ORDINARY MEETING of Council€¦ · 11. Total funding allocated by Council for this project is $450,000.00 at 56% funding assistance rate from Waka Kotahi- NZ Transport Agency and

ORDINARY MEETING of

Council

AGENDA

Time: 5:30 p.m. Date: Wednesday, 24 June 2020 Venue: Council Chamber

Level 2 16 Cobham Court Porirua City

MEMBERSHIP Mayor Anita Baker (Chairperson) Councillor Mike Duncan Councillor Euon Murrell Councillor Izzy Ford Councillor Faafoi Seiuli Councillor Moze Galo Councillor Josh Trlin Councillor Geoff Hayward Councillor Nathan Waddle Councillor Ross Leggett Councillor Kylie Wihapi

Wendy Walker CHIEF EXECUTIVE

ORDINARY COUNCIL MEETING AGENDA

24 JUNE 2020

Page 2

Table of Contents

1 Meeting Opening / Karakia .................................................................................................. 3

2 Apologies and Requests for Leave of Absence ................................................................ 3

3 Public Forum ........................................................................................................................ 3

4 Conflict of Interest Declarations ......................................................................................... 3

5 Notification of Extraordinary Business .............................................................................. 3

6 Confirmation of Minutes ...................................................................................................... 3

7 Report of the Mayor ........................................................................................................... 11

8 Kaumātua Korero ............................................................................................................... 11

9 Petitions ............................................................................................................................. 11

10 Committee Recommendations .......................................................................................... 12

10.1 Te Puna Kōrero - 4 June 2020 ............................................................................... 12

Long Term Plan 2021-51: Draft Strategic Direction and Framework

10.2 Te Puna Kōrero - 18 June 2020 ............................................................................. 13

Hearings and Deliberations Report for 2020 Rates Remissions and Postponment Policy Commerical Rates Postponment Reimbursement of Elected Member Expenses Policy

11 Reports ............................................................................................................................... 14

11.1 Disposal of 26 Grays Road, Pauatahanui ............................................................... 14

11.2 Adoption of 2020/21 Annual Plan ......................................................................... 111

11.3 Annual Plan 2020/21: Setting Rates ..................................................................... 210

11.4 Long-term Plan 2021-51: Draft Strategic Direction and Framework ...................... 215

11.5 Terms of Reference and Delegations Update ....................................................... 222

11.6 Land Acquisition - Kenepuru Drive/Bluff Road Shared Path ................................. 225

11.7 Strategic Risk Update........................................................................................... 230

12 Public Excluded ............................................................................................................... 250

12.1 Extraordinary Public Excluded Council Meeting - 28 May 2020 .......................... 250

12.2 Silverwood Claim ................................................................................................. 250


24 JUNE 2020

1 MEETING OPENING / KARAKIA

The Chairperson opens the meeting.

2 APOLOGIES AND REQUESTS FOR LEAVE OF ABSENCE

The Chairperson invites notice from members of: 1. Leave of absence for future meetings of the Porirua City Council; or 2. Apologies, including apologies for lateness and early departure from the meeting

where leave of absence has not previously been granted.

3 PUBLIC FORUM

Members of the public may attend Council or Committee meetings to express their views, either as individuals or as part of a deputation, subject to the following conditions: a) Any person wishing to participate in the public forum preceding the meeting shall

advise the Chairperson, or the Chief Executive, at least one clear day prior to the day on which the meeting is held, or later at the discretion of the Chairperson.

b) The Chairperson may decline requests for deputations or public speaking time that is repetitious or offensive.

The Chairperson has the power to limit the number of public speakers or deputations at a meeting, if the Chairperson feels that the number of requests received are too many to be heard at one meeting.

4 CONFLICT OF INTEREST DECLARATIONS

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

5 NOTIFICATION OF EXTRAORDINARY BUSINESS

The Chairperson will give notice of items not on the agenda as follows: Matters Requiring Urgent Attention as Determined by Resolution of the Council The reason why the item is not on the agenda; and The reason why discussion of the item cannot be delayed until a subsequent meeting. Minor Matters relating to the General Business of Council No resolution, decision or recommendation may be made in respect of the item except to refer it to a subsequent meeting of the Porirua City Council for further discussion.

6 CONFIRMATION OF MINUTES

Ordinary Council Meeting - 14 May 2020. Extraordinary Council Meeting - 28 May 2020.

EXTRAORDINARY COUNCIL MEETING UNCONFIRMED MINUTES 28 MAY 2020

EXTRAORDINARY MEETING

of Council

UNCONFIRMED MINUTES

Time: 8:50 am Date: Thursday, 28 May 2020 Venue: Council Chamber


Present Mayor Anita Baker (Chairperson) Councillor Izzy Ford Councillor Faafoi Seiuli Councillor Moze Galo Councillor Josh Trlin Councillor Geoff Hayward Councillor Nathan Waddle Councillor Ross Leggett Councillor Kylie Wihapi Councillor Euon Murrell

In Attendance Wendy Walker Chief Executive Andrew Dalziel Chief Operating Officer / Deputy Chief Executive Nic Etheridge General Manager Policy Planning and Regulatory Services Steven Perdia General Manager City Growth and Partnerships Alison Wiley Acting Chief Financial Officer Jack Marshall Senior Committee Advisor Phillip Simpson Procurement Consultation (Transport) Darrell Stratham Manager, Transportation, City Infrastructure Roy Baker Principal Advisor, Strategic Finance



Her worship Mayor Baker opened the meeting.


Moved: Mayor Anita Baker Seconded: Councillor Moze Galo

RESOLVED 2020/24 That the apology received from Cr Mike Duncan be accepted. CARRIED

3 PUBLIC FORUM

No members of the public attended the public forum.


No conflict of interest declarations were received.


No items on the agenda were received.

6 REPORT OF THE MAYOR

Nil.

7 KAUTMĀTUA KORERO

Nil.

8 PETITIONS

Nil.

9 PUBLIC EXCLUDED

RESOLUTION TO EXCLUDE THE PUBLIC Moved: Mayor Anita Baker Seconded: Councillor Euon Murrell

RESOLVED 2020/25 That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter 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 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 for the passing of this resolution

9.1 - Network Maintenance Contract - Roading

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

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

The meeting closed at 9:16 am.

................................................... ................................................... CHAIRPERSON DATE

ORDINARY COUNCIL MEETING UNCONFIRMED MINUTES

14 MAY 2020

ORDINARY MEETING

of Council

UNCONFIRMED MINUTES

Time: 8.30 a.m. Date: Thursday, 14 May 2020 Venue: Council Chamber


Present Mayor Anita Baker (Chairperson) Councillor Mike Duncan Councillor Faafoi Seiuli Councillor Izzy Ford Councillor Josh Trlin Councillor Geoff Hayward Councillor Nathan Waddle Councillor Ross Leggett Councillor Kylie Wihapi Councillor Euon Murrell

In Attendance Taku Parai Council's Kaumātua Wendy Walker Chief Executive Andrew Dalziel Chief Operating Officer / Deputy Chief Executive Jerry Wrenn General Manager People and Capability Roy Baker Principal Advisor Pandemic Response Nic Etheridge General Manager Policy Planning and Regulatory Services Lynlee Baily Manager Democratic Services


14 MAY 2020


The Mayor opened the meeting and invited Council’s Kaumātua to give a karakia.


Moved: Mayor Anita Baker Seconded: Councillor Izzy Ford

RESOLVED 2020/19 That apologies from Councillor Moze Galo be received and accepted. CARRIED

3 PUBLIC FORUM

The following member of the public addressed the meeting: George Hobson of Forest and Bird Youth Wellington. George requested that nature be at the heart of the Council’s decision-making. He outlined suggestions to support this request for example, but not limited to, weed control, habitat protection, fresh water quality enhancement.


No conflict of interest declarations were received.


No items not on the agenda were received.

6 CONFIRMATION OF MINUTES

Moved: Mayor Anita Baker Seconded: Councillor Ross Leggett

RESOLVED 2020/20 That the minutes of the Ordinary Council Meeting held on 23 April 2020 be confirmed as a true and complete record. CARRIED


Nil

8 KAUMĀTUA KORERO

Nil

9 PETITIONS

1. Nil


14 MAY 2020

10 COMMITTEE RECOMMENDATIONS

2. Nil

11 REPORTS

11.1 REVIEW OF COUNCIL COMMITTEE STRUCTURE The Council was presented with a report seeking a change to the Council’s Committee structure. Moved: Mayor Anita Baker Seconded: Councillor Faafoi Seiuli

RESOLVED 2020/21 That the Council: 1. Receive the report. 2. Agree to disestablish the Grants, Awards and Events Committee and transfer its

functions and delegations to Te Puna Kōrero. 3. Request the Remuneration Authority approve redistribution of that component of the

disestablished Chair’s salary ($1,000) allocated for additional responsibility.

CARRIED AGAINST: Councillor Hayward

11.2 VILLAGE PLANNING PROGRAMME - FUTURE OPTIONS The Council was provided with the options for the future delivery of Village Planning activities. Moved: Mayor Anita Baker Seconded: Councillor Geoff Hayward

RESOLVED 2020/22 That the Council: 1. Receive the report. 2. Approve Option Two which would:

• Pause Village Planning for two years and allow completion of the backlog of committed carryover projects;

• Review Village Planning carryover projects to identify projects that could be transitioned in to business as usual;

• Achieve savings of approximately $46,000 Opex per annum that could be diverted to recovery initiatives for two years;

• Review (prior to 2022) and recommend future changes to the Village Planning framework that address the programmes challenges.

CARRIED


14 MAY 2020

11.3 EXTENSION OF TIME, WELLINGTON WATER STATEMENT OF INTENT

An extension of time was sought from the Council for Wellington Water to deliver the final version of the Statement of Intent 2020-23 to Wellington Water’s governance body, the Water Committee Moved: Mayor Anita Baker Seconded: Councillor Ross Leggett

RESOLVED 2020/23 That the Council: 1. Receive the report. 2. Agree to an extension of time for Wellington Water to deliver the Statement of Intent

2020-23 to the Water Committee from 30 June 2020 to 31 July 2020.

CARRIED

The meeting closed at 9:08 a.m.

................................................... ................................................... CHAIRPERSON DATE


24 JUNE 2020


8 KAUMĀTUA KORERO

9 PETITIONS


24 JUNE 2020

Item 10.1 Page 12

10 COMMITTEE RECOMMENDATIONS

10.1 TE PUNA KŌRERO - 4 JUNE 2020

Membership: Councillor Ross Leggett (Chairperson), Mayor Anita Baker, Councillor Mike Duncan, Councillor Izzy Ford, Councillor Moze Galo, Councillor Geoff Hayward, Councillor Euon Murrell, Council's Kaumātua Taku Parai, Councillor Faafoi Seiuli, Councillor Josh Trlin, Councillor Nathan Waddle and Councillor Kylie Wihapi

THE COMMITTEE RECOMMENDS:

10.1.1 LONG TERM PLAN 2021-51: DRAFT STRATEGIC DIRECTION AND FRAMEWORK

RECOMMENDATIONS That Te Puna Kōrero: 1. Receive the report. 2. Endorse the draft strategic framework and proposed activity structure that supports it. 3. Agree to recommend that the Council approve the strategic direction, framework and activity

structure as the basis for the development of the city’s Long Term Plan 2021-51.


24 JUNE 2020

Item 10.2 Page 13

10.2 TE PUNA KŌRERO - 18 JUNE 2020

Membership: Councillor Ross Leggett (Chairperson), Mayor Anita Baker, Councillor Mike Duncan, Councillor Izzy Ford, Councillor Moze Galo, Councillor Geoff Hayward, Councillor Euon Murrell, Council's Kaumātua Taku Parai, Councillor Faafoi Seiuli, Councillor Josh Trlin, Councillor Nathan Waddle and Councillor Kylie Wihapi

THE COMMITTEE RECOMMENDS:

10.2.1 HEARINGS AND DELIBERATIONS REPORT FOR 2020 RATES REMISSIONS AND POSTPONMENT POLICY COMMERICAL RATES POSTPONMENT

RECOMMENDATIONS That Te Puna Kōrero: 1. Receive the report. 2. Receive the five submissions. 3. Receive one oral submission. 4. Note that all submissions have been acknowledged and, after the draft 2020 Rates

Remission and Postponement Policy is adopted on 24 June 2020, written responses will then be provided to submitters.

5. Recommend to Council to proceed with option 1 (recommended option) making the Commercial Rates Postponement available to all in the business community.

6. Recommended to Council to amend the Rates Remission and Postponement Policy to include Part 2B Commercial Rates Postponement.

10.2.2 REIMBURSEMENT OF ELECTED MEMBER EXPENSES POLICY

RECOMMENDATIONS That Te Puna Kōrero: 1. Receive the report. 2. Agree to recommend that the Council update the Reimbursement of Elected Member

Expenses Policy to reflect the current committee structure and expense approval structure as contained in the Porirua City Terms of Reference and Delegations 2019-2020.


24 JUNE 2020

Item 11.1 Page 14

11 REPORTS

11.1 DISPOSAL OF 26 GRAYS ROAD, PAUATAHANUI Author: Andrew McCarthy, Manager Commercial & Economic Development

Kaiwhakahaere Arumoni me te Whanaketanga Ohaoha Authoriser: Steven Perdia, General Manager City Growth & Partnerships

Pouwhakahaere Tipuranga Tāone me ngā Pātuitanga

PURPOSE The purpose of the report is to outline the history of the disposal process for 26 Grays Road and to seek direction as to the valuation for the site in order to progress the disposal in an equitable manner.

RECOMMENDATIONS That the Council: 1. Receive the report. 2. Agree the letter dated 31 March 2015 from the former Chief Executive intending to offer the

site for sale to the residents of Motukaraka Point who abut it has been superseded by the Council’s disposal decision on 24 August 2016.

3. Agree that valuation for the disposal of the site should be market value for a 5,986 sqm site that is situated within a designated Rural Zone under the current District Plan.

Reports contain recommendations only. Refer to the meeting minutes for the final decision.

BACKGROUND 1. On the 24 August 2016 Council resolved to dispose of the property, subject to revocation of

its Recreation Reserve status and the Chief Executive was instructed to offer Site 26 in the Disposals Portfolio in accordance with section 40 (2) of the Public Works Act to the previous owner or their successor at current market value. If the previous owner or their successor decline then the Chief Executive was delegated to negotiate, approve, finalise and sign an agreement for sale and purchase for Site 26 on the open market on the basis that the land first be offered at market value to a consortium of existing neighbouring owners.

2. The site is 5,986 sqm in size. It is principally a rectangular shaped allotment. The land falls with an easy gradient from the roadway in a southerly direction towards the Pauatanhui Inlet and is situated within a designated Rural Zone under the current District Plan.

3. In March 2015 Te Rūnanga O Toa Rangatira confirmed that it had no interest in the property. 4. The Reserve status was revoked on 18 May 2017 subject to the Council disposing of the

land at current market value. 5. The land is not subject to the Public Works Act as it was originally acquired by Hutt County

Council as a land exchange at the proposal of Richard King & Company Limited. The land was transferred to the Hutt County Council as a Recreation Reserve subject to the Reserves Act 1977, in April 1982.

6. There is no obligation from the Council in terms of offering the site to the adjoining owners before it is placed on the open market, however Council has proceeded down this path as a matter of consistency in the disposals portfolio and fairness to neighbouring properties.

7. Council instructed a Registered Valuer to establish the market value and received a valuation dated 14 February 2019, attached. The purpose of the valuation was to provide a market value for the site, in line with the terms of DoC’s approval for the Reserve revocation. The


24 JUNE 2020

Item 11.1 Page 15

valuer determined that the market value be based on development into a single house site. We subsequently requested the same Registered Valuer to provide an apportionment of the value if sold to the individual adjoining owners, report dated 22 August 2019, copy attached. Both methods provided a similar financial outcome of approximately $600,000.

8. Discussions between the Council and a consortium of adjoining owners (the Consortium) commenced in earnest from late 2018. Council offered the property at a purchase price of $600,000 to the Consortium on 17 June 2019. This offer was withdrawn on 13 December 2019 as the Consortium disputed the valuation and did not wish to proceed at that price.

9. The Consortium presented their own valuation dated 17 December 2019. The valuation is based on their interpretation of a letter sent by former Chief Executive, Gary Simpson dated 31 March 2015, which describes the intentions for disposing of the land being that it is not available for future sub division or housing, nothwithstanding the land’s current Rural zoning in the District Plan, and that it remains primarily in an unimproved rural state being added to the titles of the properties that acquire a portion. This resulted in a valuation figure of $180,000.

10. Letters dated 12 December 2019 between the Consortium and the Chief Executive and Mayor requested clarification of certain matters pertaining to the disposal at a Council level, including whether or not, the Council stands by representations made by the former Chief Executive in March 2015 or its resolution of 24 August 2016.

11. The Consortium has proposed that the entirety of the property be sold to Mt Kirk-Burnnand, for $180,000 with associate obligations on him to offer parcels to interested parties.

DISCUSSION AND OPTIONS 12. Direction is sought from the Council on how to proceed with the disposal in terms of

determining the valuation of the site for adjoining owners. Should it be in keeping with the letter from the previous Chief Executive dated 31 March 2015 or has that been superseded by the 24 August 2016 decision and the subsequent instructions for disposal? As part of the disposals process in 2016 all of the adjoining owners made submissions during the consultation process.

13. If the land is sold in line with the valuation provided by the Consortium, the Council will not have disposed of the site at its true market value and it will provide the Consortium with a significant financial windfall (in excess of $450,000) once they amalgamate the subdivided lots into their respective titles. That is, the Consortium interpretation of the letter from the former Chief Executive dated 31 March 2015 was that the site be valued as rural property, the valuation does not consider the “added value” of amalgamating to their existing titles. If adopted, this option would require DoC approval as the sale price will be below current market value.

14. The term Market Value is defined in International Valuation Standards 2017 as: the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties have each acted knowledgeably, prudently and without compulsion. Market Value of an asset will reflect its highest and best use. The highest and best use is the sue of an asset that maximises its potential and that it is physically possible, legally permissible and financially feasible.

15. Officer’s view is that the letter from the former Chief Executive dated 31 March 2015 was that the site be sold at a market price considering it would be amalgamated with adjoining titles, and that the decision of Council on 24 August 2016 carried forward that intent and now supersedes the letter.


24 JUNE 2020

Item 11.1 Page 16

16. Alternately, the Council could reconsider the whole disposal decision of 2016 on the basis that the original decision was incorrectly based on the land being subject to the Public Works Act. Now that it has discovered this is not the case the Council has no obligation to favour the Consortium above other members of the public, and that the decision on disposal could be to place the property directly onto the open market.

Options

Option One 17. The Council confirms the disposal of the site should be the current market value for a 5,986

sqm site that is situated within a designated Rural Zone under the current District Plan and that the letter dated 31 March 2015 from the former Chief Executive has been superseded by the disposal decision on 24 August 2016. That it delegates to the Chief Executive the power to negotiate, approve, finalise and sign an agreement for sale and purchase with the Consortium using the Council’s latest valuation dated 28 January 2020 (copy attached) as a guide, and otherwise on terms and conditions to the satisfaction of the Chief Executive or in the event of parties being unable to agree that the site is sold on the open market.

Option Two 18. The Council accepts the Consortium valuation dated 17 December 2019 as the value of the

site that is zoned Rural under the current District Plan, reverts to the former Chief Executive’s letter dated 31 March 2015 requiring each sub divided lot be amalgamated into existing titles with explicit restrictions on future development of housing for the larger lots and that it must remain primarily in an unimproved rural state. That it delegates to the Chief Executive the power to negotiate, approve, finalise and sign an agreement for sale and purchase with the Consortium at their valuation figure, and in the event of the parties being unable to agree the site be sold on the open market using Council’s valuation figures. Option 2 would require the Council to seek leave from DoC for this obligation if sold to the Consortium, as it would not achieve a true market value.

Option Three 19. The Council confirms that there is no obligation to make an offer exclusively to the

Consortium and that the site is placed directly upon the open market for sale by public auction, private tender or private treaty using Council’s valuation figures. That it delegates to the Chief Executive the power to negotiate, approve, finalise, and sign an agreement for sale and purchase at a purchase price and otherwise on terms and conditions to the satisfaction of the Chief Executive.

Recommended Option 20. It is recommended that Council support Option 1 and offer the site to the Consortium at the

current market value. This option fulfils the necessary obligation to achieve current market value as required by DoC under the revocation approval and in the event the Consortium do not purchase, move straight to an open market process.

CONCLUSION 21. This paper recommends that the Council proceed to sell the surplus Grays Road site at

market value to the Consortium, in the first instance, or if they do not wish to purchase then to the open market.


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Item 11.1 Page 17

SUPPORTING INFORMATION

CONTRIBUTION TO COUNCIL’S STRATEGIC DIRECTION The sale of the site will contribute towards meeting the objectives of the 2015 Council land Holdings Review which focused on ensuring council and the community secure the very best strategic outcomes from its landholdings.

FINANCIAL CONSIDERATIONS

Cost Normal conveyancing costs and possibly real estate agent fees.

Financial Implications If the site is sold based on the Consortium valuation figure of $180,000 the Council will have failed to achieve current market value for the site and will provide the Consortium a significant financial windfall in excess of $450,000. The latest market valuation, undertaken in January 2020 values the site at $655,000. The Council would be in breach of its Revocation obligations to DoC.

Ongoing Cost If the property is sold there will be no ongoing costs. If the property is retained by Council holding costs will be minimal however Council will effectively not receive annual rates from a valuable property.

Funding Source No new funding is required.

FOUR WELL-BEINGS Economic.

TREATY CONSIDERATIONS All treaty obligations have been met and in March 2015 Te Runanga O Toa Rangatira was offered the opportunity to purchase the site and declined interest.

SIGNIFICANCE Council resolved in 2016 to review its continued ownership of approximately 30 sites after a land holding review. It consulted widely as a part of that process and resolved to dispose of a portfolio of sites. Number 26 Grays Road was one of the above sites. The sale of 26 Grays Road is in itself is not significant, however the sale of the entire portfolio of sites could be significant as it will generate a large sum of money, which could be used for other Council projects or to reduce debt.

ENGAGEMENT AND COMMUNICATIONS

During the latter end of 2015 and into 2016 Council ran an extensive public consultation programme around the possible disposal of the 30 surplus sites along with public workshops, public meetings and formal hearings. All of the owners that make up the Consortium submitted responses during the consultation process supporting the disposal.


24 JUNE 2020

Item 11.1 Page 18

ATTACHMENTS 1. Letter dated 31 March 2015 - Gary Simpson 2. TelferYoung valuation dated 14 February 2019 3. TelferYoung valuation dated 22 August 2019 4. TelferYoung valuation dated 28 January 2020 5. Valuation Report - Colliers International 6. Extract Council Minutes 24 August 2016

ORDINARY COUNCIL MEETING ATTACHMENTS24 JUNE 2020

Item 11.1 - Attachment 1 Page 19














































































































































































24 JUNE 2020

Item 11.2 Page 111

11.2 ADOPTION OF 2020/21 ANNUAL PLAN Author: Roy Baker, Principal Advisor Strategic Finance

Authoriser: Wendy Walker, Chief Executive

Tumuaki

PURPOSE The purpose of this report is to present the Annual Plan for the 2020/21 financial year for adoption by the Council.

RECOMMENDATIONS That the Council: 1. Receive the report. 2. Agree that having fully considered the fiscal implications under Section 100(2) of the Local

Government Act (LGA), the Council will set projected operating revenues at a lower level than projected operating expenses for the 2020/21 financial year, and lower than the Long-term Plan (LTP), as a direct result of the fiscal impact that COVID-19 is forecast to have on the Council’s income.

3. Adopt the Annual Plan 2020/21 including the 2020/21 fees and charges. 4. Approve the carry forward of $25.5m worth of capital expenditure into the 2020/21 financial

year. 5. Delegate to the Chief Executive the authority to approve final page numbering and any minor

editorial changes to the Annual Plan 2020/21 prior to publication. Reports contain recommendations only. Refer to the meeting minutes for the final decision.

BACKGROUND 1. The development of the Annual Plan 2020/21 has been significantly impacted by COVID-19.

It is important to recap the journey to better understand the position we have landed with. 2. As part o/f the development of the 2018/38 LTP, it was determined that the Council would

“smooth” the impact of rate increases and set the rate increase level at 4.98% for each of the subsequent five years (2018/19 – 2022/23). The rate level of 4.98% is the rate applicable to the average ratepayer after allowing for 1% growth which has been the historical level of growth. Throughout this paper the rate numbers used are after growth i.e. for the existing ratepayers.

3. The 2018/38 LTP included moving to a balanced budget by 2022/23 (a one-year extension to the previously agreed target date.

4. When we started the 2018/19 budget, we were running an operating deficit of $3.7m per annum. The 4.98% rate level was designed to bring the budget back into balance and 1.6% of the 4.98% was required to achieve this.

5. The LGA deliberately established a 3 yearly LTP cycle such that a new council would inherit the 3rd year of the LTP and develop the new LTP in its second year of office. LTP’s are typically where extensive reviews of Levels of Service occur. Annual Plans are not the preferred vehicle to make significant level of services changes.

DISCUSSION AND OPTIONS


24 JUNE 2020

Item 11.2 Page 112

Introduction 6. Back in November 2019, the Council considered a revised capital programme to address

“must do” projects in both the 3 Waters and Roading activities. It was also signalled that with the opex challenges we had, the 4.98% rate level as per the LTP was not achievable. Management advised that based upon increased costs expected in 3 Waters and the likely impact of a renewal of the 5-year-old roading maintenance contract (with effect from 1 July) a rate increase of 6.75% would be required.

7. Management were tasked with reviewing costs to lower the indicated level, noting that any level of service changes would need to be considered as part of the following years LTP development.

8. In February, Council considered options around the rate levels and determined that the draft Annual Plan to be consulted on would be based upon a 6.5% rate increase with suggested savings in grants to lower the increase further.

9. Before this position was finalised, the impact of COVID-19 and a proposed shift to level 4 caused a rethink by the Council.

10. On March 24 Council resolved to stay with the LTP projected rate increase of 4.98% and to borrow to fund the 3 Waters and roading increases. As the rate level was as per the LTP Council also determined that it was not necessary to consult on a draft annual plan.

11. Subsequent to that decision the full impact on Councils’ revenues as a result of COVID-19 has become clearer and further work has been undertaken to produce the Annual Plan

12. As we developed the 2020/21 budget, our revenue and costs based upon business as usual could manage the 4.98% but increased costs through both Wellington Water and the renewal of the roading required maintenance contract (effective 1 July 2020) could not be absorbed and would see a rate of 6.75%

13. As with every budget there are always additional costs not allowed for when the LTP is developed, similarly we also strive to find additional revenue and efficiencies to offset increased costs.

14. As we are into the third year of the 2018/38 LTP, our cost and revenue basis has changed and a rate level of 4.98% is not sustainable. The new LTP will need to allow for higher rate levels or significant loss of service changes.

15. The table below shows the key cost and revenue changes that were presented to Council at the February workshop and sets out changes to our underlying operating cost structure.


24 JUNE 2020

Item 11.2 Page 113

Item $000 % Impact Cumulative % Smoothed % within 4.98%

Items within the smoothed 4.98% Rate Rise

Salaries & Wages per LTP 708 1.05% 1.05% LTP Audit 160 0.24% 1.29% Inflation allowed at 50% of berl rate 353 0.52% 1.81% 3 Waters agreed as part of LTP 180 0.27% 2.07% Bulk Water Increase 200 0.30% 2.37% Capitalised Interest - LTP 1,164 1.72% 4.09% Interest Higher Debt 670 0.99% 5.09% DD Move -400 -0.59% 4.49% Elections -100 -0.15% 4.34% Deprecation Revaluations - LTP 1,337 1.98% 6.32% 1.34%

Items not allowed for or fully covered within the 4.98% Rate Rise

Living Wage 325 0.48% 6.81% Mayor/Councillor increases 150 0.22% 7.03% Additional salary costs above LTP to meet market 121 0.18% 7.21% Additional Deprecation above LTP for 3 Water Revaluations 300 0.44% 7.65% MH Demolition 200 0.30% 7.95% Capitalised Interest - non LTP 142 0.21% 8.16% Lower Interest Income 119 0.18% 8.33% New costs 3 Waters & Roading costs 1,673 2.48% 10.81%

New savings

Interest expense reduced by lower interest rates -700 -1.04% 9.77% Additional Landfill Revenue -700 -1.04% 8.74% WWL Fee change -150 -0.22% 8.52% Additional revenue / cost savings -285 -0.42% 8.09%

Smoothed % within 4.98% -1.34% Draft Rate Increase to existing Ratepayers 6.75%

16. Subsequent to the February workshop we managed to reduce the rate increase to 6.5% and

as mentioned above, this was the position that Council landed upon and was due to consult with as a draft Annual Plan.

COVID-19 17. The arrival of COVID-19 has impacted the Annual Plan 2020/21. 18. It has seen significant falls in revenue in the current financial year and this is expected to flow

into the first half of the 20/21 Annual Plan. The impact on the Porirua community (job losses, business closures level 4 impacts, business’s revenues falling) has also seen the call for lower rate levels.

19. Council’s initial response was to confirm a draft rate increase of 4.98% (the original LTP level) and increase the deficit (by $1.2m) to fund the increase in costs for the core 3 Waters and roading infrastructure activities.

20. Management have reviewed the revenue assumptions used in developing the draft. We are forecasting for the remaining of the current financial year that our fees and charges are $2.3m below pre COVID-19 forecasts


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21. The move to alert level 1 in June should minimise impact on our non-rate income streams, however there will still be a tail to some of the concessions made during the lockdown period. We have reviewed each area of our activities to develop a realistic forecast of revenue from fees and charges, and subsidies and grants. The impact of this review is a drop-in revenue from normal activities and income levels for fees and charges of $1.4m. Should we return to a higher alert level, then the drop would be greater.

22. The review also highlighted income estimates in the resource consent area that had not been able to be achieved over the past few years. These have been adjusted accordingly to reflect realistic levels. This saw a further drop of $500k income, bringing the total change to $1.9m (a 2.8% equivalent rate impact).

23. Should revenue end up being higher than the Plan indicates then the deficit will be less than planned and the Council will not need to borrow as much as is currently estimated. This would flow through to benefit ratepayers to the 2021/51 LTP.

Further savings identified 24. In response to the fiscal pressures flowing from COVID-19, we have:

• Stopped or are in the process of winding down a number of contractors/consultants not involved in capital projects or filling current staff vacancies

• Imposed a freeze on appointments that are not customer facing or critical roles.

• Identified $300k savings in contractors/consultants/professional fees

• Identified $250k (by deferring activity) that can be redirected into recovery activities

• Revised the corporate training budget producing a $108k saving. 25. In addition, we have undertaken a review of our capital programme for 2020/21. COVID-19

has seen most capital works stop since mid/late March. This has resulted in a much higher level of carry forwards than we would expect in a normal year. We are forecasting $25m being carried forward (refer to appendix 3 for details at a programme level) . The annual capital programme itself is $35m. We have questioned whether we could deliver $60m in a year considering

• Our track record of carry forwards

• COVID-19 is likely to see a slow start resulting in the first quarter

• The shovel ready projects may distract or divert resources

• With all councils wanting to be active, contract resources may be difficult to obtain. 26. We are therefore recommending that the annual 2020/21 capital budget be reduced by 25%

which will produce a $8.5m cash and 1.3% rate equivalent saving. 27. At the time of adopting the Annual Plan, we will not have identified in detail the exact projects

that will be impacted, as this will take some time. We will therefore detail the total $35m in the Plan and identify a $8.5m reduction to be made but the financials will reflect the operating saving resulting from the reduction. In effect this operating saving will reduce the deficit in the Plan.

28. We had identified potential savings of $600k in salary and wages through a wage freeze across the total organisation.

29. Unfortunately we have been unable to reach agreement with the PSA to forgo scheduled across the board salary increases for staff covered in their collective agreement. Freezing wages for all but a cross section of largely salaried staff is a completely inequitable outcome which is further exacerbated as blue-collar staff outside PSA coverage on minimum to modest rates of pay would also not receive an adjustment. In this situation a wage freeze is


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untenable. With this in mind it is proposed to adopt a similar approach to that recommended by the State Services Commission to central government agencies.

30. Council’s focus will be on pay restraint with minimal discretionary wage adjustments. We will continue to pay the living wage and make relativity adjustments so that modestly paid staff and frontline roles are not disadvantaged. We will continue to address any identified gender and ethnic pay inequities and ensure outcomes across individual employment agreements and collective agreements covering the same roles are equitable.

31. There will typically be no pay increases for senior staff and no increases for executive staff under any circumstance. The cost of the above-mentioned adjustments is expected to be in the region of $500,000 from a budget of $600,000 resulting in savings of $100,000.

32. We will no longer be contributing to the Regional Amenity Fund. This results in a $51k saving.

Principle Approach to the Annual Plan 33. There is a clear desire of Council to keep the rate increase as low as possible. The Annual

Plan 2020/21 is included as appendix 1 that incorporates the following principle approach to the upcoming year.

34. The impacts of COVID-19 on our revenue should see rate levels increase, however it is acknowledged that this year’s Annual Plan cannot be a normal plan and flexibility and compromise in approach and impact will be required. This is also addressed under the Balanced Budget section of this report below.

35. There is also a number of additional savings we are exploring (see below) but there is uncertainty about the quantum at the time of writing.

36. The recommended approach is therefore to not increase the rate level but fix the rate increase at 4.98% (as per Councils decision of 24 March) and use the deficit as the balancing item. Practically this will see the deficit increasing as a result of the COVID-19 revenue loss and how we approach the potential savings. The increase in deficit will be funded by way of increased debt.

37. This will present a worst-case scenario but during the 2020/21 financial year if the further savings can be achieved then the actual deficit will be less.

38. Our operating deficit based upon the Councils decision of 24 March was $3m (our normal 4.98% level) plus $1.2m infrastructure cost, i.e. $4.2m. As a result of COVID-19 revenue changes, offset by savings identified the deficit for 2020/21 will sit at $5m which will need to be reflected in future rate levels to bring us back to a balanced budget.

A balanced budget 39. Section 100 and Clause 14 of Schedule 10 of the LGA requires the Council to have a

balanced budget for each year of its LTP. The Act however does allow for Council to not achieve a balanced budget if it resolves that it is financially prudent to do so.

40. Balanced budget discussions generally occur when setting the LTP. The impact of COVID-19 on all councils in New Zealand has raised this as an issue and challenge in a non LTP year. Below is an extract for the Council to consider from a recent LGNZ/SOLGM update to the sector that is both relevant and informative given the current context. Balanced budget requirement and financial prudence We are aware that some councils are considering borrowing to fund operating costs given the extraordinary situation they face. Councils are therefore reminded that they are obliged to manage their financial dealings prudently and that includes consideration of the current and future interests of the community.


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A council could decide to set an unbalanced budget for 2020/21 if it considers it financially prudent to do so after considering:

• s.101(1) and (2) of the LGA02; and • the matters stated in section 100(2)(a) to (d) of the LGA02. Prudence requires an overall assessment of circumstances and decision-making that takes a long-term view with consideration of future financial and non-financial consequences of the decision. A short-term decision in response to Covid-19 (e.g. reducing rates and/or service cuts) might seem prudent now, but may actually impact badly on the community’s longer-term capacity to recover – as the economic impacts of Covid-19 are likely to be felt beyond the 2020/21 financial year. Councils may wish to consider options for balanced and unbalanced budgets in the next and following few years to ascertain which is the most prudent approach and that which promotes the interests of the community, noting that:

• an unbalanced budget in one year will have future financial implications that will need

to be managed in later years; • consideration will involve a balance between supporting local economies now while

maintaining appropriate investment levels for the future; and • councils may consider it is too early to assess the effects of government support on the

community and accordingly whether there is a need to run an unbalanced budget. The decision to set an unbalanced budget should be made before the annual plan is adopted. The resolution should record the council’s consideration of the matters identified above. Depending on what the budget for the relevant year in the LTP is, a desire to set an unbalanced budget may also require annual plan consultation. The consultation material should set out why the Council considers an unbalanced budget to be desirable, again with reference to the matters above. It should also provide an options analysis that complies with s.77 of the LGA02. If the unbalanced budget decision involves materially funding operational expenditure from debt, this may be at variance with the revenue and financing policy and may need to be addressed by either an amendment to the policy (requiring consultation) or compliance with s.80 of the LGA02. Note also that the decision to borrow money other than provided for in the LTP cannot be delegated and must be made by the full council [refer to cl.32(1)(c) of Schedule 7 of the LGA02].

41. Our current LTP saw Council achieving a balanced budget by 2022/23. By using the deficit as a tool in keeping rates at the previous indicated 4.98% for 2020/21, the deficit has increased and will require the target date of 2022/23 extended or rates increasing higher than projected in future years. This is not a decision Council needs to make now but is one that will need to be addressed as part of the 2021/51 LTP discussions and considerations.

42. Standard and Poors have issued a position paper on the impacts of COVID-19 and this is attached for Council’s information. Standard and Poors, while understanding the impacts COVID-19 has on revenues and pressure on rates, they do not generally favour a council debt funding its basic operational costs. They have noted a number of councils within New Zealand have revised their rating level as a result of COVID-19. Below is a recent table of council changes included in their attached report (appendix 4).


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43.

Non-financial information Fees and charges 44. We continue to increase our fees and charges in line with the LTP projections. The budget

has allowed for these increases which amount to additional income of $471k (a .7% rate equivalent saving).

45. The 2020/21 fees and charges will increase by 3% for regulatory and 1.5% for the remaining fees from 1 July 2020. The other changes include: a. Senior Concession card added for Cannons Creek Pool – introduced as already

offered at the Arena Pool b. Child + adult and child + spectator fees removed from Arena pool as they are just the

sum of the individual fees c. Arena stadium and room hire fees added – previously not included d. Double disinterment fee added for the cemetery – fee already existed but wasn’t in the

schedule e. New LIM and property request fees added f. Hall hire fees added – fees already existed but weren’t in the schedule g. Building Assurance fee structure changed. Deposits removed and replaced with fees

for various services. No change to final amount paid, but new system is more transparent

h. Resource Consent fee structure changed. Deposits increased by more than 3% as they weren’t sufficient to cover the work done. Some fees replaced with staff hour fees. No change to final amount paid

i. Pātaka added two new rooms for hire that were previously occupied by staff. Also added daily and 2+ daily rates for all rooms, which already existed but weren’t in the schedule

j. All sports fields and court fees frozen at 2019/20 levels to help sports clubs in wake of COVID-19


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k. Kirikiti and cricket combined as the fees are the same l. Road Corridor Access Request fees added – fees already existed but weren’t in the

schedule. 46. A consolidated schedule of fees and charges is included as appendix 2. These changes will

be updated on our website and publicly notified in the Kapi-Mana on 7 July 2020. 47. While it is not considered as part of the annual plan fee setting, the fees for the landfill are

likely to change during the year. These fees are set by the Landfill and Wastewater Treatment Plant joint committee (WCC and PCC).

48. At the time of writing the Government is debating legislation that would result in the cost of carbon levy increasing by $10/tonne. Such an increase would result in an equivalent increase in our landfill charges to customers. The landfill operates as a self-funding activity and does not have any impost on our rate levels. The budget for the landfill operation in this annual plan is based upon the current carbon levy. Should it increase our landfill charges will increase appropriately to offset the increased cost. This would result in the actual revenues and costs differing from the budgets in this plan, but the nett operating result should be the same

Services for our City 49. Levels of service are agreed by the Council as part of the LTP process through the

Statement of Service Provision. We call this ‘Services for our City’. 50. In the intervening years between the LTP we must keep the measures adopted but are able

to adjust targets if necessary. We also have the opportunity to add new measures and targets. This year the following changes and additions to this section include: a. Adjusted the target for noise control complaints responded to within 1 hour from 100%

to 95% due to the volume and type of complaints we receive. b. Reduced the target for percentage of residents aware of the village planning

programme from 60% to 30% as we are winding down the village planning programme for the coming year.

<page break>


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CONTRIBUTION TO COUNCIL’S STRATEGIC DIRECTION The issues in this report contribute to the strategic priorities of:

• A growing prosperous and regionally connected city

• Children and young people at the heart of the city

• A great village and city experience

• A healthy and protected harbour and catchment

Annual Plans are a subset of the LTP that provides integrated decision-making and coordination of resources for the Council, including setting the strategic direction and priorities.


Financial Implications The Annual Plan reflects the unusual fiscal impacts flowing from COVID–19 and sees Council increasing the deficit and increase in borrowings to balance the need to increase rate levels as an exception to its normal practise. The ongoing impacts of both higher debt and deficit levels will be addressed as part of the development of the 2021/51 LTP. The smoothing approach for rate increases adopted as part of the LTP targeted 4.98% for the first five years between 2018/19 and 2023/24. While the overall rate increase remains at 4.98%, the average impact on the residential, commercial, industrial and rural sectors will differ from last year as a result of the recent revaluations and the different cost impacts across services including the transitional changes to both the rural, commercial and shopping plaza differentials introduced as part of the 2018/38 LTP. For further clarity, the 4.98% rates increase (5.98% less 1% for growth) is the total increase in rating dollars ($4.048m) needed to provide the services set out in the annual plan budgets. New properties added to the property database since 1 July 2019 are estimated to contribute $677,000 of the increase with existing ratepayers contributing $3.371m.

Group Average % increase Average $ increase

Residential 7.25% $233.87

Rural ( less than 50Ha) 6.66% $210.83

Rural ( 50Ha or greater) 8.49% $483.29

Hongoeka community 3.61% $58.36

Commercial -1.14% -$99.12

Industrial 6.46% $541.72

Motels 4.35% $869.51

Shopping Plaza -7.67% -$10,867.37 The ongoing impacts of both higher debt and deficit levels will be addressed as part of the development of the 2021/51 LTP.


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At the time of writing, Te Puna Kōrero have concluded their deliberations on the recently consulted changes to the Rates Remission Policy and have recommended to Council that the Commercial Rate deferment scheme be approved. On the basis that council accepts the recommendation we have incorporated into the Annual Plan finances the impact of the policy change. We have assumed that 75% of those eligible for this will take it up. The financial impact of this is all balance sheet related and both debt and debtors $13m higher than if the scheme was not approved. The scheme itself is self-funding and there will be no rate impact for existing ratepayers Should Council not approve the scheme we can adjust the financials accordingly as it does not impact rates. If the scheme is approved and the uptake is either greater or less than the assumed 75%, then our actual debt and debtors levels will vary from the budget.

Funding Source In addition to our normal income sources, we will be increasing debt to cover the operational shortfall.

STATUTORY REQUIREMENTS The Annual Plan 2019/20 represents minor adjustments to year 3 of the LTP. The Annual Plan 2020/21 will be made available to the public no later than 24 July 2020, and copies will be sent to the Office of the Auditor-General, the Secretary, and the Parliamentary Library within this same timeframe.

FOUR WELL-BEINGS This paper contributes to the ‘four well-beings’ of social, economic, environmental and cultural in that the Council’s strategic priorities sought through the LTP and annual plans contribute to this framework.

TREATY CONSIDERATIONS As there is minimal change here are no Treaty implications. The Council will continue to involve Ngāti Toa in a range of strategic and operational issues affecting the city.

SIGNIFICANCE The adjustments to year 3 (2020/21) of the LTP have been assessed against the Council’s Significance and Engagement Policy (the Policy). This is in terms of any significant alteration of the strategic direction, Financial Strategy or major programmes of work set in the LTP. The assessment concluded that the changes outlined in the report do not trigger the Policy.

ENGAGEMENT AND COMMUNICATIONS The Council website is up to date with information on the process. Changes to the LGA that mean the Council can choose not to consult if there are no significant changes. Advice on the Annual Plan will be communicated by a press release, and through our regular channels.

ATTACHMENTS 1. Annual Plan 2020/21 2. 2020-21 Fees and Charges Schedule 3. Capital Programme 4. Covid-19's Effects Will Pressure New Zealand Council Ratings

































































































ORDINARY COUNCIL MEETING ATTACHMENTS 24 JUNE 2020


ORDINARY COUNCIL MEETING ATTACHMENTS 24 JUNE 2020

















































































24 JUNE 2020

Item 11.3 Page 210

11.3 ANNUAL PLAN 2020/21: SETTING RATES Author: Zach Morton-Adair, Development Agreement Advisor

Kaiwhakahaere Kirimana Whanaketanga Authoriser: Alison Wiley, Manager Risk and Assurance (Acting General Manager

Corporate Services/CFO) Kaiwhakahaere Arotake A-Roto

PURPOSE The purpose of this report is to set the rates for the coming 2020/21 financial year.

RECOMMENDATIONS That the Council: 1. Receive the report. 2. Agree in pursuance of the exercise of powers conferred on it by Section 23 of the Local

Government (Rating) Act 2002 and any other empowering provisions, resolves to set the following rates in respect of the 2020/21 financial year:

GENERAL RATES SET DIFFERENTIALLY Under section 13(2)(b) of the Local Government (Rating) Act 2002, a general rate is made on every rating unit, assessed on the capital value of all rateable land in the district and on a differential basis, in accordance with the following differentials as identified in Council’s Funding Impact Statement:

GROUP Cents per Dollar of Capital Value (GST

inclusive) Residential

Group 01 0.32977

Business Group 13 - Business 1.08163

Group 15 - Motels 0.50454

Group 16 - Shopping Plazas 0.95962

Rural

Group 19 – Under 50ha 0.24732

Group 20 – 50 Ha & greater 0.23084

Group21 – Hongoeka Community 0.23084

3. Uniform Annual General Charge

Under section 15(1)(b) of the Local Government (Rating) Act 2002, a uniform annual general charge of $420.00 (GST inclusive) per separately used or inhabited part of a rating unit.

4. Water A targeted rate for water supply, set under section 19 of the Local Government (Rating) Act 2002, of:


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• $2.20 (GST inclusive) per cubic metre of water consumed on any rating unit situated within Scheme 1, 2, and 3, as identified in the Funding Impact Statement, which has been fitted with a water meter.

For rating units not charged for water by meter, a differential targeted rate for water supply, set under section 16(3)(b) and (4)(b) of the Local Government (Rating) Act 2002, of:

• $401.56 (GST inclusive) per separately used or inhabited part of any connected rating unit in the City. This is a decrease of $4.59 against the 2019/20 rate of $406.15.

• $200.79 (GST inclusive) per separately used or inhabited part of any serviceable rating unit in the City. This is a decrease of $2.29 against the 2019/20 rate of $203.08.

5. Sewage Disposal A targeted rate for sewage disposal, set under section 16(3)(b) and (4)(a) of the Local Government (Rating) Act 2002, of:

• $447.92 (GST inclusive) on each water closet or urinal connected directly or through a private drain to a public sewerage drain This is an increase of $14.10 against the 2019/20 rate of $433.82;

• Provided that in the case of Residential properties – the condition that all the residential rating units used exclusively or principally as a residence of not more than one household shall be deemed to have not more than one water closet or urinal applies.

6. Kerbside Recycling A targeted rate for the kerbside recycling collection service, set under section 16(3)(b) and (4)(a) of the Local Government (Rating) Act 2002, of:

• $67.00 (GST inclusive) per separately used or inhabited part of a rating unit in the City and rural areas to which the kerbside recycling collection service is provided. This is a decrease of $6.27 against the 2019/20 rate of $73.27.

7. City Centre Development Rate A targeted rate for City Centre Development and Marketing, set under section 16(3)(b) and (4)(b) of the Local Government (Rating) Act 2002, of:

• 0.053 cents (GST inclusive) in the dollar of capital value on all rating units in the following differential groups: Group 13- Business, Group 15 –Motels and Group 16- Shopping Plazas. This is a decrease 0.00861 cents against the 2019/20 rate of 0.06161.

8. Pumped Pressure Sewerage and Water Reticulation for Pauatahanui Village A targeted rate for Pumped Pressure Sewerage and Water Reticulation for Pauatahanui Village, set under section 16(3)(b) and (4)(a) of the Local Government (Rating) Act 2002. The charge is calculated based on 50% of the total capital cost that relates to the construction of the Pumped Pressure Sewerage and Water Reticulation for Pauatahanui Village and will be a fixed charge of $779.31 (GST inclusive) per annum for 25 years for every unit able to be connected or serviced by the scheme. This rate remains unchanged from previous years.

9. DUE DATES AND ADDITIONAL CHARGES ON RATES Instalment Penalty


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Under section 24 of the Local Government (Rating) Act 2002 the instalment due dates are set out in the table below. Under section 57 and 58(1)(a) of the Local Government (Rating) Act 2002, a 10% penalty will be added to any portion of the current instalment that remains unpaid after the due date as shown in the table below:

Instalment Due Date Penalty Date 1 20 August 2020 21 August 2020

2 20 November 2020 23 November 2020

3 22 February 2021 23 February 2021

4 20 May 2021 21 May 2021

10. Additional Arrears Penalty

Under section 57 and 58(1)(b) of the Local Government (Rating) Act 2002, an additional 10% penalty will be added on 19 August 2020 to any rates remaining unpaid at 6 July 2020 from previous financial years. Provided that: Where rates are being paid by regular and reoccurring automatic payments, direct debits or other means agreed1 by Council sufficient to pay all rates by 30 June 2020, instalment penalties will not be added if current years rates are unpaid at the time of adding instalment penalties due to the timing of the regular payments; or Where a rate account is in arrears and an arrangement to pay the rates over time has been made with and to the satisfaction of Council, and the rates are being paid by regular and reoccurring automatic payments, direct debits or other means agreed by Council, instalment and arrears penalties will not be added if rates are unpaid at the time of adding instalment and arrears penalties.

• Where rates are owing for the first instalment for any rating unit, penalties will not be added for that instalment subject to the full year’s rates being paid by the last day for payment without penalty of the second instalment.

Council reserves the right to determine what regular and reoccurring payments are and what a satisfactory payment arrangement is.

11. Metered Water Supply - Due Dates and Additional Charges Water invoices will be issued separately and will be payable on or before the “Due Dates”. Special (final) readings will be due and payable immediately. Due dates for metered accounts with the exception of residential and hospitals2:

1 A suitable agreement exists between Council and the Ratepayer. In the absence of a suitable arrangement, penalties will be charged as set out in the resolution. 2 Invoice issued monthly for hospitals, two monthly for commercial and six monthly (June and December) for residential. These will be payable on or before the 20th of the month.


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Item 11.3 Page 213

Under section 57 and 58(1) of the Local Government (Rating) Act 2002, a 10% penalty will be added to any part of an invoice that remains unpaid after the due date for payment of the invoice. The penalty will be 10% of the unpaid invoice and will be imposed on the penalty dates for each period as shown in the tables in this section. Provided that: Where a metered water account is in arrears and an arrangement to pay the rates over time has been made with and to the satisfaction of Council, and the rates are being paid by regular and reoccurring automatic payments or other means agreed3 by Council, penalties will not be added if water rates are unpaid at the time of adding penalties. Council reserves the right to determine what regular and reoccurring payments are and what a satisfactory payment arrangement is.

12. Metered Water Supply – Additional Water Charges Penalty Under section 57 and 58(1)(b) of the Local Government (Rating) Act 2002, an additional 10% penalty will be added on 19 August 2020 to any water charges remaining unpaid on 6 July 2020 from previous financial years.

13. Rates Uneconomical to Collect Under section 54(1) and 54(2) of the Local Government (Rating) Act 2002, rates assessed on a rating unit with a value less than $100 may be deemed by Council uneconomical to collect. If Council decides, under subsection (1), not to collect the rates, then the ratepayer of the rating unit is not liable for paying the rates nor will any penalties be added to the unpaid rates.

3 A suitable agreement exists between Council and the Ratepayer. In the absence of a suitable arrangement, penalties will be charged as set out in the resolution.

Area Water meter read during Due date Penalty dateAugust 2020 21 September 2020 23 September 2020

CBD October 2020 20 November 2020 24 November 2020Kenepuru December 2020 20 January 2021 22 January 2021Titahi Bay/ February 2021 22 March 2021 24 March 2021Takapuwahia April 2021 20 May 2021 24 May 2021

June 2021 20 July 2021 22 July 2021September 2020 20 October 2020 22 October 2020

Porirua East November 2020 21 December 2020 23 December 2020Mana/Camborne January 2021 22 February 2021 24 February 2021Plimmerton/Pukerua March 2021 20 April 2021 22 April 2021Bay/Whitby/Papakowhai May 2021 21 June 2021 23 June 2021

July 2021 20 August 2021 24 August 2021


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Item 11.3 Page 214


CONTRIBUTION TO COUNCIL’S STRATEGIC DIRECTION Setting of rates enables Council to collect rates and fund its Activities thereby contributing to all the strategic focus areas as outlined in the adopted 2020/21 Annual Plan. a. A growing prosperous and regionally connected city

b. Children and young people at the heart of the city

c. A great village and city experience

d. A healthy and protected harbour and catchment”


Financial Implications With the adoption of the 2020/21 Annual Plan, Council needs to adopt the rates resolution to fund the Activities that Council has consulted on. Council is seeking to raise $85.3 million from rates revenue including GST to fund Council activities. This is approximately 69% of Council's cash operating revenue.

STATUTORY REQUIREMENTS Under the Local Government (Rating) Act 2002, Council must set rates and due dates for rates for any particular year by passing a resolution of Council before the start of the new rating year i.e. prior to 1 July of that rating year. This paper sets out this resolution to enable Council to set and collect rates to fund its operations for the 2020/21 financial year. The setting of rates as stated in this paper is consistent with the Revenue & Financing Policy and the Funding Impact Statement as adopted in the 2018-38 Long-term Plan.

TREATY CONSIDERATIONS There are no Treaty implications identified in relation to the issues in this report.

SIGNIFICANCE The issues in this report in relation to the Council’s Significance and Engagement Policy have been considered as part of the Annual Plan process and consultation.

ENGAGEMENT AND COMMUNICATIONS As part of the Annual Plan process, Council has decided not to consult with the public as it was consulted on extensively as part of the adoption of the 2018-38 Long-term Plan and there are no major changes from year 3 of the LTP.

ATTACHMENTS Nil


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Item 11.4 Page 215

11.4 LONG-TERM PLAN 2021-51: DRAFT STRATEGIC DIRECTION AND FRAMEWORK Author: Michelle Macdonald, Manager Strategy & Policy

Kaiwhakahaere Rautaki me te Kaupapahere Authoriser: Nicola Etheridge, General Manager Policy Planning and Regulatory

Services Pouwhakahaere

PURPOSE The purpose of this report is to present the Long-term Plan 2021-51 strategic direction, framework and proposed activity structure for approval in order to proceed to the detailed planning and development of associated documents, plans, strategies, policies, projects and performance objectives.

RECOMMENDATIONS That Council: 1. Receive the report. 2. Note that Te Puna Kōrero at their 4 June 2020 meeting endorsed the draft Long-term Plan

2021-51 strategic framework and associated activity structure. 3. Approve the strategic framework and activity structure to remain in draft as the basis for the

development of the city’s Long-term Plan 2021-51. Reports contain recommendations only. Refer to the meeting minutes for the final decision. BACKGROUND 1. The Long-term Plan 2021-51 (LTP) is in the process of being reviewed. There are a number

of projects, plans, policy and strategy components within this that are delivered from across the organisation in preparation for the formal consultation of the proposed LTP in March-April 2021.

2. The purpose of the LTP is to describe the activities of the Council and the priorities and outcomes of the city, and to provide integrated decision-making and coordination of resources. The LTP must demonstrate a long-term focus for the Council’s decisions and activities and a basis for accountability to the community (LGA, Section 93).

3. One of the first steps is setting the strategic direction of the city and organisation. This was workshopped with the Council on 13 February 2020 and officers then went away and prepared a draft strategic framework capturing this discussion, holding a further workshop on 14 May 2020 to present the draft framework.

4. As a result of the discussion at the 14 May 2020 workshop some further refinement has occurred, and is now being presented to Council as a final draft.

5. With the benefit of using the initial draft strategic framework, officers have been developing work on how best to describe the Council’s activities to ensure that they align clearly with the priorities and outcomes sought. Once an activity structure is in place, managers can start the detailed planning of their respective activities. This report presents a proposed activity structure for consideration in order to take this next step.


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DISCUSSION

Strategic direction 6. In 2015, as part of the review of the LTP, a new strategic framework was adopted by the

Council reflecting the priorities and focus for the city at that time. It included growth, prosperity and connectiveness, harbour and catchment health and restoration, children and young people, and great village and city experiences.

7. These priorities were refreshed but largely remained the same when they were reviewed as part of the current LTP 2018-38. The Council at that time did however want to emphasise the growth, prosperity and connectiveness priority.

8. A lot of change has occurred in the city since then. We now facing a population projection double what we have planned for in past LTP’s. This has prompted the need to revisit our priorities in order to respond to the challenges the city is facing. Challenges that include faster growth, an aging infrastructure network, increased environmental standards and expectations from the community, affordability of services, climate change and central government’s policies, work programme and priorities, including the four wellbeings.

Overview of 2021-51 strategic framework 9. The draft strategic framework is included as Attachment 1. The framework has been

developed with themes that are important to the Council. Themes such as children and young people at its heart, a thriving economy, education and employment, climate change, liveability, healthy environment and diversity in housing options.

10. The draft strategic framework is set out under three “pillars”, being: a. Our people – we are diverse & inclusive – a city with lifelong economic and social

opportunities b. Our harbour – we have a healthy harbour and catchment – a thriving natural

environment c. Our home – we build to last & adapt to change

11. Within the pillars are a series of outcomes the Council is seeking, along with the strategic priorities that will focus Council to achieve these outcomes over time.

LTP activity structure 12. An activity structure has been developed using the draft strategic framework as a basis. The

grouping of activities is an important step in beginning to link our outcomes with the impacts we fund as we work towards our outcomes so we can measure what difference are we making.

13. There are four activities that we must report on (3 waters and roading), but it is up to us how we incorporate these into our activity groups. If we want to maintain the strong link from outputs to impacts to outcomes, then we need strong links from our activity groups to our outcomes. The outcomes have therefore been our starting point, with the aim to clearly demonstrate this link.

14. Included as Attachment 2 is the proposed activity structure. This structure proposes 17 groups of activities and demonstrates which “pillar” each group of activities primarily contribute to.

15. The two significant departures in this proposed activity structure from the current LTP are the introduction of two new groups of activities – ‘Te Awarua-o-Porirua Harbour and catchments’, and ‘Sustainability and resilience’ respectively.

16. Within ‘Te Awarua-o-Porirua Harbour and catchments’ would sit the Harbour Strategy along with investment in harbour and stream, and to support healthy urban waterways. It also


24 JUNE 2020

Item 11.4 Page 217

suggests more resourcing for stricter monitoring and compliance, working groups and education for contractors.

17. Within ‘Sustainability and resilience’ would sit the establishment of a carbon accounting system and to look at adaptation planning, mitigation and begin informal community engagement.

18. The other shift the structure proposes is to move the existing Property Activity into a back-office function. This will cause an amount of general rates to move to targeted as the Property costs need to be allocated to all the remaining activities. This change would mean Rural rates will decrease as rural ratepayers generally do not pay targeted rates for water supply or wastewater.

19. To counter this impact, we could amend the allocations for BTG where there is a disproportionate allocation of costs to the 3 Waters groups of activities and therefore targeted rates. We agreed at the last LTP not to change the allocations for BTG as it would have impacted Rural rates disproportionately. By making both these changes at the same time there is a large offsetting impact and therefore the net impact is not significant to Rural ratepayers.

20. The second page of Attachment 2 shows how these activities contribute to other areas, along with the four wellbeings. This will be developed further and used in the proposed LTP, and will satisfy requirements under the Act.

CONCLUSION 21. The city is experiencing a shift from medium to high growth and the 2021-51 draft strategic

framework aims to respond to this and prepare the city and its people as we move forward into the next decade and beyond.

22. The change in direction means we need to adjust how we do business to ensure the outcomes within the draft strategic framework are met in the short, medium and long term. The proposed activity structure sets out how this can be achieved by adjusting our activities and budgets for further development with officers as we look ahead to the December 2020 deadline.


24 JUNE 2020

Item 11.4 Page 218


CONTRIBUTION TO COUNCIL’S STRATEGIC DIRECTION The issues in this report contribute to the strategic priorities of: a. A growing prosperous and regionally connected city b. Children and young people at the heart of the city c. A great village and city experience d. A healthy and protected harbour and catchment The LTP provides integrated decision-making and coordination of resources for the Council, including setting the strategic direction and priorities.


Cost The completion of the review of the Long-term Plan is a budgeted cost.

STATUTORY REQUIREMENTS There are no statutory obligations in relation to this report and its contents. All statutory obligations required under Part 7 of the Local Government Act, and Schedule 10, in relation to the development of the LTP will be observed.

FOUR WELL-BEINGS This paper contributes to the ‘Four well-beings’ of social, economic, environmental and cultural in that the LTP will recognise the broader role of local government in fostering liveable communities, as well as providing core infrastructure and services.

TREATY CONSIDERATIONS Ngāti Toa will be engaged and consulted with as part of the wider LTP review later in the year, however a number of Ngāti Toa aspirations have been reflected in the draft strategic framework and proposed activity structure included in this report.

SIGNIFICANCE This report does not trigger the Significance and Engagement Policy.

ENGAGEMENT AND COMMUNICATIONS A communications and engagement plan for the LTP will be workshopped separately with the Council later in the year. We intend to incorporate consultation on this framework into the wider formal consultation on the LTP between March-April 2021.

ATTACHMENTS 1. Strategic Framework of Council - Final Draft 2. LTP 2021-51 activity structure


24 JUNE 2020




Our people We are diverse & inclusive – a city with lifelong economic & social opportunities

Our harbour We have a healthy harbour & catchment – a thriving natural environment

Our home We build to last & adapt to change

Democracy Meetings Elections Representation review Civic functions District licensing committee

Community libraries Library service E-services Reference collections

Stormwater Pipes, inlets & outlets Detention ponds & wetlands Hydraulic neutrality

Parks & reserves Green spaces & nursery Playgrounds & dog parks Walkways, beaches & harbour Sportsfields & outdoor courts Crematorium & cemetery

Environmental, building & city planning District planning Building assurance Resource consents & monitoring

Economic development City centre Local economy Tourism Strategic investment

Pātaka Museum Exhibitions & education Culture & heritage Community space

Arena, pools & events Te Rauparaha Arena Arena Aquatics Arena Fitness Cannons Creek Pool City & recreation events

Wastewater Sewer network Wastewater Treatment Plant Sludge processing Pump stations

Te Awarua-o-Porirua Harbour & catchments Harbour Strategy implementation Harbour & stream improvements Healthy urban waterways Environmental planning

Transport Roads Bridges, kerbs & channels Footpaths & streetlights Cycleways Traffic management & safety

Resource recovery & waste Rubbish & recycling collection Waste diversion Spicer Landfill City cleaning & graffiti reduction Zero waste education

City partnerships Community partnerships Grants & sponsorships Support & advice Children & young people

Emergency management Emergency management & civil defence Recovery planning

Drinking water Water supply network Water flow & conservation Resilience Storage

Sustainability & resilience Low carbon transition Adaptation planning Community engagement

Regulatory standards Animal control Noise control Environmental health Parking



Activity People Harbour Home Four wellbeings

Economic Cultural Social Environmental

Democracy

Primary activities

Minor activity

Community libraries Minor activity

Pātaka Minor activity

Arena, pools, & events Minor activity Minor activity

City partnerships Contributing activity Minor activity

Emergency management

Drinking water Contributing activity

Primary activities

Contributing activity

Stormwater Minor activity Contributing activity

Wastewater Minor activity Contributing activity

Parks & reserves Contributing activity Minor activity

Te Awarua-o-Porirua harbour & catchments

Minor activity Minor activity

Environmental, building & city planning Minor activity Contributing activity

Primary activities

Transport Contributing activity Minor activity

Sustainability & resilience Minor activity Contributing activity

Economic development Minor activity Minor activity

Resource recovery & waste Minor activity Minor activity

Regulatory standards Contributing activity Minor activity


24 JUNE 2020

Item 11.5 Page 222

11.5 TERMS OF REFERENCE AND DELEGATIONS UPDATE Author: Lynlee Baily, Manager Democratic Services

Kaiwhakahaere Ratonga Manapori Authoriser: Steven Perdia, General Manager City Growth & Partnerships

Pouwhakahaere Tipuranga Tāone me ngā Pātuitanga

PURPOSE The purpose of this report is to seek a change to the Council’s Terms of Reference and Delegations for Te Puna Kōrero providing a delegation to the Chair and Deputy Chair, or if either is unavailable, the Mayor, to assess and distribute ‘Getting you There’ and ‘Making it Happen’ grants.

RECOMMENDATIONS That the Council: 1. Receive the report. 2. Agree that ‘Getting You There’ funding decisions of up to $300 to individuals and $500 to

groups be delegated to the Chair and Deputy Chair of Te Puna Kōrero, or if either the Chair or Deputy Chair is unavailable, the Mayor.

3. Agree that the ‘Making it Happen’ funding decisions of up to $500 be delegated to the Chair and Deputy Chair of Te Puna Kōrero, or if either the Chair or Deputy Chair is unavailable, the Mayor.

4. Agree to update the Terms of Reference and Delegations to give effect to the delegations in (2 and 3) above.


BACKGROUND 1. On 14 May 2020 the Council disestablished the Grants, Awards and Events Committee

merging its functions into those of Te Puna Kōrero. 2. The Grants, Awards and Events Committee previously held the delegation to distribute the

‘Making it Happen’ and ‘Getting you There’ funds as follows: a. ‘Making it Happen’ for individuals/small groups - $8,000 allocated annually with a cap

of $500 per project. This fund is about supporting and nurturing ideas, whatever they may be. Projects that have been supported through this fund include tree planting, rubbish clean ups, youth group start-ups and maintenance of a local bike track.

b. ‘Getting you There’ – $10,000 allocated annually with a cap of $300 for individuals and $500 for groups. This fund supports a range of cultural, recreational and personal development opportunities that young people want to pursue. The requests are varied and range from sports teams trying to attend a regional competition to leadership programmes to dance classes. This fund is all about supporting young people that may not get the same opportunities as others, to do what they want to do.

3. As these grants have been of a minor nature requiring a quick turnaround historically the Chair and Deputy Chair of the Grants, Awards and Events Subcommittee assessed the applications and made decisions.


24 JUNE 2020

Item 11.5 Page 223


Introduction Applications for both the ‘Making it Happen’ and ‘Getting you There’ funds can be made at any time. Council has undertaken to process applications within a month of being received. There are no open or close dates for these grants, it closes when all the funds have been allocated within a financial year.

Options The monetary grants are relatively minor with a cap of $500. With the disestablishment of the Grants, Awards and Events Committee staff request Te Puna Kōrero determine how to manage future applications.

Option One 4. The applications be assessed by the Chair and Deputy Chair of Te Puna Kōrero, or if either

are unavailable, the Mayor.

Option Two 5. The applications be assessed by the full committee of Te Puna Kōrero.

Recommended Option 6. The recommended option is Option 1. Applications be assessed by the Chair and Deputy

Chair of Te Puna Kōrero, or if either are unavailable, the Mayor. This would allow for a quick turnaround of applications.

CONCLUSION The Council’s Terms of Reference and Delegations enables Te Puna Kōrero to assess applications to the ‘Making it Happen’ and ‘Getting you There’ funds. As these funds are of a minor nature the Committee is asked to determine who should assess and approve these funding applications.

<page break>

ORDINARY COUNCIL MEETING AGENDA24 JUNE 2020

Item 11.5 Page 224


CONTRIBUTION TO COUNCIL’S STRATEGIC DIRECTION The issues in this report contribute to the strategic priorities of:

a. A growing prosperous and regionally connected cityb. Children and young people at the heart of the cityc. A great village and city experienced. A healthy and protected harbour and catchment


Financial Implications All financial implications have been consulted and approved through the Long-term Plan 2018-28.

Ongoing Cost The reallocations of community funding are proposed for a period of 12 months only.

Funding Source The report is not recommending additional funds, but reallocation of existing funding portfolio.

STATUTORY REQUIREMENTS Nil

FOUR WELL-BEINGS The issues in this paper contribute to all four of the well-beings and will be reflected in a. Socialb. Economicc. Environmentald. Culturale. All

TREATY CONSIDERATIONS There are no Treaty implications identified in relation to the issues in this report. However, our Senior Advisor Maori will feed into any proposed funding criteria to ensure support for our Maori communities.

SIGNIFICANCE The issues in this report do not trigger the Council’s Significance and Engagement Policy.

ENGAGEMENT AND COMMUNICATIONS If the recommendations in this report be approved, an engagement and communication plan will be created in collaboration with our Senior Partnerships advisors and promotion through their networks as well as through the normal communications channels such as social media and print media.

ATTACHMENTS Nil


Item 11.6 Page 225

11.6 LAND ACQUISITION - KENEPURU DRIVE/BLUFF ROAD SHARED PATH Author: Prasad Metla, Development Project Engineer, Transportation

Kaimātai Pūhanga Kaupapa Whanaketanga - Ikiiki i Authoriser: Andrew Dalziel, Chief Operating Officer / Deputy Chief Executive

Pouwhakahaere Mahinga Rangatōpū / Tumuaki Tuarua

SUMMARY AND PURPOSE A small parcel of land is required by the Council from the Institute of Environmental Science and Research Limited (ESR). This will enable Council to provide a safe and consistent 3m wide shared cycle and pedestrian pathway for all users along this section of the Kenepuru Corridor that links Kenepuru Landing and the Summerset on the Landing Retirement Village (Summerset) developments to nearby businesses and Kenepuru train station. The purpose of this report is to:

• Update the Council on the ESR land negotiations;• To assist the Council in its decision on whether to proceed with the proposed purchase; and

• If the Council agrees to proceed with the purchase, to delegate to the Chief Executive theauthority to conclude the negotiations and finalise the land purchase.

RECOMMENDATIONS That the Council: 1. Receive the report.2. Agrees to acquire approximately 12 square metres of land (subject to survey) being part of

section 1 SO Plan 520028, described in Record of Title 887192, as approximately shownhighlighted below, from the current registered owner to be vested as legal road.

3. Delegates to the Chief Executive power to enter into an agreement with the owner undersection 17 of the Public Works Act 1981 to give effect to the acquisition of the Required Landand to take all steps necessary to conclude the land acquisition, including all stepsnecessary to declare the acquired land to be legal road in accordance with section 114 of thePublic Works Act 1981.



Item 11.6 Page 226

BACKGROUND 1. A shared pathway in front of ESR connecting the Bluff Road shared pathway to the existing

crossing point east of Ambulance Drive has received unanimous support from stakeholders(businesses including ESR, local community and the other frequent road users) followingan information evening held in June 2019. Since then the Council has received numerousrequests from new residents in Kenepuru Landing and Summerset for a safe crossing pointacross Kenepuru Drive.

2. The project addresses an accessibility issue. The lack of accessibility to the existingpedestrian crossing point immediately east of Ambulance Drive creates a number of safetyissues, such as:a) Residents from Kenepuru Landing / Summerset using mobility scooters can only access

the crossing point by riding on Kenepuru Drive against the flow of traffic which is notrecommended given Kenepuru Drive carries approximately 20,000 vehicles per day;

b) Residents from Kenepuru Landing / Summerset who wish to walk to the crossing pointcan either walk along the road against the flow of traffic or along the grass verge wherethey risk tripping due to its uneven nature. This carries a high risk of injury especially ifthe pedestrians are elderly, young and/or infirm; and

c) Residents from Kenepuru Landing / Summerset may attempt to cross Kenepuru Drive inthe vicinity of Bluff Road, instead of using the crossing point near Ambulance Drive,which is not desired as this will expose residents to further harm.

3. To provide a consistent 3m wide shared pathway that accommodates mobility scooters, theCouncil needs a small parcel of land, approximately 12sqm, on the ESR side of the existingroad boundary. This area is highlighted in Fig 1 in pink and the double dashed line in blackis the proposed new boundary and fence line. The Council also needs to reposition a sectionof the existing fence line outside of the land take area to create space for the shared pathwayand move it back onto ESR’s legal boundaryFig 1


Item 11.6 Page 227


Introduction 4. Council officers have undertaken non-binding conceptual discussions with ESR to acquire

the parcel of land referred to above on a ‘willing buyer / willing seller’ basis.5. Council officers have also suggested to ESR that Council should be able to bear the costs

associated with relocation of the fence to ESR’s legal boundary in exchange for the landpurchase costs.

6. Costs to purchase the land versus cost to relocate the ESR fence:Council’s requirement to build a consistent 3m wide shared pathway

Total land required: 12sqm

Length of existing fence required to be relocated as part of the shared path project:

~26m

Cost: $4,800

Length of existing fence (that is currently on road reserve instead of the boundary between the road reserve and the ESR land) to be relocated for ESR

~24m

Required works: Break out existing concrete nib wall and replace with a new concrete foundation for the new fence line

Cost: ~$5,300

The total cost to Council to complete the land acquisition is estimated as ~$5,300 and the project budget has enough provision for this activity.

In summary, the outcomes sought from the proposed negotiations with ESR are:

ESR Requirement

• All costs associated with the construction of this project will be met by Council includingrelocation of existing ESR boundary fence (approx. 24m) to the legal boundary at ESR'srequest; and

• ESR's agreement in principle for the land acquisition and relocation of fence to the legalboundary as required to achieve a consistent 3m wide pathway.


Item 11.6 Page 228

Options 7. There are two main options for the Council in relation to proposed shared pathway:

a. Enter into an agreement to acquire the desired landAdvantages:

• Provides a safe and accessible crossing point as requested by numerousresidents;

• Costs for the land acquisition are able to be offset by the fence relocationworks.

Disadvantages: • Additional, minor, cost.

b. Do not enter into an agreement to acquire the desired landAdvantages:

• Saving of additional, minor, cost.Disadvantages:

• Without adequate width any pathway that might be constructed could be ofsubstandard width and would raise serious safety concerns.

Recommended Option 8. Option (a), acquisition of the desired land, to provide a safe and consistent 3m wide shared

pathway for all users along this section of the Kenepuru Corridor whilst addressing anaccessibility issue to/from Kenepuru Landing, Summerset and Kenepuru Station.

CONCLUSION 9. Formal land negotiations are proposed to be undertaken with ESR, based on informal

officer discussions to date, to enable the construction of a shared pathway along the ESRfrontage. Agreement is sought from Council to progress the discussions with ESR anddelegate to the Chief Executive the authority to conclude the negotiations and finalise theland purchase.

g>


Item 11.6 Page 229


CONTRIBUTION TO COUNCIL’S STRATEGIC DIRECTION 10. The project contributes to the strategic priority of “A Great Village and City Experience” by

providing ‘Sound and Resilient Infrastructure’ that supports Walking and Cyclingaccessibility to and from the Kenepuru Landing and Summerset on the Landing RetirementVillage developments and Kenepuru Station


Cost A suggestion has been made to ESR that Council may, in good faith, be prepared to purchase the Required Land in exchange for relocating ESR’s boundary fence (approx. 24m) to the legal boundary

11. Total funding allocated by Council for this project is $450,000.00 at 56% funding assistance rate from Waka Kotahi- NZ Transport Agency and the costs (~$5,300) to acquire the land in subject is included in the total allocated budget.

STATUTORY REQUIREMENTS 13. Legal advice has been obtained to ensure Council satisfies all and/or any Statutory

Requirements that applies to this proposed transaction and it was confirmed that there areno requirements applicable.

FOUR WELL-BEINGS 14. The project contributes to safety and social well-being of the surrounding businesses,

community including the retirement village and road users. The community will benefit fromhaving a dedicated and safe shared pedestrian and cycle path complemented by anupgraded pedestrian crossing point east of Ambulance Drive.

TREATY CONSIDERATIONS

15. There are no Treaty implications identified in relation to the issues in this report.

SIGNIFICANCE 16. Officers have assessed the proposal against the significance criteria in the Council’s

Significance and Engagement Policy (SEP) and determined that it will have a low level ofsignificance.

ENGAGEMENT AND COMMUNICATIONS 17. A stakeholders and community Information Evening held in June 2019 received unanimous

support from stakeholders (businesses including ESR, local community and the other frequent road users) to this proposal. Since then we have also received numerous requests from new residents in Kenepuru Landing and Summerset on the Landing for a safe crossing point across Kenepuru Drive.

ATTACHMENTS Nil


24 JUNE 2020

Item 11.7 Page 230

11.7 STRATEGIC RISK UPDATE Author: Alison Wiley, Manager Risk and Assurance (Acting General Manager

Corporate Services/CFO) Kaiwhakahaere Arotake A-Roto

Authoriser: Alison Wiley, Manager Risk and Assurance (Acting General Manager Corporate Services/CFO) Kaiwhakahaere Arotake A-Roto

PURPOSE The purpose of this report is to present Porirua City Council’s strategic risks.

RECOMMENDATIONS That the Council: 1. Receive the report.

BACKGROUND 1. Porirua City Council has adopted a top-down approach to risk management which enables

the organisation to focus its risk management effort on assessing risks directly impacting on Council’s strategic priorities.

2. Identification of Council’s top risks is conducted by the Executive Leadership Team (ELT) so that they reach agreement on the key risks that threaten the achievement of strategic priorities. The risk radar is the output for risk identification and evaluation.

3. The risks are reviewed on a quarterly basis and reported to the Audit and Risk Committee on a six monthly basis.

4. Development of the strategic risks has been an internal process to date and the Audit and Risk Committee considered participating in a workshop in the near future to ensure strategic risk thinking is aligned.

DISCUSSION 5. The Strategic Risk Radar (attached) shows the key risks at a high level, by way of the risk

heat map, and at a more detailed level through the risk details for each of the risks on the heat map.

6. Eight new emerging risks are now on ELT’s radar. Seven are a result of the pandemic and one is a result of changes in the insurance market. These risks are discussed in more detail in the attached report and have been the focus of review over April and May. Movement of existing risks as a result of the pandemic has also been a focus. Many of the new and existing risks are inter-related and will continue to be analysed as new information comes to hand that impacts on Council’s risk environment. There will also be a focus on how the emerging risks are being mitigated.

ATTACHMENTS 1. Strategic Risk Radar


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Strategic Risk Radar May 2020 Covid-19 implications


24 JUNE 2020


Version Author Date Status and Description

1.0 AW 12/11/2019 Quarterly ELT review




24 JUNE 2020


Purpose The purpose of the Strategic Risk Radar is to give a consolidated view over what the Executive Leadership Team (ELT) considers to be the top risks facing Porirua City Council. This forms part of Council’s risk management framework.

Background Council has adopted a top-down approach to risk management as outlined in the Risk Management Policy. This approach enables the organisation to focus its risk management effort on assessing risks directly impacting on Council’s strategic priorities.

Identification of Council’s top risks is conducted by ELT so that they reach agreement on the key risks that threaten the achievement of strategic priorities. The risk radar is the output for risk identification and evaluation and is reviewed quarterly.

The risk radar was reported to the Audit and Risk Committee in December 2019 and will continue to be reported on a six-monthly basis.

The focus for April-May 2020 has been on changes to the risk profile due to the pandemic, Covid-19 (see Figure 1). The emerging risks have also been an area of focus and although they are yet to be evaluated (ratings, controls, treatments) they are discussed in more detail on the next page and will continue to be monitored over the coming months.

When considering the risks, it should be noted that: • risk ratings are residual (i.e. include consideration of controls); • controls are a measure, policy or process in place to modify the risk, and treatments are planned actions to

reduce the risk.

• assessing, refining and deciding on the top risks is an ongoing process;

• the risks are assessed within a 12 month timeframe;

• Likelihood and Consequence criteria are provided on pages 17-18 for reference.


24 JUNE 2020


Emerging Risk Discussion As shown in Figure 1, eight new emerging (and inter-related) risks are now on ELT’s radar. Seven of those are a result of the pandemic. The new emerging risks are:

1. Revenue and cost impacts - We are already seeing the impacts of the pandemic on revenue and costs which will continue to be managed through business as usual and recovery planning however it is worth highlighting the increased risks involved in adequately managing; reduced revenue, cash flow and credit, forecasting, rates modelling, liquidity and treasury processes in the short and medium-term. There is also a risk that a loss of revenue as a result of fees and charges impacts on service delivery levels as well as the initial years of the long-term plan.

2. Service delivery failure - There is increased risk that our ability to deliver infrastructure projects on time and within budget is impacted due to resource constraints (both internal and external) and additional pressure on supply chains and contractors resulting in service delivery failure. It is likely that some projects will be delayed or cancelled due to budget pressures. It is also likely that we will receive claims for additional costs for project delays resulting in budget over-runs. Capital expenditure carry-overs will also need to be reforecast. The flipside of this is that some projects may be fast tracked as we have the potential to secure government funding for shovel ready projects. However, if we are successful with our bids and these are significant, and/or the projects aren’t already fully planned or consulted on, we may end up with contentions/additional pressure to complete projects.

3. Legal compliance - There is an increased risk that Council fails to meet its legal and statutory compliance obligations and timeframes, because of the lockdown measures, and comes under increasing pressure to make decisions regarding annual, long term and district planning, undertake regulatory functions, hold official meetings remotely and carry out general governance and consultation processes.

4. Recovery planning - There is a risk that Council does not adequately plan for recovery resulting in a slower than projected return to normal (or a new normal). Recovery planning is underway (e.g. shovel ready projects, commercial rates relief) but delivering on the recovery plan and initiatives within it will need to be adequately resourced and prioritised if recovery initiatives are to be effective. There is also a risk that


24 JUNE 2020


Council does not formally capture and act on lessons learned (e.g. the importance of technology), resulting in a lost opportunity to be more fully prepared for future pandemic or disaster type scenarios.

5. Uncertainty - There is still a significant amount of uncertainty surrounding the pandemic which increases the risk of incorrect assumptions and projections being made. The length of the lock down may extend or be reinstated at some point, the scale of the impact on communities and the economy is not fully known, the government longer term recovery package is still unknown, a vaccination date is uncertain etc. A significant amount of information is being received, filtered, redistributed both internally and externally which increases the risk of inconsistent/inadequate messaging (all of which impacts on public confidence). Additionally, there is a risk that the ongoing welfare needs of the Porirua community (as a result of increasing unemployment) are not yet fully understood. A slowdown in the economy also increases uncertainty around our population projections which may no longer be valid impacting on project and long-term planning.

6. Antisocial behavior - There is an increased risk of antisocial behaviour and as such this now becomes a standalone risk, as we have seen more dumping, more vandalism, more graffiti and an increase in noise complaints through the lockdown putting pressure on resources. If the lock down continues or is reinstated, there is a risk that social unrest increases, which we may not have the ability to immediately respond to, all of which impact on public confidence.

7. Public confidence/reputation - Council’s reputation comes under increased scrutiny in times of hardship. There is a risk that the public loses confidence in officers and elected members as a result of decisions made in the short to medium term as well as rates pressure, increased welfare needs, a reduction in Council services etc.

8. Insurance is also highlighted as an (non-pandemic related) emerging risk due to an increasing likelihood that it becomes unaffordable for Council and homeowners. Market changes, climate change and the regularity of flooding events is going to impact on insurance premiums (which we are already seeing) and an ability to secure coverage. Council’s current insurance costs are set to significantly increase (approx. $200k) due to difficulties in securing cover for material damage and business interruption. Coverage for underground assets is facing a 25% increase and the cost for Material Damage policies is also likely to increase. Both these policies were in place for 18 months expiring in May this year. Changes in the international market over this time have seen some companies no longer providing coverage in our part of the world. Of the companies that are prepared to offer coverage they are smaller and therefore the prices are higher to cover the risk.


24 JUNE 2020


(A) Recession / Global Financial Crisis Owner: GM Corporate Services / CFO Why we see this as a risk: If Council failed to prepare, monitor and respond to significant changes in the financial markets or economy that resulted in another global financial crisis or recession then Council’s ability to service its debt could become unsustainable, resulting in rate increases, adverse impact on service levels and financial loss.

Current controls in place: • Operate within Treasury limits. • Use of swaps to control average borrowing

cost for the future

• Independent Treasury monitoring and advice (PWC)

• Annual external audit recommendations actioned as appropriate

Planned treatments and due date: • Review exposure limits i.e. if a GFC (or

natural disaster impacting the region) was to occur would we have enough available credit to operate for a prolonged period?

• Refinance and debt (where possible) at lower interest rates and borrow for largest possible term.

• Have ability to break projects up (if possible) into smaller pieces to enable funding “breaks”.

Related risks: (B) Public Health Event

Tracking:

Outlook: Risks are heightened for short to medium term


24 JUNE 2020


(B) Public health event Owner: GM People & Capability Why we see this as a risk: If a public health event was to occur in Porirua (e.g. pandemic or as a result of an infrastructure failure) there is a risk that Council does not have the capacity to adequately respond to such an event resulting in an inefficient response, increased and ongoing health and safety concerns, financial impact and reputation damage.

The unpredictable nature of an epidemic or infectious disease makes it difficult to plan for the impact a pandemic would have on Porirua. There is a risk Population growth, amongst other factors, increases the emergence of new pandemic threats.

Current controls in place: • Controllers familiarised with NZ Flu Pandemic

Plan.

• WREMO provides integrated and regional development of responses and readiness in participating Council’s and the wider community.

• Scheduled specialised training on a regular basis.

• EOC Scenario exercises. • 10 Community Hubs in place.

• Local Welfare Committee meets regularly to conduct forward planning.

• Emergency Services Coordination Committee meets quarterly.

• Some Business Continuity Plans in place for Critical Services.

• Trained first-aiders.

• Staff flu jabs offered.

• Structure around drinking water standards, monitoring schedule, DHB as regulator etc.

Planned treatments: • Desk Action Plans for Pandemic.

• Pandemic Training.

• Compliance with new water regulator standards (2-3 year horizon).

Related risks: (I) Major Infrastructure Failure (J) Natural Disaster (K) Terrorism

Tracking:

Outlook: Monitor. Risk has eventuated.


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(C) Climate Change Impacts Owner: Owner: GM, Policy, Planning & Regulatory Why we see this as a risk

Most parts of the city are exposed in some way to the effects and impacts of climate change including erosion, sea level rise, storm surge, flooding and inundation. If Council does not plan for and respond appropriately to climate change then this could result in physical damage to the city but will also affect people who live here; physically, socially, mentally, economically and emotionally, as well as threatening the identity of culturally significant parts of the city.

It is highly likely that this risk will also have future financial implications e.g. insurance implications for Council and ratepayers as insurers choose not to provide cover for high risk areas, and as banks revise lending on coastal properties.

In addition to physical risks, Council will need to understand the financial and legal risks associated with climate change. This includes potential litigation from residents, companies, or other stakeholder groups, and the availability to borrow money from financial institutions who may require additional reporting or action on climate change.

This risk also includes Council’s mindfulness of its carbon footprint.

Current controls in place:

• Infrastructure Strategy.

• Wellington Water plans and actions regarding waste, storm water, catchment studies.

• Civil Defence Emergency Management procedures.

• Flood mapping.

• Coastal Vulnerability Assessment.

• Coastal hazard maps.

• Roading maintenance and water sensitive designs.

Planned treatments:

• Climate Change Strategy.

• Climate Change Policy.

• Climate Change Risk Assessment.

• District Plan review.

• Analysis of storm water capacity.

• Adaptation planning.

• Greenhouse gas monitoring and reporting.

Related risks:

(I) Major Infrastructure Failure (J) Natural Disaster

Tracking:

Outlook:

Risk is likely to increase in the long term and severity of consequence may depend on cost implications for Council.


24 JUNE 2020


(D) Infrastructure Prioritisation Failure Owner: Chief Operating Officer / GM Policy, Planning & Regulatory Why we see this as a risk: If development across the city is not phased, and/or projects are agreed to without thorough due diligence, this will put a significant amount of pressure on already under pressure infrastructure potentially resulting in service disruption, increased costs, having to make financial compromises elsewhere, and an adverse impact on reputation and environment.

Integrated solutions to the increased pressure from growth on our roads, properties, wastewater treatment plant, storm water and water supply need to be developed. As we get more in-depth knowledge about asset condition, renewals may need to be re-cast. Projects such as Transmission Gully, Adventure Park, Eastern Porirua, Northern growth, Kenepuru and Aotea developments and overall accessibility in and around the city will change how our networks operate.

Current controls in place: • Long Term Plan. • Wellington Water network improvement

programme. • Planning processes focused on

growth/infrastructure challenges.

• Kenepuru area study. • Regional Land Transport Plan. • Legislative compliance. • Building condition and seismic audits.

Planned treatments: • Review of Activity Management Plans and

Infrastructure Strategy. • District Plan review and Growth Strategy

implementation.

• Reset priorities and realistic funding decisions (growth challenges).

• Getting the right information/depth of data required to make informed decisions.

• Prioritising relationship management with key stakeholders.

• Lobbying government for financial assistance (e.g. Eastern Porirua).

• Housing and Business Development Capacity Assessment (HBA).

• Climate Change Policy.

Related risks: (C) Climate Change Impacts (G) Planning for Growth (I) Major Infrastructure Failure

Tracking:

Outlook: Risk may increase e.g. if there is an insufficient capital programme to support infrastructure investment


24 JUNE 2020


(E) Unintended Environmental Impacts Owner: GM Policy, Planning & Regulatory / GM City Growth & Partnerships Why we see this as a risk:

As the city goes through rapid growth, without considered and thoughtful planning, there is a risk of unintended environmental consequences (e.g. as a result of storm water and waste water overflows, increased silt and sediment).


• Policy and planning rules (RMA, consents processes etc).

• Bylaws. • Compliance and enforcement. • Developer education.

• Working group for storm water / waste water overflows.

• Network improvement programme. • Storm water management. • Harbour Strategy. • Iwi and stakeholder consultation.

Planned treatments:

• District Plan review. • Harbour Strategy review. • Whaitua Report implementation of

recommendations. • Continued developer education. • Planning process underway regarding asset

improvement.

• Increased monitoring and enforcement (particularly around sediment).

• Regional Council initiatives. • Bring forward review of Silt and Sediment

Bylaw and Storm water Bylaw. • Implement Strategic Framework for Porirua’s

natural environment (3-4 year timeframe to implement)

Related risks:

(G) Planning for Growth (I) Major Infrastructure Failure

Tracking:

Outlook:

Reduce


24 JUNE 2020


(F) Technology Owner: GM Corporate Services/CFO Why we see this as a risk:

Technology continues to shape the global and local risk landscape and Covid-19 has also highlighted short-comings in Council’s ability to easily work remotely. Captured within the technology risk is: 1) Disaster recovery: Following a disaster (human or natural) the policies and procedures established are not adequate to ensure rapid restoration of services to enable

business continuity. 2) Cyber Security and information management: Risk of data breaches, data loss or corruption through human error, viruses or malicious cyber-attacks potentially

disrupting council services while data is restored. Cyber threats evolve daily through new vulnerabilities being exposed and attackers becoming vastly sophisticated with their approach. Common contributing factors to being exposed are; lack of staff awareness, absence of appropriate security software, unsupported technologies and resources to monitor environment. Other contributing factors include technologies being introduced to Infrastructure environment without the appropriate due diligence and guidance as well as lack of resource to meet the rapid growth in the security requirements.

3) Disruptive technology: Digital disruption in the modern world is not slowing down with new technologies emerging at rapid pace. With evolving technologies such as Artificial Intelligence (AI), Internet of Things (IoT), Robotics and Virtual Reality (VR) organisations are confronted with having to address the high demands of customers to meet their preferences. Automation also has the potential to have implications on the future workforce, as it has come increasingly prevalent as a method to understand vast amounts of data.

Current controls in place: • Infrastructure and Application patch

management lifecycles. • Antivirus solutions and perimeter defence

solutions. • Portal device restrictions. • Employee cyber security awareness.

• System access controls. • Network User and Change Management

policies. • Disaster Recovery and BCP Plans. • Regular Data and System backups. • Cloud hosted software. • External Security testing.

Planned treatments: • Incident Response Plan. • Mobile Device Management. • Scheduled Employee Security awareness

training. • Scheduled regular reviews of all IT Policies.

• Regular security reviews and testing. • Cyber Security, Password and Cloud Policies. • Disaster Recovery and Data recovery testing. • Review Disaster Recovery Plan.

Related risks: (B) Public Heath Event

Tracking: N/A, new risk

Outlook: Risk may increase if technology limitations inhibit the business as a result of ongoing Covid-19 alert level increases.


24 JUNE 2020


(G) Planning for Growth Owner: GM, Policy, Planning & Regulatory Why we see this as a risk:

There is an increase in pressure from growth and how the Council funds the rapid future expansion expected from development and growth. Developer expectations need to be carefully managed in the short, medium and long term to ensure that growth is staggered and manageable.

Additionally, if Council does not supply sufficient land for development which it is legally required to, this has financial implications for community and ratepayers e.g. increase in house prices through scarcity as is currently being experienced, as well as the possibility of legal action against Council (time, cost and reputation impact).


• Long Term Plan.

• District Plan.

• Infrastructure Strategy.

• Growth Strategy principles and directions.

• Developer Agreements.

• Development Contributions Policy.

• Housing and Business Assessment Report.

Planned treatments:

• District Plan review.

• Next LTP.

• Growth Strategy implementation.

• Submitting/appealing on Proposed Natural Resources Plan (PNRP).

• Regional Land Transport Plan (RLTP).

• Regional Growth Framework.

• National Policy Statement for Urban Development.

• Urban Growth Agenda and funding tools.

Related risks:

(D) Infrastructure Prioritisation Failure

Tracking:

Outlook:

Maintain


24 JUNE 2020


(H) Workforce Owner: GM People & Capability Why we see this as a risk: If Council does not manage, maintain and develop staff capacity and capability then Council may not have sufficiently skilled and engaged employees resulting in an inability to deliver the day to day operational requirements and long term aspirations of Council’s strategies and plans.

This risk includes, recruitment challenges, ability to attract skilled workers, scarce labour market, wage pressure, aging population and workforce (loss of institutional knowledge particularly due to the retirement of the Baby Boomer Generation), culture, conduct, employee health, safety and wellbeing. Hard to fill/recruit senior positions include; Building Assurance Officers (Inspectors), Tracks and Coastal rangers, Cemetery Technicians, Library Managers, Procurement Manager/Advisor.

Current controls in place: • Periodic organisation wide and group level

reviews conducted on as required basis. • Full Suite of people policies to provide

guidance on organisational expectations. • Documented job descriptions for all positions

specifying responsibilities & capabilities. • Remuneration Policy, jobs sized and market

benchmarked to ensure competitive rates. • Advertising protocols and competency based

structured panel interviews right person in the right job.

• Development: Corporate Training Programme.

• Study Award Programme. • Performance Management System; Setting

objectives, assessing performance, identifying opportunities for improvement.

• Residents survey – customer services/performance.

• Remuneration policy review. • Investment in staff training. • Use of contractors as and when required. Monitoring: • Staff Climate (engagement) Survey, follow up

and actions. • HR Quarterly Report with metrics including

turnover and absenteeism. • Employee Assistance Programme (EAP)

metrics. • Police vetting. Health & Safety: • Full suite of policies, procedures and practice

in place. • Accident Incident Reporting via site safe. • Due diligence site visits.

Planned treatments: • Development of an Inclusion & Diversity

programme. • Establish a Leadership Development

Framework.

• Rejig: Improved work environment in the Administration building – open plan to enhance opportunities for communication, collaboration and cooperation.

• Code of Conduct review. • Fraud Policy being developed.

Related risks: (B) Public Health Event

Tracking:

Outlook: Risk may increase in the medium term due to Covid-19


24 JUNE 2020


(I) Major Infrastructure Failure Owner: Chief Operating Officer Why we see this as a risk:

If a major infrastructure failure or severe underperformance occurs due to; current condition and capacity, not maintaining it effectively and efficiently, forced revocation without adequate condition review, increased pressure on existing infrastructure (roads, wastewater, storm water, water supply, property), climate change impacts, this could result in service disruption, increased and unplanned costs, and an adverse impact on reputation and environment.

Examples of a major infrastructure failure include but is not limited to; Wastewater Treatment Plant (WWTP) failure, major pipe burst, reservoir failure, asset failure (e.g. road/bridge, parks, property) resulting in fatality.


• Long Term Plan. • Activity Management Plans / Asset renewal

programmes. • Waste Water Network Improvement Plan. • Wellington Water oversight and monitoring

processes. • Inspections and analysis of condition and life. • Seismic audits.

• Building condition audits. • Long-term asset upgrades. • Quality control processes (e.g. Opus for

transport, Tonkin and Taylor for waste management).

• Project and contractor management. • CRMs. • Condition audits and MBS ratings on buildings.

Planned treatments:

• Access Porirua Programme Business Case. • LTP funding to upgrade Treatment Plant. • Strengthen recovery management processes.

• Prioritisation exercise (growth challenges). • Getting the depth of data/adequate information

required to make informed decisions. • Lobbying for government assistance (e.g.

Eastern Porirua). • Climate Change Strategy.

Related risks:

(C) Climate Change Impacts (D) Infrastructure Prioritisation Failure (J) Natural Disaster

Tracking:

Outlook:

Maintain. The risk may increase if renewals are deferred because of growth/funding challenges. In the longer term it may also increase if we do not respond adequately to climate change impacts.


24 JUNE 2020


(J) Natural Disaster Owner: GM People & Capability Why we see this as a risk: If an event (natural disaster) occurs that results in an emergency being declared in the region and/or crisis management and business continuity plans being activated, and Council does not respond effectively and efficiently to restore Council and the city to normal operations and services then this could result in prolonged service disruption, increased costs, community dissatisfaction, health and safety concerns and environmental and reputation damage.

This risk includes extreme weather events such as storms that result in severe flooding and slips and require an emergency response.

Current controls in place: • WREMO provides integrated and regional

development of responses and readiness in participating Council’s and the wider community.

• Purpose Built EOC (Emergency Operations Centre).

• Scheduled specialised training on a regular basis.

• Desk Action Plans for Earthquake, Tsunami, and Other events including floods.

• Scenario exercises twice a year.

• 10 Community Hubs in place. • Local Welfare Committee meets regularly to

conduct forward planning. • ESCC (Emergency Services Coordination

Committee) meets quarterly. • 60 emergency water tanks 25,000 litres each

spread across the city 1.55 m Litres. • Some BCPs for Critical Services in place.

Planned treatments: • Establishment of Local Earthquake Response

Plan.

• Additional water tanks planned.

• Community Infrastructure Resilience project.

• Tsunami Mitigation: Blue Lines Project.

• Complete/update Critical Services BCPs.

• Recovery function – agree structure and recovery team.

Related risks: (C) Climate Change Impacts (I) Major Infrastructure Failure (B) Public Health Event

Tracking:

Outlook: Risk has a higher likelihood over a longer timeframe and consequences increase if a natural disaster was to occur while responding to/recovering from Covid-19 impacts.


24 JUNE 2020


(K) Terrorism Owner: GM People & Capability / Chief Operating Officer Why we see this as a risk: If an act of terrorism was to occur in Porirua, or violence that threatened the safety of the public, Council does not currently have a formal approach for responding to such acts which could result in an inefficient response, increased and ongoing health and safety concerns, and reputation damage.

Current controls in place: • Civil Defence Emergency Management

(CDEM) Group Plan. Man-made hazards – Terrorism. NZ Police lead agency for responding.

• CDEM Porirua City Council Standard Operating Procedures.

• H&S. Workplace Security Guide. Bomb threats – with/without warning – responsibilities/training.

• Bomb threat checklist

• Visitor Management Guidebook.

• Building Wardens, Floor Wardens, First Aiders, Emergency Wardens.

• CCTV/lighting.

• Business Continuity Plans.

Planned treatments: • Best practice Active Shooter Policy and

Procedures to be agreed with Police and added to Workplace Security Guide.

• Active shooter response training.

Related risks: (B) Public Health Event (J) Natural Disaster

Tracking:

Outlook: Maintain


24 JUNE 2020


Consequence TableCategory Financial Legal & Compliance /

Contractual Business Continuity Employee / Organisation performance

Reputation / Quality of service Health & Safety / environmental impact

Project

Extreme

Direct loss or increased cost of over $3M Cases of fraud showing collusion. Identified bribes and systemic undisclosed conflicts of interest.

Serious breach or multiple significant breaches resulting in regulatory scrutiny. Undertakings or restrictions on activity or responsibilities of Council. Numerous litigations. Termination of contract for default.

Total disruption to all Council operations or service delivery. Significantly affects key community services. e.g. Total Business Disruption for 5+ days or alt sites unavailable.

A large number of senior managers or experienced employees leave the Council. Non-achievement of organisation objectives, performance failure

Damage to reputation at national level, raised in national media. Major loss of stakeholder, political or community support. Severe impact on the quality of services provided by the Council resulting in a significant increase in complaints increase of 50% or more).

Multiple loss of life or multiple notifiable injuries. Significant environmental impact e.g. spills or damage to ecologically protected environs or requiring emergency services.

Severe impact on achieving desired results (deliverables, and/ or outcomes). Budget impact > $200k or 40%. Time increase > 3 months.

Major

Direct loss or increased cost of ~$1M to $3M Cases of fraud. Profiting as a result of inside knowledge. Bribery, Corruption.

Significant breach or systemic minor breaches. Significant fines, audits/inspections or undertakings. Single major litigation or numerous moderate. Written notification from contractor threatening termination.

Serious disruption to operations or service delivery. Impact to multiple and diverse areas of the Council. Adversely affects multiple key community groups. e.g. 1-5 day disruption for any business unit (floor)/ 1 day for total Council.

Increasing senior managers or experienced employees leave. Significant turnover of experienced employees. Widespread employee attitude problems. Performance significantly under target

Adverse news in regional media. Serious decrease in stakeholder, Council or community support. Considerable impact on the quality of services provided by the Council resulting in a marked increase in complaints (increase of 25-50%)

Single loss of life. Single notifiable event. Prohibition notice issued or warning letter under the HSWA 2015. Moderate spills or damage to non-ecologically protected environs or requiring emergency services.

Major impact on achieving desired results (deliverables, and/ or outcomes). Cost increase $100k - $200k or 20 – 40% Time increase 2-3 months.

Moderate

Direct loss or increased cost of ~$500K to $1M Multiple (unrelated) frauds. Conflicts of interest not actively managed.

Multiple related minor breaches. Possibility of some fines. Systemic issue. Reportable breach. Single moderate litigation or numerous minor. Continued contractual breach

Disruption of operations or service delivery. e.g. 1 day disruption for any organisational area (floor)/ 0.5 day for total organisation.

General employee morale or attitude problems in business area. Significant employee turnover in unit area. Moderate impact on performance, material delays.

Adverse news in the local media (paper/newspaper/tv Social medial/networking) Minor decrease in stakeholder, Council or community support. Some impact on the quality of service provided by the Council resulting in an increase in complaints (10-25%).

Injury requiring medical attention but not requiring emergency services. Non-notifiable incidents or injury. Spills or damage to non-ecologically protected environs and not requiring emergency services.

Moderate impact on achieving desired results (deliverables, and/ or outcomes). Cost increase $50k - $99k or 10 – 20% Time increase 1-2 months.

Minor

Direct loss or increased cost of ~$100 to $500K Isolated incidence of fraud. Undisclosed gifts.

Minor breaches occur, first of its kind, one-off issues Single minor litigation. Concern over contractual arrangements.

Minor disruption to operations or service delivery. e.g. 2-4 hr disruption for any business unit

General employee morale and attitude problems. Isolated employment incidents. Personal grievance. Increase in employee turnover. Minor delays or duplicated effort

Adverse news in local media. Concerns of performance raised by stakeholders or the community. Minor impact on the quality of service.

Injuries requiring minor first aid, emergency services not required, non- notifiable events. Small spills or damage to non-ecologically protected environs and not requiring emergency services.

Minor impact on achieving desired results (deliverables and/ or outcomes). Cost increase $10k - $49k or 2 – 10% Time increase up to 1 month.


24 JUNE 2020


Consequence TableCategory Financial Legal & Compliance /

Contractual Business Continuity Employee / Organisation performance

Reputation / Quality of service Health & Safety / environmental impact

Project

Insignificant Direct loss or increased cost of up to $100K Irregularities managed under DFA. Undisclosed gifts.

Small, non-systematic and/or technical breaches occur. Threat of litigation. No effect on contract performance.

Minimal disruption to operations or service delivery. e.g. <2 hr disruption for any business unit area

Negligible or isolated employee dissatisfaction. Little impact on performance.

Reference to community consultation group/forum. Public awareness may exist but no public concern. No impact on the quality of service

No injury or harm sustained. Non-notifiable. Spills with no impact or damage environs. Emergency services not required.

Little to no impact on achieving desired results (deliverables, and/ or outcomes). Cost increase < $10k or < 2%. Time increase < 1 week.

Likelihood Table

Almost Certain • The event is expected to occur in most circumstances or • >95% chance of occurring in the next 12 months.

Likely • The event will probably occur at some time; or • >70% chance of occurring in the next 12 months.

Possible • The event might occur at some time; or • 30-70% chance of occurring in the next 12 months.

Unlikely • The event may occur only infrequently; or • <30% chance of occurring in the next 12 months.

Rare • The event is not expected to occur; or • <5% chance of occurring in the next 12 months.


24 JUNE 2020

12 PUBLIC EXCLUDED

RESOLUTION TO EXCLUDE THE PUBLIC

RECOMMENDATION That the public be excluded from the following parts of the proceedings of this meeting. The general subject matter 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 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 for the passing of this resolution

12.1 - Extraordinary Public Excluded Council Meeting - 28 May 2020

s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities


12.2 - Silverwood Claim s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege


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

Documents

ORDINARY MEETING of Council€¦ · 11. Total funding allocated by Council for this project is $450,000.00 at 56% funding assistance rate from Waka Kotahi- NZ Transport Agency and