Minutes of Hutt City Council

1 30 June 2021

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

Wednesday 30 June 2021 commencing at 2.00pm

PRESENT:	Mayor C Barry (Chair)	Deputy Mayor T Lewis
	Cr J Briggs	Cr K Brown
	Cr B Dyer	Cr S Edwards
	Cr D Hislop	Cr C Milne (part meeting)
	Cr A Mitchell	Cr S Rasheed (via audio-visual link)
	Cr N Shaw	Cr L Sutton

APOLOGIES: There were no apologies.

IN ATTENDANCE: Ms J Miller, Chief Executive

Ms A Blackshaw, Director Neighbourhoods and Communities (part meeting)

Mr M Boggs, Director Strategy and Engagement

Ms H Oram, Director Environment and Sustainability

Mr K Puketapu-Dentice, Director Economy and Development (part meeting)

Ms J Livschitz, Group Chief Financial Officer

Mr D Scott-Jones, Solicitor (part meeting)

Mr D Koenders, Manager Financial Strategy and Planning

Ms W Moore, Head of Strategy and Planning

Mr D Newth, Financial Accounting Manager (part meeting)

Ms A Andrews, Business Analyst – Rates (part meeting)

Ms H Stringer, Financial Transaction Services Manager (part meeting)

Mr M Sherwood, Head of Parks and Recreation

Mr A Marsh, Team Leader Parks (part meeting)

Mr B Hodgins, Strategic Advisor (part meeting)

Ms K Stannard, Head of Democratic Services

Ms K Glanville, Senior Democracy Advisor

PUBLIC BUSINESS

1. OPENING FORMALITIES - Karakia Timatanga

Kia hora te marino

Kia whakapapa pounamu te moana

He huarahi mā tātou i te rangi nei

Aroha atu, aroha mai

Tātou i a tātou katoa

Hui e Tāiki e!

May peace be wide spread

May the sea be like greenstone

A pathway for us all this day

Let us show respect for each other

For one another

Bind us together!

2. APOLOGIES

There were no apologies.

3. PUBLIC COMMENT

There was no public comment.

Cr Milne joined the meeting at 2.04pm.

4. CONFLICT OF INTEREST DECLARATIONS

Cr Hislop declared a conflict of interest in relation to Hutt City Communities Facilities Trust and Seaview Marina Limited and took no part in discussion or voting on the matters.

Cr Shaw declared a conflict of interest in relation to Hutt City Communities Facilities Trust and took no part in discussion or voting on the matter.

Cr Briggs declared a conflict of interest in relation to any matters relating to his declared interests and took no part in discussion or voting on the matters.

Cr Edwards declared a conflict of interest in relation to Remit 2 Rating Value of Forestry Land and took no part in discusison or voting on the matter.

Cr Brown declared a conflict of interest in relation to Urban Plus Limited and took no part in discussion or voting on the matter.

Cr Milne declared a conflict of interest in relation to any matters relating to his declared interests and took no part in discussion or voting on the matters.

MINOR ITEMS NOT ON THE AGENDA

MAYORAL STATEMENT

Mayor Barry acknowledged the resignation of former Councillor David Bassett on behalf of Council and the City. He thanked David for his service to the City of 14 years of which nine years was as Deputy Mayor. He wished David all the best in his new endeavours.

Mayor Barry read out his Mayoral Statement attached as pages 18-19 to the minutes.

CHIEF EXECUTIVE’S STATEMENT

The Chief Executive read out her Chief Executive’s Statement attached as pages 20-22 to the minutes.

Decisions on the wind-up of Hutt City Community Facilities Trust (21/791)

Report No. HCC2021/3/142 by the Financial Accounting Manager

Mr John Strahl, Chair of the Hutt City Community Facilities Trust (CFT), Mr Phil Fisher and Ms Emma Richards from PricewaterhouseCoopers were in attendance for the item.

Cr Hislop and Cr Shaw declared conflicts of interest and took no part in the discussion or voting on the matter.

The Financial Accounting Manager elaborated on the report.

Mr Fisher advised that he had conversations with the Inland Revenue Department (IRD) and there were no concerns from IRD in regard to the tax provisions. He confirmed that he was still waiting for the binding ruling from IRD.

Mr Strahl expressed his apprecation, on behalf of the CFT Board, for Council’s support.

In response to a question from a member, the Group Chief Financial Officer advised that she had no concerns with the delay in receiving the ruling from IRD. She highlighted that any decisions, in relation to resolving the ruling, would be delegated to the Long Term Plan Working Group.

Resolved: (Mayor Barry/Cr Edwards) Minute No. C 21301

“That Council:

(1) notes and receives the report;

(2) notes the updated report from PricewaterhouseCoopers attached as Appendix 1 to the report;

(3) notes the further verbal update from PricewaterhouseCoopers at 30 June 2021 regarding the Inland Revenue Department binding ruling;

(4) agrees to delegate to the Long Term Plan Working Group (comprising the Mayor, Deputy Mayor and Chairs of the Committee) final decisions in relation to resolving the IRD binding ruling matter and the effective date for the wind-up of Hutt City Community Facilities Trust;

(5) agrees to proceed with the wind-up of Hutt City Community Facilities Trust effective as at 30 June 2021 at 11:59 pm if the tax ruling or written draft ruling is obtained by that time or at a later date to be decided by the Long Term Plan Working Group;

(6) agrees that the Common Seal of Council be affixed to the Deed for the wind-up of Hutt City Community Facilities Trust as attached as Appendix 2 to the report, subject to any necessary amendments due to the deferred timing as decided by the Long Term Plan Working Group;

(7) agrees that all the current trustees remain in office to complete all necessary and required wind-up actions that cannot be completed in advance of 30 June 2021, as detailed in Section D contained within the report;

(8) receives and agrees that the finalisation of the Hutt City Community Facilities Trust Statement of Intent for 2021/22 to 2023/24, reported as a draft to the Policy, Finance and Strategy Committee on 23 February 2021, not proceed subject to final decisions of the Long Term Plan Working Group. Refer Appendix 3 attached to the report;

(9) endorses the decisions of the Long Term Plan Working Group (comprising the Mayor, Deputy Mayor and Chairs of standing committees) as detailed in Section G contained within the report; and

(10) thanks Mr John Strahl as Chair and trustees, past and present, for their service, time and contribution to the Hutt City Community Facilities Trust.”

Adoption of Long Term Plan 2021-2031 (21/801)

Report No. HCC2021/3/138 by the Budgeting and Reporting Manager

Mr Andrew Clark, Audit Director from Audit New Zealand was in attendance for the item.

The Group Chief Financial Officer elaborated on the report.

Mr Clark advised that he was in a position to provide Council with an unmodified audit opinion. He highlighted three key areas of uncertainty that Audit New Zealand had considered as part of the audit process. He highlighted the uncertainities as being the Three Waters reform, the Three Waters asset renewal forecasts and the delivery of the capital programme. He also advised that Waka Kotahi had been in communication advising that its funding was less than what was included in Council’s Long Term Plan. He believed this was not significant enough for Audit New Zealand to include the information in the final audit opinion. He asked Council to consider how it would manage the shortfall over the next three years.

In response to a question from a member, Mr Clark advised that the audit had gone very well with very thoughtful information being provided by officers.

In response to a question from a member, the Group Chief Financial Officer advised that the Head of Transport would be reporting to a future meeting with options on how Council could manage the funding shortfall.

In response to a question from a member regarding the new information on the Petone Wharf, the Group Chief Financial Officer advised that the officer’s recommendations allowed for minor changes to be made to the Long Term Plan document.

In response to a question from a member, the Group Chief Financial Officer advised that she was personally delighted with what her team had achieved during the Long Term Plan process. She highlighted the quality of advice and depth of information her team had presented and the excellent engagement with Councillors.

The Chief Executive advised that officers had worked together early in the process to identify the challenges and opportunities and then worked through improving the process.

Cr Dyer commended the Chief Executive, Group Chief Financial Officer, officers and members for their work on the Long Term Plan. He believed that Council could have addressed the deficit sooner than 2028. He also believed that the Three Waters reform would flip the Long Term Plan on its head in two years time.

Cr Hislop stated that it had been an amazing Long Term Plan process. She thanked officers and members for all the hard work. She noted that she was proud of the pragmatic way that Council had worked through the process.

Cr Shaw thanked all those involved in the Long Term Plan process. She believed that the process had been fair and balanced and there had been open and honest discussions with the community.

Deputy Mayor supported the comments made by previous members.

Mayor Barry thanked Mr Clark for the clean audit opinion and for his positive feedback. He thanked members of the community for their involvement through the Long Term Plan process noting that it was in effect their Long Term Plan. He stated that the Long Term Plan was committed to getting the basics right and providing the foundations for a growing City. He acknowledged that there was still work to do around the Intergrated Transport Plan, Council’s commitment to climate change and the review of the District Plan. He highlighted the positive feedback received from the community, key stakeholders and partners and manu whenua.

Resolved: (by dvision) (Mayor Barry/Deputy Mayor Lewis) Minute No. C 21302

“That Council:

(1) receives the information;

(2) endorses the decisions of the Long Term Plan Working Group (comprising the Mayor and Chairs of standing committees) as detailed in table 2 contained in the report;

(3) notes that the Long Term Plan 2021-2031, attached as Appendix 1 to the report, has been prepared based on the final decisions of Council on 9 June 2021 and the subsequent decisions of the Long Term Plan Working Group(refer table 2 contained within the report);

(4) receives the audit opinion from Audit New Zealand;

(5) resolves that it is financially prudent to have an unbalanced budget until 2028/29 as detailed in Section E of the report;

(6) agrees to adopt the Revenue and Financing Policy, included in Appendix 1, Section 4 attached to the report;

(7) agrees to adopt the Long Term Plan 2021-2031 attached as Appendix 1 to the report; and

(8) agrees that the Chief Executive be delegated authority to make minor changes to the Long Term Plan 2021-2031 document, refer Section G contained in the report.”

The motion was declared carried by division with the voting as follows:

For

Mayor Barry

Deputy Mayor Lewis

Cr Briggs

Cr Brown

Cr Dyer

Cr Edwards

Cr Hislop

Cr Mitchell

Cr Rasheed

Cr Shaw

Cr Sutton

Against

Cr Milne

Total: 11

Total: 1

Cr Brown left the meeting at 2.44pm.

Setting of rates for 2021/22 (21/802)

Report No. HCC2021/3/139 by the Business Analyst – Rates

The Group Chief Financial Officer elaborated on the report.

Cr Brown rejoined the meeting at 2.46pm.

Cr Dyer acknowledged the work undertaken to change the targeted rate for the small rubbish bin which he considered would be well received by the community.

Resolved: (By DIVISION) (Mayor Barry/Cr Dyer) Minute No. C 21303

“That Council resolves to set the rates and add penalties to unpaid rates during the 2021/22 rating year by passing the following resolution:

Targeted and General Rates

1. In accordance with the relevant provisions of the 2021-31 Long Term Plan and the Funding Impact Statement including Rates for 2021-2022, the Council hereby resolves, pursuant to Section 23 of the Local Government (Rating) Act 2002, to set and assess the following Hutt City Council rates for the year commencing 1 July 2021 and ending 30 June 2022. All amounts are inclusive of Councils GST obligations.

(a) A Targeted Rate (Water Supply Rate) set and assessed under sections 16 to 18 of the Local Government (Rating) Act 2002. The water supply charges for 2021-22 are as follows:

1. A charge of $520.00 per separately used or inhabited part (SUIP) on a rating unit which is connected to the water reticulation system and is not metered.

2. A charge of $260.00 per SUIP on a rating unit that is not connected to, but is able to be connected to, the water reticulation system.

3. A charge of $520.00 per rating unit which is connected to the water reticulation system and contains more than one separately used or inhabited part, where a water meter has been installed to measure the total water consumed.

(b) A Targeted Rate (Wastewater Rate) set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002. The wastewater charges for 2021-22 are as follows:

1. A charge of $559.00 per SUIP on a rating unit which is connected to the city wastewater system.

2. For rating units in the commercial categories, an additional charge of $279.50 or 50% of the above charge for the second and subsequent water closet or urinal connected to the wastewater system from each rating unit

(c) A Targeted Rate (Recycling Charge) set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002. The recycling charge for 2021-22 is $105.00 per SUIP on every rating unit in the Residential or Rural categories that can be serviced.

(d) A Refuse Collection Targeted Rate set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002. The refuse charges for 2021-22 are as follows:

CATEGORY	Provision or availability	Per SUIP
Residential and Rural rating units	80 Litre or equivalent	$105.00
Residential and Rural rating units	120 Litre or equivalent	$144.00
Residential and Rural rating units	240 Litre or equivalent	$288.00
Residential and Rural rating units	Able to be serviced but not serviced	$105.00

(e) A Green Waste Collection Targeted Rate set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002. The green waste charge for 2021-22 is $95.00 per SUIP on every rating unit in the Residential or Rural categories that has opted in to receive the green waste service.

(f) A Targeted Rate (Jackson Street Programme Rate) set and assessed under sections 16 and 17 of the Local Government (Rating) Act 2002. The Jackson Street Programme charge for 2021-22 is 0.00074897 on every rating unit in the Commercial Suburban differential category having frontage to Jackson Street, Petone, between Hutt Road and Cuba Street.

(g) A General Rate set and assessed under sections 13 and 14 of the Local Government (Rating) Act 2002. The general rate charge for the 2021-2022 rating year is as follows:

CATEGORY	DIFFERENTIAL	CHARGE PER $ OF CAPITAL VALUE
Residential	1.000	0.257612 cents
Rural	0.747	0.192436 cents
Commercial Central	2.997	0.772187 cents
Commercial Suburban	2.781	0.716327 cents
Utility Networks	2.842	0.732137 cents
Community Facilities 1	1.000	0.257612 cents
Community Facilities 2	0.500	0.128806 cents
Community Facilities 3	2.344	0.603842 cents

Rates Instalments

2. The targeted rates and the general rate for the financial year ending 30 June 2022, as set out above, are payable in six equal instalments by the following due dates:

INSTALMENT NUMBER	DUE DATE	PENALTY DATE
One	20 August 2021	23 August 2021
Two	20 October 2021	21 October 2021
Three	20 December 2021	21 December 2021
Four	21 February 2022	22 February 2022
Five	20 April 2022	21 April 2022
Six	20 June 2022	21 June 2022

Penalties on unpaid rates

3. The Council resolves, pursuant to sections 57 and 58 of the Local Government (Rating) Act 2002, except as stated in 4 below, that:

a) A penalty of 10% will be added to the amount of any instalment remaining unpaid by the relevant due date above.

b) A penalty of 10% will be added to the amount of any rates assessed in previous years remaining unpaid on 20^th August 2021.

c) A further penalty of 10% will be added to the amount of any rates to which a penalty has been added under b) above and which remain unpaid on 21^st February 2022.

4. No penalty shall be added to any rate account if:

· A direct debit authority is in place for payment of the rates by regular weekly, fortnightly or monthly installments, and payment in full is made by the end of the rating year.

· Any other satisfactory arrangement has been reached for payment of the current rates by regular installments by the end of the rating year.”

The motion was declared carried by division with the voting as follows:

For

Mayor Barry

Deputy Mayor Lewis

Cr Briggs

Cr Brown

Cr Dyer

Cr Edwards

Cr Hislop

Cr Mitchell

Cr Rasheed

Cr Shaw

Cr Sutton

Against

Cr Milne

Total: 11

Total: 1

Lending to Council Controlled Organisations (21/803)

Report No. HCC2021/3/140 by the Financial Accounting Manager

Crs Brown and Hislop declared conflicts of interest and took no part in discussion or voting on the matter.

The Group Chief Financial Officer elaborated on the report.

Resolved: (Mayor Barry/Deputy Mayor Lewis) Minute No. C 21304

“That Council:

(1) approves extending the maturity of existing loan agreements to allow Council to on-lend up to;

(a) $2.7M to Seaview Marina Limited; and

(b) $43M to Urban Plus Limited;

(2) agrees that these approvals will cover the period up to 30 June 2031;

(3) agrees that the maximum maturity date for any loan is limited to 30 June 2031;

(4) agrees that the margin on loans to Seaview Marina Limited and Urban Plus Limited remain unchanged at 1%;

(5) approves officers entering into the necessary amended loan agreements between Council and Seaview Marina Limited, with the revised terms and conditions associated; and

(6) approves officers entering into the necessary amended loan agreements between Council and Urban Plus Limited, with the revised terms and conditions associated with these loans.”

Proposed change to funding for Hutt Valley Gymnastics (21/910)

Report No. HCC2021/3/141 by the Head of Parks and Recreation

Mr Darren Sears and Mr Dave Whiting from Hutt Valley Gymnastics (HVG) were in attendance for the item.

The Head of Parks and Recreation elaborated on the report.

Mr Sears advised that HVG had 747 members, 1,000 casuals and a waiting list of 120. He elaborated on the larger facility which HVG had secured. He stated that the larger facility gave HVG the stability and potential to grow due to the long term lease. He noted that it would be a regional facility as well as provide programmes for local schools. He thanked Mayor Barry, Deputy Mayor Lewis, Councillors and the Corporate Leadership Team for their continued support during the long process.

In response to a question from a member, Mr Sears advised that there was substantial off-street parking for visitors during the week and additional parking available during the weekends.

In response to questions from a member, the Head of Parks and Recreation advised that there would be no waiting list once HVG moved into the new facility. He also advised that Avalon Rugby Club and Fraser Park Sportsville had been notified of the intention to demolish the earthquake prone clubrooms.

In response to questions from members, Mr Sears stated that HVG employed a high percentage of elite coaches from Lower Hutt. He also advised the new facility was surrounded by industry and there was no ability for further recreational sport. He acknowledged there was potential for growth with like-minded indoor sporting codes. He admitted that outdoor sporting codes would struggle because of the location of the new facility. He advised that HVG ‘s sustainbility model was based on an initial downturn of members when moving into the new facility. He highlighted that the blending of other local sporting codes would add 200 new members from day one. He noted that there was the opportunity for sub-leasing as well as marketing and promoting. He stated that HVG would be making contact with all local schools including Randwick School.

Cr Edwards expressed support for the motion. He admitted some awkwardness as Council had yet to develop a Sporting Strategy.

Cr Dyer expressed support for the motion and anticipated the proposed Sporting Strategy would give direction on how Council funds the various sporting codes.

Cr Briggs expressed support for the motion. He expressed some awkwardness with the lack of a clear strategy and policy on how Council funded the sporting codes in the City.

Mayor Barry echoed the comments made by previous members. He applauded HVG for taking up the opportunity and securing its future. He acknowledged that Council needed a clear policy on how Council funded sporting codes.

Resolved: (UNANIMOUS) (Mayor Barry/Cr Brown) Minute No. C 21305

“That Council:

(1) notes that funding of $500k is included in the 2020/21 budget as a contribution towards the building of a gymnastics facility;

(2) notes the letter from Hutt Valley Gymnastics Centre Inc, attached as Appendix 1 to the report;

(3) agrees to reallocate $200k of this funding to a grant for Hutt Valley Gymnastics towards fit-out and lease costs of an alternative venue;

(4) agrees to allocate a further $120k of this funding towards demolition of the ex-Avalon rugby clubrooms; and

(5) notes that this will result in a $180k saving against budget.”

For the reasons that this alternative proposal still delivers on the outcomes sought by Council at a reduced cost.

10.

Revocation of Reserve and Sale of Council Land - Mitchell Park (21/932)

Report No. HCC2021/3/143 by the Team Leader Parks

Cr Milne declared a conflict of interest and left the Council table for the duration of the item.

The Team Leader Parks elaborated on the report.

In response to a question from a member, the Team Leader Parks advised that the $2.8M was the total amount for the project. He noted that Hutt Valley Tennis Inc. had yet to raise the funding balance for the project.

In response to questions from members, the Head of Parks and Recreation advised that Council’s decision in December 2020 clearly outlined that the net proceeds of the sale would go to the tennis facilities at Mitchell Park. He confirmed that the tennis courts were available for the public to hire. He also confirmed that Council would not release the funding until a number of conditions were met by Hutt Valley Tennis Inc.

Mayor Barry foreshadowed an additional recommendation relating to public access to the tennis courts.

Resolved: (Mayor Barry/Cr Hislop) Minute No. C 21306

“That Council:

(1) notes that on 8 December 2020 Council resolved:

agrees to initiate a proposal to revoke the reserve status of approximately 1640m2 of land at Mitchell Park, (as shown in the plan in paragraph five of the report), for the purposes of making the land available for sale to Hutt Valley Health Limited with the net proceeds of sale being used to enhance tennis facilities on the Park;

(2) notes that the proposal to revoke the reserve status of a portion of land at Mitchell Park was publicly notified with no submissions objecting to the proposal;

(3) approves the proposal to revoke the reserve status of the land at Mitchell Park measuring 1,436m2 (more or less) being a part of Pt Lot 1 on DP25427 and declares the land surplus for sale;

(4) instructs officers, as required by the Reserves Act 1977, to forward its revocation decision to the Department of Conservation (DOC) for ratification;

(5) agrees, subject to DOC ratification of the reserve revocation, to sell the land to Lower Hutt Health Limited for the sum of $1.4M plus GST if any;

(6) agrees the net proceeds of sale be used to re-invest and enhance tennis facilities at the Park through a direct grant to Hutt Valley Tennis Inc;

(7) notes that the decision to reinvest the proceeds of sale in part 6 above is in addition to the $500k already granted by Council to Hutt Valley Tennis Inc;

(8) approves an extension of the existing right of way over part of Mitchell Park in favour of 135 Witako Street to the land that is subject to revocation and sale for the purpose of providing legal access to all of that property; and

(9) ensures that the public access at Hutt Valley Tennis Inc remains and hireage of courts is at an affordable rate as agreed with officers.”

For the reasons the proposal to revoke the reserve status and sell the land has less than minor impact on the reserve functions and will benefit tennis and any value realised from the sale of the property will be used to re-invest into a community facility.

Cr Sutton left the meeting at 3.17pm.

11.

Local Government New Zealand - Remits for Annual General Meeting August 2021 (21/990)

Report No. HCC2021/3/149 by the Head of Democratic Services

Cr Edwards declared a conflict of interest in relation to remit 2 and took no part in discussion or voting on the matter.

The Head of Strategy and Planning elaborated on the report.

Cr Sutton joined the meeting at 3.17pm.

The Head of Strategy and Planning highlighted new information in relation to remit 3. She advised that students knew very little about local government although civics education was already in the National Curriculum. She also advised that in relation to remit 2, the City had six foresty blocks with low value so the remit was not expected to have an impact on the City.

Remit 1

In response to a questions from a member, the Head of Strategy and Planning advised the remit would be considered as part of the legislative development of the Resource Management Act. She acknowledged that if the remit was successful, it could have an effect on Plan Change 36 in a few years’ time.