Agenda of Council - Thursday, 8 June 2023

Nelson City Council

8 June 2023

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 Nelson Environment Centre

Anton Drazevic (CEO), from Nelson Environment Centre, will introduce the work of the Nelson Environment Centre.

4.2 Citizens Advice Bureau

Phil Smith (CAB Nelson Tasman Board Chair and National Board member), from Citizens Advice Bureau, will introduce Citizens Advice Bureau.

5. Confirmation of Minutes

5.1 4 May 2023 16 - 27

Document number M20121

Recommendation

That the Council

1. Confirms the minutes of the meeting of the Council, held on 4 May 2023, as a true and correct record.

5.2 25 May 2023 28 - 35

Document number M20163

Recommendation

That the Council

1. Confirms the minutes of the meeting of the Council, held on 25 May 2023, as a true and correct record.

6. Recommendations from Committees

6.1 Audit, Risk and Finance Committee - 1 June 2023

6.1.1 Review of Council's Section 17A service delivery reviews process

Recommendation to Council

That the Council

1. Approves the below changes to Council’s Section 17A review process:

a. Increase the value threshold that triggers a service delivery review under Section 17A of the Local Government Act 2002 from $100,000 to $1 million per annum; and

b. The Chief Executive provides a report to Council at the start of the Triennium listing all Section 17A Reviews to be undertaken over the three years, at which time Council may indicate any reviews that should be reported back to Council; and

c. Delegate the Chief Executive responsibility to sign off reviews unless they meet a threshold of either:

i. proposing considerable change to the service’s delivery and/or

ii. is assessed as being of medium or high significance against Council’s Significance and Engagement Policy; and

d. An annual report be presented to Council on progress and outcomes of Council’s Section 17A reviews.

6.1.2 Internal Audit Plan 2023-2024

Recommendation to Council

That the Council

1. Approves the Draft Annual Internal Audit Plan for the year to 30 June 2024 (1194974384-3368).

7. Infrastructure Holdings Limited 36 - 72

Document number R27725

Recommendation

That the Council

1. Receives the report Infrastructure Holdings Limited (R2772525) and its attachments (1511110536-695 and 1982984479-6044).

Recommendation from the Joint Shareholders Committee 22 May 2023.

The Council notes as follows:

Purpose

A the purpose is to seek Council’s approval for:

a) the necessary amendments to update the form (previously approved by each of Nelson City Council (NCC) and Tasman District Council (TDC)) of each of:

i. the Infrastructure Holdings Limited (IHL) Shareholders’ Agreement to be in the form attached (1511110536-695) (Shareholders’ Agreement);

ii. the Agreement for Sale and Purchase of Shares in Port Nelson Limited (PNL) and Nelson Airport Limited (NAL) in the form attached (1511110536-698) (Agreement for Sale and Purchase of Shares) under which the shares of PNL and NAL are to be transferred from NCC and TDC to IHL;

iii. Unanimous Shareholder Resolutions and Entitled Persons’ Agreement in relation to the “Restructuring Transactions” (as defined in the Council’s previous resolutions [CL/2022/226] (1982984479-6044) (1511110536-699); and

b) an updated resolution for the purposes of section 50 of the Companies Act 1993 (Act) (1511110536-701)

Share values

B. when the Joint Shareholders Committee previously approved and recommended to each of NCC and TDC (in RJSC22-6-1) the form of a Shareholders’ Agreement for IHL and an Agreement for Sale and Purchase of Shares in PNL and NAL, the values for the shares in each of PNL and NAL were recorded at book value (being, at that time, $8,446,000 in total); and

C. upon the incorporation of IHL on 17 January 2023, NCC and TDC each subscribed for 42,230 ordinary shares in IHL (being 84,460 ordinary shares in total) (Initial Shares), at an issue price of $100.00 per share (Initial Share Issue). The total subscription amount for the Initial Shares was therefore $8,446,000 (Initial Subscription Amount). This was equal to the aggregate book value of PNL and NAL, as determined at the time that RJSC22-6-1 was approved. The consideration for the Initial Shares (being the Initial Subscription Amount) remains unpaid and will be paid to IHL in accordance with the Shareholders’ Agreement (that is to be approved in these resolutions); and

D. Deloitte has now advised that the share values for each of PNL and NAL need to be recorded at market value (being the value of net assets as at 31 March 2023) for the purposes of the transfer of those shares from NCC and TDC to IHL on 1 July 2023. Deloitte has valued the net assets of:

i. NAL at $103,700,000; and

ii. PNL at $275,700,000,

resulting in a total net asset value of $379,400,000 for PNL and NAL combined (New Valuation); and

E. in order for IHL to be capitalised in an amount equal to the purchase price for the shares in PNL and NAL (being $379,400,000), it will be necessary for NCC and TDC to each subscribe for a further 1,854,770 ordinary shares in IHL (being a further 3,709,540 ordinary shares in total) (Second Shares) at an issue price of $100.00 per share (Second Share Issue). The total consideration for the Second Share Issue will be $370,954,000 and will also be paid in accordance with the Shareholders’ Agreement; and

F. the Shareholders’ Agreement and the Agreement for Sale and Purchase of Shares have been updated from the form provided at 22 September 2022, to reflect the New Valuation and the Second Share Issue; and

G. Entitled persons’ approvals will be required under the Act prior to IHL’s entry into the Shareholders’ Agreement and Agreement for Sale and Purchase of Shares, on the basis that (among other reasons already notified to this Council) the Second Share Issue will be undertaken in accordance with:

i. section 107(2) of the Act so that the Second Shares may be issued otherwise than in accordance with sections 42, 44 or 45 of the Act; and

ii. clause 3.4 of IHL’s constitution;

H. The Council resolution at 22 September 2022, noted at items G., H., I., and S. that:

G. As part of the proposal to incorporate IHL, it is proposed that each of the Shareholders transfer all their shares in PNL and NAL to IHL (Share Sale) for $8,446,000 in total (Purchase Price). The Purchase Price will be owed to the Shareholders in equal portions (being $4,223,000 each). The Crown holds, and will continue to hold, one special “Kiwi Share” in NAL.

H. The Purchase Price allocation is:

a) $2,400,000 for the shares in NAL; and

b) $6,046,000 for the shares in PNL.

I. Nelson City Council and Tasman District Council will each subscribe for 42,230 ordinary shares in IHL (being 84,460 ordinary shares in total) (Initial Shares), at an issue price of $100.00 per share (Initial Share Issue). The total subscription amount for the Initial Shares is therefore $8,446,000 (Initial Subscription Amount), which is equal to the Purchase Price.

S. The Restructuring Proposals and the Financing Proposals will require the approval of the Shareholders as:

a) the proposals are, or may be, “major transactions” (as defined in section 129 of the Companies Act 1993 (Act));

b) the Initial Share Issue and the New Share Issue require the agreement of IHL’s entitled persons (as that term is defined in the Act) for the purposes of section 107(2) of the Act. The only entitled persons of IHL will be the Shareholders; and

c) Nelson City Council and Tasman District Council (as the shareholders of IHL) must consent, for the purposes of section 50 of the Act and for all other purposes, to becoming the holder of the Initial Shares and the New Shares.

That the Council:

1. Amends clauses G., H., I., and S. of Resolution CL/2022/226 of the Council meeting on 22 September 2022, to reflect the New Valuation, the Second Share Issue and the updated form of Unanimous Shareholder Resolutions and Entitled Persons’ Agreement, as follows:

G. As part of the proposal to incorporate IHL, it is proposed that each of the Shareholders transfer all their shares in PNL and NAL to IHL (Share Sale) for $379,400,000 in total (Purchase Price). The Purchase Price will be owed to the Shareholders in equal portions (being $189,700,000 each). The Crown holds, and will continue to hold, one special “Kiwi Share” in NAL.

H. The Purchase Price allocation is:

a) $103,700,000 for the shares in NAL; and

b) $275,700,000 for the shares in PNL.

I. Upon incorporation of IHL, Nelson City Council and Tasman District Council each subscribed for (and IHL issued) 42,230 ordinary shares in IHL (being 84,460 ordinary shares in total) (Initial Shares), at an issue price of $100.00 per share (Initial Share Issue). The total subscription amount for the Initial Shares is therefore $8,446,000 (Initial Subscription Amount) which will be paid for in accordance with IHL’s Shareholders’ Agreement. Since IHL’s incorporation on 17 January 2023, Deloitte has valued the shares in PNL and NAL at a total combined value of $379,400,000. Accordingly, in order to capitalise IHL in an amount equal to the Purchase Price, Nelson City Council and Tasman District Council will each subscribe for a further 1,854,770 ordinary shares in IHL (being a further 3,709,540 ordinary shares in total) (Second Shares) at an issue price of $100.00 per share (Second Share Issue). The consideration for the Second Share Issue will also be paid in accordance with the Shareholders’ Agreement.

S. The Restructuring Proposals and the Financing Proposals will require the approval of the Shareholders as:

a) the proposals are, or may be, “major transactions” (as defined in section 129 of the Companies Act 1993);

b) the Initial Share Issue requires the agreement of Nelson City Council and Tasman District Council as IHL’s shareholders and only entitled persons (as that term is defined in the Companies Act 1993) for all purposes (including to meet any requirement under the Companies Act 1993).

c) the Second Share Issue and the New Share Issue require the agreement of IHL’s entitled persons (as that term is defined in the Companies Act 1993) for the purposes of section 107(2) of the Companies Act 1993, and for the purposes of clause 3.4 of IHL’s constitution.

d) Nelson City Council and Tasman District Council (as the shareholders of IHL) must consent, for the purposes of section 50 of the Companies Act 1993 and for all other purposes, to becoming the holder of the Initial Shares, Second Shares and the New Shares; and

2. Consents, for the purposes of section 50 of the Companies Act 1993 and for all other purposes, to being the joint owner in equal shares of the Initial Shares, Second Shares and the New Shares; and

3. Approves the Shareholders’ Agreement, Agreement for Sale and Purchase of Shares, and Unanimous Shareholder Resolutions and Entitled Persons’ Agreement that will apply in place of the form of these documents previously approved by Council.

8. Mayor's Report 73 - 76

Document number R27734

Recommendation

That the Council

1. Receives the report Mayor's Report (R27734); and

2. Agrees that His Worship the Mayor, on behalf of Council, write to the Minister of Health and Te Whatu Ora officials seeking an urgent briefing to the full Council by Ministers and/or officials on the Nelson Hospital redevelopment project; and

3. Acknowledges the people involved with managing the May 2023 weather event; and

4. Acknowledges the engineering team for the emergency river works in the Whangamoa River following the August 2022 weather event that prevented further damage and isolation for the Kokorua community in the May 2023 heavy rainfall event.

9. Youth Council Update

The Youth Council will provide a brief update prior to a morning tea where members can meet the Youth Councillors.

10. National Policy Statement - Urban Development Annual monitoring report 2021/2022 77 - 98

Document number R27674

Recommendation

That the Council

1. Receives the report National Policy Statement - Urban Development Annual monitoring report 2021/2022 (R27674) and its attachment (336940202-6957); and

2. Approves publishing the report National Policy Statement on Urban Development, Nelson-Tasman Joint Monitoring Report, June 2022 (336940202-6957) on the Council’s website.

11. City for All Ages Update 99 - 104

Document number R27711

Recommendation

That the Council

1. Receives the report City for All Ages Update (R27711).

Confidential Business

12. 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 Hana Wilkinson, from Te Whatu Ora remain after the public has been excluded, for Item 12 of the Confidential agenda (City Club and Tasman Rugby Union - Approval for Ground Lease at Trafalgar Park Lane and Agreement to Lease Variation at Kinzett Terrace), as she has knowledge relating to this item 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 - 4 May 2023	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) · 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 · Section 48(1)(d) That the exclusion of the public from the whole or the relevant part of the proceedings of the meeting is necessary to enable the local authority to deliberate in private on its decision or recommendation in any proceedings to which this paragraph applies. Section 48(2) Paragraph (d) of subsection (1) applies to - (a) Any proceedings before a local authority where - (i) A right of appeal lies to any Court or tribunal against the final decision of the local authority in those proceedings; or (ii) The local authority is required, by any enactment, to make a recommendation in respect of the matter that is the subject of those proceedings; and c) Any proceedings of a local authority in relation to any application or objection under the Marine Farming Act 1971.
2	Council Meeting - Confidential Minutes - 25 May 2023	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:
3	Mayor's Report - Taskforce Remuneration	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
4	City Club and Tasman Rugby Union - Approval for Ground Lease at Trafalgar Park Lane and Agreement to Lease Variation at Kinzett Terrace	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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
5	Stoke Rugby Football Club - Approval for Lease Term Variations	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	Establishing a new contestable Climate Change Mitigation Fund	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
7	Appointment of Chair to the Board of the Nelson Marina Management Council Controlled Organisation	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
8	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

Karakia Whakamutanga

Nelson City Council Minutes - 4 May 2023

Minutes of a meeting of the

Nelson City Council

Te Kaunihera o Whakatū

Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson on Thursday 4 May 2023, commencing at 9.01a.m.

Present: His Worship the Mayor N Smith (Chairperson), Councillors M Anderson, M Benge, T Brand, M Courtney, J Hodgson, R O'Neill-Stevens (Deputy Mayor), K Paki Paki, P Rainey, C Rollo, R Sanson, T Skinner and A Stallard

In Attendance: Chief Executive (N Philpott), Group Manager Infrastructure (A Louverdis), Group Manager Environmental Management (M Bishop) Interim Group Manager Environmental Management (D Bush-King), Group Manager Community Services (A White), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald) Team Leader Governance (R Byrne) and Governance Adviser (K Libeau)

Apologies : Nil

Karakia and Mihi Timatanga

1. Apologies

No apologies were received.

2. Confirmation of Order of Business

In order to confirm timing for external presenters Item 10 (Nelmac Six month Report) would be considered at 12.00p.m. followed by Confidential Item 2 (Nelmac Draft Statement of Intent).

3. Interests

There were no updates to the Interests Register and no interests with items on the agenda were declared.

4. Public Forum

4.1. Resilienz - Development and implementation of effective climate strategies in the region

Attendance: Councillor Skinner joined the meeting at 9.08a.m. and Councillor Brand joined at 9.11a.m.

Lindsay Wood, Convenor of Resilienz, spoke to a tabled presentation (1982984479-5911) about development and implementation of effective climate strategies in the region.

Attachments

1 1982984479-5911 Resilienz presentation to Council

5. Confirmation of Minutes

5.1 13 April 2023

Document number M20090, agenda pages 11 - 26 refer.

Resolved CL/2023/074

That the Council

1. Confirms the minutes of the meeting of the Council, held on 13 April 2023, as a true and correct record.

Rollo/Courtney Carried

6. Mayor's Report - left to lie 13 April 2023

Document number R27643, agenda pages 27 - 32 refer.

His Worship the Mayor Hon Dr Smith presented the report that had been left to lie on 13 April 2023. He advised since the last meeting he had had discussions with colleagues and proposed an amended recommendation to indicate there were a range of views on the effectiveness of Local Government New Zealand. He answered questions on how the relations with neighbouring Councils would be affected should Nelson City Council join the metropolitan sector, and membership fees.

The meeting adjourned from 10.15a.m. until 10.22a.m.

The motion was put in parts and a division was called for amended recommendations 1-4 and 7.

Resolved CL/2023/075

That the Council

1. Receives the report Mayor's Report - left to lie 13 April 2023 (R27643) and its attachment (NDOCS-1118544611-7016); and

2. Notes that there is a range of views around the Council table on the effectiveness of Local Government New Zealand; and

3. Notes that His Worship the Mayor, Deputy Mayor and the Chief Executive, while acknowledging the concerns about LGNZ, are satisfied that Nelson City Council, overall, gets value for money from its membership fees, particularly with regard to information sharing such as expensive legal opinions on complex areas of law; and

4. Agrees that Nelson City Council continue its membership of LGNZ but, via its representation by the Mayor, Deputy Mayor and delegates at conferences, advocates for change to achieve a more effective voice for councils and a focus on ensuring good value for money for ratepayers; and

7. Notes the update on the August 2022 severe weather event.

The motion was put and a division was called:

For

Cr Smith (Chairperson)

Cr Anderson

Cr Benge

Cr Brand

Cr Hodgson

Cr O'Neill-Stevens

Cr Paki Paki

Cr Rainey

Cr Sanson

Cr Stallard

Against

Cr Courtney

Cr Rollo

Cr Skinner

Abstained/Interest

The motion was carried 10 - 3.

Resolved CL/2023/076

Courtney/Sanson Carried

That the Council

5. Agrees that the delegation to the 2023 Local Government New Zealand Conference and EXCELLENCE Awards should consist of four councillors, His Worship the Mayor and Deputy Mayor; and

6. Delegates to His Worship the Mayor and the Deputy Mayor to write to Local Government New Zealand requesting a change in sector membership from the Provincial Sector Group to the Metropolitan Sector Group noting that:

a. Nelson’s challenges with housing, transport, climate change and urban development has more in common with the metro sector councils,

b. Nelson City Council would have a greater voice as one of the 12 on the metro group rather than one of 54 on the provincial/rural group and

c. Nelson City Council’s involvement in the regional group ensures we remain engaged on the regional issues relevant to our Council.

His Worship the Mayor/O'Neill-Stevens Carried

7. Mayor's Report

Document number R27655, agenda pages 33 - 35 refer.

His Worship the Mayor Hon Dr Smith took the report as read and noted the amended recommendation to include discussions with Te Tauihu iwi. He clarified the proposal was to initiate discussions only regarding forming a joint Te Tauihu joint water reform committee and report back to Council on the outcome.

The motion was put in parts and a Division was called for amended recommendations 1-4.

Recommendation

That the Council

1. Receives the report Mayor's Report (R27655); and

2. Notes the Government announcement on 13 April 2023 of changes to the Three Waters Reform programme, including the establishment of a Te Tauihu Water Entity under the Water Services Entities Act 2022; and

3. Agrees His Worship the Mayor approach the Mayors of Tasman and Marlborough District Councils proposing the establishment of an interim Te Tauihu Water Reform Joint Committee; and

4. Agrees His Worship the Mayor report back to Council on the outcome of the discussions with the Mayors of Tasman and Marlborough District Councils and with Te Tauihu iwi on the proposed interim Te Tauihu Water Reform Joint Committee by 20 July 2023.

The motion was put and a division was called:

For

Cr Smith (Chairperson)

Cr Anderson

Cr Benge

Cr Hodgson

Cr O'Neill-Stevens

Cr Paki Paki

Cr Rainey

Cr Sanson

Cr Stallard

Against

Cr Brand

Cr Courtney

Cr Rollo

Cr Skinner

Abstained/Interest

The motion was carried 9 - 4.

7. Agrees that His Worship the Mayor and Chief Executive, in consultation with the Tasman and Marlborough District Councils, seek the earliest possible engagement with Te Tauihu iwi on how best to involve them in discussions on the Three Waters reforms.

8. Community Investment Fund Panel Membership Update

Document number R27483, agenda pages 36 - 49 refer.

Adjourned 11.12am until 11.20a.m.

Group Manager Community Services, Andrew White, and Manager Community Partnerships, Mark Preston-Thomas took the report as read, noting they had received feedback which referred to consensus voting and updated the terms of reference with a suggested change should Council decide to include Elected Members on the Panel.

Councillor Skinner, seconded by Councillor Rainey moved Option 1 – no change to the membership of the Panel.

Attendance: Councillor Anderson left the meeting at 11.45a.m.

Resolved CL/2023/077

That the Council

1. Receives the report Community Investment Fund Panel Membership Update (R27483) and its attachments (NDOCS-636034393-10799 and NDOCS-636034393-10790); and

2. Retains the status quo for the Community Investment Fund Panel membership; and

3. Approves the updated Terms of Reference for the Community Investment Fund Panel (NDOCS-636034393-10799).

Skinner/Rainey Carried

9. Submission on Charging our Future Strategy

Document number R27631, agenda pages 50 - 63 refer.

Group Manager Infrastructure, Alec Louverdis, Manager Climate Change, Rachel Pemberton, and Policy Adviser, Jane Borren, took the report as read noting that there was a sufficient level of EV chargers in Nelson City but with the predicted growth drivers, would become heavily reliant on them.

Following discussion it was agreed that the submission be amended to include discussion on supporting ebikes, references to the clean car scheme, and accessibility.

Attendance: Councillor O’Neill-Stevens left the meeting at 12.15p.m.

Resolved CL/2023/078

That the Council

1. Receives the report Submission on Charging our Future Strategy (R27631) and its attachment (839498445-14264); and

2. Approves the draft Nelson City Council submission on the Charging Our Future Strategy to Te Manatū Waka Ministry of Transport (839498445-14264); and

3. Agrees that the Mayor and Chief Executive be delegated authority to include:

· amendments supporting electric bike infrastructure and subsidies,

· toning back comments on the government clean car scheme,

· ensuring such infrastructure maintains accessibility,

as well as approving approve minor editorial amendments to the Council submission on the Charging Our Future Strategy to Te Manatū Waka Ministry of Transport.

His Worship the Mayor/Hodgson Carried

10. Nelmac Limited Six Month Report to 31 December 2022

Document number R27611, agenda pages 64 - 73 refer.

Group Manager Corporate Services, Nikki Harrison, introduced Nelmac Ltd Chairperson, Robb Gunn, and Chief Financial Officer, Linsday Coll.

Attendance: Councillor O’Neill-Stevens joined the meeting at 12.20pm

Mr Gunn and Mr Coll answered questions on distribution of resources, carbon emissions, aspirations of being a national environmental company, employee turnover and retention.

Resolved CL/2023/079

That the Council

1. Receives the report Nelmac Limited Six Month Report to 31 December 2022 (R27611) and its attachment (1511110536-632).

Brand/Skinner Carried

11. Exclusion of the Public

Nelmac Ltd Chairperson, Robb Gunn, and Chief Financial Officer, Lindsay Coll were in attendance for Item 2 and Kerry Anderson from DLA Piper, if required, for Item 4 of the Confidential agenda to answer questions and, accordingly, the following resolutions were required to be passed:

Resolved CL/2023/080

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 Rob Gunn and Lindsay Coll remain after the public has been excluded, for Item 2 of the Confidential agenda Nelmac Limited Draft Statement of Intent 2023/24, as they have knowledge relating to Nelmac Ltd that will assist the meeting.

2. Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Kerry Anderson of DLA Piper remain after the public has been excluded, if required, for Item 4 of the Confidential agenda August 2022 Extreme Weather Event Recovery - Council Owned Land Geotechnical Assessments: Next steps , as she has legal advice that will assist the meeting.

Courtney/Rollo Carried

Resolved CL/2023/081

That the Council

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

Courtney/Rollo 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 - 13 April 2023	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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information · Section 7(2)(f)(ii) To maintain the effective conduct of public affairs through the protection of such members, officers, employees and persons from improper pressure or harassment · Section 7(2)(g) To maintain legal professional privilege · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities
2	Nelmac Limited Draft Statement of Intent 2023/24	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)
3	Appointment of a Nelson Regional Development Agency Director and Chair	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
4	August 2022 Extreme Weather Event Recovery - Council Owned Land Geotechnical Assessments: Next steps	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 · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
5	Private Plan Change - Nelson Junction	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 48(1)(d) That the exclusion of the public from the whole or the relevant part of the proceedings of the meeting is necessary to enable the local authority to deliberate in private on its decision or recommendation in any proceedings to which this paragraph applies. Section 48(2) Paragraph (d) of subsection (1) applies to - (a) Any proceedings before a local authority where - (i) A right of appeal lies to any Court or tribunal against the final decision of the local authority in those proceedings; or (ii) The local authority is required, by any enactment, to make a recommendation in respect of the matter that is the subject of those proceedings; and c) Any proceedings of a local authority in relation to any application or objection under the Marine Farming Act 1971. · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
6	Housing Reserve - Grant Application	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)

The meeting went into confidential session at 12.33p.m. and resumed in public session at 4.33p.m.

Attendance: During the Confidential session Councillor Anderson had returned to the meeting at 2.17p.m.

Karakia Whakamutanga

12. Restatements

It was resolved while the public was excluded:

1	Nelmac Limited Draft Statement of Intent 2023/24
	Agrees that the decision, Report (R27612) and attachments (1511110536-631 and 1511110536-533) remain confidential at this time.

2	Appointment of a Nelson Regional Development Agency Director and Chair
	Agrees the decision will be made publicly available on the Nelson Regional Development Agency’s website (www.nelsontasman.nz) once the appointment has been announced.

3	August 2022 Extreme Weather Event Recovery - Council Owned Land Geotechnical Assessments: Next steps
	Agrees that the decision, the Report (R27510) and its attachments (1590798627-436, 1590798627-437, and 1590798627-435) remain confidential at this time.

4	Private Plan Change - Nelson Junction
	Agrees that the decision, the Report R27617 and its attachment (539570224-14293) remain confidential until the Plan Change 31 has been publicly notified under the Resource Management Act (RMA).

5	Housing Reserve - Grant Application
	Agrees that Report (R27667), Attachment (336940202-6964) and the decision be made publicly available following completion of negotiations.

There being no further business the meeting ended at 4.33p.m.

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

Resolved

Nelson City Council Minutes - 25 May 2023

Minutes of a meeting of the

Nelson City Council

Te Kaunihera o Whakatū

Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson on Thursday 25 May 2023, commencing at 9.03a.m.

Present: His Worship the Mayor N Smith (Chairperson), Councillors M Anderson, M Benge, T Brand, M Courtney, J Hodgson, K Paki Paki, P Rainey, C Rollo, R Sanson, T Skinner and A Stallard

In Attendance: Chief Executive (N Philpott), Group Manager Infrastructure (A Louverdis), Acting Group Manager Environmental Management (D Bush-King), Group Manager Community Services (A White), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald) Team Leader Governance (R Byrne) and Senior Governance Adviser (H Wagener)

Apologies : Councillor R O'Neill-Stevens

Karakia and Mihi Timatanga

1. Apologies

Resolved CL/2023/094

That the Council

1. Receives and accepts the apologies from Councillor R O'Neill-Stevens for absence on Council business.

His Worship the Mayor/Courtney Carried

2. Confirmation of Order of Business

His Worship the Mayor Hon Dr Smith advised that that the order of business would be adjusted to allow Item 6 - Deliberations on the Schedule of Fees and Charges 2023/24 to be considered first.

Attendance: Councillor T Skinner joined the meeting at 9.05 a.m.

3. Interests

There were no updates to the Interests Register, and no interests with items on the agenda were declared.

4. Public Forum

There was no public forum.

5. Confirmation of Minutes - 11 May 2023

Document number R27713, agenda pages 5 - 21 refer.

Resolved CL/2023/095

That the Council

1. Confirms the minutes of the meeting of the Council, held on 11 May 2023, as a true and correct record.

Brand/Hodgson Carried

6. Deliberations on the Schedule of Fees and Charges 2023/24

Document number R27671, agenda pages 65 - 91 refer.

Acting Group Manager Environmental Management, Dennis Bush-King, Group Manager Community Services, Andrew White, and Policy Adviser, Ailish Neyland took the report as read. Officers amended recommendation 2 for clarification.

Resolved CL/2023/096

That the Council

1. Receives the report Deliberations on the Schedule of Fees and Charges 2023/24 (R27671) and its attachments (1598046314-107); and

2. Approves amending the proposed Schedule of Fees and Charges 2023/24 in response to submissions, to increase the Annual Pile Mooring fee by 7.2% instead of 10%.

3. Confirms the approach to adopting the changes to the Schedule of Fees and Charges for 2023/24, as contained in Attachment 1 (1598046314-107).

Rainey/Sanson Carried

7. Deliberations on the Annual Plan 2023/24 submissions

Document number R27506, agenda pages 5 - 64 refer.

His Worship the Mayor requested that any proposal to increase allocated budget should indicate the source of the additional funding or quantify the effect on the proposed rates.

Group Manager Strategy and Communications, Nicky McDonald and Group Manager Corporate Services, Nikki Harrison took the report as read and answered questions. Ms. Harrison advised that since notification of the Annual Plan proposal, staff have found further savings of approximately $247,000 that would allow an increase of 7.2% of grants to the Community Investment Fund and organisations supporting the most vulnerable members of the community and the 3.5% inflation adjustment to grants to other community organisations, facilities, Council Controlled Organisations and Council Organisations.

In response to questions, Acting Manager Environmental Planning, Dennis Bush-King, provided advice on the potential effect of the removal of funding for an urban design panel. His Worship the Mayor requested that it be noted that Council staff would still have the option to request funding from the Council and seek urban design advice in situations where that was desirable.

The meeting adjourned from 10.03a.m. until 10.13a.m.

	Exclusion of the Public
	Resolved CL/2023/097
		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:
	Stallard/Sanson 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		Deliberations on the Annual Plan 2023/24 submissions	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. · Section 7(2)(j) To prevent the disclosure or use of official information for improper gain or improper advantage

The meeting went into confidential session at 10.12a.m and resumed in public session at 10.30 a.m.

Three changes to the officers recommendations were proposed during deliberations.

Recommendation 6:

Following the submission at the hearings by the Nelson Festivals Trust about the requirement to use some of its reserves as part of core funding for the 2023 festival, and the concerns and the lack of clarity about how the current situation arose, it had been recommended that the issue be investigated. An amendment to the recommendation to clarify was proposed.

Councillor Courtney proposed an amended motion, seconded by Councillor Sanson.

Recommendation

That the Council

6. Delegates to the Deputy Mayor, Councillor Courtney and Councillor Brand with the support of Group Manager Community Services, and in consultation with the Nelson Festivals Trust, a review of the circumstances that led to the growth in its reserves for the 2020-2022 period of Covid-19 impacts and whether it is appropriate for a portion of these resources to be offset against Council’s funding for this year’s festival, with the findings of this work to be reported back to Council by 6 July 2023; and

Courtney/Sanson

Recommendation 7:

Following the submission at the hearing by Kotahitanga mō te Taiao Alliance and advice that the alliance had also requested the same level of increase in funding from Marlborough and Tasman District Councils, staff recommended an increase of funding from $20,000 to $40,000, conditional on Tasman and Marlborough District Councils also increasing their support to $40,000.

During the deliberations, concern was expressed that unilateral approval of an increase in funding by Nelson City Council, without commensurate additional funding being made available by the two other local authorities, would create a precedent. However, it was also seen as an opportunity for the Council to set an example, to provide regional leadership and to urge the other councils to match the contribution.

Councillor Sanson proposed an amended motion, seconded by Councillor Stallard.

Recommendation

That the Council

7. Approves amending the proposed Annual Plan 2023/24 in response to submissions, to provide an increase of funding in 2023/24 to Kotahitanga mō te Taiao Alliance from $20,000 to $40,000, and notes His Worship the Mayor will write to Tasman and Marlborough District Councils urging them to resolve likewise, in the interests of improved regional resilience, environmental and biodiversity outcomes; and

Sanson/Stallard

Additional recommendation 12:

His Worship the Mayor Hon Dr Smith proposed a motion, seconded by Councillor Rollo.

In response to submissions to provide support to the Tāhunanui Surf Lifesaving and Sports Facility, an addition to the recommendations was proposed to investigate the potential to co-locate LandSAR at the council facilities. Councillor K Paki Paki requested that it be noted that he was not in favour of the recommendation as it was premature to make a commitment to any organisation.

Recommendation

That the Council

12. Notes that the investigation into opportunities for a surf lifesaving and sports facility/facilities at Tāhunanui Beach Reserve will consider the potential co-location of LandSAR within the development.

His Worship the Mayor/Rollo Carried

The meeting adjourned from 11.12a.m. until 11.22a.m.

Following debate, the recommendations were taken in parts.

Resolved CL/2023/098
	*That the Council* *1. Receives the report Deliberations on the Annual Plan 2023/24 submissions (R27506) and its attachments (839498445-14453 and 332184083-4780).*
Hodgson/Sanson Carried
Resolved CL/2023/099
2. Notes that additional savings of $247,000 have been identified by Council officers in the period since the Consultation Document was released, enabling funding of the recommended decisions 3, 4 and 7 below.
Courtney/Paki Paki Carried
Resolved CL/2023/100
3. Approves amending the proposed Annual Plan 2023/24 in response to submissions, to provide a 7.2% inflation adjustment to the Community Investment Fund and organisations identified as supporting Nelson’s communities of greatest need, at an approximate cost of $44,000.
Anderson/Hodgson Carried
Resolved CL/2023/101
4. Approves amending the proposed Annual Plan 2023/24 in response to submissions, to provide a 3.5% inflation adjustment to grants to other community organisations, facilities and Council Controlled Organisations and Council Organisations, at an approximate cost of $183,000.
Courtney/Sanson Carried
Resolved CL/2023/102
5. Requests Council officers, in consultation with the Chief Executive and the Board of the Nelson Regional Development Agency, to prepare a report taking account of the financial challenges facing that agency due to the government COVID-19 support ending in June 2023 and a disparity of funding between Nelson City Council and Tasman District Council and considering how the agency can be refocussed and financed into the future.
His Worship the Mayor/Sanson Carried
Resolved CL/2023/103
6. Delegates to the Deputy Mayor, Councillor Courtney and Councillor Brand with the support of Group Manager Community Services, and in consultation with the Nelson Festivals Trust, a review of the circumstances that led to the growth in its reserves for the 2020-2022 period of Covid-19 impacts and whether it is appropriate for a portion of these resources to be offset for funding this year’s festival, with the findings of this work to be reported back to Council.
Courtney/Sanson Carried
Resolved CL/2023/104
7. Approves amending the proposed Annual Plan 2023/24 in response to submissions, to provide an increase of funding in 2023/24 to Kotahitanga mō te Taiao Alliance from $20,000 to $40,000, and notes His Worship the Mayor will write to Tasman and Marlborough District Councils urging them to resolve likewise, in the interests of improved regional resilience, environmental and biodiversity outcomes.
Sanson/Stallard Carried
Resolved CL/2023/105
*8. Approves the approach to Annual Plan 2023/24 submission responses included in the spreadsheet in Attachment 1 (839498445-14453).*
Sanson/Hodgson Carried
Resolved CL/2023/106
*9. Approves the changes to the proposed Annual 2023/24 resulting from Council decisions, corrections and timing changes as outlined at sections 5.43 to 5.46 of this report R27506.*
Courtney/Brand Carried
Resolved CL/2023/107
*10. Approves the budget carry forwards as set out in Attachment 2 (332184083-4780).*
Brand/Stallard Carried
Resolved CL/2023/108
*11. Confirms its intent to have an overall average rates increase of 7.2% in 2023/24.*
His Worship the Mayor/Paki Paki Carried
Resolved CL/2023/109
12. Notes that the investigation into opportunities for a surf lifesaving and sports facility/facilities at Tāhunanui Beach Reserve will consider the potential co-location of LandSAR within the development.
His Worship the Mayor/Rollo Carried

Karakia Whakamutanga

There being no further business the meeting ended at 12.22 p.m.

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

Resolved

Item 7: Infrastructure Holdings Limited

Council

8 June 2023

REPORT R27725

Infrastructure Holdings Limited

1. Purpose of Report

1.1 To consider recommendations from the 22 May 2023 Joint Shareholders Committee which includes amendments to the Shareholders Agreement made at the meeting.

2. Recommendation

That the Council

1. Receives the report Infrastructure Holdings Limited (R2772525) and its attachments (1511110536-695 and 1982984479-6044).

Recommendation from the Joint Shareholders Committee 22 May 2023.

The Council notes as follows:

Purpose

A the purpose is to seek Council’s approval for:

a) the necessary amendments to update the form (previously approved by each of Nelson City Council (NCC) and Tasman District Council (TDC)) of each of:

i. the Infrastructure Holdings Limited (IHL) Shareholders’ Agreement to be in the form attached (1511110536-695) (Shareholders’ Agreement);

b) an updated resolution for the purposes of section 50 of the Companies Act 1993 (Act) (1511110536-701)

Share values

i. NAL at $103,700,000; and

ii. PNL at $275,700,000,

resulting in a total net asset value of $379,400,000 for PNL and NAL combined (New Valuation); and

i. section 107(2) of the Act so that the Second Shares may be issued otherwise than in accordance with sections 42, 44 or 45 of the Act; and

ii. clause 3.4 of IHL’s constitution;

H. The Council resolution at 22 September 2022, noted at items G., H., I., and S. that:

H. The Purchase Price allocation is:

a) $2,400,000 for the shares in NAL; and

b) $6,046,000 for the shares in PNL.

S. The Restructuring Proposals and the Financing Proposals will require the approval of the Shareholders as:

a) the proposals are, or may be, “major transactions” (as defined in section 129 of the Companies Act 1993 (Act));

That the Council:

H. The Purchase Price allocation is:

a) $103,700,000 for the shares in NAL; and

b) $275,700,000 for the shares in PNL.

S. The Restructuring Proposals and the Financing Proposals will require the approval of the Shareholders as:

a) the proposals are, or may be, “major transactions” (as defined in section 129 of the Companies Act 1993);

2. Consents, for the purposes of section 50 of the Companies Act 1993 and for all other purposes, to being the joint owner in equal shares of the Initial Shares, Second Shares and the New Shares; and

Author and Authoriser: Nikki Harrison, Group Manager Corporate Services

Attachments

Attachment 1: 1511110536-698 Draft Sale and Purchase Agreement (15 May 2023) ⇩

Attachment 2: 1511110536-699 IHL - Unanimous Shareholders' resolutions approving restructuring transactions, initial share issue and secon share issue ⇩

Attachment 3: 1511110536-695 - Draft Shareholders Agreeemnt (marked to show JSC approved further amendments 22 May 2023) ⇩

Item 8: Mayor's Report

Council

8 June 2023

REPORT R27734

Mayor's Report

1. Purpose of Report

1.1 To seek an urgent briefing by Ministers and/or officials on the Nelson Hospital redevelopment project.

1.2 To acknowledge the people involved with managing the May 2023 weather event.

1.3 To acknowledge the emergency river works by the engineering team in the Whangamoa River following the weather event in August 2022.

2. Recommendation

That the Council

1. Receives the report Mayor's Report (R27734); and

3. Acknowledges the people involved with managing the May 2023 weather event; and

3. Discussion

Nelson Hospital Redevelopment Project

3.1 The redevelopment of Nelson Hospital is the most important infrastructure project for the Nelson-Tasman region this decade. The current hospital is below standard for both patients and health professionals. Two of the main buildings have been deemed earthquake-prone and there is insufficient capacity for Nelson’s growing and ageing population. The Government stocktake of hospitals in June 2020 of 24 buildings housing clinical facilities found the George Manson Building at Nelson Hospital was the worst in the country. There is also the urgent issue of replacing the coal boilers with alternatives to reduce the city’s greenhouse gas emissions.

3.2 Nelson City Council has multiple interests in this project given its size, Council’s regulatory role and the hospital’s importance to the region. Council issued earthquake-prone building notices in January 2020, noting that the two main tower blocks – the George Manson Building and the Percy Burnette Building – had earthquake ratings of 20% to less than 34%. These two buildings are the most significant and important in Nelson covered by the 2016 earthquake-prone buildings legislation and for which Council has a regulatory responsibility to ensure compliance. The deadline for addressing the serious seismic issues with these buildings is 16 November 2028. Council has a legal obligation to ensure this deadline is met. This five-year timeframe is tight given the scale of the rebuild and the complexity of maintaining hospital services while replacing these buildings.

3.3 The Greymouth and Christchurch hospital rebuilds experienced multi-year delays. The Dunedin Hospital project is also facing a major delay. The Government promised in 2017 that construction would begin in 2020 but this work did not start until mid-2022 and the completion date has now been pushed out to 2029. I believe there is a significant risk that Nelson Hospital will not be upgraded in time to meet the statutory deadline of November 2028 for these earthquake-prone buildings.

3.4 Council wants to work with the Government as constructively as possible to facilitate this huge building project and achieve the statutory timeframes. It will be the largest infrastructure project in the history of the region, with an estimated budget of $800 million. (This is likely to increase given the significant ongoing increase in construction costs.) The resource and building consenting for a project this size needs to be planned and co-ordinated. Council should consider establishing a dedicated team in our building and consents department to support it when the timetable for consenting and construction is known. Nelson also needs to plan for the estimated 1000-strong workforce required during the peak of construction with consideration given to issues such as boosting skills training and preparing for the additional demand on housing.

3.5 Nelson was reassured on 23 January 2021 by the Health Minister who was quoted as saying: “Any new building will be commenced before the end of this term of Parliament, absolutely.” This commitment was reinforced on 26 August 2022 when the Minister said “a start on the project will be made – as I indicated – before the election”. The General Election is to be held on Saturday 14 October 2023.

3.6 Council has received no resource or building consent applications for any work on the hospital site to date. I am not aware that any business case has been approved and there has been no community consultation on any layout or design proposals. I am concerned that the Minister’s commitments to Nelson are not going to be met given it is just 18 weeks until the General Election.

3.7 It is also important for a public project of this size that the community is consulted on the core design of the new hospital. Issues such as parking, traffic flow, access to public transport, the continuation of early childhood education services on site and the effects on neighbours during construction and after completion all require engagement. I am concerned that without a District Health Board since 1 July 2022, which we had in various forms since the 1880s, there is a lack of local voices to push for progress and to ensure appropriate public consultation. It is my view that Council should be an advocate for this occurring and, if necessary, facilitating.

3.8 There is also the issue of the significant greenhouse gas emissions from the hospital coal boilers. Council has been encouraging and facilitating increased use of gas from the York Valley landfill (Nelson City Council’s greatest source of greenhouse gas emissions) at the hospital since 2020 and replacing the coal boilers. This included meetings in November 2020 and March 2021 where Council tried to advance getting work under way. I wrote to the Health Minister in December 2022 suggesting a joint working party. This offer was not taken up. The coal boilers remain and now Te Whatu Ora has applied for a seven-year consent to burn up to 4000 tonnes of coal a year. Council resolved on 9 February 2023 to revoke the delegation to staff for this consent application:

Resolved CL/2023/002

That the Council

1. Receives the report Mayor's Report (R27449) and its attachments (1833911234-50, 1833911234-51, 1833911234-47, 1833911234-49 and 1833911234-62); and

2. Revokes the delegation to staff to decide, under sections 95 and 104 of the Resource Management Act, the discharge consent application in the name of Te Whatu Ora (Nelson Hospital) as this application is of high public interest and will be considered directly by Council; and

His Worship the Mayor/Brand Carried

3.9 Te Whatu Ora has indicated publicly that it will reduce the term of the application to three years but no such amendment has yet been received. Council welcomes the announcement from Government on 3 May to replace all coal burners in hospitals and tertiary institutions by the end of 2025 and Council is keen to engage to help achieve this goal. We need to be pressing Te Whatu Ora for clarity on this resource consent application so we have a clear pathway to resolving this problem.

3.10 The upgrade of the energy centre at Nelson Hospital is a small project relative to the overall upgrade but the frustrating delays in getting this issue addressed despite extensive efforts by Council does not bode well for achieving the much larger redevelopment in a timely way.

Recommendation

3.11 I recommend that I write, on behalf of Council, to the Minister of Health and Te Whatu Ora Chief Executive Fepulea'i Margie Apa (copying in Interim Lead - Hospital and Specialist Services, Nelson Marlborough – Lexie O’Shea) seeking an urgent briefing to the full Council by Ministers and/or officials on the Nelson Hospital redevelopment project including information on the progress of the project, the plan to meet the statutory timeframe in the Building (Earthquake-prone Buildings) Amendment Act 2016 and to get clarity on what consultation is planned for the wider Nelson community about this major redevelopment project.

4. Acknowledgements

4.1 I want to acknowledge those involved with managing the May 2023 weather event, especially Manager of Emergency Management Joe Kennedy and Councillor James Hodgson in respect of their efforts to provide emergency housing for Nelson’s homeless. Their work coordinating between different agencies including Council and Unite Church went above and beyond the call of duty and was greatly appreciated.

4.2 I also want to acknowledge the engineering team for the emergency river works in the Whangamoa River following the extreme weather event in August 2022, outside of budget and in an area where there is no rating. Had this work not been undertaken, the Kokorua community would have again been isolated by more recent weather events. This sequence of events reinforces the need for Council to be nimble-footed in response to these weather challenges to best protect the public we serve.

Author: Hon Dr Nick Smith, Mayor

Attachments

Nil

Item 10: National Policy Statement - Urban Development Annual monitoring report 2021/2022

Council

8 June 2023

REPORT R27674

National Policy Statement - Urban Development Annual monitoring report 2021/2022

1. Purpose of Report

1.1 To provide the results of the Nelson Tasman Joint Monitoring Report 2021/22 as required by the National Policy Statement on Urban Development (NPS-UD) and seek agreement to publish the Monitoring Report.

2. Recommendation

That the Council

1. Receives the report National Policy Statement - Urban Development Annual monitoring report 2021/2022 (R27674) and its attachment (336940202-6957); and

2. Approves publishing the report National Policy Statement on Urban Development, Nelson-Tasman Joint Monitoring Report, June 2022 (336940202-6957) on the Council’s website.

3. Background

3.1 The National Policy Statement on Urban Development (NPS-UD) came into effect in August 2020. It replaced the National Policy Statement on Urban Development Capacity (NPS-UDC). This identifies Nelson-Tasman as a Tier 2 Urban Environment.

3.2 Nelson City Urban Environment comprises of Nelson, Hira and Cable Bay. Tasman District Urban Environment comprises of Richmond, Motueka, Māpua, Wakefield and Brightwater.

3.3 The NPS-UD (section 3.9) requires local authorities to monitor a range of indicators including:

3.3.1 The demand for dwellings.

3.3.2 The supply of dwellings.

3.3.3 Prices of, and rents for, dwellings.

3.3.4 Housing affordability.

3.3.5 The proportion of housing development capacity that has been realised:

(i) in previously urbanised areas (such as through infill housing or redevelopment); and

(ii) in previously undeveloped areas (i.e. greenfield).

3.3.6 Available data on business land.

3.4 The NPS-UD requires both councils to work together to monitor and report on the required measures. The monitoring results for this range of indicators, are required to be reported and published at least annually. The Monitoring Report is required to be reported publicly on the Council website.

4. Overview of results

4.1 The Monitoring Report includes data for both Nelson and Tasman local authorities, recognising the connected, cross-boundary property market both Councils share. The information provided on the Ministry of Housing and Urban Development’s (MHUD) online data dashboard has been supplemented with Nelson City Council and Tasman District Council resource and building consent data within the Monitoring Report.

4.2 The attached Monitoring Report covers the period 1 July 2021 to 30 June 2022 and the main conclusions are:

4.2.1 Median house prices in Nelson and Tasman continue to increase. Compared with 5 years ago, median prices in Nelson have increased by around 64 per cent and in Tasman by 70 per cent. The annual increase in median house prices has been 13 per cent and 15 per cent for Nelson and Tasman respectively.

4.2.2 Both Nelson and Tasman have seen a slight decrease in the number of eligible applicants on the waiting list for Social Housing, as recorded on the Ministry of Social Development’s Social Housing Register with decreases of 2 per cent for each. A survey by Nelson Tasman Housing Trust found that, in addition to the 435 Nelson and Tasman households on MSD’s public housing register, a further 528 households needed affordable housing but did not meet the public housing register’s criteria.

4.2.3 Affordability has continued to worsen in Nelson over the last 12 months, according to the Massey University Index. For the year to May 2022, home affordability declined in Nelson by 62 per cent. Of the sixteen regions assessed, Tasman remains the second least affordable in the country and Nelson is now ranked eleventh least affordable (up from the fifth least affordable in the previous reporting year).

4.2.4 New dwelling unit building consents in Nelson-Tasman Urban Environment fell from 645 in 2021 to 619 in 2022, or a decrease of 10 per cent. Total building consents for new dwelling units in Nelson have remained relatively constant at 257 in 2022, compared to 260 in the previous year.

4.2.5 New residential sections in Nelson have increased to 198, or roughly double the previous 106 new sections in 2021. Of these new sections, 134 were greenfield developments, 10 were backyard infill and 57 were the result of sites being redeveloped. The Tasman Urban Environment has seen a small decrease in the number of sections created (327), compared with the previous year (332).

4.2.6 Subdivision resource consents for residential lots have decreased in Nelson to 330, approximately 26 per cent less than the previous year. The Tasman Urban Environment also saw a decrease in subdivision consents down to 239, approximately 45 per cent. The difference between the new titles in 4.2.5 and the number of consented residential lots is related to timing and the lag between the two processes. Each development granted resource consent will have its own timing and staging of development.

4.2.7 The amount of floor space consented for building for business (commercial and industrial) fell in Nelson City to 3,169sqm consented, 58 per cent lower than the previous year. Tasman saw an increase of 74 per cent in the same period with 31,450sqm consented.

4.3 This annual monitoring report is usually made available to elected members in November; however, in election years, this is delayed until March. This year’s report was further delayed due to staff changeover in the City Development Team.

Author: Martin Kozinsky, Senior City Development Adviser

Authoriser: Mandy Bishop, Group Manager Environmental Management

Attachments

Attachment 1: 336940202 6957 Nelson-Tasmin Joint Monitoring Report 2022 ⇩

Item 11: City for All Ages Update

Council

8 June 2023

REPORT R27711

City for All Ages Update

1. Purpose of Report

1.1 To provide an update on the implementation of the He Rautaki Whakatūpuranga/City For All Ages Strategy.

2. Recommendation

That the Council

1. Receives the report City for All Ages Update (R27711).

3. Background

3.1 He Rautaki Whakatūpuranga/City For All Ages Strategy was endorsed by Council in December 2021 following the hard work of the Community Steering Group that developed the strategy, taking into account the input of many individuals, community groups and agencies. The Strategy aims for Whakatū Nelson to be a place where older adults can live well, contribute to and connect with their community as they age.

3.2 An Implementation Group of community members works to monitor, support and report on implementation of the strategy and update the document as necessary. It aims to report to Council each year on progress. Paul Steere, Chairperson of the City for All Ages Implementation Group, will be present at the meeting to answer questions.

4. Discussion

Nelson’s ageing community

4.1 Nelson’s population is ageing faster than most other parts of New Zealand. Compared to other territorial authorities we are experiencing the sixth fastest increase in the 65+ age group based on a medium growth projection.

4.2 Currently 21% of the Nelson population is 65 or older and this is expected by Stats NZ to increase to 34% over the next 3-4 decades. By 2048 Nelson is projected to be the 11^th oldest of New Zealand’s 67 territorial authorities. This is not a temporary change as a bubble of baby boomers age, it is expected to be a profound and persistent change.

4.3 The ageing of a community is closely linked to population growth. Once a population has more than 20% of its residents aged 65 years and over, it is considered by demographers to be nearing the end of natural increase. Stat NZ predicts that within a decade deaths will outnumber births in Nelson. Nelson’s population is still expected to grow until at least mid-century, due to inwards migration, but that will slow, as shown in the graph below.

Source: Tasman District Council and Nelson City Council Population Projections 2018-2058 Results, March 2023,

4.4 The impact of this increase in older residents, both in number and as a proportion of the population, will have significant impacts for Council and the services it delivers. Some of the key impacts are considered below.

Housing

4.5 Council currently has affordable housing as one of its priority focus areas and achieving this for many older residents will be a growing challenge. A decline in home ownership is a national trend and will mean a greater reliance on rental accommodation for older adults. As part of the National Science Challenge, data collected on changes in renting for Nelson residents 65 years and over showed a significant increase of 82% between 1986 and 2013 (albeit off a very low base). Non-homeowners are almost five times more likely to struggle in retirement.

4.6 One of the actions from the Strategy is to see better collaboration amongst agencies and an Older Adults Housing Subgroup now meets on an ad hoc basis, bringing together government agencies, community groups and councils. However, it remains a difficult issue to make progress on, but an important one as good housing supports people to stay independent for longer.

Retirement Villages

4.7 Nelson is an attractive retirement destination and there has been significant investment in retirement villages locally. There are 10 registered villages in Nelson which between them have 830 units housing around 1,100 older residents. This means about 26% of Nelson’s 75+ population is living in a retirement village (based on 2018 census data).

4.8 Three existing villages are either under development or being expanded with another 307 planned to come on stream to house a further 400 people. The villages include 558 care beds (with another 79 in development) of which 45 are for people living with dementia.

4.9 The steady decline in home ownership is likely to impact retirement villages which rely on households being able to sell homes to achieve the capital necessary for purchase.

4.10 The Implementation Group is looking at ways to better connect with retirement villages as an important service provider for our older adults. A meeting with resident representatives from the villages is in the works.

Health

4.11 New Zealand ranks reasonably well (11^th out of 121) on the international healthy ageing index and Nelson residents are typically more active than the national average (2018 Active NZ survey showing Te Tauihu as one of the regions with the highest participation rates for physical activity). This can be expected to be protective factor for our ageing population, including against disability the risk of which increases to 57% for over 65s. However, one area that is neglected is protecting older residents from muscle loss and achieving Ministry of Health guidelines of two days of resistance training per week. The Strategy has supported safe use of the Council-provided outdoor gym equipment at Saxton Field, Tāhunanui and Nelson CBD with regular instruction on site by a qualified trainer.

4.12 Even with a generally more active population Nelson will face difficulties providing health care for its growing number of older residents. Te Whatu Ora is finding Nelson hospital admissions climbing due to the ageing population. Surveying of carer availability last year found Nelson had a shortage of around 25 nurses and 34 caregivers in residential care and home/community support providers were also advising of shortages. Respite care is also limited by capacity. These strains on the health system are likely to continue due to increasing demand, though a positive factor is that Te Tauihu has one of the lowest volumes of people in aged residential care in the South Island.

4.13 The Implementation Group is continuing to monitor health data as it becomes available and a number of actions in the Strategy that support health and wellbeing have been implemented.

Economic factors

4.14 With an ageing population more ratepayers will be on fixed incomes and likely to experience overall a greater difficulty in meeting increased rates costs. Spending patterns are likely to change eg away from education and towards health.

4.15 As Nelson’s population ages it is expected that our workforce growth will slow and the labour market may contract as more people retire than enter the workforce. For the Nelson Tasman region 61.5% of the population was in what is considered “working age”, 15-64 years, in 2022, compared to 64.8% for New Zealand.

4.16 Loss of workers can be mitigated to a degree by encouraging older workers to stay longer in employment. This may be a challenge for Nelson as it has typically had one of the lowest employment participation rates for its 65+ age group out of all councils – a strong trend over many census results (in the 2018 census Nelson was 56th out of 67 territorial authorities).

4.17 A recent success in this area has been a collaboration, led by the Chamber of Commerce in partnership with Council and Business Assist, which has received government funding to participate in a trial programme to support older entrepreneurs to progress their business ideas.

5. Delivery of Strategy Actions

5.1 Overall, delivery of Council-led actions within the City for All Ages Strategy has been positive, albeit a little side-tracked by the more acute and immediate COVID-19 health response that has made programme delivery to hesitant older adults a challenge.

5.2 Local research conducted by Age Concern released in June paints a concerning picture of older adults continued cautious attitude around the health risks of COVID-19. Trends indicated in the research paint a picture of a demographic vulnerable to social isolation and further decline in their overall physical and mental wellbeing

5.3 Wellbeing: The exercise and movement classes have been well received by participants who have reported not only finding themselves fitter but valuing the opportunities to make connections with others. More women than men are attending and staff, together with the instructor, are looking at other movement opportunities that men may be encouraged to attend such as ‘circuit’ training or ‘water activities’.

5.4 The Creative art opportunities have not been as successful to getting off the ground. Staff are continuing to work with the Arts Council to find opportunities and communities to target.

5.5 Social: Age Concern is now settled in its new Nelson Office and this seems sustainable for them. The office is staffed most of the day and hosts some social sessions for a small number of older adults to attend ( Tea and Talk).

5.6 Two Social groups for Kaumatua have been established one at the Marae and one with Te Korowai Trust in Stoke. Both groups are in their infancy but are seeing a reasonable attendance by Kaumatua who had become quite isolated over the past couple of COVID years.

5.7 Work: A very successful expo for the recruitment of older volunteers was held in 2022. A Volunteer Strategy for the Nelson Tasman region is under development which will create opportunities for older people. The collaboration to deliver training for senior entrepreneurs (see 4.17) is another success.

5.8 Housing: Many older people are finding themselves in very vulnerable housing situations. There is an established housing cross agency forum that deals with older adults.

5.9 Transport: An active Transport Strategy as well as a Parking Strategy have been developed with consideration given to older adults. The new bus service will help the mobility of many older residents. Changes to the timings of the pedestrian crossings is well underway.

5.10 Information: An accessibility widget has been installed on to the Council’s website. Many older people much prefer to have written information and some do not use any sort of online information source. With the demise of Mudcakes and Roses much thought is going into an alternative product for older adults.

5.11 The Found directory is to have some advanced Search filters put into place to allow easier access to information. Work is also underway to again have the Found Directory published in a printed form. This would be available to agencies and libraries for members of the public to use.

5.12 Outdoors: New seating has been installed at Saxton field after feedback that older exercisers needed places to stop and rest. An idea to involve businesses in making toilets more accessible (Use our loos) has not been as successful as hoped, partly due to COVID concerns.

5.13 The Hāpai Card programme will be introduced this year, so that people with a disability can show their card to identify the sort of assistance they require. This will initially be rolled out in Council premises.

5.14 Introducing Adults back into play will be trialled with the introduction of an adult swing. This idea, much used overseas, will give adults opportunities to enjoy both exercise and play.

6. Conclusion

6.1 Good progress has been achieved on the Strategy and Nelson has built a positive profile for this work. It is listed as a Council to contact in the Office for Seniors Age-Friendly Toolkit, has achieved membership of the WHO Age-Friendly Network, has been given government funding for age-friendly research and is often asked to participate in age-friendly initiatives at a national level.

6.2 With many of the initial actions in the Strategy completed or underway the Implementation Group is focussing on new projects to support the Strategy.

Author and Authoriser: Nicky McDonald, Group Manager Strategy and Communications

Attachments

Nil