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Extraordinary Meeting of Council - 28 September 2020 - Attachments
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Item 1 Attachments a |
Extraordinary Meeting of Council
Open Agenda
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Meeting Date: |
Monday 28 September 2020 |
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Time: |
1.30pm |
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Venue: |
Large Exhibition Hall |
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Council Members |
Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine, Taylor, Wright |
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Officer Responsible |
Interim Chief Executive |
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Administrator |
Governance Team |
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Next ordinary Council Meeting Thursday 8 October 2020 |
Extraordinary Meeting of Council - 28 September 2020 - Open Agenda
ORDER OF BUSINESS
Apologies
Nil
Conflicts of interest
Public forum
Nil
Announcements by the Mayor
Announcements by the management
Agenda items
1 Three Waters Reform Programme - Funding Agreement, Delivery Plan and Proposed projects 3
Public excluded ............................................................................................................. 56
Extraordinary Meeting of Council - 28 September 2020 - Open Agenda Item 1
1. Three Waters Reform Programme - Funding Agreement, Delivery Plan and Proposed projects
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Type of Report: |
Contractual |
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Legal Reference: |
N/A |
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Document ID: |
1247391 |
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Reporting Officer/s & Unit: |
Adele Henderson, Director Corporate Services Jon Kingsford, Director Infrastructure Services |
1.1 Purpose of Report
To provide delegation for the signing of the Funding Agreement and Delivery Plan associated with the Three Water Services Reform Programme including proposed projects.
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That Council: a. Approve entering into the Funding Agreement and Delivery Plan for the first stage of the Three Waters Services Reform Programme by 30th September 2020 b. Approve the proposed projects to be undertaken as part of the Delivery Plan, noting that these are subject to approval from the Department of Internal Affairs (DIA). i. Note there have been some changes in the priorities since the meeting on 15th September 2020 where this was first discussed with additional projects included as requested by Council c. Note the Reform Programme is part of the Government’s programme to reform current water service delivery into larger scale providers, to realise significant economic, public health, environmental, and other benefits over the medium to long term, and that signing the MOU, Funding Agreement and Delivery Plan does not create any obligation upon Council with regard to future steps of this reform programme d. Provide delegation to the Chief Executive to make any required changes to the Delivery Plan in order to finalise the agreement with DIA, noting that: i. Council have been provided with projects in priority 1 for $12.51m available funding, and ii. Projects will be prioritised from those identified under the Priority 2 and 3 lists provided in this report as required to meet the DIA requirements. e. Delegate signing of the Funding Agreement and Delivery Plan to the Chief Executive and Mayor
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Over the past three years, central and local government have been considering solutions to challenges facing delivery of three waters services to communities.
This has seen the development of new legislation and the creation of Taumata Arowai, the new Water Services Regulator, to oversee and enforce a new drinking water regulatory framework, with an additional oversight role for wastewater and stormwater networks.
While addressing the regulatory issues, both central and local government acknowledge that there are broader challenges facing local government water services and infrastructure, and the communities that fund and rely on these services. There has been underinvestment in three waters infrastructure in parts of the country and persistent affordability issues, along with the need for additional investment to meet improvements in freshwater outcomes, increase resilience to climate change and natural hazards, and enhance community wellbeing.
In July 2020, the Government announced a funding package of $761 million to provide immediate post-COVID-19 stimulus to local authorities to maintain and improve three waters (drinking water, wastewater, stormwater) infrastructure, and to support reform of local government water services delivery arrangements.
The Government has indicated that its starting intention is public multi-regional models for water service delivery to realise the benefits of scale for communities and reflect neighbouring catchments and communities of interest. There is a preference that entities will be in shared ownership of local authorities. Design of the proposed new arrangements will be informed by discussion with the local government sector.
There is a shared understanding that a partnership approach between Central and Local Government will best support the wider community interests, and ensure that any transition to new service delivery arrangements is well managed and as smooth as possible. This has led to the formation of a joint Three Waters Steering Committee to provide oversight and guidance on three waters services delivery and infrastructure reform.
Three Waters Steering Committee
At the recent Central/ Local Government Forum, central and local government leadership discussed challenges facing New Zealand’s water service delivery and infrastructure, and committed to working jointly on reform.
A Joint Three Waters Steering Committee has been established to provide oversight and guidance to support progress towards reform, and to assist in engaging with local government, iwi/ Māori and other water sector stakeholders on options and proposals.
The Steering Committee comprises independent chair Brian Hanna, local government mayors, chairs and chief executives, representatives of Local Government New Zealand and the Society of Local Government Managers, officials and advisors from the Department of Internal Affairs, Taumata Arowai, and the Treasury.
The Steering Committee will ensure that the perspectives, interests and expertise of both central and local government, and of communities throughout New Zealand are considered, while the challenges facing water services and infrastructure are addressed. This will include periods of engagement, in the first instance with the local government sector.
The Steering Committee is supported by a secretariat made up of advisors and officials from Local Government New Zealand, the Society of Local Government Managers, the Department of Internal Affairs, and the Treasury.
Reform programme and funding package
In July 2020, the Government announced funding to provide immediate post-COVID-19 stimulus to maintain and improve water networks infrastructure, and to support a three-year programme of reform of local government water services delivery arrangements.
Central and Local Government consider it is timely to apply targeted infrastructure stimulus investment to enable improvements to water service delivery, progress reform in partnership, and ensure the period of economic recovery following COVID-19 supports a transition to a productive, sustainable economy.
While the Government’s starting intention is for publicly-owned multi-regional models for water service delivery, with a preference for local authority ownership, final decisions on a service delivery model will be informed by discussion with the local government sector and the work of the Steering Committee.
Initial funding will be made available immediately to those councils that sign up to the Memorandum of Understanding (MoU) and associated Funding Agreement and Delivery Plan for the first stage of the Three Waters Services Reform Programme.
The Reform Programme is designed to support economic recovery post COVID-19 and address persistent systemic issues facing the three waters sector, through a combination of:
· stimulating investment, to assist economic recovery through job creation, and maintain investment in water infrastructure renewals and maintenance; and
· reforming current water service delivery, into larger scale providers, to realise significant economic, public health, environmental, and other benefits over the medium to long term.
The three waters reform programme can be found on the Department of Internal Affairs website.
Sector Engagement
In addition to working with the Steering Committee, there will be an ongoing programme of engagement with local government, iwi/ Māori, the wider water services sector, and communities of interest throughout the transformation programme.
Initial engagement started July/August 2020 with local government and iwi/ Māori partners to discuss the Memorandum of Understanding (MoU) and associated Funding Agreement and Delivery Plan. This first engagement provides a forum for councils considering signing up to the reform programme to raise issues and work through questions ahead of signing the MoU.
Signing the MoU commits councils to engage with the reform programme and share information but does not require them to continue with future stages of the reform.
From the initial workshops, ongoing work will continue with ad-hoc sessions and webinars, targeted engagement and formal information-sharing sessions with local government, iwi/ Māori, water service providers and interested parties as we progress the reform programme.
Iwi/ Māori interests
Over the past three years central and local government have been considering solutions to challenges facing three waters services delivered to communities. There have been a series of hui and workshops with iwi/ Māori as part of this, through the Three Waters Review and the establishment of Taumata Arowai. The progress of the proposed reform requires further engagement with iwi/ Māori to more fully understand Treaty rights of interests over the course of the reform period.
A range of engagements are proposed over the next 6-12 months both directly through central government and in partnership with local government.
1.3 Issues
Signing the MoU was completed in August 2020 and commits councils to engage with the reform programme and share information, but does not require them to continue with future stages of the reform. Two further documents, the Funding Agreement and Delivery Plan (Attachments A and B), are now required to be prepared and signed.
The Delivery Plan is subject to approval by DIA. Council held a workshop on 10th September 2020 and provided direction for the proposed projects to go forward to DIA. Feedback is being sought from the Māori Committee members. The projects have been given a category of Priority 1 to 3. In the event that the projects in Priority 1 are not approved, there are options to move to those identified as Priority 2 or 3. The Priority 1 projects currently total $12.51m. A further $3.2m for Priority 2 and $600k for Priority 3 have been identified in the event the projects are rejected by DIA or unable to be progressed.
It is recommended that the Chief Executive is provided with delegation to finalise the agreement with DIA and move through the priorities accordingly. If those projects are not approved, then the Chief Executive will work through this with DIA accordingly to finalise from other available projects.
The latest list of proposed projects are shown at Attachment C.
A key part of the government’s stimulus package was job creation. It is noted that the above proposed projects will create approximately 140 jobs, which are internal fixed term roles, external consultant roles and jobs to carry out project work. Further work is still being undertaken to verify the number of jobs created before the contract is finalised.
1.4 Significance and Engagement
Funding for these projects will be received as a grant and does not trigger Council’s significance and engagement policy or other consultation requirements.
1.5 Implications
Financial
Funding will be provided as soon as practicable following agreement to the MoU and the associated Funding Agreement and Delivery Plan. The Delivery Plan will need to show that the funding is to be applied to operating or capital expenditure on three waters service delivery (with the mix to be determined by the Council) that:
· supports economic recovery through job creation; and
· maintains, increases and/or accelerates investment in core water infrastructure renewals and maintenance.
The Delivery Plan provides a summary of projects, relevant milestones, costs, location of physical works, number of people employed in works, reporting milestones and an assessment of how it supports the reform objectives set out in this MoU.
The Delivery Plan will be supplied to Crown Infrastructure Partners, and other organisations as agreed between the Parties, who will monitor progress of application of funding against the Delivery Plan to ensure spending has been undertaken consistent with public sector financial management requirements.
The Council will have the right to choose whether or not they wish to continue to participate in the reform programme beyond the term of the MoU.
Social & Policy
This MoU sets out the principles and objectives that the Parties agree will underpin their ongoing relationship to support the improvement in three waters service delivery for communities with the aim of realising significant public health, environmental, economic, and other benefits over the medium to long term. It describes, in general terms, the key features of the proposed reform programme and the Government funding arrangements that will support investment in three waters infrastructure as part of the COVID 19 economic recovery.
The Funding Agreement sets out the funding requirements and conditions. The Delivery Plan includes a summary of the work, costs, milestones, location of works, estimate of the number of people employed in works, and an assessment of how it supports the reform objectives.
Risk
The Council will have the right to choose whether or not they wish to continue to participate in the reform programme beyond the term of the MoU.
Based on the terms outlined in the delivery plan, Council will carry any expenditure above the funding agreement by project.
1.6 Options
The options available to Council are as follows:
a. Approve the proposed projects or
b. Amend the proposed projects
1.7 Development of Preferred Option
Approve the updated proposed projects and sign the Funding Agreement and Delivery Plan for the Three Waters Reform Programme.
a Funding Agreement - DRAFT ⇩
b Delivery Plan Agreement - DRAFT ⇩
c Delivery Plan Project List ⇩
Extraordinary Meeting of Council - 28 September 2020 - Open Agenda
That the public be excluded from the following parts of the proceedings of this meeting, namely:
Agenda Items
1. Executive Search and Recruitment Services
The general subject of each matter to be considered while the public was excluded, the reasons for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution were as follows:
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General subject of each matter to be considered. |
Reason for passing this resolution in relation to each matter. That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary to: |
Ground(s) under section 48(1) to the passing of this resolution. 48(1)(a) That the public conduct of the whole or 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: |
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Agenda Items |
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1. Executive Search and Recruitment Services |
7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities 7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
48(1)A That the public conduct
of the whole or 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: |
