off-site construction, which again has the potential to increase supply and affordability.

Climate Change Impact and Considerations

12.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.  

Legal Considerations

13.  There are no legal considerations at this time.

Financial Considerations

14.  There are no financial considerations at this time.

Appendices

No.

Title

Page

1

Appenndix 1: UPL-GROUP-Statement-of-Intent-2019-2022-FINAL-COPY-board-approved

13

  

Author: Kara Puketapu-Dentice

Director Economy and Development

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appenndix 1: UPL-GROUP-Statement-of-Intent-2019-2022-FINAL-COPY-board-approved

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


                                                                                      37                                                07 September 2020

Policy, Finance and Strategy Committee

04 August 2020

 

 

 

File: (20/841)

 

 

 

 

Report no: PFSC2020/5/174

 

Proposed Appearance Industries Bylaw 2020

 

Purpose of Report

1.    To report back to Council the deliberations of the Hearing Subcommittee hearing submissions to the proposed Appearance Industries Bylaw 2020; and

2.    Recommend to Council the adoption of the Appearance Industries Bylaw 2020.

Recommendations

That the Committee recommends that Council:

(i)    receives this report;

(ii)   notes that 10 submissions were received with respect to the proposed Appearance Industries Bylaw;

(iii)  notes the Hearing Subcommittee has recommended to Council that the proposed Appearance Industries Bylaw be approved subject to some amendments as noted in Appendix 2 and 3 attached to the report;

(iv) determines that, in accordance with section 155 of the Local Government Act 2002, the proposed bylaw:

a)    is the most appropriate form of bylaw;

b)    does not give rise to any implications under the NZ Bill of Rights Act 1990; and        

(v)  agrees to adopt the Appearance Industries Bylaw, attached as Appendix 2 and 4 to the report, effective from 1 October 2020.                 

For the reasons: In accordance with the special consultation procedure the Hearings Subcommittee will now report back to Council with its recommendations.

 

Background

3.    On 17 September 2019, Council agreed to undertake a Special Consultative Procedure with respect to the Proposed Appearance Industries Bylaw (the Proposed Bylaw).  The submissions period ran from 8 October to 11 November 2019.  

4.    There were nine written submissions received and one late submission received on 22 February 2020.  The Hearing was scheduled for 26 March 2020 but was postponed due to COVID-19. 

5.    When the hearing was rescheduled for 3 August, all submitters were asked to let Council know if they wanted to update their submission and if they wanted to speak to their submission.  Only one submitter took the opportunity to update their submission. No one wanted to speak to their submission.

Discussion

6.      It is important to remember when considering this matter that the purpose and scope of the Proposed Bylaw is to promote and protect public health. The Proposed Bylaw does this by requiring practitioners to maintain minimum health and hygiene standards. 

7.      There were several issues raised from written submissions received.  Below are explanations of these issues and an account of the subcommittee’s deliberations.  The recommended changes are:

a.      Industry education – this is considered to be a necessary precursor and accompaniment to this Bylaw. Masterton District Council, which has a similar bylaw, took this approach and found it to be successful in raising awareness of standards in the industry;

b.      A 12 month transition period - following Council adoption, there should be a 12 month transition period before the Bylaw comes into effect (see Appendix 2, Clause 2).  This period will provide the time needed for officers to work with members of the Appearance Industry to increase their capability to:

i.   adapt their services to respond to the risks posed by inadequate cleaning/sterilisation practices; and

ii.  comply with the health and hygiene practices necessary to meet the standards required by the Proposed Bylaw. This training will be funded by existing budgets in Environmental Health.

c.      Code of Practice - the main detail regarding specific standards to be complied with should be included in a Code of Practice attached to the Bylaw.  This approach provides the flexibility needed to respond in a timely way to new and emerging industry procedures to ensure the Bylaw remains relevant over time. Having to amend the Bylaw will not provide this flexibility (see Clause 7B in Appendix 2 attachment);

 

d.      Excluding extreme body modification procedures from the Bylaw.  They are viewed as being akin to surgical procedures and Council staff are not appropriately qualified to assess the standards of practice related to these procedures; and

e.      Exempting traditional and contemporary Māori tattoos performed on a marae from this Bylaw. Refer to Clause 3.3 of the Statement of Proposal attached as Appendix 1.  There is no evidence that showed there is, or has been an issue with public health and safety with respect to Tā Moko, but there was with respect to Pacific tattooing. 

At the hearing, Dr Nesdale (Regional Public Health) advised she had been involved in investigations concerning the high level of injury and infections arising from those practices. She could accept that marae based practices were exempt from the proposed bylaw. However, she did request and the Hearing Subcommittee agreed that marae be included in the proposed 12 month education process, to enable them to understand and appreciate the value of training around infection prevention and control.

 

8.       The Hearing Subcommittee asked officers to investigate further whether there may be any legal risk attached to having the main detail regarding specific standards to be complied included in a Code of Practice rather than the bylaw itself.

9.       Auckland City has used the “Code of Practice approach” since 2013 with its bylaw dealing with these issues and officers have used their approach as a template to inform our work  https://www.aucklandcouncil.govt.nz/plans-projects-policies-reports-bylaws/bylaws/Pages/health-and-hygiene-bylaw.aspx

10.     Officers are of the view that using a Code of Practice approach enables council to respond in a timely way to developments in the industry vis a vis procedures used and provides clarity for the appearance industry. 

11.     Please note Appendix 1 is the Statement of Proposal that was approved by Council as noted in paragraph 3 above. Appendix 2 and 3 attached shows the changes recommended by the Hearings Subcommittee as tracked changes.  Appendix 4 shows the resulting proposed Code of Practice with all track changes accepted and noted as a ‘cleaned up’ version. 

Options

12.  The option in light of the outcome of the special consultative procedure is to accept or reject the recommendation of the Hearing Subcommittee.

Climate Change Impact and Considerations

13.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.

14.  This report is about the proposal to establish an Appearance Industry Bylaw in Lower Hutt.  There are no greenhouse gas emission and/or climate change impacts associated with this matter.    

Consultation

15.  This report is the consequence of the special consultation process required to adopt the Appearance Industries Bylaw 2020.

16.  Once the new Appearance Industries Bylaw is adopted, Council must give public notice of its decision, including the date upon which the decision will become effective.  

Legal Considerations

17.  This report is the consequence of the special consultation process required to adopt the Appearance Industry Bylaw 2020. 

Financial Considerations

18.  A licensing fee will be payable for yearly inspections undertaken in accordance with the provisions of Appearance Industries Bylaw.  This fee will be reviewed annually by Council. 

Appendices

No.

Title

Page

1

Appendix 1: Statement of Proposal Appearance Industries Bylaw

41

2

Appendix 2: Proposed Appearance Industry Bylaw 2020

49

3

Appendix 3: Proposed Hutt City Council Apearance Industries Bylaw - CODE OF PRACTICE- with tracked changes

65

4

Appendix 4: Proposed Hutt City Council Appearance Industries Bylaw - Code of Practice - cleaned up version

128

    

Author: Graham Sewell

Principal Policy Advisor

 

 

Reviewed By: Dean Bentley

Team Leader Environmental Health

 

 

Reviewed By: Bradley Cato

Chief Legal Officer

 

 

Reviewed By: Wendy Moore

Head of Strategy and Planning

 

 

Approved By: Helen Oram

Director Environmental and Sustainability

 


Attachment 1

Appendix 1: Statement of Proposal Appearance Industries Bylaw

 


 


 


 


 


 


 


 


Attachment 2

Appendix 2: Proposed Appearance Industry Bylaw 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Attachment 3

Appendix 3: Proposed Hutt City Council Apearance Industries Bylaw - CODE OF PRACTICE- with tracked changes

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Attachment 4

Appendix 4: Proposed Hutt City Council Appearance Industries Bylaw - Code of Practice - cleaned up version

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

  


                                                                                     180                                              07 September 2020

Policy, Finance and Strategy Committee

27 August 2020

 

 

 

File: (20/958)

 

 

 

 

Report no: PFSC2020/5/179

 

Council performance overview for the year ended 30 June 2020

 

Purpose of Report

1.    The report provides an overview of the Hutt City Council performance results for the period ended 30 June 2020.

Recommendations

That the Committee:

(i)    receives the report;

(ii)   notes the Covid-19 impact during the period and the Council’s proactive response as summarised in paragraph 5 of the report;

(iii)  notes the highlights and achievements as detailed in paragraph 6 of the report;

(iv) notes the performance measure results as summarised in paragraph 8 of the report and detailed in Appendix 1 attached to the report; and

(v)   notes the financial performance results as summarised in the report and detailed in Appendices 2, 3 and 4 attached to the report.

 

Background

2.    The performance results for 2019/20 presented in this report are for Hutt City Council – the parent entity and not the consolidated group. The external audit by Audit NZ is currently underway and the results presented here are interim unaudited results.

3.    The Annual Reports for the Council Controlled Organisations (CCOs) will be presented to the Policy, Finance and Strategy Committee on 21 October 2020.

4.    The Annual Report for the parent entity and consolidated group is currently being prepared and the draft unaudited report will be presented to the Policy, Finance and Strategy Committee on 21 October 2020.  The final Group Annual Report will be presented to Council on 30 October 2020 for approval and adoption. Following this Audit NZ will release their signed audit opinion. Further details in relation to the external audit are being reported to the Audit and Risk Subcommittee on 17 September 2020.

Covid-19 impact and response

5.    During the fourth quarter of 2019/20 New Zealand moved through the Covid Alert levels emerging on 8 June to Alert level 1 where we stayed for the remainder of the quarter.  Accordingly our response to Covid dominated the quarter and impacted our performance on a number of fronts. Capital investment and asset maintenance programmes were unable to progress as planned and the enforced closure of facilities impacted service delivery performance in a number of areas. Whilst this report provides an overview of performance, the Group Annual Report will provide further details.

Key points of the Council’s response to Covid during this period:

Business support - We worked in partnership with the Hutt Valley Chamber of Commerce and Upper Hutt City Council to provide support to local businesses.  An online resource hub was established along with a Facebook group;

20 Livestreams for businesses were held with local experts providing advice on relevant issues. There were over 6000 views;

We provided personal one on one support to hundreds of businesses enabling them to access ‘essential service permissions’ wages subsidies, the tax loss carry back scheme, capability vouchers, importing information and all other government support services;

Council’s ‘Team Manaakitanga’ was part of the Emergency Operations Centre response during Covid-19, with 32 staff working in a range of roles from welfare through to logistics;

We held Council and other meetings online;

Council vehicles involved in the response travelled 13,900 kms during the lockdown to do what was necessary for the response;

Council’s teams managed all essential works throughout the lockdown, including street and amenity cleaning, refuse and recycling collection and essential roading and footpath repairs;

Libraries - Partnered with Skinny Jump as part of the Digital Inclusion Alliance Aotearoa to help get modems out to homes, and to provide phone-based support for community members to get up and running with the internet. We helped 90 plus homes in Lower Hutt and throughout New Zealand;

Libraries saw a 90% increase in our ePukapuka (eBook) usage in April 2020, compared with April 2019;

$34,242 was allocated to 41 groups from the Community Resilience Fund comprising of 21 to initiatives in Lower Hutt who are delivering services that support resilience, and 20 sports and recreational groups that were provided with lease relief where facilities are on reserve land, as well as a one-off payment of $500 to eligible groups to support them;

$28,500 was distributed in food grants to 15 groups; and

Council waived licence fees for outdoor seating and tables for the next year as a simple low-cost way to help provide some relief to our local hospitality businesses after Covid-19.

Quarterly highlights and achievements

6.    There was a wide range of highlights and achievements over the quarter. The information that follows is a selection of key highlights over the quarter.

Council reset its priorities and direction which led to Council undertaking two weeks of engagement with the community in May 2020 on a one-year emergency budget for 2020/21 and a rates rise of 3.8%, more than halving the previously agreed rates increase;

The 2020/21 Annual Plan titled “Getting us through Kia tae ki tua and Emergency Budget for 2020/21” was approved in June and focused on getting back to basics, tightening our belt, and getting us through Covid-19;

Council’s application for shovel-ready projects progressed. Of the 1,924 project submissions from across the country, a number of Council’s progressed to the next stage where 802 projects were to be considered by Ministers;

Housing shortage - In terms of the Housing Register (Public housing applicants prioritised by need and who have been assessed as being eligible) for the quarter 584 households were register up from 553 in the previous quarter with 517 (88.5%) in category A. Most of the need continues to be for 1 and 2 bedroom properties. Also released, was the Housing and Urban Development (HUD) quarterly report. Recipients in Lower Hutt of the ‘Emergency Housing Special Needs Grant’ were down to 919 continuing the decreases since late 2019. Council’s response to this was to signal to Urban Plus Limited a need to reset its Statement of Intent (SOI). Work continues on this. In addition discussions progressed with a Maori housing provider and government housing agencies on a planned response in combination with Iwi to Lower Hutt’s housing shortage;

In the fourth quarter, 410 building consents were received.  Out of this 51 were for new dwellings.  The consents have a combined value of over $416M to the year ending 30 June 2020;

Work on the Wellington Regional Growth Framework progressed with a preliminary list of projects to be advanced agreed in principle. The project is being coordinated by Greater Wellington and a project office has been established with Kim Kelly appointed as the Programme Director;

Wellington Water took advantage of the low traffic during the quarter and lockdown period to accelerate repair work and reduce the service backlog in the region by 80%;

Wellington Water upgraded the storm water pipe at Kelso Grove, in April 2020, to increase the overall flow capacity of the pipe network;

A new on-road cycle touring route through Wainuiomata was given provisional approval after a successful application to NZTA;

The Programme Business Case for the Cross Valley Transport Connections project was substantially completed;

The Beltway cycleway project was progressed to construction with the “Sod Turning” event in July 2020;

Our review of kerbside recycling and waste services was progressed in preparation for community engagement from mid-July 2020;

Council’s Medium Density Design Guide received the 2020 Best Practice Award – District/Strategic Planning & Guidance from the New Zealand Planning Institute. The Wellington Region Housing and Business Capacity Assessment which Hutt City Council was a co-author of received the Geok Ling Phang Memorial Award from the Wellington Branch of the New Zealand Planning Institute;

A new system was developed to make it easy for Environmental Health customers to lodge food applications online;

Council now has an Energy and Carbon Reduction Plan for energy use in its facilities, i.e., gas and electricity used in libraries, pools and other facilities. The plan aims for a 30% reduction in carbon emissions by 2024;

New Directors - Kara Puketapu-Dentice (Economy and Development) and Anna Welanyk (Transformation and Resources) were welcomed with a Powhiri on 2 June. Later in the month Matiu Jennings Kaitātari Tumuaki Māori - Principal Māori Advisor joined Council with an equally impressive Powhiri.

Performance measure results

7.    The latest key performance indicator (KPI) results are included in this report together with brief commentary. Refer to Appendix 1 which includes the year end result together with quarterly results. Note these are interim unaudited results.

8.    Summary of key results and insights:

54% of the 112 KPI measures received to date have achieved target; 40% have not and 6% were not able to be measured. We are still awaiting data for 12 measures;

Some KPI results have been impacted by the COVID-19 lockdown for example library, pool and community hub visitor numbers; and

Some KPI’s did not reach target but have improved significantly compared to last year eg the registration and verification of new and existing food premises.

Some of the key highlights from the 2019-2020 year are shown in the table below

 

 

Measure and target

2019/20 interim result

2018/19 result

Residents’ perceptions of Hutt City in terms of their sense of safety ≥ 79% overall

86%

84%

Residents feel a sense of pride in the way the city looks and feels ≥ previous results

90%

87%

Number of new homes ≥ 328 new homes per annum (to achieve 6000 new homes by 2032)

493

224

Number of businesses in Lower Hutt - 11,000 by 2028

10,623

10,365

Building consents - 80% completed in 18 working days (Number issued)

94%

(1,398)

96%

(1,305)

New food premises registrations - 95% issued within six weeks of registration

41%

0%

 

Background - Annual Plan versus Revised Budget

9.    The 2019/20 Annual Plan (AP) was approved on 27 June 2019. The budgets included in the plan were based on latest financial information and estimates available at the time of the preparation of the plan.

10.  Through the review of the year-end financial results for 2018/19 there were a few budget issues identified which had flow on impacts for 2019/20. For example the estimated timing of project expenditure assumed in the AP changed for a range of reasons and the value of expenditure actually incurred in 2018/19 was different to that forecasted previously. From a project/budget manager perspective the budget in 2019/20 was requested to be updated to reflect the timing difference so as to improve clarity of the correct budget for the project/budget manager. There were also issues identified where the classification of projects between capital and operating expenditure which were required to be corrected.

11.  In September 2019 Council approved a ‘Revised Budget’ for 2019/20 to reflect the budget issues and updates required to improve the accuracy of budgets and the associated reporting of variances. It was noted that the focus of performance monitoring would be on financial results compared to the ‘Revised Budget’ as this would be the most meaningful from a performance perspective.[Refer to Finance and Performance Committee (F&P) report 4 September 2019 ‘Budget update 2019/20’].

12.  It was noted that it was possible that there could be further changes to the ‘Revised Budget’ during the year. For example, Council may make a decision during the year to progress a new priority initiative and reprioritise funding. This would be included as a ‘Revised Budget’ change which would provide officers with the authority to progress the initiative.  Subsequently the Council approved revised budget changes when the half year performance results were reported in March 2020, Refer Policy, Finance and Strategy (PFS) report 3 March 2020,”Council performance report for the half year ended 31 December 2019’ PFSC 2020/2/42).  These changes largely related to the timing of projects.

13.  As a result of COVID-19, Council met on 24 March 2020 (HCC2020/2/81) and resolved as follows:

“ recognises the COVID-19 emergency as an exceptional circumstance under section 6 of the Financial Delegation Policy and agrees that the Chief Executive may be required to authorise unbudgeted expenditure that may  result in an overspend of the Annual Plan budget for year”.

At this meeting the Council also resolved in favour of a $100k Community Resilience Fund and an additional $25k for Hutt Valley Chamber of Commerce.

14.  Table 1 that follows provides a summary view of the budget changes.

Table 1: Financial impact summary

$Million

Net deficit 2019/20

Capital investment  2019/20

Annual Plan 2019/20

13.3

Deficit

67.9

Net changes approved F&P 4 September 2019

(4.39) 

(3.21)

Vehicle fleet changes approved F&P 26 September 2019

(0.06)

0.88

Silverstream landfill – safety works approved by Council 10 December 2019

-

0.65

Naenae budget movement from capital to operating

0.20

(0.20)

Net changes approved PFS  3 March 2020

(1.13)

(9.20)

Council changes 23 March 2020

0.13

-

Other minor adjustment

0.07

0.1

Revised Budgets 2019/20

8.1

Deficit

56.9

 

Financial Performance Results

15.  This section provides an overview of the financial performance results for the year ended 30 June 2020. Further detailed analysis and commentary is available in Appendix 2 and 3.

16.  The financial performance results provide an indication on how Council performed against the revised budget, and the associated financial risks.

17.  The year-end net operating result was a deficit of $18.9M which was $2.3M or 14% unfavourable compared to the budget. This was largely due to higher operating expenditure of $2.3M incurred for the year together with reduced operating revenue of $0.5M. The impact of Covid-19 lockdown is the key reason for the variance to budget and had been anticipated in previous reporting to Council. 


 

18.  Table 2: Operating Results

$Millions

Actual

Revised Budget1

Variance 

$ and %

Annual Plan

Operating revenue

53.6

54.1

(0.5)     

(0.9%)

54.7

Operating expenditure

180.9

178.7

(2.3)       

(1.3%)

186.8

Net operating deficit before rates income

(127.3)

(124.6)

(2.7)       

(2.1%)

(132.1)

Rates income

108.4

108.1

0.4     

   0.3%

108.1

Net operating deficit

(18.9)

(16.5)

(2.3)        

(14%)

(24.0)

Capital contributions

5.8

8.4

(2.6)

 

10.7

Net deficit before adjustments

(13.1)

(8.1)

(5.0)

 

(13.3)

Other non-operating adjustments

60.5

-

60.5

 

-

Net surplus/(deficit)

47.4

(8.1)

55.5

 

(13.3)

 

19.  Operating revenue: The operating revenue was $53.6M for the year which was $0.5M (0.9%) unfavourable to budget. This is largely due to reduced revenue as a result of the impact of Covid-19 from the closure of community facilities such as pools, parks, libraries, and museums ($1.1M), and from parking and infringements $0.5M, together with reduced consents revenue $0.8M (partially due to Kainga Ora changes), partly offset by an unbudgeted dividend of $0.4M from Civic Assurance (sale of a building) , historic animal control fines revenue received $0.4M and additional landfill revenue $0.7M.  

20.  Operating expenditure:  The operating expenditure was $180.9M for the year which was $2.3M (1.3%) unfavourable to budget. Whilst there has been savings in interest costs of borrowings of $1.6M there have been increased costs across a number of areas, with the main variances being Three Waters $2M (largely maintenance and risk mitigation works, Covid related costs including staff duplication), refuse and recycling collection costs $0.9M, higher costs in consents $0.4M and in IT $1.0M (includes costs brought forward).

21.  Development Stimulus Package: The costs incurred for the year were $3.3M which was $0.6M lower than the approved budget for the year. Earlier in the year $2M of the budget was carried over to 2020/21.

22.  Rates income: The rates income for the year was $108.4M which was $0.4M higher than budgeted mainly due to slightly higher growth than expected together with adjustments related to internal rates. 

23.  Capital contributions: These were $5.8M for the year which was $2.6M lower than budgeted largely due to delays in capital expenditure impacting the timing of NZTA funding.

24.  Depreciation: The year-end depreciation for year was $40.8M which was $0.3M higher than budgeted. Earlier forecasts had indicated an even higher variance mainly due to the revaluation of assets. However the delays in the capital works programme due to Covid-19 resulted in an offset and the year end result largely aligns to budget. 

25.  Non-operating adjustments: Losses on the fair value of derivatives was $10.4M at 30 June 2020 – these are accounting (non-cash) adjustments related to fair value of the treasury derivatives portfolio and reflects the financial markets at the time.

26.  An asset revaluation was required to be completed for the financial year end which was one year earlier than anticipated in the LTP. The increase in value of assets for the year end is an overall increase of $72.7M.  

Capital investment

27.  Table 3: Capital expenditure results

$Millions

Actual

Revised Budget1

Variance 

$ and %

Annual Plan

Replacements/renewal

15.0

19.6

4.6     

23%

21.3

Improvements/new

23.7

37.2

13.5       

36%

46.6

Net surplus/(deficit)

38.7

56.8

18.1

32%

67.9

 

28.  Capital expenditure delivery performance was significantly underspent in 2019/20 with delays in a large number of projects mainly due to Covid-19. Year-end expenditure was $38.7M compared to the approved budget of $56.8M (68% spend). Appendices 2 and 3 provide further details of projects and activities where there are significant underspends. The key activities with underspends include Three Waters, Roading and Accessways and City Environment (Riverlink and related strategic property purchases).

29.  The year end result had been anticipated in the development of the Annual Plan 2020/21. A large number of carry-forwards of projects have already been incorporated into the plan. When the audit for 2019/20 is completed, there will be a report to this Committee seeking approval for further budget transfers between 2019/20 and 2020/21.   

Asset Sales

30.  Asset sales to the value of $2.2M were completed for the year. The most significant sales were within the Council group to UPL for Copeland Street Reserve ($1.8M) and Molesworth Street Reserve ($0.3M).

 

Treasury Compliance (attached as Appendix 4)

 

31. Council has been fully compliant with Financial Strategy borrowing limits:

Measures

Policy

Actual

30 June 2020

Compliance

Net external debt/total revenue

Maximum 150%

117%

Yes

Net interest on external debt/total revenue

Maximum 10%

3.1%

Yes

Liquidity ratio

Minimum 110%

126%

Yes

 

32.  The average cost of funds at the end of June was 3.3 per cent, which was 0.7 per cent below the budgeted level. Interest cost savings of $1.6M were achieved for the year mainly due to the delayed capital investment and lower interest rate environment. Net debt at 30 June 2020 was $176M which was lower than projected in the Annual Plan.        

33.  Further detailed information is available in the appendices to this report.

Climate Change Impact and Considerations

34.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.  There are no climate change impacts or considerations arising from this report.

Consultation

35.  There are no consultation requirements arising from this report.

Legal Considerations

36. There are no legal considerations arising from this report.

Financial Considerations

37.  There are no financial considerations in addition to those already noted in this report.

Appendices

No.

Title

Page

1

Appendix 1: Performances measure results - quarter 4 and year end results

181

2

Appendix 2: Summary financial results

196

3

Appendix 3 - Detailed Financial results

207

4

Appendix 4: Treasury Report for the period ended 30 June 2020

241

 

Author: Catherine Taylor

Senior Research and Evaluation Advisor

 

 

Author: Karl Eagle

Senior Management Accountant

 

 

Reviewed By: Wendy Moore

Head of Strategy and Planning

 

 

 

Reviewed By: Jenny Livschitz

Chief Financial Officer

 

 

Reviewed By: Anna Welanyk

Director Transformation and Resources

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1: Performances measure results - quarter 4 and year end results

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Attachment 2

Appendix 2: Summary financial results

 


 


 


 


 


 


 


 


 


 


 


Attachment 3

Appendix 3 - Detailed Financial results

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Attachment 4

Appendix 4: Treasury Report for the period ended 30 June 2020

 


 


 


                                                                                     247                                              07 September 2020

Policy, Finance and Strategy Committee

14 August 2020

 

 

 

File: (20/862)

 

 

 

 

Report no: PFSC2020/5/176

 

2020 Standard and Poor's Credit Rating

 

Purpose of Report

1.    The purpose of this report is to inform the Committee that on 14 August 2020, Standard and Poor’s Global Ratings affirmed Council’s credit rating as AA long term with “stable” outlook, and A-1+ short term.

2.    The overall credit rating assessment was unchanged from 2019, with the underlying detailed scoring showing improvements in budgetary performance and liquidity.

Recommendations

That the Committee notes and receives the report.

Background

3.    There is no legislative requirement for Council to have a credit rating, likewise the Council’s Treasury Risk Management Policy does not require a rating.

4.    Across New Zealand there are currently 31 Councils that have a credit rating. This includes for example Wellington City Council, Greater Wellington Regional Council, Porirua City Council, Tauranga City Council and Auckland Council. The credit rating is essentially a ‘signal’ to lenders that Council can fully meet its borrowings obligations.

5.    The credit rating enables Council to access multiple debt markets (Local Government Funding Agency, banking institutions, private placements), at a lower cost due to the perceived risk.

6.    The table that follows shows how the Local Government Funding Agency (LGFA) provides lending at range of margins dependant on Councils’ credit rating. 

Table 1: LGFA lending margins


Credit Rating

Additional Lending Margin

AA

0.20%

AA-

0.25%

A+

0.30%

Unrated Guarantor

0.40%

Unrated Non-Guarantor

0.50%

 

7.    Hutt City Council has an AA credit rating which reduces the cost of borrowings by up to 0.30% compared to other borrowers. When compared to a local authority with an A+ credit rating, Council’s annual cost of borrowings is $50,000 less for every $50M borrowed.

Outcome of the most recent credit rating review

8.    S&P annually review Council’s credit rating. The most recent review was completed in early July 2020. The outcome of the review was made publicly available on the 14 August 2020.

9.    The S&P rating affirmed Council’s credit rating as AA long term with “stable” outlook, and A-1+ short term. This is unchanged from the previous year.

10.  The rating received by Council is the same as the New Zealand sovereign rating so any upward movement of the rating is restricted by the sovereign rating. In addition, Council has the equal best rating of any Council in New Zealand and is better than New Zealand banking institutions.

11.  The S&P detailed review is attached as Appendix 1. This includes a summary rating score snapshot which is summarised in Table 2. A five-point scale is used for all the rating factors except for the ‘institutional framework’ where a six-point scale is used. One is the strongest score that can be achieved. 

12.  Table 2 includes a comparison to the prior year assessment and shows that improved scores were achieved in budgetary performance and liquidity.

Table 2: Rating score snapshot results

Key rating factor

2019

2020

Institutional framework

1

1

Economy

2

2

Financial management

2

2

Budgetary performance

4

3

Liquidity

2

1

Debt burden

4

4

 

13.  Key messages included in the report to explain the rating outcome:

Overview:

-     ‘We forecast a large economic shock in New Zealand during 2021 because of the COVID-19 pandemic. That said, we expect Hutt’s financial outcomes to be buttressed by its rates increase and Crown funding toward its shovel ready infrastructure projects’; and

-     ‘The council’s credit profile is supported by its prefunding of upcoming debt maturities that, while adding to total tax-supported debt, lower refinancing risks. The city’s economic profile, the council’s experienced management, and New Zealand institutional settings underpin our ratings. ‘

Further details:

a.    ‘The institutional framework within which New Zealand local governments operate is a key strength supporting Hutt’s credit profile. The NZ local government system also promotes a strong management culture, fiscal discipline, and high levels of financial disclosure’;

b.    ‘Hutt’s financial management is experienced and relatively conservative. The council is able to adopt budgets and long term plans without delay, and it remains focused on being financially disciplined in its approach to borrowing and insurance policies. We consider its debt and liquidity policies to be prudent’;

c.     ‘The new council may be more willing than past councils to increase rates to fund its budget and address the city’s infrastructure needs. We believe the willingness of the council to raise taxes in the past to be limited compared with its peers. During the past 20 years, the council has had the nation’s second-lowest rates rises and they generally have been fixed to inflation. Low rates increases historically resulted in some infrastructure backlogs that the council today will need to resolve’; and

d.    ‘Hutt’s prefunding of upcoming debt maturities up to 18 months in advance and its $35M bank facilities mean its liquidity coverage is high compared with its peers… we consider that access to the NZ Local Government Funding Agency provides Hutt, along with most of its NZ peers, with strong access to a well-established source of external liquidity. ..the LGFA benefits from an ‘extremely high’ likelihood of extraordinary central government support, and has helped Hutt to both lengthen its maturity profile and reduce its interest expenses.’

 

Climate Change Impact and Considerations

14.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide. There are no climate change impacts or considerations arising from this report.

Consultation

15.  There are no consultation requirements arising from this report.

Legal Considerations

16.  There are no legal considerations arising from this report.

Financial Considerations

17.  There are no further financial considerations apart from those noted in the report.

Appendices

No.

Title

Page

1

Appendix 1: S&P Ratings Direct - Credit Rating for 2020

248

 

Author: Jenny Livschitz

Chief Financial Officer

 

Reviewed By: Anna Welanyk

Director Transformation and Resources

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1: S&P Ratings Direct - Credit Rating for 2020

 


 


 


 


 


 


 


                                                                                     257                                              07 September 2020

Policy, Finance and Strategy Committee

27 August 2020

 

 

 

File: (20/930)

 

 

 

 

Report no: PFSC2020/5/178

 

Electoral Voting System

 

Purpose of Report

1.    The Local Electoral Act 2001 (LEA) gives each local authority the opportunity to review the electoral system, either First Past the Post (FPP) or Single Transferable Vote (STV), to be used for the next triennial general election in 2022.  The purpose of this report is to advise Council of its options.

Recommendations

That the Committee:

(i)    adopts one of the following options that are available to Council under the Local Electoral Act 2001 in determining the electoral system to be used in the triennial general elections for the Hutt City Council and its Community Boards from 2022:

(a)   to resolve to continue with the status quo of using the First Past the Post electoral system for the next triennial general election in 2022;

(b)   to resolve to change the electoral system to Single Transferable Vote for the next two triennial general elections in 2022 and 2025; or

(c)   to resolve to undertake a poll of electors on the electoral system to be used for the next two local triennial elections in 2022 and 2025, noting that this option will cost $175,000 for which there is no current budget provision; and

(ii)   notes that a do-nothing approach has the same effect as resolving to continue with the status quo, with the use of the FPP electoral system continuing.

For the reasons that Council has options under the Local Electoral Act 2001 in determining the electoral system for the next triennial general election which, if exercised, must be undertaken prior to 12 September 2020.

 

Background

2.    The Local Electoral Act 2001 provides Council with the choice of determining the electoral system to be used at the next triennial general elections.  There are two authorised electoral systems being First Past the Post (FPP) or Single Transferable Voting (STV). If Council wants to change the system it must do so no later than 12 September 2020, two years before the year of the next triennial general election in 2022.

3.    Hutt City Council has traditionally only used the FPP electoral system for its elections and those of the Community Boards.  Both Greater Wellington Regional Council and the Hutt Valley District Health Board, which have election issues on the combined voting paper for Hutt City electors, use STV. In the case of the District Health Board this is a legislative requirement.

4.    Within the region Greater Wellington, Wellington City, Porirua City and Kapiti Coast District Councils use STV, while Hutt and Upper Hutt City Councils and the three Wairarapa Councils use FPP.

5.    For the past three elections Council has not exercised its choice to consider the options available to it and so by default has continued with FPP.  No demands for a poll from electors to change the electoral system were received following Council giving the requisite public notice advising electors of this electoral right.

6.    Attached as Appendix 1 is information on the two electoral systems which has been provided impartially through SOLGM to assist Councils in deciding which electoral system to adopt.

Discussion

7.    Council has the option to exercise a choice on this matter but also can take a do nothing approach, which in essence supports the continuation of the existing FPP electoral system.

8.    The pros and cons of each system are outlined for consideration in the appendix to this report. In overall terms FPP is seen as a simple system for voters to use but is less likely to reflect the preferences of the broad community of voters, whereas STV is seen as more complex but better reflects the broad community of voters.

9.    The change at the last election to a mixed representation model for Council, that is having both ward and city-wide elections, is a factor that Council may wish to take into account when considering the suitability of the electoral system to be used. STV may be better suited for the city-wide election where there are a larger number of candidates competing for the six Council positions.

10.  Council may also wish to consider the degree of complexity of the current combined voting paper for electors of Hutt City, which includes both FPP and STV elections.  It has been argued that having the two electoral systems on the combined voting paper is confusing for some electors, though this situation has now existed for some time.  The Justice Select Committee, as part of its review into the 2019 general triennial elections, has indicated that this is an issue that has been raised by submitters and needs further consideration.

Options

11.  There are three options to consider.

a.    To resolve to continue with the status quo of using FPP;

b.    To resolve to change the electoral system to STV, effectively for the next two general triennial elections; or

c.     To resolve to undertake a poll of eligible electors on the electoral system for the next two general triennial elections, noting that this option has a cost attached to it which has not been budgeted.

Climate Change Impact and Considerations

12.  The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.  

Consultation

13.  There has been no public consultation prior to the preparation of this report. There is no legal requirement to do so.

14.  Council is required to publicly notify its decision by 19 September 2020 and inform electors of the right to demand a poll on the electoral system. A poll is triggered if 5% or more of qualified electors sign a demand in writing by 21 February 2021.  If no decision is made, Council is still required to publicly notify electors of the right to demand a poll on the electoral system.

Legal Considerations

15.  The LEA sets out the process by which Council may determine the electoral system for the 2022 triennial elections for the Hutt City Council and its Community Boards. This report describes that process.

Financial Considerations

16.  Should Council resolve to hold a poll on the electoral system, or a poll was demanded by 5% or more of electors, the estimated cost of holding the poll would be $175k. This has not been budgeted.

Appendices

No.

Title

Page

1

Appendix1: Attachment to report 20930 (Title Appendix 1 Electoral Systems Background Information from SOLGM)

258

    

Author: Bruce John Hodgins

Electoral Officer

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix1: Attachment to report 20930 (Title Appendix 1 Electoral Systems Background Information from SOLGM)

 


 


 


 


 


 


 


 


 


 


 


 


 


                                                                                     280                                              07 September 2020

Policy, Finance and Strategy Committee

07 August 2020

 

 

 

File: (20/852)

 

 

 

 

Report no: PFSC2020/5/177

 

Homelessness update 2019 - 2020

 

Purpose of Report

1.    Provide an update on the work of Council and partners under the Lower Hutt Homelessness Strategy between July 2019 and June 2020, including the data and information from the organisations contracted to deliver the three actions funded by Council.

Recommendations                                 

That the Committee notes the report as the first annual update on:

(a)     Council’s actions in response to homelessness as part of the Lower Hutt Homelessness Plan; and

(b)     council’s role in homelessness more broadly as part of the Lower Hutt Homelessness Plan.

For the reason that Council agreed to the strategic direction on homelessness in Lower Hutt, and its role in contributing to the short-term response to homelessness, in March 2019. Funding was agreed in June 2019. During the period since the funding was agreed officers have been working to progress the council actions.

 

Background

2.    It was agreed at the Council meeting, dated 6 March 2019 the following:

i.     the proposed strategic approach to homelessness in the city;

 

ii.    the three-year funding proposal to contribute to implementing the Lower Hutt Homelessness Strategy;

 

iii.   to work with partners to implement the initial action plan for the strategy;

 

iv.   that Council participates in the Governance of Housing First in the Hutt Valley and Wellington along with partners including Iwi, non-governmental organisations, local government and central Government; and

 

v.    to review the action plan after the initial three-year period with further funding considered as part of the Long Term Plan;

 

3.    During the period between April and June 2019, Strategy and Planning officers continued to explore the means of delivering the actions, particularly the housing advice and advocacy action, and had several discussions with Ministry of Housing and Urban Development and agencies about service design, capacity, and capabilities required for the homelessness prevention programme;

4.    The governance model for Housing First, discussed during the engagement on homelessness process and referred to in recommendation (iv) above, has not happened. Council officers have worked with Housing First services in terms of referring and assisting clients;

5.    During the period between July 2019 and June 2020 homelessness and housing hardship in Lower Hutt continued to increase.  Emergency Housing Special Needs Grants in the city remain high although, following a period of increases since early 2017, the numbers decreased in the period between late 2019 and the June quarter of 2020. The Social Housing Register for the city has continued to increase, from 451 households in the September 2019 quarter to 584 households in the June 2020 quarter. Many of these households will be defined as homeless and over 80 per cent in each quarter are in the highest category of housing need;

Discussion

 

Homelessness context

6.    Government released the National Homelessness Action Plan in February 2020. The plan is the first national plan to respond to homelessness and housing hardship problems that have accumulated in New Zealand over a lengthy period of time. $300 million of new funding supports the implementation of the plan and it focusses on preventing homelessness and, if homelessness occurs, ensuring that it is rare, brief, and non-recurring;

7.    There is however not enough emphasis in the plan on the step change required to deliver the housing supply required to respond effectively to housing need in New Zealand. While in the current environment, services that seek to make the best use of the existing supply for households in housing need are required, national and local level intervention on homelessness needs to focus on increasing the supply of suitable and affordable housing and doing that at pace;

 

8.    As part of the overall response to Covid-19, the Government took a number of housing actions. These included amending the Residential Tenancies Act (RTA) to suspend evictions for a three-month period in most circumstances, and to stop rent increases for a period of 6 months. The Government also worked with partners to find emergency accommodation for households who were street homeless or at risk of homelessness during the emergency. This included finding additional hotel accommodation; and

 

9.    It is as yet unclear what the impact of Covid-19 is on homelessness and housing need in general e.g. what is happening in terms of delayed evictions, what will happen in terms of rent increases in the context of households whose income has been affected, and in relation to those households that are in emergency accommodation and seeking permanent housing. Homelessness and housing hardship may increase as the economic impact of the pandemic continues and becomes clearer.

 

Council actions – June 2019 July 2020

10. The three Council funded actions relate to the strategic priorities of preventing homelessness, improving the supply of suitable accommodation, and also improving the understanding of homelessness in Lower Hutt. Officers began work on the actions and funding processes from late June 2019.

 

Access to settled accommodation

11. Following discussions with Tuatahi Centre in July and August 2019 we agreed a three year contract to expand their service to deliver settled housing in the private rented sector for households that are threatened with or have experienced homelessness, and that consequently often have difficulty competing in the market. The action is in-line with the aim of focusing on settled homes rather than temporary accommodation. The contract began on 24 August 2019 with the overarching goals of increasing access to settled homes, preventing homelessness, and improving wellbeing;

 

12. This service aims to provide homes for 50 Lower Hutt households per annum and to ensure that 85% of households will retain their accommodation. Tuatahi Centre accesses a range of support services depending on the needs of the whanau.

 

Legal Housing Advice and Advocacy

13.  Officers developed criteria for the legal housing advice and advocacy service. Given the profile of homelessness and findings from the research and engagement work, we wanted to ensure that a provider could deliver legal advice and advocacy with an understanding of Tikanga Māori as well as of housing issues across the whole population. We had a series of discussions with Community Law Wellington and Hutt Valley (CLW&HV) about designing and delivering the service. CLW&HV has good links with organisations and groups in the city, Pou Whirinaki – a legal service for Māori, by Māori, and already delivers legal services in the city.

 

14. Although the first round of recruitment for a dedicated housing lawyer in November 2019 was successful, the candidate withdrew at a late stage after initially accepting the role. The subsequent recruitment process was successful, and the advice service was available to organisations in February 2020. A public telephone advice service was launched on 2 April 2020 and then the service launched fully in early June under level 2 of the Covid-19 response. Advice sessions are delivered at CLWHV offices in Lower Hutt with advice also available by telephone and appointment.

 

This service aims to prevent homelessness and improve housing outcomes, and has a target to provide services to 80 clients per annum.

 

Homelessness Prevention programme

15.     A Request for Proposal (RFP) for the homelessness prevention programme was published on Government’s Electronic Tender Service (GETS) at the end of July 2019, and was open for four weeks. The RFP outlined Council’s expectations, including a track record of delivering homelessness and housing services, delivering services to a range of households, and being able to work with households in ways that are culturally appropriate.

 

16.     During the RFP process, we received a number of questions and met with several organisations e.g. Hutt Union Health and Kahungunu Whānau Services, to clarify requirements, provide additional information, and assist with proposals generally.

 

17.     Nine applications were received and these were from a range of providers, partnerships of multiple providers, including local and national level organisations. Three proposals were received from Kaupapa Māori applicants. The standard of applications was high overall, with a number of applicants demonstrating the experience and track record required for the work.

 

18.     In-line with the collaborative ethos of the homelessness research and engagement, a multi-agency assessment panel was established to decide on this contract. The panel brought together people with expertise on housing and homelessness, and a Māori lens and understanding of tikanga. The panel were:

 

·     Iris Pahau, New Zealand Collation to End Homelessness;

·     Roy Hoerara and Justine Angell, Ministry of Housing and Urban Development;

·     Clare Aspinall, He Kainga Oranga - Housing and Health Research Programme at University of Otago; and

·     Hine Sullivan, City Safety Manager, Hutt City Council.

 

19. Officers from Strategy and Planning were also part of the panel. We did not share our views on the applications beforehand as our aim was to facilitate the discussions so that the panel could lead the decision making process. The panel met on 26 September 2019 to discuss their thoughts and make a decision.

 

20. Tākiri Mai Te Ata Whānau Ora Collective was unanimously selected to deliver the programme. The application was the strongest because it demonstrated a kaupapa Māori strengths based and mana-enhancing approach, and the collective has very strong local relationships and trust within the community.  The proposal clearly outlined the method, including a comprehensive approach to assessing whanau and the collective brings together a range of expertise and experience and is collaborating with Petone Budgeting Service as part of the service delivery.

 

21. The service began operating on 6 January 2020. It aims to work with 280 households in the private rented sector over the three year contract and to ensure that 85% of households are able to remain in their homes as long as the circumstances allow. Officers are continuing to work with the provider to assess the service targets in relation to the intensity and levels of need found in practice, and current indications are that annual targets will need to be reduced.

 

Partnership working

22.     The three partners are working closely with Council as the services progress and therefore there are quarterly meetings on the individual contracts as well as a collective meeting between the three organisations and Council, to discuss issues, improvements, or changes to the actions that should be considered as a group.

 

Year 1 reports

23.     The section below provides the key points from the data and reporting to July 2020. Because of the different levels of preparation required to develop each contract, providers began delivering at different times during the year.  Further data from agencies is provided in Appendix 1.

 

Access to settled accommodation

24.     Council has received three quarterly reports from Tuatahi Centre for the period up to July 2020. 116 households have been assisted to access settled accommodation during the first nine months of the service.

 

Table 1

 

Period

Households assisted

Quarter 1

34

Quarter 2

43

Quarter 3

39

Total

116

 

25.     The total of 116 households is well above the target of 50 households per annum. All of the households have retained their accommodation to date.  A total of 51 children were part of the households assisted during the 9 month period. The majority of clients identified as Māori or Pacific people.

 

26.     The major causes of homelessness was relationship/family breakdown, financial problems and debt including rent arrears, and a range of mental health issues, with other problems including  addiction, criminal record, and discrimination. 

 

27.     Households were living in a range of situations when referred to Tuatahi Centre. The majority were living in very insecure situations, either with whanau or friends, or in cars, while others were in emergency or temporary accommodation, or in uninhabitable or overcrowded housing.

 

Homelessness prevention – early intervention

28.     The programme was able to partially complete one quarter of regular service delivery before the Covid-19 lockdown. The service deals with a range of situations, including whānau requiring low level support and those with complex needs.

 

29.     During the first 6 months, Tākiri Mai supported 45 whānau, with a total of 157 individuals. Whānau living in a number of areas have approached the service for help, including from Wainuiomata, Petone, Normandale, Naenae, Stokes Valley, Avalon, Hutt Central, Moera, Taita, and Epuni. 10 households approached the service directly, while others came from Regional Public Health, Well Home Healthy Housing programme, and other organisations. The whānau assisted had been in their homes for between 0-3 months and more than five years.

 

30.     A further 37 whānau that approached the service were not eligible – mainly because of their living situation or tenure and in some cases because they lived in neighbouring districts – and were referred to other support providers where possible. Although the service cannot assist these households, the data helps indicate the levels of need in the community.

 

31.     The primary homelessness risk factor for 11 households was financial problems, including debt or specifically rent arrears. This reflects the financial stress that many people are experiencing, with the cost of rents in relation to incomes and the competition for accommodation in the private rental sector. Relationship/family breakdown was the primary risk factor in 10 cases. Other issues include mental health or addiction problems, disputes with landlords or their agents, and tenancies ending.

 

32.     The majority of the whānau supported included households with children. 82 dependent children (under 18 years old) were part of households assisted by the service during the period.

 

33.     The flexi-fund, which was specifically included in the design of this programme to enable the provider to help whānau with a range of practical interventions, was used in seven cases of rent arrears and debt during this period. The reporting period includes the Covid-19 emergency and the service was able to use a proportion of the fund to assist 23 whānau to prepare for this period.

 

34.     In order to contribute to learning about access to services, needs, and so forth, there is an agreement to share the prevention programme data with the He Kainga Oranga/Housing and Health Research Programme at Otago University.

 

Community Law Wellington & Hutt Valley

 

35.     CLWHV began promoting the housing advice and advocacy service to community organisations during February 2020, with the service becoming available online during lockdown and via an 0800 telephone number in April and the kanohi ki te kanohi service beginning on 4 June. The Covid-19 emergency had a considerable effect on client intake. However, the number of households accessing the service increased from Level 2.

 

36.     28 households, including 57 individuals, were assisted during the period. The households included 16 children. 21 clients were private sector tenants, three were tenants of Kāinga Ora, three were living with whānau/friends, and one client was sleeping rough.

 

37. Advisors dealt with 45 legal issues.  18 cases required one-off legal advice on their situations while in ten cases households required ongoing legal advocacy. Ongoing legal advocacy primarily consisted of working with clients as issues developed and assisting them to communicate their rights and needs to landlords, property managers and government agencies. Ongoing legal advocacy also included preparing multiple applications to the Tenancy Tribunal on behalf of clients, and successfully representing a client in the District Court.

 

38. During lockdown, CLWHV was seeing a range of housing issues, including evictions, rent arrears, conflicts between co-tenants, tenants needing to terminate their fixed-term tenancies due to disruption caused by Covid-19 and issues with landlords not following the temporary Covid-19 Residential Tenancies Act 1986 (RTA) amendments. CLWHV noted individuals in living situations that are not covered by the RTA e.g. flatmates and boarders who are not on the tenancy agreement, were especially vulnerable, as the temporary protections offered under the RTA does not extend to them.

 

Covid-19 – role of partners

39. During the Covid-19 lockdown, and the restrictions under levels 2 and 3, providers adapted their services to be able to work remotely and continue to support whānau, while keeping both their staff and clients safe.  In many respects the services provided by agencies expanded, that is they did what was necessary for their communities.  As Tākiri Mai Te Ata and Tuatahi Centre have a range of services, both organisations were involved in delivering kai to whānau in the city, finding  emergency accommodation, providing a range of support, and in the case of Tuatahi Centre, providing emergency accommodation in case people presenting as homeless had Covid-19. New partnerships were developed, including between Tākiri Mai and Wellington City Mission and Salvation Army, and between both providers and the Common Unity Project Aotearoa.

 

40.  An indication of the scale of need can be seen in the work of Tākiri Mai Te Ata, which over the Covid-19 emergency and up to mid-June 2020, established a new Pataka Kai and delivered:

 

·    11,400 kai parcels to whanau;

·    40,000 meals to whanau, in partnership with Ministry of Social Development; and

·    in partnership with the Common Unity Project Aotearoa provided 16,904 meals to 2842 whānau.

41.  The collective also provided 7000 whānau with kai vouchers with a total value of $30,000.

 

Homelessness action plan

42. The actions funded by Council are part of the broader response to homelessness in Lower Hutt which Council agreed to continue working on with partners. While arranging the contracts dominated much of the time available for the homelessness policy up to January 2020, officers also began thinking about how to continue involvement in other actions and overseeing of homelessness interventions in the city. Involvement in the overall multi-agency response to homelessness will assist Council with monitoring, identifying issues, and thinking about Council’s role in responding to homelessness as part of its Long-Term Plan and City Plan.

 

43. During the period of setting up the homelessness prevention programme, Tākiri Mai Te Ata established a multi-agency group – the Lower Hutt Housing and Homelessness Network – providing an opportunity for organisations to come together to discuss issues and ideas. Attendees at the first two meetings have included Kāinga Ora, Regional Public Health, Ministry of Social Development, and organisations, including Emerge Aotearoa, Tuatahi Centre, Kahungunu Whānau Services, Salvation Army, Wellington City Mission, Aro Mai Housing First Collaboration, and Community Law Wellington & Hutt Valley.

 

44. As a result of Covid-19, the group has only been able to meet twice. While this group is in the early stages of development, it has potential to be a useful part of the work on the broader action plan. It is also important to link the homelessness work, and the work of the group, into strategic multi-agency platforms such as Hutt Valley Governance Group and the Regional Healthy Housing Steering Group as appropriate.

 

45.  A recent partnership between Tākiri Mai Te Ata Whānau Ora Collective and Aro Mai Housing First Collaboration extends the housing services available from Kokiri Marae and assists with joint working.  Along with the Well-Homes programme, this means that the organisations are beginning to provide an integrated housing service. Tākiri Mai has also been awarded a Sustaining Tenancies contract by The Ministry of Housing and Urban Development to deliver tenancy support in social housing. This contract is for households with low level needs, with Downtown Community Ministry and Emerge Aotearoa working with households that have more complex needs.

 

46. Tuatahi Centre’s application to register as a Community Housing Provider is also progressing.

 

47. Part of the wider work has also been presenting Council’s role to external  Association New Zealand conference, New Zealand Coalition to End Homelessness conference, and at Kapiti Coast District Council.

 

Year 2 and Long-Term Plan 2021-2031

48. With the three Council contracts operational, officers will continue working with our partners on managing these, adapting them as required, and improving our understanding of homelessness in the city. We are, through the Lower Hutt Housing and Homelessness Network, seeking to maintain a role in the response to homelessness more widely in the city.

 

49. Working with our partners and other agencies will enable us to identify Council’s potential role in the future and inform both the Long-term Plan and City Plan. The Housing Needs Analysis completed by Community Housing Aotearoa and Livingston Associates, information gathered through the homelessness engagement, as well as information gathered by services, will inform Council’s approach to housing and delivering affordable homes in the city.

 

50. Officers are considering options for Council’s financial support to respond to homelessness in the future. These will be discussed with partners and presented to the LTP/Annual Plan Committee later this year.

 

Climate Change Impact and Considerations

 

51. The matters addressed in this report have been considered in accordance with the process set out in Council’s Climate Change Considerations Guide.

 

The matters discussed in the report do not impact on Council’s work in relation to climate change.

 

Consultation

 

52. This report relates to work on which Council has previously engaged on with communities in the city, and consultation is therefore not required.

 

Legal Considerations

 

52. There are not any legal considerations in relation to this work.

Financial Considerations

 

53.  There are not any new financial considerations for Council in relation to the homelessness work.

Appendices

No.

Title

Page

1

Appendix 1: Homelessness - Data 2019-2020 summary

281

    

 

 

 

 

 

Author: John Pritchard

Principal Policy Advisor

 

 

Reviewed By: Wendy Moore

Head of Strategy and Planning

 

 

 

Approved By: Anna Welanyk

Director Transformation and Resources

 


Attachment 1

Appendix 1: Homelessness - Data 2019-2020 summary

 


 


 


 


 


 


 


 


 


 


MEMORANDUM                                                 293                                              07 September 2020

Our Reference          20/872

TO:                      Chair and Members

Policy, Finance and Strategy Committee

FROM:                Dean Bentley

DATE:                10 August 2020

SUBJECT:           Sale and Supply of Alcohol (Fees) Regulations 2013 - Regulation 19(1) - Reporting by Territorial Authorities

 

 

Recommendation

That the Committee approves the publication of a ‘table of income versus expenditure’ on Council’s website showing the alcohol licensing income received from fees payable in relation to, and costs incurred in:

(a)   the performance of the functions of Council’s District Licensing Committee under the Sale and Supply of Alcohol Act 2012 (the Act);

(b)   the performance of the functions of Council’s Inspectors under the Act; and

(c)   undertaking of enforcement activities under the Act.

 

Purpose of Memorandum

1.    To advise the Committee on Council’s responsibilities to annually prepare and make publicly available, a report showing all income from fees payable in relation to, and costs incurred for all activities related to alcohol licensing and enforcement under the Sale and Supply of Alcohol Act 2012.

Background

2.    The Sale and Supply of Alcohol Act 2012 (the ‘Act’) came into force on 18 December 2012 and became effective in December 2013. 

3.    The Act’s focus is on alcohol harm reduction, requiring that Licensing Inspectors inquire into and report on applications, and also monitor the performance of licensees. The team works in collaboration with the New Zealand Police and the Medical Officer of Health. 

4.    The Act requires Territorial Authorities to report annually as follows:

Regulation 19(1) Reporting by territorial authorities

·      (1) Every territorial authority must, each year, prepare and make publicly available a report showing its income from fees payable in relation to, and its costs incurred in,—

·      (a) the performance of the functions of its licensing committee under the Act; and

·      (b) the performance of the functions of its inspectors under the Act; and

·      (c) undertaking enforcement activities under the Act.

5.    Council approved the Alcohol Fees Bylaw on 17th September 2019. Both the application and annual fees are to be increased over three years in order to recover 90% of the costs of alcohol related work. While 10% of costs will still be subsidised by rates, it is acknowledged that there is a public good component in the licensing, monitoring activities and enforcement of the Act.

6.    The amounts received through application and annual fees are detailed in the table below. Total revenue has increased from last year by $2,015 (0.83%).

7.    This amount is less than the predicted 2019/2020 revenue of $276,542. The reasons for this are:

·      a decrease in club licence renewal applications by 18, due to the triannual cycle of applications;

·      a decrease in the number of manager’s certificate applications by 17, during the period April to June from last year. This appears to be a direct result of the Covid-19 lockdowns and economic uncertainty; and

·      a decrease in the number of special licence applications by 21, during the period April to June from last year. This again appears to be due to events unable to be held due to Covid-19 restrictions on gatherings.

8.    The cost of licensing inspectors’ functions and operating and support costs has decreased. During 2018/2019 there was a backlog of alcohol related work that has since been cleared, resulting in less FTE’s being required to undertake current workloads.

9.    The percentage of costs Council has recovered from fees for carrying out its functions under the Sale and Supply of Alcohol Act 2012 for the 2019/20 financial period is 41%.


 

 

TABLE OF INCOME VS EXPENDITURE (GST EXCLUSIVE)

Required under Regulation 19 (1) of the Sale and Supply of Alcohol (Fees) Regulations 2013

 

Revenue

2019/2020

2018/2019

-        Fees

$244,516

$242,501

 

 

 

Expenses

 

 

-        Alcohol Regulatory Licensing Authority (ARLA) Fees

 

     $15,440

 

$16,465

-        District Licensing Committee Functions

 

$27,433

 

$30,736

-        Licensing Inspectors Functions

 

$311, 988

 

$351,791

-        Licensing Inspectors Operating & Support Costs

 

$191,100

 

$252,703

-        Administration and Sundry

$56,775

$51,005

Total Expenses

$602,736

$702,700

Surplus/Deficit

-$358,220

-$460,198

Cost Recovery Rate

41%

35%

 

Appendices

There are no appendices for this Memorandum.    

 

 

Author: Dean Bentley

Team Leader Environmental Health

 

 

Reviewed By: Derek Kerite

Head of Environmental Consents

 

 

Approved By: Helen Oram

Director Environmental and Sustainability

 

 

 

 

 


                                                                                     294                                              07 September 2020

Policy, Finance and Strategy Committee

10 August 2020

 

 

 

File: (20/883)

 

 

 

 

Report no: PFSC2020/5/88

 

Policy, Finance and Strategy Committee Work Programme 2020

 

 

 

 

 

Recommendation

That the work programme be noted and received.

 

 

Appendices

No.

Title

Page

1

Appendix 1: Policy Finance and Strategy Work Programme 2020

295

    

 

 

 

 

Author: Toi Lealofi

Committee Advisor

 

 

 

 

Approved By: Kathryn Stannard

Head of Democratic Services


Attachment 1

Appendix 1: Policy Finance and Strategy Work Programme 2020

 

Policy, Finance and Strategy – Work Programme –2020

 

 

Description

Author

Cycle 5

7 September

Cycle 5

21 October

Cycle 5 (Additional meeting)

30 October

Cycle 6

17 November

Work Programme

Committee Advisor

 

 

 

 

Revised SOI for UPL (request from Council)

K Puketapu-Dentice/J Miller

 

 

 

Economic Development Plan – Direction for next 6 months

 

G Craig/K Puketapu-Dentice

 

 

 

2020 Standard & Poor Credit Rating Review

J Livschitz/A Welanyk

 

 

 

Council quarterly overview for the period ending 30 June 2020

P Benseman/A Welanyk

 

 

 

Update on the Homelessness

J Pritchard/A Welanyk

 

 

 

Sale & Supply of Alcohol Fees Regulations 2013 - reporting back by local authority

D Bentley/H Oram

 

 

 

Proposed Appearance Industries Bylaw

G Sewell/A Welanyk

 

 

 

Electoral Voting System

B Hodgins/H Oram

 

 

 

Unlicensed Public use of Council Land - Encroachments

G Sewell/A Welanyk

 

 

 

 

Private Drains Policy

B Hodgins/H Oram

 

 

 

 

Council Group Annual Report

J Livschitz

 


 

 

Annual Report UPL to 30 June 2020

S George/A Welanyk

 


 

 

 

Annual Report CFT to 30 June 2020

S Page/A Welanyk

 

 

 

 

 

Annual Report SML to 30 June 2020

S Page/A Welanyk

 

 

 

 

 

Annual Report Wgtn Water Ltd to 30 June 2020

B Hodgins

 

 

 

 

 

Annual Report LGFA to 30 June 2020

J Livschitz/A Welaynk

 

 

 

 

Financial Performance Report ended 30/9/20

J Livschitz/A Welaynk

 

 

 

Health and Safety Update

K Alkema/A Welanyk

 

 

 

 

Insurance Update

J Livschitz/A Welaynk

 

 

 

Activity Report - IT

L Allott/A Welaynk

 

 

 

HVCC 6 monthly report back

G Craig/K Puketapu-Dentice

 

 

 

Six Monthly Strategic Property Update

G Craig/K Puketapu-Dentice

 

 

 

Technology Valley 6 monthly report back

G Craig/K Puketapu-Dentice

 

 

 

Review of Leisure and Wellbeing Strategy

A Blackshaw/J Miller

 

 

 

Parking Policy

J Pritchard/M Boggs

 

 

 


 

 


                                                                                     299                                              07 September 2020

Policy, Finance and Strategy Committee

11 August 2020

 

 

 

File: (20/887)

 

 

 

 

Report no: PFSC2020/5/89

 

Economic Development Plan - Direction Next 6 months

 

 

 

 

Purpose of Report

 

1.    At the Long Term Plan/Annual Plan Subcommittee meeting of 29 May 2020, the Mayor requested officers to provide information on the next six months with Council’s Economic Development Plan.

Recommendation

That the report be noted and received.

 

Discussion

2.    Council’s Economic Development Plan 2015-2020 is focused on the following areas:

a)   Grow Science, Technology, Engineering and manufacturing (STEM) businesses;

b)   Rejuvenate the Hutt CBD;

c)   Stimulate development and growth; and

d)   Continue business support.

3.    Whilst we remain focused on these areas a Covid-19 recovery lens is being applied in considering our specific projects over the next 6 months.

4.    Science, Technology, Engineering and Manufacturing – this is an area of key focus for the following reasons:

·      Gross Domestic Product (GDP) per employee from our medium and high tech business is $136,500, which is higher than that of all other job sectors in the city;

·      There are a large number of science and technology businesses in the city including both large organisations such as GNS Science and Callaghan Innovation, as well as many small and medium size businesses; and

·      The government agenda focuses on growing the wealth, number of businesses and employees in these sectors.

5.    Rejuvenate the Hutt CBD – this is an area of key focus for the following reasons:

·        The Central City spatial plan is a key document for Council identifying changes that need to be made to the CBD for growth to occur;

·        Council is working with Greater Wellington Regional Council (GWRC) and New Zealand Transport Agency (NZTA) on the RiverLink project; and

·        It supports the Urban Growth Strategy (UGS) and in particular the need for intensification, more people living and working here will drive more economic activity.

6.    Stimulate development and growth – this is a key area of focus because:

·        It aligns with the UGS – the need for 6,000 new homes by 2032; and the current work being undertaken across the region with central government and iwi to develop a Regional Growth Framework to address housing issues across the region;

·        With the city now experiencing higher levels of growth the economic development team continue to work with developers promoting the city and assisting them through the regulatory processes; and

·        We focus our efforts on stimulating growth and development in particular priority areas e.g. science and technology – Callaghan Innovation Quarter.

7.    An additional area of focus since 2019 has been workforce development, in particular vocational education (trades) aligned with the Government’s review of vocational education.  In partnership with the Hutt Valley Chamber of Commerce and Upper Hutt City Council funding was secured for 2 initiatives; (i) to better connect schools and businesses; and (ii) a work broker service to connect young people interested in a trade with employers in the city.  A recent example of this is as reported in Stuff:

 

8.    Covid-19

Heading into lockdown the city’s economy was in a strong position (see graphs below), and some of this momentum has continued post lockdown.  However there is considerable uncertainty about how long the current levels of activity will continue with the end of the current wage subsidy in September and continued deterioration of the public health and economic situation outside New Zealand.

 

 

 

9.    Consequently whilst our efforts continue on the current Economic Development Plan focus areas we have increased effort in the following areas:

·      Continuing business support through strengthening partnerships – working with our partners on recovery in the collaborative way we worked together during the response phase of lockdown.  These partners include: Hutt Valley Chamber of Commerce, Jackson Street Programme, Love Wainuiomata, Seaview Business Association; Technology Valley and South End Business Group (CBD).

·      Working with Hutt Valley Chamber of Commerce to connect Hutt based businesses to support funding channelled through Regional EDA Wellington NZ;

·      Partnered with Upper Hutt City Council to deliver a Popup Business School course in the Hutt Valley;

·      Continued start up business programme with The Settlement in Petone;

·      Advocate with Central Government and Wellington NZ for local business broker based in the city to connect businesses to available support;

·      About Space programme aimed at breathing new life into Lower Hutt, filling empty CBD and neighbourhood storefronts with creative, business and community projects; and

·      Increased monitoring of economic activity – Marketview, Infometrics.

10.  Subsequent to writing the body of the report, the Covid-19 Emergency Alert level has been increased to level 2.  As a result the Hutt Valley Covid-19 Business Support Team has been reactivated and staff from the Economic Development and the City Promotions and Events teams are working in partnership with staff from the Hutt Valley Chamber of Commerce and Upper Hutt City Council in responding to businesses concerns and enquiries.

 

Appendices

There are no appendices for this report.   

 

Author: Gary Craig

Head of City Growth

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development