Karakia Timatanga

Councillor Debi Marshall-Lobb opened the meeting with karakia.

81-25

Apologies

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.   That Council receive the apologies.

Clause 81-25 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, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Declaration of Interest

Councillor Debi Marshall-Lobb declared a conflict of interest in Item 8 Notice of Motion: Palmerston North Boys High School - Hockey Turf Project (clause 80-25) and took no further part in discussion or debate.

82-25

Confirmation of Minutes

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

That the minutes of the ordinary Council meeting of 7 May 2025 Part I Public and Part II Confidential be confirmed as a true and correct record.

Clause 82-25 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, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

83-25

Confirmation of Minutes

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

That the minutes of the ordinary Council meeting of 14 May 2025 Part I Public be confirmed as a true and correct record.

Clause 83-25 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, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

84-25

Notice of Motion: Palmerston North Boys High School - Hockey Turf Project.

Councillor Wood introduced the Notice of Motion.

Moved William Wood, seconded Grant Smith.

RESOLVED

1.   That Council create a new operating programme to provide civic support for the PNBHS Hockey Turf project of $33.5K in 2025/26 and refer $33.5K per year to 2026/27 and 2027/28 annual budget processes.   

Clause 84-25 above was carried 11 votes to 3, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Mark Arnott, Rachel Bowen, Vaughan Dennison, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad and William Wood.

Against:

Councillors Brent Barrett, Karen Naylor and Kaydee Zabelin.

Note

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

85-25

Community Committee Part I Public - 21 May 2025

Councillor Johnson  presented the recommendations below. She moved an additional motion, to agree Niuvaka Trust as a Sector lead from 2025-2028. This was the recommendation that was laid on the table from the Community Committee on 21 May 2025. The motion was lifted and moved as the engagement required with the Pasifika community had occurred.

Moved Lorna Johnson, seconded Patrick Handcock.

RESOLVED

1.   That Council adopt the recommendations from the Community Committee of 21 May 2025:

Potential locations for a public toilet at Albert St (clause 12-25)

Memorandum, presented by Bill Carswell, Activities Manager, Property Services.

1.   That Council proceed with applying for a planning and building consent for the installation of a single pan toilet at the end of Albert Street (option 2 residential pump station).

Clause 85-25 above was carried 12 votes to 1, with 2 abstentions, the voting being as follows:

For:

Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Against:

Councillor Mark Arnott.

Abstained:

The Mayor (Grant Smith) and Councillor Leonie Hapeta.

Moved Lorna Johnson, seconded Patrick Handcock.

RESOLVED

2.   That Council adopt the recommendations from the Community Committee of 21 May 2025:

Recommendation to engage Sector Lead Organisations (clause 11-25)

Memorandum, presented by Ahmed Obaid, Community Development Advisor and Stephanie Velvin, Manager Community Development.

1.   That Council engage the following organisation through Sector Lead Partnership Agreement for the period 1 July 2025 to 30 June 2028:

a.   MASH Trust

Clause 85-25 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, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Abstained:

Councillor Leonie Hapeta.

Moved Lorna Johnson, seconded Patrick Handcock.

On a procedural motion: That Council lift 1.b (make the Niuvaka Trust a sector lead for the period 1 July 2025- 30 June 2028)  off the table.

The procedural motion was carried 13 votes to 1, 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, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, William Wood and Kaydee Zabelin.

Against:

Councillor Karen Naylor.

Abstained:

Councillor Leonie Hapeta.

Moved Lorna Johnson, seconded Patrick Handcock.

RESOLVED

2. That Council engage the following organisation through Sector Lead Partnership Agreement for the period 1 July 2025 to 30 June 2028:

b.  Niuvaka Trust

Clause 85-25 above was carried 13 votes to 1, 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, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, William Wood and Kaydee Zabelin.

Against:

Councillor Karen Naylor.

Abstained:

Councillor Leonie Hapeta.

86-25

Fees and Charges - Confirmation following consultation

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

Councillor Wood moved an additional motion seeking information on how fees and charges for Planning Services are set.

Moved Grant Smith, seconded Vaughan Dennison.

RESOLVED

2.   That Council approve the fees and charges for Planning & Miscellaneous Services, as scheduled in Attachments 2 and 3, effective from 1 July 2025.

Clause 86-25 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, Lew Findlay, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor and Kaydee Zabelin.

Against:

Councillors Mark Arnott, Vaughan Dennison, Leonie Hapeta and William Wood.

Moved Grant Smith, seconded Vaughan Dennison.

RESOLVED

1.   That Council receive the submissions for fees and charges (Attachment 1).

3.   That Council approve the fees and charges for Trade Waste Services, as scheduled in Attachment 4, effective from 1 July 2025.

Clause 86-25 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, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Moved William Wood, seconded Karen Naylor.

RESOLVED

4. That the Chief Executive provide a breakdown for how we set our fees and charges for Planning Services.

Clause 86-25 above was carried 9 votes to 6, the voting being as follows:

For:

Councillors Mark Arnott, Brent Barrett, Vaughan Dennison, Leonie Hapeta, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Against:

The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Rachel Bowen, Lew Findlay, Patrick Handcock and Lorna Johnson.

87-25

2025/26 Annual Budget - Adoption

Memorandum, presented by Cameron McKay, Chief Financial Officer, Steve Paterson, Manager - Financial Strategy and Scott Mancer, Manager - Finance.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.   That Council adopt the Annual Budget (Plan) for 2025/26 (as amended to incorporate item 8 (clause 84-25)) as attached.

2.   That Council confirm the adoption of the Annual Budget (Plan) 2025/26 is a significant decision within the parameters of the Local Government Act 2002 and that Council is satisfied that all submissions have been considered and that there has been compliance with the decision-making and consultation requirements of the Act.

3.   That Council delegate authority to the Chief Executive to authorise payments to council-controlled organisations and other external organisations in accordance with their respective service level agreements.

Clause 87-25 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, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Orphée Mickalad and Kaydee Zabelin.

Against:

Councillors Mark Arnott, Billy Meehan, Karen Naylor and William Wood.

88-25

Setting Rates for 2025/26

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

The agreed Rates resolution 2025-26 is attached.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.   That Council adopt the resolution to set the rates for the 2025/26 year (Attachment 1).

2.   That Council note that the setting of rates is a significant decision within the parameters of the Local Government Act 2002 and that it is satisfied there has been compliance with the decision-making and consultation requirements of the Act.

Clause 88-25 above was carried 12 votes to 3, the voting being as follows:

For:

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

Against:

Councillors Mark Arnott, Karen Naylor and William Wood.

89-25

Resolutions to Authorise Borrowing

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

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.   That Council authorise the Chief Executive to borrow, in accordance with delegated authority, up to $49 million (“the Borrowing”) of additional term debt by way of bank loan or loans or credit facilities or other facilities or the issue of stock for the Borrowing secured by the Debenture Trust Deed.

2.   That Council note that the purpose of the Borrowing is the carrying out or continuing of programmes identified in the 2025/26 Annual Budget.

3.   That Council note that any sums raised and subsequently on-lent to Palmerston North Airport Limited pursuant to the loan agreement between the Council and the Company will be in addition to the sums to be raised for the Council’s own funding purposes as authorised above.

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

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

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

7.   That Council note that the decision to borrow up to $49 million is a significant decision within the parameters of the Local Government Act 2002 and is satisfied that there has been compliance with the decision-making and consultation requirements of the Act. 

Clause 89-25 above was carried 11 votes to 0, with 4 abstentions, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Brent Barrett, Rachel Bowen, Vaughan Dennison, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Orphée Mickalad and Kaydee Zabelin.

Against:

Councillors Mark Arnott, Billy Meehan, Karen Naylor and William Wood.

90-25

Local Water Done Well Decision

Report, presented by Mike Monaghan, Manager Three Waters, Julie Keane, Transition Manager, Olivia Wix, Manager Communications and Scott Mancer, Manager Finance.

Officers made a presentation (as attached). They explained that there was an error in workshop material from last week where the inflated figures for the Palmerston North City Council base case had been shown. This has been corrected in the report to show the uninflated figures over the 10 year period.

Officers corrected the following additional errors in the report:

In section 11.9 of the report (page 96), the additional debt repayment provisions of  $75M  should read $150M in the Long-Term Plan.

Figures in the Palmerston North City Council base case throughout the report include the cost of the  IFF levy (for Nature Calls). 

Page 83 –  Financial Section for Option 3 (for a  standalone Council-Controlled Organisation) - The figure for 10 years should read $2790 per year not 3,800 per year.

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.   That this matter or decision is recognised as of high significance in accordance with the Council’s Significance and Engagement Policy.

Clause 90-25 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, Lew Findlay, 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 confirm a Joint Water Services Council-Controlled Organisation as its preferred future Water Services Delivery Model.

3.   That Council agree to partner with Horowhenua District Council and Rangitīkei District Council in a Joint Water Services Council-Controlled Organisation (WSCCO).

4.   That Council agree to continue to work with Ruapehu District Council and Whanganui District Council with a view to including them in a Joint WSCCO upon confirmation from those councils.

5.   That Council instruct the Chief Executive to prepare a Joint Water Services Delivery Plan to be brought back to Council in August 2025 for approval prior to submission to the Department of Internal Affairs before the 3 September deadline, which includes further information relating to the management of stormwater.

Clause 90-25 above was carried 12 votes to 3, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Debi Marshall-Lobb, Mark Arnott, Rachel Bowen, Vaughan Dennison, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad and William Wood.

Against:

Councillors Brent Barrett, Karen Naylor and Kaydee Zabelin.

91-25

Te Motu o Poutoa Governance and Management Structure Options: Summary of submissions, including hearings

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

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.   That Council agree to the establishment of a Jointly Governed Council-Controlled Organisation, governed by Council and Rangitāne o Manawatū for the Te Motu o Poutoa civic marae and cultural centre, subject to Council confirming ongoing funding in the 2025/26 Annual Plan.

2.   That Council note the following steps are required before the new Jointly Governed Council Controlled Organisation commences operations:

·    Proposed establishment costs and processes, including relevant entity agreements such as a shareholders agreement or trust deed.

·    A Statement of Expectation agreed by Council

·    A Statement of Intent agreed upon between the Board and the Shareholders, outlining the specific objectives, clear roles and responsibilities for the Council-Controlled Organisation, including Council and Rangitāne o Manawatū roles in monitoring and accountability

·    Appointment of Board members

Clause 91-25 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, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Against:

Councillor Mark Arnott.

92-25

Council Work Schedule

Moved Grant Smith, seconded Debi Marshall-Lobb.

RESOLVED

1.   That Council receive its Work Schedule dated 4 June 2025.

Clause 92-25 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, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

93-25

Strategy & Finance Committee Part I Public - 28 May 2025

Councillor Vaughan  Dennison presented the recommendations below:

Moved Vaughan Dennison, seconded Karen Naylor.

RESOLVED

1. That Council adopt the recommendations from the Strategy & Finance Committee of 28 May 2025:

Variable Speed Limits for schools - confirmation of scope for draft Speed Management Plan  (clause 17-25)

Memorandum, presented by Peter Ridge, Senior Policy Analyst and James Miguel, Senior Transport Planner.

1.   That Council confirm that the scope of the draft Speed Management Plan 2025 (stage 1) will include:

·    variable speed limits for all schools within Palmerston North; and

·    Te Wanaka Road/SH56 intersection; and

·   An intersection speed zone (ISZ) for Longburn- Rongotea Road/No. 1 Line.

Clause 93-25 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, Lew Findlay, Patrick Handcock, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

Against:

Councillor Leonie Hapeta.

94-25

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.

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:

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

Clause 94-25 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, Lew Findlay, Patrick Handcock, Leonie Hapeta, Lorna Johnson, Billy Meehan, Orphée Mickalad, Karen Naylor, William Wood and Kaydee Zabelin.

R1

Single unit residential

Balance (approx.80)

0.4134

R2

Two unit residential

110

0.5697

R3

Three unit residential

120

0.6215

R4

Four unit residential

130

0.6733

R5

Five unit residential

140

0.7251

R6

Six unit residential

150

0.7769

R7

Seven unit residential

160

0.8286

R8

Eight or more unit residential

170

0.8804

MS

Miscellaneous

100

0.5179

CI

Non-residential (Commercial/Industrial)

250

1.2948

FL

Rural & Semi-serviced

(5 hectares or more)

25

0.1295

FS

Rural & Semi-serviced

(0.2 hectares or less)

75

0.3884

FM

Rural & Semi-serviced (between 0.2 & 5 hectares)

55

0.2848

Code

Brief Description

R1

Single unit residential

Balance (approx. 76)

0.1009

R2

Two unit residential

120

0.1589

R3

Three unit residential

120

0.1589

R4

Four unit residential

120

0.1589

R5

Five unit residential

120

0.1589

R6

Six unit residential

120

0.1589

R7

Seven unit residential

120

0.1589

R8

Eight or more unit residential

120

0.1589

MS

Miscellaneous

100

0.1324

CI

Non-residential (Commercial/Industrial)

200

0.2648

FL

Rural/Semi-serviced

35

0.0463

(5 hectares or more)

FS

Rural/Semi-serviced

75

0.0993

(0.2 hectares or less)

FM

Rural/Semi-serviced (between 0.2 & 5 hectares)

55

0.0728