Agenda of Committee of Council

PALMERSTON NORTH CITY COUNCIL

Committee of Council MEETING

19 June 2017

Order of Business

(NOTE: The commencement time for this meeting coincides with the commencement time for the Finance and Performance meeting. The format for the meeting will be that the Committee of Council meeting will open, take apologies and adjourn immediately to allow the Finance and Performance Meeting to consider its business. At the conclusion of the Finance and Performance meeting the Committee of Council meeting will resume to consider its business.)

1. Apologies

2. Notification of Additional Items

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion. No resolution, decision or recommendation can be made in respect of a minor item.

3. Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other Committee matters.

(NOTE: If the Committee wishes to consider or discuss any issue raised that is not specified on the Agenda, other than to receive the comment made or refer it to the Chief Executive, then a resolution will need to be made in accordance with clause 2 above.)

4. Confirmation of Minutes Page 7

“That the minutes of the Committee of Council meeting of 24 May 2017 Part I Public be confirmed as a true and correct record.”

5. Finalising the Annual Budget (Plan) 2017/18 Page 15

Memorandum, dated 7 June 2017 from the Strategy Manager Finance, Steve Paterson.

6. Exclusion of Public

To be moved:

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

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:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 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 as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

Acting Chief Executive (David Wright), Chief Financial Officer (Grant Elliott), General Manager, City Enterprises (Ray McIndoe), General Manager, City Future (Sheryl Bryant), General Manager, City Networks (Ray Swadel), General Manager, Customer Services (Peter Eathorne), General Manager, Libraries and Community Services (Debbie Duncan), Human Resources Manager (Wayne Wilson) and Strategic Communications Manager (Mark Torley) because of their knowledge and ability to provide the meeting with advice on matters both from an organisation-wide context (being members of the Council’s Management Team) and also from their specific role within the Council.

Legal Counsel (John Annabell), because of his knowledge and ability to provide the meeting with legal and procedural advice.

Governance and Support Team Leader (Kyle Whitfield) and Committee Administrators (Penny Odell, Carly Chang and Rachel Corser), because of their knowledge and ability to provide the meeting with procedural advice and record the proceedings of the meeting.

[Add Council Officers], because of their knowledge and ability to assist the meeting in speaking to their report and answering questions, noting that such officer will be present at the meeting only for the item that relate to their respective report.

[Add Third Parties], because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

PALMERSTON NORTH CITY COUNCIL

Palmerston North City Council

Minutes of the Committee of Council Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 24 May 2017, commencing at 9.01am

Members

Present:

The Mayor (Grant Smith) (in the Chair) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Karen Naylor, Bruno Petrenas and Tangi Utikere.

Apologies:

Councillor Adrian Broad (early departure), Lew Findlay QSM (early departure) and Jim Jefferies (early departure).

Councillor Duncan McCann entered the meeting at 9.15am during consideration of clause 5. He was not present for clauses 3 to 4 inclusive.

Councillor Adrian Broad left the meeting at 11.55am at the conclusion of clause 5.3.h.4. He entered the meeting again at 12.49pm during the consideration of clause 5.3.h.10. He was not present for clauses 5.3.h.5 to 5.3.h.9 inclusive.

Councillor Lew Findlay QSM left the meeting at 12.44pm at the conclusion of clause 5.3.h.9. He entered the meeting again at 2.55pm during the consideration of clause 5.3.h.19. He was not present for clauses 5.3.h.10 to 5.3.h.18 inclusive.

Councillor Jim Jefferies left the meeting at 3.02pm during consideration of clause 5.3.h.19. He was not present for clauses 5.3.h.19 to 5.3.h.26 inclusive.

4-17

Apologies

Moved Grant Smith, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

5-17

Confirmation of Minutes

Moved Grant Smith, seconded Tangi Utikere.

The COMMITTEE RESOLVED

1. That the minutes of the Committee of Council meeting of 20 February 2017 Part I Public and 3 May 2017 Part I Public be confirmed as a true and correct record.

6-17	Proposed Annual Budget 2017/18 - Outcome of Consultation Process Memorandum, dated 18 May 2017 from the Strategy Manager Finance, Steve Paterson, the Planning and Reporting Coordinator, Courtney Kibby and the Claims Management Officer, Jo-Anne Dulieu. Councillor Duncan McCann entered the meeting at 9.15am
	Moved Grant Smith, seconded Tangi Utikere. The COMMITTEE RECOMMENDS 1. That the written submissions from the consultation process on the proposed Annual Budget be received. 2. That the officer comments made in response to issues raised during the consultation process – entitled “Proposed Annual Budget 2017/18 – Officer Comments to Issues Raised in Submissions” (attached as Appendix 1 of the report dated 18 May 2017 and entitled: Proposed Annual Budget 2017/18 – Outcome of Consultation Process) – be received
	3. That the Chief Executive be instructed to prepare a draft of the final Annual Budget document for consideration by the Committee of Council meeting on 19 June 2017 and that it incorporate:
	Moved Grant Smith, seconded Karen Naylor. a. The proposed programme carry forwards – entitled “Annual Budget 2017/18 Schedule of Proposed Carry Forward Capital Programmes” (attached as Appendix 2 of the report dated 18 May 2017 and entitled: Proposed Annual Budget 2017/18 – Outcome of Consultation Process);
	Moved Tangi Utikere, seconded Lorna Johnson. b. That programmes 1086 - Street Light Upgrade LEDs and 74 - Street Light Replacements allow staff to consider appropriate LED installation to mitigate issues raised during the submission process and to a report back to Council to ensure that all standards are met before lantern conversion.
	Moved Grant Smith, seconded Tangi Utikere. c. The other proposed budget changes – entitled “Annual Budget 2017/18 Schedule of Proposed Budget Changes” (attached as Appendix 3 of the report dated 18 May 2017 and entitled: Proposed Annual Budget 2017/18 – Outcome of Consultation Process);
	Moved Susan Baty, seconded Lew Findlay QSM. d. Except that the $66,000 remains with the Linklater Reserve Budget and a report is received on the full Waitoetoe dog park development.
	Moved Karen Naylor, seconded Brent Barrett. e. That there be a reduction of $50,000 Convention Centre revenue with an understanding that there would be plans to increase revenue.
	Moved Grant Smith, seconded Tangi Utikere. f. Amended budgets for capital programmes to reflect the updated assessment of timing as outlined in Appendix 4 of the report dated 18 May 2017 and entitled: Proposed Annual Budget 2017/18 – Outcome of Consultation Process; except as stated below;
	Moved Susan Baty, seconded Rachel Bowen. g. Defer programme 1181 Hokowhitu Lagoon – Canoe Polo Club Court Improvements to 2018/19 and bring forward programme 1320 – Supplementary Water Take from Manawatu River to Hokowhitu Lagoon $220,000 to 2017/18. Meeting adjourned at 10.46am Meeting resumed at 11.06am
	Moved Grant Smith, seconded Tangi Utikere. h. As a consequence of public consultation, amendments determined by the Committee, as outlined below:
	Moved Grant Smith, seconded Karen Naylor. 1. Provide an extra $130,000 for additional debt repayment in the 2017/18 year.
	Note: On a motion that: Provide an extra $600,000 for additional debt repayment in the 2017/18 year. The original motion was passed 10 votes to 5. The voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay, Jim Jefferies, Duncan McCann and Bruno Petrenas. Against: Councillors Rachel Bowen, Leonie Hapeta, Lorna Johnson, Karen Naylor and Tangi Utikere.
	Note: On a motion that the following item lie on the table: Provide an extra $600,000 for additional debt repayment in the 2017/18 year. The motion was lost 7 votes to 8, the voting being as follows: For: Councillors Tangi Utikere, Rachel Bowen, Gabrielle Bundy-Cooke, Leonie Hapeta, Lorna Johnson, Karen Naylor and Bruno Petrenas. Against: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies and Duncan McCann.
	Note: On a motion that: Recommendation ‘Provide an extra $600,000 for additional debt repayment in the 2017/18 year’ be revoked was carried.
	Moved Leonie Hapeta, seconded Grant Smith. 2. In relation to Submission 143 from Manawatu Cricket Association that at Fitzherbert Park the following amounts be allocated: (1) To promote having grass practice facilities and nets PNCC contributions $134,665.68; (2) To promote scorers, officials and press box PNCC contribution $14,397.90 (3) To promote an upgrade of the pavilion PNCC contribution $6,600.00 – Total amount from PNCC of $175,663.58.
	Moved Leonie Hapeta, seconded Tangi Utikere. 3. In relation to Submission 60 – Menzshed – that the building at Rangitane Park be formally leased to Menzshed Manawatu for a 5 year lease, and the Menzshed become the sole lease holder.
	Moved Lorna Johnson, seconded Tangi Utikere. 4. That $6,000 be added to programme 587 – Linklater Reserve Development to allow for construction of a barrier/fence at the front of the park. Councillor Adrian Broad left the meeting at 11:55am
	Moved Lorna Johnson, seconded Leonie Hapeta. 5. That Chief Executive be instructed to include options for allowing sound and lighting of the skate rink (on assumption of it being paid externally) when preparing the development plan for Memorial Park.
	Moved Gabrielle Bundy-Cooke, seconded Rachel Bowen. 6. That the Chief Executive be instructed to work with the community in order to advance consideration by the New Zealand Transport Agency of the Road Safety considerations in Aokautere.
	Moved Rachel Bowen, seconded Leonie Hapeta. 7. That a new programme be added for $20,000 to provide a feasibility study into a Military History Exhibition facility.
	Moved Rachel Bowen, seconded Leonie Hapeta. 8. That Programme 1133 – Artificial Football turf Request for Information process be brought forward into the 2017/18 year.
	Moved Rachel Bowen, seconded Leonie Hapeta. 9. That Unallocated Community Events funding for 2017/18 (summer Concert) be directed to funding fireworks ($20,000) and Reel Earth ($30,000) and to seek external funding if appropriate. Councillor Lew Findlay QSM left the meeting at 12.44pm Meeting adjourned at 12.45pm Meeting resumed at 1.48pm
	Moved Rachel Bowen, seconded Leonie Hapeta. Councillor Adrian Broad entered the meeting again at 1.49pm 10. That an additional programme of $50,000 for the 2017/18 year be added to support a major events fund with Manawatu District Council through the Central Economic Development Agency.
	Moved Rachel Bowen, seconded Duncan McCann. 11. That the Chief Executive be instructed to enter into discussions with the Central Economic Development Agency as to the future of the Manawatu Events Trust so that it can be a fundraising mechanism for all events.
	Moved Jim Jefferies, seconded Rachel Bowen. 12. That a $7,500 provision be made for maintenance of Arapuke Mountain Bike trails as requested by Manawatu Mountain Bike Club in submission 101.
	Moved Jim Jefferies, seconded Tangi Utikere. 13. That provision be made to provide $6,000 requested by Bainesse District Community Development Trust for development of a feasibility and costing study in submission 141.
	Moved Leonie Hapeta, seconded Jim Jefferies. 14. In relation to submission 60 from the Menzshed Manawatu – that a costing to update toilets and modify internal walls and construct an outdoor shelter be presented to the 2018/28 Long Term Plan for Consideration.
	Moved Rachel Bowen, seconded Gabrielle Bundy-Cooke. 15. That programme 1280 be renamed Winter Festival/Arts Celebration for the City, including Regent Birthday Gala event and seeking external funding as appropriate.
	Moved Rachel Bowen, seconded Lorna Johnson. 16. New programme to support starting the work on school travel plans as envisioned in the Integrated Transport Strategy. $40,000 refer continuation of programme to the Long Term Plan.
	Moved Lorna Johnson, seconded Rachel Bowen. 17. That $100,000 be included for 2017/18 for programme 1327 - Walkers Road - to include completion of shared pathway and seek a report back on scoping and costs and to seek external funding and resources.
	Moved Rachel Bowen, seconded Lorna Johnson. 18. That the Chief Executive be instructed to engage with the Walkers Road community around the provision of recycling services.
	Moved Tangi Utikere, seconded Lorna Johnson. 19. That the Chief Executive be instructed to report back on options to address the issue of access to Te Patikitiki Library as raised in submission 24 from Judith Barsanti. Councillor Lew Findlay QSM entered the meeting again at 2.55pm Councillor Jim Jefferies left the meeting at 3.02pm
	Moved Karen Naylor, seconded Grant Smith. 20. That Council allocate only $50,000 to continue the Bikes in Schools programme 1214. Meeting adjourned at 3.06pm Meeting resumed at 3.21pm
	Moved Rachel Bowen, seconded Duncan McCann. 21. That the Chief Executive be instructed to provide a report into the relationship between the Ministry of Education transport and our footpath network, with recommendations for urgent issues arising with a budget of $10,000.
	Moved Grant Smith, seconded Lorna Johnson. 22. That the remaining unsealed portion of Forest Hill Road be sealed over a one year period, at an estimated cost of $500,000.
	Moved Lorna Johnson, seconded Tangi Utikere. 23. That $5,300 be added to programme 1172 – Drinking Fountains at Recreational Facilities to allow for construction of a drinking fountain and bottle filling station in Ashhurst.
	Moved Karen Naylor, seconded Gabrielle Bundy-Cooke. 24. That Council considers investment towards the Cornerstone Hall and Meeting Room Development during the Long Term Plan process, following completion of the Kelvin Grove Feasibility Study.
	Moved Grant Smith, seconded Gabrielle Bundy-Cooke. 25. That Council commits to plans for the Bunnythorpe Community Centre within the 2017/18 year.
	Moved Vaughan Dennison, seconded Grant Smith. 26. That a new operational budget of $500,000 be included as a provision to contribute toward the riverbank protection of the Ashhurst Domain.

The meeting finished at 5.02pm

Confirmed 19 June 2017

Chairperson

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Committee of Council

MEETING DATE: 19 June 2017

TITLE: Finalising the Annual Budget (Plan) 2017/18

DATE: 7 June 2017

AUTHOR/S: Steve Paterson, Strategy Manager Finance, City Corporate

RECOMMENDATION(S) TO Council

1. That the Annual Budget 2017/18 as circulated with the report titled “Finalising the Annual Budget 2017/18” dated 7 June 2017 be adopted as the final Annual Budget(Plan), subject to the following amendments (if any).

2. That the Mayor and Chief Executive be given delegated authority to approve the final Annual Budget (Plan) document for publication.

3. That the adoption of the Annual Budget (Plan) 2017/18 be confirmed as a significant decision within the parameters of the Local Government Act 2002 and that the Council be satisfied that all submissions had been considered and that there has been compliance with the decision-making and consultation requirements of the Act.

4. That the Chief Executive be delegated authority to authorise payments to Council-controlled organisations and other external organisations in accordance with their respective service level agreements.

1. ISSUE

To seek approval to the proposed contents of the final Annual Budget (Plan) 2017/18, so it can be adopted on 26 June 2017.

The information that was in the proposed Annual Budget supporting information has been amended to incorporate the decisions of the Committee of Council meeting on 24 May following consultation with the community.

2. BACKGROUND

The Council sought views from the community. Copies of the Consultation Document and supporting information were made available at the Civic Administration Building, City and community libraries and on the Council’s website. The Consultation Document was distributed to households with the Tribune.

Radio advertising, Square Circular articles, social media and eleven “Let’s talk” sessions also encouraged people to have their say and included information about the Annual Budget and how people could access the Consultation Document and supporting information and give feedback.

The public then had the option of making a submission and speaking to a Council Hearings Committee.

149 submissions were received representing 166 signatures and copies of all submissions were provided to elected members. A summary of the comments made in submissions during the formal consultation period is collated in the “Summary of Submissions” document previously circulated. 55 of the 149 submissions were presented by people or organisations at the seven hearings sessions. Notes of the hearing were provided to the Committee of Council meeting on 24 May 2017 along with officer advice in response to issues raised. Additional advice was provided through officer presentations at the meeting.

The Committee determined what changes it considered needed to be made to the provisional Annual Budget as a consequence of the submissions and the updated information provided by officers.

3. Draft of Final annual budget

A draft of the Annual Budget is circulated with this report. The draft includes the changes recommended by the Committee at its 24 May meeting which culminated in a budget which required an increase in the total rates of 2.9%. Following the meeting there has been some discussion about a number of issues where either the Committee’s intent was not clear or more up to date information is now available. These are addressed below:

3.1 Fitzherbert Park upgrade

The Committee’s resolution was that $175,663.58 be allocated as the Council’s share of the cost upgrading Fitzherbert Park comprising $134,655.68 for grass practice facilities and nets; $14,397.50 for scorers, officials and press box; and $6,600 for upgrading the Bruce Turner pavilion. We understand the $20,000 difference between the total and the components listed was intended to represent the Council’s share of the cost of the sightscreens.

As the assets created will be owned by the Council the draft budget includes a capital programme (ID 1342) for the total cost of the four elements mentioned above ($265,854) with a contribution of $90,190 from Manawatu Cricket Association and the balance of $175,664 funded by the Council.

3.2 Provision for a dog park (socialisation area)

Council staff had recommended that $99,000 be transferred from the programme for development of Linklater Reserve (ID 587) to a new programme (ID 1100). The Committee resolved that $33,000 would be transferred. Subsequently staff have been requested to include a further $66,000 in the Waitoetoe Park programme to enable the matter to be considered again. The draft of the final Budget therefore includes a total of $99,000 for this programme (ID 1100).

3.3 Support for Community Events

There is a proposal to increase the event support budget, without impacting the total rates requirement for 2017/18.

Budget adjustments are required to provide a coordinated and consistent approach to meeting the community’s events expectations of Council; and facilitate Council’s internal events management and support processes.

Since the meeting staff have worked to see how an increased level of service can be accommodated without impacting further on the rates requirement. To accommodate this, the draft of the final Annual Budget includes an increased budget for event coordination and management by reallocating priorities in various libraries and community services budgets as well as assuming increased regulatory building and planning revenue of $40,000 and reduced costs of $14,000 in other regulatory activities.

4. NEXT STEPS

Any changes made at the meeting will be incorporated in the final version to be adopted by the Council at its normal monthly meeting on 26 June 2017.

After the Council adopts the final Annual Budget all submitters will receive a personalised letter outlining the Council’s response to the points raised in their submissions.

Attachments

Draft of Annual Budget 2017/18 (dated 7 June 2017) ⇩

Steve Paterson

Strategy Manager Finance

Grant Smith (Chairperson)
Tangi Utikere (Deputy Chairperson)
Brent Barrett	Leonie Hapeta
Susan Baty	Jim Jefferies
Rachel Bowen	Lorna Johnson
Adrian Broad	Duncan McCann
Gabrielle Bundy-Cooke	Karen Naylor
Vaughan Dennison	Bruno Petrenas
Lew Findlay QSM	Aleisha Rutherford