Agenda of Council - 25 June 2018

PALMERSTON NORTH CITY COUNCIL

Council MEETING

25 June 2018

Order of Business

NOTE: The Council meeting coincides with the extraordinary meeting of the Arts Culture and Heritage Committee meeting. The format for the meeting will be as follows:

- Arts, Culture and Heritage Committee will open and adjourn immediately to resume following Council.

- Council will open, conduct its business and then close.

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. Declarations of Interest (if any)

Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

4. Tribute - Patrick James Kelly Page 9

5. Presentation - Queen's Birthday Honours Page 11

6. Confirmation of Minutes Page 13

“That the minutes of the ordinary meeting of 28 May 2018 Part I Public be confirmed as a true and correct record.”

Reports

7. Adoption of the 10 Year Plan (Long-term Plan) 2018-28, including the Financial and Infrastructure Strategies Page 31

Memorandum, dated 7 June 2018 from the Head of Community Planning, Andrew Boyle.

8. Setting of Rates for 2018/19 Page 39

Memorandum, dated 15 June 2018 from the Strategy Manager Finance, Steve Paterson.

9. Adopting Amendments to the Treasury Policy and Resolutions to Authorise Borrowing Page 51

Memorandum, dated 15 June 2018 from the Strategy Manager Finance, Steve Paterson.

10. Consideration of support for remit proposals to the Local Government New Zealand AGM. Page 55

Memorandum, dated 30 May 2018 from the Strategy & Policy Manager, Julie Macdonald.

11. Review of Representation Arrangements Page 125

Memorandum, dated 7 June 2018 from the Legal Counsel, John Annabell.

12. Elected Member Expense Policy - Adoption Page 135

Memorandum, dated 12 June 2018 from the Finance Manager, Stuart McKinnon.

13. Council Work Schedule Page 143

Recommendations from Committee Meetings

14. Presentation of the Part I Public Committee of Council Recommendations from its 28 May 2018 Meeting Page 145

“That the Committees recommendations be adopted or otherwise dealt with.”

15. Presentation of the Part I Public Committee of Council Recommendations from its 11 June 2018 Meeting Page 151

“That the Committees recommendations be adopted or otherwise dealt with.”

16. Presentation of the Part I Public Community Development Committee Recommendations from its 6 June 2018 Meeting Page 155

“That the Committees recommendations be adopted or otherwise dealt with.”

17. Presentation of the Part I Public Sport and Recreation Committee Recommendations from its 6 June 2018 Meeting Page 157

“That the Committees recommendations be adopted or otherwise dealt with.”

18. Presentation of the Part I Public Planning and Strategy Committee Recommendations from its 6 June 2018 Meeting Page 159

“That the Committees recommendations be adopted or otherwise dealt with.”

19. Presentation of the Part I Public Finance and Performance Committee Recommendations from its 18 June 2018 Meeting Page 161

“That the Committees recommendations be adopted or otherwise dealt with.”

20. 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
21.	Minutes of the ordinary meeting - Part II Confidential - 28 May 2018	For the reasons setout in the ordinary minutes of 28 May 2018, held in public present.
22.	Rotation of Trustees on Council Controlled Organisations	Privacy	s7(2)(a)

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.

Chief Executive (Heather Shotter), 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), General Manager, Marketing and Communications (Sacha Haskell), and Communications Advisor (name) 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.

Acting Governance and Support Team Leader (Stuart McKinnon) and Committee Administrators (Penny Odell 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 Council Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 28 May 2018, commencing at 9.02am

Members

Present:

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

Apologies:

Councillor Gabrielle Bundy-Cooke.

71-18

Apologies

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That Council receive the apologies.

Clause 71-18 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

72-18

Confirmation of Minutes

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the minutes of the extraordinary meeting of 14 May 2018 Part I Public be confirmed as a true and correct record.

Clause 72-18 above was carried 15 votes to 0, the voting being as follows:

For:

Reports

73-18

Caccia Birch - Lagoon Embankment Upgrade

Memorandum, dated 9 May 2018 from the Parks & Property Manager, John Brenkley and the Senior Property Assets Officer, Jocelyn Broderick.

Moved Grant Smith, seconded Aleisha Rutherford.

RESOLVED

1. That Council receive this memorandum regarding upgrading the Hokowhitu Lagoon embankment.

2. That Council decide not to add a new capital works programme estimated at $90,000 for this upgrade and be presented for consideration as Council undertakes its final 2018 – 28 10 Year Plan deliberations.

Clause 73-18 above was carried 8 votes to 7, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Rachel Bowen, Adrian Broad, Lew Findlay QSM, Jim Jefferies, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Against:

Councillors Brent Barrett, Susan Baty, Vaughan Dennison, Leonie Hapeta, Lorna Johnson, Duncan McCann and Karen Naylor.

74-18

Options to Provide Additional Dog Waste Bags and Bins in City Public Spaces

Report, dated 17 April 2018 from the Parks & Property Manager, John Brenkley.

Moved Leonie Hapeta, seconded Duncan McCann.

RESOLVED

1. That Council include a new capital item in its final 2018 – 28 10 Year Plan deliberations to purchase and install 17 new bins are purchased to supplement the existing number bins along the walkway network at a cost of $25,500.

Clause 74-18 above was carried 15 votes to 0, the voting being as follows:

For:

75-18

Elected Member Development Policy and Changes to Delegation Manual

Memorandum, dated 27 April 2018 from the Deputy Mayor, Tangi Utikere.

Moved Vaughan Dennison, seconded Aleisha Rutherford.

RESOLVED

1. That the Elected Member Development Policy (attached as Councillor Development and Training Policy) be adopted, and come into effect on 1 July 2018.

2. That, with effect from 1 July 2018, a new clause 190 and heading be added to the Council’s Delegations Manual, as follows:

“Mayor, Deputy Mayor and Chairperson of the Finance and Performance Committee

190 With regard to an elected member conference and training opportunity:

190.1 The Mayor, acting conjointly with the Deputy Mayor or, if one of those is unavailable, then the other acting conjointly with the Chairperson of the Finance and Performance Committee, has delegated authority to decide whether any elected member or members should attend and, if so, whom.

190.2 This authority may be exercised only where a particular conference and training opportunity is available in New Zealand and the total cost of such opportunity for any elected member attending or participating does not exceed $2,000.00 GST exclusive for that member.

190.3 Any approval given and any recording and reporting must be in accordance with both the Council’s Elected Members’ Expenses Policy and with the Elected Member Development and Training Policy or, if either or both of those policies have been superseded, then with the replacement or equivalent policy or policies.”

Clause 75-18 above was carried 12 votes to 0, with 3 abstentions, the voting being as follows:

For:

Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

Abstained:

The Mayor (Grant Smith) and Councillors Susan Baty and Tangi Utikere.

76-18

Approval of Council Submission on the Local Electoral Matters Bill

Memorandum, dated 15 May 2018 from the Legal Counsel, John Annabell.

Moved Grant Smith, seconded Aleisha Rutherford.

RESOLVED

1. That the Council approve the attached submission on the Local Electoral Matters Bill and submit it to the Justice Committee of Parliament.

Clause 76-18 above was carried 15 votes to 0, the voting being as follows:

For:

77-18

Rescind 'Policy on the Appointment of Directors to Outside Organisations

Memorandum, dated 1 May 2018 from the Governance & Support Team Leader, Kyle Whitfield.

Moved Vaughan Dennison, seconded Susan Baty.

RESOLVED

1. That the policy entitled: ‘Policy on the Appointment of Directors to Outside Organisation’ is rescinded.

Clause 77-18 above was carried 15 votes to 0, the voting being as follows:

For:

78-18

Conference Opportunity - LGNZ Housing Symposium 2018

Memorandum, dated 14 May 2018 from the Committee Administrator, Penny Odell.

Moved Susan Baty, seconded Grant Smith.

RESOLVED

1. That Council approve the attendance of up to 16 elected members to attend, with expenses paid, the LGNZ Housing Symposium 2018 being held in Wellington on 28 June 2018.

2. That registrations of interest be invited from elected members wishing to attend, with expenses paid, and advise the Committee Administrator, Penny Odell, by 12 noon Friday 1 June 2018.

Clause 78-18 above was carried 15 votes to 0, the voting being as follows:

For:

79-18

Council Work Schedule

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the Council receive its Work Schedule dated May 2018.

Clause 79-18 above was carried 15 votes to 0, the voting being as follows:

For:

Recommendations from Committee Meetings

80-18	Planning and Strategy Committee Part I Public - 7 May 2018 Consideration was given to Planning and Strategy Committee recommendations as appended to these minutes.
	Moved Duncan McCann, seconded Aleisha Rutherford. RESOLVED 1. That clause 30-18 1a of the Committee's recommendations be adopted.
	Clause 80.1 above was carried 14 votes to 1, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere. Against: Councillor Vaughan Dennison.
	Moved Duncan McCann, seconded Aleisha Rutherford. 2. That the remainder of clause 30-18 of the Committee's recommendations be adopted.
	Clause 80.2 above was carried 15 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.
	Moved Duncan McCann, seconded Aleisha Rutherford. 3. That clause 32-18 of the Committee's recommendations be adopted.
	Clause 80.3 above was carried 15 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

81-18	Community Development Committee Part I Public - 7 May 2018 Consideration was given to Community Development Committee recommendations as appended to these minutes.
	Moved Aleisha Rutherford, seconded Rachel Bowen. RESOLVED 1. That clause 11-18.1 of the Committee's recommendations be adopted.
	Clause 81.1 above was carried 15 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.
	Moved Aleisha Rutherford, seconded Rachel Bowen. 2. That the remainder of the Committee's recommendations be adopted.
	Clause 81.2 above was carried 9 votes to 6, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Adrian Broad, Vaughan Dennison, Jim Jefferies, Duncan McCann, Aleisha Rutherford and Tangi Utikere. Against: Councillors Rachel Bowen, Lew Findlay QSM, Leonie Hapeta, Lorna Johnson, Karen Naylor and Bruno Petrenas.

82-18

Planning and Strategy Committee Part I Public - 4 December 2017

Consideration was given to Planning and Strategy Committee recommendations as appended to these minutes.

Moved Duncan McCann, seconded Aleisha Rutherford.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 82-18 above was carried 14 votes to 0, with 1 abstention, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Abstained:

The Mayor (Grant Smith).

83-18

Sport and Recreation Committee Part I Public - 14 May 2018

Consideration was given to Sport and Recreation Committee recommendations as appended to these minutes.

Moved Leonie Hapeta, seconded Duncan McCann.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 83-18 above was carried 15 votes to 0, the voting being as follows:

For:

84-18

Audit and Risk Committee Part I Public - 21 May 2018

Consideration was given to Audit and Risk Committee recommendations as appended to these minutes.

Moved Vaughan Dennison, seconded Bruno Petrenas.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 84-18 above was carried 13 votes to 0, with 2 abstentions, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

Abstained:

Councillors Tangi Utikere and Leonie Hapeta.

Exclusion of Public

85-18

Recommendation to Exclude Public

Moved Grant Smith, seconded Tangi Utikere.

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
18.	Minutes of the extraordinary meeting - Part II Confidential - 14 May 2018	For the reasons setout in the extraordinary minutes of 14 May 2018, held in public present.
19.	Appointment to the Globe Theatre Trust Board	Privacy	s7(2)(a)
20.	Presentation of the Part II Confidential Economic Development Committee Recommendations from its 14 May 2018 Meeting
21.	Presentation of the Part II Confidential Sport and Recreation Committee Recommendations from its 14 May 2018 Meeting
22.	Presentation of the Part II Confidential Finance and Performance Committee Recommendations from its 21 May 2018 Meeting

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

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.

Clause 85-18 above was carried 15 votes to 0, the voting being as follows:

For:

The public part of the meeting finished at 9.49am

Confirmed 25 June 2018

Mayor

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 25 June 2018

TITLE: Adoption of the 10 Year Plan (Long-term Plan) 2018-28, including the Financial and Infrastructure Strategies

DATE: 7 June 2018

AUTHOR/S: Andrew Boyle, Head of Community Planning, City Future

RECOMMENDATION(S) TO Council

1. That the 10 Year Plan (Long-term Plan) 2018-28, including the Financial and Infrastructure Strategies, as updated from the Committee of Council meeting of 11 June 2018 be adopted.

2. That the Council acknowledge the 10 Year Plan budget includes a deficit of $2.4 million for the 2020/21 financial year and resolves this outcome is financially prudent having regard for the matters contained in Section 100 of the Local Government Act 2002.

3. That the adoption of the 10 Year Plan 2018-28 be confirmed as a significant decision and that the Council confirm it has developed the Plan in compliance with the decision making and consultation requirements of the Local Government Act 2002.

4. That the Mayor, Deputy Mayor, Chair of Finance and Performance and Chief Executive be given delegated authority to approve the final 10 Year Plan document for publication.

5. That the Chief Executive be given delegated authority to authorise payments to Council Controlled Organisations and other external organisations generally in accordance with their respective Statements of Intent.

1. ISSUE

The Council is to adopt its 2018-28 10 Year Plan (Long-term Plan), including the Financial and Infrastructure Strategies. This is a significant decision so the Council has to confirm it has appropriately observed the decision making and consultation provisions (particularly Sections 77, 78, 80, 81 and 82) of the Local Government Act.

The Plan cannot be adopted without an Audit Report so on 11 June the Committee of Council approved the 10 Year Plan for referral to Audit.

Audit NZ reviewed the Plan and will issue an unqualified audit report provided that no changes are made to the Plan, other than the minor changes that were identified as part of the audit process (see section 3 of this report).

The adoption of the 10 Year Plan does not automatically authorise the actions in the Plan so an additional recommendation is included to enable the Chief Executive to enable payments to be made to external organisations (especially the Council Controlled organisations) generally in accordance with their Statements of Intent, noting that some Statements of Intent are yet to be finalised.

2. BACKGROUND

The Plan has been developed through a comprehensive process involving:

· setting new Vision, Goals and Principles

· revising all Council’s strategies, including the Financial and Infrastructure Strategies

· developing and revising the plans and policies that deliver on the strategies

· reviewing and updating Asset Management Plans

· reviewing the levels of service provided by Council

· preparing budgets

· extensive community consultation

· deliberations on community feedback

· audit process.

3. REVISIONS made to 10 Year plan document presented to committee of council, 11 june 2018

The following changes have been made in light of the Audit review and comments made at the Committee, plus minor text improvements from officers:

· Added the Mayoral and Chief Executive Foreword (attached as Appendix 1).

· Added Te Reo text to the major headings and section dividers.

· Added information on the most recent results for the Activity KPIs (from the 2016/17 Annual Report).

· Clarified the targets for traffic accident trends (year on year and five year rolling average) to show that decreases in numbers are expected.

· Added a footnote explaining why Council’s KPI for processing building and resource consent applications is less than 100% within statutory timeframes:

“In setting these targets the Council acknowledges that a small number of applications will not be processed within statutory deadlines. This is because some complex consent issues cannot be resolved within statutory timeframes. Also consent applications come in peaks and troughs and, although Council continually monitors resourcing needs and works with other Councils to help manage peak demands, it is not always possible to meet these peaks without over-resourcing for more normal demand.”

· Added a footnote to the stormwater consents KPI to clarify that “Council holds only consents associated with construction and maintenance of stormwater facilities. There are no specific stormwater discharge consents.”

· Updated the relevant financial figures and tables throughout the document to reflect changes made at Committee. These revisions do not change the Council’s financial position.

· Revised the performance measure tables for the CCOs to reflect the updated Statements of Intent from the CCOs, which are still in draft. The Statements of Intent will be adopted by Council in August. These changes include the new KPI for the Regent on increasing audience numbers as requested by Council.

· Revised the introduction to the Village Planning section. It now reads:

“The City Council is helping the residents of three villages – Ashhurst, Bunnythorpe and Longburn – in its area to do Village Planning.

Ashhurst has been part of the city since 1989. Bunnythorpe and Longburn joined the city in 2012 through a boundary change adjustment with Manawatu District Council.

Village planning outlines the type of village that residents want to live in and shows how this could be achieved by residents, Council and other organisations.

Village Planning is “work in progress” and it is up to the residents of each village as to how they want any Village Plans to be finalized and used.

This section in the 10 Year Plan shows the Council’s current understanding of the villages’ desired outcomes. It then lists the Council programmes that will help achieve this.”

· Minor formatting fixes through the document.

Page cross references will be included when the Plan is finalised.

4. Balanced budget

Section 100 of the Local Government Act requires councils to ensure that each year’s projected operating revenues are set at a level sufficient to meet that year’s projected operating expenses.

If a council determines that it is prudent not to have a ‘balanced budget’ (i.e. an operating surplus is not required), it must make a formal decision to that effect. The decision must be a prudent one and have included consideration of levels of service and useful lifespan of assets. There are grounds for not having a surplus every year to avoid building up unnecessary cash reserves. Council’s asset management plans ensure the Council is appropriately planning for renewals and its financial strategy is to make adequate financial provision to fund renewals from rates revenue. Council is making provision to fund between $19.8 million and $27.2 million per annum for capital renewals throughout the 10 years of the Plan.

The Council’s Prospective Statement of Comprehensive Revenue and Expense (as in the 10 Year Plan) shows that after including capital revenue of between $11.9m and $33.6 million p.a. there is a surplus of between $1.4 million and $26.9 million p.a. projected throughout the 10 years of the Plan with the exception of 2020/21 when a deficit of $2.4 million is projected. The deficit is considered to be immaterial in the scale of the overall position forecast for the 10 years. Council interprets the position to mean it is projected to have a ‘balanced budget’ throughout this period. However it is still required to pass a resolution addressing this balanced budget requirement. As mentioned above, the surpluses are calculated after including capital revenue. Capital revenue includes grants and subsidies and development contributions (that fund capital expenditure) and the value of assets that are vested in the council following subdivision (and this is non-cash revenue).

5. NEXT STEPS

The Plan will be implemented and monitored.

It will be published and made available on the Council’s website. Council’s Plans (eg Active Citizenship Plan, Biodiversity Plan and Safe Communities Plan etc) will be updated to reflect the approved actions in the 10 Year Plan.

Rates will be set for 2018/19. A separate report to the Council meeting covers this.

6. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual <Enter clause>	Yes
Are the decisions significant?	Yes
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	Yes
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	No

Attachments

Appendix 1: Mayoral and Chief Executive Foreword for 10 Year Plan ⇩

Andrew Boyle

Head of Community Planning

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 25 June 2018

TITLE: Setting of Rates for 2018/19

DATE: 15 June 2018

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

RECOMMENDATION(S) TO Council

1. That the resolution to set the rates for the 2018/19 year (attached as Appendix One) be adopted.

2. That it be noted that the setting of rates is a significant decision within the parameters of the Local Government Act 2002 and that it is satisfied there has been compliance with the decision-making and consultation requirements of the Act.

1. ISSUE

Section 23 of the Local Government (Rating) Act 2002 prescribes that the rates must be set by resolution of the Council and be in accordance with the relevant provisions of the Funding Impact Statement (contained within the 10 Year Plan or Annual Plan) for the year.

Rates are the Council’s principal source of revenue. It is important that rates be set in the timeframes outlined so that Council will have the ability to fund its approved budget. The rates outlined in the attached resolution are calculated to generate the rates revenue for 2018/19 as outlined in the Council’s 2018-28 10 Year Plan to be formally adopted on 25 June 2018.

The recommendations assume the Council will have adopted the 2018-28 10 Year Plan earlier in the meeting.

2. BACKGROUND

On 11 June the Committee of Council recommended the approval of the 2018-28 10 Year Plan for audit review. The Plan determines the net revenue to be sought from ratepayers to fund operations and new programmes for the 2018/19 year.

The rates to be set are designed to cover a net sum of external income for the City Council of $94.5 million (plus GST) plus a sum to cover rates for Council owned properties as approved by the adoption of the 10 Year Plan.

The resolution attached (appendix one) outlines the details of the rates to be set. Rates throughout the report and the resolution are GST inclusive unless stated otherwise.

The following table demonstrates the changes for the Uniform Annual General Charge and the fixed amounts for services:

2017/18

GST incl.

2018/19

GST incl.

Uniform Annual General Charge

Water Supply

Kerbside Recycling

Rubbish & Public Recycling

Wastewater disposal

Wastewater pan charge

Metered water charge(p cu metre)

$630

$273

$128

$60

$246

$1.173

$690

$256

$126

$69

$256

$1.1845

The budgeted revenue from the Uniform Annual General Charge plus the Rubbish & Recycling fixed charges represents 26% of total rates revenue (including metered water charges) compared with a band of 25 to 26% over the last five years and the legislative maxima of 30%.

Information about the structure of the rates assessed by broad differential grouping is attached as appendix two.

Appendix three shows graphically by broad differential grouping the land values and the impact on the distribution of the general rate and total rate for 2018/19 compared with 2017/18. It shows there will be minimal change between the two years.

Examples of the rates which will be assessed are shown below:

Land Value

Actual Rates 2017/18

Proposed Rates 2018/19

Single unit residential

Average

Median

Quartile 1

Quartile 3

147,000

128,000

101,000

175,000

2,433

2,292

2,090

2,642

2,541

2,393

2,183

2,759

Two unit residential

Average

Median

Quartile 1

Quartile 3

160,000

139,000

113,000

185,000

3,867

3,627

3,331

4,152

4,008

3,759

3,449

4,306

Non-residential

Average

Median

Quartile 1

Quartile 3

574,000

315,000

180,000

640,000

14,559

8,412

5,208

16,125

15,249

8,826

5,479

16,886

Rural & semi-serviced

(5ha or more)

Average

Median

Quartile 1

Quartile 3

643,000

350,000

235,000

680,000

1,606

1,188

1,025

1,658

1,716

1,280

1,109

1,771

Rural & semi-serviced

(between 0.2 & 5ha)

Average

Median

Quartile 1

Quartile 3

224,000

220,000

180,000

260,000

1,455

1,442

1,305

1,578

1,559

1,545

1,402

1,687

Miscellaneous

Average

Median

Quartile 1

Quartile 3

395,000

235,000

113,000

475,000

4,440

2,921

1,763

5,199

4,677

3,090

1,880

5,471

The following graph shows a further breakdown of the makeup of single unit residential rates for the various land value levels. At the head of each column it shows the total rates for each land value level.

The City was last revalued for rating purposes in September 2015 and these values will continue to be the base for setting and assessing general rates for 2018/19.

The Government’s rates rebates scheme for residential home owners on lower incomes has provided much needed assistance. 1989 city ratepayers have received a total of $1.13 million from the scheme during 2017/18 to date. Each year the Government updates the qualifying criteria for the scheme by a CPI adjustment.

3. NEXT STEPS

The recommended actions in this report are of a machinery nature to implement the decisions incorporated in the 10 Year Plan. Although machinery, they are significant and must be passed in the form outlined.

Once adopted Council staff will complete the administrative actions necessary to assess rates on individual properties then deliver rates assessments and invoices for the first instalment on 1 August 2018.

As usual a ratepayer newsletter will be produced and distributed as part of the rates package. Publicity will be given to the availability of the rates rebate scheme.

Attachments

Appendix 1 - rates resolution 2018/19 Appendix 2 - structure of rates revenue 2018/19 Appendix 3 - comparision by differential category ⇩

Steve Paterson

Strategy Manager Finance

Memorandum

TO: Council

MEETING DATE: 25 June 2018

TITLE: Adopting Amendments to the Treasury Policy and Resolutions to Authorise Borrowing

DATE: 15 June 2018

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

RECOMMENDATION(S) TO Council

1. That the Treasury Policy (incorporating the Liability Management and Investment Policy) adopted on 21 December 2017 be amended to increase the borrowing limit for net external debt as a percentage of total revenue from 175% to 200% to reflect the increased limit adopted as part of the Financial Strategy incorporated in the 2018-28 10 Year Plan.

2. That Council authorises the Chief Executive to borrow, in accordance with delegated authority, up to $39 million (“the Borrowing”) of additional term debt by way of bank loan or loans or credit facilities or other facilities or the issue of stock for the Borrowing secured by the Debenture Trust Deed.

3. The purpose of the Borrowing is the carrying out or continuing of programmes identified in the 2018-28 10 Year Plan for the 2018/19 year.

4. The security for the Borrowing may be the charge over rates under the Debenture Trust Deed if the Chief Executive considers appropriate.

5. The benefits of the Borrowing are that it will enable the Council to carry out the programmes identified in the 10 Year Plan while spreading the costs for those programmes over time to recognise future benefits. The risk is that interest rates may vary in the future resulting in higher debt servicing costs to the Council.

6. For the reasons set out in this report the Council has determined, that, having regard to the Council’s financial strategy, in the particular circumstances it is prudent and reasonable to enter into the proposed borrowing.

7. The raising of the Borrowing will comply with the Council's Liability Management Policy.

8. The Council note that the decision to borrow up to $39 million is a significant decision within the parameters of the Local Government Act 2002 and is satisfied that there has been compliance with the decision-making and consultation requirements of the Act.

1. ISSUEs

1.1 Treasury Policy

Council’s most recent Treasury Policy (incorporating the Liability Management and Investment Policy) was adopted on 21 December 2017. It needs to be updated to include the updated net debt to revenue ratio borrowing limit as contained in the 2018-28 10 Year Plan.

1.2 Borrowings for 2018/19

The Council’s 2018-28 10 Year Plan incorporates provision for raising $39m of additional debt during the 2018/19 year based on an assumption that the total debt outstanding as at 1 July 2018 will be $106m and that there will be capital expenditure (new) of $48m undertaken during 2018/19. It assumes existing and new debt will be serviced at an average of 5.7% per annum and that new borrowings will be raised progressively during the year.

The Council's borrowing is governed by the Local Government Act 2002 (the "Act") and the Liability Management Policy the Council has adopted. Previous legislation required the Council to specifically resolve if it wished to borrow. The Act is silent on these matters except that clause 32 of schedule 7 provides that the Council may not delegate the power to borrow money other than in accordance with the 10 Year Plan. It is considered prudent to have the Council specifically authorise the proposed borrowings each year by way of resolution and the Council’s Liability Management Policy provides that such a resolution is required. From time to time during the year it will also be necessary to re-finance present borrowings.

2. BACKGROUND

2.1 Treasury Policy

Council’s most recent Treasury Policy was adopted on 21 December 2017. Specific borrowing limits are outlined in clause 3.6.1 of the policy. The present limit for net external debt as a percentage of total revenue is 175%. The policy contains a note indicating the Council is considering increasing the limit during the development of its 2018-28 10 Year Plan. The updated Financial Strategy (which forms part of the 2018-28 10 Year Plan) includes an updated ratio of 200%. This needs to be reflected in the Treasury Policy.

2.2 Borrowings for 2018/19

In preparing the Council's 10 Year Plan, the Council's long and short term expenditure and funding requirements have been considered and the Council has adopted a Financial Strategy and a Liability Management Policy with regard to borrowing to meet its funding requirements. These considerations are retained in the 2018-28 10 Year Plan.

The Council has entered into a Debenture Trust Deed which provides a charge on Council’s rates and rates revenue in favour of Covenant Trustee Services Ltd as trustee for the various lenders who may be granted security under it by the Council.

The Council's 2018-28 10 Year Plan provides for the following:

· Forecast term liabilities of $106m as at 1 July 2018

· Additional debt of $39m being raised during 2018/19

· Forecast total term liabilities of $145m as at 30 June 2019

· Total capital expenditure of $74.1m during 2018/19 ($47.9m of which is new capital work).

Additional debt is raised only as required and will be dependent on a number of key factors such as progress with the capital expenditure programme and the timing of the receipt of subsidies, grants and development contributions.

To enable the approved capital programme to be funded it is important that officers have clear delegated authority to raise the approved sums when appropriate.

The Council’s Liability Management Policy prescribes that the Council considers the following to be prudent borrowing limits:

· Net debt as a percentage of total assets not exceeding 20%.

· Net debt as a percentage of total revenue not exceeding 200% (assuming this is adopted as outlined in recommendation 1)

· Net interest as a percentage of total revenue not exceeding 15%

· Net interest as a percentage of annual rates income not exceeding 20%.

As part of the process of deciding whether to approve borrowings which would result in the ratios being exceeded the Council will have particular regard for the principles of financial management contained in the Act.

The proposed borrowing, if obtained within the range of rates currently available to the Council, will be within the target limits contained within the Financial Strategy. After raising the Borrowing, and assuming an average interest rate of 5.7% for additional borrowing is achieved, the following estimates of borrowing ratios will apply for the 2018/19 year:

Limits

Projection for 2018/19

Net Debt : Total Assets

< 20%

8.8%

Net Debt : Total Revenue

Net Interest : Total Revenue

Net Interest : Annual Rates Income

< 200%

< 15%

< 20%

118%

5.9%

7.7%

The ratios are within the limits provided for in the policy.

Provision is made for a total interest expense of $7.28m during 2018/19 approximately $1.1m of which relates to the additional debt. The full year servicing cost of the additional debt (at 5.7% pa) would be $2.2m.

3. NEXT STEPS

3.1 Treasury Policy

Once approved the policy document will be updated, published and provided to interested parties including banks and credit agencies.

3.2 Borrowing for 2018/19

After considering the issue it is recommended the Council formally approve the borrowings to enable the capital expenditure plans approved for 2018/19 in the 2018-28 10 Year Plan to be funded. The recommendation is to approve additional borrowings of up to $39m (i.e. $38.7m rounded upward) to accommodate any possible variations in the expenditure for the 2017/18 year and therefore the levels of capital expenditure carry forward.

Attachments

NIL

Steve Paterson

Strategy Manager Finance

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 25 June 2018

TITLE: Consideration of support for remit proposals to the Local Government New Zealand AGM.

DATE: 30 May 2018

AUTHOR/S: Julie Macdonald, Strategy & Policy Manager, City Future

RECOMMENDATION(S) TO Council

1. That Council supports/does not support remit proposal 1. Drug testing in the community.

2. That Council supports/does not support remit proposal 2. HCV [Heavy Commercial Vehicle] – Rural roads policy.

3. That Council supports/does not support remit proposal 3. Heritage buildings.

4. That Council supports/does not support remit proposal 5. Climate change adaptation fund.

5. That Council supports/does not support remit proposal 6. Local alcohol policies.

6. That Council supports/does not support remit proposal 7. Biofuels.

7. That Council supports/does not support remit proposal 8. Single-use plastics.

8. That Council supports/does not support remit proposal 9. A mandatory register of cooling towers.

9. That Council supports/does not support remit proposal 10. Copper in brake pads.

10. That Council supports/does not support remit proposal 11. Reducing the waste stream.

1. ISSUE

At the LGNZ AGM in July the Mayor will be asked to vote on behalf of Palmerston North City Council in support of remits made by other Councils. The purpose of this memo is to provide the background material available to Council to assist it to decide whether or not to support each remit at the AGM.

There has not been sufficient time to provide any further analysis from a Palmerston North City Council perspective about each remit, but the appropriate staff will be available at the Council meeting to answer any questions Councillors may have.

2. BACKGROUND

There are 12 remit proposals being put forward to the LGNZ AGM. The details provided by LGNZ and the proposing Councils are in Attachment 1. Attachments 2 and 3 are the supporting information provided by LGNZ for remit 11 (reducing the waste stream).

The following table describes the action proposed by each remit, and notes where the Palmerston North City Council has already provided its support.

	Remit	Proposed action
1	Drug testing in the community	Developing nationally consistent regime for testing wastewater for illegal or harmful drugs.
2	HCV [Heavy Commercial Vehicles] - Rural roads policy	That LGNZ pursue investigation of a Road Pricing Policy Statement for Land Transport to incentivise route selection for HCV’s that encourages the most economically efficient use of the transport network over both Local Roads and the State Highway network.
3	Heritage buildings	It is recommended that: a) The Act be amended to allow for work up to 25% of the CV, or $200,000, whichever is the greater. b) The Heritage Fund be increased to adequately meet demand. c) That IRD reviews its provisions in relation to tax relief for earthquake strengthening of heritage buildings with a view to introducing this assistance. Note: The PNCC supported this remit at the Zone 3 meeting.
4	Climate change – advocate to banks	The President of LGNZ will write to the NZ Local Government Funding Agency, and all major banks in NZ which manage investment funds on behalf of local authorities, to advocate that they transition away from investments in fossil fuel industries and consider opportunities for long term investments in low- or zero-carbon energy systems. Note: The PNCC already decided to endorse this remit proposal at the 23 April Council meeting.
5	Climate change adaptation fund	Following on from the findings and recommendations of the Climate Change Adaptation Technical Working Group, that LGNZ calls on central government to establish a Climate Change Adaptation Fund to improve local level and community participation in responding to climate change.
6	Local alcohol policies	1. Review the Sale and Supply of Alcohol Act to ensure community views are able to be reflected in a LAP – repeal or review section 81 of the Sale and Supply of Alcohol Act 2012; and/ or – add a new subclause to section 4 of the Sale and Supply of Alcohol Act 2012 (the Object of the Act) “the views and preferences of communities regarding local alcohol licensing matters are appropriately responded to”. 2. Request the Government explore policy levers to address alcohol-related harm that are available to it but that aren’t able to be included in a LAP. These include: - review of the minimum age for purchasing alcohol - consideration of minimum pricing - consideration of changes to the taxing of alcohol - consideration of providing funding to local authorities to offset the cost of LAP development.
7	Biofuels	That LGNZ encourages the Government to investigate options to support the use of biodiesel such as financial incentives; tax offsets; subsidies to bio-diesel manufacturers; and/or subsidies to renewable fuel manufacturers; and/or subsidies at the pump, in order to support the valuable New Zealand industries developing alternative and low carbon fuels.
8	Single-use plastics	1. That LGNZ asks central government to urgently develop and implement a plan to eliminate the use of single-use plastic bags and plastic straws. 2. That LGNZ encourage member councils take steps to phase out the use of single-use plastic bags and straws at council facilities and events.
9	A mandatory register of cooling towers	1. That LGNZ acknowledges the potentially fatal risks posed by legionella bacteria in industrial water cooling towers used for air conditioning and manufacturing; 2. That LGNZ asks central government to resume its work related to reducing the risks posed by legionella bacteria in industrial water cooling towers. This could include: • Amending the Building Act 2004 and/or the Building (Specified Systems, Change the Use, and Earthquake-prone Buildings) Regulations 2005 to collect information for a mandatory register of cooling towers and a mandatory testing and reporting regime. • Providing enforcement powers to councils to address the risks associated with cooling towers such as requiring regular testing, reporting and compliance with specified standards under Building Warrant of Fitness certification. • Requiring medical professionals to report cases of legionellosis (Legionnaires Disease) to local District Health Boards’ Medical Officers of Health (as is required with Campylobacter outbreaks).
10	Copper in brake pads	That LGNZ work with central government to raise the issue and advocate for legislation change.
11	Reducing the waste stream	That LGNZ asks central government to address the China National Sword issue (action 1) and implement the local government waste manifesto (actions 2 -6), to reduce New Zealand’s waste by: 1. Adopting a New Zealand-wide strategic approach to the collection, and processing of recyclable materials within New Zealand; 2. Reviewing the New Zealand Waste Strategy and align, where practicable, with the “Local Government Waste Management Manifesto” to set a clear programme for action; 3. Expanding the Waste Disposal Levy and progressively raise the levy rate in order to reduce total waste to landfills; 4. Officially adopting the National Waste Data Framework and oversee its implementation to enable better planning and monitoring; 5. Establishing a container deposit scheme in consultation with local government in order to lift recycling rates; and 6. Declaring tyres, e-waste, agricultural chemicals and plastics, as priority products under the Waste Minimisation Act 2008, to address problem waste streams. Attachments 2 and 3 provide background material for this remit.
12	Tyres stewardship	That LGNZ requests that the Government urgently implements a comprehensive and mandatory product stewardship programme for tyres. This remit was proposed by Palmerston North City Council.

1. NEXT STEPS

Once the Council has determined whether to support any or all of the remit proposals being put to the July AGM, the Mayor will vote accordingly.

2. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual <Enter clause>
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	No
Are the recommendations inconsistent with any of Council’s policies or plans?	No

Attachments

1.	LGNZ AGM Remits 2018 ⇩
2.	Remit 11 Supporting information A ⇩
3.	Remit 11 Supporting information B ⇩

Julie Macdonald

Strategy & Policy Manager

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 25 June 2018

TITLE: Review of Representation Arrangements

DATE: 7 June 2018

AUTHOR/S: John Annabell, Legal Counsel, City Corporate

RECOMMENDATION(S) TO Council

1. That the attached Discussion Document be approved and be released for community consultation for a period of one month commencing Friday 29 June and closing Monday 30 July 2018, with the Mayor and Deputy Mayor being authorised to make final changes to the Discussion Document of an editorial nature.

2. That submissions be invited on the Discussion Document and an opportunity be provided for submitters to speak to their submission, if they wish, at an Extraordinary meeting of the Council to be held at 9.00 am on Monday 13 August 2018, and that meeting make a preliminary decision on representation matters.

3. That the Council’s formal proposal for representation arrangements be finalised at the Council meeting to be held at 9.00 am on Monday 27 August 2018.

4. That the Chief Executive be authorised to make all necessary arrangements for consultation as outlined in this memorandum.

1. ISSUE

The Council is required to finalise its representation proposal by early September 2018. That proposal will cover matters including whether or not a ward system should be used for electing councillors, the number of councillors, and whether or not a community board or boards should be established.

Matters already decided for the next elections include the continued use of the Single Transferable Voting (STV) electoral system and the non-introduction of Māori ward or wards, the latter being the outcome from the Māori ward poll held in May 2018.

2. BACKGROUND

The Council is required by the Local Electoral Act 2001 (the Act) to review its representation arrangements at least once every six years, the last review being carried out in 2012. This review must include the following:

· The number of elected members (within the legal requirement to have a minimum of six and a maximum of 30 members, including the Mayor).

· Whether the elected members (other than the Mayor) should be elected city-wide, or whether the city will be divided into wards for electoral purposes, or whether there will be a mix of “city-wide” and “ward” representation.

· If election by wards is preferred, then the boundaries and names of those wards and the number of members that will represent each ward.

· Whether to establish communities and have community boards and if so how many, their boundaries and membership and whether to subdivide any community for electoral purposes.

The Council must follow the procedure set out in the Act when conducting a review, and should also follow guidelines published by the Local Government Commission. The Act gives the public the right to make written submissions to the Council, and be heard if desired. There is also a right of appeal to any decisions on the above to the Local Government Commission, which will make a binding decision on the appeal.

The Council last commenced a representation review in 2012 when the present arrangements were decided upon by the Local Government Commission. The Commission’s decision followed three phases of community consultation. The first phase was at the discretion of the Council, with the two later phases following statutory processes. These phases included:

· In the first phase, submissions were invited on a broad range of options.

· In the second phase, submissions were invited on the Council’s formal representation proposal.

· In the third phase, appeals and objections were invited on the Council’s proposals which were amended as a result of submissions received. The appeals and objections were then considered by the Local Government Commission.

The Council’s present representation arrangements have been in place for the last two local government elections.

The detailed options open to the Council reviewing its representation arrangements are described in the background above and also in the attached Discussion Document. The consultation proposed in this memorandum is not mandatory, but is highly desirable given the importance of decisions to be made and, in the event of any appeal being made to the Local Government Commission, the outcome of this consultation may assist the Commission in making a final decision.

3. NEXT STEPS

If approved, a consultation process will be undertaken from late June and in July 2018, based on the Draft Discussion Document attached. There will also be an opportunity for submitters to speak to their submissions at an Extraordinary Council meeting proposed to be held on 13 August 2018. That meeting will also need to make preliminary decisions on the matters at issue, so that a formal decision can be finalised at the Council meeting to be held on 27 August 2018.

An indication of the Council’s preferences will need to be made at the 13 August meeting. Particularly if a ward system is proposed to be introduced, so that appropriate maps can be prepared and relevant statistical data obtained and analysed, and to ensure that the proposed outcome will result in fair representation.

Following the Council’s formal decision on representation, there will be further opportunities for people to make submissions on the proposal. These provide the Council with an initial opportunity to review its formal arrangements, and then for its reviewed arrangements to be appealed to the Local Government Commission.

4. Compliance and administration

Does the Council have delegated authority to decide?	Yes
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	No

Attachments

Discussion Document and Submission Form for Review of Representation Arrangements ⇩

John Annabell

Legal Counsel

PALMERSTON NORTH CITY COUNCIL

Recommendations from Committee

TO: Council

MEETING DATE: 25 June 2018

TITLE: Presentation of the Part I Public Committee of Council Recommendations from its 28 May 2018 Meeting

Set out below are the recommendations only from the Committee of Council meeting Part I Public held on 28 May 2018. The Council may resolve to adopt, amend, receive, note or not adopt any such recommendations. (SO 3.18.1)

N/A

Deliberations on Public Consultation on the Consultation Document and Supporting Information for the Proposed 2018-28 Long-term Plan, Council's Strategies and Plans, Financial and Infrastructure Strategies, Revenue and Financing Policy and Development Contributions Policy.

Memorandum, dated 2 May 2018 from the Head of Community Planning, Andrew Boyle.

The COMMITTEE RECOMMENDS

1. That the submissions and comments received on the consultation material for the Proposed Long-term Plan (10 Year Plan), Financial and Infrastructure Strategies, Revenue and Financing Policy, Development Contributions Policy, Significance and Engagement Policy, City Development Strategy, Economic Development Strategy, Creative and Liveable Strategy, Connected Community Strategy, and Eco City Strategy be received (separately circulated).

2. That the officer comments made in response to the issues raised during the Long-term Plan and Strategy consultation and attached as Appendix 1 be received.

3. That the Chief Executive be instructed to prepare a draft of the final Long-term Plan for consideration by the Committee of Council on 11 June 2018 and that it incorporate:

3.1 Programme 228 – That $1,000,000 from Strategic Capital Ring Road be deferred from 2018/19 to year 2 – 2019/20.

3.2 That the proposed carry forwards and budget changes as attached in appendix 2 as well as revised timing for Whakarongo growth programmes 144, 716, 717, 1000 and 1004.

3.3 That the Chief Executive identify Footpath Maintenance Opex as a specific programme in the LTP 2018/28.

3.4 Any amendments as a result of public consultation or referral of items to the Long-term Plan from Council Committees (Appendix 3) as determined by the Committee of Council.

3.5 That outstanding debt will be repaid over the remaining useful life of the asset funded over a maximum term of thirty years.

3.6 That the Chief Executive be directed to commission a independent comprehensive review of the rating system up to $50,000, to be reported back in 2020 to allow time for public consultation on any subsequent changes prior to preparation of the ten year plan 2021-31.

3.7 That market rents are not introduced for Council’s housing tenants and the current policy of subsiding rents continues.

3.8 That the Chief Executive reports back on the alternative options for the provision of additional social housing units.

3.9 In regard to submission 11, that it be noted that Chief Executive is investigating a concept plan for play activity in The Square (under the City Centre Framework) in preparation for the next LTP considerations.

3.10 That such a concept plan be reported back to the Council with a view to funding the development as part of the 2019/20 Annual Budget considerations.

3.11 That for City Centre Streetscape, Programme 243 (Main Street East including the Urban Bus Terminal) be brought forward one year such that the order of progress in Streetscape plan is Programme 244 (Square East, commencing Year 1), Programme 243 (Main Street East, commencing Year 2), Programme 1400 (Broadway, commencing Year 3) in the 2018 - 2028 Long Term Plan.

3.12 That the Chief Executive provides a report outlining how the budget for the renewal of Assets is applied, including when undertaking Capital New Programmes.

3.13 That programme 1525 Te Manawa – Investigations and000 in 2018/19. Following initial investigations and planning, the Chief Executive to report back to Council on the budget requirements to deliver Option A or B.

3.14 To provide a Capital Grant of $15,000 in 18/19 to Victoria Esplanade Scenic Railway to support a deviation on the railway track behind CET Wildbase Recovery Centre provided this can be achieved without impact on the bush remnant.

3.15 Instructing the Chief Executive to ask staff to form a Esplanade Users Group.

3.16 That programme 114 be increased by $12,000 for the 2018/19 year specifically for the installation of 6 new bike racks to be installed at Victoria Esplanade.

3.17 That the Chinese Garden, Mini Putt and Camellia Walk proposals be referred to the Esplanade Masterplan for further consideration and a report back on costs and feasibility.

3.18 That the Chief Executive be directed to develop an Urban Cycle Network Development masterplan.

3.19 That the Council support the Bainesse and District Community Development Trust proposal for a City to Sea Rail Trail shared pathway, subject to funding.

That the meeting extend to 6.00pm.

3.20 That programme 1095 'PN - Bunnythorpe Cycle Pedestrian Pathway' in the amount of $2.833m be revised to an ‘Urban Cycle Network Development’ programme, to be delivered as $1.433m in Year 2 (2019/20) and $1.4m in Year 3 (2020/21) of the 2018-2028 LTP; and that the Bunnythorpe Cycle Pedestrian Pathway be deferred to Year 4 (2021/22) and considered in the next Long Term Plan.

3.21 That programme 1358 Footpath Extension include consideration of a separated path on Old West Road, and that the Chief Executive seek funding from NZTA for this as a State Highway Safety Footpath Project.

3.22 40 Additional car parks into Bill Brown Park in year three for $100,000.

3.23 Additional car parking into Kelvin Grove Community Centre to the value of $100,000. Spread over year 3 and 4.

3.24 Bring forward Programme 1174 (Outdoor Gyms) $122,000 to Year 2018/19, add $125,000 to Years 2020/21, 2022/23, 2024/25, and 2026/27, and delete from Year 2023/24 to enable construction of Outdoor Gyms every 2nd year.

3.25 Programme 1265 – Pitt Park – Move budget from Opex to Capex.

3.26 (CN-159) Kelvin Grove Road (Stoney Creek Road to Henaghans Road) – Safety Improvements of 5 dips (subject to external funding) $3million to be included in year 5.

3.27 That the Globe Theatre operational grant be increased by

3.28 To provide a Capital Grant of $20,000 2018/19 to the NZ Rugby Museum to support their cataloguing/conservation work.

3.29 To provide a capital grant of $300,000 over 3 years (2018/19, 2019/20, 2020/21) to All Saints Church.

3.30 To establish a programme to provide an increase of $50,000 p/a in the Fee for Service Grants.

3.31 To establish a programme to increase the Community Development Small Grants Fund by $30,000 p/a, and to review the extent of the scope of the fund so that all community groups apart from those who receive a Fee for Service contract are able to apply as part of the policy review.

3.32 That the Heritage fund is reduced to $50,000 in the first three years.

3.33 That programme 1439 'Culture/Heritage - Urban Eels Project Contribution' be adjusted to $22,000 in Year 1 and $148,000 in Year 2 the 2018/28 LTP, and that the CE be directed to work with Horizons Regional Council and approach the Freshwater Improvement Fund for increase project co-funding.

3.34 The $20,000 be allocated for the Railway Wheels on Railway Land project in the 2018/19 year.

3.35 That programme 367 – Public Sculptures/Art Funding be adjusted to be $50,000 per year for the first 5 years.

3.36 Submission 449: Square Edge Toilets on Level 2. Asking for Chief Executive to bring forward 50% of toilets renewal budget $90,000 into 2018/19 year.

3.37 The 10 Year Plan confirms the additional grant to remunerate Regent Theatre Trust Board, Caccia Birch Trust Board and Globe final Statements of Intent this grant is to be shown as not adjusted for inflation.

3.38 That Council develop two new self-contained campervan dump stations (as programme 1535 – City Wide – Campervan Dump Stations) at a cost of $60,000 each for years 2019/20 and 2023/24.

3.39 That Council note: Memorial Park - That the Table 2 priorities, budget estimates, and timings include bringing the funding for the Splash Pad at Memorial Park forward by one year – from the 2019/20 financial year to the 2018/19 financial year.

That the Memorial Park Capital Development Programme remains significantly unchanged and directs the Chief Executive to apply to external funders for an additional $250,000 in funding for the Splash Pad at Memorial Park.

3.40 That programme 1249 'Arapuke Forest Park -Contribution to Manawatu Mountain Bike Club' be increased to $50,000 per annum in each of years 1 - 4 of the 2018/28 LTP.

3.41 That the Chief Executive include a request for $35,000 for lighting of the skating rink at Memorial Park in the priorities for external funding.

3.42 That submission 297 be referred to the Chief Executive, to investigate opportunities for community use of the St Marks Church site, and reported back to the Community Development Committee.

3.43 That programme 1161 be renamed to ‘Te Papaioea History Celebration’.

3.44 That a “Via Recreativa” type event be considered by Palmy Unleashed with a view to undertake a trial.

That the meeting be extended to 5:00pm.

3.45 That the Chief Executive report back to Council on the findings from other Territorial Authorities across Aotearoa who have trialed kerbside organic waste collection, with options around implementation.

3.46 That a new capital item be added to purchase and install 17 new bins to supplement the existing number of bins along the walkway network at a cost of $25,500.

3.47 Programme 1060 Storm Water Improvements that the Chief Executive to undertake an impact assessment on future flooding risks across the city. Further modelling and investigation work will be undertaken this year to identify mitigation measures across the city with the potential to reduce flooding risks including creating detention areas in public space as well as additional large capacity drains. This work will identify a multimillion dollar programme of work which will be shared with Council as part of the 2021/31 LTP process with a view to getting agreement on the scope and investment in large scale storm water improvement works to be implemented across the city.

3.48 New programme up to $25,000 towards accommodation (subject to Chief Executive approval of the lease and location) for the set-up of FarmCave in year 1.

3.49 Ensuring that the Chief Executive collaborates with Utility companies – Data, Power and Phone within existing budgets.

3.50 That a new programme of debt repayment be introduced from year 4 to reduce the debt to revenue ratio to 200% by year 10.

Attachments

Nil

PALMERSTON NORTH CITY COUNCIL

Recommendations from Committee

TO: Council

MEETING DATE: 25 June 2018

TITLE: Presentation of the Part I Public Committee of Council Recommendations from its 11 June 2018 Meeting

Set out below are the recommendations only from the Committee of Council meeting Part I Public held on 11 June 2018. The Council may resolve to adopt, amend, receive, note or not adopt any such recommendations. (SO 3.18.1)

11-18

Approving the 2018-28 Long-term Plan for Audit (including the Financial and Infrastructure Strategies), Revenue and Financing Policy, Development Contributions Policy, and Signficance and Engagement Policy

Memorandum, dated 4 June 2018 from the Head of Community Planning, Andrew Boyle.

The COMMITTEE RECOMMENDS

1. That the Chief Executive specify ratepayer investment of $210K into Programme 1567 for Year 1.

2. That the 2018 Vision, Goals and Principles (separately attached as appendix 1) be adopted.

3. That the 2018 Development Contributions Policy (separately attached as Appendix 3) be adopted.

4. That the Significance and Engagement Policy be amended (separately attached as Appendix 4) to reflect the Council’s new Vision, Goals and Strategies.

5 That the Revenue and Financing Policy, as shown in the draft of the Long-term Plan (separately attached as Appendix 2), be adopted.

The COMMITTEE RESOLVED

6. That the 2018-28 Long term Plan be approved for referral to Audit.
7. That the final audited 2018-28 Long term Plan be considered for adoption at a meeting of the Council on 25 June 2018.

12-18

Adoption of Council strategies as the foundation of the 10 Year Plan

Memorandum, dated 24 May 2018 from the Strategy & Policy Manager, Julie Macdonald and the City Planning Manager, David Murphy.

The COMMITTEE RECOMMENDS

1. That the City Development Strategy, Economic Development Strategy, Creative and Liveable Strategy, Connected Community Strategy, and Eco City Strategy, as adopted by Council on 5 March 2018, are adopted as the foundation documents for the 2018-28 10 Year Plan.

2. That the following Council documents are rescinded at 30 June 2018:

Active Recreation Strategy

Arts Strategy

Biodiversity Strategy

Economic Well-being Strategy

Events and Festivals Strategy

Heritage Strategy

Integrated Transport Strategy

Māori Community Strategy

Residential Growth Strategy

Rural Residential Land Use Strategy

Retail Strategy

Industrial Land Use Strategy

Safe City Strategy

Social Strategy

Social Housing Strategy

Sustainable City Strategy

Sustainable Practices Strategy

Urban Design Strategy

3. That all plans under the five strategies be updated to reflect the Council decisions made during the 10 year plan deliberations to provide the detailed direction for Council activities over the next three years.

4. That the relevant priorities from the five strategies form the basis for the funding decisions made under the Community Funding Policy.

5. That the Social Housing Guidelines (consulted on through the 10 Year Plan process as the ‘Council Housing Rental Guidelines’) be updated to reflect the Council decisions made during the 10 year plan deliberations.

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2017 Asset Management Plan Review

Memorandum, dated 25 May 2018 from the Special Projects Manager, Phil Walker.

The COMMITTEE RECOMMENDS

1. That the asset management plans for Property, Recreational & Community Facilities, Roading & Parking, Rubbish & Recycling, Stormwater, Wastewater and Water Supply (as represented by the Executive Summaries attached) be endorsed and that in doing so the following be noted:

· That the plans have been prepared in a manner which reflects current best practice

· That the plans have been peer review by a qualified external reviewer (AECOM) who has concluded that they are overall of a high standard

· That the plans were used to inform the preparation of the draft 30 Year Infrastructure and Financial Strategies, the Development Contributions works schedule as well as the budgets and programmes incorporated in the proposed 10 Year Plan 2018-28 and they are formulated using consistent key forecasting assumptions regarding asset life, levels of service and city growth.

2. That any minor amends to the Asset Management Plans be approved by the Mayor and Deputy Mayor.

Attachments

Nil

Grant Smith (Mayor)
Tangi Utikere (Deputy Mayor)
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