Agenda of Finance and Performance Committee

PALMERSTON NORTH CITY COUNCIL

Finance and Performance Committee MEETING

19 June 2017

Order of Business

(NOTE: The commencement time for this meeting coincides with the commencement time for the Committee of Council meeting. The format for the meeting will be that the Committee of Council meeting will open, take apologies and adjourn immediately to allow Finance and Performance Committee to consider its business. At the conclusion of the Finance and Performance Committee 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 Finance and Performance Committee meeting of 15 May 2017 Part I Public be confirmed as a true and correct record.”

5. Palmerston North Airport Ltd - Final Statement of Intent for 2017/18 Page 11

Memorandum, dated 1 June 2017 from the Strategy Manager Finance, Steve Paterson.

6. Ashhurst Domain Riverbank Erosion - Update Page 37

Memorandum, dated 8 June 2017 from the General Manager - City Networks, Ray Swadel.

7. Options for Enhanced Recycling and Waste Management Services Page 43

Memorandum, dated 2 June 2017 from the Water & Waste Services Manager, Robert van Bentum, the Rubbish and Recycling Engineer, Natasha Hickmott and the Behaviour Change & Education Co-ordinator, Samantha Battman.

8. Conference Opportunity - Social Enterprise World Forum 2017 Page 71

Memorandum, dated 1 June 2017 from the Committee Administrator, Carly Chang.

9. Conference Opportunity - RMLA Conference Page 75

Memorandum, dated 13 June 2017 from the Committee Administrator, Carly Chang.

10. Committee Work Schedule - June 2017 Page 81

11. 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
12.	Minutes of the Finance and Performance Committee meeting - Part II Confidential - 15 May 2017	For the reasons setout in the Finance and Performance Committee minutes of 15 May 2017, held in public present.
13.	Papaioea Place Community Housing Redevelopment Proposals	Third Party Commercial	s7(2)(b)(ii)

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.

Parks & Property Manager (John Brenkley), 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

Minutes of the Finance and Performance Committee Meeting Part I Public, held in the Convention Centre, 354 Main Street, Palmerston North on 15 May 2017, commencing at 9.01am.

Members

Present:

Councillors Susan Baty (in the Chair), Brent Barrett, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Apologies:

The Mayor (Grant Smith) (for lateness), Councillors Rachel Bowen (for lateness), Lew Findlay and Karen Naylor.

The Mayor (Grant Smith) entered the meeting at 9.21am at the conclusion of clause 34. He was not present for clauses 31 to 34 inclusive.

Councillor Rachel Bowen entered the meeting at 9.33am during consideration of clause 35. She was not present for clauses 31 to 34 inclusive.

31-17

Apologies

Moved Susan Baty, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

32-17

Confirmation of Minutes

Moved Gabrielle Bundy-Cooke, seconded Bruno Petrenas.

The COMMITTEE RESOLVED

1. That the minutes of the Finance and Performance Committee meeting of 19 April 2017 Part I Public be confirmed as a true and correct record.

33-17

Fees & Charges - Confirmation Following Public Consultation

Memorandum, dated 24 April 2017 from the Strategy Manager Finance, Steve Paterson.

Moved Aleisha Rutherford, seconded Jim Jefferies.

The COMMITTEE RECOMMENDS

1. That the fees and charges for Planning & Miscellaneous Services, as scheduled in Attachments A and B of the report dated 24 April 2017 titled “Fees & Charges - Confirmation Following Public Consultation”, be approved, effective from 1 July 2017.

2. That the fees and charges for Trade Waste Services, as scheduled in Attachment C, of the report dated 24 April 2017 titled “Fees & Charges - Confirmation Following Public Consultation”, be approved, effective from 1 July 2017.

3. That a Waste Collector’s Licence Fee of $500 including GST be approved, effective from 1 July 2017.

34-17

Electricity Generated from Council Sites

Memorandum, dated 7 April 2017 from the Business Systems Administrator, Eva Johnston.

Moved Leonie Hapeta, seconded Jim Jefferies.

The COMMITTEE RECOMMENDS

1. That the report titled “Electricity Generated from Council Sites” which shows a breakdown of Council generated energy for the 2014/15 to 2016/17 years and the Palmerston North LED Streetlighting Upgrade dated 7 April 2017 be received.

The Mayor (Grant Smith) entered the meeting at 9.21am

35-17

Transfer of Assets to Fire & Emergency New Zealand

Memorandum, dated 3 May 2017 from the Head of Emergency Management, Stewart Davies.

Councillor Rachel Bowen entered the meeting at 9.33am.

Moved Duncan McCann, seconded Leonie Hapeta.

The COMMITTEE RECOMMENDS

1. That the Finance & Performance Committee approves the transfer of fire appliance registration number BHH 179 to Fire and Emergency New Zealand on the 1^st July 2017 at no cost.

36-17

Conference Opportunity - Economic Development Agencies of New Zealand Annual Conference

Memorandum, dated 1 May 2017 from the Governance & Support Team Leader, Kyle Whitfield.

Moved Grant Smith, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the Committee approve the attendance of up to two elected members to attend, with expenses paid, to ‘Annual Conference’ by Economic Development Agencies of New Zealand being held in Wellington on 31 August and 1 September 2017.

2. That registrations of interest be invited from elected members wishing to attend, with expenses paid, and advise the Governance and Support Team Leader, Kyle Whitfield, by 12 noon Friday 19 May 2017.

37-17

Committee Work Schedule - Deletion of Committee Resolution

Memorandum, dated 20 April 2017 from the Governance & Support Team Leader, Kyle Whitfield.

Moved Aleisha Rutherford, seconded Jim Jefferies.

The COMMITTEE RESOLVED

1. That line 3 entitled as “Footpath Maintenance – Finance and Monitoring’ of the Committee Work Schedule be revoked.

38-17

Committee Work Schedule - May 2017

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE REESOLVED

1. That the Finance and Performance Committee receive its Work Schedule dated May 2017.

Exclusion of Public

39-17

Recommendation to Exclude Public

Moved Susan Baty, seconded Jim Jefferies.

The COMMITTEE RESOLVED

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

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
12.	Award of Contract 3458 - Road Maintenance, Resurfacing and Rehabilitation 2017-2021	Third Party Commercial	s7(2)(b)(ii)

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

Chief Executive (Paddy Clifford), 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.

Roading Manager (Jon Schwass) because of his knowledge and ability to assist the meeting in speaking to his report and answering questions, noting that such officer will be present at the meeting only for the item that relate to their respective report.

The public part of the meeting finished at 9.39am

Confirmed 19 June 2017

Chairperson

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 19 June 2017

TITLE: Ashhurst Domain Riverbank Erosion - Update

DATE: 6 August 2017

AUTHOR/S: Ray Swadel, General Manager - City Networks, City Networks

RECOMMENDATION(S) TO Council

1. That the Committee notes:

a. Horizions Regional Council has committed to undertake immediate works to redirect the active river channel away from the Ashhurst Domain bank, subject to Palmerston North City Council confirming a contribution of up to $70k for these works and applying for any associated consents.

b. The General Manager – City Networks provided confirmations referred to in recommendation (a) above, on a “Without Prejudice” basis.

c. Upon receipt of a response to Palmerston North City Council’s submission to the Horizons Proposed Annual Plan 2017/18, that further work be undertaken to prepare a tri-party agreement between Horizons Regional Council, Palmerston North City Council and the New Zealand Transport Agency for permanent rock lining protection works along the Ashhurst Domain riverbank.

1. ISSUE

1.1 The right bank of the Manawatu River, fronting the Ashhurst Domain, has been subject to erosion following the major June 2015 flood event. Erosion has continued even during modest river flows and this matter was reported to the Committee at its 19 April 2017 meeting. Reference the General Manager – City Networks report dated 10 April 2017 and titled “Ashhurst Domain River Erosion”.

1.2 Arising from that report the Committee noted

1.2.1 That any bank protection works fronting the Ashhurst Domain fall outside of the Lower Manawatu River Management Scheme and therefore require major funding from either the Palmerston North City Council and/or the New Zealand Transport Agency.

1.2.2 That riverbank protection design options and costings fronting the Ashhurst Domain and interfacing with the State Highway bridge are being reviewed, in order to prepare a proposed tri-party agreement between Horizons Regional Council, Palmerston North City Council and the New Zealand Transport Agency as to responsibilities and obligations for these protection works, for consideration at the Committee’s June 2017 meeting.

1.3 Accordingly this report provides an update regarding progressing towards a tri-party agreement referred to in Clause 1.2.2 above.

2. BACKGROUND

2.1 Horizons stated position in regard to the erosion of the Ashhurst Domain is as follows:

2.1.1 Bank protection works fall outside of their river management scheme boundaries and therefore under Horizons current policy provisions there is an expectation that those benefitting from any such works will primarily fund the construction costs.

2.1.2 Assets associated with bank protection along the Ashhurst Domain bank will not be under the ownership of Horizons, hence they will not be responsible for any on-going maintenance or renewal works.

2.1.3 Horizons will provide technical advice and support for the design and contract management of any bank protection works.

2.1.4 Furthermore they will also contribute 30% to the capital works costs, capped at $80,000.

2.1.5 Horizons have scoped out two basic options, namely the use of willow tree groynes anchored with railway irons and wire rope ties versus rip rap rock lining of the exposed bank. They recommend proceeding with the rock lining option as this represents the most robust option, but understand the difficulties this may pose regarding funding.

2.2 Since consideration of the previous report there have been two further discussions of note with Horizons.

2.3 Firstly Council submitted to Horizons Proposed Annual Plan 2017/18. Mayor Grant Smith presented this submission on Tuesday 9 May 2017 with five City Councillors also in attendance. The submission made the following points:

2.3.1 Council sought to establish a tri-party agreement with Horizons and the New Zealand Transport Agency to fund bank protection works.

2.3.2 Council was of a view that the rock lining option should be pursued and then this should fall under the ownership of Horizons and be incorporated into an extended Lower Manawatu River Management Scheme, linking with the Pohangina River Scheme. In doing so it is acknowledged that Horizons will need to introduce an appropriate target rate to fund this extension to the Scheme.

2.3.3 Council believed that Horizons, as the authority responsible for river management, should make a meaningful contribution to the bank protection works. The stated position of contributing up to a cap of $80,000 for the initially estimated $800,000 rock lining option is not considered an adequate contribution. Council considers, along with the other beneficiaries (PNCC, NZTA and possibly Powerco) Horizons should contribute an equal share to the capital protection works.

2.3.4 Council called for immediate action to manage the active river channel to arrest (at least temporarily) the rate of erosion that has been occurring recently following cyclones Debbie and Cook.

2.4 Secondly, local resident Mr Harvey Jones called a meeting of adjoining landowners and some individuals with a direct association in preservation of the Ashhurst Domain native bush to raise their concerns and offer solutions with officials from both Councils. That meeting occurred on 10 May 2017 with the Mayor and General Manager – City Networks attending on behalf of Council, along with the Group Manager River Management and the Media & Communications Manager from Horizons.

2.5 The nine locals in attendance shared their views in an open and frank session. The outcome of which was that Horizons agreed to take some immediate river action of a temporary nature aimed at arresting exposure of the Ashhurst Domain bank to further high river flows leading to erosion of soils and loss of native bush.

2.6 Those works would see heavy machinery relocate the active channel away from the Ashhurst Domain bank and possibly construction of a few stub groynes along the base of that bank. Estimated cost expected to run as high as $100k.

2.7 Prior to commencing these works Horizons sought two confirmations:

2.7.1 Acknowledging that their contribution of 30% of the capital cost to a maximum of $80k remains on the table for both these initial works and a permanent protection such as the rock lining. Accordingly they sought confirmation that Council would contribute up to $70k for the initial works that could run to $100k in total.

2.7.2 Furthermore because these works fall outside of their Schemes, they sought Council’s confirmation to apply for any associated consenting of these works.

2.8 In consultation with the Mayor and Chief Executive and in the interests of not incurring any further delay in mobilising machinery to undertake the initial works, the General Manager – City Networks confirmed Council’s commitment to funding up to $70k of the cost to undertake the work and to apply for any necessary consents. This offer is subject to being on a “Without Prejudice” basis, noting that Council still wishes to debate further Horizons policy position regarding the Ashhurst Domain bank erosion in terms of its exclusion from the current Schemes, funding contributions and ownership of assets.

2.9 Machinery was on site the week of 29 May 2017 and at the time of writing this report the active channel had been relocated midway between the right and left banks.

2.10 Horizons have advised that they do not intend to proceed with the stub groyne work at this stage, which only would have been a temporary measure before any permanent rock lining protection.

2.11 NZTA have indicated verbally they will contribute to the permanent rock lining works, however their share is still dependent upon where Horizons and PNCC conclude their funding positions.

2.12 Powerco have advised they do not see themselves as a beneficiary to the rock lining works. While they have a power pole structure on the right bank it is not under any immediate danger. If however further erosion was to become of concern to the structure, they have advised the poles would be relocated further away from the bank increasing the span for the wiring that crosses the river. This would be at a much reduced cost of contributing to the rock lining work.

3. DISCUSSION

3.1 Focus since this matter was last reported to the Committee has been on making the submission to Horizons Proposed Annual Plan 2017/18 and advancing the initial remedial works following the 10 May 2017 meeting with locals.

3.2 Accordingly no further progress has been made on establishing a tri-party agreement. From Council’s perspective this is very dependent upon Horizons being prepared to change their policy position over the Ashhurst Domain bank forming part of their Lower Manawatu River Management Scheme.

3.3 In this regard Council awaits a response to its submission, which is expected prior to 30 June 2017.

4. Next actions

4.1 Seek to get a change in Horizons policy on inclusion of the Ashhurst Domain bank protection into the Lower Manawatu River Management Scheme and have this reflected in a tri-party agreement between Horizons, PNCC and NZTA, such that rock lining bank protection works are capitally funded equally between those parties and thereafter are vested as a Horizons asset.

Attachments

Nil

Ray Swadel

General Manager - City Networks

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 19 June 2017

TITLE: Options for Enhanced Recycling and Waste Management Services

DATE: 2 June 2017

AUTHOR/S: Robert van Bentum, Water & Waste Services Manager, City Networks

Natasha Hickmott, Rubbish and Recycling Engineer, City Networks

Samantha Battman, Behaviour Change & Education Co-ordinator, City Networks

RECOMMENDATION(S) TO Council

1. That the Committee receive the report on Options for Enhanced Recycling and Waste Management Services

2. That the Committee note the range of initiatives already implemented and planned to be funded from the Waste Minimisation operational budget for 2017-18 to improve awareness, change behaviour and promote waste reduction.

3. That the range of Council approved official rubbish bags be extended to include a smaller 40 litre bag with a maximum retail price of $1.80 including GST per bag.

4. That the Committee note that Officers will look for opportunities during 2017/18 where budget savings may allow to implement some or all of the initiatives in clauses 4.2, 4.3 and 4.5 of this report.

5. That the Committee confirms that Level 1 or 2 is the preferred package of enhanced services which Officers should develop further into costed proposals for consideration through the 2018-28 LTP prioritisation process.

1. ISSUE

1.1 At the April 2017 meeting of the Finance and Performance Committee, Officers presented a range of options to enhance waste and recycling services offered by Council as part of responding to the issue of illegal dumping occurring across the city. The Committee requested Officers provide more detail on each of a number of specific services along with indicative costs in order to approve the level of additional funding for the 2017-18 year and indicate the direction for Officers when planning enhanced services for the proposed 2018-28 LTP process.

1.2 As part of a new focus on waste minimisation, Officers have been advancing a broad range of initiatives with the support of the dedicated Behaviour Change and Education Coordinator. This memo outlines the scope of work advanced during 2016-17 and those proposed to be completed as part of the 2017-18 year under existing budgets.

1.3 The memorandum provides additional information as requested by the Committee on several specific initiatives. In addition two options for enhanced levels of service in the rubbish and recycling activity area are scoped to seek feedback from the Committee on areas for further investigation prior to consideration as part of the 2018-28 LTP process.

2. BACKGROUND to waste and recycling initiatives

2.1 Council funding of $174,000 under Operational programme 374 – Waste Minimisation – Funding to Assist Activities has been provided during each of the last 3 financial years to support waste minimisation by facilitating a range of awareness, education, promotion, research and investigation activities.

2.2 Up until the current 2016-17 year the budget was largely spent on supporting third party organisations to deliver education and recycling promotion activities in schools as well as employing a contractor to conduct study visits and classroom sessions with school children at the Awapuni Materials Recovery Facility (MRF). Following concern that much of this spending was not leading to any change in behaviour within the schools and among the school communities, Officers commissioned a review of the programme to identify how best to achieve wider behaviour change in the community. This identified a need to focus on a wider range of initiatives to achieve meaningful behaviour change beyond primary school initiatives.

2.3 Following the appointment of a fixed term Behaviour Change and Education Coordinator, a comprehensive range of initiatives both within Council and the community has been initiated during 2016-17. Already Officers are able to identify a number of positive outcomes including, cost savings and efficiency benefits to Council, increased waste diversion, improved awareness of Council services and improved alignment of Council activities with waste minimisation objectives. A summary of initiatives undertaken to date is provided in Table 1.

Table 1: 2016-2017 Initiatives

Information and Awareness

· Developed new recycling and glass leaflets with consistent messaging

· Developed new interactive A to Z tool for recycling to replace text based information on website

· Developed new electronic form for residents to report incidents of illegal dumping

· Provided bi-monthly articles highlighting behaviour change issues

Recycling and Diversion Services

· Eliminated mixed glass commercial services and replaced with colour sorted

· Expanded commercial food waste collection

Data and Information Collection

· Completed kerbside audits to gather information on nature and extent of contamination

· Completed event recycling trials of 8 events to quantify waste type, volumes and diversion options

· Completed waste audit of CAB to inform changes to contracts and waste services to maximise diversion

New Service Offerings

· Established new food and compostables diversion stream from Massey University

· Trialled and introduced permanent household battery recycling initiatives

· Advanced negotiations on the roll-out of 20 reverse vending machines across multiple locations in the city

Council Policy Initiatives

· Scoped changes to Bylaw to implement more effective actions against contamination

· Scoped changes to event recycling service requirements for adoption by events

3. focus for waste minimisation activities in 2017-18

3.1 As part of the new approach Officers have commitments to continue the implementation of a number of activities and initiate a number of new activities in the waste minimisation area. These will be funded from the Rubbish and Recycling Activity consultancy budget as well as from Operational Programme 374. The commitments for 2017-18 are summarised in Table 2 below.

Table 2: Waste Minimisation Focus 2017-2018

Operational Activity	Funding Commitment
Waste Assessment to Inform Update of Waste Minimisation Plan	$25,000
Continuation of current support funding for Charity Shops	$10,000
Publicity costs for RFID Programme – bin tag rollout	$10,000
Trial of Illegal Dumping Prosecution – 3 months	$30,000
Development of Virtual Video Tour of the MRF	$5,000
Total Existing Commitment	$80,000

3.2 Operational Programme 374 provides for the funding of the fixed term Behaviour Change and Education role as well as on-going development and implementation of waste minimisation interventions. Specific initiatives committed and planned for 2017-18 are outlined in Table 3 below.

Table 3: 2017-2018 Initiatives

Information and Awareness

· Review and expand website information

· Development of commercial website presence

· Work with refugee communities to develop and roll-out both video and printed recycling material in their own language

· Development and launch of a community champions recycling competition that provides recognition of good recycling practices

· Provision of reusable shopping bags for residents at a subsidised price

· Further awareness articles highlighting behaviour change issues

· Development and roll out of educational materials to be provided to schools

Recycling and Diversion Services

· Development of alternative rated and commercial large bin service offering

· Development of publicity material to improve understanding of the commercial services available in the CBD

Data and Information Collection

· Further kerbside audits to inform new fast track response to contamination

· Development of event recycling guidance material, equipment and publicity material ahead of roll-out

· Extend work with-in Council to focus on reducing paper use and waste

New Service Offerings

· Establish recycling services at Hospital and Plaza

· Investigate and possible trial of new services e.g. polystyrene

· Implement reverse vending machine roll-out

· Review of recycling services offered to schools

Council Policy Initiatives

· Support adoption of range of Bylaw amendments

4. Additional Council Requests for services

4.1 The Finance and Performance Committee at its April 2017 meeting requested Officers investigate and scope additional services and activities to address the problem of illegal dumping following a submission by Methodist Goodwill. The specific services include:

· Publicity Campaign for Illegal Dumping

· Prosecution of Illegal Dumping

· Mattress Recycling

· Additional Funding Support for Charity Shop Waste Disposal

· Introduction of smaller 40 litre rubbish bags

4.2 Publicity Campaign for Illegal Dumping: Officers have engaged an external consultant to develop a specific marketing strategy targeted at illegal dumping. The strategy will include the options and accessibility of the services available in the City to dispose of unwanted items. The development of the marketing strategy includes the provision of sample materials and a rough cost estimate for implementation. Officers will provide the sample materials and costs for presentation at the Finance and Performance meeting. An indicative budget for $25,000 has been provided for implementation of the plan and $15,000 for development of the materials.

4.3 Prosecution of Illegal Dumping: Officers are in the process of agreeing the scope and price for engaging Manawatu District Council to provide investigation and prosecution expertise and services targeting illegal dumping. The proposal sort is for a trial period of 3 months, with a view to clarifying the cost and scope for a long term service level agreement. Initial indications are that this will cost approximately $20,000 for a 3 month term or $80,000 per annum.

4.4 Mattress Recycling: A nationwide mattress recycling scheme is proposed for implementation in 2018-19. The funding of this scheme has yet to be determined, however Council has the option of trialling the scheme locally. While details of the trial have yet to be determined costs for similar initiatives elsewhere in New Zealand range from $20 - $30 per mattress. A budget of $30,000 is suggested to allow for approximately 1,000 mattresses to be recycled per year at $30/mattress. Officers have held initial discussions with representatives from 3R for a 12 month recycling trial which would provide for:

· Multiple Collection Point Options (e.g. Awapuni Resource Recovery/Pop Up Sites/User Pays Collections)

· Provide for screening of all mattresses with only those which are unsuitable for re-use being recycled

· Storage & Dismantling (e.g. Storage at Awpauni with Dismantling undertaken by corrections)

· Recovering of Wood, Foam, Coconut Coir and Metal and balance materials such as fabric being landfilled.

4.5 Enhanced Support for Charity Shop Waste Disposal: Councillors at the April 2017 Finance and Performance Committee meeting proposed increasing the subsidy paid by Council for Charity shop waste disposal costs from the current $10,000 to $20,000 per annum.

4.6 Smaller (40l) Rubbish Bag Option: A number of Councils provide a smaller rubbish bag option to reduce the cost of rubbish disposal to small households. Uptake of the service varies ranging from 10% to 15% of total bag sales. The service would lower rubbish disposal costs for households that actively recycle or generate low volumes of residual waste. As the rubbish activity is full cost recovery there is no direct rating impact, however there is a risk of revenue erosion if significant numbers of current users switch from a larger bag to the smaller bag option. Officers consider the risk to revenue is low. Council retains the option to re-price the service if costs begin to exceed revenue. Given the current price for the larger bag of $2.50 incl. GST, the proposed price for the smaller bag would be $1.80 incl. GST. The lead in time for implementation of this option would be a minimum of three months to provide for bag manufacture and delivery as well as messaging and publicity. Some operational expenditure would be required to fund messaging and publicity around introduction of the smaller bags.

4.7 The funding required to implement all the initiatives outlined above has not been provided for in the 2017-18 financial year. Officers have estimated the costs that would be required to fully fund the initiatives discussed above and these are summarised in Table 4 below.

Table 4: Additional Service Requests 2017-2018

ADDITIONAL SERVICES	Estimated Cost per annum
1. Publicity Campaign for Illegal Dumping	$25,000
2. Prosecution of Illegal Dumping	$80,000
3. Mattress Recycling	$30,000
4. Enhanced Support for Charity Shop Waste Disposal	$10,000
5. Smaller Rubbish Bag Option	$0
Total Funding Required	$145,000

4.8 There is currently no provision within the 2017-18 budgets to fund these initiatives except for the smaller rubbish bag which will incur minimal costs to implement. Officers propose that the mattress recycling be held off until 2018-19 and considered as part of the LTP process. In respect of items 1 and 2, Officers can only commit to considering the opportunity of implementing the initiatives in part or in full to the extent that savings may be identified later in the financial year.

1. Campaign for illegal dumping $25,000

2. Enhanced support for charity shops $10,000

5. Levels of Service initiatives for LTP 2018-28

5.1 Council Officers have previously highlighted during the Level of Service review a range of enhanced services which they recommend are considered as part of the 2018-28 Long Term Plan deliberations. The services have been grouped into 2 levels as follows. Note that it is intended that Level 2 will include implementation and delivery of the services provided for in Level 1.

6. Level 1 – Enhanced services

6.1 Council Officers have identified seven Level of Service enhancements to current services to improve waste diversion in the City as well as mitigate the issues of illegal dumping. Potential enhancements are outlined in general terms along with an estimate of the likely capital and annual operational costs in Table 5 below. The estimates are very preliminary and will need to be confirmed through further scoping and investigation ahead of a final decision through the 2018-28 LTP process.

Table 5: Level 1 Enhanced Services for LTP 2018-28 Consideration

Level 1 – Initiatives	Capital Cost	Operating Cost / annum
1. Partially rated rubbish bag collection service	$0	$500,000
2. Fully rate all commercial and CBD properties and deliver tailored recycling services at common bin locations (supported by additional rates revenue)	$300,000	$100,000
3. Fully rate all multi-dwelling residential facilities and deliver tailored recycling services at common bin locations (supported by additional rates revenue)	$100,000	$20,000
4. Establish separate commercial rate for weekly recycling services to recover additional costs	$0	$0
5. Implement mattress recycling	$0	$30,000
6. Employ dedicated investigations staff to follow-up and prosecute illegal dumping	$0	$100,000
7. Targeted reduction in E-waste charges for E-waste recycling particularly TVs and computer monitors to encourage greater service use	$0	$30,000
	$400,000	$780,000

6.2 Partially Rated Rubbish Bag Collection Services: Council Officers have previously highlighted that the issues of rubbish and recycling are closely intertwined so that addressing both issues require a multi-pronged approach. Officers have previously recommended the introduction of a targeted rate to cover the collection costs associated with the rubbish kerbside service, with the balance of funding from rubbish bag sales covering rubbish disposal costs. Officers expect that this model would reduce the bag price from $2.50 to around $1.40. This will require an increase in the public rubbish and recycling targeted rate of approximately $20 per rateable property.

For current rubbish bag users, the increase in rates costs will be fully offset by equivalent or greater reductions in the cost of purchasing rubbish bags as shown in Table 6 below.

Table 6: Summary of Rated Rubbish Bag Options

Number of Bags Per year

Current Model

Partially Rated Model

(Bag placed out per week)

Annual Costs: $130

Bags: 52 x $2.50

Annual Costs: $92.80

Bags: 52 x $1.40

Rate:$20

(Bag placed out per Fortnight)

Annual Costs: $65

Bags: 26 x $2.50

Annual Costs: $56.40

Bags: 26 x $1.40

Rate: $20

This policy change will benefit households on lower incomes, tenanted properties, transient residents (e.g. students) and any residents who use Council purchased rubbish bags as their preferred rubbish service.

Officers expect the proposed additional rate of $20 per property for the collection costs associated with the kerbside rubbish service may be partially offset by operational savings due to reduced:

· Contamination of the recycling kerbside service

· Decreased volumes of household litter in street and parks litter bins

· Decreased incidence of illegal dumping of household waste

6.3 Fully Rate Commercial & CBD Properties: The kerbside recycling service currently provided to residential properties is available as an optional service for commercial and Central Business District properties. Currently approximately 30% of properties in the CBD have elected to receive the kerbside service. The majority of businesses do not participate for a variety of reasons including:

· Property owners do not wish to pay for the kerbside recycling service used by their tenants

· The current model (240L wheelie bin and 45L glass crate) offered to the residential service is not always suitable for large commercial properties

As part of introducing universal rating for recycling Officers recommend investigating alternative models, such as larger containers and/or common bins for multi tenanted properties. The additional rate would only affect commercial and CBD properties not currently rated for the kerbside recycling services.

6.4 Fully Rate Multi-Dwelling Residential Properties: The kerbside recycling service currently provided to residential properties is not provided to all multi-dwelling residential properties (e/g rest homes, apartment blocks etc.). The current residential model provided (240L wheelie bin and 45L glass crate) is not suitable for these types of properties. Officers recommend introducing alternatives models, such as larger containers and/or common bins for multi-dwelling properties. The additional rate would only affect multi-dwelling properties not currently rated for the kerbside recycling services.

6.5 Establish Separate CBD Recycling Rate: Properties in the CBD that opt-in to the rated kerbside service receive a higher level of service than the remainder of the City. Officers recommend that a separate rate for properties in the CBD be established to provide the weekly kerbside recycling service. The new rate would only apply to properties in the CBD receiving a weekly service. A charge in the vicinity of $200/annum is likely to reflect the additional collection and processing costs.

6.6 Implement Mattress Recycling: As described in section 4.4 of this memo. Officers expect that the targeted rate increase required to fund the $30,000 required for the scheme would be an additional $1 on the targeted public rubbish and recycling rate.

6.7 Illegal Dumping Prosecution: As described in section 4.3 of this memo. Officers expect that the targeted rate increase to fund the estimated $80,000 /annum cost would be just over $2 on the public rubbish and recycling rate.

6.8 E-Waste Subsidy: Ferguson Street Recycling Centre accepts e-waste; this service is provided in partnership with E-Cycle (an e-waste recycler based in Auckland). The service is offered on a full user pays basis with various charges depending on the item being recycled. A total of 2,729 e-waste items were presented at Ferguson Street for recycling in 2015-16.

Officers recommend a range of subsidies be considered for a majority of e-waste items accepted at Ferguson Street, with the largest subsidy applying to TV’s and Computer Monitors. Officers expect that the public rubbish and recycling targeted rate would need to increase by around $1 per property to provide a subsidy contribution of $30,000/annum and by a larger amount for greater levels of subsidy.

7. level 2 - Enhanced Services

7.1 Council Officers have identified two further Level of Service changes to current services to further enhance waste diversion in the City. Potential enhancements are outlined in general terms along with an estimate of the likely capital and annual operational costs in Table 7 below. The estimates are very preliminary and will need to be confirmed following further scoping and investigation.

Table 7: Level 1 Enhanced Services for LTP 2018-28 Consideration

Level 2 – Initiatives	Capital Cost	Operating Cost / annum
Rated Kerbside Food Waste Collection Service (supported by additional rates revenue and reduction in rubbish collection service from weekly to fortnightly)	$1,500,000	$1,000,000
Provision of Northern Green Waste Drop Off Site (supported by additional gate charges revenue)	$105,000	$440,000
	$1,605,000	$1,440,000

7.2 Rated Food Waste Collection Service: This option provides for a weekly kerbside food waste collection service. Officers consider an organics collections should focus on food waste over green waste due to the following:

· Council would provide for a green waste service through the provision of drop off facilities at Awapuni, Ashhurst and a possible additional northern drop-off site proposed in clause 7.3 of this memo

· There are a range of private service providers who collect and dispose of green waste (e.g. Private garden and lawnmowing contractors). Most of this green waste is deposited at Awapuni

· It is likely that an introduction of a kerbside green waste collection would divert material already being dropped off at Awapuni

· Not all households produce green waste, whereas all properties produce food waste

· Production of green waste is seasonal and drops away to very low levels in winter, whereas food waste is typically steady year round

· Not all properties want to compost their food waste at home particularly cooked food, meat and dairy products

· It is likely that a kerbside food waste collection service will result in the kerbside rubbish service being reduced from weekly to fortnightly thus partly offsetting the additional collection costs

As listed in Table 2, Officers are currently undertaking a city wide waste assessment. Depending of the outcomes of this work, Officers will be considering the most cost effective strategies for increasing the diversion of waste from landfill. Based on waste assessments completed by other councils it is expected that food waste will form a large proportion of the total residual waste going to landfill from residential properties.

Officers recommend a food waste collection trial be undertaken to better scope the costs and requirements of a kerbside service prior to a full city wide roll out. Officers recommend the trial is included in year one of the 2018-28 LTP funding round by providing for an operational cost of $150,000 per annum. Officers expect that the targeted rate increase required to fund the service would be around $60 per property for a City wide scheme.

7.3 New Northern Greenwaste Drop-Off Site: The provision of an additional greenwaste and recyclables drop-oof site at the northern end of the City is considered a cost effective option to enhance waste diversion. The service would better meet the needs of the growing population in the north of the City. The facility would add to existing green waste and recycling drop off services already provided at Awapuni. Officers recommend that the closure of the Ashhurst Transfer Station is considered at part of implementing this additional service option to limit the additional operational cost of implementing this service. Officers estimate that the rubbish and recycling targeted rate would need to increase by around $20 per property to fund this initiative not allowing for any cost savings in the event the Ashhurst Transfer Station was closed.

Attachments

1.	Illegal Dumping Publicity Campaign Strategy ⇩
2.	Illegal Dumping Publicity Campaign Concepts ⇩

Robert van Bentum

Water & Waste Services Manager

Natasha Hickmott

Rubbish and Recycling Engineer

Samantha Battman

Behaviour Change & Education Co-ordinator

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

1.	Covering letter from PNAL ⇩
2.	Statement of Intent 2017-18 - Final ⇩