Agenda of Council - 8 December 2021

Nelson City Council

8 December 2021

Page No.

Karakia and Mihi Timatanga

1. Apologies

Nil

2. Confirmation of Order of Business

3. Interests

3.1 Updates to the Interests Register

3.2 Identify any conflicts of interest in the agenda

4. Public Forum

4.1 John Fitchett - Consultation Forms

John Fitchett will speak about consultation forms.

5. Confirmation of Minutes

5.1 28 October 2021 21 - 36

Document number M19037

Recommendation

That the Council

1. Confirms the minutes of the meeting of the Council, held on 28 October 2021, as a true and correct record.

5.2 17 November 2021 37 - 56

Document number M19081

Recommendation

That the Council

1. Confirms the minutes of the meeting of the Council, held on 17 November 2021, as a true and correct record.

5.3 Extraordinary Meeting - 23 November 2021 57 - 59

Document number M19105

Recommendation

That the Council

1. Confirms the minutes of the extraordinary meeting of the Council, held on 23 November 2021, as a true and correct record.

6. Confirmation of Previous Minutes 09 September 2021 60 - 68

Document number R26452

Recommendation

That the Council

1. Confirms the minutes of the meeting of the Council, held on 09 September 2021, as a true and correct record.

7. Confirmation of Previous Council Minutes 19 October 2021 69 - 76

Document number R26453

Recommendation

That the Council

1. Confirms the minutes of the meeting of the Council, held on 19 October 2021, as a true and correct record.

8. Recommendations from Committees

8.1 Environment and Climate Committee - 4 November 2021

8.1.1 Biosecurity Annual Report 2020/21 & Operational Plan 2021/22

Recommendation to Council

That the Council

1. Approves the Operational Plan 2021/22 for the Tasman-Nelson Regional Pest Management Plan (A2763427 of Report R26273), specifically as it relates to Nelson City Council’s area.

8.2 Infrastructure Committee - 18 November 2021

8.2.1 Water Supply Activity Management Plan 2021-31

Recommendation to Council

That the Council

1. Adopts the revised Water Supply Activity Management Plan 2021-31 (A2213226).

8.2.2 Wastewater Activity Management Plan 2021-31

Recommendation to Council

That the Council

1. Adopts the revised Wastewater Activity Management Plan 2021-31 (A2758059).

8.2.3 Stormwater and Flood Protection Activity Management Plan 2021-31

Recommendation to Council

That the Council

1. Adopts the revised Stormwater and Flood Protection Activity Management Plan 2021–31 (A2755586).

8.3 Forestry Subcommittee - 1 December 2021

8.3.1 Forestry Activity Management Plan 2021-31

Recommendation to Council

That Council

1. Adopts the revised Forestry Activity Management Plan 2021-31 (A2072414).

8.4 Community and Recreation Committee - 2 December 2021

8.4.1 City For All Ages/He Rautaki Whakatupuranga Strategy

Recommendation to Council

That the Council

1. Endorses the City For All Ages/He Rautaki Whakatupuranga Strategy as strategic guidance for Council, stakeholders and the community in considering and responding to the opportunities and challenges Nelson’s ageing demographic presents; and

2. Agrees that Council make an application for Nelson to join the World Health Organisation’s Age-Friendly Network; and

3. Supports the establishment of an Age-Friendly Nelson Implementation Group to monitor, support and report on implementation of the Strategy, operating according to the Terms of Reference attached in A2790587.

8.4.2 Cemetery Provision in Nelson and Richmond - Needs Assessment and Draft Implementation Plan

Recommendation to Council

That the Council

1. Confirms that the Council’s preferred option at this time is to further investigate the development of a new joint regional cemetery; and

2. Subject to Tasman District Council passing similar resolutions:

a. Approves the draft Joint Regional Cemetery Project Implementation Plan (A2774202); and

b. Approves the establishment of a Joint Regional Cemetery Working Group to oversee the Regional Cemetery Project Implementation Plan; and

c. Approves the terms of reference for the Joint Regional Cemetery Working Group (A2774204); and

d. Delegates authority for any minor amendments to the terms of reference for the Joint Regional Cemetery Working Group (A2774204) and the Joint Regional Cemetery Project Implementation Plan (A2774202) to the Chair of the Community and Recreation Committee and the Group Manager Community Services in conjunction with their counterparts at Tasman District Council; and

e. Appoints the Chair and a Deputy Chair of the Community and Recreation Committee to the Joint Regional Cemetery Working Group; and

f. Recommends an iwi representative is invited to the Joint Regional Cemetery Working Group via a request to the Iwi-Council Partnership Group.

3. Notes that a final decision on proceeding with a regional cemetery will be made by the two Councils following the endorsement of a business case by the Joint Regional Cemetery Working Group.

The following are draft recommendations at the time of printing, any changes will be provided at the meeting

8.5 Strategic Development and Property Subcommittee - 3 December 2021

8.5.1 Contingent Loan Facility - Tahuna Beach Camp Inc.

Recommendation to Council

That the Council

1. Approves an emergency contingent loan facility of up to $500,000 to be available to Tahuna Beach Camp Inc., if required due to COVID-19 impacts prior to 28 February 2022.

8.5.2 Nelson Marina s17A Governance Review

Recommendation to Council

That the Council

1. Approves the recommendation of a Council Controlled Organisation that manages the Marina as the preferred governance model for Nelson Marina; and

2. Approves undertaking consultation on the proposal to establish a Council Controlled Organisation as per Section 56 of the Local Government Act; and

3. Notes that undertaking consultation on a proposal to establish a Council Controlled Organisation would require additional unbudgeted expense to a maximum of $65,000 in addition to current budget ($40,000), to formulate the required documentation and reviews for the new Council Controlled Organisation; and

4. Approves funds, if required for undertaking consultation, to be sourced from the Marina closed account.

6.5 Regional Transport Committee – 06 December 2021

6.5.1 Variation to Regional Land Transport Plan - Rocks Road Walking and Cycling Pre-Implementation

That the Council

1. Approves that the Nelson Regional Land Transport Programme 2021-31 is varied to include a total of $6.5M for “Pre-implementation Phase” for the SH6 Rocks Road Walking and Cycling facility spread over the 2021-24 financial years.

9. Mayor's Report 77 - 87

Document number R26350

Recommendation

That the Council

1. Receives the report Mayor's Report (R26350) and its attachment (A2798220); and

2. Approves Councillor Brian McGurk as the third Nelson City Council elected member on the Joint Committee subcommittee to hear and deliberate on the draft Future Development Strategy; and

3. Notes that Joint Committee will confirm appointments on the subcommittee to hear and deliberate on the draft Future Development Strategy at its first meeting in 2022.

10. Status Report - Council - 9 December 2021 88 - 113

Document number R26436

Recommendation

That the Council

1. Receives the report Status Report - Council - 9 December 2021 (R26436) and its attachment (A1168168); and

11. Property and Facilities Activity Management Plan 2021-31 114 - 125

Document number R26364

Recommendation

That the Council

1. Receives the report Property and Facilities Activity Management Plan 2021-31 (R26364) and its attachment (A2443568); and

2. Adopts the Property and Facilities Activity Management Plan 2021-31 (A2511502)

3. Delegates authority for any minor amendments required to the Property and Facilities Activity Management Plan 2021-31 (A2511502) to the Community and Recreation Committee Chairperson, Strategic Development and Property Subcommittee Chairperson (for their respective areas of delegation), and Group Manager Community Services.

12. Deliberations on public feedback to Te Ara ō Whakatū - Nelson City Centre Spatial Plan 126 - 151

Document number R26331

Recommendation

That the Council

1. Receives the report Deliberations on public feedback to Te Ara ō Whakatū - Nelson City Centre Spatial Plan (R26331) and attachments: (A2786233, A2783462, A2780828 and A2787576); and

2. Accepts the following late feedback (A2780828) on Te Ara ō Whakatū – Nelson City Centre Spatial Plan:

· JR Elkington and Trevor duFeu; and

3. Adopts the updated Te Ara ō Whakatū – Nelson City Centre Spatial Plan (A2786233); and

4. Agrees that the Mayor, Chair of Urban Development Subcommittee and Group Manager Environmental Management be delegated to approve any minor editorial changes; and

5. Recommends officers create an implementation plan for the first phase of delivery over the next 10 years and bring that back to Council; and

6. Notes the adoption of Te Ara ō Whakatū – Nelson City Centre Spatial Plan is a strategy that builds on and updates previous city centre strategies e.g., Heart of Nelson.

13. 2021 Revaluation Presentation - Quotable Value

Gail Smits, National Revaluation Manager and Craig Russell, Registered Valuer & Senior Property Consultant from Quotable Value, Council’s Valuation Service Provider will provide a powerpoint presentation to speak to at the meeting.

Attending at 1.00pm on Wednesday 8 December

14. Infrastructure Acceleration Fund: Request for Proposals 152 - 178

Document number R26340

Recommendation

That the Council

1. Receives the report Infrastructure Acceleration Fund: Request for Proposals (R26340) and its attachments (A2772290 and A2797854); and

2. Notes that officers will be progressing the Requests for Proposal of the following projects, noting that this in no way fetters any future Council decision making in relation to the proposals, including in its regulatory capacity:

a. Achilles Avenue/Rutherford Street Affordable Housing development;

b. Solitaire Investments Limited/Marsden Park Limited (Marsden Valley);

c. Wakatū Incorporation (Horoirangi); and

3. Notes that the Maitai Development Co “Mahitahi” (Kaka Valley) developer has deemed that there are other options that better suit their goals and vision for this development which they are actively pursuing instead of the Infrastructure Acceleration Fund; and

4. Notes the priority ratings allocated to the developments, as required by Kāinga Ora, as part of the Request for Proposal submission process, namely:

a. Priority 1 - Achilles Avenue/Rutherford Street Affordable Housing development;

b. Priority 2 - Solitaire Investments/Marsden Park Limited (Marsden Valley);

c. Priority 3 - Wakatū Incorporation (Horoirangi); and

5. Notes that a further report will be brought to Council once Kāinga Ora has decided which, if any, of Council’s Request for Proposals are successfully through to the negotiation stage, detailing:

a. The required level of Council investment in infrastructure to support each qualifying development; and

b. Whether or not this funding is included in the Long-Term Plan 2021-31 and which year(s); and

c. The impact of prioritising any capital projects that support qualifying development on the phasing of other capital projects within the Long-Term Plan 2021-31 work programme;

d. Any developers’ agreements required to progress the negotiations; and

e. The capacity of Council to deliver multiple additional infrastructure projects within the required timeframe.

15. Three Waters Reform Update and submission on Three Waters Economic Regulator discussion document 179 - 188

Document number R26389

Recommendation

That the Council

1. Receives the report Three Waters Reform Update and submission on Three Waters Economic Regulator discussion document (R26389) and its attachments (A2788174, A2786106, A2786027); and

2. Approves the draft Council submission (A2786027) to the Ministry of Business, Innovation and Employment on the Economic Regulation and Consumer Protection for Three Waters Services in New Zealand; and

3. Agrees that the Mayor, Infrastructure Committee Chair and Chief Executive be delegated authority to approve minor editorial amendments to the Council submission (A2786027); and

4. Notes the Government will introduce legislation to Parliament where Council and the public will have the opportunity to submit on the Water Services Entities Bill and subsequently the Water Services Entities (Implementation Bill); and

5. Agrees to community engagement to be undertaken prior to Council submitting on the draft legislation as detailed in Report R26389; and

6. Notes a submission on the Water Services Entities Bill will be prepared once the Bill is introduced to Parliament and will be brought back to Council for approval including community feedback; and

7. Notes that the Chief Executive will report back once staff have received further information and guidance from the Government on the next steps and how these should be managed.

16. Annual Report 2020/21 189 - 202

Document number R26237

Recommendation

That the Council

1. Receives the report Annual Report 2020/21 (R26237) and its attachments (A2791731 and A tbc); and

2. Adopts the Annual Report for the year ended 30 June 2021 (A2593052) in accordance with s98 of the Local Government Act 2002; and

3. Receives the draft Audit New Zealand Opinion (A tbc); and

4. Delegates the Mayor and Chief Executive authority to approve minor editorial changes to the Annual Report 2020/21 (A2791731), as necessary.

17. Residents' Survey 2020/21 203 - 207

Document number R26030

Recommendation

That the Council

1. Receives the report Residents' Survey 2020/21 (R26030) and its attachment (A2724461); and

2. Notes that the Residents’ Survey 2020/21 will be made available to the public on the Council website; and

3. Notes the three focus areas for improvement in response to the Residents’ Survey results are:

a. Managing expectations by clearly explaining Council priorities and expenditure; and

b. Improving clarity on decision making and how community feedback contributes; and

c. Telling our story positively and consistently.

18. Schedule of meetings 2022 208 - 210

Document number R26393

Recommendation

That the Council

1. Receives the report Schedule of meetings 2022 (R26393) and its attachment (A2760389); and

2. Adopts the schedule of meetings for the 2022 calendar year as set out in Attachment 1 (A2760389).

19. Climate Change Oversight Governance Group Terms of Reference 211 - 215

Document number R26455

Recommendation

That the Council

1. Receives the report Climate Change Oversight Governance Group Terms of Reference (R26455) and its attachment (A2783828); and

2. Approves the Terms of Reference for the Climate Change Oversight Governance Group (A2783828).

20. Approval of submission on the Government's Emissions Reduction Plan 216 - 273

Document number R26441

Recommendation

That the Council

1. Receives the report Approval of submission on the Government's Emissions Reduction Plan (R26441) and its attachments (A2769371, A2790131, A2790133); and

2. Approves retrospectively, the submission on the Government’s Emissions Reduction Plan (A2769371).

21. Nelson Arts Strategy - Establishment of Working Group 274 - 281

Document number R26272

Recommendation

That the Council

1. Receives the report Nelson Arts Strategy - Establishment of Working Group (R26272) and its attachment (A2752080); and

2. Establishes an Arts Strategy Working Group with the following membership:

1. Deputy Mayor Judene Edgar

2. Chair of Community and Recreation – Councillor Tim Skinner

3. Councillor Pete Rainey; and

3. Approves the Terms of Reference (A2752080) for the Arts Strategy Working Group.

22. Events Strategy implementation update - Financial Year 2021-21 282 - 293

Document number R26330

Recommendation

That the Council

1. Receives the report Events Strategy implementation update - Financial Year 2021-21 (R26330) and its attachments (A2776994 and A2768099); and

2. Approves an amendment to the Nelson City Events Strategy to require annual reporting by the Events Development Committee on implementation of the Strategy.

23. Nelson Regional Development Agency Presentation to Council

Nelson Regional Development Agency (NRDA) Chair, Meg Matthews, accompanied by Toni Power, Mark Maguire, Tracee Neilson, Hannah Norton, Sarah Fitchett, Johny O’Donnell and Fiona Wilson will be present to update the Council on:

· NRDA Annual Report

· Outcomes of consultation on the Regeneration Plan

· NRDA Six monthly update

Attending at 1.00pm on Thursday 9 December

Confidential Business

24. Exclusion of the Public

Recommendation

That the Council

1. Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that

a. Nick Clarke of Habitat for Humanity remain after the public has been excluded, for Item 5 of the Confidential agenda (Housing Reserve Phase One Applications), as he has knowledge relating to the item that will assist the meeting; and

b. Fiona Wilson, Toni Power and Tracee Neislon from NRDA remain after the public has been excluded, for Item 6 of the Confidential agenda (Future of Nelson iSITE within Millers Actre), as they have knowledge relating to NRDA that will assist the meeting; and

c. Jane Sheard and Lindsay Coll of Nelmac remain after the public has been excluded, for Item 7 of the Confidential agenda (Nelmac 6 monthly strategic presentation), as they have knowledge relating to Nelmac that will assist the meeting; and

d. John Murray, Sam Cottier, Lisa Current and Nick Wilson remain after the public has been excluded, for Item 10 of the Confidential agenda (Central Library Project - Land Exchange Negotiating Brief), as they have knowledge relating to the project that will assist the meeting

Recommendation

That the Council

1. Excludes the public from the following parts of the proceedings of this meeting.

2. The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)
1	Council Meeting - Confidential Minutes - 28 October 2021	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
2	Council Meeting - Confidential Minutes - 17 November 2021	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(g) To maintain legal professional privilege
3	Recommendations from Committees - Confidential Strategic Development & Property Committee 3 December 2021 Proposed Registrations of Interest Document - 258 Wakefield Quay (Anchor Building) Maitai Valley Motor Camp Options	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
4	Council Status Report - Confidential	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities
5	Housing Reserve Phase One Applications	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
6	Future of the Nelson iSITE within Millers Acre	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
7	Nelmac 6 monthly strategic presentation	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities
8	Nelmac Limited - Statement of Expectation 2022/23	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
9	Nelson Regional Sewerage Business Unit (NRSBU) independent member appointment	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person
10	Central Library Project – Land Exchange Negotiating Brief	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Council Meeting - Confidential Minutes - 28 October 2021

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

· Section 7(2)(h)

To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Council Meeting - Confidential Minutes - 17 November 2021

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

· Section 7(2)(g)

To maintain legal professional privilege

Recommendations from Committees - Confidential

Strategic Development & Property Committee 3 December 2021

Proposed Registrations of Interest Document - 258 Wakefield Quay (Anchor Building)

Maitai Valley Motor Camp Options

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Council Status Report - Confidential

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

· Section 7(2)(h)

To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

Housing Reserve Phase One Applications

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Future of the Nelson iSITE within Millers Acre

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(h)

To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Nelmac 6 monthly strategic presentation

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(h)

To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

Nelmac Limited - Statement of Expectation 2022/23

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(h)

To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Nelson Regional Sewerage Business Unit (NRSBU) independent member appointment

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

Central Library Project – Land Exchange Negotiating Brief

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Karakia Whakamutunga

Nelson City Council Minutes - 28 October 2021

Minutes of a meeting of the Nelson City Council

Te Kaunihera o Whakatū

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson on Thursday 28 October 2021, commencing at 9.07a.m.

Present: Her Worship the Mayor R Reese (Chairperson), Councillors Y Bowater, T Brand, M Courtney, J Edgar (Deputy Mayor), K Fulton, M Lawrey, R O'Neill-Stevens, B McGurk, G Noonan, P Rainey, R Sanson and T Skinner

In Attendance: Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis), Group Manager Environmental Management (C Barton), Group Manager Community Services (A White), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald) and Governance Advisers (E Stephenson and K McLean)

Apologies : Nil

Karakia and Mihi Timatanga

Attendance: Councillor Edgar entered the meeting at 9.09am.

1. Apologies

There were no apologies.

2. Confirmation of Order of Business

Her Worship the Mayor advised the order of business may change to accommodate external presenters. (All external presenters spoke via Zoom.)

3. Interests

There were no updates to the Interests Register. Her Worship the Mayor declared an interest in confidential Item 3 - Nelson Regional Development Agency - Reappointment of Director.

4. Public Forum

4.1. Zero Carbon Nelson Tasman - Feedback on Kāinga Ora Housing Development (Social Housing)

Document number R26346

This public forum was withdrawn.

4.2. Tāhunanui Business and Citizens Association Incorporated - Waka Kotahi Proposals for Tāhunanui Drive and the Effects of those Proposals

Document number R26062

Paul Matheson and Jacinda Stevenson, accompanied by John Gilbertson, on behalf of the Tāhunanui Business and Citizens Association Incorporated, and Dr Stephen Neas, Tāhunanui Medical Centre, spoke about the Association’s meeting with Waka Kotahi over proposals for Tāhunanui Drive and the effects of those proposals. Supporting information was tabled (A2771891).

Mr Matheson said the Association supported other modes of transport and said that it did not support four-laning of Tāhunanui Drive. They felt that Waka Kotahi needed to revisit the effects on residents’ businesses.

Ms Stevenson spoke to Waka Kotahi’s objectives of safety, wellbeing of residents and safer journeys for all, noting that Tāhunanui Drive was already busy enough, with a unique intersection, a variety of vehicles, scenery distraction and cross traffic. They felt the government objective of safe access to health care was not being met and that the road did not meet world health standards.

Dr Stephen Neas, General Practitioner at Tāhunanui Medical Centre, felt the primary concern was the impact of two southbound lanes on safe access to essential health services.

The submitters answered questions regarding their public forum.

Attachments

1 A2771891 - Tāhunanui Business and Citizens Association Inc tabled information

4.3. Public Health Service - Nelson Marlborough District Health Board - Nelson Future Access Project

Document number R26351

Jane Murray, Health in all Policies Advisor, on behalf of Public Health Service Nelson Marlborough District Health Board (NMDHB), spoke about the Nelson Future Access Project (FAS) from a public health perspective. She noted the FAS supported a specific focus on cycling, walking and ride share and on increased safety and environmental benefits, however, there was a lack of cycle paths and parks improving the pedestrian journey and she felt it was difficult to see what the active travel improvements were from the Council report. She highlighted the importance of traffic calming.

In response to a question, Ms Murray said that the NMDHB had not submitted specifically around noise issues.

5. Confirmation of Minutes

5.1 23 September 2021

Document number M18958, agenda pages 12 - 38 refer.

Resolved CL/2021/224

That the Council

1. Confirms the minutes of the meeting of the Council, held on 23 September 2021, as a true and correct record.

Her Worship the Mayor/Courtney Carried

6. Mayor's Report

Document number R26347

Her Worship the Mayor gave a verbal report, noting the COVID-19 cases in Blenheim and Christchurch and the Government’s announcement on the Three Waters Reforms.

Attendance: Councillor Brand left the meeting at 9.44am.

The Mayor answered questions regarding the Three Waters Reforms.

Attendance: Councillor Brand returned to the meeting at 9.50am.

The meeting was adjourned from 9.52am until 9.58am.

During questions on the Three Waters Reforms, the following Points of Order were raised:

· Councillor Lawrey against Councillor Skinner for disrespect, in that he did not use Minister Mahuta’s full title. The Point of Order was not upheld, however, the Mayor cautioned Councillor Skinner to be respectful

· Councillor Edgar against Councillor Skinner for misrepresentation of the advice given at the 23 September Council meeting, in that the commentary was not opinion, it was fact, and the decision to opt in or out was not a decision to be made at that meeting. The Point of Order was upheld

· Councillor O’Neill-Stevens against Councillor Courtney for misrepresentation, in saying that Nelson City was having its assets stripped away. The Point of Order was upheld

· The Mayor against Councillor Courtney for misrepresentation, in saying that the Nelson people felt let down. The Mayor felt that misinformation had led to an untrue scenario. The Point of Order was upheld

· Councillor Edgar against Councillor Brand for misrepresentation, in that the Mayor had not said that Councillor Brand misled the public. The Point of Order was upheld.

In light of the number of Points of Order raised, Elected Members were urged to consider how they resolved conflict in the future, and how to share their views respectfully.

In closing, the Mayor highlighted the need to feed in to the working group process and the importance of being engaged. She said, given the importance of the issue, she would like the Select Committee to visit the regions.

7. Uniquely Nelson - Annual Report 2020/21 (deferred from 23 September 2021 Council meeting) (Agenda Item 8)

Document number R26321, agenda pages 39 - 71 refer.

Attendance: Councillor Skinner left the meeting at 10.26am.

Simon Duffy, Manager Uniquely Nelson and Chris Butler, Chairperson, presented this item. Mr Duffy spoke about the impacts of COVID-19 on businesses and the community.

Her Worship the Mayor acknowledged the enormous amount of work done over the last year, which had not been an easy time.

Mr Duffy and Mr Butler answered questions regarding the Buddy Up programme, the effects on the retail and hospitality sectors and on a competition to encourage online shopping.

Attendance: Councillor Skinner returned to the meeting at 10.40am.

In response to a question, Mr Duffy said that shaping a future through an emissions reduction lens and working on sustainable eco-tourism was an important part of the future. Mr Butler noted that a board conversation had taken place on how to align closer to a regional strategy and that more talks with organisations like the Nelson Regional Development Agency were needed.

Resolved CL/2021/225

That the Council

1. Receives the report Uniquely Nelson - Annual Report 2020/21 (deferred from 23 September 2021 Council meeting) (R26321) and its attachment (A2739506); and

2. Approves the Uniquely Nelson Annual Report as sufficient to provide Council with an overview of its activities during the 2020/21 year.

Fulton/Edgar Carried

8. Cawthron Institute work programme

Document number R26243

Volker Kuntzch, Cawthron Institute Chief Executive, spoke regarding the Cawthron Institute’s work programme. A presentation was provided (A2774804).

Mr Kuntzch noted that the Cawthron Institute was in its centenary year, its revenue was $50m, with half its funding from government and half through activities and projects with industry. He noted the Institute would like to diversify and become slightly more commercially oriented.

The presentation covered areas of research, setting global standards, world firsts, the algae sector, toxin as potential anaesthetic, freshwater management solutions, marine ecosystem management and the Aquaculture Park and Science and Technology Park.

Mr Kuntzch answered questions regarding the presentation.

Attachments

1 A2774804 - Cawthron Institute Presentation

The meeting was adjourned from 11.13am until 11.29am, at which time Councillor Skinner was not present.

9. Recommendations from Committees

7.1 Strategic Development and Property Subcommittee - 21 October 2021

7.1.1 Tahuna Beach Camp - Approval to Lease Campground to the Tahuna Beach Camp Incorporated

Attendance: Councillor Skinner returned to the meeting at 11.31am.

Recommendation to Council CL/2021/226

That the Council

1. Approves the leasing of the Tahuna Beach Camp to the Tahuna Beach Camp Incorporated Society for an initial term of eleven (11) years with two (2) rights of renewal of eleven (11) years each with renewals dependent on the Lessor and Lessee agreeing the annual base fee and gross income percentage.

Noonan/Bowater Carried

10. Nelson Future Access - Business Case Endorsement

Document number R26073, agenda pages 72 - 113 refer.

Group Manager Infrastructure, Alec Louverdis presented the report, noting that endorsement of the Business Case would allow Waka Kotahi officers to submit the Business Case to the Waka Kotahi Board. He introduced Waka Kotahi representatives Emma Speight, Coral Aldridge, Neil Cree and Anna Sanson. A PowerPoint presentation was provided (A2774738).

Ms Speight noted that submission of the Business Case was not a commitment to delivery and timeframes, but a direction working towards the same outcomes.

Attendance: Councillor Noonan left the meeting from 12.21pm until 12.30pm.

Discussion occurred regarding all facets of the Business Case and its potential impacts on the community.

The meeting was adjourned from 12.45pm until 1.31pm.

Questions and discussion continued and particular concerns were raised around the health and safety of the Tahunanui community as well as active transport users.

The meeting was adjourned from 2.44pm until 2.57pm.

Following discussion, an extra clause was added to the recommendations to express the importance of safety for the Tāhunanui community.

Resolved CL/2021/227
	*That the Council* *1. Receives the report Nelson Future Access - Business Case Endorsement (R26073) and its attachments A2631617, A2749609, A2771168 and A2770156; and* *2. Endorses the Nelson Future Access Business Case (Attachment A2770156 of Report R26073) to enable submission to the Waka Kotahi Board for approval; and* 3. Notes that a variation to amend the Regional Land Transport Plan is required to include the SH6 Rocks Road Pre-Implementation Phase to facilitate Waka Kotahi seeking funding concurrently with the Business Case approval, and that consultation on this variation is not required as it does not trigger Council’s Regional Land Transport Plan’s Significance Policy and nor is it appropriate to carry out any additional consultation in the circumstances; and 4. Notes that funding applications will be made to the Waka Kotahi Board concurrently with the Business Case approval for the Washington and Railway Reserve to Waimea walking and cycling projects to enable pre-implementation work to commence; and 5. Notes that work will commence on several safety projects as detailed in Report R26073, funded from the Low Cost Low Risk funding assigned to Nelson City Council from the approved National Land Transport Programme; and 6. Notes that officers will progress with assessing off-street parking options in Tahunanui, pending the permanent reinstatement of the southbound lane at Bisley signals, and will report back to Council on this matter; and 7. Notes that a safe state highway network through Tahunanui remains a priority for Nelson City Council and its community
McGurk/Her Worship the Mayor Carried unanimously
Attachments 1 A2774738 - Waka Kotahi Nelson Future Access presentation

Her Worship the Mayor thanked the Waka Kotahi team and the Chief Executive for their work towards this immense task. She acknowledged Rhys Palmer’s contribution and acknowledged Group Manager Infrastructure, Alec Louverdis, for his mammoth effort towards this controversial project.

Extension of Meeting Time
Resolved CL/2021/228
	*That the Council* 1. Extends the meeting time beyond six hours, pursuant to Standing Order 4.2.
Her Worship the Mayor/Edgar Carried

The meeting was adjourned from 3.31pm until 3.35pm.

11. Nelson Central Library - Project Management and Governance Structure

Document number R26049, agenda pages 114 - 131 refer.

Group Manager, Infrastructure, Alec Louverdis, answered questions regarding the assumptions on agenda page 124 and on the recommended governance structure.

The following minor amendments were agreed:

· Agenda page 129 – relevant project staff to be separated out clarifying that they do not have membership

· Agenda page 130 - 7 - third bullet point – the word ‘group’ to be deleted

· Agenda page 127 – remove reference to design and build as this was not a preference at this stage

· Amend Nelson City Council to say ‘Full’ Council, for clarity

· Agenda page 117 - (governance) and (management) to be added

· Agenda page 127 – (under Quality Assurance Lead) – add – ‘notes that the project manager and lead contractor sign the quality log that delivery meets required standards’.

Elected Members nominated their choice of two Elected Members for membership of the Governance Group. The nominations were collated by Group Manager, Community Services, Andrew White, with Councillors Rohan O’Neill Stevens and Brian McGurk declared as the successful nominees and recommendation clause 4 was updated accordingly.

Mr Louverdis confirmed that a community engagement plan and sustainability objectives would be brought back for Council consideration and that this was the most robust framework to give effect to Council resolutions regarding delivery of the project with appropriate checks and balances.

Resolved CL/2021/229

That the Council

1. Receives the report Nelson Central Library - Project Management and Governance Structure (R26049) and its attachments (A2758524, A2762028 and A2760701); and

2. Approves the project management and governance structure as set out in Report R26049 and its attachments (A2758524, A2762028 and A2760701); and

3. Agrees to establish a Nelson Central Library Governance Reference Group with Terms of Reference as set out in (A2760701); and

4. Appoints the Mayor, Deputy Mayor, Councillor O'Neill-Stevens and Councillor McGurk to the Nelson Central Library Governance Reference Group; and

5. Notes that the approval of the project management and governance structure does not constrain Council in relation to any final decision on library location, design, or construction procurement.

Rainey/Lawrey Carried

12. Property and Facilities Activity Management Plan 2021-31

Document number R18127, agenda pages 132 - 196 refer.

This agenda item was withdrawn.

13. Deliberations on sale of 69 to 101 Achilles Avenue and/or 42 Rutherford Street to Kāinga Ora for social and affordable housing

Document number R26213, agenda pages 197 - 224 refer.

Attendance: Councillor Rainey left the meeting at 4.30pm.

Julia Campbell, Regional Director, Kāinga Ora, and Strategic Housing Adviser, Lisa Gibellini, answered questions on this item, including:

· the building timeline and housing typology

· supporting local contractors for the project, including engaging a local architect

· updates would be provided through the Councillors’ newsletter

· scale of height

· mechanisms for control and addressing feedback concerns

· reassurance about antisocial behaviour and the role of the Nelson tenancy team

· methods to ensure the housing remains affordable

· all recommendations in the report would be subject to a Memorandum of Understanding or Sale and Purchase agreement

· affordability

· community engagement

· parking and transport links.

Resolved CL/2021/230

That the Council

1. Receives the report Deliberations on sale of 69 to 101 Achilles Avenue and/or 42 Rutherford Street to Kāinga Ora for social and affordable housing (R26213) and its attachments (A2763085 and A2767627); and

2. Accepts the following late feedback (A2767627) on the proposal to sell 69 to 101 Achilles Avenue and/or 42 Rutherford Street to Kāinga ora for social and affordable housing:

· Rachel Boyack, MP for Nelson

· Ainslie Riddoch

3. Approves the sale of 69 to 101 Achilles Avenue and 42 Rutherford Street to Kainga Ora subject to a negotiating brief that includes the following terms:

(i) That the sites be sold for market value to be determined by agreement with Kāinga Ora having regard to independent valuations for the site obtained by Kāinga Ora and Nelson City Council.

(ii) The design outcomes which were outlined to the community as part of the consultation document (A2704161) be adopted to inform the development design:

(a) High quality, high amenity, interactive and accessible design to street and laneway edges.

(b) Design compatibility with the adjacent public spaces and central city location.

(c) The use of appropriately scaled and well-modulated/articulated architectural design elements and an appropriate provision of space, openings and materiality (i.e windows, balconies and cladding types).

(d) Integration of vehicle, public transport and pedestrian circulation with adjoining street frontages and Wakatu Square with minimal provision of on-site carparking.

(e) Inclusion of quality, climate resilient, sustainable, design and building practices.

(f) Less than 50% of household units will be for social housing, the remainder will be a mix of affordable housing types.

(g) Demonstrates consistency with the six key moves of the Nelson City Council City Centre Programme Plan (August 2019).

(h) Minimise, as far as practicable, shading effects that lead to safety hazards on public streets, areas and footpaths.

(i) Provide appropriate cycle storage and servicing facilities.

(j) Within these outcomes, maximise housing yield; and

(iii) That Kāinga Ora works in partnership with Council officers on the design of the building, including that officers are part of the Kāinga Ora Project Steering Group contributing to decision making and Project Team responsible for progressing the project and its design.

(iv) That Kāinga Ora will seek to commission a local architect to be part of the design team for the development to ensure the building is a good fit with the city centre and Council priorities (exemplar intensification and affordable housing, good urban design including appropriate scale and height, sustainability features, provides for active mode).

(v) That Kāinga Ora will, where reasonably possible, partner with local housing providers and developers and/or iwi to deliver the project to ensure that affordable rental and affordable apartment sales are enduring and well managed.

(vi) That Kāinga Ora will, where reasonably possible, utilise local construction companies and local materials to undertake the build, acknowledging that this may be affected by the current market shortage of both locally.

(vii)That Kāinga Ora uses its placement principles to allocate its social housing tenants to the housing typology of inner-city apartment living.

(viii)That communication with the community is undertaken by Kāinga Ora to ensure the community is well informed of progress, including during the progression of development design and housing partnership formations.

(ix) That a condition is imposed to ensure that if development of at least one of the sites has not commenced construction within 3 years, both sites will be offered back to Council to purchase for the sale price, less any works that have reduced its value.

(x) That a condition is imposed on sale that a covenant will be registered on the title giving Council a right of first refusal to purchase, on terms acceptable to Council, should Kāinga Ora seek to sell all or any part of the sites at any time unless the sales relate to affordable unit title apartments developed by Kāinga Ora or in partnership with others (subject also to any applicable legal obligation on Kāinga Ora to first offer to iwi).

(xi) As appropriate, a Memorandum of Understanding may be signed with the purchaser to reflect shared objectives for the development that are not included in the sale and purchase agreement.

(xii) Any other reasonable terms of sale necessary for the divestment.

4. Delegates to the Mayor, Deputy Mayor/Chair of the Urban Development Subcommittee and Chief Executive the negotiation and approval of the sale and purchase agreement and Memorandum of Understanding (if appropriate) provided the terms are substantially consistent with the negotiating brief; and

5. Notes that progress on negotiations and development design will be overseen by the Kāinga Ora Governance Reference Group in accordance with the Terms of Reference; and

6. Notes that tenants of 69 to 101 Achilles Avenue and 42 Rutherford Street will be advised of Councils decision, and kept up to date on progress with negotiations, including advice in relation to the effect on their tenancies by officers; and

7. Confirms that the proceeds from any sale will be used to pay off debt; and

8. Approves the sale of 69 to 101 Achilles Avenue and 42 Rutherford Street and identifies the matters in relation to making such a decision in accordance with section 80 of the Local Government Act, including:

(a) While it is not clear, the decision to sell 69 to 101 Achilles Avenue and 42 Rutherford Street to Kāinga Ora rather than via public auction may be inconsistent with the NCC Asset Disposal Policy 2015; and

(b) Council has decided to approve the sale notwithstanding the apparent inconsistency with the Policy because of the broader strategic benefit of the proposal for the community (noting the above conditions) and the enhanced relationship with Kāinga Ora, together with the objective to sell the properties for market value; and

The motion was put and a division was called:

For

Cr Brand

Cr Courtney

Cr Edgar

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Sanson

Her Worship the Mayor Reese (Chairperson)

Against

Cr Bowater

Cr Noonan

Cr Skinner

Absent

Cr Rainey

The motion was carried 9 - 3.

Edgar/Her Worship the Mayor Carried

14. Exclusion of the Public

Resolved CL/2021/231

That the Council

1. Excludes the public from the following parts of the proceedings of this meeting.

Edgar/Her Worship the Mayor Carried

Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)
1	Council Meeting - Confidential Minutes - 23 September 2021	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
2	Totara Street Properties	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
3	Nelson Regional Development Agency - Reappointment of Director	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person

The meeting went into confidential session at 5.09pm and resumed in public session at 5.24pm.

Karakia Whakamutunga

Restatements

It was resolved while the public was excluded:

Totara Street Properties

That the Council

6. Agrees that Report (R23744), attachments A2759441 and A2751938, and the decision be made publicly available once negotiations are concluded.

Nelson Regional Development Agency - Reappointment of Director

That the Council

3. Agrees that the decision only be made publicly available once the 2021 Nelson Regional Development Agency Annual General Meeting has taken place.

There being no further business the meeting ended at 5.25pm.

Confirmed as a correct record of proceedings by resolution on (date)

Resolved

Nelson City Council Minutes - 17 November 2021, reconvened 23 November 2021

Minutes of a meeting of the

Nelson City Council

Te Kaunihera o Whakatū

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson on Wednesday 17 November 2021, commencing at 9.38a.m.

Present: Her Worship the Mayor R Reese (Chairperson), Councillors Y Bowater, T Brand, M Courtney, K Fulton, M Lawrey, R O'Neill-Stevens, B McGurk, G Noonan, P Rainey, R Sanson and T Skinner

In Attendance: Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis), Group Manager Environmental Management (C Barton), Group Manager Strategy and Communications (N McDonald), Team Leader Governance (R Byrne), Governance Adviser (E Stephenson) and Governance Support Officer (A Bryce-Neumann)

Apologies : Councillor Edgar for absence and Councillor Noonan for lateness

Karakia and Mihi Timatanga

1 Apologies

Resolved CL/2021/236

That the Council

1. Accepts the apologies from Councillor Edgar for absence and from Councillor Noonan for lateness.

Her Worship the Mayor/Bowater Carried

2. Confirmation of Order of Business

The order of business was changed in order to complete business that was timebound and it was noted that the meeting would need to be reconvened to consider the remaining business.

3. Interests

Her Worship the Mayor advised that she would be making an update to the Interests Register regarding her membership of the Three Waters Reform Working Group, and Councillor Sanson noted her involvement with a Biodiversity Restoration project in the Marlborough Sounds, although no conflict existed as this was in relation to public forum and not to decision-making.

4. Public Forum

4.1. Dr. Murray McClintock - Emissions Trading Scheme and Council’s Financial Obligations

Document number R26409

Dr. Murray McClintock, from Carbon Farm Limited, spoke about the Emissions Trading Scheme (ETS) and Council’s financial obligations. Supporting information was tabled (A2787950). He advocated for Council to register its forests in the ETS and answered questions regarding costs of registration and underperforming assets.

Attachments

1 A2787950 Dr Murray McClintock supporting information

4.2 Jenny Easton and Barbara Robson - Climate Action Plan

Jenny Easton and Barbara Robson, from Zero Carbon Nelson Tasman, spoke in support of the Climate Action Plan and asked that Council continue to engage with experts, stakeholders and the public.

They supported the officer’s proposal and looked forward to progressing the Action Plan. They noted that climate adaptation was a challenge that required informed public engagment and that Tasman District Council’s (TDC) Climate Action plan had been in place for two years. They felt that this gave Council the opportunity to be a good neighbour and ancestor.

In response to a question, Ms Easton gave the Climate Action Plan a five star rating.

Attendance: Councillor Noonan entered the meeting at 10.05am.

4.3 Mika Hervel - Aotearoa Collective for Public Transport Equity - Free Fares Campaign

Mika Hervel advocated for Council to support the Free Fares Campaign, calling for nationwide free bus fares for tertiary students, Community Services Card Holders and under-25s. He noted that supporting councils would be listed on the Collective’s website and media releases. He said that free fares were critical for transport equality and that another key reason was to reduce emissions. He asked that Council resolve a motion of support for the campaign before the 24 November 2021 closing date for submissions to the Government’s Emissions Reduction Plan.

Mr Hervel answered questions regarding student and school involvement, emissions rates and the response from other Councils, and said that they did not have an estimate of the number of people and cost of the free fares. He confirmed that they were asking for the Government to fund this through its Emissions Reduction Plan.

4.4 Joanna Barbara - Climate Action Plan

Joanna Barbara from Nelson Tasman Climate Forum, asked Council to pass the Climate Action Plan now and to lock in planned periodic (annual) review and revision, as the Action Plan was a flexible living document. She noted the Forum would like to engage with Council and Tasman District Council to align their Action Plans.

Ms Barbara also advocated for Council to sign the Climate Charter at the highest level of engagement that was feasible for Council and that the Forum would happily accept Council’s decision on the matter.

5. Exclusion of the Public

Emma Moran, of DLA Piper, was in attendance via Zoom, to provide legal advice regarding Item 6 - Nelson Tasman Climate Forum - Charter and, accordingly, the following resolution was required to be passed:

Resolved CL/2021/237

That the Council

1. Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that of Emma Moran of DLA Piper remain after the public has been excluded, to provide legal advice on Item 6 - Nelson Tasman Climate Forum that will assist the meeting.

Courtney/Noonan Carried

Resolved CL/2021/238

That the Council

1. Excludes the public from the following parts of the proceedings of this meeting.

Courtney/Noonan Carried

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Nelson Tasman Climate Forum - Charter

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.

The withholding of the information is necessary:

· Section 7(2)(g)

To maintain legal professional privilege

Code of Conduct - establishment of panel

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

The meeting went into confidential session at 10.27am and resumed in public session at 11.03am.

6. Mayor's Report

Document number R26396

Her Worship the Mayor gave a brief verbal report, noting that the message was clear that COVID-19 was moving around the country, and that it was essential to achieve high levels of vaccination. She acknowledged the work of those supporting the vaccination rollout, noting that events were taking place in the region with the objective of reaching and exceeding the 90% level before Christmas.

7. Nelson Tasman Climate Forum – Charter (Agenda Item 6)

Document number R26192, agenda pages 6 - 24 refer.

In response to a request to remove the words ‘one of’ in a sentence in the Charter on agenda page 13 … one of the greatest threats to the living world, Group Manager Strategy and Communication, Nicky McDonald advised that the Charter had already been agreed and signed by others, which meant that there was no ability to change the wording, although she would pass on that feedback.

Councillor McGurk, seconded by Councillor Rainey moved the officer’s recommendation to sign the Charter as a Partner Organisation.

Recommendation

That the Council

1. Receives the report Nelson Tasman Climate Forum - Charter (R26192) and its attachments (A2560914, A2771786, A2771833); and

2. Delegates authority to Her Worship the Mayor to sign the Nelson Tasman Climate Forum Charter on behalf of Council as a Partner Organisation.

McGurk/Rainey

Councillor Skinner, seconded by Councillor Brand, moved an amendment for Council to sign the Charter as a Climate Ally.

That the Council

1. Receives the report Nelson Tasman Climate Forum - Charter (R26192) and its attachments (A2560914, A2771786, A2771833); and

2. Delegates authority to Her Worship the Mayor to sign the Nelson Tasman Climate Forum Charter on behalf of Council as a Climate Ally.

The amendment was put and a division was called:

For

Cr Brand

Cr Skinner

Against

Cr Bowater

Cr Courtney

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Cr Rainey

Cr Sanson

Her Worship the Mayor Reese (Chairperson)

Apology

Cr Edgar

The amendment was lost 2 - 10.

Councillor Courtney, seconded by Councillor Fulton, moved a further amendment for Council to sign the Charter as a Signatory.

That the Council

1. Receives the report Nelson Tasman Climate Forum - Charter (R26192) and its attachments (A2560914, A2771786, A2771833); and

2. Delegates authority to Her Worship the Mayor to sign the Nelson Tasman Climate Forum Charter on behalf of Council as a Signatory.

The amendment was put and a division was called:

For

Cr Courtney

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr Rainey

Cr Sanson

Against

Cr Bowater

Cr Brand

Cr McGurk

Cr Noonan

Cr Skinner

Her Worship the Mayor Reese (Chairperson)

Apology

Cr Edgar

The vote on the amendment was even 6 – 6 and it was therefore declared lost.

The meeting returned to the substantive motion.

Resolved CL/2021/241

That the Council

1. Receives the report Nelson Tasman Climate Forum - Charter (R26192) and its attachments (A2560914, A2771786, A2771833); and

2. Delegates authority to Her Worship the Mayor to sign the Nelson Tasman Climate Forum Charter on behalf of Council as a Partner Organisation.

The substantive motion was put and a division was called:

For

Cr Bowater

Cr Courtney

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Cr Rainey

Cr Sanson

Her Worship the Mayor Reese (Chairperson)

Against

Cr Brand

Cr Skinner

Apology

Cr Edgar

The substantive motion was carried 10 - 2.

McGurk/Rainey Carried

The meeting was adjourned from 11.33am until 11.34am.

8. Adoption of the Climate Action Plan

Document number R26187, agenda pages 45 - 74 refer.

Councillor Fulton’s alternative recommendations were tabled (A2788141).

Group Manager Strategy and Communication, Nicky McDonald, and Climate Change Adaptation Adviser, Daniela Ramirez, presented the report, noting background and next steps in the development of the Draft Climate Action Plan. Ms Ramirez advised that the Action Plan was deliberately succinct and would feature on Council’s website as an accountability mechanism for the community, and would be regularly updated.

Ms McDonald and Ms Ramirez answered questions, including clarification of the level of Nelson’s carbon emissions, noting that Statistics New Zealand, which had previously recorded combined Tasman and Nelson emission levels, had released separated inventories and confirmed that Nelson was now at 6.5 in the table, with much lower emissions.

Questions included comparison to other councils’ Climate Action Plans, feedback and discussions, updating of the living document, consideration of the strategic plan and priorities through the Long Term Plan and schools and students for climate action.

Councillor Fulton foreshadowed that she wanted to move her suite of recommendations, which she had indicated when speaking to her Chairperson’s Report at the 18 November 2021 Environment and Climate Committee meeting.

In response to a question as to whether officers supported Councillor Fulton’s recommendations, Chief Executive, Pat Dougherty, advised that officers were guided by Council resolutions to develop an action plan, then a strategic framework, which was the next stage. He felt that there was a difference of opinion regarding the work that had been done and what the Chair of the Environment and Climate Committee wanted, blurring the two things. He felt that the public wanted to see the plan, and indicated that Councillor Fulton’s suite of recommendations could equate to an 18 month piece of work.

Councillor Fulton, seconded by Councillor Courtney, moved the recommendations in her tabled document (A2788141):

That the Council

1. Receives the report (R26187) and its attachments (A2739648 and A2772355); and

2. Recognises the Climate Action Plan is a living document, and approves Attachment A2739648 as an Interim Climate Plan with the following amendments:

a Foreword from the Chair of the Environment and Climate Committee

b Vision, Purpose, Values and Principles based on co-benefits

c Layout incorporating the following four themes:

· How we live and work,

· How we move,

· How we reduce consumption and waste,

· How we stay healthy, connect to the land and take care of nature; and

3. Agrees that the Mayor, Chair and Deputy Chairs of the Environment and Climate Committee be delegated authority to approve amendments to the Interim Climate Plan and the completed version of the Interim Climate Plan by 1 December 2021; and

4. Establishes a Governance Oversight Group (GOG) consisting of Councillor Fulton (Chair), Climate Change Manager, Councillors McGurk, Courtney and O’Neill-Stevens, iwi, representatives from Nelson Tasman Climate Forum, Businesses for Climate Action, Nelson Regional Development Agency, Nelson Marlborough Health, and Forest and Bird; and

5. Agrees that the delegations of the Governance Oversight Group will be to use the Interim Climate Plan as a starting point, work with staff and consultants to create a Climate Plan by July 2022, which gives consideration to:

a incorporating Te Ao Māori

b being aspirational and ambitious

c co-development and co-design being collaborative. co-creative and strives to reach consensus

d refining qualitative and quantitative measurements to show success

e Vision 2060 Framing Our Future Sustainability Strategy

f Nelson City Council’s Long Term Plan 2021-2031

g Auckland Council's Climate Plan

h United Nation’s Sustainability Goals

i expanding incorporation of localised Good Food Cities objectives (NMH lead)

j expanding incorporation of initiatives which promote sustainable housing solutions

k responses to production/embodied carbon and scope 2 and 3 emissions (Greenhouse Gas Protocol) in more detail

l a just transition, climate justice and well-being in more detail; and

m how we educate, inspire and motivate individual and societal behaviour change; and

8. Agrees that the Terms of Reference for the Governance Oversight Group consistent with 4(a) – (m) above will be brought to the Council meeting on 9 December 2021 for sign off, along with the timeline for the final strategy programme.

Her Worship the Mayor noted that officer advice was needed on the recommendations.

Councillor Fulton spoke briefly to the motion, she felt that there had been confusion regarding progression of the strategic framework, which she would like completed before the end of the triennium via establishment of the proposed Governance Oversight Group.

The meeting was adjourned, to be reconvened at 9.00am on Tuesday 23 November 2021.

Minutes of a meeting of the

Nelson City Council

Te Kaunihera o Whakatū

Reconvened in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson on Tuesday 23 November 2021, commencing at 9.08a.m.

Present: Her Worship the Mayor R Reese (Chairperson), Councillors Y Bowater, T Brand, M Courtney, K Fulton, M Lawrey, R O'Neill-Stevens, B McGurk, G Noonan, P Rainey, R Sanson and T Skinner

Apologies : Councillor Edgar for absence

9. Adoption of the Climate Action Plan (continued)

Prior to the 17 November 2021 meeting being adjourned, Councillor Fulton, seconded by Councillor Courtney, moved the following motion:

That the Council

1. Receives the report (R26187) and its attachments (A2739648 and A2772355); and

2. Recognises the Climate Action Plan is a living document, and approves Attachment A2739648 as an Interim Climate Plan with the following amendments:

a Foreword from the Chair of the Environment and Climate Committee

b Vision, Purpose, Values and Principles based on co-benefits

c Layout incorporating the following four themes:

· How we live and work,

· How we move,

· How we reduce consumption and waste,

· How we stay healthy, connect to the land and take care of nature; and

a incorporating Te Ao Māori

b being aspirational and ambitious

c co-development and co-design being collaborative. co-creative and strives to reach consensus

d refining qualitative and quantitative measurements to show success

e Vision 2060 Framing Our Future Sustainability Strategy

f Nelson City Council’s Long Term Plan 2021-2031

g Auckland Council's Climate Plan

h United Nation’s Sustainability Goals

i expanding incorporation of localised Good Food Cities objectives (NMH lead)

j expanding incorporation of initiatives which promote sustainable housing solutions

k responses to production/embodied carbon and scope 2 and 3 emissions (Greenhouse Gas Protocol) in more detail

l a just transition, climate justice and well-being in more detail; and

m how we educate, inspire and motivate individual and societal behaviour change; and

A response from officers was tabled (A2790147).

Councillor Fulton, tabled a substitute motion, (A2791671).

The meeting was adjourned from 9.13am until 9.20am, during which time Councillor Skinner joined the meeting.

In response to questions, Group Manager Strategy and Communication, Nicky McDonald, confirmed that the substitute motion would mean that the timeframe and structure would change, that officers’ views had not changed and that the timeframes originally suggested were not realistic.

The meeting agreed to consider the substitute motion (A2791671).

That the Council

1. Receives the report (R26187) and its attachments (A2739648 and A2772355); and

2. Adopts Attachment A2739648 to inform the development of an Interim Climate Plan, recognising the Climate Plan will be a living document

3. Establishes a Governance Oversight Group (GOG) consisting of the Cr Fulton (Chair), Cr McGurk, Courtney, and O’Neill-Stevens, supported by the Climate Change Manager, to develop a Climate Plan for adoption by Council using the following process:

a. Agrees initial changes to develop an Interim Climate Plan includes:

i. Addition of Foreword from Chair of Environment and Climate Committee.

ii. Inclusion of Vision, Purpose, Values and Principles

iii. Revised layout incorporating the following four themes i.e. How we live and work, How we move, How we reduce consumption and waste, How we stay healthy, connect to the land, and take care of nature.

b. Notes the Interim Climate Plan Amendments tabled in A2788141 as a document for consideration for the Governance Oversight Group to commence the revision of the Interim Climate Plan.

c. Reports the Interim Climate Plan for adoption to the Environment and Climate Committee by late February/early March 2022

4. Delegates the Governance Oversight Group to use the adopted Interim Climate Plan to advance development of a Draft Action Plan by engaging with iwi and community representatives including Nelson Tasman Climate Forum, Businesses for Climate Action, Nelson Regional Development Agency, Nelson Marlborough Health, and Forest and Bird to:

· Develop a process to incorporate Te Ao Maori.

· Refine qualitative and quantitative measurements

· Recognise Vision 2060 Framing Our Future Sustainability Strategy

· Consider Local Government best practice examples including the Auckland Climate Plan

· Reflect the UN Sustainability Goals

· Incorporate concepts and actions that are reflected in the Long Term Plan including partnership relationships

· Incorporate initiatives which promote sustainable housing solutions

· Develop responses to production/embodied carbon and scope 2 and 3 emissions (Greenhouse Gas Protocol) in more detail

· Advance a just transition, climate justice, well-being outcomes and other co-benefits in more detail

· Demonstrate how we educate, inspire and motivate individual and societal behavioural change

5. Reports the Draft Climate Plan to the Environment and Climate Committee by late July/early August 2022 for adoption as the Climate Plan for 2022/23, including review and reporting dates for updating the plan.

6. Acknowledges that some aspects of the developing the Climate Plan may occur in steps over multiple years

7. Agrees that a Terms of Reference for the Governance Oversight Group will be brought to the Council meeting 9 December, 2021 for approval.

8. Notes that iwi engagement to ensure a Te Ao Maori perspective is incorporated, subject to iwi approval, but may take 12-18 months to achieve incorporation into the Climate Plan.

Ms McDonald noted that iwi would normally expect to have input into purpose, vision, values and principles, which would normally be workshopped. Questions and discussion took place on the motion, including the mechanism for external/public input to the annual review of the plan via the Annual Plan and the Long Term Plan.

The meeting was adjourned from 9.51am until 9.52am.

Discussion took place on changes to the motion, including amending clause 3 c) from February/early March to April 2022 and to amend clause 2 to adopt the Climate Action Plan attached to the agenda report (A2739648).

Councillor Skinner raised a Point of Order against Councillor Fulton for disrespect, in that she was asking questions throughout discussion. The Point of Order was not upheld.

The motion was debated. Councillor O’Neill-Stevens advised that he would be suggesting a compromise to the motion currently being discussed.

The meeting was adjourned from 10.22am until 10.32am.

With the agreement of the mover and seconder and the meeting, the motion currently under debate was substituted.

The motion was taken in parts.

Resolved CL/2021/242

That the Council

1. Receives the report (R26187) and its attachments (A2739648 and A2772355); and

2. Adopts the Climate Action Plan (A2739648), recognising it will be a living document.

The motion was put and a division was called:

For

Cr Bowater

Cr Brand

Cr Courtney

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Cr Rainey

Cr Sanson

Cr Skinner

Her Worship the Mayor Reese (Chairperson)

Against

Nil

Apology

Cr Edgar

The motion was carried 12 - 0.

Fulton/Courtney Carried

Resolved CL/2021/243

That the Council

3. Establishes a Climate Change Governance Oversight Group (CCGOG) consisting of Councillors Fulton (Chairperson), McGurk, Courtney, and O’Neill-Stevens, supported by the Climate Change Manager, to:

(a) Support development of the strategic framework for climate change;

(b) Support engagement with Iwi and other key partners;

(d) Provide oversight of climate change operational work; and

4. Agrees that a Terms of Reference for the Climate Change Governance Oversight Group (CCGOG) will be brought to the 9 December 2021 Council meeting for approval.

The motion was put and a division was called:

For

Cr Bowater

Cr Courtney

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Rainey

Cr Sanson

Her Worship the Mayor Reese (Chairperson)

Against

Cr Brand

Cr Noonan

Cr Skinner

Apology

Cr Edgar

The motion was carried 9 - 3.

Fulton/Courtney Carried

Attachments

1 A2788141 - Councillor Fulton's recommendations tabled 17Nov2021

2 A2790147 - Officers' responses to Cr Fulton's tabled recommendations

3 A2791671 - Cr Fulton's substitute motion

10. Carbon Credit Potential from Council Indigenous Forests

Document number R26311, agenda pages 25 - 44 refer.

Independent experts Ollie Belton and Peter Gorman were present via Zoom for this item. Climate Change Adaptation Adviser, Daniela Ramirez, tabled amendments to the agenda report (A2791678). Ms Ramirez summarised the amendments and the difference in costs and income.

The meeting was adjourned from 10.53am until 10.59am.

Councillor Sanson, seconded by Councillor O’Neill-Stevens, moved an alternative to the officer’s recommendation

That the Council

1. Receives the report Carbon Credit Potential from Council Native Forests (R26311) and its attachments (A2761326, A2737347); and

2. Agrees to undertake a detailed assessment of all Council land under ownership and management for eligibility in the Emissions Trading Scheme (ETS); and

3. Requests that eligible Council owned and managed land (including exotic forestry) be registered into the Emissions Trading Scheme before 1 July 2022.

Mr Belton and Mr Gorman answered questions on aspects of ETS membership.

Attendance: Councillor Fulton left the meeting at 11.19am

It was noted that a report would be considered at the 1 December 2021 Forestry Subcommittee meeting to give effect to the 24 June 2021 Council resolutions regarding independent review of Council’s commercial forestry.

Questions were answered regarding the cost of registering/deregistering in the ETC.

Attendance: Councillor Fulton returned to the meeting at 11.29am

Discussion took place regarding reaching zero carbon goals, measuring emissions and offsetting to sequester carbon, commercial forestry block management, lost opportunities and viable options.

During debate Councillor Skinner raised a Point of Order against Councillor Sanson for misrepresentation in quoting incorrect figures. The Point of Order was not upheld.

The motion was taken in parts.

Resolved CL/2021/244

That the Council

1. Receives the report Carbon Credit Potential from Council Indigenous Forests (R26311) and its attachments (A2761326, A2737347).

Sanson/O'Neill-Stevens Carried

Resolved CL/2021/245

That the Council

2. Agrees to undertake a detailed assessment of all Council land under ownership and management for eligibility in the Emissions Trading Scheme (ETS).

The motion was put and a division was called:

For

Cr Bowater

Cr Brand

Cr Courtney

Cr Fulton

Cr Lawrey

Cr O’Neill-Stevens

Cr McGurk

Cr Noonan

Cr Rainey

Cr Sanson

Her Worship the Mayor Reese (Chairperson)

Against

Cr Skinner

Apology

Cr Edgar

The motion was carried 11 – 1.

Sanson/O'Neill-Stevens Carried

Resolved CL/2021/246

That the Council

3. Requests that eligible Council owned and managed land (including exotic forestry) be registered into the Emissions Trading Scheme before 1 April 2022.

The motion was put and a division was called:

For

Cr Brand

Cr Courtney

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Rainey

Cr Sanson

Her Worship the Mayor Reese (Chairperson)

Against

Cr Bowater

Cr Noonan

Cr Skinner

Apology

Cr Edgar

The motion was carried 9 - 3.

Attachments

1 A2791678 - Carbon Credit Potential from Council Indigenous Forests (R26311)

Sanson/O'Neill-Stevens Carried

11. Recommendation from 4 November 2021 Environment and Climate Committee - Whakamahere Whakatū Nelson Plan Programme Update

Document number R26391, agenda pages 75 - 88 refer.

Manager Environmental Planning, Maxine Day spoke to the report.

Attendance: Councillors Rainey and Lawrey left the meeting at 12.03pm.

Ms Day advised that Tasman District Council had resolved to carry on with its work programme, in order to understand the options, and would pause next year.

The meeting was adjourned from 12.06 pm until 12.13pm.

Councillor Skinner moved an amendment by way of addition, seconded by Councillor Brand

During debate, Councillor Skinner raised a Point of Order against Councillor Lawrey for misrepresentation in that he said that the amendment was to increase the number of wood burners. The Point of Order was upheld.

Recommendation

That the Council

2. e) continuing planning framework for air plan and air shed boundary rules, to ensure Council can be responsive to the future National Environmental Standards, subject to resourcing.

The amendment was put and a division was called:

For

Cr Bowater

Cr Brand

Cr Courtney

Cr Noonan

Cr Skinner

Her Worship the Mayor Reese (Chairperson)

Against

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Sanson

Apology/Absent

Cr Edgar (apology)

Cr Rainey (absent)

The amendment was carried 6 - 5.

Skinner/Brand

The substantive motion was put.

Resolved CL/2021/247

That the Council

1. Receives the report Whakamahere Whakatū Nelson Plan Programme Update (R26248) and its attachment (A2781941); and

2. Approves the revised recommended programme, including:

a) pausing work on the Whakamahere Whakatū Nelson Plan, to progress a Housing Choice Plan Change to the Nelson Resource Management Plan; and

b) continuing with the freshwater planning framework development; and

c) continuing with the Coastal Hazard Dynamic Adaptive Pathways planning programme; and

d) considering other priorities for plan changes following the enactment of the Natural and Built Environment Act; and

e) continuing planning framework for air plan and air shed boundary rules, to ensure Council can be responsive to the future National Environmental Standards, subject to resourcing.

McGurk/Fulton Carried

Karakia Whakamutunga

There being no further business the meeting ended at 12.28pm.

Restatements

It was resolved while the public was excluded:

Code of Conduct - establishment of panel

That the Council

1. Receives the report Code of Conduct - establishment of panel (R26343); and

2. Confirms that an independent investigator may be selected from the following panel to assess Code of Conduct complaints if required:

a. Bruce Robertson

b. Neil Taylor

c. Peter Chemis

d. Susan Hornsby-Geluk

Or sought through EquiP Local Government New Zealand -; and

3. Agrees that Report (R26343), and the decision be made publicly available.

Confirmed as a correct record of proceedings by resolution on (date)

Resolved

Item 11: Property and Facilities Activity Management Plan 2021-31

Council

9 December 2021

REPORT R26364

Property and Facilities Activity Management Plan 2021-31

1. Purpose of Report

1.1 To adopt the Property and Facilities Activity Management Plan 2021-31 following approval of the Long Term Plan 2021-31 in June 2021.

2. Recommendation

That the Council

1. Receives the report Property and Facilities Activity Management Plan 2021-31 (R26364) and its attachment (A2443568); and

2. Adopts the Property and Facilities Activity Management Plan 2021-31 (A2511502)

3. Background

3.1 Activity Management Plans (AMPs) are prepared by Council to inform development of the Long Term Plan (LTP). Following consultation on the LTP, AMPs have been reviewed and updated.

3.2 A series of workshops and briefings were held with the elected members during the preparation of this AMP.

3.3 The AMP takes account of previous Council and Committee resolutions and feedback at workshops on the proposed levels of service and key issues.

3.4 A draft Property and Facilities Activity Management Plan was not presented to Council for adoption prior to the Long Term Plan consultation as it was intended that there would be further workshops on the document prior to its adoption. However, a draft AMP was prepared and was used to inform the LTP development.

3.5 The focus areas within the draft AMP cover several areas of Council delegations, as shown in the table below.

2. Focus area	3. Team^{^[1]} within Council responsible	4. Current Committee delegation^{^[2]}
5. Trafalgar Centre	6. Parks and Facilities	7. Community and Recreation Committee
8. Community Centres and Halls (Stoke Memorial Hall, Greenmeadows Centre/ Pūtangitangi, Wakapuaka Hall, Trafalgar Street Hall, Trafalgar Pavilion)	9. Parks and Facilities	*10.* Community and Recreation Committee
*11.* Swimming Pools (Riverside Pool, Nayland Pool)	*12.* Parks and Facilities	*13.* Community and Recreation Committee
*14.* Public Toilets	*15.* Parks and Facilities	*16.* Community and Recreation Committee
*17.* Marina	*18.* Parks and Facilities	*19.* Strategic Development and Property Subcommittee
*20.* Campgrounds (Brook campground, Maitai Campground, Tahunanui Campground)	*21.* Parks and Facilities	*22.* Strategic Development and Property Subcommittee
*23.* Cemeteries (Marsden Valley, Wakapuaka, Seaview and Hira)	*24.* Parks and Facilities	*25.* Community and Recreation Committee
*26.* Crematorium	*27.* Parks and Facilities	*28.* Community and Recreation Committee
*29.* Parks and Reserves Bridges and Platforms (includes jetties and wharfs)	*30.* Parks and Facilities	*31.* Community and Recreation Committee *32.* note, transport bridges not included in this AMP 33.* *note, marina bridges the delegation of Strategic Development and Property
*34.* Parks and Reserves Buildings (those buildings not included in other sections of this AMP or of the Parks and Reserves AMP)	*35.* Parks and Facilities and Property (leased properties)	*36.* Community and Recreation Committee
*37.* Saxton Field Buildings	*38.* Parks and Facilities and Property (leased properties)	*39.* Saxton Field Committee
*40.* Libraries (Elma Turner, Stoke, Nightingale Library Memorial)	*41.* Property and Libraries	*42.* Community and Recreation Committee *43.* Note, Council retains delegations for Elma Turner Library redevelopment
*44.* Heritage Houses (Isel House, Melrose House, Broadgreen House and Founders Heritage Park)	*45.* Property and Community Partnerships	*46.* Community and Recreation Committee
*47.* Community Properties (The Refinery, Citizens Advice/Plunket, Surf Lifesaving Tahuna, Stoke Community Hall, Guppy Park changing rooms, Waimarama Community Gardens, Woodturners building, Youth Nelson Building, 1 Kinzett Terrace, Tahunanui Community Centre, Tahunanui Beach café)	*48.* Property	*49.* Community and Recreation Committee
*50.* Civic House	*51.* Property	*52.* Council
*53.* Strategic Properties (250 Haven Road, Anchor building, 236 Haven Road, 300 Wakefield Quay, 23 Halifax Street, 101 Achilles Avenue, 81 Achilles Avenue, 42 Rutherford Street, Millers Acre and residential properties held for strategic purposes)	*54.* Property	*55.* Strategic Development and Property Subcommittee

4. Discussion

4.1 The Property and Facilities AMP sets out the background to Council’s Property and Facilities activity, and includes details of the following:

4.1.1 Levels of Service

4.1.2 Information on demand, lifecycle management and risk

4.1.3 Focus areas for the activities during 2021-31

4.1.4 Activity budgets for operations and project delivery

4.1.5 Plan improvements

4.2 The Executive Summary of the AMP is appended as Attachment 1.

4.3 The full Property and Facilities AMP 2021-31 (A2511502) is a large document and will be made available on the Council’s website, 2021-31 Activity Management Plans page (www.nelson.govt.nz/2021-31-activity-management-plans), once approved. It is available for elected members in SharePoint and a hard copy will be placed in the Councillors’ Lounge from 21 October.

Changes made through Long Term Plan deliberations

4.4 The following summarises the relevant resolutions made at the LTP deliberations affecting budgets in this AMP. These changes have been incorporated into the final AMP.

16. Allocates a provision of up to $9,400 capital expenditure in Year 1 of the Long Term Plan 2021-31 for resealing the 220m2 of road leading to Sanctuary gates in conjunction with the reseal of roading within the campground; and

17. Further allocates a provision of up to $80,000 capital expenditure in Year 1 of the Long Term Plan 2021-31 to extend WiFi coverage for the Brook Waimarama Sanctuary, particularly to the visitor centre.

24. Approves the development and implementation of a zero overdue fees policy for all late returned library items including books, DVDs, magazines and other lending items, effective from 1 July 2021; and

25. Notes that this decision would result in lost non-rates revenue of $37,000 annually; and

26. Approves additional rates contribution to the Library activity of $37,000 annually to offset the reduction in non-rates revenue; and

27. Notes that Council’s library policy for lost items would not be affected by this change in policy.

28. Notes that officers will review the policy change after 12 months and if required report back to Council.

29. Directs staff to work with Tasman District Council on the option of a regional cemetery in Moutere or Wakefield.

35. Approves a provision of up to $140,000 in Year 3 of the Long Term Plan 2021-31 for a reconfiguration of the Guppy Park changing rooms.

42. Allocates the following provisions for work at the Wakapuaka Cemetery in the Long Term Plan 2021-31 of up to:

a) $5,000 capital expenditure per year for Years 1 to 3 for plantings

b) $3,500 capital expenditure in Year 1 to make the garage more usable

c) $7,000 capital expenditure in Years 1 and 3 for interpretation boards

d) $1,000 capital expenditure per year for blocks to identify denominations

e) $2,500 operating expenditure per year for slope mowing.

43. Agrees that Council will make provision to fund 80% of the cost of the Sea Sports building with the expectation that users will raise a minimum of 20% of the total construction costs, subject to site identification upon approval of the Marina Master Plan.

44. Directs officers to liaise with the Nelson Surf Life Saving Club about the proposed hub at Tahunanui in order to prepare a report for further consideration of the project by the Community and Recreation Committee.

45. Notes that the establishment of a tennis club house in Rutherford Park would not require ratepayer funding; and

46. Directs officers to liaise with the Nelson Lawn Tennis Club about a potential site and lease conditions and bring a report to the Community and Recreation Committee for further consideration including approval of final design concept.

47. Directs staff to have discussions with the Seafarers Memorial Trust about the request for Council to take ownership of the Seafarers Memorial and to bring a report to the Community and Recreation Committee for consideration.

56. Approves an additional $84,000 operational expenditure in Year 2 of the Long Term Plan 2021-31 to cover costs related to allowing more time for completion of the compliance project before leasing of the Brook Valley Holiday Park commences; and

57. Allocates up to an additional $510,000 capital expenditure (being $410,000 in Year 1 of the Long Term Plan 2021-31 and $50,000 in each of Years 2 and 3) for an improved toilet block at the Brook Valley Holiday Park, and to connect long-term occupants to water and wastewater services as well as undertake other work related to achieving compliance and requests a report to the Strategic Development and Property Subcommittee prior to works being undertaken; and

58. Requests officers to review the future uses of the Maitai Valley Motor Camp and report back to the Strategic Development and Property Subcommittee; and

59. Requests officers to reduce the cap on the number of Maitai Valley Motor Camp users.

61. Approves moving the funding from hardstand improvements in Years 7 and 8 of $800,000 (uninflated) to Year 1 of the Long Term Plan 2021–31 to address health, safety and security projects prior to the Marina Masterplan being consulted on; and

62. Notes that additional funding and some redistribution of capital budget between the years of the Long Term Plan 2021-31 is likely to be required once the Marina Masterplan has been adopted; and

63. Requests officers to complete a Masterplan for the sea side of the marina; and

64. Approves a provision of up to $110,000 in Year 1 of the Long Term Plan 2021-31 from the Marina account for a s17a review of governance models and transition costs towards a new governance model if required.

65. Approves the 2020/21 capital carry forwards to the Long Term Plan 2021-31 capital expenditure budgets, as set out in Attachment 2 (A2642025) of Report R24777.

67. Approves that the Long Term Plan 2021-31 be amended to include the changes in the attached document listing corrections and timing changes in Attachment 3 (A2641877) of Report R24777.

4.5 Separate resolutions were also made in relation to the Elma Turner library

1. Receives the report Elma Turner Library - Deliberations on Submissions to the Long Term Plan 2021-31 and Business Case (R24785) and its attachment (A2630896); and

2. Reconfirms that, having considered submissions on the Long Term Plan 2021-31 and having considered the business case, Council’s preferred option is to build a new library building on the corner of Halifax Street and Trafalgar Street, within the Riverside Precinct, subject to agreement with Wakatū Incorporation on a land exchange involving that site and the current library site, and completion of a flood mitigation plan for the proposed building footprint including consideration of effects on adjoining sites; and

3. Confirms that, prior to negotiations taking place:

• Council will approve the land exchange negotiating team and its brief; and

4. Confirms that, on completion of negotiations:

• Council will approve the community engagement process (including a communication strategy), project management and governance approach, procurement process, financial management, and reporting and approvals processes for the proposed new library building and landscaping; and

5. Notes that under best practice a Quality Assurance Framework is used for the life of the project; and

6. Confirms that prior to design

• Council will approve the level of any shared community spaces (including provision for community organisations) in the library building project scope; and

• Council will approve climate change mitigation and environmental sustainability objectives for the new library building and surrounding landscaping; and

7. Notes the guiding principle of developing an accessible community space, and requests officers also consider housing opportunities in the planning process and to report to Council on considerations; and

8. Confirms that, should negotiations with Wakatū Incorporation on a land exchange be unsuccessful, officers will seek confirmation from Council to proceed with Option Four – to construct a new high specification library on the current site; and

9. Confirms that no financial contribution has been committed by Council to Wakatū Incorporation to support construction of the Climatorium.

4.6 These changes have been incorporated into the final AMP budgets and body of the document where appropriate.

4.7 No significant changes have been made to the final AMP other than those made in relation to the above resolutions. A number of formatting and template-related content changes and corrections have been made but none that alter the direction or substance of the draft AMP.

4.8 The AMP reflects decisions made through the Long Term Plan deliberations, however there have been some decisions of Council and Committees made since then which will influence the activities included in the AMP.

4.9 Relevant decisions will be reflected in the 2022/23 and 2023/24 Annual Plans if needed and will otherwise be incorporated into the 2024 review of the AMP. Decisions made to date have included decisions on reviews of property assets, campground compliance, the marina, strategic property sales and leases, the Elma Turner Library Project, funding for the Montgomery Toilet and the Seafarers Memorial structure. Further changes may be made through the Annual Plan. Updates on projects and changes are provided through the quarterly reports to the relevant Committees.

Activity Management Plans 2024-34

4.10 Planning for future Activity Management Plans 2024–34 will commence shortly. To ensure officers have a clear understanding of Council’s expectations and key issues, workshops will be arranged with the relevant Committees over the next three years.

4.11 There is an expectation that the structure of this AMP will change before the 2024 AMPs are prepared, with a likely outcome that there are three separate AMPs: The Marina, Facilities, and Property. More investigation is required before this can occur.

5. Options

5.1 The Property and Facilities Activity Management Plan 2021-31 supports Council in meeting its obligations under Section 93 and Schedule 10 of the Local Government Act 2002 and the recommended option is for Council to adopt this Plan.

Option 1: Adopt the Property and Facilities Activity Management Plan 2021-31 (Recommended)
Advantages	· Supports Council to meet requirements of the Local Government Act 2002. · Aligns with the direction set by the LTP 2021-31
Risks and Disadvantages	· None
Option 2: Do not adopt the Property and Facilities Activity Management Plan 2021-31
Advantages	· None
Risks and Disadvantages	· Not adopting the AMP would leave Council without a clear plan to mitigate risks and achieve levels of service.

6. Conclusion

6.1 The Property and Facilities Activity Management Plan 2021-31 has been reviewed and amended to reflect all decisions made by the Council in the adopted Long Term Plan 2021-2031.

Author: Jane Loughnan, Parks and Facilities Asset Planner

Attachments

Attachment 1: A2443568 Executive Summary to Property and Facilities Activity Management Plan 2021-31 (A2443568) (Circulated separately) ⇨

Important considerations for decision making

1. Fit with Purpose of Local Government

Council’s Property and Facilities Activity Management Plan sets out the background to Council’s property and recreation facilities activities and will support Council in meeting its obligations under section 93 and Schedule 10 of the Local Government Act 2002.

2. Consistency with Community Outcomes and Council Policy

The development of a Property and Facilities Activity Management Plan supports Council’s contribution towards Community Outcomes and Council strategy documents. These are listed in the AMP with a description of the activity’s contribution. All the community outcomes are supported by the activity:

· Our unique natural environment is healthy and protected

· Our urban and rural environments are people-friendly, well planned and sustainably managed

· Our infrastructure is efficient, cost effective and meets current and future needs

· Our communities are healthy, safe, inclusive and resilient

· Our communities have opportunities to celebrate and explore their heritage, identity and creativity

· Our communities have access to a range of social, educational and recreational facilities and activities

· Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement

· Our region is supported by an innovative and sustainable economy

The AMP reflects the adopted Long Term Plan and any decisions undertaken in that.

3. Risk

Adopting the Activity Management Plan is a low risk as it has been through a thorough development process and reflects all of the relevant Long Term Plan decisions. Adopting the Activity Management Plan also helps Council mitigate risks by providing a clear plan to achieve levels of service, address relevant focus areas and sets activity budgets for operations, maintenance, renewals and capital expenditure.

4. Financial impact

The Activity Management Plan reflects the decisions made by Council on 24 June 2021 when the Long Term Plan 2021-31 was adopted and sets out budgets for both operational and capital expenditure. Staff time has been used to prepare the AMP and this report.

5. Degree of significance and level of engagement

This matter is of low significance because decisions arising from the LTP that were considered to be significant were consulted on through the LTP.

The LTP and LTP budgets have already been adopted by Council and this document supports the delivery of those items.

6. Climate Impact

The AMP sets out what activities are occurring in relation to climate impact over the ten year period. The AMP considers the potential impacts and risks climate change presents to the Property and Facilities Activity.

Climate impact implications were considered as part of the development of the Long Term Plan 2021-31.

7. Inclusion of Māori in the decision making process

Iwi feedback was sought on the AMP. Engagement with Māori will be undertaken on specific projects as required.

No engagement with Māori has been undertaken in preparing this report.

8. Delegations

The Community and Recreation Committee has the following delegations to consider the Property and Facilities Activity Management Plan

Areas of Responsibility:

· Arts, Culture and Heritage

· Cemeteries and Crematorium

· Community Centres and Halls

· Community Development, including youth issues, ageing issues and social well-being

· Founders Heritage Park

· Heritage Houses and their grounds

· Recreation and Leisure Facilities and Services, including swimming pool facilities and Waahi Taakaro Golf Course

· Sports Fields, including Trafalgar Park and the Trafalgar Pavilion

· The Trafalgar Centre

Powers to decide:

· Developing, approving, monitoring and reviewing policies and plans, including activity management plans

Powers to recommend to Council:

· Unbudgeted expenditure relating to the areas of responsibility, not included in the Long Term Plan or Annual Plan

· Decisions regarding significant assets

The Strategic Development and Property Subcommittee has the following delegations to consider the Property and Facilities Activity Management Plan

Areas of Responsibility:

· Haven Precinct

· Marina Precinct

· Campgrounds

· Strategic properties as identified in the Property and Facilities Activity Management Plan

Powers to decide:

· Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

Powers to recommend to Council:

· Approval of final versions of strategies, policies and plans

Council retains all responsibilities, powers, functions and duties in relation to governance matters for the following items:

· Civic House

· Elma Turner Library redevelopment and Riverside Precinct

As the Property and Facilities Activity Management Plan covers matters that relate to the areas of responsibility of more than one committee, subcommittee or subordinate decision-making body, the matter is considered a cross-committee item and instead of being considered by one or more committees, will be considered by Council directly.

Item 12: Deliberations on public feedback to Te Ara ō Whakatū - Nelson City Centre Spatial Plan

Council

9 December 2021

REPORT R26331

Deliberations on public feedback to Te Ara ō Whakatū - Nelson City Centre Spatial Plan

1. Purpose of Report

1.1 To consider the public feedback on the Draft Te Ara ō Whakatū – Nelson City Centre Spatial Plan to inform the 30-year strategic vision guiding the development of Nelson’s city centre and fringe.

1.2 After considering the public feedback, approve the adoption of Te Ara ō Whakatū – Nelson City Centre Spatial Plan.

2. Summary

2.1 On 26 August 2021 Council approved the Draft Te Ara ō Whakatū for community engagement and public feedback. This followed four months and 80 meetings gaining targeted community pre-engagement feedback that helped develop Te Ara ō Whakatū. Council sought more formal public feedback from 30 August 2021 to 1 October 2021 through a range of means.

2.2 80% of the feedback is supportive, 15% not supportive, and 5% did not know.

2.3 After considering the feedback received, officers recommend the adoption of Te Ara ō Whakatū – Nelson City Centre Spatial Plan subject to some minor amendments.

3. Recommendation

That the Council

1. Receives the report Deliberations on public feedback to Te Ara ō Whakatū - Nelson City Centre Spatial Plan (R26331) and attachments: (A2786233, A2783462, A2780828 and A2787576); and

2. Accepts the following late feedback (A2780828) on Te Ara ō Whakatū – Nelson City Centre Spatial Plan:

· JR Elkington and Trevor duFeu; and

3. Adopts the updated Te Ara ō Whakatū – Nelson City Centre Spatial Plan (A2786233); and

4. Agrees that the Mayor, Chair of Urban Development Subcommittee and Group Manager Environmental Management be delegated to approve any minor editorial changes; and

5. Recommends officers create an implementation plan for the first phase of delivery over the next 10 years and bring that back to Council; and

6. Notes the adoption of Te Ara ō Whakatū – Nelson City Centre Spatial Plan is a strategy that builds on and updates previous city centre strategies e.g., Heart of Nelson.

4. Background

4.1 On 29 June 2021 Council adopted the Long Term Plan (LTP) 2021-31. One of Council’s key priorities in the LTP is the Nelson city centre.

4.2 On 26 August 2021, Council resolved as follows:

Approves the Draft Te Ara ō Whakatū – Nelson City Centre Spatial Plan for public feedback

Approves the consultation approach (set out in paragraphs 4.3 and 4.4 of this report (R25919) and agrees:

(a) The approach includes sufficient steps to ensure the Draft Te Ara ō Whakatū- Nelson City Centre Spatial Plan will be reasonably accessible to the public and will be publicised in a manner appropriate to its purpose and significance; and

(b) The approach will result in the Draft Te Ara ō Whakatū- Nelson City Centre Spatial Plan being as widely publicised as reasonably practicable as a basis for consultation.

Communications and Media

4.3 Council sought public feedback on the proposal from the 30 August 2021 to 1 October 2021 (extended by one week due to COVID-19 lockdown) through a range of means including:

4.3.1 Delivery of 21,000 summaries to homes in Nelson, around cafes/bars/libraries/vaccination centre, and the Suter once Nelson came out of lockdown.

4.3.2 A video animation with over 20,000 views online through Facebook and Youtube channels.

4.3.3 7 stories featured in Our Nelson.

4.3.4 External media coverage through stories in the Nelson Mail, Nelson Weekly and Nelson Magazine.

4.3.5 An eight-page summary sent to most households in Nelson as part of the Our Nelson publication.

4.3.6 Media releases and interviews with the Deputy Mayor in the two week lead up to 24 August.

4.3.7 Promoted on Council’s social media channels and Council’s website (Shape Nelson) with the feedback document linked.

4.3.8 Our Nelson feature including notice of the opportunity to provide feedback.

4.3.9 Advertising with local media on radio and in electronic print form.

4.3.10 An opinion piece from the Deputy Mayor in The Nelson Mail.

4.3.11 Antenno app alerts via Nelson Weekly.

4.3.12 Print adverts.

4.3.13 Zoom webinar presentation for the Chamber of Commerce.

COVID-19 Level 4 Alert Level and engagement

4.4 Due to COVID-19 lockdown restrictions the following engagement methods, which were part of the original engagement strategy, were unable to be undertaken:

4.4.1 Under Alert Level 4, hard copies of the public feedback document were unable to be made available at all libraries and the Council Customer Service Centre. Hard copy materials were made available at Civic House, Elma Turner Library and Stoke Library during Alert Levels 3 and 2.

4.4.2 The public expo scheduled for 3 and 4 of September 2021.

4.5 The public was able to provide feedback using Council’s website and/or online submission form in Shape Nelson, via email, or by phoning in to the customer service centre to have comments recorded.

Engagement with Iwi

4.6 An update report on Te Ara ō Whakatū went to the Iwi Managers Meeting on 28 September 2021. Officers and Waka Group attended the meeting. Officers provided an update on progress. Iwi supported the work and use of Te Aranga Principles as a framework going forward. Those iwi present, provided feedback on the spatial plan noting there was discussion and support on specific actions in the report (particularly greening measures and cultural expression - specifically with the cultural laneway linking to Albion Square).

Urban Development Subcommittee

4.9 On 26 October 2021, the Urban Development Subcommittee received a briefing on the results of the five-week consultation period.

Previous Engagement

4.10 In addition, to the above public feedback period, targeted community pre-engagement was also undertaken from March to June across 81 meetings with over 250 attendees from over 40 community sectors.

5. Discussion

5.1 Public feedback sought the views of the public on:

5.1.1 Whether or not the proposal was supported; and

5.1.2 The reasons for those views.

5.2 The feedback document outlined two options that the Council had considered, and the advantages, disadvantages, and risks of those. The two options were:

Option 1: “Purposely Excellent” - Adopt Te Ara ō Whakatū – Nelson City Centre Spatial Plan

· Creates investment certainty

· City centre strategy in place to guide decision makers

· Supports housing intensification

· Creates a more climate and economically resilient future

Option 2: “Accidentally Great” - No city centre strategy - Not adopt Te Ara ō Whakatū – Nelson City Centre Spatial Plan

· Ad hoc changes

· No certainty

· Does not leverage business or investment certainty

5.3 Reports and engagement materials stated that the Council’s preferred option was Option 1.

5.4 A total of 332 submissions were received. 70% responded ‘yes’ in support of Te Ara ō Whakatū as a people focused, place-based 30-year vision for Nelson's city centre. 12% responded ‘no’ and did not support Te Ara ō Whakatū; 4% said they did not know if they supported it or not and 14% did not state any preference. Two late submissions were received (A2780828) but did not change the overall analysis of the public feedback.

· All of the Te Ara ō Whakatū feedback that was received and analysed for this report has been collated into two documents and are available on Shape Nelson. (Please see links for the documents - A2768209 - Te Ara ō Whakatū - Combined Feedback - Part 1 - Nov2021 and A2768213 - Te Ara ō Whakatū - Combined Feedback - Part 2 - Nov2021). The documents are very lengthy and too large to include in the Agenda as attachments.

5.5 47 submissions (14%) did not state any preference. Many of these submissions were in the form of submission attachments, emails or other formats that did not provide a ‘yes’ or ‘no’ response. Upon qualitative review of these submissions, 30 were evaluated as being supportive of Te Ara ō Whakatū, 10 were not supportive and 5 were evaluated as being as did not know. If submission analysis is adjusted following qualitative analysis of the submissions not stating a preference, then 80% of submissions were supportive, 15% not supportive, and 5% did not know.

Diagram

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5.6 Feedback on the proposal to sell 69 to 101 Achilles Avenue and/or 42 Rutherford Street to Kāinga Ora for social and affordable housing was sought by Council at the same time as this consultation. This enabled the community to consider both related proposals in conjunction with one another. Many respondents provided feedback on both consultations. 14% of respondents that supported Option 1 of the Kāinga Ora proposal believed having more people living in the city centre was a significant factor in activating Nelson’s city centre.

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5.7 Eight actions underpin Te Ara ō Whakatū to enable a people-focused, place-based destination. A transformed Nelson city centre where more people live, work, shop, dine, socialise, and play. A place that attracts visitors and talent supporting Nelson as a smart little city. Support for each of the actions is shown in the graphic above and are summarised in further detail in Attachment 2 (A2783462).

5.8 The 4-month pre-engagement period saw general positivity and support for Te Ara ō Whakatū. Some attendees raised issues (climate change) and single topic points (potential loss of parking). However, pre-engagement generally had an 80/10/10 breakdown around support/non-support issues/non-support single topic points. This result is generally consistent with the public submission results. No surprises were noted week to week during pre-engagement. Plans were developed iteratively with attendees over the final 3 months of meetings. No anomalies were encountered with developing the final product.

5.9 The majority (80%) of submissions support a future Nelson city centre that is focused on people. Submitters see Nelson as a destination and accept positive change is needed. These submitters highly desire a city centre with better streetscapes, more spaces to sit, more trees/shade, great public spaces and pedestrian amenities.

5.10 38 submissions (14%) in support of Te Ara ō Whakatū raised concerns that the effects of climate change need further and longer-term consideration in a vision for Nelson’s city centre. The majority of these submitters generally regard Te Ara ō Whakatū as moving in the right direction toward reaching Council commitments with greenhouse gas emission reduction by 2050.

5.11 Four submissions were not supportive of Te Ara ō Whakatū specifically because of a stated desire to see greater resilience in the plan with a more comprehensive approach on climate strategy.

5.12 Many submissions expressed concerns about specific themes that could affect the ability to deliver the 8 key actions. The theme receiving the most feedback was parking with 93 submissions (28% of all submissions). In relation to parking, 57 (17% of all) submissions supported less priority on car parking to achieve the vision of Te Ara ō Whakatū. 36 submissions (72% of all non-supporting submissions) stated a preference for the current parking approach.

5.13 40% of all submissions raised parking and/or climate change as a consideration with Te Ara ō Whakatū. Completion of the Nelson Parking Strategy and further development of Council’s climate change strategic direction (including the Climate Action Plan) are seen by many in the public as crucial and will help provide better certainty with two of the biggest concerns raised in response to Te Ara ō Whakatū.

5.14 Council received feedback on a wide range of other themes on Te Ara ō Whakatū, including:

· Regional Transport 55 submissions (17%)

· Social/affordable Housing 38 submissions (11%)

· Cost (implementation) 20 submissions (6%)

· Design and detail 20 submissions (6%)

· Timing (implement sooner) 19 submissions (6%)

· Wider influence of plan 17 submissions (5%)

· Built scale and height 14 submissions (4%)

refer Attachment 2 (A2783462)

5.15 The response on regional transport, climate change, parking, building heights, and well-managed social housing to the success of Nelson city centre indicate an ecosystem of public-facing activities that, in some cases, raise concerns regarding a perceived lack of information and coordination between these activities. As a result of Te Ara ō Whakatū being relatively early in Council’s city centre strategic framework, it has attracted some comments best addressed through Council’s other strategic work.

5.16 In response to submissions that desire more certainty and delivery sooner, a more articulated programme of city centre projects over the first decade has been developed in response (refer Section 8 of this report).

5.17 As a result of the feedback received; Officers recommend Te Ara ō Whakatū for adoption by Council with minor refinements as outlined below in 5.18.

5.18 The Draft Te Ara ō Whakatū document has been modified to reflect the following changes as a result of clarifying the Nelson Public Life Survey data and the public feedback. Refer Attachment 4 (A2787576):

· Updates to renders to reflect feedback from accessibility advocates (e.g., seats with backs and armrests)

· Clarification of Our City Centre at a glance data on pages 14-15 to accurately reflect that Trafalgar Street represents half of Nelson city centre’s pedestrian movements, not activity

· Clarification of Public Life survey data on page 73 to accurately reflect an average of pedestrian movements in the city centre on weekdays and weekends, not the sum of daily winter and summer movements

· Further detail on the first decade Delivery programme on pages 82-83 of the Te Ara ō Whakatū main document, including potential tactical urbanism trials and capital projects

· Removal of ‘Draft’ from Te Ara ō Whakatū document title and page footers

5.19 These changes to the Draft Te Ara ō Whakatū document were undertaken with input from the Chair of the Urban Development Subcommittee and Group Manager Environmental Management.

Te Ara ō Whakatū in conjunction with other Council strategies

5.20 Feedback from the public raised several themes, most prominently climate change response and regional transport. Te Ara ō Whakatū will continue to coordinate with the relevant Council environmental, and climate change strategic direction, including Draft Whakamahere Whakatū Nelson Plan. Te Ara ō Whakatū will also continue to work closely with the transport team regarding city centre access, public transport network, active mode network and parking strategy development.

5.21 Te Ara ō Whakatū will be a ‘living document’ that will require a refresh at least once a decade, or as directed by Council. Refreshing Te Ara ō Whakatū will enable the city centre vision to evolve and adapt with Council priorities and strategies.

5.22 Looking ahead, as part of future design considerations for any future design, Council will incorporate best practice response to key environmental factors such as:

· sustainability

· waste minimisation

· urban greening

6. Options

6.1 The options are to approve Te Ara ō Whakatū or not approve. Officers recommend approval.

Option 1: Approve an amended Te Ara ō Whakatū – Nelson City Centre Spatial Plan for adoption (Recommended Option)
Advantages	· Has received overwhelming support through feedback from the community (80%). · Will provide the city with a 30-year strategy to go forward. · Specific actions will require separate sign-off from Council which enables subsequent Council strategies and relevant government policies such as the Nelson Parking Strategy to be incorporated. · A ‘living document’ means Te Ara ō Whakatū has resiliency and can be refreshed to adapt with new Council and Government strategies
Risks and Disadvantages	· Te Ara ō Whakatū release is ahead of other strategies, such as on climate change strategic direction and the Nelson Parking Strategy. This is mitigated by integrating the proposed actions of Te Ara ō Whakatū across Council’s other city centre strategies. · Uncertainty around delivery of the plan that might be perceived as too far into the future.
Option 2: Do not Approve the Te Ara ō Whakatū – Nelson City Centre Spatial Plan for adoption
Advantages	· Council officer resources available to focus on other business (NB mostly on ad hoc implementation of city centre projects, so not a true advantage)
Risks and Disadvantages	· No 30-year strategy for Nelson’s city centre. · Continues to promote ad hoc decision-making processes to direct the development of Nelson city centre. · Could impact potential Government funding of capital projects through application to the Infrastructure Acceleration Fund. · Impacts attraction of new business, development and talent to align with Nelson as a smart little city. · Not supported by the community given the feedback received. · Reputational damage to Council given the high public support for the strategy. · Furthers perceptions regarding consultation fatigue and might discourage future engagement with the public on the city centre.

7. Conclusion

7.1 There has been a very high level of support. 80% of respondents have submitted in support of Te Ara ō Whakatū. Officers recommend that the Final Te Ara ō Whakatū – Nelson City Centre Spatial Plan document be adopted subject to minor amendments.

8. Next Steps

8.1 If the recommendations in this report are approved the following would be the next steps:

8.1.1 Following adoption of Te Ara ō Whakatū, Council will bring forward projects to implement in the future. Initial projects will include temporary tactical works already budgeted under Council’s Streets for People capital works programme to pilot smaller projects in the city centre that reflect the Te Ara ō Whakatū vision. Once identified, these projects will come back to Council for consideration.

8.1.2 As a 30-year plan, Te Ara ō Whakatū will require budgeting over many years to achieve the vision. Consideration for capital projects delivered in the city centre in the first few years will include:

· Current projects prioritised in the Long Term Plan (LTP):

o Bridge Street Linear Park as part of the current Infrastructure Acceleration Fund. If the application is successful, this will include design options, business case development and further stakeholder engagement.

o Play in Nelson city centre is identified in Council’s current LTP. Further investigation on integrating play and potential play spaces in the city centre will be undertaken in coordination with Council Parks Team.

o Renewals in the city centre (e.g., paving, trees and planting, waste and recycling, seating, lighting and amenity).

8.1.3 Preparation of an implementation and delivery plan for the first 10 years that recognises the Long-Term Plan outcomes, Activity Management Plans and Kāinga Ora housing options.

Author: Alan Gray, City Centre Development Programme Lead

Attachments

Attachment 1: A2786233 - Final Te Ara ō Whakatū Main Document - Nov2021 (Circulated separately) ⇨

Attachment 2: A2783462 – Final Te Ara ō Whakatū Public Feedback Summary - Oct2021 (Circulated separately) ⇨

Attachment 3: A2780828 – Final Te Ara ō Whakatū - Late Feedback - Submission - JR Elkington and Trevor duFeu - 17Nov2021 ⇩

Attachment 4: A2787576 - Te Ara ō Whakatū - Document Revisions made after feedback consultation - Nov2021 ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

Decisions in this report allow Council to adopt Te Ara ō Whakatū- Nelson City Centre Spatial Plan. This will allow Council to make decisions on behalf of the community to promote its social, environmental, economic, and cultural well-being that are consistent with the purpose of the Local Government Act.

2. Consistency with Community Outcomes and Council Policy

Te Ara ō Whakatū- Nelson City Centre Spatial Plan is consistent with Nelson’s urban development strategies. It aligns with Council’s Long-Term Plan, the Draft Whakamahere Whakatū Nelson Plan, Future Development Strategy, key Transport Strategies, including Nelson Future Access Strategy (Waka Kotahi), modal shift (walk and cycle), bus public transport and the Nelson Parking Strategy (in development).

3. Risk

While there was no specific obligation on Council to consult on adopting Te Ara ō Whakatū – Nelson City Centre Spatial Plan, there was a risk that Council’s reputation may be impacted if a draft of the plan was not circulated for community feedback. A public feedback process was undertaken over a five-week period to address this risk.

As the plan is long-term and aspirational, there is a likely risk that some in the community will consider the plan too ambitious. Others in the community might express a view the plan should be even bolder.

Despite an extensive community engagement process over four months, speaking with people holding diverse viewpoints, it is likely not everyone will consider that their views and comments are reflected in the plan. These perspectives were reflected in the public feedback process.

Risk exists concerning delays in the delivery of the projects in the plan. Risks exist with high expectations from the public. These risks will require proper process undertaking on-going engagement with the community.

4. Financial impact

1. Council has already committed funding for the development of Te Ara ō Whakatū and $14m allocated for the city centre in the approved 2021-2031 Long Term Plan for the following:

· Initiate tactical pilot projects over the next 2-3 years to test and trial potential city centre outcomes consistent with the City Centre Spatial Plan

· Business case options for major capital projects to leverage delivery outcomes consistent with the City Centre Spatial Plan

Te Ara ō Whakatū- Nelson City Centre Spatial Plan will be part of strategic Government funding opportunities in Whakatū Nelson to potentially leverage funding as part of the Infrastructure Acceleration Fund application.

5. Degree of significance and level of engagement

While a high level of public interest exists for Nelson’s city centre, Te Ara ō Whakatū- Nelson City Centre Spatial Plan is considered of low to moderate significance when considered against all criteria in Council’s Significance and Engagement Policy. It does not require a Special Consultative Process (SCP) as it does not impact on levels of service provided by Council, degree of impact on Council’s debt or the level of rates it charges and that decisions related to Te Ara ō Whakatū are not irreversible.

Council has determined an appropriate process for Principles of Engagement. An extensive pre-engagement process has been undertaken over the past 4 months meeting with over 40 community sectors with over 275 representative attendees representing more than 200 hours of discussion over four weeklong sessions with a wide range of stakeholders inputting into the 30-year vision for Te Ara ō Whakatū – Nelson City Centre Spatial Plan.

The purpose of public feedback on Te Ara ō Whakatū was to seek the public’s view on the plan. The official public engagement process, consistent with the requirements of the Local Government Act 2002 (LGA02), section 82 Principles of Consultation, began on 30 August 2021. This process had the support of NCC’s Communications team to ensure a high profile in the community and across all media channels (online and physical). Residents were encouraged to engage with the Draft document and provide Council with their feedback via Shape Nelson or hardcopy public feedback form. This process closed on 1 October 2021 (5 weeks total duration).

It is not proposed that there would be a hearing (having regard to s82(1)(d) of the LGA and the assessment of significance).

Public feedback was sought on the Draft Te Ara ō Whakatū- Nelson City Centre Spatial Plan during a 20-working day period (30 August – 24 September 2021). This period was extended by one week because of COVID-19. A public Expo was scheduled for 3 and 4 September 2021 but cancelled due to COVID-19 Alert Level 4 lockdown.

6. Climate Impact

The strategic vision of Te Ara ō Whakatū – Nelson City Centre Spatial Plan acknowledges climate change is a risk facing the city and region. Te Ara ō Whakatū is consistent with the necessary initial steps over 30 years to provide a robust response for the City Centre to climate impact. Te Ara ō Whakatū will promote intensified city centre living (with reduced reliance on private vehicles), modal shift, lowered carbon emissions, increased stormwater capacity and urban greening measures.

7. Inclusion of Māori in the decision making process

An early version of Te Ara ō Whakatū – Nelson City Centre Spatial Plan came to the iwi Managers Forum in March 2020.

The Draft Te Ara ō Whakatū was discussed at the iwi Managers Forum again on 28 September 2021.

8. Delegations

The Urban Development Subcommittee (UDS) has delegations for the Te Ara ō Whakatū – Nelson City Centre Spatial Plan. However, in accordance with section 5.2.2 of the Delegations Register, matters within the area of responsibility of a particular committee, subcommittee or subordinate decision-making body may be considered directly by Council instead on the recommendation of the Chief Executive and with the agreement of the Chair of the subcommittee and the Mayor. This has occurred in this case, and the Chair of UDS will report to the following meeting of the subcommittee regarding the reason for doing so, and the outcome of the matter at the Council meeting, in accordance with the Delegations Register.

Item 14: Infrastructure Acceleration Fund: Request for Proposals

Council

9 December 2021

REPORT R26340

Infrastructure Acceleration Fund: Request for Proposals

1. Purpose of Report

1.1 To advise Council of the outcome of Council led Expressions of Interest (EOIs) to the Infrastructure Acceleration Fund (IAF), and to outline next steps with respect to Request for Proposals (RFPs).

1.2 To note relative priorities of the RFP’s.

2. Summary

2.1 On 22 June 2021 the Government announced at least $1 billion of grant funding for infrastructure projects to unlock housing development in the short to medium-term. This funding is under the IAF and administered by Kāinga Ora. Council submitted five EOIs working closely with four developers.

2.2 Council received notification on 15 October 2021 that four EOI’s were shortlisted to proceed to the next stage of submitting Request for Proposals (RFPs). Those RFPs are due on 17 December 2021. The RFP requirements are appended as Attachment 1 (A2772290).

2.3 As resolved by Council on 12 August 2021, further information was to be brought to Council following the outcome of the EOI process. At this stage it would be premature to move budgets around and change project priorities until certainty is known following Kāinga Ora’s assessment of the RFPs. Once that outcome is known and before any negotiations are advanced with central government, officers will bring back a report to identify the potential impacts on Council’s approved LTP work programme and officers’ ability to deliver additional work for any approved RFPs.

2.4 This report also proposes relative priorities of each RFP as required by Kāinga Ora.

3. Recommendation

That the Council

1. Receives the report Infrastructure Acceleration Fund: Request for Proposals (R26340) and its attachments (A2772290 and A2797854); and

a. Achilles Avenue/Rutherford Street Affordable Housing development;

b. Solitaire Investments Limited/Marsden Park Limited (Marsden Valley);

c. Wakatū Incorporation (Horoirangi); and

4. Notes the priority ratings allocated to the developments, as required by Kāinga Ora, as part of the Request for Proposal submission process, namely:

a. Priority 1 - Achilles Avenue/Rutherford Street Affordable Housing development;

b. Priority 2 - Solitaire Investments/Marsden Park Limited (Marsden Valley);

c. Priority 3 - Wakatū Incorporation (Horoirangi); and

5. Notes that a further report will be brought to Council once Kāinga Ora has decided which, if any, of Council’s Request for Proposals are successfully through to the negotiation stage, detailing:

a. The required level of Council investment in infrastructure to support each qualifying development; and

b. Whether or not this funding is included in the Long-Term Plan 2021-31 and which year(s); and

c. The impact of prioritising any capital projects that support qualifying development on the phasing of other capital projects within the Long-Term Plan 2021-31 work programme;

d. Any developers’ agreements required to progress the negotiations; and

e. The capacity of Council to deliver multiple additional infrastructure projects within the required timeframe.

4. Background

4.1 The 12 August 2021 Council report provides the necessary background and is not replicated here. Please refer to the pages 64 – 136 at the following link for reference: http://meetings.nelson.govt.nz/Open/2021/08/CL_20210812_AGN_3414_AT.PDF. Please note that the recommendation changed during this meeting, this has been attached for your information (A2797854).

4.2 RFPs are to be submitted by 17 December 2021, with notification of the outcome expected by the end of April 2022. Successful proposals will progress to negotiation prior to Ministers’ final funding decisions expected by October 2022.

4.3 Council resolved on 12 August 2021 as follows:

“Includes the following developer Expressions of Interest as part of the Council’s application to the Kainga Ora administered Infrastructure Development Fund, noting that this decision is in no way intended to fetter any future Council decision-making in relation to the proposals, including in its regulatory capacity:

a. Wakatū Incorporation (Horoirangi, A2711258); and

b. Maitai Development Co “Maitahi” (Kaka Valley, A2716113); and

c. Stoke Valley Holdings Limited/Solitaire Investments Limited/Marsden Park Limited (Ngawhatu Valley/Marsden Valley, A2720023); and

d. Gibbons (Bishopdale, A2713299)

Notes that a further report will be brought to Council once Kāinga Ora has decided which, if any, of these Expressions of Interest will be invited to respond to a Request for Proposals process detailing:

• The required level of Council investment in infrastructure to support each qualifying development; and

• Whether or not this funding is included in the Long-Term Plan 2021-31 and which year(s); and

• The impact of prioritising any capital projects that support qualifying development on the phasing of other capital projects within the Long-Term Plan 2021-31 work programme; and

• The capacity of Council to deliver multiple additional infrastructure projects within the required timeframe”.

4.4 Council also submitted an EOI to the IAF for 69 to 101 Achilles Avenue under Public Excluded (since released into public) and resolved on 12 August 2021 as follows:

“Approves Nelson City Council’s Expression of Interest to the Infrastructure Acceleration Fund for infrastructure projects to enable residential capacity within the city centre, noting that Council has yet to consult on or make a decision on the sale of 69 to 101 Achilles Avenue and 42 Rutherford Street to Kāinga Ora (A2721398 of Report R26071); and

Notes that a further report will be brought to Council once Kāinga Ora has decided if this Expression of Interest will be invited to respond to a Request for Proposals process detailing:

· The required level of Council investment in infrastructure to support the qualifying development; and

· Whether or not this funding is included in the Long-Term Plan 2021-31 and which year(s); and

· The impact of prioritising any capital projects that support qualifying development on the phasing of other capital projects within the Long-Term Plan 2021-31 work programme; and

· The capacity of Council to deliver multiple additional infrastructure projects within the required timeframe”

5. Discussion

5.1 Council received notification on 15 October 2021 that of its five EOI applications four were approved to proceed to the next stage as shown below, with one application (Bishopdale) declined:

5.1.1 Achilles Avenue/Rutherford Street affordable housing;

5.1.2 Marsden Valley/Ngawhatu Valley development area;

5.1.3 Maitahi Village; and

5.1.4 Horoirangi Phase 1.

5.2 Officers are working with the developers to complete all RFPs to achieve the very tight submission date of 17 December 2021 and Council has engaged external assistance to co-ordinate and manage the RFPs. The RFPs are not included in this report as they are not yet finalised.

5.3 Kāinga Ora has advised that two of the proposals (Maitahi Village and Horoirangi Phase 1) could also be submitted (as separate stand-alone applications by the developers) to the Māori Infrastructure Fund (MIF) – which is a $750 million fund separate to the IAF. Proposals can be submitted both to the IAF and MIF. The decision to submit to the MIF is a decision for the two developers to make and if they decide to do so will be led by each developer with no Council input.

5.4 The RFP submission requirements are substantial. Key information sought by Kāinga Ora includes:

5.4.1 Greater degree of accuracy on costs, noting that scope increases since the EOIs were submitted are not eligible. Kāinga Ora have also advised that they are busy working through COVID-19 supply chain additional costs implications and that RFPs do not need to cater for these;

5.4.2 Greater clarity on each party’s fair share contribution to each proposal;

5.4.3 Greater thought on what infrastructure may be required to facilitate future growth in addition to the proposals but noting that applying for more funding in this matter is not eligible;

5.4.4 Commitment to affordable housing; and

5.4.5 Evidence to support housing demand, technical infrastructure reports, risk analysis, gantt charts for delivery programmes for both the infrastructure projects and the housing developments, market analysis and sales strategies.

5.5 Kāinga Ora have also advised that:

5.5.1 The fund is to support Council’s to get infrastructure to growth areas faster;

5.5.2 The fund is not to support internal developer costs;

5.5.3 No fast-track process is being considered by Kāinga Ora for resource consenting;

5.5.4 The fund will provide grants for the level of service and renewals components of the infrastructure projects, and a loan for the portion of those projects required to support growth. Council will be responsible for collecting development contributions in order to repay the loan for the growth portion or developers fair share;

5.5.5 Councils would be responsible for all cost overruns beyond any funding they receive if successful;

5.5.6 The fund will only pay 50% pre-construction costs with costs beyond this to be fully co-funded; and

5.5.7 Council will be responsible for negotiating with developers and ensuring that they deliver.

6. Developer Feedback

6.1 Following further discussions with the developers, the following observations are noted:

6.1.1 That with respect to the Marsden Valley/Ngawhatu Valley development proposal (a joint proposal between three private developers), one developer has decided not to proceed to the RFP stage. The application will be led by Solitaire Holdings/Marsden Park and Kāinga Ora are happy with this approach.

6.1.2 The Mahitahi developer has advised Council that they have deemed that there are other options that better suit their goals and vision for this development which they are actively pursuing instead of the Infrastructure Acceleration Fund. Council will therefore not be pursuing this RFP application.

7. Relative priorities

7.1 Kāinga Ora has also asked that the Council prioritise all applications to aid their decision making, specifically noting:

7.2 This is somewhat complicated by the fact that all EOIs and hence RFPs are Council led applications with key inputs from different developers with different drivers.

7.3 In the absence of formal Kāinga Ora criteria, officers have applied the following criteria to guide that priority setting:

7.3.1 Priority 1 – Developments that address Council priorities (infrastructure, city centre, housing affordability and intensification sustainable transport culture).

7.3.2 Priority 2 – Housing yield.

7.3.3 Priority 3 – Readiness of applications.

7.4 Applying these criteria, officers have arrived at the following priorities (with reasons):

Priority	Development	Reasons
1	Achilles/Rutherford	Meets all of Council’s priorities, proposal provides for yield across the City Centre to be realised not just KO development, land is zoned.
2	Marsden	Highest yield per dollar spent on infrastructure & no plan change required
3	Horoirangi Phase 1	Plan change required & not yet commenced

8. LTP, Council Priorities and Resourcing

8.1 As noted to and agreed by Council on 12 August 2021, Council’s support for the EOIs was a strong signal that it supports further investigating provision of infrastructure to enable development to proceed and that success at the RFP stage is likely to require a re-phasing of the capital programme to allow construction to meet the timelines of the IAF.

8.2 If new, unbudgeted infrastructure is required, or if there are significant changes to the phasing of budgeted projects, Council may have to consult on amendments to its LTP.

8.3 RFPs are phase two of a process and any decision on the RFPs are expected to be made in April 2022, with successful proposals proceeding to negotiations with central government. It would be premature to move budgets and change project priorities until certainty is known.

8.4 The negotiation involves two contracts - a contract between Council and the Crown for the funding and a second Housing Outcomes Agreement between the Crown, Council, and the developer.

8.5 Officers will provide further advice on the timing of any consultation in the next report that will presented back to Council (expected June 2022) once Kāinga Ora has decided which, if any, of Council’s RFPs are successfully through to the negotiation stage. That report will also identify other risks and impacts of any rephasing of the capital programme and the ability of Council to assist in delivering these works.

9. Options

RFP’s

9.1 There are no decisions to be made now with respect to the RFPs, other than noting that officers will be working with developers to progress all the RFPs to meet the 17 December 2021 deadline. Councils 12 August 2021 support for submitting the EOIs is premised on proceeding to RFP stage and that its support was considered to be a strong signal that it is willing to further investigate providing the supporting infrastructure to enable development to proceed.

Relative priorities

9.2 There are no decisions to made in this matter. Officers have applied a criteria in determining relative priorities for the RFPs to fulfil the requirement from Kainga Ora.

10. Conclusion

10.1 Council submitted five EOI applications to the IAF of which four were approved to proceed to the RFP stage. Officers are working with developers to achieve the RFP deadline of 17 December 2021.

11. Next Steps

11.1 Kāinga Ora will assess each RFP with feedback expected in April 2022.

11.2 Officers will report to Council at that time on the outcome of the RFP process (expected June 2022) and will:

11.2.1 Provide Council with information on the impacts of those projects on Council’s capital works programme as set out in the LTP and what consultation needs to be undertaken; and

11.2.2 Identify what additional resource is required to finalise negotiations, and the implication for the current year’s work programme.

11.3 Between May and October 2022 Kāinga Ora will be negotiating with Council for funding and delivery of any proposals that are approved. A separate agreement is required between the Crown, Council, and the developers, through a Funding Housing Agreement, to address affordable housing requirements.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1: A2772290 - IAF RFP Annexure B - Evaluation Criteria and Supporting Material ⇩

Attachment 2: A2797854 - 12 August IAF recommendation update ⇩

Important considerations for decision making

1. Fit with purpose of Local Government

The Government has specifically asked territorial authorities to participate in this EOI/RFP process. Affordable housing development is supported by good quality local infrastructure which promotes social, economic, and environmental wellbeing.

2. Consistency with community outcomes and Council policy

The recommendations in this report align with the following community outcomes:

· Our urban and rural environments are people friendly, well planned and sustainably managed

· Our infrastructure is efficient, cost effective and meets current and future needs

· Our communities are healthy, safe, and resilient

· Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement

3. Risk

The IAF process is a two-stage process with four of the five submissions approved to proceed to the RFP stage. There is no guarantee that any RFP submitted or supported by Council will be successful. There is substantial additional officer time required to progress the RFP’s and this has required input from the Utilities and Transport teams from Infrastructure and the City Development Team.

4. Financial impact

Council has already indicated its strong support for each EOI, which has a requirement for infrastructure to be provided by Council to support the development objectives. In some cases, budget has been provided in the LTP. If the RFP applications are successful, Council may have to re-prioritise and re-phase its infrastructural programme over the next 5-10 years. Further analysis of these impacts will be provided for each project that passes the RFP selection phase.

There are significant positive financial impacts if Council is successful in attracting central government funding for its infrastructure programme.

5. Degree of significance and level of engagement

This matter is of low significance to the community given the stage in the process. This decision is in line with Council’s LTP priorities of housing intensification and affordability, and of investing in infrastructure.

Any subsequent changes to the LTP 2021-31 capital programme may require further consultation.

6. Climate impact

Climate change impact will need to be considered during the design phase of any development that progresses. Council will work with developers to assist them in determining design options that address climate change impact in the development of their concept plans

7. Inclusion of Māori in the decision-making process

Māori have not been consulted on in the writing of this report.

8. Delegations

This matter is a cross-committee matter as it falls within the delegations of both the Infrastructure Committee, and the Urban Development Subcommittee, and is therefore a matter for Council.

Item 15: Three Waters Reform Update and submission on Three Waters Economic Regulator discussion document

Council

9 December 2021

REPORT R26389

Three Waters Reform Update and submission on Three Waters Economic Regulator discussion document

1. Purpose of Report

1.1 To provide an update on the Government’s Three Waters Reform programme, including outlining next steps on public engagement.

1.2 To approve the submission on the Economic Regulation and Consumer Protection for Three Water Services in New Zealand.

2. Summary

2.1 On 27 October 2021, the Minister for Local Government, Hon Nanaia Mahuta announced the Government will create four publicly owned water entities with legislation mandating an ‘all in approach’ to be introduced to Parliament this year.

2.2 The Government has released a Discussion paper, Economic Regulation and Consumer Protection for Three Waters Services in New Zealand, with submissions closing on 20 December 2021.

2.3 This report also outlines Council’s next steps on engaging with our community and major water users on the new Water Services Entities Bill that will be released for consultation by central government in mid-December.

3. Recommendation

That the Council

1. Receives the report Three Waters Reform Update and submission on Three Waters Economic Regulator discussion document (R26389) and its attachments (A2788174, A2786106, A2786027); and

3. Agrees that the Mayor, Infrastructure Committee Chair and Chief Executive be delegated authority to approve minor editorial amendments to the Council submission (A2786027); and

5. Agrees to community engagement to be undertaken prior to Council submitting on the draft legislation as detailed in Report R26389; and

6. Notes a submission on the Water Services Entities Bill will be prepared once the Bill is introduced to Parliament and will be brought back to Council for approval including community feedback; and

7. Notes that the Chief Executive will report back once staff have received further information and guidance from the Government on the next steps and how these should be managed.

4. Background

4.1 Over the past four years central and local government have been considering the issues and opportunities facing the system for regulating and managing the three waters (drinking water, wastewater, and stormwater). On 27 October 2021, The Government publicly announced the next steps in the reform programme.

4.2 On 23 September 2021, Council resolved the Chief Executive will report back once staff had received further information and guidance from the Government on the next steps in the reform programme and how these should be managed (23 September Council Agenda, page 174). Council resolved the following:

“Notes that Council would need to gain an understanding of the community’s views once Council has further information from the Government on the next steps in the reform process”

5. Discussion

Taumata Arowai legislation has passed

5.1 A water services regulator has been established, Taumata Arowai, which will enforce existing standards, with significant penalties proposed, including fines and criminal proceedings.

5.2 The Water Services Act is now law and introduces significant new regulation for water services, which will apply however water services are delivered, such as:

5.2.1 stringent compliance with current drinking water safety standards. Complying with these standards may require infrastructure investment. But councils will not be able to defer crucial upgrades on the grounds of cost; and

5.2.2 working alongside Regional (and Unitary) Council regulators to provide national oversight on the performance of wastewater and stormwater networks.

The Government has released more information on reform programme

5.3 On 27 October 2021, a suite of information was released by the Government on the next steps of the Three Waters reform programme. This announcement included confirmation the Government will create four publicly owned water entities to manage drinking water, wastewater and stormwater infrastructure and services. The decision-making has been removed from councils, with all councils being mandated to join an Entity. Nelson City Council has been placed in Water Service Entity C.

5.4 The Government announced that the Water Services Entities Bill, will be introduced to Parliament in 2021 to progress the establishment of the entities. This would include a select committee process to provide an opportunity to get public feedback on the reforms. This will be followed by a Water Services Entities (Implementation) Bill in 2022.

5.5 The Department of Internal Affairs (DIA) released a Three Waters Reform Programme Update on 5 November 2021, which included additional information on the next stages in the reform programme. The Government announced the establishment of three working groups to work through outstanding issues. More information on these working groups is outlined in paragraph 5.18.

5.6 The Government has also established the National Transition Unit (NTU), for executing the Government’s decisions on Three Waters reform. The DIA has announced that from November 2021 to 1 July 2024, the transition from the current system to the new one will take place and the NTU will ensure the transition is efficient, effective and minimises disruption to communities and consumers. The NTU has been tasked with working with the local government sector, iwi, water industry and other stakeholders on the transition to the new arrangements. In 2022, the NTU will set up four local establishment entities (LEEs), which will support the local transition in their area. More information on the NTU is attached (Attachment One: A2788174) The DIA has advised future updates on the transition process are likely later this year.

Timeline on Three Waters reform outlines process to new entities

5.7 The Government’s Three Waters reform timeline indicated the Water Services Entities Bill will be introduced to Parliament, referred to Select Committee and submissions called for by the end of 2021. The timeline indicates the Select Committee process, including public submissions and hearings, will occur in early 2022, with the Bill being enacted later in 2022. This timeline is attached (Attachment Two: A2786106).

5.8 Other key milestones in the timeline include:

5.8.1 Water Service Entities (Implementation Bill) – July 2022

5.8.2 First $500 million of ‘better off’ funding available – July 2022

5.8.3 Economic Regulation (Water Services) Bill (TBC) – January 2023

5.8.4 Water Services Entities operational – 1 July 2024

5.8.5 Reminder $2 billion of ‘better off’ funding available – July 2024

Ability for the public to engage in the process

5.9 Council resolved on 23 September 2021 that Council would need to gain an understanding of the community’s views once Council has further information from the Government on the next steps in the reform process.

5.10 Council outlined in its feedback to Government that there is significant public commentary around the need for consultation with the community, considering the significance of the reforms. Council informed the Minister for Local Government that it had received feedback requesting a referendum, or full public consultation, prior to implementation of the reforms. Council sought clarification from the Government on the next steps and intentions for consultation.

5.11 The Government’s announcement included ensuring local participation is evident in the next phase of the reforms and that the public will have an opportunity to provide feedback. The public will be invited to submit on the Water Service Entities Bill when the Select Committee submission process opens in December. Additionally, the public can be involved in the discussion document on the economic regulation and consumer protection. The Government’s timeline indicates further submission opportunities will occur on the Water Services Entities (Implementation) Bill and the to be confirmed Economic Regulation (Water Services) Bill. Council can promote these opportunities to the public and provide information on how the public can have their say directly to Parliament.

Council-led engagement and consultation to take place on the Water Service Entities Bill

5.12 At the time of writing this report, the Water Service Entities Bill has not yet been introduced to Parliament or made publicly available. Therefore, it is difficult to know what the Bill contains, and what the public will be asked to submit on. Once the Bill is released, officers will need to review it prior to drafting a submission on behalf of Council and to prepare engagement material for the public to guide Council’ submission.

5.13 Council has limited time to undertake engagement with the public prior to drafting Council’s submission on the Bill. Public engagement will be used to inform Council’s submission, with analysis of the public feedback coming back to Council for discussion prior to finalising Council’s submission. The Communications Plan will include:

5.13.1 Stage one –Bill released

· Council media release announcing details of the Parliamentary engagement process once known

· Council to engage with stakeholders directly to encourage submissions to Parliament

5.13.2 Stage two – Engagement opens

· Council media release and advertising detailing how the public can engage with Council to help inform Council’s submission through local and social media

5.13.3 Stage three – Council submission

· Council media release on details of Council’s submission once it is made public

· Release Council’s submission to Parliament through web site, social media, and Our Nelson

· Mayor’s Message closest to submission deadline to focus on Three Waters and governance.

5.14 Based on Parliamentary procedure a Select Committee cannot call for submissions in anticipation of a bill being referred to it, therefore Council will not know the timeframes for submissions until after the Bill has had its first reading in Parliament. The standard time for opening of submissions is four to six weeks, however the Select Committee may set a longer period for submissions and Council understands this is likely to be the case. Council’s draft submission will be brought to the first Council meeting in 2022 for approval.

Economic regulation and consumer protection feedback sought by the Government

5.15 On 27 October 2021, the Minister of Commerce and Consumer Affairs, Hon Dr David Clark, released a discussion paper on the options for economic regulation and consumer protections within the Three Waters services. It outlines consideration of mechanisms to give consumers and communities a voice in the three waters regulatory system to ensure it is responsive and accountable. It provides a range of options on issues without ruling out any option.

5.16 Officers have drafted a response (Attachment Three: A2786027) which has been circulated to elected members previously. The draft submission focuses on public engagement with economic regulation and consumer protection in the three waters regulatory regime. Additionally, the draft submission focuses on how the economic and consumer protection regulation should interact with other aspects of the three waters regulation, such as Taumata Arowai, and governance.

5.17 Council has not engaged the public in the development of this submission. This is due to timings, with submissions required by 20 December 2021. The next stage of the economic regulation and consumer protection part of the Three Waters reforms is likely to include legislation. At this stage Council could undertake public engagement prior to making a submission on that Bill. The DIA indicative timeline indicates this Bill will occur in 2023.

Three working groups are being established

5.18 The Government has announced the establishment of three working groups to complement the work of the Joint Central-Local Government Steering Committee. The three working groups are:

5.18.1 Representation, governance and accountability of new water service entities group

· To respond to feedback received from the local government sector on arrangements including the number of layers in the governance structures, the size of the Representative Governance Group, the lack of direct influence over the appointments and removal of entity board members and concerns about a lack of accountability

· On 10 November, it was announced Mayor Rachel Reese has been appointed as a member of this Working Group

5.18.2 Planning Technical Advisory Group

· To provide advice on the interface with the resource management system and local government planning to ensure the water service entities, councils and other infrastructure providers can work effectively together

5.18.3 Rural Supplies Technical Advisory Group

· To build on existing work focused on ensuring that there is a clear pathway and support for the transition of small, rural suppliers into regulatory system

6. Options

6.1 Two options are presented for consideration. Approve or not approve the draft submission (A2786027) on the Economic Regulation and Consumer Protection for Three Waters Services in New Zealand discussion paper.

Option 1: Approve the Economic regulation and consumer protection discussion document submission (Recommended)
Advantages	· Provides feedback to the Government on Council’s perspective of economic regulation and consumer protections for Three Water services · Enables the Government to potentially make changes to the proposals that improve the economic regulation and consumer protection regimes
Risks and Disadvantages	· Submission does not fully accord with views of Council
Option 2: Do not approve the Economic regulation and consumer protection discussion document submission
Advantages	· Council not committed by submission content
Risks and Disadvantages	· Feedback not raised with the Government

7. Conclusion

7.1 The Government has mandated the Three Waters reform programme, with Nelson City Council in Water Service Entity C and announced legislation will be introduced in late 2021. The Water Service Entities will be operational on 1 July 2024.

7.2 Council has a role to engage the public on the next steps in the reform programme. The public consultation process on the Water Services Entities Bill will be led by the Parliamentary Select Committee. Council, and the public, will have the ability to submit as part of this process.

8. Next Steps

8.1 Following the introduction of the Water Services Entities Bill, Officers will prepare a submission for Council.

8.2 The Chief Executive will keep Council informed on the next steps of the Three Waters reform programme when more information is known, including implications for Council and transition arrangements. The Mayor will report back on the representation, governance and accountability Working Group.

Author: Pat Dougherty, Chief Executive

Attachments

Attachment 1: A2788174 - National Transition Unit Overview - Provided by DIA (Circulated separately) ⇨

Attachment 2: A2786106 - Three Waters Reform Timeline - Provided by DIA (Circulated separately) ⇨

Attachment 3: A2786027 - Draft submission on economic regulation and consumer protection for three water services in New Zealand (Circulated separately) ⇨

Important considerations for decision making

1. Fit with Purpose of Local Government

Central governments objectives of improvement to the provision of water services supports the social, economic, environmental and cultural wellbeing of the community.

2. Consistency with Community Outcomes and Council Policy

This report’s content supports the following community outcomes:

· Our Council provides leadership and fosters partnerships, regional perspective and community engagement

3. Risk

There are organisational risks to Council in transitioning to a new Water Service Entity. These were outlined in the 23 September Council Report. However, the Government has mandated the reform programme. The Chief Executive will keep Council informed on the next steps of the transition arrangements once more information is known.

4. Financial impact

There are significant long-term financial impacts relating to the transfer of three water assets and management to a new Water Services Entity.

5. Degree of significance and level of engagement

The future of water services delivery is a significant issue which will be of interest to a wide range of community members and groups. This report outlines the Government’s mandate and that no decision is being requested by Council. As such, the significance of this report, as assessed against Council’s Significance and Engagement Policy, is low to medium. Council has worked to increase public understanding of the Government’s proposal and how the public can be involved in the reform programme.

6. Climate Impact

Climate mitigation and adaptation, resilience and environmental impacts are drivers of the reform process. There are no specific impacts arising from this report.

7. Inclusion of Māori in the decision making process

The Crown is leading the engagement with iwi/Māori and mana whenua.

8. Delegations

This is a matter for Council.

Item 16: Annual Report 2020/21

Council

9 December 2021

REPORT R26237

Annual Report 2020/21

1. Purpose of Report

1.1 To adopt the Annual Report for the year ending 30 June 2021 in accordance with section 98 of the Local Government Act 2002.

2. Summary

2.1 The Local Government Act usually requires Council to adopt the final Annual Report within four months of the end of the financial year (31 October). Due to the impacts of COVID-19, the Government has extended the adoption deadline to 31 December for the 2020/21 and 2021/22 annual reports.

2.2 Audit has completed its review of the non-financial sections of the draft Annual Report 2020/21, and the financial sections are still being audited, with no major issues identified at this stage. An unmodified audit report is expected. Further minor editorial adjustments may be required as part of the final proofing process. A designed version of the Annual Report for publication will be tabled at the meeting.

2.3 Audit New Zealand commenced auditing of the draft Annual Report 2020/21 in September 2021, and audit work is still underway. Although the Council audit is almost completed, audit on the Nelson City Council group has not been finalised, due to delays in finalising Nelson Airport Limited’s financial statements. No significant issues were found during the audit and Audit New Zealand is expecting to issue an unmodified audit report. Audit has indicated that audit work will be completed in time to adopt the Annual Report at the Council meeting on 9 December 2021.

2.4 The Annual Report 2020/21 presents a positive picture of the financial performance of the Council over the previous year. Council recorded an accounting surplus before revaluations for the year ended 30 June 2021 of $9.0 million which was $2.1 million more than budget. Borrowings net of cash and deposits were $87.7 million, compared to a budget of $115.7 million.

2.5 Progress was made across a range of projects in line with Council’s priorities of infrastructure, environment, central city development, and lifting Council performance. Council achieved 53 out of 80 performance measures in a year that was again impacted by COVID-19.

2.6 Changes made to the document during the audit process are highlighted for your reference (Attachment 1).

2.7 The draft Audit opinion is not yet available and will be attached to this report prior to the adoption date (9 December 2021).

3. Recommendation

That the Council

1. Receives the report Annual Report 2020/21 (R26237) and its attachments (A2791731 and A tbc); and

2. Adopts the Annual Report for the year ended 30 June 2021 (A2593052) in accordance with s98 of the Local Government Act 2002; and

3. Receives the draft Audit New Zealand Opinion (A tbc); and

4. Delegates the Mayor and Chief Executive authority to approve minor editorial changes to the Annual Report 2020/21 (A2791731), as necessary.

4. Background

4.1 The purpose of the Annual Report is to compare the actual activities and performance of the local authority with those set out in the applicable Long Term Plan or Annual Plan (the Annual Report 2019/20 compares performance against the 2019/20 Annual Plan). It also aims to promote the local authority’s accountability to the community for the decisions made throughout the year. An Annual Report is required under section 98 of the Local Government Act 2002.

4.2 An initial draft of the Annual Report 2020/21 was presented to the Audit, Risk and Finance Subcommittee on 14 September 2021. Feedback from the Subcommittee was used to inform the content of the final Annual Report 2020/21 (Attachment One).

4.3 Audit New Zealand commenced auditing of the draft Annual Report 2020/21 in September 2021 and concluded its work in December 2021. Audit is expected to issue a final unmodified audit report. A draft audit report has been prepared and is attached (Attachment Two). The final audit report will be issued once Council has adopted the Annual Report.

4.4 The Annual Report includes both the parent (Nelson City Council) and the Nelson City Council Group – which consists of Nelson City Council, its subsidiaries (Nelmac Limited, Nelson Civic Trust, Bishop Suter Trust, Nelson Regional Development Agency) and its associates and joint ventures.

4.5 As Council does not have a controlling interest in its associates (Nelson Airport Limited, Tasman Bays Heritage Trust and Port Nelson Limited) these are equity accounted. Nelson Regional Sewerage Business Unit, Nelson Tasman Regional Landfill Business Unit, and Nelson Tasman Combined Civil Defence Organisation are proportionately consolidated as these are not separate legal entities. Further detail of the accounting treatment is included in Note 1 to the accounts.

5. Discussion

Highlights for 2020/21

Climate Change

5.1 Council set emissions reduction targets for the organisation, committing to achieving net zero emissions of all greenhouse gases (excluding biogenic methane) by 2050, and reducing biogenic methane emissions by 24-47% by 2050. Emissions were measured and Council’s carbon footprint was successfully audited. Council also began conducting energy audits of its key buildings.

Community Housing

5.2 Council’s 142 community housing units were sold to Kāinga Ora in 2021 for $19.8 million, creating a $12 million Housing Reserve to support affordable and social housing projects in Nelson. From the balance, $5.1 million was held in a reserve for retrofitting, renewal and consents for redevelopment of the units, $1.5 million was paid back to Kāinga Ora for required maintenance and healthy homes work and the balance was used to repay the Local Government Housing Fund Loan ($1.2 million) with Housing New Zealand Corporation.

Governance

5.3 A review and restructure of Council’s committee and subcommittee arrangements was completed, and Council voted to establish a Māori ward for the 2022 local elections.

5.4 The Long Term Plan 2021-31 was consulted on and adopted, setting Council’s vision and work programme for ‘Nelson – A Smart Little City’ for the next ten years. Over 660 submissions were received and 136 people spoke at the hearings. The Infrastructure Strategy for 2021-2051 was also adopted, and activity management plans prepared.

Economic Development

5.5 Implementation of Project Kōkiri (the Nelson Tasman region’s post-COVID-19 economic recovery plan) continued, and the project moved from the ‘survival and response’ phase into ‘restart and recovery’. Work by the NRDA included: supporting local businesses, delivering the ‘We’ve Got This – Kei a Tātou’ campaign, launching the Pick Nelson Tasman campaign, promoting events to support the economy, and launching new action-oriented workstreams such as ‘Skills & Workforce Development’. Council invested $250,000 in this project in 2020/21, and Tasman District Council contributed an additional $200,000.

5.6 Council approved funding of $5.72 million to support the development of a Science and Technology Precinct by Port Nelson in collaboration with the Cawthron Institute.

5.7 $700,000 of funding was also approved by Council to support the Nelson marine slipway redevelopment and services expansion in 2021/22.

Infrastructure

5.8 Council was awarded $1.23 million from the Provincial Growth Fund, for infrastructure projects to help our region recover from the COVID-19 pandemic by providing local jobs. Projects undertaken using this funding included the Beach Road raised table and Maitai riverside path widening.

5.9 Council agreed to participate in the initial stage of the Three Waters Reform Programme and signed a Memorandum of Understanding with the Department of Internal Affairs. As part of this agreement Council received initial grant funding of $5.72 million, to support Three Waters service delivery and aid economic recovery from COVID-19 through job creation. This was allocated towards a variety of projects and programmes, including Awatea Wastewater Pump Station Upgrade and Beach Road Pump Station and Wastewater Storage Tanks upgrade.

5.10 A grant of $7.5 million was received from central government’s COVID-19 Response and Recovery Fund, for Saxton Creek Upgrade Stage 4 ($1 million of which was used in 2020/21).

Sustainable Transport

5.11 A total of 2.8 km of new shared or separated paths were built, including the Anzac Park to Maitai Shared Path. Stage 2 of the Tāhunanui Pathways project was completed, which has improved cycle safety for residents, commuters, and students of the local school. Council also invested in an underpass on the Railway Reserve.

5.12 The Bee Card was launched in August 2020. Users have embraced this new technology, with 88% of bus journeys now paid for using the card.

5.13 Council’s Innovative Streets for People trial project in Nelson South began. Traffic speeds were monitored before and after the trial changes were made, and there have been significant reductions in speed. The project received the 3M Traffic Safety Innovation Award.

Three Waters and Flood Protection

5.14 6,000 new residential water meters were installed and watermains were upgraded and renewed in several locations around the city, including Hardy Street and Melrose Terrace, to maintain a reliable water supply and allow for future residential and business growth, and intensification.

5.15 Council continued to invest in improved wastewater infrastructure to improve resilience and capacity, and minimise the risk of overflows to the environment. Several major works were completed, including the Gracefield Sewer Diversion, planning for the new Awatea Pump Station, and installation of the Beach Road Storage Tank.

5.16 Stormwater upgrades were made to reduce the risk of flooding and to improve capacity for future development. Council’s flood protection investment in upgrading Saxton Creek continued, with Stage 3 near completion at the close of 2020/21. Flood protection works at Whakatū Drive also approached completion.

Waste Management

5.17 Council launched the Rethink Waste programme. Many community-based activities are part of this initiative to empower the community to rethink waste, including new monthly composting workshops, Secondhand Sunday, and repair cafes. A waste minimisation grant trial began, and waste minimisation was incorporated into Council event delivery.

5.18 Council began its 12 month trial for kerbside collection of residential kitchen waste. By July 2021 (after 19 weeks of the trial) 8,950kg of kitchen waste had been diverted from landfill. Council also introduced a new construction and demolition waste reduction programme through support for the deconstruction of 23 Halifax Street.

City Centre and Planning

5.19 Work on the City Centre Spatial Plan (Te Ara ō Whakatū - The Pathway of Nelson) continued in 2020/21. Targeted community pre-engagement was undertaken, with 81 meetings held with more than 40 community sectors, and over 250 attendees participating. Engagement was also undertaken on the draft Whakamahere Whakatū Nelson Plan.

5.20 A ‘Pop-up Park’ opened on the banks of the Maitai/Mahitahi River in September 2020, and is now a popular space for young people to play in the City Centre. Council also approved a location and completed the design for a Youth Park, to be developed in the Marsden Recreation Reserve next to the Stoke Memorial Hall.

Biodiversity

5.21 Project Mahitahi is a government-funded ecological restoration project, with $3.7 million funding granted over 5 years. It is a Kotahitanga mō te Taiao Alliance project, co-designed and co-governed by Council, Iwi partners (Ngāti Koata, Ngāti Rārua, and Te Ātiawa) and the Department of Conservation. The project was launched in October 2020, and since its inception has employed 33 people across a range of projects, planted 15,000 trees, held five community planting events, and removed pest animals and plants from the Maitai catchment.

Community Facilities

5.22 Direction on the Central Library Development was determined through the Long Term Plan 2021-31 process. The current Elma Turner Library is located in a converted space, and is too small to deliver the range of services expected from a modern library. There are insufficient bookable spaces for groups and events, and the building itself would require substantial investment over time to maintain the status quo. The construction of a new library will bring it into the 21st century, allowing broadening of the scope of services and opportunities within a larger, purpose-built building and surrounding precinct.

Non-financial performance

5.23 Council measures its non-financial success against performance measures that are set through the Long Term Plan. The Long Term Plan 2018-28 established 80 performance measures across Council’s 11 activity areas. The measures are recorded as ‘achieved’, ‘not achieved’, or ‘not measured’ (where insufficient data is available to determine a result) at the end of the year.

5.24 Council achieved 53 of its non-financial performance measures (66.25%) in 2020/21, which is equal to its performance in 2019/20. Commentary on all measures is provided in the activity sections of Attachment 1.

5.25 As was the case in the previous year, Council’s ability to achieve many of its performance measures was impacted by COVID-19. In 2020/21 Nelson was fortunate to stay at Alert Level 1 for the majority of the year, with some relatively short periods at Level 2. However, the uncertainty and socioeconomic impacts of COVID-19, particularly the lack of international visitors and cancellation/scaling down of events, have affected the achievement of some targets. This is particularly notable in the social activity, which has many events-based measures, but also across other areas too, such as bus patronage.

5.26 As annual reporting was undertaken over the period of the Long Term Plan 2018-28, several of the measures set in 2018 no longer align with changing data collection methods and legislated performance requirements (e.g. required inspection of licenced premises). Those measures are listed as ‘not achieved’ against the targets set in 2018, which does not accurately reflect Council’s actual achievements in these areas.

5.27 Similarly, numerous measures selected in 2018 relate to the performance of other organisations (such as the Theatre Royal and Suter Art Gallery), which Council has little control over. It also has limited influence on overarching measures such as Nelson’s GDP. To address this, Council’s performance measures were revised in the Long Term Plan 2021-31, to give a more accurate, relevant picture of Council’s non-financial performance over the next three years.

Surplus

5.28 The Annual Report shows that Council recorded a net surplus before revaluations for the year ended 30 June 2021 of $9.0 million which was $2.1 million more than budget. The surplus was $7.2 million for the 2019/20 financial year. More detail for the variance is explained in the Annual Report Note 40, however the reasons for this variance are mainly due to:

5.28.1 Fees and charges are $2.5 million greater than budget, this is mainly due to the Building Consent activity income being $927,000 over budget. The driver behind higher income is increased levels of activity in the building sector during the recovery from COVID-19 compared with budgeted estimates which were conservative. Also, the Nelson Tasman Regional Landfill Busines Unit (NTRLBU) fees and charges income is $931,000 greater than budget due to a higher tonnage of waste received compared with budget.

5.28.2 Subsidies and grants are $2.7 million greater than budget mainly due to unbudgeted grants received from Central Government largely to offset the economic effects in the community caused by COVID-19 which are offset by additional expenditure. Some examples of this include:

· Waka Kotahi provided $565,000 for the Public Transport COVID-19 response;

· Ministry for the Environment and Department of Conservation provided $671,000 for the Ecological Restoration Programme;

· Waka Kotahi provided $852,000 in operating and capital grants for Kawai Street Innovative Streets.

5.28.3 Other revenue is $2.5 million under budget mainly due to vested assets being $3.5 million under budget. The timing of vested asset receipts is dependent on the development cycle of individual developers.

5.28.4 Other gains/losses are greater than budget by $6.1 million due to below reasons:

· Gain on derivatives are $5.7 million greater than budget due to movement in interest rates;

· Gain on sale of Community Housing of $2.6 million;

· Loss on Disposal on Infrastructure assets of $1.8 million with some assets removed from the network earlier than anticipated in conjunction with our work programme.

5.28.5 Depreciation is greater than budget by $3.1 million mainly due to depreciation on Three Waters assets being $2.3 million greater than budget due to an increase in replacement values at 30 June 2020. Water supply assets increased by an average of 13%, wastewater assets increased by an average of 25%, and stormwater assets increased by an average of 29% when compared with values at 1 July 2019.

5.28.6 Other Expenses are $3.1 million greater than budget mainly due to the unbudgeted expenditure incurred due to the additional income received, including:

· Expenditure for the Champion Road connection to Saxton Field was $774,000 greater than budget. This was recovered from Tasman District Council for their half share of the project costs.

· Operating expenditure for the unbudgeted Kawai Innovative Streets project of $657,000 has partially been offset by operating grant income received.

· Community Housing expenditure is greater than budget by $610,000 due to the settlement happening later than assumed, and includes the repayment of previously recognised income from the suspensory loan.

· The NTRLBU expenditure is greater than budget due to the increased provision for post closure costs of $149,000, impairment of landfill infrastructure of $133,000, Emissions Trading Scheme expenditure of $105,000, management expenditure of $104,000, and consultancy expenditure of $86,000. This is offset by additional revenue.

5.28.7 Land and Infrastructure Revaluations were $48.7 million over budget;

· Infrastructure assets are revalued every year to smooth out the large fluctuations and accounted for $23.9 million of the overall revaluation. This was against a budget of $20.2 million.

· Land is revalued every five years or when its fair value diverges materially from the carrying value. There were material movements in the 2020/21 year and the revaluation at 30 June 2021 resulted in a total increase in land value of $45.0 million. As this was not budgeted to be a land revaluation year, this movement was against a nil budget.

External Debt

5.29 At 30 June 2021 Council’s borrowings, net of deposits, cash and LGFA borrower notes were $86.1 million compared to a budget of $114.6 million. This variance from the budget is mainly due to following reasons;

· Borrowings were lower due to Capital Expenditure not reaching the full programme and ending less than forecasted by $10.0 million against the Annual Plan budget. This is due to a combination of reasons including savings, timing and carry forwards to future years. Detail relating to variances in the Capital Programme can be seen in the section of “Summary of Capital Expenditure over $100,000”.

· Net proceeds received from selling community housing were $17.0 million against a budget of $8.0 million, with $5.1 million of this required to be held in a reserve for potential use by Kāinga Ora.

Rating Deficit

5.30 The rates deficit is $2.55 million against an Annual Plan budget of $2.57 million.

Variances to budget

5.31 Please see Note 40 “Explanation of major variances against budget” to the financial statements for major variances.

Financial prudence results

5.32 Council is required to include information on financial performance in relation to various benchmarks in the Annual Report.

5.33 The balanced budget benchmark has not been achieved. The Council meets this benchmark if its revenue equals or is greater than its operating expenses and Council planned to not meet this benchmark in 2020/21. This is due to having a 0% rates increase and the debt funded $5 million contribution paid to Tasman District Council for the Waimea Dam, which has been designated as an operating expense rather than capital expenditure for Council.

5.34 A summary of this information in the Annual Report is included in the following table:

Material differences from the draft Annual Report presented to the Audit and Risk Subcommittee

5.35 The draft Annual Report went to the Audit and Risk Subcommittee on 14 September. Since that time, the audit has been completed.

5.36 There have been no material changes to the draft Annual Report presented. There have been some minor changes to the results in the statement of comprehensive revenue and expense for the valuation and in the balance sheet (and associated notes).

Options

5.37 Option 1 is the recommended option.

Option 1: Adopt the Annual Report 2020/21 and accept the supporting recommendations
Advantages	· Meets statutory timeframes. · Allows timely production and distribution of the Annual Report.
Risks and Disadvantages	· There will be no further opportunity for Council to review any minor amendments prior to publishing.
Option 2: Not accept the recommendations
Advantages	· None.
Risks and Disadvantages	· Adoption of the Annual Report will not meet statutory timeframes. · The Annual Report will not be available to the public in a timely manner. · Not meeting statutory timeframes may be a consideration by Standard and Poor’s for the Council credit rating.

6. Conclusion

6.1 It is recommended that Council adopt the Annual Report for the 2020/21 year.

7. Next Steps

7.1 Following adoption by Council the Annual Report 2020/21 will be made available online, and printed copies provided for reference at Council’s public libraries and the Customer Service Centre. A designed version will be completed and replace these copies in the week after adoption. An article on the Annual Report will be included in an upcoming edition of Our Nelson.

7.2 Council is required to make publicly available a summary of the information contained in the Annual Report within one month of its adoption. An audited Summary Annual Report 2020/21 will be designed and made available online, as well as at Council’s public libraries and the Customer Service Centre.

Author: Nicky McDonald, Group Manager Strategy and Communications

Nikki Harrison, Group Manager Corporate Services

Attachments

Attachment 1: A2791731 - Annual Report 2020/21 (Circulated separately) ⇨

Attachment 2: Axxxxxx - Draft Audit Opinion - Annual Report 2020/21 ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The Annual Report 2020/21 is a requirement of the Local Government Act 2002 and fits the purpose of local government by providing information about Council’s performance during 2020/21 – this contributes to democratic local decision-making.

2. Consistency with Community Outcomes and Council Policy

The decision to adopt the Annual Report aligns with the following community outcome: Our Council provides leadership and fosters partnerships, a regional perspective and community engagement.

3. Risk

The content of the Annual Report is prescribed by statute so there is a very low risk that it will not achieve the required outcome.

The Local Government Act 2002 normally requires Council to adopt the final Annual Report within four months of the end of the financial year (31 October). Under the Annual Reporting and Audit Time Frames Extensions Legislation Bill 2021, the new date for councils to meet reporting timeframes is 31 December 2021. There is low risk that the Annual Report will not be adopted by this date.

4. Financial impact

There is no immediate financial impact from this decision - preparation and publication of the Annual Report can be achieved within existing budgets. If Council does not adopt the Annual Report before the statutory deadline of 31 December 2021, it may be a consideration for Standard and Poor’s in its annual credit rating assessment. The Annual Report itself outlines the financial position of Council at the end of the 2020/21 financial year.

5. Degree of significance and level of engagement

This decision is of low significance and does not require engagement.

6. Climate Impact

The Annual Report (Attachment 1) contains a summary of Council’s climate change actions in 2020/21, promoting awareness of Council’s work in this area.

7. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report.

8. Delegations

The adoption of the Annual Report is a decision of Council.

Item 17: Residents' Survey 2020/21

Council

9 December 2021

REPORT R26030

Residents' Survey 2020/21

1. Purpose of Report

1.1 To present the results of the 2020/21 Residents’ Survey.

2. Recommendation

That the Council

1. Receives the report Residents' Survey 2020/21 (R26030) and its attachment (A2724461); and

2. Notes that the Residents’ Survey 2020/21 will be made available to the public on the Council website; and

3. Notes the three focus areas for improvement in response to the Residents’ Survey results are:

a. Managing expectations by clearly explaining Council priorities and expenditure; and

b. Improving clarity on decision making and how community feedback contributes; and

c. Telling our story positively and consistently.

3. Background

3.1 Nelson City Council has undertaken a survey of residents’ views on Council services regularly since 1997. The survey’s purpose is to provide Council with impartial and representative information on resident satisfaction levels. The results are used to inform service delivery.

3.2 Six questions in the 2020/21 survey relate to performance measures set in the Long Term Plan 2018-28. Results of these performance measures are included in the Annual Report 2020/21.

Council uses a telephone survey format

3.3 In 2020/21, a 10 minute telephone survey of a representative sample of 401 Nelson residents was conducted. The survey has a margin of error of +/- 4.9% at the 95% confidence level. The majority of questions were based on a five point level of satisfaction scale, with some open-ended questions to provide additional context.

3.4 A ‘quota system’ was used to ensure the sample was representative of Nelson’s population by gender, age and area. The survey provider aims to survey a sample that is representative by ethnicity, but it was not achieved in 2020/21. This is because of increased difficulties, and the resulting cost and time required, in reaching representative proportions for all ethnicities using a telephone survey.

3.5 The survey was split across four time periods (‘waves’) to reduce the chance that a single event or issue could skew the results. In 2020/21 a randomised mobile phone database (21% of respondents) was also used to reduce bias in the sample towards those with landlines.

3.6 Survey results were discussed at Council workshops on 7 September and 5 October 2021. Elected members indicated that they would like staff to develop focus areas in response to the main survey results themes.

4. Discussion

There was a fall in residents’ satisfaction with Council’s performance after the highs of the previous year

4.1 Overall satisfaction with Council’s performance fell significantly in 2020/21. 43% of those sampled were “satisfied or highly satisfied” compared to 63% the year before (see diagram 1 for more details). This drop in satisfaction is linked to decreased satisfaction with Council operations across several areas, discussed in more detail below.

Diagram 1: Overall satisfaction with Council, 2012/13 to 2020/21

4.2 Satisfaction levels were higher than usual in 2019/20 across all areas. This was potentially due to high satisfaction with the public sector’s response to COVID-19 – many councils reported increases in levels of satisfaction that year.

4.3 In the latter part of 2019/20 Council’s work programme (and communications) focused on infrastructure projects which would support recovery from the first COVID-19 lockdown. Also, it was signalled that there would be a net zero rates increase for 2020/21. This may have helped boost satisfaction amongst members of the community.

A more controversial decision making context negatively impacted satisfaction levels results in 2020/21

4.4 Council’s work programme in 2020/21 required decisions on highly visible projects that were polarising to our community.

4.5 Perceptions of inappropriate spending and Council not listening to the public when making decisions were key drivers of dissatisfaction. This included concerns that Council was spending on lower priority areas at the expense of more important activities, such as infrastructure. This was at odds with the content of the 2020/21 Annual Plan, where 73% of capital expenditure and 46% of operating expenditure focused on core infrastructure (transport, three waters and solid waste).

4.6 Specific comments were made expressing dissatisfaction with the central library development, Nelson South street trial, cycle lanes, and public art. Commentary on certain topics, such as transport and public art, are recurring in resident feedback where the topic might have overall community benefit but is not supported by all members of the community.

Council performance measures results were mixed

4.7 Long Term Plan 2018-28 performance measures that were met include satisfaction levels for the library (91%), Suter Art Gallery (87%), and parks and recreation (80%). Composting targets have also been met (73%). These levels remain stable and high over time.

4.8 Overall level of satisfaction with transport was down (39%), following a high score in 2019/20 (54%). This may have been in part due to an increase in infrastructure projects in the road corridor in 2020/21 that could have led to shorter term frustration for longer term community benefit. There has been an increase in respondents using active transport and a decrease in the percentage of people travelling by motor vehicle. The percentage of journeys to work using active transport was just under Council’s target of 21%, at 20%.

4.9 Satisfaction with Council interaction/communication has decreased overall. This is could be due in part to a change in question wording, which included rating the quality of information about Council decisions (in addition to activities and events). There was also a drop in satisfaction with opportunities to provide feedback to the Council (47% compared to 54% the year before). These two drops in satisfaction may have been linked to the issues described at paragraphs 4.4 to 4.6.

4.10 There have been decreases in satisfaction across environmental management planning and monitoring, economic development and tourism, community organisations and projects, and the way rates are spent on services and facilities.

Council is responding to the survey results

4.11 The Long Term Plan 2021-31 sets out Council’s priorities and programme of work over the next 10 years. Council regularly reviews its work programmes and seeks continuous improvement in service delivery within a constrained resourcing environment.

4.12 Focus areas have been identified from the survey’s dissatisfaction themes and workshop discussions with the Council. Actions are grouped around three focus areas, but in practice actions may contribute to more than one focus area.

Focus area one: Managing expectations by clearly explaining Council priorities and expenditure

4.13 Considerable effort is put into conveying Council’s priorities and expenditure to our community. However, perceptions that infrastructure investment is underprioritised remain. Ensuring Council is clear on its priorities and investment decisions will help manage expectations and may alleviate some dissatisfaction. Also, being clear on Council’s role, responsibility, or ability to influence in different situations will help manage expectations and avoid confusion with central government and private sector decisions.

4.14 Council will continue to communicate about its work programme, including the extent of infrastructure investment and profiling infrastructure projects. To help explain our priorities to the community, infographics will be developed for each Activity Management Plan and used in a range of communication channels.

4.15 For transport specifically, there are central government and Council strategies and projects in varying stages of development that should address some of the transport dissatisfaction. These include the Parking Strategy, Walking and Cycling Strategy, the Nelson Future Access Project led by Waka Kotahi and improved public transport provision from July 2023 when a new public transport contract is awarded for the combined Nelson Tasman region.

4.16 However, decisions in this space can be polarising and there will continue to be a need to explain changes or reasons for decisions.

Focus area two: Improving clarity on decision making and how community feedback contributes

4.17 It is important we provide clarity to the community on how:

· Council makes decisions

· engagement contributes to the decision making process.

4.18 Staff will develop an explanatory diagram on the Council decision making process. This will cover the range of considerations, including engagement feedback, that Council needs to take into account. The diagram can be promoted in Our Nelson and on the website and used to help set expectations when engaging on specific proposals.

4.19 A dedicated ‘Closing the loop’ section will be introduced in Our Nelson to summarise engagements and their outcome. This will be particularly helpful for smaller scale engagements and conveying back to the community how feedback has been considered and influenced proposals.

Focus area three: Telling our story positively and consistently

4.20 Proactive communications that share success stories and are transparent about controversial matters or mistakes are important. A range of channels are used to communicate; from print, websites, social media to the Antenno mobile app. Actions that will contribute to this focus area include:

· Changing the Our Nelson model to include advertising to fund more community content and increase distribution (currently underway and to be completed in first quarter of calendar year 2022).

· Updating and better integrating Council’s websites with improved functionality and usefulness as a communications tool (project underway with final completion by 2023).

· Promoting opportunities for elected members to ‘tell our story’ by participating in face-to-face engagement on proposals and sharing Council’s social media posts with their online communities.

5. Next Steps

5.1 The results of the Residents’ Survey 2020/21 will be published on Council’s website along with the actions to respond to feedback as outlined in this report. Council actions in response to the results will be progressed within existing budgets as resources allow.

5.2 Progress on the focus areas and actions will be monitored and included in subsequent Residents’ Survey reporting.

Author: Louis Dalzell, Policy Adviser

Attachments

Attachment 1: A2724461 - Nelson City Council Residents' Survey 2020/21 results (Circulated separately) ⇨

Item 21: Nelson Arts Strategy - Establishment of Working Group

Council

9 December 2021

REPORT R26272

Nelson Arts Strategy - Establishment of Working Group

1. Purpose of Report

1.1 To provide an update on the process for development of the Nelson Arts Strategy, including iwi engagement and timelines.

1.2 To approve the establishment of an Arts Strategy Working Group for oversight of the development of the Nelson Arts Strategy.

2. Summary

2.1 Nelson’s first Arts Strategy, The Art of being at the Centre, was adopted in 2009. Officers have been successful in an application to Creative New Zealand for $30,000 to develop a new Strategy in 2021/22.

2.2 Draft terms of reference have been developed for the establishment of a working group to provide guidance and support for the development of the new Nelson Arts Strategy.

3. Recommendation

That the Council

1. Receives the report Nelson Arts Strategy - Establishment of Working Group (R26272) and its attachment (A2752080); and

2. Establishes an Arts Strategy Working Group with the following membership:

1. Deputy Mayor Judene Edgar

2. Chair of Community and Recreation – Councillor Tim Skinner

3. Councillor Pete Rainey; and

3. Approves the Terms of Reference (A2752080) for the Arts Strategy Working Group.

4. Background

4.1 In June 2021, officers applied to the Local Government Arts Fund 2020/21, administered by Creative New Zealand, for funding to help develop a new arts strategy for Nelson. The purpose of the funding is to support the resilience, sustainability and recovery of the arts sector following the significant economic and other impacts of COVID-19. The Fund is designed to assist councils to support projects which enhance the resilience, sustainability, and recovery of local arts organisations affected by COVID-19.

4.2 Council was successful in receiving $30,000 from the Fund which will be used to engage a consultant to develop a draft strategy. Council is currently undertaking a procurement process for this consultant.

5. Discussion

It’s been 12 years since the first strategy was developed

5.1 In 2009, the Nelson City and Tasman District Councils adopted The Art of being at the Centre, the region’s first Arts Strategy. The following year Nelson City Council adopted an Arts Policy which took each of the Strategy’s objectives relevant to Council and set out specific actions to help achieve them. Council’s investment in the arts sector has been guided by The Art of being at the Centre and Council’s Arts Policy.

New strategy to support a sustainable future

5.2 The new Nelson Arts Strategy will take the place of both the existing Strategy and Council’s Arts Policy. It will have a vision for the arts in Nelson and goals, as well as a component of practical implementation. It will be a whole-of-community collaboration to support the arts and not focused solely on Council resources.

5.3 The new Nelson Arts Strategy will help to support a sustainable future for the arts sector in Nelson which is a key driver of economic, social and cultural wellbeing for the Nelson community. COVID-19 has dealt a considerable economic blow to our arts sector. There is an urgent need to rethink how the sector can be sustainable in this new, uncertain environment.

5.4 The Strategy will need to take account of, and consider, existing regional strategies such as Project Kōkiri, the Arts Tourism Strategy and the Te Tauihu Intergenerational Strategy, as well as Council’s Taonga Tuku Iho Strategy.

5.5 The new Strategy will be a Nelson strategy but there is the opportunity for findings and options to add value regionally through Project Kōkiri and the Te Tauihu Intergenerational Strategy.

Arts Strategy Working Group proposed

5.6 Officers propose that a Working Group of elected members be established. This Working Group will provide guidance and direction to officers and the external consultant in the development of a new Strategy.

5.7 The elected members on the working group will champion the process with the community, ensure a good level of awareness of Strategy development at a governance level within Council and ensure the Strategy development is in alignment with Council priorities.

5.8 Terms of Reference have been drafted (Attachment 1, A2752080). It is recommended that the chair of the Community and Recreation Committee be included on the Working Group given that a great many arts services and facilities are within the mandate of this Committee. The recommendation is also for the Deputy Mayor and Councillor Rainey to be appointed to the Working Group as the community would recognise them as well connected to the arts sector.

Timing

5.9 The Strategy is required to be completed by 30 June 2022 (although not necessarily adopted) to meet Creative New Zealand’s timelines. Council has asked about a possible extension to the deadline, and Creative New Zealand has advised Council that the completion of the strategy by 30 June 2022 and reporting within 12 weeks of completion are requirements of the funding.

Consultant role

5.10 A consultant is currently being procured to collect the relevant information, consult with partners and stakeholders, provide information on best practice, and draft the Strategy. The consultant will be required to ensure that the process and strategy will be inclusive, involve iwi and Māori in the design, build on knowledge and expertise of the Nelson Arts sector, and encourage a partnership approach across the arts community.

Iwi involvement to reflect a partnership approach

5.11 The engagement process will be finalised with input from the successful consultant.

5.12 Iwi engagement is important in the development of the new Strategy and was supported by Te Ohu Wakahaere at the 28 September 2021 meeting with a proviso that Te Ohu Toi Ahurea (Arts and Heritage Cultural Managers) are involved.

5.13 In line with a partnership approach, iwi will have input into:

5.13.1 the scope and structure of the strategy

5.13.2 the development of content of the strategy

5.13.3 review of the strategy prior to community engagement

5.13.4 ensuring Māori views are invited as part of community engagement

5.13.5 review of any proposed changes to the draft following consultation.

6. Options

Option 1: Establish a Working Group (Recommended option)
Advantages	· Allows governance input throughout the development of the Strategy · Provides agility to respond quickly to issues as they arise
Risks and Disadvantages	· None obvious
Option 3: Do not establish a Working Group
Advantages	· None obvious
Risks and Disadvantages	· Less frequent elected member engagement with the consultant · Lack of regular governance input

7. Conclusion

7.1 The current Arts Strategy is 12 years old and officers have developed a process for updating the Strategy.

7.2 It is recommended that an Arts Strategy Working Group is to be established to provide guidance and work with the consultant to develop the new Strategy.

8. Next Steps

8.1 A Council workshop will provide input to the consultant.

Author: Gareth Power Gordon, Policy Adviser

Attachments

Attachment 1: A2752080 - Arts Strategy Working Group - Terms of Reference ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The intent of a new Arts Strategy is to support and promote the social, economic and cultural wellbeing of the community through the arts.

2. Consistency with Community Outcomes and Council Policy

The recommendation supports the following Community Outcomes:

· Our communities have opportunities to celebrate and explore their heritage, identity and creativity

· Our communities have access to a range of social, educational and recreational facilities and activities

· Our region is supported by an innovative and sustainable economy.

3. Risk

Establishing a Working Group reduces the risk of the Strategy not delivering the outcomes expected.

4. Financial impact

The financial impact of establishing a Working Group will be minor and will primarily result in additional staff time for administration.

5. Degree of significance and level of engagement

This matter is of low significance because the Working Group is being established to provide guidance and support. Engagement with the community and consultation will occur at the appropriate stages in the development of the Strategy.

6. Climate impact

Climate impact was not considered in the development of this report.

7. Inclusion of Māori in the decision-making process

Iwi engagement in the development of the new Strategy was discussed at Te Ohu Whakahaere on 28 September 2021.

8. Delegations

The recommendations in this report includes Council’s economic development and COVID-19 response areas of responsibility which was a significant factor in receiving Creative New Zealand funding and the Community and Recreation Committee’s arts, culture and heritage areas of responsibility. As this is cross committee it is a decision for Council.

Item 22: Events Strategy implementation update - Financial Year 2021-21

Council

9 December 2021

REPORT R26330

Events Strategy implementation update - Financial Year 2021-21

1. Purpose of Report

1.1 To provide an update on the implementation of the Nelson City Events Strategy for the period 1 July 2020 to 30 June 2021. To approve annual reporting on the implementation of the Strategy.

2. Summary

2.1 The impacts of COVID-19 have been acutely felt in the event sector in 2020/21. The challenging environment made it difficult to fully meet the Strategy’s objectives. It also highlighted the importance of events for supporting activity, business and vibrancy in Nelson.

2.2 Council, the Nelson Regional Development Agency (NRDA) and the events sector have had to adjust. Support has focused on events that can adapt to fit alert level requirements and that particularly stimulate the Nelson economy. The contestable funds continue to provide good economic and social returns to the community.

3. Recommendation

That the Council

1. Receives the report Events Strategy implementation update - Financial Year 2021-21 (R26330) and its attachments (A2776994 and A2768099); and

2. Approves an amendment to the Nelson City Events Strategy to require annual reporting by the Events Development Committee on implementation of the Strategy.

4. Background

4.1 The Nelson City Events Strategy adopted in May 2018 provides a vision and objectives to help develop the city’s events. Twice yearly reporting to Council by the Events Development Committee on implementation of the Strategy is required but has not been able to be achieved due to resourcing constraints and COVID-19.

4.2 COVID-19 has impacted delivery of events, and whilst this report focuses on the Strategy’s implementation in 2020/21, some commentary relating to the COVID-19 Delta outbreak in 2021/22 is also included.

4.3 The report has been prepared with input from NRDA staff.

Council’s involvement with events is wide ranging

4.4 Nelson events cover a range of themes including sport, music, culture, arts and heritage. They are delivered through a range of mechanisms that can have different levels of Council funding, involvement and management as illustrated in diagram 1.

Diagram 1: Event categories and Council involvement

4.5 This suite of event activities is now enhanced at a Te Tauihu regional level by the Ministry of Business, Innovation, and Employment’s (MBIE) Regional Events Fund.

4.6 The NRDA oversees the contestable Events Fund, which has two streams – economic and community, and the Nelson City Council Venue Hire Fund. Decisions regarding fund allocation are made by the Events Development Committee which comprises Council and NRDA staff. Guidelines for assessment are set out in the Strategy. Information about the Events Fund is advertised on the NRDA and Council websites.

4.7 On 3 June 2020, as part of the 2020/21 Annual Plan decisions, Council approved extra flexibility for the Events Fund in consideration of opportunities that will support economic recovery in the region.

5. Discussion

2020/21 was a challenging year for events in Nelson

5.1 The COVID-19 pandemic impacted Nelson’s events sector in 2020/21. Many events were cancelled or re-sized because of the pandemic, alert level restrictions and travel disruption. For instance, travel restrictions hampered international acts and performers coming to Nelson. It was also more difficult to stimulate interregional travel using events as the catalyst. Attachment one (A2776994) provides a list of key events that were cancelled or resized.

5.2 Notwithstanding the difficulties, a range of events were successfully held in 2020/21. A full list of Council funded events that took place is provided in Attachment two (A2768099). The attachment provides a breakdown of funding levels and attendance estimates.

Council and the NRDA have supported the sector to adapt

5.3 Cancellations, uncertainty and disruptions have caused considerable financial pressure and stress for many members of the event sector in Nelson.

5.4 Council and the NRDA worked closely with the sector over this period. The regular Centre City Events Hui, facilitated by the Events team, provided the events sector with a forum to discuss its challenges and provide support for members. A wider regional Events Hui was held in June 2021. This hui brought Council, the NRDA and the sector together for discussions on new ideas and future decisions. The NRDA organised free workshops in May 2021 to help new and existing organisers grow and sustain their events.

5.5 In response to alert level requirements, Council and the NRDA focused on supporting events that ran across multiple days or that could shift dates if necessary. The sector, Council and the NRDA put considerable effort into planning and remarketing events because of changes or postponements. Ngā Toi Huatau The Seasonal Arts initiative was a successful example of Council supporting the arts and events community to create something new out of the disruption.

5.6 The Events Development Committee applied Council’s increased flexibility for the Events Fund to support economic recovery in the region. There was less emphasis on event seasonality and more support for city centre events or use of city venues. Events which benefited from the economic recovery focus in 2020/21 included Nibbles and Notes, Nelson Streetfest, Night Flicks outdoor movie, Nelson Santa Parade, and Changing Threads.

Work is continuing in 2021/22 to support the event sector

5.7 The COVID-19 Delta outbreak in August 2021 caused further challenges for the event sector in Nelson.

5.8 Council’s Events team and the NRDA have been working with the sector to design events that can be held within the existing alert level system and the forthcoming COVID-19 Protection Framework (‘traffic light system’). This work is helping to increase the adaptability of events, minimise cancellations and create a 2021/22 events programme that fits within public health requirements.

5.9 Support has included designing hybrid or virtual events. However, this is less effective for events that rely on ‘real life’ experiences or interactions to be successful.

5.10 The Council Events team is also developing values against which to measure the outcomes of Council-run events in order to ensure Council events continue to be of high quality and relevant to the community. The values will be presented to the Community and Recreation Committee for consideration in early 2022.

2020/21 expenditure was down on prior years because of the challenges

5.11 Due to uncertainty around COVID-19, there were specific event budget decreases in the Annual Plan 2020/21. However, with New Zealand’s return to alert level 1 in June 2020, considerable budget was retained to support events.

5.12 The Events Fund (Economic) budget was higher in 2020/21 than the previous year because as well as the contestable fund it included $35,000 for the Black Ferns match and $50,000 for the Enduro World Series. From January 2021 the Events Fund was back in funds after the overdraft approved by Council for years 2017/18 to 2019/20.

5.13 Funding for events cancelled in 2020/21 was reimbursed, minus expenditure for planning in some situations. Also, as usual, any annual surplus in the Events Fund was rolled over to the next year. Combined with fewer or scaled down events this financial situation resulted in expenditure being less than recent years and within budget.

5.14 The total 2020/21 Council funded event expenditure was approximately $843,000. Attachment two and Table one below provides more details. In summary, expenditure related to:

· Council/Civic Events - $137,837

· Partnership Events - $407,643

· Events Fund - $287,250

· Venue Hire Fund - $10,398.

5.15 The expenditure in Table one is different from the allocation and from the expenditure summarised in Attachment two. This is due to the multi-year funding of some events, partially funding events in one year where it occurs early in the following year and when an event series spans two financial years.

Table 1: Breakdown of the 2020/21 Events Fund and Venue Hire Fund

Fund	Budget	Allocation*	Expenditure
Events Fund (Economic)	$445,297	$218,500 (16 events)	$211,250
Events Fund (Community)	$76,000	$91,500 (12 events)	$76,000
Total Events Fund	$521,297	$310,000 (28 events)	$287,250
Venue Hire Fund	$30,000	$10,398 (8 events)	$10,398

*Note: Yearly allocation for events may be higher than annual budgets because expenditure for an allocated event may be over more than one financial year.

Other regional funding is available to assist the sector to recover

5.16 The Te Tauihu region has been allocated $1.5 million over four and half years from the MBIE Regional Events Fund. The funding supports recovery from the impacts of the COVID-19 pandemic by stimulating the economy via events. Council is represented on the Regional Events Fund Panel that determines event investment. The NRDA organised workshops highlighted at paragraph 5.4 were funded from this package.

5.17 The MBIE Events Transition Support Payment scheme can support large-scale 2021/22 summer events by covering 90% of unrecoverable costs if forced to cancel or postpone. However, it is likely the Netsky et al concert would be the only Nelson event that meets the scheme’s criteria.

The disrupted environment made it more difficult to achieve all the Strategy’s objectives in 2020/21

5.18 To monitor how successfully the Strategy is being implemented the five objectives of the Strategy are evaluated. The objectives are:

· A rich events calendar which maximises opportunities throughout the year

· Measurable economic outcomes for Nelson city

· Promotion of wellbeing and cohesion of the local community

· An events programme that attracts visitors to Nelson and gives the local community a sense of pride in being “Nelsonian”

· A healthy partnership between the events sector, the community and Nelson City Council

5.19 The objectives are interconnected, and most Council funded events contribute towards several of them. Progress on each objective is highlighted in the following paragraphs 5.20 to 5.25. Overall, the impacts from COVID-19 meant it was harder to deliver against all the objectives in 2020/21.

5.20 A rich events calendar looks to ensure that Nelson has a good range and balance of events throughout the year. Events have been traditionally concentrated in the summer months in Nelson. Work has progressed to provide a better balance with introduction of events in the ‘off season’ months such as Changing Threads, Nelson Jewellery Week, and EMERGE concerts. Adding sporting events outside the summer months helped, for example hosting the Black Ferns vs the New Zealand Barbarians match combined with the Tasman Mako semi-final when little rugby was being played around the world. However, event cancellations and disruptions undermined achieving this objective.

5.21 Economic value is primarily achieved through economic events funded from the Events Fund and also, through major events that draw large numbers of visitors to the city. The objective was achieved with a return on investment of 33:1, which was well ahead of the target (10:1 in 2020/21 and now 20:1). Estimated economic impact is measured using a model developed and applied by the NRDA to support consideration of all event funding applications. The largest contributors included events such as NZ Beach Volleyball Tour, Adam Summer Celebration and Marchfest.

5.22 Community wellbeing looks to build feelings of belonging and cohesion. This objective is achieved through a diverse events portfolio that appeals to people across the Nelson community, funding community events and running free/subsidised Council events.

5.23 There was reasonable progress in achieving this objective in a challenging year. Key events that contributed to the objective were the Multicultural Festival, two Fringe Festivals (first one a postponed virtual event), a successful Christmas programme and the addition of the Umbrella Market for children. The new Nibble and Notes event, while funded as an economic event through the more flexible application of the Events Fund, also contributed to community wellbeing. Across Council events, at least 80% of attendees surveyed had a high level of satisfaction with the event.

5.24 Sense of identity looks to build pride and encourage visitors to Nelson. This objective is assisted by ensuring the events portfolio draws upon all aspects of the regional identify framework and attracts visitors to the region. There was less progress achieving this objective. Events that relied heavily on overseas attendee or organiser involvement were cancelled or postponed. Efforts were made to encourage domestic tourism using events; the Nelson Jewellery Week was a good example.

5.25 Partnership between the community, events sector and Council is especially important in the uncertain and changeable environment. Good progress in achieving this objective was made in 2020/21. Stronger relationships were developed as Council and the NRDA supported the sector as outlined at paragraphs 5.4 to 5.5.

Changing the frequency of the Strategy update is appropriate

5.26 The Strategy states that implementation updates should take place twice a year. Due to COVID-19 disruptions and resourcing constraints there was one update for 2019/20 and there is one for 2020/21 (this report). Council also receives event updates as part of the NRDA’s six monthly reports.

5.27 Staff recommend that reporting is changed permanently to an annual update. Changing the frequency to annual updates will:

· focus on full financial year periods

· ensure a sufficient time period for a more strategic, holistic overview of the implementation of the Strategy

· enable a clearer picture of events sector than possible in six-month period (particularly when environment is very changeable)

· increase efficiency by reducing the administration and reporting resource required

· maintain the Council’s ability to provide effective monitoring of implementation of the Strategy.

5.28 A risk of decreasing the required frequency of implementation reporting is that it could delay reporting to the Council on emerging issues that impact the Strategy’s implementation. This risk will be managed by Council staff ensuring key issues or decisions are brought to the Council between reporting cycles if necessary.

6. Options

6.1 Option 1 to change to yearly updates is preferred.

Option 1: Change to yearly updates
Advantages	· Align with financial years and NRDA reporting. · Provide clearer and more strategic overview of sector and implementation of the Strategy. · Increase efficiency.
Risks and Disadvantages	· It could delay reporting on emerging issues.
Option 2: Continue with twice yearly updates
Advantages	· More frequent monitoring of the Strategy’s implementation.
Risks and Disadvantages	· More resource hungry.

7. Conclusion

7.1 The portfolio of events in Nelson has served the community well. The impacts of COVID-19 have been considerable, and the sector continues to deal with disruption and uncertainty.

7.2 In 2020/21 achieving the Strategy’s objectives has been more difficult.

7.3 The events sector is adapting to the challenges. Council and the NRDA are supporting the sector and proactively resetting the way events are designed so that events meet the requirements of alert levels and the new COVID-19 Protection Framework.

7.4 The contestable funds are working well and returning high value to the community both economically and socially for the level of investment into individual events.

8. Next Steps

8.1 Subject to approval by the Council, the next Events Strategy implementation update on financial year 2021-22 will be reported by December 2022.

8.2 Council’s Events team will present its work on values to the Community and Recreation Committee in 2022.

Author: Louis Dalzell, Policy Adviser

Attachments

Attachment 1: A2776994 - List of cancelled and resized events 2020/21 ⇩

Attachment 2: A2768099 - Summary of Council funded events 2020/21 ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

Monitoring of the implementation of the Strategy enables governance oversight and supports the economic, social and cultural wellbeing of the community.

2. Consistency with Community Outcomes and Council Policy

Amending the frequency of updates is consistent with the following Community Outcomes:

· Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement.

· Our communities have opportunities to celebrate and explore their heritage, identity and creativity.

3. Risk

Changing the frequency of implementation updates is likely to achieve the goal of increased alignment and efficiency. There is a risk that decreasing the frequency of implementation reporting could delay reporting on emerging issues that impact the Strategy’s implementation. This will be managed by staff escalating issues that arise outside of reporting cycles.

4. Financial impact

Continued implementation reporting will be met within Council and NRDA staff budgets.

5. Degree of significance and level of engagement

This matter is of low significance because it relates to staff reporting frequency. Therefore, no feedback has been sought from the community.

6. Climate Impact

Changing the frequency of implementation reporting will not impact on climate change.

7. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report.

8. Delegations

Council retains all responsibilities, powers, functions and duties in relation to governance matters for the following items:

• Events Strategy and Events Fund.

[1] Note, the maintenance and operations may fall to different Council teams

[2] Note, the Committee structure may change over the life of this plan

Option 1: Retrospectively approve submission (recommended option)
Advantages	· Council’s views will be considered by the Government as it finalises the draft Plan
Risks and Disadvantages	· The submission may not fully reflect the views of all the elected members.
Option 2: Do not approve the Council submission
Advantages	· None obvious
Risks and Disadvantages	· The opportunity to endorse the LGNZ and Taituarā submissions and add additional comment from Nelson City Council is lost.