Agenda of Strategy & Finance Committee - Wednesday, 15 November 2023

Strategy & Finance Committee MEETING

15 November 2023

Order of Business

2. Apologies

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.

4. 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.

5. 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.)

6. Confirmation of Minutes Page 9

“That the minutes of the Strategy & Finance Committee meeting of 20 September 2023 Part I Public be confirmed as a true and correct record.”

7. Quarterly Performance and Financial Report - Period Ending 30 September 2023 Page 19

Memorandum, presented by Scott Mancer, Finance Manager and Andrew Boyle, Head of Community Planning.

8. Treasury Report - quarter ending 30 September 2023 Page 75

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

9. Waterloo Park - Land Exchange Proposal Decision Page 87

Report, presented by Aaron Phillips, Activity Manager - Parks.

10. Panako Park - Decision on Reserve Classification and Future of the Girl Guiding New Zealand Hall Page 109

Report, presented by Aaron Phillips, Activity Manager - Parks.

11. 2023 Housing and Business Development Capacity Assessment Page 119

Memorandum, presented by Tara Lennard, Planner and Sam Dowse, Senior Planner.

12. Indicator framework for the Long Term Plan 2024-2034 Page 127

Memorandum, presented by Kian Lee, Policy Analyst and Julie Macdonald, Strategy & Policy Manager.

13. Procurement Policy Page 137

Memorandum, presented by Paul Hollis, Procurement Manager.

14. Opie Reserve - Proposal to support Te Kōhanga Reo O Ngāti Hineaute Ki Rangitaane O Manawatū Trust by notifying the intention to grant community occupancy via a lease of Council land Page 165

Report, presented by Bryce Hosking, Group Manager - Property and Resource Recovery.

15. 21 Havelock Avenue (part of Bill Brown Park) - Proposal to support Papaioea Pasifika Community Trust by notifying the intention to grant a Licence Agreement of Council land Page 193

Report, presented by Bryce Hosking, Group Manager - Property and Resource Recovery.

16. 154 Centennial Drive - Proposal to continue supporting the Palmerston North Canoe Club Incorporated by notifying the intention to grant occupancy via a commercial lease of Council land and building Page 221

Report, presented by Bryce Hosking, Group Manager - Property and Resource Recovery.

17. 119 Highbury Avenue (part of Tui Park) - Proposal to grant a lease on Council land to Te Whatu Raranga o Highbury Weavers Page 233

Memorandum, presented by Bryce Hosking, Group Manager - Property and Resource Recovery.

18. 279 Albert Street (part of Hokowhitu Domain) - Proposal to grant a lease to Hokowhitu Bowling Club Incorporated Page 237

Memorandum, presented by Bryce Hosking, Group Manager - Property and Resource Recovey.

19. 309 Main Street - Proposal to grant a lease on Council land to Senior Citizens Association Palmerston North Incorporated Page 241

Memorandum, presented by Bryce Hosking, Group Manager - Properrty and Resource Recovery.

20. Vautier Park - Proposal to grant a lease on Council land to Netball Manawatū Centre Incorporated Page 245

Memorandum, presented by Bryce Hosking, Group Manager - Property and Resource Recovery.

21. Pioneer Reserve - Proposal to grant an easement on Council land to Powerco Limited Page 249

Memorandum, presented by Bryce Hosking, Group Manager - Property and Resource Recovery.

22. Deliberations on submissions - draft Interim Speed Management Plan (School Speed Limits) Page 253

Memorandum, presented by Peter Ridge, Senior Policy Analyst.

23. Committee Work Schedule Page 263

24. Karakia Whakamutunga

25. Exclusion of Public

To be moved:

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

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

General subject of each matter to be considered		Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution
16.	Attachment 2	COMMERCIAL ACTIVITIES: This information needs to be kept confidential to allow Council to engage in commercial activities without prejudice or disadvantage	S7(2)(h)

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

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].

Palmerston North City Council

Minutes of the Strategy & Finance Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 20 September 2023, commencing at 9.01am

Members

Present:

Councillors Vaughan Dennison (in the Chair), Karen Naylor, Mark Arnott, Brent Barrett, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, William Wood and Kaydee Zabelin.

Non Members:

Councillors Debi Marshall-Lobb and Billy Meehan.

Apologies:

The Mayor (Grant Smith) (late arrival, on Council business) and Councillor Lorna Johnson.

The Mayor (Grant Smith) entered the meeting at 9.36am during consideration of clause 54. He was not present for clauses 48 to 53 inclusive.

Councillor Rachel Bowen entered the meeting at 10.19am during consideration of clause 56. She was not present for clauses 48 to 55 inclusive.

Councillor William Wood left the meeting at 11.16am during consideration of clause 59. He was not present for clauses 59 to 63 inclusive.

	Karakia Timatanga
	Councillor Debi Marshall-Lobb opened the meeting with karakia.

48-23

Apologies

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 48-23 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Vaughan Dennison, Karen Naylor, Mark Arnott, Brent Barrett, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, William Wood, Kaydee Zabelin, Debi Marshall-Lobb and Billy Meehan.

Declarations of Interest

Councillor Debi Marshall-Lobb declared an interest in item 6 (clause 49): Hearing of Submissions – Panako Park Reclassification Proposal, but stated she would consider the matter with an open mind.

Councillor Debi Marshall-Lobb declared a conflict of interest in item 19 (clause 62): 119 Highbury Avenue (part of Tui Park) - Proposal to continue supporting Te Whatu Raranga o Highbury Weavers by notifying the intention to grant community occupancy via a lease of Council land and building, and took no part in the discussion or debate.

49-23	Hearing of Submissions: Panako Park Reclassification Proposal
	Moved Vaughan Dennison, seconded Karen Naylor. The COMMITTEE RESOLVED 1. That the Strategy & Finance Committee hear submissions from presenters who indicated their wish to be heard in support of their submission. 2. That the Committee note the Procedure for Hearing of Submissions, as described in the procedure sheet.
	Clause 49-23 above was carried 12 votes to 0, the voting being as follows: For: Councillors Vaughan Dennison, Karen Naylor, Mark Arnott, Brent Barrett, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, William Wood, Kaydee Zabelin, Debi Marshall-Lobb and Billy Meehan. Note: Councillor Debi Marshall-Lobb declared an interest but stated she would consider the matter with an open mind, and participated in the vote.
	The Committee considered submissions on the Panako Park Reclassification Proposal with a supporting oral statement. The following person appeared before the Committee and made oral statements in support of their submission. River Stop Awapuni (Annette Nixon) (17) Annette Nixon spoke to their submission and made the following additional comments: • River Stop continues to operate on a very informal basis, with other people involved on occasion; for example one project under development is a story boardwalk at Ahimate Park, which involves a local author and illustrator as well as Council Officers. • River Stop is planning for a Local History event early next year and a Boho Café birthday event (seven years) in November. • This weekend St Matthews plant fair will be held, which has been held in the area since 1968. • Awesome Awapuni, Presbyterian Church and River Stop have made repeated submissions to draft annual plans about having a community garden and orchard in the Panako Park area, as it offers great possibilities. • Around 2010, Annette met with some community members and the Guides about people using the hall also using the St Mark’s car park, and suggested the Guides might like to put in a path between the car park and their driveway. The church was happy for this to happen but no action was taken by the Guides to make that possible. There are opportunities like this that still exist. • One of the considerations of the incoming committee who will meet for the first time in October is whether or not the management committee of the Awapuni Community Centre would also be able to manage the use of Panako Place hall. It is likely the new committee (with no Chair at present) will not be inclined to agree to this, so how the management of Panako Place hall is carried out is something Council will have to think about. • Robert Cleaver, who in 1973 became the organist at St David’s Presbyterian Church in Main Street on the corner of Rainforth Street, recalls attending Bible class with his sister for a visiting event in 1966, and the hall was located on the lawn area in Rainforth Street at the back of the church. It was used as a gym facility and storage area. Between 1966 and 1973 it was moved to Panako Place, so we now have a Presbyterian resource next door to a Presbyterian resource in Awapuni. • River Stop Awapuni would like to see the Paper walkway between Panako Place and Awapuni Community opened up and turned into a community facilities hub and for both areas to have that immediate connection.

50-23

Summary of Submissions - Panako Park Reclassification Proposal

Memorandum, presented by Aaron Phillips, Activity Manager - Parks.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Committee receive the memorandum titled ‘Summary of Submissions – Panako Park Reclassification Proposal’ presented to the Strategy & Finance Committee on 20 September 2023.

Clause 50-23 above was carried 12 votes to 0, the voting being as follows:

For:

51-23

Confirmation of Minutes

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the minutes of the Strategy & Finance Committee meeting of 10 May 2023 Part I Public be confirmed as a true and correct record.

Clause 51-23 above was carried 10 votes to 0, with 2 abstentions, the voting being as follows:

For:

Councillors Vaughan Dennison, Karen Naylor, Mark Arnott, Brent Barrett, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, Debi Marshall-Lobb and Billy Meehan.

Abstained:

Councillors William Wood and Kaydee Zabelin.

52-23

Confirmation of Minutes

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the minutes of the extraordinary Strategy & Finance Committee meeting of 7 June 2023 Part I Public be confirmed as a true and correct record.

Clause 52-23 above was carried 12 votes to 0, the voting being as follows:

For:

53-23

Confirmation of Minutes

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the minutes of the extraordinary Strategy & Finance Committee meeting of 1 August 2023 Part I Public be confirmed as a true and correct record.

Clause 53-23 above was carried 10 votes to 0, with 2 abstentions, the voting being as follows:

For:

Councillors Vaughan Dennison, Karen Naylor, Mark Arnott, Brent Barrett, Patrick Handcock, Orphée Mickalad, William Wood, Kaydee Zabelin, Debi Marshall-Lobb and Billy Meehan.

Abstained:

Councillors Lew Findlay and Leonie Hapeta.

54-23

Drinking Water Compliance

Memorandum, presented by Mike Monaghan, Group Manager - Three Waters.

The Mayor (Grant Smith) entered the meeting at 9.36am.

The Officer highlighted a change to the detail in section 3.5. Since the paper was submitted, Officers have met with officials from Taumata Arowai to discuss the chlorine exemption application. The advice received is that, as Palmerston North City Council is already chlorinating all supplies, a chlorine exemption is not the appropriate vehicle. Instead Taumata Arowai recommend that Council apply for an Enforceable Undertaking under Part 3, Subpart 5, section 128 of the Water Services Bill. An enforceable undertaking is a written binding commitment to implement agreed actions to address the matters contravening the Act. In this case that would be committing to resolving the issue of contact time at the bore sites. Officers are currently working on the submission for the Enforceable Undertaking.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Committee receive the memorandum on the bacteriological compliance status of the city bore supplies to provide clarification on the issues and strategies to address, presented to the Strategy & Finance Committee on 20 September 2023.

Clause 54-23 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Vaughan Dennison, Karen Naylor, Mark Arnott, Brent Barrett, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, William Wood, Kaydee Zabelin, Debi Marshall-Lobb and Billy Meehan.

55-23

Draft Water Supply Bylaw - Deliberations on Submissions

Memorandum, presented by Peter Ridge, Senior Policy Analyst.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That Council adopt the Palmerston North Water Supply Bylaw 2024 and the Palmerston North Water Supply Bylaw Administration Manual 2024 (as shown in Attachments 2 and 3), which will come into effect on 1 February 2024.

Clause 55-23 above was carried 13 votes to 0, the voting being as follows:

For:

The meeting adjourned at 9.58am.

The meeting resumed at 10.14am.

56-23

Draft Speed Management Plan 2024-2027 - Approval for Consultation

Report, presented by Peter Ridge, Senior Policy Analyst, Charlotte French, Transport Engineer and Becky Young, Graduate Transport Engineer (Technical Advisors on contract from GHD).

Councillor Rachel Bowen entered the meeting at 10.19am.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the draft Speed Management Plan 2024 – 2027 (as shown in Attachment 1) be approved for public consultation.

Clause 56-23 above was carried 12 votes to 1, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Vaughan Dennison, Karen Naylor, Mark Arnott, Brent Barrett, Lew Findlay, Patrick Handcock, Orphée Mickalad, William Wood, Kaydee Zabelin, Debi Marshall-Lobb and Rachel Bowen.

Against:

Councillor Billy Meehan.

Abstained:

Councillor Leonie Hapeta.

57-23

Ashhurst and Te Apiti Campervan Dump Station Budget

Report, presented by Aaron Phillips, Activity Manager – Parks.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That Council approve an increase to the budget for Programme 1535 – City-wide: Campervan Dump Stations from $113,595 to $213,595.

2. That Council note that revenue will be increased by $100,000 of secured external funding, subject to consultation on the proposed dump station, for Programme 1535 – City-wide: Campervan Dump Stations, which means there will be no rates impact from increasing the budget.

3. That Council note that, as per the condition of the Ministry of Business, Innovation and Employment funding, consultation on the proposed new campervan dump station will be carried out. The consultation results and any subsequent recommendations will be reported back to Council.

Clause 57-23 above was carried 14 votes to 0, the voting being as follows:

For:

58-23

Ashhurst Te Apiti Three Bridges Loop Track Investigations Budget & Waka Kotahi Fund Update

Report, presented by Aaron Phillips, Activity Manager – Parks.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That Council adds a new operating programme titled ‘Ashhurst Te Apiti Three Bridges Loop Track Investigations’.

2. That Council approves an increase in operating revenue and expenditure budget of $156,875 for the investigations and design phase of the Te Apiti Three Bridges Loop Track programme, this budget to be 100% funded by Waka Kotahi subsidies.

3. That Council instruct the Chief Executive to report back at the conclusion of the Te Apiti Three Bridges Loop Track investigations and design work with a view to applying to Te Ahu a Turanga Recreation Fund for implementation works.

Clause 58-23 above was carried 14 votes to 0, the voting being as follows:

For:

59-23

Aokautere Urban Growth Area - Information relating to the description, timing and quantum of the development of infrastructure work programmes to enable growth in Aokautere

Memorandum, presented by Sam Dowse, Senior Planner and David Murphy, Chief Planning Officer.

Councillor William Wood left the meeting at 11.16am.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Committee note the infrastructure programmes identified in Attachment 1 of the Aokautere Urban Growth Area memorandum to support Proposed District Plan Change G, for prioritisation as part of the 2024 Long Term Plan process.

Clause 59-23 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Vaughan Dennison, Karen Naylor, Mark Arnott, Brent Barrett, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, Kaydee Zabelin, Debi Marshall-Lobb, Rachel Bowen and Billy Meehan.

60-23

Pioneer Reserve - Proposal to Grant an Easement on Reserve Land to Powerco

Report, presented by Bryce Hosking, Group Manager – Property and Resource Recovery.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Strategy & Finance Committee approve notifying the public of the proposal to grant an easement at Pioneer Reserve, Palmerston North to convey electricity to Powerco, in accordance with Section 48 of the Reserves Act 1977.

2. That the Committee note that the land area affected by the easement for Powerco is described as Lot 2 DP 88159.

Clause 60-23 above was carried 13 votes to 0, the voting being as follows:

For:

61-23	279 Albert Street (part of Hokowhitu Domain) - Proposal to continue supporting Hokowhitu Bowling Club Incorporated by notifying the public of the intention to grant community occupancy via a lease of Council land Report, presented by Bryce Hosking, Group Manager – Property and Resource Recovery. Elected Members approved an additional resolution with a lease term of no less than five years, due to uncertainty of the sport in the region and the possibility of a combined bowling facility in the future.
	Moved Grant Smith, seconded Lew Findlay. The COMMITTEE RESOLVED 1. That Council continues to support Hokowhitu Bowling Club Incorporated by notifying the public of its intention to grant community occupancy of Council land at 279 Albert Street (part of Hokowhitu Domain), 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 Hokowhitu Bowling Club Incorporated is described as Lot 18 DP 32630 and part of Lot 214, 215, 216 and 217 DP 791.
	Clauses 61.1-23 and 61.2-23 above were carried 12 votes to 1, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Vaughan Dennison, Karen Naylor, Brent Barrett, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, Kaydee Zabelin, Debi Marshall-Lobb, Rachel Bowen and Billy Meehan. Against: Councillor Mark Arnott.
	Moved Grant Smith, seconded Lew Findlay. 3. That the Committee note, if the lease is entered, that the lease term with Hokowhitu Bowling Club will be no less than five (5) years.
	Clause 61.3-23 above was carried 10 votes to 3, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Vaughan Dennison, Mark Arnott, Lew Findlay, Patrick Handcock, Leonie Hapeta, Orphée Mickalad, Kaydee Zabelin, Debi Marshall-Lobb and Billy Meehan. Against: Councillors Karen Naylor, Brent Barrett and Rachel Bowen.

62-23

119 Highbury Avenue (part of Tui Park) - Proposal to continue supporting Te Whatu Raranga o Highbury Weavers by notifying the intention to grant community occupancy via a lease of Council land and building

Report, presented by Bryce Hosking, Group Manager – Property and Resource Recovery.

The Officer highlighted a clarification: The report notes Highbury Weavers have occupied the site under formal lease since 2013. It should also have been noted that there was a month-by-month lease relationship prior to that time.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That Council continue to support Te Whatu Raranga o Highbury Weavers by notifying the public of its intention to grant community occupancy of Council land and building, via a lease at 119 Highbury Avenue (part of Tui Park), Palmerston North, in accordance with the Support and Funding Policy 2022 and Section 54 of the Reserves Act 1977.

2. That the Committee note the land affected by the community occupancy lease to Te Whatu Raranga o Highbury Weavers is described as part of Section 1 Survey Office Plan 452061.

Clause 62-23 above was carried 12 votes to 0, the voting being as follows:

For:

Note:
Councillor Debi Marshall-Lobb declared a conflict of interest, withdrew from the discussion and left the room.

63-23

Committee Work Schedule

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

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

Clause 63-23 above was carried 13 votes to 0, the voting being as follows:

For:

	Karakia Whakamutunga
	Councillor Debi Marshall-Lobb closed the meeting with karakia.

The meeting finished at 11.57am.

Confirmed 15 November 2023

Chair

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: Treasury Report - quarter ending 30 September 2023

Presented By: Steve Paterson, Strategy Manager - Finance

APPROVED BY: Cameron McKay, Chief Financial Officer

RECOMMENDATION TO Strategy & Finance Committee

1. That the Committee note the performance of Council’s treasury activity for the quarter ending 30 September 2023.

1. ISSUE

To provide an update on the Council’s treasury activity for the quarter ending 30 September 2023.

2. BACKGROUND

The Council’s Annual Budget 2023/24 forecast additional debt requirements of $36.2m would need to be raised during the year to fund the $65.4m of new capital expenditure programmes (including assumed carry forwards from 2022/23). In June 2023 the Council resolved to specifically authorise the raising of up to $37m of additional debt.

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 4 May 2023 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 2023. 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 (2023/24)

$000

Actual – 3 months (2023/24)

$000

Debt Balance at 1 July 2023

Plus New Debt #

Less Debt repayments #

220,000

36,193

220,228

29,877

Closing Gross Debt Balance

Comprising:

Bank advance (on call)

LGFA stock

256,193

250,105

4,900

245,205

Less:

Deposits held for debt repayment

Sum advanced to PN Airport Ltd

(5,000)

(19,500)

(8,000)

Net Council related term debt

$251,193

$222,605

# 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 30 September 2023 was $250.1m compared with $220.2m at 1 July 2023. Additional debt of $29.9m was raised during the quarter – $3.1m of this on behalf of PNAL.

A 10-year history of the gross & net debt is shown in the following graph:

Actual finance costs incurred by the Council depend on the actual debt levels and the interest rate. During the quarter finance costs (including interest, line fees and the effects of payments relating to swaps) amounted to $2.56m compared with the budget for the year of $9.9m.

$161k of this expense relates to $20m raised on 14 August 2023 to prefund debt maturing on 17 April 2024. This was partially offset by unbudgeted interest income of $167k received from short term investment of $19.5m. A further $75k of this expense relates to the $8m of loans raised on behalf of Palmerston North Airport Limited (PNAL) and this was offset by $80k received from PNAL for the advance.

The effective weighted average interest rate for the year to date was 4.36% compared with the budgetary assumption of 4.2%.

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 30 September 2023. The latest valuation is an asset of $15.6m compared with an asset of $11.7m as at 30 June 2023.

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 2023 $30m of term debt has been raised and $3.2m of bank debt has been repaid. In addition, $3.1m was raised on behalf of PNAL and $3m 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. This means it has been prudent to consider various debt scenarios (including one that excludes waters related debt) when assessing interest rate risk exposure.

· Because the future debt levels are so uncertain our risk management strategy has been to use the forecast debt figures from 2021-31 Long Term Plan, as updated through the 2022/23 & 2023/24 Annual Budgets but reduce them by 30%. This reduction is a mechanism to ensure the Council’s portfolio does not become over-hedged.

· Because of the upward movement in swap interest rates over recent months it has not been possible to purchase new swaps at interest rates that we believe are appropriate to lock in for long terms. Based on the current forecast debt levels the actual portion that is fixed was very marginally outside of the policy in the 48-60 month period (19% compared with a policy minimum of 20%). If opportunities arise to extend the swap cover at acceptable interest rates these will be considered in order to keep within the policy limits.

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 30 September 2023 is shown in Schedule 4 attached.

The schedule shows that the short term BNZ investment of $19.5m (in place to fund maturing debt in April 2024) exceeds the policy sub-limit of $15m. The investment was entered because of the favourable interest rate obtained. As the Council has only a small BNZ exposure for derivatives the total exposure to the bank does not exceed the total limit. It is proposed to remove the sub-limits when the policy is next reviewed as they are, on reflection, of no particular value.

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 2026).

4. CONCLUSION AND NEXT STEPS

Gross finance costs for the quarter (including interest, line fees and the effect of swaps) was $2.56m compared with budget for the year of $9.9m. The net finance cost (after considering the interest income from term investments and the advance to Palmerston North Airport Ltd) is $2.31m.

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 December 2023 quarter.

5. Compliance and administration

Does the Council have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
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 to 4 ⇩

REPORT

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: Waterloo Park - Land Exchange Proposal Decision

PRESENTED BY: Aaron Phillips, Activity Manager - Parks

APPROVED BY: Chris Dyhrberg, Chief Infrastructure Officer

David Murphy, Chief Planning Officer

RECOMMENDATION(S) TO Council

1. That Council note, but sets aside, the objections to the exchange of part of Waterloo Park for the following reasons:

a. The matters of privacy, traffic, flooding and contamination will be dealt with through the plan change process.

b. The green space provision in the area is significant.

c. There is an alternative space for the establishment of a community orchard in Waterloo Park.

d. There is no loss of green space as the area of reserve received in the exchange will be equal in size to the existing reserve and carparking will not be established on the land received in the exchange.

e. The land received in the exchange would have a wider community benefit than retaining the existing strip of Waterloo Park.

2. That Council approve an application to the Minister of Conservation 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.

3. That Council note that the exchange would only be given effect if the Minister’s approval is received and the rezoning of the Roxburgh Crescent area is approved.

4. That Council note that regardless of the decision on the exchange, a budget for additional car parking and a path connecting the new river entrance to the existing Manawatū River Shared Path has been forwarded to the draft 2024/34 Ten Year Plan.

Summary of options analysis for

Problem or Opportunity	Council proposed a reserve exchange under the Reserves Act 1977, exchanging a strip of Waterloo Park for new reserve land in a proposed new residential area. Council has publicly advertised the proposed exchange, received and heard submissions and objections. Council now needs to consider the submissions and decide whether it sets aside or accepts the points raised, and whether it will proceed or decline the exchange.
OPTION 1:	Proceed with the proposed land exchange
Community Views	Community views are covered in the previous submissions and hearings reports. Of the 39 submissions received 8 supported the exchange proposal and 1 was neutral. 30 submitters were opposed to the land exchange.
Benefits	Provides a wider community benefit through enhanced river access than retaining the existing strip as is.
Risks	The exchange was opposed by most submitters.
Financial	Will add between $25,000 and $82,000 to the Council capital new programme. A small increase in maintenance costs to maintain the new reserve area.
OPTION 2:	Decline the proposed land exchange – holding the strip of reserve land in its current form
Community Views	Community views are covered in the previous submissions and hearings reports. Of the 39 submissions, 30 opposed the proposal and 1 was neutral. This report considers the points raised in opposition. The most frequent reasons for opposition were wanting a community orchard or similar, retention of green space, concerns about the loss of privacy for existing homes and the effect of carparking in the new area on green space.
Benefits	Meets most points raised by submitters.
Risks	Low community use/value from the strip which is an unconnected dead end between houses.
Financial	Cost to remove existing trees that overhang the boundary or would become a risk/unstable if residential development occurs next door. This cost is assumed to be modest if the trees can be clear felled by a firewood contractor into the vacant yard space prior to development.
OPTION 3:	Decline the land exchange and develop the existing reserve as an accessway/community orchard
Community Views	Addresses most points raised by submitters.
Benefits	Community orchard established, additional path connection.
Risks	The path will have poor sight lines. It will add only a small amount of value for walking distances, for a limited set of properties.
Financial	$161,000 if an accessible concrete path and associated 5m wide access entrance were purchased.
OPTION 4:	Do both - Decline the land exchange, develop the Waterloo Park strip connection, and purchase the minimum area of new reserve land needed for the river entrance within the plan change area
Community Views	Meets most of the submitters’ points.
Benefits	Community orchard could be established. River entrance enhanced.
Risks	May be perceived by the wider community as lower value for money than other options.
Financial	Purchase of and development of new reserve land and the Waterloo strip - $770,000. Small increase in maintenance costs on the additional 700m² of park space and associated assets.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 Council is in the process of proposing to rezone industrial land in the Roxburgh Crescent area to residential use. The proposed plan change will provide further opportunity for public engagement late 2023 and early 2024.

1.2 Part of Waterloo Park includes a strip of land 11m wide and 120m long that is situated between the existing industrial activities in Roxburgh Crescent and five residential properties in Tilbury Avenue.

1.3 Council proposed that this strip could be exchanged for an area of new reserve in the Roxburgh Plan change area to enhance a new river access.

1.4 Council has publicly advertised the proposed exchange, received and heard submissions and objections, and now needs to decide whether it supports the proposal to exchange the strip of Waterloo Park for land in the Roxburgh Plan change area or not.

1.5 Under the Reserves Act, Council is required to determine whether objections to the proposed reserve exchange of 1,300m² of Waterloo Park, will be accepted or not accepted, in whole or part, and the reasons for Council’s decision.

2. Background and previous council decisions

2.1 Elected Members received a report on a proposal to exchange the reserve strip for land within the Roxburgh Crescent rezoning area at the Strategy & Finance Committee meeting of 22 March 2023.

2.2 Council resolution 19-23 was:

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.

2.3 The Committee heard submissions and received a Summary of Submissions report on 1 August 2023.

Relationship between this process and Proposed District Plan Change E: Roxburgh Crescent Residential Area

2.4 The Waterloo Park Land Exchange Proposal has been prepared in advance of notifying District Plan Change E to inform the design of the Roxburgh Crescent Structure Plan (Figure 1 below).

2.5 Community views on the draft structure plan and plan change proposal were sought in November 2022. This feedback has informed some broader considerations before another round of engagement scheduled for November 2023, before formal consultation in early 2024.

2.6 In November 2022 information on the plan change, a feedback form and the drop-in session was shared on our Facebook page and website. Letters were also sent to over 2,000 residents and landowners in the Hokowhitu area. During this feedback period there was a logistical error in the mail-out, with the letter containing information on the plan change and date for the drop-in arriving late for some residents. However, some received the letter on time, and there was a turnout of 50 people to the November 2022 drop-in session.

2.7 Subject to approval by the Strategy & Finance Committee, Proposed District Plan Change E will be publicly notified for submissions and hearings managed through the Resource Management Act Process for reviewing District Plans. The resulting decision on Plan Change E will be made by a panel of commissioners. This means that Officer responses to submissions in section 5 below cannot bind the future decision of Plan Change E. However, Council will have to be satisfied with Proposed Plan Change E to approve it for consultation and submitters to this process will be encouraged to submit on the plan change when proposed.

A diagram of a building

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Figure 1: Draft Roxburgh Crescent Structure Plan

3. option consulted on with community

3.1 Exchange of a portion of Waterloo Park for land in the Roxburgh Plan Change area.

3.1.1 The area is approximately 1,300m² as shown in Figures 2 and 3.

Figure 2: Strip of reserve proposed for exchange

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Figure 3: Proposed exchange area - view from eastern/stopbank end

3.2 The land that would be received in the exchange would be 1,300m² positioned adjacent to a new road reserve and over the stopbank as shown as ‘C’ open space.

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Figure 4: Proposed reserve received in exchange

4. Responses to submissions

4.1 Responses to matters raised in opposition:

Matters raised in opposition	# times	Officer response
a. Want community garden/park in the proposed exchange area	18	A potential community orchard/garden could be established of around 670m².If it were an orchard, for example, it would have capacity for in the order of 30 fejioa sized trees interspersed with smaller or bush species while leaving a 4.8m width clear for a path and visibility (Area A in Figure 5). A similar sized area could be provided around the corner next to the stopbank (Area B in Figure 5), leaving the same space for path/access and the required 8m set back from the toe of the stopbank. There are several large trees along the length of Area B that might restrict some garden/orchard productivity if they were not removed. Council has already planted some fruit trees in Area B as part of its edibles planting programme, with the Scouts undertaking to do some basic tree care. Figure 5: Community orchard capacity
b. Privacy/3-storey buildings next to existing houses/housing buffer	11	Options for height and density provisions will be considered for Draft Plan Change E and consulted on through a separate process. Under the National Policy Statement for Urban Development 2020, Council cannot consider reduced amenity values from proposed housing as an adverse effect. The non-amenity related effects of higher density next to existing residents will have to be assessed.
c. Loss of reserve/green space	9	The net green space provided through the proposed exchange would be neutral overall. Green space provision in this neighbourhood is very high. There is over 17 ha of Manawatū River Park and Waterloo Park^{^[1]} within a 500m walking distance of the River access beside the Scout Hall.
d. Exchange area will be for car parking^{^[2]}	7	This opposition has been noted. Detailed layouts would be completed at the time of subdivision; a layout can be achieved that would not require any carparking to be on the exchange land. This principle is being pursued through the structure plan work and the developer has indicated support for it. Council would need to pay for any carpark construction it wanted that was over and above what would ordinarily be required on street in the subdivision, i.e. 90 degrees over parallel parking.
e. Climate change mitigation	5	The net climate change contribution would be the same for the exchanged land as they are the same area with the same capacity for trees.
f. Create new path connection through^{^[3]}	5	A 280m long path would cost between $37,000 and $91,000 to construct depending on whether it was a crushed gravel surface or concrete^{^[4]}. The land purchase for an accessway connection would be in the order of $70,000 to $140,000 depending on the final width and length. Based on the above, the total cost would be in the order of $107,000 to $231,000. The path would have poor sight lines. It makes only a minor improvement in connectivity for a limited catchment of people, compared to the footpath network or through the Manawatū River Park. For example, it is 100m longer to walk via the proposed path through the strip to Roxburgh Crescent inside the proposed residential area from the corner of Ayr Place and Tilbury Ave than it would be to walk via a link between Waterloo Crescent and Manawatu Street.
g. Loss of birdlife in existing trees	4	As per response to tree loss in h. below.
h. Loss of trees	4	Most of the existing trees will have to be removed, whether the exchange takes place or not. Significant portions of the canopy already overhang the property boundary as per Figure 6. While the overhang has not affected the industrial uses it is likely new adjoining residential owners would have the trees trimmed to the boundary. For several trees this would mean their removal as they would become unbalanced and at risk of falling in high winds. Figure 6: Tree canopy over boundary Any new fence on the new residential boundary would likely have footings that would damage the tree root structures increasing the risk of the trees falling.
i. Retain as stormwater soak protection for Tilbury Avenue areas	4	The existing industrial area is currently impervious surfacing, being made up of concrete paving and buildings with no berms or street trees. Plan Change E proposes more permeable surfaces. Draft stormwater advice for Plan Change E indicates stormwater can be managed on site and in the road corridor. This assessment will become publicly available once the plan change is open for consultation. The Stormwater Team advises that Tilbury Avenue is not currently recorded as having any stormwater issues.
j. Supports developer/new area	4	The proposed land exchange was initiated by Council Officers. Officers have proposed that green space associated with the new river entrance is of more overall value to the wider community. The developer has agreed to land exchange of equal area with no valuation or compensation.
k. Green space for small sections in new housing area	3	No new neighbourhood reserve is required in the Roxburgh Plan Change area as it is close to the facilities on Waterloo Park as well as the Manawatū River Park. The new residential area would benefit from this green space but it was not the driver for the exchange proposal – it was to support an overall better reserve outcome, particularly for the Manawatū River Park entrance, being better value than retaining the reserve strip where it is.
l. Flooding effects of more housing	1	Draft stormwater advice recommends onsite permeability standards in the proposed Roxburgh Residential Area to ensure stormwater effects on properties in the wider catchment are not affected. See i. for stormwater comment. This assessment will become publicly available once the plan change is open for consultation.
m. Housing traffic effects	1	A matter for the Plan change, not reserve exchange, however draft transport advice for Plan Change E suggests that residential use would have less traffic generated than as industrial use. This assessment will become publicly available once the plan change is open for consultation. Conversion of historical industrial enclaves such as these is consistent with the Palmerston North Integrated Transport Initiative as it seeks to shift heavy vehicle movements away from residential neighbourhoods.
n. Potential contamination	1	A contaminated land assessment has been completed for Draft Plan Change E. This assessment will become publicly available once the Plan Change is open for consultation and remediation will be required in line with the relevant standards and National Policy Statements. The opportunity was taken to also test the portion of Waterloo Park proposed to be exchanged. The findings were: ‘Additional soil sampling completed on the buffer strip within Waterloo Park, extending to the Hokowhitu Scout Hall, shows the presence of low-level heavy metals and OCPs are below human health guidelines… based on the sample results, the Waterloo Park buffer is suitable for use as residential development or as a community garden.’ There was a surface sample around the corner from the strip, immediately adjacent to the Scout sheds, where demolished buildings formerly stood, which returned an elevated arsenic level. For community gardens in this area raised beds with imported clean soil or soil removal and replacement would be required.
o. Upgrade Ruahine entrance instead	1	The Ruahine Street Bend entrance is of modest quality compared to recent upgrades completed as part of the development of the Manawatū River Park. Upgrades are planned at Ashhurst and Raukawa Road in future years. Nothing is planned for Ruahine Street. A small improvement in accessibility was made in 2023, following a community suggestion, at the same time as carparking resurfacing was completed.

4.2 Questions raised relating to the proposed new reserve area within the rezoning

4.2.1 Will it be covered by the Reserves Act?

Yes – the new reserve area would be vested with reserve status and a purpose of ‘Recreation’, the same as the current area.

4.2.2 Would the new reserve area be used for parking?

No. The existing Council owned access strip and structure planning would allow the road corridor width to accommodate 90 degree parking, in a similar layout to the Albert Street River Entrance. The 1,300m² received in the proposed exchange would have no parking on it.

Refer Submission response Section 4.1 (d)

4.2.3 Will the river access carparking become a residents’ carpark area if no carparks provided on residential sites?

The proposed road widths in the residential area are consistent with the current road widths in the industrial area, at 12.8m. A traditional road corridor is 20m wide. The 12.8m width allows for two-way traffic, footpaths and parallel on street parking on one side of the road, and no parking on the other side.

Alongside the smaller section sizes and medium density housing may create a risk the river access parking is used by residents and their visitors. It may be less of an issue during the working week but could be an issue in weekends and in the evenings.

If it became an issue then parking management could be trialled, e.g. 2 hours limits, but they are unlikely to make a significant difference in resolving the issue and may be difficult to regulate and monitor.

4.2.4 What would it cost to develop the reserve received in the exchange?

The cost to link a path access across to the existing Manawatū River Shared Path will be incurred regardless of whether the exchange proceeds or not and is estimated at $50,000.

A cost of $50,000 is estimated to provide an additional 5 carparks for Manawatū River Park users over and above the on-street parking provision that will be required to be provided by the developer on the street.

The cost to develop the exchanged reserve is estimated at $25,000 for a basic development and up to $82,000 if bollards are required to prevent car parking on it.

4.2.5 Would the developer pay for decontamination?

Council would receive the exchanged land in a state the same as a residential section ready for sale to the public including any decontamination, top soiling and grassing.

4.2.6 What would access to river be like with or without the exchange?

a. Without an exchange there would be a road berm and carparking area 19m wide^{^[5]} and the access across the stopbank will be along the 6m wide area already owned by Council, as shown as C in Figure 7.

Figure 7: Structure plan with no reserve exchange

b. By way of comparison the carparking area at the bottom of Albert Street is 20m wide (Figure 8), widening to 30m wide where it crosses the stop bank. The Ruamahanga Wilderness Reserve entrance is 10m wide (Figure 9).

Figure 8: Albert Street river entrance width

Figure 9: Ruamahanga Wilderness Area entrance width

c. With an exchange: Figure 10 shows the approximate dimensions if the exchange is approved. The width of the road berm/carparking/reserve area will be approximately 40m wide with 21m of that in reserve. The entrance across the stopbank would be in the order of 30m wide, similar to Albert Street, as shown in Figure 10.

Figure 10: Layout if reserve exchanged

d. For context, Figure 11 shows the reserve area proposed, overlaid on an aerial photograph of the existing Albert Street entrance.

Figure 11: 40m width equivalent at the Albert Street river entrance

4.3 Questions relating to the existing reserve area

4.3.1 Is it contaminated?

Testing was completed in the strip proposed to be exchanged and it was determined it was safe for residential or community orchard/garden use.

4.4 Other matters

4.4.1 How would the proposed exchange affect stormwater discharge for existing Tilbury Avenue properties?

Properties are required to discharge stormwater to approved location – should not be discharging any stormwater to the reserve strip other than natural overlaid flow from lawn areas.

4.4.2 Reserve purpose - local reserve vs. citywide and ability to exchange, as per submission 30?

The Reserves Act exchanges do not distinguish between citywide and neighbourhood use. The Reserves Act requires an exchange of equal value and allows^{^[6]} for payments to make up any difference to achieve that value and consideration of objections.

4.4.3 Why is no reserve required to be provided by developer?

Council’s Engineering Standards for Land Development set out the criteria under which a new neighbourhood reserve would be required in new greenfield residential areas. A key criterion for purchasing and developing new reserves is the 400 and 500m walking distances to a reserve, depending on the density of the development.

There are 17 ha of open space within a 500m walking distance of proposed new residential area including a neighbourhood reserve with a playground at Waterloo Park 450-800m away and a Suburb Reserve at 1.5km away which is a standard catchment for that reserve type.

There is an existing river access point 6m wide at that location so no new river access is required; rather making the existing one publicly accessible is required. Council has no standard for these access points.

4.5 Where are community gardens currently located?

- Awapuni Park

- Moheke Avenue (road berm)

- Roslyn Commons (Hulme Reserve)

- Norton Park

- Ashhurst Branch Library (Recap)

- McCraes Bush Community Orchard (Recap)

- Te Patikitiki Library

- Te Aroha Noa (private land)

- Te Whare Koha (private land)

Officers are also aware there have been gardens at churches and other institutions.

Council has progressively established numerous small-scale edible plantings in various parks and reserves. These are typically not advertised at present as many are young and are still maturing. Ahimate Reserve is an example of where the local community can currently harvest fruit in season.

4.6 Could the strip have a smaller width?

While it would be possible to reduce the width, Officer advice is that either the full width of 11m should be retained or the land exchanged.

This provides a certain degree of visibility and space.

4.7 How about we retain the Waterloo strip and purchase a reserve in the new residential area?

The costs associated with purchasing, rather than exchanging, a 1,300m² reserve in the new residential subdivision, and developing a path along the Waterloo Park strip to link it to the new subdivision are summarised below.

Land purchase (if full areas)^{^[7]} $1,160,000

Development^{^[8]} of the new reserve $ 82,000^{^[9]}

Provision of additional car parks $ 50,000

Current strip (concrete path) $ 91,000

$1,332,000

A variation on this option could be to reduce the area of land purchased to the minimum area needed to enhance the river entrance. Officers consider that the minimum area would be approximately 700m², including the accessway connection to the existing strip of land in Waterloo Park. Under that scenario the total cost could be in the order of $770,000.

4.8 What will be spent regardless?

If the land exchange does not proceed Council will have some costs regardless.

These are estimated at $50,000 to connect the existing river entrance to the existing Manawatū River shared path.

4.9 Which properties are directly affected?

As shown in Figure 12 the properties at 17, 19, 21 and 21A (held in one title), 23, 25 and 27 have boundaries with the proposed land exchange strip.

Figure 12: Residential property boundaries

5. AnalYsis OF options

Option One: Proceed with the proposed land exchange

5.1 An exchange would provide a better located greenspace that would enhance a river connection.

5.2 Being wider and adjacent to a road reserve there would be options for larger tree species to be planted, if the strip of reserve were retained.

5.3 Adds costs of between $25,000 for a basic development through to $132,000 if additional river access carparking and post and rail fences.

Option Two: Decline the proposal for the land exchange – hold the existing land with no development

5.3.1 Retaining the land benefits the immediate neighbours by providing a buffer to the new residential development, but little wider community benefit.

Option Three: Decline the land exchange and develop the existing reserve as an accessway/community orchard

5.4 Retaining the reserve and developing it would cost up to $150,000.

5.5 The access would be of poor quality being long and narrow and make only a minor difference to the walking distance to a limited number of destinations for a limited number of people.

5.6 While the aspirations of community orchards are admirable there is plenty of alternative space around the corner towards the Scout hall.

Option Four: Do both - Decline the land exchange, develop the Waterloo Park strip connection, and purchase new land for the river entrance within the plan change area

5.7 Council could decline exchange but seek to provide an enhanced river entrance by purchasing a smaller additional reserve area in the proposed plan change area.

5.8 The minimum amount of land needed to create a wider river entrance, like Albert Street and the Ruahine Street bend river entrance, is approximately 700m². If Council were to purchase this land area, rather than the 1,300m² proposed in the exchange, the cost of this option is estimated to be $770,000 - land purchase and development.

5.9 This option meets most of the views of objectors. It does not deliver the same level of reserve amenity for the river entrance as an exchange of 1,300m² of land at Waterloo Park, and is the most expensive option.

6. Conclusion

6.1 Options to retain and develop the existing reserve strip, rather than exchanging it, deliver limited benefits for similar or higher costs than land exchange proposal.

6.2 Retaining the reserve strip and leaving it ‘as is’ will still require tree removals and clean-up costs and deliver very little benefit to anyone other than the 5 immediate neighbours.

6.3 Options to retain the reserve strip and develop an enhanced river entrance deliver a wider range of benefits to more people, but at a much higher cost.

6.4 The best outcome for overall reserve values and cost is to progress with the option consulted upon – Option 1: Exchange the land, and allow basic level budgets for its development and a small increase in river access carparking provision.

7. Next actions

7.1 If the Committee agrees the recommendations and these are confirmed by Council, then Officers will apply to the Department of Conservation to approve the reserve land exchange.

7.2 The exchange will be completed when appropriate in subdivision stages.

8. Outline of community engagement process

8.1 Consultation undertaken was described to the Committee in the Summary of Submissions report on 1 August 2023.

8.2 During the hearings some submitters commented that some residents they had spoken to did not receive the letter drop notifying them of the consultation and drop-in session.

8.3 Council’s Communications Team advise:

· Letters were printed and available for collection by our mail provider on 5 April 2023 – 6 days (4 working days) in advance of the consultation being open and 12 days in advance of the drop-in session on the Monday 17 April 2023. Our provider has advised the letters were delivered no later than Monday 10 April 2023.

· The properties the letters were addressed to are the residents and owners of the properties shown in Figure 13.

Figure 13: Extent of letter drop undertaken

8.4 As noted in Section 3.3 there was a related but separate drop-in session for the Plan Change proposal in November 2022 where a mail-out error did occur. At this time Council Officers followed up with an offer to meet individually with anyone who identified that they had missed out on the drop in session.

9. Compliance and administration

Does the Committee have delegated authority to decide?		No
Are the decisions significant?		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 2 A Creative and Exciting City and Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in Active Communities and City Growth The action is: · Administer the Reserves Act 1977 and; · Update the District Plan to rezone identified growth areas for housing and business needs.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The land exchange makes a greater contribution to access and utilisation of reserves than the existing Waterloo Park strip location. It improves the amenity of Manawatū River access.

Attachments

Nil

REPORT

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: Panako Park - Decision on Reserve Classification and Future of the Girl Guiding New Zealand Hall

PRESENTED BY: Aaron Phillips, Activity Manager - Parks

APPROVED BY: Chris Dyhrberg, Chief Infrastructure Officer

Kerry-Lee Probert, Acting Chief Customer Officer

RECOMMENDATION(S) TO Council

1. That Council note, but set aside, the objections to the classification of Panako Park for the following reasons:

a. The matters of noise, safety, parking and alcohol consumption can be managed through lease provisions or physical road treatments.

b. There are overall community benefits from making the land available to a broader range of community uses.

2. That Council approve the classification of Panako Park, being Lots 1 and 2 DP 29836 contained in Certificate of Title WN9B/622, as Local Purpose (Community) Reserve, under delegation from the Minster of Conservation under Section 16(1) of the Reserves Act 1977.

3. That Council adopt Option 1A - ‘Proceed with classifying Panako Park as Local Purpose (Community) Reserve and purchase the Girl Guiding hall’ and approve unbudgeted capital expenditure of $45,000 in 2023/24 to purchase the Panako Park hall from Girl Guiding New Zealand and undertake repairs and maintenance, including removal of the derelict shed.

4. That Council approve the lease of the hall and land to Girl Guiding New Zealand on a temporary, month to month basis until the Awapuni Library and Community Hub proposed developments are determined.

5. That Council note, if the proposed Awapuni Library and Community Hub development does not proceed and/or require use of Panako Park, the Chief Executive will pursue options to sell the Panako Park hall to a community group and report back to Council on the associated land lease under the provisions of the Reserves Act 1977.

Summary of options analysis for

Problem or Opportunity	Council to determine whether it will classify Panako Park as a Local Purpose Reserve (Community) or not.
OPTION 1A:	Proceed with classifying Panako Park as Local Purpose (Community) Reserve and purchase the Girl Guiding hall.
Community Views	Community views are considered in this report.
Benefits	Enables a broader community use of the park, including potential use as part of any possible future branch library/community hub development. Ensures council ownership of all assets on the land should the area be required for the Awapuni Library and Community Hub project currently being investigated.
Risks	If the hall space is not required for the Awapuni Library and Community Hub Project – additional Council Officer time in managing a sale.
Financial	Officer time and legal fees gazetting the classification and managing the purchase. $45,000 to purchase and undertake immediate maintenance on the building.
OPTION 1B:	Proceed with classifying Panako Park as Local Purpose (Community) Reserve but do not purchase the Girl Guiding hall.
Community Views	Community views are considered in this report.
Benefits	Enables a broader community use of the park, including potential use as part of any possible future branch library/community hub development. A community organisation would own the hall, reducing ratepayer costs.
Risks	If Council requires the space for the Awapuni Library and Community Hub project then Council would need to end the lease and purchase the hall. Girl Guiding New Zealand are unable to sell the hall for another 12 months.
Financial	Officer time and some small legal fees gazetting the classification.
OPTION 2A:	Decline classifying Panako Park as Local Purpose (Community) Reserve, retaining it as Recreation Reserve, and purchase the Girl Guiding hall.
Community Views	Community views are considered in this report.
Benefits	Meets the expectations of objectors.
Risks	If the hall space is not required for the Awapuni Library and Community Hub project – additional Council Officer time in managing a sale.
Financial	Officer time and some small legal fees gazetting the classification. $45,000 to purchase and undertake immediate maintenance on the building.
OPTION 2B:	Decline classifying Panako Park as Local Purpose (Community) Reserve, retaining it as Recreation Reserve, and do not purchase the Girl Guiding hall.
Community Views	Community views are considered in this report.
Benefits	Meets the expectations of objectors. No cost of hall acquisition and maintenance for Council.
Risks	If the hall space is required for the Awapuni Library and Community Hub project, then Council would need to end the lease and purchase the hall. Girl Guiding New Zealand are unable to sell the hall.
Financial	Officer time and some small legal fees gazetting the classification.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 The report titled Determining the Future of Panako Park Hall was presented to Council on 1 March 2023. Council resolved:

OPTION 1: Decide to retain Panako Park as a reserve for community use, and instruct the Chief Executive to consult the community on the proposal to classify Panako Park, contained in Lot 1 and Lot 2 DP 29836, as a Local Purpose (Community) Reserve, in accordance with Section 24 of the Reserves Act 1977.

1.2 Council received submissions and held hearings at the Strategy & Finance Committee meeting on 20 September 2023.

1.3 This report analyses these submissions and seeks a decision from Council as to whether to apply to the Minister of Conservation for approval to change the classification of the reserve to local purpose (community) to enable a broader range of community use or retain it as recreation only.

1.4 When considering reclassification of a reserve, the Council is required by law to determine whether objections to classification of a reserve will be accepted or not accepted, in whole or part, and the reasons for Council’s decision; thus Recommendation 1 sets out Officer reasoning for proceeding with the new classification and rejecting the objections received.

2. Background and RELATED council decisions

2.1 Girl Guiding New Zealand (Girl Guides) wish to exit their land lease at Panako Park (2 and 2a Panako Place) and on-sell their building to another community group.

2.2 In these situations, Council’s Support and Funding Policy provides a process to consider the land strategically, including its appropriate future use, before deciding on the request from Girl Guiding. This process was undertaken and presented to the Planning & Strategy Committee in August 2022 via the report titled Strategic Options Review where Council resolved to:

Investigate the level of community demand for recreation and community use with a view to retaining Panako Park and the Girl Guide hall for community use.

2.3 The investigation process was then undertaken through October and November 2022 to determine the demand for using the land. It found low levels of recreation demand, but some non-recreation community group demand.

2.4 Given the land is classified as a ‘Recreation Reserve’ under the Reserves Act 1977, only recreation uses are permitted on the land, and consequently within the building. The only way a non-recreational use could be undertaken on the reserve would be for the land to be reclassified to a ‘Local Purpose (Community)’ Reserve.

2.5 A report titled Determining the Future of Panako Park Hall was presented to Council on 1 March 2023, in which Council resolved to consult the community on the proposal to reclassify the reserve land, as set out in 1.1 above. Section 3 below sets out the details of submissions received.

2.6 Since the March 2023 report on Panako Park, Council has directed further work in the Awapuni area that may influence the decision on the reserve classification and any future steps. On 31 May 2023 Council resolved:

To include up to $150,000 (maximum) to fund a feasibility (only) study to review the needs/use of Awapuni Library, Te Pātikitiki Library, a Pasifika Hub and more Community Space/Hub in Highbury.

2.7 Investigation during the feasibility study has included options for an Awapuni Library and Community Hub using Panako Park and the adjoining St Marks Church as a potential site.

2.8 The final recommendations and feasibility study report are due to be presented to Council on 6 December 2023.

3. Consideration of submissions ON PROPOSAL TO CLASSIFY PANAKO PARK AS LOCAL PURPOSE (COMMUNITY) RESERVE

3.1 17 submissions were received with 15 (88%) in support of the change and 2 opposed (12%).

3.2 The matters raised in support were varied but themes centred around getting additional community uses from the hall and land. The September 2023 Summary of Submissions report covered the points raised and the frequency they were raised, in sections 3.4 and 3.5.

3.3 Officer responses to matters raised in opposition are detailed in Table 1, below.

Table 1

Matters raised in opposition	Number of submissions	Officer comment
Safety of children in cul-de-sac	2	Council can restrict the types of uses of Panako Park to those with lower volumes of participants and require management of any traffic effects through specific clauses in the lease. During the request for expression of interest in determining demand for the facility, Officers ruled out several proposals on the basis that they wished to use the hall for celebrations and events that would have attracted high volumes of cars and had potentially negative effects.
Do not want alcohol consumed on site	2	Council can manage risks through specific clauses in the lease, which would be reported to Council and consulted on.
Noise in quiet street	2	Council can restrict the types of uses of Panako Park to those with lower volumes of participants and require management of any traffic effects through specific clauses in the lease.
Not enough carparking	1	Council can restrict the types of uses of Panako Park to those with lower volumes of participants and require management of any traffic effects through specific clauses in the lease.
Difficulty of emergency vehicle access when street full	1	If required Council can mark no parking lines to manage access.
Would reduce or remove ability to play on the park	1	This is a risk, as any potential tenant might wish to change the grassed area. Awapuni Park is 350m walking distance away. Council owns an unformed accessway at the end of Panako Place connecting directly to Awapuni Park. Council has declined proposed programmes it open it up or sell it to its neighbours in the past. It is being held as a potential future connection if demand warrants.

4. Option deScription and analsyis:

The following decision tree has been set out to assist with visualising the options.

4.1 Option 1A: Approve the classification change and purchase the hall

4.1.1 Under this option Council would broaden the types of community use that can be made of the park by classifying the reserve Local Purpose (Community).

4.1.2 This option includes purchasing the hall from Girl Guiding New Zealand and carrying some immediate repairs.

4.1.3 Benefits:

· Retains flexibility for Council in determining the long-term future use of the land without the complication of a third-party building ownership.

· Gives Girl Guiding a faster process to sell the hall, noting that they initially approached Council about exiting the lease in mid-2021.

· Addresses complaints from neighbouring properties about the derelict shed.

4.1.4 Risks/costs:

· Purchase of the building would cost $20,000 including legal fees.

· Approximately $25,000 required in immediate maintenance (removing the derelict shed, some weather tightness repairs^{^[10]}) to hold the building in a workable state pending future decisions.

· If the Awapuni Library and Community Hub does not proceed, or does not require the Panako Park land, then Council would have further costs to either on-sell the building to a community group or for long-term maintenance and renewal of the building.

4.2 Option 1B: Approve the classification change and do not purchase the hall

4.2.1 Under this option Council would proceed with broadening the community uses that can be made for the reserve by classifying it Local Purpose (Community).

4.2.2 Girl Guiding New Zealand would proceed with a hall sale, which would be subject to a land lease.

4.2.3 Council would receive a further report and conduct the required consultation on the land lease.

4.2.4 Any group leasing the building might require a resource consent, depending on the nature and effects of their activities which are in a Recreation Zone.

4.2.5 Benefits:

· Increases community use.

· Community ownership and operation of the hall has lower costs to Council.

4.2.6 Risks/costs:

· Does not account for the recent direction of Council in investigating community hub developments. Risk that Council would need to end the lease and purchase or require removal of the building.

4.3 Option 2A: Decline the proposed classification change and purchase the Girl Guiding hall

4.3.1 Council could decline the proposed reclassification if it accepted that the objections warranted retaining the use as recreation only.

4.3.2 Under this option Council would purchase the building.

4.3.3 Benefits:

· Retains a recreation focus for the park.

· Meets the concerns raised in some submissions in opposition.

· Retains flexibility for Council in determining the long-term future use of the land without the complication of a third-party building ownership if the Girl Guides hall were sold to a third party.

4.3.4 Risks/costs:

· May not result in as much community benefit given that the demand identified was for non-recreation community uses.

· Purchase of the building would cost $20,000 including legal fees.

· Approximately $25,000 required in immediate maintenance (removing the derelict shed, some weather tightness repairs^{^[11]}) to hold the building in a workable state pending future decisions.

· If the Awapuni Library and Community Hub does not proceed, or does not require the Panako Park land, then Council would have further costs in either on-selling the building to a community group or long-term maintenance and renewal of the building.

· If the Awapuni Library and Community Hub does proceed, Council would need to complete another classification process.

4.4 Option 2B: Decline the proposed classification change and do not purchase the hall

4.4.1 Council could decline the proposed reclassification if it accepted that the objections warranted retaining the use as recreation only.

4.4.2 Girl Guiding New Zealand would proceed with a hall sale which would be subject to a land lease.

4.4.3 Council would receive a further report and conduct the required consultation on that proposed lease.

4.4.4 Benefits:

· Retains a recreation focus for the park, meeting the concerns raised in submissions in opposition.

· Community ownership and operation of the hall has lower costs to Council.

4.4.5 Risks/costs:

· May not result in as much community benefit given that the demand identified was for non-recreation community uses.

· Risk that Council would need to end the lease and purchase or require removal of the building.

· If the Awapuni Library and Community Hub does proceed, Council would need to complete another classification process.

5. Conclusion

5.1 Officers recommend Option 1A – ‘Proceed with classifying Panako Park as Local Purpose (Community) Reserve and purchase the Girl Guiding hall’.

5.2 Concerns raised in objections to the classification as Local Purpose (Community) can be managed through lease arrangements.

5.3 A decision on a possible Awapuni Library and Community Hub will be made through the Long-Term Plan process.

5.4 Officers recommend that Council proceeds with the reserve classification and purchases the Girl Guides hall and undertake immediate basic maintenance, rather than wait until the Long-Term Plan, as time has already expired since Girl Guides’ initial request to Council.

5.5 Council can operate the building as a short-term lease space until such time as decisions on the Awapuni Library and Community Hub are made.

6. Next actions

6.1 Gazette the classification of Panako Park reserve as Local Purpose Community.

6.2 Complete purchase of the Girl Guides hall.

6.3 Enter a month to month land and building lease with Girl Guides pending decisions on the Awapuni Library and Community Hub.

7. Outline of community engagement process

7.1 Council received information on the community engagement, submissions and held hearings at the Strategy & Finance Committee meeting on 20 September 2023.

7.2 Should the park be leased in the future, further engagement on the proposed lease will occur.

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?		No
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 Goal 2: A Creative and Exciting City
The recommendations contribute to the achievement of action/actions in Connected Communities The action is: · Plan and provide new community centres, libraries or hubs in accordance with city-wide needs assessment and planning; and · Administer the Reserves Act 1977
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The recommendations support greater community use of Panako Park by broadening the type of use to meet the demand. The recommendations support Council’s investigations into a possible Awapuni Library and Community Hub.

Attachments

Nil

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: 2023 Housing and Business Development Capacity Assessment

Presented By: Tara Lennard, Planner and Sam Dowse, Senior Planner

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATION(S) TO Council

1. That Council adopt the ‘2023 Palmerston North Housing and Business Development Capacity Assessment’ presented to Council on 15 November 2023, included as Attachment 1 of this memorandum, and make it publicly available.

2. That Council adopt the housing bottom lines in the 2023 Palmerston North Housing and Business Development Capacity Assessment, and insert these into Section 1 of the Palmerston North District Plan.

1. ISSUE

1.1 The Council must prepare a Housing and Business Development Capacity Assessment (‘HBA’) under the National Policy Statement on Urban Development (2020) (‘the Policy Statement’) every three years in time to inform our next Long Term Plan.

1.2 The purpose of the HBA is to:

· provide information on the demand and supply of housing and business land over the next 30 years;

· inform Resource Management Act 1991 planning documents (such as our District Plan), the Future Development Strategy, and the Long Term Plan; and

· quantify the development capacity that is sufficient to meet the expected demand for housing and business land in the short, medium and long terms.

1.3 The Policy Statement requires the Council to insert housing bottom lines into the District Plan after the HBA is publicly available.

1.4 The bottom lines state how many homes are required to meet demand over the next 30 years, plus competitiveness margins, which the Policy Statement requires us to apply. The purpose of competitiveness margins is to support choice and competitiveness in the City’s housing market. The housing bottom lines are:

Short-medium term

(within the next 10 years)

Long term

(between 10 and 30 years)

3,993

includes a margin of 20%

5,891

includes a margin of 15%

2. BACKGROUND

2.1 The HBA has been prepared in accordance with the requirements of the Policy Statement.

2.2 Population projections over the next 30 years were used to assess housing and business land demand. The City’s population is 90,400 and is projected to reach 117,280 by 2054. Population growth and change and economic development activities will drive demand for housing and business floor area and land.

2.3 To assess housing and business land supply, the HBA has looked at our already zoned land for housing and business and future growth areas (such as Aokautere, Kākātangiata, and Te Utanganui).

2.4 The HBA takes the demand figures for housing and business land, adds competitiveness margins, as required by the Policy Statement, and then assesses if sufficient development capacity exists.

2.5 As part of preparing the HBA, Officers have engaged with Rangitāne o Manawatū, the development community, and development infrastructure providers, including Horizons Regional Council, Powerco, Waka Kotahi, Chorus and Transpower.

3. Housing Development Capacity Assessment

Demand Assessment

3.1 The HBA projects demand for housing based on the city’s projected population and households over the next 30 years and estimates the need for an additional 9,884 homes. Over the short, medium and long term, this means the city will need:

· 983 homes in the short term (within the next 3 years – 2024-2027)

· 3,010 homes in the medium term (between 3 and 10 years – 2027-2034)

· 5,891 homes in the long term (between 10 and 30 years – 2034-2054)

Note that this demand includes required competitiveness margins, which are 20% in the short and medium term and 15% in the long term.

3.2 In terms of demand for housing type and location, the HBA projects that demand for greenfield, infill, and rural/rural-residential and standalone and attached dwellings will be spread according to Table 1 below:

Table 1: Projected demand for housing location and type in the short, medium and long term

Short term

within the next 3 years

Medium term

between 3 – 10 years

Long term

between 10 – 30 years

30-year total

Housing location

Greenfield

40%

393

50%

1,505

55%

3,240

5,138

Infill

55%

541

45%

1,354

40%

2,357

4,251

Rural/Rural-Residential

150

295

494

Housing type

Standalone dwelling

88%

865

86%

2,588

78%

4,595

8,048

Attached dwelling

12%

118

14%

421

22%

1,296

1,835

Housing Capacity Assessment

3.3 In the short term, 2,053 homes are plan-enabled, infrastructure-ready, commercially feasible and likely to be realised. These homes are in infill (1,408), greenfield (528) and rural/rural-residential (117) locations.

3.4 In the medium term, 5,757 homes are plan-enabled, infrastructure-ready, commercially feasible and likely to be realised. These homes are in infill (3,238), greenfield (2,246) and rural/rural-residential (273) locations.

3.5 In the long term, 10,883 homes are plan-enabled, infrastructure-ready, commercially feasible, and likely to be realised. These homes are in infill (3,238), greenfield (6,865) and rural/rural-residential (780) locations.

3.6 This capacity is a mixture of infill development potential, upcoming District Plan changes to rezone land for housing across the city, and infrastructure servicing and development of our recent greenfield and brownfield residential areas. The proposed Medium Density Residential Zone plan change aims to further enable housing intensification within the city. How many additional homes might be realised through this change will not be known until the stormwater assessment is finalised.

Sufficiency Assessment

3.7 Overall, the city has sufficient housing supply to meet demand based on comparing our demand projections with our housing land supply that is zoned, infrastructure-ready, commercially feasible and reasonably expected to be realised.

3.8 While recent quarterly reporting to Council has indicated the city does not have sufficient housing supply, preparation of the HBA has meant a closer examination of infill and rural/residential capacity and the requirements of the Policy Statement, whereas the quarterly reporting has focused on infrastructure-ready greenfield land.

3.9 Infrastructure servicing of greenfield and infill housing will be key to meeting demand for infill and greenfield housing. Funding development infrastructure at Aokautere and Kākātangiata should be a key consideration in 2024 Long Term Plan funding considerations.

4. Business Development Capacity Assessment

Demand Assessment

4.1 The HBA projects demand for floor area from business sectors over the next 30 years based on projected population growth and current and future floorspace and land requirements.

4.2 The HBA projects demand for floor area and land from each business sector as set out in table 2 below:

Table 2: Projected demand in the short, medium and long term from business sectors

Business Sector	Short term		Medium term		Long term		30 Year Total
	Short term		Medium term		Long term		30 Year Total
	Floor area (m²)	Land area (ha)	Floor area (m²)	Land area (ha)	Floor area (m²)	Land area (ha)	Floor area (m²)	Land area (ha)
Small & medium industrial	34,264	9.1	95,527	24.5	216,481	50.8	346,271	84.4
Large floor plate industrial	59,688	13.9	177,430	40.7	515,959	114.7	753,077	169.3
Accommodation	-	0.0	4,566	0.4	15,984	1.2	20,550	1.5
Small & medium retail (pedestrian-oriented retail)	-	0.0	-	0.0	43,856	3.8	43,856	3.8
Large format retail (vehicle-oriented retail)	3,540	0.6	13,427	2.4	33,030	5.5	49,997	8.5
Commercial office	-	0.0	71	0.0	32,984	0.7	33,055	0.7
Commercial services	4,181	0.8	16,079	3.2	39,672	7.4	59,931	11.4
TOTAL	101,672	24.5	307,099	71.2	897,966	184.0	1,306,738	279.6

Business Capacity Assessment

4.3 The HBA looked at plan-enabled, infrastructure-ready business and industrial land and whether it is suitable for each business sector and identified that the city has:

· 631.1 hectares of business land in the short term

· 94.4 hectares of business land in the medium term

· 288 hectares of business land in the long term

Sufficiency Assessment

4.4 Based on comparing the estimated demand and business land supply over the short, medium and long term, the HBA found that the city has enough business land to meet demand over the next 30 years.

4.5 Meeting demand will rely on the development and redevelopment of business land at greater intensities than has occurred in the past and the implementation of the Te Utanganui master plan.

5. NEXT STEPS

5.1 Insert the updated housing bottom lines into the Palmerston North City District Plan. This is an administrative task that does not require a District Plan change.

5.2 Work will continue on residential District Plan changes to rezone land for housing to meet demand.

5.3 Work will continue to action the Te Utanganui master plan and monitor business land supply, particularly as pockets of industrial land are rezoned for residential use.

5.4 The 2023 HBA will inform District Plan changes, Future Development Strategy and 2024 Long Term Plan.

5.5 Continue to monitor housing and business indicators to ensure the city has sufficient development capacity to meet demand.

6. Compliance and administration

Does the Council have delegated authority to decide?		Yes
Are the decisions significant?		No
If they are significant do they affect land or a body of water?		No
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		No
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in the City Growth plan. The action is: · Implement the National Policy Statement Development Capacity on Urban Development · Carry out Housing and Business Needs Assessments every three years · Monitor supply and demand of urban development and infrastructural capacity
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Housing and business land contribute to social and economic wellbeing. The HBA helps the Council understand the demand and supply of housing and informs the Council’s planning and infrastructure decisions when providing housing and business land to market.

Attachments

1.	2023 Palmerston North Housing and Business Development Capacity Assessment (attached separately)
2.	HBA Appendix 1 - Our Economic Overview (attached separately)
3.	HBA Appendix 2 - Palmerston North Commercial Land Assessment 2023 (attached separately)
4.	HBA Appendix 3 - Palmerston North Commercial Market Survey 2022 (attached separately)

report

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: Opie Reserve - Proposal to support Te Kōhanga Reo O Ngāti Hineaute Ki Rangitaane O Manawatū Trust by notifying the intention to grant community occupancy via a lease of Council land

PRESENTED BY: Bryce Hosking, Group Manager - Property and Resource Recovery

APPROVED BY: Chris Dyhrberg, Chief Infrastructure Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee support Te Kōhanga Reo O Ngāti Hineaute Ki Rangitaane O Manawatū Trust by notifying the intention to grant community occupancy via a lease at Opie Reserve and part of Tui Park, Palmerston North, in accordance with the Support and Funding Policy 2022 and Section 54 of the Reserves Act 1977.

2. That the Committee note the land affected by the community occupancy lease to Te Kōhanga Reo O Ngāti Hineaute Ki Rangitaane O Manawatū Trust is described as Lot 81 DP 24258 and Sec 1 SO 452061.

Summary of options analysis for

Problem or Opportunity	Ngāti Hineaute (The Trust) have requested support from Council by granting community occupancy of two locations, being Opie Reserve and part of Tui Park. The Trust propose to continue to operate at Tui Park until such time as the Trust can relocate to the new site at Opie Reserve. This report seeks Council’s approval to commence the public notification process in accordance with the Support and Funding Policy 2022 and Section 54 of the Reserves Act 1977 for both support proposals.
OPTION 1:	Notify the public of Council’s intention to continue supporting the Trust by granting occupancy via a new lease at Opie Reserve in conjunction with a secondary lease for the existing site, being part of Tui Park.
Community Views	· Community views will be sought during the public notification period. · The previous public consultation regarding the reclassification of Opie Reserve from a Recreation Reserve to Local Purpose (Community) Reserve showed a strong positive response from the community.
Benefits	· The community views, along with any objections received, will be considered to inform the decision to enter a lease. · Council can continue supporting and developing the relationship with the Trust by supporting the new positive community initiative. This enables the Trust to expand its activities to a new site and present the community with further opportunities. · The area located at Tui Park will become available once the short-term lease has expired. Council will explore options for the continued use of the site 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 when a leasing arrangement ends.
Risks	· There are no risks associated with the Tui Park site, as the Trust have been occupying the site since 2013. · The new lease proposal will alter the current visual appearance of Opie Reserve and see new buildings and cultural structures erected, which may not be viewed positively by residents who wish the area to remain as a green space. If this risk is realised, it will be reflected in the consultation feedback. · The Trust have provided a high-level conceptual plan for the proposal at Opie Reserve which may require reconfiguration or changes and may not reflect the final build product. This risk could be managed through the consenting process.
Financial	· The cost of public notification will be minor. · Provided the Council enter the new leases, Council will receive the annual rent of $200 plus GST: o $50 plus GST for the site at Tui Park; and o $150 plus GST for the site at Opie Reserve. · Council will see a reduction in operational expenses at Opie Reserve as it will no longer need to be maintained as a park by Council.
OPTION 2:	Do not notify the public of the intention to support through a lease, effectively ending the existing lease arrangement at Tui Park and preventing the future development of Opie Reserve proposed by the Trust.
Community Views	· Community views to inform the Council’s decision on the Trust’s proposed occupancy will not be sought.
Benefits	· Should the lease not be entered, Council will explore options for the continued use of both sites 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 when a leasing arrangement ends. · Opie Reserve will remain the same as no additional buildings or alterations will be placed on the site. · The Trust will be required to vacate the area located at Tui Park and remove existing improvements.
Risks	· Council may be criticised for not supporting the intentions of the Trust. · The Trust have advised they have an extensive waiting list for tamariki who require early childhood services. This information shows a need for a larger Kōhanga Reo in the Highbury Community. This option will not meet the demand in the community.
Financial	· Council will no longer receive the annual rental figure of $50 for the site at Tui Park.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 The Trust have been receiving support form Council by occupying 80m² of Council land at Tui Park since 2013. The lease expired on 31 October 2023.

1.2 The Trust currently occupy a privately owned site located at 117 Highbury Avenue. This site neighbours Tui Park, a small section of which is utilised by the Trust for an outdoor area for their tamariki. An outdoor space is a requirement at a registered early childhood facility.

1.3 The Trust have outgrown their current lease area and due to the location do not have the ability to expand at the current site.

1.4 The Trust propose to expand their services to the community by building a new urban marae/place of gathering for the people of Hineaute and the wider community at Opie Reserve.

1.5 The Trust propose to continue to operate at Tui Park until such time the Trust can relocate to the new site at Opie Reserve.

1.6 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.

1.7 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 and section 54 of the Reserves Act 1977, noting that the final decision to lease to the Trust will be brought to the Strategy & Finance Committee in a subsequent report.

2. Background and previous council decisions

2.1 The Trust currently occupy 117 Highbury Avenue which is privately owned. Council granted occupancy for part of Tui Park to provide an outdoor area since 2013. The lease expired on 31 October 2023. The Trust have outgrown the space and require a larger facility as well as a space to support the local community.

2.2 The Trust believe there is a lack of Kōhanga Reo and early childhood facilities in Highbury. The Trust also believe due to the growth in Palmerston North it is likely the demand will increase.

2.3 The Trust wishes to expand their services by developing the site at Opie Reserve. A high-level concept plan is shown in Figure 1 below. This development is intended to be carried out in two phases, the first phase intending to be the development of the Kōhanga Reo, including building facilities, carparking and infrastructure. Phase Two will be the development of the Urban Marae.

Figure 1: Indicative conceptual layout

2.4 During the development of Opie Reserve the Trust wish to continue to occupy Tui Park to ensure their current operation can continue.

Reclassification of Opie Reserve

2.5 On 7 June 2023, the Strategy & Finance Committee approved the following recommendation:

1. That Council, as the Administering Body of Opie Reserve, applies to the Minister of Conservation to have Opie Reserve (Lot 81 DP 24258) reclassified from its current status as Recreation Reserve to Local Purpose: Community, as per Section 24 (b) of the Reserves Act 1977.

2. That the Council, acting under delegated authority (2013) from the Minister of Conservation, ensures that Section 119 and 120 of the Reserves Act 1977 were followed during the proposed reclassification of Opie Reserve.

2.6 Council Officers have been advised that the Minister of Conservation, upon assessing Council’s application to reclassify Opie Reserve, has given approval for this reclassification to proceed.

2.7 Given this, Council Officers are now in the process of registering the Gazette for the land reclassification with LINZ to give effect to this.

3. The proposal

Opie Reserve Proposal

3.1 The proposed area for the lease at Opie Reserve is approximately 4,238m² and situated at Opie Reserve as outlined in Figure 2 below.

3.2 If the lease is granted, the proposed annual rent is $150 plus GST. This is consistent with the rental framework in Council’s Support and Funding Policy.

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

Figure 2: Proposed lease area at Opie Reserve

Tui Park Proposal

3.4 The proposed area for the lease at Tui Park is approximately 80m² as outlined in Figure 3 below.

3.5 If the lease is granted, the proposed annual rent is $50.00 plus GST. This is consistent with the rental framework in Council‘s Support and Funding Policy.

3.6 The proposed term would be five (5) years with no right of renewal. The lease agreement will include provisions for an early termination if the site at Opie Reserve is constructed prior to the termination date.

Figure 3: Proposed leased area at Tui Park

4. Assessment of proposal under 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. One form of support within the policy is to enable for-purpose groups to occupy Council-owned property at community rental rates.

4.2 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 they first meet the policy’s eligibility criteria before proceeding any further.

4.3 The application from The Trust is attached to the report as Appendix 1.

4.4 Further assessment considerations are outlined in 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.

4.5 In summary, following the assessment against the Policy, Council Officers conclude that the Trust is providing community good; however, because of the expansion, there is some impact on the locality and park operations in the area.

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 ‘Sections 61 of the Reserves Act 1977 allows for an administering body to:

(2A) In addition to the powers of leasing conferred by subsection (2), the administering body, in the case of a local purpose reserve that is vested in the administering body, may lease all or any part of the reserve to any person, body, voluntary organisation, or society (whether incorporated or not) for any of the following purposes:

(a) community building, playcentre, kindergarten, Plunket room, or other like purposes.

5.3 The lease proposal is consistent with the purposes of the Act.

6. land status

6.1 A summary of the land status information is:

Title	Reserve Status	Officer Comment
Sec 1 SO 452061	Local Purpose (Community) Reserve	Tui Park
Lot 81 DP 24258	In the process of being registered as a Local Purpose (Community) Reserve	Opie Reserve

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 of options

Notify the public of Council’s intention to continue supporting the Trust by granting occupancy via a new lease at Opie Reserve in conjunction with a secondary lease for the existing site, being part of Tui Park.

8.1 This is the preferred option.

8.2 Council seek feedback on continuing to support the Trust through the process outlined in the Support and Funding Policy.

8.3 Council must give people the opportunity to submit on 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 Trust.

8.5 The Trust contribute to the community and show strong alignment with Council’s strategic direction. The Trust add to Council’s priority to ensure the use of community reserves is optimised.

Do not notify the public of the intention to support through a lease, effectively ending the future development of Opie Reserve facilitated by the Trust.

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

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

8.8 The implication of this option on the Trust would mean that they will be required to cease all operations at both Opie Reserve and Tui Park.

8.9 This option poses the risk that Council will be perceived as not supporting the activities of the Trust, and not recognising the current limitations on services in the Highbury community.

9. Conclusion

9.1 The proposal is consistent with the requirements of the Support and Funding Policy. The proposed occupancy will allow the Trust to expand their activities provided to the community.

9.2 Public notification on the proposal 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 Section 54 of the Reserves Act 1977.

9.3 It is recommended the Committee proceed with Option 1. The Trust activities contribute to outcomes to achieve Goal 2 of Council’s strategic direction.

10. next action

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 1977.

11.2 The public consultation will consist of:

· Public notice in the Manawatu Standard and Dominion Post

· Online advertisement on the Council website

· A social media post on the Palmerston North Council Website and other social media channels

· Letter drop to neighbours in the nearby vicinity

· A billboard onsite

· All individuals who submitted on the reclassification of Opie Reserve will be contacted directly.

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 actions are: · Build and maintain relationships with local communities of identify, interest and place to understand and support their strengths and aspirations. · Lease Council land and facilities to ‘for-purpose’ organisations in line with the Support and Funding Policy
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 social wellbeing of the city.

Attachments

1.	Application for occupancy of Council land ⇩
2.	Assessment of lease at Tui Park ⇩
3.	Assessment of Opie Reserve ⇩

REPORT

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: 21 Havelock Avenue (part of Bill Brown Park) - Proposal to support Papaioea Pasifika Community Trust by notifying the intention to grant a Licence Agreement of Council land

PRESENTED BY: Bryce Hosking, Group Manager - Property and Resource Recovery

APPROVED BY: Chris Dyhrberg, Chief Infrastructure Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee notify the public of its intention to support a proposed community garden activity to be coordinated by Papaioea Pasifika Community Trust in addition to their existing activities at 21 Havelock Avenue (part of Bill Brown Park), Palmerston North. This will be in accordance with the Support and Funding Policy 2022 and Section 54 of the Reserves Act 1977.

2. That the Committee note the land affected by the Licence Agreement to Papaioea Pasifika Community Trust is described as Lot 1 DP 40097.

Summary of options analysis for

Problem or Opportunity	Papaioea Pasifika Community Trust (‘the Trust’) has been occupying the Pasifika Centre through a community lease, to which the current iteration commenced in 2019. The Trust would like to expand their services to also include a community garden at 21 Havelock Avenue (part of Bill Brown Park). As such, they have requested additional support from Council through granting a licence to occupy the extra land where the garden will sit. This report seeks Council’s approval to commence the public notification process for the licence in accordance with the Support and Funding Policy 2022 and Section 54 of the Reserves Act 1977.
OPTION 1: (Preferred Option)	Notify the public of Council’s intention to continue supporting the Trust by granting a licence for the purpose of a community garden at 21 Havelock Avenue (part of Bill Brown Park).
Community Views	· Community views will be sought during the public notification period. · As part of the Trust's application for the proposal, the Trust have included their own self-driven community engagement for the project. The community engagement provided a positive response to the project.
Benefits	· The community views and any objections received will be considered to inform the decision to enter a licence. · Council can continue supporting and developing the relationship with the Trust by supporting the new positive community initiative. This enables the Trust to expand its activities at 21 Havelock Avenue (part of Bill Brown Park). · This proposal is supported by the Vegetation Framework and Placemaking Plan. The community garden initiative enhances individual food growing skills. · If the gardens proceed, all costs of both implementation and ongoing operations will be at the cost of the Trust.
Risks	· The new licence agreement will alter the current visual appearance of Bill Brown Park. · If the garden is not maintained to a suitable standard or the Trust wishes to discontinue the venture in the future, it may be difficult to ‘make good’ the site again.
Financial	· The Cost of the public notification will be minor. · Provided the Council enter a licence, Council will receive an annual fee of $50 plus GST, noting that this will be in addition to the existing lease on the Pasifika Centre building which is $1,800 + GST per annum.
OPTION 2:	Do not notify the public of the intention to support the Trust through a licence, effectively ending the proposal of a community garden at Bill Brown Park.
Community Views	· Community views to inform the Council’s decision on the Trust’s proposed licence will not be sought.
Benefits	· Bill Brown Park will remain the same; no improvements will be placed on the site.
Risks	· Council may be criticised for not supporting the intentions of the Trust or supporting a new community gardens initiative. · This option does not align with Council’s Eco City Goal 4. This option does not promote Council’s intention to reduce food waste and foster sustainable practices. · The relationship between the Trust and Council may be negatively impacted moving forward.
Financial	· Council will not receive the additional annual fee of $50 plus GST for the proposed licence.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 The Trust has been occupying the Pasifika Community Centre which provides community services, a community space, and also provides a focus on working with families to develop their goals and aspirations by providing a food hub and foodbank project. To further expand its services and support to the community, the Trust has proposed an education community garden Maala Kai within Bill Brown Park.

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

1.3 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 and section 54 of the Reserves Act 1977.

1.4 The final decision to lease to the Trust will be brought to the Strategy & Finance Committee in a subsequent report.

2. Background and previous council decisions

2.1 The Trust have been receiving support from Council by occupying the Pasifika Community Centre via a lease agreement at 21 Havelock Avenue, which in its current iteration commenced in 2019.

2.2 During the Covid-19 response the Trust provided support to the community through a foodbank initiative. This initiative has continued to operate since. To further expand their services and support to the community, the Trust has proposed a community garden within Bill Brown Park.

2.3 The Trust has been working with others who have led similar projects in the community, which has provided guidance on how the Trust can implement a similar benefit.

2.4 The community garden will be used as an educational tool for members of the Pasifika Community and wider Palmerston North. The education programme is intended to provide workshops and improve knowledge to develop the capacity and capability of families to grow and manage their own fruits and vegetables in a sustainable manner.

2.5 Council Officers developed The Community Garden Guide in 2021 to provide information to groups who wish to develop a community garden. This Guide is not a Council policy, however Council Officers within the Community Development Team have assessed the proposal against the guide and conclude that the proposal is feasible.

The assessment against the Palmy Community Garden Guide is attached to the report as Appendix 1.

2.6 The Trust has requested to enter a Deed of Licence with Council to enable the Trust to proceed with the site development.

3. The proposal

3.1 The proposed licence area is approximately 27m² and is situated at 21 Havelock Avenue (part of Bill Brown Park) as outlined in Figure 1 below.

3.2 If the licence is granted, the proposed annual fee is $50 plus GST. This is consistent with the framework in Council’s Support and Funding Policy, noting that this will be in addition to the existing lease on the Pasifika Centre building which is $1,800 + GST per annum.

3.3 The proposed term would be for two (2) years, with one right of renewal for a further two (2) years.

3.4 If the licence is commenced, the site will not be significantly impacted due to the size of the project. A licence agreement only grants permission to occupy the property, whereas a lease grants a tenant exclusive possession. Figure 2 below provides a concept of how the project may impact the street view.

Figure 1: Proposed licence area at Bill Brown Park

Figure 2: Street view of proposed licence area

4. Assessment of proposal under the support and funding policy

4.3 The application from the Trust is attached to the report as Appendix 2.

4.4 Further assessment considerations are outlined in 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.

4.5 In summary, following the assessment against the Policy, Council Officers conclude that the Trust is providing community good, however, because of the licence agreement, there is some minor impact on the locality and park operations in the area.

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, Tui Park, is available for general use by the community.

5.4 The proposal would see the reserve utilised by the Trust. The licence will provide a new experience and positive change to the reserve.

6. land status

6.1 A summary of the land status information is;

Title	Reserve Status	Officer Comment
Lot 1 DP 40097	Recreational Reserve	Subject to the Reserves Act 1977

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 will be consulted during the consultation process.

8. Description of options

Notify the public of Council’s intention to continue supporting the Trust by granting a Licence Agreement for the purpose of a community garden at 21 Havelock Avenue (part of Bill Brown Park).

8.1 This is the preferred option.

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

8.3 Council must give people the opportunity to submit 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 licence with the Trust.

8.5 The Trust contributes to the community and shows strong alignment with Council’s strategic direction. The Trust adds to Council’s priority to ensure the use of all community recreation facilities is optimised.

Do not notify the public of the intention to support the Trust through a licence, effectively ending the proposal of a community garden at Bill Brown Park.

8.6 The impact of this option would mean that the opportunity to seek community feedback on the Trust's proposed occupancy of the site would not occur.

8.7 The implication of this option on the Trust would mean that they would not be able to proceed with the proposed community garden initiative.

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

9. Conclusion

9.1 The proposal is consistent with the requirements of the Support and Funding Policy. The proposed licence agreement will allow the Trust to provide additional services 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 section 54 of the Reserves Act 1977.

9.3 It is recommended that the Committee proceed with Option 1. The Trust activities contribute to outcomes to achieve Goal 3 of Council’s strategic direction.

10. Next actions

10.1 Public notification of the intention to grant a licence, 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 licence 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 1977. The consultation requires a minimum of one-month period advertised in the Manawatū Standard, Dominion Post 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 3: A Connected and Safe Community
The recommendations contribute to the achievement of action/actions in Connected Communities The action is: Lease Council land and facilities to for-purpose organisations in line with the Community Funding Policy.
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 social wellbeing of the city.

Attachments

1.	Palmy Community Garden Guide - Assessment ⇩
2.	Application to request occupancy of Council land ⇩
3.	Support and Funding Policy - Assessment ⇩

report

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: 154 Centennial Drive - Proposal to continue supporting the Palmerston North Canoe Club Incorporated by notifying the intention to grant occupancy via a commercial lease of Council land and building

PRESENTED BY: Bryce Hosking, Group Manager - Property and Resource Recovery

APPROVED BY: Chris Dyhrberg, Chief Infrastructure Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee propose to continue to support Palmerston North Canoe Club Incorporated by notifying the public of its intention to grant occupancy of Council land and building at 154 Centennial Drive, Palmerston North, in accordance with Section 54 of the Reserves Act 1977.

2. That the Committee note that the land affected by the occupancy of Palmerston North Canoe Club Incorporated is described as Part Lot 3 DP 1332.

Summary of options analysis for

Problem or Opportunity	The Canoe Club has held a commercial lease for the land and part of the building at 154 Centennial Drive, commonly known as ‘The Chalet’, since 1968. The building is part owned by both the Canoe Club and Palmerston North City Council. The Canoe Club has a commercial sublease of the top floor of the building to a commercial catering and event company. As the site is on reserve land, any new lease is subject to the requirements of the Reserves Act 1977. This includes public notification of Council’s intention to grant a new lease on the Reserve. This report requests approval to commence the public notification process in accordance with Section 54 of the Reserves Act 1977. Due to the commercial nature of the lease, the current rental figures will be included in a confidential attachment to this report.
OPTION 1:	Notify the public of Council’s intention to approve the proposal to grant a lease to the existing tenant at 154 Centennial Drive in accordance with Section 54 of the Reserves Act 1977.
Community Views	· Community views will be sought during the public notification period. · Council is not aware of any complaints or issues regarding the Canoe Club or the sublease’s activities.
Benefits	· Entering a new lease will allow the Canoe Club to continue to provide sporting and recreational opportunities for the Palmerston North community as well as continuity of the commercial event venue sublease. · The community views will be understood to inform the decision and any objections considered as required under the Reserves Act 1977.
Risks	· Whilst not a direct risk related to whether to grant a new lease, there is a risk identified in association to the condition of the building. The joint ownership of the building, whilst positive from a partnership perspective, does create funding restrictions when addressing works to be undertaken to the building as works are to be co-funded by both parties. Several renewal works have been identified and the building has also been identified as being earthquake prone. If not addressed, these works may start to impact on the building’s performance.
Financial	· Costs of public notification will be minor. · If a new lease were entered, Council would continue to receive 44.6% of the annual market rent, as noted in the confidential attachment.
OPTION 2:	Do not notify the public of the intention to grant a lease – effectively causing the discontinuation of the Canoe Club’s occupancy of Council’s land and the jointly owned building.
Community Views	· Community views will not be sought.
Benefits	· The current lease provides provision for what would occur should the lease discontinue, which will allow for a ‘clean’ ending to the situation. For context, the lease directs that upon the lease coming to an end, the Canoe Club’s ownership share of the building, together with all improvements thereon, will transfer to Council’s ownership in full without compensation payable to the Tenant. · Should the lease end and the Canoe Club be requested to vacate the premises, Council will have the opportunity to 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 the reserve land when a leasing arrangement ends. · This would provide Council with the opportunity to address the renewal works required without needing to seek co-funding.
Risks	· The Canoe Club currently has a sublease for a portion of the building to a private caterer. If the lease is to end, in turn, the sublease would expire, and there may not be an opportunity to re-sign them, meaning the building would be vacant and these services would cease also. · Council may be perceived as not supporting the sport and recreation activities of the Canoe Club. · Given that the Canoe Club’s ownership share in the building assets will simply transfer to Council without compensation, this may have a considerable impact on the Canoe Club’s financial situation.
Financial	· Council would no longer receive 44.6% annual market rent. · All building works and ownership costs would now be borne by Council in full.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 The Canoe Club has been occupying part of Council’s building and land at 154 Centennial Drive (Chalet), Palmerston North since 1968. The Canoe Club’s lease is due to expire on 28 February 2024 and the Club now requests a new lease so they can continue to operate from the site.

1.2 As the leased land is reserve land, any new lease is subject to the requirements of the Reserves Act 1977 which requires public notification of Council’s intention to grant a new lease.

1.3 This report seeks Council’s approval to commence the public notification process in accordance with Section 54 of the Reserves Act 1977.

1.4 Due to the commercial nature of the lease, the subsequent report seeking to grant the lease will include a confidential attachment with the new agreed market rent. This report only seeks to publicly notify the intention to grant a new lease.

2. Background and previous council decisions

2.1 The Canoe Club provides water sports activities for the wider Manawatū community. There are multiple tournaments held each year that bring in teams from around New Zealand to Palmerston North.

2.2 The Chalet is jointly owned by Council (44.6%) and the Canoe Club (55.4%). This ownership does not include the public toilets on the ground floor, these are 100% owned by Council. The Canoe Club leases the land and the portion of the building owned by Council.

2.3 The Chalet was originally built by Council. The Canoe Club leases the building as a clubroom, storage facility, and a base on the lagoon for public boating activities.

2.4 In the late 1960s the Canoe Club was gifted property around Palmerston North from their founder, Davey Dilks. The Club sold the properties and used the profits to extend the existing Chalet building. The extension doubled the size of the building; hence the unusual situation developed where a building was owned jointly by Council and the Canoe Club.

2.5 The Canoe Club sublease the upstairs function room to a catering and event company. The current sublessee is Boatshed Catering. Council receives a 44.6% share of the sublessee’s rent on an annual basis.

2.6 The joint ownership of the building, whilst positive from a partnership perspective, does create funding restrictions when addressing works to be undertaken to the building, as works are to be co-funded by both parties. Several renewal works have been identified and the building has also been identified as being earthquake prone. If not addressed, these works may start to impact on the building’s performance.

2.7 The Chalet building is proposed to be strengthened in the later end of Council’s strengthening programme, sitting 10^th on the order of strengthening.

2.8 The Canoe Club has requested a new Deed of Lease so it can continue to operate from the site before investing significant funds into intended works.

3. The proposal

3.1 The proposed lease area sought by the Club is approximately 1,056m² and is situated at 154 Continental Drive, Palmerston North, outlined in red as shown in Figure 1.

3.2 If the lease is granted, the proposed rental figure will be disclosed in a confidential attachment due to commercial sensitivity. The proposed annual rent will be determined by a market valuation prepared by an external registered valuer.

3.3 The proposed term would be five (5) years, with two rights 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.

Figure 1: Proposed lease area

4. leasing powers under the Reserves Act

4.1 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.

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

4.3 ‘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 is available for general use by the community.

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

5. assessment of proposal under the Reserves Act 1977 Considerations

5.1 The request from the Canoe Club to occupy Council’s land and building has been assessed by Council Officers in relation to considerations under the Reserves Act 1977 including consideration of the values and purpose of the reserve and the impacts on the public use of the reserve.

5.2 Further assessment considerations include the impacts on the locality and park operations.

5.3 A copy of the assessment is attached as Appendix 1.

5.4 In summary, following the assessment of the Reserves Act and its impacts on the locality and park operations, Council Officers conclude that the Canoe Club meets all criteria required.

6. land status

6.1 The legal description and status of the land is:

Title	Reserve Status	Comment
DP 1332 Lot 3	Recreation Reserve

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 Council recognises that the Hokowhitu Lagoon is a significant area for Rangitāne o Manawatū. Rangitāne o Manawatū representatives have considered the proposal. They are comfortable with this proposal and happy for it to proceed. Rangitāne have expressed their interest in strengthening their relationship with the Canoe Club.

8. description and analysis of options

Notify the public of Council’s intention to approve the proposal to grant a lease to the existing tenant at 154 Centennial Drive in accordance with Section 54 of the Reserves Act 1977.

8.1 Council will seek feedback on the proposal to grant a lease to the Canoe Club.

8.2 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.

8.3 After considering feedback, Council can then decide to enter a formal lease with the Canoe Club.

8.4 The Canoe Club contributes to the community and shows strong alignment with Council’s strategic direction. The Canoe Club aligns with Goal 2 by providing a facility that is multi-purpose and supports active communities in new residential growth areas.

Do not notify the public of the intention to lease that would effectively cause the discontinuation of the Canoe Club’s occupancy of Council land and building.

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

8.6 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.

8.7 The implication of this option on the Club would mean that they would not be able to continue leasing the site; in turn, the sublease would terminate. Under the Deed of Lease’s provisions on termination of the lease any provision providing for the termination of the lease whether by effluxion of time, surrender, breach of conditions, or otherwise the premises, together with all improvements thereon, will revert to the Landlord without compensation payable to the Tenant or otherwise.

8.8 This option poses the risk that Council will be negatively perceived by not supporting the activities of the Canoe Club and sublessee, which have occupied the site for over 50 years.

9. conclusion

9.1 The proposal is consistent with the purpose of recreation reserves as the Canoe Club is a facility supporting public recreation and enjoyment of 154 Centennial Drive (The Chalet), Palmerston North by providing a range of sporting and recreation activities to the community.

9.2 Public notification on the proposed lease will provide opportunities for submissions and objections to be made before a decision is made fulfilling the requirements of the Reserves Act 1977.

9.3 It is recommended that Council proceed with Option 1 as the preferred option. The Canoe Club’s activities contribute to outcomes to achieve Goal 2 of Council’s strategic direction.

10. Next actions

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 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 3: A Connected and Safe Community
The recommendations contribute to the achievement of action/actions in Active Communities The action is: Administer the Reserves Act 1977
Contribution to strategic direction and to social, economic, environmental, and cultural well-being	The recommendation on the proposal to seek public consultation is in line with the requirements of the Reserves Act 1977.

Attachments

1.	Assessment of Lease - Reserves Act and Park Operations ⇩
2.	Canoe Club Rental Figures 2023 - Confidential

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: 279 Albert Street (part of Hokowhitu Domain) - Proposal to grant a lease to Hokowhitu Bowling Club Incorporated

Presented By: Bryce Hosking, Group Manager - Property and Resource Recovey

APPROVED BY: Chris Dyhrberg, Chief Infrastructure Officer

RECOMMENDATION(S) TO Strategy & Finance Committee

1. That the Committee grant a lease of the land at 279 Albert Street (part of Hokowhitu Domain), Palmerston North described as Lot 18 DP 32630, and part of Lots 214, 215, 216, and 217 DP 791 to Hokowhitu Bowling Club Incorporated, in accordance with Council’s Support and Funding Policy and Section 54 of the Reserves Act 1977.

2. That the new lease to Hokowhitu Bowling Club Incorporated have either:

a. An initial term of five (5) years with a right of renewal for a further five (5) years

or

b. An initial term of three (3) years with a right of renewal for a further three (3) years.

1. ISSUE

1.1 The Hokowhitu Bowling Club has been operating at the Hokowhitu Domain, Palmerston North since 1937.

1.2 The formal land lease with the Bowling Club expired in 2019 and the Club has been operating on a month-by-month lease since.

1.3 The Bowling Club requested a new lease to continue operating. As the land leased is reserve land, the lease request is subject to the requirements of the Reserves Act 1977 in addition to Council’s Support and Funding Policy. These requirements include 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 Bowling Club in accordance with Section 54 of the Reserves Act 1977 and Council’s Support and Funding Policy.

2. BACKGROUND

2.1 A report to the Strategy & Finance Committee on 20 September 2023 assessed the proposal and as a result the Committee resolved:

1. That Council continues to support Hokowhitu Bowling Club Incorporated by notifying the public of its intention to grant community occupancy of Council land at 279 Albert Street (part of Hokowhitu Domain), 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 Hokowhitu Bowling Club Incorporated is described as Lot 18 DP 32630 and part of Lot 214, 215, 216, and 217 DP 791.

3. That the Committee note, if the lease is entered, that the lease term with Hokowhitu Bowling Club will be no less than five (5) years.

2.2 Given the third resolution above was an additional recommendation that was passed, Council Officers have had further discussions with the Bowling Club. The Bowling Club Committee has raised concerns around the uncertainty of entering a shorter-term lease in comparison to the previous lease term and feel they have created a strong community within the space and have seen an increase in members recently.

2.3 In addition, the Bowling Club Committee made it clear they have no intention of reconsidering a merger with another local bowling club and that they continue to maintain and improve the building assets, which most recently has included a $50,000 roof replacement for the clubrooms. They were concerned if a shorter term were entered this would make it harder to justify the continued investment.

2.4 Given the above, the Club has requested the consideration of the proposed lease to commence on 1 April 2023, for a term of five (5) years with a right of renewal for a further five (5) years.

2.5 For clarity, should the Strategy & Finance Committee not wish to grant a longer term, the lease will instead be three (3) years with a right of renewal for a further three (3) years, noting that either a lease with a 5+5 or a 3+3-year lease term structure will still be consistent with the wording of recommendation 3 as detailed above in 2.1 of this report.

2.6 Regardless of the term, the annual rent is to be $500.00 plus GST. This is consistent with the rental framework in Council’s Support and Funding Policy.

3. Conclusion

3.1 Council has been supporting the Club by granting occupancy of Council land since 1937.

3.2 Given there were no objections to the new lease proposal, and the requirements of the Reserves Act 1977 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 Club.

3.3 Whilst the setting of a lease term is within the delegated authority of the Group Manager – Property and Resource Recovery, given the third resolution passed in the September report Officers also seek direction from the Strategy & Finance Committee on lease term structure for the new lease.

4. NEXT STEPS

4.1 A new lease is executed between Palmerston North City Council and the Hokowhitu Bowling Club Incorporated.

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 Connected Communities The action is: Administer the Reserves Act 1977
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 social wellbeing of the city.

Attachments

Nil

Memorandum

TO: Strategy & Finance Committee

MEETING DATE: 15 November 2023

TITLE: Deliberations on submissions - draft Interim Speed Management Plan (School Speed Limits)

Presented By: Peter Ridge, Senior Policy Analyst

APPROVED BY: David Murphy, Chief Planning Officer

RECOMMENDATION TO Council

1. That Council confirm the speed limits for roads around the following schools, as set out in Attachment 1 to the memorandum:

a.	Aokautere School	Option 1A	p. 10
b.	Kairanga School	Option 12A	p. 91
c.	Longburn Adventist College	Option 13A	p. 95
d.	Longburn School	Option 14A	p. 98
e.	Turitea School	Option 22A	p. 136

2. That Council confirm the speed limits for roads around the following schools, as set out in Attachment 1 to the memorandum:

a.	Ashhurst School	Option 2A	p. 14
b.	Awapuni School, Riverdale School, West End School, Awatapu College and Manawatū Community High School	Option 3A	p. 21
c.	Bunnythorpe School	Option 4C	p. 30
d.	Carncot Independent School and Mana Tamariki	Option 5A	p. 36
e.	Central Normal School, Queen Elizabeth College and Palmerston North Boys’ High School	Option 6C	p. 41
f.	Cloverlea School	Option 7A	p. 51
g.	College Street Normal School, Palmerston North Adventist Christian School, Palmerston North Intermediate Normal School, and Palmerston North Girls’ High School	Option 8A	p. 58
h.	Cornerstone Christian School and Te Kura Kaupapa Māori o Manawatū	Option 9A	p. 67
i.	Freyberg High School, St Mary’s School, Whakatipuria Teen Parent Unit, Ross Intermediate School and Roslyn School	Option 10A	p. 74
j.	Hokowhitu School, St James School, and Winchester School	Option 11C	p. 82
k.	Milson School and St Peters College	Option 15A	p. 102
l.	Monrad Intermediate School, Takaro School and Our Lady of Lourdes School	Option 16A	p. 110
m.	Parkland School	Option 18A	p. 119
n.	Russell Street School	Option 19A	p. 122
o.	Te Kura o Wairau	Option 20A	p. 126
p.	Terrace End School	Option 21A	p. 130
q.	Whakarongo School	Option 23A	p.139

3. That Council designate OneSchool Global as a category 2 school for the purposes of the Land Transport Rule: Setting of Speed Limits 2022.

4. That Council adopt the draft Interim Speed Management Plan (School Speed Limits) as shown in Attachment 2 (with any amendments to reflect recommendations of this Committee) and submit it to Waka Kotahi for certification in accordance with the Land Transport Rule: Setting of Speed Limits 2022.

1. ISSUE

1.1 The community has had an opportunity to respond to Council’s proposed Interim Speed Management Plan (ISMP) for school speed limits. This ISMP sets out the proposed changes to speed limits around schools, as required by the Setting of Speed Limits Rule 2022. There are two requirements for school speed limits. The first is to lower speed limits for 40% of schools by 30 June 2024. The second requirement is to lower speed limits for 100% of schools by December 2027. The maximum speed limit for roads around category 1 schools is 30km/h, and 60km/h for category 2 schools.

1.2 The Council received 378 submissions on the draft Interim SMP and heard five oral submissions.

1.3 This memorandum:

· Provides analysis of the issues raised by submitters;

· Identifies the reasonably practical options for each school area;

· Makes a recommendation for each school considered in the proposal.

2. BACKGROUND

2.1 The Council is a road controlling authority with responsibility for setting speed limits on roads under its control. The process for setting speed limits was changed in 2022 when the Minister of Land Transport signed the Land Transport Rule: Setting of Speed Limits. This replaced the requirement for speed limits to be set via a bylaw. Speed limits are now set via a Speed Management Plan, adopted every three years.

2.2 On 5 April 2023 the Council approved the draft Interim Speed Management Plan (ISMP) for public consultation. The written submission period was open from 1 May until 2 June. The Strategy & Finance Committee heard oral submissions on 1 August 2023 and received a summary of written submissions.

2.3 On receiving the submissions, the Committee passed the following additional resolution:

39-23.2 ‘That the report in September include the costed option of variable speed limits across the entire 43 school areas in the proposed network, including prioritisation options.’

3. Analysis

3.1 We have provided a detailed analysis of the community feedback in Attachment 1 to this memorandum. This analysis addresses the general points raised by submitters and through social media, and the specific issues related to each school area. For each area the practical options are described, with an indicative cost to implement each option.

3.2 The options vary for each school area, but in each case the options include the possibility of using variable speed limits exclusively. There are some limited exceptions where the Speed Limits Rule 2022 would not permit the use of a variable speed limit or where it would be impractical due to the length or geometry of the road.

Additional matters suggested by submitters

3.3 Many submitters suggested additional changes which do not directly address speed limits. These suggestions most commonly took the form of infrastructural changes (e.g. speed humps) or painting ‘no parking’ lines. While these suggestions are often associated with speed limits, they are out of scope for the project and so they have not been considered in the recommended options. Extensive changes to the road infrastructure would require additional consultation and require a significant increase in budget to achieve across all school areas.

3.4 The suggestions for infrastructural change have been referred to the Roading Team for consideration under the Low Cost/Low Risk programme for road treatment.

4. Recommended changes

4.1 Based on the analysis of the issues raised through the consultation process, we have developed a revised set of proposed speed limit changes for the 43 schools included in the original proposal. These are shown as the recommended option for each school (highlighted in green) in Attachment 1.

4.2 Of the 43 schools included in the original proposals for consultation, we recommend changes to the proposed speed limits for 27 schools across ten areas. Six of these areas include minor changes, where submitters have suggested some additional roads be included or some extensions to the length of road affected by the proposed 30km/h speed limit. These six areas where minor changes are recommended include a total of 14 schools.

4.3 More substantial changes are proposed in a further four areas, affecting a total of 13 schools. These changes include adding several roads to the proposed permanent 30km/h speed limit zones or adding or extending variable speed limit zones.

	No changes	Minor changes	Substantial Changes
School areas	13	6	4
Number of schools	16	14	13

Table 1: Number of changed proposals by school area and number of schools

4.4 One of the schools where we propose a major change is OneSchool Global. We recommend that this school is designated category 2 because the nature of the school means that students are transported directly onto the school grounds. The category 2 designation means that the maximum speed limit is 60km/h. The current speed limit on Johnstone Drive is 50km/h; if the category designation is confirmed, then no speed limit change is required for this school to be compliant with the Speed Limits Rule.

4.5 We recommend that the changes proposed in the consultation document for the remaining 13 school areas (a total of 16 schools) are adopted with no further changes.

4.6 The recommended changes to speed limits on roads around schools are compiled into the draft Interim Speed Management Plan, shown as Attachment 2. This is the proposed final document which will be sent to Waka Kotahi for certification following adoption by Council.

Budget

4.7 The Council has a total available budget of $833K for implementation of the ISMP in the 2023/24 financial year. This includes 51% funding by Waka Kotahi. Any portion of Waka Kotahi’s funding which is not spent in this financial year is forfeit.

4.8 The projected installation cost for all 43 schools is approximately $1.2M. This does not include internal project management costs.

4.9 To address the difference in project costs and available budget, we recommend that the prioritised speed limit changes (as discussed in paragraphs 4.10 to 4.13 and highlighted green in Table 3) are implemented in the 2023/24 financial year. The remainder of the changes (highlighted in orange in Table 3) will be implemented in the 2024/25 financial year. This approach is reflected in the draft ISMP contained in Attachment 2. The implementation approach is discussed in section 5 of this memorandum.

Prioritisation

4.10 We used weighted criteria to assess the relative priority of each school area. There were three categories of criteria – safety, implementation factors, and engagement. Table 2 shows for each of these three categories the relative weighting given for those categories, and the criteria included in each category.

Category	Safety	Implementation factors	Engagement
Criteria	Crash history, personal crash risk, density of vulnerable road users, and SaAS/operating speeds	Baseline infrastructure works per KM, number of schools, and ease of installation	Stakeholder engagement/consultation response, school feedback, and alignment with Waka Kotahi speed limits
Weighting	33%	50%	17%

Table 2: Summary of criteria and weighting used for prioritisation of speed limit changes

4.11 This weighting of criteria produced a priority list for implementation. Staff have reviewed this list for potential efficiencies (for example, with upcoming capital or renewal projects and available budget and alignment with related speed limit changes proposed by Waka Kotahi) to produce a revised priority list. This revised priority list is shown below:

Priority	School/Cluster (with page number reference for Attachment 1)	Number of schools	Cost ($)	Cumulative cost ($)
For implementation in the 2023/2024 year
1	Milson School & St Peters College (p.102)	2	$15,300	$15,300
2	Cloverlea School (p.51)	1	$51,100	$66,400
3	Hokowhitu School, St James School, Winchester School (p. 82)	3	$85,500	$151,900
4	Freyberg High School, Whakatipuria Teen Parent Unit, Ross Intermediate, Roslyn School, St Mary’s School (p. 74)	5	$161,400	$313,300
5	Monrad Intermediate, Takaro School, Our Lady of Lourdes School (p. 110)	3	$84,000	$397,300
6	Te Kura o Wairau (p. 126)	1	$46,100	$443,400
7	Parkland School (p. 119)	1	$7,100	$450,500
8	Cornerstone Christian School & Te Kura Kaupapa Māori o Manawatū (p. 67)	2	$29,500	$480,000
9	Russell Street School (p. 122)	1	$15,700	$495,700
10	Whakarongo School (p. 139)	1	$3,800	$499,500
11	Kairanga School (p. 91)	1	$7,500	$507,000
12	Terrace End School (p. 130)	1	$23,800	$530,800
13	Longburn Adventist College (p. 95)	1	$1,900	$532,700
14	Bunnythorpe School (p. 30)	1	$46,800	$579,500
15	Longburn School (p. 98)	1	$2,400	$581,900
16	Awapuni School, Riverdale School, West End School, Awatapu College, Manawatū Community High School (p. 21)	5	$130,800	$712,700
17	OneSchool Global (p. 116)	1	$0	$712,700
For implementation in the 2024/2025 year
18	Ashhurst School (p. 14)	1	$59,100	$771,800
19	Carncot Independent School & Mana Tamariki (p. 36)	2	$48,100	$819,900
20	College Street Normal School, Palmerston North Adventist Christian School, Palmerston North Intermediate Normal School, Palmerston North Girls’ High School (p. 58)	4	$233,000	$1,052,900
21	Central Normal School, Queen Elizabeth College, Palmerston North Boys’ High School (p. 41)	3	$124,500	$1,177,400
22	Aokautere School (p. 10)	1	$3,200	$1,180,600
23	Turitea School (p. 136)	1	$0	$1,180,600

Table 3: Revised priority list for implementation. Schools shown in green will be implemented in 2023/24 financial year. Schools shown in orange will be implemented in 2024/2025 financial year

4.12 The schools highlighted in green can be implemented within the 2023/24 financial year within the available budget (including the contribution from Waka Kotahi). The schools highlighted in orange will be scheduled for implementation in the 2024/25 financial year, subject to the approval of budgets through the Long Term Plan.

4.13 While the Committee may make changes to the recommended speed limits for some schools and choose a different option to that which we have recommended, there will be flow-on effects for such changes. The implementation schedule may need to be revised so as to maximise the utilisation of the budget in this financial year. Any additional work may delay the process for certification by Waka Kotahi and consequently reduce the available time for implementing the speed limit changes.

4.14 If the new speed limits cannot be implemented before 30 June 2024, then the funding which has been pledged by Waka Kotahi may be forfeit. Furthermore, if the number of schools covered by a lower speed limit does not meet the 40% target by 30 June 2024, then the Council will be in breach of the Speed Limits Rule.

5. Implementation

5.1 The draft Interim Speed Management Plan shown in Attachment 2 includes the proposed year for implementation for each of the identified school areas. Implementation is divided into two stages:

· 2023/2024 financial year – this is funded from programme 2110 which includes 51% FAR funding from Waka Kotahi for a total budget of $833K. This funding, if not utilised in the current financial year, will be forfeit.

· 2024/25 financial year – the funding for the second stage of implementation will be included in a programme in the draft LTP 2024-2034.

5.2 Implementation will begin following adoption of the draft Interim Speed Management Plan, and pending certification of the ISMP by Waka Kotahi. The estimated timeframe for certification by Waka Kotahi is 6-8 weeks.

6. Conclusion

6.1 We recommend that the Council adopt the draft Interim Speed Management Plan as shown in Attachment 2. This incorporates the specific recommendations for each school area, as shown in Attachment 1.

6.2 If the Committee wishes to amend the specific changes to speed limits for any school area, then we may need to do further work to revise the draft Interim Speed Management Plan before it can be presented to the Committee for adoption. This will delay the final adoption by Council and certification by Waka Kotahi, which will reduce the time available for implementation. It may mean that the available budget is not fully utilised before the expiry of the Waka Kotahi funding at the end of the financial year.

7. Next Steps

7.1 If the Council adopts the draft ISMP, we will submit the ISMP to Waka Kotahi for certification.

7.2 We will write to submitters and identified key stakeholders to notify them of the decisions made by Council, and the next steps for implementing those decisions. We will also publish the adopted ISMP to our website and include information on the website about the decisions that Council has made and the next steps.

8. 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 reduction of speed limits around schools contributes 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 speeds around schools therefore contributes to improved safety outcomes for our community.

Attachments

1.	Analysis of Submissions and Recommendations for Change to the draft ISMP (attached separately)
2.	Certification Document - Palmerston North Interim Speed Management Plan 2023 (attached separately)

[1] Excluding gravel beaches and inaccessible river margin

[2] Note an error in the Summary of Submissions Report had two separate lines for the same issue – the total were 7 submissions making this point, corrected for the responses.

[3] Assuming the Scouts lease area reduced or amended.

[4] Includes a pram crossing, removeable bollards at the entrance, signage, contingency and project management.

[5] For the river entrance area, 13m wide road reserves in rest of Plan Change area.

[7] Assumes a rate of $600 to $800 per m² in residential area, 1,425 m2 = $870,000 to $1,160,000. Includes purchasing 125m² for an accessway connection to the existing strip and legal fees.

[8] $25,000 to $82,000 depending on level of development and whether a post and rail fence with mowing strip is required.

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

COMMITTEE WORK SCHEDULE – NOVEMBER 2023
Item No.	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction/ Clause number
1.	~~November 2023~~	~~Draft Interim Speed Management Plan - deliberations report~~	~~Chief Planning Officer~~		~~Council 5 April 2023~~ ~~Clause 46~~
2.	~~November 2023~~	~~Part Waterloo Park - Proposal to exchange land - deliberations report~~	~~Chief Infrastructure Officer~~		~~Terms of Reference~~
3.	~~November 2023~~	~~Quarterly Performance & Financial Report (quarter 1 ending 30 September 2023)~~	~~Chief Financial Officer~~		~~Terms of Reference~~
4.	~~November 2023~~	~~Treasury Report (Quarter 1)~~	~~Chief Financial Officer~~		~~Treasury Policy~~
5.		Amendment of Palmerston North Animals and Bees Bylaw 2018	Chief Planning Officer	To 6 December Council meeting to allow more time for community engagement	22 March 2023 Clause 9
6.	~~November 2023~~ February 2024	Treasury Policy Review	Chief Financial Officer	Delayed due to consideration of changes to debt limit being understood alongside LTP work programme	Treasury Policy
7.	~~November 2023~~ February 2024	Rates review	Chief Financial Officer	Workshop 2 on 22 November	Terms of Reference
8.	~~November 2023~~ Mid 2024	Vegetation Framework to include a Tree Policy focused on Council administered streets and public spaces	Chief Planning Officer	Delayed due to competing priorities	Committee of Council 9 June 2021 Clause 31.8
9.	August 2024	Draft Waste Management and Minimisation Bylaw – Approval for Consultation	Chief Planning Officer		11 August 2021 Clause 21
10.	TBA	Report back at the conclusion of the Te Apiti Three Bridges Loop Track investigations and design work with a view to applying to Te Ahu a Turanga Recreation Fund for implementation works	Chief Infrastructure Officer		20 September 2023 Clause 58.3

1.	Q1 FY2024 September Performance and Financial Report ⇩
2.	Q1 FY2024 Appendix 1 - Performance Measures ⇩
3.	Q1 FY2024 Appendices 2-9 ⇩
4.	Q1 FY2024 Appendix 10 - Financial Dashboard ⇩