HuttCity_TeAwaKairangi_BLACK_AGENDA_COVER

 

 

KOMITI RATONGA RANGATŌPŪ ME TE RAUTAKI
Policy, Finance and Strategy Committee

 

 

15 February 2022

 

 

 

Order Paper for the meeting to be held in the

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

on:

 

 

 

Tuesday 22 February 2022 commencing at 2.00pm

 

This meeting is held under the Red Traffic Light setting.

Members of the public wishing to speak to items on the agenda are asked to contact democraticservicesteam@huttcity.govt.nz.

 

Membership

 

 

Cr S Edwards (Chair)

Mayor C Barry

Cr G Barratt

Cr J Briggs

Cr K Brown (Deputy Chair)

Cr B Dyer

Cr D Hislop

Deputy Mayor T Lewis

Cr C Milne

Cr A Mitchell

Cr S Rasheed

Cr N Shaw

Cr L Sutton

 

 

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

 

Have your say

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

 


POLICY, FINANCE & 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
Membership RMA Hearings:	An independent Commissioner plus a minimum of either 3 or 4 elected members (including the Chair) and alternates who have current certification under the Making Good Decisions Training, Assessment and Certification Programme for RMA Decision-Makers. 
Reports to:		Council

HuttCity_TeAwaKairangi_SCREEN_MEDRES

OVERVIEW:

This Committee assists Council in setting the broad direction of the city, discharging statutory functions, and overseeing organisational performance.

The Committee is aligned with the Transformation & Resources, and Strategy & Engagement, Directorates.

Its areas of focus are:

§   Long term/high level strategic focus

§   Long Term Plan/Annual Plan oversight

§   District Plan oversight

§   Housing/homelessness

§   City growth/economic development

§   Financial and non-financial performance reporting

§   Oversight of Property Working Group

§   Oversight of strategies and policies

§   Bylaw development

§   Oversight of CCOs/approval of SOIs

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 overseeing the development of strategies, policies, bylaws and work programmes to achieve those goals. This committee is also responsible for monitoring the overall financial management and performance of the Council Group.

DELEGATIONS FOR THE COMMITTEES AREAS OF FOCUS:

§  All powers necessary to perform the Committee’s responsibilities including the activities outlined below.

§  Develop required strategies and policies. Recommend draft and final versions to Council for adoption where they have a city-wide or strategic focus.

§  Implement, monitor and review strategies and policies.

§  Oversee the implementation of major projects provided for in the LTP or Annual Plan.

§  Oversee budgetary decisions provided for in the LTP or Annual Plan.

§  Recommend to Council the approval of any financial decisions required outside of the annual budgeting process.

§  Maintain an overview of work programmes carried out by the Council’s Transformation & Resources, and Strategy & Engagement, Directorates.

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

§  Approval and forwarding of submissions.

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

§  The committee has the powers to perform the responsibilities of another committee where it is necessary to make a decision prior to the next meeting of that other committee. When exercised, the report/minutes of the meeting require a resolution noting that the committee has performed the responsibilities of another committee and the reason/s.

§  If a policy or project relates primarily to the responsibilities of the Policy, Finance & Strategy Committee, but aspects require additional decisions by the Communities Committee, Infrastructure & Regulatory Committee and/or Climate Change & Sustainability Committee, then the Policy, Finance & Strategy Committee has the powers to make associated decisions on behalf of those other committees. For the avoidance of doubt, this means that matters do not need to be taken to more than one of those committees for decisions.

District Plan Delegations:

§  Undertake a full review of the City of Lower Hutt District Plan, including oversight of the District Plan Review Subcommittee in establishing a District Plan work programme and monitoring its implementation.

§  Consideration of matters related to the preparation and ongoing monitoring of the City of Lower Hutt District Plan.

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

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

§  The Chair of the Policy, Finance & Strategy Committee, in conjunction with the Chief Executive, is authorised to appoint a District Plan Hearings Subcommittee of suitably qualified persons to conduct hearings on behalf of the Committee.

Bylaw Delegations:

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

§  Recommend to Council the approval of draft bylaws prior to consultation.

§  The Chair of the Policy, Finance & Strategy Committee, in conjunction with the Chief Executive, is authorised to appoint a Subcommittee of suitably qualified persons to conduct hearings on draft bylaws on behalf of the Committee.

§  Recommend to Council new or amended bylaws for adoption.

Financial, Project and Performance Reporting Delegations:

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

§  Monitor progress towards achievement of budgets and objectives for the Council Group 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 city-wide or strategic projects including operational contracts, agreements, grants and funding, except where these are the responsibility of another standing committee.

§  Monitor progress towards achievement of the Council’s outcomes as set out in its overarching strategies for the city and their associated plans.

§  Oversee the activities of the Property Working Group in its implementation of the Purchase and Sale of Property for Advancing Strategic Projects Policy.

§  Oversee the acquisition and disposal of property in accordance with the LTP.

§  Monitor the integrity of reported performance information at the completion of Council’s Annual Report process.

§  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.

 

NOTE:

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

Reasons for the importance of the training:

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

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

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

 

    


HUTT CITY COUNCIL

 

KOMITI RATONGA RANGATŌPŪ ME TE RAUTAKI
Policy, Finance and Strategy Committee

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

 Tuesday 22 February 2022 commencing at 2.00pm.

 

ORDER PAPER

 

Public Business

 

Opening formalities - Karakia Timatanga (22/348)

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!

1.       APOLOGIES

No apologies have been received.

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

a)      Seaview Marina Limited Draft Statement of Intent 2022/23 to 2024/25 (22/210)

Report No. PFSC2022/1/20 by the Senior Management Accountant          10

Chair’s Recommendation:

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

 


 

 

b)      Urban Plus Group Draft Statement of Intent 2022/23 to 2024/25 (22/220)

Report No. PFSC2022/1/21 by the Senior Accountant                                36

Chair’s Recommendation:

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

 

c)       Kaupapa Here Tapanga (Naming Policy) (22/74)

Report No. PFSC2022/1/22 by the Acting Head of Strategy and Planning 63

Chair’s Recommendation:

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

 

d)      Review of Financial Delegation Policy and Procurement Policy (22/17)

Report No. PFSC2022/1/24 by the Group Chief Financial Officer              83

Chair’s Recommendation:

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

 

e)      Recommendations from the District Plan Review Subcommittee: Resource Management (Enabling Housing Supply and Other Matters) Amendment Act 2021 and its to implications for the District Plan review (22/352)

Report No. PFSC2022/1/41 by the Senior Environmental Policy Analyst 106

f)       Recommendatoins from the District Plan Review Subcommittee: Intensification Planning Instrument - Initial Option Identification and Analysis (22/353)

Report No. PFSC2022/1/42 by the Senior Environmental Policy Analyst 141

g)      2022 Triennial Local Government Elections (22/171)

Report No. PFSC2022/1/23 by the Electoral Officer                                  198

Chair’s Recommendation:

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

 


 

 

5.       Seaview Marina Limited Six Month Report to
31 December 2021
(22/183)

Report No. PFSC2022/1/27 by the Senior Management Accountant                 202

Chair’s Recommendation:

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

6.       Urban Plus Group Six Month Report to 31 December 2021 (22/221)

Report No. PFSC2022/1/26 by the Senior Accountant                                       212

Chair’s Recommendation:

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

7.       Hutt Valley Chamber of Commerce Six Monthly Report to 31 December 2021 (22/78)

Report No. PFSC2022/1/25 by the Head of Business and Economy                  229

Chair’s Recommendation:

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

8.       Seaview Business Association 12 Monthly Report to 31 December 2021 (22/79)

Report No. PFSC2022/1/28 by the Advisor - Business and Economy                247

Chair’s Recommendation:

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

9.       Council performance overview for the half year ended 31 December 2021 (22/18)

Report No. PFSC2022/1/29 by the Principal - Portfolio Performance                253

Chair’s Recommendation:

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

 


 

10.     Information Items

a)      Three Waters Reform Update (22/211)

Report No. PFSC2022/1/30 by the Strategic Advisor                                320

Chair’s Recommendation:

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

b)      Policy, Finance and Strategy Committee Work Programme 2022 (22/227)

Report No. PFSC2022/1/31 by the Democracy Advisor                            337

Chair’s Recommendation:

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

11.     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.

12.     EXCLUSION OF THE PUBLIC

CHAIR'S RECOMMENDATION:

 

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

13.     Strategic Property Portfolio - Update (22/77)

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


 

 

 

(A)

(B)

(C)

 

 

 

General subject of the matter to be considered.

Reason for passing this resolution in relation to each matter.

Ground under section 48(1) for the passing of this resolution.

 

 

 

Strategic Property Portfolio - Update.

The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) (s7(2)(i)).

That the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exist.

 

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

 

Judy Randall
DEMOCRACY SERVICES

 

 


                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

02 February 2022

 

 

 

File: (22/210)

 

 

 

 

Report no: PFSC2022/1/20

 

Seaview Marina Limited Draft Statement of Intent 2022/23 to 2024/25

 

Purpose of Report

1.    The purpose of this report is to provide the draft 2022-2025 Statement of Intent for Seaview Marina Limited for Council to review.

Recommendations

That the Committee recommends that Council:

 

1.    notes the Seaview Marina (SML) board has submitted a draft Statement of Intent (SOI) for the three years 2022/23 to 2024/25, attached as Appendix 1 to this report, in accordance with the Local Government Act 2002;

2.    notes that officers have reviewed the draft SOI for compliance with the Local Government Act 2002 and provided their analysis;

3.    receives the draft SOI;

4.    reviews the draft SOI and considers if any modifications should be made; and

5.    provides comment for the SML Board to consider in finalising its SOI (including any modifications suggested by the Committee arising under recommendation (4) above).

 

Background

2.    The Local Government Act 2002 (LGA) requires the board of a Council Controlled Organisation (CCO) to deliver to its shareholders a draft SOI on or before 1 March of each year.

Discussion

3.    The board of SML has submitted a draft SOI to Council.  This is attached as Appendix 1 of this report.

4.    The board of a CCO must provide information prescribed by the LGA for the SOI, to the extent is appropriate given the organisation form of the CCO.  They must do this for the ‘the group’ – which comprises the CCO and its subsidiaries.  The information is required to be provided for the 2021/22 financial year and the two years following that (section 9, Schedule 8 of the LGA).

5.    The compliance of the company with the legislative requirements for the SOI and a summary of the amendments proposed by the Board for their 2022-2025 SOI are detailed below:


 

Required Content

SML Draft SOI Content

(a) the objectives of the company

The objectives of the SML are stated.

(b) a statement of the board’s approach to governance of the group

A statement is included.

(c) the nature and scope of the activities undertaken by the group

The nature and scope of activities are outlined – no significant changes.

(d) the ratio of consolidated shareholders’ funds to total assets, and the definition of those terms

Ratio provided.

(e) the accounting policies of the group

Accounting policies are outlined.

(f) the performance targets and other measures by which performance of the group may be judged in relation to its objectives

Performance targets are included. 

(g) an estimate of the amount or proportion of accumulated profits and capital reserves that is intended to be distributed to the shareholders

Information provided. 

(h) the kind of information to be provided to the shareholders by the group during the course of those financial years, including the information to be included in each half yearly report (and, in particular, what prospective financial information is required and how it is to be presented)

The kind of information to be provided is outlined.  

(i) the procedures to be followed before any member or the group subscribes for, purchases, or otherwise acquires shares in any company or other organisation

Information on procedures is not provided but it is noted that there is no intention to subscribe or invest in any other organisation. 

(j) any activities for which the board seeks compensation from any local authority (whether or not the local authority has agreed to provide the compensation)

No compensation requested.

(k) the boards estimate of the commercial value of the shareholders’ investment in the group and the manner in which and the times at which that value is to be reassessed

A statement as to the net value of shareholder’s investment is provided.

(l) any other matters that are agreed by the shareholders and the board

Some additional information is provided.

 

6.    The draft SOI has been prepared to address the priorities included in the Letter of Expectation it received from Council on 17 December 2021.  

7.    There are no significant differences to the previous SOI.  Dividend payments are planned to start in 2023/24 and are exactly in line with the payments indicated in last year’s SOI.  However, it should be noted:

a.       the SML Board has not yet set the dividend policy.  A dividend policy will be developed on completion of the in-water development for consideration and approval by the shareholder; and,

b.       future dividends to the shareholder, are likely to be a set as a percentage of after- tax profits, rather than in fixed dollar amounts.

8.       It is important to note that the Hutt City Council Long Term Plan 2021-2031 included assumed dividends of $200,000 per annum being paid by Seaview Marina Limited to the Council from 2023/24 onwards. The draft SOI has been prepared on the same basis. 

Legal Considerations

9.    Council may suggest changes which the Board must consider in finalising its SOI.  The Board must consider within two months of 1 March any comments on the draft SOI that are made by the shareholders.  The Board must deliver a completed SOI to Council on or before 30 June 2022.

10.  Outside of this current process, the Council may, by resolution, require the Board to modify the SOI and the Board must comply (section 5, Schedule 8 LGA), provided that Council first consults the Board.

Financial Considerations

11.  The draft SOI contains the financial forecasts for SML for the three-year period commencing 1 July 2022.  Council will also need to decide whether the prescribed ROE for the next year should be revised.

12.  Last financial year, SML was required to achieve a prescribed rate of return on equity (ROE) of at least 4.8% in 2022/23 and 3.4% in 2023/24.  However, due to the need to increase staffing, increased insurance and security costs, combined with an increase in the breakwater lease from $100k to $120k, the planned ROE will fall below the prescribed 4.8% target for 2022/23. Excluding the breakwater lease payments, a ROE of 3.7%, 4.7% and 5.5% is achievable in each year from 2022/23 respectively:


 

Return on Equity

2022/23 Budget

2023/24 Planned

2024/25 Planned

Prescribed ROE including Breakwater Lease Payment (previous SOI)

4.8%

3.4%

Not Applicable

Planned ROE including Breakwater Lease Payment

2.5%

3.5%

4.2%

Planned ROE excluding Breakwater Lease Payment

3.7%

4.7%

5.5%

 

13.  The draft SOI proposes that the ROE be lowered to 2.5% for 2022/23 and reviewed annually in subsequent years.

14.  The Total Equity of SML is estimated to be $9.9M on 30 June 2022.

Appendices

No.

Title

Page

1

Seaview Marina Limited DRAFT Statement of Intent for the Three Year Period covering 2022/23 to 2024/25

15

    

 

Author: Sharon Page

Senior Management Accountant

 

 

Author: Tim Lidgard

Chief Executive, Seaview Marina

 

 

Reviewed By: Ben Wu

Financial Accounting Manager

 

 

Reviewed By: Jenny Livschitz

Group Chief Financial Officer

 

 

Approved By: Helen Oram

Director Environment and Sustainability

 


Attachment 1

Seaview Marina Limited DRAFT Statement of Intent for the Three Year Period covering 2022/23 to 2024/25

 






















                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

02 February 2022

 

 

 

File: (22/220)

 

 

 

 

Report no: PFSC2022/1/21

 

Urban Plus Group Draft Statement of Intent 2022/23 to 2024/25

 

Purpose of Report

1.    The purpose of the report is to provide a review of the draft 2022/23-2024/25 Statement of Intent for Urban Plus Group (UPL) as delivered to Council for Council’s consideration.

Recommendations

That the Committee recommends that Council:

1.    notes that the Urban Plus Group (UPL) Board has submitted a draft Statement of Intent (SOI) 2022/23 - 2024/25, attached as Appendix 1 to the report, in accordance with the Local Government Act 2002;

2.    notes that officers have reviewed the draft SOI for compliance with the Local Government Act 2002 and provided their analysis;

3.    receives the draft SOI;

4.    reviews the draft SOI and considers if any modifications should be made; and

5.    provides comment for the UPL Board to consider in finalising its SOI (including any modifications suggested by the Committee arising under recommendation (4) above).

 

Background

2.    The Local Government Act 2002 (LGA) requires the board of a Council Controlled Organisation (CCO) to deliver to its shareholders a draft SOI on or before 1 March of each year.

Discussion

3.    The Board of Urban Plus Limited (UPL) has submitted a draft Statement Of Intent (SOI) to Council.  This is attached as Appendix 1 to the report.

4.    The board of a CCO must provide information prescribed by the LGA for the SOI, to the extent is appropriate given the organisation form of the CCO.  They must do this for the ‘the group’ – which comprises the CCO and its subsidiaries.  The information is required to be provided for the 2022/23 financial year and the two years following that (section 9, Schedule 8 of the LGA). 

5.    The compliance of the company with the legislative requirements for the SOI and a summary of the amendments proposed by the Board for their 2022/23-2024/25 SOI are detailed below:


 

Required Content

UPL Draft SOI Content

(a) the objectives of the company

The objectives of the UPL are stated.

(b) a statement of the board’s approach to governance of the group

A statement is included.

(c) the nature and scope of the activities undertaken by the group

The nature and scope of activities are outlined.

(d) the ratio of consolidated shareholders’ funds to total assets, and the definition of those terms

Ratio provided.

(e) the accounting policies of the group

Accounting policies are outlined.

(f) the performance targets and other measures by which performance of the group may be judged in relation to its objectives

Performance targets are included. 

(g) an estimate of the amount or proportion of accumulated profits and capital reserves that is intended to be distributed to the shareholders

Information provided. 

(h) the kind of information to be provided to the shareholders by the group during the course of those financial years, including the information to be included in each half yearly report (and, in particular, what prospective financial information is required and how it is to be presented)

The kind of information to be provided is outlined.  

(i) the procedures to be followed before any member or the group subscribes for, purchases, or otherwise acquires shares in any company or other organisation

Information on procedures is not provided but it is noted that there is no intention to subscribe or invest in any other organisation.  A further note states UPL has established a subsidiary.  Established procedures are in place which require approval from Council’s CE who can grant authority to UPL on certain conditions.

(j) any activities for which the board seeks compensation from any local authority (la) (whether or not the la has agreed to provide the compensation)

No compensation requested.

(k) the boards estimate of the commercial value of the shareholders’ investment in the group and the manner in which and the times at which that value is to be reassessed

A statement as to the net value of shareholder’s investment is provided.

(l) any other matters that are agreed by the shareholders and the board

Some additional information is provided.

 

6.    The draft SOI has been prepared to address the priorities included in the Letter of Expectation it received from Council on 16 December 2021.

Climate Change Impact and Considerations

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

Legal Considerations

8.    Council may suggest changes which the Board must consider in finalising its SOI.  The Board must consider within two months of 1 March any comments on the draft SOI that are made by the shareholders.  The Board must deliver a completed SOI to Council on or before 30 June 2022.

9.    Outside of this current process, the Council may, by resolution, require the Board to modify the SOI and the Board must comply (section 5, Schedule 8 LGA), provided that Council first consults the Board.

Financial Considerations

10.  The draft SOI contains the financial forecasts for UPL for the three year period commencing 1 July 2022.

11.  The Total Equity of UPL is forecast to be $48.0M as at 30 June 2022.

Appendices

No.

Title

Page

1

Appendix 1: UPL Group Draft Statement of Intent 2022/23-2024/25

40

    

 

Author: Simon George

Senior Accountant

 

 

Author: Daniel Moriarty

Chief Executive, Urban Plus

 

 

Reviewed By: Ben Wu

Financial Accounting Manager

 

 

Reviewed By: Jenny Livschitz

Group Chief Financial Officer

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


Attachment 1

Appendix 1: UPL Group Draft Statement of Intent 2022/23-2024/25

 
























                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

24 January 2022

 

 

 

File: (22/74)

 

 

 

 

Report no: PFSC2022/1/22

 

Kaupapa Here Tapanga (Naming Policy)

 

Purpose of Report

1.    This report recommends that Council considers the adoption of the Kaupapa Here Tapanga – Naming Policy 2022-2027 (the proposed Policy).

Recommendations

That the Committee recommends that Council:

(1)   adopts the proposed Kaupapa Here Tapanga - Naming Policy 2022-2027 (the proposed Policy) attached as Appendix 1 to the report;

 

(2)   agrees to amend the community boards’ delegations to reflect that the naming of new roads and alterations to street names will be in accordance with the proposed Policy;

 

(3)   approves the current Kaupapa Here Tapanga Register (the Register) for public notification attached as Appendix 2 to the report;

 

(4)   notes that Mana Whenua are working with Councils regionally to develop a register of names and identify the areas in the region where they should be used;

 

(5)   notes that these names, once agreed, will be added to the Register and publicly notified with all other approved names;

 

(6)   notes that the Register is a “living document” and that as names are approved, they will be added to the Register;

 

(7)   notes that the new names will be publicly notified annually;

 

(8)   notes that areas experiencing particularly intensive development will be given specific opportunities to provide suggested names, which once approved, will be added to the Register;

 

(9)   notes that developers will be advised of both the proposed Policy and process through the usual networks and asked to provide any names that they would like considered for inclusion in the Register; and

 

(10) notes that a specific web page will be set up to enable community members to propose names.  

 

For the reasons that the proposed Policy actively reflects Council’s relationship with Mana Whenua and the cultural significance of place to all our communities. It prioritises the use of Te Reo Māori names and ensures that the process of determining appropriate names begins with the views of Mana Whenua, interested parties, and communities.

 

Background

1.    Sections 319(1) (j), 319A and 319B of the Local Government 1974 Amendment Act 2002 apply to the naming of roads. Decisions on the naming or renaming of open spaces must comply with the decision-making obligations set out in Part 6 of the Local Government Act 2002. Open spaces classified under the Reserves Act 1977 must be named or renamed by resolution of Council and in accordance with the Reserves Act 1977.

 

2.    Within the legislative frameworks Council has a wide scope in approaching the naming of roads and spaces in the city.

 

3.    The proposed Policy covers the naming of all areas owned or managed by Hutt City Council and describes Council’s approach in all cases where official naming or renaming of an area is proposed.

Discussion - Review

 

4.    The review has:

 

a)    explored practice from recently adopted naming policies of other local authorities, particularly those in the Wellington region.

 

b)    engaged with Mana Whenua, on the proposed policy at hui in July, August, and September 2021. These discussions included identifying mechanisms within the policy for engagement on naming/renaming which have been included in the proposed operational process.

Policy

5.    The proposed Policy acknowledges the 2003 Waitangi Tribunal determination that ahi kā rights within Te Upoko o Te Ika rohe sit with Te Āti Awa, Ngāti Tama, Ngāti Mutunga, Taranaki, Ngāti Ruanui, and Ngāti Toa.

 

6.   The proposed Policy actively reflects Council’s relationship with Mana Whenua and the cultural significance of place to all our communities. It prioritises the use of Te Reo Māori names and ensures that the process of determining appropriate names begins with the views of Mana Whenua, interested parties, and communities. The focus of the proposed Policy is ensuring that names reflect the city’s unique identity, culture, and environment, and help tell stories about its history, geography, and heritage.

 

7.   The proposed Policy addresses the need to ensure that names are appropriate, and provide ease of identification for Council, the public and key services (such as emergency, postal, and courier services) and the need for a consistent and transparent best practice approach for accurate and efficient administration and communication.

 

Operational Process

 

8.    An operational process has been drafted for administering the proposed Policy. It supports decision makers and ensures that the importance of Council’s relationship and Takai Here with Mana Whenua and the use of Te Reo names is prioritised. 

 

9.    It also ensures that names are appropriate, and provide ease of identification for Council, public and key services (such as emergency, postal, and courier services) and that names reflect the city’s unique identity, culture, and environment.

 

10.  The priority order and criteria for the naming or renaming is shown in Table 1 below. Any proposed name must meet one or more of the criteria indicated. Dual names (Te Reo/English) are supported.

Table 1: Criteria

Priority

Criteria

First

·      An appropriate Te Reo Māori name

Second

·      Where an appropriate name is already in common use.

·      Telling a story about the history of the feature, by acknowledging people and ensuring that women and under-represented groups are acknowledged. Te Reo names are encouraged where appropriate.

·      Where a specific theme is associated with a location and is appropriate for new names.

Third

·      Reflects the local landscape, topographical features, or flora/fauna. The preference is for appropriate Te Reo names to used.

·      Aligns with adjacent street/suburb/open space names, eg naming a new reserve the same as a nearby road.

 

Kaupapa Here Tapanga Register

11.  Only names on the Kaupapa Here Tapanga Register will be used (attached as Appendix 2 to the report).  If agreed by Council, the current Register will be publicly notified.  This public notification can be used as an opportunity to ask for new name proposals.  These names will be considered and, if approved, added to the Register.  New names will be publicly notified annually

 

12. Mana Whenua are working with Councils regionally to develop an agreed register of names and identify the areas in the region where these names should be used. Once agreed, the names for Te Awakairangi ki Tai Lower Hutt will be added to the Register and publicly notified with all other approved names.

 

13. The Register is a ‘living document’ and as names are approved, they will be added to the register.  Areas experiencing particularly intensive development will be given specific opportunities each year to provide suggested names, which once approved, will be added to the Register.

 

14. Developers will be advised of both the approved Kaupapa Here Tapanga - Naming Policy and process through our usual networks and asked to provide any names that they would like considered for inclusion in the Register.

 

15. A specific web page (similar approach as Notable Trees) will be set up to enable community members to propose names online.  Each time new names are publicly notified the web page will be publicised and names requested.

 

Replacing colonial street names

 

16. Officers are not proposing to do this in the short term.  Once the proposed Policy and name register has been approved and the process has settled in, the implementation criteria will be reviewed to assess the options for replacing street names with the names of Māori leaders on a case-by-case basis. Any proposed change will require engagement.

Correcting the spelling of street names

 

17. Officers are not proposing to correct the spelling of existing street names in the short term.  Once the new Policy and name register has been approved and the process has settled in, the implementation criteria will be reviewed to assess the options for correcting the spelling of incorrectly spelt street names. Any proposed change will require engagement.

Climate Change Impact and Considerations

 

18.  Climate change impacts are not relevant to this matter.

Consultation

 

19.  Mana Whenua were fully engaged in the development of the proposed Policy and will continue to play a key role in the implementation of Kaupapa Here Tapanga.

 

20.  Following Council’s adoption of the proposed Policy, officers will engage with key stakeholders and community groups on the new Policy and process

 

Legal Considerations

21.  The most relevant legislation includes the Local Government Act 2002, Local Government (Rating) Act 2002, the Reserves Act 1977 and the Rating Valuations Act 1998.

Financial Considerations

22.  Costs associated with the implementation of the proposed Policy will be met from the Transport Business Unit’s existing budgets.

Appendices

No.

Title

Page

1

Appendix 1: Kaupapa Here Tapanga Naming Policy

68

2

Appendix 2: Kaupapa Here Tapanga Register (Reserved Street Name List) 2021

80

   

 

 

Author: Kiri Waldegrave

Acting Head of Strategy and Planning

 

 

 

Author: Matiu Jennings

Kaitatari Tumuaki Maori

 

 

 

Reviewed By: Jarred Griffiths

Acting Director Strategy and Planning

 

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1: Kaupapa Here Tapanga Naming Policy

 













Attachment 2

Appendix 2: Kaupapa Here Tapanga Register (Reserved Street Name List) 2021

 




                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

01 February 2022

 

 

 

File: (22/17)

 

 

 

 

Report no: PFSC2022/1/24

 

Review of Financial Delegation Policy and Procurement Policy

 

Purpose of Report

1.    The Financial Delegation Policy has been reviewed. The Committee is requested to endorse and recommend that the updated policy be approved by Council.

2.    The financial thresholds in the Procurement Policy have been reviewed. The Committee is requested to endorse and recommend that the updated policy be approved by Council.

Recommendations

That the Committee recommends that Council:

 

(1)   receives and notes the report;

(2)   approves the updated Financial Delegation Policy attached as Appendix 1 to the report; and

(3)   approves the updated Procurement Policy attached as Appendix 2 to the report.

 

Section A – Financial Delegation Policy

Background to the Financial Delegation Policy

3.   As part of the external audit findings in 2015/16, Audit New Zealand had raised a recommendation for the Council to “prepare and implement an overarching Financial Delegation Policy.”

 

4.   A new Financial Delegation Policy (FDP) for the Hutt City Council Group was presented for review to the Finance and Performance Committee 4 September 2019 (refer FPC2019/4/179). This policy was subsequently approved by Council.

5.   The FDP was developed in line with policies that exist in other local authorities. It was written as a high-level overarching policy which provides principles and general rules around financial delegations.

6.   At the time of implementation of this policy, it was expected that the FDP would enable better clarity of financial delegations and the related budget management responsibilities for officers, whilst also enabling improved transparency and a ‘no surprises’ approach for Council in relation to potential future budget overspend issues.

7.   The key aspects of the FDP are summarised below and are extracted from the September 2019 Committee report:

(a)  Council has delegated to the Chief Executive (CE) the authority to implement the Annual Plan/Long Term Plan.

(b)  The CE in turn delegates with financial limits to specific officers. The general rule and expectation is that officers “live within the budget”.

(c)  The CE has some flexibility to approve budget variances as long as the overall Annual Plan budget for the year (or approved revisions of this budget by Council) is not exceeded.

(d)  Where there is a cost over-run anticipated in a particular area there is an attempt to find offsetting savings.

(e)  The policy proposes the CE has authority to approve operational and capital variances in an activity area by an amount no greater than five per cent of budget as long as the overall Council approved budget for the year is not exceeded.

(f)   Where no commensurate savings can be found, overspends are required to be reported to Council for consideration and approval.

(g)  Quarterly financial performance reporting will provide information to the Finance and Performance Committee about the year-end outlook. Where there are potential budget overspend issues identified, these will be reported to the Committee with proposed recommendations to resolve these.

Update since the implementation of the new Financial Delegation Policy

8.   The Financial Delegation Policy (FDP) is part of the broader financial controls framework in place to ensure that Council manages its finances in a prudent and sustainable manner.

9.   Following approval of the FDP in September 2019, there was a review of the officer delegations to align these with the new policy. These changes were successfully completed.

10. The policy has been referenced on many occasions since it was implemented and has certainly helped in achieving better clarity around expenditure approval requirements for officers. It has also ensured that there has been increased transparency and ‘no surprises’ approach for Council about budget and project cost pressures. Some recent relevant examples are the reporting on budget issues to Council on 16 December 2021 for the Eastern Bay Shared Path Project and the Reserves Management Contract. 

11. In 2021 a new electronic purchase order system was implemented to further enhance the financial controls. This system replaced the outdated manual purchase order system which required hard copy manual purchase orders to be used. The new system records electronically the officer who has raised a purchase order as well the officer that approves it. The system limits these approvals to the financial delegation of an officer. Comprehensive training and support was provided to officers as part of the implementation. This has further improved the financial management practices.  

Review undertaken of the Financial Delegation Policy (FDP)

12. The FDP has been reviewed and Table 1 provides a summary of the changes which are proposed. The full detailed policy is available as Appendix 1 to the report.

13. The key change proposed is a new delegation enabling the Chief Executive the authority to bring forward capital expenditure budgets from the next two years of the LTP/Annual Plan where the current year budget is expected to be underspent. There are two drivers for this change proposed in the FDP.

-     The Chief Executive’s Performance Framework set by Council for 2021/22 includes a performance measure in the context of capital investment delivery performance as follows “Review Financial Delegations Policy to change the policy to a three-year timeframe to enable more flexibility with the timing of the delivery.”

-     Council resolution 14 May 2021 as part of the process to finalise the Long-Term Plan 2021-2031 (refer LTP2021/2/125):

Notes the delivery risks of the capital investment programme and directs officers to review the policy settings of the Financial Delegation Policy and the Procurement Policy and report to the Policy, Finance and Strategy Committee with advice on changes that could be actioned to achieve improved capital delivery outcomes.

 

  Table 1: Summary of proposed updates to the Financial Delegation Policy

 

Description of update to policy

Existing FDP

Updated FDP

1.

To reflect the updated Committee structure

Finance and Performance Committee

Policy, Finance and Strategy Committee.

2.

To reflect the updated organisation structure role titles and terminology

General Managers and Divisions.

Chief Financial Officer

 

Directors and Business Units.

 

 

Group Chief Financial Officer

3.

Review period

Two-yearly

Three-yearly, or earlier if considered necessary

4.

Approver of changes to the policy

Chief Executive

Council

5.

Bringing forward of CAPEX budgets

No specific content. Requires a Council decision.

New section 4.4 added. This provides delegation to the Chief Executive to manage risks of projects experiencing delays and bring forward and accelerate the delivery of projects that were planned in the next two years of the LTP/Annual Plan. This is restricted to circumstances where the overall budget for the current year is expected to be underspent.

6.

Minor editorial changes and corrections

Significance Policy

Significance and Engagement Policy

 

14. Some further policy improvements were considered as part of this review. However, after a comparison of our councils, including Wellington City Council and Porirua City Council, there are no further changes proposed.

Section B – Procurement Policy

Background to the Procurement Policy

15. The Procurement Policy ensures that Council is operating fairly and openly, while resources are being used efficiently to achieve Council’s goals. Procurement financial thresholds provide a tool for determining which procurement method is to be used to procure the resources or services needed to achieve required outcomes (for example a closed tender versus an open tender). The current Procurement Policy has been in place since 2016.

16. In line with the Council resolution 14 May 2021 detailed in paragraph 13, the Procurement Policy was reported to the Policy, Finance and Strategy Committee 13 July 2021 (refer PFSC2021/3/151). The report proposed an uplift to the financial thresholds.

17. The LTP adopted 30 June 2021 has a significant step up in capital investment to $1.5 billion. This programme carries a level of uncertainty and risks to achievability. Delays to the programme may result in Council not meeting planned levels of services or result in greater costs in the long term. There are also additional uncertainties and risks in the COVID-19 environment, with delays and challenges in procuring and sourcing some materials and services.

18. The proposed increases in the financial thresholds presented in July 2021 were aimed at increasing purchasing agility within the context of the increased works programme and were based on the following key reasons:

-     The current procurement thresholds have been in place since 2016 and had not been inflation adjusted. This means more stringent procurement processes and potentially inefficiencies. 

-     Evolving market conditions, noting in particular difficulty in securing resources and services in the tight market. An open competitive tendering process can result in a more prolonged and inefficient process in these market conditions. This is particularly relevant in the construction sector where Council has good knowledge of the companies offering the services and the pool of bidders is small.

-     The procurement financial thresholds work in tandem with the Delegated Financial Authority limits set through the Financial Delegation Policy. Together they form a key component of the financial controls framework.

19. In considering the proposed changes to the financial thresholds Council resolved as follows: “asks officers to review the Procurement Policy alongside the Financial Delegations Policy to consider changes in a holistic way”(10 August 2021 Reference 21/981).

20. This review has subsequently been undertaken. There are some changes proposed to the policy which are summarised in Table 2. The full detailed policy is available as Appendix 2 to the report. A more conservative approach to the financial thresholds is proposed here. 

Table 2: Summary of proposed updates to the Procurement Policy

 

Description of update to policy

Existing policy

Updated policy

1.

Policy owner

Group Chief Financial Officer

Amended to extend owner to include Head of Procurement alongside Group Chief Financial Officer

2.

Approver of changes to the policy

Corporate Leadership Team

Council

3.

Financial thresholds for Council Group excluding Urban Plus Limited

 

 

Procurement Activity

Total Value of Contract (Goods and Services)

Total Value of Contract (Goods and Services)

Direct purchase

$0 - $20,000

$0 - $25,000

Closed tender

$20,001 - $99,999

$25,001 - $99,999

 

21. There are no proposed changes to requirements to conduct open tenders for contracts for goods and services in excess of $100,000 or $500,000 for construction related contracts. In providing this advice, officers have considered consistency with other councils and guidance from the Ministry of Business, Innovation and Employment.

Climate Change Impact and Considerations

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

Legal Considerations

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

Financial Considerations

24. The financial considerations are detailed in this report in the relevant areas.

 

 

 

Appendices

No.

Title

Page

1

Appendix 1: Proposed Revised Financial Delegation Policy

90

2

Appendix 2: Proposed Revised Procurement Policy

99

 

 

Author: Jenny Livschitz

Group Chief Financial Officer

 

 

Author: Bradley Cato

Chief Legal Officer

 

 

Approved By: Jo Miller

Chief Executive

 


Attachment 1

Appendix 1: Proposed Revised Financial Delegation Policy

 










Attachment 2

Appendix 2: Proposed Revised Procurement Policy

 








                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

13 February 2022

 

 

 

File: (22/352)

 

 

 

 

Report no: PFSC2022/1/41

 

Resource Management (Enabling Housing Supply and Other Matters) Amendment Act 2021 and its to implications for the District Plan review

 

Purpose of Report

1.    The purpose of the report is for the Committee to consider recommendations from the District Plan Review Subcommittee.

Recommendations

That the Committee recommends that Council:

(1)     notes and receives the officer’s report attached as Appendix 1 to the report;

(2)     proceeds with the District Plan review through Option 2:  An Intensification Planning Instrument plan change followed by full new District Plan.

 

For the reasons that Option 2 is more straight forward than the other options and as a result, it would be easier for potential submitters and plan users to follow the District Plan Review and be involved. Option 2 is the most cost-effective option and is the most practical option given the resource available now.  Option 2 also has the lowest legal risk.  It will result in the delay of some parts of the review, which could in turn delay some of the improvements that were anticipated through the District Plan review.  This delay is likely to be approximately 12-18 months.

 

Background

2.    The District Plan Review Subcommittee reports to the Policy, Finance and Strategy Committee.

3.    The purpose of the District Plan Review Subcommittee is to make recommendations to the Policy, Finance and Strategy Committee, for recommendation to Council on the matters to be addressed in the full review of the District Plan and development of a Proposed District Plan.

4.    The District Plan Review Subcommittee considered the item ‘Resource Management (enabling housing supply and other matters) Amendment Act 2021 and its implications for the District Plan review’ at its meeting held on 10 February 2022.

5.    Further background information is contained in Appendix 1 to the report.

Discussion

6.    Since 2019, Council has been undertaking a full review of the City of Lower Hutt District Plan (the District Plan Review).

7.    The current work programme for the District Plan review involves:

·      Preparation of a draft District Plan for engagement with the community in March/April 2022;

·      Preparation of a proposed District Plan, to be notified for formal submissions by August 2022, following the standard RMA Schedule 1 process, which includes hearings and Council notifying decisions on submissions by August 2024; and

·      From August 2024, resolving any appeals lodged with the Environment Court.

8.    However, in December 2021, the government passed the Resource Management (Enabling Housing Supply and Other Matters) Amendment Act 2021 (the Housing Supply Act) which seeks to accelerate the supply of housing in urban areas where demand for housing is high, including the Wellington urban area, by amending the RMA and National Policy Statement on Urban Development 2020 (NPS-UD).

9.    As a result of these amendments, territorial authorities are now required to:

·         Prepare an Intensification Planning Instrument (IPI)– a specific district plan change to enable greater building heights and density, primarily in residential and commercial areas. This plan change must be notified by 20 August 2022; and

·         Process the IPI through an Intensification Streamlined Planning Process - a new plan change process that is more streamlined and condensed than the standard plan change process.

10.  Given the new IPI requirements, officers have identified the following options for the District Plan Review:

·        Option 1: An IPI plan change and a full new District Plan in parallel processes;

·        Option 2: An IPI plan change followed by full new District Plan;

·        Option 3: Notification of a plan change on qualifying matters (including natural hazards, historic heritage, sites of significance to Māori), followed by an IPI plan change, followed by a plan change on the remaining parts of the District Plan; or

·        Option 4: An IPI plan change and a plan change on qualifying matters (including natural hazards, historic heritage, sites of significance to Māori) in parallel processes, followed by a plan change on the remaining parts of the District Plan.

·        Full details of these options and the evaluations are given in the report attached as Appendix 5 and 6 (additional information for the Committee to consider).

11.  The four options were evaluated based on criteria outlined in the report attached as Appendix 6 (additional information for the Committee to consider).

12.  Based on this evaluation Option 2 is recommended.

a.    All four options have a similar level of efficiency and effectiveness. However, Option 2 would have more achievable timelines for the District Plan review.

b.    While all the options are more complex than the current work programme (a single proposed District Plan notified by August 2022, going through a single plan process), Option 2 is more straight forward than the other options and as a result, it would be easier for potential submitters and plan users to follow the District Plan Review and be involved in.

c.     There are disadvantages associated with Option 2, particularly around Council’s capacity to undertake the work. However, this is an issue with all four options (with Option 2 the most achievable from a capacity perspective) and is a result of the overall magnitude of the District Plan Review.

d.    Option 2 would result in a delay in some parts of the review, which in turn would delay some of the improvements that could be made to the District Plan through the review. This delay is likely to be in the order of 12 to 18 months.

Options

13.  Officers have identified options for the District Plan review attached as Appendix 6 to the report (additional information for the Committee to consider).

Climate Change Impact and Considerations

14.  Climate change impact and considerations are outlined in Appendix 1 attached to the report.

Engagement

15.  Engagement is outlined in Appendix 1 attached to the report.

Legal Considerations

16.  Legal considerations are outlined in Appendix 1 attached to the report. 

Financial Considerations

17.  Financial considerations are outlined in Appendix 1 attached to the report.  Since this report was written we have calculated some high level costings for the 4 different options. 

18.  Summary of total costs for each option (with large rounding)

Current Budget

$12m

Option 1 Total Cost

$16m

Option 2 Total Cost

$13m

Options 3 and 4 Total Cost

$15m

19.  These costs are based on experience with other plan processes and consider work to date and known issues, there are several unknowns which can have a significant impact on costs. For example, these unknowns include filling current vacancies, risk of staff leaving and using consultant support, the number and nature of submissions received, and issues raised, and number and nature of appeals received. 

20.  The main influences and risks for the costs detailed above are:

a.       Option 1: Shorter timeframe means additional resourcing is required to run two parallel processes.  Additional consultants would need to be engaged to assist in preparation.  There is uncertainty whether there is capacity in the consultant market to assist at short notice.  The increased risk of legal challenges by special interest groups could increase costs.

b.       Option 2: The slightly longer timeframe means a total overall increase from the current budget.  The main increase is from needing to run two hearings and submission periods for the two different processes.  This is potentially offset by the inability to appeal the IPI decision to the environment court which would normally be a significant cost.

c.       Options 3 and 4: Longer timeframe and increased risk of legal challenges

21.  This additional budget would be calculated and approval sought for the 2024/25 Long Term Plan.

Appendices

No.

Title

Page

1

Appendix 1: Resource Management (Enabling Housing Supply and other Matters) Amendment Act 2021 and its implications for the District Plan Review - report to the District Plan Review Subcommittee meeting 10 February 2022

111

2

Appendix 2: Medium Density Residential Standards (Appendix 1 to the report to the District Plan Subcommittee meeting 10 February 2022)

122

3

Appendix 3: Policy 3 and 4 of the National Policy Statement on Urban Development 2020 (Appendix 2 to the report to the District Plan Subcommittee meeting 10 February 2022)

130

4

Appendix 4: Qualifying Matters from Section 771 of the Resource Management Act 1991 (Appendix 3 to the report to the District Plan Subcommittee meeting 10 February 2022)

131

5

Appendix 5: Illustration of Options (Further information)

133

6

Appendix 6: Options Assessment (Further information)

137

    

 

 

Author: Nathan Geard

Senior Environmental Policy Analyst

 

 

 

Author: Parvati Rotherham

Head of Planning

 

 

 

Approved By: Helen Oram

Director Environment and Sustainability

 


Attachment 1

Appendix 1: Resource Management (Enabling Housing Supply and other Matters) Amendment Act 2021 and its implications for the District Plan Review - report to the District Plan Review Subcommittee meeting 10 February 2022

 












Attachment 2

Appendix 2: Medium Density Residential Standards (Appendix 1 to the report to the District Plan Subcommittee meeting 10 February 2022)

 









Attachment 3

Appendix 3: Policy 3 and 4 of the National Policy Statement on Urban Development 2020 (Appendix 2 to the report to the District Plan Subcommittee meeting 10 February 2022)

 


Attachment 4

Appendix 4: Qualifying Matters from Section 771 of the Resource Management Act 1991 (Appendix 3 to the report to the District Plan Subcommittee meeting 10 February 2022)

 



Attachment 5

Appendix 5: Illustration of Options (Further information)

 





Attachment 6

Appendix 6: Options Assessment (Further information)

 





                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

13 February 2022

 

 

 

File: (22/353)

 

 

 

 

Report no: PFSC2022/1/42

 

Intensification Planning Instrument - Initial Option Identification and Analysis

 

Purpose of Report

1.    The purpose of the report is for the Committee to consider recommendations from the District Plan Review Subcommittee.

Recommendations

That the District Plan Review Subcommittee recommends that the Committee recommends that Council:

(1)     notes and receives the officer’s report considered by the District Plan Review Subcommittee at its meeting held on 10 February 2022 attached as Appendix 1 to the report; and

(2)     requests officers to prepare a draft Intensification Planning Instrument for consideration at the District Plan Review Subcommittee meeting through the following approach:

          Commercial zones:

(a)   in the city centre, no specific building height and density limits in the Core and Riverfront (Core) Precincts and increased height limits in other precincts to six storeys (Option CZ1.1); and

(b)   in suburban centres, provide for varying heights based on commercial and community services and access to public and active transport, which would be above six storeys in some areas, and below six storeys in others (Option CZ2.2);

          Residential zones:

(a)   a 1200m walkable catchment for the city centre and Petone metropolitan centre, and a 800m walkable catchment for train stations on the Hutt Valley and Melling Lines (Option RZ1.2);

(b)   in walkable catchments of the city centre, Petone metropolitan centre and train stations on the Hutt Valley and Melling Lines:

1)    permit buildings of up to three storeys, subject to standards of the Medium Density Residential Standard; and

2)    require resource consent for buildings of four or more storeys, with provisions supporting buildings up to six storeys (Option RZ2.2);

(c)   align building heights for residential areas adjacent to Neighbourhood, Local and Town centre zones with the building height and density provisions of other residential areas with similar levels of access to commercial activities and community services (Option RZ3.2); and

(d)  modify the Medium Density Residential Standards to align them with the existing District Plan standards for the Medium Density Residential Activity Area but asks officers to provide more information on Options RZ4.2 and RZ4.3;

            Qualifying matters:

(a)   modify the Medium Density Residential Standards and building height and density requirements under Policy 3 of the NPS-UD to accommodate the following:

1)    the protection of historic heritage from inappropriate subdivision, use, and development;

2)    the management of significant risks from natural hazards; and

3)    open space provided for public use, but only in relation to land that is open space.

Officers have identified a range of reasonably practicable options that are available to Council for these aspects of the Intensification Planning Instrument and have assessed the identified options. The assessment of identified options is included in Appendix 4 attached to the report. Officers’ recommendations have been informed by:

·     Previous work on the District Plan Review, including:

The initial identification of resource management issues;

Discussions with mana whenua, members of the community and other stakeholders;

Technical assessments; and

Previous direction from Council and the District Plan Review Subcommittee;

·     Requirements of other national policy statements and the Regional Policy Statement for the Wellington Region; and

·     Existing Council strategies and policies, including the Wellington Regional Growth Framework.

 

Background

2.    The District Plan Review Subcommittee reports to the Policy, Finance and Strategy Committee.

3.    The purpose of the District Plan Review Subcommittee is to make recommendations to the Policy, Finance and Strategy Committee, for recommendation to Council on the matters to be addressed in the full review of the District Plan and development of a Proposed District Plan.

4.    The District Plan Review Subcommittee considered the item ‘Intensification Planning Instrument – Initial Option Identification and Analysis’ at its meeting held on 10 February 2022.

5.    Further background information is contained in Appendix 1 to the report.

6.    This report should be read in conjunction with the Resource Management (enabling housing supply and other matters) Amendment Act 2021 and its implications for the District Plan Review Report being considered by members.

Discussion

7.    Council is required to prepare an Intensification Planning Instrument – a specific district plan change to enable greater building heights and density of urban form, primarily in residential areas.

8.    Process the Intensification Planning Instrument through an Intensification Streamlined Planning Process - a new district plan change process that is more streamlined and condensed than the standard plan change process.

9.    The Intensification Planning Instrument is a change to a district plan that must:

·      Incorporate specific Medium Density Residential Standards (MDRS) as set out in the Housing Supply Act; and

·      Give effect to Policies 3, 4 and 5 of the NPS-UD.

10.  In addition, the Intensification Planning Instrument may amend or include:

·      Provisions relating to financial contributions,

·      Provisions to enable papakāinga housing; and

·      Related provisions (including objectives, policies, rules, standards and zones) that support or are consequential to the MDRS or Policies 3, 4 and 5 of the NPS-UD.

Note: As Policy 5 of the NPS-UD relates solely to tier 2 and 3 territorial authorities, it is not relevant to Hutt City Council (as a tier 1 territorial authority), and is therefore not discussed in this report.

11.  The Medium Density Residential Standards (MDRS) are a specific set of permitted activity standards for residential zones, with complimentary objectives and policies. The MDRS are set out in the Housing Supply Act and are included in Appendix 2.

12.  Territorial authorities are required to incorporate the MDRS in their district plans for all relevant residential zones, with the following exceptions:

·        The standards can be modified to enable a greater level of development, either by omitting a standard or including a more lenient standard; and

·        The standards can be made less enabling of development to the extent necessary to accommodate a qualifying matter (discussed below).

13.  As a result, Council’s Intensification Planning instrument will need to incorporate the MDRS to the majority of residential zones, an exception may be appropriate where a qualifying matter applies, such as areas with significant heritage values.

14.  Key aspects to highlight from the comparison in Appendix 3:

Options

15.  Officers have identified the following areas where there are options for the Intensification Planning Instrument:

·      Building heights and density in:

The City centre zone; and

Suburban centres.

·      Location and extent of walkable catchment areas;

·      How to enable buildings of at least six storeys in walkable catchment areas;

·      Building heights and density in areas adjacent to suburban centres;

·      Whether to modify Medium Density Residential Standards to be more enabling of development; and

·      Qualifying matters to address.

Note: Council will also need to consider its options for building heights and density in the Metropolitan centre zone, provisions for papakāinga housing, provisions for financial contributions and provisions that support or are consequential on the MDRS or Policies 3 and 4 of the NPS-UD. Options on these matters will be presented to the Subcommittee at a future Subcommittee meeting.

16.  Officers have identified a range of reasonably practicable options that are available to Council for these aspects of the Intensification Planning Instrument and have assessed the identified options. The assessment of identified options is included in Appendix 4 attached to the report.

17.  The identification and assessment of these options has been informed by:

·      Previous work on the District Plan Review, including:

The initial identification of resource management issues;

Discussions with mana whenua, members of the community and other stakeholders;

Technical assessments; and

Previous direction from Council and the District Plan Review Subcommittee;

·      Requirements of other national policy statements and the Regional Policy Statement for the Wellington Region; and

·      Existing Council strategies and policies, including the Wellington Regional Growth Framework.

18.  Officers have identified options for the District Plan review attached as Appendix 4 to the report.

Climate Change Impact and Considerations

19.  Climate change impact and considerations are outlined in Appendix 1 attached to the report.

Engagement

20.  Engagement is outlined in Appendix 1 attached to the report.

Legal Considerations

21.  Legal considerations are outlined in Appendix 1 attached to the report.

Financial Considerations

22.  Financial considerations are outlined in Appendix 1 attached to the report.

Appendices

No.

Title

Page

1

Appendix 1: Intensification Planning Instrument - Initial Option Identification and Analysis Report to the District Plan Review Subcommittee 10 February 2022

146

2

Appendix 2: Medium Density Residential Standards (Appendix 1 to report to District Plan Review Subcommittee 10 February 2022)

164

3

Appendix 3: Comparison of Medium Density Residential Standards and permitted activity standards of current District Plan (Appendix 2 to report to District Plan Review Subcommittee 10 February 2022)

172

4

Appendix 4: Initial identification and evaluation of options for the Intensification Planning Instrument (Appendix 3 to report to District Plan Review Subcommittee 10 February 2022)

173

Author: Nathan Geard, Senior Environmental Policy Analyst

 

Reviewed By: Parvati Rotherham. Head of Planning

 

Approved By: Helen Oram, Director Environment and Sustainability

 


Attachment 1

Appendix 1: Intensification Planning Instrument - Initial Option Identification and Analysis Report to the District Plan Review Subcommittee 10 February 2022

 



















Attachment 2

Appendix 2: Medium Density Residential Standards (Appendix 1 to report to District Plan Review Subcommittee 10 February 2022)

 









Attachment 3

Appendix 3: Comparison of Medium Density Residential Standards and permitted activity standards of current District Plan (Appendix 2 to report to District Plan Review Subcommittee 10 February 2022)

 


Attachment 4

Appendix 4: Initial identification and evaluation of options for the Intensification Planning Instrument (Appendix 3 to report to District Plan Review Subcommittee 10 February 2022)

 


























                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

31 January 2022

 

 

 

File: (22/171)

 

 

 

 

Report no: PFSC2022/1/23

 

2022 Triennial Local Government Elections

 

Purpose of Report

1.    The purpose of this report is to provide an update on planning for the 2022 triennial local elections and to seek Council approval for the ordering of candidate names on the voting paper and to conduct the election for the Hutt Mana Charitable Trust in conjunction with the Council elections.

Recommendations

That the Committee recommends that Council:

(1)   notes that in accordance with regulation 31 of the Local Electoral Regulations 2001, Council has the ability to determine the method used to order the names on the voting paper for the 2022 triennial local elections, using alphabetical, random or pseudo-random order;

(2)   agrees to use the random order method of arranging candidates’ names on the voting paper for the 2022 triennial local elections for Lower Hutt City and its community boards; and

(3)   agrees that the election for the Hutt Mana Charitable Trust be conducted in conjunction with the 2022 triennial local elections for Lower Hutt City.

 

Background

2.    Planning for the 2022 triennial local elections is well underway with agreements in place for election services from NZ Post for the printing and distribution of voting papers and electionz.com for the processing of voting papers and provision of results and statistics.

3.    Election Day is Saturday 8 October 2022 with the voting period commencing on Friday 16 September 2022. As with all other Councils, the elections will be conducted by postal voting.

4.    Candidate nominations for the various elections, mayor and council, the community boards and the regional council, open on Friday 15 July 2022 and close at 12.00 noon on Friday 12 August 2022. Other key dates are shown in the following table.

Date

Activity

20 June 2022

Electoral Commission enrolment campaign commences

15 July 2022

Candidate nominations open and roll open for public inspection

12 August 2022

Candidate nominations close (12 noon) and roll closes

17 August 2022

Public notice of candidates’ names

16-21 September 2022

Voting documents delivered

16 September to     8 October 2022

Special voting period, progressive roll scrutiny and early processing of returned voting papers

8 October 2022

Election day – voting closes midday

8 October 2022

Preliminary results (early afternoon)

13 October 2022

Declaration of results

7 December 2022

Return of electoral expenses completed (55 days following declaration)

5.    With changes to the governance of the public health sector, the combined voting paper will no longer include District Health Board elections. This will have an impact on overall cost with one less organisation (Hutt Valley District Health Board) sharing the election fixed costs (eg postage, staffing).

6.    As resolved by Council at its meeting of 15 September 2020, a poll will be held, in conjunction with these elections, on the electoral system to be used for the 2025 and 2028 triennial local elections. The two electoral systems able to be used are First Past the Post (FPP) and Single Transferable Voting (STV).

7.    The poll question will be incorporated into the combined voting paper so that only one voting document is required to be handled by electors.  Information on the two systems will accompany the voting paper.

8.    As in previous elections voting papers will be processed progressively with preliminary results available shortly after the close of polling.

9.    Provisions for special voting will be available at three locations in the City as per the 2016 and 2019 elections, (Wainuiomata Library, Walter Nash Centre and Main Administration Building). A further option is being worked through regionally to make available the special voting booth provided by Wellington City Council at a central downtown location to Lower Hutt and other electors from the region, who work in Wellington, to either drop off voting papers at the Wellington booth or make a special vote. This was first arranged in 2019.

10.  Electoral officials from throughout the country met online over four days in February, to help prepare and plan for the elections. Regional meetings of electoral officials have commenced and will continue to be held over the next few months to ensure there is good co-ordination and support.

11.  Officers are currently considering ways to better engage with electors to encourage participation in these elections. A regional campaign is being planned (spearheaded by Wellington City Council), to which we will be contributing. On the national scale, Local Government New Zealand and Taituarā are jointly running a VOTE 2022 campaign.

Order of Candidates’ Names

12.  Council can determine the method used to order candidates’ surnames on the voting paper.  There are three options.  These are to order surnames (family names) in;

a.       alphabetical order; or

b.       random order, where each single voting paper has the names of the candidates randomly ordered; or

c.       pseudo-random where the names of candidates are randomly selected once for all the voting papers.

13.  The cost of and time required to process voting papers will not be affected by whichever option is used. If no decision is made, alphabetical order is the default order of candidate surnames that must be used.

14.  Council has resolved to use the random ordering of surnames for the past three triennial elections, as has Greater Wellington Regional Council.

Hutt Mana Charitable Trust Election

15.  The election of trustees for the Hutt Mana Charitable Trust has been conducted in conjunction with the past five triennial local elections for Lower Hutt.

16.  As the Trust is not specified as an organisation under section 7 of the Local Electoral Act 2001 to which the Act applies, (which would otherwise automatically require the Electoral Officer to conduct the election in conjunction with the local authority elections), authority for the Electoral Officer to conduct this election needs to be made by resolution of Council.

17.  Section 8 of the Local Electoral Act 2001 gives Council that authority to direct the electoral officer to conduct this election.

18.  As well as being a pragmatic solution in having all elections on the one combined voting paper, there is a financial benefit to Council in doing so, as fixed costs such as postage and staffing are spread across the organisations for which the elections are being held.

 

COVID-19 Protection Framework and Local Elections

19.  There are issues and risks that will need to be considered and managed to ensure the elections can be run in a way that meets the principle that all eligible voters have a reasonable and equal opportunity to vote, nominate and accept nomination. (Section 4 (1)(b), Local Electoral Act 2001).

20.  Currently people without a COVID-19 Vaccination Certificate (CVC pass) would not be able to access Hutt City Council premises, such as the Main Administration Building, to lodge nominations or cast special votes.

21.  Taituarā is working with the Department of Internal Affairs and the Ministry of Health to consider these issues and help develop guidance for Councils.  I will report on this further once the guidance is available.

Climate Change Impact and Considerations

22.  There are no climate change considerations required for this matter.

Consultation

23.  Consultation is not required.

Legal Considerations

24.  The Local Electoral Act 2001 and Local Electoral Regulations 2001 govern the conduct of local elections and polls.

Financial Considerations

25.  The total cost of holding the triennial elections including the poll on the electoral system is estimated to be $495,000 of which approximately $155,000 will be recovered from Greater Wellington Regional Council and Hutt Mana Charitable Trust.

Appendices

There are no appendices for this report.   

 

 

 

Author: Bruce John Hodgins

Electoral Officer

 

 

 

Approved By: Jo Miller

Chief Executive


                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

31 January 2022

 

 

 

File: (22/183)

 

 

 

 

Report no: PFSC2022/1/27

 

Seaview Marina Limited Six Month Report to 31 December 2021

 

Purpose of Report

1.    To provide the Committee with an update on the Six Month Report for Seaview Marina Limited (SML) for the six months ended 31 December 2021.

Recommendations

That the Committee receives the half year report from Seaview Marina Limited attached as Appendix 1 to the report.

 

Background

2.    The Local Government Act requires Council Controlled Organisations to deliver to shareholders a half year report on the organisation’s operations within two months of the end of the first half of the financial year. The report should include information required to be reported as outlined in the organisation’s 2021/24 Statement of Intent.

Discussion

3.    The Chairperson and Chief Executive of Seaview Marina Limited (SML) will be in attendance to present their report and answer any questions.

4.    The report to the shareholder for the six months ended 30 December 2021 is attached as Appendix 1 to this report. The report details the results and achievements for the year.

5.    Overall, for the six months ended 31 December 2021, SML achieved a surplus after finance and depreciation charges of $173k, $15k higher than planned.

Options

6.    It is a statutory requirement to present the half year report. There are no other options.

Consultation

7.    There is no requirement for consultation.

Legal Considerations

8.    There are no legal issues to be considered.

Financial Considerations

9.    The six month report includes financial results and associated commentary, including progress against its performance measures to date.  There are no financial issues to be considered. 

Appendices

No.

Title

Page

1

Appendix 1: Seaview Marina Limited Six Month Report to 31 December 2021

204

    

 

 

Author: Sharon Page

Senior Management Accountant

 

 

 

Reviewed By: Ben Wu

Financial Accounting Manager

 

 

 

Approved By: Jenny Livschitz

Group Chief Financial Officer

 


Attachment 1

Appendix 1: Seaview Marina Limited Six Month Report to 31 December 2021

 









                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

02 February 2022

 

 

 

File: (22/221)

 

 

 

 

Report no: PFSC2022/1/26

 

Urban Plus Group Six Month Report to 31 December 2021

 

Purpose of Report

1.    To provide the Committee with an update from Urban Plus Limited Group (UPL), for the six month period to 31 December 2021.

Recommendations

That the Committee receives the half year report from Urban Plus Limited Group attached as Appendix 1 to the report.

 

Background

2.    The Local Government Act requires Council Controlled Organisations to deliver to shareholders a half yearly report on the organisation’s operations within two months of the end of the first half of each financial year.  The report should include information required to be reported as outlined in the organisation’s 2021/22 - 2023/24 Statement of Intent.

Discussion

3.    The Chair and Chief Executive of UPL will be in attendance to present their report and answer any questions.

4.    UPL Group achieved a Surplus before Tax of $4.864M compared to a budgeted Deficit before Tax of $0.991M resulting in a favourable variance of $5.855M.  The favourable variance relates to a delay in settlements at the Central Park and The Lane developments. Twenty five properties had been budgeted to settle by 30 June 2021, however were delayed into the current 2021/22 financial year.

5.    Residential housing achieved a deficit for the first six months to 31 December 2021 of $0.079M compared to a budgeted deficit of $0.133M resulting in a favourable variance of $0.054M.  Revenues are above budget due unbudgeted rental revenue from the purchase of 16A Colson Street.  Expenses are below budget due to maintenance spend tracking behind budget YTD with some offsetting overspends in rates and operating contracts.

6.    Property Development achieved a surplus for the six months ended 31 December 2021 of $4.942M compared to a budgeted deficit of $0.858M resulting in an unfavourable variance of $5.800M.  The large variance has been caused by 25 property settlements that were budgeted in 20/21 falling into the 21/22 financial year.

7.    A Net Surplus before Tax of $9.440M is forecast for the full year, against the budgeted deficit of $0.002M.

8.    In December, UPL received Council’s 2021 letter of expectation which sought from UPL to:

a.   Provide for wider housing need

b.   Build more housing partnerships,

c.   Build pathways to housing permanency,

d.   Implement HomeStar 6 Rating & Environmental Standards

e.   Achieve wider housing outcomes,

f.    Deliver on Plan Change 43 (where Plan Change 43 applies to a development site).  

g.   Promote Māori outcomes

h.   Support Central Government initiatives

i.    Provision of accommodation for the low-income elderly

9.    These priorities have been expressed and provided for in the 2022-2025 UPL Statement of Intent.

10.  There are no significant events subsequent to the reporting period requiring additional disclosure.

Climate Change Impact and Considerations

11.  The Implementation of HomeStar 6 Rating and new environmental standards for new housing developments will support Council in its objective to address impacts of climate change.

Consultation

12.  There is no requirement for consultation.

Legal Considerations

13.  The Local Government Act requires Council, as a shareholder in UPL, to publish this report on its public website within one month of receiving it and to maintain the report on that site for a period of no less than seven years.

Financial Considerations

14.  There are no additional financial considerations to be noted.

Appendices

No.

Title

Page

1

Appendix 1: UPL Group Half Year Report to December 2021

215

    

 

 

Author: Simon George

Senior Accountant

 

 

 

Author: Daniel Moriarty

Chief Executive, Urban Plus

 

 

 

Reviewed By: Ben Wu

Financial Accounting Manager

 

 

 

Approved By: Jenny Livschitz

Group Chief Financial Officer

 


Attachment 1

Appendix 1: UPL Group Half Year Report to December 2021

 















                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

25 January 2022

 

 

 

File: (22/78)

 

 

 

 

Report no: PFSC2022/1/25

 

Hutt Valley Chamber of Commerce Six Monthly Report to 31 December 2021

 

Purpose of Report

1.    The report summarises the Hutt Valley Chamber of Commerce (HVCC) performance against agreed performance measures for the six months to 31 December 2021.

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.

Recommendation

That the Committee notes and receives the report.

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

 

Background

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

5.    In Financial Year (FY) 2021/2022 funding for services is $125,000 in total and is allocated in the 2021/31 Long Term Plan for economic development activities.

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 31 December 2021 is attached as Appendix 1 to the report.

8.    Highlights for the period include:

·    The appointment of a new Chief Executive, Patrick McKibben on the resignation of Helen Down.

·    A coordinated response to the business community during COVID-19 lockdown in August 2021, including Hutt City and Upper Hutt City Councils and other business agencies in both Lower and Upper Hutt cities.

·    Continuation of the work under contracts with Government agencies regarding the Review of Vocational Education (RoVE), including another successful tender for events to encourage young people into trades from Ministry of Education.

·    Continued activities to assist local businesses adapt to a COVID-19 environment including livestreams and information on changes to the Covid-19 Protection Framework.

·    Along with the DHB and Council it encouraged the business sector to take up vaccination opportunities in the city.

·    Provided a range of Council teams with opportunities to engage with the business community e.g. Climate change

9.    Council agreed to contract HVCC for specific direct services in FY2021/22 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.

10.  Despite this being a period of change for the Chamber there has been a notable increase in the level of activity between the Chamber and Council.  

Consultation

11.  HVCC has submitted its report for the six months to 31 December 2021 for the Committee’s consideration and it is attached as Appendix 1 to the report.  Representatives of HVCC will be in attendance to speak to their report.

12.  It should be noted that the contract requirements were met in addition to the business response to COVID-19 that the Chamber led during this period.

Climate Change Impact and Considerations

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

14.  There are no climate change considerations.

Legal Considerations

15.  There are no legal considerations.

Financial Considerations

16.  HVCC is contracted to provide services to Council until 30 June 2024 with the Contract Services Delivery Schedule reviewed and agreed every 12 months.

17.  The contract has a value of $125,000 per annum.

Appendices

No.

Title

Page

1

Appendix 1: Hutt Valley Chamber of Commerce Report to 31 December 2021

232

    

 

 

 

 

Author: Gary Craig

Head of Business and Economy

 

 

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


Attachment 1

Appendix 1: Hutt Valley Chamber of Commerce Report to 31 December 2021

 















 


                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

25 January 2022

 

 

 

File: (22/79)

 

 

 

 

Report no: PFSC2022/1/28

 

Seaview Business Association 12 Monthly Report to 31 December 2021

 

Purpose of Report

1.    This report summarises the Seaview Business Association (SBA) performance for the 12 months to 31 December 2021.

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

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

Recommendation

That the Committee receives and notes the information.

For the reason that the Seaview Business Association is required to report back on progress against agreed outcomes over the prior 12-month period.

 

Background

4.    Council has contracted the Seaview Business Association (SBA) to undertake specific actions outlined in the Vision Seaview/Gracefield 2030 Implementation Strategy and Work Plan.

5.    The SBA operates as an Incorporated Society using allocated funding in Council’s Long Term Plan/Annual Plan to implement the work plan.

6.    This is the tenth year of activity undertaken by the SBA.

Discussion

7.    The SBA report for the 12 months to 31 December 2021 is attached as Appendix 1 to the report.

8.    Highlights and updates for the period to 31 December 2021 include:

·    417 businesses are now members of the SBA.

 ·   Events such as, The State of Play Ahead – presentation from Catherine Beard, Executive Director, Export NZ and Manufacturing NZ.

·    Arriba PR has contributed to writing newsletter articles, increasing reader numbers and article quality.

·    Major review of the Seaview CCTV camera system has been completed with opportunities identified to improve its performance and increase area safety.

·    InTune to commence work on CCTV network upgrades.

Officer Commentary

9.    The SBA continues to be represented by an active, interested group of business people in the area. The board has had a stable core of members and has attracted new members.

10.  The Board continues to focus on issues which are relevant and important for the area and its members. Security and illegal racing have been key issues for SBA members. In response the current CCTV network has been redesigned with upgrade work set to commence in early 2022.

11.  With business membership now at 417, a comprehensive database is maintained and used to disseminate information, a valuable communication tool for the SBA and Council. 

12.  COVID-19 restrictions have impacted the SBA’s ability to hold events in 2021. Despite this, governance meetings continued through the use of virtual tools.

13.  The SBA has improved their newsletter quality through contracting a PR specialist. A noticeable increase in subscriptions has occurred over the past 6 months in response.

14.  Mike Henderson of Efficient Movers was elected for a second term as Chairperson with Carl Longstaff of Metal Art elected as Treasurer.

Climate Change Impact and Considerations

15.  There are no climate change considerations.  

Consultation

16.  SBA has submitted its report for the year ended 31 December 2021 attached as Appendix 1 to the report for the Committee’s consideration. Representatives of SBA will be present to speak to their report.

Legal Considerations

17.  There are no legal considerations.

Financial Considerations

18.  The SBA is funded $44,000 this financial year. It is intended that this regular allocation is also provided next financial year. Funding comes from the Long Term Plan/Annual Plan for economic development activities in the city.

Appendices

No.

Title

Page

1

Appendix 1: Seaview Business Association Report to 31 December 2021

250

 

 

 

Author: Rory Leonard

Advisor - Business and Economy

 

 

 

Reviewed By: Gary Craig

Head of Business and Economy

 

 

 

Approved By: Kara Puketapu-Dentice

Director Economy and Development

 


Attachment 1

Appendix 1: Seaview Business Association Report to 31 December 2021

 




                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

29 January 2022

 

 

 

File: (22/18)

 

 

 

 

Report no: PFSC2022/1/29

 

Council performance overview for the half year ended 31 December 2021

 

Purpose of Report

1.    The report provides an overview of the Hutt City Council performance results for the period 1 July 2021 to 31 December 2021.

Recommendation

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 half year ended 31 December 2021. An external audit by Audit New Zealand will be completed at the end of the financial year.

Discussion

Quarterly highlights and achievements

3.    Appendix 1 attached to the report provides details on the highlights and achievements over the quarter. Highlights and achievements are outlined below.

4.    The organisational redesign was completed this quarter, with the new structure for Neighbourhoods and Communities commencing in November 2021. This phase focused on alignment to the strategic direction set by Council in its Long-Term Plan, in particular the priority of connected communities.

 

 

5.    The Future for Local Government Review interim report Ārewa ake te Kaupapa - Raising the Platform was released in October and a presentation was provided on this at the Councillors’ hui in November. We are awaiting confirmation from the review panel on the next phase of engagement as they develop the draft report and recommendations.

6.    Highlights of the quarter included becoming a Living Wage Accredited employer, the introduction of new wellbeing benefits for staff and our He Tangata Awards which were moved online in December as we planned for COVID-19.

7.    The kerbside rubbish and recycling service that started in July 2021 moved into business as usual. Work on a post-implementation appraisal commenced with reporting due to the Long Term Plan/Annual Plan Subcommittee in February 2022 and the Climate Change and Sustainability Committee.

8.    In December 2021 Council submitted to Kāinga Ora a request for proposal from the Valley Floor Infrastructure Acceleration Fund (IAF). The infrastructure we are seeking IAF funding for is intended to deliver stormwater alleviation and a wastewater bypass for up to 1,750 new homes associated with the RiverLink project.

9.    Council purchased the historic Naenae Post Office building in December 2021 for community purposes. The purchase of the Post Office building is a step forward in the revitalisation of Naenae and further demonstrates our commitment to the community as expressed in the Voice of the Naenae Community report.

10.  Council has aligned its operations to the government’s new COVID-19 Protection Framework ‘traffic light system’ that replaced the Alert Levels and brought in vaccine pass mandates.

11.  The 2020/2021 Annual Report was signed off by Council and auditors before the statutory deadline.

12.  Our consenting and regulatory teams continue to be very busy as development activity across our city remains high. The value of multi-unit developments (i.e., 3 or more on one site) continues to increase. There have been delays in processing due to the significantly increased workload. This reflects not only the increased number of the consents but also the complexity of the applications that are being received.

13.  Preparatory work for water reform has continued through the quarter. Planning is underway for community engagement once legislation is introduced to Parliament. An exposure draft of the water reform legislation was released in late December 2021.

14.  In December 2021 the Resource Management (Enabling Housing Supply and Other Matters) Amendment Act was passed into legislation. This requires an intensification planning instrument (IPI) to be notified by 20 August 2022, using the intensification streamlined planning process (ISPP).

15.  The Barber Grove to Seaview WWTP Wastewater Trunk Main project ($26M) works commenced following a sod turning ceremony on 10 February 2022.

People and capability

16.  Attached as Appendix 2 to the report are the quarterly results for health, safety and wellbeing.  

Performance measure results 

17.  Attached as Appendix 3 to the report are the second quarter key performance indicator (KPI) results and the broader outcome trend information. Below is a summary.

18.  Of the KPI measures that have a current target and are measured quarterly: 44% were on target or above target and 56% were below target. The measures relating to visitor numbers at our hubs and facilities did not make target as visitor numbers continue to be affected by COVID-19 restrictions. Several Wellington Water measures also failed to make target and there have been a higher-than-expected number of serious accidents on our roads. Some building consent applications, code of compliance certificates and compliance schedules have not been processed within the statutory deadline due to resourcing issues.

19.  The overdue measures include: the waste tonnage measures – the December data has not been provided to Council yet; swimming pool visitor numbers where the data has been provided but new targets are yet to be set with the new Pools Manager so appear as overdue.

20.  Residents are surveyed twice yearly. The sample size and questions have been reviewed and incorporated feedback from internal staff, a small group of external residents and the external provider, Public Voice and interim results are attached in Appendix 3 to the report. Final results will be available on 18 February 2022.

Background – Annual Plans versus Revised Budget

21.  The Long Term Plan 2021-2031 was approved on 30 June 2021. The budgets included in the plan for 2021/22 were based on the latest financial information and estimates available at the time of the preparation of the plan.

22.  Through the review of the year-end financial results for 2020/21 there were a few budget matters identified which had flow-on impacts for 2021/22. For example, the estimated timing of project expenditure budgeted in 2021/22 changed for a range of reasons and the value of expenditure actually incurred in 2020/21 was different to that forecasted previously. From a project/budget manager perspective the budget in 2021/22 was requested to be updated to include carryovers to reflect the timing difference to improve clarity of the correct budget for the project/budget manager.

23.  A revised budget for 2021/22 has been created to reflect the budget updates required to improve the accuracy of budgets and the associated reporting of variances. Similar to 2020/21, the focus of performance monitoring is on financial results compared to the revised budget, as this is the most meaningful from a performance perspective.

24.  Table 1 that follows provides a summary view of the budget changes made to date, and includes decisions by the Policy, Finance and Strategy Committee in September 2021 (refer PFS2021/4/197, report entitled ‘Budget Update 2021/22’) and by the Long Term Plan/Annual Plan Subcommittee on 16 December 2021 (refer LTPAP2021/5/290, report entitled ‘Draft Annual Plan 2022-2023 – Financial Aspects’).

Table 1: Changes captured by the revised budget

$Million 

Net surplus  
2021/22 

Capital investment   
2021/22 

Annual Plan 2021/22 

0.8 
Surplus 

103.5 

Operating and capital project budgets and subsidies carried forward from 2020/21 

(2.2) 

5.6 

Budget rephasing between years as approved in the LTP/AP Subcommittee meeting on 16 December 2021 

3.3 

(7.1) 

Reclassifying capital budget to operating to reflect the use of Software as a Service in Information Systems programme delivery 

(0.3) 

(0.3) 

Revised Budget 2021/22 

1.6 
Surplus 

101.7 

Financial Performance Results

25.  This section provides an overview of the financial performance results for the six-month period ended 31 December 2021. Attached as Appendix 4 to the report is further detailed information.

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

27.  The year-to-date (YTD) net operating financial result is $8.6M (15.5%) favourable to budget. The full year (FY) forecast is $2.1M (9%) favourable to budget mainly due to higher forecast operating revenue of $3.5M and rates of $0.7M, partially offset by higher forecast expenditure of $2.1M.


 

 

Table 2: Operating Results

$Millions 

YTD Actual

YTD Revised Budget

Variance

FY Forecast

FY Revised Budget

Variance

FY Annual Plan

Operating revenue 

35.6  

32.2  

3.4 

64.8  

61.3 

3.5  

61.4  

10.6% 

5.7% 

Operating expenditure 

102.1  

106.1  

4.0  

216.2  

214.1 

(2.1) 

212.5  

3.8% 

(1%) 

Net operating deficit before rates income 

(66.5) 

(73.9) 

7.4  

(151.4) 

(152.8) 

1.4  

(151.1) 

10% 

0.9% 

Rates income 

130.7  

129.5  

1.2  

130.2  

129.5 

0.7  

129.5  

0.9% 

0.5% 

Net operating surplus/ (deficit) 

64.2  

55.6  

8.6  

(21.2) 

(23.3) 

2.1  

(21.6) 

15.5% 

9% 

Capital contributions 

7.1  

7.1  

22.4  

23.6 

(1.2) 

22.1  

Net surplus/ (deficit) before adjustments 

71.3  

62.7  

8.6  

1.2  

0.3 

0.9  

0.5  

Other non-operating adjustments 

9.0  

0.5  

8.5  

9.2  

1.3 

7.9  

0.3  

Net surplus/ (deficit) 

80.3  

63.2  

17.1  

10.4  

1.6 

8.8 

0.8  

 

28.  Operating revenue: The operating revenue for the year is forecast to be $3.5M favourable (5.7%) to the budget of $61.3M. This is largely due to higher landfill revenue of $1.4M, Three Waters Stimulus Funding carried over from last year’s underspend $2.3M and higher revenue in Regulatory Services $0.3M, offset by a loss of revenue due to closures and restrictions because of COVID-19 impacting community spaces $0.8M.

29.  Operating expenditure: The operating expenditure for the year is forecast to be $2.1M (1%) unfavourable to the budget of $214.1M. This is largely due to work related to the Three Waters Stimulus Funding $2.3M, Solid Waste increased operating and ETS costs of $1.8M, increased interest expense $1M, increased maintenance costs in Transport $0.3M, and higher resourcing costs in Regulatory Services $0.5M (which are recoverable), offset by an underspend related to the Development Stimulus Package $3.8M (expected to be carried over to next financial year).

30.  The year-do-date operating expenditure is currently $4M favourable to budget. This is largely due to COVID-19 restrictions resulting in delays in programmed work and site closures, reducing operating spend. The year-end forecasts are based on the expectation that much of the delayed works will be completed by the end of the financial year as programmes progress. However, it should be noted that the year-end forecasts were set prior to the Red Traffic Light setting that we are currently in, and therefore may change as impacts become known.

31.  Rates income: The rates income for the year of $130.2M is forecast to be $0.7M higher than budgeted mainly due to additional growth in the rating base, database maintenance updates and other minor variances.

32.  Capital contributions: These are forecast to be $1.2M lower than budgeted mainly due to capital subsidies related to delayed Transport projects that are expected to be carried over $2.5M, offset by forecast increases in financial contributions for Parks Reserves $1.2M.

33.  Non-operating adjustments: Gains on the fair value of derivatives was $9M on 31 December 2021.  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

Table 2: Capital expenditure results

$Millions

YTD Actual

YTD Revised Budget

Variance

FY

Forecast

FY

Revised Budget

Variance

FY

Annual Plan

Replacements

8.3

14.3

6.0

37.9

44.6

6.7

52.1

Improvements

11.8

15.6

3.8

44.8

51.5

6.7

48.1

Growth

 

0.6

1.0

0.4

4.1

5.6

1.5

3.3

Total

20.7

30.9

10.2

86.8

101.7

14.9

103.5

 

34.  Capital expenditure delivery to-date is $20.7M or 24% of the full programme forecast for the year of $86.8M. The Three Waters are forecast to be $9.7M (25%) underspent at year end mainly due to delays in project planning, the effects of COVID-19 lockdown on project delivery and the capacity constraints of contractors, with all delayed projects expected to be carried over and completed within 2022/23 and 2023/24 by Wellington Water Ltd. 

Project delivery performance

35.  Appendix 5 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.

36.  The projects included are the District Plan, Eastern Bays Shared Path, Go Digital, Naenae Pool and spatial plan, Riverlink, Kerbside collection and Three waters investment. 

37.  There are a range of risks and issues being managed, with furthermore detail reporting and briefings provided to relevant committees. Officers will attend the meeting to provide further updates and respond to queries.

38.  Table 3:  project status summary

Treasury Compliance

39.  Council has been fully compliant with Financial Strategy borrowing limits.

Table 4:  Financial Strategy limits

Measures

Policy

Actual
 31 Dec 2021

Compliant

Net external debt/total revenue

Maximum 250%

101.7%

Yes

Net interest on external debt/total revenue

Maximum 10%

2.1%

Yes

Net interest to annual rates income

Maximum 20%

2.7%

Yes

Liquidity ratio

Minimum 110%

125.3%

Yes

40.  An average cost of funds of 2.82% over the period was achieved, which is 0.32% higher than budgeted, primarily due to market driven changes.

41.  Interest costs are higher to date than budget by $0.56M, mainly due to slightly higher debt levels than budgeted and increased cost of funds due to market changes.

42.  Interest earned on cash holdings is slightly ahead of budget by $60K, primarily due to higher cash holdings and pre-funding activities for debt maturing in 2022.

43.  Appendix 6 to the report details further treasury information.

Options

44.  Not applicable.

Climate Change Impact and Considerations

45.  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

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

Legal Considerations

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

Financial Considerations

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

Appendices

No.

Title

Page

1

Appendix 1: Quarterly performance 1 October 2021 to 31 December 2021

261

2

Appendix 2: Health safety and wellbeing for the period ended 31 December 2021

278

3

Appendix 3: Non-financial outcome and KPI report to 31 December 2021 and interim residents survey results February 2022

281

4

Appendix 4 Financial Performance Results to 31 December 2021

305

5

Appendix 5: Project performance review for the period to 31 December 2021

312

6

Appendix 6: Treasury report for the period to 31 December 2021

317

 

Author: Enid Davids, Principal - Portfolio Performance

 

Author: Caryn Ellis, Head of Chief Executive's Office

 

Author: Kelly Alkema, Chief People Officer

 

Author: Karl Eagle, Senior Management Accountant

 

Author: Catherine Taylor, Principal Advisor Research and Evaluation

 

Author: Jenny Livschitz, Group Chief Financial Officer

 

Approved By: Jarred Griffiths, Acting Director Strategy and Planning

 


Attachment 1

Appendix 1: Quarterly performance 1 October 2021 to 31 December 2021

 


















Attachment 2

Appendix 2: Health safety and wellbeing for the period ended 31 December 2021

 




Attachment 3

Appendix 3: Non-financial outcome and KPI report to 31 December 2021 and interim residents survey results February 2022

 

























Attachment 4

Appendix 4 Financial Performance Results to 31 December 2021

 








Attachment 5

Appendix 5: Project performance review for the period to 31 December 2021

 






Attachment 6

Appendix 6: Treasury report for the period to 31 December 2021

 




                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

02 February 2022

 

 

 

File: (22/211)

 

 

 

 

Report no: PFSC2022/1/30

 

Three Waters Reform Update

 

 

 

 

1.    This report provides a brief update on three waters reform, noting that not a great deal has happened over the December/January holiday period as was to be expected.

Recommendation

That the report be noted and received.

 

Governance Working Group

2.    The government-appointed Governance Working Group, of which Mayor Barry is a member, continues to meet to consider options and recommendations to meet concerns regarding local input and accountability.  The Working Group will be meeting weekly in February to prepare its report to Cabinet which is due on 28 February 2022. Cabinet is expected to meet in March 2022 to consider any changes to the draft Water Services Entities Bill.

Three Waters Reform engagement planning update

3.   To give effect to Council’s 2021 decision regarding three waters engagement, officers are progressing a plan to engage with Lower Hutt residents and businesses on the Government’s proposed reforms.

4.  The primary approach is to provide the Lower Hutt community with quality, accurate, localised information. From there, residents will be directed to either make a submission directly to select committee (with supporting information on how that process works), or to complete a survey to inform Council’s submission to the same select committee.

5.    It’s important that the messaging around this engagement is clear that decisions around the reforms are for Parliament to make, not Council.

 

6.    Officers are preparing revised content for the Council website, and exploring means of engagement that will provide the best measure of community perspectives. This is likely to take the form of an online survey on our engagement website.

7.    Officers are preparing for this content to be ready for launch once the reform Bill is introduced to Parliament.

Transitional Matters

8.    The officer working group established to help plan and coordinate responses, advice or actions for the Wellington Region commenced its regular fortnightly meetings on 31 January 2022.  There was not a lot of new information to discuss at that meeting, though we did have an update from Ian McSherry from the National Transition Unit (NTU).  Ian is responsible for interfacing with Councils in area C.

9.    The focus over the next few months for the NTU is to build relationships with Iwi and Councils, refining how we will work together, establishing transition reference and working groups and getting time critical activities underway. Attached to this report as Appendix 1 is the Transition Information Pack released in January 2020 by the NTU.

10.  A critical aspect of the transition is managing staff resourcing so that key three waters staff (from Wellington Water Limited (WWL) and other Councils in Area C) can participate in the transition process and establishment of the new entities, without compromising the ability to deliver existing services over the next two and a half years. The NTU has indicated that it will provide resources to backfill positions that have been seconded, but it is likely that this will be difficult to achieve given the availability of suitably trained and experienced three waters personnel.

11.  The NTU has requested (on 31 January 2022) from all councils and WWL details of personnel working in the three waters area. This is the first such request for information that is expected over the next few months.  This request largely impacts WWL.

12.  Attached to this report as Appendix 2 is an outline of the potential work programme and opportunities for regional collaboration over the next twelve months which has been drafted by Dougal List, the Project Director Regional Water Reform.

Appendices

No.

Title

Page

1

Appendix 1: Transition information pack

322

2

Appendix 2: Potential Three Waters work programme

334

 

Author: Bruce Hodgins, Strategic Advisor

Author: Jenny Livschitz, Group Chief Financial Officer

Approved By: Helen Oram, Director Environment and Sustainability


Attachment 1

Appendix 1: Transition information pack

 












 


Attachment 2

Appendix 2: Potential Three Waters work programme

 




                                                                                       0                                                    22 February 2022

Policy, Finance and Strategy Committee

02 February 2022

 

 

 

File: (22/227)

 

 

 

 

Report no: PFSC2022/1/31

 

Policy, Finance and Strategy Committee Work Programme 2022

 

 

 

 

 

Recommendation

That the Work Programme be received and noted.

 

 

Appendices

No.

Title

Page

1

Appendix 1: Work programme 2022-23

338

    

 

 

Author: Judy Randall

Democracy Advisor

 

 

 

Reviewed By: Kate Glanville

Senior Democracy Advisor

 

 

 

Approved By: Kathryn Stannard

Head of Democratic Services

 

 


Attachment 1

Appendix 1: Work programme 2022-23