HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

Policy, Finance and Strategy Committee

 

 

10 November 2020

 

 

 

Order Paper for the meeting to be held in the

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

on:

 

 

 

 

 

Tuesday 17 November 2020 commencing at 2.00pm

 

 

 

 

Membership

 

 

Cr S Edwards (Chair)

Mayor C Barry

Cr K Brown (Deputy Chair)

Cr J Briggs

Cr D Bassett

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.

 

    


                                                                       7                                                                       

HUTT CITY COUNCIL

 

Policy, Finance and Strategy Committee

 

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

 Tuesday 17 November 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 – 8 December 2020

i)       Hutt City Council Annual Report to 30 June 2020 (20/1204)

Report No. PFSC2020/6/254 by the Head of Strategy and Planning        8

Chair’s Recommendation:

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

 

ii)      Budget Update 2020/21 (20/1308)

Report No. PFSC2020/6/255 by the Budgeting and Reporting Manager 273

Chair’s Recommendation:

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

 

 

 

 

 

iii)     Draft Hutt City Council COVID 19 Recovery Plan (20/1342)

Report No. PFSC2020/6/288 by the Director Neighbourhoods and Communities  284


Chair’s Recommendation:

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

 

iv)     Proposed Solid Waste and Minimisation Bylaw (20/1314)

Report No. PFSC2020/6/256 by the Principal Policy Advisor               307

Chair’s Recommendation:

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

 

v)      Unlicensed Public Use of Council Land - Encroachments (20/354)

Report No. PFSC2020/6/283 by the Principal Policy Advisor               348

Chair’s Recommendation:

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

 

vi)     Draft Wellington Regional Growth Framework (20/1309)

Report No. PFSC2020/6/257 by the Head of City Growth                    357

Chair’s Recommendation:

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

5.       Technology Valley 6 Monthly Update to 30 June 2020 (20/1295)

Report No. PFSC2020/6/258 by the Head of City Growth                              446

Chair’s Recommendation:

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

6.       Hutt Valley Chamber of Commerce 12 Months Report to 30 June 2020 (20/1296)

Report No. PFSC2020/6/259 by the Head of City Growth                              459

 

Chair’s Recommendation:

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

7.       Strategic Property Portfolio - Update (20/1297)

Report No. PFSC2020/6/260 by the Head of City Growth                              475

Chair’s Recommendation:

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

8.       Council performance overview for the quarter ended 30 September 2020 (20/1132)

Report No. PFSC2020/6/261 by the Chief Financial Officer                           479

Chair’s Recommendation:

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

9.       New Zealand Local Government Funding Agency 2020 Annual Report (20/1076)

Report No. PFSC2020/6/262 by the Chief Financial Officer                           520

Chair’s Recommendation:

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

10.     Health and Safety Update (20/1310)

Report No. PFSC2020/6/118 by the Health & Safety Manager                      612

Chair’s Recommendation:

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

11.     Policy, Finance and Strategy Committee Work Programme 2020 (20/1312)

Report No. PFSC2020/6/119 by the Democracy Advisor                                617

Chair’s Recommendation:

“That the recommendation contained in the work programme 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

DEMOCRACY ADVISOR

   


                                                                                      12                                                17 November 2020

Policy, Finance and Strategy Committee

06 October 2020

 

 

 

File: (20/1204)

 

 

 

 

Report no: PFSC2020/6/254

 

Hutt City Council Annual Report to 30 June 2020

 

Purpose of Report

1.    The purpose of this report is for Council to adopt Council’s Annual Report and Annual Report Summary for the year ended 30 June 2020.

Recommendations

That the Committee recommends that Council:

(i)    notes that a public notice will be published in the Hutt News, as well as on Council’s website and Facebook page advising of the availability of the Annual Report and Annual Report Summary attached as Appendix 1 to the report;

(ii)   notes the Annual Report and Annual Report Summary will be available on Council’s website within one month of adopting the Annual Report; 

(iii)  agrees hard copies of the Annual Report Summary will be made available by request and in the City’s libraries, Community Hubs and at the main administration building;

(iv) agrees that a subcommittee comprising of Mayor Barry and the Standing Committee Chairs Deputy Mayor Lewis,  Cr Hislop and Cr Edwards will sign off the final documents;

(v)  approves the draft Annual Report and Annual Report Summary for the year ended 30 June 2020 attached as Appendix 1 to the report, subject to satisfactory resolution of the following outstanding items:

(a)   completion of final edit checking;

(b)   completion of any final audit adjustments; and

(c)   receipt of final audit clearance.

(vi) receives Audit New Zealand’s opinion on the 2019-2020 Annual Report; and

(vii)     adopts the 2019-2020 Annual Report.

 

Background

2.    Under Section 98 of the Local Government Act 2002 (LGA) Council must complete and adopt an Annual Report within four months after the end of the financial year to which it relates (by 30 October 2020).

3.    This year, because of the impact of Covid-19, Councils are able to delay the publication of their Annual Report until 31 December 2020.

4.    The purpose of an Annual Report is:

a.    to compare the actual activities and the actual performance of the local authority in the year with the intended activities and the intended level of performance as set out in the Long Term Plan and the Annual Plan; and

b.    to promote the local authority’s accountability to the community for the decisions made throughout the year by the local authority.

5.    Within one month of adopting the Annual Report on 8 December 2020, Council must make the Annual Report and a summary of the information (Annual Report Summary) publicly available.

6.    As with previous years, the Annual Report Summary will be available on the Council’s website as soon as possible after adoption.

Discussion

2019-2020 Annual Report

7.    The draft 2019-2020 Annual Report is attached as Appendix 1 to the report. The draft Annual Report Summary is included as pages 1-34 of this document. Only the Annual report Summary section of the draft Annual Report has been designed at this stage. Any significant amendments requested by auditors following publication of the order paper will be highlighted at the meeting.

8.    The structure of the document has changed considerably from previous Annual Reports.  There is greater use of infographics and photography to make the document more accessible and attractive for the community to read. There is also a section on the four well beings and commentary on Council’s contribution to our communities’ wellbeing.

9.    The Annual Report is complete, subject to design and final review following any changes requested by Council and any final audit adjustments.

10.  Officers from Audit New Zealand will be present at the meeting to provide an update on the status of the audit. Audit New Zealand will issue their opinion on the Annual Report once the Report is approved by Council prior to adoption.

2019-2020 Annual Report Summary

11.  The Annual Report Summary is included as part of the Draft Annual Report attached as Appendix 1 to the report. If any significant amendments are requested by the auditors following publication of the order paper, updated copies will be tabled at the meeting.

Customer research

12.  We have continued a focus on building a strong evidence base, improving consistency in type and quality of data to align better with the introduction of the four well beings during the performance year. Performance measures continue to be reviewed, and where necessary, refined or removed and replaced. Understanding our communities’ experience when interacting with Council and rather than solely focusing on the number of transactions.  This enables us to pivot, prioritise and deliver better value for the community.

13. Despite the many hurdles faced in the past year our communities’ satisfaction with almost all aspects of Council remains high. Most of our communities are satisfied with Council’s overall performance, and satisfaction with services and facilities has significantly increased. Our communities’ satisfaction with their interactions with Council also increased this year however there is still work to do to increase trust in Council and to improve our engagement so that that our community feels that they are being actively consulted with and their views reflected in decision making.

Options

14.  There are no options to consider.

Publicity Considerations

15.  A public notice advising the availability of the Annual Report and Annual Report Summary will be published in the Hutt News, on Council’s website and Facebook page.

16.  As in previous years, the Annual Report and Annual Report Summary will be published on Council’s website. Hard copies of the Annual Report Summary will be available from all Council libraries, community hubs and the main administration building.

17.  Council is committed to environmental stewardship and sustainability, using technology to make it easier for our customers to do business with us and greater use of online engagement consistent with our marketing and communication approach.

18.  In the past hard copies of the Annual Report Summary were posted to approximately 500 rural households who do not receive the Hutt News. To reduce waste we propose making hard copies of the Annual Report Summary available by request through calling the contact centre, from any Council library, community hub and the main administration building.

19.  The Local Government Act 2002 requires copies of both documents to be provided to the Secretary, the Auditor General and the Parliamentary Library within one month of adopting the Annual Report. Their preference is to receive copies electronically.

20.  The cost of producing, printing and distributing the Annual Report and Annual Report summary is provided for within current budgets.

Legal Considerations

21.  The Annual Report and Annual Report Summary have been prepared to meet the requirements of the Local Government Act 2002.

22.  The Annual Report Summary must represent, fairly and consistently, the information regarding the major matters dealt with in the Annual Report.

23.  The Local Government Act 2002 requires each Annual Report to be completed and adopted by resolution within four months after the end of the financial year to which it relates i.e. by the end of October. This year due to COVID-19 an extension has been granted to 31 December 2020.

24.  The Local Government Act 2002 further requires that the Annual Report and Annual Report Summary be made publicly available within one month of adoption.

Financial Considerations

25.  The Policy, Finance and Strategy Committee meeting 7 September 2020 included report PFSC2020/5/179 “Council performance overview for the year ended 30 June 2020”. This report included the interim unaudited financial results for the parent entity together with commentary and analysis.  The financial content of the draft Annual Report included here in Appendix 1 (see page 207 below) compared with the results previously reported to the Committee:

 

PFSC 7 Sept 2020

Annual Report

Movement

 

Other expenses

(94.936M)

(95.097M)

(0.161M)

Additional accrual for underwrite

Loss on revaluation of financial instruments

(10.362M)

(10.147M)

0.215M

Rate change to one swap valuation

Gain on property sales and revaluations

72.724M

70,829M

(1,895M)

Removal of UHCC share of revalued assets (Waste Water Network)

Total comprehensive revenue and expenses

49.313M

47.467M

(1.846M)

 

 

26. The final audited group results will be presented to the Council meeting on 8 December 2020, together with commentary about any changes that have been made.

Climate Change Impact and Considerations

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

28.  There are no climate change matters to be addressed as a result of this report.

Appendices

No.

Title

Page

1

Appendix 1: Draft Annual Report 2019-2020

13

 

Author: Wendy Moore

Head of Strategy and Planning

 

 

Author: Jenny Livschitz

Chief Financial Officer

 

 

Author: Darrin Newth

Financial Accounting Manager

 

 

Author: Judy Randall

Programme Lead - Planning and Reporting

 

 

 

Approved By: Matt Boggs

Director, Strategy and Engagement

 


Attachment 1

Appendix 1: Draft Annual Report 2019-2020

 

 

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


                                                                                     278                                               17 November 2020

Policy, Finance and Strategy Committee

23 October 2020

 

 

 

File: (20/1308)

 

 

 

 

Report no: PFSC2020/6/255

 

Budget Update 2020/21

 

Purpose of Report

1.    To seek approval of budget changes for 2020/21.

Recommendation

That the Committee recommends that Council:

(i)   notes the year-end carry overs of projects due to timing changes; and

(ii)  agrees to amend the operating and capital budgets as detailed in this paper due to changes in timing of expenditure, refer Table 1 and Appendix 1 attached to the report.

Background

2.    The 2020/21 Annual Plan (AP) was approved on 30 June 2020. The budgets included in the plan were based on latest financial information and estimates available at the time of the preparation of the plan.

3.    Through the review of the year-end financial results for 2019/20 there have been a few budget matters identified which have flow on impacts for 2020/21. For example the estimated timing of project expenditure assumed in the AP has changed for a range of reasons and the value of expenditure actually incurred in 2019/20 is different to that forecasted previously. From a project/budget manager perspective the budget in 2020/21 is requested to be updated to reflect the timing difference so that there is clarity of the correct budget for the project/budget manager.

4.    This paper seeks Council approvals related to the ‘Revised Budget’ for 2020/21 to reflect the budget updates required to improve the accuracy of budgets and the associated reporting of variances.   

Performance reporting

5.    Council is legislatively required to prepare an Annual Report and for this report to include financial results which compare to the Annual Plan budgets. There is no change proposed in relation to this process.

6.    From a financial performance monitoring perspective, the quarterly reporting to the Policy, Finance and Strategy Committee will include both information on Annual Plan budgets and the ‘Revised Budget’ which has been approved by Council. The focus of performance monitoring will be on financial results compared to the ‘Revised Budget’ as this would be the most meaningful and useful from a performance perspective. This is in line with the process applied in 2019/20.

7.    Monthly internal performance monitoring processes for Council will focus on delivery of the work programme against the ‘Revised Budget’ and accountabilities around this.

8.    There could be a few 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 will be included as a ‘Revised Budget’ change which would provide officers with the authority to progress the initiative. In 2019/20 there were some cases where this happened, for example in response to the Covid-19 pandemic where $100,000 of funding was approved for the Community Resilience Fund.

Summary of Revised Budget changes for 2020/21

9.    There are two categories of budget changes:

a)   year-end carry overs/deferrals of projects due to timing changes; and

b)   other budget changes approved via the LTP Subcommittee.

This report provides details of these and then summarises the financial impact of the changes.

Year-end carry overs/deferrals

10.  Council delivered $39M of capital expenditure in 2019/20, which was 57% of the $67.9M Annual Plan budget and 68% of the revised budget of $56.8M.

11.  As part of the Long Term Plan amendment that was developed pre-COVID and the Annual Plan 2020/21 process, there was a range of budget decisions progressed which impacted on both 2019/20 budgets and future years budgets. In the final Annual Plan decisions paper 18 June 2020 (refer LTP2020/4/124) the Council approved the carry-over of budgets from 2019/20 to 2020/21 which included opex of $2.4M and capex of $15.3M (further to this capex of $7.2M was carried over to later years). These were prepared based on best information available at the time.

12.  As part of the year-end process, officers have reviewed the 2019/20 results against the revised budget and re-assessed the need for carrying forward unspent budgets into the subsequent financial years. The assessment is based on specific criteria:

a)   Deferrals are for discrete projects that are in execution phase but have experienced unexpected timing change.

b)   Deferrals relate to specific circumstances, for example grants committed to third parties etc.

c)   Ongoing development and renewal programme budgets cannot be carried forward unless it meets the requirements a) above.

d)   Savings and unused contingencies of completed projects cannot be carried forward and cannot be used to offset other projects.

e)   The whole of life project cost cannot be changed unless there is an approved variation. The budget changes represent a timing change only.

Alongside these criteria is the need to assess overall financial performance and check whether there are any other reasons not to progress the carry forward of budget.

Appendix 1 provides a detailed project listing of the proposed year-end carry overs for which approval is sought. The changes have been split into two categories; firstly amendment to previously approved carry-overs and secondly new carryovers proposed. These are summarised in table 1. There are a wide range of budgets impacted by these changes which cover Three Waters, Transport, Integrated Community Services, Homeless prevention etc.


 

Table 1 : Summary of proposed budget changes for carry overs

$000

Amendments to previously approved carryovers

New carryovers proposed

Total carryovers proposed

NZTA subsidy revenue

57.2

Reduction

51.0

Increase

6.2

Reduction

Opex

209.6

Increase

610.0

Increase

819.6

Increase

Capex

388.9

Increase

2,454.4

Increase

2,843.4

Increase

 

13. Council approval is sought to revise the 2020/21 budgets so as to enable improved performance monitoring of project budgets in 2020/21. The financial impact of these changes is minor as it is timing of expenditure.

Other budget changes

14. As part of the development of the LTP 2021-2031, the LTP Subcommittee has been reviewing various priority initiatives/ projects along with the financial impacts. Some decisions have been progressed by the Subcommittee which will have budget implications for 2020/21. Included here is an update of the Naenae Project timing and budgets for spatial planning and Suburban Shopping Centre. As decisions are progressed during the year which have impacts for the 2020/21 budgets, then the revised budgets will be amended.

Summary financial impact for all budget changes

15. The following table shows a summary of financial impact of changes proposed.

 

Table 2: Financial impact summary for 2020/21

$Million

Net deficit

Capital investment

Annual Plan 2020/21

9.7

 Deficit

80.7

Carry forward changes

(0.8)

2.8

Other budget changes approved by LTP subcommittee

(0.4)

(0.5)

Revised Budget 2020/21

10.9

Deficit

83.0

 

 

16.  The impact of the carry-forwards is only on the timing of borrowings between years.

17.  Table 3 that follows provides an overview by activity of the proposed carry-over budget changes and the other budget changes approved by the LTP Subcommittee.

Table 3 – summary by activity of budget changes 

$Million

2020/21

Later years

 

Activity

Opex

Capex

Opex & Capex

Commentary

Integrated Community Services

0.2

0.4

0.2

Carryover to complete Belmont Hall $0.12M; new carry forwards proposed for various project delays, $0.16m in opex and $0.41M in capex. $0.17 carried forward from 2020/21 to later years in line with the agreed retiming of the Naenae Pool project.

Parks and Reserves

0.2

 

 

The release of the Biodiversity Assistance for Private Landowners fund has been delayed due to COVID-19 and extended to 2020/21.

City Environment

0.8

2.1

 

Opex relates to spatial plan $0.5M (funded from suburban shopping centre capex $0.3M) and district plan carried forward $0.3M; capex relates to funds carried over to complete the RiverLink Phase 1 $0.6M, property purchases $1.8M and Naenae spatial plan $0.06M

Roads and Accessways

(0.0)

0.0

 

Adjustment to roading carryovers, including subsidies, to allow for various project progress and delays and final actual spend for 2019/20, resulting in a minor net variation.

Three Waters

 

(0.2)

0.3

Adjustment to Three Waters carryovers to allow for various project delays, largely due to COVID-19. Holborn Booster Pump is being carried forward to 2022/23.

City Leadership

0.2

 

Commencement of the Homelessness Strategy was delayed, therefore carrying over the remaining portion, opex $0.2M

Total

1.2

2.3

0.5

 

 

Consultation

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

Legal Considerations

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

Financial Considerations

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

Appendices

No.

Title

Page

1

Appendix 1: Update and revision of the carryovers  from 201920 to 202021

279

 

 

Author: Philip Benseman

Budgeting and Reporting Manager

 

 

Author: Jenny Livschitz

Chief Financial Officer

 

 

Approved By: Anna Welanyk

Director Transformation and Resources

 


Attachment 1

Appendix 1: Update and revision of the carryovers  from 201920 to 202021

 


 


 


 


 


                                                                                     287                                               17 November 2020

Policy, Finance and Strategy Committee

29 October 2020

 

 

 

File: (20/1342)

 

 

 

Report no: PFSC2020/6/288

 

Draft Hutt City Council COVID 19 Recovery Plan

 

Purpose of Report

1.    To provide a summary of the attached Hutt City Council’s (HCC) Covid-19 Recovery Plan (the Plan) attached as appendix 1 to the report and information on how recovery initiatives are being funded.

Recommendations

That the Committee recommends that Council:

 

(i)    notes that this Recovery Plan has been approved by the Corporate Leadership Team;

 

(ii)   agrees to adopt the HCC Covid-19 Recovery Plan (attached as appendix 1 to the report;

 

(iii)  notes that initiatives already underway have been enabled by reprioritising existing budgets and resource, including $127K allocated through the 20/21 Community Funding round in September to groups responding to Covid-19 impacts;

 

(iv) notes that in September $42K was also allocated to a partnership with Common Unity to lead work on creating a resilient and sustainable local food system;

 

(v)  notes that a further $257,556 will be allocated to community initiatives responding to Covid-19 and aligned to the principles of a circular economy, and that this will be approved by the Chief Executive in consultation with the Mayor and Committee Chairs, as per Covid-19 protocols; and

 

(vi) notes this Mana Whenua, community and business leaders and social and community groups have been engaged in the development of this plan and that further feedback on the strategic approaches proposed will be sought as part of engagement for Long Term Plan (LTP) 2021/31.

Background

2.    HCC’s Covid-19 Recovery Plan (the Plan) guides how Council will work with the community, central government and other regional Councils to enable the City to recover from the impacts of the pandemic.

3.    While the Covid-19 health related impacts on our city have been minimal to date, other significant economic and social impacts are being felt by businesses, Iwi, families and community groups. These impacts are expected to continue to be present for up to five years, with many expected to initially get worse.

4.    As we have seen, Recovery can be interrupted by resurgence so it is unlikely to be linear.  While some impacts are known now, additional impacts may emerge over time so our response will need to continue to be agile.

5.    This plan has been developed through workshops and discussion with mana whenua, community and business leaders and social and community groups. This draft has been approved by the Corporate Leadership Team (CLT), and once adopted by Council will be finalised and published on Council’s website.

6.    A Regional Leadership Group was established in September to guide and support community resurgence planning. Council’s Chief Executive Jo Miller is part of this group. A resurgence plan for Lower Hutt is currently being developed in line with the regional approach.

Discussion

7.    The Plan has two goals:

i.    Our people thrive - people are healthy, housed and safe; communities are connected and resilient; everyone has access to support services, education and employment opportunities; and

 

ii.   Our economy thrives - businesses survive, adapt to change, find new opportunities and Lower Hutt has an even stronger local economy.

 

8.    The Plan outlines the 3 approaches we are taking:

i.    specific Recovery initiatives already underway or planned;

ii.   how Council will pivot resource to connect our residents and businesses with funding and support available from other sources, especially central government;

iii.  strategic themes which will inform thinking and investment for the 2021/31 Long Term Plan. These are:

·    Circular economy;

·    Food resilience;

·    Business and employment;

·    Housing and homelessness;

·    Connected and resilient communities; and

·    High trust relationships

9.    In September, Council agreed to target $127K of the 1920/21 Community Funding allocation to groups responding to COVID impacts. Additionally, $42K was allocated from Council’s Kakano Fund to Common Unity to lead work on creating a resilient and sustainable local food system.

10.  In September Council also agreed to the following funds to be applied to other initiatives in the Recovery Plan.

i.   $191K retained from the 2020/21 Community Funding allocation; and

ii.  Any money remaining in the Community Resilience Fund (currently $66,556), which would then be closed.

11.  The Plan proposes using these funds to partner with community on pilot initiatives which target COVID impacts and align with a circular economy.

12.  A process for this is being developed based on current COVID funding protocols to ensure funds can continue to be allocated in a timely manner. As such, decisions will be approved by the Chief Executive in consultation with the Mayor and committee Chairs.

13.  Councils in the region have worked together to develop a set of indicators to provide a snapshot of recovery in areas impacted by Covid-19, based on the community well-beings. These measures use pre-existing datasets that are readily available to create a high-level picture of what is happening at a national, regional and local level. 

14.  This dashboard assumes that the region is now on the road to recovery from Covid-19. However further outbreaks are a very real possibility, so it includes two indicators that measure the rates of Covid infection and testing. Further relevant measures will be developed as part of the LTP 2021/31.

Options

15.  Councillors have the option to adopt the plan, or to request changes to the plan.

Climate Change Impact and Considerations

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

17.  The Plan proposes further investigation of the principles of a circular economy in Council’s strategic considerations for the LTP 2021/31. This is a new economic model that aims to equally benefit businesses, society, and the environment. It aims to gradually decouple economic activity from the consumption of finite resources, and design waste out of the system.

18.  It proposes allocating funding to partnerships with community on pilot initiatives which target Covid-19 impacts and align with a circular economy.

Consultation

19.  This Plan has been developed through workshops and discussion with mana whenua, community and business leaders and social and community groups. Further feedback on the strategic approaches outlined will be sought as part of engagement for LTP 2021/31.

Legal Considerations

20.  There are no legal matters to be considered.

Financial Considerations

There are no further financial considerations.   

Appendices

No.

Title

Page

1

Appendix 1:DRAFT HCC COVID 19 RECOVERY PLAN

288

2

Appendix 2: Recovery Plan Appendix 1 - Summary of Response and Recovery initiatives A3

301

3

Appendix 3: Wellington Region Covid Recovery Dashboard October 2020

304

 

 

Author: Andrea Blackshaw

Director Neighbourhoods and Communities

 

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1:DRAFT HCC COVID 19 RECOVERY PLAN

 

 

 

 

Draft HCC COVID 19 Recovery Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

PURPOSE

To outline the current and expected impacts of the COVID-19 pandemic on Lower Hutt and agree our response, including a set of proposed recovery initiatives.

 

INTRO

Our vision is for Lower Hutt to be a city where everyone thrives. The COVID-19 pandemic currently  impacting the world, the nation and our community is challenging us to think differently about what that means, and what will be required for our city to thrive in this ‘new normal’ environment.

We can all be proud of the way our community has responded so far. Everyone has played their part to limit the health impacts of the pandemic and support our people through the nationwide lockdown and various phases of response. 

At the same time, we recognise that the situation is fluid and that we will likely need to manage through response level changes over the coming months and possibly years.  While there will continue to be a strong focus on the challenges presented by the pandemic, there must also be a focus on the opportunity to re-think and re-set the way we do things. The impacts of the pandemic may be felt for decades and the steps we take now shape the future for our city and our whānau, especially tamariki.

While the COVID-19 health related impacts on our city have been minimal to date, other significant economic and social impacts are being felt by businesses, iwi, families and community groups. These impacts are expected to continue to be present for up to five years, with many expected to initially get worse.

Our Recovery Plan has two main areas of focus – the wellbeing of our people, especially those who are most vulnerable to the health and social impacts of COVID-19, and the recovery of our economy.    A separate plan is guiding Council’s recovery as a business, with a focus on the transformation and sustainability of our services and the resilience and wellbeing of our workforce.

This Recovery plan has been developed through workshops and discussion with mana whenua, community and business leaders and social and community groups.

While our vision for a thriving city has not changed, our approach, priorities and investment may need to. Some changes have already been made. This plan includes more immediate initiatives, and thinking which feeds into the development of our Long Term Plan 2021-31, our 30 year city vision and our District Plan which are all currently being developed. Those plans are where our Recovery will continue to be shaped in the future.

This plan includes an initial set of regional Recovery Indicators. This will be further developed to include medium and longer-term impacts of the pandemic.

 

 

 

 

COVID-19 IMPACTS ON LOWER HUTT

 

Following is a summary of how COVID 19 has impacted the business and resident community of Lower Hutt to date.

Economic Impacts

·    The Hutt City economy contracted by 11% pa in the June 2020 quarter – the first time the city’s economy has contracted since 2014 due to the COVID-19 level 3 and level 4 lockdown restrictions.

·    The contraction in the city’s economy has resulted in a rise of 8.7% in the number of Jobseeker Support recipients to just over 4,336 in the June 2020 year – the highest since our series began in 2010. However, the rise of 8.7% is lower than the 19% rise nationally and reflects the fact that Lower Hutt City’s economy is reasonably sheltered from the worst effects of COVID-19 on sectors such as tourism and international education.

·    The construction sector is well positioned for the coming year if recent consent numbers translate into building work. Residential consents grew 9.8% in the June 2020 year on the back of very strong September 2019 and December 2019 quarters, and non-residential consents rose 70% in the June 2020 year.

·    Electronic card spending on retail purchases fell 15% in the June quarter as the lockdown constrained consumers’ ability to spend during the level 3 and 4 restrictions. Consumer spending has recovered to pre-COVID-19 levels during the month of July. Local cardholder spending increased by 1.52m or 1.3% during the month despite consumer confidence (ANZ-Roy Morgan Confidence Index) at a national level falling during this period.

·    Those most at risk of losing their jobs in Lower Hutt are those working in the retail, food and accommodation, construction and manufacturing industries.

·    Within these industries those most likely to have lost their jobs earn a low to medium income and as a result are more likely to rent rather than own their home compounding the impact.

·    Lower Hutt businesses most at risk of closing are small-to-medium businesses (less than 30 employees) in the retail, food and accommodation, and construction industries.

 

 

 

 

 

 

 

 

 


COVID-19 Local Economic Insights


The Infometrics COVID-19 Local Economic Insight dashboard provides insights on the performance of the Hutt City economy during the COVID-19 crisis. Key insights include:

·    Jobseeker Support benefits and COVID Income Relief Payments (CIRP) continue to increase in Lower Hutt since the end of the March quarter. As at the end of August 2020, 5,405 Jobseeker and CIRP payments were made to Hutt City recipients. This is an increase of 1,145 or 27% since the end of March 2020.

·    Heavy traffic flows which are a good indicator of economic performance have decreased by 21% since in the month from the end of July to the end of August. Heavy traffic flows are now 15% below their 1 March 2020 peak.

·    Accommodation Supplement recipients as at the 1 August have increased by 468 or 7% since 1 March 2020.

Social Impacts

·    The biggest social and financial impacts during lockdown have been felt be those who have lost their jobs and owners of businesses that have closed.

·    Job loss figures for the Wellington region indicate that the 15– 24 year age group had the highest percentage of job losses of all age groups.

·    At a regional level, the largest increase in jobseeker benefits by ethnic group was by NZ Europeans with an increase of 1,328 or a 38% in the June 2020 quarter when compared with the March quarter. The second and third largest ethnic group increases were Pacific Peoples increasing by 238 (24%) and Māori by 746 (20%) during this time.

·    The social impacts experienced in Lower Hutt during the lockdown period have included an increase in the number of people using foodbanks, increased domestic violence and abuse and, an increase in the number of people who are homeless.

·    The number of Lower Hutt families on the social housing register has increased from 469 at the end of Dec 2019 to 584 at the end of June 2020.

·    Foodbanks recorded a 40 percent increase in demand over the lock down period.

·    In the period after lockdown additional financial impacts are expected to be felt by those aged over 60 who have lost their jobs, owners of small to medium sized businesses, and commercial landlords.

·    Social isolation was an issue for many elderly people during various stages of lockdown.

·    Partnerships between agencies, including Council, will be needed to assist families with the ongoing social impacts they will face during the recovery phase.

·    The lockdown period has increased community spirit, innovation and collaboration which can be further built in the recovery phase

Health Impacts

·    There have been 22 confirmed cases of COVID-19 in the Hutt Valley DHB; all have recovered

·    In the Hutt Valley DHB area around 58 people in every 1,000 have been tested for Covid-19

·    Older people and people with some existing health conditions have a higher risk of more severe symptoms if they contract COVID-19. These underlying medical conditions include chronic respiratory disease, heart conditions, hypertension, diabetes, kidney and liver disease. Māori and Pasifika and those in low income communities generally have higher rates of the underlying conditions and increased risk of infection as well as difficulty accessing health care (e.g. due to distance from care, difficulties with transport or childcare, or lack of suitable services).

·    The psychosocial and mental health impacts of emergency events have greater impact on a proportion of people who are at risk of developing more severe and long-lasting mental distress, such as depression, post-traumatic stress, anxiety and addiction harm. The psychosocial impacts for Māori arising from public health measures, such as self-isolation, physical distancing, and general societal anxiety, is also likely to exacerbate existing mental health conditions and place increased pressure on the wider whānau unit3.

·    The Health Promotion Agency conducted a survey of alcohol, tobacco and gambling use during the COVID-19 Level 4 lockdown. While findings are specific to Level 4 Lockdown there is anecdotal evidence that the ongoing impact of pandemic disrupted life is still affecting some. While there are instances of reduction, there were some reported increases:

One in five report drinking more than usual. Increased drinking is more prevalent among 25-49 year olds. The majority of those who are drinking more say it is to help them relax or switch off.

A quarter have been smoking more than usual during lockdown. This is higher among those who typically smoke daily (28% smoking more than usual).

9% report increasing their gambling since lockdown. A higher proportion of Māori gamblers (15%) and young gamblers aged 18-24 years (22%) report increased gambling during lockdown. 8% of gamblers have gambled online for the first time since lockdown and an additional 12% are gambling online more than usual since lockdown.

·    Regional Public Health has reported a spike in rheumatic fever cases in the Hutt Valley over recent months. Close-contact infections like rheumatic fever is associated with crowded living conditions and lower socioeconomic status.

 

THE RECOVERY PROCESS

 

The CDEM Act 2002 requires local authorities to plan for functioning during and after an emergency and be capable of continuing to function to the fullest extent possible (albeit at a reduced level).

 

It defines recovery as: “the coordinated efforts and processes used to bring about the immediate, medium and long-term holistic regeneration and enhancement of a community following an emergency.” In particular:

 

•     minimise the escalation of the consequences of the disaster

•     support social, cultural and physical well-being of individuals and communities

•     reduce future exposure to hazards and their associate risks – i.e. build resilience

•     take opportunities to regenerate and enhance communities in ways that will meet future needs across the social, economic, cultural, natural and built environments

 

Hutt City Council’s role is to lead the recovery process for Lower Hutt, in alignment and co-ordination the regional and national approach. 

  

As we have seen, Recovery can be interrupted by resurgence so it is unlikely to be linear. And some of the eventual impacts may not have emerged yet. So we need to be agile and able to move as our environment changes, while keeping our eye on the eventual goal – a city where everyone thrives.

 

ROLE OF CENTRAL GOVERNMENT AND REGIONAL RECOVERY

 

Central Government has rolled out a wide range of immediate and longer term initiatives in response to the Pandemic. These are detailed in the table (Appendix 1) which also includes Council’s response actions and recovery initiatives.

 

While the initial response to the Pandemic was local (Lower Hutt-led), a Regional Leadership Group was established in September to guide and support community resurgence planning and response activity. This is in response to the likely regional nature of future response level changes.

 

While there is no regional recovery plan, Councils in our region have developed and agreed a range of initiatives that would benefit from a regional approach, and also a regional dashboard tracking a number of indicators being used to measure aspects of community wellbeing. These are attached as Appendix 2 and 3.

 

Our plan has been developed in the following way:

RECOVERY GOALS

 

1.    Our people thrive - people are healthy, housed and safe; communities are connected and resilient; everyone has access to support services, education and employment opportunities.

2.    Our economy thrives - businesses survive, adapt to change, find new opportunities and Lower Hutt has an even stronger local economy.

 

RECOVERY APPROACH AND THEMES

The biggest social challenges to emerge from the pandemic so far are not new, but have been exacerbated. This included mental health, unemployment, domestic violence, child poverty, household overcrowding, food insecurity and homelessness. The impact is of course worse for those already feeling these social impacts, which is why improving equity should continue to be a focus of our work ongoing. 

 

What the pandemic has done is provide an opportunity to think differently about the way we approach these and other challenges. This is critically important given Council’s current financial situation, including the need for significant investment in infrastructure in the coming years, means there will be limited money for significant new initiatives.

 

As such, our Recovery Plan focuses on themes to inform our strategic direction and how we can do things differently. It includes some new initiatives, but more significantly it provides themes to help shape our 2021/23 Long Term Plan. This ‘re-set’ will enable us to recover from the pandemic by using existing funding differently to both address issues the pandemic has created or exacerbated and make our economy and community more resilient to future shocks.

 

CIRCULAR ECONOMY

 

Prior to the pandemic, a number of countries were starting to promote the benefits of a circular economy – a new economic model that benefits businesses, society, and the environment. It aims to gradually decouple economic activity from the consumption of finite resources, and design waste out of the system. It involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible so the life cycle is extended.

 

In many ways COVID accelerated this momentum, as people and businesses found less resource intensive ways to go about daily life.  For example:

 

·    The move from traditional bricks and mortar shops to e-commerce, and the digitisation of many practices including on-line learning, remote working and meetings and remote health services.

·    Reconsideration of the need to travel, for business when meetings can be done remotely, and for personal trips, when there are local offerings.

·    The way we moved around the city with a lot more walking and cycling, and changes to our urban structures to support that

·    Less consumption – with businesses closed people did more home cooking and crafts, mending, sharing, swapping, maintenance, recycling and re-using

·    Buying local – either because usual supply changes were disrupted, people were working from home or intentionally to support local businesses

 

There are disadvantages to some of these things also – less human contact, the challenge of home schooling, other businesses losing traditional client-bases – and these would need to be balanced. However COVID has shown us that changing long-standing habits is possible. A circular economy can also create jobs, especially medium-low skilled roles which are expected to reduce with greater automation.

 

Many of these themes are also consistent with the concept of 20 minute cities/communities, in which people are able to meet most of their needs within a short walk or bike ride from their home. This reconnects people with their local areas, rather than having centralised city life and services. The can also have significant gains for sustainability and improve equity.

 

ACTION: 

Wellington Region’s Procurement for Impact Project

This joint-Council project, being led by the ​GovTech​ Accelerator Creative HQ, explores how we could co-create COVID recovery opportunities through procurement with a social impact lens. When a procurement purchase is made regionally, the money stays in the community longer, with flow-on benefits to local people and businesses. This multiplies the impact of the purchase. The project is exploring the opportunity to better coordinate, remove duplication of effort and leverage the collective spend of the region for positive, lasting social and economic impacts.

 

Social procurement

Hutt City Council has already started to adopt social procurement principles meaning all our spending seeks to achieve wider outcomes. These outcomes will now be shaped by COVID impacts, in particular supporting local businesses and creating local employment and training opportunities.

 

Central Government COVID response and recovery projects

As part of COVID recovery, central government has co-funded two key local projects to create jobs and stimulate the economy. Naenae Pool has received $27M and the Eastern Bays Shared Path has received $15M. These projects, and additionally the Riverlink project, represent a significant opportunity to involve local businesses and employ local people, including apprentices. These requirements are being built into all contracts.

 

 

FUTURE ACTION:

Further investigate the concepts of circular economy and 20 minute cities to inform strategy.

 

Use remaining Community Funding allocation to partner with community on initiatives which align with these themes and respond to COVID impacts (recycling and re-using, less consumption, buying local, re-connecting people with their local area, creating jobs in the green economy). This will also be considered as part of criteria in the wider review of Community Funding.

 

 

FOOD RESILIENCE

The COVID-19 pandemic presented unprecedented challenge to our emergency response system and processes with unique challenges including:

·    an infectious disease as opposed to common civil emergencies such as floods, storm damage, earthquakes

·    a four week lockdown and social distancing

·    a volunteer base that was largely required to quarantine

·    financial impact on those who were already struggling and the emergence of newly vulnerable citizens who up until then had been managing

Of particular concern, our system was stretched to meet the most basic of human needs – access to food. The pandemic highlighted existing inequities in access to food and further exacerbated them.

A survey of emergency food providers and social services involved in the local response was carried out by Council’s Projects and Relationships team and Healthy Families Hutt Valley. It found they were initially overwhelmed by multiple factors including huge demand, the closing down of facilities, the loss of volunteers (particularly those over 70), lack of information and resource to meet the need.

Some had to abandon facilities and technology infrastructure and operate from further away or homes, sheds and garages and access to community gardens was restricted during lockdown.

Covid-19 exposed the fragility of the existing Hutt Valley system for meeting food needs.  There is an opportunity to work together to address existing food insecurity in our communities and build a more resilient and equitable food system.

ACTION

Resilient and sustainable food system

We are partnering with local stakeholders to develop a plan that mobilises efforts to create a resilient and sustainable food system. This work is underway with $42K allocated from the Community Funding Kakano Fund to support Common Unity to lead this work. Additionally $127K has been allocated through the 20/21 Community Funding Mauri Ora Fund to other groups who will be involved in this work. Ongoing this work will be supported by Healthy Families Hutt Valley and Council’s wider Neighbourhoods and Communities team a part of our approach for LTP 2021-31.

 

BUSINESS AND EMPLOYMENT 

As well as emergency response, Council has played a key role in supporting our community and different sectors within it over this time, in partnership with the Chamber of Commerce. Arguably, the role that has been most valued and impactful has been when we have been a connector and ‘interpreter’. This is particularly true in our business response. Central government provided a range of support for local employers, however many local businesses needed support to navigate and access the help available. This was also the case for other community and sport groups trying to access relief funds. This required Council staff to pivot from their BAU roles, many of which focused on delivery of our own initiatives.

In the Recovery phase, central government is continuing to provide support for many sectors, and Council’s role as a connector will continue to be crucial to our community’s ability to uptake these.

ACTION

Employment and training

 

$95K of the 20/21 Community Funding Mauri Ora Fund was allocated to groups responding to COVID impact on youth employment.

 

Council in partnership with Chamber of Commerce and Upper Hutt City Council has accessed funding from Ministry of Education to run events connecting senior high school students and employers; and from MSD to employ a work broker to get young people into trades training and employment with local businesses.

 

Budget 2020 included a number of initiatives to create jobs and provide trades training and apprenticeships with a particular focus on young Maori and Pasifika. In 20/21 Council will pivot resource to ensure this opportunity is optimised for our community. Council’s role will be to connect and co-ordinate key stakeholders to develop a plan for this.

 

 

Support for businesses

Budget 2020 included a number of initiatives to support business including helping with the shift to e-commerce, decarbonisation through investments to improve energy use, and support for businesses to invest in R&D. Additionally there is ongoing support for small business through tax changes, loan schemes and business advice. In 20/21 Council has pivoted resource to continue to work with the Chamber of Commerce to help local business to access this support. To date over $500K has been allocated to local businesses to access support to address COVID related impacts on their business.

 

HOUSING AND HOMELESSNESS

The pandemic has exacerbated Lower Hutt’s challenges around housing and homelessness. There has been an increase in the number of people who are homeless and in increase in the number of Lower Hutt families on the social housing register. Council has work underway to help address these issues and this will be stepped up as part of the LTP 2021/31.

ACTION

Homelessness

 Council currently provides funding for three actions as part of the response to homelessness under the Lower Hutt Homelessness Plan. This is aimed at preventing homelessness, improving the supply of suitable accommodation and improving understanding of homelessness. As part of LTP 2021/31 this will be expanded to fund access to settled accommodation, access to legal advice and advocacy and a homelessness prevention programme. This will bring overall investment in the programme to $560K pa for the life of the LTP.

 

 

Housing

Council has established a new housing partnership with Iwi as part of the  of Te Maihi o te Whare Māori which sets out a framework for building and delivering warm, safe and affordable homes to those Lower Hutt households in desperate need of a home.

 

Council has also re-set the Statement of Intent for Urban Plus Ltd to focus on improving provision for needs across the housing continuum.

 

Council continues to work with other Wellington region and Horowhenua area councils, iwi and central government agencies on the Wellington Regional Growth Framework which is a coordinated effort to address issues relating to future population growth including housing.

 

 

CONNECTED AND RESILIENT COMMUNITIES

Research shows that communities that are connected, trusting and cohesive survive and recover better than those that are less well-connected. Social connections enable people to help each other and are literal lifelines for the disadvantaged, which during COVID included people who had earlier and greater restrictions because of health or age, or were not digitally connected.

One of the positives reported from the lockdown was people connecting with neighbours, setting up local support networks, helping (eg: shopping) and sharing resources. Many people have expressed a desire for this to continue.

ACTION

ABCD and Neighbourhood Co-ordination

In shaping our approach for the 2021/31 LTP, Council’s Neighbourhoods and Communities team is re-focusing its approach on ABCD (asset-based community development) and Neighbourhood Co-ordination.  We plan to work in and with communities to identify and build on existing strengths and create self-sustaining networks with a focus on connectedness, safety, community participation, resilience and wellbeing. This includes work to increase the number of Neighbourhood Support networks across our communities.

 

HIGH TRUST RELATIONSHIPS

The national and local welfare response was slow to roll out and many groups in our community anticipated needs and responded well before they were resourced or supported to do so. When the national approach did roll out, many groups who had existing clients in the community found the process too complex and restrictive, given the agile way they were working.

There are also parts of the community who don’t trust mainstream organisations and will only engage and give information to a trusted person. We found many did not want to call the national 0800 helpline and as a result there were pockets on the community where that help was not getting through. 

For example, Te Rūnanganui o te Āti Awa (Te Rūnanga) and Kōkiri Marae  continued as an essential service and was able to quickly adapt its focus and methods to work within pandemic constraints, meet rapidly changing needs and capitalise on opportunities.  Te Rūnanga provided (and delivered on behalf of other providers) food, food vouchers, hygiene packs (8000) and advice, as well as continuing with its Tamariki Ora checks on mothers and tamariki and breast feeding support.

A key learning for them was the opportunity this provided to reconnect with whānau who they had lost regular contact with and rebuild trusted relationships. Another was the opportunity to develop collaborative networks with other iwi providers to connect and deliver integrated services to whānau.

High Trust funding partnerships recognise the trust built up over time between organisations, and use simple but effective contracting processes to support and capitalise on the strengths and benefits of this. They focus more on the whanau being supported and less on compliance and ticking boxes. They have less detailed funding agreements, provide upfront funding and usually require reporting only once a year.

The value of trusted relationships was also evident in our business response, as referenced earlier under ‘Business and Employment’.

 

 

ACTION

Local welfare response

In response to these learnings, Council developed a Local Welfare Response for resurgence events which would see key local welfare groups supported and funded earlier, potentially ahead of a shift in levels. In September we hosted a hui with officials from DPMC and MSD to share our learnings to inform national policy development around food security. The new regional response model is also expected to improve the welfare response.

 

FUTURE ACTION

High Trust Partnerships

Work towards more high trust, lower compliance partnerships which enable groups such as Te Rūnanga and Kōkiri to work in more adaptive and flexible ways. The re-setting of MoUs with local Māori and Pasifika groups provides an opportunity to explore this.

 

 

MEASURING OUR PROGRESS

Councils in the region have worked together to develop a set of indicators to provide a snapshot of recovery in areas impacted by COVID-19, based on the community well-beings. (Appendix 2). These measures use pre-existing datasets that are readily available to create a high-level picture of what is happening at a national, regional and local level.  This dashboard assumes that the region is now on the road to recovery from COVID 19. However further outbreaks are a very real and present possibility, so it includes two indicators that measure the rates of COVID infection and testing. 

Further relevant measures will be developed as part of the LTP 2021/31.

COMMUNITY ENGAGEMENT

A number of community groups have been involved in discussions to create this plan. Further feedback on the approaches outlined will be sought as part of engagement for LTP 2021/31.


Attachment 2

Appendix 2: Recovery Plan Appendix 1 - Summary of Response and Recovery initiatives A3

 

 

Sector

What impacts have been, are being or may be experienced

Examples of central government initiatives

 

Council Response and Recovery initiatives

HCC rate payers and service users

Financial pressure due to job losses, reduced income, loss of business

 

Extra support/time needed to access usual services

 

Social isolation due to inability to attend events and activities

 

RESPOND

Rates:

•     Proposed average rates rise of 7.9% reduced to 3.8% with a one-year emergency budget prepared for consideration by Council on 7 May 2020.

•     A revised rates postponement policy. The new policy extends to businesses with a capital value of up to $1.5m. Events like COVID-19 are included in the policy.

•     New rates payment arrangements for those experiencing financial hardship. Payment term extended over a longer period with no rates penalties.

•     Advocate for national initiative to defer the application of recent general property revaluations to rates to at least the 2021/22 financial year.

•     Advocate for extension of the existing rates rebate scheme to a greater number of households, particularly those that can demonstrate loss of income as a result of COVID-19.

Services:

•     No parking charges for the duration of the lockdown.

•     No library fines, extensions re library books for the duration of the lockdown and into Alert Level 3. An online membership service launched.

•     Online payment of rates promoted and communications with ratepayers who pay in cash or cheques to move to online. 2,643 letters were sent out and we have 226 people to date who have moved to direct debits.

•     Communicating with all stakeholders to encourage online applications and payments for consent applications.

•     Extending due dates for food licencing fees.

•     Extending Contact Centre service through extended hours and a local service over weekends when needed.

•     Partial payment of consenting fees. This allows applicants to pay in smaller instalments so they can maintain cash flow.

•     Apply a leniency approach to resource consent and building consent enforcement, whilst maintaining safety.

•     Virtual events, activities and resources for the community through Hutt@Heart and the HCC Facebook page.

•     Brought forward investment in IT to enable online services to be activated so that council business can continue and staff can work from home. This includes the contact centre working fully online.

 

 

Business community

Drop in revenue and threat to business viability

 

Disrupted supply chains

 

Pressure to/cost of move online

 

Customer uncertainty and changes in demand

 

Staff redundancies

 

Less able to rely on immigration skill set

 

Additional costs to comply with alert level requirements

 

For sole traders and small businesses (under 5-10 employees),  this was the ‘last straw’ and cannot face risk of personal financial future

 

 

 

 

 

 

Wage subsidy and extension

Business finance loan and guarantee scheme

Tax relief for SMEs and business cash flow scheme extension

Mortgage holiday scheme

Support for companies facing insolvency

Essential Workers Leave Scheme

Redeployment of workers support

Regional Business Partner (RBP) Network Support

Shovel ready projects (Naenae Pool, Eastern Bays Shared Pathway)

Fast tracking resource consents

Support for spefic industries and sectors – eg: avaiation, construction, exporters and air freight, health, GPs and pharmacies, banks.

Support for Maori Businesses

 

Budget 2020 - intiatives to support business including helping with the shift to e-commerce, decarbonisation through investments to improve energy use, and support for businesses to invest in R&D. Additionally support for small business through tax changes, loan schemes and business advice.

RESPOND

The Hutt Valley COVID-19 Support Team provided an extensive support programme during the lockdown including:

•     Created a website with COVID-19 support information and advice

•     Personal one on one support to hundreds of businesses enabling them to access ‘essential service permissions’, wage subsidies, the tax loss carry back scheme, capability vouchers, importing information and all other government support services. To date over $500K has been allocated to local businesses to access support to address Covid 19 related impacts on their business.

•     Supported numerous ‘essential services’ to keep functioning including facilitating supply lines

•     More than 600 outbound phone calls to business, 60,000 emails, 30 livestreams with 12,000+ views delivered via Facebook, YouTube and websites to businesses

•     Surveyed the business community providing feedback to 10+ government agencies.

 

RECOVER

 

•     Resource pivoted in 20/21 to continue to work with the Chamber of Commerce to help local business to access ongoing central government and other support.

•     Wellington Region’s Procurement for Impact Project

•     Social procurement for significant shovel-ready investment projects to create local opportunities for local business.

•     Council in partnership with Chamber of Commerce and Upper Hutt City Council is accessing funding from Ministry of Education to run events connecting senior high school students and employers; and from MSD to employ a work broker to get young people into trades training and employment with local businesses.

 

People

 

Those with underlying medical conditions

 

Those over 70 or in retirement villages whose movements/access was restricted

 

Increased unemployment (esp Maori, Pacific, youth)

 

Financial pressure - unable to pay bills/rent

 

Increased family violence

 

Potential decrease in house values

Mental health impacts

 

More working from home and more home at time with family lead to increased wellbeing for some, decreased wellbeing for others

 

Mortgage holiday scheme

Residential rent freeze and tenancy termination restrictions

Extensions on regulatory timeframes for mortgage and rent breaches

Income relief payment

Social services finance package

Caring for Communities

Winter Energy payment increase

Innovating Streets projects (Jackson Street and Knights Road)

Additional $8M funding for family violence services

Consumer travel reimbursement scheme

 

 

Budget 2020

Initiatives to create jobs and provide trades training and apprenticeships with a particular focus on young Maori and Pasifika.

 

New Zealand Libraries Partnership Programme – supporting our libraries to support community recovery through provision of two specialist librarian roles for 1 year.

 

Investment in areas that are social determinants of mental health and suicide (including poverty, domestic violence and unemployment)

 

RESPOND:

·    EOC facilitated $125,389 grants to local social services organisations for emergency food and other essential supplies

·    Contact Centre answered calls to national hotline, and a pool of staff provided welfare support over the phone for those with more complex needs

·    Staff (Team Manaakitanga) worked remotely to call Lower Hutt-based MSD clients who are aged over 70 and households to ensure their welfare needs are being met.

·    Council staff and vehicles were deployed (Team Manaakitanga) to support local organisations to pick up and deliver essential supplies across the city.

·    Council vehicles were provided to the local Runanga (Te Runanganui o Te Atiawa ki te Upoko o Te ika a Maui) for the delivery of food and sanitation packages.

·    Worked with emergency food providers to co-ordinate services and provided Treadwell Street Hall for storage an packing of food parcels

·    Provided additional on-line content, services and engagement to help people stay connected and avoid social isolation

·    Partnership with Common Unity community sewers to provide re-usable masks for Council staff, and free masks for children in the community

 

RECOVER:

 

·    $42K allocated from the Community Funding Kakano Fund to Common Unity to contribute to the development of a Hutt Valley Food Resilience Network which will increase our food resilience overall, and in future emergency situations. 

·    $127K of the 20/21 Community Funding Mauri Ora Fund allocated to groups responding to COVID impact on access to food.

·    $50K of the 20/21 Community Funding Mauri Ora Fund allocated to groups responding to COVID impact on social isolation.

 

Employment and training

 

·    $95K of the 20/21 Community Funding Mauri Ora Fund was allocated to groups responding to COVID impact on youth employment.

·    Resource pivoted in 20/21 to connect and co-ordinate key stakeholders and develop a plan to optimise training, apprenticeship and employment opportunities for young people from central government funding initiatives

 

Homelessness and housing

 

·    Extension of the Lower Hutt Homelessness Plan - overall investment in the programme to $560K pa for the life of the LTP 2021/31.

·    New housing partnership with Iwi as part of the  of Te Maihi o te Whare Māori to deliver warm, safe and affordable homes

·    Re-set the Statement of Intent for Urban Plus Ltd to focus on improving provision for needs across the housing continuum.

·    Council continues to work with other Wellington region and Horowhenua area councils; iwi and central government agencies on the Wellington Regional Growth Framework which is a coordinated effort to address issues relating to future population growth including housing.

 

Tamariki and rangatahi

(Additional to impacts captured above)

 

Education/training disruption

Mental health

 

Digital support for students

School lunch programme extension

 

Budget 2020 – mental health support for schools initiative

RESPOND

Educational content provided on-line through libraries, museums etc

 

RECOVER

Ongoing support to bridge the digital divide through Council’s community facilities and programmes.

Non-government orgs

 

High demand for social support

 

Loss of revenue from grants, membership subscriptions etc

 

Loss of volunteers through lock-down

 

$27 million for NGOs and community groups providing essential services

Creative New Zealand Emergency Response Package

Sport and recreation relief package and roll-over of current funding

 

 

RESPOND

Mayor and CE donated part of salary of food and other charities

Provided support through the COVID Community Relief Fund ($100K)

Provided support the advice through the Sport and Recreation Relief package ($70K)

Rent relief for two months for community organisations who are our tenants or have buildings on reserve land

 

RECOVER

Review of community funding underway, with Recovery Plan principles considered in future funding criteria

Future focus of Sport and Rec team on ABCD, supporting local groups to recover and thrive

Communities where an existing disadvantage has been exacerbated by COVID 19

 

(Additional to impacts captured above)

Whānau Māori Community and Mārae Package

Māori Health and Whānau Ora response

$17 million Pacific Response Package

 

RESPOND

Council staff delivered Whanau Activity Packages to families involved in Family Harm Incidents  

 

 

 


Attachment 3

Appendix 3: Wellington Region Covid Recovery Dashboard October 2020

 


 


                                                                                     309                                               17 November 2020

Policy, Finance and Strategy Committee

09 November 2020

 

 

 

File: (20/1314)

 

 

 

 

Report no: PFSC2020/6/256

 

Proposed Solid Waste and Minimisation Bylaw

 

Purpose of Report

1.   To report back to Council the deliberations of the Hearing Subcommittee on the proposed Solid Waste and Minimisation Bylaw 2020; and to recommend to Council the adoption of the Solid Waste and Minimisation Bylaw 2020.

Recommendations

That the Committee recommends that Council adopts the proposed Solid Waste Bylaw with changes as identified in Appendix 2 as attached to the report.   

Background

2.    On 5 May 2020, the Policy, Finance and Strategy Committee agreed to undertake a Special Consultative Procedure with respect to the Proposed Solid Waste and Minimisation Bylaw (the Proposed Bylaw). 

3.    The proposed bylaw is being developed in close cooperation with other councils in the Wellington region, in order to ensure regional consistency and alignment with the regional action under the Wellington Region Waste Management and Minimisation Plan 2017-23. In order to achieve this, most Councils in the Wellington Region consulted on their proposed bylaw using a regionally developed template.

4.    Hutt City Council’s submissions period ran from 4 August to 25 September. There were 39 submissions received and no one wanted to speak to their submission.  

5.    Submitters responded to eight questions relating to each part of the proposed bylaw.  A strong majority of submitters supported each part of the proposed bylaw, albeit submitters requesting strengthening the bylaw in regard to event management in particular. 

6.    Officers reported to the extraordinary Proposed Waste Management and Minimisation Bylaw Hearings Subcommittee on 22 October (refer HSC2020/6/230) with a number of relatively minor potential changes. Officers also noted that regarding some issues, such as the threshold limit for significant events, they were still in discussions with their regional colleagues, to maximise the opportunity for retaining regional consistency of the bylaw.

Recommended changes

7.    Appendix 1 as attached to the report provides an overview of the finalised recommended changes to the bylaw, in line with the outcomes of discussions with the Bylaw Hearings Subcommittee, and the discussions with the other councils in the Wellington region.

8.    Appendix 2 as attached to the report provides a copy of the proposed bylaw, with tracked changes as outlined in Appendix 1 as attached to the report.

9.    There are some issues where no changes are recommended to the proposed bylaw, with the following commentary.

Event participation threshold

10.  In the proposed bylaw, a participation threshold of 1,000 is used to determine whether an event would be considered significantly. Officers estimate that about 30-40 events per year would be within the scope of this limit. Examples of events that would likely be captured with the 1,000 limit include the following: Ara Mai: Te Whiti Riser Night Walk, Te Ra o te Raukura, WeetBix TRY, Petone Fair, Port Road Drags, and larger school fairs.

11.  A lower limit of 500 for outdoor events was considered, but not taken forward, as this could have significant resourcing implications. While visible, waste from events tends to be a relatively minor source of waste, compared to other higher priority waste streams such as construction and demolition waste, and this is likely to divert limited waste minimisation staff resources away from higher priority projects.

Exempting not-for-profits from licensing

12.  There was a request from Earthlink Inc to exempt not-for-profit organisations from licensing, due to the resourcing implications. However, officers do not recommend exempting not-for-profits per se, as there is value in better understanding associated waste streams.

13.  In order to address their concerns, officers will work closely with Earthlink when setting up licensing requirements, to ensure they are reasonable and do not result in undue adverse effects regarding their limited resourcing.

14.  In addition, until the NZ Government amends the Waste Minimisation Act 2008, organisations collecting divertable materials (as opposed to waste) could not technically be subject to licensing. Hence, the provision for not exempting not-for-profits is future proofing the bylaw.

Regionally-consistent waste space storage calculator

15.  As part of the multi-unit development 'Waste Management and Minimisation Plan’ process, councils in the Wellington region intend to develop a regionally-consistent waste space storage calculator that will provide best practice guidance related to the requirement under 12.3 (b) to provide ‘an adequate area’ for waste-related storage.

Bylaw controls

16.  Because Council still has a rubbish bag collection and collection of recycling using crates in place until 30 June 2021, the controls proposed for the new bylaw roll over the provisions in the Refuse Collection and Disposal Bylaw 2008. In the lead up to the new service roll out, officers will come back to Council with new proposed controls in relation to the new bin service, which can be added by Council resolution.

Climate Change Impact and Considerations

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

18.  As the proposed bylaw would introduce new planning requirements regarding events, and construction and demolition waste activities, it is more likely that this would result in carbon emission reductions (e.g. by encouraging the avoidance of waste being created in the first place, or by diverting waste from landfill where feasible).   

Consultation

19.  This report is the consequence of the special consultative process undertaken to create the proposed Solid Waste and Minimisation Bylaw 2021.

Legal Considerations

20.  This report is the consequence of the special consultative process undertaken to create the proposed Solid Waste and Minimisation Bylaw 2021.

Financial Considerations

21.  As part of the development of the next Long Term Plan, work is under way to confirm the resourcing requirements regarding the assessment of waste minimisation plans, litter control and licensing.

22.  The proposed Bylaw provides for the licensing of waste collectors and waste operators.  There is a proposed two-year delay to allow the Council, along with other Councils in the Wellington region, to establish an appropriate regional system (and resourcing) to manage applications and data collected.

Appendices

No.

Title

Page

1

Appendix 1: Recommended changes to the proposed bylaw

311

2

Appendix 2: Proposed bylaw with tracked changes

315

 

 

 

Author: Graham Sewell

Principal Policy Advisor

 

 

 

Reviewed By: Wendy Moore

Head of Strategy and Planning

 

 

 

Reviewed By: Jörn Scherzer

Manager, Sustainability and Resilience

 

 

 

Approved By: Helen Oram

Director Environment and Sustainability

 


Attachment 1

Appendix 1: Recommended changes to the proposed bylaw

 


 


 


 


Attachment 2

Appendix 2: Proposed bylaw with tracked changes

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


                                                                                     356                                               17 November 2020

Policy, Finance and Strategy Committee

07 April 2020

 

 

 

File: (20/354)

 

 

 

 

Report no: PFSC2020/6/283

 

Unlicensed Public Use of Council Land - Encroachments

 

Purpose of Report

1.    The report recommends an approach to dealing with the backlog of existing unlicensed encroachments.

Recommendations

That the Committee recommends that Council:

(i)    notes that Council in November 2018 asked officers to identify all unlicensed encroachment areas, review the scale of the project in terms of number and type of encroachment and develop options for Council to consider to address the issues related to unlicensed encroachments;

(ii)   agrees that all encroachments are licensed;

(iii)  agrees that licences will not be required for garden encroachments where they meet the following criteria:

(a)   size – they are less than 10 sq metres in size; and/or

(b)   function – they are accessible and do not interfere with public use or Council access to it;

(iv) agrees a staggered approach is taken to licensing encroachments as follows:

(a)   pavement;

(b)   garage;

(c)   garden; and

(d)   drainage.

(v)  agrees that the work to license existing encroachments begins immediately starting with pavement licenses;

(vi) agrees that current encroachment license fees will apply until 30 June 2021. 

 

These are:

(a)        Garages – single $128, double $256

(b)        Garden - $115;

(c)        Drainage $57.50; and

(d)       Pavement - $57.50.

(vii)     agrees to rescind the requirement that pavement licences must be renewed every three years and;

 

(viii)    agrees to rescind the 90cm rule which makes the first 90cm of footpath freely available for businesses to use without an encroachment licence OR;

(ix)       agrees to retain the 90cm rule which makes the first 90cm of footpath freely available for businesses to use without an encroachment licence.

Considerable work has been completed to identify every encroachment in the city, categorise these and assess the effort required to address the number of unlicensed encroachments in the city in response to Council’s earlier direction.  Officers are now in a position to present options for consideration.

The current situation where only 1 in 7 encroachments is licensed means that a small number of ratepayers are licensed and paying the cost of their encroachment while a much larger group of ratepayers are gaining the benefits of an encroachment at no cost. 

 

Background

2.    At a Council workshop held in November 2018 officers were asked to complete further work to:

a.    identify unlicensed encroachment areas;

b.    review the scale of the project (effort and resources required) and develop options for Council to consider; and

c.     the matter was left on the table.

Discussion

3.    The purpose of this report is to:

·      Provide information on the current number of unlicensed encroachments (unlicensed public use of Council land);

·      Update Council regarding the development of an approach to categorise these for the purpose of licensing;

·      Seek Council approval of the suggested approach for categorising and licensing encroachments; and

·      Seek Council direction regarding the process for and timing of licensing of the backlog of unlicensed encroachments in the city.  

Options

4.    Currently only one in seven encroachments is licensed.  This results in a situation where some ratepayers are licensed and meeting their obligations while other ratepayers are gaining the benefits of an encroachment at no cost.  This situation does not align with Council’s Financial Strategy, principle Fairness and Equity, 2(b):

Balanced budget – projected operating revenue over the lifetime of the LTP is set at a level sufficient to meet  projected operating expenses, ensuring that current ratepayers are contributing an appropriate amount towards the cost of services they receive or are able to access, i.e. ‘everyday costs are paid for from everyday income’.

5.    Regardless of license status not all encroachments are of equal size or usefulness.  Issues can also arise when people use Council land without permission – in particular, purchasers may not be aware that part of the property they are buying is in fact an encroachment. While it is true it would be purchasers or their representatives that should undertake due diligence, many do not.  Issues will also occur should Council need to reclaim/use the land concerned for roading, water services or reserve purposes.

6.    The suggested approach focuses firstly on ensuring that all encroachments are licensed and paying the current licensing fee unless they are excluded by the criteria discussed later in this report.  Timing issues are discussed in paragraph 17 and council direction sought.

Current encroachment types:

7.    There are four encroachment types:

a)    Pavement Licences – allows a business to use a portion of the pavement outside their premises to set up tables and chairs for their customers to use while dining e.g. outside Buzz Café on High Street/Jackson St.  Currently seven pavement licences have been issued however officers have identified 42 unlicensed pavement encroachments.  The current licence fee is $57.50pa and currently licensees are entitled to free use of the first 90cm of shop frontage.

b)    Garage encroachment licences – allows a property owner to build a garage either totally on road reserve or use a portion of road reserve and a portion of their property.  Currently, there are 211 licensed garage encroachments and 116 unlicensed garage encroachments.  The current annual licence fees are: Single garage $128 and double garage $256.

c)    Garden encroachment licences - allows a property owner to develop and maintain a garden along the frontage of their property or within the streetscape.  Such gardens can encroach on road reserve.  Currently there are 21 licensed garden encroachments and 1241 unlicensed garden encroachments.  The current licence fee is $115.00pa.

d)    Drainage Reserve Licences - historically drainage reserves were created to assist with drainage in designated portions of land.  They usually run along the back of adjoining properties. The majority of these are in Wainuiomata. Currently 19 Drainage Reserves are licensed and it is estimated a further 70+ are unlicensed. The current licence fee is $57.50pa. 

 

 

Not all encroachments are equal

8.    Not all encroachments are equal and because of this they cannot be dealt with using a “one size fits all” approach.  While there are currently four types of encroachment licences, each type can vary in size from very small (under 10sq.m) to quite large (over 150sq.m).  The approach taken should be informed by the nature and size of the encroachment. 

9.    Gardens are by far the biggest category of encroachment. Because of the wide variation in size officers developed an approach that could guide licensing the current 1241 garden encroachments.  This work included GIS mapping and physical checking of sites where location and size were unclear.  A full spreadsheet of existing encroachments and where relevant their characteristics has been compiled to aid licensing.    

“Size” criteria test

10.  Garden encroachments vary widely in size from very small to quite large.  The cost of getting very small encroachments licensed and then administering the annual licensing fee is greater than the benefits to both the encroachment user and Council.  Officers recommend that:

(a)   All garden encroachments sized 0-10sq.m are removed from consideration. These encroachments have two key characteristics:

i.   straight fences on angled/corner sections; and

ii.  edges/bush/agapanthus that have grown outwards into road reserve.

(b)   All ‘garden encroachments’, including the 0-10sq.m group, are noted on the relevant property file.  This is important for future reference in case such portions of land are needed for roading purposes. Legal advice was sought to determine what action should be taken (see paragraphs 30-31 below).

11.  There are 1241 garden encroachments and 564 encroachments are 0-10sq.m in size.

“Function” criteria test

12.  The second step in assessing whether or not a garden encroachment should be licensed is to consider its function that is, what the land being used for.

13.  Key questions are:

(a)     Has the land become an integral part of a resident’s property? E.g. is it fenced off and inaccessible for public use?

(b)     Does the topography of the land preclude public use?

(c)     Has the area been changed in any way by a resident?

14.  Of the 1241 garden encroachments 130 encroachments are excluded from being licensed by the ‘function’ criteria.  As with the “size criteria” any encroachment would be noted on the relevant property file but not issued with a licence or required to pay the current garden encroachment fee of $115.00pa.

Balance of garden encroachments

15.  The balance is 547 garden encroachments. These encroachments will be licensed – and the user required to pay the current licence fee of $115.00.  The encroachment will be noted on the relevant Council property file.

Suggested approach to licensing all other encroachments

16.  In line with ensuring that current ratepayers are contributing an appropriate amount towards the cost of the services they receive or are able to access, the remaining encroachments – pavement, garages and drainage - should be licensed. This is a significant undertaking and needs to be carefully managed.  Officers suggest the following approach.

Pavement Encroachments

17.  This should be the first category to be addressed. The numbers of pavement encroachments are lower and officers have strong existing relationships with business owners in the areas where the majority of these encroachments exist.

18.  Starting here enables a collaborative approach with key relationship managers working with business to ensure the process is fit for purpose.  Officers will work with those businesses providing outdoor pavement facilities to talk with them and assist them to get a licence.

19.  Council waived pavement licence fees as part of its Covid-19 response and officers suggested that the reintroduction of licence fees be considered again at a later date in 2021.

90 Centimetre Rule for pavement encroachments

20.     As part of a 2008 review of the pavement licences one-off charges were established for:

a.   a fixed term of three years

b.   council agreed to the first 90cm of footpath space immediately adjacent to shop frontages being freely available to businesses as of right.

This rule was introduced primarily for businesses in Jackson St, Petone and the Petone Community Board supports retaining it.

21.     It seems unnecessary for a business owner to have to go through the process of applying for a new licence every three years.  It will be more efficient to issue an e-invoice each year to the licence holder.  Payment is acceptance of the terms of the licence.  If Council decides to change any of the current terms and conditions in the future the power to do so is contained within the existing licence terms.

22.     The current 90cm criteria is defined in such a way that the space would not be large enough to permit tables and chairs to be placed outside a business meaning that business would need to apply and get a pavement licence to provide outdoor dining. 

23.     It does, however, allow some room for produce to be displayed or planters to be installed immediately adjacent to the business premise. This is useful for business owners who want to be able to do this but do not require or want any more of the footpath than that 90cm.

24.     There does not seem to be a good policy reason for an encroachment licence to differentiate between a business using the first 90 centimetres of a pavement and a business using a larger area. 

25.     The footpath is being used no matter which situation prevails and it could be difficult to monitor for compliance unnecessarily tying up already stretched compliance staff. Officers recommend that Council rescinds the 90cm rule so that all pavement encroachments are treated in the same way. 

26.     The issue of pavement licences was considered by the Wainuiomata, Eastbourne and Petone Community Boards early in 2020.  Petone Community Board has consulted with the Jackson Street programme and other retailers in Petone and the Chair has advised that the Board believes the “policy allowing retailers to use the 0.9 metres outside their shop for free should be retained.”

Garage Licences

27.     Garages are a physical structure on Council land and would need to be removed if Council needed the land for roading purposes. Those not currently licensed will be required to pay the current licence fees as follows: Single garage $128pa and Double garage $256pa.

Garden Licences

28.     The number of licences to be issued and the approach taken will be guided by Council.

Drainage Reserve Licences

29.     No permanent structures are permitted on a drainage reserve and they are often used by adjoining residents as an extension of their residential sections for parking vehicles on or storing other property.

 

30.     It is important that strips of drainage reserve land are maintained so Wellington Water Limited can access them if needed.  Because of this drainage reserve encroachments are quite different to other types of encroachment.  It is difficult if not impossible to use them for anything other than activities that can be stopped immediately and the land cleared.  On the other hand, it could create problems if all drainage reserve land is not maintained.

31.  Given this situation officers recommend that Council consider the following approach:

a.    Licensing the encroachment and charging the current licence fee;

b.    remitting the fee only if the licensee agrees to maintain access for Wellington Water Limited to the strips of land adjoining their property;

c.     Having the encroachment noted on the relevant Council property file.

Review

32.  The current fees were set 15 years ago and have not been reviewed since then.  Further advice on different approaches to setting fees will be developed for Council in time for the LTP 2021-31 discussions.

Options

33.  Officers recommended that Council focus initially on ensuring all encroachments are licensed and paying the current licensing fee unless they are excluded by the size and/or function criteria.

34.  Officers further recommend the suggested approach to licensing beginning with pavement licences followed by garage, garden and drainage reserve licenses.

35.  Council can either:

a.   Agree to these recommendations; or

b.   Agree to the recommendations with modifications as directed; or

c.   Direct officers to undertake further work as directed

Consultation and engagement

36.  This matter has been considered by the Eastbourne, Petone and Wainuiomata Community Boards at their February 2020 meetings. 

37.  A Communications and Engagement Plan has been developed and focuses on socialising the issues with the public via editorial/advertorial content. Central to this will be a focus on the key issue of fairness/equity – we currently have a minority group of ratepayers gaining benefits from using public land and being effectively subsidised by the majority of ratepayers and those who pay their licence fee annually. 

Legal Considerations

Noting encroachments on property files

38.  Legal advice was sought regarding the noting of all encroachments on the relevant property file record.  The advice is that all encroachments should be noted on the relevant Council property file as this will ensure that Council can access the land for roading purposes if required.

39.  Taking this approach will also ensure any encroachments are noted on Land Information Memorandum (LIM) reports, which will be beneficial with respect to future property sales. There is no need to have an encroachment recorded on the relevant Certificate of Title. All property owners that have an encroachment will be notified that Council intends to take this approach.

Process to follow if landowner refuses to take out a licence

40.  Legal advice was also sought about what process should be followed if a landowner refuses to take out a licence for their garden encroachment.  The advice is that the process must be reasonable in the circumstances and that a month’s notice and request for the return of the area concerned is a reasonable starting point. Returning the area concerned to grass seems reasonable as a starting point. 

41.  Council has a choice whether or not to enforce a return of the area concerned and will need to consider the likely cost to the ratepayer.

42.  It is likely that resistance will come from property owners with garden encroachments.  If a property owner refuses to get their encroachment licensed they would be advised they will need to vacate that portion of Council land by moving, at their cost, any fences and vegetation back inside their property boundary. The property owner would need to reinstate the encroachment area back into a flat grassed area.

43.  Council has a Mowing of Berms policy that would then be applied with respect to future maintenance of the encroachment area. This policy notes the current practice that recognises property owners/residents voluntarily mow their berm areas within the road reserve adjoining their property and that this policy applies throughout the city.

44.  If property owners/residents are unable or unwilling to mow the berm areas, Council will ensure the area does not become a hazard to traffic or pedestrian movement.

Financial Considerations

 

Revenue and costs

45.     Assuming Council agrees the recommended approach the spreadsheet below shows total revenue to cover licensing costs.

 

Licence

Number of licences

Current revenue

 Revenue using size and function criteria to exclude

New revenue without using size & function criteria to exclude

 

Street Pavement

45 as at March 2019.

$402.50

$402.50

$402.50

 

Gardens

64 licenced. 1122 unlicensed.

$2,145

$62,905

$142,715

 

Garages

211 licensed.  116 unlicensed.

$27,008 approx

$41,856

$41,856

 

Drainage and other reserves

19 drainage licenced. 70+ unlicensed drainage and other reserves.

19 Current Drainage licence  $1,092.50

51 unlicensed = $2,932.50

$4,024

$1,092 + $2932=

$4,024

 

Mixed encroachments

Estimated to be 80+

Mixed because the property has more than one encroachment

Unknown but for budget purposes single garage $128 & garden $115 = $243pa 

$19,440

$243 times 80 = $19,440pa

 

TOTAL REVENUE

 

$30,245.50

$128,627.50

$208,500.50

 

 

 

46.     This projected increase in revenue, depending on the approach and timing adopted to complete the backlog of licensing, is expected to cover Council licensing costs.

Appendices

There are no appendices for this report.   

 

 

Author: Graham Sewell

Principal Policy Advisor

 

 

Author: Wendy Moore

Head of Strategy and Planning

 

 

 

Reviewed By: John Gloag

Head of Transport

 

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


                                                                                     363                                               17 November 2020

Policy, Finance and Strategy Committee

25 October 2020

 

 

 

File: (20/1309)

 

 

 

 

Report no: PFSC2020/6/257

 

Draft Wellington Regional Growth Framework

 

Purpose of Report

1.    To recommend to Council endorsement of the Draft Wellington Regional Growth Framework (‘Framework’).

Recommendations

That the Committee recommends that Council:

(i)         notes that the draft Framework is the result of a partnership between central government, local government and iwi;

 

(ii)        notes that the draft Framework is generally consistent in content and structure to other spatial plans developed within the urban growth partnership programme;

(iii)       notes that a  ‘public consultation friendly’ version of this Framework (smaller and more concise) will be developed for the public consultation process in 2021 and that an example of what this might look like is attached as Appendix 2 to the report; and

 

(iv)      endorses the Draft Wellington Regional Growth Framework attached as Appendix 1 to the report for public consultation.

For the reasons that the region’s councils, mana whenua groups and central government have developed the Framework to address future growth in the Wellington-Horowhenua region.

 

Background

2.    The Draft Wellington Regional Growth Framework is a 30 year spatial plan that describes a Long term vision for how the Wellington Region will grow, change and respond to key urban development challenges and opportunities in a way that gets the best outcomes and maximises the benefits across the region. The region in the context of the Framework includes the eight city/districts in the Greater Wellington Regional Council region and Horowhenua District.

3.    The Framework is one of a number of spatial plans that have been/are being developed around the country under the Government’s Urban Growth Agenda. Other spatial plans have been completed for the Hamilton-Auckland corridor, the metro Hamilton area, Western Bay of Plenty and one for Queenstown is being completed.

Discussion

Why the Framework Has Been Developed

4.    The Framework has been developed to a number of issues. These include:

·        The region is growing faster than it has done for many decades and is facing immediate and longer term housing supply and affordability, urban development and infrastructure challenges.

·        Significant investment in housing, urban development, transport and three waters infrastructure and services, as well as regional and district planning and policy changes, will be needed to support future growth.

·        Projected sea level rise, severity of weather events, environmental stewardship pressures, barriers to mana whenua in fulfilling their role of kaitiaki, natural hazards and climate change are creating challenges as well as uncertainty.

·        Increasing numbers of vehicles on the roads, capacity and reliability issues associated with buses and trains and network resilience issues are straining the regional transport system and may not result in necessary transport system shifts we are seeking.

·        Community infrastructure needs more coordinated investment to accommodate growth including open spaces, community facilities, schools and health care facilities.

·        There are challenges providing for community based outcomes and contributing to liveability by creating great places that strengthen local character and diversity and develop sense of place for each area.

·        Issues of regional economic development and employment, especially the spatial impacts of where and how people work.

5.    These are regional issues that are best dealt with together and not at a single city/district scale.  Many of these cross local council boundaries and maximum benefit can be had from addressing these together and not individually.

6.    It is important that we have a region wide approach and develop a partnership between central government, local government and mana whenua to respond to these issues.

7.    Further information on the context for development of the Framework and the key challenges can be found at https://wrgf.co.nz/wp-content/uploads/2020/04/1190-GWRC-Framework-Report-APRIL-2020-02-1.pdf

8.    The Framework has also been developed to deliver on the Urban Growth Agenda objectives of the Government, which adjusts the approach to urban development and infrastructure planning and introduces new instruments and levers.

9.    Spatial planning is one pillar of the Urban Growth Agenda and is focused on successful management of growth. Its core proposition is that well planned and managed urban growth should result in improved environmental, employment, transport and housing outcomes for communities.

10.  The Framework also takes account of the requirements of the National Policy Statement on Urban Development (NPSUD). Although it has been broadly aligned with the approach to developing a Future Development Strategy going forward it will also need to consider government policy work such as the RMA review, the three waters review and include requirements for a Future Development Strategy.

11.  Other regions that have completed the spatial plans are now in the implementation phase and are already seeing funding and partnership benefits as well as being able to speak with one voice on regional direction.

Parties Involved with the Development of the Framework

12.  This project is collaboration between central government, the councils of the region and mana whenua. The key partners are shown in the table below.  Other key central government agencies we have been working with on the Framework are Department of Internal Affairs, Ministry of Transport, Ministry for the Environment, Treasury, Kāinga Ora and Ministry of Business, Innovation and Employment.

13.  The Framework has been developed by working with a number of stakeholders and has included:

·    Technical workshops focused on three waters, health/education and economy/business;

·    Presentations to each Council, one on one meetings with council staff;

·    Two joint all councils/mana whenua workshops;

·    Meetings and workshops with key central government stakeholders (such as Kāinga Ora, Ministry of Transport, Department of Internal Affairs, Ministry of Education and Treasury);

·    Two partner/stakeholder workshops (of 120 and 80 people respectively);

·    One on one meetings with stakeholders (District health Boards, Chambers of commerce, Regional Public Health and the Insurance Council);

·    Discussions and feedback at monthly Steering Group meetings; and

·    The Framework has had input from mana-whenua either from one on one meetings or at Steering Group meetings and other Māori representatives such as Māori health providers and input from a workshop on Māori economic development.

 How the framework fits in with other related work

14.  The Framework takes into account work already in place or underway. This includes work by councils such as growth plans or district plan change, work led by central government agencies such as ‘Arataki’ and mode shift planning and work by iwi such as the Kenepuru landing development in Porirua.

15.  The diagram below provides an overview of hoe the Framework and other documents fit together.

Process followed to draft Framework

16.     The information below provides a high level summary of the process followed to develop and assess options for the Framework.  A more detailed analysis can be found at https://wrgf.co.nz/wp-content/uploads/2020/09/WRGF-Options-Assessment-Report-Aug-2020.pdf

17.     We first identified how the region could look in the future through a range of different types of urban form and urban development.  Engagement with mana whenua, council organisations, infrastructure providers and other stakeholders through workshops and others was used for this process.

18.     A series of urban development options were developed using results of scenario testing with stakeholders. These were then tested against benefits which link to the identified challenges.  The urban development options were analysed using quantitative and qualitative methodologies. This was performed with a range of technical experts.

19.     The assessment led to the development of a document called “Emerging Direction” for urban design in the region. The Emerging Direction was a combination of several urban development options 60%-80% of development occurring within brownfield areas and 20%-40% of development occurring in greenfield areas. Centres, nodes and greenfield areas of development are spread throughout the region.

20.     The Emerging Direction was then refined and acted as the base for the Framework.

Draft Framework

21.     A copy of the Draft Wellington Regional Growth Framework is attached as Appendix 1.

22.     The Framework identifies where areas for housing, public transport and roads, three waters infrastructure (stormwater, wastewater and drinking water), businesses and jobs are recommended in the context of issues such as housing affordability, climate change, resilience and natural hazards.  It seeks to reflect the housing and urban development aspirations of mana whenua in the region.

23.     The Framework provides a series of spatial maps and a set of key initiatives and projects.

24.     The current population of the Wellington-Horowhenua region is 562,790 compared to 457,690 in 1996.  The Framework identifies how the Wellington-Horowhenua region could accommodate a future population of 760,000 i.e. an additional 200,000 people living in the region with 100,000 more jobs in the next 30 years.  This population scenario has been developed to understand what would be required to accommodate this level of growth and consider future infrastructure needs.

25.     Current population projections for the region suggest that new homes may be needed for between 91,000 to 151,000 additional people in the next 30 years.  While there is no certainty about when, how or at what rate the region’s population might reach this size, the Framework has been developed based on the 200,000 people scenario to give better understanding of what would be required to accommodate this level of growth and the potential infrastructure needs. 

26.     Note this is not a policy target.

 Implementation

27.     The complex nature and challenges of implementation should not be underestimated, especially given the long timeframe of the Framework and the issues presented by the growth expected. Some of the work will require challenging decisions to be made for the region

28.     Delivering the Framework will require a level of enduring partnership between the local government, mana whenua and central government not seen on this scale in the region before.  It will build on the partnership developed during work on the Framework.

29.     The partnership will include aspects of how implementation of the Framework is governed, how the partners work together on key initiatives and how these key initiatives and other projects are identified and funded.

30.     An implementation plan will be developed for the Framework that will identify potential sequencing of the key spatial plan initiatives and other growth area and the potential timing and costs for infrastructure and other system changes that may be required to deliver growth and outcomes envisaged by the Framework. This implementation plan will be progressed over the next six months.

31.     Subsequent projects will also be identified in later years dependent on the findings of key initiatives and projects currently identified. An example of this is any decision to proceed with investment in the possible east-west corridors (linking the Hutt Valley with Porirua/Kāpiti).

Next Steps

32.     Each council and mana whenua group in the region are being invited to endorse the Framework for public consultation.   The endorsement process is planned to occur during October – December 2020 with the possibility of some iwi discussions being undertaken in 2021.  Hutt City is the third Council to formally consider the Framework.

33.     Following the endorsement of the Framework by councils and iwi the Framework will be considered by Cabinet.  This is the same process that has been followed for other regional spatial plans. 

Options

34.  The Council can choose to either endorse the Draft Wellington Regional Growth Framework or not.

Climate Change Impact and Considerations

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

36.  Climate change has been a key factor in the development of the Framework, both adapting to the impacts of climate change (e.g. sea level rise) and the need for sustainable transport to minimise greenhouse emissions.  

Consultation

37.  Public consultation is expected to be undertaken in first half of 2021 after all the parties, councils, mana whenua and central government have endorsed the Framework.

38.  At this time the scale and nature of the consultation has not been decided. A ‘public consultation friendly’ version of this Framework (smaller and more concise) will be developed for the public consultation process in 2021 and that an example of what this might look like is included as Appendix 2.

Legal Considerations

39.  There are no legal considerations.

Financial Considerations

40.  Funding arrangements for the various initiatives and projects is yet to be confirmed.  It is expected that initiatives and projects funded by Council will be provided for in the relevant Long Term Plans and Annual Plans over the life of the Framework.

Appendices

No.

Title

Page

1

Appendix 1: 1246 GWRC Draft Framework Report SEPT 2020-11

364

2

Appendix 2: Indicative Wellington Region Growth Framework Consultation Material

436

 

 

Author: Gary Craig

Head of City Growth

 

 

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


Attachment 1

Appendix 1: 1246 GWRC Draft Framework Report SEPT 2020-11

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Attachment 2

Appendix 2: Indicative Wellington Region Growth Framework Consultation Material

 


 


 


 


 


 


 


 


 


 

  


                                                                                     447                                               17 November 2020

Policy, Finance and Strategy Committee

21 October 2020

 

 

 

File: (20/1295)

 

 

 

 

Report no: PFSC2020/6/258

 

Technology Valley 6 Monthly Update to 30 June 2020

 

Purpose of Report

1.    This report summarises the Technology Valley Forum (TVF) performance for the six months to 30 June 2020.

2.    The report has been prepared on the basis of information provided by TVF.

3.    Representatives of TVF will be in attendance to speak to their report.

Recommendations

That the Committee notes and receives the report.

Technology Valley is required to report to Council on performance on a 6-monthly basis.

 

Background

4.    Technology Valley Forum is an independent organisation that supports the promotion, engagement, and collaboration of the innovation community of the Hutt Valley and neighbouring areas.

5.    Council has contracted TVF to undertake a programme of work to advance the science and technology sector in Lower Hutt.

6.    TVF operates as an Incorporated Society and has allocated funding totalling $260,000 in the FY2019/20 in Council’s Long Term Plan/Annual Plan, being $160,000 for this current year and $100,000 of carried over funding from prior year.

Discussion

7.    The TVF report for the six months to 30 June 2020 is attached as Appendix 1 to the report.

8.    Highlights for the six months to 30 June 2020 include:

·      Establishment of an Industry Advisory Group.

·      Development of a regional manufacturing directory. 

·      Participating in the Gateway review for Callaghan Innovation

9.    Matters for further consideration include:

·      Covid-19 delayed the appointment of a new board, now scheduled at the AGM to be held in November 2020.

10.  TVF now has an independent accounting system established.

Consultation

11.  TVF has submitted its report for the six months ended 30 June 2020 attached as Appendix 1 for the Committee’s consideration. Representatives of TVF will be present to speak to their report.

Legal Considerations

12.  There are no legal considerations.

Financial Considerations

13.  TVF is funded from an allocation of funds made in Council’s Long Term Plan/Annual Plan for economic development activities and has allocated funding totalling $260,000 in the FY2019/20 being $160,000 for this current year and $100,000 of carried over funding from prior year.

14.  Covid-19 has meant a number of activities were deferred and a carryover of $40,000 was approved for FY2020/21. 

Appendices

No.

Title

Page

1

June2020_TVF Accountability_HCC.docx

448

    

 

 

 

 

 

Author: Gary Craig

Head of City Growth

 

 

 

 

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


Attachment 1

June2020_TVF Accountability_HCC.docx

 

 

 

 

               

 

Technology Valley Forum

Six month progress report

 

 

 

 

 

 


Six month accountability report to 30 June 2020

Hutt City Council City Development Committee
Prepared by Anthea Mulholland, Executive Director, Technology Valley Forum

 

 

 


 

 

Technology Valley Forum strategic Objective One – Organisational Development

Build a strong, connected industry-led organisation (the Technology Valley Forum) that regularly engages its people and contributes to their success.

 

 

COUNCIL OBJECTIVE 1.1  |  Establish governance board and regular meetings and reporting.

100% COMPLETE

Progress over 12 months

The Technology Valley Forum (TVF) Management Group meets each 6-8 weeks, with fortnightly meetings held between the board chair (Hayden Kirk) and executive director (Anthea Mulholland) to maintain good management and oversight of operations.

The full TVF board was due to meet for the AGM in May 2020, however Covid-19 restrictions deferred this until November 2020.

This AGM will see the formal adoption of a new board membership that better represents the needs of our growing organisation and our wider community, which will entail the recruitment of members with professional attributes and experience that will benefit TVF. This ‘foundation’ membership will then transition into a member-based election appointment within 24 months, allowing our membership to grow and engage in this process.

Plans for next 6 months

AGM to be held in November 2020 and recruitment of new board members to begin, with appointments made prior to Full Board meeting scheduled for April 2021.

COUNCIL OBJECTIVE 1.2  |  Establish financial accounting procedures and independent accounts.

100% COMPLETE

Progress over 12 months

All of TVF’s accounting is now conducted in-house utilising Xero financial management software. Our accounts are independent of Council and our processes support prudent, responsible, and transparent management of these.

Plans for next 6 months

Sound and transparent financial management to continue using Xero software.

COUNCIL OBJECTIVE 1.3  |  Develop a business model that is eventually sustainable.

100% COMPLETE

Progress over 12 months

Covid-19 challenged our business model development significantly, identifying that reliance on a fee-for-service model can only be sustainable if such services can be delivered without interruption.

Covid-19 halted many of our planned works, preventing physical events and cancelling plans for international guests to present. The pandemic also highlighted the need for more localised support and engagement and – after lengthy workshops and consultation with key stakeholders from within the Technology Valley community – we have revisited earlier intentions to create a member organisation, but in a modified approach that is more industry focussed.

This renewed focus prioritises the needs and expectations of local industry: being the need to engage across professional levels, the ability to establish local supply chains, the opportunity to unlock capacity and potential to enable alternative or extended production to meet new and local demand, the facilitation of collegial engagement that supports collaboration and scalability, the provision of industry specific knowledge that supports investment, export, IP, agency engagement, and market influences, and the opportunity to socialise and strengthen the community. These very specific activities differ from support currently available.

Our community of engagement were recruited into an Industry Advisory Group (who now meet each three months), who proposed that a paid membership into an industry specific calendar of events was most appealing. This proposal would not only enable highly valued regular engagement with our community but would also provide a stable revenue stream which would support the sustainability of TVF into the future. Central to this is the regional manufacturing directory built in the early days of Covid-19 lockdown. Details of this directory and how it supports the creation of a membership and their engagement is described later in this report.

 

Plans for next 6 months

Following lockdown restrictions, a calendar of activities is being developed that includes monthly industry specific meetups, regular Industry Advisory Group meetings, industry leaders breakfast events, social events, and knowledge sharing activities. Work on the manufacturing directory continues (as described later) and a member registration hub will be built. Trial memberships will be offered to the community to start a member acquisition campaign which will provide TVF a reasonable timeframe to refine the value proposition to the community. TVF will join the NZTech community, transitioning to being the body representing the Wellington Region in the NZTech Alliance (a nationwide network of industry agencies with a focus on supporting the growth of innovation communities across New Zealand). Participation at this level ensures the region contributes and is recognised as part of New Zealand’s tech and innovation story and our needs are voiced and advocated for with central government.

COUNCIL OBJECTIVE 1.4  |  Hutt City Council  requires 2 accountabilities

100% COMPLETE

Progress over 12 months

This is the second of our two accountabilities due to Council.

Plans for next 6 months

We will continue to report to Council as required, and meet with Gary Craig monthly to ensure regular engagement, consultation, and collaboration with Council.

COUNCIL OBJECTIVE 1.5  |  8 engagements with members/stakeholders

87% COMPLETE

13%

Progress over 12 months

Covid-19 impacted on our scheduled communications, which were mostly focussed around promoting our regular activities. Our intention - once Covid-19 restrictions were in place – was to utilise our channels to promote messaging and knowledge that would support recovery and resilience. Upon recognising the importance of the work undertaken by Hutt and Upper Hutt City Councils and the Chamber, we instead kept our ‘airways’ clear of generic messaging, sharing the Covid-19 response content to our network.

We have also participated in the Hutt Valley Covid-19 Business Response and have utilised our channels for the specific and targeted communications promoting webinars, business advice funding vouchers, and other Covid-19 related news.

TVF utilised direct messaging and emails to connect with our key stakeholders, launching the manufacturing directory and inviting their participation.

Despite Covid interruptions to our communications schedule, we exceeded our target of 8 engagements. In all, we had 17 engagements with our stakeholders. Our stakeholder contact list has grown over this time, from 135 at the beginning of the year to over 480 at the end of the year. This growth represents the interest in TVF and the expansion of our stakeholder demographics – as we diversify from manufacturing to include the technology and R&D innovation community.

Plans for next 6 months

We now have a monthly newsletter which is emailed out to 480 stakeholders via our CRM (Hubspot). As the Hutt Valley Covid-19 Business Response communications cease we are reactivating our social channels to return to promoting TVF related news, our innovator profiles, and aggregated ‘good news’ stories from our community.

COUNCIL OBJECTIVE 1.6 |  Advocate on behalf of stakeholders on at least two major central government policy issues

100% COMPLETE

Progress over 12 months

In addition to TVF participating in the Gateway Review for Callaghan Innovation, we have worked with our community of engagement to determine collective positions that we have included in submissions made to central government.

Both pieces of work were conducted by NZTech, on behalf of MBIE. The specific works we submitted to are the 2020 Digital Skills Survey, and the Digital Technologies Industry Transformation Plan (ITP). Both works will inform governments sector strategy.

We have also contributed to various surveys that are elevating the changing needs and dynamics of local industry in the wake of Covid-19, again managed by NZTech.

Plans for next 6 months

With both major parties identifying technology and hi-tech manufacturing as being significant to job creation and economic recovery, post-election TVF will be engaging with government to challenge them to develop the policies and strategies that will enable sustainable growth in these areas. Critical to this will be in identifying TVF as a representative voice however, our position in the NZTech Alliance is cementing this.

Any other matters that require advocacy or representation from our community will be addressed as they arise.

 

Technology Valley Forum strategic Objective TWO – brand Development

Develop and nurture an increasingly highly valued and internationally recognised brand for Technology Valley (the place) and position it effectively.

 

COUNCIL OBJECTIVE 2.1 |  Launch TV brand and website.

100% COMPLETE

Progress over 12 months

Graphical user interface, website

Description automatically generated

 

Graphical user interface, website

Description automatically generated

The Technology Valley website continues to be managed effectively, despite most of our digital development now being on the directory site (www.maderighthere.nz). The intention is to downsize the Technology Valley site so that all the dynamic functionality (such as news, events etc) will be presented on the Made Right Here site, with the Technology Valley site being the ‘brochure’ site for our organisation as well as housing a secure portal to host board reports, plans, and communications.

The Made Right Here directory began construction in the first week of lockdown and was launched 5 weeks later. The site was launched with minimal fanfare, promoting through direct mail (emails, which Councillors were sent) and on our social channels. The site catalogues all local manufacturing businesses under their ANZICS codes, and business listings are free. When we launched, we had 120 listings which we had loaded with fairly basic information which businesses could ‘claim’ and then fully populate, and another 200 listings which were business names and their primary business activity. The site now has more than 700 listings from manufacturers across the Wellington Region.

Plans for next 6 months

As part of our member value proposition we will be monetising some of the functionality on this site. Paid site members will be able to survey multiple companies for local supply requests, claim requests, promote their business, feature specific componentry, advertise off-core products for sale, list site vacancies or shared spaces available, list personnel vacancies, promote events, and post their own blogs. The site will also be used to register for our events, workshops, or other activities, and event organisers can also pay to advertise their events to our members.

We have other site functions in development which include the ability to link local businesses to identify local supply chains, and we will be investigating integrations into other databases such as Scale-Up.

COUNCIL OBJECTIVE 2.2 |  Develop business model and offering for members/ stakeholders.

100% COMPLETE

Progress over 12 months

See Council Objective 1.3

 

 

Technology Valley Forum strategic Objective Three – storytelling

Create, curate, and publish Technology Valley’s unique and inspiring story.

 

COUNCIL OBJECTIVE 3.1 |  8 pieces required to end of June 2019

1287% COMPLETE

Progress this reporting cycle

Storytelling was one of the few normal activities which continued throughout Covid-19. We have continued to interview inspiring local innovators and ‘unpick’ stories, presenting them on our Manufacturing directory website www.maderighthere.nz

While these stories have predominantly focussed on individual innovators and their businesses, post-Covid we have been specifically generating stories with themes of resilience, local collaboration, supply chain resilience and workarounds, and success through adversity. I invite Councillors to read our stories on the website – the local talent under the spotlight is impressive.

Our publication target of eight TVF generated pieces for the year has well been exceeded, across these mediums:

·      96 pieces published on the Made Right Here website

·      5 double page spreads in Vibrant Hutt

·      3 Media releases submitted

Plans for next 6 months

Our Made Right Here innovator profiles will continue, and -in addition to this – we will be encouraging local businesses to upload their own content as well. We are working with NZTE to broadcast some of our content as part of the NZ Story.

We will also continue to build and publish content around topics and events as they arise, as well as what is scheduled.

COUNCIL OBJECTIVE 3.2 |  Publish weekly on social media

90% COMPLETE

 

Progress over 12 months

Pre-Covid-19 our Facebook activity was consistent, in that we posted weekly are regularly shared content from our networks. This channel was repurposed to support the messaging of the Hutt Valley Covid-19 Response team from March to June, with relevant messaged shared. Our scheduled posts were held to prevent congestion on our follower’s pages, as we assumed our followers were likely the same audience as that of the group. The only TVF specific messaging posted at this time were related to the Manufacturing Directory, as its development was specific to the recovery and resilience of manufacturers post-Covid.

Plans for next 6 months

We will continue to post on Facebook, as planned, once all Hutt Valley Covid-19 Response messaging has subsided. As the volume and/or importance of these messages subsides we will reactivate the posts that promote the innovator profile series, while also using this channel to promote our upcoming events.

As we need to remain agile and responsive to any Covid-19 messaging, we will limit our post frequency. However, we intend to share content from our networks that identify excellence, success, and collaboration as positive promotions and storytelling at times of economic difficulty can inspire and motivate.

 

Technology Valley Forum strategic Objective four – Events And Activities

Develop a comprehensive calendar of engaging and high-demand events - including our own and those of others in our network - and encourage member participation.

COUNCIL OBJECTIVE 4.1 |  Arrange at least 8 TV events for local businesses

62% COMPLETE

38% not achieved

Progress over 12 months

Our events schedule was dramatically affected by Covid-19, with four of our scheduled MeetUp events cancelled and our planned three-day conference indefinitely postponed.

Events held over the 12 months include:

HVCCI Joint Business After 5
Held at Flight Plastics, featuring guest speaker Dr Bill Bellows
35 attendees

Innovator MeetUp
Held at Pertronic, featuring guest speakers Stephen Mills (Pertronic) and Emma Naji (AI Advisory)
Applying common sense to the application of digital technology in a manufacturing environment.
22 attendees

Innovator MeetUp
Held at Real Steel, featuring guest speaker Luke Mathieson
Use of digital technology with a focus on internal communications and data capture
26 attendees

Technology Valley Leaders Fourm
Held at Callaghan Innovation
Facilitated by StudioC
18 attendees

Innovator MeetUp
Held at Weltech, featuring speakers Jane Duncan (Tertiary Education Commission), Adrian Ferguson (Weltech), Jim Doyle (NZBD), and Charles Tortoise (In-Thinking)
Workforce development and microcredentials
22 attendees

Plans for next 6 months

With Covid-19 restrictions easing we will look to return to physical events late 2020. We had anticipated hosting webinar sessions but our Industry Advisory Group recommended that we don’t, given the oversaturation of this medium.

Our forward events calendar will reflect our member value proposition, based on the recommendations from our Industry Advisory Group, and will have a strong emphasis on bringing together professional peers for knowledge sharing rather than business owners gathering in a networking capacity.

We will also host an end of year social event.

COUNCIL OBJECTIVE 4.2 |  Create a Technology Valley channel for publicising partner events

100% COMPLETE

Progress over 12 months

As described earlier, our website hosts a calendar function which is open for event organisers to post events to. They can also choose to actively promote their events through paid promotion on the site.

We have trialled various APIs to populate the calendar function but this trail was interrupted by the lack of physical activity happening during Covid-19.

We may enable it in the future, depending on volume of listings and the capacity required to load these.

Plans for next 6 months

We will be posting a series of ‘how to’ videos on the Made Right Here site so event listers can post their events independently and with confidence.

COUNCIL OBJECTIVE 4.3 |  Participate in STEMM Festival.

Not started

Progress over 12 months

This event did not go ahead.

 

COUNCIL OBJECTIVE 4.4 |  Report to Council City Development Committee (6 monthly) on progress against objectives

50% COMPLETE

Progress over 12 months

This is our second and final accountability report for this financial year. We have met with Council officers, the CEO, and the Mayor throughout this period to support reporting on progress and operations.

 


                                                                                     461                                               17 November 2020

Policy, Finance and Strategy Committee

21 October 2020

 

 

 

File: (20/1296)

 

 

 

 

Report no: PFSC2020/6/259

 

Hutt Valley Chamber of Commerce 12 Months Report to 30 June 2020

 

Purpose of Report

1.    The report summarises the Hutt Valley Chamber of Commerce (HVCC) performance against agreed performance measures for the twelve months to 30 June 2020.

2.    The report has been prepared on the basis of information provided by HVCC and officer input.

3.    Representatives of HVCC will be in attendance to speak to their report.

Recommendations

That the Committee notes and receives the report.

For the reason the Hutt Valley Chamber of Commerce is required to report six monthly to the Committee on performance against agreed performance measures.

 

Background

4.    Council contracts with HVCC and allocates funding for specific direct services to complement and support Council’s work programmes and strategies.

5.    In Financial Year (FY) 2019/2020 funding for services is $100,000 in total as per the decision of the City Development Committee at its meeting held on 3 July 2018.

6.    A strong constructive relationship with HVCC has beneficial outcomes for both working with businesses and encouraging business activity in Lower Hutt.

Discussion

7.    HVCC reporting for the six months to 30 June 2020 is attached as Appendix 1 to the report.

8.    Highlights for the period include:

·    Successful advocacy for the Melling Interchange project;

·    Development of a partnership with Hutt City & Upper Hutt City Councils for tenders with Government agencies regarding the Review of Vocational Education (RoVE), which provided a platform for the joint business response during Covid-19 lockdowns;

·    Successful tenders for the delivery of events and brokerage services to encourage more Hutt Valley young people into vocational education and trades careers.  Although a delayed start due to Covid-19 the activities that have been held through these initiatives have received extensive media coverage due to the increased importance of these initiatives in a Covid-19 world.

·    Continued use of Chamber channels to market and promote Council activities and to interact with the business community.  This capability proved invaluable during and post Covid 19 lockdowns giving Council ready access to a wide business network.

9.    Council agreed to contract HVCC for specific direct services in FY2019/20 in support of Council’s work programmes and strategies. A Contract Services Delivery Schedule forms the basis of the contracted services and is the basis for the attached progress report to this Committee. 

Consultation

10.  HVCC has submitted its report for the six months to 31 December 2019 for the Committee’s consideration and is attached as Appendix 1 to the report.  Representatives of HVCC will be in attendance to speak to their report.

11.  The Covid-19 business response has been reported to Council previously.  However it should be noted that the contract requirements were met in addition to the business response that the Chamber led.

Legal Considerations

12.  There are no legal considerations.

Financial Considerations

13.  HVCC is contracted to provide services to Council until 30 June 2021 with the Contract Services Delivery Schedule reviewed and agreed every 12 months.

14.  The contract has a maximum value of $100,000.

Post Reporting Period Events

15.  HVCC responded to Covid-19 with a range of initiatives to support the Hutt Valley business community.  On Auckland being put back into Level 3 and the rest of the country Level 2 the Chamber and Council partners reactivated the Covid-19 Business response, and remain ready to do so again in the future if required.

Appendices

No.

Title

Page

1

Appendix 1: Hutt City Council Report 12 months to June 2020 Final

462

 

 

Author: Gary Craig

Head of City Growth

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


Attachment 1

Appendix 1: Hutt City Council Report 12 months to June 2020 Final

 


 


 


 


 


 


 


 


 


 


 


 


 


                                                                                     478                                               17 November 2020

Policy, Finance and Strategy Committee

21 October 2020

 

 

 

File: (20/1297)

 

 

 

 

Report no: PFSC2020/6/260

 

Strategic Property Portfolio - Update

 

Purpose of Report

1.    To report on strategic properties for advancing strategic projects.

Recommendations

That the Committee receives and notes the report.

For the reason that the Property Working Group for Advancing Strategic Projects is required to report six monthly to this Committee on the portfolio of properties for advancing strategic projects.  This is for monitoring purposes.

 

Background

2.    In certain circumstances it may be necessary or advantageous for Council to purchase, hold and/or sell a specific parcel of land or parcels or property in the city in order to fulfil the initiatives outlined in Council’s adopted strategies, plans and policies.

3.    The framework for this is provided through Council’s Purchase and Sale of Property for Advancing Strategic Projects Policy.

4.    This report outlines the current status and future intentions for properties in Council’s portfolio of properties for advancing strategic projects.

Discussion – Properties Purchased and Held

1-3/6 Daly Street

5.    This property consisting of three separate titles (two residential units and a commercial premise) has been purchased as per Council’s resolution of 12 June 2017 for Council’s Promenade Project which is part of the RiverLink Project.

6.    The two residential units are rented.

7.    The commercial premise (Unit 1) was under agreement to lease effective from 15 January 2020, however the lessee has defaulted.  The current state of the building is such that the cost to make lettable exceeds the future rental over the short period the building will be held.  The building is boarded up pending demolition for the RiverLink Project.

8.    Assessed holding position is as follows:

 

YTD 30 Sept 2020 Actual

Year to 30 June 2021 Forecast

Rental Income Unit 1

$0

$0

Rental Income Unit 2

$3,617

$13,356

Rental Income Unit 3

$5,652

$20,869

Total Income

$9,269

$34,225

Building Maintenance, Insurance & Other

($3,181)

($12,116)

HCC Rates

($7,304)

($7,304)

GWRC Rates

($1,258)

($1,258)

Total Expenses

($11,743)

($20,678)

Net rental before interest

$(2,474)

$13,547

Interest at 4.0%

($12,500)

($50,000)

Net return after interest

($14,974)

($36,453)

Purchase price

$1,250,000

$1,250,000

Annual holding return on purchase price

 

-2.92%

9.    This property is intended to be amalgamated with adjacent road and neighbouring properties to create a site for development of high quality residential and commercial areas, cafes and restaurants adjacent to and integrated with the Promenade as part of the RiverLink Project.

Discussion – Properties being acquired

7, 10 and 12 Daly Street

10.  Council resolved (12 June 2017) to acquire these properties using the Public Works Act 1981 to be redeveloped and integrated with the Promenade Project.

11.  After an extensive period of negotiations with the owners without result Council moved to compulsorily acquire these properties at the end of May 2018.

12.  The registered owners of the properties lodged an Objection to the taking of the properties in the Environment Court on 5 July 2018.

13.  The registered owners of the properties then lodged Judicial Review proceedings in the High Court on 21 September 2018. The Court judgement found in Council’s favour and dismissed all 6 grounds for judicial review raised by the owners.

14.  The owners then lodged an appeal to the Court of Appeal 3 October 2019. This was abandoned on 23 December 2019 along with their objection in the Environment Court on the same date.

15.  This left Council free to proceed to take the properties under the Public Works Act and this was achieved with the properties vesting in Council’s name on 2 April 2020, with only the value of the transfer to be resolved. 

16.  Both parties have obtained valuations, Council’s at $3.9M and the prior owners at $6.9M.  The valuer’s are to meet to discuss the differences in their valuations and in the event the parties cannot resolve the value the Land Valuation Tribunal will make a ruling.

17.  Assessed holding position is as follows:

 

YTD 30 Sept 2020 Actual

Year to 30 June 2021 Forecast

Rental Income 7 Daly St

$37,669

$163,533

Rental Income 10 Daly St

$705

$5,000

Rental Income 12 Daly St

$3,224

$5,000

Total Income

$41,598

$173,533

Building Maintenance, Insurance & Other

($4,143)

($36,258)

HCC Rates

($37,858)

($37,858)

GWRC Rates

($5,136)

($5,136)

Total Expenses

($47,137)

($79,252)

Net rental before interest and insurance

($5,539)

$94,281

Interest at 4.0%

($39,000)

($156,000)

Net return after interest

($44,539)

($61,719)

Purchase price based on Council’s valuation advice (TBC)

$3,900,000

$3,900,000

Annual holding return on purchase price

 

-1.58%

 

These properties are intended to be amalgamated with adjacent road and neighbouring properties to create a site for development of high quality residential and commercial areas, cafes and restaurants adjacent to and integrated with the Promenade as part of the RiverLink Project.

In the meantime where possible the premises are rented on a short term basis with either party able to give the other 6 months’ notice of termination.

Legal Considerations

18.  The properties have been taken in accordance with the Public Works Act.

19.  The settlement values for 7, 10 & 12 Daly Street have yet to be finally determined.  If no agreement can be reached between the parties, and this is likely given the valuation differences, then the matter is resolved by the Land Valuation Tribunal.

Financial Considerations

20.  $7.0M was provided for the purchase of the properties required by Council for the RiverLink project.

21.  $5.1M has been allocated to the capital value of 6, 7, 10 & 12 Daly Street

22.  $0.2M has been expensed on acquisition fees and legal fees including defending actions taken to prevent the taking of property under the Public Works Act.

Appendices

There are no appendices for this report.    

 

 

Author: Gary Craig

Head of City Growth

 

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


                                                                                     483                                               17 November 2020

Policy, Finance and Strategy Committee

23 October 2020

 

 

 

File: (20/1132)

 

 

 

 

Report no: PFSC2020/6/261

 

Council performance overview for the quarter ended 30 September 2020

 

Purpose of Report

1.    The report provides an overview of the Hutt City Council performance results for the period 1 July 2020 to 30 September 2020.

Recommendations

That the Committee notes and receives the report.

 

Background

2.    The performance results presented in this report are for Hutt City Council – the parent entity and not the consolidated group. These are unaudited results for the first quarter ended 30 September 2020. An external audit by Audit New Zealand will be completed at the end of the financial year.

Quarterly highlights and achievements

2.    There were a number of highlights and achievements over the quarter including receiving $42M of co-funding from the COVID Response and Recovery Fund, International credit rating agency Standard and Poor’s confirming that our AA credit rating was maintained and a new housing partnership. At the same time we had to deal with the uncertainty created by the resurgence of COVID with a shift in Alert Level. Refer to Appendix 1 for the detailed report on the highlights and achievements. 

 

Performance measure results

3.    The first quarter key performance indicator (KPI) results are included in this report together with broader outcome trend information. Refer to Appendix 2 for further detail information. 

 

Financial Performance Results

4.    This section provides an overview of the financial performance results for the period ended 30 September 2020. Further detailed information is available in Appendix 3.

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

6.    The year-to-date (YTD) net operating financial result is $7.7M (9.8%) favourable to budget. The full year (FY) forecast is $0.6M or 2.6% unfavourable compared to the budget mainly due to higher forecast operating expenditure of $3.3M partially offset by higher forecast revenue. 

7.    Table 1: Operating Results

$Millions

YTD Actual

YTD Revised Budget

Variance

FY Forecast

FY Revised Budget

Variance

FY Annual Plan

Operating revenue

15.5

13.2

2.3

17.4%

54.7

52.2

 

2.5

4.8%

52.2

Operating expenditure

43.3

48.3

5.0

10.4%

191.5

188.2

(3.3)

(1.8%)

188.2

Net operating deficit before rates income

(27.8)

(35.1)

7.3

20.8%

(136.8)

(136.0)

(0.8)

(0.6%)

(136.0)

Rates income

113.7

113.3

0.4

0.4%

113.5

113.3

0.2

0.2%

113.3

Net operating surplus/ (deficit)

85.9

78.2

7.7

9.8%

(23.3)

(22.7)

(0.6)

(2.6%)

(22.7)

Capital contributions

0.6

1.6

(1.0)

(62.5)

18.2

13.2

5.0

37.9%

13.1

Net surplus/ (deficit) before adjustments

86.5

79.8

6.7

8.4%

(5.1)

(9.5)

4.4

46.3%

(9.6)

Other non-operating adjustments

(1.2)

-

(1.2)

(1.2)

-

(1.2)

-

Net surplus/ (deficit)

85.3

79.8

5.5

6.9%

(6.3)

(9.5)

3.2

33.7%

(9.6)

 

8.    Operating revenue: The overall result is forecast to be $2.5M favourable (4.8%) to budget. This is largely due to higher consents and regulatory revenue of $0.9M and higher landfill revenue of $1.5M.  

9.    Operating expenditure(opex):  The opex budget of $188.2M for the year is forecast to be $3.3M (1.8%) unfavourable to budget. This largely due to forecast increased costs for Three Waters $0.8M (mainly higher network maintenance costs), Spatial planning costs $0.5M (offset by Suburban Shopping Centre capex not progressing), Consents and Regulatory service $0.5M (offset by higher revenue) and higher landfill costs (offset by revenue).

10. The Three Waters Reform first tranche of funding is not included in the forecast. The HCC share of this is expected to be $10.6M and will be spread over 2020/21 and 2021/22. The Funding Agreement had not been finalised with DIA at the time of preparing the September forecast. The $10.6M of funding includes $4.4M for operational expenditure focused on an expansion of condition assessment works $2M, maintenance and service improvement $1.6M, reducing operational leakage $0.5M and investment in drinking water safety. Wellington Water have advised that some of the forecast overspend for Three Waters will be able to be offset by the Three Waters reform funding and we are awaiting further advice in relation to this.

11.  Rates income: The rates income for the year of $113.3M is forecast to be $0.2M higher than budgeted mainly due to slightly higher growth than expected together with adjustments related to internal rates. 

12.  Capital contributions: These are forecast to be $5M higher than budgeted due to NZTA funding for the street lighting project $2.3M and the Naenae pool central government co-funding $2.7M (first milestone is on 30 June 2021).

13.  Non-operating adjustments: Losses on the fair value of derivatives was $1.2M at 30 September 2020. These are accounting (non-cash) adjustments related to fair value of the treasury derivatives portfolio and reflects the financial markets at the time.

Capital investment

14.  Table 3: Capital expenditure results

$Millions

YTD Actual

YTD Revised Budget

Variance

FY Forecast

FY Revised Budget

Variance

FY Annual Plan

Replacements

1.9

1.9

-

25.9

24.7

(1.2)

24.7

Improvements

4.9

7.1

2.2

48.6

56.0

7.4

56.0

Net deficit

6.8

9.0

2.2

74.5

80.7

6.2

80.7

 

15.  Capital expenditure delivery to-date is $6.8M or 9% of the full programme forecast for the year of $74.5M. Three Waters is forecast to be underspent by $7.7M at year end mainly due to the Barber Grove collector main works programme being delayed.

 

Project delivery performance

16.  Appendix 4 provides a performance overview of key projects. This includes a status update, top risks and issues, financial summary, next major milestones and engagement activities planned. The projects included are the District Plan, Eastern Bays Shared Path, Naenae Pool and spatial plan, Riverlink, Kerbside collection and Three waters investment. There are a range of risks and issues being managed, with further more detailed reporting and briefings provided to relevant committees. Officers will be attendance at the meeting to provide further updates and respond to queries.

 

Treasury Compliance

 

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

Measures

Policy

Actual

30 Sept 2020

Compliance

Net external debt/total revenue

Maximum 150%

112%

Yes

Net interest on external debt/total revenue

Maximum 10%

1.2%

Yes

Liquidity ratio

Minimum 110%

124%

Yes

 

18. Following a credit rating review by Standard and Poor’s Credit Rating Agency in July 2020, the Council’s credit rating was affirmed as AA with a Stable Outlook.

19. The average cost of funds at the end of September was 3 per cent, which was 0.5 per cent below the budgeted level. Interest cost savings of $0.4M have been forecast for the year mainly due to the delayed capital investment and lower interest rate environment. Net debt (excluding cash holdings and CCO investment) at 30 September 2020 was $178M.

20. Further detailed treasury information is available in appendix 5.

Climate Change Impact and Considerations

21.  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

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

Legal Considerations

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

 

Financial Considerations

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

Appendices

No.

Title

Page

1

Appendix 1:Quarterly Performance Report 1 July to 30 September 2020 v2

485

2

Appendix 2: Q1 2020 Non-Financial Performance Measures

491

3

Appendix 3: Summary financial results

506

4

Appendix 4: Project performance overview for period ended 30 September 2020

512

5

Appendix 5: Treasury Report for the period ended 30 September 2020

517

    

 

 

 

 

 

Author: Catherine Taylor

Senior Research and Evaluation Advisor

 

 

 

Author: Karl Eagle

Senior Management Accountant

 

 

 

Author: 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:Quarterly Performance Report 1 July to 30 September 2020 v2

 


 


 


 


 


 


Attachment 2

Appendix 2: Q1 2020 Non-Financial Performance Measures

 

 

 

2020-21 Quarter 1 Performance Report

Outcome Framework/Key Priority Measures

These are measures looking at areas the priority areas of housing and employment. They reflect outcomes which Council and its partners may be able to influence but don’t have complete control over.

Lower Hutt Population at June 2020 – 111,800

 

Average sale price

$697,171

Mean rent

$491

 

 

Job seeker benefit

3,765 people

Accommodation Supplement

7,445 people

 

Special needs grant for food

6,450 people

 

Housing

In September 2020 the QV data showed that the average sale price for houses, apartments and units in Lower Hutt was $691,171. This was up 15 percent from September 2019, and the highest monthly average on record.

Ministry of Business, Innovation and Employment rental bond data shows the average rent in Lower Hutt in September 2020 is $491, an increase of 11% from September 2019. However, this is a decrease of 8% from the peak ($532) recorded in May 2020.

Unemployment

In September 2020, 3,765 Lower Hutt residents received the job seeker benefit. This is an increase of 700 residents since March 2020 when Covid-19 lockdown occurred; an additional 500 residents are receiving the accommodation supplement.

The number of people in the Wellington Region receiving special needs grants is currently lower than in the 6 months prior to the Covid-19 lockdown period.

Population

The population of Lower Hutt as at June 2020 is estimated to be 111,800. That is an increase of 1,000 (1%) from the same time last year.

Service Performance Measures

Residents Satisfaction with Council Performance

 

 

            

Water supply       Loose litter & bins

 

           

Parks & Reserves     Community Halls

 

 

Control of dogs

 

 

Feeling consulted

 

    

Museums and Community Hubs

 

Cycle ways (on roads)

 

These measures are currently reported quarterly and, due to the low number of respondents each quarter, can result in fluctuations that are not meaningful statistically. For this reason we are working to change not only the measures, but the collection frequency and method and this will influence the rate of reporting.

Residents’ satisfaction with ‘overall council performance’ remained unchanged from the same quarter the year before, i.e. 86%. This measure fluctuates quarter to quarter and is based on residents’ perception of council performance and could be driven by a number of factors including external factors. Satisfaction has not been below 85% in the last five quarters.

Residents’ rating of Council’s ‘overall reputation’ has increased from 82% in the most recent quarter compared to the same quarter last year (79%). Again the measure fluctuates between quarters and is influenced by any number of factors.

Areas where resident satisfaction decreased this quarter include reliability of water supply (89%), management of loose litter and bins (72%), parks and reserves (92%) and community halls (91%).

“I think it's just about maintaining the community centres, in the lower decile areas.”

“Excellent apart from community houses and halls, need to be maintained.”

 

Residents’ satisfaction with the control of dogs increased significantly this quarter compared to last.

“10/10 for dog control. They follow up.”

“Good experience with dog control.”

 

Residents reported their level of “being consulted by Council in decision making” has increased significantly and is at an all-time high.

The Petone Settler’s Museum, Walter Nash Centre and Wainuiomata Community Hub all had 100 percent satisfaction. While the ‘adequacy of cycle ways on roads’ remains the only measure with a satisfaction level below 66 percent.

Social Wellbeing

Social Connection

Physical visits to libraries and hubs have increased month on month since reopening after the Covid-19 level 3 and 4 lock down periods. The quarter one visitor numbers were between 20 and 30 percent lower than the same time last year.

 

Community Engagement

This quarter satisfaction with consultation increased. This could be linked to other results: the number of Hutt City Council Facebook page followers continues to grow; increasing percentage of those on the Hutt at Heart mailing list opening the regular newsletter, and; satisfaction with loose litter decreasing due to the rubbish and recycling consultation bringing this to the forefront of residents’ minds.

Environmental Wellbeing

Water supply

As reported by Wellington Water, drinking water consumption remains above the target at a level that is unsustainable – 390 litres per day – higher than any previous quarter. As previously reported residents’ satisfaction with the water supply to their homes is at 89%.

Drinking water

Drinking water quality in Lower Hutt remains high with 100 percent compliance with all the critical water quality compliance standards.

Solid waste

The tonnage of recycling being collected at the recycling stations has increased this quarter compared to last, however tonnes of kerbside recycling has decreased. The percentage of contaminated recycling remains high but has decreased since last quarter.

Economic Wellbeing

Housing

Council has issued a large number of building consents (BCs) and code of compliance certificates (CCCs) in the first quarter of the 2020-21 year. This is likely to be a catch up following the Covid-19 lockdown period however, it also shows that this sector of the economy is recovering from the impacts of lockdown. In quarter one 483 BC’s were issued – 33 percent of the total issued in the 2019-20 year and, 446 CCC’s were issued – 40% of the total issued last year. 

The increase in the numbers of consents, certificates and registrations has meant that the targeted timeframes for some have not been met. 100 percent of BC’s were issued within the targeted timeframe, but only 76 percent of CCC’s.   The backlog of food premise verifications has been reduced over time – this has had no effect on the businesses operations continuing.

 


Non-Financial KPIs - Quarter 1 – 2020/21

Key Service Performance Measures

 

 July 2019 – June 2020 Year

July 2020 – June 2021 Year

Current-Previous Quarter[i]

Annual Data

Measures

Q1

Jul-Sep 2019

Q2

Oct-Dec 2019

Q3

Jan-Mar 2020

Q4

Apr-Jun 2020

Q1

Jul-Sep 2020

Q2

Oct-Dec 2020

Q3

Jan-Mar 2021

Q4

Apr-Jun 2021

Q4 19/20 – Q1 20/21

Year to date

(2020 /21)

Year end (2019 /20)

YTD vs target[1][2]

Social Wellbeing

Social Connection

Koraunui Stokes Valley

60,120

55,597

43,606

17,800

43,409

 

 

 

a

43,409

178,144

r

Wainuiomata Hub

102,957

111,597

71,490

17,734

80,861

 

 

 

a

80,861

303,778

a

Walter Nash Centre

213,395

152,685

110,818

40,338

173,336

 

 

 

a

173,336

517,236

r

Libraries (excl. Stokes Valley)

385,350

338,772

184,774

88,999

267,465

 

 

 

a

267,465

1,054,923

a

Libraries Online visits

121,557

112,087

111,228

68,213

114,421

 

 

 

a

114,421

413,085

r

Sessions on Connect

35,916

31,647

26,722

8,603

21,697

 

 

 

a

21,697

102,888

r

Swimming Pools

162,823

273,328

165,227

142,759

 

 

 

a

142,759

601,373

r

Dowse Museum

198,944

45,523

 

 

 

--

45,523

198,944

r

Petone Settlers Museum

8,959

2,939

 

 

 

--

2,939

8,959

r

Community Engagement

HCC Facebook page followers

n/a

16,216

17,117

17,775

18,120

 

 

 

a

 

 

--

Average monthly Facebook engagements with posts

n/a

23,265

36,159

21,327

16,780

 

 

 

--

 

 

--

Bang the Table - % who were ‘informed’

New measure

46%

 

 

 

--

46%

 

--

Bang the Table - % who were ‘engaged’

New measure

24%

 

 

 

--

24%

 

 

Hutt at Heart  - % who opened newsletter

34%

41%

39%

42%

45%

 

 

 

a

45%

39%

--

Hutt at Heart - % who clicked to view detailed article

12%

14%

10%

13%

16%

 

 

 

a

16%

12%

--

Environmental Wellbeing

Waste Management

Recycling station (tonnes)

640

757

478

113

334

 

 

 

a

334

1,988

--

% contamination of recycling station recycling

20%

36%

34%

39%

22%

 

 

 

a

22%

31%

--

Kerbside recycling (tonnes)

1,147

1,251

1,396

1,056

908

 

 

 

r

908

4,850

a

% contamination of kerbside recycling

2%

1%

2%

31%

14%

 

 

 

a

14%

8%

--

Drinking Water

Compliance with drinking water standards – part 4

100%

100%

100%

100%

100%

 

 

 

a

100%

100%

a

Compliance with drinking standards – part 5

100%

100%

100%

100%

100%

 

 

 

a

100%

100%

a

Average drinking water consumption / resident / day

375 l/p/d

345 l/p/d

Not available

380 l/p/d

390 l/p/d

 

 

 

r

390 l/p/d

380 l/p/d

r

Three Waters

Water supply interruptions (customer hours)

New measure

0.54

0.32

 

 

 

--

0.32

0.54

a

Number of wastewater blockages per km of pipeline (cumulative)

0.31

0.47

Not available

0.92

0.31

 

 

 

--

0.31

0.92

r

Number of stormwater blockages per km of pipeline (cumulative)

0.06

0.19

Not available

0.24

0.06

 

 

 

--

0.06

0.24

a

Economic Wellbeing

Housing

Building Consents – number issued

414

427

328

291

483

 

 

 

a

483

1,484

--

Building Consents - % issued within 20 days

100%

100%

100%

100%

100%

 

 

 

a

100%

100%

a

Code of Compliance – number issued

265

331

301

160

446

 

 

 

a

446

1,114

--

Code of Compliance - % issued within 20 days

100%

98%

75%

86%

76%

 

 

 

r

76%

88%

r

New homes built

 

 

 

 

tbc

 

 

 

--

tbc

493

--

Eco-designer home visits

New measure

46

 

 

 

--

46

n/a

--

Business

New food premises – number registered/licenced

10

16

27

18

31

 

 

 

a

31

71

a

New food premises - % issued within 6 weeks

30%

63%

60%

0%

13%

 

 

 

a

13%

41%

r

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Residents Satisfaction Survey: Detailed Reporting

Q1 Reporting 2020/21

 

 


 

Priorities

2018-19

2019-20

 

2020-2021

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

 

Q1

Q2

Q3

Q4

Housing

27%

27%

34%

27%

25%

34%

19%

24%

 

27%

 

 

 

Infrastructure

25%

25%

27%

25%

32%

30%

43%

25%

 

35%

 

 

 

Economic development

18%

20%

19%

17%

12%

14%

15%

19%

 

15%

 

 

 

Community safety

11%

13%

11%

18%

14%

11%

13%

17%

 

15%

 

 

 

Central city rejuvenation

14%

11%

6%

11%

15%

7%

5%

11%

 

5%

 

 

 

Outdoor spaces

4%

4%

3%

2%

2%

4%

5%

5%

 

3%

 

 

 

 


 

Outcome Measures Trend Data

 

Figure 1: Average residential sale price (houses / apartments / units) in Lower Hutt (source: QV sales data)

 

Figure 2: Mean rent cost for residential rental properties in Lower Hutt (source: MBIE bonds data)

 

Figure 3: Number of Lower Hutt residents receiving the accommodation supplement and/or job seeker benefit (source: Ministry of Social Development)

 

Figure 4: Number of residents in the Wellington Region receiving a special needs grant for food (source Ministry of Social Development)


Attachment 3

Appendix 3: Summary financial results

 


 


 


 


 


 


Attachment 4

Appendix 4: Project performance overview for period ended 30 September 2020

 


 


 


 


 


Attachment 5

Appendix 5: Treasury Report for the period ended 30 September 2020

 


 


 


                                                                                     522                                               17 November 2020

Policy, Finance and Strategy Committee

15 September 2020

 

 

 

File: (20/1076)

 

 

 

 

Report no: PFSC2020/6/262

 

New Zealand Local Government Funding Agency 2020 Annual Report

 

Purpose of Report

1.    The purpose of this report is to provide the Committee with the Local Government Funding Agency (LGFA) Annual Report for the year ended 30 June 2020.

Recommendation

That the Committee notes and receives the Local Government Funding Agency Annual Report for the year ended 30 June 2020.

 

Background

2.    The LGFA was incorporated on 1 December 2011 with the primary objective of optimising the debt funding terms and conditions for participating local authorities. This includes providing savings in annual interest costs, making longer-term borrowings available and enhancing the certainty of access to debt markets. Council became a principal shareholding local authority in the LGFA in May 2012.

3.    The LGFA issues bonds to wholesale and retail investors and on-lends the funds raised to participating local authorities with borrowing needs. The quality of the LGFA’s credit rating, and the liquidity created by issuing homogenous local authority paper, ensures that participating Councils can raise funds from the LGFA on better terms than if they were issuing in their own name.

4.    Borrowing Councils are required to subscribe for LGFA Borrower Notes (subordinated convertible non-voting bonds), at 1.6% of the face value of each borrowing from LGFA. LGFA requires the Borrower Notes as equity as their balance sheet grows and this avoids the need to continually go back to shareholders for additional capital. Borrower Notes pay interest on maturity of the notes at LGFA’s cost of funds.

5.    The LGFA meets the Local Government Act 2002 (the Act) definition of a Council Controlled Organisation (CCO) as one or more local authorities have the right, directly or indirectly, to appoint 50% or more of the directors.

6.    As a shareholder in the LGFA, the Council must regularly undertake performance monitoring to evaluate its contribution to the achievement of the Council’s desired outcomes.

Discussion

7.    Three new council members were added in the last year bringing the total number of member councils to sixty-seven.

8.    LGFA successfully provided certainty of access to markets through the difficult financing environment of the COVID-19 pandemic in 2019/20.

9.    The LGFA recorded a strong financial performance result for the year ended 30 June 2020, realising a net operating profit of $10.6M (2019: $11.2M), with Shareholder Equity of $83.6M (2019: $74.1M) as at 30 June 2020.

10.  By 30 June 2020, LGFA had loans outstanding of $10.9B, an increase of $1.6B on the prior year. LGFA provided an estimated 86% of the local government sectors borrowing required in 2019/20.

11.  The financial strength of LGFA was affirmed by credit rating agencies S&P Global Ratings and Fitch Ratings who both maintained AA+ rating, which is the same as the New Zealand Government.

12.  Council had borrowed $216M from the LGFA as at 30 June 2020 (2019:$179M). This is an increase of $37M since 30 June 2019. $3M of debt matured during the year, $10M was issued to part-fund Council’s 2019/20 capital works programme, $10M was issued to provide a liquidity buffer during the COVID-19 lockdown period and $20M was issued to pre-fund debt maturing in 2020/21.

13.  LGFA Borrowings include those on behalf of Council’s CCOs and all borrowings are in accordance with approved limits contained in Council’s Treasury Risk Management Policy.

14.  Council had $2.5M of LGFA Borrower Notes as at 30 June 2020 (2019: $2.5M).

15.  The full LGFA 2019/20 Annual Report is attached to this report together with the cover letter advising of the dividend distribution.

Consultation

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

Legal Considerations

17.  The Board of LGFA must deliver to Council (shareholder), and make available to the public, its 2019/20 Annual Report by no later than the 30 September 2020.

18.  The final Annual Report was provided to Council Officers on 30 August 2020 and was made publicly available via the LGFA website within the statutory deadline.

Financial Considerations

19.  The LGFA Board declared a dividend payment of $0.9M (2019: $1.1M) for the year ended 30 June 2020. The dividend rate was $0.03514 per paid up share. Council received a dividend of $3,514 (2019: $4,620) on 4 September 2020 from its $100,000 investment.

20.  The Board of LGFA approved the Annual Report on 28 August 2020 and KPMG issued an unmodified audit opinion on the same date.

Other Considerations

21.  In making this recommendation, officers have given careful consideration to the purpose of local government in section 10 of the Local Government Act 2002. Officers believe that this recommendation falls within the purpose of local government in that it allows Council to operate in a cost-effective manner.

Appendices

No.

Title

Page

1

Appendix 1: Cover letter to shareholders for Annual Report 2019/20

523

2

Appendix 2: LGFA Annual Report 2020

524

 

 

 

Author: Jenny Livschitz

Chief Financial Officer

 

 

 

Approved By: Anna Welanyk

Director Transformation and Resources

 


Attachment 1

Appendix 1: Cover letter to shareholders for Annual Report 2019/20

 


Attachment 2

Appendix 2: LGFA Annual Report 2020