Agenda of Council - Thursday, 1 August 2024

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 July 2024	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
2	Venue Hire Fee Exception	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	Tāhunanui Back Beach Remediation - Programme Update	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)(c)(ii) To protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest

Nelson City Council Minutes - 4 July 2024

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 July 2024, 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), P Rainey, C Rollo, R Sanson, T Skinner, K Paki Paki and A Stallard

In Attendance: Chief Executive (N Philpott), Group Manager Environmental Management (M Bishop), Group Manager Community Services (A White), Group Manager Strategy and Communications (N McDonald), Acting Group Manager Corporate Services (J McLeod), Acting Group Manager Infrastructure (D Light), Acting Team Leader Governance (A Andrews) and Governance Adviser (A Bryce)

Apologies: Nil

Karakia and Mihi Timatanga

1. Apologies

2. Confirmation of Order of Business

There was no change to the order of business.

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. Bike Hub Nelson - Share their story and thank Nelson City Council for their support

Document number R28643

Co-ordinator, Matt Lawrey and volunteers Emily Osborne and Kevin Gear from the Bike Hub Nelson, spoke about the success story of Bike Hub Nelson and thanked Nelson City Council for their support. They explained all the activities undertaken by Bike Hub like repairs, relocations and courses. They outlined the benefits of the initiative such as social group, and bikes out of landfill. They answered questions on grants, bike infrastructure, future initiatives and workshops/courses.

Attachments

1 1982984479-7735 Council 04Jul2024 Tabled Document Public Forum Bike Hub Nelson Powerpoint

5. Confirmation of Minutes

5.1 6 June 2024

Document number M20604, agenda pages 7 - 18 refer.

Attendance: Councillor Skinner joined the meeting at 9.20a.m.

Resolved CL/2024/143

That the Council

1. Confirms the minutes of the meeting of the Council, held on 6 June 2024, as a true and correct record.

Sanson/Courtney Carried

6. Mayor's Report

Document number R28642, agenda pages 19 - 30 refer.

His Worship the Mayor explained the purpose of the report and highlighted the importance of the extension on the airport works and the golf club reserve. The Mayor answered questions from Elected Members.

The motion was taken in parts.

Resolved CL/2024/144

That the Council

1. Receives the report Mayor's Report (R28642) and its attachments (1118544611-7802, 1118544611-7799 and 1118544611-7803).

His Worship the Mayor/Hodgson Carried

Agenda Item 6 was adjourned at 9.52a.m. to consider Item 7 (Nelson Festivals Trust – Strategic Presentation and Update) due to availability of external presenters.

7. Nelson Festivals Trust – Strategic Presentation and Update

Document number R28497, agenda pages 31 - 49 refer.

General Manager, Ruth Roebuck, Artistic Director, Lydia Zanetti and Chairperson, Ali Boswijk tabled a presentation and spoke to it. They provided a brief on the 2023 Festival and the benefits of the ‘pay what you can’ approach and its benefits on increasing accessibility. They spoke about the plans for the 2024 festival and events planned for the next festival.

The meeting was adjourned from 10.12a.m. until 10.24a.m.

They answered questions on funding streams, revenue, ticket sales, promotion to youth, relationship with schools, collaboration with youth council, diversity, venue challenges, local artists, sustainable funding, successes and accessibility.

Resolved CL/2024/145
	*That the Council* *1. Receives the report Nelson Festivals Trust – Strategic Presentation and Update (R28497) and its attachment (2134162460-1175)*
O'Neill-Stevens/Courtney Carried
Attachments 1 1982984479-7734 Council 04Jul2024 Tabled Document Nelson Festivals Trust PowerPoint

8. Mayor's Report (Agenda Item 6 reconvened)

Document number R28642, agenda pages 19 - 30 refer.

The Mayor answered questions from Elected Members.

The motion was taken in parts.

Resolved CL/2024/146

That the Council

2. Authorises the Chief Executive to have discussions with Nelson Golf Club and Nelson Airport Limited on the potential use of the airport peninsula held as Local Purpose Reserve (Aerodrome) for a reconfigured golf course; and

3. Notes any discussion with the parties is subject to not prejudging Council’s consideration of the report from the independent panel of commissions on Plan Change 30, and that any proposals for use of the reserve land be subject to a process of consultation with the public.

The motion was put and a division was called:

For

Cr Smith (Chairperson)

Cr Anderson

Cr Benge

Cr Brand

Cr Courtney

Cr Hodgson

Cr O'Neill-Stevens

Cr Paki Paki

Cr Rainey

Cr Rollo

Cr Sanson

Cr Skinner

Against

Cr Stallard

Abstained/Interest

The motion was carried 12 - 1.

His Worship the Mayor/Skinner Carried

The meeting was adjourned from 12.13p.m. until 12.24p.m.

Resolved CL/2024/147

That the Council

4. Authorises the His Worship the Mayor to sign the Memorandum of Understanding between Nelson City Council and Port Nelson Limited.

Skinner/Courtney Carried

Resolved CL/2024/148

That the Council

5. Approves the revised name, membership and Terms of Reference for the Civic House-Library Taskforce; and

6. Appoints Councillor Matthew Benge to the Waterfront Development Taskforce.

Rollo/Courtney Carried

Resolved CL/2024/149

7. Notes the recent expenditure from the Mayoral Discretionary Fund.

His Worship the Mayor/O'Neill-Stevens Carried

Attachments

1 1982984479-7750 Council 04Jul2024 Tabled Document Land Details - Nelson Golf Club Proposal - Airport Peninsula

9. Nelson Tasman Regional Land Transport Plan 2024-2034 and Regional Public Transport Plan 2024-2034 (Agenda Item 8)

Document number R28633, agenda pages 50 - 184 refer.

Contractor Transport Activity Management, Rhys Palmer, Team Leader Transport Activity Management, Lyndon Hammond and Acting Group Manager Infrastructure, David Light, spoke to their report and highlighted the two plans in the report. They answered questions on significant projects vs on the horizons projects, Rocks Road project, funding from Waka Kotahi and Hope Bypass.

Resolved CL/2024/150

That the Council

1. Receives the report Nelson Tasman Regional Land Transport Plan 2024-2034 and Regional Public Transport Plan 2024-2034 (R28633) and its attachments (1862260321-69994, 1862260321-70024 and 1862260321-69995); and

2. Receives the Referral from the Joint Nelson Tasman Regional Transport Committee - Nelson Tasman Regional Land Transport Plan 2024-34 and Nelson Tasman Public Transport Plan 2024-34 Deliberations Report (Attachment 1) and;

a) Approves the Regional Land Transport Plan 2024-2034 that will be submitted to New Zealand Transport Agency Waka Kotahi no later than 1 August 2024; and

b) Adopts the Nelson Tasman Regional Public Transport Plan 2024-2034 enabling it to take effect and be notified with the parties listed in section 121(1)(c)(i) of the Land Transport Management Act 2003.

3. Notes Tasman District Council considered and approved the RLTP and adopted the RPTP both without modification on 20 June 2024.

The motion was put and a division was called:

For

Cr Smith (Chairperson)

Cr Benge

Cr Brand

Cr Courtney

Cr Hodgson

Cr O'Neill-Stevens

Cr Paki Paki

Cr Rainey

Cr Rollo

Cr Skinner

Against

Cr Anderson

Cr Sanson

Cr Stallard

Abstained/Interest

The motion was carried 10 - 3.

His Worship the Mayor/O'Neill-Stevens Carried

10. Exclusion of the Public

Resolved CL/2024/151

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:

His Worship the Mayor/Hodgson 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 - 6 June 2024	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) · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(g) To maintain legal professional privilege
2	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
3	Appointment of Panel Members for the Community Funding 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 1.32p.m. and resumed in public session at 2.10p.m.

Karakia Whakamutanga

11. Restatements

It was resolved while the public was excluded:

1	CONFIDENTIAL: Nelson Regional Development Agency - Reappointment of Director
	3. Agrees that the decision only be made publicly available on the Nelson Regional Development Agency’s website (www.nelsontasman.nz) once the appointment has been announced.

2	CONFIDENTIAL: Appointment of Panel Members for the Community Funding Panel
	3. Agrees that the decision only be made publicly available once the appointments are confirmed.

There being no further business the meeting ended at 2.11p.m.

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

Resolved

Item 8: Indicative Business Case - Community Hub, Library and Civic Centre

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 27 June 2024, commencing at 9.02a.m. - to ADOPT LTP

Present: His Worship the Mayor N Smith (Chairperson), Councillors M Anderson, 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 Environmental Management (M Bishop), Group Manager Community Services (A White), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald), Acting Group Manager Infrastructure (D Light), Acting Team Leader Governance (A Andrews) and Governance Adviser (A Bryce)

Apologies : Councillor Benge

Karakia and Mihi Timatanga

1. Apologies

Resolved CL/2024/135

That the Council

Receives and accepts the apologies from Councillor Benge for attendance.

Rollo/Hodgson Carried

2. Confirmation of Order of Business

Item 7 was taken before Item 6.

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 Council Minutes of 23 May 2024

Document number R28623, agenda pages 10 - 56 refer.

Resolved CL/2024/136

That the Council

1. Confirms the minutes of the meeting of the Council, held on 23 May 2024, as a true and correct record.

Sanson/Hodgson Carried

7. Adoption of Final Schedule of Fees and Charges 2024/25

Document number R28597, agenda pages 70 - 86 refer.

Strategic Adviser Community Services, Martin Croft, Strategic Adviser Infrastructure, Mark Macfarlane and Strategic Adviser, Michelle Joubert spoke to the report and acknowledged the work of staff behind the report. They answered questions on swimming pool charges and related CPI increases.

Resolved CL/2024/137

That the Council

1. Receives the report Adoption of Final Schedule of Fees and Charges 2024/25 (R28597) and its attachment (1598046314-154); and

2. Notes that with the exception of fees for the Crematorium, staff have incorporated in the Schedule of Fees and Charges 2024/25 the decisions made at the deliberations meeting on 23 and 24 May 2024 following public consultation between 27 March and 28 April 2024; and

3. Adopts the Final Schedule 2024-25- Fees and Charges for Council approval (1598046314-154) that require Council approval; and

4. Notes that staff will notify submitters of Council’s decisions on the Schedule of Fees and Charges 2024/25; and

5. Notes that staff will provide a report to council by the conclusion of the calendar year 2024 on aquatic facilities’ charges.

Brand/Rollo Carried

6. Adoption of the Long Term Plan 2024-2034

Document number R28343, agenda pages 57 - 69 refer.

Group Manager Corporate Services, Nikki Harrison and Group Manager Strategy and Communications, Nicky McDonald spoke to the report and explained the amendments tabled due to the feedback received from Audit New Zealand. They explained the intent of these amendment and its impact. They answered questions on interest rates at different years of the LTP, proportion of rates paid as interest, Council’s expectation from CCOs and other partner organisations to reduce emissions.

Audit New Zealand Auditor, John Mackey, spoke to the audit and explained the scope of the audit and covered topics like the capital programme, levels of service, borrowing and delivery of services. He acknowledged the difficulty of the process going into this LTP. He answered questions on footnotes provided on climate change, accountability to the community, and assumptions and forecast made in the report.

Group Manager Community Services, Andrew White, answered questions on 100 percent cost recovery for crematorium and its timelines.

The meeting was adjourned from 9.59a.m. until 10.07a.m.

Resolved CL/2024/138

That the Council

1. Receives the report Adoption of the Long Term Plan 2024-2034 (R28343) and its attachments (1852948764-715, 336940202-11146, 336940202-9003); and

2. Adopts the following policies:

a. Revenue and Financing Policy (pages 253-279 of Attachment 1 1852948764-715); and

b. Rates Remission Policy (pages 283-291 of Attachment 1 1852948764-715); and

c. Policy on Development Contributions (pages 294-374 of Attachment 1 1852948764-715).

3. Adopts the Nelson and Tasman Tier 2 Urban Environment: Housing and Business Assessment (Attachment 2 336940202-11146) and the Nelson City Housing and Business Capacity Assessment (Attachment 3 336940202-9003).

His Worship the Mayor/O'Neill-Stevens Carried

Resolved CL/2024/139

That the Council

4. Adopts the Long Term Plan 2024-2034 (Attachment 1 1852948764-715) ), including amendments as tabled at the meeting (1852948764-1211), in accordance with Section 93 of the Local Government Act 2002; and

5. Agrees the Mayor and Chief Executive be delegated authority to approve any minor editorial amendments required to the document prior to the public release of the Long Term Plan 2024 - 2034; and

6. Sets the land value for the Low Valued Properties Rates Remission at $10,000, in accordance with Section 85 of the Local Government (Rating) Act 2002 and Council’s Rates Remission Policy.

His Worship the Mayor/O'Neill-Stevens Carried

Resolved CL/2024/140

That the Council

7. Sets the following rates under the Local Government (Rating) Act 2002, on rating units in the district for the financial year commencing on 1 July 2024 and ending on 30 June 2025.

The revenue approved below will be raised by the rates and charges that follow.

Revenue approved:

General Rate $56,253,939

Uniform Annual General Charge $7,610,966

Stormwater Charge $7,199,211

Storm Recovery Charge $6,702,202

Flood Protection Rate $3,931,527

Waste Water Charge $12,486,739

Water Annual Charge $4,807,647

Water Volumetric Charge $11,217,842

Rates and Charges (excluding GST) $110,210,073

Goods and Services Tax

(at the current rate) $16,531,511

Total Rates and Charges $126,741,584

The rates and charges below are GST inclusive.

(1) General Rate

A general rate set under section 13 of the Local Government (Rating) Act 2002, assessed on a differential land value basis as described below:

· a rate of 0.40825 cents in the dollar of land value on every rating unit in the “residential – single dwelling” category.

· a rate of 0.40825 cents in the dollar of land value on every rating unit in the “residential empty section” category.

· a rate of 0.44908 cents in the dollar of land value on every rating unit in the “multi residential” category. This represents a plus 10% differential on land value.

· a rate of 1.39620 cents in the dollar of land value on every rating unit in the “commercial – excluding inner city and Stoke commercial” category. This represents a plus 241.9965% differential on land value.

· a rate of 1.97767 cents in the dollar of land value on every rating unit in the “commercial inner city” category. This represents a plus 384.427% differential on land value.

· a rate of 1.69506 cents in the dollar of land value on every rating unit in the “Stoke commercial” category. This represents a plus 315.201% differential on land value.

· a rate of 0.26536 cents in the dollar of land value on every rating unit in the “rural” category. This represents a minus 35% differential on land value.

· a rate of 0.40825 cents in the dollar of land value on every rating unit in the “forestry” category.

· a rate of 0.36743 cents in the dollar of land value on every rating unit in the “small holding” category. This represents a minus 10% differential on land value.

(2) Uniform Annual General Charge

A uniform annual general charge under section 15 of the Local Government (Rating) Act 2002 of $344.23 per separately used or inhabited part of a rating unit.

(3) Stormwater Charge

A targeted rate under section 16 of the Local Government (Rating) Act 2002 of $385.79 per rating unit, excluding Rural rating units, Saxton’s Island and Council’s stormwater network.

(4) Storm Recovery Charge

A targeted rate under section 16 of the Local Government (Rating) Act 2002 of $300.00 per separately used or inhabited part of a rating unit.

(5) Flood Protection Rate

A targeted rate under section 16 of the Local Government (Rating) Act 2002 of 0.03725 cents in the dollar of land value, excluding Saxton’s Island and Council’s stormwater network.

(6) Waste Water Charge

A targeted rate for waste water disposal under section 16 of the Local Government (Rating) Act 2002 of:

· $640.09 per separately used or inhabited part of a residential, multi residential, rural, forestry and small holding rating units that is connected either directly or through a private drain to a public waste water drain.

· For commercial rating units, a waste water charge of $160.02 per separately used or inhabited part of a rating unit that is connected either directly or through a private drain to a public waste water drain. Note: a trade waste charge will also be levied.

(7) Water Annual Charge

A targeted rate for water supply under section 16 of the Local Government (Rating) Act 2002 per connection on all rating units where a water meter is installed for the property, of:

Water charge (per connection) $251.66

(8) Water Volumetric Rate

A targeted rate for water provided under Section 19 of the Local Government (Rating) Act 2002, of:

Price of water:

Usage up to 10,000 cu.m/year 2.626 per m³

Usage from 10,001 – 100,000 cu.m/year

$2.232 per m³

Usage over 100,000 cu.m/year $1.838 per m³

Summer irrigation usage

over 10,000 cu.m/year $2.442 per m³

Other Rating Information:

Due Dates for Payment of Rates

The above rates (excluding water volumetric rates) shall be payable in four instalments on the following dates:

Instalment Number	*Instalment Date*	*Due Date for Payment*	*Penalty Applied*
*Instalment 1*	*25 July 2024*	*20 August 2024*	*26 August 2024*
*Instalment 2*	*25 October 2024*	*20 November 2024*	*26 November 2024*
*Instalment 3*	*27 January 2025*	*20 February 2025*	*26 February 2025*
*Instalment 4*	*28 April 2025*	*20 May 2025*	*26 May 2025*

Rates instalments not paid before the Penalty Applied date will incur penalties as detailed in the section “Penalty on Rates”.

Due Dates for Payment of Water Volumetric Rates

Water volumetric rates shall be payable on the following dates:

*Billing Month*	*Due Date for Payment*
*July 2024*	*20 August 2024*
*August 2024*	*20 September 2024*
*September 2024*	*21 October 2024*
*October 2024*	*20 November 2024*
*November 2024*	*20 December 2024*
*December 2024*	*20 January 2025*
*January 2025*	*20 February 2025*
*February 2025*	*20 March 2025*
*March 2025*	*21 April 2025*
*April 2025*	*20 May 2025*
*May 2025*	*20 June 2025*
*June 2025*	*21 July 2025*

Penalty on Rates

Pursuant to Sections 57 and 58 of the Local Government (Rating) Act 2002, the council authorises the following penalties on unpaid rates (excluding volumetric water rate accounts) and delegates authority to the Group Manager Corporate Services to apply them:

· a charge of 10% of the amount of each rate instalment remaining unpaid after the due date stated above, to be added on the penalty date as shown in the above table and also shown on each rate instalment notice.

· a charge of 10% will be added on 8 July 2024 to any balance from a previous rating year (including penalties previously charged) remaining outstanding on 1 July 2024.

· a further additional charge of 10% will be added on 8 January 2025 to any balance from a previous rating year (including penalties previously charged) to which a penalty has been added according to the bullet point above, remaining outstanding on 8 January 2025.

Penalty Remission

In accordance with Section 85 of the Local Government (Rating) Act 2002 and Council’s Rates Remission Policy, the Council will approve the remission of a penalty where the criteria of the policy has been met.

Payment of Rates

Rates shall be payable at the Council offices, Civic House, 110 Trafalgar Street, Nelson between the hours of 8.30am to 5.00pm Monday, Tuesday, Thursday and Friday and 9.00am to 5.00pm Wednesday.

Where any payment is made by a ratepayer that is less than the amount now payable, the Council will apply the payment firstly to any rates outstanding from previous rating years and then to current year rates due.

His Worship the Mayor/O'Neill-Stevens Carried

Attachments

1 1852948764-1211 Updates to LTP for Council Meeting 27June2024

2 1982984479-7709 Independent Auditor's Report on NCC's 2024-2034 long-term plan

6. Exclusion of the Public

Resolved CL/2024/141

That the Council

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

His Worship the Mayor/Paki Paki 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	Confirmation of Council Minutes of 23 May 2024	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

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Confirmation of Council Minutes of 23 May 2024

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 11.23a.m. and resumed in public session at 11.26a.m.

The only business transacted in confidential session was to confirm the minutes. In accordance with the Local Government Official Information and Meetings Act, no reason for withholding this information from the public exists, therefore this business has been recorded in the open minutes.

Resolved CL/2024/142

That the Council

1. Confirms the minutes of part of the meeting of the Council, held with the public excluded on 23 May 2024, as a true and correct record.

His Worship the Mayor/Courtney Carried

Karakia Whakamutanga

There being no further business the meeting ended at 11.26a.m.

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

Resolved

Council

1 August 2024

Report Title: Indicative Business Case - Community Hub, Library and Civic Centre

Report Author: Rebecca Van Orden - Manager Property Services

Report Authoriser: Nikki Harrison - Group Manager Corporate Services

Report Number: R28651

1. Purpose of Report

1.1 Since its purchase in the 1980s, successive Councils have deferred maintenance on Civic House in order to save costs. Whilst the building structure is sound, its critical system infrastructure is approaching end of life. The Elma Turner Library building, despite its recent lifeline, is approaching end of life within the next ten years. Two of the most important council assets have significant issues and there is no option to do nothing.

1.2 This report is to provide advice to Council that a way forward needs to be identified otherwise Council services may be impacted at short notice within the next decade. Council is asked to receive the Indicative Business Case (IBC) prepared by TwentyTwo Independent Property Advisors and to approve the options to progress for further investigation.

2. Summary

2.1 Both assets are increasingly expensive to maintain and have inherent limitations compared to modern facilities.

2.2 For Civic House, there are systems that are in critical need of renewal, being heating and air conditioning, ongoing certification of the inground diesel tank and fire system upgrades. These systems alone have impacts building wide and will require significant budget for renewal.

2.3 Failure of these systems would result in large unbudgeted capital expenditure at short notice and the building would not be able to be occupied until systems were restored. This could impact Council’s ability to deliver services to the Community.

2.4 Redevelopment of Civic House for office accommodation had previously been estimated at $55M and redevelopment of Elma Turner Library has previously been estimated at $45.7M.

2.5 Council decided in September 2022 that project cost estimates no longer supported a staged development of Civic House and an Indicative Business Case (IBC) was commissioned to reconsider the decision for a city centre library, community hub and civic centre. The City Centre Library Redevelopment project was placed on hold in 2023.

2.6 The IBC has been completed, alongside further consideration for redevelopment of Civic House and there are three options which are recommended to be progressed through further investigation.

2.7 Council will undertake consultation with the community prior to significant investment decisions being made on any of the three options.

3. Recommendation

That the Council

1. Receives the report Indicative Business Case - Community Hub, Library and Civic Centre (R28651) and its attachments (714127617-21277, 714127617-21797 and 714127617-21798); and

2. Accepts the recommendation of the Community Hub including Library (and Civic Office Facilities) Indicative Business Case (November 2023) (714127617-21277) for a single site solution for a central city Library, Community Hub and Civic Centre; and

3. Agrees in order of priority, that the Investment Objectives as developed through the Community Hub including Library (and Civic Office Facilities) Indicative Business Case (November 2023) for progressing options for further investigation are:

a) Provision of a good quality community hub inclusive of library services and the civic and administrative functions of Council

b) Cost effectiveness and value for money for the ratepayer

c) Stimulation for central city regeneration

d) Consideration of climate change reduction and mitigation

e) Supports social and economic wellbeing

4. Notes that the Civic House Redevelopment Option investigation (714127617-21797) was completed after the delivery of the Community Hub including Library (and Civic Office Facilities) Indicative Business Case (November 2023); and

5. Agrees to take forward three options for further investigation, being:

a) A new build owned by Council (option 1)

b) A new build leased by Council (option 2)

c) A Civic House redevelopment (option 3)

6. Approves the proposed Nelson Library, Community Hub & Civic Centre: Detailed Business Case Workplan (714127617-21798).

4. Background

4.1 A Business Case was presented to Council on 11 May 2021 requesting decisions for the refurbishment of Civic House project. The recommendations as presented were approved with additional items being added.

CL/2021/049

(2) Approves, subject to final confirmation of funding through the Long Term Plan 2021-2031, option 1: staged refurbishment of Civic House contained within the Civic House Refurbishment Business Case (A2618201), noting that the scope includes:

- Progressively refurbishing each floor of Civic House over an eight-year period;

- Moving the Chamber to the ground floor;

- Providing a Councillor lounge adjacent to the Chamber;

- Providing a consistent, modern staff working environment on each floor with a range of work areas;

- Raising the ground floor of Civic House to mitigate flooding based on a 1% AEP river flood event in 2080;

- Implementing measures to reduce electricity use by 20% and eliminate diesel use by 2030

- incorporating design principles which deliver to Council’s climate change objectives

- providing for accessible and inclusive design

- recognising iwi partnership; and

(3) Notes that the following renewals will be prioritised ahead of the overall refurbishment due to asset end of life / safety concerns:

- tower block roof;

- ventilation, heating and boiler systems; and

(4) Requests the Chief Executive to provide a further report to Council in relation to project management (budget, quality and time) and scope prior to the project commencing; and

(5) Requests the Chief Executive to provide a further report with regards to appropriate levels of earthquake strengthening.

4.2 On 22 September 2022 a further report (R27053) was considered by Council.

Resolved CL/2022/227

(2) Agrees that the information provided in Report R27053 does not support a staged development of Civic House as previously resolved at the Council meeting on 11 May 2021.

4.3 A Civic House Taskforce (Te Roopū te Whare Kaunihera) was established on 10 November 2022. The purpose of the Civic House Taskforce is to consider items relevant to the redevelopment of Nelson City Civic House. The role of the Civic House Taskforce was to:

4.3.1 Determine the appropriate level of earthquake strengthening to enable the removal of earthquake prone building notices and reduce the risk to building occupants in the short term while strategic decisions about Council staff accommodation are considered.

4.3.2 Consider and recommend budget expenditure for an appropriate level of spending in interim, eg. earthquake strengthening (ceiling systems, partitions, and tower block roof), air quality and other health and safety issues.

4.3.3 Work with staff to develop a new business case (in line with the Better Business Case methodology) to take into consideration the impact of changes since the previous business case was approved (in May 2021).

4.4 At the Taskforce meeting of 18 May 2023 the programming of the Civic House business case was discussed and it was considered important that all options were explored by Elected Members before a decision to move forward was made. Phase 1 of the Taskforce terms of reference to investigate the addressing of earthquake prone elements, reoccupying level 6 and reporting on earthquake strengthening was put on hold until broader options were considered.

4.5 The Chief Executive thereafter commissioned TwentyTwo Property Consultants to, independently of Council, complete an Indicative Business Case (IBC) using the methodology of Treasury’s Better Business Case framework (as best practice) to consider a full range of options including, but not limited to, the integration of a central city library, community hub and civic centre.

4.6 The business case framework was adapted into a preliminary feasibility report to provide an assessment of the options and recommended way forward. The IBC was completed in late 2023 and was made public at the City Revitalisation Summit in March 2024.

5. Discussion

5.1 The Problem Statement

5.2 A business case developed using the Better Business Case methodology must first consider the problem statement, which is the main issue that needs to be resolved.

5.3 Council owns and operates two key facilities that are both in need of major reinvestment, Elma Turner Library and Civic House. Both of these assets are reaching end of life for the base building and/or the major building systems, are increasingly more expensive to maintain and have inherent limitations compared to modern facilities. A decision must be made for the redevelopment or replacement of both of these facilities.

5.4 Elma Turner Library at 27 Halifax Street is nearing the end of its economic life. It is made up of an original 1956 workshop and garage which has been altered and added to a number of times. The site is prone to flooding and liquefaction and is likely to be at further risk due to the impacts of climate change and sea level rise. The library currently operates in a conventional way as a public library, which does not support the communities’ expectations.

5.5 A replacement for the existing library with a new building on an adjacent site was estimated to cost $45.7M in 2023. A recent $2.5M investment to strengthen the building only extended its life by approximately 10 years and the requirement to replace the building remains.

5.6 Council’s civic office building is broadly structurally sound but also nearing the end of its economic life due to all systems needing replacement. Civic House is currently accommodated in two adjacent and interconnected buildings at 110 Trafalgar Street.

5.7 Previous feasibility work indicated these buildings have seismic issues and require extensive investment and refurbishment of all systems requiring stripping back to the base building. The deferred renewal of these systems is becoming critical with much of the infrastructure and building envelope being at “end of life”.

5.8 The Civic House systems requiring capital renewal include:

· Seismic strengthening of Tower Block roof structure

· Roof re-cladding after structural strengthening, stormwater system gutters rusting through and inaccessible due to roof design

· Replacement of heavy-weight ceiling tiles, seismic restraining of equipment in ceiling cavities

· Heating, ventilation and air conditioning, including replacement of diesel boiler and inground gas tank

· Fire protection systems

· Exterior window joinery and doors (double glazing)

· Plumbing including bathroom fixtures

· Electrical, power board upgrades, lighting, data and security systems

· Internal fitout, carpets, partitions, acoustics, window furnishings

· Work requiring building consent would need an accessibility gap assessment report and accompanying upgrade (e.g. other building components such as stairs, handrails to meet building code)

5.9 There are systems that are in critical need of renewal, being heating and air conditioning, ongoing certification of the inground diesel tank and fire system upgrades. These systems alone have impacts building wide and will require significant budget.

5.10 Failure of these systems would result in large unbudgeted capital expenditure at short notice and the building would not be able to be occupied until systems were restored. This would impact on delivery of Council services.

5.11 The staff workspace is highly subdivided across two buildings and multiple floors which is not conducive to effective work, team connectivity and productivity. The building performs poorly on energy use and carbon emissions requiring major refurbishment to support the Council’s carbon emissions objectives.

5.12 The advice from Beca on the construction cost to redevelop Civic House is approximately $45M, but approximately $55M when the costs to decant staff and lease and set up temporary accommodation is included.

5.13 While considering the problem statement that Council owns and operates two key facilities that are both in need of major reinvestment, Council is mindful that the community is facing significant economic pressure which is impacting all households and local businesses. The current economic environment reinforces the requirement to consider a broad range of options for the replacement of these facilities and value engineering will ensure that the final solution meets the needs of the community in a cost-effective way.

5.14 The Indicative Business Case

5.15 The Indicative Business Case (IBC) delivered by TwentyTwo Independent Property Consultants (TwentyTwo) has built on advice that Council commissioned in the past but has taken a fresh perspective on the challenges Council has faced for a number of years:

· Deciding how to best renew or replace existing end of life assets

· How to best meet community aspirations

· How to unlock Council priority strategic goals such as revitalising the city

5.16 TwentyTwo reviewed previous work undertaken by Council and its contractors on Civic House and Elma Turner Library upgrade initiatives, and validated future requirements for a library, community hub and civic facilities.

5.17 A range of potential options were considered against the following dimensions and in the context of the local market:

· Library/Community Hub and Office on separate sites or together on the same site (as an integrated solution)

· Council owned or market led and leased by Council

· Refurbished existing buildings or new facilities to be built

5.18 Investment Objectives

5.19 The IBC identified strategic themes from Council’s priorities and developed five investment objectives to capture the strategic intent. The investment objectives forms a basis of Council’s future requirements or business needs and provides a tool for assessment of the various options.

	Investment Objective	Existing Arrangements	Business Needs
1	Stimulates CBD regeneration as part of a long-term economic development plan	The CBD has suffered from a lack of investment and Council has not provided certainty for private investment	Stimulation of long-term private investment in the CBD
2	Supports the social and economic wellbeing of the community and transparent Council decision making	Traditional library facility in an end of life building with seismic issues and on a site susceptible to liquefaction and flooding The space allocated to Elected Member facilities does not have enough space and is not visible and easily accessible to the public who wish to attend Council meetings	A resilient, fit for purpose library and community hub Visible and accessible Elected Member and public meeting facilities
3	Supports Council management and administration teams to be more effective and efficient	A dysfunctional office work environment is impacting on staff efficiency and effectiveness Separation of the library and civic functions leads to duplication of facilities and resources	A modern, flexible and efficient workplace A civic and community facility that reduces the duplication of facilities and resources
4	Meets government energy efficiency and carbon emission reduction objectives	Current civic buildings rate poorly on energy use and carbon emissions The library site is susceptible to liquefaction and both facilities are at risk of flooding	Energy efficient facilities with reduced carbon emissions Facilities are located and designed so they are sustainable and resilient to the impacts of climate change
5	Delivers an affordable long-term solution for the Council and ratepayers	The cost of refurbishing the existing civic buildings has increased significantly since 2020 and is subject to further cost risks The previous library proposal was seen as unaffordable if funded entirely through rates	The forecast capital costs are less than $65 million, excluding land, to fit within the funding approved in the current LTP, or if unachievable then additional budget be approved by Council.

5.20 Critical Success Factors

5.21 In considering the range of options to support the investment decision, the following Critical Success Factors were identified alongside the Investment Objectives and resulting business needs. Short-listed options needed to:

· Be recognised by the community as a “community investment initiative” that supports Council’s strategic aspirations;

· Involve minimal disruption to Council’s operations, services, staff and elected members to ensure functions continue to be delivered effectively;

· Be delivered within ~5 years of Council’s approval of the Indicative Business Case to accelerate the outcomes sought through the LTP;

· Be able to be delivered by the market considering its capability and capacity;

· Be practical and feasible to implement to minimise time, cost and delivery risks.

5.22 Options assessment

5.23 A full range of options was developed, with eight long list options being assessed against the Investment Objectives and Critical Success Factors, plus a Minimal Investment option included. This assessment resulted in four options being shortlisted:

· Option 1: Develop a new building on Council owned site for community and civic office functions (6,000m²)

· Option 2: Lease a new building developed by a third party for community and civic office functions (6,000m²)

· Option 7: Develop a new community building on a Council owned site (3,500m²) and lease a new civic building developed by a third party on a separate site (2,500m²)

· Option 8: Develop a new community building (3,500m²) and a new civic building (2,500m²) on separate Council owned sites.

5.24 TwentyTwo worked with Beca to estimate costs and undertook financial analysis to be able to compare the various options.

5.25 The recommendation from the IBC is for investment in a single site solution for a city centre Library, Community Hub and Civic Centre with option 1 being owned by Council and option 2 being leased by Council.

5.26 Consideration of current Civic House site

5.27 The IBC discounted redevelopment of Civic House for a single site solution because “Options [have been discounted] that attempt to accommodate the Community Hub, Library and Civic Office facilities into Civic House. There is insufficient space available to meet the forecast space requirements. The combined Community Hub/Library and Civic Office requirements forecast is ~6,000m². This compares to the existing building gross floor area of ~5,100m². Given the relatively small size of the current floors in the building it is likely (due to space inefficiency) the forecast space requirement would increase slightly to accommodate the same functions compared to a modern equivalent building with larger floors. Additional space would need to be added to the building, across at least two additional floors (if feasible) which would further exacerbate the current inadequacies of the workplace.”

5.28 Options requiring Council staff to remain in Civic House while it is refurbished were also discounted as engineering advice indicated a staged programme of work (with staff remaining in situ and decanted floor by floor) was unviable and impractical and would cause considerable disruption and health and safety risks. Relocation of all staff to enable construction would likely require staff to be housed over multiple small sites based on the current options available in the market for office space.

5.29 At the Taskforce meeting on 20 June 2024, the costs to upgrade Civic House as an option were reviewed to give members confidence that full consideration had been given to this option before it was discounted.

5.30 At that meeting a possible alternative Civic House Redevelopment option was discussed which included the deconstruction and a new build on the current ‘Savings Bank’ portion of 110 Trafalgar Street, allowing for decanting of staff into the new building before undertaking redevelopment of the rest of Civic House.

5.31 TwentyTwo and Beca were requested to explore an alternative option for the redevelopment of Civic House to accommodate the Library, Community Hub and Civic Centre (see attachment 2). The redevelopment alternative option (referred to as option 3) considers:

· Demolishing the existing Savings Bank Building which currently houses the Council Chambers on level 2, office space and the IT server room.

· Rebuilding the Savings Bank Building within the current building footprint and adding another floor.

· A major refurbishment and restrengthening (of currently earthquake prone elements) of the Tower Block building.

5.32 The extra area created by extending the Savings Bank building provides 6,000m² total floor area which enables the library, community hub and civic office functions to be delivered in one combined building with the same m² outcome as the other options (albeit over several floors).

5.33 Staging and transitional moves would be an important consideration for this option and a multi-step process has been proposed as part of the Alternative Option Summary Report. The process is summarised as:

· Moving occupants and services from ‘Savings Bank’ building, leasing temporary space for Council public meeting Chambers and office space

· Deconstruct the ‘Savings Bank’ building

· Build new 4 level building on ‘Savings Bank’ building footprint and set up as temporary office space

· Lease additional external temporary office space and decant Tower occupants and services

· Fully refurbish the Tower building and set up the upper floors for office accommodation

· Move office staff back from temporary accommodation into the completed Civic House

· Fitout lower area of Tower and new Savings Bank buildings for the Library and Civic Hub

· Move remaining Council functions from external accommodation and library into completed building.

5.34 The above staging approach of option 3 addresses some of the relocation/disruption concerns that had discounted redevelopment of the current Civic House building in the IBC.

6. Assessment of the three options

6.1 The Summary Report Civic House Redevelopment Option (attachment 2) considers non-price and price comparison of the three options.

6.2 The following table is an excerpt from that summary report and compares the non-price attributes of the options.

6.3 The summary report also shows a price comparison of the two options from the IBC and the Civic House redevelopment option as in scoped in the summary report. The summary report has detail on the component parts of the cost estimate, with the table below showing the forecast capital costs for each option.

6.4 It is important to note that the costs provided are based on construction cost estimates for base building and fitout prepared by consultants. At this stage there has been no design work undertaken, therefore they are rough order of cost estimates based on per square metre rates with appropriate contingencies added for this stage of the investigation. We should expect that there will be movement in these estimates as we progress this work.

6.5 The leased option in the table above appears to be a good option on a capital investment basis, however when you consider a 20-year whole of life cost assessment the owned and leased options are typically similar. The lease option impacts annual operating costs and rates to a greater extent than a capital investment which is debt funded.

6.6 The cost estimates consider land acquisition and disposal allowances as relevant for each option. Council has received informal interest previously on the possibility of alternative uses of the Civic House structure, including for residential accommodation.

6.7 Is there a ‘Do Nothing’ option?

6.8 The IBC did not consider a ‘Do Nothing’ option, as the problem statement clearly identifies that the Elma Turner Library building is nearing its end of life and the major building systems of Civic House are also nearing end of economic life.

6.9 Nevertheless, a Minimum Investment option was considered by the IBC, being to retain Elma Turner Library and Civic House and complete essential remedial works for Civic House (seismic and roof repairs to Level 6 & 7).

6.10 This option meets the least number of Investment Objectives and Critical Success Factors. Based on previous advice from Beca, the cost to complete essential remedial works to Civic House (to remove the Earthquake Prone Building Notice) is estimated at ~$4.78M. A project undertaken in 2023/24 to the value of $2.5M strengthened the Elma Turner Library and was expected to extend the life of that building for up to 10 years.

6.11 The minimum investment option would result in continued disruption to staff due to ongoing repairs and maintenance. Continued and ongoing unforeseen issues and critical failures are likely to emerge as the assets continue to age and increased obsolescence occurs with upgrades bringing about the requirement to meet current building code and compliance regulations. This risk of system failure could severely impact on the delivery of Council services.

6.12 It is considered that there is no feasible ‘do nothing’ option within the period of the current Long Term Plan.

7. Proposed Detailed Business Case Workplan

7.1 A proposed workplan has been developed to summarise steps towards a Detailed Business Case for the Nelson Library, Community Hub & Civic Centre (attachment 3).

7.2 The timeline outlines the workplan to undertake an Expressions of Interest process (EOI) with the market, the subsequent process to qualify the options presented and then to select preferred options for Council to approve to take forward for further investigation.

7.3 The workplan also outlines the further concept development of the Civic House redevelopment option to allow a like with like comparison with the other preferred options following the EOI process.

7.4 Timeframe

7.5 It is proposed that after a decision by Council to receive the IBC and to approve the options to progress through further investigation, that a Detailed Business Case could be delivered by the end of July 2025.

7.6 The indicative delivery timeframes for the options are between 4 to 5 years depending on the option that is finally selected from the time that Council considers the Detailed Business Case and approves an option to proceed.

· Option 1 – Council owned and developed ~ 4 years

· Option 2 – Council leased ~ 4.5 years

· Option 3 – Civic house redevelopment ~ 5years

7.7 The indicative delivery timelines provided in attachment 3 shows this milestone as the start of July 2026 to enable the approved project to align with the 2026/27 Annual Plan.

8. Financial

8.1 There is currently $65M in the 2024-34 Long Term Plan as a combination of budgets for the development of a city centre Library (including community hub) and a Civic Centre redevelopment, this capital budget allocation was carried through from the 2021-31 Long Term Plan.

8.2 Council will consult with the community prior to significant investment in any option being made and will undertake the appropriate engagement if additional budget is required to that which is currently allocated in the Long Term Plan.

9. Options

9.1 The following options have been identified with option A being the recommended option:

Option A: Accept the recommendation of the Indicative Business Case for a single site solution and progress options 1, 2 and 3 for further investigation through the Detailed Business Case Workplan (recommended)
Advantages	· Staff have clear direction on progressing this important issue to another decision milestone for Council · Workplan provides timeframes to deliver next steps · Decision points are included to allow Council to ensure that consideration on how to proceed is provided for the community · Investment objectives and critical success factors are met (more so for option 1 and option 2 than option 3)
Risks and Disadvantages	· Current budget in the LTP is not sufficient for any of the three options. · Election cycle may introduce uncertainty in delivery of the outcomes of Detailed Business Case.
Option B: Accept the recommendation of the Indicative Business Case for a single site solution and progress one or any combination of the three options for further investigation through the Detailed Business Case Workplan
Advantages	· Staff have clear direction on progressing this important issue to another decision milestone for Council · Workplan provides timeframes to deliver next steps · Decision points are included to allow Council to ensure that consideration on how to proceed is provided for the community
Risks and Disadvantages	· Not taking all three options through for further investigation may exclude an option prior to sufficient degree of analysis of that option · Current budget in the LTP is not sufficient for any of the three options. · Election cycle may introduce uncertainty in delivery of the outcomes of the Detailed Business Case.
Option C: Progress with the Minimal Investment Option of the Indicative Business Case and do not progress through the Detailed Business Case Workplan (close to status quo, acknowledging that there is no ‘do nothing’ option)
Advantages	· Requires minimal investment
Risks and Disadvantages	· There is no ‘do nothing’ approach – there is a requirement for minimal investment · Does not resolve the status of near end of economic life of two important facilities for Council · Council staff have no basis of a direction to progress the central city library · Operational and maintenance budgets will be required for significant building and energy inefficiencies · Critical system failure requires unbudgeted funds · Critical failure results in building not able to be occupied and Council service delivery being jeopardised · Adhoc replacement of systems as they fail could be more expensive in the long run · Unlikely to meet emission reduction targets as using high carbon emitting diesel boiler · Does not meet any of the investment objectives and only a few of the critical success factors

10. Conclusion

10.1 It is recommended that Council receives the Nelson City Council Community Hub including Library (and Civic Office Facilities) Indicative Business Case (IBC) prepared by TwentyTwo Independent Property Advisors and approves options 1, 2 and 3 for further investigation through the Detailed Business Case Workplan.

11. Next Steps

11.1 If the recommendations are accepted, the next steps would be:

Action	Timeframe
Develop EOI for Options 1 and 2 including evaluation Criteria	By end of August 2024
EOI for Options 1 and 2 closes	Mid-October 2024
Procurement to appoint consultant team (architect and engineers) for Option 1 and 2	By end November 2024
Civic House base build and fitout concept design for option 3	By end November 2024
Taskforce meeting	Early December 2024
Further development of options 1 and 2, base build and fitout spec, design work etc	By mid-February 2025
Updated construction cost assessment	Mid-February to mid-March 2025
Review and prepare to report back to Taskforce	Mid-March to mid-April 2025
Taskforce presentation	Mid-April 2025
Prepare Detailed Business Case	By end July 2025
Approval to Proceed with preferred option	Any time from when the Detailed Business Case is delivered, at the direction of Elected Members.

Attachments

Attachment 1: 714127617-21277 Nelson City Council IBC FINAL (with Appendices) 24 November 2023 ⇩

Attachment 2: 714127617-21797 Civic House Redevelopment Option Summary Report FINAL 24July2024 ⇩

Attachment 3: 714127617-21798 Workplan and Option Implementation Timelines FINAL 24July2024 ⇩

Important considerations for decision making

Fit with Purpose of Local Government

This report recommends a process which will enable Council to make effective and efficient decisions regarding significant infrastructure project for community facilities. The provision of library services, community facilities, staff accommodation and civic services is a core function of local government which supports the cultural and social wellbeing of the community.

Consistency with Community Outcomes and Council Policy

The recommendation is consistent with the 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 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.

Risk

Council risks increased difficulty recruiting and retaining staff in the future if a reasonable standard of accommodation cannot be provided. There is risk that the current building systems for Elma Turner Library and Civic House reach the end of their economic life requiring significant investment. There is political and reputational risk from a decision which is likely to be supported and equally not supported by the various sectors of the community.

Financial impact

The decision in itself has no financial impact, there is budget available in the 2024/25 financial year to progress investigations, and this decision does not commit Council to a specific action. If the outcome of the Detailed Business Case creates a requirement for additional unbudgeted capital funding, then a decision for this would be taken by Council either through an Annual Plan or sooner if requested by way of a report to Council following the appropriate community engagement on the matter.

Degree of significance and level of engagement

This matter is of low significance as it relates solely to Council process, it does not commit Council to any future action nor requires a change to current capital budgets.

Climate Impact

The Detailed Business Case will consider climate impacts and climate resilience features.

Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report. Mana whenua engagement will run concurrently with the proposed Expressions of Interest development under the Detailed Business Case Workplan.

Legal context

Council has power to make this decision including under the Local Government Act 2002 (subpart 1 section 10 (1)(b), section 12 (2)(b) and section 14, (1)(g).

Delegations

This is a matter for Council.

Option 1: Appointment of ROSC and alternative ROSC’s (preferred option)
Advantages	· Provides continuity for an essential function.
Risks and Disadvantages	· Currently there is limited capacity.
Option 2: Only appoint Nelson ROSC
Advantages	· Less administrative burden.
Risks and Disadvantages	· Lack of cover for essential function and potential regional vulnerability in the event of an incident.