Agenda of Council - Wednesday, 5 March 2025

Council MEETING

5 March 2025

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 12 February 2025 Part I Public be confirmed as a true and correct record.

ReportS

7. Annual Budget (Plan) 2025/26 - Adoption of Consultation Document and Supporting Information Page 18

Memorandum, presented by Steve Paterson, Manager - Financial Strategy and Scott Mancer, Manager - Finance.

8. Te Motu o Poutoa Civic Marae and Cultural Centre- Governance Options Page 229

Report, presented by Kathy Dever-Tod - Manager Parks and Reserves and Cameron McKay - GM Corporate Services.

9. Review of the Delegations Manual 2025 Page 259

Memorandum, presented by Sarah Claridge, Governance Advisor.

10. Approval for the Mayor to travel to China for the 3rd New Zealand - China Mayoral Forum in May 2025 Page 283

Memorandum, presented by Gabrielle Loga, Manager International Relations.

11. Submission on NZTA Waka Kotahi Speed Limit Consultation Page 287

Memorandum, presented by James Miguel, Senior Transport Planner.

12. Submission on Resource Management (Consenting and Other System Changes) Amendment Bill Page 295

Memorandum, presented by Jono Ferguson-Pye, Manager City Planning and Greg Vossler, Consultant Planner.

13. Council Work Schedule Page 307

Recommendations from Committee Meetings

14. Presentation of the Part I Public Sustainability Committee Recommendations from its 19 February 2025 Meeting Page 311

15. Presentation of the Part I Public Strategy & Finance Committee Recommendations from its 26 February 2025 Meeting Page 313

16. Karakia Whakamutunga

17. 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

18.

Renewal of Streetlight and street sweeping component of road maintenance contract

NEGOTIATIONS:

This information needs to be kept confidential to ensure that Council can negotiate effectively, especially in business dealings

s7(2)(i)

19.

Reappointment of Trustees/Directors on Council Controlled Organisations

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)

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 12 February 2025, commencing at 9.04am

Members

Present:

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

Apologies:

Councillors Lew Findlay and Lorna Johnson (late arrival).

Councillor Lorna Johnson entered the meeting at 9.21am during consideration of clause 16-25. She was not present for clauses 15-25 to 17-25 inclusive.

Councillor Lew Findlay entered the meeting online at 2.09pm before consideration of clause 19-25. However due to technical difficulties he did not vote for items 19-25 to 24-25. He was not present for clauses 13-25 to 18-25 and 25-25 to 27-25 inclusive.

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

15-25

Apologies

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council receive the apologies.

Clause 15-25 above was carried 14 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, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

16-25

Notification of Additional Items

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

That Council consider the report Local Water Done Well – Consultation Document, subject to Section 46A(7) of the Local Government Official Information and Meetings Act 1987.

Reason for lateness: Council sought changes to the draft consultation document one working day prior to the publishing of this agenda

Reason for Urgency: To enable some separation between the Local Water Done Well and Annual Budget consultations.

Clause 16-25 above was carried 14 votes to 0, the voting being as follows:

For:

Presentation - Massey University Foundation

The presentation was withdrawn. It will occur at the April Council meeting.

17-25

Confirmation of Minutes

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

That the minutes of the ordinary Council meeting of 5 February 2025 Part I Public and Part II Confidential be confirmed as a true and correct record.

Clause 17-25 above was carried 13 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, Roly Fitzgerald, Patrick Handcock, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Abstained:

Councillor Leonie Hapeta.

18-25	Local Water Done Well- Approval of Consultation Document Memorandum, presented by Julie Keane, Transition Manager, Olivia Wix, Communications Manager, Scott Mancer Manager Finance. Councillor Lorna Johnson entered the meeting at 9:21am Councillor Bowen moved an additional motion requesting a letter outlining the Council’s concerns with Local Water Done Well be sent to the Minister of Local Government.
	Moved Grant Smith, seconded Debi Marshall-Lobb. RESOLVED 1. That Council adopt for consultation the Local Water Done Well Consultation Document (Attachment 1).
	Clause 18-25 above was carried 13 votes to 2, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, William Wood and Kaydee Zabelin. Against: Councillors Brent Barrett and Karen Naylor.
	Moved Rachel Bowen, seconded Brent Barrett. RESOLVED That the Mayor and Chief Executive write to the Minister of Local Government to express the concerns of Palmerston North City Council with Local Water Done Well.
	Clause 18-25 above was carried 11 votes to 4, the voting being as follows: For: Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor and Kaydee Zabelin. Against: The Mayor (Grant Smith) and Councillors Mark Arnott, Leonie Hapeta and William Wood.

19-25	Annual Budget (Plan) 2025/26 - Update including draft Consultation Document and Supporting Information Memorandum, presented by Cameron McKay, General Manager – Corporate Services and Scott Mancer, Manager - Finance. The meeting adjourned at 10.36am The meeting resumed at 10.58am Councillor Wood moved two motions: to reduce the professional services budget in the draft Annual Budget; and request a report on the risks and implications of reducing the budget. The professional services budget was decreased to reduce the rates increase to below 8%. Councillor Barrett moved two motions seeking additional material be added to the consultation document to clarify the proposed rates increase for ratepayers.
	Moved Grant Smith, seconded Debi Marshall-Lobb. RESOLVED 1. That the Chief Executive incorporate the following in the draft 2025/26 Annual Budget supporting information for adoption at the Council meeting of 5 March 2025: a. Budgetary assumptions that are unchanged from those agreed to at the Council meeting on 11 December 2024, except for i. the addition of operating expenditure budget of $400K to fund the proposed levy from the water services regulator.
	Clause 19.1-25 above was carried 14 votes to 1, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, William Wood and Kaydee Zabelin. Against: Councillor Karen Naylor.
	Moved William Wood, seconded Grant Smith. RESOLVED 1. That the Chief Executive incorporate the following in the draft 2025/26 Annual Budget supporting information for adoption at the Council meeting of 5 March 2025: a. Budgetary assumptions that are unchanged from those agreed to at the Council meeting on 11 December 2024, except for ii. reduce the professional services budget by $1M for the 2025/26 Financial Year.
	Clause 19.2-25 above was carried 11 votes to 4, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Leonie Hapeta, Billy Meehan, Karen Naylor, William Wood and Kaydee Zabelin. Against: Councillors Debi Marshall-Lobb, Patrick Handcock, Lorna Johnson and Orphée Mickalad.
	Moved William Wood, seconded Grant Smith. RESOLVED 3. That the risks & implications of the Professional Services budget reduction be presented to the Council meeting on 5 March as part of adopting the Draft Annual Budget for consultation.
	Clause19.3-25 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, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
	Moved Grant Smith, seconded Debi Marshall-Lobb. RESOLVED 1. That the Chief Executive incorporate the following in the draft 2025/26 Annual Budget supporting information for adoption at the Council meeting of 5 March 2025: b. Financial statements and other supporting information based on the drafts included as Attachment 2, noting that $100,000 has been set aside in each of the financial years 2025/26 and 2026/27 to support the Centrepoint Theatre rebuild, until further confirmation from Centrepoint as to which allocation of support (in-kind, consent costs, grant) would be most appropriate.
	Clause 19.4-25 above was carried 14 votes to 1, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, William Wood and Kaydee Zabelin. Against: Councillor Karen Naylor.
	Moved Brent Barrett, seconded Rachel Bowen. RESOLVED 2a. That the Consultation Document include information on proposed rates as a proportion of household income.
	Clause 19.5-25 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, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
	Moved Brent Barrett, seconded Rachel Bowen. RESOLVED 2b. That the table on Page 14 of the Consultation Document include percentage increase in rates for each of the various categories.
	Clause 19.6-25 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, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
	Moved Grant Smith, seconded Debi Marshall-Lobb. RESOLVED 2. That Council note the Consultation Document will be presented for adoption at the Council meeting of 5 March 2025, based on the draft in Attachment 3 (as amended above).
	Clause 19.7-25 above was carried 14 votes to 1, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, William Wood and Kaydee Zabelin. Against: Councillor Karen Naylor.

20-25	Fees and Charges Review Report, presented by Steve Paterson, Manager Financial Strategy. Councillor Johnson moved a motion to increase parking charges by 50 cents per hour, to maintain a policy of incrementally increasing parking fees annually.
	Moved Lorna Johnson, seconded Grant Smith. RESOLVED Parking That metered parking changes (Appendix 13) are increased by 50 cents per hour to take effect from 1 July 2025.
	Clause 20.1-25 above was carried 11 votes to 4, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Roly Fitzgerald, Patrick Handcock, Lorna Johnson, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin. Against: Councillors Mark Arnott, Vaughan Dennison, Leonie Hapeta and Billy Meehan.
	Moved Grant Smith, seconded Debi Marshall-Lobb. RESOLVED Trade Waste 2. That Council agree for consultation the proposal of updated fees and charges for Trade Waste services effective from 1 July 2025 as attached in Appendix 2 (amended with Option A from Table 1 in section 3.4 of this report) and authorise the Chief Executive to undertake the necessary consultative process under sections 82 and 150 of the Local Government Act 2002.
	Clause 20.2-25 above was carried 12 votes to 3, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, William Wood and Kaydee Zabelin. Against: Councillors Brent Barrett, Rachel Bowen and Karen Naylor.
	Moved Grant Smith, seconded Debi Marshall-Lobb. RESOLVED 1. That Council receive the report titled ‘Fees and Charges Review’, presented on 12 February 2025, and note the current status of fees and charges. Planning & Miscellaneous 3. That Council agree for consultation the Statement of Proposal (and the associated summary) of updated fees and charges for Planning Services and Miscellaneous Services effective from 1 July 2025 as attached in Appendix 3, and authorise the Chief Executive to undertake the necessary consultative process under sections 83 and 150 of the Local Government Act 2002. Building 4. That Council agree the fees and charges for Building Services, as proposed in Appendix 4 for public notification to take effect from 1 July 2025. Environmental Health 5. That Council agree the fees and charges for Environmental Health Services (in terms of regulation 7 of the Health (Registration of Premises) Regulations 1966) as proposed in Appendix 5 for public notification to take effect from 1 July 2025. Animal Management 6. That Council agree the fees and charges for the Impounding of Animals (in terms of section 14 of the Impounding Act 1955) and for Dog Registration and Dog Impounding (in terms of sections 37 and 68 of the Dog Control Act 1996) as proposed in Appendix 6 for public notification to take effect from 1 July 2025. Burial & Cremation 7. That Council agree the fees and charges for Burial and Cremation, as proposed in Appendix 7 for public notification to take effect from 1 July 2025. Service Connections 8. That Council agree the fees and charges for Service Connections, as proposed in Appendix 8 to take effect from 1 July 2025. Resource Recovery 9. That Council agree there be no changes to fees and charges for Resource Recovery, as proposed in Appendix 9. Parks and Reserves 10. That Council agree the fees and charges for Parks and Reserves as proposed in Appendix 10 to take effect from 1 July 2025. Backflow Prevention 11. That Council agree the fees and charges for Backflow Prevention testing and maintenance as proposed in Appendix 11 to take effect from 1 July 2025. Corridor Access Request 12. That Council agree the fees and charges for Corridor Access Requests as proposed in Appendix 12 to take effect from 1 July 2025.
	Clause 20.3-25 above was carried 13 votes to 2, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin. Against: Councillors Mark Arnott and Billy Meehan.

The meeting adjourned at 1.04pm

The meeting resumed at 2.09pm

Councillor Lew Findlay was present online when the meeting resumed at 2:09pm. However he had technical issues and his vote was not able to be recorded.

21-25	Rating System for 2025/26 Memorandum, presented by Steve Paterson, Manager - Financial Strategy.
	Moved Grant Smith, seconded William Wood. RESOLVED 1. That the Chief Executive incorporate the following rating system assumptions in the draft of the 2025/26 Annual Budget supporting information and consultation document to be presented for adoption at the Council meeting on 5 March 2025 (subject to any amendment): i. continuing the second stage of the implementation of the capital value based targeted rate. iii. differentials for the rural/semi-serviced (0.2ha to 5ha) differential category with a surcharge of -40% for the general rate and for the targeted capital value-based rate.
	Clause 21.1-25 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, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.
	Moved Grant Smith, seconded William Wood. RESOLVED 1. That the Chief Executive incorporate the following rating system assumptions in the draft of the 2025/26 Annual Budget supporting information and consultation document to be presented for adoption at the Council meeting on 5 March 2025 (subject to any amendment): ii. a uniform annual general charge of $300.
	Clause 21.2-25 above was carried 8 votes to 7, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Mark Arnott, Vaughan Dennison, Roly Fitzgerald, Leonie Hapeta, Orphée Mickalad, Karen Naylor and William Wood. Against: Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Patrick Handcock, Lorna Johnson, Billy Meehan and Kaydee Zabelin.
	Moved Grant Smith, seconded William Wood. RESOLVED 1. That the Chief Executive incorporate the following rating system assumptions in the draft of the 2025/26 Annual Budget supporting information and consultation document to be presented for adoption at the Council meeting on 5 March 2025 (subject to any amendment): iv. differentials for the non-residential differential category with a surcharge of 150% for the general rate and 100% for the targeted capital value-based rate.
	Clause 21.3-25 above was carried 14 votes to 1, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Brent Barrett, Rachel Bowen, Vaughan Dennison, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin. Against: Councillor Lorna Johnson.

22-25

Submission on the Local Government (Water Services) Bill

Memorandum, presented by Mike Monaghan, Group Manager- 3 Waters and Julie Keane, Transition Manager Three Waters.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council agree the submission on the Local Government (Water Services) Bill (Attachment 1).

Clause 22-25 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, Roly Fitzgerald, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

23-25

Submission on Treaty of Waitangi Principles Bill

Memorandum, presented by Todd Taiepa, Manager - Māori Advisory.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council receive the memorandum titled Submission on Treaty of Waitangi Principles Bill.

Clause 23-25 above was carried 11 votes to 4, the voting being as follows:

For:

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

Against:

Councillors Mark Arnott, Leonie Hapeta, Billy Meehan and William Wood.

24-25

Arena Masterplan Steering Group

Memorandum, presented by John Lynch, Manager Venues + Events.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council reconvene the Arena Masterplan Steering Group and agree the attached Terms of Reference.

Clause 24-25 above was carried 15 votes to 0, the voting being as follows:

For:

25-25

Order of Candidate Names on Voting Papers 2025

Report, presented by Hannah White, Manager Governance.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council agree the following order for arranging the names of candidates on voting documents for Palmerston North City Council, pursuant to Regulation 31 of the Local Electoral Regulations 2001:

Clause 25-25 above was carried 15 votes to 0, the voting being as follows:

For:

26-25

Appointment to the Heritage Reference Group

Memorandum, presented by Hannah White, Manager- Governance.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council appoint Councillor Rachel Bowen as Council’s representative on the Heritage Reference Group until October 2025.

Clause 26-25 above was carried 15 votes to 0, the voting being as follows:

For:

27-25

Council Work Schedule

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1. That Council receive its Work Schedule dated 12 February 2025

Clause 27-25 above was carried 15 votes to 0, the voting being as follows:

For:

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

The meeting finished at 3.45pm

Confirmed 5 March 2025

Mayor

Memorandum

TO: Council

MEETING DATE: 5 March 2025

TITLE: Annual Budget (Plan) 2025/26 - Adoption of Consultation Document and Supporting Information

Presented By: Steve Paterson, Manager - Financial Strategy and Scott Mancer, Manager - Finance

APPROVED BY: Cameron McKay, General Manager Corporate Services

RECOMMENDATIONS TO Council

1. That Council adopt the Supporting Information (Attachment 2) as the material relied upon to prepare the Consultation Document for the 2025/26 Annual Budget (Plan), noting the reduction in the Professional Services Budget (Attachment 1).

2. That Council adopt the Consultation Document (Attachment 3) for the 2025/26 Annual Budget (Plan).

1. ISSUE

1.1 At its meeting on 12 February the Council considered the draft 2025/26 Annual Budget as well as the draft Consultation Document and Supporting Information. The minutes of that meeting are being presented to the Council for adoption.

1.2 Since the Council meeting officers have updated the Supporting Information and Consultation Document to reflect Council’s decisions.

2. BACKGROUND

General

2.1 The Supporting Information and Consultation Document (CD) are attached in Attachments 2 and 3.

2.2 The total rate increase for 2025/26 is now 7.7%, after Council’s decisions on 12 February.

2.3 Tables 1-3 below provide the updated summary of the draft 2025/26 Budget compared to the Long-Term Plan

Table 1: Funding of Operating expenses	Long-term Plan		Draft Annual budget
	2024/25 $M	2025/26 $M	2025/26 Feb draft $M	2025/26 Mar draft $M
Personnel Depreciation Finance (interest) All Other Operating Expenses	59.3 49.4 14.5 77.9	62.5 50.5 17.0 79.1	63.0 49.7 14.9 81.5	63.0 49.7 14.9 80.6
Total operating expenses	201.1	209.1	209.1	208.2
Operating subsidies & grants Finance revenue Other revenue	(6.4) (0.4) (38.6)	(6.5) (0.4) (39.2)	(6.1) (0.5) (40.0)	(6.1) (0.5) (40.1)
Total operating revenue	(45.4)	(46.1)	(46.6)	(46.7)
Net operating expenses	155.7	163.0	162.5	161.5
Less: Depreciation Operating expenses funded from debt Plus: Renewals (3 year rolling average) Debt repayment	(49.4) (5.8) 28.6 7.8	(50.5) (3.9) 30.9 9.6	(49.7) (5.1) 31.2 9.6	(49.7) (5.1) 31.2 9.6
Total rates requirement	136.9	149.1	148.5	147.5

Table 2: Funding of Capital Expenditure	Long-term Plan		Draft Annual budget
	2024/25 $M	2025/26 $M	2025/26 Feb draft $M	2025/26 Mar draft $M
Renewals Capital for growth Capital new	33.0 15.0 47.4	35.6 12.7 77.2	35.3 12.3 68.1	35.3 12.3 68.0
Total capital expenditure	95.4	125.5	115.7	115.6
Funding from external sources	(18.1)	(30.0)	(23.3)	(23.3)
Funding from rates (for renewals)	(28.6)	(30.9)	(31.2)	(31.2)
Funding from additional debt	(48.7)	(64.6)	(61.2)	(61.1)

Table 3: Components of increased rates requirement	Impact on Total Rates for Year 2
Table 3: Components of increased rates requirement	As per LTP	As per draft AB
Interest Costs on Debt	1.8%	0.3%
Debt Repayment	1.4%	1.3%
Rolling Average Renewal increase	1.7%	1.9%
Labour Costs	2.3%	2.8%
Utilities and Insurance	0.2%	0.4%
All Other (Contractors, Professional Services, Materials etc.)	2.1%	1.7%
Revenue (excluding Rates and Grants & Subsidies)	(0.5%)	(0.9%)
Revenue – Operating Grants & Subsidies	(0.1%)	0.2%
Increase in total rates requirement	8.9%	7.7%

Parking Revenue

2.4 At the Council meeting on 12 February, Council resolved to increase the per hour parking meter charge from $2.00 to $2.50 – a 25% increase. The draft budget for metered revenue has been increased by $100,000 based on this decision.

2.5 In the current year, officers are forecasting an end of year position of $2.63M compared to a budget of $3.17M for metered revenue.

2.6 In February, the draft budget proposed a metered revenue assumption of $3.23M for 2025/26. This has been updated to $3.31M in March.

2.7 The updated budget provision relies on no other factors impacting Council’s ability to collect this revenue – predominately the usage assumption for parking spaces. There is a risk that with an increase of this size that the usage may reduce when compared to the current year.

Professional Services

2.8 At the Council meeting on 12 February, Council resolved to reduce the professional services budget by $1M for 2025/26. Officers have been able to achieve this by reducing the items identified in Attachment 1.

2.9 There are some implications as a result of these reductions. Most reductions will result in work programmes taking longer than planned, and in some cases, work will not be able to occur in 2025/26. These items would need to be considered for inclusion in the 2026/27 budget. Full details of the implications are available in Attachment 1.

Consultation Document

2.10 The Consultation Document has been updated to include the decisions of the 12 February meeting as follows:

· Including percentage increases in rates in the table on page 14

· Making reference to rates as a proportion of household income (page 14)

· Updating rates examples and references to reflect an increase in total rates of 7.7%

2.11 On the assumption the Council will approve consulting with the public regarding the governance and management of the proposed Te Motu o Poutoa Marae and Cultural Centre in conjunction with the Annual Budget consultation process (as outlined in a separate report to the meeting), a section has been added on page 7 drawing attention to this.

3. NEXT STEPS

Officers will publish the documents and initiate the public engagement process which is scheduled to run from 17 March with submissions closing on 17 April 2025. Please note previous reports indicated the closing date would be 11 April. This has been adjusted to match the change to the Local Water Done Well consultation dates.

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?		Yes
Is there funding in the current Annual Plan for these actions?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to the achievement of objective/objectives in: 14. Mahere mana urungi, kirirarautanga hihiri 14. Governance and Active Citizenship Plan The objective is: Base our decisions on sound information and advice
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Adopting an annual budget/plan each year is a fundamental legislative requirement and without this in place the Council will not be able to set rates for the year and therefore fund any of its actions, plans or strategies. Palmerston North City Council consults on its annual budget to ensure public awareness of any proposed changes since the Long-Term Plan was agreed.

Attachments

1.	Professional Services Information ⇩
2.	Supporting Information to the Consultation Document for the 2025/26 Annual Budget ⇩
3.	Draft Consultation Document ⇩

Report

TO: Council

MEETING DATE: 5 March 2025

TITLE: Te Motu o Poutoa Civic Marae and Cultural Centre- Governance Options

PRESENTED BY: Kathy Dever-Tod - Manager Parks and Reserves
Cameron McKay - GM Corporate Services

APPROVED BY: Waid Crockett, Chief Executive.

RECOMMENDATIONS TO Council

1. That the preferred option for consultation for the governance and management of the proposed Te Motu o Poutoa Marae and Cultural Centre is a Council-Controlled Organisation charitable entity with governance represented by Council and Rangitāne o Manawatū.

2. That Council approve the Statement of Proposal (Attachment 1) for consultation on the four identified options to be carried out as part of the 2025/26 Annual Plan consultation process.

3. That Council support in principle the granting of a future lease over the land to be used by the proposed Te Motu o Poutoa Marae and Cultural Centre of 33 years (including several rights of renewal), which is the longest lease period possible under the Reserves Act 1977.

4. That Council note that the reserve land to be leased for the proposed Te Motu o Poutoa Marae and Cultural Centre will remain in Council ownership and be managed in partnership with Rangitāne o Manawatū.

Summary of options analysis for

Problem or Opportunity	Council is intending to consult with the community in April 2025 on the options for the structure of joint future governance and management for the proposed Te Motu o Poutoa Civic Marae and Cultural Centre.
OPTION 1:	Adopt the statement of proposal for consultation with a stand-alone Council-Controlled Organisation charitable entity and governed by Council and Rangitāne o Manawatū as council’s preferred option
Community Views	Community views on the four options will be sought through the special consultative process. This option fully aligns with the provisions of the Kawenata between Council and Rangitāne o Manawatū.
Benefits	Adopting a preferred option now, provides information to support applications for external funding. Council’s stated preferred option scored the highest in the options analysis.
Risks	The community may not support the establishment of an additional Council-Controlled Organisation due to the additional costs to Council of reporting etc.
Financial	Costs associated with the preparation and consultation on the Statement of Proposal, over and above Annual Budget consultation provisions, are included within the Manawatū River activity operating budget.
OPTION 2:	Adopt the statement of proposal for consultation with one of the three remaining governance and management options stated as Council’s preferred option
Community Views	Community views on the four options will be sought through the special consultative process. All three remaining options have relatively poor alignment with the provisions of the Kawenata between Council and Rangitāne o Manawatū.
Benefits	Adopting a preferred option now, provides information to support applications for external funding.
Risks	The three remaining options have a lower impact on capital funding than the Council-Controlled Organisation option, which may impact the ability to secure external funds.
Financial	Costs associated with the preparation and consultation on the Statement of Proposal, over and above Annual Budget consultation provisions, are included within the Manawatū River activity operating budget.
OPTION 3:	Do not adopt the statement of proposal
Community Views	Community views on the four options will not be sought.
Benefits	No further action required at this time.
Risks	Delaying a decision on the future governance and management will impact applications for external funding – information on the proposed ongoing business model and asset ownership is needed to complete applications.
Financial	A future standalone special consultative process will incur higher costs than incorporation of this Council decision into the Annual Budget 2025/26 process currently underway. A separate special consultative process has not been budgeted for.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 In the 2024 -34 Long Term Plan (LTP), Council consulted on Te Motu o Poutoa Civic Marae and Cultural Centre as a partnership project with Rangitāne. The project was approved and included in the adopted LTP as a key project with a budget of $14.9 million, including external funding of $5 million.

1.2 One of the workstreams within the programme is to decide and then establish the governance and management structure for the new developments.

1.3 On 7 October 2024, the Programme Steering Group (PSG) considered a report from the Programme Director on governance and management structures. The PSG advised the October 2024 meeting of the Rangitāne o Manawatū Committee that the preferred option of the PSG was a Council Controlled Organisation (CCO).

1.4 The establishment of a new CCO requires a consultation under s56 of the Local Government Act and the use of the Special Consultative Procedure (SCP), according to Council’s Significance and Engagement Policy.

1.5 In order to streamline the consultation with the community, and minimise costs to Council, it is proposed that this consultation will be carried out as part of the 2025/26 Annual Plan process.

1.6 For the SCP, a Statement of Proposal is required that meets the requirements of the Local Government Act. A Statement of Proposal has been prepared and this report seeks Council approval of the Statement of Proposal for consultation.

1.7 Another programme workstream is external funding. The scope of this funding was stated in the LTP - $5 million to be funded by Rangitāne o Manawatū ($2 million) and external grants ($3 million). The focus of the external grants is a possible equity investment by the Government through the Regional Infrastructure Fund (RIF).

1.8 In order to enable and optimise the ability of Te Motu o Poutoa Civic Marae and Cultural Centre to raise the required external funding, particularly equity investment, and to attract commercial operational partners (such as a café), a long-term lease should be considered.

1.9 Investors and grant partners value the confidence and surety that the facility they are adding their support to will be around for as long as possible.

2. Background and previous council decisions

2.1 Palmerston North City Council (Council) owns the reserve land that is the location of Te Motu o Poutoa, the City's most significant cultural site and of great significance to Rangitāne o Manawatū, tangata whenua of the Manawatū.

2.2 Council and Rangitāne o Manawatū have signed a Kawenata in relation to Te Motu o Poutoa, which records the mutual aspiration and the framework for a management arrangement of the site.

2.3 Rangitāne and Council have been working in partnership over the past three years to develop a plan to restore the mana and identity of the site.

2.4 Council has included the Te Motu o Poutoa Civic Marae and Cultural Centre as a key project in the 2024 LTP, with a budget of $14.9 million, including external funding of $5 million. The proposed development includes a civic marae with public facilities and visitor and education attractions, with a forecast completion date of 2027.

2.5 In September 2024, Council established a Programme Steering Group (PSG) to govern the programme. The PSG is comprised of representatives of Rangitāne o Manawatū and the Council.

2.6 The Project Sponsor reports to Council on progress with the programme and any decisions of the PSG through the Rangitāne o Manawatū Committee.

2.7 At the October meeting of the Rangitāne o Manawatū Committee, it was recommended – “That the Council investigate the use of a council-controlled organisation (CCO) or other subsidiary entity model as the start-up structure for the Te Motu o Poutoa Marae and Cultural Centre”.

3. Decision making CONSIDERATIONS

3.1 Council identified Te Motu o Poutoa as a Strategic Asset in the Significance and Engagement Policy 2024. There are requirements under the Local Government Act^{^[1]} for Council to consider certain matters when making decisions on governance and control of a strategic asset.

3.2 In general, if Council is making a decision about a strategic asset, it will use a greater degree of engagement than it would for a non-strategic asset. This requirement is addressed by the proposed consultation using the Special Consultative Procedure.

3.3 There are also requirements around any decision process that seeks to transfer ownership or control of a strategic asset, unless it has first consulted with the community through a Long-Term Plan consultation document. Council is not intending to transfer the ownership or control of the Strategic Asset – being Te Motu o Poutoa, the Reserve. Council proposes to lease that area of the reserve occupied by the new Te Motu o Poutoa Civic Marae and Cultural Centre, and the immediate Atea around it, to a new CCO that is jointly governed between Council and Rangitāne o Manawatū.

3.4 The lease of reserve land is subject to the requirements of the Reserves Act 1977. The ultimate control of the reserve will remain with Council, managed in partnership with Rangitāne through the principles within the Kawenata.

3.5 As such, the decision to consult on setting up a CCO is not a significant decision in the context of the LGA ((s79(1) and (2))) and does not require an amendment to the LTP.

3.6 The preferred option is fully in alignment with the Kawenata between Council and Rangitāne o Manawatū. This is a key partnership contract.

3.7 The status of the land that makes up Te Motu o Poutoa has previously been researched by Council. The land is not currently designated under the Reserves Act 1977.

3.8 The main land area that is the intended site for the Te Motu o Poutoa Marae and Cultural Centre is currently owned by Council in trust, for park and public garden. It is held in four titles as shown in Figure One.

Figure One: Te Motu o Poutoa- ANZAC Park

3.9 Council has delegation from the Minister of Conservation to classify reserves. Classifying the land under the Reserves Act will result in higher levels of protection as public land.

3.10 It is recommended that the new governance entity / arrangement (once established) consider what land classification(s) would be most appropriate under the Reserves Act 1977 for the new facility and make a recommendation to Council. The likely designations are Local Purpose Reserve or Historic Reserve. The Council could apply different classifications to the different titles that make up the collective reserve or different classifications to parcels within each title.

3.11 Council has delegation from the Minister to make decisions on the leasing of reserve land, including the term of the lease and for facilities on reserve land to charge entry fees. External funders require some level of certainty that their investment in Te Motu o Poutoa will result in an enduring outcome for the community. Shorter term leases increase the risks that the facility will not be permanent, or that new conditions restricting operations could be imposed in the future.

3.12 The maximum lease period for a reserve land under the Reserves Act is 33 years. Whilst a decision on the terms and conditions of a lease to a future CCO are not required at this stage, it is advisable for Council to support in principle the granting of a 33 -year lease term.

4. Description of options

4.1 A preliminary report^{^[2]} reviewed what the most appropriate structural options would be for the proposed Te Motu o Poutoa Civic Marae and Cultural Centre. It recommended that the preferred Governance and Management Structure for the proposed legal entity for Te Motu o Poutoa is a CCO that is a charitable entity. This followed the report on Strategic Options and Business Case development for Te Motu o Poutoa to Council^{^[3]}. The report noted that charitable status was important so the entity can be best positioned to apply for grant funding.

4.2 Council has limited options for the governance and management structure, as the assumption is that land will remain in Council ownership. Selling or leasing the proposed Te Motu o Poutoa Civic Marae and Cultural Centre to a commercial entity would not be possible without significant obstacles and lengthy processes that are unlikely to be successful. The reasons for this include:

· The land is identified as a Significant Asset by Council. A fully consulted proposal as part of a Long-Term Plan process would be required to consider changing ownership or control of the site. It is highly likely that there would be substantial community opposition to doing this.

· As the City's most significant cultural site, and of great significance to Rangitāne o Manawatū, there would be a very high level of opposition from the Council’s treaty partner.

· Contrary to Council plans and the agreed Kawenata with Rangitāne o Manawatū.

· The assumed external funding of the facility is most likely to be raised due to the public ownership of the site and partnership with Rangitāne o Manawatū.

4.3 For these reasons it is not practicable to fully explore options around private sector ownership or leasing for the governance and management of the facility.

4.4 Four options have been identified as practicable for the governance and management of Te Motu o Poutoa Marae and Cultural Centre. These are:

a) Council Parks and Reserves - Wholly owned and governed by Council.

b) Part of Te Manawa - Te Motu o Poutoa Subsidiary Charitable Entity of Te Manawa.

c) Stand- Alone CCO, and a Charitable Entity with governance shared between Council and Rangitāne o Manawatū.

d) Rangitāne o Manawatū - Wholly Owned (the facility), governed and managed by Rangitāne.

5. Analysis of options

5.1 The consultation process (LGA - SCP) will include a Statement of Proposal that explains the options and their assessment. To explain the basis of the assessment, and to meet the requirements of the LGA^{^[4]}, each option has an assessment of the advantages and disadvantages.

5.2 In order to do this clearly, it is necessary to identify a range of criteria against which each option can be assessed. This results in a transparent scoring of each option.

5.3 Nine criteria have been selected. The focus of the criteria is their impact on the fit with Council and Rangitāne o Manawatū, viability, long-term operating costs, flexibility and affordability of the project. These are weighted as shown in Table 1.

5.4 The weightings are an assessment on the importance of each criteria in meeting Council and Rangitāne o Manawatū aspirations and for the success of the project.

Criteria	Weighting
Fully Reflects Kawenata	20.0%
Low Capital Funding Impact	15.0%
Low Net Operating Cost Impact	12.5%
Skill-Based Governance with Strong Commercial Skills	10.0%
Mission Clarity with Strong Public Alignment	10.0%
Stability	10.0%
Entrepreneurial Management	10.0%
Clear Market Focus and Agility	7.5%
Low Costs of Governance	5.0%
	100.0%

Table 1: Assessment Criteria and weightings

5.5 Criteria are scored from a project perspective - for example, Low Net Operating Impact is a low net operating impact to the project. The scores are between 1 and 5, i.e. the higher the score the more favourable each criterion.

5.6 The analysis of the four options is presented in the Statement of Proposal in Attachment 1.

6. conclusion

6.1 The unweighted scores from the analysis are:

6.2 Option c), the Stand-Alone CCO, and a Charitable Entity governed with representatives from both Council and Rangitāne o Manawatū, scores the highest. Once the criteria weightings described in 5.4 above are applied, Option 3 becomes the clear preferred structure.

6.3 It is recommended that the preferred option for the governance and management of Te Motu o Poutoa Marae and Cultural Centre is a Stand-Alone CCO, and a Charitable Entity governed by representatives from both Council and Rangitāne o Manawatū.

7. Next actions

7.1 Finalise the dates and material to be used as part of the consultation process, including setting up the Have your Say webpage with a simplified explanation of the proposal and options, and a submission form. The SoP will be attached to the web page as additional reading material.

7.2 Set up separate consultation meetings with Te Manawa and Rangitāne o Manawatū, as the identified parties that will or may be affected directly.

7.3 Analyse submissions and hold hearings (if required) before Council deliberations in May 2025. Final decisions to be adopted by Council in June 2025.

8. Outline of community engagement process

8.1 Consultation will occur alongside the 2025/26 Annual Plan consultation process. As such, this will occur within the same timeframe and arrangements for public meetings.

8.2 The LGA requires Council to consider who could specifically be impacted to a greater degree than the public in general. For these people, Council needs to give additional opportunities to consult directly into the decision process.

8.3 Council has identified that Rangitāne o Manawatū and Te Manawa will or may be affected directly. There has been some consideration of additional affected persons such as the Palmerston North Astronomical Society, and the closest residential neighbours on Vaucluse Heights and Edenmore Terrace.

8.4 However, these persons are affected by the project itself, which has already been approved in the Council LTP, not the decision about the governance and management of it. The process for resource consent for the building and associated works may give these persons the opportunity to make a submission, if Council deems that the activity requires a notified or limited notified resource consent.

8.5 Outside of these persons / organisations, it is assessed that any persons affected, or may be affected, or have an interest in the decision are part of the public at large.

8.6 The Draft Annual Plan consultation document includes a paragraph on the proposal, referring the public to the Have your Say web page set up for the consultation on Te Motu o Poutoa. The web page includes a simplified explanation of the proposal and submission form.

9. Compliance and administration

Does the Council have delegated authority to decide?		Yes
Are the decisions significant?		Yes
If they are significant do they affect land or a body of water?		Yes
Can this decision only be made through a 10 Year Plan?		No
Does this decision require consultation through the Special Consultative procedure?		Yes
Is there funding in the current Annual Plan for these objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The options being consulted on include establishing a new CCO. As such a Special Consultative Procedure must be carried out for this option to be selected. This option is recommended as the Council preferred option. Te Motu o Poutoa (the entire site) is considered by Council to be a Strategic Asset. There cannot therefore be any proposal to transfer ownership or control of the land away from Council without consulting as part of an LTP process. This proposal is on the governance and management of the new Te Motu o Poutoa Marae and Cultural Centre, with the Te Motu o Poutoa land remaining in Council ownership and control through a lease arrangement.
The recommendations contribute to: Whāinga 2: He tāone whakaihiihi, tapatapahi ana Goal 2: A creative and exciting city Whāinga 4: He tāone toitū, he tāone manawaroa Goal 4: A sustainable and resilient city
The recommendations contribute to this plan: 11. Mahere mō te kanorau koiora me Te Awa o Manawatū 11. Biodiversity and the Manawatū River Plan The objective is: Encourage and enable the community’s connection with the Manawatū River Action: Develop Te Motu o Poutoa
Contribution to strategic direction and to social, economic, environmental and cultural well-being	· Council will work in partnership with Rangitāne. · Respect and enhance the Mauri of the Manawatū River. · The Manawatū River Framework states ‘to identify and appropriately develop Rangitāne sites of cultural and historical significance’. This site was identified for development and management planning.

Attachments

Statement of Proposal - Te Motu o Poutoa Civic Marae and Cultural Centre ⇩

Memorandum

TO: Council

MEETING DATE: 5 March 2025

TITLE: Review of the Delegations Manual 2025

Presented By: Sarah Claridge, Governance Advisor

APPROVED BY: Cameron McKay, General Manager Corporate Services

RECOMMENDATION TO Council

1. That Council adopt Part 1: Introduction (Attachment 1) to replace the current Part 1 in the Delegations Manual 2023.

2. That Council adopt the revisions to the Delegation Manual as outlined in section 4 of this report, noting any changes.

3. That Council delegate authority to the Chief Executive to amend the Fees and Charges 2024-25 to add any roles (as relevant) following the organisational realignment.

1. ISSUE

1.1 In October 2023, Council adopted its Delegation Manual, following a comprehensive re-write and re-format of the 2018 version. In May 2024, the Strategy and Finance Committee considered revisions to the Financial Delegations section of the Delegations Manual (one section of Part 5). These were adopted by Council and have applied since 1 July 2024.

1.2 The 2023 review revised most of the Delegation Manual except for the Part 1 Principles and Purpose section. Part 1 (Attachment 1) of the Delegations Manual has now been administratively reviewed for currency and accuracy. This memorandum seeks Council’s approval of the revised Part 1.

1.3 For comparison, the current Introduction section of the Delegation Manual 2023 is attached as Attachment 2.

2. BACKGROUND

2.1 Delegations are the mechanism for which Council efficiently goes about its business within the authorities given it under the law.

2.2 Part 1 of the Delegation Manual explains how and why Council delegates functions and duties under the Local Government Act 2002 (LGA) and other legislation; and the rationale for doing so.

2.3 The Delegations Manual is a living document that has ongoing updates over time. Amendments, where added, are identified with footnotes.

3. REVIEW of Part 1: PRINCIPLES AND PURPOSE OF DELEGATIONS MANUAL

3.1 As a part of the review cycle, a desktop review was conducted by the Governance team. Objectives were to improve readability, rephrase legal language into plain English and make the Part 1: Introduction more concise and clear.

3.2 Officers compared the introduction section with Hamilton City, Christchurch City, Queenstown Lakes and Otago Regional councils. These were chosen as good practice examples.

3.3 The revised, proposed Part 1 Introduction is attached.

3.4 In summary, several clauses have been removed for repetition, where they are incorporated elsewhere in the Manual. Two short sections have been added:

· How the Delegation Manual Works provides a simple outline of the structure of the Manual.

· 1.4 Role of the Chief Executive explains the role of the Chief Executive and where to find sub-delegations to council staff.

3.5 The review also highlighted an inaccurate reference to the limits of sub-delegation. This is discussed below with a solution proposed.

Sub-delegation

3.6 Sub-delegation is the act of a delegated officer^{^[5]}, authorising another officer to act on their behalf with the same amount of authority/power the original officer would otherwise have been permitted to use.

3.7 The current Delegation Manual states that delegations made to the Chief Executive cannot be sub-delegated to officers. However, this does not align with all relevant pieces of legislation to which the Delegation Manual applies. In fact, the LGA allows for delegations made to any officer/ body to be sub-delegated to another officer. Sub-delegation can only occur once and sub–delegated authority is subject to any conditions, limitations, or prohibitions imposed by the Delegator. However, not all legislation allows sub-delegation. Delegations made under the LGA allow sub-delegation whilst delegations made under other acts, such as the Resource Management Act prohibit it. See the summary in tables 1 and 2 below.

Table 1: Officers’ ability to Sub-Delegate under different Legislation

Laws that allow named^{^[6]} officers to sub-delegate	Laws that allow specific officers to sub-delegate	Laws that do not allow officers to sub-delegate
Local Government Act 2002 (LGA)	Sale and Supply of Alcohol Act 2012 (CE can sub-delegate s 198)	Resource Management Act 1991 (RMA)
Building Act 2004	Local Electoral Act 2001 (Electoral officer can sub-delegate)	Rating Valuations Act 1998
		Local Government Rating Act 2002

Table 2: How delegation works under different legislation.

COUNCIL

LGA

Council delegates power under LGA to delegated officer

RMA (as an example)

Council delegates power under RMA to delegated officer

Delegated Officer

√ Has the power/ authority to complete the task

√ can sub-delegate power to another officer to do

Delegated Officer

√ Has the power/ authority to complete the task

x cannot sub-delegate power to another officer to do

Sub-delegated Officer

√ Has the power/ authority to complete the task

x cannot delegate the power/ authority to another officer

Sub- delegation not allowed

Further sub-delegation not allowed

3.8 To clarify to officers which statutory powers can and cannot be sub-delegated, it is proposed to add a sentence indicating whether sub-delegation is allowed before each law listed in Part 5 Statutory and Policy Delegations from Council to Officers, in addition to the proposed section 1.6.

4. other proposed Revisions

4.1 Under current delegation 1.18.1, the Governance Manager has updated the Delegations Manual to reflect changes to officers’ titles following recent organisational re-alignment.

4.2 During this process, the following revisions were identified as outside of delegation. They therefore require Council to consider:

Delegations to Business Assurance Manager – this role no longer exists. Recommend: transfer to Manager- Legal, Risk and Business Assurance.

Delegation

Delegated to

2.4. The authority to receive notification of suspected or actual behaviour or actions that could amount to a serious wrongdoing by the Chief Executive, according to the Fraud and Whistleblowing Policy. And in such cases to implement the policy and/or direct the Manager Legal, Risk and Assurance ~~Business Assurance Manager~~ to engage external support for the purpose of implementing the policy.

Mayor

Deputy Mayor

2.7 Notifications from Manager Legal, Risk and Assurance ~~Business Assurance Manager~~

Delegation

Delegated to

2.7.1 Authority to receive notification directly from the Manager Legal, Risk and Assurance ~~Business Assurance Manager~~ where the Manager Legal, Risk and Assurance ~~Business Assurance Manager~~ deems any matter the responsibility of or relevant to the elected Council, and vice-versa.

Chair of Risk and Assurance;

Deputy Chair of Risk and Assurance

Financial Delegation to the Strategy and Finance Committee- The following delegation refers to the specified sum, officers recommend this be revised to a specific value, to align the delegation with the changes made to the Delegation Manual in May 2024 (replacing the term ‘specified sum’ throughout the Manual with a set dollar value).

4.6 Strategy & Finance Committee

Accept, decline or vary any contract for the purchase or supply of goods, services, plant, capital works, etc to the value of $3M ~~the specified sum~~, as long as it has been agreed in the Council’s Long Term Plan or subsequent Annual Plans (Budgets).

Under Delegation 5.3.1, the Chief Executive has financial delegation to award a commitment up to a value of $3M over 3 years, however this is subject to a series of limitations set out in 5.3.2 through to 5.4.2. Delegating to the Committee a similar financial level but without the same conditions allows, for example, for commitments longer than 3 years to be brought to the attention of Elected Members and considered by the Committee, but still requires Council approval for:

· Commitments (including any variations) greater than $3M or,

· agreement to purchase/sell assets, or

· contracts for the purchase of goods or services for programmes not in

the LTP/ Annual Budget.

Delegations to Planning Services Team

Following realignment in the Planning Services Team, a Team Leader – Planning Services role has been created and the Principal Planner – Customer role dissolved. Officers request the following changes to the Manual (s5.13) :

· Any reference to Principal Planner – Customer in the Delegation’s Manual be replaced with Team Leader – Planning Services.

· Include the Manager- Planning Services as a consultee before the Legal Counsel appoints a Hearing Commissioner.

5.1.3 Resource Management Act 1991

Section

Description

Delegated to

34A (1)

Exercise the functions, powers and duties of the Council under the Resource Management Act 1991 and regulations made thereunder for matters within their jurisdiction, except :

· Approve any proposed policy statement or plan under schedule 1 clause 17.

· The power to delegate (s34A)

· Matter in respect of which one or more Hearing Commissioners has been appointed

· The appointment and assignment of Hearings Commissioners (clause 3.4.5);

· The authorisation of enforcement officers

· Remitting any administrative charge, in whole or part, in an amount no more than $20,000.

Principal Planner – Strategic Planning

Senior Planner –Strategic Planning

Planner –Strategic Planning

Manager -Environmental Protection

Environmental Protection Services Team Leader

Environmental Health Officer Environmental Health Technical Officer

Environmental Technical Officer

Manager - Planning Services

~~Principal Planner - Customer~~

Team Leader – Planning Services

Senior Planner – Development and Regulatory

Monitoring & Enforcement Officer –

Planning Officer – Development and Regulatory

34A (1A)

Appointment and assignment of Hearings Commissioners, from the Council list maintained under section 34A, see clause 3.4.7

Legal Counsel in liaison with either Manager - Planning Services or

Team Leader – Planning Services ~~Principal Planner~~ and/or the Principal Planner- Strategic Planning

5. Revision to the Fees and Charges 2024-25

5.1 Every year, Council sets fees and changes for certain services, the list also contains the hourly charge-out rate for particular roles. The Fees and Changes set for 2024/25 needs to be amended to reflect any roles changed due to recent realignment processes.

5.2 Officers seek approval to add any new roles or edit any title changes, as appropriate, to the list of allocated roles for the Fees and charges 2024/25. This is available to the community on our website.

6. Progress of the Review of the Delegation Manual

6.1 Adopting Part 1 of the Delegation Manual today, will bring the Delegation Manual up to date.

Delegation Manual (by part)	Delegations covered	Reviewed
Part 1	Principles and Purpose of Delegation Manual	expected Council March 2025 Definitions Table to be reviewed in light of Part 5 implementation
Part 2	Delegations from Council to Elected Members	Council November 2022 AND October 2023
Part 3	Delegations to sub-ordinate decision- making bodies (eg Hearings Commissioners, District Licensing Committee)	Council November 2022 AND October 2023
Part 4	Delegations from Council to Committees	Council December 2022
Part 5	Functional delegations from Council to the Chief Executive	Council October 2023
Part 5	Statutory delegations from Council to officers (eg. Resource Management Act)	Council October 2023
Part 5	Financial delegations from Council to the Chief Executive	Council June 2024
Resolutions of Council not otherwise covered in policies	Delegations from Council to Chief Executive Delegations from Council to Elected Members	Council ongoing Manual updated by Governance Manager
Chief Executive’s Delegations Manual	Sub-delegations from Chief Executive to Officers, Functional sub-delegations to officers Statutory sub-delegations (eg. Building Act), bylaws and policy delegations to officers. Financial sub-delegations from Chief Executive to officers	Chief Executive
Policies	Sub-delegations from Chief Executive to officers under Policies approved by Council	Chief Executive
Bylaws	Sub-delegations from Chief Executive to officers under bylaws approved by Council	Chief Executive

6.2 Work is ongoing to amalgamate all delegations into one source. This means the Delegations Manual will include sub-delegations of the Chief Executive to officers, including delegations granted through bylaws and policies.

o Officers recommend, as much as possible, ensuring that all delegations are kept in one place.

o It should be noted that authority to make changes to the sub-delegation sections will remain within the authority of the Chief Executive.

7. NEXT STEPS

7.1 The Delegations Manual and Fees and Charges 2024/25 will be amended to reflect naming changes to roles as set out above.

7.2 Officers will bring a review of the Definitions section to Council as soon as practicable. A review and adoption of the Delegations Manual in totality will take place following the Local Government election in October 2025.

7.3 Review of the Chief Executive’s Delegation Manual is underway. When completed, we expect this will be integrated as Section 6 of the Delegations Manual and to include delegations from legislation, Policies and Bylaws.

8. 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
The recommendations contribute to: All Goals
The recommendations contribute to the achievement of objective/objectives in: 14. Mahere mana urungi, kirirarautanga hihiri 14. Governance and Active Citizenship Plan The objective is: Review governance systems and structures
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Clarifying lines of authority and ensuring consistency of application heightens trust in Council as an organisation led by an elected body. Use of simple language allows for understanding of the purpose of delegations and implementation of correct authorities.

Attachments

1.	Proposed Part I: Principles and Purpose of Delegation Manual ⇩
2.	Current Part I: Introduction_ Delegation Manual 2023 ⇩

Memorandum

TO: Council

MEETING DATE: 5 March 2025

TITLE: Approval for the Mayor to travel to China for the 3rd New Zealand - China Mayoral Forum in May 2025

Presented By: Gabrielle Loga, Manager International Relations

APPROVED BY: David Murphy, General Manager Strategic Planning

RECOMMENDATIONS TO Council

1. That Council approve the Mayor to travel to China to attend the third China - New Zealand Mayoral Forum from 18 May to 23 May 2025, subject to the receipt of an official invitation and detailed programme.

2. That Council approve up to $2,500 of international flight tickets and incidental costs associated with the Mayor’s travel to China.

1. ISSUE

1.1 This memorandum outlines an opportunity for the Mayor to travel to Chengdu, China from 18 May to 23 May 2025 in order to represent Palmerston North at the third China - New Zealand Mayoral Forum. The Mayor would also represent Global Cities New Zealand in his capacity as its national president.

1.2 Although the official invitation and final programme are still pending, Council approval of the Mayor’s travel is necessary to provide certainty to final planning with the city’s international and local partners.

2. BACKGROUND

2.1 Palmerston North is a signatory to the original China - New Zealand Mayoral Forum Xiamen Declaration to support ongoing subnational co-operation with China towards economic outcomes. Mayors from China and New Zealand have been invited to attend a joint forum every two years. Palmerston North participated in the 2015 Forum in Xiamen and the 2017 Forum in Wellington. The 2019 Forum was postponed due to the pandemic.

2.2 The Chinese People’s Association for Friendship with Foreign Countries (CPAFFC) is working with Global Cities New Zealand to co-host the third China - New Zealand Mayoral Forum in Chengdu, Sichuan province, China.

2.3 As 2025 marks ten years since the first China - New Zealand Mayoral Forum in 2015, the theme of the Forum is set to be “Mapping Out for the New Decade of Sister City Relationships”. Attendants will also celebrate the first China - New Zealand Sister Cities Festival as part of this Forum.

2.4 The advice received from the CPAFFC is that the programme includes discussions on:

- Opening doors for cooperation in business with trade and investment between sister cities;

- Enhancing mutual understanding through educational, research and cultural exchanges; and

- Sharing success stories of the people-to-people connections.

2.5 At the time of writing this memorandum, the official invitation and final programme from CPAFFC are pending.

2.6 The primary objectives of this travel are to enhance and elevate Palmerston North's status and reputation on the international stage, foster connections between city delegates and key Chinese officials, business leaders, and community stakeholders, and explore opportunities for business partnerships and collaboration. Additionally, the delegation will facilitate in-depth discussions on economic development, as well as future plans for mutual growth, cultural exchanges, and strengthening bilateral ties.

2.7 The Mayor has received strong interest from Rangitāne and several organisations about joining a mayoral delegation to participate in the forum, including the Central Economic Development Agency, education providers, and various research, business and innovation entities. The New Zealand Panda Trust is also interested in sending a small delegation, headed by Sir Graham Avery, as well as a Te Matatini cultural group to participate in this Forum, both of whom would cover their own expenses.

2.8 The advice received from the CPAFFC is that they will cover the accommodation, meals and internal transportation costs in Chengdu from 19 May to 22 May 2025 for a delegation of up to six people from Palmerston North.

2.9 Should Council approve the Mayor’s international travel, the costs (flights and incidentals) will be covered by the Council according to the Council’s Elected Members’ Expenses and Allowances Policy 2022. Officers estimate this will be approximately $2,500.

2.10 If the travel is approved, the Mayor will attend the Community Committee meeting on 21 May 2025 virtually via Teams.

3. NEXT STEPS

3.1 If Council approves the Mayor’s travel to China in May 2025, arrangements will be confirmed with Global Cities New Zealand and the Chinese People’s Association for Friendship with Foreign Countries. A more detailed programme and official invitation will be provided.

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

4. 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 objectives?		Yes
Are the recommendations inconsistent with any of Council’s policies or plans?		No
The recommendations contribute to: Whāinga 2: He tāone whakaihiihi, tapatapahi ana Goal 2: A creative and exciting city
The recommendations contribute to this plan: 2. Mahere whakawhanake ohaoha 2. Economic Development Plan The objectives are: · 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 participation in the China – New Zealand Mayoral Forum would demonstrate Palmerston North’s leadership in subnational diplomacy, international collaboration and friendship, as well as explore opportunities with partner cities to enhance economic, educational, cultural and community cooperation.

Attachments

Nil

Committee Work Schedule

TO: Council

MEETING DATE: 5 March 2025

TITLE: Council Work Schedule

RECOMMENDATION TO Council

1. That Council receive its Work Schedule dated 5 March 2025

COUNCIL WORK SCHEDULE 5 March 2024

#	Estimated Report Date	Subject	Officer Responsible	Current Position	Date of Instruction & Clause
1	~~5 March 2025~~	~~Draft Annual Budget 2025/26 for consultation~~	~~Chief Executive~~		~~Terms of Reference~~
2	~~5 March 2025~~	~~Review of Delegations Manual~~	~~GM Corporate Services~~		~~Terms of reference~~
3	~~5 March~~ 2 April 2025	Alternative Options for BPO - Nature Calls	GM Infrastructure	Waiting on release of Taumata Arowai standards	Council 29 May 2024 Clause 95.11 -25 (rec 2)
4	2 April 2025	Extension of Contract – Nature Calls	GM Infrastructure		11 Dec 2024 clause 224- 24
5	~~2 April~~ 6 August 2025	Review of CEDA Directors Policy	GM Corporate Services	Alignment of members’ schedules.	2 Oct 2024 Clause 172
6	2 April 2025	Roxburgh Crescent Land Classification – deliberations	GM Infrastructure	Moved from Strategy and Finance so decision can be made before Roxburgh Plan Change Hearing starts	14 August 2024 Clause 38-24
7	30 April / 1 May 2025	Hearings for the Annual Budget 2025/26	Chief Executive		Terms of Reference
8	7 May 2025	Deliberations for Local Water Done Well	GM Infrastructure	following Hearings at Sustainability Committee – 16 April
9	7 May 2025	Review of PNCC Appointment of Directors Policy.	GM Corporate Services		2 Oct 2024 Clause 172
10	7 May 2025	Property options in Roslyn to support the delivery of Community Services	GM Customer & Community	Moved from Community Committee to align with budget considerations
11	7 May 2025	Te Apiti Ashhurst Loop Track - negotiations and Recreation Fund application	GM Infrastructure	Moved from Strategy & Finance Committee to align with budget considerations	8 May 2024 Clause 32
12	14 May 2025	Deliberations for the Annual Budget 25/26	Chief Executive		Terms of Reference
13	14 May 2025	Adoption of Fees and Charges	GM Corporate Services	following consultation (Trade Waste/ Planning)	12 February Clause xx-25
14	4 June 2025	Remits received from other Territorial Authorities	GM Corporate Services		Terms of Reference
15	4 June 2025	2024 Residents Survey – Action Plan	GM Strategic Planning		Terms of Reference
16	4 June 2025	Adopt Annual Budget 2025-26	Chief Executive		Terms of Reference
17	4 June 2025	Agree LWDW - Water Services Delivery Plan	Chief Executive
18	4 June 2025	Set the Rates for 2025-26	GM Corporate Services		Terms of Reference
19	4 June 2025	Approve Borrowing for 2025-26	GM Corporate Services		Terms of Reference
20	25 June 2025	Agree revised BPO – Nature Calls	GM Infrastructure
21	6 August 2025	Report back on Investment Options for PN Airport	GM Corporate Services		6 December 2023 Clause 197-23
22	6 August 2025	Civic and Cultural Precinct Master Plan Steering Group – 6-monthly update	GM Strategic Planning		Terms of Reference
23	6 August 2025 ~~8 Oct~~	Appointment of Trustees on Council Controlled Organisations	GM Corporate Services		Terms of Reference
24	~~8 Oct 2025~~ 1 Feb 2026	Parking Contract Review Update – Frog Parking	GM Infrastructure		4 September 2024 Clause 156-24
25	8 Oct 2025	Adopt Annual Report 2024-25	Chief Executive		Terms of Reference
26	TBC	Summerhays Reports – Partnership Models Expressions of Interest	GM Infrastructure	Lying on the Table	1 May 2024 Clause 66-24 and 74 -24
27	TBC	Effectiveness of Civics Education Initiatives – Annual progress report	GM Customer & Community		29 May 2024 Clause 95.29 -24

[2] Te Motu o Poutoa Structural Review (confidential) – SGL April 2024.

[3] Strategic Options and Business Case Development for Te Motu o Poutoa, SGL, 2023

[5] Note it could also be delegated committee, joint committee or sub-ordinated body.

[6] Only the named officer can sub-delegate once. The LGA expressly prevents the delegation of ‘the power to delegate’.

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