Agenda of Finance and Performance Committee

PALMERSTON NORTH CITY COUNCIL

Finance and Performance Committee MEETING

17 June 2019

Order of Business

NOTE: The Finance and Performance Committee meeting coincides with the meeting of the Arts, Culture and Heritage Committee. The Committees will conduct business in the following order:

- Finance and Performance Committee

- Arts, Culture and Heritage Committee

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. 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.)

5. Deputation - Traffic Management - Awapuni Page 7

6. Confirmation of Minutes Page 9

“That the minutes of the Finance and Performance Committee meeting of 15 April 2019 Part I Public be confirmed as a true and correct record.”

7. Update on College Street Transport Upgrade Page 17

Memorandum, dated 7 June 2019 presented by the Transport & Infrastructure Manager, Robert van Bentum.

8. BPO Quarterly Report Page 25

Report, dated 6 May 2019 presented by the Transport & Infrastructure Manager, Robert van Bentum.

9. Amendment to Fees and Charges Page 35

Memorandum, dated 30 April 2019 presented by the Strategy Manager Finance, Steve Paterson.

10. Palmerston North Airport Ltd - Final Statement of Intent for 2019/20 Page 39

Memorandum, dated 5 June 2019 presented by the Strategy Manager Finance, Steve Paterson.

11. Fees and Charges - Confirmation Following Public Consultation Page 67

Memorandum, dated 5 June 2019 presented by the Strategy Manager Finance, Steve Paterson.

12. Papaioea Place Redevelopment Quarterly Update Page 79

Memorandum, dated 8 May 2019 presented by the Property Manager, Bryce Hosking.

13. Camp Kilsby Scouting NZ: Application for Grant from Council to fund Development Contribution Fee Page 83

Memorandum, dated 31 May 2019 presented by the City Planning Manager, David Murphy.

14. Committee Work Schedule Page 93

15. 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
16.	Minutes of the Finance and Performance Committee meeting - Part II Confidential - 15 April 2019	For the reasons set out in the Finance and Performance Committee minutes of 15 April 2019, held in public present.
17.	Pioneer City West Private District Plan Change Request	Negotiations	s7(2)(i)

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), Chief Infrastructure Officer (Tom Williams), General Manager – Strategy and Planning (Sheryl Bryant), General Manager - Community (Debbie Duncan), Chief Customer and Operating Officer (Chris Dyhrberg), General Manager - Marketing and Communications (Sacha Haskell), Sandra King (Executive Officer) 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 Executive Leadership 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.

Committee Administrators (Penny Odell, Rachel Corser and Natalya Kushnirenko), 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

Minutes of the Finance and Performance Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 15 April 2019, commencing at 9.01am

Members

Present:

Councillor Susan Baty (in the Chair), The Mayor (Grant Smith) and Councillors Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Karen Naylor and Bruno Petrenas.

Non Members:

Councillors Brent Barrett, Rachel Bowen, Duncan McCann and Tangi Utikere.

Apologies:

Councillor Leonie Hapeta (late arrival).

Councillor Duncan McCann was not present when the meeting resumed at 2.02pm. He was present for clause 21.

Councillor Leonie Hapeta was present when the meeting resumed at 2.02pm. She was not present for clause 21.

The Mayor (Grant Smith) left the meeting at 2.29pm during consideration of clause 25. He entered the meeting again at 2.48pm during further consideration of clause 25.

Councillor Tangi Utikere left the meeting at 2.52pm at the conclusion of clause 25. He entered the meeting again at 3.41pm during the consideration of clause 28. He was not present for clauses 26 to 27 inclusive.

Councillor Vaughan Dennison left the meeting at 2.54pm at the conclusion of clause 25. He was not present for clauses 26 to 30 inclusive.

Councillor Jim Jefferies left the meeting at 3.26pm at the conclusion of clause 26. He was not present for clauses 27 to 30 inclusive.

21-19

Apologies

Moved Susan Baty, seconded Rachel Bowen.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 21-19 above was carried 14 votes to 0, the voting being as follows:

For:

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

The meeting adjourned at 9.02am

The meeting resumed at 2.02pm

When the meeting resumed Councillor Duncan McCann was not present.

When the meeting resumed Councillor Leonie Hapeta was present.

22-19

Public Comment

Public Comment was received from Mr Robert Gibb regarding the action Council needed to take to transition to a low carbon economy.

Moved Tangi Utikere, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the public comment be received for information.

Clause 22-19 above was carried 14 votes to 0, the voting being as follows:

For:

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

23-19

Confirmation of Minutes

Moved Susan Baty, seconded Jim Jefferies.

The COMMITTEE RESOLVED

1. That the minutes of the Finance and Performance Committee meeting of 18 March 2019 Part I Public be confirmed as a true and correct record.

Clause 23-19 above was carried 14 votes to 0, the voting being as follows:

For:

24-19

Huia Street Reserve

Memorandum, dated 29 March 2019 presented by the City Planning Manager, David Murphy and the Property Manager, Bryce Hosking.

Moved Susan Baty, seconded Jim Jefferies.

The COMMITTEE RECOMMENDS

1. That the Chief Executive be authorised to prepare a consultation document and undertake a consultation process under the Local Government Act 2002 prior to the Council making a decision about engaging with Parliament to initiate an amendment to the Palmerston North Reserves Act 1922 and / or the Palmerston North Reserve Empowering Act 1966 to enable the disposal or development of Huia Street Reserve (Lots 3 4 Pt Lots 1 2 DP 545) for an alternative use.

2. That it be noted that should an amendment to the Palmerston North Reserves Act 1922 and / or the Palmerston North Reserve Empowering Act 1966 be enacted or made by Parliament that the disposal or development of Huia Street Reserve (Lots 3 4 Pt Lots 1 2 DP 545) may be subject to further consultation by the Council under the Local Government Act 2002 and / or Reserves Act 1977 and Resource Management Act 1991.

3. That the Council receive the residential development scenarios prepared for the Huia Street Reserve report dated 29 March 2019 that demonstrate one option (residential development) for how the Huia Street Reserve could be used in the future, noting that any final decision on the future use of the reserve is subject to an amendment to the Palmerston North Reserves Act 1922 and / or the Palmerston North Reserve Empowering Act 1966 and the results of public consultation under the Local Government Act 2002 and / or Reserves Act 1977 and Resource Management Act 1991.

Clause 24-19 above was carried 14 votes to 0, the voting being as follows:

For:

25-19	Fees and Charges Review Report, dated 29 March 2019 presented by the Chief Financial Officer, Grant Elliott. In regards to the Animal Control fees and charges, Elected Members believed the fee burden should be directed more towards non-compliant dog owners. The Mayor (Grant Smith) left the meeting at 2.29pm The Mayor (Grant Smith) entered the meeting at 2.48pm
	Moved Leonie Hapeta, seconded Jim Jefferies. The COMMITTEE RECOMMENDS 1. That the report titled `Fees and Charges Review’ dated 29 March 2019 be received and the current status of fees and charges be noted. Trade waste 2. That the proposal to adopt updated fees and charges for Trade Waste services effective from 1 July 2019 as attached in Appendix 2 of the report titled `Fees and Charges Review’ dated 29 March 2019, be approved for public consultation and the Chief Executive be authorised to undertake the necessary consultative process under sections 82 and 150 of the Local Government Act 2002. Planning & Miscellaneous 3. That the Statement of Proposal (and the associated summary) to adopt updated fees and charges for Planning Services and Miscellaneous Services effective from 1 July 2019 as attached in Appendix 3 of the report titled `Fees and Charges Review’ dated 29 March 2019, be approved for public consultation and the Chief Executive be authorised to undertake the necessary consultative process under sections 83 and 150 of the Local Government Act 2002. Building 4. That the fees and charges for Building Services, as proposed in Appendix 4 of the report titled `Fees and Charges Review’ dated 29 March 2019 be adopted and following public notification take effect from 1 July 2019. Environmental Health 5. That the fees and charges for Environmental Health Services (in terms of regulation 7 of the Health (Registration of Premises) Regulations 1966) as proposed in Appendix 5 of the report titled `Fees and Charges Review’ dated 29 March 2019, be adopted and following public notification, take effect from 1 July 2019. Animal Control 6. That the fees and charges for the Impounding of Animals (in terms of section 14 of the Impounding Act 1955) and for Dog Registration and Dog Impounding (in terms of sections 37 and 68 of the Dog Control Act 1996) as proposed in Appendix 6 of the report titled `Fees and Charges Review’ dated 29 March 2019 be adopted, and once following public notification, take effect from 1 July 2019. Burial & Cremation 7. That the fees and charges for Burial and Cremation, as proposed in Appendix 7 of the report titled `Fees and Charges Review’ dated 29 March 2019 be adopted and following public notification take effect from 1 July 2019. Service Connections 8. That the fees and charges for Service Connections, as proposed in Appendix 8 of the report titled `Fees and Charges Review’ dated 29 March 2019 be adopted and take effect from 1 July 2019. Recycling Charges 9. That the fees and charges for Recycling as proposed in Appendix 9 of the report titled `Fees and Charges Review’ dated 29 March 2019 be adopted and take effect from 1 May 2019.
	Moved Lorna Johnson, seconded Tangi Utikere. 10. That a review of the charging structure for animal control fees be undertaken to explore a mechanism to shift the fee burden to non- compliant dog owners and reported back to the Finance and Performance Committee.
	Clause 25-19 above was carried 13 votes to 0, with 1 abstention, the voting being as follows: For: Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Karen Naylor, Bruno Petrenas and Tangi Utikere. Abstained: The Mayor (Grant Smith).

Councillor Tangi Utikere left the meeting at 2.52pm

Councillor Vaughan Dennison left the meeting at 2.54pm

26-19

Quarterly Performance and Finance Report - Quarter Ending 31 March 2019

Memorandum, dated 9 April 2019 presented by the Finance Manager, Stuart McKinnon and the Head of Community Planning, Andrew Boyle.

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the Committee receives the March 2019 Quarterly Performance and Financial Report.

Clause 26-19 above was carried 12 votes to 0, the voting being as follows:

For:

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

Councillor Jim Jefferies left the meeting at 3.26pm

27-19

Treasury Report - 9 months ended 31 March 2019

Memorandum, dated 3 April 2019 presented by the Chief Financial Officer, Grant Elliott.

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the performance of the treasury activity for the 9 months ended 31 March 2019 be noted.

Clause 27-19 above was carried 11 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Susan Baty, Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Lew Findlay QSM, Leonie Hapeta, Lorna Johnson, Karen Naylor and Bruno Petrenas.

28-19

External Fundraising Update

Memorandum, dated 29 March 2019 presented by the Commercial Advisory Manager, Fiona Dredge.

Councillor Tangi Utikere entered the meeting at 3.41pm

Moved Karen Naylor, seconded Rachel Bowen.

The COMMITTEE RESOLVED

1. That the memorandum titled `External Funding Update’ dated 29 March 2019 be received for information.

Clause 28-19 above was carried 12 votes to 0, the voting being as follows:

For:

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

29-19

Committee Work Schedule

Moved Leonie Hapeta, seconded Susan Baty.

The COMMITTEE RESOLVED

1. That the Finance and Performance Committee receive its Work Schedule dated April 2019.

Clause 29-19 above was carried 12 votes to 0, the voting being as follows:

For:

Exclusion of Public

30-19

Recommendation to Exclude Public

Moved Susan Baty, seconded Rachel Bowen.

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
13.	CET Arena Artificial Pitch Project Update	Commercial Activities	s7(2)(h)

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.

Committee Administrators (Penny Odell, Rachel Corser and Courtney Kibby), because of their knowledge and ability to provide the meeting with procedural advice and record the proceedings of the meeting.

Property Manager (Bryce Hosking), 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 relates to his report.

Clause 30-19 above was carried 11 votes to 1, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Lew Findlay QSM, Leonie Hapeta, Lorna Johnson, Karen Naylor, Bruno Petrenas and Tangi Utikere.

Against:

Councillor Brent Barrett.

The public part of the meeting finished at 3.49pm

Confirmed 20 May 2019

Chairperson

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 17 June 2019

TITLE: Update on College Street Transport Upgrade

DATE: 7 June 2019

Presented By: Robert van Bentum, Transport & Infrastructure Manager, Infrastructure

APPROVED BY: Tom Williams, Chief Infrastructure Officer

RECOMMENDATION(S) TO Finance and Performance Committee

1. That the memorandum titled `Update on College Street Transport Upgrade’ dated 7 June 2019 be received.

1. ISSUE

1.1 Council has approved works funded from several programmes to upgrade College Street to improve safety for all road users. The primary focus of the project is improving safety for bus passengers by installation of bus bays and for cyclists by providing buffered cycle lanes and removing conflicts with parked cars. The design process has also sought to balance the needs of vehicle traffic with minimising the impact of the project on the provision of on-street parking.

1.2 The project is being implemented in two stages:

· Stage 1. Maxwell’s Line to Botanical Road and Batt St to Albert St (underway)

· Stage 2 Botanical Road to Batt Street (deferred to provide for a review of design options)

1.3 The decision to split the project was taken to enable a review of the design for Stage 2 to be undertaken to consider further the feedback received over the loss of on-street car parks. It was hoped to identify whether there were any alternative options to deliver the same safety outcomes for active transport users with reduced impacts on parking.

1.4 Work has been progressing with Stage 1. Although there is a more limited loss of on-street parking in these sections of College Street, some residents, community users and businesses have raised concerns about the impact of the loss of parking on specific user groups. This report provides detail on the consultation and engagement that has been undertaken, the mitigations considered and the assessed impact of the loss of parking. The report also provides an update on progress with physical work and project expenditure on Stage 1 and initial assessments for Stage 2.

2. BACKGROUND

2.1 The College Street Transport Upgrade project has been in planning for some two years. The final project cost is still uncertain as the final design and cost for Stage 2 has yet to be finalised. The current estimate for the project with no allowance for parking loss mitigation, is $1,000,000. The project is being funded over two financial years 2018-19 and 2019-20 from two Council programmes. A summary of the budget allocations is provided in Table 1.

Table 1 College Street Transport Upgrade – Budget Provision

Programme	FY 2018/19	FY 2019/20	Totals
Programme 1216 – City Wide Additional Cycle Lanes	$7,000*	$104,000	$111,000
Programme 279 – City Wide – Minor Road Safety Improvements	$325,000	$574,000	$899,000
Totals	$332,000	$678,000	$1,000,000

*Remainder of 2018/19 budget spent on line marking cycleways elsewhere in the city

2.2 The scope of works includes installation of indented bus bays, modifications to existing pedestrian refuges, signage and line-marking removal and installation. There is no provision for any work to alter the kerb line on either side of the road to provide for improved parking outcomes. The work receives subsidy from NZTA based on its contribution to improved safety for active transport users.

3. Consultation and Engagement

3.1 Council Officers have undertaken wider community engagement and focussed consultation on the project since early 2018. A summary of the key consultation and engagement is provided as follows:

3.1.1 Initial consultation on the project began in early 2018 with a hand delivered letter drop. Officers delivering the letters discussed key aspects of the proposals with community members and business owners of the Churches and businesses at Awapuni (Pitma Shops) encountered during the letter delivery.

3.1.2 A public meeting was held in May 2018, in response to concerns from residents in the Batt to Botanical section of College Street about the loss of on street parking. The meeting was attended by residents and cycling advocates and a wide range of views were canvassed. Following the meeting Officers elected to defer the Botanical to Batt section of the project to provide an opportunity to consider design alternatives which might reduce the loss of on-street parking.

3.1.3 Ongoing consultation through site visits with residents and email/phone correspondence has continued for Stage 1 works. The feedback from this engagement was incorporated into a revised design for Stage 1 of the project which was released in September 2018. The revised design was shared with the “People on Bikes” Forum members.

3.1.4 Detail design of Stage 1 completed and the project tendered in early 2019.

3.1.5 The detailed designs were reviewed at the time of tender and the specific additional impacts on parking not highlighted during the first period of consultation were identified. A further round of letters was hand delivered to effected residents to make them aware of the changes.

3.1.6 At the same time, residents along the entire length of College Street (including Batt to Botanical) were provided with an update on the project. It is at this time that the Churches and shops in Awapuni became aware of the changes and additional parking impacts.

3.1.7 The design for stage 1 currently being implemented is as consulted on in September 2018, with the only difference being the removal of a further 2 carparks at the Awapuni shopping centre in front of the Chemist.

3.2 Since concerns were raised by the members of the affected churches and businesses, Officers have had meetings on site with all parties and communicated with the affected parties by phone and email to report on the outcomes of further investigations and assessments. All the concerns relate to the loss of parking (18 spaces comprising 8 marked spaces and 10 unmarked) in the immediately vicinity of the shopping centre and churches within College Street. Following the meetings Officers agreed to undertake some further work:

· Complete specific parking surveys in the Awapuni shopping area to assess the current level and pattern of parking occupancy and the potential impact of the project

· Consider changes to mitigate the loss of parking

4. Parking Surveys

4.1 A survey of parking availability and occupancy was undertaken for the entire length of College Street in March 2018. This indicated low levels of occupancy with no more than 25% (54) of the estimated 215 parking spaces between Maxwell’s Line and Botanical Road being occupied at any time during the day. It was this data that provided confidence to Officers that modest reductions in parking availability would not result in material impacts to residents and users for most of the time. It was always acknowledged that on one off occasions, the reduced parking availability would require users to park at some distance from residences and businesses.

4.2 More recently, in response to the concerns of Awapuni Churches and businesses, Officers completed two further parking surveys on 16 April 2019. The surveys recorded the level and duration of car-park use in the area.

4.3 Officers estimate there to be 194 car parks (114 public & 80 private) within approximately 200m of the shopping centre. The project will reduce that number by 15 to 179 spaces approximately which is a reduction of less than 8 %.

4.4 The key findings from the shopping centre parking surveys include:

· There are approximately 114 on-street car parking spaces within the surveyed area and more at distances greater than 200m. Of these 114 parking spaces, 18 are located on College Street in the immediate vicinity of the shopping centre.

· Of the 18 parking spaces on College Street, between Panako and Miles, the upgrade will result in the loss of 15, with 3 remaining. The 15 parking spaces lost are all within 100m of the shops, garage and church.

· A maximum of 39% of the car parks surveyed were occupied at any one time during the survey. During the survey peak period, 16 of the 18 spaces (89%) on College Street were utilised.

· On-street parking in the immediate vicinity of the shopping centre is largely utilised by employees of the businesses in the area and these are generally occupied all day. The survey identified 11 of the 18 on-street College Street car parks were occupied all day, indicating that only 5 car parks were routinely used by customers.

· The side roads of Miles, Nairn, Panako and Pitama Road have significant parking capacity and are currently underutilised. The furthest walking distance from these parks to the shops is 450m (approximately 6 minutes walking time).

· During the survey peak parking demand period, at least 67 parking spaces were available within these streets. The parking demand during the survey peak demand period could all be accommodated in side streets within 200m walk from the businesses.

4.5 The parking survey confirms that much of the affected car parking on College Street is occupied by staff and employees of the businesses. If staff and employees were to park in the side streets at a distance from the shopping centre, then that there more than adequate parking to accommodate typical demand at any time.

5. Mitigation measures considered

5.1 During the engagement with Awapuni Shopping centre business owners and users, several mitigation strategies to reduce the loss of parking were proposed including:

· Construction of traffic calming creating a shared space for cyclists and vehicles as has been recently implemented in Cuba Street

· Construction of indented parking

· Installation of time limited parking for all parking within 100m of the shopping centre

5.2 Officers have considered and assessed the feasibility, practicality and cost of these options as follows.

5.3 Traffic Calming: While there are traffic calming treatments installed elsewhere in the city, e.g. Square and Cuba Street, these areas are specifically designed to be shared spaces for cyclists and traffic. To be effective and safe shared spaces require the road operating speed and traffic volume to be low. These conditions do not exist in College Street as it is a collector road and carries significant volumes of traffic including heavy vehicles. Officers consider that transitioning the cycle lanes to a shared space outside the shopping precinct would provide both an uncomfortable and unsafe environment for cyclists and will result in a slowing of traffic movement.

5.4 Indent Parking: Officers have considered options for constructing indented car parking outside 105-107, 92-96 and 115 - 117 College Street. The assessment identified that:

· indented parking outside 105-107 could accommodate up to 4 parks, with the removal of a tree and at a cost of around $40,000. However, the parking need on this side of College Street is low as existing parking here is utilised all day

· reinstatement of 6 parks outside 92-96 College Street could be achieved with realignment of the kerb and removal of a tree, as well as by reducing footpath width to 2.4m, at an estimated cost of around $50,000. These parks would be more appropriate as they can provide for customer parking.

· indented parking outside 115/117 could accommodate up to 4 parks, however it is not recommended as it would requiring a reduction in footpath width to 1.45m

5.5 The only option which is considered to have some merit is the provision of some indented parking at 92 to 96 College Street. It remains the Officer’s view however that there is adequate existing parking in the side streets to accommodate current demand. It should also be noted that provision of parking is not a cost eligible for NZTA funding support. To give effect to this requirement will require approval of separate and additional funding.

5.6 Time Limited Parking: Implementation of time limited P30 or P60 parking restrictions would be relatively straightforward although there would be a cost for signage and an on-going cost for compliance, which will require additional operating budget.

5.7 Officers consider that given the parking surveys have indicated there is adequate parking in close proximity (within 200m) of the shopping centre, that implementation of time limited parking would ensure that nearby parking is available for short stay customers and users, rather than staff and employees of the businesses.

6. project progress

6.1 Work is well advanced on construction of the 11 indented bus bays within stage 1 of the project. Construction of 4 bus bays have been completed and the remaining 7 are well on track to be completed by the end of the financial year. Removal of trees and relocation of signs and street lights has been required in some locations.

6.2 The balance of the work comprises line marking. For the section of College Street from Fitzherbert to Victoria, the road was planned to be re-sealed this year however this cannot now occur given the cool and wet weather conditions. The re-sealing will now occur in October or November and line marking of this section will be undertaken at that time immediately following sealing.

6.3 For the section of College Street from Maxwell’s Line to Botanical, where the line marking needs to be altered, work to remove and then reinstate new line marking will be undertaken in the current financial year.

6.4 The total estimated cost for Stage 1 of the project based on the current scope of work is $582,000 with $387,000 to be spent from the 2018/19 budgets and the balance of $195,000 from the 2019-20 programme budgets. Around 95% of the 2018/19 budget will be spent by 30 June.

7. Stage 2 of College Street Transport Upgrade

7.1 A review has been completed of the Botanical to Batt section of College Street. This has confirmed that the road width is such that buffered cycle lanes on both sides of the road can only be provided by elimination of all the existing parking on this section of College Street.

7.2 The current number of car parks in this section is approximately 124. If the car parks within 50m of a side street are ignored on the basis that on-street parking in the side street is adequate to compensate for the loss, the total current effective number os car-parks in this section is 108.

7.3 The original parking survey for College Street, indicated that typical occupancy and therefore demand is around 25% or 27 car parks. Officers have considered the road alignment and identified that if 27 on-street parks are to be provided by way of indented car parks, the most cost-effective option would comprise provision of alternating blocks of parking in locations with few obstructions e.g. trees and street lights and available berm width.

7.4 Approximately 7 locations have been initially identified which could yield up to 31 car parks in total. The rough order estimate for implementing all the additional parking is $250,000. As already signalled, there is no budget within the existing programmes for this work, and as it would not attract NZTA subsidy, a dedicated Council programme would be required to fund this work.

7.5 Officers propose to develop a range of options for the Stage 2 works, consult on these with the affected residents and then report back to Council on the recommended option, for endorsement and additional funding approval prior to proceeding with implementation.

8. Compliance and administration

Does the Committee 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
The recommendations contribute to Goal 2: A Creative and Exciting City
The recommendations contribute to the outcomes of the Creative and Liveable Strategy
Contribution to strategic direction	This programme contributes to delivery and utilisation of the Primary On-Road Cycling network by improving the level of service and safety for cyclists. This is achieved by delivering wider cycle lane width, reducing conflicts with stationary buses at bus stops and reducing conflicts between cyclists and parked cars. The ultimate objective in delivering an improved and safer cycling route is to encourage more commuters to shift from cars to cycling as their preferred commuter option.

Attachments

Nil

PALMERSTON NORTH CITY COUNCIL

Report

TO: Finance and Performance Committee

MEETING DATE: 17 June 2019

TITLE: BPO Quarterly Report

DATE: 6 May 2019

PRESENTED BY: Robert van Bentum, Transport & Infrastructure Manager, Infrastructure

APPROVED BY: Tom Williams, Chief Infrastructure Officer

RECOMMENDATION(S) TO Finance and Performance Committee

1. That the Committee receive the update for the Wastewater BPO Project as detailed in the report titled `BPO Quarterly Report’ dated 6 May 2019.

1. Report purpose

1.1 To purpose of the report is to provide an update to the Finance and Performance Committee of Council on the achievements of the Wastewater BPO Project for the period ending 31 April 2019. This is the first update for the calendar year and is intended to be provided on a quarterly basis and supplements the monthly Project Steering Group (PSG) Meetings and project workshops undertaken with full Council at key milestone stages of the Project.

2. Background and previous council decisions

2.1 Introduction

2.1.1 The Council is required to lodge an application for new resource consents for the Best Practicable Option (BPO) for the Totara Road Wastewater Treatment Plant, by 30 June 2022.

2.1.2 The BPO Project was initiated in 2017 and has progressed to date, in line with the Project Programme adopted by the Council (refer Attachment 1). To date, all the key tasks within the control of the Project Manager and the project Technical Team, have been achieved within this Programme.

2.1.3 The 2018/28 Long Term Plan confirmed an annual budget of $1,244,000 for the 2018/19 Financial Year.

2.2 Identification of BPO Options

2.2.1 In August 2018, the PSG adopted the recommended methodology to develop the Best Practicable Option (BPO) (refer Attachment 2).

2.2.2 Between September and December 2018, the Projects Technical Team worked with stakeholders to develop the preliminary list of options (longlist) for the Wastewater BPO. A total of 34 options were developed across 6 categories. These categories included: Land, River, Groundwater, Ocean, Direct to Water Supply, Land and River combined. Sub-regional schemes and alternative treatment plant locations were options considered for all categories (refer Attachment 3).

2.2.3 This longlist was assessed by the technical team to determine options that had a ‘Fatal Flaw’. The fatal flaw criteria included:

· Significant increase in public health risk

· Significant increase in adverse environmental, cultural, social effects on the River

· Unproven technology

· Prevents growth and economic development in Palmerston North

· Absolutely un-consentable under the RMA

· Whole-of-life costs are absolutely unaffordable

2.2.4 An assessment of the longlist options was undertaken by the project technical team and Rangitane resulting in the identification of 8 options which it was considered should be fatally flawed. A Council workshop was held on 11 November 2018 and in addition to a briefing on each of the options, the initial assessment of the technical team and Rangitane was also presented to councillors. Council confirmed in principle a longlist of 26 options and endorsed the proposed removal of the 8 fatally flawed options. The longlist options were subsequently further refined and adjusted following the workshop during December and presented to the Council for adoption in December 2018.

2.2.5 During the period January to April 2019, the Project Team has completed technical analysis to develop comparative assessments of each of eight criteria namely: Public Health, Natural Environment, Maori Cultural Health, Social and Community Considerations, Financial Implications, Technology and Infrastructure, Resilience and Economic Growth and Development. Monthly PSG meetings continued to occur during this time.

2.2.6 The Project is now in the final stages of preparing the background information and assessments for each of the longlist options. The Project Steering Group, Technical Team and key stakeholders, are scheduled to meet on 3 May 2019 to workshop the longlist options and develop an initial shortlist of options.

2.2.7 The workshop will use a traffic light approach to score a selection of eight (8) criteria previously agreed by the PSG and Council in February 2019. Comparative assessments have been completed and will be presented by technical experts, which cover the following criteria: Public Health, Natural Environment, Maori Cultural Health, Social and Community Considerations, Financial Implications, Technology and Infrastructure, Resilience and Economic Growth and Development.

2.2.8 Following this initial workshop assessment, the options will be subjected to the further stage BPO test and then reported to the PSG for their final approval. The next stage in the confirmation of a shortlist will be a Council workshop, scheduled for 17 June 2019, to consider the recommended short list options. Following this it is hoped a final shortlist can be submitted to Council for formal approval and adoption at their meeting on 24^th June 2010.

2.3 Stakeholder Engagement

2.3.1 Consultation and engagement with key stakeholders commenced in August 2018 and has been ongoing. Introduction of the project to and establishment of initial relationships with key stakeholder groups, commenced in August 2018. Key stakeholders with whom the project has engaged include Horizons Regional Council, wider regional Iwi, Environment Network Manawatu, Manawatu River Leaders Accord members, neighbouring local councils, major trade waste businesses and Massey University. A stakeholder engagement report was prepared by Stantec in December 2018 that summarised engagement completed in 2018. This information was used to inform the development of the longlist.

2.3.2 Following an initial project launch in February 2019, there has been an on-going programme of communication and engagement with the wider community. This has generally focussed on website and social media channels, but been supplemented by print, radio and a wastewater treatment plant open day. With each stage and key milestone in the project, the web and communication content has been refreshed and amended.

2.3.3 Engagement with neighbouring Iwi began in March 2019 and will be ongoing. An Iwi advisor has been appointed to support the Project and is assisting the Principal Iwi Advisor in Council in fronting this engagement process.

2.3.4 One-to-one engagement with Horizons Regional Council, neighbouring local councils, Massey University, Environment Network Manawatu, Chamber of Commerce have been carried out in April 2019 and will continue.

2.3.5 Focused engagement will be undertaken with the trade waste sector in June and July 2019. This follows on from the successful workshop undertaken in November 2018 with major trade waste businesses.

2.3.6 A stakeholder management plan will be required for the Project from July 2019 covering the engagement necessary to develop the confirmed shortlist options should these be formally adopted and confirmed by Council on 24 June 2019.

2.4 Technical & Legal Review

2.4.1 All key technical deliverables documents prepared by the Technical consultants (Stantec) to the Project, have been reviewed by Mott McDonald. The recommendations have been reviewed by the Project Team and presented to the PSG. These will be managed as the Project continues to progress.

2.4.2 Simpson Grierson have been appointed as legal advisors to the Project. Reports have been provided to Simpson Grierson Consultants for review, which includes: Critical Statutory Planning and Consent Decisions Report, Alternatives Assessment Methodology and Consultation and Communications Plans. Comments have been received, which confirmed the planning and alternatives assessment approach, are robust and well prepared. Comments have been received with respect to the consultation plans, which have been addressed.

2.5 Financial Update

2.5.1 When the budget was allocated in July 2018 across work packages necessary to proceed to the recommended shortlist by June 2019, the work packages and resourcing for the project was based on the projects needs and best estimates. Budgets were developed with Stantec and every attempt was made with our lead consultants to reduce costs as much as reasonably possible, without compromising the Projects delivery. A large proportion of savings in the BPO Budget was made by prioritisation of tasks confirmed by the Project Manager and work undertaken by PNCC staff. This included:

- The Project Manager undertaking the technical planning work required for the comparative assessment (WP14)

- Trade Waste Officer and Project Manager undertaking the lead on investigating trade waste (flows and loads) (WP7.1)

- Stakeholder engagement is led by the Project Manager with minimal (but essential) support from Stantec’s Project Manager

2.5.2 As the Project has evolved, resourcing and requirements of the Project has advanced, requiring additional work to be carried out in some areas. In addition to the savings made in the above-mentioned work packages, over-allocation has been identified in the ‘Project Governance’ and ‘Shortlist Options’ budgets. This is because tasks that would have been allocated in Project Governance have been moved to Project Management and the shortlist Options will occur in the next financial year. I can confirm that there will be no additional budget before the end of the Financial Year is required within the existing work packages.

2.5.3 Re-allocation of the surplus budget has been completed to ensure expenditure exceeds budget in only a few minor areas. The revised budget was presented to the Project Steering Group at the May PSG Meeting (Financial Status report). The following lists the additional work packages that were completed this Financial Year and were above the original budget scoped:

· Legal Advisors appointment (Simpson Grierson)

· Additional policy and plan change review (Horizons One Plan)

· Consultation Management Software set up (Darzin)

· Iwi Advisor

· Mott MacDonald Reviews of technical work prepared by Stantec

3. Next actions

3.1 Following the Traffic Light Workshop with the PSG, Technical experts and stakeholders, the Longlist Options will be checked against the BPO objectives (BPO Test) and then reported to the PSG for their approval and confirmation. The draft shortlist will then be considered in a full Council workshop scheduled for 17^th June following which it is hoped that Council will approve adoption of the short list of options at the 24^th June Council meeting.

3.2 A Stakeholder Engagement Plan is required for the next stage of the Project from July onwards. This will be required to address sensitive matters, such as consultation with potentially affected land owners and Iwi, along with neighbouring Councils and wider interest groups in the Region.

Compliance and administration

Does the Committee 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
The recommendations give effect to the Wastewater BPO Project, which is required to obtain a new resource consent for the BPO by June 2022.

Attachments

1.	BPO Project Programme ⇩
2.	BPO Project Methodology for Options Development ⇩
3.	BPO Longlist Options Categories ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 17 June 2019

TITLE: Amendment to Fees and Charges

DATE: 30 April 2019

Presented By: Steve Paterson, Strategy Manager Finance, Finance

APPROVED BY: Grant Elliott, Chief Financial Officer

RECOMMENDATION(S) TO Council

1. That it be noted that at the Finance and Performance Committee meeting on 15 April 2019 oral advice was given that the fees and charges for online service consenting (Building Services) as identified on page 79 of the Finance and Performance Committee agenda dated 15 April 2019 should be amended with the following:

Value of work less than $125,000 $86

Value of work more than $125,000 up to $2.5m 0.0748%

Value of work more than $2.5m $1,868

2. That the fees and charges for Building Services effective from 1 July 2019 include the fees and charges for online consenting services at the levels outlined in recommendation 1.

1. ISSUE

At the meeting on 15 April 2019 the Committee considered a report titled “Fees and Charges Review” dated 29 March 2019 and recommended to the Council the adoption of the recommendations in the report. This recommendation was subsequently adopted by the Council on 29 April 2019.

It is not clear from the minutes of the meeting that the Chief Financial Officer, in introducing the report, orally identified some changes needing to be made to the fees scheduled in the report for Building services. This memo seeks to have the record made clear so that it is obvious from the paper trail that the fees and charges subsequently adopted by the Council include the changes identified at the meeting.

2. BACKGROUND

Page 79 of the agenda contained part of a schedule of proposed fees and charges for Building Services. In particular, it proposed the following fees and charges for online service consenting:

Value of work less than $125,000

Value of work more than $125,000 up to $2.5m

Value of work more than $2.5m

$75

0.065%

$1,625

The figures in this table are GST exclusive whereas the remainder of all the fees and charges in the schedule were GST inclusive. They should have been shown GST inclusive as follows:

Value of work less than $125,000

Value of work more than $125,000 up to $2.5m

Value of work more than $2.5m

$86

0.0748%

$1,868

3. NEXT STEPS

The updated fees and charges will be implemented effective from 1 July 2019 as adopted by the Council.

4. Compliance and administration

Does the Committee have delegated authority to decide?		No
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
The recommendations contribute to Goal 5: A Driven and Enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
Contribution to strategic direction	Not applicable

Attachments

Nil

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 17 June 2019

TITLE: Palmerston North Airport Ltd - Final Statement of Intent for 2019/20

DATE: 5 June 2019

Presented By: Steve Paterson, Strategy Manager Finance, Finance

APPROVED BY: Grant Elliott, Chief Financial Officer

RECOMMENDATION(S) TO Council

1. That the Palmerston North Airport Ltd Statement of Intent for 2019/20 be endorsed.

1. ISSUE

Palmerston North Airport Ltd (PNAL) as a Council controlled trading organisation is required to prepare and adopt a Statement of Intent (SOI) each year before 30 June. The final SOI for 2019/20 is attached for Council endorsement.

2. BACKGROUND

PNAL’s draft SOI for 2019/20 was considered by the Finance & Performance Committee on 18 March 2019. The draft was received and its assumptions endorsed.

PNAL’s Board has reconsidered the draft and made a number of changes which are outlined in the introductory letter dated 5 June 2019 from the Chief Executive. The changes mainly reflect an updating of the timing and scale of the proposed capital expenditure programme but also incorporate updated performance targets. Total passenger movements have been revised downward by approximately 1.7% reflecting Air New Zealand’s recently announced planned capacity reductions on Palmerston North routes.

The overall thrust of the SOI is unchanged.

3. NEXT STEPS

PNAL will make their final SOI publicly available as required by the Local Government Act.

It is intended that PNAL’s annual report for the year to 30 June 2019 will be considered by the Finance & Performance Committee at its September meeting.

4. Compliance and administration

Does the Committee 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
The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the outcomes of the City Development Strategy
The recommendations contribute to the achievement of action/actions in the Strategic Transport Plan The action is: Work with the airport company to ensure the airport’s strategic intent aligns with the City’s aspirations
Contribution to strategic direction	The airport is a key strategic gateway to the City

Attachments

1.	Cover letter from PNAL ⇩
2.	Final SOI for 2019-20 ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 17 June 2019

TITLE: Fees and Charges - Confirmation Following Public Consultation

DATE: 5 June 2019

Presented By: Steve Paterson, Strategy Manager Finance, Finance

APPROVED BY: Grant Elliott, Chief Financial Officer

RECOMMENDATION(S) TO Council

1. That the fees and charges for Planning & Miscellaneous Services, as scheduled in Attachments A and B of the memorandum titled `Fees and Charges – Confirmation Following Public Consultation’ dated 5 June 2019, be approved, effective from 1 July 2019.

2. That the fees and charges for Trade Waste Services, as scheduled in Attachment C of the memorandum titled `Fees and Charges – Confirmation Following Public Consultation’ dated 5 June 2019, be approved, effective from 1 July 2019.

1. ISSUE

At its meeting on 29 April 2019 the Council approved fees and charges for planning and miscellaneous services and for trade waste services, all subject to public consultation. This memo addresses submissions received and recommends confirmation of the fees and charges as attached.

2. BACKGROUND

2.1 Previous Council Decisions

On 29 April 2019 Council adopted recommendations from the 15 April 2019 meeting of the Finance and Performance Committee. These approved a schedule of fees and charges for planning and miscellaneous services and trade waste services subject to public consultation.

2.2 Public Consultation

Public consultation was carried out over the period from 1 May to 4 June 2019. It involved direct written communication with planning consultants as well as public notices in local media and on Council’s website.

No submissions were received.

No changes are recommended to the fees provisionally adopted at the April meeting as a consequence of the public consultation process.

3. NEXT STEPS

Once approved the fees and charges will be published on Council’s website and in all relevant fees and charges brochures and implemented from 1 July 2019.

4. Compliance and administration

Does the Committee have delegated authority to decide?		No
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?		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
The recommendations contribute to Goal 5: A Driven and Enabling Council
The recommendations contribute to the outcomes of the Driven and Enabling Council Strategy
The recommendations contribute to the achievement of action/actions in Not Applicable
Contribution to strategic direction	Setting fees and charges as proposed is consistent with the Council’s Revenue & Financing Policy and therefore with the strategic direction of the Council.

Attachments

Attachments A & B - Planning & Miscellaneous fees & charges
Attachment C - Trade Waste fees & charges ⇩

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 17 June 2019

TITLE: Papaioea Place Redevelopment Quarterly Update

DATE: 8 May 2019

Presented By: Bryce Hosking, Property Manager, Infrastructure

APPROVED BY: Tom Williams, Chief Infrastructure Officer

RECOMMENDATION(S) TO Finance and Performance Committee

1. That the memorandum dated 8 May 2019 and titled `Papaioea Place Redevelopment Quarterly Update’ be received for information.

1. ISSUE

1.1 Stage 1 of the Papaioea Place housing project is funded through Programmes 357 and 1277 – C/fwd of the 2018 10-Year Plan.

1.2 The Finance and Performance Committee Chairperson has requested a quarterly update to be brought back to the Finance and Performance meeting for the duration of the construction period.

1.3 The Construction Programme was received from Latitude Homes in June and presented to Finance and Performance at the 18 June 2018 meeting for information.

2. BACKGROUND

2.1 The Papaioea Place project form of contract is a design and build contract between Palmerston North City Council (Principal) and Latitude Homes (Contractor) of New Plymouth.

2.2 The overall project management is being provided by WT Partnership Advisory. The day-to-day project management is being carried out by Council Officers.

2.3 Site meetings and Project Control Group meetings are held on the last Thursday of each month. This report is a summary from 7 May 2019.

3. SUMMARY – PROJECT CONTROL GROUP REPORT 11: 7 MAY 2019

Health and Safety

3.1 There have been no health and safety incidents reported since the last update to Council dated 28 February 2019.

Programme

3.2 Blocks 1 and 2 of Stage 1 (30 units) were completed by 28 February 2019 as planned.

3.3 Works are underway for Blocks 3 and 4 of Stage 1 (20 units). Blocks 3 and 4 are due for completion in December 2019.

3.4 Asbestos removal in the old units is complete.

3.5 Excavation of the site is complete.

3.6 Currently 10 days behind schedule due to additional asbestos removal and with unavailable sub-contractors over the Easter/ Anzac week. Contractors are confident of picking up these delays.

Regulatory

3.7 Code of Compliance Certificates have been issued for Blocks 1 and 2.

Design

3.8 Concept design for Stage 2 is currently progressing. Concept is to be completed and priced in May 2019.

3.9 Providing funding for Stage 2 is brought forward into the 2019/20 year as proposed in the draft annual plan, Stage 2 can begin in January/ February 2020 upon the conclusion of Stage 1.

Financial

3.10 Variations to date:

Description	Amount ($)
Excavation of soft spots/ Asbestos removal	$37,854
Provision for Sky TV connections	$4,760
Additional light switches	$5,040
Renewal extension of contractor’s professional indemnity insurance (1yr given need to extend contract period)	$9,311
Bond in lieu of retentions	$3,500
Curtains	$67,500
Chorus Connections	$60,000
Landscaping	$36,000
Concept Design for Stage 2	$38,950
Additional Authority Fees for Concept Design – Stage 2	$1,626
Total	$264,541

3.11 These variations have been accommodated within the project contingency.

3.12 An overview of the Project Budget Status is in the table below:

Description	Project Budget	Budget Variance	Final Forecast
Construction	$6,646,031	$223,965	$6,869,996
Professional Fees	$265,400	$38,950	$304,350
Authorities Fees	$55,000	$1,626	$56,626
Construction Contingency	$332,561	$223,965	$108,596
Project Contingency	$333,000	$40,576	$292,424
Total	$7,631,992	$0	$7,631,992

4. NEXT STEPS

4.1 Continue the construction programme to complete Stage 1 as per the budget and timeline.

5. Compliance and administration

Does the Committee 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
The recommendations contribute to Goal 3: A Connected and Safe Community
The recommendations contribute to the outcomes of the Connected Community Strategy
The recommendations contribute to the achievement of action/actions in the Social Housing Plan The action is: Upgrade the Papaioea housing complex (by end of 2018/2019).
Contribution to strategic direction	Programme 357 is stage 1 of the Papaioea Place Redevelopment project – to demolish 32 existing units and create 50 new units in their place which will be suitable for tenants to age in place.

Attachments

Nil

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 17 June 2019

TITLE: Camp Kilsby Scouting NZ: Application for Grant from Council to fund Development Contribution Fee

DATE: 31 May 2019

Presented By: David Murphy, City Planning Manager, Strategy & Planning

APPROVED BY: Sheryl Bryant, General Manager - Strategy & Planning

RECOMMENDATION(S) TO Council

1. That the Council approve the application by the Camp Kilsby - Scouting NZ for a grant to fund Development Contribution fees, to the value of $4,136.25 (GST inclusive), associated with the establishment of a community and leisure facility scouting hall at 315 Hewitts Road, Palmerston North

1. ISSUE

Manawatu Scouting has relocated the former Linton Scout Hall to Camp Kilsby. The hall had to be removed from its former site at the request of the Ministry of Education. The relocation triggered the need for resource and building consents. The building consent triggered a Development Contribution fee of $4,136.25 (GST Inclusive) for transport, which must be paid before Council issues a Code of Compliance Certificate. On 30 May 2019 Camp Kilsby Scouting NZ requested that the Finance and Performance Committee consider an application for a grant to cover the Development Contribution fees. The request is attached to this memo.

2. BACKGROUND

In 2017, Manawatu Scouts moved a building previously used as the Linton Scout Hall to Camp Kilsby at 315 Hewitts Road, Palmerston North. The hall has been unused while reinstatement fundraising has been undertaken and building and resource consents sought.

On the 18^th of January 2019 Council granted building consent.

On the 22^nd of January 2019 Council issued a tax invoice for a Development Contribution charge of $4,136.25 (inclusive of GST). This charge is the subject of the request by Camp Kilsby Scouts NZ.

On the 9^th of April 2019 Council approved a resource consent for the establishment of a community and leisure facility (the scout hall) at 315 Hewitts Road, Palmerston North.

3. COMMUNITY FUNDING POLICY 2018

The Community Funding Policy 2018 provides a framework for considering grants for Development Contribution fees. Camp Kilsby Scouts NZ meets the eligibility criteria for requesting a grant because they are a ‘community organisation’, as defined in the policy. Community organisations seeking assistance must be using the building or facility that is the subject of the development contribution in a way that contributes to Council’s strategic direction. The request aligns with Council’s Connected Community Strategy (to achieve Goal 3: A connected and safe community), which seeks to develop facilities that create connected, welcoming and inclusive community (Priority 1).

A Development Contribution Fees Grant is a ‘one-off’ grant that is credited towards the development contribution fee on behalf of a successful applicant. The grant is not paid directly to the recipient organisation. Applications must be referred to the Finance Committee who will assess applications and award the grant accordingly. Applications can be accepted all year round until the fund has been fully allocated each financial year. A $25,000 grant fund exists in the 2018-19 financial year specifically for Development Contribution Fees. No applications have been received or approved in 2018-19. The June 2019 Finance and Performance Committee meeting is the last opportunity to allocate grant funding for the 2018-19 financial year.

4. NEXT STEPS

That the Council approve the application by the Camp Kilsby - Scouting NZ for a grant to fund Development Contribution fees, to the value of $4,136.25 (GST inclusive), associated with the establishment of a community and leisure facility scouting hall at 315 Hewitts Road, Palmerston North.

5. Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		No
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
The recommendations contribute to Goal 3: A Connected and Safe Community
The recommendations contribute to Goal 3: A Connected and Safe Community
The recommendations contribute to the outcomes of the Connected Community Strategy
The recommendations contribute to the achievement of action/actions in the Community Support Plan The action is: Implement the community funding policy
Contribution to strategic direction	Grant funding will assist Camp Kilsby Scouts NZ to be able to adapt and take advantage of opportunities and respond to challenges, which is an identified position of where Council “wants to be” in the Community Support Plan.

Attachments

DC Grant Application - Camp Kilsby Scouting NZ ⇩

Susan Baty (Chairperson)
Jim Jefferies (Deputy Chairperson)
Grant Smith (The Mayor)
Adrian Broad	Leonie Hapeta
Gabrielle Bundy-Cooke	Lorna Johnson
Vaughan Dennison	Karen Naylor
Lew Findlay QSM	Bruno Petrenas