Agenda of Council - Wednesday, 4 September 2024

Council MEETING

4 September 2024

Order of Business

1. Karakia Timatanga

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 matters.

6. Confirmation of Minutes Page 7

That the minutes of the ordinary Council meeting of 7 August 2024 Part I Public be confirmed as a true and correct record.

Reports

7. Nature Calls - Programme Governance, Methodology and Communications Update Page 15

Memorandum, presented by Mike Monaghan, Manager - 3 Waters.

8. Council Submission on the Local Government (Water Services Preliminary Arrangements) Bill Page 35

Memorandum, presented by Chris Dyhrberg, General Manager Infrastructure and Julie Keane, Transition Manager.

9. International travel proposed for Mayor - November 2024 Page 45

Memorandum, presented by Gabrielle Loga, Manager International Relations and Hannah White, Manager Governance.

10. Infrastructure NZ Delegation to United Kingdom 2024 Page 57

Memorandum, presented by Waid Crockett, Chief Executive.

11. Elected Members' Meeting Attendance Statistics - 1 July 2023 to 30 June 2024 Page 103

Memorandum, presented by Hannah White, Manager Governance.

12. Council Work Schedule Page 107

Recommendations from Committee Meetings

13. Presentation of the Part I Public Strategy & Finance Committee Recommendations from its 14 August 2024 Meeting Page 111

14. Karakia Whakamutunga

15. Exclusion of Public

To be moved:

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

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

General subject of each matter to be considered		Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution
16.	Confirmation of the minutes of the ordinary Council meeting of 7 August 2024 Part II Confidential	For the reasons set out in the Council of 7 August 2024, held in public present
17.	Nature Calls - Property Opportunity - Due Diligence	NEGOTIATIONS: This information needs to be kept confidential to ensure that Council can negotiate effectively, especially in business dealings	s7(2)(i)
18.	Purchase of a Property on Waldegrave Street	THIRD PARTY COMMERCIAL Disclosing the information could harm a company's commercial position	s7(2)(b)(ii)
19.	Parking Contract Extension - Frog Parking	NEGOTIATIONS: This information needs to be kept confidential to ensure that Council can negotiate effectively, especially in business dealings	s7(2)(i)

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

Palmerston North City Council

Minutes of the Council Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 07 August 2024, commencing at 9.02am.

Members

Present:

The Mayor (Grant Smith) (in the Chair) and Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Apologies:

Councillor Leonie Hapeta.

Councillor Orphée Mickalad was not present when the meeting resumed at 11.15am. He entered the meeting at 11.20am during consideration of clause 133-24. He was present for the vote.

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

129-24

Apologies

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.That Council receive apologies from Councillor Hapeta.

Clause 129-24 above was carried 15 votes to 0, the voting being as follows:

For:

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

Declarations of Interest

Councillor Debi Marshall-Lobb declared a conflict of interest in Item 10 Re-appointment of Trustees/Directors on Council Controlled Organisations (clause 134-24) and took no further part in discussion or debate.

Councillor Vaughan Dennison declared a conflict of interest in Item 18 Contract Award - Tamakuku Terrace Stage 2 Construction (clause 141-24) and took no further part in discussion or debate.

130-24

Public Comment

The following speakers spoke on Item 8: Actions required in response to Māori wards legislation change. They all spoke in favour of retaining the city’s Te Puāo Māori ward.

· Richard Shaw

· Kevin Campbell

· Kim Penny, Chairperson of Te Pu Harakeke: Community Collective Manawatū

· Bishop Peter Cullinane

· Pania Marsh

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.That Council receive the public comments.

Clause 129-24 above was carried 15 votes to 0, the voting being as follows:

For:

131-24

Confirmation of Minutes – 26 June and 5 July 2024

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That the minutes of the ordinary Council meeting of 26 June 2024 Part I Public be confirmed as a true and correct record.

2. That the minutes of the extraordinary Council meeting of 5 July 2024 Part I Public be confirmed as a true and correct record.

Clause 131-24 above was carried 13 votes to 0, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Mark Arnott, Brent Barrett, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Abstained:

Councillor Rachel Bowen.

Councillor Debi Marshall-Lobb did not vote.

Reports

132-24	Actions required in response to Māori wards legislation change Report, presented by Hannah White, Manager - Governance. An amendment was put seeking additional information on not holding the binding referendum. The concern being that the legislation contradicts with elected members’ obligation to act for the best interests of the Palmerston North community, as a compulsory poll will have a negative impact on the wellbeing of the community.
	Moved Grant Smith, seconded Debi Marshall-Lobb. RESOLVED 1. That Council resolve to retain Te Pūao Māori Ward and that the Chief Executive provide further information to Council on potential implications of Council not proceeding with a binding referendum.
	Clause 132-24 above was carried 15 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
	Moved Karen Naylor, seconded Rachel Bowen. An amendment: That Council resolve to retain Te Pūao Māori Ward and that the Chief Executive provide further information to Council on potential implications of Council not proceeding with a binding referendum. Was carried 13 votes to 2, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Karen Naylor and Kaydee Zabelin. Against: Councillors Orphée Mickalad and William Wood.

The meeting adjourned at 10.51am.

The meeting resumed at 11.15 am.

Councillor Orphée Mickalad was not present when the meeting resumed.

133-24

Whakarongo Lagoon Landscaping - Budget Provision

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

The officer corrected the following error in the report:

In the Problem and Opportunities section and section 1.3 the year should read ‘2024/2025 and 2025/2026’.

Councillor Orphée Mickalad entered the meeting at 11:20am.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council agree to add a new programme titled ‘Whakarongo Lagoon Landscaping Development’ for the 2024/25 and 2025/26 financial years.

2. That Council agree a capital new budget for the Whakarongo Lagoon Landscaping Development programme of $258,605.75 (excluding GST) for the 2024/25 year, to be funded by capital revenue from the developer.

3. That Council note that a new capital budget of $258,605.75 for the 2025/26 year to be referred to the 2025/26 Annual Budget, to be funded by capital revenue from the developer.

4. That Council note it will receive $63,000 in income in 2025/2026 to cover 3 years of maintenance of the landscaping for the 2025/26 to 2027/2028 period. This will be included in the appropriate Annual Budgets.

5. That Council note that the 2027/28 Long Term Plan will account for operational and renewal costs beyond 2028.

Clause 133-24 above was carried 14 votes to 1, the voting being as follows:

For:

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

Against:

Councillor Mark Arnott.

134-24

Re-appointment of Trustees/Directors on Council Controlled Organisations

Memorandum, presented by Sarah Claridge, Governance Advisor.

Moved Grant Smith, seconded Vaughan Dennison.

RESOLVED

1. That Council commence an appointment process inviting people to apply for:

· two trustee positions on the Globe Theatre Trust Board.

· two trustee positions on the Regent Theatre Trust Board.

· two director positions on the Palmerston North Airport Limited (PNAL).

· two trustee positions on the Palmerston North Performing Arts Trust.

Clause 134-24 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Note:
Councillor Debi Marshall-Lobb declared a conflict of interest, withdrew from the discussion and sat in the gallery.

135-24

Progress on Collaboration Agreement with Central Football and Massey University - Artificial Football Turf

Memorandum, presented by Aaron Phillips - Activities Manager Parks.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council note progress to advance the development of an artificial football field at Massey University.

2. That Council note that the Collaboration Agreement for the artificial football field at Massey University will be signed under delegation by the Chief Executive.

Clause 135-24 above was carried 15 votes to 0, the voting being as follows:

For:

136-24

Civic and Cultural Precinct: 6 Month Update

Memorandum, presented by David Murphy, General Manager Strategic Planning.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council receive the report titled Civic and Cultural Precinct: 6 Month Update, presented 7 August 2024.

Clause 136-24 above was carried 15 votes to 0, the voting being as follows:

For:

137-24

Council Work Schedule

Officers will circulate a proposed timeline of the Annual Budget 2025/26 process to Elected Members soon.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council receive its Work Schedule dated 7 August 2024.

Clause 137-24 above was carried 15 votes to 0, the voting being as follows:

For:

Recommendations from Committee Meetings

138-24

Culture & Sport Committee Part I Public - 26 June 2024

Councillor Bowen presented the recommendations below.

Moved Rachel Bowen, seconded Billy Meehan.

RESOLVED

1. That Council adopt the recommendations from the Culture & Sport Committee of 26 June 2024:

Council endorsement of He rā ki tua - Horizons Region Spaces and Places Plan for Sport and Recreation 2023-2043 (clause 23-24)

Memorandum, presented by Ann-Marie Mori, Policy Analyst, Kelly Shanks, Chief Executive - Sport Manawatū and Carl Johnstone, General Manager Partnerships - Sport Manawatū.

The COMMITTEE RECOMMENDS

1. That Council endorse the ‘He rā ki tua - Horizons Region Spaces and Places Plan for Sport and Recreation 2023-2043’ (Attachment 1) to inform and guide Council decisions on play, active recreation and sports facilities.

2. That Council note the Chief Executive will enter into a Memorandum of Understanding for implementing He rā ki tua - Horizons Region Spaces and Places Plan for Sport and Recreation 2023-2043.

Remuneration for Council Controlled Organisation Board Members (clause 25-24)

Memorandum, presented by Sarah Claridge, Democracy & Governance Advisor.

The COMMITTEE RECOMMENDS

1. That the remuneration for Te Manawa be set out as one annual figure in the Appointment of Directors Policy (expenses and meeting fee combined), so as to read:

· Te Manawa Chair: $6,980

· Te Manawa Board Member: $2,980

2. That Council increase the remuneration of the Chairs of the Regent Theatre and Globe Theatre Trust Boards to $1,200 for the 2024/25 year.

3. That Council agree an annual remuneration for Board Members of the Regent Theatre and Globe Theatre of $1,020 for the 2024/25 year.

4. That Council note that the remuneration fees will be adjusted annually for inflation and reviewed by 2027, in accordance with the Appointment of Directors Policy, recently reviewed.

Clause 138-24 above was carried 14 votes to 0, with 1 abstention, the voting being as follows:

For:

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

Abstained:

Councillor Lorna Johnson.

Exclusion of Public

139-24

Recommendation to Exclude Public

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

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

General subject of each matter to be considered		Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution
1.	Confirmation of the minutes of the ordinary Council meeting of 26 June 2024 Part II Confidential	For the reasons set out in the Council of 26 June 2024, held in public present.
2.	Contract Award - Tamakuku Terrace Stage 2 Construction	NEGOTIATIONS: This information needs to be kept confidential to ensure that Council can negotiate effectively, especially in business dealings.	s7(2)(i)
3.	Contract Award - Electoral Services Contract	THIRD PARTY COMMERCIAL: Disclosing the information could harm a company's commercial position; and NEGOTIATIONS: This information needs to be kept confidential to ensure that Council can negotiate effectively, especially in business dealings.	s7(2)(b)(ii) and s7(2)(i)
4.	District Licensing Committee- Commissioner and List member appointments	PRIVACY: This information needs to be kept private to protect personal information that is confidential or sensitive. This includes people who are no longer alive.	s7(2)(a)

Clause 139-24 above was carried 15 votes to 0, the voting being as follows:

For:

The public part of the meeting finished at 11.57am

Confirmed 4 September 2024

Mayor

Memorandum

TO: Council

MEETING DATE: 4 September 2024

TITLE: Nature Calls - Programme Governance, Methodology and Communications Update

Presented By: Mike Monaghan, Manager - 3 Waters

APPROVED BY: Chris Dyhrberg, General Manager Infrastructure

RECOMMENDATIONS TO Council

1. That Council note the proposed Best Practicable Option assessment methodology, as outlined in this memorandum.

2. That Council note the timeline of this methodology is subject to change due to announcements about national wastewater standards.

3. That Council note the proposed organisational and governance structure for the next stage of the Nature Calls project, as outlined in this memorandum.

4. That Council note the proposed communications approach for the next stage of the Nature Call project, as outlined in this memorandum.

1. ISSUE

1.1 At its meeting on 10 June 2024, Palmerston North City Council resolved that the Nature Calls budget should not exceed $480 million (excluding inflation) across the 2024-34 Long-Term Plan.

1.2 Council instructed the Chief Executive to pause the current consent application and revisit the Best Practicable Option (BPO) to assess existing and emerging options.

1.3 This memorandum endeavours to provide the Council with an update on the Nature Calls Programme, in particular the draft assessment methodology for revisiting the BPO, governance structure for the delivery of this, and communications approach for this next stage of the project.

2. BACKGROUND

2.1 The selection of the BPO is required to meet the statutory requirements under the Resource Management Act 1991. The previous BPO selection process was extensive, developed over four years, and encompassed the creation of a long-list, short-list, and a final option, which was endorsed by Council on 15 September 2021.

2.2 The draft Long-Term Plan (LTP) confirmed that the project would cost $647 million and would require external funding from an infrastructure funding and financing (IFF) arrangement. During the LTP consultation and deliberations, concerns were raised regarding the project's affordability. Consequently, on 10 June 2024, Council resolved that the Nature Calls budget should not exceed $480 million (excluding inflation) across the 2024-34 Long-Term Plan.

2.3 Council instructed the Chief Executive to pause the current consent application and revisit the BPO option to assess existing and emerging options.

3. supplEmentary information (UPDATE FOLLOWING DRAFTING OF THIS MEMO)

3.1 An important announcement was released by the Minister for Local Government, the Hon Simeon Brown in recent weeks. In a letter to Chief Executives and Mayors the Minister announced that the Government was proposing a single national standard that regional councils will implement through resource consents for wastewater discharges.

3.2 Officers consider that the announcement has the potential to impact the Nature Calls project and the review of the BPO in a substantial manner. The statement was vague and did not provide any information regarding what the single national standard for wastewater might include, nor did it provide detail on the timeline for introduction of the standards.

3.3 To gain further insight into what this change might mean for Nature Calls, officers arranged a meeting in Wellington with officials from Taumata Arowai (TA), the National Regulator for Water Services.

3.4 TA confirmed that they had been tasked to design a set of national standards for wastewater treatment. However, rather than one standard to encompass all wastewater discharges, they are working on a suite of standards tailored to the receiving environment. We understand that a likely timeframe for the development of the standards is August 2025.

3.5 As noted, the implications of a suite of national standards for wastewater discharge will almost certainly have implications on options and analysis of potential BPO solutions.

3.6 This report suggests a methodology and timeline for elected members’ review; however, it is now expected that this development will lead to a superseded timeline to reflect the implications noted above.

3.7 It is proposed that the project continues with much of the work in the first six steps of the methodology on a no regrets basis, as much of the early technical work will be valuable to enable the process to proceed.

3.8 The final selection of options to take forward into a BPO process will however be impacted by the August 2025 timeframe for national standards release. The final technical assessment of options will now likely take place in September/October 2025 meaning a decision on a BPO will likely fall to the newly elected Council.

3.9 A report will be presented to the new Council as soon as is practically possible.

4. BPO ASSESSMENT METHODOLOGY (REVISITED OPTION)

4.1 Following the 10 June 2024 decision, the Project Team have been considering how the BPO selection could be reviewed. The first stage of this has been to develop a methodology for revisiting the BPO. The Project Team workshopped this methodology in July 2024.

4.2 The methodology will focus on revisiting the BPO options with the intention to move through the process in a timely and efficient manner to ensure work already completed is not redone, but key decisions are still re-examined.

4.3 The proposed process will maintain the original agreed BPO Project objectives:

· Protects public health and minimises public health risks;

· Minimises adverse environmental effects on air, land and water;

· Is sustainable, enduring, and resilient;

· Contributes to improving the health and mauri of the Manawatū River;

· Takes an integrated approach to the management of the Manawatū River Catchment including understanding cumulative effects;

· Enhances peoples use and enjoyment of the Manawatū River

· Is affordable and cost effective;

· Minimises whole of life carbon emissions and optimises resource recovery;

· Is innovative while being evidence based;

· Facilitates long term growth and economic development; and

· Is developed with the active engagement of the community and key stakeholders.

4.4 The process will be conducted in seven steps before a final recommendation is presented to the Council. This approach aligns with the previous methodology, but is structured to re-evaluate existing assessments, avoid unnecessary rework, and accelerate what was previously a four-year process. The process steps are summarised below and detailed further in the process diagram attached to this paper as Attachment 2.

Step 1: Long List Review
- Revisit the long list for existing and new options.

Step 2: Short List
- Narrow down the long list to a more manageable set of options.
Step 3: Process Optimisation
- Optimise to ensure we are not repeating work that has already been conducted.

Step 4: Technical Review of Options
- Conduct a technical review of the shortlisted options.

Step 5: Multi-Criteria Assessment Tool
- Apply multi-criteria assessment tools to evaluate the options. This would include any public feedback.

Step 6: BPO Assessment
- Conduct a final assessment to determine the Best Practicable Option recommendations for Council decision.

Step 7: Council Decision
- Decide on the BPO option that will be delivered.

4.5 Key to this methodology is the integration of Iwi, Elected Members and stakeholders in this process, which is outlined below in the communications approach and will have progress milestones for updates and engagement planned into the methodology.

4.6 The option that is currently the subject of a consent application to Horizons Regional Council (highest level of treatment, 75% of the average dry weather flow (ADWF) discharged to land) is retained throughout this phase of assessment, for comparative purposes.

4.7 The final decision by Council for the revised BPO selection is projected to be presented to council for decision in mid to late 2025.

4.8 If the suggested seven step process is not endorsed, and an alternative methodology is required, the Nature Calls programme will be affected. The BPO timeline will be delayed and additional costs will be expended to develop the revised methodology.

5. project governance structure

5.1 The Nature Calls Programme is entering a new stage of work, which includes not only consenting and selection of high-level options, which affect our communities, but also requires setup of funding and commercial based considerations.

5.2 The Programme has proposed an organisational governance structure to reflect this new stage of work. The proposed structure ensures a governance team that reports directly to Council, and is informed by the following areas to offer a combined perspective in their council recommendations:

· Cultural & Iwi views

· Community views

· Project Delivery

· Project Assurance

5.3 Further engagement with Iwi is required to establish a more comprehensive plan on how mana whenua wish to be integrated into the structure.

5.4 This structure is a traditional approach to programme organisation and governance that utilises delegated levels of authority to promote efficient delivery within agreed limitations at multiple levels. It allows for tactical management, required to focus on the day-to-day management of the project, as well as strategic management to ensure high level goals and stakeholder concerns are met. Council will confirm all key decisions and set the boundaries the programme can operate within.

5.5 Although the organisational structure does not connect all the groups directly, this does not exclude these groups from collaboration on planned or as required basis. A more detailed approach to inter-group collaboration will be developed by the project delivery team.

5.6 The draft proposed organisation structure is attached to this memorandum as Attachment 1.

5.7 If an alternative governance structure is required to that proposed in this memorandum, the Nature Calls programme will continue to operate with the current arrangements until any newly proposed structure is endorsed by the Council. During this time, some inefficiencies that the proposed structure addresses may increase the risk of slippage to the programme timeframe for this stage of work.

6. Communications approach

6.1 Whilst our consent application was being processed, public communication needed to be led by Horizons Regional Council. However, we will now resume a thorough communications strategy for this project throughout this stage of work.

6.2 Our Nature Calls webpage remains the repository for all communication for our community, and stores all the historic information, consultation material and scientific information from the past 7 years. It continues to be the platform for providing updates.

6.3 Our Project Stakeholder Steering Group will also continue throughout this process. The Stakeholder Steering Group will have a direct input to the governance team to ensure a community viewpoint is integrated into key decision recommendations to Council. The group includes:

· Rangitāne o Manawatū

· Te Roopu Taiao Ngāti Whakatere

· Te Tūmatakahuki

· Manawatū Business Chamber

· Federated Farmers

· Environment Network Manawatū

· Fish and Game

· Fonterra

· Te Whatu Ora

· Mayor (Chair)

· Elected Members (3)

6.4 If Council decides to look at significantly different treatment/discharge options, then appropriate levels of public consultation will be undertaken.

6.5 Public feedback will not occur until late 2025/26 once we know more about the treatment requirements and have a shortlist of options. Further detail on this will be provided in subsequent reports to Council.

7. Conclusion

7.1 Following the resolution of Council on 10 June 2024 to redevelop the BPO, the Nature Calls programme team has developed a seven-step methodology to agree on a new BPO.

7.2 The proposed methodology follows the same process as previously ran, but acknowledges the prior work completed, and reuses this where suitable, after appropriate reassessment.

7.3 The proposed methodology is estimated to be completed in Quarter 3/4 of 2025.

7.5 As the current focus of the project has changed, so has the needs of the programme organisation structure. The Nature Calls programme team have put forward a proposed structure in this paper, which returns to a more traditional programme delivery structure, but with channels for high levels of engagement and input from iwi and our community, as well as continued governance oversight by Council.

7.6 The proposed approach to programme communications was also renewed to align with the proposed structure and BPO methodology. This ensures an appropriate level of engagement where the options differ from those previous discussed and focuses on regular updates during this next stage of work.

8. next steps

8.1 Officers will finalise the plans and continue working towards project timelines.

8.2 Work programmes already underway will continue and technical work packages will continue until completion

8.3 An updated methodology and any further implications from the development of national standards will be reported to the Sustainability Committee via the next Quarterly report.

9. COMPLIANCE AND ADMINISTRATION

Does Council have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 4: He tāone toitū, he tāone manawaroa Goal 4: A sustainable and resilient city
The recommendations contribute to the achievement of objective in: 13. Mahere wai 13. Water Plan The objective is: to ensure safe and compliant disposal of the city’s wastewater.
Contribution to strategic direction and to social, economic, environmental and cultural wellbeing	To secure a wastewater consent for the discharge of treated wastewater. Ensuring social, economic, environmental and cultural impacts are clearly articulated and satisfied.

Attachments

1.	BPO Governance Structure ⇩
2.	BPO Methodology Flow Chart ⇩

Memorandum

TO: Council

MEETING DATE: 4 September 2024

TITLE: Council Submission on the Local Government (Water Services Preliminary Arrangements) Bill

Presented By: Chris Dyhrberg, General Manager Infrastructure and Julie Keane, Transition Manager

APPROVED BY: Chris Dyhrberg, General Manager Infrastructure

RECOMMENDATION TO Council

1. That Council note the submission on Local Government (Water Services Preliminary Arrangements) Bill (Attachment 1).

1. ISSUE

1.1 The purpose of this memorandum is to report to Council, for information, on Council’s submission on the Local Government (Water Services Preliminary Arrangements) Bill (WSPA).

1.2 On 4 June, Parliament’s Finance and Expenditure Committee called for submissions on the WSPA Bill.

1.3 Because the closing date for submissions was set by the Committee for 13 June 2024, Council officers were unable to report the submission to Council for prior approval.

1.4 The draft submission was circulated to Elected Members on 11 June 2024 with a requested response by 11.59pm on 12 June. There being no responses, the draft document was finalised and the Mayor approved the submission under delegation (2.9).

2. BACKGROUND

2.1 On 4 June 2024, the WSPA Bill was introduced to the House of Representatives. This Bill aims to establish preliminary arrangements for local government water services delivery. It is the second of three bills related to water services that the Government intends to pass.

2.2 At the time of writing this report, the WSPA Bill is at the Committee of the House stage (the last step before the final reading).

2.3 The WSPA Bill largely falls into three categories:

· First, the Bill requires Territorial Authorities (TA) to submit a Water Services Delivery Plan (WSDP). The plan is required to set out councils’ current water services arrangements and strategy for delivering financial sustainable water services and meeting regulatory standards. The information on the current state of water services will lay the foundation for information disclosure as part of the future comprehensive economic regulation regime.

· Second, the Bill would create alternative consultation and decision-making requirements that a TA can choose to use when establishing, joining or amending a Water Services Council Controlled Organisation (WSCCO).

· Third, the Bill would also enable Auckland Council to implement its preferred model for water services delivery.

2.4 Council spoke to the submission at Parliament’s Finance and Expenditure Committee hearing on 24 June 2024 date. Key points highlighted at the hearing were:

· The 12-month timeframe to develop a WSDP;

· The time period that the WSDP covered; and

· Lack of visibility of key pieces of legislation to assist with the planning process of any future WSCCO option.

3. NEXT STEPS

3.1 Monitor outcomes of the final reading of the Bill, likely to be known mid – late August 2024.

4. Compliance and administration

Does Council have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual		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?		Yes
The recommendations contribute to Whāinga 4: He tāone toitū, he tāone manawaroa Goal 4: A sustainable and resilient city
The recommendations contribute to the achievement of objectives in 14. Mahere mana urungi, kirirarautanga hihiri 14. Governance and Active Citizenship Plan The objective is: Advocate to Government and other decision-makers on issues and opportunities.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The purpose of Local Government (Water Services Preliminary Arrangements) Bill (WSPA) is to establish preliminary arrangements for the future delivery of water services.

Attachments

Final Submission Local Government (Water Services Preliminary Arrangements) Bill ⇩

Memorandum

TO: Council

MEETING DATE: 4 September 2024

TITLE: International travel proposed for Mayor - November 2024

Presented By: Gabrielle Loga, Manager International Relations and Hannah White, Manager Governance

APPROVED BY: David Murphy, General Manager Strategic Planning

Cameron McKay, General Manager Corporate Services

RECOMMENDATIONS TO Council

1. That Council approve the Mayor’s travel to China from 16 November until 26 November 2024

2. That Council approve up to $1,500 of incidental costs associated with the Mayor’s travel to China from 16 November until 26 November 2024.

1. ISSUE

1.1 An opportunity exists for the Mayor to travel to China from 16 November until 26 November 2024 to attend International Friendship Cities Conferences. The cost of the international travel and accommodation will be met by Global Cities New Zealand and the Conference organisers.

1.2 Council approval is required for international travel of the Mayor and for related incidental expenses of up to $1500.

1.3 The Mayor is also on planned leave from 21 October 2024 to 4 November 2024.

2. BACKGROUND

2.1 Palmerston North has been a long-standing member of Global Cities New Zealand (previously known as Sister Cities New Zealand). The Mayor is the current National President of Global Cities New Zealand.

2.2 It is proposed that the Mayor will be travelling in two capacities, the first will be representing New Zealand, as the President of Global Cities New Zealand, at the China International Friendship Cities Conference in Kunming. The second will be taking the opportunity, while in China, to represent the city as Mayor of Palmerston North. This will include the signing of a letter of intent to explore collaborative opportunities with Fuzhou at the Fuzhou International Friendship Cities Festival.

2.3 There might also be the potential to support Massey University’s partnership with Hebei University of Technology in Tianjin, which is yet to be confirmed.

2.4 The advice received from Global Cities New Zealand and our partners in China is that there will be no costs to Council as they will be covering international flights, domestic flights, accommodation and meals. It is however acknowledged that there is a potential for minor incidental costs associated with the trip which are estimated to be up to $1500.

2.5 If approved, the Mayor would be absent for the Economic Growth Committee meeting of 20 November and the Citizenship Ceremony scheduled for 21 November.

2.6 The Mayor will attend the Zone 3 meeting on 14 and 15 November, before departing.

2.7 In addition, the Mayor will be taking personal leave from 21 October to 4 November. This leave of absence has been approved by the Deputy Mayor under delegation 2.5.2 of the Delegations Manual.

3. NEXT STEPS

3.1 If Council approves the Mayor to travel to China, arrangements will be confirmed with partners.

3.2 Following his return, the Mayor will report to Council on the outcomes of the visit.

4. Compliance and administration

Does 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 objectives?		No
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objective/objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan The objective is: Support international education and promote Palmerston North’s interests to global partners - Promote Palmerston North’s interests to global city partners - Facilitate international economic and education partnerships with city institutions - Participate in international forums and events
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The visit would demonstrate Palmerston North’s leadership of international collaboration and friendship, and explores opportunities with partner cities to enhance economic, educational, cultural and community cooperation.

Attachments

1.	Invitation to Mayor G Smith - China International Friendship Cities Conference 2024 ⇩
2.	Letter of Intent - Fuzhou ⇩
3.	Fuzhou City Profile ⇩

Memorandum

TO: Council

MEETING DATE: 4 September 2024

TITLE: Infrastructure NZ Delegation to United Kingdom 2024

Presented By: Waid Crockett, Chief Executive

APPROVED BY: Waid Crockett, Chief Executive Officer

RECOMMENDATION TO Council:

1. That Council receive the report titled ‘Infrastructure NZ Delegation to United Kingdom 2024’ presented to Council on 4 September 2024.

1. ISSUE

1.1 This report presents the findings and highlights from the Infrastructure NZ (INZ) delegation (Place Based Solution: Learnings from the UK) to the United Kingdom (UK) in June 2024.

1.2 On 3 April 2024, Council approved the Chief Executive to be part of the INZ delegation to the UK.

1.3 The members of the delegation are outlined on page 4 of the delegation report in Attachment 1.

2. BACKGROUND

2.1 The delegation was welcomed by the High Commissioner for New Zealand to the UK Phil Goff.

2.2 The delegation covered 3 cities in 5 days – London, Manchester & Cardiff (Wales), which included site tours of transport infrastructure in London, sporting facilities in Manchester (Manchester City Football) and wastewater and recycling facilities in Cardiff.

2.3 Each delegate was assigned to prepare a summary of one of the sessions. This was then collated into the preparation of the report that is provided in Attachment 1.

2.4 The focus of the delegation was to gain insights on devolution deals (City/Regional deals) and their many forms and insights on water regulation, funding and service provisions across England and Wales. Further details on the purpose of the delegation is outlined on page 3 of the delegation report provided in Attachment 1.

2.5 One of the key findings from the delegation highlighted the need for high level commitment to a long-term vision and planning, with clear and strong political support.

2.6 The delegation also looked at 3 Waters infrastructure and spoke to regulators, providers and operators across the UK.

2.7 The report provided in Attachment 1 lists key findings, insights and (potential) recommendations for the New Zealand context.

3. key insights

3.1 This section covers potential considerations regarding the key insights and findings from the delegation and how they may/could apply to Palmerston North City Council.

WATERS services

3.2 The report (page 15) highlights that the UK and New Zealand (including our own council) share similar challenges in water services, such as looming water shortages (for growth), wastewater overflows, much needed investment and currently heightened public interest.

3.3 The UK water companies operate in a highly regulated environment of government policies and social, environmental and economic (Ofwat) regulators. These are sometimes not necessarily aligned.

3.4 The introduction of an economic water regulator (in New Zealand) will be essential to provide comfort to the public (customers) that any new entities are performing well and that they are protected, for instance from potentially significant price increases.

3.5 Getting the balance right between the differing regulators, government policy and our own goals and outcomes will be essential to New Zealand and Palmerston North achieving successful outcomes.

3.6 Water companies in the UK are addressing some significant (historic) issues such as wastewater overflows. There are no separate stormwater systems as such and generally stormwater is conveyed through the wastewater network.

3.7 Although our Council does not have the same stormwater infrastructure problem that are experienced in the UK regarding combined networks, it does heighten the need to ensure that managing stormwater issues remains top of mind. Councils are to retain the responsibility for stormwater under the Local Water Done Well (LWDW) programme, no matter where it is managed.

3.8 Dŵr Cymru Welsh Water is a private ‘not-for-profit’ business and has no shareholders and no dividends are paid. It is a model that could potentially work in the New Zealand environment, however there is no desire here to privatise publicly owned assets, and there are protections in the legislation to avoid this.

3.9 It appears that the closest model to this under the proposed LWDW programme are the trust models, however these models are not afforded the ability to borrow to the same levels as Council Controlled Organisations (CCO) would be.

3.10 What is acknowledged in all of the models we viewed was that they were all operations of scale, ranging from 700,000 customers through to 16 million.

Regional / city deals

3.11 Regional and City Deals in the UK are administered by the Department of Levelling Up, Housing and Communities, which has bipartisan support over many years.

3.12 The deals have localism at their heart and continue to evolve. They have buy-in and are driven by local government, reflecting local priorities. The deals do often come with large funds (perpetual in nature) that the authorities can borrow against and then invest back in their communities.

3.13 The Manchester City deal is considered to be the ‘gold’ standard for City deals in the UK. There are however a range of ‘deals’ across the UK, from Manchester through to other smaller ‘Town deals’ that tend to involve projects such as revitalisation works.

3.14 City and Regional deals in the UK have a focus of economic development and growth. This is also a feature of the recently released Strategic Framework for Regional Deals by the New Zealand Government.

3.15 The priority objectives in the NZ Strategic Framework include:

· Building economic growth

· Delivering connected and resilient infrastructure

· Improving the supply of affordable and quality housing

3.16 Although the NZ Strategic Framework has what could be considered a narrow scope, it is consistent with what the City and Regional deals are delivering in the UK.

3.17 The key feature of all City and Regional deals in the UK is at a scale that is far greater than what New Zealand will ever achieve. This does not mean that it is not possible to be delivered in New Zealand or the Manawatū / Whanganui region, it just means that we will need to be focused on what can be achieved.

3.18 Other features of successful deals are the ones that involve key stakeholders, such as Iwi and the business sector and that there is a champion at the highest political level in both Local and Central Government.

infrastructure

3.19 The delegation included presentations and site visits across a number of other infrastructure areas, including public transport, road, energy, wastewater and food waste treatment facilities.

3.20 These presentations provided the opportunity to think about projects we are working on and how these are delivered, how public transport services are connected (although some of this is not within our scope) and how projects could be funded through private investment.

3.21 Forward planning and adaptive management strategies were also a key feature of some of the infrastructure presentations. These are things that we are working on in areas such as the Nature Calls project.

4. NEXT STEPS

4.1 As we move through the Local Waters Done Well (LWDW) programme, keeping an eye on the outcomes that we are trying to achieve will be important.

4.2 Pressing for, and providing submissions back on, the setting up of an economic regulator will be needed for the sector.

4.3 For LWDW, scale is important and having a long-term strategic view (30+ years) will be essential for intergenerational success. Providing options will be important for Council in any future decision making.

4.4 The Government has released the Strategic Framework for Regional deals recently. The arrangements and information gleaned from the delegation will be useful in preparing and thinking about what might go into any deal for Palmerston North.

4.5 We will start working towards developing what our deal might include and who else would be involved in achieving this outcome.

4.6 Some of the learnings from the infrastructure presentations will be shared internally and included where necessary.

5. Compliance and administration

Does 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: Whāinga 1: He tāone auaha, he tāone tiputipu Goal 1: An innovative and growing city
The recommendations contribute to the achievement of objectives in: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan · Provide opportunities and infrastructure to accommodate business growth.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The delegation and report contribute to the outcome of an economy that embraces innovation and new ideas and uses resources sustainably.

Attachments

INZ-UK Delegation Report ⇩

Committee Work Schedule

TO: Council

MEETING DATE: 4 September 2024

TITLE: Council Work Schedule

RECOMMENDATION TO Council

1. That Council receive its Work Schedule dated 4 September 2024.

COUNCIL WORK SCHEDULE 7 August 2024

#	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction & Clause
1	2 Oct 2024	Appointment of Trustees on Council Controlled Organisations	GM Corporate Services		Terms of Reference
2	2 Oct 2024	Agree Council Meeting Calendar 2025	GM Corporate Services		Terms of Reference
3	30 Oct 2024	Adopt Annual Report 2023-24	GM Corporate Services		Terms of Reference
2	early 2025	Delivery Model options for Property - CCO/ Trust to include Summerhays Street.	GM Corporate Services		1 May 2024 Clause 66.1
3	6 Nov 2024	Annual Review of Delegations Manual	GM Corporate Services		6 Sept 2023 Clause 147-23
4	~~2 Oct 2024~~ 6 Nov 2024	Food HQ Innovation Limited - Director's company progress report.	GM Infrastructure Services	Moved due to availability of officers and Chair Food HQ	6 Sept 2023 Clause 143-23
6	6 Nov 2024	Appointment of CEDA Directors	GM Corporate Services		6 March 2024 Clause 23 -24
7	6 Nov 2024	Performing Arts Trust Annual Report 2023-2024	GM Corporate Services		Terms of Reference
9	11 Dec 2024	Review of Fees and Charges 25/26	GM Corporate Services		Terms of Reference
10	11 Dec 2024	City Revaluation – impact on rates	GM Corporate Services		Terms of Reference
11	early 2025	Report back on Investment Options for PN Airport	GM Corporate Services		6 December 2023 Clause 197-23
12	Feb 2025	Civic and Cultural Precinct Master Plan Steering Group - 6-monthly update	GM Strategic Planning		Terms of Reference
13	Mid- March 2025	Draft Annual Budget 2025/26 for consultation	Chief Executive		Terms of Reference
14	March 2025	Exemption of Manawatū Whanganui Disaster Relief Fund from being a CCO	GM Corporate Services		Terms of Reference
15	March 2025	Remits from PNCC for consideration	GM Corporate Services
16	30 April / 1 May 2025	Hearings of the Annual Budget 2025/26	Chief Executive		Terms of Reference
17	May 2025	Exemption of Palmerston North Performing Arts Trust	GM Corporate Services		Terms of Reference
18	Mid- May 2025	Deliberations of the Annual Budget 25/26	Chief Executive		Terms of Reference
19	June 2025	Remits received from other Territorial Authorities	GM Corporate Services		Terms of Reference
20	June 2025	2024 Residents Survey - Action Plan	GM Strategic Planning		Terms of Reference
21	June 2025	Adopt Annual Budget 2025-26	Chief Executive		Terms of Reference
22	June 2025	Set the Rates for 2025-26	GM Corporate Services		Terms of Reference
23	June 2025	Raise Borrowing during 2025-26	GM Corporate Services		Terms of Reference
24	TBC	Summerhays Reports - Partnership Models Expressions of Interest	Chief Infrastructure Manager	Lying on the Table	1 May 2024 Clause 66-24 and 74 -24
25	TBC	Effectiveness of Civics Education Initiatives - Annual progress report -	TBC		29 May 2024 Clause 95.29 -24

Proactive Release of Confidential Decisions

Date of meeting	Report Title	Released	Withheld
18 December 2023	Legal Services Panel - Award of Tender to Preferred Suppliers	Resolution, division and redacted report	Attachment
14 February 2024	Purchase of 80 Waldegrave Street	Resolution, division and redacted report	N/A
3 April 2024	Trustee Appointment to Te Manawa Museums Trust Board	Resolution, division and report	Attachment
10 June 2024	Nature Calls- Lead Technical Consultant contract extension	Resolution, division and redacted report	N/A

Grant Smith (Mayor)
Debi Marshall-Lobb (Deputy Mayor)
Mark Arnott	Leonie Hapeta
Brent Barrett	Lorna Johnson
Rachel Bowen	Billy Meehan
Vaughan Dennison	Orphée Mickalad
Lew Findlay (QSM)	Karen Naylor
Roly Fitzgerald	William Wood
Patrick Handcock (ONZM)	Kaydee Zabelin