Minutes of Council - 24 00 2020

Palmerston North City Council

Minutes of the Council Meeting Part I Public, held in the Elwood Room, Conference & Function Centre, 354 Main Street, Palmerston North on 24 June 2020, commencing at 9.00am

Members

Present:

The Mayor (Grant Smith) (in the Chair) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Declarations of Interest

Councillor Rachel Bowen declared an interest in Item 22, Appeal to Plan Change C: Kākātangiata Stage 1: Kikiwhenua Residential Area (Clause 78). She was a member of the Hearings Panel that determined this consent. She did not participate in discussion and left the room during the determination of this item.

Councillor Lorna Johnson declared an interest in Item 22, Appeal to Plan Change C: Kākātangiata Stage 1: Kikiwhenua Residential Area (Clause 78). She was a member of the Hearings Panel that determined this consent. She did not participate in discussion and left the room during the determination of this item.

Councillor Vaughan Dennison declared an interest in Item 18 Presentation of the Part 1 Public Finance and Audit Committee Recommendations from its 17 June 2020 Meeting (Clause 71). He works at the Homes for People Trust and withdrew from the vote.

The Council noted the declarations of interest.

57-20

Notification of Additional Item

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the following late items be received.

· Item 26: Amendment to the Council and Committee Meeting Schedule for 2020.

The reason for lateness was a clerical error and the reason why it needed to be considered at this meeting was to ensure the public are notified of the meetings within the appropriate notice period.

· Tabled Item: Recommendations from Infrastructure Committee Part II – 3 June 2020.

The reason for lateness was to correct delegation to Committee and the reason it needs to be considered at this meeting was to allow the project to progress in a timely manner.

Clause 57-20 above was carried 16 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Tangi Utikere, Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

58-20

Presentation - Queen's Birthday Honours

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That Council note that congratulations have been conveyed on behalf of the Council to the local recipients of the Queen’s Honours 2020.

Clause 58-20 above was carried 16 votes to 0, the voting being as follows:

For:

59-20

Confirmation of Minutes

The amended minutes were tabled at the meeting, which included the division of voting on clause 49-20.

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the minutes as amended of the ordinary meeting of 27 May 2020 Part I Public be confirmed as a true and correct record.

Clause 59-20 above was carried 16 votes to 0, the voting being as follows:

For:

Reports

60-20

Revisions to Annual Budget (Plan) 2020/21

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That recommendation 3 from the Committee of Council meeting on 10 June 2020 be amended to update the figures shown as $3.95m and $6.84m to be $3.6m and $7.5m respectively.

Clause 60-20 above was carried 16 votes to 0, the voting being as follows:

For:

61-20	Committee of Council Part I Public - 10 June 2020 Consideration was given to Committee of Council recommendations as appended to these minutes.
	Moved Grant Smith, seconded Tangi Utikere. RESOLVED 1. That clause 14.2 be adopted.
	Clause 61.1 above was carried 13 votes to 3, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Tangi Utikere, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Billy Meehan, Karen Naylor and Bruno Petrenas. Against: Councillors Brent Barrett, Lorna Johnson and Aleisha Rutherford.
	Moved Grant Smith, seconded Tangi Utikere. 2. That the balance of the Committee’s recommendations and amendments be adopted.
	Clause 61.2 above was carried 16 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Tangi Utikere, Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

62-20

Setting Rates for 2020/21

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the resolution to set the rates for the 2020/21 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.

Clause 62-20 above was carried 12 votes to 4, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Tangi Utikere, Susan Baty, Rachel Bowen, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Billy Meehan, Karen Naylor and Bruno Petrenas.

Against:

Councillors Brent Barrett, Zulfiqar Butt, Lorna Johnson and Aleisha Rutherford.

63-20

Resolutions to Authorise Borrowing

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That Council authorise the Chief Executive to borrow, in accordance with delegated authority, up to $36 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.

2. That Council note that the purpose of the Borrowing is the carrying out or continuing of programmes identified in the Annual Budget for the 2020/21 year.

3. That Council note that the security for the Borrowing may be the charge over rates under the Debenture Trust Deed if the Chief Executive considers appropriate.

4. That Council note that the benefits of the Borrowing are that it will enable the Council to carry out the programmes identified in the Annual Budget 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.

5. That Council approve that having regard to the Council’s financial strategy, it is prudent and reasonable to enter into the proposed borrowing for the reasons set out in this report.

6. That Council note that the raising of the Borrowing will comply with the Council's Liability Management Policy.

7. That Council note that the decision to borrow up to $36 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.

Clause 63-20 above was carried 16 votes to 0, the voting being as follows:

For:

64-20

Proposed changes to foundation policies for Local Government Funding Agency (LGFA)

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That Council support the Local Government Funding Agency (LGFA) proposal as follows:

· To increase the foundation policy financial covenant net debt/total revenue from the current 250% to 280% for local authorities with a long-term credit rating of ‘A’ equivalent or higher;

· That until 2025/26, local authorities with a long-term credit rating of ‘A’ equivalent or higher must comply with the “Alternate Net Debt/Total Revenue covenant” as below:

Alternative Net Debt / Total Revenue Covenant
Financial Year (Test Date)	Net Debt / Total Revenue
30 June 2020	<250%
30 June 2021	<300%
30 June 2022	<300%
30 June 2023	<295%
30 June 2024	<290%
30 June 2025	<285%

· That the amended foundation policy covenant of 280% will apply in the 2025/26 financial year and annually thereafter.

Clause 64-20 above was carried 16 votes to 0, the voting being as follows:

For:

65-20

Alteration to Standing Orders - remote participation

Memorandum, presented by Hannah White, Democracy and Governance Manager.

Council discussed how much discretion the Chair should have to refuse a member from participation electronically in a meeting. Council amended the proposed changes to Standing Orders to stipulate that Chairs must advise the committee of any requests to participate remotely and the reasons for their decision.

The meeting adjourned at 10.25am.

The meeting resumed at 10.45am.

Moved Aleisha Rutherford, seconded Lorna Johnson.

RESOLVED

1. Receive the report titled “Alteration to Standing Orders – remote participation” dated 24 June 2020.

2. Amend the Standing Orders to include Part 4 Remote Participation (Appendix 1 of the “Alteration to Standing Orders – remote participation” report dated 24 June 2020) with the following changes:

· 4.6 – Conditions for attending by audio or audio visual link

Noting Standing Order 4.7, members have the right to attend meetings be electronic link, with the approval of the Chairperson. Such approval is not to be unreasonably withheld.

At the commencement of a meeting the Chairperson will advise of any decisions made regarding any requests for the remote participation of a member, along with the reason(s) for the decision that the Chairperson has taken.

· 4.4 – Member’s status: voting

Where a meeting has a quorum, determined by the number physically present, the members attending by electronic link have full participation rights, with the exception of being counted towards the quorum.

· 4.6 and 4.8 – “and” to be replaced with “or”.

3. That Council and committee meetings in the 2019-2022 triennium be webcast and recorded.

4. Note that the Council Chamber will need the appropriate technology to be in place to allow remote participation.

Clause 65-20 above was carried 16 votes to 0, the voting being as follows:

For:

66-20

Review of Standing Orders

Report, presented by Hannah White, Democracy and Governance Manager.

Moved Grant Smith, seconded Leonie Hapeta.

RESOLVED

1. That the report “Review of Standing Orders”, presented to Council 24 June 2020 be received.

2. That Council appoint a Standing Orders Working Group (Option 2) consisting of the Deputy Mayor (lead), Councillor Handcock, Councillor Naylor and Councillor Rutherford to conduct a comprehensive review of the Council’s Standing Orders.

3. That Council approve the Terms of Reference of the Standing Orders Working Group (as attached in Appendix 1).

4. That Council notes the Standing Orders Working Group will report their recommendations back to Council in October 2020.

Clause 66-20 above was carried 16 votes to 0, the voting being as follows:

For:

67-20

Remits to Local Government New Zealand 2020 Annual General Meeting

Memorandum, presented by Hannah White, Democracy and Governance Manager.

The Council queried how Council’s own remits had progressed and were informed that the process had stalled due to the Covid-19 lockdown. Council asked officers to produce a clearer timeframe for submitting future remits and requested that remits be added as a standing item on the Council’s work schedule.

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the Council endorses the following remits to be submitted by Whanganui District Council to the Local Government New Zealand Annual General Meeting on 21 August 2020

1) Four-year election cycle

2) Loans for low-cost housing

3) Measuring and reporting on Local Government’s CO2 emissions

4) Rates rebates for low income property owners

Clause 67-20 above was carried 16 votes to 0, the voting being as follows:

For:

68-20

Amendment to the Council and Committee Meeting Schedule for 2020

Memorandum, presented by Hannah White, Democracy and Governance Manager.

Moved Vaughan Dennison, seconded Aleisha Rutherford.

RESOLVED

1. Agree that the Rangitāne o Manawatū Committee will meet at 2pm on 29 July 2020 in the Function and Conference Centre.

Clause 68-20 above was carried 16 votes to 0, the voting being as follows:

For:

69-20

Council Work Schedule

Moved Grant Smith, seconded Tangi Utikere.

RESOLVED

1. That the Council receive its Work Schedule dated 24 June 2020.

2. That the LGNZ Remit item be added to the Work Schedule as a standing item.

Clause 69-20 above was carried 16 votes to 0, the voting being as follows:

For:

Recommendations from Committee Meetings

70-20

Economic Development Committee Part I Public - 3 June 2020

Consideration was given to Economic Development Committee recommendations as appended to these minutes.

Moved Tangi Utikere, seconded Leonie Hapeta.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 70-20 above was carried 16 votes to 0, the voting being as follows:

For:

71-20

Planning & Strategy Committee Part I Public - 10 June 2020

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

Moved Aleisha Rutherford, seconded Patrick Handcock ONZM.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 71-20 above was carried 15 votes to 0, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Tangi Utikere, Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

Abstained:

Councillor Leonie Hapeta.

72-20

Arts, Culture & Heritage Committee Part I Public - 10 June 2020

Consideration was given to Arts, Culture & Heritage Committee recommendations as appended to these minutes.

Moved Rachel Bowen, seconded Brent Barrett.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 72-20 above was carried 14 votes to 0, with 2 abstentions, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Tangi Utikere, Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Lorna Johnson, Billy Meehan, Karen Naylor and Bruno Petrenas.

Abstained:

Councillors Leonie Hapeta and Aleisha Rutherford.

73-20

Finance & Audit Committee Part I Public - 17 June 2020

Consideration was given to Finance & Audit Committee recommendations as appended to these minutes.

Moved Susan Baty, seconded Karen Naylor.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 73-20 above was carried 15 votes to 0, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

Abstained:

Councillor Tangi Utikere.

Note:

Councillor Vaughan Dennison declared a conflict of interest and withdrew from the discussion.

74-20

Play, Recreation & Sport Committee Part I Public - 17 June 2020

Consideration was given to Play, Recreation & Sport Committee recommendations as appended to these minutes.

Moved Leonie Hapeta, seconded Billy Meehan.

RESOLVED

1. That the Committee's recommendations be adopted.

Clause 74-20 above was carried 15 votes to 0, with 1 abstention, the voting being as follows:

For:

Abstained:

Councillor Tangi Utikere.

Exclusion of Public

75-20

Recommendation to Exclude Public

Moved Grant Smith, seconded Karen Naylor.

RESOLVED

“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 - 27 May 2020	For the reasons set out in the ordinary minutes of 27 May 2020, held in public present.
22.	Appeal to Plan Change C Kākātangiata Stage 1: Kikiwhenua Residential Area	Negotiations	s7(2)(i)
23.	Rotation of Trustees on Council Organisations	Privacy	s7(2)(a)
24	Presentation of the Part II Confidential Infrastructure Committee Recommendations - 3 June 2020	Commercial Activities	s(7)(2)(h)

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.

Clause 75-20 above was carried 16 votes to 0, the voting being as follows:

For:

The public part of the meeting finished at 11.31am.

Confirmed 26 August 2020

Mayor

Appendix One

Palmerston North City Council

Resolution to Set Rates for the 2020/2021 year

The Palmerston North City Council resolves to set rates for the financial year commencing on 1 July 2020 and ending on 30 June 2021 in accordance with the Rating Policies and Funding Impact Statement contained in its Annual Budget (Plan) 2020/21 as follows:

1 Details of rates to be set

Notes

· All rates and charges shown are inclusive of Goods and Services Tax.

· References to the ‘Act’ relate to the Local Government (Rating) Act 2002.

1.1 Uniform Annual General Charge

A Uniform Annual General Charge of $500 on each rating unit pursuant to section 15 of the Act.

1.2 Water Supply Rates

A targeted rate for water supply, set under section 16 of the Act, of:

· $255 per separately used or inhabited part of a residential rating unit which is connected to a Council operated waterworks system. This charge is not made where water supply is invoiced on the basis of water consumed.

· $255 per rating unit for all other rating units which are connected to a Council operated waterworks system. This charge is not made where water supply is invoiced on the basis of water consumed.

· $127.50 per rating unit which is not connected to a Council operated waterworks system but which is serviceable (i.e. within 100 metres of such waterworks system) and the Council would allow a connection.

Instead of the above targeted rates for metered water supply, targeted rates set under sections 16 and 19 of the Act, of $1.265 per cubic metre of water supplied to any rating unit that is invoiced on the basis of water supplied plus a fixed amount of $172.50 per metered connection for connections of 25mm or less and $375 for connections greater than 25mm.

1.3 Wastewater Disposal Rates

A targeted rate for wastewater disposal, set under section 16 of the Act, of:

· $241 per separately used or inhabited part of a residential rating unit which is connected to a public wastewater drain.

· $241 per rating unit for all other rating units which are connected to a public wastewater drain.

· $241 per pan (i.e. water closet or urinal) for all pans in excess of three for non-residential rating units connected to a public wastewater drain.

· $120.50 per separately used or inhabited part of a residential rating unit which is not connected to a public wastewater drain but which is serviceable (i.e. within 30 metres of such a drain) and the Council would allow the connection.

· $120.50 per rating unit for all other rating units which are not connected to a public wastewater drain but which is serviceable (i.e. within 30 metres of such a drain) and the Council would allow the connection.

1.4 Rubbish and Recycling Rates

1.4.1 Kerbside Recycling

A targeted rate for kerbside recycling set under section 16 of the Act of:

· $126 per separately used or inhabited part of a rating unit for residential properties receiving the Council’s kerbside collection service.

· $126 per rating unit for non-residential and rural/semi-serviced properties receiving the Council’s kerbside collection service.

Where ratepayers elect, and the Council agrees, additional levels of service may be provided. These additional services could be by way of provision of more recycling bins or more frequent service. Each additional level of service will be charged a rate of $126. This may include charges to non-rateable rating units where the service is provided.

1.4.2 Rubbish and Public Recycling

A targeted rate for rubbish and public recycling set under section 16 of the Act of $64 per separately used or inhabited part of each residential rating unit and $64 per rating unit for all other rating units. Rating units which are vacant land will not be liable for these rates.

1.5 Warm Palmerston North

A targeted rate set on all properties that have benefited from the installation of insulation through the Warm Up Palmy Home Insulation Scheme. The rate is calculated as a percentage of the service amount (the cost of the installation) until the service amount and the costs of servicing the serviced amount are recovered. For 2020/21 the rate will be 16%.

1.6 General Rate

A general rate pursuant to section 13 of the Act set on all rateable land on the basis of land value and assessed differentially (based on land use) against each property group code at the rate of cents in the dollar set down in the following schedule:

Differential Group		Differential Factor (expressed as % of Group Code MS)	Rate (cents in $ of LV)
Code	Brief Description		Rate (cents in $ of LV)
R1	Single unit residential	Balance (approx. 78)	0.5978
R2	Two unit residential	115	0.8766
R3	Three unit residential	125	0.9529
R4	Four unit residential	135	1.0291
R5	Five unit residential	145	1.1053
R6	Six unit residential	155	1.1816
R7	Seven unit residential	165	1.2578
R8	Eight or more unit residential	175	1.3340
MS	Miscellaneous	100	0.7623
CI	Non-residential (Commercial/Industrial)	265	2.0201
FL	Rural & Semi-serviced (5 hectares or more)	20	0.1525
FS	Rural & Semi-serviced (0.2 hectares or less)	60	0.4574
FM	Rural & Semi-serviced (between 0.2 & 5 hectares)	45	0.3430

2. Due Dates for Payment of Rates

Rates (other than metered water targeted rates) will be payable at the offices or agencies of the Council in four quarterly instalments on 1 August 2020, 1 November 2020, 1 February 2021 and 1 May 2021.

The due dates (i.e. final day for payment without incurring penalty) shall be:

Instalment One 28 August 2020

Instalment Two 27 November 2020

Instalment Three 26 February 2021

Instalment Four 28 May 2021

3. Due Dates for Payment of Metered Water Targeted Rates

Properties which have water provided through a metered supply will be invoiced either monthly or two monthly at the discretion of the Council.

The due date for metered water targeted rates shall be the 20^th of the month following invoice date as follows:

Monthly invoicing

Instalment

Date meter read & invoice issued

Due date

Instalment

Date meter read & invoice issued

Due date

June 2020

July 2020

August 2020

September 2020

October 2020

November 2020

20 July 2020

20 August 2020

20 September 2020

20 October 2020

20 November 2020

20 December 2020

December 2020

January 2021

February 2021

March 2021

April 2021

May 2021

20 January 2021

20 February 2021

20 March 2021

20 April 2021

20 May 2021

20 June 2021

Two monthly invoicing
Linton, East & North Rounds			Ashhurst, South West, PNCC & Central Rounds
Instalment	Date meter read & invoice issued	Due date	Instalment	Date meter read & invoice issued	Due date
1 2 3 4 5 6	June 2020 August 2020 October 2020 December 2020 February 2021 April 2021	20 July 2020 20 September 2020 20 November 2020 20 January 2021 20 March 2021 20 May 2021	1 2 3 4 5 6	July 2020 September 2020 November 2020 January 2021 March 2021 May 2021	20 August 2020 20 October 2020 20 December 2020 20 February 2021 20 April 2021 20 June 2021

4. Penalties on Unpaid Rates (excluding metered water)

A penalty charge of 10% will be added on the following dates to any portion of an instalment remaining unpaid after the due dates:

Instalment One 1 September 2020

Instalment Two 1 December 2020

Instalment Three 1 March 2021

Instalment Four 1 June 2021

Any penalty charge imposed on the outstanding first instalment will be automatically remitted provided payment of the full year’s rates is made by 27 November 2020.

A penalty charge of 10% will be added to any outstanding rates (including penalties) assessed in previous years and remaining outstanding at 2 July 2020 (penalty applied on 3 July 2020) and again on 4 January 2021 (penalty applied on 5 January 2021).

Penalties will not be applied to the metered water targeted rate.

24 June 2020