Agenda of Strategy & Finance Committee - Wednesday, 22 March 2023

Strategy & Finance Committee MEETING

22 March 2023

Order of Business

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. Petition: Over-utilisation of land – Kāinga Ora Housing Development at 16-24 South Street, Palmerston North Page 7

6. Hearing of Submissions: Amendments to the Traffic and Parking Bylaw 2018 (Light Motor Vehicle Prohibitions) Page 9

7. Hearing of Submissions: Railway Land Reserve - Proposal to grant a licence to Tekton Limited Page 13

8. Proposal to grant a licence to Tekton Limited - Summary of Submissions Page 51

Memorandum, presented by Bryce Hosking, Acting Chief Infrastructure Officer.

9. Amendment to the Traffic and Parking Bylaw 2018 (Light Motor Vehicle Prohibitions) - Summary of Submissions Page 59

Memorandum, presented by Stacey Solomon, Policy Analyst.

Reports

10. Quarterly Performance and Financial Report - Period Ending 31 December 2022 Page 107

Memorandum, presented by Scott Mancer, Finance Manager, Sue Kelly, Manager - Project Management Office and Andrew Boyle, Head of Community Planning.

11. Treasury Report - 6 months ending 31 December 2022 Page 173

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

12. Speed Management Plan - endorsement of scope and draft objectives and policies Page 185

Memorandum, presented by Peter Ridge, Senior Policy Analyst.

13. Review of the Palmerston North Animals and Bees Bylaw 2018 - s.155 LGA Determination Page 205

Report, presented by Stacey Solomon, Policy Analyst.

14. Adderstone Reserve - Decision on proposal to change part to housing Page 251

Report, presented by Kathy Dever-Tod, Group Manager - Parks and Logistics.

15. Part Waterloo Park - Proposal to exchange land Page 267

Report, presented by Kathy Dever-Tod, Group Manager - Parks and Logistics.

16. 53A and 55 Totara Road - Proposal to grant a lease to Manawatū Archery Club Incorporated Page 279

Memorandum, presented by Bryce Hosking, Acting Chief Infrastructure Officer.

17. 5 Andrew Avenue - Proposal to grant a lease on Council land to The Scout Association of New Zealand Page 283

Memorandum, presented by Bryce Hosking, Acting Chief Infrastructure Officer.

18. 53 Waldegrave Street - Proposal to grant a lease to Te Whare o ngā Wāhine Women’s Centre Incorporated Page 287

Memorandum, presented by Bryce Hosking, Acting Chief Infrastructure Officer.

19. 16 Featherston Street (part of Takaro Park) - Proposal to continue supporting the Takaro Sports Club by notifying the intention to grant community occupancy lease of Council land Page 291

Report, presented by Bryce Hosking, Acting Chief Infrastructure Officer.

20. 21 Guildford Street (part of Ashhurst Village Valley Centre), Ashhurst - Proposal to continue supporting the Ashhurst Community Trust by renewing exclusive community occupancy of Council land Page 313

Report, presented by Bryce Hosking, Acting Chief Infrastructure Officer.

21. Elected Member Expenditure 2021/22 Page 335

Memorandum, presented by Scott Mancer, Finance Manager.

22. Committee Work Schedule Page 341

23. Exclusion of Public

To be moved:

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

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

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

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

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

[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].

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Proposal to grant a licence to Tekton Limited - Summary of Submissions

Presented By: Bryce Hosking, Acting Chief Infrastructure Officer

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee receive the memorandum titled ‘Proposal to grant a licence to Tekton Limited – Summary of Submissions’ presented to the Strategy & Finance Committee on 22 March 2023.

1. ISSUE

1.1 Tekton Limited has held a licence for the right to operate a high ropes course on 585m² of the Railway Land Reserve, Palmerston North since 2018.

1.2 The current licence with Tekton Limited expires in August 2023. Council has received a request from Tekton Limited to renew the licence for a further five-year term.

1.3 Tekton Limited requires assurance of long-term tenure prior to investing in the employment and training of staff. Tekton Limited will be required to meet the Health and Safety at Work (Adventure Activities) Regulations 2016 which include a safety audit and registration process. The High Ropes course is currently a deregistered activity.

1.4 A Notice of Motion to Council on 14 December 2022 from Councillor Naylor reconsidered the proposal and as a result, Council resolved:

That Council reconsider the following recommendation:

a. That Council approve notifying the public of the intention to grant a licence at Railway Land Reserve to Tekton Limited for a high ropes course operated as a commercial activity, in accordance with Section 54 of the Reserves Act 1977.

b. That Council note that the land affected by the Licence to Tekton Limited is described as part of Lot 1 DP 78518.

That Council Resolves:

c. To approve a temporary extension to the licence to Tekton Limited for a further 6 months from 15 February 2023 until 15 August 2023, in order to give time for the public notification process and further Council decision making.

1.5 The public notification process is now complete.

1.6 Note that this report only presents an overview of the consultation undertaken and a summary of written submissions received. A further report will be presented to the Strategy & Finance Committee on 10 May 2023 which will provide the following:

· Consideration of matters raised in submissions, and any new matters presented in the hearings;

· Provide a business case from Tekton Limited to support their licence proposal;

· Propose licence terms, including the annual licence fee.

1.7 The report on 10 May 2023 will also seek a decision on whether to proceed with a new licence or not.

2. CONSULTATION OVERVIEW

2.1 Consultation took place from 12 January 2023 to 13 February 2023. The consultation consisted of:

· Public notice in Manawatū Standard;

· Public notice in the Manawatū Guardian;

· Online advertisement on the Council website; and

· A social media post on 18 January 2023.

3. SUMMARY OF SUBMISSIONS

3.1 Twenty-nine (29) submissions were received during the consultation period. Submitters identified their support or otherwise of the proposal. 6 submissions were against and 23 for.

3.2 The table below summarises the matters raised in the written submissions. Please note: Totals do not equal the number of submissions as more than one matter was raised in some submissions.

Matters Raised	Total
Comments against
No advertisement of company – lack of contact information and general advertisement	1
Never seen the high ropes course being used during the licence term	6
Against - Opportunity for other alternative activities to occupy site	3
The licence and course do not currently provide community benefits	2
The structure of the course is not attractive	2
During the licence term the course has not operated effectively	3
Security concerns	2
Railway Land should be freely accessible, the land should be returned to its original state and not be occupied	2
Comments for
The activity is a great use of space at Railway Land	5
There are no activities similar provided to the community	4
The course is supporting individuals to get out of their comfort zone	2
Individuals that have completed the course commented on the positive experience	6
Positive feedback regarding staff and trainers	3
The activity provides value to Palmerston North	6
The activity provides mental health benefits and personal growth	9
An attraction to wider Manawatū / Tourism	3
Great idea for the community	2
An activity that can be used for educational purposes	2
Developing outdoor activities in Palmerston North	1
Aesthetically pleasing	3
Providing a team building activity	8
Create idea if accessible for public at a reasonable cost	1
Provides employment opportunities	1

3.3 Social media posts:

· The Facebook post reached 18,201 individuals which included 4,108 engagements. Of this, there were 169 reactions (143 likes, 22 loves, 1 sad, 1 anger, 2 which were neither for nor against) and 196 comments.

· Comments were focussed on the company’s lack of advertisement and contact information. The general focus was that the community have not seen the activity operational during the licence time.

4. HEARINGS

4.1 Submitters who expressed a view on the proposal to grant a licence who also indicated they wished to be heard, have been contacted by staff and invited to speak at the scheduled hearing of 22 March 2023.

5. NEXT STEPS

5.1 Review the oral submissions for new, changed or expanded points.

5.2 Present a report to the Strategy & Finance Committee on 10 May 2023 which will provide the following:

· Consideration of matters raised in submissions, and any new matters presented in the hearings;

· Provide a business case from Tekton Limited to support their licence proposal;

· Propose licence terms, including the annual licence fee.

· Seek a decision for whether to proceed with a new licence or not.

6. 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 achievement of action/actions in Active Communities The actions are: · Administer the Reserves Act 1977. · Council supports a variety of clubs and organisations through consistent and transparent lease arrangements at parks and reserves and community centres.
Contribution to strategic direction and to the social, economic, environmental and cultural well-being	The summary of submissions on the proposal to grant a licence to Tekton Limited meets the requirements of the Reserves Act 1977.

Attachments

Public Consultation ⇩

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Amendment to the Traffic and Parking Bylaw 2018 (Light Motor Vehicle Prohibitions) - Summary of Submissions

Presented By: Stacey Solomon, Policy Analyst

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee receive the memorandum titled ‘Amendment to the Traffic and Parking Bylaw 2018 (Light Motor Vehicle Prohibitions) - Summary of Submissions’ presented to the Strategy & Finance Committee on 22 March 2023.

1. ISSUE

In October 2022 Palmerston North City Council (‘Council’) resolved to consult with the public on its proposed Amendment to the Palmerston North Traffic and Parking Bylaw 2018 (Light Motor Vehicle Prohibitions).

Public consultation has been completed. This memorandum provides a brief summary of the consultation process and issues which have been raised by submitters (Attachment 1).

A detailed summary and further advice from Officers on the issues raised as well as recommendations for any changes to the proposed amendments are not provided in this memorandum. That information will be provided to the Strategy & Finance Committee in a subsequent memorandum, as part of the deliberations process.

2. The Proposed amendment to the Bylaw

The Council proposed to amend the bylaw to include a new control which prohibits light motor vehicles (vehicles weighing less than 3,500kg) from being operated on specified roads in Palmerston North between the hours of 10:00pm and 4:00am, every day of the week. The amendment is proposed to apply to the following roads:

· Bennett Street

· Birch Way

· El Prado Drive

· Makomako Road

· Malden Street

· Valor Drive

· Works Road

The amendment will promote road safety, protect the environment from damage and pollution, and mitigate nuisance to the community caused by street racer activity by preventing street racers from being able to congregate.

By making the amendment, Council is enabling the New Zealand Police to issue infringement notices to those operating light motor vehicles in contravention of the bylaw control. In addition to the enforcement tools already available to the police, it is thought that receiving an instant infringement notice will deter street racers from driving their vehicles in nuisance-causing ways.

The amendment does not apply to:

· those who own property or live on the restricted streets; or

· visitors of those who own property or live on the restricted streets; or

· those who are on the road with legitimate reason (such as a maintenance service, taxi or Uber); or

· Emergency vehicles; or

· Medical professionals on the occasion where they are rendering medical aid; or

· those who have received a prior exemption from Council.

In future, Council may add or delete prohibited roads as necessary, following an appropriate engagement process.

The Statement of Proposal is attached to this memorandum (Attachment 2). The draft amendment to the bylaw and the Administration Manual to the bylaw are also attached (Attachments 3 and 4, respectively).

3. Summary of Submission Process

The proposed bylaw amendment was approved for consultation with the community on 5 October 2022. Consultation started on 17 October 2022, and submissions were accepted through to 21 November 2022.

Notification of the consultation was made via public notice in the Manawatū Standard, supported by radio interviews and advertising, posters put up around the city, a social media campaign, media release, and direct notification. Consultation material was posted on the Council’s website, and printed copies were available at the Customer Service Centre and at all community libraries.

Any community member, business or organisation, other stakeholders or partners identified as being directly impacted by the proposed amendment, were contacted directly via letter or email with details of the proposal and how they might be affected. Any other interested party or person was also able to submit feedback.

Council received 296 submissions on the proposed amendments. Attachment 1 to this memorandum identifies the broad themes raised by submitters. The summary should be read in conjunction with the full text of each submission that was made to this consultation.

Submissions received

Of the submissions received, a majority are supportive or supportive in part of the proposed amendment, noting that a large number of respondents do not support the proposed amendment (for a variety of reasons noted in the attachment).

The table below provides a breakdown of total support for the proposal.

Number of submissions that support the proposal	140
Number of submissions that support the proposal in part	55
Number of submissions that do not support the proposal	100
Number of submissions that did not state their support (or it is not clear for Officers to determine)	1
Total number of submissions received on the proposal	296

Table 1: Overall summary of submissions

4. Next Steps

Officers will prepare advice on the issues raised by submitters in the deliberations report that will be presented to the Strategy & Finance Committee. Following consideration of any recommendations made by the Committee to Council, the Council will be able to adopt the amended Palmerston North Traffic and Parking Bylaw.

Once adopted, the amended bylaw will come into effect in July 2023.

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 achievement of action/actions in Safe Communities
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendations contribute to Priority 4 in the Connected Communities Strategy: He whaka ū i te tāone e maritau ai, e noho haumaru ai ōno tāngata \| Be a city where people feel safe and are safe. The perception of safety impacts on the way people feel and interact in their communities. Council has committed to working with communities, businesses, local government, government agencies and others to promote safety. The actions in this plan also contribute to the achievement of the Connected Communities Plan. This is because Council recognises that the issues that underpin safety concerns can be attributed to a lack of community connectedness or whanaungatanga and opportunities to encourage this.

Attachments

1.	Summary Analysis of Submissions - Proposed Amendment to the Palmerston North Traffic and Parking Bylaw 2018 (Light Motor Vehicle Prohibition) ⇩
2.	Statement of Proposal - Proposed Amendment to the Palmerston North Traffic and Parking Bylaw 2018 (Light Motor Vehicle Prohibitions) ⇩
3.	Palmerston North Traffic and Parking Bylaw 2018 (draft Light Motor Vehicle Prohibition Amendment) ⇩
4.	Palmerston North Traffic and Parking Bylaw 2018 - Administration Manual (draft Light Motor Vehicle Prohibition Amendment) ⇩

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Treasury Report - 6 months ending 31 December 2022

Presented By: Steve Paterson, Strategy Manager - Finance

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee note the performance of Council’s treasury activity for the 6 months ending 31 December 2022.

1. ISSUE

To provide an update on the Council’s treasury activity for the 6 months ending 31 December 2022.

2. BACKGROUND

The Council’s Annual Budget 2022/23 forecast additional debt requirements of $54.7m would need to be raised during the year to fund the $64.1m of new capital expenditure programmes (including assumed carry forwards from 2021/22). In June 2022 the Council resolved to specifically authorise the raising of up to $55m of additional debt. In September 2022 the Council approved increasing the new capital expenditure programme for the year by a further $5m due to a revised assessment of the level of carry forwards from 2021/22. Since then further adjustments to the capital expenditure budget for the year have been approved but there has been no change to the formal resolution approving increased debt levels at this stage.

Council’s Financial Strategy (updated version adopted 7 July 2021) contains the following ratios which the Council has determined to be prudent maxima:

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

· Net debt as a percentage of total revenue not exceeding 200%

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

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

An updated version of the Treasury Policy (embracing the Liability Management and Investment Policy), adopted by the Council in August 2020, also contains a number of other criteria regarding debt management.

3. PERFORMANCE

Following the annual review published on 27 April 2022 Council’s S&P Global Rating’s credit rating remained unchanged at AA / A-1+.

Schedule 1 attached shows the details of Council’s debt as at 30 September 2022. Debt levels were within the policy parameters outlined in section 2 of this report.

The summarised term debt movements are shown in the following table:

Annual Budget for year (2022/23)

$000

Actual – 3 months (2022/23)

$000

Actual – 6 months (2022/23)

$000

Debt Balance at 1 July 2022

Plus New Debt #

Less Debt repayments #

176,000

54,748

197,850

15,128

(8,850)

197,850

25,128

(10,850)

Closing Gross Debt Balance

Comprising:

Bank advance (on call)

LGFA stock

230,749

204,128

2,000

202,128

212,128

Less:

Deposits held for debt repayment

Sum advanced to PN Airport Ltd

(20,000)

(5,000)

(20,000)

(5,000)

Net Council related term debt

230,749

179,128

187,128

# A portion of the Council’s debt is drawn on a daily basis – daily drawdowns and repayments are not included in these figures but the net draw or repayment for the year to date is shown as part of new debt or debt repayment as appropriate.

Gross debt at 31 December 2022 was $212.1m compared with $197.9m at 1 July 2022. $20m of this sum was raised during 2021/22 to prefund debt maturing on 17 April 2023. $25.1m was raised during the half year – $5m of this on behalf of PNAL.

Movements in recent years are shown in the following graph:

Actual finance costs incurred by the Council depend on the actual debt levels and the interest rate. During the 6 months finance costs (including interest, line fees and the effects of payments relating to swaps) amounted to $3.84m compared with the budget for the year of $6.73m. $399k of this expense related to $20m raised on 14 March 2022 to prefund debt maturing on 17 April 2023. This cost was nearly offset by unbudgeted interest income of $331k received from short term investment of this $20m. A further $97k of this expense related to the $5m loan raised on behalf of PNAL and this was offset by $106k received from PNAL for the advance.

The effective average interest rate for the 6 months was 3.7% compared with the budgetary assumption of 3.4%.

Interest rates have been rising to levels that are higher than previously assumed and, depending on how much debt is actually raised during the year, will likely lead to actual interest costs being higher than budget.

An example of the movement is the 90-day bank bill rate which are used as the basis for setting the interest rate for most of Council’s borrowing. These are reset to the latest rate every 90 days. As can be seen on the following graph this rate has increased from 1% in January 2022 to over 5% in December 2022.

The Council has entered financial instruments related to its debt portfolio utilising swap trading lines established with Westpac, ANZ and BNZ. The details of these are shown in Schedule 2 attached.

The value of these instruments is measured in terms of its ‘mark-to-market’, i.e. the difference between the value at which the interest rate was fixed and the current market value of the transaction. Each of these transactions was valued at the date they were fixed and again at the reporting date. Financial reporting standards require the movement in values to be recorded through the Council’s Statement of Comprehensive Income (Profit & Loss Account). They have been revalued as at 31 December 2022. The latest valuation is an asset of $13m compared with an asset of $8.3m as at 30 June 2022.

Swaps with a notional value of $5m matured during the first quarter.

The Council’s Treasury Policy contains guidelines regarding the measurement of treasury risk as follows:

· Funding and liquidity risk is managed by the Council maintaining a pre-set portion of its debt in a range of maturity periods, e.g. < 3 years, 3 - 7 years, 7 years +.

· Interest rate risk is managed by the Council maintaining the ratio of debt that is subject to floating versus fixed interest rates within pre-set limits.

The position compared to the policy is illustrated in the graphs in Schedule 3 attached.

The funding and liquidity risk position can be summarised as follows:

· Council’s liquid position complies with policy.

· Since 30 June 2022 $25.1m of term debt has been raised and $10.85m has been repaid. $5m was raised on behalf of PNAL and on-lent to them.

The interest rate risk position describes the portion of the overall forecast debt that is fixed versus floating and can be summarised as follows:

· There is significant uncertainty about forecast levels of future debt – this very much depends on a number of factors including future Council decisions on the proposed capital expenditure programme and Government decisions on the future structure of the provision of three waters.

· For the 2022/23 year so far the strategy adopted is to use the forecast debt figures from 2021-31 10 Year Plan, as updated through the 2022/23 Annual Budget but reduce them by 30%. This reduction is a mechanism to ensure the Council’s portfolio does not become over-hedged.

· Projected debt levels that exclude debt assigned for three waters programmes is also being considered to make sure the Council is not over-hedged if water related debt is effectively transferred (or paid off) on 30 June 2024.

· With the latest debt forecasts in place additional hedging was required to meet policy minimums. $20m of additional swaps were entered in to on 8 July 2022.

· Despite this there is a very minor breach of the interest rate risk profile policy as at 31 December. The policy requires that between 20% and 70% of the debt maturing in the 48 to 60-month band should be fixed. The actual was 19%. This is not material given the nature of the assumptions used.

The Treasury Policy also contains requirements in relation to counterparty credit risk – this relates to investments and financial risk management instruments.

The position as at 31 December is shown in Schedule 4 attached. As can be seen from the schedule the policy limit for the level of investments at Westpac of $15m has been exceeded by $5m. The most recent investment of $20m was made with Westpac as they offered an interest rate that significantly exceeded what was on offer elsewhere. The limit per counterparty is considered to be very conservative and will be considered for review when the policy is next updated. In the meantime, the Policy requires that counterparties exceeding the limits are required to be reported to the Council.

As at 31 December 2022 all remaining policy targets had been met.

Council’s credit lines with the banks include a $18m three-year credit facility with Westpac Bank (maturing 31 October 2025) and a revolving $25m three-year facility with ANZ Bank (maturing 31 March 2025).

4. CONCLUSION AND NEXT STEPS

Gross finance costs for the year (including interest, line fees and the effect of swaps) was $3.84m compared with budget for the year of $6.73m.

In conjunction with Council’s treasury advisors hedging instruments are regularly reviewed in an effort to ensure the instruments are being utilised to best advantage as market conditions change. The level of hedging cover is also reviewed as the forecasts of future debt levels are revised.

Council’s borrowing strategy is continually reviewed, in conjunction with Council’s treasury advisors, to ensure best advantage is taken of Council’s quality credit rating.

A further performance report will be provided after the March 2023 quarter.

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 5: A Driven & Enabling Council This report outlines the outcomes of a fundamental administrative activity of the Council.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Managing the Council’s treasury activity is a fundamental component of day to day administration of the Council.

Attachments

Schedules 1 - 4 ⇩

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Speed Management Plan - endorsement of scope and draft objectives and policies

Presented By: Peter Ridge, Senior Policy Analyst

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATION(S) TO COUNCIL

1. That Council confirms the scope of the 2024-2027 Speed Management Plan as shown in paragraph 3.4 of the memorandum titled ‘Speed Management Plan – endorsement of scope and draft objectives and policies’.

2. That Council endorse the draft Objectives and Policies (Attachment 1 of this memorandum), to inform the assessment of speed limits in the 2024-2027 Speed Management Plan.

1. ISSUE

1.1 Staff have developed a set of draft objectives and policies to be used in the assessment of speed limits, as part of the first full Speed Management Plan for 2024-2027. These objectives and policies have been informed by the Council’s current strategic direction and aligned to both Government and regional strategic documents.

1.2 We are seeking confirmation of the scope of work and endorsement of these draft objectives. This endorsement will allow staff to assess speed limits and produce recommendations through the draft Speed Management Plan in line with those objectives and policies.

2. BACKGROUND

2.1 In May 2022 Waka Kotahi brought the new Speed Limits Rule into effect. This Rule changes the way that speed limits are set. Where previously we set speed limits through a bylaw, we now set speed limits via a speed management plan (‘SMP’). The SMP identifies the speed limits that we are planning to change with a 10-year scope, but with a focus on the changes that will be made in the first three years.

2.2 The new Rule places emphasis on regional coordination and consistency. The Regional Speed Management Plan (‘RSMP’), collated by Horizons Regional Council, will compile the speed limit changes proposed by each road controlling authority (including local authorities). PN City Council’s (‘PNCC’) contribution to the RSMP will be the information contained in our 2024-2027 Speed Management Plan.

2.3 This work sits alongside the development of the interim Speed Management Plan, which the Council considered on 15 March 2022 for public consultation. The interim SMP focusses on speed limits around schools. That piece of work is being progressed separately using the interim process set out in the Speed Limits Rule, to meet the Government’s target to have 40% of all schools covered by slower speed limits by June 2024.

3. development of the 2024-2027 speed management plan

3.1 The Horizons Regional Council RSMP needs to be adopted by June 2024. To enable this to happen, and to allow time for any changes to be made to road controlling authorities’ individual SMPs, we are aiming to have an adopted speed management plan by December 2023. The following timeline outlines the key milestones in the project plan:

Setting the scope

3.2 The first step in the development of the 2024-2027 Speed Management Plan is to set the scope of what is to be included in that plan. While it is a plan with a 10-year vision, the emphasis is on speed limit changes that will be made within the first three years. We are required to adopt a speed management plan every three years, aligned to the timing for the regional land transport programme (‘RLTP’) and national land transport programme (‘NLTP’). Speed limit changes which are not included in detail in the first three years may be considered for subsequent plans from 2027 onwards.

3.3 This is the first full speed management plan to be developed since the commencement of the new Speed Limits Rule. Every agency involved in setting speed limits is adjusting to the new process, and PNCC is no different. Therefore, we are proposing a modest range of changes for the first three years, focussing on speed limit changes which are urgently needed, or where there is a clear and straightforward case with ample evidence to support making a change to speed limits. Those situations which involve further research or monitoring, or which may require infrastructural treatments to support a speed limit change, are better deferred to 2027 or later. This will allow staff time to prepare programmes of works or undertake further research or monitoring as part of the ongoing speed management plan process.

Suggested scope

3.4 The table below outlines the matters which staff recommend including in scope for the 2024-2027 Speed Management Plan, with a brief explanation for their inclusion.

Speed limit area	Reason for inclusion
City and town centres (including Ashhurst and Bunnythorpe)	City and town centres are a priority for speed reduction as they are roads where we want to prioritise people and other active mode users. Lower speeds are likely to improve the safety and connectivity for pedestrians and active modes of transport. They also discourage unnecessary through-traffic, promoting active use of the space, including economic activity such as shopping. Speed reductions in areas such as city centres can also improve congestion – this is because the speeds people are travelling currently are already low (<30km/h) at peak hours and a speed limit that aligns to this low travel speed means there is less speeding up and slowing down of traffic through these congested areas.
Kahuterawa Road	A large section of this road is unsealed but the speed limit remains very high. A lower speed limit will signal to road users that safer speeds are expected on this road. Due to the design and alignment of this road, which is partly unsealed and winding, the current average travel speeds along this road are already between 40-60km/h. A speed reduction here aligns to current behaviour and is unlikely to add significant travel time.
Turitea Road	There are several safety concerns along this route that require greater interventions, including the intersection with Valley Views and one-way bridges. Turitea Road is also part of the Te Araroa trail, frequented by hikers. A lower speed limit would also assist future residential growth in the area.
Summerhill Drive	Summerhill Drive services residential housing on one side as well as being a key cycling connection between Aokautere and the city. Reviewing the speed limit along this route could lead to a speed limit reduction to align with the urban area of the city.
Milson Line	A fatal crash occurred at the intersection of Milson Line and Richardson Line in 2022. Due to a constrained environment with Mangaone Stream and narrow road width, significant infrastructure investment is needed to improve the safety of this intersection.
Rongotea/No 1 Line	These locations are proposed to be Intersection Speed Zones (‘ISZ’). These speed limits are a form of variable speed limit where a lower speed limit is automatically activated when traffic is present on the intersecting side street. This technology uses sensors to identify when a car is present at the side road or when turning into the side road from the main road, so the limit is only reduced at the intersection when needed. These dynamic speed limits have been trialled and used across the country with promising results at higher risk intersections. They are found to improve safety, without permanently impacting the flow of traffic on the main road. Like variable speed limits, these limits are enforceable and legal when operational.
Turitea Rd/Valley Views
Te Wanaka Road/Pioneer Highway	An intersection upgrade at Te Wanaka Road is necessary for full development of the Kikiwhenua Residential Growth Area to proceed. Discussions with Waka Kotahi staff in 2020 identified that an ISZ approach could be a suitable option for facilitating growth at Kikiwhenua, similar to what is in place at Newbury Line, until a more permanent speed reduction is established along SH56, when the Kakatangiata growth area is established. See paragraphs 3.5 and 3.6 below for more information about this intersection.
Neighbourhood speed zone	To align with the 10-year vision, there is an intent to reduce speed limits on residential/local streets within neighbourhood areas throughout Palmerston North. Much like the city and town centres, this is to improve safety, liveability and connectivity for those who live in these streets and communities. Main roads within these neighbourhood zones which serve dual purposes (ie. to get commuters and other road users from A to B) would not receive a speed reduction. This is because they have more than one function and efficiency on these roads is important. Acknowledging that speed reductions at this scale are new to Palmerston North, the inclusion of a single neighbourhood speed zone in the 2024-2027 Speed Management Plan would allow an opportunity to test the process, refine the messaging to the community, and identify what improvements in road safety might be achieved for other neighbourhoods in the future. It also allows for flexibility due to the smaller scope of impact. The neighbourhood selected will be based on both technical and community factors, with neighbourhoods with clear geographical boundaries and known community desire for speed reduction being prioritised.

Te Wanaka Road/Pioneer Highway ISZ

3.5 Recent discussions between Council staff and local Waka Kotahi engineering staff suggest that an ISZ may no longer be supported by Waka Kotahi. This uncertainty about when an intersection upgrade at Te Wanaka Road may be possible is an impediment to full utilisation of Kikiwhenua as an important short-term growth option for housing. Unless the intersection upgrade can be enabled, development at Kikiwhenua will be limited to a maximum of 30 lots, out of the 230 for which the plan change provided.

3.6 Staff recommend that despite the views of Waka Kotahi, Te Wanaka Road/Pioneer Highway ISZ is still included in scope for the 2024-2027 Speed Management Plan. If it was included, and an ISZ was confirmed, an upgrade for this intersection could be in place as early as the 2024/25 financial year. If the intersection is not included, there is an option to progress this in an interim Speed Management Plan between 2024 and 2027. However, timing for this would be uncertain.

Developing objectives and policies

3.7 The second step in the development of the 2024-2027 Speed Management Plan is the identification of objectives and policies. These will guide the technical assessment of speed limits and be used to make proposals for speed limit changes. These proposals will be brought to Council for consideration prior to public consultation.

Objectives

3.8 The Speed Limits Rule requires our Speed Management Plan to include objectives for managing speed over the life of the plan. It must also include an explanation of how the plan is consistent with the road safety aspects of the government policy statement on land transport and any government road safety strategy. To achieve this, we have developed a set of draft objectives that are strategically aligned to the Government’s road safety strategy Road to Zero. We have also aligned these objectives with Council’s own strategic direction as set through the 2021-31 Long Term Plan – specifically the Transport Plan and the Asset Management Plan for Transport. Finally, we have taken into consideration the principles identified by the Regional Transport Advisory Group (and endorsed by Horizon’s Regional Transport Committee in December 2022).

3.9 Attachment 1 provides detail of this strategic alignment to show the connections between the goals, objectives and principles of these different agencies, and how they have led to the draft objectives we have developed. The table below summarises the items contained in each document, with the relationship to each other and our draft objectives.

3.10 The objectives we have proposed are targeted to the key issues identified in the Asset Management Plan for Transport and framed in the context of the broader strategic outcomes at both the regional and national level. For instance, the first objective is “our road network is designed for all vehicles and uses, not just motor vehicles.” This acknowledges the issue identified in our Asset Management Plan, that fewer people are walking, cycling or catching buses, and wide and busy roads create an impediment for pedestrians with lower mobility. The objective contributes to addressing this issue and is consistent with many of the seven principles in the Road to Zero Strategy.

3.11 The way these objectives have been developed ensures that we are focussing on the issues which are most relevant to Palmerston North but are also aligned to, and consistent with, national and regional direction for road safety. The objectives also provide useful guidance when explaining why we are prioritising changing speed limits in some areas over others.

Policies

3.12 In addition to our objectives, the Speed Management Plan must include our policies on speed management. In the context of the Speed Management Plan, these ‘policies’ are specific statements to guide our proposals for speed limit changes. The policies are connected to the objectives so that we can show how these policy statements contribute towards achievement of those outcomes.

3.13 We have identified policies that are directly relevant to the scope of the work we are proposing to include in the 2024-27 Speed Management Plan. We have also included the policies that guided the work on school speed limits in the interim Speed Management Plan. This is to demonstrate that the setting of speed limits is being done within a consistent framework.

3.14 The draft policies are contained in Attachment 1, and are summarised below:

· In the city and town centres, the speed limit will be 30km/h.

· Speed limits for school zones will be applied to the walking and cycling catchment for that school.

· We will use variable speed limits for roads around schools where the primary use of that road is for the movement of general traffic or freight.

· We will use permanent speed limits for roads around schools where the primary use of that road is to access properties in the area.

· Schools will be designated category 1 (30km/h maximum speed limit) except where there is a high operating speed, limited pedestrian crossing movements, and/or separate access for dropping off/picking up children.^{^[1]}

· Speed limits for individual roads will be set with reference to their place within Palmerston North Strategic Networks.^{^[2]}

4. NEXT STEPS

4.1 If the Committee wishes to make changes to either the scope or the draft objectives and policies then these can be incorporated via resolution into the recommendations to the Council.

4.2 If the Committee recommends that Council confirms the suggested scope and endorses the draft objectives and policies, then staff will proceed to assess the speed limits according to that agreed scope and using the draft objectives and policies to guide our recommendations. A draft 2024-2027 Speed Management Plan consultation document will be presented to the August Committee for approval for public consultation. The consultation process will then follow the timeline as outlined earlier in the report.

5. 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 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Transport The action is: progressively review speed limits throughout the City on a staged basis
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The development of the Speed Management Plan will result in a consistent approach to reviewing speed limits, which will contribute to the improvement of safety on our transport network. Speed is a significant factor in the survivability of both drivers and pedestrians in the event of a collision. Slower speed therefore contributes to improved safety outcomes for our community.

Attachments

Draft Objectives and Policies for PNCC 2024-2027 Speed Management Plan ⇩

REPORT

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Review of the Palmerston North Animals and Bees Bylaw 2018 - s.155 LGA Determination

PRESENTED BY: Stacey Solomon, Policy Analyst

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Strategy & Finance Committee endorse the findings in ‘Palmerston North City Council Animals and Bees Bylaw 2018 Review Section 155 Determination Report’ included as Attachment 1 to this report.

2. That the Committee agree that the statutory review of the Palmerston North Animals and Bees Bylaw 2018 is complete, and it be determined that:

a. a bylaw is still the most appropriate way of addressing the perceived problem of regulating the specific requirements for the keeping of animals (other than dogs) and bees in Palmerston North, protecting the health and safety of the community.

b. a standalone bylaw is still the most appropriate form of bylaw.

c. the current bylaw does not give rise to any implications under the New Zealand Bill of Rights Act 1990.

3. That Officers, as delegated by the Chief Executive, prepare a further options report for amending the bylaw.

Summary of options analysis for the animals and bees bylaw

Problem or Opportunity	The Palmerston North Animals and Bees Bylaw 2018 is due for its statutory review. If not reviewed, it will expire in July 2025.
OPTION 1:	Determine that a bylaw continues to be the most appropriate way to address the perceived problem of regulating the keeping of animals and bees on private property in Palmerston North, and that amendments to the bylaw be prepared. *Option 1 is recommended.*
Community Views	Initial community views on the review of the Animals and Bees Bylaw have not been sought and are unknown.
Benefits	Enables an ongoing regulatory framework for the animals identified in the bylaw. Making the recommended determination means the existing bylaw can be amended and then prepared for consultation with the public.
Risks	No risks have been identified.
Financial	The cost of reviewing the bylaw is met within existing budgets.
OPTION 2:	Determine that a bylaw is not the most appropriate way to address the perceived problem of regulating the keeping of animals and bees on private property in Palmerston North. Council can choose to actively revoke the current bylaw, by consulting on the matter with the community, or do nothing and let the bylaw lapse on 1 July 2025. *Option 2 is not recommended*.
Community Views	Initial community views on the review of the Animals and Bees Bylaw have not been sought and are unknown.
Benefits	No benefits have been identified.
Risks	Risks have been identified. If the current bylaw is revoked or lapses, there is no direct regulatory ability for Council to respond to the nuisance issues which are covered by the bylaw. Action will still be able to be taken under various statutes and also through the requirements of the District Plan.
Financial	Costs will still be incurred if the bylaw is to be actively revoked or allowed to lapse. If actively revoked, consultation will be required. Whether the bylaw is actively revoked or allowed to lapse, Officer time and legal advice will be needed to consider how the matters previously managed through the bylaw will be controlled going forward.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 This report provides Palmerston North City Council (‘Council’) with the information it requires to make the determinations under s.155 of the Local Government Act 2002 (‘LGA’) to either continue, or to revoke, the Palmerston North Animals and Bees Bylaw 2018 (‘the bylaw’).

1.2 Council is empowered to make bylaws to mitigate nuisance and to protect, promote, and maintain public health and safety (s.145(a), (b) LGA). The Council has chosen to regulate (in part) the keeping of animals and bees on private property in Palmerston North through the bylaw. The bylaw forms part of a wider approach to animal regulation and management in the district.

1.3 The LGA requires a statutory review of the bylaw by Council within five years of it being made and adopted (s.160(1)). The bylaw therefore requires review by 1 July 2023 or it will automatically revoke on 1 July 2025. Council completes the statutory review of the bylaw by making the determinations set out in s.155 of the LGA, which are:

§ That a bylaw is the most appropriate way of addressing the perceived problem (s.155(1) LGA); and

§ That it is the most appropriate form of bylaw (s.155(2)(a) LGA); and

§ That the bylaw does not give rise to any implications under the New Zealand Bill of Rights Act 1990 (‘NZBORA’)(s.155(3) LGA).

1.4 For the purposes of this bylaw, the perceived problem/s are related to nuisance issues and health and safety risks caused by the keeping of animals and bees on private properties in the district.

1.5 This report should be read in conjunction with Attachment 1, ‘Palmerston North City Council Animals and Bees Bylaw 2018 Review Section 155 Determination Report’, which provides further detail to inform the recommendations made here.

2. Background and previous council decisions

2.1 The Council adopted the Animals and Bees Bylaw in 2018, repealing the 2011 bylaw at that time. The stated purpose of the Animals and Bees Bylaw is to “specify requirements for the keeping of animals, including stock, pigs, cats, poultry and bees, in the Palmerston North district, to protect the general public, neighbours and property owners from general nuisances and to protect, promote and maintain public health and safety related to keeping animals.”

2.2 In addition to general nuisance controls, the bylaw includes controls specific to:

§ the keeping of stock in urban areas (the definition of stock is given in the bylaw, Attachment 2 to this report).

§ cats in urban areas.

§ pig keeping and the maintenance of pigsties.

§ the keeping of poultry and requirements for poultry houses and runs.

§ beekeeping in urban areas.

2.3 The bylaw and the associated Administration Manual (Attachment 3) set out the process for obtaining a permit so that an animal can be kept in contravention of the bylaw, with the correct approval from authorised Officers of Council.

2.4 The bylaw otherwise takes a permissive approach to regulating the keeping of animals and bees. This approach is generally consistent with the wider bylaw programme of Council, which is primarily enabling rather than restrictive.

2.5 The bylaw is informed by s.64(1)(a) of the Health Act 1965 (‘HA’). The HA enables Council to make a bylaw for the purposes of “improving, promoting, or protecting public health, and preventing or abating nuisances”.

2.6 For clarity, in all instances or where there is a discrepancy between this bylaw and the District Plan regarding the keeping of animals or bees, the District Plan prevails.

Exclusions

2.7 The keeping of dogs is excluded from this bylaw and is covered by the Palmerston North Dog Control Policy 2018 and regulated by the Palmerston North Dog Control Bylaw 2018.

3. Description of options

3.1 The options described here are for the Committee to determine if a bylaw is still the most appropriate way to address the perceived problem.

3.2 The perceived problem is the keeping of animals and bees on private property in Palmerston North that has the potential to cause nuisance or pose a risk to the health and safety of the community.

3.3 The options are to:

§ determine that a bylaw is the most appropriate way of addressing the perceived problem; or

§ not to make that determination.

3.4 The following section of this report gives further detail on the options.

4. Analysis of options

Option 1: Determine a bylaw is the most appropriate way of addressing the perceived problem

4.1 If Council determines that a bylaw is the most appropriate way of addressing the perceived problem, there are two further determinations that should be made.

4.2 The first is that the form of the bylaw is the most appropriate form. This means that a standalone bylaw to regulate the specific activity is preferred to a section within a combined bylaw that regulates a variety of activities.

4.3 The second is whether the bylaw gives rise to any implications under the NZBORA. This means that a bylaw has been assessed against the NZBORA and it is found that the bylaw does not limit the rights of individuals in a way that is unreasonable.

4.4 Option 1 is recommended.

Option 2: Not make the determination that a bylaw is the most appropriate way of addressing the perceived problem

4.5 If Council determines that a bylaw is not the most appropriate way of addressing the perceived problem, the bylaw is implicitly revoked. Unless a different decision is made by Council at a later time, no further work will be completed on this bylaw and on 1 July 2025 it will lapse. Should Council wish for the bylaw to be revoked on an earlier date than when it will automatically lapse, a consultation process with the community will have to occur (s.156 LGA).

4.6 The keeping of animals and bees in Palmerston North will still need to be regulated in some way. Non-bylaw solutions will need to be further explored.

4.7 Option 2 is not recommended.

5. Conclusion

5.1 Officers recommend Council determine a bylaw is the most appropriate way of addressing the perceived problem.

5.2 Officers also recommend that Council determines a stand-alone bylaw is the most appropriate form of bylaw, and that a bylaw regulating the keeping of animals and bees is unlikely to give rise to any implications under the NZBORA.

5.3 Council may then recommend that Officers proceed with further work to draft an amended bylaw. The amended bylaw will be presented to the Committee for consideration later in the year.

6. Next actions

6.1 If Council endorses the recommended option and determines that a bylaw is the most appropriate way to address the perceived problem, the statutory review of the bylaw is complete.

6.2 The next step of this process will be for Officers to proceed with amending the bylaw.

6.3 Changes and improvements to the current bylaw have been identified for consideration in any future amendment. These are:

§ Minor changes to ensure the bylaw is consistent with the requirements of the District Plan.

§ Investigation into new or arising issues, as well as ongoing issues relevant to the content and controls of the bylaw (eg.: continued lobbying from local government to establish a national mandate for cat regulation).

§ Further consideration of the impact the proposed medium density residential zone could have on the bylaw related to administration and enforcement of the bylaw.

§ Ensuring the bylaw continues to be closely aligned to the vision and strategic goals of Council.

§ Minor wording and structure changes to improve readability of the bylaw.

7. Outline of community engagement process

7.1 Pre-consultation engagement will occur with Council’s partners, identified stakeholders, interested parties, and the community generally to capture views and note any issues with the current bylaw. Feedback received during early engagement may be used to inform amendments to a draft bylaw. That draft will be presented to the Committee to approve for consultation using the special consultative procedure (s.83, s.86, s.156 LGA) later this year.

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 achievement of action/actions in Safe Communities The action is: · Provide regulatory services, including implementing the Animal and Bees Bylaw. · Review the Animals and Bees Bylaw.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The Animals and Bees Bylaw ensures that Council can have a pragmatic and agile response to nuisance issues or health and safety concerns in Palmerston North related to the keeping of animals and bees. The bylaw supports the efforts of the Council to achieve its strategic goals, particularly those related to achieving safer communities, and connected communities.

Attachments

1.	Palmerston North City Council Animals and Bees Bylaw 2018 Review - Section 155 Determination Report ⇩
2.	Palmerston North Animals and Bees Bylaw 2018 ⇩
3.	Palmerston North Animals and Bees Bylaw 2018 Administration Manual ⇩

report

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Adderstone Reserve - Decision on proposal to change part to housing

PRESENTED BY: Kathy Dever-Tod, Group Manager - Parks and Logistics

APPROVED BY: Bryce Hosking, Acting Chief Infrastructure Officer

RECOMMENDATION(S) TO Council

1. That Council retain Adderstone Reserve in its entirety.

2. That Council note that:

a. The Pacific Drive portion of Adderstone Reserve is not required for recreation purposes.

b. That the future of the Pacific Drive portion of Adderstone Reserve will be revisited when the community facilities needs for Aokautere are defined.

Summary of options analysis for

Problem or Opportunity	Future reserve needs in Aokautere were assessed as part of considering the rezoning of land in Aokautere for residential development. The option of changing the purpose of part of Adderstone Reserve, from recreation to housing, was proposed to the community. Submissions were received and hearings held. This report considers: · The submissions and objections, · Medium density area demand (which has changed since the original reserve needs assessment), and · New information from the Community Places Research Report. The purpose of the report is to seek a Council decision on the proposal to change the use of portions of Adderstone Reserve to housing.
Community Views	Community views were expressed during the consultation and hearings: · 5 submitters were neutral · 20 opposed both portions being used for housing · 16 supported both portions being used for housing · 11 opposed the Abby Road portion being used for housing · 1 opposed the Pacific Drive portion being used for housing The submissions and a summary report were received by the Council on 30 November 2022.
OPTION 1:	Retain Adderstone Reserve in its entirety
Benefits	· Reserve land is retained until the broader need for community facilities is known and the impact of the medium density housing zone understood. · Does not exclude a Council decision in the future to repurpose the portion of the reserve fronting Pacific Drive.
Risks	· Does not address Council’s goal to make underutilised reserve land available for housing. · The community may expect council to fund the new developments and initiatives at Adderstone Reserve contained within the submissions.
Financial	· There are no operational budget implications arising from this option. Adderstone Reserve will continue to be maintained at current levels of service. · This option does not have an associated income stream.
OPTION 2:	Remove the reserve status on the Pacific Drive portion of Adderstone Reserve, to enable housing use, and retain the Abby Road portion
Benefits	· Releases a modest parcel of underutilised reserve land for housing. · Ensures long-term needs of the community for recreation space is likely to be met.
Risks	· The Pacific Drive portion would not be available for a community facility should the need be determined, and the location be appropriate.
Financial	· Officer time and legal costs to uplift the reserve status. · Officer time and legal costs to facilitate a land sale if the Pacific Drive site is not used for a Council housing development. · Income from land sale available for the purchase and development of Council reserves. · Small reduction in maintenance costs.
OPTION 3:	Remove the reserve status on both Pacific Drive and Abby Road portions of the reserve to enable housing use.
Benefits	· Releases the largest area of underutilised reserve land for housing of the three options. · Marginal reduction in parks maintenance costs. · Land available for the development of Council housing or income from land sales available for the purchase and development of Council reserves.
Risks	· The long-term demand for reserves arising from the medium density housing area is uncertain and additional reserve land may be required in the future. · Release of the Abby Road portion of land for housing is likely to be a considerable time away as agreement with the neighbouring private landowner is required. · If community facilities were required in the future the Pacific Road site would not be available.
Financial	· Officer time and legal costs to uplift the reserve status. · Officer time and legal costs to facilitate a land sale or exchange including consultation. · Minor reduction in parks maintenance costs. · Potential revenue to Council in the form of cash reserves, if the land is sold, which must be applied to other reserves.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 Council consulted the community on a proposal to partially repurpose Adderstone Reserve for housing.

1.2 This report provides the Committee with Officer advice on the proposal, considering the submissions received, the impacts of the demand for medium density housing, and information contained within the Community Places Stocktake report received by Council in September.

1.3 The decision on the proposal to partially repurpose Adderstone Reserve for housing will inform Plan Change G.

2. Background and previous council decisions

2.1 In June 2022, in conjunction with a report on Plan Change G – Aokautere Urban Growth (‘the Plan Change’), Council chose to consider re-purposing two portions of Adderstone Reserve for housing.

2.2 Under the Reserves Act 1977, the proposal to change the use of part of the land to housing requires public consultation and consideration of any objections prior to deciding whether to uplift the reserve status. Resolutions 31-22 included:

1. That the Chief Executive prepare a public consultation document on the partial re-purposing of Adderstone Reserve for housing under the Reserves Act 1977, and that this consultation be undertaken in parallel with the public notification of Palmerston North City District Plan: Proposed Plan Change G – Aokautere Urban Growth.

2. That a decision on the proposed partial re-purposing of Adderstone Reserve be made in advance of the hearing for Proposed Plan Change G – Aokautere Urban Growth.

2.3 Consultation was undertaken in August 2022.

2.4 Council held a hearing for submitters that wished to be heard in person on 30 November 2022. Resolution 166-22 was passed:

1. That Council hear submissions from presenters who indicated their wish to be heard in support of their submission.

2. That Council note the procedure for hearing of submissions, as described in the procedure sheet.

2.5 Council received a summary of the submissions report on 30 November 2022. Resolution 167-22 was passed:

1. That Council receive the summary of written submissions on ‘Adderstone Reserve – Proposed Partial Reserve Disposal for Housing’, for information.

3. MAtters Raised IN submissions

3.1 The Reserves Act requires Council to consider any objections raised to the proposal to remove a reserve status from reserve land before deciding.

3.2 Table One lists the matters raised in submissions and Officer comment.

Matter raised	# Submitters raising point	Officer comments
Preserve green space/keep for recreation/planting	31	The Servicing Assessment for parks green space identified that further open space is required in Aokautere, but that 1 ha is adequate at this location and the further open space reserve was required in other locations. This assessment was based on a structure plan that had a limited area of medium density housing in Aokautere. The final structure plan has a greater area of medium density. This is discussed further in Section 5.
Abby Road portion - 1 ha not large enough	6	1 ha is larger than a standard neighbourhood reserve, The Engineering Standards for Land Development recommend 3,500 to 4,500m².
There is enough housing at other locations without using reserves	6	Central Government requires Council to provide for 5,000 homes within the next 10 years. Aokautere is one of a few urban growth fronts to deliver these requirements, as outlined in the City Growth Plan under the Innovative and Growing City Strategy.
Abby Road portion - Need all of it for dog recreation area	6	Adderstone Reserve is currently a dog on-lead area. The closest dog off-lead exercise areas with open space^{^[3]} are: · Summerhill Reserve is 2km away being 1.8 ha of open space. · Pinfold Road is 5km away with 1 ha of mown open space and a further area of wilderness style trails through regenerating scrub. · The urban Manawatu River off-lead open space areas are 3.5 km away. Council does not have a policy on the distribution and size of dog exercise areas but has made significant additions to the City over the last 10 years. Retaining all of the Abby Road portion would allow for a 1km loop walk within the open space, vs a 400m loop walk if a 1 ha portion were retained. The Poutoa area^{^[4]} has 462 registered dogs. This is the 2^nd highest ownership area, behind Ashhurst^{^[5]}. The public could be consulted on classifying Adderstone Reserve as an off-lead dog exercise at the next review of the Dog Control Bylaw.
Retain reserves for climate change mitigation	5	There are 170 ha of gullies proposed to be planted out as part of the plan change. Council could decide to undertake additional planting in the immediate area. This may conflict with other submissions wanting open space/dog exercise use.
Need more housing – support proposal	5	Central Government requires Council to provide for 5,000 homes within the next 10 years. Aokautere is one of a few urban growth fronts to deliver these requirements, as outlined in the City Growth Plan under the Innovative and Growing City Strategy.
Not enough infrastructure development to support extra housing	5	The plan changes and Council’s long-term plan will ensure there is enough infrastructure to enable development.
Concerned about impacts of housing on gully planting	4	The proposed plan change seeks to enable development in a way that avoids hazards and protects and restores the gullies. The advice of arborists is that a building setback of 7.5m should be enough to mitigate the risk of Green Corridors planting overhanging private property boundaries if setback had no new large trees planted in it.
Concern about congestion and access to Abby Road housing	3	The transport planners are satisfied that the local road dimensions are enough.
Setback from gully edges is needed	3	Geotechnical assessments will be required for development where it has been identified as required – as per map 10.1A in the District Plan.
Additional housing will block views	2	Noted – there are no planning rules in place protecting view shafts in Palmerston North. The roading alignments ensure a public interface with the reserves.
Pacific Drive - if housing is approved it needs buffer to gully to avoid shading/effects	2	Council arborists have recommended a 7.5m setback from the existing plantings to ensure mature tree canopies do not impinge on private property. They recommend low planting buffer between the existing vegetation and the proposed boundary.
Use the reserves for more planting	2	Shade, specimen and edible planting would be considered for the open space areas, but open space recreation needs are the predominant use. Some opportunities to extend the revegetation planting might exist if the full area were retained. There are 170 ha of gullies proposed to be planted out as part of the plan change.
Impacts of road on gully edge	1	Geotechnical assessments will be required for development where it has been identified as required – as per map 10.1A in the District Plan. Stormwater runoff will be managed through a comprehensive stormwater management plan. A detention pond is planned close to point J on map 7.A.4 of the Aokautere Structure Plan.
Lack of justification of proposal	1	The reasons for the proposal are set out in reports and consultation materials.
Limit to the density of housing on Pacific Drive portion	1	The plan change process considers matters such as housing density. Current permitted activity allows for sections down to 500m² per lot in the Pacific Drive portion of Adderstone Reserve.
Previous property review - community opposed reserve sales	1	Noted – Property Review 2012/13 received 340 submissions with 34 supporting some sales and 304 opposing some or all sale proposals.
Should have space for sports	1	Formal competition sports are trending to centralised facilities and artificial turfs. This location is not suitable for formal playing fields. The proposed area to be retained will be large enough to accommodate informal sports play and the development of the reserve would address the drainage and play suitability. A larger retained area would allow for a greater variety of uses including open space informal team sport play.
Retain all of Abby Road portion for a community centre	1	Community Places report found that further community facilities may be required in Aokautere. This is detailed further in Section 6 of this report.
Keep space for off road paths	1	There is provision for active modes of transport through the street hierarchy. Connectivity through cul-de-sac ends will be considered at the time of subdivision.

3.3 Table Two considers points raised in the hearings that expanded upon or were new to points in written submissions:

Matter raised in hearings (additional to written)	Officer comments
Water movement from reserve into gullies causing erosion/land instability	A comprehensive stormwater management plan is required as part of development. Water from any new hard surfaces would have to be discharged in an approved manner.
Proposing additional buffer planting into Abby Road portion	A 20m buffer planting would reduce open space by 1 ha. Some buffer planting may be acceptable in some spaces but the extent proposed would impact open space provision.
Ecocity Goals should be applied to decision	Council strategic goals often require balancing against each other.

4. medium density housing in Aokautere

4.1 The medium density housing proposed for Aokautere is 1km from Adderstone Reserve.

4.2 The medium density area is shown in Figure 1 and Figure 2.

4.3 The medium density area contains approximately 360 lots, or around 180 if the retirement village option proceeds.

Figure 1: Medium density housing in Aokautere

Figure 2: Aokautere medium density – retirement village option

4.4 The medium density zone in Aokautere would result in an increase in demand for open space activity; either an additional 200 to 400 medium density lots are proposed depending on the outcome of retirement village initiatives.

4.5 Medium density areas create new sets of demands on parks and reserves that Palmerston North has not experienced to date and a long-term view of the impacts needs to be taken.

4.6 The medium density zone will be served by a neighbourhood reserve area of around 4,000m². The reserve size was predicated on an earlier version of the structure plan, with a modest extent of medium density area (40 lots) limited to the immediate area surrounding the reserve^{^[6]}.

4.7 The larger medium density area proposed will place demands on the wider open space network in Aokautere. Space for larger scale open space recreation would likely spill over into Adderstone Reserve given its size and proximity.

5. Community PLaces Report

5.1 Council received the Community Places Research Report in September 2022. Its findings in relation to Aokautere were:

· Aokautere/Summerhill, like other recent growth areas, has a good supply of green space but does not have the same community facility coverage as more established areas of the city.

· Aokautere/Summerhill are projected to grow further in the short and medium term so the ‘per-population’ discrepancy in facility coverage is going to increase.

5.2 There is a need for a per-population provision measure to be established to determine if, and when, a community facility could be required, along with the form and purpose of that facility. Only when this information is known can consideration be given to location. It is not possible at this stage to determine whether the land contained within Adderstone Reserve, proposed for repurposing for housing, is a potential site for a future community facility. Additionally, options to sell or exchange the Pacific Drive portion of Adderstone Reserve and acquire land in a more suitable location for a community centre cannot be investigated until this information is known.

6. Description of options

Option 1: Retain Adderstone Reserve in its entirety

6.1 Under Option 1 all the existing Adderstone Reserve would be retained, as shown in Figure 3.

Figure 3: Option 1 – reserves retained

Option 2: Remove the reserve status on the Pacific Drive portion of Adderstone Reserve, to enable housing use, and retain the Abby Road portion

6.2 Under Option 2 the large open space portion of Adderstone Reserve, off Abby Road, would be retained. The 3,300m² portion on Pacific Drive would have its reserve status uplifted and repurposed for housing.

6.3 Option 2 would retain a 7.5m buffer from the edge of the existing planting to the proposed new boundary to ensure existing plantings did not overhang the boundary as they mature.

Figure 4: Option 2 – Pacific Drive portion to housing, Abby Road portion retained

Option 3: Remove the reserve status on both Pacific Drive and Abby Road portions of the reserve to enable housing use

6.4 Under Option 3 both the 3,300m² portion of reserve off Pacific Drive, and the 1.6 ha portion off Abby Road would have their reserve status lifted and be made available for housing.

Figure 5: Option 3 – Pacific Drive and Abby Road portions to housing

7. Analysis of options

7.1 Option 1, retaining all areas of Adderstone Reserve, supports a cautious approach, ensuring land is retained until the broader need for community facilities are known and the impact of the medium density housing zone understood.

7.2 The Community Places report notes the possible shortfall in community facilities in Aokautere. Option One retains the land on Pacific Drive, providing Council with the potential to either:

· Be a location for community facilities,

· Be exchanged for other land in an alternative location, or

· Sold with the proceeds used to purchase reserve land elsewhere.

7.3 While the uptake of sites within the Medium Density zone is uncertain, retaining the balance of Adderstone Reserve in case demand increases beyond that forecast is a more cost-effective strategy than disposing of reserve land now and attempting to acquire new reserve land on the open market in the future.

7.4 Option 1 aligns with most of the objections and submissions received during the community engagement and will meet the concerns raised about protecting the green corridors and the preservation of open space.

7.5 Council consulted the community on the potential use of portions of Adderstone Reserve for housing. If in the future Council wished to repurpose any part of Adderstone Reserve, for community facilities, then a new public consultation process would be required.

7.6 Option 1 does not support Council’s objectives for increasing housing supply and it is the option that delivers the least financial return to Council.

7.7 Option 2, using the Pacific Drive portion for housing, enables Council to release a modest amount of land for housing and to generate income.

7.8 The risk with Option 2 is that if community facilities are required in the future the land at Pacific Drive would not be available for either use or exchange/sell to facilitate a community facility.

7.9 Option 2 addresses most of the objections and submissions made which supported the retention of the Abby Road portion of Adderstone Reserve in particular.

7.10 Option 3, making both the Pacific Drive portion and 1.6 ha of the Abby Road portion of Adderstone Reserve available for housing would deliver on the Council goal of increasing housing supply and deliver a greater income for Council than Option 2.

7.11 Option 3 received the highest number of objections in the community consultation.

7.12 The risks associated with Option 3 are:

· The medium density housing zone will place additional pressure on reserves in the area which is difficult to quantify. If further land were required in the future, Council would have to attempt to purchase this on the open market. There is no guarantee that this land would be available.

· The ability to deliver housing on the Abby Road portion of the land will be dependent on private landowner agreements as the area has no functional road access. It is likely that any housing outcome would take some considerable time to deliver.

8. Conclusion

8.1 As a result of:

· The points raised in several submissions about retaining reserves,

· The Community Places Report indicating the needs for future community facilities has not been determined, and

· Consideration of the impacts of the medium density zone on the long-term demand for reserves in Aokautere

Officers recommend Option 1, that Adderstone Reserve be retained in its entirety, to protect future Council decision making.

8.2 The decision on the proposal to partially repurpose Adderstone Reserve for housing informs Plan Change G. By adopting Option 1, Council is excluding the reserve from further consideration for new roads or residential sections as part of the structure plan within Plan Change G.

9. Next actions

9.1 Advise submitters of the outcomes of the consultation process.

9.2 Reassess the future of the portion of Adderstone Reserve fronting Pacific Drive once the need for a community facility within Aokautere has been determined.

10. Outline of community engagement process

10.1 The submissions and a summary report were received on 30 November 2022 including a consultation overview. Forty-six submissions were received; of these:

· 5 submitters were neutral.

· 20 opposed both portions being used for housing.

· 16 supported both portions being used for housing.

· 11 opposed the Abby Road portion being used for housing.

· 1 opposed the Pacific drive portion being used for housing.

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
In considering the 2021 Housing Capacity Assessment, Council adopted the recommendations including “9.3 … investigate opportunities to re-purpose reserves for housing”. Council is required to consult and consider any objections to a proposal to uplift a reserve status as per the Reserves Act 1977 section 25.
The recommendations contribute to and Goal 1: An Innovative and Growing City Goal 2: A Creative and Exciting City
The recommendations contribute to the achievement of action/actions in City Growth and Active Communities The action is: · The City Growth Plan contains an action to investigate the re-use of underutilised Council and government land for housing. · The Active Communities Plan: Administer the Reserves Act 1977.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendations support social, cultural and environmental well-being by preserving the reserves and their capacity to support future recreation needs and potential community facilities.

Attachments

Nil

REPORT

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Part Waterloo Park - Proposal to exchange land

PRESENTED BY: Kathy Dever-Tod, Group Manager - Parks and Logistics

APPROVED BY: Bryce Hosking, Acting Chief Infrastructure Officer

RECOMMENDATION(S) TO Council

1. That Council agree to consult the community, in accordance with Section 15 of the Reserves Act 1977, on the proposal to exchange 1,300m² of Waterloo Park, being part of Part Lot 44 DP 22620 held in title WN8C/884, for new reserve land in the Roxburgh Crescent area if the rezoning of that area is approved.

2. That Council note that the land is Crown derived and such final approval of the exchange is subject to the approval of the Department of Conservation.

Summary of options analysis for

Problem or Opportunity	Council is in the process of considering rezoning industrial land in the Roxburgh Crescent area to residential use. Part of Waterloo Park is a strip of land 11m wide and 120m long that acts as a buffer between the existing industrial activities and the residential housing in Tilbury Avenue. This portion of the reserve has minimal recreation value at present. An opportunity has arisen to exchange this strip of land for land of equivalent value in a location which would provide enhanced access to the river. If the Council wishes to pursue this option, a resolution is required to consult with the community on a land exchange, under the provisions of the Reserves Act. The result of the consultation would inform a final decision and application to the Department of Conservation.
OPTION 1:	Consult the community on the proposed land exchange
Community Views	· Community views on the exchange will be considered through the public notification and hearings process.
Benefits	· Community views are understood before a decision is made. · The requirements of the Reserves Act for public notification and consideration of objections will be met. · New river entrance is enhanced, including space for large trees and parking. · Removes safety concerns of a dead-end buffer area.
Risks	· The community may not engage in the process, given that the strip of land is currently not readily accessible to the public.
Financial	· Advertising costs, staff time on the public consultation, hearings and reporting.
OPTION 2:	Decline the proposed reserve exchange
Community Views	· Community views would not be sought under this option.
Benefits	· Costs associated with the land exchange would not be incurred.
Risks	· The opportunity to enhance access to the river at this location would not be realised. · Trees would have to be removed and the amenity value of the strip would be low. · There may be safety concerns about the dead-end space between housing in the future. · Rework of the proposed plan change structure plan would be required which may result in the loss of some of the wider plan change benefits.
Financial	· Reduces staff time spent on the reserve exchange proposal. · Increases time spent on the plan change as a rework of the draft structure plan will be required under this option.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 Council is considering rezoning Roxburgh Crescent industrial area to residential.

1.2 As part of preparing a draft structure plan for the area, an assessment of the park environments and access was completed.

1.3 This report considers that portion of Waterloo Park which acts as a reserve buffer strip between the industrial and residential areas.

1.4 The report recommends that Council consults on a proposal to exchange the existing 1,300m² buffer area for an area of similar value within the proposed rezoned area, to improve the amenity and accessibility to the Manawatū River environments.

2. Background and previous council decisions

2.1 Palmerston North City Council (‘Council’) has been working alongside the owners of the various industrial properties in the Roxburgh Crescent area regarding a proposal to rezone the area to residential land use. The first stage of community pre-engagement is complete with further engagement planned for 2023.

2.2 In considering rezoning the area a review of parks servicing and access requirements was completed.

2.3 The assessment included consideration of the portion of Waterloo Park that acts as a buffer between the existing industrial activities and the residential properties on Tilbury Avenue.

2.4 The resulting proposal is to exchange 1,300m² of Waterloo Park^{^[7]} for a new reserve in an adjoining brownfields development, enabling the existing buffer strip to be used for housing.

3. Existing Reserve Description and use

3.1 The area of land proposed to be exchanged functions as a buffer strip between the residential housing and the current industrial uses on the adjoining property. The area of land proposed to be exchanged is approximately 1,300m², in an 11m x 120m long shape as shown in Figure 1.

Figure 1: Buffer strip location

3.2 Figures 2, 3, and 4 show the buffer strip as currently maintained and the vegetation on it.

3.3 The buffer strip contains large gum and wattle trees, which are excellent specimens; however, a number overhang the boundaries and are likely to drop limbs. These trees would pose a risk to any new housing on the adjacent land and are likely to require removal should the land be rezoned and used for residential housing.

3.4 The buffer strip has evidence of being a green waste dumping area, and there is extensive weed invasion down one end, as shown in Figure 5.

Figure 2: Area of Waterloo Park proposed to be exchanged

A picture containing tree, outdoor, plant

Description automatically generated

Figure 3: Waterloo Park buffer strip – entrance

A picture containing tree, plant, outdoor, beech

Description automatically generated

Figure 4: Waterloo Park buffer strip photo – Gums and Wattles

A picture containing tree, outdoor, grass, plant

Description automatically generated

Figure 5: Waterloo Park buffer strip – weed infestation

3.5 The buffer area has low level of recreation value to the general community. Use is limited, two neighbouring properties that have gates allowing them to access the riverside by climbing over the stop bank, approximately 100m away. The alternative river access for these properties is a 265m walk, as shown in Figure 6.

Figure 6: Manawatū River Access - Tilbury Avenue properties

4. Description of options

Option 1: Consult the community on the proposed land exchange

4.1 If the rezoning is approved the industrial activities will cease and the primary function of the buffer area, between industrial and residential activities, will no longer be required.

4.2 The exchange proposed is shown in Figure 7.

Figure 7: Reserve relocation proposal

4.3 The relocated reserve would provide the opportunity to create an attractive and new river entrance^{^[8]}. The reserve width would be added to the standard road reserve width enabling:

· larger tree species to be planted, like the environment between 42 and 54 Waterloo Crescent.

· parking, like the end of Albert Street, helping relieve the pressure on the small carpark at the Ruahine/Manawatu Street bend.

Option 2: Decline the proposed reserve exchange

4.4 Declining the proposed exchange would leave the reserve buffer in place as it currently exists.

4.5 The large trees would need to be removed at the time of residential development, if that were approved.

5. Analysis of options

Option 1: Consult the community on the proposed land exchange

5.1 Enhances and supports the Manawatū River Park and efforts to improve access to and values around it.

5.2 This option results in the loss of the reserve behind existing houses in Tilbury Avenue.

5.3 The costs and assumptions relating to the new river access point would be finalised as part of the update to the Parks Asset Management Plan and considered in the 2024/34 Ten Year Plan development. The assumed timing for the entrance development is 2027 or later.

Option 2: Decline the proposed reserve exchange

5.4 Under this option a narrow strip of land would be left behind houses in Tilbury Avenue and houses in the new subdivision, which would be undesirable from a safety point of view. The strip would provide little in the way of public amenity.

5.5 This option results in a rework of the structure plan to provide a simple river entrance, with the narrow road corridor width^{^[9]} allowing for limited parallel parking on one side of the carriageway and limited street trees.

6. LAND STATUS AND Reserves act requirements

6.1 Waterloo Park is contained in Part Lot 44 DP 22620 contained in title WN8C/884. The land is held as a recreation reserve under the Reserves Act 1977.

6.2 Under delegation from the Minister of Conservation, the Council can manage the process of the exchange proposal, however the final decision rests with the Minister as the land is Crown derived.

6.3 The process requires a Council resolution to publicly notify and seek any objection from the public. Once each objection has been considered, Council will need to pass a resolution and then apply to Department of Conservation for Minister’s authorisation by way of gazette to the exchange.

6.4 A copy of all objections and the decision on those objections would be forwarded with the application to the Department of Conservation.

6.5 Section 15(3) enables the Administering Body (Council) to give effect to an exchange including payment of receipt of money to ensure an equality of exchange. Council Officers will be negotiating for similar area of reserve or equal value and the draft plan change structure plan reflects this.

7. Conclusion

7.1 The proposed exchange would provide enhanced river access opportunities. Consulting the community will allow Council to understand the views and any objections in accordance with the Reserves Act 1977 before deciding whether to proceed with a land exchange, or not.

8. Next actions

8.1 Consult the community on the proposal to exchange the reserve land.

8.2 Hold hearings for submitters that wish to be heard.

8.3 Report on the submissions and consideration of any objections to the Council.

8.4 If approved, and subject to the rezoning process, apply to the Minister of Conservation for approval to proceed with the exchange.

9. Outline of community engagement process

9.1 The community engagement will include:

· Letter drop to the property owners within 500m walking distance including the industrial property owners

· Public Notice

· Sign on site on top of the stop bank

· Website

· Social Media posts

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 2: A Creative and Exciting City and Eco-City
The recommendations contribute to the achievement of action/actions in the Active Communities and Manawatū River Plan The actions are: Administer the Reserves Act 1977, and extend the walkway/ shared path network and develop new parks in residential growth areas
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The proposed land exchange adds value to the Manawatū River Park. It enhances a river access point with greater potential for more significant tree planting and parking.

Attachments

Nil

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: 5 Andrew Avenue - Proposal to grant a lease on Council land to The Scout Association of New Zealand

PRESENTED BY: Bryce Hosking, Acting Chief Infrastructure Officer

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That Council grant a lease of the land at 5 Andrew Avenue, Palmerston North, being described as part of Lot 2 DP 52257, to The Scout Association of New Zealand, in accordance with Section 54 of the Reserves Act 1997 and Council’s Support and Funding Policy 2022.

1. issue

1.1 The Scout Association of New Zealand has been operating at 5 Andrew Avenue, Palmerston North since 1957.

1.2 The formal land lease with The Scout Association expired in June 2016 and they have been operating on a month-by-month lease ever since. The Scout Association of New Zealand own their building, Council only leases the land to them.

1.3 The Scout Association requested a new lease so it can continue to operate. As the land leased to the Scouts is reserve land, the lease request is subject to Council’s Support and Funding Policy 2022 and the requirements of the Reserves Act 1977. This included public notification of Council’s intention to grant a new lease on the reserve.

1.4 The public notification process is now complete with no submissions received.

1.5 The report seeks approval to grant a new lease to The Scout Association of New Zealand in accordance with Section 54 of the Reserves Act 1977 and Council’s Support and Funding Policy.

2. Background

2.1 A report to Council on 30 November 2022 assessed the proposal and as a result Council resolved:

1. That Council notify the public of the intention to grant a lease on 5 Andrew Avenue, Palmerston North to The Scout Association of New Zealand, in accordance with Section 54 of the Reserves Act 1977.

2. That Council note the land area affected by the lease to The Scout Association of New Zealand is described as part of Lot 2 DP 52257.

2.2 Consultation was completed in February 2023. No submissions were received.

2.3 If entered the proposed lease will commence on 1 April 2023 and will be for a term of five (5) years with one right of renewal of a further five (5) years.

2.4 The proposed annual rent is to $50 excluding GST. This is consistent with the rental framework in Council’s Support and Funding Policy 2022.

3. reserves act consulTation and consideration of objections

3.1 Council has consulted the community on the proposal to lease as required by Section 54 of the Reserves Act 1977.

3.2 Public notice, as required by Sections 54(2) and 119 of the Reserves Act 1977, was published on 15 December 2022 in the Manawatū Standard, The Dominion Post and Council’s website.

3.3 No submissions were received and there were no requests to be heard. As such the requirements of Section 120 of the Reserves Act have been met.

4. conclusion

4.1 Council have been supporting the Scout Association through leasing land to them since 1957.

4.2 Given there were no objections to the new lease proposal, and both the requirements of the Reserves Act and the Support and Funding Policy have been met, it is recommended that Council continue to support them and proceed with granting a new lease to The Scout Association of New Zealand.

5. Next actions

5.1 A new lease is executed between Palmerston North City Council and The Scout Association of New Zealand.

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 achievement of action/actions in Active Communities The action is: Council supports a variety of clubs and organisations through consistent and transparent lease arrangements at parks and reserves and community centres.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendation is in line with Council's Support and Funding policy, which seeks to support community groups to deliver benefits responding to cultural, economic, environmental and social well-being of the city.

Attachments

Nil

report

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: 16 Featherston Street (part of Takaro Park) - Proposal to continue supporting the Takaro Sports Club by notifying the intention to grant community occupancy lease of Council land

PRESENTED BY: Bryce Hosking, Acting Chief Infrastructure Officer

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That Council continues to support Takaro Sports Club Incorporated by notifying the public of its intention to grant community occupancy of Council land at 16 Featherston Street (part Takaro Park), Palmerston North, in accordance with the Support and Funding Policy 2022 and Section 54 of the Reserves Act 1977.

2. That Council notes the land affected by the community occupancy of Takaro Sports Club is described as Lots 1 -12 inclusive and Lots 14 and 15 DP 2938.

Summary of options analysis for

Problem or Opportunity	Takaro Sports Club has requested further support from Council by granting community occupancy through a new lease agreement. Under the Council’s Support and Funding Policy if a for-purpose organisation requests a new lease for the occupancy of Council land at the end of their agreed term the proposal is to be publicly advertised to seek feedback from the public. As the leased land is reserve land, any new lease is subject to the requirements of the Reserves Act 1977 that also requires public notification of Council’s intention to grant a new lease on the recreation reserve.
OPTION 1:	Notify the public of Council’s intention to continue supporting Takaro Sports Club by granting occupancy via a lease under the Reserves Act 1977 of the existing site being part of Takaro Park.
Community Views	· Community views will be sought during the public notification period.
Benefits	· The community views, along with any objections received as required under the Reserves Act 1977, will be considered to inform the decision. · Council can continue supporting and developing the relationship with Takaro Sports Club. This enables Takaro Sports Club to continue their activities.
Risks	· No risks are identified.
Financial	· The cost of public notification will be minor. · Council will continue to receive the annual rent of $500 + GST.
OPTION 2:	Do not notify the public of the preferred option (intention to support the Club through a lease) that would effectively cause the discontinuation of Takaro Sports Club’s occupancy of Council land.
Community Views	· Community views to inform the Council’s decision on the club’s proposed occupancy will not be sought.
Benefits	· Should the lease end, and the club be requested to vacate the premise, Council will explore options for the continued use of the land prior to potentially seeking alternative community occupancy options. This process is a requirement under the Support and Funding Policy and gives the opportunity to investigate alternative use of reserve land when a leasing arrangement ends. · Under the current lease, at the expiration of the lease Council has the option to purchase the Club’s buildings and improvements within three months of the date of expiration at a price agreed between both parties.
Risks	· Council may be perceived as not supporting the sport and recreation activities of Takaro Sports Club. · If Council wish to proceed with this option, the club will be required to vacate the land and, unless agreed otherwise, remove all assets and return the land to its original state.
Financial	· Council would no longer receive the annual rent of $500 + GST. · Council staff time would be required to assist with the process of requiring the removal of their improvements.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 Takaro Sports Club has been occupying Council land at 16 Featherston Street, Palmerston North since 1950.

1.2 Their lease expired in March 2019 and the Club now requests a new lease so they can continue to operate from the site.

1.3 This report seeks Council’s approval to commence the public notification process for the preferred option (Option 1) in accordance with the Support and Funding Policy and Section 54 of the Reserves Act 1977.

2. Background and previous council decisions

2.1 Takaro Sports Club, previously known as the Takaro Bowling and Croquet Club Incorporated, was formed in 1923. Since that time the Takaro Sports Club has played an active role in the community. Takaro Sports Club provide both indoor and outdoor sports including table tennis, indoor and outdoor bowls, chess, (beach) volleyball, gateball and pool. These activities benefit the mental and physical wellbeing of the Palmerston North Community.

2.2 Takaro Sports Club has over time developed the area with the expansion of club rooms and sporting facilities. The Club has made significant investments to improve its facilities, as noted in the Club’s annual Financial Statement for 2022, with the total value of its fixed assets of $421,324.00.

2.3 Takaro Sports Club also work in partnership with other sporting groups in the community, making their facilities available for other for-purpose groups to utilise.

2.4 Council has supported Takaro Sports Club (and predecessor clubs) since 1950, providing the Club tenure of Council reserve land at community rental rates.

2.5 The current lease for 1.19 hectares of land, granted in April 2009, was for a term of five (5) years with one right of renewal of five years, and expired in March 2019.

2.6 The bowling club part of Takaro Sports Club had been negotiating a merger with other local bowling clubs since 2019. While this process has been taking place, the Club has been occupying the land on a month-by-month basis since the expiration of its lease.

2.7 Takaro Bowls did not end up merging with Northern and Terrace End bowling clubs. A member of Takaro Bowls has notified Council Officers that all bowling clubs remain separate.

2.8 Council Officers and Takaro Sports Club have been in contact through the process for a new lease. As the decision about merging with the other bowling clubs has been finalised, Takaro Sports Club wish to enter a new Deed of Lease with Council.

3. The proposal

3.1 The proposed lease area sought by the club is approximately 1.19 hectares and situated at 16 Featherston Street, Palmerston North (being part of Takaro Park) outlined in red as shown in Figure One.

3.2 If the land-only lease is granted, the proposed annual rent is to be $500 + GST. This is consistent with the rental framework in Council’s Support and Funding Policy 2022.

3.3 The proposed term would be five (5) years, with a right of renewal for a further five (5) years.

3.4 If a new lease is commenced, the use of the site will remain the same (refer section 2.1 for details).

Figure One: Proposed lease area

4. ASSESSMENT OF PROPOSAL against THE Support and Funding Policy

4.1 The Support and Funding Policy provides a framework for how Council will deliver support and funding to groups, organisations and individuals to achieve the vision of the city.

4.2 A form of support within the policy is to enable for-purpose groups to occupy Council-owned property for the operation of sporting, recreational and community/social services along with early childhood educational purposes, at community rental rates.

4.3 All for-purpose groups expressing an interest in occupying Council-owned property, either for a new occupancy or renewal of an existing occupancy, must make an application. The application is then assessed by Council Officers to ensure that firstly they meet the policy’s eligibility criteria before proceeding any further. The Takaro Sports Club meets the eligibly criteria of a for-purpose organisation as an incorporated society.

4.4 Please refer to Appendix 1 for a copy of the application from the Takaro Sports Club.

4.5 Further assessment considerations are outlined in section Part B - 8c of the policy. In broad terms, the assessment covers three main areas:

a) The Policy for the Use of Public Space – guidelines relevant to the application.

b) Reserves Act 1977 – including consideration of the values and purpose of the reserve and the impacts on the public use of the reserve.

c) Impact on the locality and park operations.

A copy of the assessment is attached as Appendix 2.

4.6 In summary, following the assessment against the policy, Council Officers conclude that Takaro Sports Club meets all criteria required.

4.7 Furhter, Takaro Sports Club has a significant amount of value in the improvements (eg. clubrooms and ancillary buildings) on the reserve land and it is important that they are able to secure long term tenure to access long term funding to maintain these assets and continue to provide sport and recreation opportunities to its members.

5. leasing powers under reserves act

5.1 In addition to the Support and Funding policy requirements, as the land is a reserve held under the Reserves Act 1977, the leasing provisions also apply.

5.2 Section 54(1)(b) of the Reserves Act 1977 allows for an administering body to: 

‘lease to any voluntary organisation part of the reserve for the erection of stands, pavilions, gymnasiums, and, subject to sections 44 and 45, other buildings and structures associated with and necessary for the use of the reserve for outdoor sports, games, or other recreational activities, … which lease shall be subject to the further provisions set out in Schedule 1 relating to leases of recreation reserves issued pursuant to this paragraph: 

provided that a lease granted by the administering body may, with the prior consent of the Minister given on the ground that he or she considers it to be in the public interest, permit the erection of buildings and structures for sports, games, or public recreation not directly associated with outdoor recreation.’ 

5.3 ‘Necessary’ is not interpreted as requiring that all or even most visitors or users of the reserve need/want to use the service or activity provided under the lease.  Reserves often have activities on them that only some of the visitors to the reserve use.  The balance of the reserve, Takaro Park, is available for general use by the community.

5.4 The proposal would see the continued use of part of the reserve by the Takaro Sports Club. The lease does not alter the current user experience or change the existing capacity for other activities.

6. land status

The legal description and status of the land is:

Title

Reserve status

Comment

Lots 1 -12 inclusive and Lots 14 and 15 Deposited Plan 2938

WN 511/127

WN 293/218

WN 298/166

Recreation Reserve

During transfer of ownership a purpose was not stated on the transfer.

By NZ Gazette 1999 page 775, all lots described were declared to be a recreation reserve within the meaning of the Reserves Act 1997.

7. giving effect to the principles of the treaty of Waitangi

7.1 The Reserves Act 1977 is subject to Section 4 of the Conservation Act and requires that administering bodies under the Reserves Act 1977 give effect to the principles of the Treaty of Waitangi.

7.2 Rangitāne o Manawatū representatives have considered the proposal. Rangitāne are comfortable with this proposal and happy for it to proceed.

8. DESCRIPTION and analysis of OPTIONS

Option 1: Notify the public of Council’s intention to continue supporting Takaro Sports Club by granting occupancy via a lease under the Reserves Act 1977 of the existing site being part of Takaro Park

8.1 This is the preferred option.

8.2 Council will seek feedback on continuing to support Takaro Sports Club through the process outlined in the Support and Funding Policy.

8.3 Council must give people the opportunity to object to the proposal, and be heard, before deciding to grant a lease as per sections 119 and 120 of the Reserves Act 1977.

8.4 After considering feedback, Council can then decide to enter a formal lease with the Takaro Sports Club.

8.5 Takaro Sports Club contribute to the community and show strong alignment with Council’s strategic direction. Takaro Sports Club adds to Council’s priority to be one of the most active communities in New Zealand.

Option 2: Do not notify the public of the preferred option and discontinue the occupancy of Council land to Takaro Sports Club

8.6 The impact of this option would mean that that the opportunity to seek community feedback on Takaro Sports Club’s continued occupancy of the site would not occur.

8.7 In turn, this would mean that the lease would cease, and Council would then need to follow the process outlined in the Support and Funding Policy to determine the future use of the land/recreation reserve (refer 5.5.1 b). The first step in this process is to carry out a strategic options review.

8.8 The implications of this option on the Club would mean that they would not be able to continue leasing the site. Under the Deed of Lease’s provisions, a decision would then need to be made regarding the improvements owned by the Club.

8.9 This option poses the risk that Council will be negatively perceived by not supporting the activities of the Takaro Sports Club, and predecessor clubs, that have occupied the site for 73 years.

9. Conclusion

9.1 The proposal is consistent with the purpose of recreation reserves as the Takaro Sports Club is a facility supporting public recreation and enjoyment of Takaro Park, Palmerston North. It also meets the requirements of the Support and Funding Policy with continued occupancy allowing the Club to offer a wide range of sporting and recreation activities to the community.

9.2 Public notification on the continuing support will provide opportunities for submissions and objections to be made before a decision is made fulfilling the requirements of the Support and Funding Policy 2022 and the Reserves Act.

9.3 It is recommended Council proceed with Option 1 which is the preferred option. Takaro Sports Club’s activities contribute to outcomes to achieve goal 2 of Council’s strategic direction. The Club are sharing their space with other for-purpose groups. The Club enhance the uniqueness of the space.

10. Next STEPS

10.1 Public notification of the intention to grant the lease, seeking submissions and objections.

10.2 Provide the opportunity for any submitters that wish to be heard to speak to Council.

10.3 Consider the objections and submissions and provide advice to Council on whether to accept, modify or decline the lease proposal.

11. Outline of community engagement process

11.1 The proposed consultation process meets the public notification requirements of the Support and Funding Policy 2022 and the Reserves Act that requires a minimum of one month period advertised in the Manawatū Standard and on the Council website.

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 achievement of action/actions in Active Communities The actions are: Provide sport and recreation opportunities in all of the City’s parks and reserves, that are responsive to the needs and views of communities of interest.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendation is in line with Council’s Support and Funding Policy which supports community groups to deliver benefits contributing to the cultural, economic, environmental and the social well-being of the city.

Attachments

1.	Takaro Sports Club Application ⇩
2.	Assessment of Lease Proposal ⇩

REPORT

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: 21 Guildford Street (part of Ashhurst Village Valley Centre), Ashhurst - Proposal to continue supporting the Ashhurst Community Trust by renewing exclusive community occupancy of Council land

PRESENTED BY: Bryce Hosking, Acting Chief Infrastructure Officer

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee supports Ashhurst Community Trust’s proposal by notifying the public of its intention to grant community occupancy of Council land at 21 Guildford Street (part of Ashhurst Village Valley Centre), Ashhurst, in accordance with the Support and Funding Policy 2022.

2. That the Committee notes that the land affected by the community occupancy of Ashhurst Community Trust is described as part of Sections 339 and 340, DP 152.

Summary of options analysis for

Problem or Opportunity	The Ashhurst Community Trust propose to expand the area they lease from Council at 21 Guildford Street (part of Ashhurst Village Valley Centre), remove one of its buildings and replace it with a new building. Under the Council’s Support and Funding Policy, if a for-purpose organisation requests a new lease for the occupancy of Council land, the proposal is to be publicly advertised to seek feedback from the public.
OPTION 1:	Notify the public of Council’s intention to support Ashhurst Community Trust by entering a new lease and expanding their lease area from 456m² to 936m² at 21 Guildford Street, Ashhurst.
Community Views	· Community views will be sought during the public notification period. · The Trust has had general conversations with the community and reports great enthusiasm for this proposal.
Benefits	· The community views, along with any objections received as required under the Support and Funding Policy, will be considered to inform the decision to enter a lease. · Council can support a new positive community initiative. This enables The Trust to expand its activities and present the community with further opportunities.
Risks	· The proposal will alter the current visual appearance of the site and see a new building erected on the site which may not be viewed positively by residents who do not have an interest in the new Woodshed activities. · Dependant on finalised plans for the proposal, this option may result in the removal of a few long-standing trees on the site. This risk could be managed through the consenting process through additional landscaping as a consent condition.
Financial	· Cost of public notification will be minor. · Council will continue to receive the annual rent of $100 (excluding GST) even if the proposed expanded lease area is granted.
OPTION 2:	Do not notify the public of the intention to enter a new lease and expand the land lease area, noting that their current lease would continue in its current form and that this would effectively prevent the Trust proceeding with their proposed development at this time.
Community Views	· No community views would be sought.
Benefits	· The Trust’s current occupation would continue, and they would be able to continue to occupy their current 465m² lease area until 31 March 2024 when their current lease expires. · The lease area will remain the same as no additional buildings or alterations will be placed on the site.
Risks	· Council may be perceived as not supporting the activities of The Trust and not supporting new initiatives in the Ashhurst community.
Financial	· Council will continue to receive $100 (exclidong GST) until 31 March 2024 at which time the lease will be reviewed.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 The Ashhurst Community Trust has been receiving support from Council by occupying Council land, via a lease at community rental rates. The Trust have been occupying Council land at 21 Guildford Street (part of Ashhurst Village Valley Centre) since 2014.

1.2 The current lease is for the land only and expires in March 2024. The 456m² piece of land subject to the lease has two buildings on it that are both owned by the Trust. The Trust uses these for occasional meetings and they are also used by Ashhurst Drama group.

1.3 The Trust propose to expand the area they lease from Council, remove one of its buildings and replace it with a new building (an old schoolhouse) of approximately 292m² to create ‘The Woodshed’. The Woodshed will provide opportunities for members of the community to take part in joinery and fabrication projects that support and create connections within the community.

1.4 Under the Council’s Support and Funding Policy, if a for-purpose organisation requests a new lease for the occupancy of Council land the proposal is to be publicly advertised to seek feedback from the public.

1.5 This report seeks Council’s approval to commence the public notification process for the preferred option in accordance with the Support and Funding Policy 2022.

2. Background and previous council decisions

2.1 Ashhurst Community Trust is a for purpose group whose objective is to pursue community initiatives. The Trust have been involved in the Ashhurst Skate Park project, providing financial support to drama groups, preschool music and movement groups, amongst other additional support to the community.

2.2 The Trust’s current lease commenced on 1 April 2014 and expires on 31 March 2024.

2.3 The Trust acknowledges there is a lack of woodworker groups in Ashhurst; senior members of the community who are skilled craftsmen wish to pass on their skills to other members of the community. Similar activities have been successful in the Palmerston North area, and the Trust believe this activity will be of great benefit to the Ashhurst community and the wider valley area.

2.4 The Trust wish to expand their building footprint by removing one of their current buildings and replacing it with an old schoolhouse building. This will require a resource consent and detailed plans.

2.5 If Council approves public consultation, a detailed plan will be provided to Council as part of the post consultation report seeking Council’s decision to proceed or not.

3. the proposal

3.1 The Trust propose to remove one of its buildings and replace it with a new building of approximately 292m² (previously used as a school classroom), which will be moved onsite. They plan to attach the classroom to the existing building and include an additional storage shed.

3.2 The current leased area is less than what is required for the Trust to implement their proposal. The lease area sought by the Trust is approximately 936m², situated at 21 Guildford Street outlined in red as shown in Figure One.

3.3 The Trust proposes to invest a significant amount to expand its services to the community on Council land. It is important that they surrender their current lease and enter a new lease. This process enables the Trust to secure long-term tenure to access long-term funding to proceed with its proposed expansion.

3.4 If the land lease is granted, the proposed annual rent is to be $100.00 (excluding GST). This is consistent with the rental framework in Council’s Support and Funding Policy 2022.

3.5 The proposed term would be five (5) years, with a right of renewal for a further 5 years.

3.6 If a new land lease is granted, the use of the site will also enhance the range of recreational activities available at the Ashhurst Village Valley Centre.

Figure One: Proposed lease area

4. Assessment of proposal against the support and funding policy

4.1 The Support and Funding Policy provides a framework for how Council will deliver support and funding to groups, organisations and individuals to achieve the vision of the city.

4.3 All for-purpose groups expressing an interest in occupying Council-owned property, either for a new occupancy or renewal of an existing occupancy, must make an application. The application is then assessed by Council Officers to ensure that firstly they meet the policy’s eligibility criteria before proceeding any further. The Trust meets the eligibly criteria of a for-purpose organisation as a charitable trust.

4.4 A copy of the Trust’s application is contained within Appendix 1.

4.5 Further assessment considerations are outlined in section Part B - 8c of the policy. In broad terms, the assessment covers three main areas:

a) The Policy for the Use of Public Space – guidelines relevant to the application.

b) Reserves Act 1977 – this is not applicable in this case as the land does not have reserve status.

c) Impact on the locality and park operations.

This assessment is contained within Appendix 2.

4.6 In summary, following the assessment against the policy, Officers conclude that Ashhurst Community Trust is providing community good, however, as a result of the expansion, there is some impact on the locality and park operations in the area.

5. Land status

5.1 The legal description of the land is:

Title

Reserve status

Comment

Section 339 Town of Ashhurst (DP 152)

Section 340 Town of Ashhurst (DP 152)

None

The land that forms the Ashhurst Village Valley Centre is not held as a reserve and is not therefore subject to the provisions of the Reserves Act

6. Giving effect to the principles of the treaty of waitangi

6.1 The Support and Funding Policy requires that Rangitāne o Manawatu are consulted on the proposed activity.

6.2 Rangitāne o Manawatu will be consulted during the public notification period.

7. Description and analysis of options

Option 1: Notify the public of Council’s intention to support Ashhurst Community Trust by entering a new lease and expanding their lease area from 456m² to 936m² at 21 Guildford Street, Ashhurst

7.1 This is the preferred option.

7.2 Council will seek feedback on continuing to support the Trust through the process 5.5.1(a) outlined in the Support and Funding Policy.

7.3 Council must give people the opportunity to object to the proposal, and be heard, before deciding to grant a lease as per the Support and Funding Policy.

7.4 After considering feedback, Council can then decide to enter a formal lease with the Trust.

7.5 The Trust contributes to the community and shows a strong alignment with Council’s strategic direction. The Trust adds to Council’s priority to lease Council land and facilities to for-purpose organisations, in line with the Community Support and Funding Policy.

Option 2: Do not notify the public of the intention to enter a new lease and expand the land lease area, noting that their current lease would continue in its current form and that this would effectively prevent the Trust proceeding with their proposed development at this time

7.6 The impact of this option would mean that that the opportunity to seek community feedback on the Trust’s continued occupancy of the site would not occur.

7.7 In turn, this would mean the current lease will continue and would expire on 31 March 2024. Three months prior to lease expiry Officers will contact the Trust to determine future intentions.

7.8 This option poses the risk that Council will be perceived as not supporting the activities of the Trust.

8. Conclusion

8.1 The proposal would see the Trust enhance the range of activities offered from the Ashhurst Village Valley Centre site. The Trust shares the space with other for-purpose groups and intends to continue with this arrangement.

8.2 Public notification on the continuing support will provide the opportunity for submissions and objections to be made before Council decides whether to grant a new lease or not.

8.3 It is recommended Council proceed with Option 1 and undertake public consultation.

9. Next actions

9.1 Public notification of the intention to grant the lease, seeking submissions and objections.

9.2 Provide the opportunity for any submitters that wish to be heard to speak to Council.

9.3 Consider the objections and submissions and provide advice to the Committee on whether to accept, modify or decline the lease proposal.

9.4 If Council approves public consultation, a detailed plan will be provided to Council as part of the post consultation report seeking Council’s decision to proceed or not.

10. Outline of community engagement process

10.1 The proposed consultation process meets the public notification requirements of the process 5.5.1(a) of the Support and Funding Policy 2022.

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 achievement of action/actions in Connected Communities The action is: Build and maintain relationships with local communities of identity, interest and place to understand and support their strengths and aspirations.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendation is in line with Council’s Support and Funding Policy which supports community groups to deliver benefits contributing to the cultural, economic, environmental and the social well-being of the city.

Attachments

1.	Application to occupy Council land ⇩
2.	Assessment against the Support and Funding Policy ⇩

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Elected Member Expenditure 2021/22

Presented By: Scott Mancer, Finance Manager

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee receive the memorandum titled ‘Elected Member Expenditure 2021/2022’, presented to the Strategy & Finance Committee on 22 March 2023.

1. ISSUE

This report is presented annually in accordance with the Elected Member Expenses Policy which requires annual reporting of the Mayor and Deputy Mayor expenses to the Committee.

It is presented to the first Strategy & Finance Committee meeting of the triennium.

The memorandum also covers off a series of directions given through resolutions of the Finance & Audit committee of the previous term of Council:

· ‘That the annual Expenses of the Mayor & Deputy Mayor report address discretionary expenditure and that the expenses of the Mayor and Deputy Mayor be reported separately.’ (40-20)

· ‘Discretionary expenditure’ was itemised by the Chair as covering hospitality, training, travel, accommodation and gifts and was also to include credit card expenditure and the Mayoral Relief and Discretionary funds. These have been listed separately below as spending by the Mayor, Deputy Mayor, Mayor’s office and discretionary budgets.

· ‘That all expense claims by Elected Members are reported annually to the Finance & Audit Committee.’ (41-21)

A subsequent resolution to include taxi chit charges in expense claims will be included in 2022/23 FY reporting.

There was a further resolution of the Committee, related to the Elected Member Training and Development Policy. This is reported through the Quarterly Performance Report.

· ‘That attendance approved, and expenditure of the Elected Member Development and Training Budget is provided quarterly to the Finance & Audit Committee.’ (24-21)

2. BACKGROUND

2.1 At its meeting of 16 November 2022, Council gave delegation to the Chairperson of the Strategy & Finance Committee or the Chair of Risk & Assurance Committee to approve expenses (all invoices and credit card transactions) incurred by the Mayor, retrospectively.

2.2 Furthermore, the expenditure reported here is subject to audit undertaken by Audit NZ through the audit of the annual report. Their scope includes reviewing the effectiveness and efficiency, waste, and testing for a lack of probity or financial prudence. Findings are then reported to the Strategy & Finance Committee.

2.3 This report, therefore, adds a level of good practice by providing a summary of the expenses of the Mayor and Deputy Mayor to the Strategy & Finance Committee in a regular and timely manner.

3. EXPENDITURE

3.1 Below is a summary of relevant expenditure from the Mayoral Office, Mayor’s Discretionary, Mayor’s Relief Fund and Elected Member Support. The summary presents only a part of these budget lines for the 2021/22 financial year.

3.2 For comparative context the table is provided below.

Table 1: Comparative totals

Financial year	Total controllable expenditure	Budget
2019/20	133,902	209,780
2020/21	189,569	202,216
2021/22	145,020	221,652

Table 2: Mayor’s Office budgets (discretionary expenditure only)

	21/22 Actual	21/22 Budget	20/21 Actual
Hospitality	17,935	23,304	33,424
Training	4,300	8,256	6,292
Travel and Accommodation	6,362	22,296	15,817
Gifts	5,884	Not separately budgeted	4,286
TOTAL	$34,481	$53,856	$59,819

Table 3: Discretionary budgets (Mayor)

	21/22 Actual	21/22 Budget	20/21 Actual
Mayor Discretionary	11,223	10,800	14,315
Mayor Relief	4,931	1,116	10,275
(Donations received)	(8,732)	n/a	(14,489)
TOTAL	$7,422	$11,916	$10,101

Table 4: Sensitive expenditure (by Mayor, Deputy Mayor) excluding credit card transactions

	GRANT SMITH	ALEISHA RUTHERFORD
Hospitality	13,815	90
Training	1,427
Travel and accommodation	5,941	702
Gifts	3,771
Internet	231
TOTAL	$25,185	$792

4. expense claims

Below is a summary of all expense claims made by all Elected Members. There is overlap with the expenses above.

Table 5: Reimbursements (all Elected Members)

	ALEISHA RUTHERFORD	PATRICK HANDCOCK
Hospitality
Travel and accommodation		27
Gifts
Internet	463
TOTAL	$463	$27

5. CREDIT CARD USE

Below is a summary of all credit card transactions by the Mayor and Deputy Mayor for the 2021/22 financial year.

Table 6: Credit card (By Mayor, Deputy Mayor)

	GRANT SMITH	ALEISHA RUTHERFORD
Hospitality	4,104	55
Travel and accommodation	420	135
Gifts	2,113
Training	2,873	646
TOTAL	$9,510	$836

6. NEXT STEPS

Officers will bring a further report to this Committee to consider how we can best present this data to Elected Members and the public in future annual reporting.

7. 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?		No
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 5: A Driven & Enabling Council
The recommendations contribute to the achievement of action/actions in Governance and Active Citizenship
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Open and transparent governance contributes to trust and reputation of the Council.

Attachments

Nil

Committee Work Schedule

TO: Strategy & Finance Committee

MEETING DATE: 22 March 2023

TITLE: Committee Work Schedule

RECOMMENDATION TO Strategy & Finance Committee

1. That the Strategy & Finance Committee receive its Work Schedule dated March 2023.

COMMITTEE WORK SCHEDULE – MARCH 2023
Item No.	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction/ Clause number
1.	~~March 2023~~	~~Elected Member Expenditure~~	~~Chief Financial Officer~~		~~Elected Members Expenses Policy 2022~~
2.	~~March 2023~~	~~Draft Traffic and Parking Bylaw (street racer amendment) hearing~~	~~Chief Planning Officer~~		~~Terms of Reference~~
3.	~~March 2023~~	~~Quarterly Performance & Financial Report (quarter 2 ending 31 December 2022)~~	~~Chief Financial Officer~~		~~Terms of Reference~~
4.	~~March 2023~~	~~Treasury Report (Quarter 2)~~	~~Chief Financial Officer~~		~~Treasury Policy~~
5.	May 2023	Draft Traffic and Parking Bylaw (street racer amendment) deliberations	Chief Planning Officer		11 May 2022 Clause 24
6.	May 2023	Quarterly Performance & Financial Report (quarter 3 ending 31 March 2023)	Chief Financial Officer		Terms of Reference
7.	May 2023	Treasury Report (Quarter 3)	Chief Financial Officer		Treasury Policy
8.	May 2023	Waka Kotahi Recreation Pathways Fund Associated with Te Ahu a Turanga Highway - report on the outcome of the funding application, including any financial implications for consideration as part of the draft 2023/24 Annual Budget process	Chief Infrastructure Officer		27 April 2022 Clause 30
9.	May 2023	Information relating to the description, timing and quantum of the infrastructure work programmes to enable growth in Aokautere	Chief Infrastructure Officer		9 March 2022 Clause 11.4
10.	September 2023	Quarterly Performance & Financial Report (quarter 4 ending 30 June 2023)	Chief Financial Officer	Present to Council	Terms of Reference
11.	September 2023	Treasury Report (Quarter 4)	Chief Financial Officer	Present to Council	Treasury Policy
12.	September 2023	Treasury Policy Review	Chief Financial Officer		Treasury Policy
13.	November 2023	Quarterly Performance & Financial Report (quarter 1 ending 30 September 2023)	Chief Financial Officer		Terms of Reference
14.	November 2023	Treasury Report (Quarter 1)	Chief Financial Officer		Treasury Policy
15.	TBC	Rates review	Chief Financial Officer
16.	August 2024	Draft Waste Management and Minimisation Bylaw – Approval for Consultation	Chief Planning Officer		11 August 2021 Clause 21
17.	TBC	Vegetation Framework to include a Tree Policy focused on Council administered streets and public spaces	Chief Planning Officer		Committee of Council 9 June 2021 Clause 31.8

Attachments

NIL

[1] The Speed Limits Rule divides schools into two categories. Most schools will be category 1, which means that roads around that school should have a speed limit of no more than 30km/h. Roads around category 2 schools should have a speed limit of no more than 60km/h. A school must be specifically designated as category 2, and the SMP must include a statement that explains why a category 2 designation has been applied.

[2] Palmerston North Strategic Networks is a document that has yet to be adopted by the Council, but has been developed based on existing national, regional and local direction, including the PNITI Network Options Report. The intention here is to refer to Strategic Networks for considering the safe and appropriate speed limit on any roads where the other policies do not provide guidance.

[3] The Aokautere gullies are also off-lead areas however they are heavily vegetated.

[4] As defined by Stats NZ SA2 area unit – encompasses area from Summerhill, through Ruapehu Drive and up Pacific Drive, from Turitea Stream/Road through Moonshine Valley. Analysis by household and population numbers was underway at time of writing this report.

[5] At the time the report was written, ownership per household had not been analysed.

[6] 2019 draft structure plan showed 40 medium density lots compared to approximately 360 in the approved plan or 180 if the retirement village option progresses.

[8] For clarity this is a new river access, in addition to the existing access at the Ruahine bend, to the north of the plan change area.

[9] At the time of writing a 13m wide road corridor was under discussion.

Vaughan Dennison (Chair)
Karen Naylor (Deputy Chair)
Grant Smith (The Mayor)
Mark Arnott	Lorna Johnson
Brent Barrett	Orphée Mickalad
Lew Findlay (QSM)	William Wood
Patrick Handcock (ONZM)	Kaydee Zabelin
Leonie Hapeta

Submission No.	Submitter
5	Amanda Linsley (Manawatu Business Chamber)
30	Quinton Keyser
52	Jessie Buckley
85	Chris Teo-Sherrell
118	Scott Bennett
128	Ebey Prince
193	Daniel Walmsley
209	Charli Hedley
210	Brad Ritchie
234	Denise McLean (Townshend Joinery)
248	Lachlan Riddiford
251	Jack Townend
253	Antony Everson
258	Tony Gore
259	Inspector Phillip Ward (NZ Police)
284	Graeme Allomes
285	Susan Allomes

Submission No.	Submitter
17	Karl Ratahi

1.	Quarterly Performance and Financial Report - Period Ending 31 December 2022 ⇩
2.	Appendices to the Quarterly Performance and Financial Report - Period Ending 31 December 2022 ⇩

1.	Submissions (attached separately)
2.	Procedure Sheet ⇩