Ordinary Meeting of Council - 12 December 2024 - Open Agenda

2022-2025 TERM OF REFERENCE - COUNCIL

Chairperson	Her Worship Mayor Kirsten Wise
Deputy Chairperson	Deputy Mayor Annette Brosnan
Membership	All elected members
Quorum	7
Meeting frequency	At least 6 weekly and as required
Executive	Chief Executive

Purpose

The Council is responsible for:

1. Providing leadership to and advocacy on behalf of the people of Napier.

2. Ensuring that all functions and powers required of a local authority under legislation, and all decisions required by legislation to be made by local authority resolution, are carried out effectively and efficiently, either by the Council or through delegation.

Terms of Reference

The Council is responsible for the following powers which cannot be delegated to committees, subcommittees, officers or any other subordinate decision-making body[1]:

1. The power to make a rate

2. The power to make a bylaw

3. The power to borrow money, or purchase or dispose of assets, other than in accordance with the long-term plan

4. The power to adopt a long-term plan, annual plan, or annual report

5. The power to appoint a chief executive

6. The power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement, including the 30-Year Infrastructure Strategy

7. The power to adopt a remuneration and employment policy.

8. The power to establish a joint committee with another local authority or other public body[2].

9. The power to approve or change the District Plan, or any part of that Plan, in accordance with the Resource Management Act 1991.

10. The power to make the final decision on a recommendation from the Parliamentary Ombudsman, where it is proposed that Council not accept the recommendation.

11. The power to make a final decision whether to adopt, amend, revoke, or replace a local Easter Sunday shop trading policy, or to continue a local Easter Sunday shop trading policy without amendment following a review.^{^[3]}

Delegated Power to Act

The Council retains all decision making authority, and will consider recommendations of its committees prior to resolving a position.

Specific matters that will be considered directly by Council include without limitation unless by statute:

1. Direction and guidance in relation to all stages of the preparation of Long Term Plans and Annual Plans

2. Approval or amendment of the Council’s Standing Orders^{^[4]}.

3. Approval or amendment the Code of Conduct for Elected Members^{^[5]}.

4. Appointment and discharging of committees, subcommittees, and any other subordinate decision-making bodies^{^[6]}.

5. Approval of any changes to the nature and delegations of any Committees.

6. Appointment and discharging of members of committees (as required and in line with legislation in relation to the role and powers of the Mayor) ^{^[7]}.

7. Approval of governance level strategies, plans and policies which advance council’s vision and strategic goals.

8. Resolutions required to be made by a local authority under the Local Electoral Act 2001, including the appointment of an electoral officer.

9. Reviewing of representation arrangements, at least six yearly^{^[8]}.

10. Approval of any changes to city boundaries under the Resource Management Act.

11. Appointment or removal of trustees, directors or office holders to Council’s Council-Controlled Organisations (CCOs) and Council Organisations (COs) and to other external bodies.

12. Approval the Local Governance Statement as required under the Local Government Act 2002.

13. Approval of the Triennial Agreement as required under the Local Government Act 2002.

14. Allocation of the remuneration pool set by the Remuneration Authority for the remuneration of elected members.

15. To consider and decide tenders for the supply of goods and services, where tenders exceed the Chief Executive’s delegated authority, or where projects are formally identified by Council to be of particular interest. In addition, in the case of the latter, milestone reporting to Council will commence prior to the procurement process.

Ordinary Meeting of Council - 12 December 2024 - Open Agenda

ORDER OF BUSINESS

Karakia

Apologies

Nil

Conflicts of interest

Public forum

9.35am – 9.50am Angie Denby - Ahuriri Estuary Protection Society

9.50am – 10.05am Positive Ageing Strategy Advisory Group Update - Peter Grant

10.05am – 10.20am Te Kaha Hawaikirangi, Mana Ahuriri Trust - Treaty Bill Submission Support

Announcements by the Mayor including notification of minor matters not on the agenda

Note: re minor matters only - refer LGOIMA s46A(7A) and Standing Orders s9.13

A meeting may discuss an item that is not on the agenda only if it is a minor matter relating to the general business of the meeting and the Chairperson explains at the beginning of the public part of the meeting that the item will be discussed. However, the meeting may not make a resolution, decision or recommendation about the item, except to refer it to a subsequent meeting for further discussion.

Announcements by the management

Confirmation of minutes

That the Draft Minutes of the Ordinary Meeting of Council held on Tuesday, 19 November 2024 be confirmed as a true and accurate record of the meeting................................. 236

Information items

Agenda items

1 Fire Control Bylaw 2021........................................................................................... 6

2 Annual Plan 2025/26 - Adoption of Underlying Information.................................... 25

3 Ahuriri Investment Management............................................................................ 30

4 Introduction of a Statement of investment Policies and Objectives for the Proceeds of the Sale of Leasehold Land............................................................................... 47

5 Ocean Spa Pricing Strategy................................................................................... 79

6 Funding Framework............................................................................................... 96

7 Napier Hastings Joint Governance Structure - Local Alcohol Policy Joint Working Reference Group................................................................................................. 140

8 Hearing of objection to placing of Transport Shelter at Dalton Street, Napier, under S.339 Local Government Act 1974...................................................................... 145

9 Request for additional capital project funding - Transportation & Inner Harbour... 150

10 Mayoral Relief Fund - Distributions...................................................................... 155

11 Quarterly Performance Report............................................................................. 158

12 Hearings Committee membership........................................................................ 161

13 LGNZ Four-Monthly Report: July to October 2024............................................... 163

14 Ngā Mānukanuka o te Iwi Komiti Minutes - 13 November 2024............................ 186

15 Amendment to the 2025 Meeting Schedule.......................................................... 201

16 Action Points Register as at 25 November 2024.................................................. 205

17 Napier City Council Submission - Principles of the Treaty of Waitangi Bill............ 210

18 12.30pm - Royal Humane Society of New Zealand Medal Presentation............... 216

Minor matters not on the agenda – discussion (if any)

Reports / Recommendations from the Standing Committees

Reports from Audit and Risk Committee held 29 November 2024

1 Strategic Risk SR36............................................................................................. 219

2 Procurement and Contract Management Improvement Plan - Update.................. 221

3 Asset Management Roadmap Progress............................................................... 222

4 Internal Audit: Risk Management Report............................................................. 223

5 Risk Management Report.................................................................................... 224

6 Policy review process update............................................................................... 225

7 Sensitive Expenditure - Mayor and Chief Executive............................................. 226

8 External Audit Actions Status Update................................................................... 227

9 Health & Safety update report.............................................................................. 227

Reports under Delegated Authority

1 Tenders Let......................................................................................................... 229

Recommendation to Exclude the Public.............................................. 231

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 1

Agenda Items

1. Fire Control Bylaw 2021

Type of Report:	Legal
Legal Reference:	Enter Legal Reference
Document ID:	1805079
Reporting Officer/s & Unit:	Luke Johnson, Manager Regulatory Solutions

1.1 Purpose of Report

To seek Council approval to revoke the Fire Control Bylaw 2021 pursuant to Section 152B of the Local Government Act 2002

Officer’s Recommendation

That Council:

a. Approve the revocation of the Napier City Council Fire Control Bylaw 2021 pursuant to Section 152B of the Local Government Act 2002

1.2 Background Summary

This report looks at the performance of the Napier City Council’s Fire Control Bylaw and outlines the grounds for it to be revoked. This report will provide;

· an overview of the current fire control bylaw

· Legislative changes that have affected the fire control bylaw

· How NCC staff are currently using the fire control bylaw

The report further outlines what powers Council has to address complaints, concerns or issues relating to fires and/or smoke nuisances.

1.3 Overview

The Napier City Fire Control Bylaw attempts to control open-air burning to manage the following issues/situations:

· Allowing people to light open fires, including incinerators, only after first obtaining a Fire Permit from Council and complying with standard conditions

· Not allowing people in rural areas to light fires within dangerous circumstances

· No person in a private residential context may permit smoke or noxious fumes to be emitted to an extent that causes a ‘nuisance’. The bylaw allows Council to abate nuisance immediately

· Making it an offence to leave hot cinders in public places

· Prohibited Fire Seasons override any permit that allows a fire to be lit

· Council may prescribe a Restricted Fire Season. Council can still issue Fire Permits within restricted Fire Seasons

· Council may prescribe a Prohibited Fire Season. No person may light any fire in this season

· Council to publicly notify Restricted/Prohibited Fire Seasons

· Misc. provisions including the ability to put out non-complying fires, recover costs to do so and general offence provisions which are instigated through the courts

Note: In addition, NCC website states that “all fires are prohibited at beaches, parks, and reserves at all times”.

The Hawkes Bay Regional Council Regional Resource Management Plan places guidelines, standards and rules on burning material and open fires to protect air quality in the region. Some of these rules are region-wide, but also some specific to burning within the Napier and Hastings airsheds (urban areas).

Region wide rules:

Rule 20 – burning of prohibited items. The burning of any of the materials listed under rule 20 is permanently prohibited by HBRC throughout the region.

Rule 19 – burning of waste Burning on industrial or trade sites. Burning on industrial/trade sites can only be undertaken as per condition. Burning in the open on industrial/trade sites is otherwise prohibited in the region. Napier and Hastings airshed rules:

Rule 19c - outdoor burning during certain times of the year. Outdoor burning for any properties which fall within the Napier or Hastings airsheds is prohibited under Rule 19c during May, June, July and August inclusive. Strict exceptions exist for burning on horticultural land for disease control and/or orchard/vineyard redevelopment. Outside of these months outdoor burning is permitted under HBRC rules. HBRC requests to be informed by the TLAs and FENZ should officers from these agencies encounter fires which: contain prohibited items, are within the Napier/Hastings airsheds, and which are occurring at an industrial or trade site.

1.4 Legislative changes that have affected the fire control bylaw

Changes to the FENZ Act have made a number of the responsibilities controlled by Council under the Fire Control Bylaw, redundant. That is –

· As of 01 July 2017, FENZ not Council has been responsible for Restricted and Prohibited Fire Seasons and Fire Permits. Section 56 of the FENZ Act.

· FENZ has powers to extinguish fires where these are threatening persons or property or any road.

On 01 July 2018 the power to require the removal of vegetation which is deemed to be a fire hazard moved from Council to FENZ. There is no need for Council to continue to have a bylaw controlling this.

· Sections 65 to 68 and clause 39 of Schedule 1 of the FENZ Act relate to the removal of things that increase fire risk and came into force on 01 July 2018. Under section 65, FENZ may require the occupier or owner of land to remove or destroy any vegetation or other thing if FENZ consider it likely to increase the risk of fire.

· Under Section 67(2), if the owner or occupier fails to comply with the notice, FENZ may enter the land and do the thing or things required by the notice.

1.5 How Napier City Council staff are currently using the fire control bylaw

Council no longer issues Fire Permits and refers all requests to FENZ who have that power. Similarly, FENZ also sets Prohibited and Restricted Fire Seasons under the FENZ Act, not Council.

With regards to Fire Hazards brought to Council's attention, these types of enquiries/complaints are advised to contact FENZ as Council no longer handles complaints about potential fire hazards on land, which moved from territorial authorities (under sections 183 and 184 of the LGA) to Fire and Emergency under the Fire and Emergency NZ Act 2017 (sections 65 to 68) from 1 July 2018.

Fire and Emergency New Zealand has had statutory powers for the removal of vegetation and other things that increase fire risk. This is consistent with Fire and Emergency NZ’s principal objective of reducing the incidence of unwanted fire and its associated risk to life and property.

Permits for traditional cooking – Council has received some enquiries over the years seeking permission from NCC regarding permits for traditional cooking methods (Hangi) on private land. This follows the requirement under the current Bylaw to do so. It is not something that Council receives often, however on occasions Council has provided temporary permission to facilitate this activity, considering HBRC rules such as Rule 19c (prohibited outdoor burning during May, June, July and August).

Hangis don’t generally permit smoke typically to be a nuisance under our Health Act obligations.

Council also has a Memorandum of Understanding between HBRC, HDC and NCC dated 12/10/2021 (Attached) which articulates the responsibilities and responses to complaints about illegal burning or nuisance in the urban areas. The document refers to each Council's rules and bylaws. The document stipulates that during ‘prohibited/restricted’ seasons all burning complaints should be referred to FENZ. During May, June, July and August complaints regarding outdoor burning within Napier/Hastings ‘airsheds’ can be directed to HBRC but TAs are equally able to handle complaints using the Health Act. Outside airshed months TAs are best able to respond to urban burning complaints.

This is a practical MOU that is in operation throughout Hawkes Bay, however this will be required to be reviewed due to the recent changes to the FENZ Act and review of the NCC Fire Control Bylaw.

‘Nuisances’ caused from fires – Council continues to use the Health Act provisions which are further outlined below.

1.6 Where does legal responsibility sit now?

The table below outlines examples of fire control issues and where the legal responsibilities rest. The Changes column details who the responsible authority is for each fire control issue, and how NCC manage these issues now.

Fire control issue

Legal Responsibility Now

Changes and Actions

Fires in the open including garden and backyard fires

FENZ has powers to extinguish fires where these are threatening persons or property or any road. This does not cover smoke nuisance unless it is threatening visibility along a road. Garden / backyard fires are generally permitted as long as they are not dangerous, are during an open fire season or have a permit.

FENZ are able to put out dangerous fires, including fires which should have a permit but do not.

Control of open fires on private land including garden and backyard fires has been passed over to FENZ in line with the FENZ Act

FENZ is not able to act on issues of smoke nuisance which is dealt with below.

ACTION: manage any potential nuisances from outdoor fires through the nuisance provisions of the Health Act 1956 and the MOU agreement.

Smoke nuisance from open fires

Smoke nuisance is not addressed under the FENZ Act. FENZ can only take action where a fire threatens persons or property or any road. This does not cover smoke nuisance unless it is threatening visibility along a road.

The HB Regional Council Website states “HBRC has continued to take a hard line on pollution incidents. Successful prosecutions have been made for offensive odour, smoke, horticultural spray drift, and the burning of prohibited items. Monitoring, education, and enforcement action has resulted in strong consent compliance and fewer incidents reported to HBRC’s 24/7 Pollution Hotline”.

FENZ cannot respond to smoke nuisance. They only put out fires which pose a risk to persons or property or a road.

HBRC are considered a suitable agency to address complaints about smoke nuisance from outdoor fires. They have comprehensive rules under their Regional Resource Management Plan and can issue infringement notices and abatement notices.

On a practical level, currently, there is a MOU between HBRC, HDC and NCC which articulates the responsibilities and responses to complaints about illegal burning or nuisance in the urban areas. The document refers to each Council's rules and bylaws. The document stipulates that during ‘prohibited/restricted’ seasons all burning complaints should be referred to FENZ. During May, June, July and August complaints regarding outdoor burning within Napier/Hastings ‘airsheds’ can be directed to HBRC but TAs are equally able to handle complaints using Health Act. Outside airshed months TAs are best able to respond to urban burning complaints.

ACTION: manage any potential nuisances from outdoor fires through the nuisance provisions of the Health Act 1956 and the MOU agreement.

Fires in public places, parks and reserves

When putting out fires FENZ deem a dangerous fire a dangerous fire regardless of whose land it is on.

Similarly with the issuing of fire permits now under FENZ, these are considered and issued in public places, parks and reserves.

FENZ does not consider land tenure when issuing fire permits. This means anyone can apply to have a fire on a Council reserve and unless it is dangerous a permit will be given. This however does not excuse the applicant from the need to obtain landowner permission from Council as well as the permit. (if required)

Even without the bylaw, Council retains the ability to make rules about what activities it will allow on its land; including the rules around lighting fires in parks.

ACTION: FENZ manage fires in public places, parks and reserves along with TA per Health Act 1956 and MOU.

Restricted and Prohibited Fire Seasons and Fire Permits

FENZ control this under section 56 of the FENZ Act.

As of 01 July 2017, FENZ is responsible for Restricted and Prohibited Fire Seasons and Fire Permits.

ACTION: FENZ manage fire seasons and Fire Permits.

Extinguish Fires

FENZ has powers to extinguish fires where these are threatening persons or property or any road.

HBRC can issue infringement and abatement notices if a fire breaches their Air Shed rules.

The powers of FENZ to extinguish fires are considered sufficient for fire safety.

ACTION: FENZ manage extinguishing fires and HBRC manage additional/necessary enforcement action for breaches within Air Shed.

Removal of fire hazards

Section 200 of the FENZ Act repeals sections 183 and 184 of the LGA 2002 and the crossheading above section 183.

Sections 65 to 68 and clause 39 of Schedule 1 of the FENZ Act relate to the removal of things that increase fire risk and came into force on 01 July 2018.

Under section 65, FENZ may require the occupier or owner of land to remove or destroy any vegetation or other thing if FENZ consider it likely to increase the risk of fire.

Under Section 67(2), if the owner or occupier fails to comply with the notice, FENZ may enter the land and do the thing or things required by the notice.

On 01 July 2018 the power to require the removal of vegetation deemed a fire hazard moved from Council to FENZ.

ACTION: FENZ manage removal of fire hazards.

1.7 How will the Community be informed

Upon revoking the NCC Fire Control Bylaw, Council will update their fire control website to give easy guidance for the community on fire control and which Council they need to contact. This guidance will reflect the current legislative requirements and be consistent with the guidance provided by other councils in the region.

1.8 Conclusion

Council has undertaken engagement with Fire and Emergency New Zealand and as a result has identified an opportunity to apply a consistent approach to fires and burning throughout Hawkes Bay and as required under the current legislation.

A number of the current provisions in the Fire Control Bylaw 2021 are redundant due to changes to the FENZ Act giving FENZ greater responsibilities to manage Restricted and Prohibited Fire Seasons and Fire Permits/Hazards. The report also concludes that outstanding bylaw provisions around nuisances caused by fires can be adequately handled through either the 'nuisance' provisions under the Health Act or by HBRC through their Regional Plan rules.

1.9 Attachments

1 MoU Hawke's Bay Council's Fire Burning (Doc Id 1813100)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 2

2. Annual Plan 2025/26 - Adoption of Underlying Information

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	1810822
Reporting Officer/s & Unit:	Danica Rio, Senior Advisor Corporate Planning Caroline Thomson, Chief Financial Officer / Acting Executive Director Corporate Services

2.1 Purpose of Report

To formally approve the underlying information and direction given to date on the Annual Plan 2025/26. The information in this report will be used to inform the development of the Annual Plan 2025/26 consultation document and supporting information. Please note, further information that will also inform development will be provided at the February 2025 Council meeting.

Officer’s Recommendation

That Council:

a. Adopt the content of the report titled “Annual Plan 2025/26 – Adoption of Underlying Information” as the underlying information that will inform the development of the Annual Plan 2025/26 consultation document and supporting information, noting further information that will also inform development will be provided to Council for consideration in February 2025.

b. Note the proposed rates increase for 2025/26 will be a 7.9% average increase for ratepayers, noting this is 3.8% less than the increase forecast in the Three-Year Plan 2024-27 (11.7%).

c. Agree the following matters will be included in the consultation document, noting work planned for the remainder of 2024 and early 2025 may result in additions to this list:

i. Proposed rates increase

ii. Proposed changes to fees & charges

iii. Reimagine facilities

iv. Commercial facilities

v. CCTO

d. Note the proposed capital programme amounts to $159.6m, noting this is $17.3m more than the capital programme forecast in the Three-Year Plan 2024-27 ($142.3m).

e. Agree to the inclusion of a 20% probability assumption to be applied to the 2025/26 capital programme, noting:

i. That once applied, the assumption brings the total capital programme to $127.7m, and

ii. The assumption accounts for external factors beyond Council’s control that have the potential to impact work planned, while still providing the flexibility needed to maximise delivery.

f. Note the detailed engagement plan for consultation on the Annual Plan 2025/26 and detailed consultation topic information will be reported to Council in February 2025.

2.2 Background and development process to date

Councils must prepare and adopt an Annual Plan for each financial year that a Long Term Plan (LTP) is not produced (the two interim years between reviewing the LTP every third year), as per section 95 of the Local Government Act (LGA). Napier City Council’s Three-Year Plan 2024-27 (replacing the LTP this cycle) was adopted on 27 June. The 2025/26 financial year represents year two of the current Three-Year Plan (TYP).

On 26 September, a paper that provided an overview of the timeline that would be followed to develop the Annual Plan 2025/26 was received by Council. Following that, budget review work was undertaken by officers. This involved the scrutinising of capital and operating budgets to identify potential cost savings and efficiencies, while ensuring proposed budgets still enable the delivery of the work Council committed to through the adoption of the TYP.

Following the review of budgets by officers, proposed budgets and available levers for 2025/26 were workshopped with Council on 31 October, 19 November, and 5 December. The direction provided by Council at those workshops forms the basis of this report.

2.3 Proposed rates increase

The direction provided by Council to date results in an average proposed rates increase of 7.9% for 2025/26, which is 3.8% less than the rates increase of 11.7% proposed in the TYP 2024-27 for the corresponding year.

As noted in the section above, baseline expenditure and financial forecasts were reviewed in detail, and cost savings have been actioned where possible as part of ongoing efficiency programmes. A breakdown of the rates increase for 2025/26 is detailed in the table below:

TYP Y2 (25/26) forecast rates increase	11.70%
Approved changes	1.35%
Electricity/gas	1.02%
Insurance	0.69%
Other costs	0.16%
HB Tourism funding	0.30%
	15.22%
*Savings*
Interest saving	-0.54%
Efficiency targets	-4.62%
Resilience rate decrease	-0.60%
Napier Assist funding change	-1.56%
Proposed rates increase 2025/26	7.90%

The 7.9% average rates increase will be socialised with the community through the Annual Plan consultation document.

1.4 Proposed capital programme

While Council has not deviated from what was set out in the TYP, projects have been brought forward to enable compliance with legislation.

The below table provides a summary of the capital plan for year 2 of the TYP compared to the proposed capital plan for the Annual Plan 2025/26. The figures include ‘light touch’ items such as vested assets, Omarunui funds, Redclyffe funds, and MTG purchases, as well as spend for Te Aka and the Civic area.

Activity Group	TYP Year 2 (2025/26)	Change (+ / -)	Annual Plan 2025/26
*Governance and Representation*	85,573	0	85,573
*Transportation*	32,362,959	+6,233,814	38,596,773
*Stormwater*	5,897,155	+3,636,848	9,534,003
*Wastewater*	10,181,290	+229,803	10,411,093
*Water Supply*	9,184,280	-1,485,429	7,698,851
*Other Infrastructure*	4,860,479	+68,140	4,928,619
*City Strategy*	735,103	+752,020	1,487,123
*Community and Visitor Experiences*	22,820,870	-1,216,761	21,604,109
*Property Assets*	51,882,859	+9,076,301	60,959,160
*Support Units*	4,306,487	0	4,306,487
Total	$142,317,056	+$17,294,736	$159,611,792
*Probability assumption*			($31,922,358)
Total capital Annual Plan 2025/26			$127,689,434

Probability assumption

Officers are recommending the inclusion of a probability assumption to be applied to the 2025/26 capital programme. The 20% assumption as shown in the table above, accounts for external factors beyond Council’s control that have the potential to impact the work that has been planned (e.g. reliance on the availability of contractors, reliance on third parties in terms of timing for joint projects, market changes, etc.).

Applying the assumption to the capital programme as a whole (rather than applying it to individual projects) accounts for these external factors while still providing the flexibility needed to maximise delivery. The assumption also benefits Council and the community through reduced interest expense due to reduced borrowing.

1.5 Topics to be included in the consultation document

As per section 95 of the Local Government Act 2002 (LGA), there is a legislative requirement for Council to consult with its community on an Annual Plan if there are significant/material changes from what was set out in the relevant year of the Long Term Plan. Napier City Council’s Significance and Engagement Policy has been used to assess the significance/public interest in matters discussed throughout the Annual Plan development process to date. As a result of this assessment process, the below topics are expected to be included in the Annual Plan consultation document:

· Proposed rates increase: Update on proposed increase.

· Proposed changes to fees & charges: Update on general CPI increases and consult on any significant increases. An updated schedule of fees & charges will be provided for consideration at the Council meeting in February 2025.

· Reimagine facilities: (Faraday, Aquarium, i-Site, McLean Park). Update on progress made and consult on any options available for each facility by the Council meeting in February 2025.

· Commercial facilities: (Kennedy Park, Napier Conference & Events, Ocean Spa). Update on progress made and consult on any options available for each facility by the Council meeting in February 2025.

· CCTO: Update on progress made.

Work will continue over the remainder of this year and in early 2025 to confirm specific details for each topic. Depending on the outcome of this work, additional topics may be added to the above list. The final list and detailed topic information will be provided for consideration at the Council meeting in February 2025. The detailed engagement plan will also be provided to Council for consideration in the New Year.

2.6 Significance and Engagement

Annual Plan consultation will comply with the requirements set out in the LGA and Council’s Significance and Engagement Policy. As noted above, the detailed engagement plan will be provided to Council for consideration in early 2025.

2.7 Implications

Financial

As part of the TYP 2024-27 Council approved a quantified limit on rates of 11.8% (8.3%, plus 3.2% LCGI, plus 0.3% factored in for growth) with a proposed increase of 11.7%. The proposed Annual Plan rates increase is 7.9% which is below the quantified limit on rates.

Social & Policy

The proposals contained in this report have been assessed as compliant with relevant Council policies.

Risk

Failure to deliver the proposed capital plan for 2025/26. The application of a probability assumption as recommended by officers will help to mitigate this risk by accounting for external factors beyond Council’s control that have the potential to impact work planned, while still providing the flexibility needed to maximise delivery.

Budgets set for the Annual Plan 2025/26 may be insufficient to support work that is driven by central government (e.g. Local Water Done Well, changes to the Resource Management Act, etc.). To help mitigate this risk, officers will continue to keep up to date with information coming from central government and other related agencies.

The outcome of pieces of work that are currently underway (e.g. reimagine facilities, etc.) may result in the requirement for an amendment to the TYP in the 2025/26 financial year. Officers will assess requirements as work progresses.

2.8 Options

a. Adopt the content of this report as the underlying information that will inform the development of the Annual Plan 2025/26 consultation document and supporting information, noting further information that will also inform development will be provided to Council for consideration in February 2025.

b. Not adopt the content of this report as the underlying information that will inform the development of the Annual Plan 2025/26 consultation document and supporting information.

c. Adopt in part the content of this report as the underlying information that will inform the development of the Annual Plan 2025/26 consultation document and supporting information, and direct officers where to depart from the recommended approach, noting further information that will also inform development will be provided to Council for consideration in February 2025.

2.9 Development of Preferred Option

Option a – Adopt the content of this report as the underlying information that will inform the development of the Annual Plan 2025/26 consultation document and supporting information, noting further information that will also inform development will be provided to Council for consideration in February 2025.

2.4 Attachments

Nil

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 3

3. Ahuriri Investment Management

Type of Report:	Procedural
Legal Reference:	Local Government (Rating) Act 2002
Document ID:	1803023
Reporting Officer/s & Unit:	Richard Munneke, Commercial Director

3.1 Purpose of Report

This report is the third in a series focused on decision making for the formation and establishment of a council-controlled trading organisation (CCTO). The CCTO will be tasked with managing a commercially focussed investment portfolio. Aligning and delivering on the expectations and objectives outlined in the FY24/27 Three Year Plan.

This report specifically seeks approval and endorsement for steps needed to continue with the process of establishing the Napier City Council (NCC) Investment Portfolio. Specifically these items are needed to start the CCTO Board recruitment process. These items are:

· A draft Statement of Expectations;

· The assets to be defined as the NCC Investment Portfolio; and

· An operating model whereby a CCTO board will be delegated responsibilities to manage specific Council assets for commercial return.

A separate paper will follow at the meeting for the approval of the Managed Funds Statement of Performance and Objectives (SIPO)

Officer’s Recommendation

That Council:

a) Approve, in principle, the draft Statement of Expectation.

b) Endorse the table identifying roles and responsibilities (TABLE 1) to underpin the delegations from the Council to Ahuriri Investment Management (AIM) in respect of the NCC Investment Portfolio.

c) Approve Tranche 1 of assets to be the NCC Investment Portfolio, being:

- Parklands Residential Development, including the unspent portion of the capital works development budget as set out in the 2024 – 2027 Three Year Plan of $46,646,212m supported by a $30m facility.

- 398 Prebensen Drive, Tamatea (Lot 1 DP 14906)

- 17 Allen Berry Avenue, Pirimai (Lot 126 DP 11689)

- 11 Hospital Terrace, Napier Hill (Lot 100 DP 493568)

- 5 Tangaroa Street, Ahuriri (Lot 2 DP 17736)

- 115 Battery Road, Ahuriri (Lot 11 DP 556903)

- 113 Battery Road, Ahuriri (Lot 158 DP 4703)

- 111 Battery Road, Ahuriri (Lot 157 DP 4703)

- Commercial and industrial leasehold land portfolio as set out in TABLE 2

- Council 26% shareholding in Hawke’s Bay Airport Limited

- Council’s Managed Funds facility to be governed by the SIPO

d) Endorse in principle the NCC Investment Portfolio being a Strategic Asset of Council and included in the 2026 Draft Annual Plan for public consultation.

3.2 Background Summary

In 2023 work started on a long-term investment strategy to guide how to better use the Council investment assets of circa $160 million to bring in a more consistent income stream, reduce reliance on rates to fund activities, and protect inter-generational interests.

Through the 2024 – 2027 Three Year Plan consultation, and subsequent Council approval of the plan, Council resolved to establish a council-controlled trading organisation (CCTO) to commercially manage Councils investment assets for the benefit of ratepayers now and in the future.

Following the adoption of the 2024 – 2027 Three Year Plan, work has been progressing to establish the investment portfolio and CCTO including making the following decisions at the Prosperous Napier Committee 29 August 2024:

a) Approved Ahuriri Investments Management Limited (AIM) as the official name of the Council Controlled Trading Organisation to manage Napier City Council’s Investments.

b) Endorsed in principle the following asset classes as being suitable for the NCC Investment Portfolio to be managed by the CCTO:

i. Parklands

ii. Select surplus NCC property

iii. Leasehold land portfolio

iv. Shareholding in Hawke’s Bay Airport Limited

v. Managed Funds

c) Approved a maximum of 5 directors be appointed to the CCTO board of directors, consisting of

· 3 independent Directors, including the Chair.

· A maximum of 2 elected members

d) Adopted the amended Appointment and Remuneration of Directors Policy (Doc Id 1786178)

3.3 Issues

Establishing the NCC Investment Portfolio and AIM as the Investment Manager

Transitioning Council commercial investment portfolio from internal management to being under the management of AIM requires a structured approach. The key next steps in the process are:

· Approving Council’s draft Statement of Expectations (SOE) to the AIM Board of Directors;

· Approval of the specific assets to be included in the NCC Investment Portfolio; and

· Endorsement of the roles and responsibilities, at a high level, of the Council and the CCTO;

Once resolved, these steps will enable recruitment and appointment of the Board of Directors to commence in line with the Appointments Policy.

Statement of Expectations

The Statement of Expectations (SOE) is a key document by which the Council sets out its expectations of the NCC Investment Portfolio and its appointed investment manager, Ahuriri Investments Management Limited.

Each year the Council will have the opportunity to set a Statement of Expectations. This first Statement of Expectation is a foundation document and is needed to support the recruitment of the AIM Board of Directors.

Attachment 1 sets out the first draft SOE. Sections include: a History of Council investment assets; the expectation of AIM as the Council CCTO; the purpose and key principles of the NCC Investment Portfolio; a description of the NCC Investment Portfolio; relationship and reporting expectations; and the investment mandate.

It is recommended that Council approve in principle a draft SOE outlining what Council expects prospective Directors to achieve so recruitment of the AIM Board of Directors can commence. The Draft SOE can be finalised once AIM becomes a full legal entity, with a constitution. The AIM Board of Directors (once they are in place) will review the SOE and have the opportunity to clarify points in the SOE. Council will need to approve the final SOE before 1 July 2025.

Enabling the CCTO to operate

It is proposed that the NCC Investment Portfolio remain on the Council balance sheet, and AIM be appointed as the investment manager. The arrangement keeps all assets under their current ownership.

As the assets are to remain on the Council balance sheet it is important to have clearly defined roles and responsibilities. Role clarity will enable AIM to design and execute a strategy to meet the Council’s expectations as set out in the SOE.

To support this process the Council must delegate responsibilities, including management of the assets, in a manner that empowers AIM to operate commercially while allowing Council to retain an appropriate level of oversight. Therefore, an important part of the process is to determine what matters should not be delegated to AIM.

The appointment of AIM as investment manager, along with what it is being delegated, will be documented in a Management Services Agreement. This document will be presented to Council for approval by 1 July 2025.

The table below sets out the key activities related to the NCC Investment Portfolio and where the accountability and responsibility sits. This table will inform the development of delegations and management arrangements in the Management Services Agreement.

TABLE 1: Key functions & activities	Council	AIM Board
NCC Investment Portfolio	Accountable	Responsible
Defining the operating guardrails: · Significance & Engagement Policy · Investment Policies · Statement of Expectations · Defining assets for the NCC Investment Portfolio · Management Service Agreement	Accountable & Responsible	Consult & Inform
Operate within the defined guardrails	Inform through quarterly reporting	Accountable & Responsible
Provide annual Statement of Intent to document strategy and intentions for coming three years	Receive	Accountable & Responsible
Develop investment strategy for NCC Investment Portfolio to deliver Council expectations. This includes actively seeking and considering opportunities to buy/sell/development individual assets within the portfolio.	Consult	Accountable & Responsible
Executing transactions within defined guardrails	Support	Accountable & Responsible
Raising debt to support execution of Investment Strategy	Accountable & Responsible	Support
Day to day operational management of assets. This includes. · Managing the collection of income, repairs and maintenance, rent/lease renewals. · Selecting and managing the Investment Fund Manager · Servicing of debt	Inform through quarterly reporting	Accountable & Responsible
Providing an annual cash contribution to Council from the Investment Portfolio as set out in the Statement of Expectations	Receive	Accountable & Responsible
Provide quarterly, and annual performance reporting	Receive	Accountable & Responsible

The definition of terms in the table are set out in Attachment 1.

To support AIM with its responsibilities, the Council will make available internal resources. The specific details of this arrangement will be documented in the Management Services Agreement.

As AIM settles into its work it is expected Council and AIM will work together to refine the service and service level expectations to support the successful commercial focus of the NCC Investment Portfolio.

Confirmation of NCC Investment Portfolio Tranche 1 assets

As set out in the roles and responsibilities above, a key accountability of Council is to define the assets within the NCC Investment Portfolio.

On 29 August 2024 Council approved in principle five asset classes. Officers have undertaken a review of specific assets within these asset classes and now present the list of assets recommended for Tranche 1 inclusion in the NCC Investment Portfolio. These are refenced in the draft 2025 SOE.

Council can consider (through the final 2025 SOE or future SOE’s) other suitable assets for inclusion in the Investment Portfolio that it is requesting AIM to manage. Any additional assets will be bought forward to Council on a case-by-case basis.

Parklands Residential Development	Parklands Estate development, including the residual Development budget as approved in the 2024 – 2027 Three Year Plan of $46,646,212m (across years 1-7) and access to a debt facility of $30m to fund such budgeted development. - Council will be expecting that AIM manage the completion of Parklands. Council will therefore provide the budget and debt facility enables AIM to do this. - Officers have estimated this level of debt facility is sufficient for AIM to manage the Parklands development cashflows over the remaining development cycle. - The Management Services Agreement will set out the responsibility for AIM to service the debt and set out the process and controls for drawing down the debt.
Surplus land	The following seven surplus land titles: - 398 Prebensen Drive, Tamatea (Lot 1 DP 14906) - 17 Allen Berry Avenue, Pirimai (Lot 126 DP 11689) - 11 Hospital Terrace, Napier Hill (Lot 100 DP 493568) - 5 Tangaroa Street, Ahuriri (Lot 2 DP 17736) - 115 Battery Road, Ahuriri (Lot 11 DP 556903) - 113 Battery Road, Ahuriri (Lot 158 DP 4703) - 111 Battery Road, Ahuriri (Lot 157 DP 4703)
Leasehold land	67 commercial and industrial leasehold properties referenced in the 2024 – 2027 Three Year Plan as set out in Appendix 2, TABLE 2.
HBAL	26% shareholding in Hawke’s Bay Airport Limited
Manged Funds	There is currently no Managed Fund Portfolio within Council. The approval of the SIPO will enable investment of existing reserves or proceeds of diversification to be invested as determined by the AIM Board Analysis is still in progress to establish available reserves that would allow cash to be available for managed funds

3.4 Significance and Engagement

The decision to establish a CCTO to manage a commercially focused investment portfolio, to manage Council’s investment assets was consulted on through the 2024 – 2027 Three Year Plan process.

Consultation is required to add the NCC Investment Portfolio to the Strategic Asset List with the Significance and Engagement Policy. The intention is to consult on the inclusion as part of the 2025 Annual Plan consultation.

Investment decisions relating to the NCC Investment Portfolio assets that are individually named in the Significance and Engagement Policy may require consultation. This requirement and expectation will be documented legally between the Council and AIM through the Management Service Agreement.

3.5 Implications

Financial

The Financial implications of the CCTO have been established at a high level through the 2024 – 2027 Long Term Plan.

The Statement of Expectations contains a cash target for AIM to achieve from the Investment Portfolio (after AIMs costs) for the next three years. Council will continue to apply revenue derived to a combination of Financial Reserves and rates offsets.

The cash targets will be smoothed to ensure Council gets a constant and growing cash income stream to support the operation of Council. This is particularly relevant with land development assets where historically, due to market demand, Council has had a feast or a famine.

In addition to the cash target, AIM will also ensure the underlying value of the Investment Portfolio is inflation proofed for future generations and retained for future reinvestment. This includes any land revaluation at Parklands Area 4, being retained by AIM to enable this income stream to continue beyond Parklands.

The process for developing the Management Services Agreement and practical operating arrangements between Council and AIM will develop the specific services being provided by AIM for the management of the NCC Investment Portfolio. This process will determine the management and service fees between the two entities. This work is expected to be complete by 1 July 2025.

Social & Policy

Policies relating to the investment activity have previously been amended to allow the NCC Investment Portfolio to be created and managed by an investment manager.

The Council resolved after consultation for the 2024-27 Three Year Plan to establish an investment portfolio to be managed by a CCTO for commercial focus.

As the work to implement the NCC Investment Portfolio managed by AIM continues, Officers will be reviewing related policies and ensuring these will enable the arrangements needed. Any amendments will be bought forward as required.

Risk

Risk Description	Risk Owner	Mitigation
Introducing a new operation model increases operational risk due to lack of clarity on roles and responsibilities and revised operating processes.	Jessica Ellerm, Project Sponsor	· Development of Management Service Agreement · Project Change Plan to embed a new way of working and establish accountabilities
Failure to source suitable candidates for AIM Board of Directors o delays the operating model being embedded	Jessica Ellerm, Project Sponsor	· Intent to use external recruiter to manage recruitment process. · Project governance to support overall momentum and support pragmatic decisions until Board appointed
NCC Investment Portfolio does not deliver the expected commercial performance uplift	Jessica Ellerm, Project Sponsor	· Appointment of commercially focused investment manager (AIM) with 3 independent directors; · Board recruitment policy to ensure right skills and experience identified · Smoothing policy set out in SOE to manage market volatility over time · Quarterly reporting · Expectation of two way no surprises relationship

3.6 Options

Officers are confident the initial arrangements needed for the NCC Investment Portfolio to be managed by AIM will be in place by 1 July 2025.

Further understanding of the work required and timing has developed over the last quarter. Below are the key steps and milestones:

Objective:	Target Date:	Status:
Consultation on CCTO	Q2 2024	Complete
Draft Statement of Expectation accompanying delegations and Appointment Policy	Q3 2024	For Approval in this Paper
Identify NCC Investment Portfolio Assets	Q4 2024	For Approval in this Paper
Define high level operating framework – guardrails, delegations, roles and responsibilities	Q4 2024	For Approval in this Paper
Independent Director Appointment in line with Appointment and Remuneration of Directors Policy (Doc Id 1786178)	Q1 2025	Not started . Policy approved.
Management Services Agreement Drafted	Q1 2025	Not started
Appoint Investment Fund Manager in accordance with Council SIPO	Q2 2025	Not started
1^st tranche Commercial Asset Delegation	Q1 2025	Not started
First AIM Board meeting	Q2 2025	Not started
AIM responsible for NCC Investment Portfolio	1 July 2025	n/a

3.7 Development of Preferred Option

N/A

3.8 Attachments

1 Draft Statement of Expectations (Doc Id 1814977)

2 CCTO Table 2 Investment Portfolio Tranche 1 Leasehold land (Doc Id 1815154)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 5

5. Ocean Spa Pricing Strategy

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	1812459
Reporting Officer/s & Unit:	Hayden Henderson, Conferences & Events Manager

5.1 Purpose of Report

To provide recommendations on pricing additions and changes for Ocean Spa.

Officer’s Recommendation

That Council:

a. Approve the implementation of Stage 1 for ‘Lane Swim Only Rates’ and ‘Gym Only Rates’ effective 13 December 2024.

b. Approve the implementation of Stage 1 for ‘Locals Rate’, effective 13 December 2024,

c. Note that online bookings for the “Locals Rate”, as Stage 2 will not be effective until 28 February 2025.

5.2 Background Summary

Napier City Council acquired Ocean Spa in early 2022 and opened it in May 2023. With limited transparency of expenditure, asset investment and business operations from previous owners it was recognised that pricing across the board did not rise with expenditure over a 10-year period; nor was the asset invested in accordingly.

‘Reviewing the business in the 2024/25 annual fees and charges it was decided the business needed to adopt a cost recovery approach which would be implemented from 1 July 2024, seeing increases of up to 60% for pool single entry and up to 35% for gym membership. These increases also coincided with the Facilities Business Review where Ocean Spa was identified as a commercial facility, along with Kennedy Park Resort and Napier Conferences and Events and the commercial modelling work to enable breakeven for each business activity.

At the Council meeting on 27 May 2024 the following resolution was carried:

“That Council:

Recognise the majority of Ocean Spa customers are local.

Review the fees and charges for the 2024/25 year, to investigate rates for supergold card holders, residents discounts, off peak time access and compartmentalised facility access i.e. gym/pool only, combined.

Direct officers to review the Ocean Spa pricing structure, product design and number of staffing resources, to work towards councils’ direction of a commercially viable business in year 3”.

In relation to Ocean Spa the 2024-2027 Three-year Plan states:

· From 1 July 2024, this activity will move to commercial operations. It will take some time for full implementation, but we have planned for the activity to be financially self-sufficient by the end of this Three-Year Plan. We will increase Ocean Spa’s commercial focus by continuously raising standards. We will focus on effectively managing services, pricing and the user experience.

· Ocean Spa’s commercial focus by continuously raising standards. We will focus on effectively managing services, pricing and the user experience.

5.3 Issues

From July 1, 2024, prices increased. Resulting feedback from some customers and members that prices were too high for single pool and gym membership.

Price point increase effect:

1 July – 31 August 2023 vs 2024 saw a reduction of approximately 5,000 single entries into the pool.

5.4 Significance and Engagement

Pre-engagement with current membership via email on changes that will become available prior to going to the public. Its critical we get buy in from members as this is the largest base of customer at Ocean Spa.

5.5 Implications

Financial

Existing members changing from premium gym to ‘gym only’ and premium gym to ‘swim only, this would result in reduction of revenue.

Gym membership cancellations due to members signing on to secure ‘lower’ prices before increase (1 July 2024) many of these ‘expire’ in December or mid-2025.

Social & Policy

N/A

Risk

Social media opposition to recommendations.

5.6 Options

The options available to Council are as follows:

a. Approve all recommendations

b. Approve ‘Locals only rate’

c. Approve ‘Gym Only rates’

d. Approve ‘Lane Swim Only rates’

e. Status quo, make no changes

5.7 Development of Preferred Option

Preferred option is to proceed with approval of all recommendations. This will require a staged release due to work required in the back-end of websites:

Stage 1: In house roll out, December 2024

‘Gym only rate’ – Green card

‘Lane Swim only rate’ – Navy card

Requires point of sale button addition and membership modification and new swipe/access cards

Stage 2: New year roll out, February 2025

‘Locals rate’ – Customized card

Requires website changes, customized registration links to point of sale account setup and a soft roll-out for testing.

Will roll out earlier if work is completed earlier.

5.8 Attachments

1 2024-11-11 Ocean Spa Pricing Strategy (Doc Id 1815395)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 6

6. Funding Framework

Type of Report:	Operational and Procedural
Legal Reference:	N/A
Document ID:	1804087
Reporting Officer/s & Unit:	Margot Wilson, Team Leader Community Strategies

6.1 Purpose of Report

This report recommends Council adopt the draft Grants and Funding Policy Framework and the Grants and Funding Guidelines and Criteria as shown in attachment 1 and 2.

Officer’s Recommendation

That Council:

a. Adopt The Napier City Council Grants and Funding Policy Framework.

b. Adopt the Napier City Council Grants and Funding Guidelines and Criteria.

6.2 Background Summary

Council’s community funding purpose is to support the delivery and achievement of outcomes that align with the Long-term Plan. To this end Council staff have worked closely with community organisations to meet the needs and aspirations of local communities. The funding environment has been changing and in 2021 a review of Community Funding was initiated. Due to unforeseeable circumstances, it was not until October 2023 that a Community Funding Review was delivered with recommendations for Council’s consideration. This document was workshopped with Councillors in February 2024 and Officers received guidance to work on these recommendations:

· To develop a new community framework that aligns with Napier City Council’s Long-term Plan objectives and strategic priorities.

· To draft new grant distribution policies and guidelines that would clearly define eligibility, funding priorities and evaluation criteria.

· Design grant application forms and templates for accountability and reporting.

· Consider opportunities in community funding investment to progress Māori social wellbeing and support the aspirations of mana whenua through discussion with Te Waka Rangapū. Including measurable outcomes, updated fund criteria, exclusions, funding amounts, timeframes, policies, guidelines, and procedures

· Review the existing economic development fund administered by Napier City Council, including measurable outcomes, fund criteria, exclusions, funding amounts, timeframes, policies, guidelines, and procedures.

Jenni Giblin from funding HQ was contracted in May 2024 to complete the above work. Funding HQ have undertaken a comprehensive document search, met with Community Strategy Funding Staff, Roger Morrison, Margot Wilson and Anne Bradbury, Te Waka Rangapū Pou Whakarae, Morehu Te Tomo, Economic Development Manager Bill Roberts and presented and sought feedback at two Council workshops in July and September. As the work progressed the Waste Minimisation Fund was also brought within the draft framework.

6.3 Issues

The Grants and Funding Policy Framework and supporting document Grants and Funding Guideline and Criteria being presented today are the culmination of the above consultations and collaborations.

Napier City Council (Council) provides over $1 million per annum in funding for not-for-profit community and voluntary organisations that provide services, projects, initiatives, and events to Napier residents across the city. The Funding Framework ensures that this funding is contributing appropriately to the sector to achieve positive outcomes for our city. The guidelines and criteria support the grants and funding framework to be straightforward, easy-to-use and appropriate in terms of the effort required to make applications and account for funding spent.

The Framework proposes the following key changes:

· Current Service Level Agreements are replaced with a Community Partnership Fund. This fund which will see existing Service Level Agreement recipients and other invited community providers enter into a contestable process to secure a 3-year Funding agreement.

· The current Community Development Grant and Community Services Grants will be consolidated into a single fund that will be open for applications biannually. Applications can be up to $20,000.

· All funds identified in the Framework will start using the Smartygrants portal for application, assessment and accountability.

· All funds have a transparent funding process for application, assessment and responses back to applicants.

· The threshold for the Council Projects Fund is lowered from $30,000 and will start from $20,000 to provide a funding continuum.

There are no changes to the amount that council funds using the Funding Framework, funding budgets have been unchanged. If approved, the Funding Framework, guidelines and criteria will commence year on 1 July 2025.

6.4 Significance and Engagement

This is not a significant issue and the same amount of funding for grants will be available. However it does affect community organisations so a communication plan has been developed to ensure Council funded groups are brought up to speed as quickly as possible with the changes including how they may be affected and any new processes they may need to become familiar with. The communication plan includes letters to providers, information sessions and training sessions for the new Smartygrants forms. If the documents are approved, there will need to be changes to the website, with the development of Fund information, and more simplified access to information and the Smartygrants portal. A high-level communication and engagement plan is shown in Attachment 3.

6.5 Implications

Financial

The proposed changes to the Funding model under the Framework will have no financial implications on the current funding budget as it utilises the current budgets for the existing grants.

Social & Policy

The Grants and Funding Policy Framework will streamline Council’s funding processes making it more equitable and transparent for both community organisations and the community at large. It reflects current best practice in terms of grant distribution and accountability and will ensure a more structured and clear alignment between the community outcomes also providing the community with a clearer understanding of the Council’s funding priorities.

Risk

The timeframe for the roll out of the Framework is relatively short, 6 months following Council approval. Prior to the Framework’s implementation there will be one Creative Community Funding round, the final Community Services Grant funding round and ongoing Community Development Funds available. With the commencement date of 1 July 1 2025, there are significant operational and socialisation responsibilities that will need to be managed. A communications plan mentioned above and shown in Attachment 3 will ensure Council funded groups are brought up to speed as quickly as possible with the changes including how they may be affected and any new processes they may need to become familiar with.

The most significant risk involves the organisations currently being funded through Service Agreements. In June 2024 these organisations were advised that their current agreements would roll over for another year whilst the Framework was developed. The Framework recommends a new Community Partnership model. There is a new process for applying for this funding stream and going forward we will be providing them with expedient information as well as Council officers being available to meet and support them through the new processes.

6.6 Options

The options available to Council are as follows:

a. Preferred option: Approve the Napier City Council Grants and Funding Policy Framework and the supporting document Grants and Funding Guidelines and Criteria.

b. Status quo, keep the current funding regime and make no changes.

6.7 Development of Preferred Option

The preferred option is to approve the Grants and Funding Policy Framework and the Grants and Funding Guidelines and Criteria. The Framework will ensure grants and funding decisions made by Napier City Council align to the vision, priorities and principles of the Council’s primary strategic documents, including the Long-Term Plan (Three-Year Plan), the City Vision and community strategies and policies.

6.8 Attachments

1 NCC GRants Funding Framework Policy (Doc Id 1814620)

2 NCC Grants and Funding Guidelines (Doc Id 1814619)

3 Funding Framework high level communication and engagement plan (Doc Id 1814624)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 7

7. Napier Hastings Joint Governance Structure - Local Alcohol Policy Joint Working Reference Group

Type of Report:	Procedural
Legal Reference:	Enter Legal Reference
Document ID:	1810892
Reporting Officer/s & Unit:	Stephen Bokkerink, Team Leader Compliance Jon Read, Environmental Health and Alcohol Licensing Officer

7.1 Purpose of Report

The purpose of this report is to seek Council’s approval to appoint three elected members to a Local Alcohol Policy Joint Working Reference Group in order to proceed with the review of the Local Alcohol Policy.

Officer’s Recommendation

That Council:

a. Approve Councillor Taylor, Councillor Greig and Councillor Chrystal, as Napier City Council’s representatives on the Local Alcohol Policy Joint Working Reference Group (Working Group) with Hastings District Council.

b. Note the structure and Terms of Reference for the Local Alcohol Policy Joint Working Reference Group.

7.2 Background Summary

On 24 October 2024, the Future Napier Committee approved:

· Commencement of a review of the Hastings District and Napier City Councils’ Local Alcohol Policy, and

· Proceeding with an individual Napier City Council Local Alcohol Policy for Napier City with the goal of contributing to the reduction of alcohol related harm in our community and for ease of administration and efficiencies, and

· Establishment of a joint governance structure between Napier City Council and Hastings District Council to inform the policy settings for both cities and maintain a locally led, regionally coordinated approach.

It is proposed that three elected member representatives from each council will form the Working Group. Mayor Wise has nominated Councillor Taylor, Councillor Greig and Councillor Chrystal, to represent Napier City Council. The Working Group will also include three Councillors from Hastings District Council. The Working Group will elect a Chair once established and be supported by an officer from each Council. The Working Group will be disestablished once both councils adopt a revised Local Alcohol Policy.

Establishing the working group structure

The Working Group would be established according to the attached Terms of Reference.

Aside from the Terms of Reference, the Working Group has no delegations of Napier City Council. The Working Group will function based on a consensus model. Recommendations from the Working Group will be documented and record any divergence in views.

7.3 Issues

Review of the Local Alcohol Policy is a statutory requirement every six years. This review is expected by 25 August 2025.

7.4 Significance and Engagement

Feedback on the revised Local Alcohol Policy will be sought from key stakeholders including Health, Police, community providers, Māori organisations and the wider community as the review progresses. The Councils must review the Local Alcohol Policy, using the special consultative procedure. Consultation on the structure and purpose of the Working Reference Group is not required.

7.5 Implications

Financial

None

Social & Policy

None

Risk

N/A

7.6 Options

The options available to Council are as follows:

a. To approve nominated representatives from Napier City Council, namely Councillor Taylor, Councillor Greig and Councillor Chrystal, to represent Napier City Council on the Working Group and adopt the draft Terms of Reference as presented.

b. To not approve the nominated representatives from Napier City Council and/or make amendments to the draft Terms of Reference, if required.

7.7 Development of Preferred Option

Option A is preferred. This will enable both councils to work together on the Local Alcohol Policy to ensure coordination and collaboration with Hastings District Council.

The draft Terms of Reference have been developed in collaboration with Hastings District Council and it is recommended that they be adopted in the form that is presented in this meeting.

7.8 Attachments

1 Terms of Reference (Doc Id 1814451)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 8

8. Hearing of objection to placing of Transport Shelter at Dalton Street, Napier, under S.339 Local Government Act 1974

Type of Report:	Procedural
Legal Reference:	Enter Legal Reference
Document ID:	1815399
Reporting Officer/s & Unit:	Robin Malley, Asset & Planning Manager

8.1 Purpose of Report

This report requests that Council consider the temporary relocation of a bus shelter on Dalton Street to enable demolition and construction works on Council’s former library building. The proposed location is adjacent 180 Dalton Street, whose owner has raised an objection to the proposal following consultation, under provisions of the Local Government Act 1974.

This report should be considered alongside the landlord’s objection as presented to this meeting.

Officer’s Recommendation

That Council:

a. Receive the written and presented objection from Wallace Property Company Limited to the temporary placement of a bus shelter on the footpath outside 180 Dalton Street.

b. Approve the placement of the proposed shelter for a period of 2 years (until 1January 2027)

8.2 Background Summary

Napier City Council owns and maintains public transport infrastructure, including bus stops, signs, seating and shelters to enable and support public transport services operated by Hawke’s Bay Regional Council (HBRC).

The demolition and redevelopment of Napier City Council’s office building at 22 Dalton Street means that the existing bus stops and shelters alongside the building could not be safely used during works. Council officers have worked with the HBRC Transportation team to develop an alternative arrangement which continues to support the service operation and its users.

The alternative provision comprises two new stops with shelters on the western side of Dalton Street with a third on the eastern side utilising an existing bus stop. As passengers may need to cross the road for transfers, a new pedestrian crossing facility comprising build - outs and a median island has been constructed. Two of the shelters have been relocated to the western side adjacent to Council owned open space. A third shelter (Shelter 3 on the diagram below) is proposed for the bus stop on the eastern side of the road, adjacent 180 Dalton Street ‘Vautier House’, owned by Wallace Property Company Limited.

Aerial view of a road with a bus stop

Description automatically generated

Under Section 339 of the Local Government Act 1974, local authorities are required to consult with landowners whose property may be injuriously affected by the installation of a ‘transport shelter’. Section 339 of the Local Government Act 1974 is appended to this report for reference.

Officers do not consider that the temporary placement of the shelter would injuriously affect the property, either through impacted property values or restricting the owner and their tenants’ ability to utilise and maintain the property. However, as the proposal does represent a change to the operation of the road outside 180 Dalton Street, consultation was initiated with Wallace Property Company Limited in accordance with the legislation.

A response to the proposal was received within the required timeframe, raising an objection to the proposal.

In objecting to the proposal, Wallace Property Company Limited provided the following reasons:

· We still have considerable external works to do over the next year which includes scaffolding the façade to paint, attach a new screen and enclose balconies. This will require scaffolding and site fencing along the Dalton Street boundary. This is similar works to what you are doing on your site where the bus shelters are currently located. Moving them to the proposed location appears no safer than leaving them where they are currently. We believe that you should find an alternative site that has no building works ongoing outside the bus shelters.

· We have ground floor tenants that have signed long term leases and at that time there was no proposal to place bus shelters outside their front windows. We believe that the erection of bus shelters here will negatively impact on the visual appearance of their tenancies, there will be additional noise and loss of privacy.

· We already have a homeless issue at the property which we are actively addressing. Providing bus shelters directly outside the premises which will enable people to loiter and provide shelter at night, is not going to help our initiatives to change the perception and attractiveness of the property to tenants.

· There is a negative streetscape appeal with bus shelters in our opinion, particularly outside a property where we are hosting some of the city’s main professional businesses.

The communication representing the objection includes constructive suggestions for alternatives, including provision of protection to users at the existing location.

The Local Government Act requires any objections to be heard and considered by Council, who may “dismiss the objection or decide not to proceed with the proposal or make such modifications to the proposal to which the objection replates as it thinks fit”.

8.3 Issues

Under the provisions of the Local Government Act 1974, there is no acknowledgement of temporary placement of shelters. Should Council resolve to approve the placement of the subject shelter, there is no legislated opportunity for review. The relocation of the stops and shelters are in response to a temporary need and this was relayed to the property owner in the initial consultation. To provide some reassurance to the landowner it is suggested that any resolution includes a timeframe for the shelter to be in place as a commitment from Council.

The future form of public transport infrastructure in Napier City Centre is being jointly considered by NCC and HBRC. The criticality of having a bus ‘hub’ within the core of the CBD is likely to reduce under the future operating model of the Hawke’s Bay bus service.

The design for the NCC ‘Te Aka’ project includes provision of one/two bus stops close to the Dalton Street/Station Street intersection to serve the southern end of the CBD, including Te Aka.

8.4 Significance and Engagement

This report does not meet the conditions of Council’s Significance and Engagement Policy.

8.5 Implications

Financial

The proposed shelter relocation, along with the relocation of two other shelters and associated road markings and signage, is funded from existing approved budgets. The decision made in response to this report has no direct financial impacts.

Social & Policy

Public Transport provides one component of the city and region’s transport system, critical to some of its users who have limited alternatives available to them. Use of public transport can reduce congestion, emissions and demand for parking facilities. The relocation of facilities on Dalton Street has arisen from the need to keep users safe, which was not practical at the established location. The contracted system’s operational model necessitated the placement of stops on both sides of the road and practical options were limited. The new facilities are operational, however, the lack of a shelter means that passengers do not have any protection from rain or sun, effectively resulting in a level of service reduction.

No suitable alternative central locations which could accommodate the three required operational stops, layover stops and passenger facilities were identified. If the objection to placing the shelter as proposed is upheld, the temporary arrangement will remain in its current location and configuration, with the possible addition of seating as a minimum provision for less able passengers.

Risk

N/A

8.6 Options

The options available to Council are as follows:

a. Confirm the placement of shelter outside 180 Dalton Street.

b. Confirm the placement of shelter outside 180 Dalton Street, specifying a time period of 2 years, after which the shelter should be removed or a new consultation process initiated. This is the preferred option.

c. Uphold the objection as presented.

8.7 Development of Preferred Option

Officers considered potential impacts on neighbouring businesses, property owners and occupiers, the practical needs of the bus service and its passengers and the road network users. Assessment of a suitable new layout for the stops and shelters was undertaken in close partnership with HBRC officers to ensure that service and passenger needs were well understood. The proposed shelter location outside 180 Dalton Street is in an area of widened footpath, away from the building frontage and with ample residual footpath space, close to other stops to support efficient and safe transfers.

The preferred option, as presented as Officer’s Recommendation a), includes a fixed period for the proposed shelter to be in place. This is recommended to provide certainty around the temporary nature of Council’s proposal to the landowner, which is not specifically provided for in the relevant legislation.

The direct benefits of the provision of a shelter to users and the broader benefits of attractive and convenient public transport infrastructure will be maintained under the recommendation. The shelter’s proposed location was selected with adjacent property in mind, with the preferred location being away from the building frontage, thus not restricting access to the property.

8.8 Attachments

1 Section 339 - Local Government Act 1974 (Doc Id 1817266)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 9

9. Request for additional capital project funding - Transportation & Inner Harbour

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	1815398
Reporting Officer/s & Unit:	Robin Malley, Asset & Planning Manager

9.1 Purpose of Report

A number of assets within Council’s Transportation and Inner Harbour portfolios have unexpectedly failed or present significant risk of failure. Loss of these assets limits the operational capacity of Council activities and failure presents risks to ongoing security of access, public safety and property. The priority associated with each of these projects is such that they cannot be deferred to meet approved budget provision in future years. Additional funding therefore sought to facilitate the implementation of the priority projects.

Additional funding of $8,250,000 is requested for renewal of the Inner Harbour Discharge Wharf, new or replacement retaining walls at Clyde Road, Coote Road, Kowhai Road and Denholm Road and slope protection at Shakespeare Road.

Officer’s Recommendation

That Council:

a. Approve $6,600,000 additional budget for the Inner Harbour Discharge Wharf Renewal project, to be funded from the HB Endowment Land Sales Fund.

b. Approve $1,650,000 ($1,450,000 after external revenue) additional budget for Bridges & Structures Renewals for retaining wall/slope stabilisation renewals at Kowhai Road, Denholm Road, Coote Road, Clyde Road and Shakespeare Road funded from the Roading Infrastructure Asset Renewal Fund (Rates funded Loans).

9.2 Background Summary

Inner Harbour

The Inner Harbour Discharge Wharf, located on Customs Quay, provides facilities for loading and unloading of commercial vessels, as an alternative to using West Quay. The wharf also provides berthing capacity for smaller commercial vessels and visiting vessels, supplementing the primary commercial berthing facilities on West Quay. Ancillary to its primary use, the wharf provides the only access to the Jull Wharf floating pontoon, utilised by a mixture of commercial and recreational vessels.

The wharf has been identified as a priority for renewal having reached the end of its design life with clear signs of deterioration in some components. Renewal was programmed for Years 3 & 4 of the current LTP. However, recent observations from the water identified some areas of concern which prompted Council to commission a detailed structural assessment. This assessment confirmed the observations of component failure and highlighted risk of full and potentially catastrophic failure, advising Council to close the wharf. As the wharf is a well-used component of the Inner Harbour asset group, supporting local and visiting commercial activities, its replacement is being treated as high priority, urgent work.

The approved 2024-27 Three Year Plan budget for the Discharge Wharf renewal ($1,392,881) has been brought forward from Years 3 (2026/27) and 4 (2027/28) to Year 2 (2025/26) under the Draft 2025/26 Annual Plan. This report requests that an additional $6,600,000 is made available to supplement this provision, including an amount in the 2024/25 financial year to enable supplier engagement, detailed investigations and preparation and submission of regulatory consents. Approved and (draft) project funding phasing and the that proposed in this request are summarised in Table 1, below:

Table 1 - Summary of approved and requested project funding

Inner Harbour asset renewals are funded from Council’s HB Endowment Land Sales Fund and expenditure within the balance of this fund does not affect rates. Implications of this request on the fund are discussed in Section 9.5 of this report.

Internal procurement planning is underway to determine the optimal engagement methodology, and stakeholder engagement is supporting scope definition and potential regulatory and iwi requirements. One procurement approach available to Council is to let a design and build contract, which avoids the risk of Council artificially restricting the potential supplier pool and increases the chance of innovative and value for money solutions. However, such an approach means that resource and building consent requirements cannot be well defined at this stage. The funding amount and phasing of expenditure in this report is therefore based on a high-level construction estimate with some construction or enabling works commencing before year-end. Although uncertainties remain it is important that funding is secured prior to Council approaching the market.

Transportation

There are over 450 known retaining walls across Mataruahou. Condition assessment and monitoring and associated work programming is challenging due to a lack of reliable construction records, undefined ownership and access/visibility constraints. A significant proportion of these structures are well beyond their design lives but are generally sound. Accurately forecasting renewals is difficult and much of the work required is only identified when assets start to fail. Work programmes for these assets therefore tend to be more reactive than is usual for other assets in the transportation portfolio. Programming interventions on this asset group is further hindered by the complexity of scoping and designing structures. Projects often require geotechnical assessments, specialist structural design, building consents and private landowner involvement. It is not unusual for a project to take over 2 years from identification to construction; emergency funding processes, unbalanced demands and scarcity of geotechnical and structural engineering resources can add significantly to these timeframes.

The series of weather events over the last 4 years has exacerbated age related deterioration, resulting in a number of structures requiring intervention concurrently. Five projects are currently underway or in development which present a high risk to access security and/or property damage if unaddressed. These projects are:

Clyde Road: Erosion under the road presented a significant risk of road failure and associated utilities and property damage. This project is nearly complete. The Contract cost was in line with the approved budget available in the current financial year. Significant variations to the contract due to a necessary scope increase and challenging underground service layouts mean that budget provision will be exceeded by roughly $300,000.

Lucy Road: A major slip between Lucy Road and Coote Road which occurred following Cyclone Gabrielle presents a risk to the stability of Lucy Road, which sits above the slip. The damaged land includes a section within private ownership. A financial contribution equal to the settlement received by the landowner from (then) EQC insurance has been agreed. Works to address this slip are included in Council’s approved NIWE (North Island Weather Events) emergency funding from NZTA and are eligible for 91% Funding Assistance. This enhanced funding rate is only applicable to works completed by the end of the 2024 calendar year. This project is fully designed and consented and was tendered in November 2024, with work due to start in December. Officers anticipate that a portion of the work will be eligible for the enhanced funding, however as work commencement could be delayed or progress limited for a number of reasons, this report assumes the lower standard funding assistance rate for the full project. Any funding assistance above this level would be received by Council as unforecast revenue. Budget requested for this project is $400,000 (net $40,000 to $200,000 after NIWE funding assistance).

Kowhai Road: An existing large retaining wall supporting the upper section of Kowhai Road (the only access to 8 residential properties) has been identified as in poor condition for a number of years, with regular surveys undertaken to monitor any movement in the structure. Recent monitoring has identified an acceleration in movement of some wall elements and intervention is now critical. Investigation and design work is well progressed. Estimated cost of construction is $200,000.

Denholm Road: An existing wall supporting the Denholm Road carriageway failed following a series of heavy rain events. A replacement for the wall and stormwater capacity upgrades are proposed. The road is currently accessible, but further deterioration could remove the only access for three residential properties. Investigation and design work is well progressed. Estimated cost for construction is $600,000.

Shakespeare Road: An exposed slope face below pedestrian access to a home requires protection to prevent future erosion. This protection has been designed and a specialised contractor engaged to undertake the work. Cost for construction is $70,000.

Project estimates, budgets and external funding are summarised in Table 2, below:

Table 2 - Financial summary of projects.

Beyond the current financial year, there is a pipeline of other sites requiring intervention at Kavanagh Road, Enfield Road, Spencer Road and Lighthouse Road. Development of these projects will continue in the current financial year, with an intention to construct in the 2025/26 financial year under approved budgets.

9.3 Issues

N/A

9.4 Significance and Engagement

The recommendations of this report does not trigger the provisions of Council’s Significance and Engagement Policy.

Each project has a unique set of stakeholders and engagement plans for each will be developed in the context of the scale and complexity of the project and needs of the stakeholder groups.

9.5 Implications

Financial

Inner Harbour

Capital Investment in Inner Harbour Assets is funded by the Hawkes Bay Endowment Land Sales fund. This fund is fully committed against projects identified in Council’s long term asset management and financial forecasts. Increasing the budget of this project will require a re-prioritisation and reassessment of scope of future projects, such as the Nelson Quay Wharf Major Maintenance project, currently identified for years 9 to 14 (2032-2038).

Approval of the requested budget increase would have no direct impact on rates but would reduce the availability of funding for future projects.

Transportation

Council’s long term financial plans include recurring annual budgets for Bridge and Structures renewals, which are dominated by retaining projects. This activity is eligible for National Land Transport Fund (NLTF) assistance, however allocations in the current 3 year funding period are lower than expected and Council’s programme has been adjusted to reflect this. Any additional Council expenditure will not generate any NLTF revenue, with the exception of Lucy Road, which has approval under the special North Island Weather Event (NIWE) allocation.

Assuming the full requested amount is approved, funded 100% by rates funded loans, and drawn down, repayments would represent a rating impact of +0.11%. It is proposed to offset this via a combination of reviewing funding sources for other Transportation capital projects within the approved 2024/25 programme and reducing the loan funded capital programme for 2025/26 by up to $450,000. The level of impact on the 2025/26 programme will depend on the level of subsidy able to be claimed against the Lucy Road project and the total delivery cost of the five projects.

Social & Policy

The Inner Harbour Discharge Wharf is a well utilised component of the infrastructure supporting Hawke’s Bay’s commercial fishing activities. Suspension of use of this asset will impact both the capacity and functionality of the Inner Harbour. The condition of the asset means that suspension is unavoidable, so minimising delays to delivering its replacement is the most effective strategy.

Risk

All of the assets under consideration in this report, to a greater or lesser extent, represent a risk to Council in their current condition. Once issues with an asset’s integrity have been identified and acknowledged, Council should take reasonable steps to minimise the risk presented. The projects which will be funded by the requested budgets respond to this obligation and will reduce Council’s exposure to legal, asset, operational, access, financial and reputational risks.

9.6 Options

The options available to Council are as follows:

a. Approve the requested budget increases This is the preferred option.

b. Decline the request for budget increases.

9.7 Development of Preferred Option

The works subject to this funding request are all high priority, resulting from aged asset deterioration, component failure and/or extreme weather events. Deferral is not recommended as full asset failure could result in loss of access, injury or property damage.

Funding sources for the requested budgets are comprised from dedicated reserves or rates funded loans. As loans have a direct impact on rates, a funding strategy has been developed to offset the additional demand, requiring no increase to rates.

9.8 Attachments

Nil

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 11

11. Quarterly Performance Report

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	1803817
Reporting Officer/s & Unit:	Alister Edie, Business Improvement Manager Talia Foster, Financial Controller Caroline Thomson, Chief Financial Officer / Acting Executive Director Corporate Services

11.1 Purpose of Report

To consider the Napier City Council Quarterly Performance Report for the three months ended 30 September 2024.

Officer’s Recommendation

That Council:

a. Receive the Quarterly Performance Report (Doc Id 1815313) and Quarterly Report (Doc Id 1815312) for the three months ended 30 September 2024.

11.2 Background Summary

As part of the Three-year Plan process, a resolution was passed directing the Chief Executive to produce enhanced performance reporting, monitoring key performance indicators against their assigned strategic priorities. The Quarterly Performance Report for Q1 2024-25 (attachment 1) is the first edition of this new reporting format.

The Quarterly Performance Report is intended to be a central, holistic report that tracks key performance measures across Council. It will monitor Councils achievement of strategic priorities and will apply consistent reporting frameworks for performance areas.

The new Quarterly Performance Report is a summary of Councils performance against its agreed strategic objectives. The performance measures contained in the previous Quarterly Report format (attachment 2), that track our agreed achievement of service levels for external stakeholders, will continue to be reported as an appendix. This allows the lower detail to be sourced as required and fulfils our Annual Plan reporting requirements.

The new Quarterly Performance Report is still under development, as we follow a continual improvement project to further determine key measures that drive Councils performance and reporting that supports improved performance management. See attachment 3 Three Waters Programme Dashboard, as an example of a capital program reporting framework we are working towards from the EPMO.

11.3 Issues

N/A

11.4 Significance and Engagement

N/A

11.5 Implications

Financial

The year-to-date net operating shortfall of $463k is $3.2m favourable to the budgeted deficit of $3.7m. This favourable variance is attributable to a combination of factors as outlined below:

Revenue

· Other Revenue is $3.3m lower than budgeted, mainly due to lower Parklands Residential Development sales due to a change in strategy to ensure development and sales are completed with a commercial focus.

· Subsidies and Grants are $1.1m lower than budgeted due to timing of property compensation voluntary buyouts related to Cyclone Gabrielle.

Expenditure

· Other Operating Expenses are $6.8m lower than budgeted due to timing of property compensation buyouts related to Cyclone Gabrielle and timing of Parklands Residential Development cost of sales.

· Depreciation and Amortisation are $1.2m lower than budgeted due to the reduced level of asset capitalisation from the previous year.

· This is partially offset by Employee Benefit Expenses which are $1.1m higher than budgeted. Elected Members directed labour efficiencies to be found during three year plan deliberations - directors are working on a strategy to meet these by year end, but they have not been achieved in the first quarter.

Capital

NB this capital reporting includes Parklands development expenditure – which is later transferred to Inventory for sale.

Total capital expenditure for Q1 2024-25 was $1.3m above the revised budget. The revised budget includes budget carry-forwards from 2023-24 and updated timing/re-phasing of expenditures across years/months.

· Transportation spent $1.3m more than budgeted year-to-date, with renewal projects being $610k ahead of schedule and $550k of required intersection safety improvements were completed without budgets.

· Wastewater spent $920k more than budgeted in Q1, with equipment failures causing a $530k overspend on the Greenmeadows pump station improvements, and $420k was spent on the Awatatoto Treatment Plant restoration pending the receipt of insurance funding.

· Property Assets spent $390k less than budgeted on capital expenditure as the cost of fill and earthworks for Parklands was less than budgeted.

· Support Units spent $390k less on capital expenditure year-to-date, due to the late delivery of an order of fleet vehicles – a Hydralada for gardening, a JCB digger for drain clearing and an aerator for turf management.

Social & Policy

N/A

Risk

N/A

11.6 Development of Preferred Option

Receive the Quarterly Performance Report, and appendix Quarterly Report, for the three months ended 30 September 2024.

11.7 Attachments

1 Napier City Council Quarterly Performance Report Q1 2024-25 (Doc Id 1815312) (Under separate cover 1)

2 Quartely Report Q1 2024-25 (Doc Id 1815313) (Under separate cover 1)

3 Three Waters Program Dashboard Example (Doc Id 1815311) (Under separate cover 1)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 15

15. Amendment to the 2025 Meeting Schedule

Type of Report:	Procedural
Legal Reference:	Local Government Act 2002
Document ID:	1812608
Reporting Officer/s & Unit:	Anna Eady, Team Leader Governance

15.1 Purpose of Report

The purpose of this report is to consider an amendment to the 2025 meeting schedule, which was adopted on 31 October 2024.

It is proposed that the meeting schedule be amended as outlined in the recommendation of this report.

Officer’s Recommendation

That Council:

a) Adopt the following amendment to the 2025 meeting schedule:

· Ngā Mānukanuka o te Iwi	New Date	31 January 2025
· Council	Change Date	24 April 2025 (previously 1 May 2025)
· Standing Committees	Change Date	15 May 2025 (previously 8 May 2025)
· Council (Adopt Annual Report)	New Date	25 September 2025

15.2 Background Summary

The Local Government Act 2002, Schedule 7, Clause 19 states:

…

(4) A local authority must hold meetings at the times and places that it appoints.

(5) …

(6) If a local authority adopts a schedule of meetings -

a) the schedule-

i) may cover any future period that the local authority considers appropriate, and

ii) may be amended; and

b) notification of the schedule or of any amendment to that schedule constitutes a notification of every meeting to the schedule or amendment.

Council must hold the ordinary meetings as scheduled but may amend the meetings schedule to enable business to be managed in an effective way.

Although staff attempt to meet Council’s needs in planning the schedule, it is inevitable that Council will need to amend the schedule from time to time. If approved, the proposed amendment will be notified to elected members via the Councillor diary.

While the schedule serves to give elected members notice of the upcoming meetings, there is still a requirement under the Local Government Official Information and Meetings Act 1987 for the public to be advised on a regular basis of the meetings scheduled for the next month.

The schedule includes council meetings and the meetings of all committees, not only so that members can plan ahead, but also to ensure that meeting days are in fact available. If a scheduled meeting is not required, officers will advise members of the cancellation as early as possible.

15.3 Issues

No issues have been identified with this report.

15.4 Significance and Engagement

The amendment to the meeting schedule does not trigger the Significance and Engagement Policy or any other consultative requirements.

15.5 Implications

Financial

N/A

Social & Policy

There are no social or policy implications in relation to this report.

Risk

Changes to the meeting schedule can result in difficulty finding a suitable venue and increased costs.

15.6 Options

The options available to Council are as follows:

a. To amend the 2025 meeting schedule as proposed.

b. Not to amend the 2025 meeting schedule as proposed.

15.7 Development of Preferred Option

15.8 Attachments

1 2025 Meeting Schedule with amendments (Doc Id 1817068)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda Item 17

17. Napier City Council Submission - Principles of the Treaty of Waitangi Bill

Type of Report:	Procedural
Legal Reference:	N/A
Document ID:	1815321
Reporting Officer/s & Unit:	Anna Eady, Team Leader Governance

17.1 Purpose of Report

To present to Council for approval Napier City Council’s draft submission on the Principles of the Treaty of Waitangi Bill.

Officer’s Recommendation

That Council:

a) Receive and approve the draft Napier City Council Submission on the Principles of the Treaty of Waitangi Bill to be submitted to the Justice Committee before 7 January 2025.

1.2 Background Summary

The Coalition Government introduced the Principles of the Treaty of Waitangi Bill (the Bill) to Parliament on 7 November 20204 that seeks to amend or remove references to te Tiriti / the Treaty principles from legislation.

The Bill implements the Government policy to introduce a Treaty principles Bill, based on existing ACT Party policy, and to support it to a select committee process.

The Explanatory Note released with the Bill states, the overarching objective of the Bill is to define what the principles of Te Tiriti o Waitangi / The Treaty of Waitangi are in statute; to be an instrument of Parliament created for the purpose of interpreting Parliament’s intent when it passes legislation. The Note states the Bill does not alter or amend the text of te Tiriti itself and does not apply to the interpretation of a Treaty settlement Act.

Te Tiriti o Waitangi is a founding document of New Zealand and is fundamental to New Zealand’s constitutional arrangements. Parliament introduced the concept of te Tiriti principles into legislation in the Treaty of Waitangi Act 1975, partially to reconcile the differences between the two texts. Parliament, however, did not define those principles.

Te Tiriti principles, as defined at this time, help reconcile differences between the te reo Māori and English texts and give effect to the spirit and intent of te Tiriti when applied to contemporary issues. They apply to policy and operational decisions by Government. They are used in the interpretation of legislation and are used by the Waitangi Tribunal to review proposed Crown action or inaction, policies, and legislation.

The Bill received its first reading on 14 November 2024 has been referred to Parliament’s Justice Committee for consideration. Public submissions on the Bill close on 7 January 2025.

The National and New Zealand First Parties have stated they will not support the Bill passed its first reading.

Napier City Council’s Submission

The draft Napier City Council submission is attached to the report and is supported by Council’s Te Waka Rangapū.

The submission requests the Bill is abandoned.

Options

The options available to Council are as follows:

a. Approve the draft Napier City Council Submission on the Principles of the Treaty of Waitangi Bill to be submitted to the Justice Committee before 7 January 2025; or

b. Make changes to the submission prior to it being submitted to the Justice Committee before 7 January 2025; or

c. Not make a submission on the Principles of the Treaty of Waitangi Bill.

17.2 Attachments

1 Submission - Treaty Principles Bill (Doc Id 1815910)

Ordinary Meeting of Council - 12 December 2024 - Open Agenda

2. Procurement and Contract Management Improvement Plan - Update

Type of Report:	Information
Legal Reference:	N/A
Document ID:	1808992
Reporting Officer/s & Unit:	Sharon O'Toole, Procurement Manager

2.1 Purpose of Report

The purpose of this report is to provide an update on the improvements intended to address the findings and recommendations from the Internal Audit Report: Contract Management Report 2024, completed by Crowe. Specifically, the initiatives and progress related to the development of a Procurement and Contract Management Framework.

The Procurement and Contract Management Framework will allow procurement and contract management to be used as strategic tools to deliver Council’s work programme and asset management.

These improvement initiatives form an important part of a Programme Business Improvement Project to improve project delivery, this is led by the Enterprise Programme Management Office (EPMO).

At the meeting

The Procurement Manager, Ms O’Toole presented the report and provided an update on the work being undertaken on procurement and contract management and the work being done to improve delivery and manage workstreams.

In response to questions the following was clarified:

· The acronym PBI referred to in the report means Programme Business Improvement Group who work together with the EMPO and Finance Group.

· The PBI is chaired by the EPMO Manager, Bruce Lake and includes four representatives from the Executive Leadership Team (ELT).

· Good change management support is needed to implement changes successfully and this needs further scoping.

· It is intended to take a scalable approach and look at ways of delivery that are new to Council and still ensure a best practise approach is followed.

· The PBI and EPMO report regularly to the ELT.

Committee resolution

Bruce Robertson / Mayor Wise

The Audit and Risk Committee:

a. Note The Procurement and Contract Management Improvement Plan – Attachment 1.

b. Note The progress related to implementation of the Procurement and Contract Management Improvement Plan.

Carried

3. Asset Management Roadmap Progress

Type of Report:	Information
Legal Reference:	N/A
Document ID:	1809668
Reporting Officer/s & Unit:	Kate Ivicheva, Manager Asset Strategy

3.1 Purpose of Report

This report provides an update on the progress of the Asset Management Roadmap, summarising current achievements, challenges, and recommendations for the path forward. It seeks approval for the roadmap’s timeline and confirms continuing the current strategic direction. Additionally, this report outlines core risks affecting roadmap delivery, providing the Audit and Risk Committee with insights to guide oversight and support effective implementation.

At the meeting

The Executive Director Community Services, Mr Cloete advised that he was part of the Asset Management Steering Group supporting and working with the Asset Team.

The Manager Asset Strategy, Ms Ivicheva presented the report and responded to questions.

· Phase 1 is the most extensive of the roadmap in terms of resource and is identified as a risk. ELT approved recruitment of two staff for existing vacant positions. The Steering Group has been put in place to assist.

· The organisation is moving away from working in silos. A cross organisational approach is being created through the EPMO. Staff capacity to deliver change, plus business as usual, is highlighted as a risk.

· It was agreed to remove the word “Potential” from ”Potential Mitigation Actions” in the risks table as the actions would be implemented with good programme management.

Committee resolution

Councillor Browne / David Pearson

The Audit and Risk Committee:

a. Approve the proposed timeline for roadmap delivery (Table 2)

b. Confirm the roadmap's existing strategic direction.

a. Receive the update on the progress of the Asset Management Roadmap.

Carried

Internal Audit: Risk Management Report

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	1811071
Reporting Officer/s & Unit:	Alister Edie, Business Improvement Manager Dave Jordison, Risk and Assurance Lead Caroline Thomson, Chief Financial Officer

4.1 Purpose of Report

To table to the Committee the internal audit on Risk Management undertaken by Council’s internal auditors, Crowe.

At the meeting

The Risk and Assurance Lead, Mr Jordison provided a brief summary of the Crowe Report which indicated senior management need to support risk management for the future. There was a lack of information being provided to senior management, however this is improving.

In response to questions the following was clarified:

· In regard to 6.3 – Deficiencies in strategic risk management and oversight, it was noted that future in-depth training would be provided.

· The timeline target date of 1 March 2025 is on track to be met. The Crowe Report will be presented to ELT and then to elected members.

· Once the target is met aiming for M3 score which will be embedded in the Uplift Programme.

Committee resolution

Bruce Robertson / Councillor Crown

The Audit and Risk Committee:

a. Receive the report from Crowe titled ‘Internal Audit – Risk Management’.

Carried

5. Risk Management Report

Type of Report:	Information
Legal Reference:	N/A
Document ID:	1810504
Reporting Officer/s & Unit:	Dave Jordison, Risk and Assurance Lead Alister Edie, Business Improvement Manager

5.1 Purpose of Report

To provide the Committee a quarterly update on risk management workstreams and inform on the status of Council’s Strategic and Operational risk profile.

At the meeting

The Risk and Assurance Lead, Mr Jordison presented the report.

In response to questions the following was clarified:

· The Strategic Risk Dashboard indicated grey for Council Reputation and it was noted that the risk had not been worked through for this yet.

· A high number of out-of-appetite operational risks are due to risk owners requiring further training.

· It is not uncommon for staff to say they are too busy for prioritisation and controls are being put in place to become more effective and prioritise.

Committee resolution

Bruce Robertson / Councillor Mawson

The Audit and Risk Committee:

a. Receive the report titled “Risk Management Report” dated 29 November 2024

Carried

Ordinary Meeting of Council - 12 December 2024 - Open Agenda

Recommendation to Exclude the Public

a) That the public be excluded from the following parts of the proceedings of this meeting, namely:

Agenda Items

1. 1.30pm – 2.00pm Hawke's Bay Civil Defence Emergency Management Transformation Strategy

2. 2.35pm Memorial Square Community Rooms

3. Trade Waste and Wastewater Bylaw 2022 Delegation

4. Council Projects Fund - Festival opera Summer Production

5. Land Purchase

6. Action Points Register (Public Excluded) as at 25 November 2024

Reports from Audit and Risk Committee held 29 November 2024

1. Civic Precinct Main Contractor Procurement update

2. Audit New Zealand - Verbal Update

3. Chief Executive - Verbal Update

b) That Matt Boggs (HB Civil Defence Emergency Management) and Barbara Arnott, Simon Dunn and Jeremy Smith (Art Deco Trust) be permitted to remain in the Public Excluded session to provide information and answer queries in relation to relevant Public Excluded reports Items 1 and 2.

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:

General subject of each matter to be considered.	Reason for passing this resolution in relation to each matter.	Ground(s) under section 48(1) to the passing of this resolution.	Plain English reason for passing this resolution in relation to each matter
Agenda Items
1. Hawke's Bay Civil Defence Emergency Management Transformation Strategy	7(2)(f)(ii) Maintain the effective conduct of public affairs through the protection of such members, officers, employees and persons from improper pressure or harassment	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	The Chair of the Joint Committee wishes to communicate this information in a more controlled manner, which will be detailed soon
2. Memorial Square Community Rooms	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	Public Exclouded so as not to prejudice contract negotiations for Stage 2 of the contract.
3. Trade Waste and Wastewater Bylaw 2022 Delegation	7(2)(g) Maintain legal professional privilege	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	The report sets out the legal advice on, and basis for, one of the recommendations to the Council relating to decisions under the Bylaw
4. Council Projects Fund - Festival opera Summer Production	7(2)(c)(i) Protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	Confidential discussions are required to ensure that the process is fair and equitable
5. Land Purchase	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	Conduct negotiations of land purchase in confidence
6. Action Points Register (Public Excluded) as at 25 November 2024	7(2)(a) Protect the privacy of natural persons, including that of a deceased person 7(2)(c)(i) Protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied 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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	To protect privacy, conduct negotiations and protect the source of information.
Reports from Audit and Risk Committee held 29 November 2024
1. Civic Precinct Main Contractor Procurement update	7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	In the middle of a live tender process but wish to provideAudit and Risk an udate
2. Audit New Zealand - Verbal Update	7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	Commercial activity
3. Chief Executive - Verbal Update	7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	Commercial activity
Public Excluded Text
Council has considered the public interest in the information above and balanced those interests with the reason(s) for withholding this information. This ensures Council has met the requirements for withholding information under section 7(2) of the Local Government and Official Information and Meetings Act 1987.

Ordinary Meeting of Council - 12 December 2024 - Open Agenda

Ordinary Meeting of Council

Open Minutes

Meeting Date:	Tuesday 19 November 2024
Time:	12:30pm – 1:37pm
Venue	Small Exhibition Hall War Memorial Centre Marine Parade Napier
	Livestreamed via Council’s Facebook page

Present

Chair: Mayor Wise

Members: Deputy Mayor Brosnan, Councillors Browne, Chrystal, Crown, Greig, Mawson, McGrath, Price, Simpson, Tareha and Taylor

In Attendance

Chief Executive (Louise Miller)

Acting Executive Director Corporate Services (Caroline Thomson)

Acting Executive Director City Services (Jessica Ellerm)

Executive Director City Strategy (Rachael Bailey)

Executive Director Infrastructure Services (Russell Bond)

Executive Director Community Services (Thunes Cloete)

Manager Communications and Marketing (Julia Stevens)

Team Leader Governance (Anna Eady)

Manager City Development (Paulina Wilhelm)

Principal Policy Planner (Fleur Lincoln)

Policy Analyst (Jeriel Sajan)

Administration

Governance Advisors (Jemma McDade)

Ordinary Meeting of Council – Open Minutes

Table of Contents

Order of Business Page No.

Karakia. 3

Apologies. 3

Conflicts of interest 3

Public forum.. 3

Announcements by the Mayor 3

Announcements by the management 3

Confirmation of minutes. 3

Agenda Items

1. Adoption of Draft Future Development Strategy. 4

Resolution to Exclude the Public. 7

Agenda Items moved from Public Excluded to Open

1. Notification of the PDP Ecosystems and Indigenous Biodiversity Variation. 9

Order of Business

Karakia

The meeting opened with the Council karakia.

Apologies

Council resolution

Councillors Crown / Browne

That the apology from Councillor Boag be accepted.

Carried

Conflicts of interest

Nil

Public forum

Nil

Announcements by the Mayor

Nil

Announcements by the management

Nil

Confirmation of minutes

Council resolution

Councillors Greig / Price

That the Draft Minutes of the Ordinary Council meetings held on 31 October 2024 and 7 November 2024 be confirmed as a true and accurate record of the meeting.

Carried

Agenda Items

1. Adoption of Draft Future Development Strategy

Type of Report:	Operational and Procedural
Legal Reference:	Local Government Act 2002
Document ID:	1808867
Reporting Officer/s & Unit:	Fleur Lincoln, Principal Policy Planner

1.1 Purpose of Report

This Report recommends Council adopt the draft Napier Hastings Future Development Strategy (FDS) for public notification and public consultation under the Special Consultative Procedure (SCP) in Section 83 of the Local Government Act 2002.

At the meeting

Executive Director City Strategy (Rachael Bailey) and Manager City Development (Paulina Wilhelm) joined the Officer to present the report.

Questions were answered clarifying:

Adopting the draft FDS for consultation does not give it any regulatory weighting in terms of the Resource Management Act 1991 (RMA).
The Technical Advisory Group (TAG) contains officers from the three partner Councils, planners, and the Mana Ahuriri Trust. The TAG provides technical expertise.
The TAG was unanimous in their recommendation of the sites in the draft FDS, taking into account natural hazards, highly productive soil, stormwater, infrastructure works and obligations under redress land classification.
The draft proposal will be amended, for public transparency, to reflect the decision of each partner Council. The sites disputed by the Hawke’s Bay Regional Council (HRBC) will remain in the draft proposal noting that HBRC recommends their removal.
The purpose of adopting the draft FDS is to move in to the consultation phase where community members can engage with Council to share concerns.
The sites at Riverbend Road and Ahuriri Station require technical work prior to being suitable for development. This detail is not part of a high level strategy. Including a site in the FDS is not a guarantee that it will be developed. The final FDS is still at least 8-10 months away. There will be further opportunity for public consultation. There are regulatory pathways that have to be satisfied before consent would be granted for any development.
The centre of the Riverbend Road site may have to be raised up to approximately 1.5 metres to mitigate flood risk. The technical information will be communicated through Council’s Communications and Marketing team and will be available on Council’s website.
Ahuriri Station is redress land. The process for redress land is the same as for other land. The Ahuriri Station site also has the option of the fast-track consenting process through Central Government. Council would be an interested party, but not the final decision maker in that instance. This won’t impact other sites as this is the only redress land within the Napier boundary that forms part of the FDS. All sites were revisited following the addition of the new objective to ensure consistency.
The FDS is in development at the same time as the District Plan and HBRC’s Regional Policy Statement. The National Policy Statement by Central Government on Natural Hazards will provide clearer direction on how to treat land subject to natural hazards. There are many complex legislative and regulatory changes coming into effect at the same time. The TAG and Regulatory team are assessing the sites against current requirement recognising that further legislation may converge on the FDS when it comes back after consultation.
No Napier land considered in the FDS is classed a highly productive (Class 1 or 2).
The proposed sites for development in the FDS are the most efficient and where exposure to natural hazards can best be mitigated. There is a requirement to provide more land for future development.
The FDS is a high level strategy for growth which looks at the best places for future development. The District Plan process and planning will follow on; any development may not eventuate for 30-40 years.

Council resolution

Deputy Mayor Brosnan / Councillor Crown

That Council:

a. Receive the report titled Adoption of the Draft Napier/Hastings Future Development Strategy for Public Notification and Consultation dated 19 November 2024.

b. Receive the Napier Hastings Future Development Strategy Joint Committee (Committee) Resolutions from its Committee Meeting on 23 October 2024.

· That the Napier-Hastings Future Development Strategy Joint Committee receive the report titled Adoption of Draft Future Development Strategy for Notification dated 22 July 2024.

· That the Joint Committee adopt the following Objective, to be added to its ‘Strategic Objectives’ for the FDS, which the Joint Committee adopted at its meeting on 11 July 2023,

§ “The values and aspirations of mana whenua for development are a priority and are recognised and supported”.

· That the Joint Committee adopt the draft ‘Napier / Hastings Future Development Strategy’ (FDS) attached as Attachment One and ‘Summary of Information’ attached as Attachment Two with the following variations,

i. That the Ahuriri Station land is identified for inclusion as redress land as detailed in Attachment 5.

ii. Hn3a- Middle Road (excluded).

iii. Hn3b- Middle Road extension (excluded).

On the basis for ii and iii that:

· These areas are not needed to provide sufficient development capacity to meet demand (including the 20% competitiveness margin),

· Hn3a and Hn3b are areas of land which are Highly Productive (including ‘Land Use Capability’ level 1 and 2 land),

· These areas are not included in Heretaunga Plains Urban Development Strategy (except as a reserve area in the case of Hn3a),

· It would be contrary to the objectives of the FDS to include these areas.

‘That the Joint Committee recommend to the Partner Councils (Hastings District Council, Napier City Council and Hawke’s Bay Regional Council) that they adopt the FDS and ‘Summary of Information’ (including the Variations in Recommendation B) for consultation under the Special Consultative Procedure as specified in Section 83 of the Local Government Act 2002 (LGA), and call for submissions in accordance with the Principles of Consultation under Section 82 of the LGA, and provide an opportunity for the hearing of submissions, under section 83 of the LGA’.

c. Adopt (after consideration of Recommendation B) the draft ‘Napier / Hastings Future Development Strategy’ (FDS) attached as Attachment One (which includes the Joint Committee’s recommendations with the exception of ii and iii to exclude Middle Road, HN3a and HN3b) and the ‘Summary of Information’ attached as Attachment Two.

d. Confirm, or otherwise, the Joint Committee’s Recommendations ii and iii to exclude Middle Road, HN3a and HN3b from the consultation draft.

e. Notify the FDS and ‘Summary of Information’ for consultation under the Special Consultative Procedure as specified in Section 83 of the Local Government Act 2002 (LGA), and call for submissions in accordance with the Principles of Consultation under Section 82 of the LGA, and provide an opportunity for the hearing of submissions, under section 83 of the LGA.

f. Approve an amendment to Section 6 (relates to Delegated Authority) of the Terms of Reference for the Napier Hastings Future Strategy Joint Committee (Committee) to allow the Committee to appoint an independent panel of up to five members that is representative of Mātauranga Māori, gender balance, equity, and technical knowledge of the legislation that encompasses the Future Development Strategy.

The amendment to Section 6 of the Terms of Reference will read as follows:

6.1 The Napier-Hastings Future Development Strategy Joint Committee has the responsibility delegated by the Partner Councils for:

Appointing an Independent Panel of up to five members that is representative of Mātauranga Māori, gender balance, equity, and technical knowledge of the legislation that encompasses the Future Development Strategy which will undertake Hearing and considering submissions on the draft strategy and making appropriate recommendations to the Joint Committee ~~partner councils~~, which will subsequently make appropriate recommendations to the Partner Councils.

g. Note the Independent Panel will act in accordance with the ‘Principles of Consultation’ under Section 82 of the Local Government Act 2002 (LGA), in the hearing of submissions, under the Special Consultative Procedure under section 83 of the LGA to assist the Committee by hearing all persons / parties who wish to submit on the FDS. The Independent Panel will prepare a summation of all submissions and provide recommendations to the Joint Committee, for consideration by the Committee. The Committee can then recommend a final FDS to the Partner Councils.

Carried

Resolution to Exclude the Public

Council resolution

Councillors Mawson / Chrystal

That the public be excluded from the following parts of the proceedings of this meeting.

Carried

Agenda Items

1. Notification of the PDP Ecosystems and Indigenous Biodiversity Variation

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:

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:	Plain English reason for passing this resolution in relation to each matter
Agenda Items
1. Notification of the PDP Ecosystems and Indigenous Biodiversity Variation	7(2)(j) Prevent the disclosure or use of official information for improper gain or improper advantage	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: (i) Where the local authority is named or specified in Schedule 1 of this Act, under section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.	Prevent the disclosure or use of official information for improper gain or improper advantage
Public Excluded Text
Council has considered the public interest in the information above and balanced those interests with the reason(s) for withholding this information. This ensures Council has met the requirements for withholding information under section 7(2) of the Local Government and Official Information and Meetings Act 1987.

The meeting moved into the Public Excluded Agenda at 1:14pm.

The meeting resolved that the following Public Excluded Agenda item be released to the public following this meeting as the reason for exclusion no longer applies.

Agenda Items

1. Notification of the PDP Ecosystems and Indigenous Biodiversity Variation

Type of Report:	Legal and Operational
Legal Reference:	Resource Management Act 1991
Document ID:	1810402
Reporting Officer/s & Unit:	Jeriel Sajan, Policy Analyst
Reason for Exclusion	Section 7(2)(j) Prevent the disclosure or use of official information for improper gain or improper advantage.

1.1 Purpose of Report

The purpose of this report is to seek Council’s endorsement for the notification of the ECO chapter, which addresses the management and protection of indigenous biodiversity within the district.

At the meeting

Manager City Development (Paulina Wilhelm) joined the Officer to present the report. The minutes and report can be released to the public once the resolution has been carried.

Questions were answered clarifying:

Engagement with affected landowners has been ongoing since 2019. There will be further opportunities for affected landowners to engage in the submission process. All affected landowners have been contacted. Further contact will occur at the public consultation stage.
The approach taken in the Officer’s report is in line with advice given by the Principal Ecologist taking into consideration the recent RMA amendments.
This chapter will not affect public access to the privately owned reserves included in the plan.
Council is committed to mapping sites and continuing to contribute to the biodiversity of Napier.

Council resolution

Councillor Greig / Deputy Mayor Brosnan

That Council:

a. Endorse the Ecosystems and Indigenous Biodiversity Chapter as a Plan Variation

b. Approve the public notification of the Ecosystems and Indigenous Biodiversity Chapter on 25 November 2024 until 31 January 2025 to receive public submissions

c. Approve the public release of this report following this meeting.

Carried

Attachments

1 Notification of the PDP Ecosystems and Indigenous Biodiversity Variation DOC ID 1810402

The meeting closed with a karakia at 1:37pm

Approved and adopted as a true and accurate record of the meeting.

Chairperson ......................................................................................................................

Date of approval ...............................................................................................................

[1] Schedule 7, clause 32. Local Government Act 2002.

Meeting Date:	Thursday 12 December 2024
Time:	9.30am
Venue:	Large Exhibition Hall War Memorial Centre Marine Parade Napier
	Livestreamed via Council’s Facebook page

Council Members	Chair: Mayor Wise Members: Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Greig, Mawson, McGrath, Price, Simpson, Tareha and Taylor
Officer Responsible	Chief Executive
Administrator	Governance Team
	Next Council Meeting Monday 3 February 2025